MIRA INFORM REPORT

Report Date :

10.12.2012

IDENTIFICATION DETAILS

Name :	CREATIVE INFOTECH SOLUTIONS PRIVATE LIMITED
Registered Office :	C-222, Belgium Chambers, Opposite Linear Bus Stand, Delhi Gate, Surat – 395002, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	12.10.1995
Com. Reg. No.:	04-027752
Capital Investment / Paid-up Capital :	Rs. 1.230 millions
CIN No.: [Company Identification No.]	U72200GJ1995PTC027752
Legal Form :	Private Limited Liability Company
Line of Business :	The Company is engaged in business of providing IT Services and Solutions.
No. of Employees :	120 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 96000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED BY

Name :	Mr. Rajesh Malani
Designation :	Marketing Manager
Contact No.:	91-9374713975
Date :	08.12.2012

LOCATIONS

Registered Office :	C-222, Belgium Chambers, Opposite Linear Bus Stand, Delhi Gate, Surat – 395002, Gujarat, India
Tel. No.:	91-261-2411554/ 2421964/ 2601045
Mobile No.:	91-9374713975 (Mr. Rajesh Malani)
Fax No.:	91-261-2601044
E-Mail :	mcafiling@yahoo.com praveen@creativeinfotech.co.in accounts@creativeinfotech.co.in srv_surat@creativeinfotech.co.in paresh@creativeinfotech.co.in roc@rragroup.com
Website :	http://www.creativeinfotech.com http://www.creativeinfotech.co.in
Area :	5000 sq.ft.
Location :	Owned
Factory:	202 J B House, Near Ishwar Bhavan, Navrangpura, Ahmedabad-380014, Gujarat
Location :	Owned
Branch Office 1 :	Ankleshwar SF - 32, Ravi Kiran Complex, Opposite G.I.D.C. Bus Stand, Ankleshwar – 393002, India
Tel. No.:	91-2646-223686 / 221598
Email:	paresh@creativeinfotech.co.in srv_ank@creativeinfotech.co.in
Branch Office 2 :	Vapi 104, Riddhi Siddhi Chambers, Nr. Indian Bank, New Telephone Exchange Road, G.I.D.C. Char Rasta, Vapi – 396195, Gujarat, India
Tel. No.:	91-260-2432316, 2410654
Email:	cispl_vapi@rediffmail.com sales_vapi@creativeinfotech.co.in
Branch Office 3 :	Vadodara 001, Yogikrupa Apartment, 19, Nutan Bharat Society, Alkapuri, Vadodara-390007, Gujarat, India
Tel. No.:	91-265-3259858
Branch Office 4 :	Mumbai 1^st Floor, "SMRUTI" Plot No. 22, Road No. 4 Jaiprakash Nagar, Goregaon (East), Mumbai – 400063, Maharashtra, India
Tel. No.:	91-22-32259367

DIRECTORS

As on 25.09.2012

Name :	Mr. Praveen Ravindran Ponnarassery
Designation :	Director
Address :	A/703, Rutvan Co-Operative Housing Society Limited, Near Sahaj Super Store, Adajan, Surat-395009, Gujarat, India
Date of Birth/Age :	21.12.1966
Qualification :	BE
Date of Appointment :	12.10.1995
DIN No.:	00756103
Name :	Mr. Paresh Ramjibhai Mathukia
Designation :	Director
Address :	A-302, Millennium Residency, Gujarat Gas, Palanpur Road, Adajan, Surat-395009, Gujarat, India
Date of Birth/Age :	15.05.1971
Qualification :	BE
Date of Appointment :	01.04.2005
DIN No.:	00737299
Name :	Mrs. Geeta Praveen Ponnarassery
Designation :	Director
Address :	A/703, Rutvan Co-Operative Housing Society Limited, Near Sahaj Super Store, Adajan, Surat-395009, Gujarat, India
Date of Birth/Age :	10.04.1970
Date of Appointment :	01.04.2005
DIN No.:	01862415
Name :	Mrs. Bintuben Paresh Mathukia
Designation :	Director
Address :	A-302, Millennium Residency, Gujarat Gas, Palanpur Road, Surat-395009, Gujarat, India
Date of Birth/Age :	11.10.1974
Date of Appointment :	01.04.2005
DIN No.:	01048791

KEY EXECUTIVES

Name :	Mr. Rajesh Malani
Designation :	Marketing Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.09.2012

