MIRA INFORM REPORT

Report Date :

02.06.2012

IDENTIFICATION DETAILS

Name :	PAYTRONIC NETWORK PRIVATE LIMITED
Registered Office :	B5-B6, Narayan Plaza, HDFC Compound, Chandivli Road, Andheri (East), Mumbai – 400 072, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.03.2007
Com. Reg. No.:	11-168537
Capital Investment / Paid-up Capital :	Rs.87.400 millions
CIN No.: [Company Identification No.]	U74999MH2007PTC168537
TAN No.: [Tax Deduction & Collection Account No.]	MUMP23869G
PAN No.: [Permanent Account No.]	AAECP2622A
Legal Form :	Private Limited Liability Company
Line of Business :	Distributors of E Pins.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (13)

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 moderate track. There appears huge accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a 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 – 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 :	B5-B6, Narayan Plaza, HDFC Compound, Chandivli Road, Andheri (East), Mumbai – 400 072, Maharashtra, India
Tel. No.:	91-22-42144400
Fax No.:	91-22-67424772
E-Mail :	info@paytronicindia.com mail@ocpl.co.in sweta.shah@paytronicindia.com
Website :	http://www.paytronicindia.com

DIRECTORS

As on 30.09.2011

Name :

Mr. Nayan Jagjivan Arun

Designation :

Director

Address :

13/154, Ivorine Building, M. Karve Marg, Churchgate, Mumbai – 400 020, Maharashtra, India

Date of Birth/Age :

28.01.1965

Date of Appointment :

09.03.2007

DIN No.:

00109623

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U65993MH1999PTC119562	Odyssey Capital Private Limited	Director	26-02-00	26-02-00	Active	NO
2	U51900MH1950PTC008051	J V Gokal and Company Private Limited	Director	28-09-05	01-04-05	Active	NO
3	U00000CH2004PLC027625	Spray Engineering Devices Limited	Nominee director	08-08-07	19-12-06	Active	NO
4	U72200PN2005PTC020789	Iplus Technologies Private Limited	Director	17-08-07	05-01-07	Active	NO
5	U74999MH2007PTC168537	Paytronic Network Private Limited	Director	09-03-07	09-03-07	Active	NO
6	U72200PN2006PTC129331	Indiaproperties.com Private Limited	Director	14-06-08	25-06-07	Active	NO
7	U72900MH2007PTC173398	Accord Fintech Private Limited	Director	24-09-08	15-07-08	Active	NO
8	U51909MH1995PTC161783	Rapid Suppliers Private Limited	Director	22-09-08	22-09-08	Active	NO
9	U51909MH2007PTC173284	Meet Mercantile Private Limited	Director	29-01-09	29-01-09	Active	NO
10	U72200MH2000PTC125338	Myzus Infotech Private Limited	Director	30-09-09	20-05-09	Active	NO
11	U62200MH2007PTC172961	Heligo Charters Private Limited	Additional director	20-07-11	20-07-11	Active	NO
12	U40300MH2011PTC224685	Interenergo JVG Engineering Company Private Limited	Director	08-12-11	08-12-11	Active	NO
13	U85191MH2012NPL227027	Jagjivan Foundation	Director	16-02-12	16-02-12	Active	NO

Name :

Mr. Pradeep Thomas Abraham

Designation :

Managing Director

Address :

Deep CHS, 5/62, D.N. Nagar, J.P. Road, Andheri (West), Mumbai – 400 053, Maharashtra, India

Date of Birth/Age :

26.04.1971

Qualification :

B.E. Instrumentation

Experience :

16 plus years

Date of Appointment :

30.07.2009

DIN No.:

02870596

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U72200MH2000PTC125338	Myzus Infotech Private Limited	Director	30-07-09	30-07-09	Active	NO
2	U74999MH2007PTC168537	Paytronic Network private Limited	Managing director	30-07-09	30-07-09	Active	NO
3	U74900MH2010NPL206593	Fidel Network Foundation	Director	13-08-10	13-08-10	Active	NO

