1. Summary Information

		Country	India
Company Name	VMC SYSTEMS LIMITED	Principal Name 1	Mrs. Vuppalapati Hima Bindu
Status	Good	Principal Name 2	Mr. Bhagavatula Venkata Ramana
		Registration #	01-026477
Street Address	7013, Emerald House, Sarojini Devi Road, Secuderabad – 500003, Andhra Pradesh, India
Established Date	20.02.1997	SIC Code	--
Telephone#	91-40-23541385	Business Style 1	Manufacturer
Fax #	91-40-66317805	Business Style 2	-
Homepage	http://www.vmcindia.com	Product Name 1	Transmission Equipment
# of employees	Not Available	Product Name 2	Power Accessories
Paid up capital	Rs.498,001,000 / -	Product Name 3	Customer Premises Equipments
Shareholders	Directors or relatives of directors - 95.07% Other top fifty shareholders - 4.093%	Banking	Punjab National Bank, Rayala Towers, 3^rd Floor, # 781 – 785, Anna Salai, Chennai – 600002, Tamil Nadu, India
Public Limited Corp.	No	Business Period	15 Years
IPO	No	International Ins.	-
Public Enterprise	No	Rating	A (57)
Related Company
Relation	Country	Company Name	CEO
Note	-

2. Summary Financial Statement

Balance Sheet as of	30.06.2010		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	12,150,351,000	Current Liabilities	4,373,939,000
Inventories	229,066,000	Long-term Liabilities	5,654,391,000
Fixed Assets	219,685,000	Other Liabilities	28,033,000
Deferred Assets	Nil	Total Liabilities	10,056,363,000
Invest& other Assets	527,483,000	Retained Earnings	2,562,221,000
		Net Worth	3,070,222,000
Total Assets	13,126,585,000	Total Liab. & Equity	13,126,585,000
Total Assets (Previous Year)	7,483,170,000
P/L Statement as of	30.06.2010		(Unit: Indian Rs.)
Sales	10,113,379,000	Net Profit	844,592,000
Sales(Previous yr)	6,693,977,000	Net Profit(Prev.yr)	539,964,000

MIRA INFORM REPORT

Report Date :

09.03.2012

IDENTIFICATION DETAILS

Name :	VMC SYSTEMS LIMITED (w.e.f. 23.04.2011)
Formerly Known As :	VUPPALAMRITHA MAGNETIC COMPONENTS LIMITED
Registered Office :	7013, Emerald House, Sarojini Devi Road, Secuderabad – 500003, Andhra Pradesh.
Country :	India
Financials (as on) :	30.06.2010
Date of Incorporation :	20.02.1997
Com. Reg. No.:	01-026477
Capital Investment/ Paid-up Capital:	Rs.498.001 Millions
CIN No.: [Company Identification No.]	U29199AP1997PLC026477
TAN No.: [Tax Deduction & Collection Account No.]	HYDV08413G
PAN No.: [Permanent Account No.]	AABCV4225A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Original Equipment manufacturer of Telecommunication and Networking Equipment and Power – Conversion products.
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (57)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 12280000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track records. Financial position of the company appears to be good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good 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.

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 :	7013, Emerald House, Sarojini Devi Road, Secuderabad, Andhra Pradesh – 500003, India
Tel. No.:	91-40-23541385
Fax No.:	91-40-66317805
E-Mail :	cs@vmcindia.com info@vmcindia.com sailaja@vmcindia.com csaravind.kumar@vmcindia.com
Website :	http://www.vmcindia.com
Corporate Office :	Suite 307, 3^rd Floor, Ashoka My Home Chambers, Sadar Patel Road, Secunderabad – 500003, Andhra Pradesh, India
Tel. No.:	91-40-44602121
Fax No.:	91-40-66317805
Branches :	Locate At : Maheswaram Bangalore Chennai

DIRECTORS

(As on 30.12.2010)

Name :

Mrs. Vuppalapati Hima Bindu

Designation :

Managing Director

Address :

