MIRA INFORM REPORT

Report Date :

26.12.2013

IDENTIFICATION DETAILS

Name :	PRABHAT TELECOMS (INDIA) LIMITED [w.e.f.22.04.2013]
Formerly Known As :	PRABHAT TELECOMS (INDIA) PRIVATE LIMITED [w.e.f.23.05.2007] PRABHAT TELECOMMUNICATION PRIVATE LIMITED
Registered Office :	Unit No. 402, 4^th Floor, Western Edge – 1, Western Express Highway , Borivali (East), Mumbai – 400066, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	02.04.2007
Com. Reg. No.:	11-169551
Capital Investment / Paid-up Capital :	Rs. 79.900 Millions
CIN No.: [Company Identification No.]	U72100MH2007PLC169551
PAN No.: [Permanent Account No.]	AAECP2288G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Mobile Assembling.
No. of Employees :	6 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1300000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. 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 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

Uptick in agriculture and construction spread some cheer as the economy grew a higher-than-expected 4.8 % in the three months through September. Manufacturing rose an annual rate per cent during the quarter and mining fell by 0.4 %, government data showed while farm output rose 46%.

India has emerged as the most attractive investment destination, thanks to a relaxation in foreign direct investment norms, says a report. India is followed by Brazil and China in the ranking part of EY’s Capital Confidence Barometer report based on a survey across 70 nations. The US, France and Japan have emerged as the top three investors likely to invest in India.

India has been ranked 83^rd globally in terms of talent competitiveness of its human capital.  Switzerland, Singapore, Denmark, Sweden and Luxembourg are the top five in the list of 103 nations compiled by INSEAD business school.

Tax rates for companies in India are among the highest in the world and the number of payments is also more than the global average putting the country at low, 158^th rank on the Paying Taxes. 2014 list by the World Bank and PWC. However, the time taken for tax payments is relatively less in India which is rated ahead of China and Japan.

1 billion smartphone shipments in 2013, a 39.3 % growth over 2012. This was being driven by low cost computing in emerging markets. By 2017, total smartphone shipments are expected to approach 1.7 billion units, resulting in a compound annual growth rate of 18.4 % between 2013 and 2017, according to research from IDC.

20 % vacancy rate of office space in Mumbai and Delhi in the third quarter, the highest in Asia after Chengdu, in China. According to Cushman and Wakefield, six Indian cities are among the 10 office markets with the worst vacancies.

Foreign banks will not have to pay stamp duty and capital gains tax, if they convert their branch operations into a wholly owned subsidiary, according to the Reserve Bank of India.

The Reserve Bank of India is planning to launch CPI – indexed bonds aimed to protecting the savings of retail investors from the impact the price rise by December end.

Central Bureau of Investigation has booked State Bank of India, Deputy Managing Director Shyamal Acharya and others in a graft case related to distribution of a loan of over Rs 4000 mn. Gold and jewellery worth Rs 6.7 mn have been recovered from the residence of Acharya.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	SME Fundamental Grade 3
Rating Explanation	Indicating good fundamental
Date	August 2013

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 :	Mr. Kumar Umang
Designation :	Finance Department
Contact No.:	91-22-40676000
Date :	24.12.2013

LOCATIONS

Registered Office :	Unit No. 402, 4^th Floor, Western Edge – 1, Western Express Highway , Borivali (East), Mumbai – 400066, Maharashtra, India
Tel. No.:	91-22-40676000
Fax No.:	91-22-40676042
E-Mail :	vmtiwari@prabhatgroup.net yoganap@prabhatgroup.net info@prabhatgroup.net
Website :	http://www.prabhatgroup.net
Location :	Owned

DIRECTORS

As on 30.09.2013

Name :

Mr. Vishwamani Matamani Tiwari

Designation :

Managing Director

Address :

2, Geetanjali Apartments, Manchhu Bhai Road, Near Manali Hotel, Near Subway, Malad (East), Mumbai - 400097, Maharashtra, India

Date of Birth/Age :

20.06.1974

Date of Appointment :

