MIRA INFORM REPORT

Report Date :

11.12.2012

IDENTIFICATION DETAILS

Name :	NETWORK TECHLAB (INDIA) PRIVATE LIMITED
Registered Office :	Unit-41, Near Paper Box Company, Sarvodaya Industrial Estate, Mahakali Caves Road, Andheri (East), Mumbai-400093, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.11.2000
Com. Reg. No.:	11-129795
Capital Investment / Paid-up Capital :	Rs. 3.000 millions
CIN No.: [Company Identification No.]	U72900MH2000PTC129795
TAN No.: [Tax Deduction & Collection Account No.]	MUMN07194F / MUMH07194F
PAN No.: [Permanent Account No.]	AABCN2665A
Legal Form :	Private Limited Liability Company
Line of Business :	IT consultant and Service Provider for Network Security, Data Backup, UPS.
No. of Employees :	225 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 126000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The latest financials of the company are not made available. As per previous year’s, the liquidity of the company appears unhealthy due to increase in the external borrowings. Mr. Mehul from the Accounts Department has provided all information but the financials are not verified. However, trade relations are reported as fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings with some caution.

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 PARTED BY

Name :	Mr. Mehul
Designation :	Account Department
Contact No.:	91-22-66814141
Date :	10.12.2012

LOCATIONS

Registered Office :	Unit-41, Near Paper Box Company, Sarvodaya Industrial Estate, Mahakali Caves Road, Andheri (East), Mumbai-400093, Maharashtra, India
Tel. No.:	91-22-66814141/40564141
Fax No.:	91-22-66814150/80
E-Mail :	mehul@netlabindia.com
Website :	http://www.netlabindia.com
Area :	Owned

DIRECTORS

As on 30.09.2011

Name :	Mr. Haresh Jivraj Gada
Designation :	Director
Address :	6, Keshav, Golibar Road, Jagdusha Nagar, Ghatkopar (West), Mumbai-400086, Maharashtra, India
Date of Birth/Age :	14.06.1972
Date of Appointment :	29.11.2000
DIN No.:	01116806
Name :	Mr. Atul H Gosar
Designation :	Director
Address :	17, Yogeeta, Co-Op Housing Society Daulat Nagar, Borivali (East), Mumbai-400066, Maharashtra, India
Date of Birth/Age :	12.05.1972
Date of Appointment :	29.11.2000
DIN No.:	01116285
Name :	Mrs. Bina Haresh Gada
Designation :	Director
Address :	6, Keshav, Golibar Road, Jagdusha Nagar, Ghatkopar (West), Mumbai-400086, Maharashtra, India
Date of Birth/Age :	18.12.1972
Date of Appointment :	29.11.2000
DIN No.:	01116844
Name :	Mrs. Veena Atul Gosar
Designation :	Director
Address :	17, Yogeeta CHSL, 6^th Road, Daulat Nagar, Borivali (E), Mumbai-400060, Maharashtra, India
Date of Appointment :	29.11.2000
DIN No.:	01359718

KEY EXECUTIVES

Name :	Mr. Mehul
Designation :	Account Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Haresh J. Gada	87500
Bina H. Gada	12500
BINA H. GADA	87500
Veena A. Gosar	12500
Vijayaben H. Gosar	24870
Hanraj K. Gosar	25000
Javer Gada	24870
Jivraj K. Gada HUF	25000
Others	260
Total	300000

Allottees as on 30.03.2012

Names of Allottees	No. of Shares
Haresh J. Gada	60000
Atul H. Gosar	60000
Total	120000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Directors or relatives of Directors	66.67
Others	33.33
Total	100.00

BUSINESS DETAILS

Line of Business :	IT consultant and Service Provider for Network Security, Data Backup, UPS.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Corporate

No. of Employees :

225 (Approximately)

Bankers :

NKGSB Co-Op. Bank Limited, Laxmi Sadan, 361, V. P. Road, Girgaum, Mumbai - 400004, Maharashtra, India

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Secured Loan	16.377	5.840
Total	16.377	5.840
Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Loan from relatives and friends	59.405	38.161
Loan from Directors	0.000	0.000
Total	59.405	38.161

Banking Relations :	--
Auditors :
Name :	K. Gala and Assoicates Chartered Accountant
Address :	12/A, Singapuri Building, 1^st Floor, 609 JSS Road, Marine Lines (East), Mumbai-400002, Maharashtra, India
PAN No.:	AAEFK1326P

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.10/- each	Rs. 3.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.10/- each	Rs. 3.000 Millions

After 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
420000	Equity Shares	Rs.10/- each	Rs. 4.200 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		3.000	3.000	3.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		28.617	24.780	19.737
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		31.617	27.780	22.737
LOAN FUNDS
1] Secured Loans		16.377	5.840	2.029
2] Unsecured Loans		59.405	38.161	28.800
TOTAL BORROWING		75.782	44.001	30.829
DEFERRED TAX LIABILITIES		2.360	1.686	1.981
TOTAL		109.759	73.467	55.547
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		36.021	31.215	23.912
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.734	0.294	0.294
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	41.686	32.863	20.163
	Sundry Debtors	64.833	45.641	26.417
	Cash & Bank Balances	0.664	0.338	1.135
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	29.018	11.663	5.101
Total Current Assets		136.201	90.505	52.816
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	24.773	22.906	8.046
	Other Current Liabilities	35.444	23.749	12.450
	Provisions	2.980	1.892	0.979
Total Current Liabilities		63.197	48.547	21.475
Net Current Assets		73.004	41.958	31.341
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		109.759	73.467	55.547

