MIRA INFORM REPORT

Report Date :

18.02.2012

IDENTIFICATION DETAILS

Name :	SUBEX LIMITED
Registered Office :	Adarsh Tech Park, Outer Ring Road, Devarabisannall, Bangalore – 560037, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	06.12.1994
Com. Reg. No.:	08-016663
Capital Investment / Paid-up Capital :	Rs.693.100 Millions
CIN No.: [Company Identification No.]	L85110KA1994PLC016663
TAN No.: [Tax Deduction & Collection Account No.]	BLRS02953G
PAN No.: [Permanent Account No.]	AABCS9255R
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Provider of Operations Support Systems (OSS).
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 12000000
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.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	Adarsh Tech Park, Outer Ring Road, Devarabisannall, Bangalore – 560037, Karnataka, India
Tel. No.:	91-80-66598733/ 66598700
Fax No.:	91-80-66963333
E-Mail :	ramanathan.j@subex.com
Website :	http://www.subexworld.com
Regional Office :	Level 6, Suite 607, 83 York Street, Sydney News 2000 Australia
Tel No.:	+61 2 99930361
Fax No.:	+61 2 99930364

DIRECTORS

(AS ON 31.03.2011)

Name :	Mr. Subash Menon
Designation :	Founder Chairman, Managing Director
Name :	Mr. Sudeesh Yezhuvath
Designation :	Whole Time Director
Name :	Mr. V. Balaji Bhat
Designation :	Independent Director
Name :	Mr. Vinod R. Sethi
Designation :	Independent Director
Name :	Mr. Harry Berry
Designation :	Independent Director
Name :	Mr. Andrew Garman
Designation :	Independent Director
Name :	Mr. Anil Singhvi
Designation :	Independent Director
Name :	Mr. Sanjeev Aga
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. Subash Menon
Designation :	Chief Executive Officer
Name :	Mr. Sudeesh Yezhuvath
Designation :	Chief Operating Officer
Name :	Mr. Mark Nicholson
Designation :	Chief Technology Officer
Name :	Mr. Vinod Kumar
Designation :	Group President
Name :	Mrs. Anuradha
Designation :	Senior Vice President - Engineering
Name :	Mrs. Monisha Tambay
Designation :	Vice President - Human Resources
Name :	Mr. Greg Leneveu
Designation :	President – Americas
Name :	Mr. Paul Skillen
Designation :	President – EMEA
Name :	Mr. Sekharan Y. Menon
Designation :	President – APAC
Name :	Mr. Ramanathan J
Designation :	Vice President – Finance and Company Secretary
Name :	Mr. David Halvorson
Designation :	General Counsel

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.12.2011)

Category	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2,580,601	4.14
Bodies Corporate	1,521,200	2.44
Sub Total	4,101,801	6.58
(2) Foreign
Bodies Corporate	4,000,000	6.42
Sub Total	4,000,000	6.42
Total shareholding of Promoter and Promoter Group (A)	8,101,801	13.00
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1,224,490	1.97
Financial Institutions / Banks	41,589	0.07
Insurance Companies	78,764	0.13
Foreign Institutional Investors	10,802,094	17.34
Sub Total	12,146,937	19.50
(2) Non-Institutions
Bodies Corporate	9,353,916	15.01
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	20,530,710	32.95
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	8,528,392	13.69
Any Others (Specify)	3,640,270	5.84
Foreign Nationals	92,343	0.15
Non Resident Indians	1,143,722	1.84
Clearing Members	478,397	0.77
Hindu Undivided Families	1,242,447	1.99
ESOP/ESOS/ESPS	215,973	0.35
Directors & their Relatives & Friends	463,243	0.74
Foreign Corporate Bodies	545	-
Trusts	3,600	0.01
Sub Total	42,053,288	67.50
Total Public shareholding (B)	54,200,225	87.00
Total (A)+(B)	62,302,026	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	7,008,746	-
Sub Total	7,008,746	-
Total (A)+(B)+(C)	69,310,772	100.00

BUSINESS DETAILS

Line of Business :

Provider of Operations Support Systems (OSS).

