MIRA INFORM REPORT

Report Date :

11.06.2013

IDENTIFICATION DETAILS

Name :	TIKONA DIGITAL NETWORKS PRIVATE LIMITED
Registered Office :	‘Corpora’, Office 3A, 3^rd Floor, LBS Marg, Bhandup (West), Mumbai - 400078, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.05.2008
Com. Reg. No.:	11-182808
Capital Investment / Paid-up Capital :	Rs. 20.981 Millions
CIN No.: [Company Identification No.]	U72900MH2008PTC182808
TAN No.: [Tax Deduction & Collection Account No.]	MUMT14724D
PAN No.: [Permanent Account No.]	AACCT9425H
Legal Form :	Private Limited Liability Company
Line of Business :	Providing Broadband and Telecommunication Services.
No. of Employees :	100 (Approximately)

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 :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The latest financial are not made available to us. As per old, there appear huge accumulated losses recorded by the company. Profitability of the company is under pressure. Liquidity position of the company seems to be weak. However, the status of the company appears to be active with Registrar of Companies. Payment terms are unknown. The company can be considered for business dealings on 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : BB-
Rating Explanation	Moderate risk of default.
Date	March 15, 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.

INFORMATION PARTED BY

Name :	Ms. Pratibha Kumbhat
Designation :	Compliance Department
Contact No.:	91-22-41830000
Date :	10.06.2013

LOCATIONS

Registered Office :	‘Corpora’, Office 3A, 3^rd Floor, LBS Marg, Bhandup (West), Mumbai - 400078, Maharashtra, India
Tel. No.:	91-22-67840000/ 41830000
Fax No.:	91-22-67840111/ 41830111
E-Mail :	r.narayanan@tikona.in compliance@tikona.in v.agarwal@tikona.in pratibha.kumbhat@tikona.in
Website :	www.tikona.in

DIRECTORS

AS ON 05.12.2012

Name :	Mr. Prakash Chandra Bajpai
Designation :	CEO and Managing Director
Address :	Flat No. 201-2, Raheja Grand, Turner Road, Bandra (West), Mumbai - 400031, Maharashtra, India
Date of Birth/Age :	09.09.1956
Qualification :	B.E.
Experience :	28 Years
Date of Appointment :	11.06.2008
DIN No.:	00030512
Name :	Mr. Gaurav Bhandari
Designation :	Director
Address :	47, East 87^thStreet #5C, New York 10128, USA.
Date of Birth/Age :	10.03.1968
Date of Appointment :	04.09.2008
DIN No.:	02259646
Name :	Iftikar Ali Ahmed
Designation :	Director
Address :	505, North Greenwich, Connecticut, 06830, USA
Date of Birth/Age :	25.12.1971
Date of Appointment :	04.09.2008
DIN No.:	02257147
Name :	Mr. Atul Kapur
Designation :	Director
Address :	21 Holland Park Lien Towers #07-21, Singapore-249476
Date of Birth/Age :	22.06.1963
Date of Appointment :	04.09.2008
DIN No.:	01778935
Name :	Mr. Tarun Kumar
Designation :	Director and Chief Technology Officer
Address :	A-9 /203, Badhwar Park, Railway Officer Flats, Cuffe Parade, Mumbai – 400005, Maharashtra, India
Date of Birth/Age :	20.08.1967
Qualification :	M. Tech
Experience :	20 Years
Date of Appointment :	09.09.2010
DIN No.:	02794297
Name :	Mrs. Shweta Bhatia
Designation :	Director
Address :	H/No Q-4/9, DLF Phase 2, Purvi Marg, Gurgaon – 122002, Haryana, India
Date of Birth/Age :	22.11.1978
Date of Appointment :	05.12.2012
DIN No.:	03167394
Name :	Mr. Suneet Shriniwas Maheshwari
Designation :	Director
Address :	Flat No. 192-19, Tower 19^th Floor, Kalptaru Habitat, Mumbai – 400012, Maharashtra, India
Date of Birth/Age :	21.04.1958
Date of Appointment :	05.12.2012
DIN No.:	00420952

KEY EXECUTIVES

Name :	Ms. Pratibha Kumbhat
Designation :	Compliance Department
Name :	Mr. Heramb Ranade
Designation :	Chief Marketing Officer
Date of Birth/Age :	44 Years
Qualification :	B. Tech
Experience :	21 Years

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 05.12.2012

Names of Shareholders	No. of Shares
GS Investment Partners (Mauritius) I Limited, Mauritius	410
Indivision India Partners , Mauritius	300
Oak India Investment, Mauritius	300
Prakash Bajpai	100
Rajesh Tiwari	108
Prakash Bajpai and Heramb Ranade As Trustees – Tikona Trust	2083157
Green Lotus Limited, Mauritius	237
Ajay Sarupria	14042
GS Investments Partners (Mauritius) IV Limited, Mauritius	200
Anand Rathi Financial Services Limited, India	100
L and T Infrastructure Finance Company Limited , India	316
Total	2099270

