MIRA INFORM REPORT

Report Date :

04.07.2012

IDENTIFICATION DETAILS

Name :	MERIDIAN INFOTECH LIMITED
Formerly Known As :	MERIDIAN INFOTECH PRIVATE LIMITED
Registered Office :	201-202, Vice Regal, 15 Punit Nagar, Off Old Padra Road, Vadodara-390015, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	16.11.1995
Com. Reg. No.:	04-028142
Capital Investment / Paid-up Capital :	Rs. 4.985 Millions
CIN No.: [Company Identification No.]	U30007GJ1995PLC028142
TAN No.: [Tax Deduction & Collection Account No.]	BRDM01011D
PAN No.: [Permanent Account No.]	AABCM3420E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Trader of Networking Parts
No. of Employees :	35 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 77000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported to be fair. Business is active. Payment are reported to be usually correct and as per commitments. The company can be considered for normal 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.

INFORMATION PARTED BY

Name :	Mr. Pratik
Designation :	Accounts Assistant
Contact No.:	91-265-6544741
Date :	02.07.2012

LOCATIONS

Registered Office :	201-202, Vice Regal, 15 Punit Nagar, Off Old Padra Road, Vadodara-390015, Gujarat, India
Tel. No.:	91-265-6544741 / 2357499
Fax No.:	91-265-2357499
E-Mail :	accounts@meridian.co.in devang@meridian.co.in info@merindian.co.in
Website :	www.meridian.co.in
Location :	Owned

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Bhavesh Dhanvanrai Buddhadev
Designation :	Director
Address :	55, Sangeeta Apartments, Opposite Akota Stadium, Vadodara-390020, Gujarat, India
Date of Birth/Age :	03.04.1970
Date of Appointment :	16.11.1995
DIN No.:	00326827
Name :	Mr. Jayesh Dhirajlal Buddhadev
Designation :	Director
Address :	702, Rajeshri Acord, Tally Gully Cross Lane, Off S. N. Road, Andheri (East), Mumbai-400069, Maharashtra, India
Date of Birth/Age :	18.07.1962
Date of Appointment :	16.11.1995
DIN No.:	00995070
Name :	Mr. Devang Dhimantray Jasani
Designation :	Director
Address :	GF, 1, Parisharm Apartment, Swati, 76, vishwas Colony, Alkapuri, Vadodara-390007, Gujarat, India
Date of Birth/Age :	22.06.1972
Date of Appointment :	19.05.2010
DIN No.:	01027764

KEY EXECUTIVES

Name :	Mr. Pratik
Designation :	Accounts Assistant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Jayesh Buddhdev	125888
Bhavesh Buddhdev	205426
Hemangi Buddhdev	68336
Mehul Buddhdev	4700
Atul Patel	9990
Associated Infotech Limited, India	39600
Jayesh Buddhdev	38575
R. L. Capital Private Limited, India	6000
TOTAL	498515

AS ON 30.09.2011

Equity Shares Break Up	Percentage
Bodies corporate	9.15
Directors or relatives of Directors	88.85
Other top fifty shareholders	2.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :	Trader of Networking Parts
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

· Redington India Limited

Customers :

End Users

· S R Steel

No. of Employees :

35 (Approximately)

Bankers :

· State Bank of India, Small and Medium Enterprises, City Credit Centre, Commerce Centre, 6^th Floor, Opposite BBC Tower, Sayaji Gunj, Vadodara-390005, Gujarat, India

· Syndicate Bank, Opposite Hotel Express, Alkapuri, R. C Dutt Road, Baroda-390005, Gujarat, India

· ICICI Bank

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
(Secured against hypothecation of stock of Net-Working spares)
Cash Credit facility with Syndicate Bank	0.000	(1.976)
Cash Credit Facility with State Bank of India	4.856	0.000
Total	4.856	(1.976)
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Directors and Relative
Hemangi Buddhdev	1.395	0.602
Jayesh Buddhdev	0.519	0.020
Dilip Mehta	0.150	0.000
Dilip Phopharia (HUf)	0.350	0.000
Jasvant Shah	0.150	0.000
Jayaben Sheth	0.225	0.000
Jayesh Mehta	0.100	0.000
Jaysukhlal Mehta	0.100	0.000
Kalpana Mehta	0.100	0.000
Kantilal Mehta	0.150	0.000
Lilavanti Shah	0.250	0.000
Nishit Buddhdev	0.450	0.000
Rakshit Buddhdev	0.100	0.000
Sukan Engineering Private Limited	0.400	0.000
Vasantben Mehta	0.300	0.000
Total	4.739	0.622
State Bank of India Cash Credit Limit Rs. 8.900 Millions.