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	323.408	179.417	178.782
		Other Income	54.785	59.126	27.812
		TOTAL	378.193	238.543	206.594
Less	EXPENSES
		Office Expenses	372.254	232.928	202.322
		Administrative Expenses
		Advertising Expenses
		TOTAL	372.254	232.928	202.322
	PROFIT BEFORE TAX		5.939	5.615	4.272
Less	TAX		NA	NA	NA
	PROFIT AFTER TAX		NA	NA	NA

Particulars	31.03.2012
Sales Turnover (Approximately)	300.000

The above information has been parted by Mr. Mehul (Account Department)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	1.84	3.13	2.39
Return on Total Assets (PBT/Total Assets}	(%)	3.45	4.61	5.57
Return on Investment (ROI) (PBT/Networth)		0.19	0.20	0.19
Debt Equity Ratio (Total Liability/Networth)		4.40	3.33	2.30
Current Ratio (Current Asset/Current Liability)		2.16	1.86	2.46

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Creditors for Services	0.010	0.010	0.025
Creditors for Goods	24.763	22.896	8.021
Total	24.773	22.906	8.046

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	No
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
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	No
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

NOTE

The registered office of the company has been shifted from 27 Tinwala Building, Off Lamington Road, Tribhuvan Lane, Behind Dreamland Cinema, Mumbai, Maharashtra, India to the present address w.e.f. 15.02.2008.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U72900MH2000PTC129795
Name of the company	NETWORK TECHLAB (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Unit-41, Near Paper Box Company, Sarvodaya Industrial Estate, Mahakali Caves Road, Andheri (East), Mumbai-400093, Maharashtra, India Email: account@netlabindia.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80016369
Type of charge	Immovable property
Particular of charge holder	NKGSB Co-Op. Bank Limited, Laxmi Sadan, 361, V. P. Road, Girgaum, Mumbai - 400004, Maharashtra, India Email: cmd@nkgsb-bank.com
Nature of instrument creating charge	No Instrument was executed. However, the equitable mortgage has been extended, by way of constructive delivery of title deeds, over the immovable property
Date of instrument Creating the charge	11.07.2012
Amount secured by the charge	Rs. 84.250 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Rate of Interest : @14.50% p.a. with monthly rests on Cash Credit Facility, or at such other rate, as may be decided, from time to time, by the Bank. Terms of Repayment Repayment of Cash Credit facility of Rs.70.000 Millions (Enhancement Sanctioned dt.03-07-2012) in 12 months upto 30.06.2013. Repayment of Bank Guarantee of Rs.5.000 Millions in 12 months upto 31.12.2012. Margin Cash credit facility - 25% of paid Stock & 40% of Book-Debts upto 90 days Bank Guarantee - 25% in the Form of FDR Extent and Operation of the charge To Secure the due repayment of the following credit facilities of Rs.84.250 Millions, together with interest, costs, charges and expenses thereon, granted by the Bank to the Company. 1) Cash Credit Facility of Rs.70.000 Millions (enhanced from Rs.30.000 Millions) 2) Term Loan of Rs.4.150 Millions (Existing) 3) Term Loan of Rs.5.100 Millions (Existing) 4) Bank Guarantee of Rs. 5.000 Millions (Fresh)
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Unit #A/48, on 1^st floor, Giriraj Ind. Estate, Mahakali Caves Rd, Andheri (East), Mumbai - 93 Area 686.85 sq.ft. Carpet area+ Mezzanine Floor, CTS #46/36 Situated at village Mulgaon,Tal. Andheri, Mumbai. Unit #41, Sarvodaya Ind. Premises CSL, Plot #12, Mahakali Caves Rd, Andheri (East), Mumbai- 93. adm.1456 sq.ft. built up/ carpet area + Mezzanine Floor CTS #238/8 and 46/22, Mulgaon, Andheri, Mumbai. Unit #39,Sarvodaya Ind. Premises CSL, Plot #12,Mahakali Caves Road, Andheri, Mumbai- 93, adm.1359 sq. ft carpet+mezzanine floor. in mumbai
Date of instrument modifying the charge	06.06.2011
Particulars of the present modification	By this modification, the immoveable properties so mortgaged shall now hold good to secure additional credit facilities of Rs.45.000 Millions granted to the Company. Hence, the aggregate credit facilities, secured by charge, have been enhanced from Rs.39.250 Millions to Rs.84.250 Millions. (Being Cash Credit facility of Rs.70.000 Millions,Term Loan I of Rs.4.150 Millions and Term Loan II of Rs. 5.100 Millions and BG of Rs.5.000 Millions). Therefore, the overall charge now stands at Rs.84.250 Millions.

FIXED ASSETS:

· Computer

· Furniture and Fixture

· Motor Vehicle

· Machinery and Motor Car

· Office Premises

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 records 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.54.34
UK Pound	1	Rs.87.09
Euro	1	Rs.70.13

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--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		30

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.