AS ON 05.12.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	0.02
Bodies corporate	0.01
Directors or relatives of directors	0.01
Other top fifty shareholders	99.96
Total	100.00

BUSINESS DETAILS

Line of Business :	Providing Broadband and Telecommunication Services.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Others

No. of Employees :

100 (Approximately)

Bankers :

Punjab National Bank, Maker Tower, “E” Ground Floor, Cuffe Parade, Mumbai - 400005, Maharashtra, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Long Term Loans From Banks and Other
From Banks	3604.176	0.000
From Others (Due within year Rs. Nil)	1600.000	0.000
Total	5204.176	0.000

Banking Relations :	--
Auditors :
Name :	S.R. Batliboi and Associates Chartered Accountants
Address :	Express Towers, 6^th Floor, Nariman Point, Mumbai – 400021, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AABFS3421N
Related Party :	Tikona Infinet Limited
Enterprises owned or significantly influenced by key management personnel or their relatives :	Tikona Trust

CAPITAL STRUCTURE

AS ON 05.12.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25,000,000	Equity Shares	Rs. 10/- each	Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,099,270	Equity Shares	Rs. 10/- each	Rs. 20.993 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
12,500,000	Equity Shares	Rs. 10/- each	Rs. 125.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10,000	Equity Shares fully paid	Rs. 10/- each	Rs. 0.100 Million
1,673,422	Class-I equity shares partly paid	Rs. 10/- each	Rs. 16.734 Millions
413,775	Class-II equity shares partly paid	Rs. 10/- each	Rs. 4.138 Millions
400	Series A equity shares fully paid	Rs. 10/- each	Rs. 0.004 Million
200	Series B equity shares fully paid	Rs. 10/- each	Rs. 0.002 Million
300	Series C equity shares fully paid	Rs. 10/- each	Rs. 0.003 Million
	Total		Rs. 20.981 Millions

Notes:

(1) Of the total 2,098,097 (March 31, 2010 -- 1,684,022) equity shares; 2,083,157 (March 31, 2010 -- 1,669,382) equity shares are held by Tikona Trust.

(2) Further, of the total 2,098,097 (March 31, 2010 -- 1,684,022) equity shares; 1,674,022 (March 31, 2010 -- 1,674,022) equity shares (Class-I, Series A and Series B) are issued at a premium of Rs 990 per share [Refer sub note (a), (b), (c) and (d) below] and 414,075 (March 31, 2010 -- Nil) equity shares (Class-II and Series C) are issued at a premium of Rs 2,830 per share [Refer sub note (e) and (f) below] as given below:

(a) 1,659,382 (March 31, 2010 -- 1,659,382) partly paid-up Class-I equity shares to Tikona Trust. As at March 31, 2011, the Company has not called for the securities premium on these shares;

(b) 14,040 (March 31, 2010 -- 14,040) partly paid-up Class-I equity shares to a consultant. As at March 31, 2011, the Company has not called for the securities premium on these shares;

(c) 400 (March 31, 2010 -- 400) fully paid-up equity shares to the external investors (Series A). As at March 31, 2011, the securities premium has been fully called for and paid up; and

(d) 200 (March 31, 2010 -- 200) fully paid-up equity shares to the promoters (Series B). As at March 31, 2011, the securities premium has been fully called and paid up;

(e) 413,775 (March 31, 2010 -- Nil) partly paid-up Class-II equity shares to Tikona Trust. As at March 31, 2011, the Company has not called for the securities premium on these shares;

(f) 300 (March 31, 2010 -- Nil) fully paid-up equity shares to the external investors (Series C). As at March 31, 2011, the securities premium has been fully called and paid up;

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		20.981	16.840	13.319
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1.443	0.594	0.594
4] (Accumulated Losses)		(2641.250)	(923.199)	(69.156)
NETWORTH		(2618.826)	(905.765)	(55.243)
LOAN FUNDS
1] Secured Loans		5204.176	0.000	0.000
2] Unsecured Loans		12217.417	4736.766	1319.821
TOTAL BORROWING		17421.593	4736.766	1319.821
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		14802.767	3831.001	1264.578
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		13248.752	1305.788	269.197
Capital work-in-progress		455.642	395.194	460.830
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	91.422	31.568	1.302
	Cash & Bank Balances	905.727	2173.723	532.865
	Other Current Assets	34.117	2.071	0.343
	Loans & Advances	609.256	422.279	88.590
Total Current Assets		1640.522	2629.641	623.100
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	74.061	295.887	57.649
	Other Current Liabilities	436.906	192.738	27.552
	Provisions	31.182	10.997	3.348
Total Current Liabilities		542.149	499.622	88.549
Net Current Assets		1098.373	2130.019	534.551
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		14802.767	3831.001	1264.578

