MIRA INFORM REPORT

Report Date :

09.01.2012

IDENTIFICATION DETAILS

Name :	CELLCOMM SOLUTIONS LIMITED (w.e.f. 16.02.2005)
Formerly Known As :	SUBEX CELLCOMM LIMITED (w.e.f. 14.02.1996) RADEX SPACECOMM LIMITED
Registered Office :	No. 52/44, 2^nd Cross, 8^th Main, Ganesh Block, Mahalaxmi Layout, Bangalore – 560096, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.04.1994
Com. Reg. No.:	08-015460
Capital Investment / Paid-up Capital :	Rs.48.819 Millions
CIN No.: [Company Identification No.]	U32202KA1994PLC015460
TAN No.: [Tax Deduction & Collection Account No.]	BLRS03690B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Providing Cellular Phone Accessories and Services.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 890000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well 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/ Corporate Office :	No. 52/44, 2^nd Cross, 8^th Main, Ganesh Block, Mahalaxmi Layout, Bangalore – 560096, Karnataka, India
Tel. No.:	91-80-23497581
Fax No.:	91-80-23491490
E-Mail :	info@cellcommsolutions.com sasikumar@cellcommsolutions.com info@cellcommsolutions.com
Website :	www.cellcommsolutions.com
Regional Offices :
New Delhi	406, Vishwadeep Building, 4, Janakpuri Dist Centre, New Delhi - 110 058, India
Tel No:	91-11-25623150/25516515/25536591
Fax No:	91-11-25623140
Email:	sunil@cellcommsolutions.com
Kolkata	204, 2^nd Floor, Sagar Trade Cube, S P Mukherjee Road, Kolkata – 700026, West Bengal, India
Tel No:	91-33-24740457
Email:	sagarneelb@cellcommsolutions.com
Mumbai	A-202, II Floor, Floral Deck Plaza, Opposite SEEPZ, Andheri (East), Mumbai - 400093, Maharashtra, India
Tel No:	91-22-28320102
Fax No:	91-22-28237038
Email:	anukrishnad@cellcommsolutions.com
Hyderabad	No.202, Siddhardha Apartments, Erramanzil Colony, Khaithabad, Hyderbad - 500004, India
Tel No:	91-40-23327961
Email:	santhoshn@cellcommsolutions.com
Chennai	No. 84, LDG Road, Little Mount, Saidept, Chennai – 15, Tamilnadu, India
Overseas Offices :	· Hong Kong · Middle East · Bangladesh

DIRECTORS

As on 10.08.2011

Name :

Mr. Davis Kavalakatt Anthony

Designation :

Managing director

Address :

D-501, Brigade Regency, 5^th Floor, 8^th Main Road, Malleswaram (West), Bangalore – 560055, Karnataka, India

Date of Birth/Age :

01.06.1959

Qualification :

M. Sc., PGMM

Date of Appointment :

30.09.1995

DIN No.:

00501139

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U32202KA1994PLC015460	Cellcomm Solutions Limited	Managing director	1/04/2011	30/09/1995	-	Active	NO

Name :

Mr. Alex Puthenchira Johnson

Designation :

Director

Address :

F-204, Raheja Gardenia, Millers Road, Opposite Benson Town, Bangalore – 560052, Karnataka, India

Date of Birth/Age :

31.05.1965

Date of Appointment :

16.11.2007

DIN No.:

