MIRA INFORM REPORT

Report Date :

26.07.2012

IDENTIFICATION DETAILS

Name :	SHOGHI COMMUNICATIONS LIMITED (w.e.f. 22.09.2000)
Formerly Known As :	SHOGHI COMMUNICATION PRIVATE LIMITED
Registered Office :	Plot No.74, Electronic Complex, Industrial Area Shoghi, Shimla – 173 219, Himachal Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.11.1998
Com. Reg. No.:	06-021981
Capital Investment / Paid-up Capital :	Rs.8.850 Millions
CIN No.: [Company Identification No.]	U64203HP1998LC021981
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers of Electronic Components
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (12)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Financial position of the company is under severe pressure. Accumulated losses appears to be increasing. There appears a huge dip in the sales turnover of the company during 2011. It has incurred loss during this year. Business is active. Payments are reported to be slow. Initially, the company can be considered for business dealings on a safe and secured 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 – 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

RBI DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ 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.

LOCATIONS

Registered Office :	Plot No.74, Electronic Complex, Industrial Area Shoghi, Shimla – 173 219, Himachal Pradesh, India
Tel. No.:	91-177-2626733 / 2860601
Fax No.:	91-177-2860602
E-Mail :	mg@shogi.co.in sales@shoghicom.com
Website :	http://www.shoghicom.com
Corporate Office :	A-57, Sector-6, Noida – 201301, Uttar Pradesh, India
Tel. No.:	91-120-4036600 / 4036601
Fax No.:	91-120-4036602

DIRECTORS

As on 29.09.2011

Name :

Mr. Harish Gupta

Designation :

Director

Address :

24, Flag Staff Road, New Delhi-110054, India

Date of Birth/Age :

03.08.1951

Date of Appointment :

20.09.2005

DIN No.:

00089724

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U15200HP1998PLC021981	SHOGHI COMMUNICATIONS LIMITED	Managing director	20/09/2005	20/09/2005	-	Active	NO
2	U01403DL2007PTC163954	SHIMLA HILLS OFFERINGS PRIVATE LIMITED	Director	25/05/2007	25/05/2007	-	Active	NO
3	U15137MN2004PLC007305	EXOTIC JUICES LIMITED	Director	16/03/2009	16/03/2009	15/12/2011	Active	NO
4	U15490NL2010PTC008274	SHILLOI FOODS PRIVATE LIMITED	Director	03/06/2010	03/06/2010	-	Under Process of Striking off	NO

Name :

Mrs. Madhu Gupta

Designation :

Director

Address :

24, Flag Staff Road, New Delhi-110054, India

Date of Birth/Age :

03.12.1955

Date of Appointment :

01.04.2005

DIN No.:

00089833

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U15200HP1998PLC021981	SHOGHI COMMUNICATIONS LIMITED	Director	27/11/1998	27/11/1998	-	Active	NO
2	U64200DL1993PLC053773	SIDHI TECH SERVICES LIMITED	Director	19/02/2007	19/02/2007	-	Strike off	NO
3	U01403DL2007PTC163954	SHIMLA HILLS OFFERINGS PRIVATE LIMITED	Director	25/05/2007	25/05/2007	-	Active	NO

Name :

Mr. Anant Bindal

Designation :

Director

Address :

24, Flag Staff Road, New Delhi-110054, India

Date of Birth/Age :

11.09.1976

Date of Appointment :

01.04.2005

DIN No.:

00089851

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U64200DL1993PLC053773	SIDHI TECH SERVICES LIMITED	Director	11/09/1998	11/09/1998	-	Strike off	NO
2	U15200HP1998PLC021981	SHOGHI COMMUNICATIONS LIMITED	Director	01/12/1999	01/12/1999	-	Active	NO

Name :

Mrs. Ashita Bindal

Designation :

Director

Address :

24, Flag Staff Road, New Delhi-110054, India

Date of Birth/Age :

09.06.1976

Date of Appointment :

01.04.2005

DIN No.:

00089860

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U64200DL1993PLC053773	SIDHI TECH SERVICES LIMITED	Director	11/09/1998	11/09/1998	-	Strike off	NO
2	U15200HP1998PLC021981	SHOGHI COMMUNICATIONS LIMITED	Director	01/12/1999	01/12/1999	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
Harish Gupta	130000
Madhu Gupta	538250
Anant Bindal	171375
Harish Gupta and Sons, India	1000
Ashita Bindal	2000
Anant Bindal HUF	1000
Sukrit Bindal	20375
Varen Bindal	21000
Total	885000