01.04.2013

PAN No.:

ABWPT2569G

DIN No.:

01932624

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	U72100MH2007PLC169551	PRABHAT TELECOMS (INDIA) LIMITED	Managing director	01/04/2013	02/04/2007	-	Active	NO
2	U45400MH2008PTC180721	SETHIA INFRASTRUCTURE PRIVATE LIMITED	Director	02/05/2009	02/05/2009	08/01/2010	Active	NO
3	U72900MH2009PLC194556	VEE THREE INFORMATICS LIMITED	Director	03/08/2009	03/08/2009	-	Active	NO
4	U11100MH2012PTC235635	PRABHAT NATURAL ENERGY PRIVATE LIMITED	Director	12/09/2012	12/09/2012	-	Active	NO

Name :

Mr. Shishir Chandrakant Tripathi

Designation :

Additional director

Address :

57-Ratnadeep Bungalow, Mahakali Caves Road, Andheri East Mumbai – 400093, Maharashtra, India

Date of Appointment :

27.01.1983

PAN No.:

01.12.2013

DIN No.:

02061516

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	U24230MH2005PTC152123	APEX MEDICHEM PRIVATE LIMITED	Director	30/09/2010	27/02/2010	27/06/2013	Active	NO
2	U70102MH2010PTC206142	CHANDRA PRIME SPACE REALCON PRIVATE LIMITED	Director	30/07/2010	30/07/2010	-	Active	NO
3	U72100MH2007PLC169551	PRABHAT TELECOMS (INDIA) LIMITED	Additional director	01/12/2013	01/12/2013	-	Active	NO

Name :

Mr. Vaibhav Shastri

Designation :

Director

Address :

C-302 A, Sushant Lok, Phase I, Gurgaon – 122002, Haryana, India

Date of Birth/Age :

10.10.1976

Date of Appointment :

01.04.2013

DIN No.:

02136309

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	U72100MH2007PLC169551	PRABHAT TELECOMS (INDIA) LIMITED	Director	01/04/2013	29/03/2013	-	Active	NO

Name :

Mr. Parag Rameshchandra Malde

Designation :

Whole-time director

Address :

1/2, Prabha Kunj, S. V. Road, Malad (West), Mumbai 400064, Maharashtra, India

Date of Birth/Age :

11.04.1979

Date of Appointment :

01.04.2013

DIN No.:

05354513

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	U72900MH2009PLC194556	VEE THREE INFORMATICS LIMITED	Director	29/09/2012	31/10/2011	-	Active	NO
2	U72100MH2007PLC169551	PRABHAT TELECOMS (INDIA) LIMITED	Whole-time director	01/04/2013	01/01/2013	-	Active	NO

Name :

Mr. Atul Dattatray Bhatkhalkar

Designation :

Director

Address :

B-7, 1/12, Dudha Sagar Society, Shiva Road, Aarey Cheknaka, Goregoan [East], Mumbai – 400065, Maharashtra, India

Date of Birth/Age :

08.03.1965

Date of Appointment :

01.04.2013

DIN No.:

06518965

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	U72100MH2007PLC169551	PRABHAT TELECOMS (INDIA) LIMITED	Director	01/04/2013	09/03/2013	-	Active	NO
2	U74999MH2013PTC251387	ADPLUS IMPRESSION PRIVATE LIMITED	Director	26/12/2013	26/12/2013	-	Active	NO

Name :

Mr. Deepak Jain Kumar

Designation :

Director

Address :

Flat No. B-1607, RNA Royale Park, M G Road, Kandivali [West], Mumbai – 400067, Maharashtra, India

Date of Birth/Age :

08.08.1981

Date of Appointment :

01.04.2013

DIN No.:

