MIRA INFORM REPORT

Report Date :

15.01.2013

IDENTIFICATION DETAILS

Name :	ENTRUST INFONET PRIVATE LIMITED
Registered Office :	17, Shilpi Society, Opposite Swami Narayan Temple, Water Tank Road, Karelibaug, Vadodara – 390019, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	04.03.2011
Com. Reg. No.:	04-064267
Capital Investment / Paid-up Capital :	Rs.0.100 Million
CIN No.: [Company Identification No.]	U72200GJ2011PTC064267
Legal Form :	Private Limited Liability Company
Line of Business :	The Service Provider of information Technology, LAN Services, WAN Services, Wire Less Services, Videoconference Services, Security Services, Data Centre Services.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 9000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a relatively new company having a satisfactory track record. In its first year of business operation, the company has performed and achieved sizeable profit. 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.

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.

INFORMATION DECLINED

Management Non-Cooperative.

Contact No.: 91-265-2482137

LOCATIONS

Registered Office :	17, Shilpi Society, Opposite Swami Narayan Temple, Water Tank Road, Karelibaug, Vadodara – 390019, Gujarat, India
Tel. No.:	91-265-2482137
Fax No.:	91-265-2482137
E-Mail :	kheradiaramesh@hotmail.com col@satyam.net.in
Website :	http://www.entrustinfonet.com

DIRECTORS

(AS ON 14.06.2012)

Name :	Mr. Nihar Pravinchandra Kapadia
Designation :	Whole-time Director
Address :	17, Shilpi Society, Opposite Swami Narayan Temple, Water Tank Road, Karelibaug, Vadodara – 390019, Gujarat, India
Date of Birth/Age :	29.10.1973
Date of Appointment :	04.03.2011
DIN No.:	03425999
Name :	Mrs. Rinku Nihar Kapadia
Designation :	Director
Address :	17, Shilpi Society, Opposite Swami Narayan Temple, Water Tank Road, Karelibaug, Vadodara – 390019, Gujarat, India
Date of Birth/Age :	23.04.1978
Date of Appointment :	04.03.2011
DIN No.:	03426010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 14.06.2012)

Names of Shareholders	No. of Shares
Nihar Pravinchandra Kapadia	167500
Rinku Nihar Kapadia	82500
Total	250000

(AS ON 30.09.2012)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The Service Provider of information Technology, LAN Services, WAN Services, Wire Less Services, Videoconference Services, Security Services, Data Centre Services.

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

· State Bank of India

Cantonment Branch, Karelibaug, Vadodara – 390018, Gujarat, India

Facilities :

Secured Loans	31.03.2012 (Rs. In Millions)
Other Loans and advances (Specify nature) Secured by hypothecation of car of the company) (of the above, entire term loans from HDFC bank is guaranteed by directors payable in 36 months.	0.112
Total	0.112

Banking Relations :	--
Auditors :
Name :	Ashwin Shah and Company Chartered Accountant
Address :	110-111, 1t Floor, Silver Coin, Near Shreik Park, Char Rasta Rodcutivity Road, Vadodara – 390020, Gujarat, India
Tel No.:	91-265-2350687
Mobile No.:	91-9824011740
PAN No.:	ABWPS4438D
Email :	ashwinshah@yahoo.co.in

CAPITAL STRUCTURE

(AS ON 14.06.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 Millions

(AS ON 31.03.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs.0.100 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs.0.100 Million

Disclosure Pursuant to note no.6(A)(d) of part I of Schedule VI to the companies Act, 1956

Particulars	Equity Shares
	Number	Amount (Rs. In millions)
Shares outstanding at the beginning of the year	Nil	Nil
Shares issued during the year	10,000	0.100
Shares bought back during the year	Nil	Nil
Shares outstanding at the end of the year	10,000	0.100