Products :

Products Description	Item Code No.
Computer Software	85/24

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· HSBC Bank

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Short Term:
Working Capital Loans from Banks (Secured by charge on Fixed and Current Assets)	740.350	706.950
Loans from Banks (Secured by charge on current assets and pledge of portion of shares of Promoter Group)	200.000	--
Long Term:
Loans from Banks -	--	708.930
Hire Purchase Loans from Banks (Secured by hypothecation of assets financed by these loans)	9.160	17.740
Total	949.510	1433.620
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Short Term: Working Capital Loans from Banks and Financial Institutions	162.570	0.000
Long Term: Foreign Currency Convertible Bonds	4183.010	4750.420
Total	4345.580	4750.420

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Wholly Owned Subsidiaries :	· Subex Americas Inc · Subex (UK) Limited · Subex Technologies Limited · Syndesis Development India Private Limited · Subex Azure Holdings Inc · Subex (Asia Pacific) Pte Limited · Subex Inc · Subex Technologies Inc
Enterprises Over Which Some of the Directors Exercise Significant Influence :	· Kivar Holdings Private Limited (formerly Subex Holdings Private Limited) and its subsidiaries

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
128040000	Equity Share	Rs.10/- each	Rs.1280.400 Millions
200000	Redeemable Optionally Convertible Cumulative Preference Shares	Rs.98/- each	Rs.19.600 Millions
	Total		Rs.1300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
69310025	Equity Share	Rs.10/- each	Rs.693.100 Millions

Of the above:

a) 115,000 shares of Rs.10/- each were allotted for consideration other than for cash;

b) 4,626,940 shares of Rs.10/- each are allotted as Bonus shares by capitalisation of General Reserve;

c) 12,840 shares of Rs.10/- each are allotted in part settlement of cost of acquisition of subsidiary

d) 10,878,784 shares of Rs.10/- each are allotted as Bonus shares by capitalisation of Securities premium;

e) 11,728,728 shares (GDRs) of Rs.10/- each are allotted in full settlement of cost of acquisition of Azure Solutions Limited

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		693.100	579.830	348.471
2] Employees Stock Options Outstanding account		63.170	57.120	46.306
3] Reserves & Surplus		2361.230	2932.030	5048.272
4] (Accumulated Losses)		0.000	0.000	(880.380)
NETWORTH		3117.500	3568.980	4562.669
LOAN FUNDS
1] Secured Loans		949.510	1433.620	479.161
2] Unsecured Loans		4345.580	4750.420	9908.570
TOTAL BORROWING		5295.090	6184.040	10387.731
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		8412.590	9753.020	14950.400
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		63.730	97.530	163.342
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		7723.440	9263.440	14263.443
DEFERREX TAX ASSETS		12.180	12.180	24.176
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	1615.590	1252.060	1110.084
	Cash & Bank Balances	8.680	29.490	53.042
	Other Current Assets	203.730	156.420	141.528
	Loans & Advances	725.480	919.470	1193.051
Total Current Assets		2553.480	2357.440	2497.705
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	263.330	192.520	214.960
	Other Current Liabilities	253.010	225.900	207.365
	Provisions	1423.900	1559.150	1575.941
Total Current Liabilities		1940.240	1977.570	1998.266
Net Current Assets		613.240	379.870	499.439
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		8412.590	9753.020	14950.400

