MIRA INFORM REPORT

Report Date :

02.05.2012

IDENTIFICATION DETAILS

Name :	MUNOTH COMMUNICATION LIMITED
Registered Office :	No. 343, Triplicane High Road, Triplicane, Chennai-600005, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.04.1984
Com. Reg. No.:	18-010816
Capital Investment / Paid-up Capital :	Rs.99.513 Millions
CIN No.: [Company Identification No.]	L65991TN1984PLC010816
Legal Form :	It is a Public Limited Liability Company. The company's shares are listed on the Stock Exchanges.
Line of Business :	Subject is engaged only in the activity of Trading and Investments in Shares and Securities.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 480000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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 :	No. 343, Triplicane High Road, Triplicane, Chennai-600005, Tamilnadu, India
Tel. No.:	91-44-28591190
Fax No.:	91-44-28591189
E-Mail :	cs_mcl@rediffmail.com info@munothcommunication.com
Website:	http://www.munothcommunication.com
Branch Office:	Trust Complex, 3^rd Floor, DVG Road, Bangalore-560004, Karnataka, India
Tel. No.:	91-80-26603424/25
Fax No.:	91-80-26603423

DIRECTORS

As on 23.08.2011

Name :

Mr. Lalchand Munoth

Designation :

Chairman cum Managing Director

Address :

New no. 27, Old No. 51, EVK Sampath Road, Vepery, Chennai-600007, Tamilnadu, India

Date of Birth/Age :

16.01.1939

Date of Appointment :

27.04.1984

Din No.:

01693640

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	U24297TN1978PTC007634	SOUTH INDIA CHEMICALS AND LEASING PRIVATE LIMITED	Director	03-11-78	03-11-78	Active	NO
2	L65991TN1984PLC010816	MUNOTH COMMUNICATION LIMITED	Managing director	01-12-07	27-04-84	Active	NO
3	U65933TN1986PLC013168	MUNOTH BIOSCIENCE LIMITED	Director	04-07-86	04-07-86	Active	NO
4	U65991TN1986PTC013531	JASWANT ESTATES PRIVATE LIMITED	Director	09-10-86	09-10-86	Active	NO
5	U18101TN1990PLC019377	MUNOTH INDUSTRIES LIMITED	Director	09-07-90	09-07-90	Active	NO
6	L65991TN1990PLC019836	MUNOTH FINANCIAL SERVICES LIMITED	Director	01-11-90	01-11-90	Active	NO

Name :

Mr. Jaswant Munoth

Designation :

Managing Director

Address :

New no. 27, Old No. 51, EVK Sampath Road, Vepery, Chennai-600007, Tamilnadu, India

Date of Birth/Age :

14.07.1965

Date of Appointment :

15.11.1984

Din No.:

00769545

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	U24297TN1978PTC007634	SOUTH INDIA CHEMICALS AND LEASING PRIVATE LIMITED	Director	03-11-78	03-11-78	Active	NO
2	L65991TN1984PLC010816	MUNOTH COMMUNICATION LIMITED	Managing director	01-12-07	16-11-84	Active	NO
3	U65933TN1986PLC013168	MUNOTH BIOSCIENCE LIMITED	Director	04-07-86	04-07-86	Active	NO
4	U65991TN1986PTC013531	JASWANT ESTATES PRIVATE LIMITED	Director	09-10-86	09-10-86	Active	NO
5	U65993TN1986PTC013838	MAHARANA FINANCE AND INVESTMENTS PRIVATE LIMITED	Director	18-12-86	18-12-86	Active	NO
6	U65191TN1987PTC014024	SHANKESWAR FINANCE AND INVESTMENTS PRIVATE LIMITED	Director	10-11-87	10-11-87	Active	NO
7	U18101TN1990PLC019377	MUNOTH INDUSTRIES LIMITED	Director	09-07-90	09-07-90	Active	NO
8	L65991TN1990PLC019836	MUNOTH FINANCIAL SERVICES LIMITED	Managing director	25-06-08	01-11-90	Active	NO
9	U40108RJ2000PTC016186	MUNOTH NEG WINDFARM PRIVATE LIMITED	Director	07-03-00	07-03-00	Active	NO
10	U91110TN2001NPL046486	SOUTHERN INDIA RAJASTHANI CHAMBER OF COMMERCE AND INDUSTRY	Director	23-01-01	23-01-01	Active	NO

Name :

Mr. Bharat Munoth

Designation :

Director

Address :

New no. 27, Old No. 51, EVK Sampath Road, Vepery, Chennai-600007, Tamilnadu, India

Date of Birth/Age :