As on 29.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	99.89
Other top fifty shareholders	0.11
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers of Electronic Components
Products :	· Intelligence | Surveillance | Reconnaissance · Electronic Warfare · Avionics · High Resolution Imagery · Communication Security · Trainings

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Canara Bank, Wazirpur Branch, 18, Community Centre, Ashok Vihar, Delhi - 110052, India

· HDFC Bank

· Kotak Mahindra Bank

· ICICI Bank

· Axis Bank

· IDBI Bank Limited

· State Bank of India

· Punjab and Sind Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Working Capital Loans
Canara Bank OD A/C (Secured against hypothecation of Stocks and Book Debts)	10.005	0.263
TERM LOANS
Canara Bank : Term Loan	14.976	21.700
Total	24.981	21.963
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Anil Bhaskar	2.500	0.000
Jai Shree Rasayan Udyog	1.000	0.000
Sham Sunder Vasudeva	0.300	0.000
Total	3.800	0.000

Banking Relations :	--
Auditors :
Name :	MLG Associates Chartered Accountants
Address :	House No.63, Sector – 15, Faridabad – 121 006, Haryana, India
Tel. No.:	91-129-2283881
E-Mail :	mlgupta@mlgassociates.org groupmlg@eth.net
PAN.:	AAGFM1817M

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
885000	Equity Shares	Rs.10/- each	Rs.8.850 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		8.850	8.850	8.850
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		15.280	15.280	15.280
4] (Accumulated Losses)		(32.607)	(22.833)	(29.570)
NETWORTH		(8.477)	1.297	(5.440)
LOAN FUNDS
1] Secured Loans		24.981	21.963	3.208
2] Unsecured Loans		3.800	0.000	0.000
TOTAL BORROWING		28.781	21.963	3.208
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		20.304	23.260	(2.232)
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		20.579	21.962	23.667
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.250	0.250	2.500
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	13.261	7.407	1.946
	Sundry Debtors	0.443	0.456	0.257
	Cash & Bank Balances	2.018	2.016	7.136
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	4.044	4.590	14.776
Total Current Assets		19.766	14.469	24.115
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	14.427	8.652	5.030
	Other Current Liabilities	5.864	4.112	46.980
	Provisions	0.000	0.657	0.504
Total Current Liabilities		20.291	13.421	52.514
Net Current Assets		(0.525)	1.048	(28.399)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		20.304	23.260	(2.232)

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	13.360	116.311	146.795
		Other Income	0.211	0.803	2.256
		TOTAL (A)	13.571	117.114	149.051
Less	EXPENSES
		Cost of Good Sold	(5.581)	76.427	112.785
		Manufacturing, Administrative and Selling Expenses	23.499	27.675	31.776
		TOTAL (B)	17.918	104.102	144.561
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(4.347)	13.012	4.490
Less	FINANCIAL EXPENSES (D)		3.433	3.591	8.685
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(7.780)	9.421	(4.195)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.810	2.032	2.223
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(9.590)	7.389	(6.418)
Less	TAX (H)		0.184	0.652	(0.813)
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(9.774)	6.737	(5.605)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(22.833)	(29.570)	(23.965)
	BALANCE / (LOSS) CARRIED TO THE B/S		(32.607)	(22.833)	(29.570)
	EARNINGS IN FOREIGN CURRENCY		11.476	112.917	3.638
	TOTAL IMPORTS		0.000	81.012	10.574
	Earnings Per Share (Rs.)		(11.50)	NA	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(72.02)	5.75	(3.76)
Net Profit Margin (PBT/Sales)	(%)	(71.78)	6.35	(4.37)
Return on Total Assets (PBT/Total Assets}	(%)	23.77	20.28	13.43
Return on Investment (ROI) (PBT/Networth)		1.13	5.70	1.18
Debt Equity Ratio (Total Liability/Networth)		5.79	27.28	(10.24)
Current Ratio (Current Asset/Current Liability)		0.97	1.08	0.46

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	(No)
10]	Designation of contact person	(No)
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	(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]	PAN of Proprietor/Partner/Director, if available	(No)
32]	Passport No of Proprietor/Partner/Director, if available	(No)
33]	Voter ID No of Proprietor/Partner/Director, if available	(No)

OPER ATIONS

Year 2010-2011 the Directors have achieved Turnover of Rs.13.360 Millions against Rs.116.311 Millions of Previous Year. Net Losses for the year amount to Rs.9.774 Millions which have been carried forward. Accumulated losses amount to Rs.32.600 Millions against Paid up Capital and Reserve of Rs 24.100 Millions.