16-11-19 Saleem Nagar, Malakpet, Hyderabad – 500037, Andhra Pradesh, India

Date of Birth/Age :

02.10.1969

Qualification :

M.S.C Physics from IIT Madras

Certificate in Management from, IIM Ahmedabad

Experience :

18 Years

Date of Appointment :

20.02.1997

DIN No:

01582051

Other Directorship:

S.No.	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
1	U29199AP1997PLC026477	VMC Systems Limited	Managing director	1/2/2012	20/02/1997	-	Active	NO
2	U64200AP2009PTC065939	VMC Telecom Services Private Limited	Director	25/11/2009	25/11/2009	-	Active	NO

Name :

Mr. Bhagavatula Venkata Ramana

Designation :

Whole-time Director

Address :

16-11-19 Saleem Nagar, Malakpet, Hyderabad – 500037, Andhra Pradesh, India

Date of Birth/Age :

11.12.1962

Qualification :

B. Tech. , IIT, Madras

Post-Graduate Diploma in Management, IIM Calcutta

Experience :

22 Years

Date of Appointment :

23.09.1998

DIN No:

01270825

Other Directorship:

S.No.	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
1	U72200AP1991PTC012385	STRABUS SOFTWARE SOLUTIONS PRIVATE LIMITED	Director	30/11/2009	26/02/1991	-	Active	NO
2	U29199AP1997PLC026477	VMC Systems Limited	Whole-time director	1/2/2012	23/09/1998	-	Active	NO
3	U64200AP2009PTC065939	VMC Telecom Services Private Limited	Director	25/11/2009	25/11/2009	-	Active	NO

Name :

Mr. Coopoosamy Deven

Designation :

Director

Address :

42 Morc Gurubhurun Petit Verger, Pointe Aux Sables, Mauritius.

Date of Birth/Age :

17.12.1969

Date of Appointment :

30.10.2008

DIN No:

02444284

Other Directorship:

S.No.	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
1	U29199AP1997PLC026477	VMC Systems Limited	Director	25/11/2009	30/10/2008	-	Active	NO
2	U45203OR1995PLC003982	COASTAL PROJECTS LIMITED	Nominee director	25/09/2009	10/11/2008	-	Active	NO

Name :

Mr. Owasil Abdool Azize

Designation :

Director

Address :

Raket Road, Grand Bay, Mauritus

Date of Birth/Age :

26.01.1974

Date of Appointment :

30.10.2008

DIN No:

02632866

Other Directorship:

S.No.	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
1	U29199AP1997PLC026477	VMC Systems Limited	Director	25/11/2009	30/10/2008	-	Active	NO
2	U72300KA2003PTC033038	MANTHAN SOFTWARE SERVICES PRIVATE LIMITED	Nominee director	18/12/2009	18/12/2009	19/03/2010	Active	NO

Name :

Mr.Rajesh Kumar Dugar

Designation :

Alternate Director

Address :

31, Chitrakoot, Altamount Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

01.07.1969

Date of Appointment :

30.10.2008

DIN No:

00307729

Other Directorship:

S.No.	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
1	U72200TN1999PTC042375	INTERCEPT TECHNOLOGIES INDIA PRIVATE LIMITED	Nominee director	21/08/2000	21/08/2000	10/2/2003	Active	NO
2	U70100MH1989PTC053972	SRIPAN LAND DEVELOPMENT PRIVATE LIMITED	Director	9/6/2003	9/6/2003	-	Active	NO
3	U73900MH1998PTC116053	NETMAGIC SOLUTIONS PRIVATE LIMITED	Additional director	24/01/2008	24/01/2008	-	Active	NO
4	U74140MH2007PTC172259	FIL Capital Advisors (India) Private Limited	Director	28/01/2008	28/01/2008	-	Active	NO
5	U45203OR1995PLC003982	COASTAL PROJECTS LIMITED	Alternate director	10/11/2008	25/03/2008	-	Active	NO
6	U29199AP1997PLC026477	VMC Systems Limited	Alternate director	30/10/2008	30/10/2008	-	Active	NO
7	U72300KA2003PTC033038	MANTHAN SOFTWARE SERVICES PRIVATE LIMITED	Nominee director	22/07/2010	18/12/2009	-	Active	NO
8	U45201DL2006PLC156532	PL ENGINEERING LIMITED.	Director	7/5/2010	7/5/2010	-	Active	NO
9	U51505MH1976PLC018741	SHREEM ELECTRIC LIMITED	Director	30/09/2011	14/10/2010	-	Active	NO
10	U72900DL2000PTC103915	MIND SHAPER TECHNOLOGIES PRIVATE LIMITED	Director	11/2/2011	5/2/2011	18/04/2011	Active	NO
11	U63013DL2004PTC128680	TRANSPOLE LOGISTICS Private Limited	Director	16/05/2011	16/05/2011	-	Active	NO
12	U33112KA1993PTC014776	XCYTON DIAGNOSTICS Private LIMITED	Director	25/11/2011	25/11/2011	-	Active	NO
13	U24239AP2005PTC047518	LAURUS LABS PRIVATE LIMITED	Additional director	14/02/2012	14/02/2012	-	Active	NO

Name :

Mr.Abhinav Sinha

Designation :

Alternate Director

Address :

F No. 1902 sukhada Apartments, Pochkhunt Road, Mumbai – 400018, Maharashtra, India

Date of Birth/Age :

05.05.1976

Date of Appointment :

30.10.2008

DIN No:

02654104

Other Directorship:

S.No.	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
1	U29199AP1997PLC026477	VMC Systems Limited	Alternate director	30/10/2008	30/10/2008	-	Active	NO
2	U63013DL2004PTC128680	TRANSPOLE LOGISTICS Private Limited	Director	16/05/2011	16/05/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. V Roja Rani
Designation :	Secretary
Address :	Flat No. 304, Hig – 540/7, KPHB Colony, Kukatpally, Hyderabad – 500072, Andhran Padesh, India
Date of Birth/Age :	17.05.1977
Date of Appointment :	01.04.2010
PAN No:	AAFPE2554A

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 30.12.2010)

Names of Shareholders	No. of Shares
EQUITY SHAREHOLDERS
B. Hima Bindu	1,63,18,776
V. Venkata Rama Rao	24,97,087
B. Venkata Ramana	23,84,087
Dinesh Kumar Singhi	11,00,000
P.S. Shastry	10
Chittaranjan Dash	10
A.N. Sarma	10
Bhogi Suganakara Rao	10
Raavi Srinivas	10
FIL Capital Management (Mauritius) Limited, Mauritius	1
Multiconsult Trustees Limited, Mauritius	99
TOTAL	2,23,00,100
PREFERENCE SHAREHOLDERS
FIL Capital Management (Mauritius) Limited, Mauritius	205,700
Multiconsult Trustees Limited, Mauritius	27,294,300
TOTAL	2,75,00,000

(As on 30.12.2010)

Category	Percentage
Directors or relatives of directors	95.07
Other top fifty shareholders	4.93
Total	100.00

BUSINESS DETAILS

Line of Business :

Original Equipment manufacturer of Telecommunication and Networking Equipment and Power – Conversion products.

Products :

Item Code no. (ITC CODE)	Product Description
85.176290	Transmission Equipment
85.176270	Power Accessories
85.176290	Customer Premises Equipments

PRODUCTION STATUS

(As on 30.06.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Power	sets	7,000,000		2,641,054
Terminal	sets	3,170,000		1,658,295
Transmission	sets	72,000		48,093

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Punjab National Bank, Rayala Towers, 3^rd Floor, # 781 – 785, Anna Salai, Chennai – 600002, Tamil Nadu, India
• Andhra Bank, 6-3-352/2, Upper Ground Floor, Astral heights, road No.1, Banjara Hills, Hyderabad – 500034, Andhra Pradesh India