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales and Services	3135.530	3201.440	3011.048
		Other Income	125.630	38.070	14.585
		TOTAL (A)	3261.160	3239.510	3025.633
Less	EXPENSES
		Cost of Hardware, Software and Support Charges	14.720	22.290	37.469
		Personnel Costs	764.890	658.480	798.276
		Other Operating, Selling and Administrative Expenses	1293.520	1559.550	1630.725
		Exceptional Items	27.080	(891.660)	1819.967
		TOTAL (B)	2100.210	1348.660	4286.437
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1160.950	1890.850	(1260.804)
Less	FINANCIAL EXPENSES (D)		379.740	421.900	352.574
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		781.210	1468.950	(1613.378)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		55.500	88.150	136.459
	PROFIT BEFORE TAX (E-F) (G)		725.710	1380.800	(1749.837)
Less	TAX (H)		10.620	12.190	32.269
	PROFIT AFTER TAX (G-H) (I)		715.090	1368.610	(1782.106)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		310.250	(1058.360)	723.750
	BALANCE CARRIED TO THE B/S		1025.340	310.250	(1058.356)
	EARNINGS IN FOREIGN CURRENCY		2893.490	2910.890	NA
	IMPORTS
		Import of systems and solutions	7.830	5.630	NA
		Capital Goods	13.990	14.450	NA
	TOTAL IMPORTS		21.820	20.080	NA
	Earnings Per Share (Rs.)
	- Basis		11.32	35.30	(51.14)
	- Diluted		7.88	8.44	(51.14)

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	795.220	785.430	930.500
Total Expenditure	625.330	590.070	581.300
PBIDT (Excl OI)	169.890	195.360	349.200
Other Income	0.000	0.000	0.000
Operating Profit	169.890	195.360	349.200
Interest	91.370	94.560	100.200
Exceptional Items	(8.780)	(386.950)	(80.200)
PBDT	69.740	(286.150)	168.800
Depreciation	9.520	9.210	9.100
Profit Before Tax	60.220	(295.360)	159.700
Tax	11.000	0.000	0.000
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	49.220	(295.360)	159.700
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	49.220	(295.360)	159.700

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	21.93	42.25	(58.92)
Net Profit Margin (PBT/Sales)	(%)	23.14	43.13	(58.11)
Return on Total Assets (PBT/Total Assets}	(%)	27.73	56.25	(65.76)
Return on Investment (ROI) (PBT/Networth)		0.23	0.39	(0.38)
Debt Equity Ratio (Total Liability/Networth)		2.32	2.29	2.71
Current Ratio (Current Asset/Current Liability)		1.32	1.19	1.25

LOCAL AGENCY FURTHER INFORMATION

RESULTS OF OPERATIONS

During the financial year ended March 31, 2011, the total revenue on a consolidated basis increased by 4% to reach Rs.4,827.50 Million. The Company has made a profit of Rs.787.79 Million for the financial year 2010-11 as against profit of Rs.1,002.96 Million in the previous year.

On standalone basis, the total revenue stood at Rs.3,135.53 Million. The net profit for the financial year 2010-11 was Rs. 715.09 Million.

BUSINESS

The Company is a provider of solutions in the Business Support Systems (BSS) and Operations Support Systems (OSS) areas for telecom applications. The key sub-areas in BSS and OSS are Revenue Maximization or Business Optimization, Billing Systems, Mediation, Service Fulfillment and Service Assurance. The Company operates in Business Optimization and Service Fulfillment areas. While Business Optimization solutions improve the revenues and profits of the communications service providers through identification and elimination of leakages in their revenue chain, Service Fulfillment solutions enable the carriers to fulfill the needs of their subscribers through provisioning and activation of services. Company conceptualizes and develops software products at its facilities in Bangalore and is focused on the telecom business segment. Company has sales and support offices in the United States, Canada, UK, UAE, India, Singapore and Australia. Company is the global leader in Business Optimization for communications service providers.

Commoditization of the industry is the largest threat that telecom operators around the world are facing. This, coupled with the need to roll out new products and services at regular intervals, is proving to be a tough combination for the telcos. Company is well positioned to address the needs of the telecom carriers and help them to overcome these challenges. The pioneering platform, the Revenue Operations Centre (ROCTM) brings together business intelligence, domain knowledge and workflow support. ROC acts as the underpinning solution on which telcos can build their processes to achieve several objectives like, lower cost, higher margin, higher revenue etc. Further, the Company offers Managed Services around its products which enable the operators to take advantage of its deep domain expertise to improve their operational efficiency.

