MIRA INFORM REPORT

Report Date :

22.10.2012

IDENTIFICATION DETAILS

Name :	CYBERSTAR INFOCOM PRIVATE LIMITED (w.e.f. 06.09.2007)

Formerly Known As :	CYBERSTAR INFOCOM LIMITED

Registered Office :	Surya Chambers, 1^st Floor, South Block, 124, Airport Road, Murugesh Palya, Bangalore – 560 017, Karnataka

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	09.11.1999

Com. Reg. No.:	08-038995

Capital Investment / Paid-up Capital :	Rs.71.082 Millions

CIN No.: [Company Identification No.]	U72200KA1999PTC038995

TAN No.: [Tax Deduction & Collection Account No.]	BLRC01703C

PAN No.: [Permanent Account No.]	AABCC2931J

Legal Form :	Private Limited Liability Company

Line of Business :	Dealer and Distributor of Hardware Parts, Computer Peripherals and Consumables.

No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 539000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track. There appears sharp dip in the profitability recorded by the company. However, trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for 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 – June 30, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ 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/ Corporate Office :	Surya Chambers, 1^st Floor, South Block, 124, Airport Road, Murugesh Palya, Bangalore – 560 017, Karnataka, India
Tel. No.:	91-80-41266808
Fax No.:	91-80-41266801
E-Mail :	info@cuberstarindia.com prakash.reddy@cyberstarindia.com
Website :	http://www.cyberstarindia.com
Area :	4500 sq. ft.
Location :	Owned

Zonal Office 1 :	14, Sonal Society, Sonal Char Rasta, Opposite Maruti Complex, Gurukul Road, Memnagar, Ahmedabad – 380 052, Gujarat, India
Tel. No.:	91-79-40046990
E-Mail :	ahmedabad@cyberstarindia.com

Zonal Office :	Also located at: v New Delhi v Bangalore v Chennai v Kochi v Coimbatore v Hyderabad v Bhubaneshwar v Guwahati v Kolkata v Mumbai v Pune

DIRECTORS

As on 30.09.2011

Name :

Mr. Chinnareddy Prakash Reddy

Designation :

Director

Address :

Sri Thimmaraya Swami Nilayam, 4^th Corss, Kanaka Vinayaka Street, Shanthi Layout, R.M. Nagar, Bangalore – 560 016, Karnataka, India

Date of Birth/Age :

26.06.1961

Qualification :

Chartered Accountant

Date of Appointment :

22.05.2006

DIN No.:

00467352

Name :

Ms. Mamta Rathi

Designation :

Director

Address :

Villa # 130, Adarsha Palm Retreat, Outer Ring Road, Devarabisanahalli, Bangalore – 560 103, Karnataka, India

Date of Birth/Age :

20.04.1968

Qualification :

ME (Electronics and Computers)

Date of Appointment :

29.12.2004

DIN No.:

02032648

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	U74899DL1999PLC102331	CYBERSTAR INFOCOM LIMITED	Director	29/12/2004	29/12/2004	-	Dormant	NO
2	U72200KA1999PTC038995	CYBERSTAR INFOCOM PRIVATE LIMITED	Director	29/12/2004	29/12/2004	-	Active	NO

Name :

Mr. Rajkumar Rathi

Designation :

Director

Address :

Villa # 130, Adarsha Palm Retreat, Outer Ring Road, Devarabisanahalli, Bangalore – 560 103, Karnataka, India

Date of Birth/Age :

10.05.1965

Qualification :

MBA, BE

Date of Appointment :

29.12.2004

DIN No.:

02032716

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	U74899DL1999PLC102331	CYBERSTAR INFOCOM LIMITED	Director	29/12/2004	29/12/2004	-	Dormant	NO
2	U72200KA1999PTC038995	CYBERSTAR INFOCOM PRIVATE LIMITED	Director	29/12/2004	29/12/2004	-	Active	NO

Name :

Mr. Suresh Kandukuri

Designation :

Director

Address :

No.42, Cascading Meadows, Thambu Chetty Palaya Post, Bangalore – 560 036, Karnataka, India

Date of Birth/Age :

26.04.1969

Qualification :

BA (Economics and Statistics)

Date of Appointment :

30.09.2010

DIN No.:

03124213

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	U72200KA1999PTC038995	CYBERSTAR INFOCOM PRIVATE LIMITED	Director	30/09/2010	17/05/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders		No. of Shares
Rajkumar Rathi		7099270
Mamata Rathi		8955
Total		7108225

As on 30.09.2011

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00

BUSINESS DETAILS

Line of Business :	Dealer and Distributor of Hardware Parts, Computer Peripherals and Consumables.

GENERAL INFORMATION

No. of Employees :

100 (Approximately)

Bankers :

v Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227, D, Nariman Point, Mumbai – 400 021, Maharashtra, India

v Standard Chartered Bank, 112, Serenity, Koramangala Industrial Area, 5^th Block, Koramangala, Bangalore – 560 095, Karnataka, India

Facilities :

Secured Loans

31.03.2011

Rs. In Millions

31.03.2010

Rs. In Millions

Loans taken for vehicles secured

2.946

0.000

Total

2.946

0.000


Banking Relations :	--

Auditors :
Name :	Ranga Rao and Associates Chartered Accountants
Address :	No.39, 6^th Cross, Wilson Garden, Bangalore – 560 027, Karnataka, India
Income-tax PAN of auditor or auditor's firm :	ABGPR1561G