• State Bank of India
• Indusind Bank Limited
• ING Vysya Bank Limited
• The Karur Vysya Bank Limited
• Corporation Bank
• L&T Finance Limited

Facilities :

Secured Loans	30.06.2010	30.06.2009
	(Rs. in Millions)
Loans and advance from banks
Cash credit from banks	1754.002	873.208
Hire purchase loans	4.754	3.009
Demand loans against fixed deposits	946.021	104.982
Buyers Credit from banks	2163.077	587.930
Other loans and advances
Loans from others	750.000	0.000
Total	5617.854	1569.129
Notes: 1. The cash credit from banks including buyers credit are secured on paripassu basis, by primary charge by way of hypothecation of entire current assets, both present and future, by way of collateral charge on fixed assets, movable and immovable, both present and future of the company, pledge of 6,359,985 shares held by promoters and personal guarantees of Ms.B.Hima Bindu, Mr. B.Venkataramana, Mr.V.Venkata Rama Rao, the promoters/directors of the Company. 2. Hire purchase loans were secured by way of hypothecation of vehicles. 3. These are secured against the fixed deposits of the Company amounting to Rs.1063.700 Millions (Previous year Rs.120.000 Millions). 4. Loan from others is secured on paripassu bais, by first charge on movable and immovable properties, both present and future, by way of second charge on Company’s current assets present and future,against pledge of shares held by promoters, personal guarantees of Ms. B. Hima Bindu and Mr.B.Venkataramana, directors of the Company.

Unsecured loan	30.06.2010	30.06.2009
Loan from Ennar Energy Limited, repayable on demand	36.537	36.537
Total	36.537	36.537

Banking Relations :	--
Auditors :
Name :	B S R and Associates Chartered Accountants
Address :	Reliance Humsafar, Road No 11, Banjara Hills, Hyderabad – 500034, Andhra Pradesh , India
PAN No:	AAIFB7355D
Subsidiaries :	VMC Telecom Services Private Limited

CAPITAL STRUCTURE

(As on 30.06.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
35,000,000	Equity Share	Rs.10/- each	Rs.350.000 Millions
30,000,000	Preference shares	Rs.10/- each	Rs.300.000 Millions
	Total		Rs.650.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
22,300,100	Equity Share	Rs.10/- each	Rs.223.001 Millions
27,500,000	Preference shares	Rs.10/- each	Rs.275.000 Millions
	Total		Rs.498.001 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		30.06.2010	30.06.2009	30.06.2008
SHAREHOLDERS FUNDS
1] Share Capital		498.001	498.001	87.066
2] Share Application Money		10.000	0.000	0.000
3] Reserves & Surplus		2562.221	1717.629	352.654
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3070.222	2215.630	439.720
LOAN FUNDS
1] Secured Loans		5617.854	1569.129	586.289
2] Unsecured Loans		36.537	36.537	176.589
TOTAL BORROWING		5654.391	1605.666	762.878
DEFERRED TAX LIABILITIES		28.033	26.367	15.961
TOTAL		8752.646	3847.663	1218.559
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		219.685	208.949	140.933
Capital work-in-progress		526.484	122.694	84.155
INVESTMENT		0.999	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	229.066	107.573	259.462
	Sundry Debtors	8139.215	4820.444	3675.594
	Cash & Bank Balances	3361.702	1946.386	141.613
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	649.434	277.124	56.035
Total Current Assets		12379.417	7151.527	4132.704
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	3376.769	3119.740	2920.336
	Other Current Liabilities	436.135	194.806	79.743
	Provisions	561.035	320.961	139.442
Total Current Liabilities		4373.939	3635.507	3139.521
Net Current Assets		8005.478	3516.020	993.183
MISCELLANEOUS EXPENSES		0.000	0.000	0.288
TOTAL		8752.646	3847.663	1218.559