CHANGES IN SHARE CAPITAL

The authorised share capital of the Company is Rs.1,300,000,000 divided into 128,040,000 equity shares of Rs. 10/- each and 200,000 Preference Shares of Rs.98/- each.

The Company has allotted 11,326,886 equity shares, out of which:

· 7,197,607 equity shares were allotted upon conversion of FCCBs aggregating to principal amount of US$ 12 Million, out of Company’s US$98.7 Million 5% Convertible Unsecured Bonds.

· 3,765 equity shares were allotted under ESOP 2005 scheme and 1,260 equity shares were allotted under ESOP 2000 scheme, consequent to exercise of stock options.

· 4,124,254 equity shares were allotted on a preferential basis to M/s KBC Aldini Capital Mauritius Limited.

As at March 31, 2011, the paid-up share capital of the Company stood at Rs.693.100 Millions comprising 69,310,025 equity shares of Rs.10/- each.

SUBSIDIARIES

SUBEX TECHNOLOGIES LIMITED

For the year ended March 31, 2011, Subex Technologies Limited earned an income of Rs.646.32 Million on a consolidated basis, as against Rs. 801.35 Million last year and a net profit of Rs. 7.50 Million as against a net loss of Rs. 5.73 Million last year. Subex Technologies Inc is a direct subsidiary of Subex Technologies Limited.

SUBEX (UK) LIMITED

For the year ended March 31, 2011, the consolidated income of Subex (UK) Limited was Rs. 3,217.75 Million as against Rs. 2,892.44 Million last year, and the net profit was Rs.115.98 Million as against a net profit is Rs.37.82 Million last year.Subex (Asia Pacific) Pte Limited and Subex Inc are direct subsidiaries of Subex (UK) Limited.

SUBEX AMERICAS INC

For the year ended March 31, 2011, the consolidated income of Subex Americas Inc was Rs.1,205.44 Million as against Rs.984.77 Million last year, and net loss was Rs.50.80 Million as against Rs. 389.87 Million last year.

MANAGEMENT DISCUSSION AND ANALYSIS

OVERVIEW:

Subject has its Equity Shares listed on the National Stock Exchange of India Limited (NSE) and the Bombay Stock Exchange Limited (BSE). The Global Depositary Receipts (GDRs) of the Company are listed on the London Stock Exchange (LSE). The Company’s US$ 180,000,000 2% Convertible Unsecured Bonds are listed on the London Stock Exchange (LSE) and US$ 98,700,000 5% Convertible Unsecured Bonds are listed on the Singapore Exchange Securities Trading Limited (SGX).

The management of company is committed to improving the levels of transparency and disclosure. Keeping this in mind, an attempt has been made to disclose hereunder, information about the Company, its business, operations, outlook, risks and financial condition.

The financial statements of the Company have been prepared in compliance with the requirements of the Companies Act, 1956, and the Generally Accepted Accounting Principles (GAAP) in India or as per the accounting approved by the Hon’ble High Court of judicature. The management of company accepts responsibility for the integrity and objectivity of these financial statements, as well as for various estimates and judgments used therein. The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, in order that the financial statements reflect the form and substance of transactions in a true and fair manner, and reasonably present the state of affairs and profits for the year.

In addition to the historical information contained herein, the following discussion may include forward looking statements which involve risks and uncertainties, including but not limited to the risks inherent in the Company’s growth strategy, dependency on certain clients, dependency on availability of qualified technical personnel and other factors discussed in this report.