Banking Relations :	--
Auditors :
Name :	Jayesh Mehta Chartered Accountant
Address :	2, Maruti Apartment, 31, Haribhakti Colony, Race Course, Vadodara-390007, Gujarat, India
Tel. No.:	91-265-2336428 / 2357339 / 2357340 / 3249955
Mobile No.:	91-265-2313348
Pan No.:	AAUPM0084G

CAPITAL STRUCTURE

AS ON 31.03.2011

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
498515	Equity Shares	Rs.10/- each	Rs. 4.985 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		4.985	4.985	4.985
2] Share Application Money		2.200	3.400	0.000
3] Reserves & Surplus		12.135	8.190	4.522
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		19.320	16.575	9.507
LOAN FUNDS
1] Secured Loans		4.856	(1.976)	1.382
2] Unsecured Loans		4.739	0.622	0.000
TOTAL BORROWING		9.595	(1.354)	1.382
DEFERRED TAX LIABILITIES		0.316	0.219	0.100
TOTAL		29.231	15.440	10.989
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.635	3.016	2.251
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.001	0.001	0.001
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	12.418	7.167	8.471
	Sundry Debtors	28.378	19.308	7.286
	Cash & Bank Balances	0.583	0.516	1.624
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.812	2.217	3.038
Total Current Assets		43.191	29.208	20.419
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	16.167	15.434	10.860
	Other Current Liabilities	0.977	0.733	0.478
	Provisions	0.452	0.618	0.344
Total Current Liabilities		17.596	16.785	11.682
Net Current Assets		25.595	12.423	8.737
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		29.231	15.440	10.989

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	102.480	48.379	47.105
		Commission	0.000	6.588	4.678
		Other Income	0.756	0.266	0.063
		TOTAL (A)	103.236	55.233	51.846
Less	EXPENSES
		Cost of Material	89.143	40.840	41.539
		Administrative Expenses	3.874	4.721	2.842
		Employee Benefits and Related Costs	3.937	4.096	4.022
		Fringe Benefit Tax	0.000	0.000	0.044
		TOTAL (B)	96.954	49.657	48.447
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6.282	5.576	3.399
Less	FINANCIAL EXPENSES (D)		0.211	0.080	0.124
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6.071	5.496	3.275
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.267	0.161	0.117
	PROFIT BEFORE TAX (E-F) (G)		5.804	5.335	3.158
Less	TAX (H)		1.860	1.667	0.958
	PROFIT AFTER TAX (G-H) (I)		3.944	3.668	2.200
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		7.640	3.972	1.772
	BALANCE CARRIED TO THE B/S		11.584	7.640	3.972
	EARNINGS IN FOREIGN CURRENCY
		Interest, Dividend and Other Income	0.000	6.588	4.628
	TOTAL EARNINGS		0.000	6.588	4.628
	Earnings Per Share (Rs.)		7.91	7.36	--

Particulars	31.03.2012
Sales Turnover (Approximately)	130.000

Expected Sales (2012-2013) : Rs. 200.000 Millions

The above information has been parted by Mr. Pratik.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.82	6.64	4.24
Net Profit Margin (PBT/Sales)	(%)	5.66	11.03	6.70
Return on Total Assets (PBT/Total Assets}	(%)	12.39	16.56	13.93
Return on Investment (ROI) (PBT/Networth)		0.30	0.32	0.33
Debt Equity Ratio (Total Liability/Networth)		1.42	0.94	1.38
Current Ratio (Current Asset/Current Liability)		2.45	1.74	1.75

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1. Year of Establishment	Yes
2. Locality of the firm	Yes
3. Constructions 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	Yes
18. Major customers	Yes
19. Payments terms	Yes
20. Export / Import details	No
21. Market information	------
22. Litigations that the firm / promoter involved	------
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