03562383

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	U65990MH2011PTC223580	DRAV ADVISORY AND INVESTMENTS PRIVATE LIMITED	Director	02/11/2011	02/11/2011	-	Active	NO
2	U50500GJ2012PTC068574	DRAV MULTITRADING PRIVATE LIMITED	Director	12/01/2012	12/01/2012	-	Active	NO
3	U72100MH2007PLC169551	PRABHAT TELECOMS (INDIA) LIMITED	Director	01/04/2013	21/02/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Kumar Umang
Designation :	Finance Department
Name :	Mr. Yojana Ratnakar Pednekar
Designation :	Secretary
Address :	House No. 260, Warin Pada Danda, Khar (West), Mumbai – 400052, Maharashtra, India
Date of Birth/Age :	05.12.1983
Date of Appointment :	01.05.2013
PAN No.:	ARKPP8762H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Vishwamani Matamani Tiwari	4736855
Prabha Vishwamani Tiwari	1457945
Parag Rameshchandra Malde	170000
Tribhuvan Tiwari	100300
Vee Three Informatics Limited, India	1322600
Matamani Tiwari	102000
Gauri Krishna Pillai	100300
Total	7990000

As on 11.10.2013

Names of Allottees	No. of Shares
Ankush Vasani Belorkar	62500
Mayur Chandrakant	18750
Mayur Chandrakant Mehta	26250
Urvashi Mayur Mehta	20000
Chandramani M Tiwari	6050
Ajay Mathur	56250
Mhesh Rajpurohit	28750
Bhanwarsingh Rajpurohit	15000
Bhanwarsing Narayansingh Rajpurohit	16250
Anita Sangle	21250
Brijesh Pathak	31250
Alipta Malde	12500
Aditya Sangle	7500
Kailash Shrikishan	2500
Total	324800

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Bodies corporate	16.55
Directors or relatives of Directors	83.45
Total	100.00

BUSINESS DETAILS

Line of Business :	Mobile Assembling.
Exports:	Not Divulged
Imports :
Products :	· Raw Material, Handset
Countries :	· China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Retailers

No. of Employees :

6 (Approximately)

Bankers :

· HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel [West], Mumbai, Maharashtra, India

State Bank of Bikaner and Jaipur, Welspun House, Ground Floor, Kamala Mill Compound, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India

Facilities :

Secured Loan	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long-term Borrowings
Term loans from banks	38.856	0.982
Term loans from others	0.000	42.263
Short-term borrowings
Loans repayable on demand from banks	196.752	142.963
Total	235.608	186.208

Banking Relations :	--
Financial Institution :	Reliance Capital Limited, "H" Block 1st Floor, Dhirubhai Ambani Knowledge City, Koparkhairne, Navi Mumbai - 400710, Maharashtra, India
Auditors :
Name :	Rajeev Sood and Company Chartered Accountants
Address :	282/6, Moti Bazar, Mandi -175001, Haryana, India
Income-tax PAN of auditor or auditor's firm :	AAJFR4865M
Associates:	· Vee Three Informatics Limited, India CIN: U72900MH2009PLC194556
Other Related Party:	· Armani Enterprises

CAPITAL STRUCTURE

As on 30.09.2013

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
8314800	Equity Shares	Rs.10/- each	Rs. 83.148 Millions

As on 31.03.2013

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
7990000	Equity Shares	Rs.10/- each	Rs. 79.900 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	79.900	46.175	24.990
(b) Reserves & Surplus	252.443	255.266	120.989
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	1.525	47.700
Total Shareholders’ Funds (1) + (2)	332.343	302.966	193.679
(3) Non-Current Liabilities
(a) long-term borrowings	91.489	72.925	0.000
(b) Deferred tax liabilities (Net)	8.802	1.245	1.045
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	100.291	74.170	1.045
(4) Current Liabilities
(a) Short term borrowings	198.553	151.595	63.282
(b) Trade payables	484.542	439.298	529.655
(c) Other current liabilities	41.310	16.044	16.471
(d) Short-term provisions	28.322	11.881	13.265
Total Current Liabilities (4)	752.727	618.818	622.673
TOTAL	1185.361	995.954	817.397
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	117.113	108.560	16.118
(ii) Intangible Assets	7.367	5.733	9.900
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	17.660	8.825	23.947
Total Non-Current Assets	142.140	123.118	49.965
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	235.620	185.560	176.736
(c) Trade receivables	673.279	643.741	540.534
(d) Cash and cash equivalents	2.250	2.095	2.230
(e) Short-term loans and advances	132.072	41.440	47.932
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	1043.221	872.836	767.432
TOTAL	1185.361	995.954	817.397

