MIRA INFORM REPORT

Report Date :

29.12.2012

IDENTIFICATION DETAILS

Name :	CUBIT COMPUTERS PRIVATE LIMITED
Registered Office :	405, Abhiraj Complex, 68/B, Swastik Society, Aerodrape Lane, Navrangpura, Ahmedabad – 380009, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	13.04.1999
Com. Reg. No.:	04-035766
Capital Investment / Paid-up Capital :	Rs.16.000 Millions
CIN No.: [Company Identification No.]	U72900GJ1999PTC035766
IEC No.:	0802004326
PAN No.: [Permanent Account No.]	AABCC6885D
Legal Form :	Private Limited Liability Company
Line of Business :	Trader and Importer of Cubit Computers, Laptops, Tablets and Smart Phones
No. of Employees :	68 (Approximately) (In Office 18) (In Factory 20) (In Branch 30)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 89000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was established as a proprietory concern with the name “Cubit Computers” and got converted in to Private Limited in the year 1999. It is an established company having a moderate track record. Reserves of the company appears to low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

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. Manini Shah
Designation :	Manager
Contact No.:	91-9904040004
Date :	18.12.2012

LOCATIONS

Registered Office/ Corporate Office :	405, Abhiraj Complex, 68/B, Swastik Society, Aerodrape Lane, Navrangpura, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-26426995/ 26446097
Mobile No.:	91-9904040004 (Mr. Manini Shah)
Fax No.:	Not Available
E-Mail :	maninishah@cubit.co.in capritesh_patel@yahoo.co.in
Website :	http://www.cubit.co.in
Location :	Owned
Warehouse :	Basement, Jupiter Tower, Behind Grand Bhagwat, Bodakdev, Ahmedabad – 380000, Gujarat, India
E-Mail :	helpdesk@cubitcomputers.com
Branches :	Located at: Rajasthan Madhya Pradesh Chandigarh Punjab Kerala

DIRECTORS

Name :	Mr. Suresh Nair
Designation :	Director
Address :	7, Anand Mangal Apartments, Opposite Rajpath Raw Houses, Bodakdev, Ahmedabad, Gujarat, India
Date of Birth/Age :	27.03.1967
Qualification :	MSC
Experience :	20 Years
PAN No.:	ABKPN9456A
Name :	Mrs. Smita Nair
Designation :	Director
Address :	7, Anand Mangal Apartments, Opposite Rajpath Raw Houses, Bodakdev, Ahmedabad, Gujarat, India
Date of Birth/Age :	14.07.1971
Qualification :	B.Com
PAN No.:	ACUPN6805E

KEY EXECUTIVES

Name :	Mr. Manini Shah
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Suresh Nair	843988
Smita Nair	756000

BUSINESS DETAILS

Line of Business :	Trader and Importer of Cubit Computers, Laptops, Tablets and Smart Phones.
Imports :
Products :	Cubit Computers Laptops Tablets Smart Phones
Countries :	China Taiwan H.K. Korea Germany
Terms :
Selling :	Credit (30 days/ 60 days)
Purchasing :	L/C and Credit (90 days/ 180 days)

GENERAL INFORMATION

Suppliers :	Ecs Infotech Private Limited Silver line infocom Private Limited The Prefect Display Company Limited
Customers :	Wholesalers AB Technologies Expert Computers Advance Technology Computers
No. of Employees :	68 (Approximately) (In Office 18) (In Factory 20) (In Branch 30)
Bankers :	SIDBI (IDBI, Lal Bunglow), Navijan Press Building, Income Tax, Ahmedabad, Gujarat, India
Facilities :	Cash and Credit Rs.50.000 Millions (From SIDBI)

Banking Relations :	--
Auditors :
Name :	Lunia and Company Chartered Accountants
Address :	B-12, Hare Krishna Complex, Opposite Apsra Cinema, Kankaria, Ahmedabad – 380028, Gujarat, India
Tel. No.:	91-79-25430574
E-Mail :	luniaandco@usnl.net

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1600000	Equity Shares	Rs.10/- each	Rs.16.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1600000	Equity Shares	Rs.10/- each	Rs.16.000 Millions

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		16.000	5.875	7.506
2] Share Application Money		0.000	1.631	0.000
3] Reserves & Surplus		6.473	3.940	1.875
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		22.473	11.446	9.381
LOAN FUNDS
1] Secured Loans			23.154	20.910
2] Unsecured Loans			42.938	25.991
TOTAL BORROWING		42.169	66.092	46.901
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		64.642	77.538	56.282
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.772	1.870	2.130
Capital work-in-progress		0.000	0.000	0.073
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
OTHER NON CURRENT ASSETS		0.008	0.015	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	61.886	54.143
	Sundry Debtors	39.751	232.502
	Cash & Bank Balances	1.339	1.207
	Other Current Assets	0.000	0.000
	Loans & Advances	6.729	40.778
Total Current Assets		109.705	328.630	141.859
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	45.766	249.901	86.707
	Other Current Liabilities	1.367	1.871
	Provisions	1.710	1.205	1.096
Total Current Liabilities		48.843	252.977	87.803
Net Current Assets		60.862	75.653	54.056
MISCELLANEOUS EXPENSES		0.000	0.000	0.023
TOTAL		64.642	77.538	56.282

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011
	SALES
		Income	279.455	264.937
		Other Income	3.885	0.274
		TOTAL (A)	283.340	265.211
Less	EXPENSES
		Purchases and Direct Expenses	264.398	259.396
		Increase in Inventories	(7.743)	(21.958)
		Employee Benefits Expenses	6.863	6.339
		Administrative and General Expenses	6.464	5.473
		Selling and Marketing Expenses	2.817	2.817
		Loss on Sale of Motor Car	0.042	0.000
		TOTAL (B)	272.841	252.067
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		10.499	13.144
Less	FINANCIAL EXPENSES (D)		6.171	9.757
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.328	3.387
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.718	0.363
	PROFIT BEFORE TAX (E-F) (G)		3.610	3.024
Less	TAX (H)		1.077	0.959
	PROFIT AFTER TAX (G-H) (I)		2.533	2.065
	Earnings Per Share (Rs.)		1.58	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.89	0.78	NA
Net Profit Margin (PBT/Sales)	(%)	1.29	1.14	NA
Return on Total Assets (PBT/Total Assets}	(%)	3.18	0.91	NA
Return on Investment (ROI) (PBT/Networth)		0.16	0.26	NA
Debt Equity Ratio (Total Liability/Networth)		4.00	27.88	14.36
Current Ratio (Current Asset/Current Liability)		2.25	1.30	1.62

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last two years	Yes
12]	Profitability for last two 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	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

TRADE REFERENCES

• AB Technologies – Mr. Biren/ Mr. Amit
• Expert Computers – Mr. Nischal

• Advance Technology Computers – Mr. Ashish
• Ecs Infotech Private Limited – Mr. Vijay Mandora
• Silver line infocom Private Limited – Mr. Navdeep Goyal
• The Prefect Display Company Limited – Mr. David He


• 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.54.85
UK Pound	1	Rs.88.40
Euro	1	Rs.72.63

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--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		29

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.