02.03.1970

Date of Appointment :

27.07.1992

Din No.:

00769588

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	U65933TN1986PLC013168	MUNOTH BIOSCIENCE LIMITED	Director	24-08-89	24-08-89	Active	NO
2	U65993TN1986PTC013838	MAHARANA FINANCE AND INVESTMENTS PRIVATE LIMITED	Director	05-02-90	05-02-90	Active	NO
3	U65191TN1987PTC014024	SHANKESWAR FINANCE AND INVESTMENTS PRIVATE LIMITED	Director	05-02-90	05-02-90	Active	NO
4	U18101TN1990PLC019377	MUNOTH INDUSTRIES LIMITED	Director	09-07-90	09-07-90	Active	NO
5	L65991TN1990PLC019836	MUNOTH FINANCIAL SERVICES LIMITED	Managing director	29-12-08	01-11-90	Active	NO
6	L65991TN1984PLC010816	MUNOTH COMMUNICATION LIMITED	Director	27-07-92	27-07-92	Active	NO
7	U24297TN1978PTC007634	SOUTH INDIA CHEMICALS AND LEASING PRIVATE LIMITED	Director	12-12-01	12-12-01	Active	NO
8	U64202TN2011PLC080267	MUNOTH G'FIVE TELECOM LIMITED	Director	23-04-11	23-04-11	Active	NO

Name :

Mr. Manish Mardia

Designation :

Director

Address :

1A, Valliammal Road, Vepery, Chennai-600007, Tamilnadu, India

Date of Birth/Age :

31.05.1971

Date of Appointment :

25.01.2011

Din No.:

00769665

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	L65991TN1984PLC010816	MUNOTH COMMUNICATION LIMITED	Director	25-01-01	25-01-01	Active	NO
2	U18101TN1990PLC019377	MUNOTH INDUSTRIES LIMITED	Director	30-09-08	04-08-08	Active	NO
3	U24134TN2008PTC069606	POLYANNEX INDIA PRIVATE LIMITED	Director	21-10-08	21-10-08	Active	NO

Name :

Ranjani Padmanabhan

Designation :

Director

Address :

61A, Gowdya Mutt Road, Royapettah, Chennai-600014, Tamilnadu, India

Date of Birth/Age :

18.01.1954

Date of Appointment :

29.01.2001

Din No.:

01084695

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	L65991TN1984PLC010816	MUNOTH COMMUNICATION LIMITED	Director	29-09-01	29-09-01	Active	NO
2	U18101TN1990PLC019377	MUNOTH INDUSTRIES LIMITED	Director	18-08-05	18-08-05	Active	NO

Name :

Mr. Jayantilal Maganmal Jain

Designation :

Director

Address :

72, Thatha Muthiappan Street, Chennai-600001, Tamilnadu, India

Date of Birth/Age :

21.04.1964

Date of Appointment :

31.07.2009

Din No.:

01407484

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	U67120TN1999PTC043842	J N SECURITIES PRIVATE LIMITED	Director	28-12-99	28-12-99	Active	NO
2	L65991TN1990PLC019836	MUNOTH FINANCIAL SERVICES LIMITED	Director	31-08-09	31-07-09	Active	NO
3	L65991TN1984PLC010816	MUNOTH COMMUNICATION LIMITED	Director	31-08-09	31-07-09	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 23.08.2011

Names of Shareholders	No. of Shares
Jaswant Munoth	148575
Bharat Munoth	90950
Lalchand Munoth	89850

As on 23.08.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	46.96
Bodies corporate	7.97
Directors or relatives of directors	6.35
Other top fifty shareholders	5.20
Others	30.15
Nationalized or other banks	3.11
Mutual funds	0.26
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged only in the activity of Trading and Investments in Shares and Securities.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Indian Bank, Anna Salai Branch, 1^st Floor, Gee Gee Complex, 42, Anna Salai, Chennai-600002, Tamilnadu, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Working capital loans	24.654	0.000
Loans taken for vehicles	1.758	0.333
Total	26.412	0.333

Banking Relations :	--
Auditors :
Name :	Kumbhat and Company Chartered Accountants
Address :	144, N.S.C. Bose Road, Chennai-600079, Tamilnadu, India
Pan No.:	AAJLH5952H