INDUSTRY

The Company is a provider of solutions in the Business Support Systems (BSS) and Operations Support Systems (OSS) areas for telecom applications. The key sub-areas in BSS and OSS are Revenue Maximization or Business Optimization, Billing Systems, Mediation, Service Fulfillment and Service Assurance. The Company operates in Business Optimization and Service Fulfillment areas. While Business Optimization solutions improve the revenues and profits of the communications service providers through identification and elimination of leakages in their revenue chain, Service Fulfillment solutions enable the carriers to fulfill the needs of their subscribers through provisioning and activation of services. Company conceptualizes and develops software products at its facilities in Bangalore and is focused on the telecom business segment. Company has sales and support offices in the United States, Canada, UK, UAE, India, Singapore and Australia. Company is the global leader in Business Optimization for communications service providers.

Commoditization of the industry is the largest threat that telecom operators around the world are facing. This, coupled with the need to roll out new products and services at regular intervals, is proving to be a tough combination for the telcos. Company is well positioned to address the needs of the telecom carriers and help them to overcome these challenges. The pioneering platform, the Revenue Operations Centre (ROCTM) brings together business intelligence, domain knowledge and workflow support. ROC acts as the underpinning solution on which telcos can build their processes to achieve several objectives like, lower cost, higher margin, higher revenue etc. Further, we offer Managed Services around our products which enable the operators to take advantage of the deep domain expertise to improve their operational efficiency.

BUSINESS SEGMENTS AND INDUSTRY OUTLOOK

Business Segments

Company operates in two business segments – telecom software products and telecom software services. The former is the key focus area for the Company and is being discussed in detail.

The latter is staff augmentation services for telcos in the United States and is fast losing its significance as can be seen from the business mix data provided herein.

TELECOM SOFTWARE PRODUCTS

Solutions for Business Optimization

Company offers the Revenue Operations Centre (ROCTM) Solution Suite for Business Optimization, which has solutions for Revenue Assurance, Fraud Management, Credit Risk Management, Partner Settlement, Route Optimization, Cost Management, Service Fulfillment and Data Integrity Management.

Revenue Operations Centre (ROC)

ROC functions as a financial command and control centre for the telcos by,

__ delivering real-time and actionable insights to effectively monitor and control the operational and tactical response

__ providing an integrated platform that sits on top of all Subex OSS/BSS products or 3rd party systems

__ linking service provider operations directly to financial Health

ROC allows for the correlation of data across business systems, creating an end-to-end view of the customer based on products, services, revenues, margins, costs, and more. ROC also enables service providers to define key cross-domain metrics and KPIs, specific to their business strategy that can be monitored and tracked.

CONTINGENT LIABILITIES

Receivables factored: Current Year - Rs.368.010 Million (Previous year - Rs.286.650 Million)

Claims against the Company not acknowledged as debt: Current Year – Rs. 64.52 Million (Previous year - Rs. 69.06 Million). These claims relate to Indian Income Tax demands which are being contested by the Company.

The Company has provided Corporate Guarantees to Banks for credit facilities availed by its wholly owned subsidiaries to the amount of Rs. Nil (Previous Year - Rs. 500 Million) at the year end. These facilities were utilized to the extent of Rs. Nil (Previous Year - Rs. 155.26 Million) by the subsidiaries.

FIXED ASSETS:

· Computer Hardware and Software

· Furniture and Fixture

· Vehicles

· Office Equipments

WEBSITE DETAILS:

COMPUTER PROFILE:

Subject is a global provider of Business Support Systems (BSS) that empowers communications service providers (CSPs) to achieve competitive advantage through Business Optimization - thereby enabling them to improve their operational efficiency to deliver enhanced service experiences to subscribers.

The company pioneered the concept of a Revenue Operations Center (ROC) – a centralized approach that sustains profitable growth and financial health through coordinated operational control. Subex's product portfolio powers the ROC and its best-in-class solutions such as revenue assurance, fraud management, credit risk management, cost management, route optimization, data integrity management and interconnect / inter-party settlement.

Company also offers a scalable Managed Services program and has been the market leader in Business optimization for four consecutive years according to Analysys Mason (2007, 2008, 2009 and 2010). Business optimisation includes fraud, revenue assurance, analytics, cost management and credit risk management. Company has been awarded the Global Telecoms Business Innovation Award 2011 along with Swisscom for the industry’s first successful Risk Reward Sharing model for Fraud Management.