KEY EXECUTIVES

Name :	Ms. Snehal Manish Raikar
Designation :	Secretary
Address :	403, Gorai Disha CHS, Plot No.50, L.T. Road, Gorai, Borivali (West), Mumbai – 400 092, Maharashtra, India
Date of Birth/Age :	20.08.1983
Date of Appointment :	11.01.2011
PAN No.:	ARMPR9029H
E-Mail:	snehal.raikar@paytronicindia.com
Name :	Ms. Trupti Baliram Wadekar
Designation :	Secretary
Address :	10/502, Anita Nagar, Lokhandwala Township, Kandivali (East), Mumbai – 400 101, Maharashtra, India
Date of Birth/Age :	26.12.1988
Date of Appointment :	06.02.2012
PAN No.:	ABHPW4799A
E-Mail :	truptiwadekar7@gmail.com
Name :	Mr. Rajugopal Pillai
Designation :	(General Manager – Admin and HR)
Name :	Mr. Gaurav Nadgouda
Designation :	Manager-Retail Branding
Name :	Ms. Anuradha Welfode
Designation :	Assistant Manager HR

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Nayan Arun Jagjivan	4819800
Shridhar Venkatesh	100
Yatish Trading Company Private Limited, India	100
Nakul Arun Jagjivan	3920000
Total	8740000

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	0.0011
Directors or relatives of directors	99.9989
Total	100.00

BUSINESS DETAILS

Line of Business :

Distributors of E Pins.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Not Available

Facilities :

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Working capital loans banks unsecured	180.198	120.989
Interest accrued due other debt unsecured	11.437	8.327
Total	191.635	129.316

Banking Relations :	--
Auditors :
Name :	V. Sankar Aiyar and Company Chartered Accountants
Address :	2-C, Court Chambers, 35, New Marine Lines, Mumbai - 400 020, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAAFV0781D
Group Companies :	v Myzus InfoTech Private Limited v Odyssey Capital Private Limited v Yatish Trading Company Private Limited

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8740000	Equity Shares	Rs.10/- each	Rs.87.400 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		87.400	87.400	87.400
2] Share Application Money Pending Allotment		2.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(223.081)	(162.517)	(101.813)
NETWORTH		(133.681)	(75.117)	(14.413)
LOAN FUNDS
1] Secured Loans		0.000	0.000	48.579
2] Unsecured Loans		191.635	129.316	0.000
TOTAL BORROWING		191.635	129.316	48.579
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		57.954	54.199	34.166
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16.885	9.375	11.198
Capital work-in-progress		1.530	8.269	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		6.386	6.489	6.309
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	13.986	14.870	13.720
	Other Current Assets	0.000	0.087	0.066
	Loans & Advances	60.581	40.586	29.833
Total Current Assets		74.567	55.543	43.619
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.156	2.109	5.725
	Other Current Liabilities	39.579	22.365	13.513
	Provisions	0.679	1.003	7.722
Total Current Liabilities		41.414	25.477	26.960
Net Current Assets		33.153	30.066	16.659
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		57.954	54.199	34.166

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	21.590	15.645	15.238
		Other Income
		TOTAL	21.590	15.645	15.238
Less	EXPENSES
		Office Expenses	82.050	76.529	103.806
		Administrative Expenses
		Advertising Expenses
		TOTAL	82.050	76.529	103.806
	PROFIT/ (LOSS) BEFORE TAX		(60.460)	(60.884)	(88.568)
Less	TAX		0.104	(0.180)	0.887
	PROFIT/ (LOSS) AFTER TAX		(60.564)	(60.704)	(89.455)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(162.517)	(101.813)	(12.358)
	BALANCE CARRIED TO THE B/S		(223.081)	(162.517)	(101.813)
	Earnings/ (Loss) Per Share (Rs.)		(6.93)	(6.95)	(23.03)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(280.52)	(388.01)	(587.05)
Return on Total Assets (PBT/Total Assets}	(%)	(66.11)	(93.79)	(161.57)
Return on Investment (ROI) (PBT/Networth)		0.45	0.81	6.15
Debt Equity Ratio (Total Liability/Networth)		(1.74)	(2.06)	(5.24)
Current Ratio (Current Asset/Current Liability)		1.80	2.18	1.62

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) 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	Yes
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	No
24) Banking facility details	No
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

Note:

The registered office of the company has been shifted from 402, Wellington Business Park-1, Andheri Kurla Road, Andheri (East), Mumbai – 400 059, Maharashtra to the present address w.e.f. 27.07.2010.