Not Applicable as company is not a subsidiary of any company

Above disclosure is required for each class of shares held its holding company including shares held by or by subsidiaries or associates of the holding company or the ultimate holding company in aggregate.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012
SHAREHOLDERS FUNDS
1] Share Capital		0.100
2] Share Application Money		0.000
3] Reserves & Surplus		2.042
4] (Accumulated Losses)		0.000
NETWORTH		2.142
LOAN FUNDS
1] Secured Loans		0.112
2] Unsecured Loans		2.919
TOTAL BORROWING		3.031
DEFERRED TAX LIABILITIES		0.050
TOTAL		5.223
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.945
Capital work-in-progress		0.000
INVESTMENT		0.015
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1.008
	Sundry Debtors	7.428
	Cash & Bank Balances	1.740
	Other Current Assets	0.000
	Loans & Advances	1.598
Total Current Assets		11.774
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	0.000
	Other Current Liabilities	5.784
	Provisions	1.727
Total Current Liabilities		7.511
Net Current Assets		4.263
MISCELLANEOUS EXPENSES		0.000
TOTAL		5.223

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012
	SALES
		Income	35.466
		Other Income	0.949
		TOTAL	36.415
Less	EXPENSES
		Cost of Materials Consumed/Sold	24.747
		Employee Benefits Expenses	4.309
		Direct Expenses	1.233
		Other Expenses	2.927
		TOTAL	33.216
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		3.199
Less/ Add	DEPRECIATION/ AMORTISATION		0.207
	PROFIT BEFORE TAX		2.992
Less	TAX		0.950
	PROFIT AFTER TAX		2.042
	Earnings Per Share (Rs.)		204.19

KEY RATIOS

PARTICULARS		31.03.2012
PAT / Total Income	(%)	5.61
Net Profit Margin (PBT/Sales)	(%)	8.44
Return on Total Assets (PBT/Total Assets}	(%)	23.52
Return on Investment (ROI) (PBT/Networth)		1.40
Debt Equity Ratio (Total Liability/Networth)		4.92
Current Ratio (Current Asset/Current Liability)		1.57

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012 (Rs. In Millions)
Sundry Creditors	Nil

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	No
10]	Designation of contact person	No
11]	Turnover of firm for last one years	Yes
12]	Profitability for last one 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

FORM 8

This form is for	Modification of charge
Charge identification number of the modified	10360565
Corporate identity number of the company	U72200GJ2011PTC064267
Name of the company	ENTRUST INFONET PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	17, Shilpi Society Water Tank Road, Water Tank Road, Karelibaug, Vadodara – 390019, Gujarat, India kheradiaramesh@hotmail.com
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	State Bank of India Cantonment Branch, Karelibaug, Vadodara – 390018, Gujarat, India bhupendra.rathoria@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Supplemental agreement of loan-cum-hypothecation
Date of instrument Creating the charge	01/10/2012
Amount secured by the charge	Rs.8.400 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest 3.25% P.A.. Margin above the base rate which is at present 10.00 % p.a. and thus present effective rate is 13.25% p.a. for both cash credit and term loan Terms of Repayment Cash Credit of Rs.4.000 Millions plus additional Rs.3.500 Millions Total Rs.7.500 Millions repayable on demand term loan of Rs.0.900 Million is payable in 33 monthly installments of Rs.27272 plus interest with three months moratorium period. the repayment has commenced from august 2012. Margin Raw Materials, Semi Finished Goods and Finished Goods 25%, Domestic Receivables for 50 days 50% and Term Loan 28.85% Extent and Operation of the charge The charges operates as security for the due repayment of cash credit limit of Rs.4.000 Millions plus additional cash credit limits of Rs.3.500 Millions Total CC Limits of Rs.7.500 Millions and term loan of Rs.0.900 Millions and shall also extend to interest, further interest, penal interest thereon and other cost, charges and fees and expenses payable by the borrower under the agreement with the bank. Others Hypothecation of stocks and book debts. Hypothecation of entire machinery, equipment and other movable assets of the company purchase out of bank finance.
Short particulars of the property charged	Hypothecation of stocks and book debts. Hypothecation of entire machinery, equipment and other movable assets of the company purchase out of bank finance.
Particulars of the present modification	The charge created on 16/06/2012 for Rs.4.900 Millions is now modified and extended to secure additional CC Limits of Rs.3.500 Million Total Amount of Rs.8.400 Millions is thus secured under the charge is as under CC Rs.7.500 Millions, Term Loan Rs.0.900 Million.

FIXED ASSETS:

· Car

· Computer

· Furniture and Fixtures

· Laptops

· Mobile Instrument

· Electrical Instrument

· Office Equipment

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.54.54
UK Pound	1	Rs.88.05
Euro	1	Rs.72.29

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
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	4
--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		42

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.