MIRA INFORM REPORT

Report Date :

30.04.2013

IDENTIFICATION DETAILS

Name :	NET AVENUE TECHNOLOGIES PRIVATE LIMITED
Registered Office :	No.5, Egmore High Road, Egmore, Chennai – 600008, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	07.06.2001
Com. Reg. No.:	18-047220
Capital Investment / Paid-up Capital :	Rs.1.669 Millions
CIN No.: [Company Identification No.]	U72900TN2001PTC047220
Legal Form :	Private Limited Liability Company
Line of Business :	The company is engaged in the sale of Indian Designer Clothes and jewellery online.
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 31000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Even though there appears better growth in its turnover during 2012, it has incurred loss from its operations. However, trade relations are reported as fair. Business is active. Payment terms are 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

RBI 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.

INFORMATION PARTED BY

Name :	Ms. Gopthree
Designation :	General Manager – Finance
Contact No.:	91-44-42945600
Date :	30.04.2013

LOCATIONS

Registered Office :	No.5, Egmore High Road, Egmore, Chennai – 600008, Tamilnadu, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	mundhara_co@yahoo.co.in

DIRECTORS

As on: 29.03.2013

Name :	Mr. Ritesh Kumar Kataria
Designation :	Director
Address :	No.5 Egmore High Street, Egmore, Chennai – 600007, Tamilnadu, India
Date of Birth/Age :	31.08.1976
Date of Appointment :	07.06.2001
DIN No.:	01019455
Name :	Mr. Rajesh Kumar Nahar
Designation :	Managing director
Address :	No. 75, Jermiah Road 2E Prince paradise, Chennai – 600007, Tamilnadu, India
Date of Birth/Age :	19.05.1976
Date of Appointment :	07.06.2001
DIN No.:	01015059
Name :	Mr. Samir Kumar
Designation :	Additional director
Address :	003, Salarpuria Cambridge Residency, 1^st Cross, Someshwarpura, Ulsoor, Bangalore – 560008, Karnataka, India
Date of Birth/Age :	04.01.1962
Date of Appointment :	24.04.2012
DIN No.:	00064621
Name :	Mr. Pavan Krishnamurthy
Designation :	Director
Address :	No.177, Krishna, 6^th main 4^th Phase, 7^th Block Banashakari, 3^rd stage Bangalore – 560085, Karnataka, India
Date of Birth/Age :	04.05.1971
Date of Appointment :	24.04.2012
DIN No.:	00579613

KEY EXECUTIVES

Name :	Ms. Gopthree
Designation :	General Manager – Finance

MAJOR SHAREHOLDERS

As on: 29.03.2013

Names of Shareholders (Equity Shares)	No. of Shares
S. Rajesh Nahar	435000
K. Ritesh Kataria	435000
M. Kawarlal Kataria	75000
R. Sarala Nahar	75000
Mala Hareesh Tibrewala	38930
Snajay P Mehta	38940
Paresh Seth and Ketan Seth	4160
Ketan Seth and paresh Seth	4940
Dr. Prakash Amrut Modi	18960
N.A. Shah (HUF)	8750
M. Manifold Private Limited, India	18340
Net Avenue Technologies Employees Welfare Trust, India	46980
Inventus Capital Partners (Mauritius) Limited, Mauritius	1
Nadathur Estate Private Limited, India	1
Total	1200002

Names of Shareholders (Preference Shares)	No. of Shares
Inventus Capital Partners (Mauritius) Limited, Mauritius	235282
Nadathur Estate Private Limited, India	233332
Total	468614

Equity Share Break up (Percentage of Total Equity)

As on: 29.03.2013

Category	Percentage
Bodies corporate	1.53
Directors or relatives of Directors	85.00
Other top fifty shareholders	13.47
Total	100.00

BUSINESS DETAILS

Line of Business :

The company is engaged in the sale of Indian Designer Clothes and jewellery online.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	Citibank N.A, 163, Anna Salai, Chennai - 600002, Tamilnadu, India

Banking Relations :	--
Auditors :
Name :	B S R R and Comapny Chartered Accountants
Address :	No.10, Mahatma Gandhi Road, Nungambakkam, Chennai – 600034, Tamilnadu, India
PAN No.:	AAKFB1884H
Enterprises owned or significantly influenced by key managerial personnel or their relatives:	Sris Lifestyle Pioneer Trading Limited

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.1/- each	Rs.2.000 Millions
500000	Preference Shares	Rs.1/- each	Rs.0.500 Million
	Total		Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1200002	Equity Shares	Rs.1/- each	Rs.1.200 Millions
468614	Preference Shares	Rs.1/- each	Rs.0.469 Million
	Total		Rs.1.669 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		1.200	1.200	1.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6.744	12.654	5.941
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		7.944	13.854	7.141
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.085	0.060
TOTAL		7.944	13.939	7.201
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.570	3.526	1.683
Capital work-in-progress		0.500	0.125	0.000
INVESTMENT		0.320	1.045	1.000
DEFERREX TAX ASSETS		0.673	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	30.454	18.844	3.269
	Sundry Debtors	1.254	2.271	0.800
	Cash & Bank Balances	2.499	5.220	2.663
	Other Current Assets	37.603	0.251	0.000
	Loans & Advances	5.246	2.859	5.154
Total Current Assets		77.056	29.445	11.886
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	35.947	8.210
	Other Current Liabilities	38.234	10.009	5.053
	Provisions	0.994	1.983	2.315
Total Current Liabilities		75.175	20.202	7.368
Net Current Assets		1.881	9.243	4.518
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		7.944	13.939	7.201

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Turnover	215.288	107.009	59.018
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses	NA	NA	NA
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		(0.945)	10.475	4.612
Less/ Add	DEPRECIATION/ AMORTISATION		1.833	0.737	0.449
	PROFIT / (LOSS) BEFORE TAX AND PERIOD ITEMS		(2.781)	9.738	4.163
Less/ Add	Period Items		1.746	0.000	0.000
	PROFIT / (LOSS) BEFORE TAX		(4.527)	9.738	4.163
Less	TAX		1.382	3.026	1.235
	PROFIT / (LOSS) AFTER TAX		(5.909)	6.712	2.928
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		12.653	5.941	3.013
	BALANCE CARRIED TO THE B/S		6.744	12.653	5.941
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	185.515	93.232	NA
		Shipping Charges	17.199	9.529	NA
	TOTAL EARNINGS		202.714	102.761	NA
	Earnings Per Share (Rs.)		(3.54)	NA	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Return on Total Assets (PBT/Total Assets}	(%)	(5.55)	29.54	30.68
Return on Investment (ROI) (PBT/Networth)		(0.57)	0.70	0.58
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.03	1.46	1.61

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
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
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

Note: The registered office of the company has been shifted from 5, Club Road, Chetpet, Chennai – 600031, Tamilnadu, India to present address w.e.f. 24.08.2001.

OPERATION:

The performance of the company for the year, has been satisfactory in comparison to market situations. The company has achieved a turnover of Rs.215.288 Millions (Previous YearRs.107.009 Millions)

FIXED ASSETS:

• Plant and Machinery
• Furniture
• Computer
• Vehicle

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 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 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.54.28
UK Pound	1	Rs.84.23
Euro	1	Rs.70.90

INFORMATION DETAILS

Report Prepared by :

RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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
--DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.