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
Creditors for Goods	12.659	12.280	9.408
Creditors for Expenses	3.508	3.154	1.452
TOTAL	16.167	15.434	10.860

OPERATIONAL ACTIVITIES, INCOME AND PROFITABILITY FUTURE OUTLOOK:

The service income of the Company has been increased to Rs. 5.082 Millions during the year as compared to previous year’s service income of Rs. 4.778 Millions. Similarly the total sales increased to Rs. 97.400 Millions as compared to sales of Rs. 436.31. Accordingly there was more than 100% growth in business operation witness by the Company. As a result the total income of the Company has been increased from Rs. 55.233 Millions in last year to Rs. 103.237 Millions during the year. The Net profit after tax was increased from 3.668 Millions to Rs.3.944 Millions during the year. The directors feel that the above financial results are quite satisfactory.

The directors are conscious about the value of services being expected by its customers and therefore they do constantly monitor the services being provided by the Company. The reputation created over a period of time by the Company has made it more responsible to provide value added services to its customers. The directors are taking all efforts to maintain that reputation by providing quality and timely services to the customers of the Company. The directors expect that the sales and profits will increase in the current financial year too.

FORM 8

Corporate identity number of the company	U30007GJ1995PLC028142
Name of the company	MERIDIAN INFOTECH LIMITED
Address of the registered office or of the principal place of business in India of the company	201-202, Vice Regal, 15 Punit Nagar, Off Old Padra Road, Vadodara-390015, Gujarat, India
This form is for	Modification of charge
Charge identification number of the charge to be modified	10259569
Type of charge	Immovable property Book debts Floating charge
Particular of charge holder	State Bank of India, Small and Medium Enterprises, City Credit Centre, Commerce Centre, 6^th Floor, Opposite BBC Tower, Sayaji Gunj, Vadodara-390005, Gujarat, India
Nature of instrument creating charge	Memorandum Relating To Deposit Of Title Deeds
Date of instrument Creating the charge	11.02.2011
Amount secured by the charge	Rs. 8.900 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 3.75% Above SBR which is 7.60% at present, i.e. effective rate of interest 11.35% p.a. Terms of repayment Cash Credit repayable on demand. Margin Stock: 25% Book Debts: 50% Extent and operation of the charge The Charge by way of Hypothecation of stocks and book debts and Equitable mortgage on immovable properties comprising of land and building situated at Flat No. 201-202 and 305 of Vice Regal, O P Road, Baroda. Operates as security to secure the aggregate credit facilities of Rs. 8.900 Millions together with interest, cost, charges etc. Other As per documents executed in favour of bank from time to time.
Short particulars of the property charged (Including location of the property)	Reg. District Vadodara Sub District Vadodara of land bearing RS No. 254 Paiki TPS No.1, FP No. 557 of Sub Plot no. 15 in the scheme Known as "Vice Regal" on 2nd Floor,Flat No. 201 - 202 at O P Road, Baroda. Reg. District Vadodara Sub District Vadodara of land bearing RS No. 254 paiki TPS No.1, FP No. 557 of Sub Plot no. 15 in the scheme Known as "Vice Regal" on 3rd Floor, Flat No. 305 at O P Road, Baroda Hypothecation of stocks and Book debts.
Particulars of the present modification	There is no change in limit. The limit of Rs. 8.900 Millions which was earlier secured by hypothecation of stocks and book debts as per charge created on 24.12.2010 and regd. by ROC on 18.01.2011 is now also further secured by immovable properties comprising of land and building situated at Flat No. 201-202 and 305 of Vice Regal, O P Road, Baroda.

TRADE REFERENCE

· S R Steel

· Redington India Limited

FIXED ASSETS

· Building

· Plant and Machinery

· Air Conditioner

· Digital Camera

· Electrical Installation

· Fax Machine

· Drill Machine

· Networking Tools

· Water Cooler

· Mobile Phone

· Furniture and Fixtures

· Office Equipment

· Vehicles

· Cycle

· License Software

· Computer and Printer

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. 54.81
UK Pound	1	Rs. 86.03
Euro	1	Rs. 69.06

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		44

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.