MIRA INFORM REPORT

Report Date :

30.07.2013

IDENTIFICATION DETAILS

Name :	SHOGHI COMMUNICATIONS LIMITED
Formerly Known As :	SHOGHI COMMUNICATIONS PRIVATE LIMITED
Registered Office :	74, Electronic Complex Shoghi, Shimla – 173219, Himachal Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	27.11.1998
Com. Reg. No.:	06-021981
Capital Investment / Paid-up Capital :	Rs.8.850 Millions
CIN No.: [Company Identification No.]	U15200HP1998PLC021981
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Supplier and provider of innovatively integrated electronic Systems, products and services to military forces.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (15)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a company having a moderate track record. The networth of the company is fully eroded. It has been continuously incurring loss from its operation past some year. However, business is active. Payment terms are slow. The company can be considered for business dealings on a safe and secured 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

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 DENIED BY

Name :	Mr. Gopal Gupta
Designation :	Chartered Accountant
Contact No.:	91-120-4036600
Date :	29.07.2013

LOCATIONS

Registered Office :	74, Electronic Complex Shoghi, Shimla – 173219, Himachal Pradesh, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	mg@shogi.co.in sales@shoghicom.com
Website :	http://www.shoghicom.com
Corporate Office :	A-57, Sector 6, Noida – 201301, Uttar Pradesh, India
Tel. No.:	91-120-4036600

DIRECTORS

As on: 29.09.2012

Name :

Mr. Harish Gupta

Designation :

Managing Director

Address :

24, Flag Staff Road, New Delhi – 110 054, India.

Date of Birth/Age :

03.08.1951

Date of Appointment :

20.09.2005

DIN No:

00089724

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	U15200HP1998PLC021981	SHOGHI COMMUNICATIONS LIMITED	Managing director	20/09/2005	20/09/2005	-	Active	NO
2	U01403DL2007PTC163954	SHIMLA HILLS OFFERINGS PRIVATE LIMITED	Director	25/05/2007	25/05/2007	-	Active	NO
3	U15137MN2004PLC007305	EXOTIC JUICES LIMITED	Director	16/03/2009	16/03/2009	15/12/2011	Active	NO
4	U15490NL2010PTC008274	SHILLOI FOODS PRIVATE LIMITED	Director	03/06/2010	03/06/2010	-	Under Process of Striking off	NO

Name :

Mrs. Madhu Gupta

Designation :

Director

Address :

24, Flag Staff Road, New Delhi – 110 054, India.

Date of Birth/Age :

03.12.1955

Date of Appointment :

27.11.1998

DIN No:

00089833

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	U15200HP1998PLC021981	SHOGHI COMMUNICATIONS LIMITED	Director	27/11/1998	27/11/1998	-	Active	NO
2	U64200DL1993PLC053773	SIDHI TECH SERVICES LIMITED	Director	19/02/2007	19/02/2007	-	Strike off	NO
3	U01403DL2007PTC163954	SHIMLA HILLS OFFERINGS PRIVATE LIMITED	Director	25/05/2007	25/05/2007	-	Active	NO

Name :

Mr. Anant Bindal

Designation :

Director

Address :

24, Flag Staff Road, New Delhi – 110 054, India.

Date of Birth/Age :

11.09.1976

Date of Appointment :

01.12.1999

DIN No:

00089851

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	U64200DL1993PLC053773	SIDHI TECH SERVICES LIMITED	Director	11/09/1998	11/09/1998	-	Strike off	NO
2	U15200HP1998PLC021981	SHOGHI COMMUNICATIONS LIMITED	Director	01/12/1999	01/12/1999	-	Active	NO

Name :

Mrs. Ashita Bindal

Designation :

Director

Address :

24, Flag Staff Road, New Delhi – 110 054, India.