Company’s customers include 16 of top 20 wireless operators worldwide* and 26 of the world’s 50 biggest^# telecommunications service providers. The company has more than 300 installations across 70 countries.

SUBEX HISTORY

1992

Subex is Born

1999

Public Listing Indian SE MCAP US$5M

First non-BT Interconnect Implementation - Telenor

2000

Acquired IV Generation, Telecom Software Consulting

2001

First International Installation of FMS

Acquired Magardi Inc., Canada

2002

First installation of RA for BT

2004

Acquired Lightbridge Inc, Fraud Management Business Assets

Acquired Alcatel Fraud Management Group, Fraud Management Business Assets

2006

Acquired Azure Solutions, Revenue Assurance Company

Acquired Sotas, Fraud Management Business

2007

Listing on London-Stock Exchange MCAP US$600M

Acquired Syndesis, Canada

2009

Launch of Managed Services

2010

Launch of RocCloud SaaS model

NEWS

Subex launches ROC Revenue Assurance 5

Simplifies Revenue Assurance through industry-first capabilities RevenuePad and Zen, introduces Apps for Mobile Devices

LONDON, UK - Subex Limited a leading global provider of Business Support Systems (BSS) for Communications Service Providers (CSPs), announced that it has launched version 5 of its ROC Revenue Assurance offering. This new solution from Subex will help simplify Revenue Assurance for CSPs, and introduces two industry-first capabilities in RevenuePad and Zen.

Revenue Assurance is fast becoming an enterprise-wide tool and RevenuePad provides CSPs with such abilities, in addition to allowing them to grow the function through assistance in roadmap planning and maturity enhancement. It will also guide CSPs on which assurance areas and KPIs to cover to improve operational performance and advance along the maturity scale. RevenuePad will also be available as a mobile app for iPad, with apps for other mobile device platforms to follow soon.

Zen is a path breaking approach to help Revenue Assurance analysts fight the data tsunami. CSPs and RA analysts are trying to find the needle in the haystack and Zen is the industry’s first solution that sifts through millions of records and zooms in on the problem area in a matter of seconds. This dramatically reduces the time to find root causes (by more than 90 %) and provides a substantial boost to analyst productivity, thereby helping CSPs recover revenues much faster.

“The ROC Revenue Assurance solution along with its RevenuePad and Zen capabilities will be a one-stop shop for a CSP’s Revenue Assurance needs. Once again, Subex exhibited its thought leadership by setting a new direction for RA,” said Sudeesh Yezhuvath, Chief Operating Officer at Subex. “Additionally, the ROC Revenue Assurance 5 Solution is mobile device enabled and can be accessed by service providers anywhere anytime. This means that they will be able to gauge the Revenue Assurance health, analyze key metrics and make important decisions on the move”.

The ROC Revenue Assurance 5 solution is market ready.

About Subex Limited

Subex Limited is a leading global provider of Business Support Systems (BSS) that empowers communications service providers (CSPs) to achieve competitive advantage through Business Optimization - thereby enabling them to improve their operational efficiency to deliver enhanced service experience to subscribers.

The company pioneered the concept of a Revenue Operations Center (ROC) - a centralized approach that sustains profitable growth and financial health through coordinated operational control. Subex's product portfolio powers the ROC and its best-in-class solutions enable revenue assurance, fraud management, data integrity management, cost management and interconnect / inter-party settlement. Subex also offers a scalable Managed Services program and has been the market leader in Business Optimization for four consecutive years. Subex has been awarded the Global Telecoms Business Innovation Award for 2011 along with Swisscom for industry's first successful Risk Reward Share model for fraud management.

Subex's customers include 16 of top 20 wireless operators worldwide* and 26 of the world's 50 biggest^# telecommunications service providers. The company has more than 300 installations across 70 countries.

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.49.25
UK Pound	1	Rs.77.45
Euro	1	Rs.64.89

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION		0
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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.