Names of Shareholders	No. of Shares
P R Praveen	36900
Paresh Mathuka	33300
Geeta P R Praveen	27210
Umang Tekriwal	100
Bintuben Paresh Mathuka	22700
P R Praveen RE: P R Praveen HUF	1400
Paresh Mathukia RE: Paresh Mathuka - HUF	1400
Total	123010

Equity Share Break up (Percentage of Total Equity)

As on 25.09.2012

Category	Percentage
Directors or relatives of Directors	99.92
Other top fifty shareholders	0.08
Total	100.00

BUSINESS DETAILS

Line of Business :	The Company is engaged in business of providing IT Services and Solutions.
Products / Services :	Computers Printers Solution Consumables Power Solution- UPS System Networking Components Computers Peripherals Software Solution Hardware Computer Parts Data Transmitter Circuit Audio Visual Equipments Office Automation Equipments

GENERAL INFORMATION

Customers :

• Enercon India
• Chiron
• Reliance
• Essar
• Sumul
• Gujarat Insecticides Limited
• J. B. Chem and Pharma Limited
• Wockhardt
• Gharda Chemicals Limited
• Piramal Glass
• Alok Industries Limited

No. of Employees :

120 (Approximately)

Bankers :

• Central Bank of India, Sahara Darwaja, Textile Market Branch, Surat-395002, Gujarat, India

• ICICI Bank Limited, Shyam Chambers, Opposite Sub Jail, Ring Road, Surat, Gujarat- 395002, India

• Standard Chartered Bank Limited

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
From Bank – Axis Bank (Car Loan)	0.211	0.421
Loan repayable on demand – From Bank ICICI Bank (Overdraft A/c)	4.689	11.360
Total	4.900	11.781
Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Deposits	0.000	0.015
From Others Easy access financial Service Limited	9.461	1.348
Standard Chartered Bank Limited (Purchase Bill Discounting)	0.963	14.895
From Shareholder and Relatives	0.000	0.100
Total	10.424	16.358

Banking Relations :	--
Auditors :
Name :	RRA and Company Chartered Accountants
Address :	“Acumen”, HG-1-D, International Trade Centre, Majura Gate Crossing, Ring Road, Surat – 395002, Gujarat, India
Tel. No.:	91-261-2462176
Fax No.:	91-261-2462176
E mail:	Rra.com@gmail.com
Website:	http://www.rra.co.in
PAN No.:	AAFFR4860E

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs.10/- each	Rs. 1.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
123010	Equity Shares	Rs.10/- each	Rs. 1.230 Millions

i. The Company has only one class of shares i.e equity shares having face value of Rs. 10/- each. Each holder of equity share is entitled to one vote per share

ii. The holder of equity shares are entitled to dividends, if any proposed by the Board of Directors and approved by share holder at the Annual General Meeting.

iii. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts,. However. No such preferential amounts exists currently. The distribution will be in proportion to the numbers of equity shares held by the Share holders.

Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

Particulars	31.03.2012
	No. of Shares	Rs. in millions
Number of Shares at the Beginning	123010	1.230
Add.: Issue	--	--
Less: Bought Back	--	--
Add. : Others	--	--
Number of Shares at the end	0.123	1.230

Details of shares held by each shareholder holding more than 5% shares:

Particulars	31.03.2012
	No. of Shares	% Holding in that class of shares
Equity shares with voting rights
P. R. Praveen	36900	30.00
Paresh Mathukia	33300	27.07
Geeta P. Praveen	27210	22.12
Bintuben Mathulia	22700	18.45

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		1.230	1.230	1.180
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		22.873	17.415	10.921
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		24.103	18.645	12.101
LOAN FUNDS
1] Secured Loans		4.900	11.781	10.863
2] Unsecured Loans		10.424	16.358	0.100
TOTAL BORROWING		15.324	28.139	10.963
DEFERRED TAX LIABILITIES		0.432	0.383	0.319
TOTAL		39.859	47.167	23.383
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.872	5.939	5.324
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.013	0.013	0.013
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	10.266	15.304	7.223
	Sundry Debtors	62.594	82.843	46.440
	Cash & Bank Balances	1.810	2.133	0.732
	Other Current Assets	0.465	0.102	0.000
	Loans & Advances	6.432	8.597	7.697
Total Current Assets		81.567	108.979	62.092
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	39.113	62.573	39.311
	Other Current Liabilities	5.863	2.280	2.789
	Provisions	2.617	2.911	1.946
Total Current Liabilities		47.593	67.764	44.046
Net Current Assets		33.974	41.215	18.046
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		39.859	47.167	23.383