00502359

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U40100KA2005PLC036884	Zealtec Energy Limited	Director	3/08/2005	3/08/2005	-	Active	NO
U51420KA2006PLC040284	Minmet Global Infrastructure Limited	Director	25/08/2006	25/08/2006	-	Active	NO
U27106KA2007PLC042792	Xindia Steels Limited	Director	1/07/2011	14/05/2007	-	Active	NO
U85110KA1996PLC021030	Hampi Industry Limited	Director	15/09/2008	6/09/2007	-	Amalgamated	NO
U32202KA1994PLC015460	Cellcomm Solutions Limited	Director	30/09/2008	16/11/2007	-	Active	NO
U45201KA2009PLC049358	Xindia Constructions Limited	Director	12/03/2009	12/03/2009	-	Active	NO
U13209KA2010PTC053636	Besto Mining India Private Limited	Director	14/05/2010	14/05/2010	-	Active	NO
U14200KA2008PLC045891	Dakshin Mines And Minerals Limited	Additional director	17/08/2010	17/08/2010	31/12/2010	Active	NO
U27310KA2010PLC055188	Tungabhadra Beneficiation Limited	Director	17/09/2010	17/09/2010	-	Active	NO
U26940KA2010PLC055251	Xindia International Cements Limited	Director	22/09/2010	22/09/2010	-	Active	NO
U15492KA2011PTC060584	Origin Coffee Roasting Private Limited	Director	26/09/2011	26/09/2011	-	Active	NO

Name :

Mr. Vinod Varijakshan Menon

Designation :

Director

Address :

No. 103, Vasawani Golf Vista Hazel Block, SY, 2/5, Challaghatta VI, Bangalore- 560037, Karnataka, India

Date of Birth/Age :

25.10.1970

Date of Appointment :

01.04.2008

DIN No.:

00524282

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U40100KA2005PLC036884	Zealtec Energy Limited	Director	29/12/2006	1/11/2005	-	Active	NO
U32202KA1994PLC015460	Cellcomm Solutions Limited	Director	30/09/2008	1/04/2008	-	Active	NO

Name :

Mr. Vijayan Melethil

Designation :

Whole-time director

Address :

Kambivalappil House, Mundaparamba PO, Malappuram – 676509, Kerala, India

Date of Birth/Age :

27.01.1962

Date of Appointment :

31.03.2010

DIN No.:

02736759

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U32202KA1994PLC015460	Cellcomm Solutions Limited	Whole-time director	1/04/2010	31/03/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 10.08.2011

Names of Shareholders	No. of Shares
Alex P. J	1439625
Priya Alex	4125
K. A. Davis	2574938
Sasi Kumar .G	17875
Suresh Kumar Kodallur	31875
Simon K. A.	237188
Vijayan K. M.	474375
Thomas Varughese	27500
Linoj K. George	17500
Ponnappa K. M.	15063
Sunil Vadakk-eveettil Thomas	9375
Sagarneel Banerjee	7500
Shibu Paul	7500
Prakash M. R	5000
Anu Krishna Das	2500
Santhosh Kumar B	2500
Winston Prabhakar	7500
Total	4881939

Equity Share Break up (Percentage of Total Equity)

As on 10.08.2011

Category	Percentage
Directors or relatives of Directors	96.89
Other top fifty shareholders	3.11
Total	100.00

BUSINESS DETAILS

Line of Business :

Providing Cellular Phone Accessories and Services.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Cellular Phone Accessories	85

PRODUCTION STATUS AS ON 31.03.2011

Licensed Capacity	Unit	NA
Installed Capacity	Unit	200000
Actual Production	Unit	33020

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Citibank N.A, 506-507, Level 5, Prestige Meridian, No.30, M.G. Road, Bangalore – 560001, Karnataka, India

· ABN Amro Bank N. V., 74, Sakhar Bhavan, 7^th Floor, Nariman Point, Mumbai – 400021, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Car Loan	12.002	12.092
Total	12.002	12.092

Banking Relations :	--
Auditors :
Name :	Gnanoba and Bhat Chartered Accountants
Address :	No. 45, I Floor, Annamalai Arcade, I Cross, Wilson Garden, Hosur Main Road, Bangalore – 560027, Karnataka, India
PAN.:	AAAFG5742M
Subsidiaries :	· Cellcomm Solutions Dhaka Limited · Cellcomm Middle East FZE · Cellcomm HK Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4881939	Equity Shares	Rs.10/- each	Rs.48.819 Millions

Note :