Date of Birth/Age :

09.06.1976

Date of Appointment :

01.03.2002

DIN No:

00089860

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	U64200DL1993PLC053773	SIDHI TECH SERVICES LIMITED	Director	01/02/2002	01/02/2002	-	Strike off	NO
2	U15200HP1998PLC021981	SHOGHI COMMUNICATIONS LIMITED	Director	01/03/2002	01/03/2002	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Gopal Gupta
Designation :	Chartered Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Harish Gupta	130000
Madhu Gupta	538250
Anant Bindal	171375
Harish Gupta and Sons	1000
Ashita Bindal	2000
Anant Bindal HUF	1000
Sukrit Bindal	20375
Varen Bindal	21000
Total	885000

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Bodies corporate	0.11
Directors or relatives of directors	99.89
Total	100.00

BUSINESS DETAILS

Line of Business :

Supplier and provider of innovatively integrated electronic Systems, products and services to military forces.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Canara Bank, Wazirpur Branch, 18, Community Centre, Ashok Vihar, Delhi - 110052, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011
LONG TERM BORROWINGS
TERM LOANS
Canara Bank	14.976
SHORT TERM BORROWINGS
Canara Bank OD A/C (Secured against hypothecation of Stocks and Book Debts)	10.005
Total	24.981

Banking Relations :	--
Auditors :
Name :	MLG Asscciates Chartered Accountants
Address :	House No-63, Sector-15, Faridabad – 121007, Haryana, India
Tel. No.:	91-129-2283881
E-Mail :	groupmlg@eth.net
PAN No.:	AAGFM1817M

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
885000	Equity Shares	Rs.10/- each	Rs.8.850 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	8.850	8.850
(b) Reserves & Surplus	(17.980)	(17.327)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	(9.130)	(8.477)
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	18.776
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	0.000	18.776
(4) Current Liabilities
(a) Short term borrowings	0.000	10.005
(b) Trade payables	4.536	14.344
(c) Other current liabilities	32.930	5.947
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	37.466	30.296
TOTAL	28.336	40.595
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	20.367	20.579
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.250	0.250
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	20.617	20.829
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	1.443	13.261
(c) Trade receivables	0.476	0.443
(d) Cash and cash equivalents	4.449	2.018
(e) Short-term loans and advances	1.351	4.044
(f) Other current assets	0.000	0.000
Total Current Assets	7.719	19.766
TOTAL	28.336	40.595

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		8.850
2] Share Application Money		0.000
3] Reserves & Surplus		15.280
4] (Accumulated Losses)		(22.833)
NETWORTH		1.297
LOAN FUNDS
1] Secured Loans		21.963
2] Unsecured Loans		0.000
TOTAL BORROWING		21.963
DEFERRED TAX LIABILITIES		0.000
TOTAL		23.260
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		21.961
Capital work-in-progress		0.000
INVESTMENT		0.250
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7.407
	Sundry Debtors	2.016
	Cash & Bank Balances	0.456
	Other Current Assets	0.000
	Loans & Advances	4.590
Total Current Assets		14.469
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8.651
	Other Current Liabilities	4.112
	Provisions	0.657
Total Current Liabilities		13.420
Net Current Assets		1.049
MISCELLANEOUS EXPENSES		0.000
TOTAL		23.260

