MIRA INFORM REPORT

Report Date :

10.06.2013

IDENTIFICATION DETAILS

Name :	LINK WELL TELESYSTEMS PRIVATE LIMITED
Registered Office :	1-11-252/1B, Behind Shopper’s Stop, Begumpet, Hyderabad-500016, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	15.06.1993
Com. Reg. No.:	01-015875
Capital Investment / Paid-up Capital :	Rs.19.995 Millions
CIN No.: [Company Identification No.]	U64203AP1993PTC015875
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Equipments such as Pay-Phone Terminals, Fixed Wireless Terminals, Transaction Terminals, Wireless Modems and Routers, Vehicle Tracking Systems, etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 3740000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having a satisfactory track record. Financially company seems to be strong. Liquidity position is good. 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BBB + [Long Term]
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation it carry moderate credit risk.
Date	05.09.2012

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 / Corporate Office :	1-11-252/1B, Behind Shopper’s Stop, Begumpet, Hyderabad-500016, Andhra Pradesh, India
Tel. No.:	91-40-66388000
Fax No.:	91-40-66388006
E-Mail :	info@visiontek.co.in nath@visiontek.co.in
Factory :	B-45 and 46, Electronic Complex, Kushaiguda, Hyderabad-500062, Andhra Pradesh, India

DIRECTORS

AS ON 27.09.2012

Name :

Anumolu Krishna Prasad

Designation :

Managing Director

Address :

44, Wishparvally Darga, Serilingampally, Hyderabad-500008, Andhra Pradesh, India

Date of Birth/Age :

05.09.1958

Date of Appointment :

15.06.1993

Din No.:

01443295

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	Company/ LLP Status	Defaulting status
1	U64203AP1992PTC014661	VISIONTEK TELESYSTEMS PRIVATE LIMITED	Director	11/08/1992	11/08/1992	Active	NO
2	U64203AP1993PTC015875	LINK WELL TELESYSTEMS PRIVATE LIMITED	Managing director	15/06/1993	15/06/1993	Active	NO
3	U32300AP1989PTC009491	NAVODAYA ELECTRONICS PRIVATE LIMITED	Director	24/11/2000	24/11/2000	Active	NO
4	U31909AP1994PTC017106	RAY ELECTRIC INDIA PRIVATE LIMITED	Director	03/03/2005	03/03/2005	Active	NO
5	U67200AP1995PTC021606	S C N INFRASTRUCTURE PRIVATE LIMITED	Director	18/03/2005	18/03/2005	Active	NO

Name :

Sunkara Radha Rani

Designation :

Director

Address :

44, Wishparvally Darga, Serilingampally, Hyderabad-500008, Andhra Pradesh, India

Date of Birth/Age :

08.05.1965

Date of Appointment :

19.01.1994

Din No.:

01545421

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	Company/ LLP Status	Defaulting status
1	U64203AP1993PTC015875	LINK WELL TELESYSTEMS PRIVATE LIMITED	Director	09/01/1994	09/01/1994	Active	NO
2	U64203AP1992PTC014661	VISIONTEK TELESYSTEMS PRIVATE LIMITED	Director	01/09/1994	01/09/1994	Active	NO
3	U32300AP1989PTC009491	NAVODAYA ELECTRONICS PRIVATE LIMITED	Director	24/11/2000	24/11/2000	Active	NO
4	U67200AP1995PTC021606	S C N INFRASTRUCTURE PRIVATE LIMITED	Director	18/03/2005	18/03/2005	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2012

Names of Shareholders	No. of Shares
Anumolu Krishna Prasad	1282300
Sunkara Radha Rani	697200
S. Baby Sarojini	2000
S. Koteswara Rao	2000
V. Padma	2000
N. Vijayalakshmi	2000
A.Bubuji	2000
A. Ram Prasad	2000
S.B. Ramakrishna	2000
D. Srinivasa Rao	2000
A. Shyam Prasad	2000
T.V.N.R. Nath	2000
TOTAL	1999500

AS ON 27.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	98.00
Other top fifty shareholders	2.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Equipments such as Pay-Phone Terminals, Fixed Wireless Terminals, Transaction Terminals, Wireless Modems and Routers, Vehicle Tracking Systems, etc.

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Equipments	Nos.	N.A.	N.A.	485478

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of Hyderabad, Commercial Branch, Surya Towers, 105, S.P. Road, Secunderabad-500003, Andhra Pradesh, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Term loans from banks	1.284	1.837
Working capital loans from banks	102.601	147.379
Loans repayable on demand from banks	36.201	80.033
TOTAL	140.086	229.249

Banking Relations :	--
Auditors :
Name :	Balajinaidu and Company Chartered Accountants
Address :	6-1-85/4, Saifabad, Hyderabad, Andhra Pradesh, India
PAN No:	AADFB5507C
Related Parties :	Visiontek Telesystems Private Limited [U64203AP1992PTC014661] Ray Electric India Private Limited [U31909AP1994PTC017106] Navodaya Electronics Private Limited [U32300AP1989PTC009491]

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
1999500	Equity Shares	Rs.10/- each	Rs.19.995 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		19.995	19.995	19.995
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		917.127	860.556	788.872
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		937.122	880.551	808.867
LOAN FUNDS
1] Secured Loans		140.086	229.249	89.492
2] Unsecured Loans		4.889	8.402	9.377
TOTAL BORROWING		144.975	237.651	98.869
DEFERRED TAX LIABILITIES		24.195	23.315	21.997
TOTAL		1106.292	1141.517	929.733
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		227.430	238.910	213.040
Capital work-in-progress		8.109	0.000	0.000
INVESTMENT		4.629	4.539	4.615
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	205.779	200.463	144.567
	Sundry Debtors	317.623	272.511	273.826
	Cash & Bank Balances	310.151	331.850	322.269
	Other Current Assets	91.306	34.970	7.004
	Loans & Advances	137.755	194.985	118.310
Total Current Assets		1062.614	1034.779	865.976
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	137.613	71.554	69.065
	Other Current Liabilities	46.994	45.382	50.942
	Provisions	11.883	19.775	33.891
Total Current Liabilities		196.490	136.711	153.898
Net Current Assets		866.124	898.068	712.078
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1106.292	1141.517	929.733