PROFIT & LOSS ACCOUNT

	PARTICULARS		30.06.2010	30.06.2009	30.06.2008
	SALES
		Income	10113.379	6693.977	4078.539
		Other Income	147.249	81.713	7.950
		TOTAL (A)	10260.628	6775.690	4086.489
Less	EXPENSES
		Material cost	7975.113	5555.222	3426.593
		Increase/ decrease in Inventories	(20.468)	(11.336)	(36.451)
		Personnel Cost	123.796	77.213	40.515
		Manufacturing Expenses	53.601	56.808
		Administrative and Selling Expenses	428.202	144.375	120.266
		TOTAL (B)	8560.244	5822.282	3550.923
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1700.384	953.408	535.566
Less	FINANCIAL EXPENSES (D)		391.006	172.033	79.185
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1309.378	781.375	456.381
Less/ Add	DEPRECIATION/ AMORTISATION (F)		35.157	32.388	17.409
	PROFIT BEFORE TAX (E-F) (G)		1274.221	748.987	438.972
Less	TAX (H)		429.629	209.023	137.236
	PROFIT AFTER TAX (G-H) (I)		844.592	539.964	301.736
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		44.631	352.653	50.918
Less	APPROPRIATIONS
		Transfer to General Reserve	844.762	847.986	0.000
	BALANCE CARRIED TO THE B/S		44.461	44.631	352.654
	IMPORTS
		Capital Goods	24.550	137.611	8.756
		Raw Materials	7898.376	5405.670	3374.099
	TOTAL IMPORTS		7922.926	5543.281	3382.855
	Earnings Per Share (Rs.)
	Basic – par value of Rs.10 per share		37.87	28.57	52.95
	Diluted – par value of Rs.10 per share		27.11	21.19	--

KEY RATIOS

PARTICULARS		30.06.2010	30.06.2009	30.06.2008
PAT / Total Income	(%)	8.23	7.97	7.38
Net Profit Margin (PBT/Sales)	(%)	12.60	11.19	10.76
Return on Total Assets (PBT/Total Assets}	(%)	10.11	10.18	10.27
Return on Investment (ROI) (PBT/Networth)		0.42	0.34	0.99
Debt Equity Ratio (Total Liability/Networth)		3.27	2.37	8.87
Current Ratio (Current Asset/Current Liability)		2.83	1.97	1.32

LOCAL AGENCY FURTHER INFORMATION

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U29199AP1997PLC026477
Name of the company	VMC Systems Limited
Address of the registered office or of the principal place of business in India of the company	7013, Emerald House, Sarojini Devi Road, Secunderabad – 500003, Andhra Pradesh, India
This form is for	Creation of Charge
Type of charge	Book Debts Movable property (not being pledge)
Particular of charge holder	Punjab National Bank, Rayala Towers, 3^rd Floor, # 781 – 785, Anna Salai, Chennai – 600002, Tamil Nadu, India
Nature of instrument creating charge	Hypothecation of goods and book debts to secure cash credit facility
Date of instrument Creating the charge	23.11.2011
Amount secured by the charge	Rs.50.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 2.00% p.a. above the normal lending rate (presently at 16.50% p.a.) Terms of Repayment repayable on demand Margin 25% on Raw materials, Stock in progress, Finished goods, Book debts and other receivables Extent and Operation of the charge The joint hypothecation of securities ranking pari passu among consortium banks.
Description of the property charged indicating whether it is a charged on	Immovable properties
Short Particulars of the property charged	Hypothecation of all good and book debts as per the agreement

BACKGROUND

Vuppalamritha Magnetic Components Limited ("the Company") was incorporated on February 20, 1997 with an objective to design, develop and manufacture magnetic components in various power and telecom products in Hyderabad. The Company has its head office in Hyderabad with sales offices in various parts of the country and it is engaged in the manufacture of power products, telecom terminals and transmission equipment. The name of the Company was changed from Vuppala Magnetic Components Limited to Vuppalamritha Magnetic Components Limited on August 21, 2007.

