MIRA INFORM REPORT

Report Date :

28.12.2012

IDENTIFICATION DETAILS

Name :	YO DIGITALS PRIVATE LIMITED
Registered Office :	74, Ashoka Shopping Centre, Ground Floor, L. T. Marg, Mumbai – 400001, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	02.07.2011
Com. Reg. No.:	11-219347
Capital Investment / Paid-up Capital :	Rs.0.100 Million
CIN No.: [Company Identification No.]	U74120MH2011PTC219347
TAN No.: [Tax Deduction & Collection Account No.]	MUMY02556B
PAN No.: [Permanent Account No.]	AAACY4929P
Legal Form :	Private Limited Liability Company
Line of Business :	Distributor of Battery Charger
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 3200
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a relatively new company having a moderate track record. The company has achieved sizable turnover and minimal profit from its first year of operation. Trade relations are reported as fair. Business is active. Payments are reported to be slow. 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 DECLINED BY

Name :	Ms. Priya Naik
Designation :	Account Manager
Contact No.:	91-22-22614080
Date :	26.12.2012

LOCATIONS

Registered Office :	74, Ashoka Shopping Centre, Ground Floor, L. T. Marg, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-22614080
Fax No.:	Not Available
E-Mail :	yodigitals@yahoo.co.in

DIRECTORS

As on 28.09.2012

Name :	Mr. Yogendra Kumar Varshney
Designation :	Director
Address :	Flat No.403, Regal Complex, Shanti Nagar, Ulhasnagar, Thane – 421003, Maharashtra, India
Date of Birth/Age :	01.05.1963
Date of Appointment :	02.07.2011
DIN No.:	02604360
Name :	Mr. Subhash Navneet Gupta
Designation :	Director
Address :	802, 8^th Floor, Prabhu Dhan, Bori Bazar ST Fort, Mumbai – 400001, Maharashtra, India
Date of Birth/Age :	01.01.1977
Date of Appointment :	02.07.2011
DIN No.:	03536910

KEY EXECUTIVES

Name :	Ms. Priya Naik
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2012

Names of Shareholders	No. of Shares
Yogendra Kumar Varshney	5000
Subhash Navneet Gupta	5000
Amit Y Varshney	500
Dimple Varshney	500
Gauri S Varshney	1500
Komal International	1
Moti G. Bhatia	1
Naresh Kedia	1
Pankaj Y Varshney	500
Pawan Kumar Gupta	1
Sadhnana Y Varshney	600
Sandeep Sharma (HUF)	1
Surekha S Gupta	1500
Subhash Navneet Gupta HUF	900
Sushil Kumar Varshney HUF	900
Sushil Kumar Varshney	900
Tara Devi K. Varshney	100
Yogendra Kumar Varshney (HUF)	600
Total	18505

Equity Share Break up (Percentage of Total Equity)

As on 28.09.2012

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Distributor of Battery Charger

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227, D, Nariman Point, Mumbai – 400021, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012
Kotak Mahindra Bank - Cash Credit	2.231
Total	2.231
Notes: Cash Credit facility from Bank is secured against Hypothecation of Books Debts and other current assets of the company. It is collaterally secured by the immovable property of shareholder Mr. Sushil Kumar Varshney, Mr. Subhash Kumar Gupta and Mr. Yogendra Kumar Varshney and further secured by her personal guarantee.
Unsecured Loan	As on 31.03.2012
Bajaj Finance Limited	2.512
Tata Capital Limited	0.544
From Shareholders and Relatives	38.545
Total	41.601

Banking Relations :	--
Auditors :
Name :	P K Murarka and Company Chartered Accountants
Address :	Office No 202, 2nd Floor, 439, Kalbadevi Road, Opposite Bhanghwadi, Mumbai – 400002, Maharashtra, India
PAN No.:	AAFPM3835L

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.10/- each	Rs.0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs.0.100 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012
SHAREHOLDERS FUNDS
1] Share Capital		0.100
2] Share Application Money		0.000
3] Reserves & Surplus		0.699
4] (Accumulated Losses)		0.000
NETWORTH		0.799
LOAN FUNDS
1] Secured Loans		2.231
2] Unsecured Loans		41.601
TOTAL BORROWING		43.832
DEFERRED TAX LIABILITIES		0.002
TOTAL		44.633
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.171
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	31.447
	Sundry Debtors	32.999
	Cash & Bank Balances	13.478
	Other Current Assets	1.926
	Loans & Advances	3.386
Total Current Assets		83.236
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	35.994
	Other Current Liabilities	2.780
	Provisions	0.000
Total Current Liabilities		38.774
Net Current Assets		44.462
MISCELLANEOUS EXPENSES		0.000
TOTAL		44.633

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012
	SALES
		Income	223.535
		Other Income
		TOTAL	223.535
Less	EXPENSES
		Office Expenses	222.481
		Administrative Expenses
		Advertising Expenses
		TOTAL	222.481
	PROFIT BEFORE TAX		1.054
Less	TAX		0.355
	PROFIT AFTER TAX		0.699
	Earnings Per Share (Rs.)		69.90

KEY RATIOS

PARTICULARS		31.03.2012
PAT / Total Income	(%)	0.31
Return on Total Assets (PBT/Total Assets}	(%)	1.26
Return on Investment (ROI) (PBT/Networth)		1.32
Debt Equity Ratio (Total Liability/Networth)		103.39
Current Ratio (Current Asset/Current Liability)		2.15

LOCAL AGENCY FURTHER INFORMATION

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	No
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last one years	Yes
12]	Profitability for last one 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	No
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

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U74120MH2011PTC219347
Name of the company	YO DIGITALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	74, Ashoka Shopping Centre, Ground Floor, L. T. Marg, Mumbai – 400001, Maharashtra, India E-Mail Id : yodigitals@yahoo.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10307546
Type of charge	Book debts Movable property (not being pledge) Others (Current Assets and Movable Fixed Assets)
Particular of charge holder	Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227, D, Nariman Point, Mumbai – 400021, Maharashtra, India
Nature of instrument creating charge	Supplementary Deed of Hypothecation.
Date of instrument Creating the charge	28.04.2012
Amount secured by the charge	Rs.49.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit – Floating over the tenure of the facility. The rate of interest has been arrived at on the basis of the Bank’s Base Rate. Terms of Repayment BG – maximum 12 months including claim period Margin BG – 80% Cash Margin Extent and Operation of the charge First and exclusive charge by way of hypothecation of current assets and movable fixed assets present and future of the borrower, in favour of Kotak Mahindra Bank as security for repayment of financial facilities granted by the Bank to the Borrower
Short particulars of the property or asset(s) charged (including complete address and location of the property)	The Whole of Borrower’s Current assets and Movable fixed assets both present and future.
Particulars of the present modification	Bank had granted facilities of Rs.30.000 Millions to company which was secured by way of Hypothecation on current Assets and Movable assets of the company on 27.08.2011. Now Bank has revise said facilities total of Rs.49.500 Millions, as per supplementary deed of hypothecation and said charge is modified accordingly.

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 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.54.85
UK Pound	1	Rs.88.55
Euro	1	Rs.72.63

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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		26

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.