Of the above 2250 equity shares of Rs.10/- each are issued during the year on Preferential allotment

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		48.819	48.797	39.037
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		173.794	168.054	153.585
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		222.613	216.851	192.622
LOAN FUNDS
1] Secured Loans		12.002	12.092	1.202
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		12.002	12.092	1.202
DEFERRED TAX LIABILITIES		3.586	3.600	3.163
TOTAL		238.201	232.543	196.987
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		41.374	41.043	25.887
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		65.047	35.105	0.005
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	22.590	14.176	56.570
	Sundry Debtors	93.972	84.632	196.501
	Cash & Bank Balances	15.453	58.743	85.596
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	146.645	139.502	63.095
Total Current Assets		278.660	297.053	401.762
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	9.521	9.519	115.670
	Other Current Liabilities	23.712	21.732	25.462
	Provisions	113.647	109.407	89.535
Total Current Liabilities		146.880	140.658	230.667
Net Current Assets		131.780	156.395	171.095
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		238.201	232.543	196.987

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	223.618	295.068	657.005
		Other Income	9.836	7.698	0.760
		TOTAL	233.454	302.766	657.765
Less	EXPENSES
		Increase/ Decrease in Inventory	(3.389)	28.678	(44.284)
		Other Expenses (including depreciation)	221.284	197.064	472.763
		TOTAL	217.895	225.742	428.479
	PROFIT BEFORE TAX		15.559	77.024	229.286
Less	TAX		4.234	27.660	83.923
	PROFIT AFTER TAX		11.325	49.364	145.363
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		141.416	122.123	22.685
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	4.936	14.536
		Interim Dividend	0.000	21.484	9.677
		Proposed Dividend	4.882	0.000	2.193
		Tax on Proposed/ Interim Dividend	0.792	3.651	0.000
		Issue of Bonus Shares	0.000	0.000	19.519
	BALANCE CARRIED TO THE B/S		147.067	141.416	122.123
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.000	0.000	0.245
	TOTAL EARNINGS		0.000	0.000	0.245
	IMPORTS
		C.I.F Value of Imports	134.638	74.231	298.582
	TOTAL IMPORTS		134.638	74.231	298.582
	Earnings Per Share (Rs.)		2.32	10.11	37.24

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.85	16.30	22.09
Net Profit Margin (PBT/Sales)	(%)	6.96	26.10	34.89
Return on Total Assets (PBT/Total Assets}	(%)	4.86	22.78	53.62
Return on Investment (ROI) (PBT/Networth)		0.07	0.36	1.19
Debt Equity Ratio (Total Liability/Networth)		54.57	0.70	1.20
Current Ratio (Current Asset/Current Liability)		1.89	2.11	1.74

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL AND OPERATIONAL PERFORMANCE

During the year, the Company's performance was satisfactory. However due to the fluctuations in the market, the sales figures have come down when compared to previous year. The Total Income during the year was Rs.236.844 Millions (Previous Year Rs.274.088 Millions) as against Total Expenditure (including Depreciation) of Rs.221.285 Millions (Previous Year Rs.197.065 Millions), resulting in Net Profit of Rs.11.325 (Previous Year Rs.49.364 Millions) after providing for Taxes.

BUSINESS STRATEGIES AND FUTURE PROSPECTS/OUTLOOK

The following are the Business strategies and future outlook of the Company:

(a) Introducing latest technology products in in-building solutions market.

(b)Expanding service activities to more technical areas like net work audit, bench marking, BTS installation etc

(c) Expanding domestic market to northeast and underdeveloped areas

(d)Concentrating on unexplored international markets like Africa

(e)Strategic investments in areas like 'third party IBS lease model’; and

(f) Restructuring the organization

FIXED ASSETS

· Building

· Temporary Partition

· Motor Car

· Computer

· Office Equipment

· Furniture and Fixtures

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.52.78
UK Pound	1	Rs.81.79
Euro	1	Rs.67.46

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.