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
12000000	Equity Shares	Rs.10/- each	Rs.120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9951300	Equity Shares	Rs.10/- each	Rs.99.513 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		99.513	99.513	99.513
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		56.104	56.104	56.104
4] (Accumulated Losses)		(33.978)	(34.154)	(35.153)
NETWORTH		121.639	121.463	120.464
LOAN FUNDS
1] Secured Loans		26.412	0.333	15.660
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		26.412	0.333	15.660
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		148.051	121.796	136.124
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		17.619	6.889	8.566
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		44.635	46.645	57.711
DEFERREX TAX ASSETS		4.672	5.072	5.732
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	41.781	11.178	11.089
	Sundry Debtors	3.293	1.944	0.000
	Cash & Bank Balances	0.233	27.689	20.681
	Other Current Assets	16.085	0.815	0.786
	Loans & Advances	20.355	18.455	29.008
Total Current Assets		81.747	60.081	61.564
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.550	0.340	0.155
	Other Current Liabilities	2.039	0.234	0.232
	Provisions	1.100	0.570	0.540
Total Current Liabilities		3.689	1.144	0.927
Net Current Assets		78.058	58.937	60.637
MISCELLANEOUS EXPENSES		2.086	2.781	3.478
OTHERS		0.981	1.472	0.000
TOTAL		148.051	121.796	136.124

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	61.683	5.641	10.272
		Other Income	8.658	3.484	2.536
		TOTAL (A)	70.341	9.125	12.808
Less	EXPENSES
		Consumption Materials Changes Inventories	57.993	0.000
		Manufacturing Service Cost	0.426	0.000	28.182
		Employee Related Expenses	3.200	1.438
		Administrative Selling Other Expenses	6.341	3.782
		TOTAL (B)	67.960	5.220	28.182
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.381	3.905	(15.374)
Less	FINANCIAL EXPENSES (D)		0.533	1.215	1.886
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.848	2.690	(17.260)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.273	0.953	0.655
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		0.575	1.737	(17.915)
Less	TAX (H)		0.400	0.738	(5.282)
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		0.175	0.999	(12.633)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(34.154)	(35.153)	(22.520)
	BALANCE CARRIED TO THE B/S		(33.979)	(34.154)	(35.153)
	Earnings / (Loss) Per Share (Rs.)		0.02	0.10	(1.31)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.25	10.95	(98.63)
Net Profit Margin (PBT/Sales)	(%)	0.93	30.79	(174.41)
Return on Total Assets (PBT/Total Assets}	(%)	0.58	25.94	(25.55)
Return on Investment (ROI) (PBT/Networth)		0.00	0.01	(0.15)
Debt Equity Ratio (Total Liability/Networth)		0.25	0.01	0.14
Current Ratio (Current Asset/Current Liability)		2.22	52.52	6.64

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	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

REVIEW OF BUSINESS OPERATIONS:

The Company has launched MUNOTH brand of mobile phones in the country. Currently it has five models A9, A28, A29, A36 and S5. S5 is an application based phone meant for senior citizen. Subject has set up a website www.soshealth.co.in where in the users of S5 can store their medical data. S5 has been featured in leading newspaper/magazine and was also featured in Haward review. MCL was also appointed as distributor for GFive mobile phones for Tamilnadu, Karnataka and Gujarat. In the current year the Company sales is at Rs. 61.600 millions and a profit before tax of Rs. 0.576 million.

FUTURE PROSPECTS:

The Company will focus on application based phones in its own brand. MUNOTH and continue to distribute phones of other brands. The Company expects to increase sales considerably in the current year of operation.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10247726
Corporate identity number of the company	L65991TN1984PLC010816
Name of the company	MUNOTH COMMUNICATION LIMITED
Address of the registered office or of the principal place of business in India of the company	No. 343, Triplicane High Road, Triplicane, Chennai-600005, Tamilnadu, India
Type of charge	Immovable Property
Particular of charge holder	Indian Bank, Anna Salai Branch, 1^st Floor, Gee Gee Complex, 42, Anna Salai, Chennai-600002, Tamilnadu, India
Email	annasalai@indianbank.co.in
Nature of description of the instrument creating or modifying the charge	Memorandum of Deposit of Title Deeds executed on 04.11.2010, deposit made on 01.11.2010.
Date of instrument Creating the charge	01.11.2010
Amount secured by the charge	Rs.59.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As determined by the bank from time to time Terms of Repayment As determined by the bank from time to time Margin As determined by the bank from time to time Extent and Operation of the charge As per Instruments executed Others All other terms and conditions as per sanction letter and instruments executed 01.11.2010.
Particulars of the present modification	a) Additional security has been offered by creation of equitable mortgage by deposit of title deeds over the immovable properties owned by the company, to secure the existing credit facilities of Rs.59.500 Millions. b) All other existing securities are already offered to the bank shall continue.

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Software

· Computers

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.52
UK Pound	1	Rs.85.59
Euro	1	Rs.69.61

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.