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	2139.641	1959.375	1504.000
		Other Income	14.562	9.181	NA
		TOTAL (A)	2154.203	1968.556	NA
Less	EXPENSES
		Cost of materials consumed	2074.193	1892.608
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(50.060)	(8.825)
		Employee benefit expense	5.040	4.382
		Other expenses	28.464	20.253
		TOTAL (B)	2057.637	1908.418	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		96.566	60.138
Less	FINANCIAL EXPENSES (D)		36.364	22.290
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		60.202	37.848
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.120	11.979
	PROFIT BEFORE TAX (E-F) (G)		55.082	25.869	21.528
Less	TAX (H)		19.794	7.713	7.113
	PROFIT AFTER TAX (G-H) (I)		35.288	18.156	14.415
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	26.979	14.317
Less	APPROPRIATIONS
	Proposed Dividend		NA	NA	1.499
	Corporate Dividend Tax		NA	NA	0.254
	BALANCE CARRIED TO THE B/S		NA	NA	26.979
	Earnings Per Share (Rs.)		4.75	7.27	5.77

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.64	0.92	NA
Net Profit Margin (PBT/Sales)	(%)	2.57	1.32	1.43
Return on Total Assets (PBT/Total Assets}	(%)	4.65	2.59	2.63
Return on Investment (ROI) (PBT/Networth)		0.17	0.09	0.11
Debt Equity Ratio (Total Debt /Networth)		0.87	0.74	0.33
Current Ratio (Current Asset/Current Liability)		1.39	1.41	1.23

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	Yes
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	Yes
20]	Export / Import details (if applicable)	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN

PARTICULARS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long-term Borrowings
Term loans from others	5.133	0.00
Intercorporate borrowings	47.500	29.550
Term loans from others	0.000	0.130
Short-term borrowings
Loans and advances from related parties	1.800	0.673
Loans and advances from related parties	0.000	7.959
Total	54.433	38.312

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10463254	20/11/2013	50,000,000.00	STATE BANK OF BIKANER AND JAIPUR	WELSPUN HOUSE, GROUND FLOOR, KAMLA MILL COMPOUND, LOWER PAREL, SENAPATI BAPAT MARG, MUMBAI, MAHARASHTRA - 400013, INDIA	B90745845
2	10315467	08/03/2013 *	180,000,000.00	STATE BANK OF BIKANER AND JAIPUR	WELSPUN HOUSE, GROUND FLOOR, KAMLA MILL COMPOUND, LOWER PAREL, SENAPATI BAPAT MARG, MUMBAI, MAHARASHTRA - 400012, INDIA	B76560978
3	10285462	12/05/2011	14,000,000.00	S. E. INVESTMENTS LIMITED	S-547IIND FLOOR MAIN ROAD, SHAKAR PUR, NEW DELHI, DELHI - 110092, INDIA	B12232617

* Date of charge modification

FIXED ASSETS:

· Buildings

Land

Plant and equipment

Office building

Furniture and fixtures

Vehicles

Office equipment

Computer software

PRESS RELEASES

PRABHAT TELECOM FILES DRHP ON BSE-SME

30, August, 2013

The company will also issue 3.5 lakh equity shares through a pre-IPO placement to raise an amount of Rs 30.000 Millions.

Prabhat Telecoms India (PTIL) has filed a DRHP with the BSE SME platform. The company plans to issue 33.25 lakh fresh equity shares at a fixed price of Rs 80 to raise an amount of Rs 266.000 Millions. The market makers’ portion in this public issue is reserved at 1.68 lakh equity shares.

The company will also issue 3.5 lakh equity shares through a pre-IPO placement to raise an amount of Rs 30.000 Millions. The lead managers for this offering are Guinness Corporate Advisors.