FINANCIAL PERFORMANCE:

The Company has incurred a loss after tax of Rs.60.564 millions during the financial year ended 31^st March, 2011.

FIXED ASSETS:

Tangible Assets

v Leasehold Improvements

v Computer

v Office Equipments

v Furniture and Fixtures

v Plant Machinery

Intangible Assets

v Computer Software

WEBSITE DETAILS:

PROFILE:

Subject, a technology driven and customer focused organization, is building India's electronic consumer payments network. The company believes in strengthening the business of its customers through proactive product development resulting in convenience and value to all its customers. Subject is in the business of implementing and operating payment networks for multiple services namely mobile prepaid top-up, DTH top-up and Cash acceptance for various services providers/utilities. Their Merchants provide these services either through their mobile phones or through web (in case they have a PC with internet). Typically, by signing up to be a part of their network, merchants enhance their profitability by delivering new services, accepting more modes of payments and encouraging more profitable buying behavior. It is their vision to build branded networks that are widely recognized, accepted and trusted and they feel this is critical to their long term success as an organization.

Subject is a privately held company funded by Odyssey Capital - a large private equity fund with stakes in multiple high growth companies across the globe. Some of Odyssey's portfolio companies include BRICS Securities (Formerly Birla Sunlife Securities), SKS Microfinance, MapMyIndia, SWEdish and Wayfinder (Now part of Vodafone U.K)

MANAGEMENT TEAM:

Mr. Pradeep Thomas Abraham– Managing Director

Thomas, as he is known to his colleagues, is part of the founding team at Subject He has a degree in Instrumentation and Process Control with over 16 plus years experience in the IT and telecommunication industry, having worked with large multinationals as well as start-ups. His hands on experience in channel management, technology and operations are an asset to the organisation. From initially managing sales of air purification systems for distributed process control systems to selling and implementing high end wireless paging systems from Motorola, his experience has been multifarious. A stint that further enriched him was joining the Global consumer electronics Giant CASIO that gave him an opportunity to be involved in strategies for regional and national channel management. But what was more significant was the opportunity in implementing the strategies and learning from them. He also has considerable exposure to the middle-east market especially in the UAE where he had setup a technology start-up in Dubai Internet city. Immediately prior to Subject, he was briefly with Mahindra and Mahindra in the information security domain (SSG) heading their Middle East business.

Rajugopal Pillai (GM – Admin and HR)

Rajugopal has 17 years of experience in the Software and Telecom Industry in administration, project management and HR domain. He has exceptional people skills and ability to analyze, relate and interface easily at all levels of the corporate ladder. Prior to Subject, he was associated with Hewlett Packard (HP) India.

Gaurav Nadgouda (Manager-Retail Branding)

Gaurav holds an MBA in Marketing and has over 4 years of rich experience in Branding, key Account Management and Marketing. Promoting and managing 3M Signage Solutions in a corporate environment was one of the early assignments that gave him excellent exposure in the branding and merchandising space. Prior to joining Subject he was with Oxigen Services Private Limited wherein he was responsible for all the marketing activities in the western region.

Anuradha Welfode (Assistant Manager HR)

Anuradha has over 2 years of experience in the HR domain handling a generalist profile. She is a typical people’s person who connects with team members at all levels. A graduate in commerce she has enhanced her profile with a diploma in Human Resource Management. She is an asset to the organisation and adds a positive vibe to the work culture at Subject. Prior to Subject, she was handling the HR profile, managing knowledge workers from the IT industry at Intellvisions Software Limited

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.55.92
UK Pound	1	Rs.86.03
Euro	1	Rs.69.13

INFORMATION DETAILS

Report Prepared by :

SMN

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	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		13

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.