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7108225	Equity Shares	Rs.10/- each	Rs.71.082 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		71.082	0.794	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		63.748	121.605	28.619
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		134.830	122.399	29.119
LOAN FUNDS
1] Secured Loans		2.946	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		2.946	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		137.776	122.399	29.119

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		7.549	3.800	4.862
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	198.774	110.654	126.165
	Sundry Debtors	314.321	205.951	109.209
	Cash & Bank Balances	16.134	32.112	24.052
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	58.422	63.471	48.122
Total Current Assets		587.651	412.188	307.548
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	376.534	230.210	264.481
	Other Current Liabilities	58.872	42.419	6.217
	Provisions	22.018	20.960	12.593
Total Current Liabilities		457.424	293.589	283.291
Net Current Assets		130.227	118.599	24.257

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		137.776	122.399	29.119

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2143.290	1158.173	1254.512
		Other Income
		TOTAL	2143.290	1158.173	1254.512

Less	EXPENSES
		Office Expenses	2122.598	1122.775	1254.025
		Administrative Expenses
		Advertising Expenses
		TOTAL	2122.598	1122.775	1254.025

	PROFIT/ (LOSS) BEFORE TAX		20.692	35.398	0.487

Less	TAX		8.260	12.701	1.795

	PROFIT/ (LOSS) AFTER TAX		12.432	22.697	(1.308)

	IMPORTS
		Trading Goods	902.506	662.730	750.831
	TOTAL IMPORTS		902.506	662.730	750.831

	Earnings/ (Loss) Per Share (Rs.)		125.76	285.95	(26.16)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.58	1.96	(0.10)

Return on Total Assets (PBT/Total Assets}	(%)	3.48	8.51	0.16

Return on Investment (ROI) (PBT/Networth)		0.15	0.29	0.02

Debt Equity Ratio (Total Liability/Networth)		3.41	2.40	9.73

Current Ratio (Current Asset/Current Liability)		1.28	1.40	1.09

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	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	Yes
9) Name of person contacted	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) Date of Birth of Proprietor/Partner/Director, if available	Yes
32) PAN of Proprietor/Partner/Director, if available	No
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	No

BACKGROUND:

The Company is a Private limited company under the Companies Act, 1956 ('the Act') on 9^th November, 1999. The registered office of the company is located at Bangalore, Karnataka, India. The Company is involved in the dealing and distribution of hardware parts, computer peripherals and consumables, which involve several categories of products.

BUSINESS OPERATIONS AND PROSPECTS:

The Company has earned a total income of Rs.2143.290 millions for the year ended 31^st March 2011 and total expenditure is Rs.2122.598 millions for the said year and thereby registered a profit of Rs.12.432 millions after providing for deferred tax, short provision for taxes for previous years, current years provision for tax; which has been carried forward to the Balance Sheet. The business outlook for the year 2011-2012 is encouraging.

Bankers Charges Report as per Registry

Corporate identity number of the company	U72200KA1999PTC038995
Name of the company	CYBERSTAR INFOCOM PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Surya Chambers, 1^st Floor, South Block, 124, Airport Road, Murugesh Palya, Bangalore – 560 017, Karnataka, India E-Mail: prakash.reddy@cyberstarindia.com
This form is for	Modification of charge
Charge identification number of the modified	10303253
Type of charge	Book Debts Movable Property (not being pledge) Others (Current Assets and Moveable Fixed Assets.)
Particular of charge holder	CIN No.: L65110MH1985PLC038137 Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227, D, Nariman Point, Mumbai – 400 021, Maharashtra, India E-Mail: john.fernandes@kotak.com
Nature of description of the instrument creating or modifying the charge	Supplementary Deed of Hypothecation.
Date of instrument Creating the charge	16.04.2012
Amount secured by the charge	Rs.140.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: CC - Floating over the tenure of the facility. TC - As per Bank's guidelines time to time. Conditional WCDL - As deemed fit by the Bank at the time of disbursement. Terms of Repayment: TC - Maximum 90 Days. Forward contracts - Maximum 180 Days. Conditional WCDL - On such terms and conditions as deemed fit by the Bank. Margin: BG I/II (Cash Margin) - Minimum cash margin for BG I of 10% and for BG II of 25% shall be provided upfront in the form of FD. (100% cash margin for guarantee covering disputed liabilities) Lien shall be marked on the FD till such as the BG is cancelled and returned to the Bank. LC/TC - Minimum cash margin of 10% shall be provided upfront in the form of FD. Lien shall be marked on the FD in favour of the bank. Conditional WCDL - On such terms and conditions as deemed fit by the Bank. Extent and Operation of the charge: First pari passu charge by way of Hypothecation of Current assets and Movable fixed assets present and future of the Borrower, in favour of Kotak Mahindra bank as security for repayment of financial facilities granted by the Bank to the Borrower.
Short particulars of the property charged	The whole of Borrower's Current assets and Movable fixed assets both present and future as described in Schedule to the Supplementary Deed of Hypothecation.
Particulars of the present modification	Bank had granted facilities of Rs.95.000 millions to Company which was secured by way of Hypothecation on Current Assets and movable Fixed assets of the Company on 29.07.2011. Now bank has granted additional facility of Rs.45.000 millions to the company and said charge is modified and extended to the increase total facilities of Rs.140.000 millions.

FIXED ASSETS:

v Furniture and Fixtures

v Office Equipments

v Computers

v Computer Software

v Electrical Fittings

v Vehicles

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 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.53.72
UK Pound	1	Rs.86.15
Euro	1	Rs.70.17

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.