CONTINGENT LIABILITIES

Rs. In Millions

Particular	31.03.2011	31.03.2010
Bank Guarantees	1.100	1.100

FIXED ASSETS:

• Land
• Building
• Equipments
• Furniture and Fixture
• Electrical Fittings
• Computers
• Plant and Machinery
• Car
• Scooter
• Fire Fighting Equipment
• Building under Construction

AS PER WEBSITE

COMPANY OVERVIEW

Around the world the Military, Defence forces and Intelligence agencies of more than seventy countries reach out for Subject. when it comes to integrated electronic defense technologies, products and systems.

Subject has been recognized as one of the fastest growing defense technology company globally holding leading market position with reliability and responsiveness in Electronic Sensor Systems, Communication Intelligence and Information Processing Systems, Jamming Systems for Radio Operated IED, Signal Processing and Data Acquisition Systems, High Resolution Processed Satellite Imagery, Military Grade Encryption, Network Security Systems, Integrated Logistics and Support Services. 

Subject based at Shoghi in Himachal Pradesh, India is a leading supplier and provider of innovatively integrated electronic Systems, products and services to military forces, intelligence agencies of nation-states and to our prime global contractors. 

Focused on defense technology and preemptive counterintelligence strategies, Shoghi develops, manufactures and supports a wide range of systems for mission critical and military sustained requirements, as well as futuristic homeland security demands, especially in the context of counter terrorism. 

For our customer nation-states around the world, Shoghi is a single turnkey source for obtaining the tested and proven best intelligence and Electronic Warfare technologies along with systems expertise to link them into a seamless interoperable network. 

Shoghi's broad and efficient range of mission critical systems sharp and smooth sustained solutions uniquely position Shoghi to support the ongoing superiority of the military's current force, as well as the modernization process and the emerging innovative transformation initiatives towards Future Force.

Press Release

2012 May

Shoghi Communications Limited: A leader in ISR technologies

May 7, 2011

With strong presence in SOFEX’2012, Shoghi Communications Limited an Indian based company showcased its products and services in the diverse fields of intelligence, surveillance and reconnaissance (ISR), electronic warfare (EW), communication security, satellite imaging and avionics solutions with an impressive display of their flagship systems. The company had set up an impressive array of equipments on display during their presence in the event. The brightly colored stall at the exhibition was noted teeming with visitors during the entire show over four days.

On display was the Tactical Thuraya Monitoring system with a set of multiple servers installed in a military ruggedized rack giving a full-fledged demonstration of its capabilities based on recorded signals. The system depicted the working of a complete set of equipment for the monitoring of four spot beams of the Thuraya network. The system was configured with industrial computers configured for each of the four spot beams and with an online decryption server and a storage server for storage of the intercepted calls and SMS. The system demonstration provided an opportunity for a large contingent of foreign delegates to witness the capabilities of demodulation, decoding, decryption and recording of calls which could be played over a click of a mouse to hear using a set of earphones

Another system on display which attracted the attention of several delegations was the Satellite Monitoring System. The system designed to work in both C and Ku bands also depicted the technology advancement of the Indian company wherein a duplex satellite link could be completely. The system is also able to monitor any international IP gateways connected on satellite networks to provide a complete recording of all IP traffic and is able to record and display emails; Chat, Web and FTP traffic on the operator GUI. 

Apart from this the delegates were also given specific presentation and solutions on Shoghi are various applications like High Resolution Satellite Imaging, MRO services of aircrafts, Communication Security etc.

Shoghi Communications Limited with their impressive display was a popular haunt of the various military delegations of several countries. Their informative demos, presentation and illustration on products gave deeper understanding and knowledge on homeland security.

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.56.38
UK Pound	1	Rs.87.44
Euro	1	Rs.68.05

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	1
--RESERVES	1~10	--
--CREDIT LINES	1~10	1
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		12

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.