REVIEW OF OPERATIONS

During the Year 2009-10, the company has reported gross revenues of Rs.10,546.400 millions as against Rs.6,937.390 Millions of revenues registered in the previous year up by 52.02%. Net Profit after Tax posted was Rs.844.590 Millions as against Rs.539.960 millions for the previous year, growth of 56.42 % compared to previous year. The Financial year 2009-10 is yet another year of significant growth. The company has depicted accelerated growth rate of its operations from year to year.

BUSINESS OVERVIEW, DEVELOPMENT AND OPPORTUNITIES OUTLOOK:

As a result of the policy and regulatory initiatives over the years, the growth of subscribers connected to the Indian telecommunications network has seen a CAGR of 44.66% over last 5 years. The number of connections

was Rs.742.120 million at the end of October 2010 and is projected to grow to 1 billion by 2014, taking the teledensity to about 100%. The gross revenue figure reported by the service providers for 2009-10 is Rs.1,57,9847.600 Millions. With the introduction of 3G and the possibility of 4G in the near future, the data consumption is likely to multiply manifold.

In 2008-09 alone, as per Directorate General of Commercial Intelligence and Statistics (DGCIS) data, equipment worth Rs.461.58 billion was imported by the Indian telecom operators. According to a KPMG report, the telecom equipment market in India is estimated to be Rs 450 billion and growing @ 20-25% p.a. According to a recent report by Gartner Inc., India ranks fourth in telecom equipment manufacturing in the Asia-Pacific (APAC) region. The country had a 5.7% share of the region's total telecom equipment production revenue of $180 billion in 2009. India is expected to move to the third spot (after China and South Korea) with a share of 8.5% of the total (estimated) APAC telecom equipment production revenue of $277 billion by 2014. The department of Telecom data shows that production of telecom equipment in India at the end of March 2009 stood at Rs.518000.000 Millions, with a compounded annual growth rate (CAGR) of 29% in the previous five years. As per DOT website, telecom equipment worth Rs.3500 to 5000 billion will be required by 2015.

The growth potential of the Indian telecommunications market is well recognized. Massive growth in the number of subscribers would require networks to be upgraded, new technologies inducted and new services offered. This would create huge demand for switching, transmission and subscriber equipment. It is estimated that for 3G alone the investment would be of the order of US$ 15 billion. Demand for the network elements would translate into requirement for components, test and auxiliary equipment. The overall requirement is expected to be of the order of US $100 billion.

India and China have emerged as the largest markets for telecom equipment across the entire spectrum of applications. Demand for telecom products and solutions emerge from a variety of forces, significantly among them being expansion of wireless rollouts (2G/ 3G/WiMax), convergence of communications, computing and entertainment, exploding population of smartphones and other smart devices, and revamping of infrastructure underway in utilities, such as, power distribution, transportation, gas distribution, and telecom. However, the major proportion of such demand is serviced by imports, as the indigenous industry is only emerging now and establishing itself to provide "indigenously" designed and manufactured products meeting global standards of performance and quality, at competitive prices. However, most Indian service providers prefer vendors for India manufactured products, if available, since there is assurance of meaningful support in terms of warranty and AMCs. It is the company's mission to establish a "Made in India" strategy in telecom and power equipment, based on attributes of quality, delivery and price-performance attributes, meeting international benchmarks.

.

COMMITMENTS AND CONTINGENT LIABILITIES:

Particulars	30.06.2010	30.06.2009
	(Rs. in Millions)
Counter Guarantees provided by the Company to various banks against issue of Bank Guarantees on behalf of the Company by such banks	1627.384	629.296
Counter Guarantees provided by the Company to various banks against issue of Letter of credits on behalf of the Company by such banks	4469.470	1505.351
Capital Commitments-Estimated amount of contracts(net of advances) remaining to be executed on capital account and not provided for	65.923	16.613

FIXED ASSETS :

• Land Plant and Machinery
• Furniture and Fixtures
• Computers
• Office Equipment
• Motor Vehicles
• Lease Hold
• Improvements

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] 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.50.02
UK Pound	1	Rs.79.01
Euro	1	Rs.66.18

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--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		57

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.