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	45.296	13.360	116.311
		Other Income	2.398	0.211	0.802
		TOTAL (A)	47.694	13.571	117.113
Less	EXPENSES
		Purchase of Stock in Trade	3.727	0.273
		Changes in Inventories of Finished Goods & WIP	11.818	(5.854)
		Employee Benefit Expenses	15.045	15.099
		Other Expenses	12.728	8.400
		TOTAL (B)	43.318	17.918	104.101
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4.376	(4.347)	13.012
Less	FINANCIAL EXPENSES (D)		3.148	3.433	3.591
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.228	(7.780)	9.421
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.881	1.810	2.032
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(0.653)	(9.590)	7.389
Less	TAX (H)		0.000	0.184	0.652
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(0.653)	(9.774)	6.737
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(32.607)	(22.833)	(29.570)
	BALANCE CARRIED TO THE B/S		(33.260)	(32.607)	(22.833)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	43.714	11.476	112.917
	TOTAL EARNINGS		43.714	11.476	112.917
	TOTAL IMPORTS		NA	NA	81.011
	Earnings Per Share (Rs.)		(0.74)	(11.04)	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(1.37)	(72.02)	5.75
Net Profit Margin (PBT/Sales)	(%)	(1.44)	(17.78)	6.35
Return on Total Assets (PBT/Total Assets}	(%)	(2.33)	(23.77)	20.28
Return on Investment (ROI) (PBT/Networth)		0.07	1.13	5.70
Debt Equity Ratio (Total Debt/Networth)		0.00	(3.40)	16.93
Current Ratio (Current Asset/Current Liability)		0.21	1.05	1.08

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	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

OPER ATIONS

Year 2011-2012 proved to be good year and the directors have achieved a Turnover of Rs.45.296 Millions Against Rs. 13.360 Millions of Previous Year. There is increase in Turnover and the Company has good control over the Cost helped to generate Net Profit (P.B.I.T) Rs.4.375 Millions (against previous year Loss of Rs.4.348 Millions).After providing for the Interest, Dep. and Income Tax liability the Profit After Tax (PAT) Rs.(0.653 Million) (against Previous year Loss of Rs.9.774 Millions)

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2011
LONG TERM BORROWINGS
Anil Bhaskar	2.500
Jai Shree Rasayan Udyog	1.000
Sham Sunder Vasudeva	0.300
Total	3.800

FIXED ASSETS

• Land
• Building
• Office Equipment
• Furniture and Fixture
• Electrical Fittings
• Computers
• Plant and Machinery
• Car
• Scooter

AS PER WEBSITE DETAILS

Press Release

2012

SHOGHI COMMUNICATIONS LIMITED : A LEADER IN ISR TECHNOLOGIES

May 7, 2012

With strong presence in SOFEX’2012, Shoghi Communications Limited an Indian based company showcased its products and services in the diverse fields of intelligence, surveillance and reconnaissance (ISR), electronic warfare (EW), communication security, satellite imaging and avionics solutions with an impressive display of their flagship systems. The company had set up an impressive array of equipments on display during their presence in the event. The brightly colored stall at the exhibition was noted teeming with visitors during the entire show over four days.

On display was the Tactical Thuraya Monitoring system with a set of multiple servers installed in a military ruggedized rack giving a full-fledged demonstration of its capabilities based on recorded signals. The system depicted the working of a complete set of equipment for the monitoring of four spot beams of the Thuraya network. The system was configured with industrial computers configured for each of the four spot beams and with an online decryption server and a storage server for storage of the intercepted calls and SMS. The system demonstration provided an opportunity for a large contingent of foreign delegates to witness the capabilities of demodulation, decoding, decryption and recording of calls which could be played over a click of a mouse to hear using a set of earphones

Another system on display which attracted the attention of several delegations was the Satellite Monitoring System. The system designed to work in both C and Ku bands also depicted the technology advancement of the Indian company wherein a duplex satellite link could be completely. The system is also able to monitor any international IP gateways connected on satellite networks to provide a complete recording of all IP traffic and is able to record and display emails; Chat, Web and FTP traffic on the operator GUI.

Apart from this the delegates were also given specific presentation and solutions on Shoghi are various applications like High Resolution Satellite Imaging, MRO services of aircrafts, Communication Security etc.

Shoghi Communications Limited with their impressive display was a popular haunt of the various military delegations of several countries. Their informative demos, presentation and illustration on products gave deeper understanding and knowledge on homeland security.

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.59.30
UK Pound	1	Rs.91.18
Euro	1	Rs.78.71

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	1
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	3
--RESERVES	1~10	-
--CREDIT LINES	1~10	2
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		15

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.