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	354.178	377.063	273.029
		Other Income	0.551	0.063	0.048
		TOTAL (A)	354.729	377.126	273.077
Less	EXPENSES
		Cost of Goods Sold	346.263 (Including Financial Expenses)	334.125	239.461
		Administrative Expenses		29.883	23.550
		TOTAL (B)		364.008	263.011
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			13.118	10.066
Less	FINANCIAL EXPENSES (D)			3.575	4.127
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.466	9.543	5.939
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.523	0.406	0.372
	PROFIT BEFORE TAX (E-F) (G)		7.943	9.137	5.567
Less	TAX (H)		2.486	2.843	1.739
	PROFIT AFTER TAX (G-H) (I)		5.457	6.294	3.828
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		15.783	9.489	5.661
	BALANCE CARRIED TO THE B/S		21.240	15.783	9.489
	Earnings Per Share (Rs.)		44.36	51.17	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.54	1.67	1.40
Net Profit Margin (PBT/Sales)	(%)	2.24	2.42	2.04
Return on Total Assets (PBT/Total Assets}	(%)	9.08	7.95	8.26
Return on Investment (ROI) (PBT/Networth)		0.33	0.49	0.46
Debt Equity Ratio (Total Liability/Networth)		2.61	5.14	4.55
Current Ratio (Current Asset/Current Liability)		1.71	1.61	1.41

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Trade Payables	37.308	61.152	39.311
Others	1.805	1.421
Total	39.113	62.573	39.311

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

PERFORMANCE DURING THE YEAR AND FUTURE OUTLOOK:

The company is primarily engaged in business of providing IT services and solutions and the company has achieved approximately 6.06% about decrease in sales turnover compared to previous year. The company achieved turnover of Rs. 354.178 Millions. The profitability of the company has decreased due to competition in the field. The Net profit after tax of the company is Rs. 5.457 Millions compared to last year profit of 6.294 Millions.

The financial results of the Company both on profitability and performance wise has not been encouraging comparatively. The directors are confident that the company will achieve better result in the current year.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U72200GJ1995PTC027752
Name of the company	CREATIVE INFOTECH SOLUTIONS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	C-222 Belgium Chambersopp Lineear Bus Stand, Delhi Gate, Surat, Gujarat, India Email: mcafiling@yahoo.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10270572
Type of charge	Immovable property
Particular of charge holder	ICICI Bank Limited, Shyam Chambers, Opposite Sub Jail, Ring Road, Surat, Gujarat- 395002, India Email: jatin.madhani@icicibank.com
Nature of instrument creating charge	Memorandum of Entry - Constructive Delivery [Registered with the office of Sub Registrar - Nanpura, Surat vide Document No. 329 Dated - 05.10.2012]
Date of instrument Creating the charge	04.10.2012
Amount secured by the charge	Rs. 13.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest I-Base is 9.75% p.a. and spread is 3.75% Terms of Repayment Repayable on demand Margin As stipulated by the Bank Extent and Operation of the charge The charge shall be first and exclusive charge and will operate as continuing security towards the total credit facility of Rs.13.000 Millions together with interest, penal interest or any other charges thereof.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Immovable properties of the Company, more particularly described in The Third Schedule of Memorandum of Entry.
Particulars of the present modification	The Bank has enhanced the Credit Facility from Rs.9.000 Millions to Rs.13.000 Millions by enhancing the limit of Rs. 4.000 Millions Total amount of charge now stands at Rs. 13.000 Millions

FIXED ASSETS:

• Building
• Office Equipment
• Computer
• Furniture and Fixtures
• Vehicle

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.20
UK Pound	1	Rs.86.99
Euro	1	Rs.70.22

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	Yes
--LITIGATION	YES/NO	No
--OTHER ADVERSE INFORMATION	YES/NO	No
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	No
--EXPORT ACTIVITIES	YES/NO	No
--AFFILIATION	YES/NO	No
--LISTED	YES/NO	No
--OTHER MERIT FACTORS	YES/NO	Yes
TOTAL		45

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NB		NEW BUSINESS

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.