The issue consists of 27.90% of the post issue equity capital and the company plans to utilize these funds for:

· Setting up new assembly lines and of expansion of existing assembly lines

· Setting up greenfield assemble line and quality control and testing laboratories

· Enhancing its distribution network, enlarging its retail chain format

· Setting up of a regional office in New Delhi.

Prabhat Telecom (India) Limited, a part of the Prabhat Group, is a promising player in the market with strong financials. The company’s topline for fiscal 2013 stood at Rs. 2200.000 Millions, up from Rs. 1980.000 Millions in the last fiscal with the revenues coming in mainly from the sale of handsets. Its operating expenses also increased by 10% to Rs 2110.000 Millions on a yearly basis. The EBITDA for the same period grew to Rs 9.66, marking a growth of 60%. Besides, the bottom line stood at Rs 35.300 Millions as compared to Rs 18.100 Millions in the previous fiscal.

The experience of the promoters in the telecom products distribution business, its good distribution network with strong presence in western India and its established CDMA customer base consisting of the Tata and Essar group. The healthy revenue growth demonstrated by the company since its inception in 2007 through introduction of own brands, product diversifications and expansion of distribution network thereby exhibiting adequate scalability of business. Also takes note of the recent channel partner agreement with TSL, MTS, ZTE and distributing the products and services of TTML which along with strong growth in the wireless dongles (data cards) market are expected to be key revenue drivers.

The mobile handset industry in which the company operates is characterized by stiff competition, low level of entry barriers and obsolescence risk on account of rapidly changing technologies and short product life cycles. The company’s brands are relatively new with low brand recall value but if name in CDMA the company has strong presence despite negligible marketing. At present leading to weak bargaining power against large telecom players with whom it has tie-ups.

Further, owing to high import content and limited pricing flexibility with large telecom operators, a sustained depreciation of the rupee could put additional pressure on the company’s profitability.

The Prabhat group was initially engaged in telecom technical support business for MTNL and Lucent through it proprietorship firm ‘Prabhat Enterprises’. Prabhat Telecoms (India) Limited commenced operations in 2007 and was the distributor for brands like Airtel GCC, Tata GCC, Tata Sky, Tata Indicom, Micromax. Tata Sky etc. in the past. The company started to design, assemble and manufacture the telecom products such as CDMA Mobile Handsets, CDMA Data Cards, FWT, Wi-Fi Routers, accessories etc under its own in-house brands in 2011.  The company sells feature mobile handsets under own brand name “V3” Mobiles and internet data cards and smart phones / tablets, fixed wireless terminal and high end telecom devices under brand name “Xccess”. It also sells accessories such as screen guard, memory card etc under the brand name “Platinum”. It is a distributor of CDMA handsets for TTML for Mumbai Circle with 20 Sub distributors and 3,500 retail sales points. It also sells through 11,000 PAN India distributors on the basis of Tata Teleservices Maharashtra Limited (TTML)/Tata Teleservices Limited (TTSL) corporate tie-ups. PTIL also operates a multi-brand retail chain ‘Mobile Plus’ where it sells mobile handsets and allied accessories, DTH products etc. The company has also recently entered import and distribution of GSM handsets.

The company is promoted by Vishwamani Tiwari and Prabha Tiwari who have a background of engineering and possess more than twelve years of experience in telecom industry.

The company’s clientele base includes clients like Tata Teleservices Limited; Drive India Enterprise solutions Limited, the Mobile Store Limited, TVC sky shop Limited, Shyam Sistema Limited (MTS), Ominitech Info solution Limited among others.

Recent results:

As per its audited results for FY 2013, PTIL reported profit after tax (PAT) of Rs. 35.000 Millions over an operating income of Rs. 2140.000 Millions. As per audited FY 2012 results, the company reported a PAT of Rs. 18.000 Millions on an operating income of Rs. 1964.000 Millions.

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 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.61.87
UK Pound	1	Rs.101.10
Euro	1	Rs.84.65

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	KVT

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	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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.