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Turnover	1009.200	1007.600
		Other Income	NA	NA
		TOTAL	NA	NA	1137.316
Less	EXPENSES
		TOTAL	NA	NA	1021.794
	PROFIT / (LOSS) BEFORE TAX		NA	NA	115.522
Less	TAX		NA	NA	34.375
	PROFIT / (LOSS) AFTER TAX		41.300	71.900	81.147
	EARNINGS IN FOREIGN CURRENCY		NA	91.010	130.361
	IMPORTS		NA	488.967	551.884
	Earnings / (Loss) Per Share (Rs.)		20.65	35.95	40.58

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	7.13
Return on Total Assets (PBT/Total Assets}	(%)	NA	NA	10.70
Return on Investment (ROI) (PBT/Networth)		NA	NA	0.14
Debt Equity Ratio (Total Debt/Networth)		0.15	0.27	0.12
Current Ratio (Current Asset/Current Liability)		5.41	7.57	5.63

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	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	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	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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

NOTE:

The registered office of the company has been shifted from 1-11-252/1/A, Gowra Klassic Building, Behind Shopper’s Stop, Begumpet, Hyderabad-500016, Andhra Pradesh, India to the present address w.e.f.01.04.2013.

Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Deferred payment liabilities	4.889	8.402
TOTAL	4.889	8.402

PERFORMANCE REVIEW:

During the year, the company could achieve a noticeable growth in the export market which consisted of Pay Phones and POS Terminals. Company has successfully mastered the technology and up graded the equipments for manufacture of Three Phase and Single Phase Smart Energy Meters. Introduced Energy Meters into the Market by supplying to Major Utilities.

The Company has achieved a Net Turnover of Rs. 1009.200 Millions. (Previous Year Rs. 1007.600 Millions)The Net profit after Tax is Rs. 41.300 Millions. (Previous year Rs. 71.900 Millions)

The Impact of the upward swing in USD and general increase in operational costs have partially eroded the margins.

PROSPECTS DURING 2012-2013:

- The Company expects more than fifty percent of domestic sales turnover from Three Phase and Single Phase Smart Energy Meters.

- Company has tied up with a major MNC (Coco Cola) in FMCG Sector for Sales, Distribution and delivery process automation, using Visiontek POS Terminals.

- Major portion of Export market will consist of exporting POS Terminals

Company is negotiating with:

- Utility sector customers for supply of AMR end to end solution that includes hard ware & software facility and

- With Transport sector for supply of VTUs and related software.

- Is negotiating with customers in Finance Sector with e-Governance solution providers for POS devices

- Is into marketing of USB Modems and other products as a trading activity.

These steps are in addition to strengthening the market base for existing products in the export market. With these efforts we expect a substantial growth in the coming year, in terms of Turnover and Net returns.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	90135715
Corporate identity number of the company	U64203AP1993PTC015875
Name of the company	LINK WELL TELESYSTEMS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	1-11-252/1B, Behind Shopper’s Stop, Begumpet, Hyderabad-500016, Andhra Pradesh
Type of charge	Immovable Property
Particular of charge holder	State Bank of Hyderabad, Commercial Branch, Surya Towers, 105, S.P. Road, Secunderabad-500003, Andhra Pradesh, India
Nature of description of the instrument creating or modifying the charge	Memorandum for recording extension of mortgage by deposit of title deeds covering enhanced limits and/or creation of equitable mortgage on additional properties for existing limits and enhanced limits and additional limits
Date of instrument Creating the charge	02.01.2013
Amount secured by the charge	Rs.705.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest No change i.e., Interest on Cash Credit (Hypothecation) and SME Credit Plus Limit at 2% above Base Rate (SBH Base Rate = 10.25% ) i.e. 12.25% at present. Terms of Repayment No change i.e., The Working Capital Limits are repayable on demand. Margin No change i.e., 1) Raw Materials : Imported at 25% 2) Raw Materials : Indigenous at 25% 3) Semi - Finished Goods at 25% 4) Finished Goods at 25% 5) Components/Consumables/Spares at 25% 6) Domestic Receivables at 35% (Cover period 120 days) Extent and Operation of the charge The charge operates as a first charge on the immovable property of the company until the repayment of entire credit facilities sanctioned by the bank.
Short particulars of the property charged	Extension of Equitable Mortgage of Open Land in Sy.No.229 to 246 extent 4968.50 Sq. Yards situated at B.N. Reddy Nagar, Cherlapally (V) Kapra Municipality standing in the name of the company.
Date of latest modification prior to the present modification	24.12.2012
Particulars of the present modification	No change in the existing limits of Rs.705.000 Millions sanctioned. Now, by this modification the limits further secured by Extension of Equitable Mortgage of Open Land in Sy.No.229 to 246 extent 4968.50 Sq. Yards situated at B.N. Reddy Nagar, Cherlapally (V) Kapra Municipality, Ghatkesar standing in the name of the company.

FIXED ASSETS:

• Land
• Plant and Machinery
• Testing Equipments
• Office Equipments
• Furniture and Fixtures
• Vehicles
• Computer
• Generator

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.56.74
UK Pound	1	Rs.88.53
Euro	1	Rs.75.20

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.