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	805.368	96.765	0.295
		Other Income	117.194	76.601	25.423
		TOTAL	922.562	173.366	25.718
Less	EXPENSES
		Office Expenses	2219.893	897.189	85.759
		Administrative Expenses
		Advertising Expenses
		TOTAL	2219.893	897.189	85.759
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(1297.331)	(723.823)	(60.041)
Less	FINANCIAL EXPENSES		14.521	3.027	0.297
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		(1311.852)	(726.850)	(60.338)
Less/ Add	DEPRECIATION/ AMORTISATION		396.256	127.193	8.346
	PROVISION FOR IRRECOVERABLE AND DAMAGED ASSETS		(9.943)	0.000	0.000
	PROFIT/(LOSS) BEFORE TAX		(1718.051)	(854.043)	(68.684)
Less	TAX		0.000	0.000	0.472
	PROFIT/(LOSS) AFTER TAX		(1718.051)	(854.043)	(69.156)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(923.199)	(69.156)	0.000
	BALANCE CARRIED TO THE B/S		(2641.250)	(923.199)	(69.156)
	IMPORTS
		Import of Capital Equipment	538.337	605.371	196.808
	Earnings/ [Loss] Per Share (Rs.)		(857.34)	(602.93)	(103.40)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(186.23)	(492.62)	(268.90)
Net Profit Margin (PBT/Sales)	(%)	(213.32)	(882.59)	(23282.71)
Return on Total Assets (PBT/Total Assets}	(%)	(11.54)	(21.70)	(7.70)
Return on Investment (ROI) (PBT/Networth)		0.66	0.94	1.24
Debt Equity Ratio (Total Debt/Networth)		(6.65)	(5.23)	(23.89)
Current Ratio (Current Asset/Current Liability)		3.03	5.26	7.04

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors	(Rs. In Millions)
Dues to Micro and Small Enterprises	2.442	0.000	0.000
Dues to creditors, other than Micro Enterprises and Small Enterprises	71.619	295.887	57.649
Total	74.061	295.887	57.649

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)	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	No
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	Yes

UNSECURED LOANS

Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Compulsory Convertible Debenture
4487646 (March 31, 2010 – 4487646) Series A compulsory convertible debenture of Rs.1000 each fully paid)	4487.646	4487.646
249120 (March 31, 2010 – 249120) Series A compulsory convertible debenture of Rs.1000 each fully paid)	249.120	249.120
2634032 (March 31, 2010 – NIL) Series A compulsory convertible debenture of Rs.1000 each fully paid)	7480.651	0.000
Total	12217.417	4736.766

BACKGROUND

A. NATURE OF BUSINESS:

Subject was incorporated as a private limited company in India on May 29, 2008. TDN has obtained an all-India Class-A ISP (Internet Service Provider) license granted by the Ministry of Communications, Government of India. The Company started its operations during April 2009.

Subject is engaged in the business of providing wireless internet services, thereby building the next generation wireless broadband services for home and enterprise customers in India. TDN would also be building a comprehensive services framework to deliver voice, video, IT applications and multimedia content services over any broadband or IP-centric network. Such a framework can be outsourced by service providers globally, who desire to offer next generation services to their customers.

During the year, the Company has won licenses in 5 of the 22 circles in the Broadband Wireless Access (BWA) spectrum auction conducted by the Ministry of Communications, Government of India through a combined bid of Rs10.582 millions.

B. ACQUISITION OF HCL INFINET LIMITED:

During the year the company has entered into a share purchase agreement with HCL Infosystems Limited to acquire its wholly owned subsidiary, HCL Infinet Limited. The company is in the process of obtaining requisite regulatory approvals. The transaction will be consummated after the necessary approvals.

C. PROJECT FINANCING / FUNDING UPDATE:

As at March 31, 2011, the Company has incurred loss of Rs 1.718 Millions (March 31, 2010 – Rs 0.854 Million) and has accumulated losses of Rs 2.641 Millions (March 31, 2010 – Rs 0.923 Million). The Company has net current assets of Rs 1.098 Millions (March 31, 2010 – Rs 2.130 Millions) and net worth of the Company (considering compulsorily convertible debentures) is eroded by 22% (March 31, 2010 – 19%). The Company is confident of arranging necessary funds through equity / borrowing / vendor financing as per the ongoing project requirements.

BUSINESS OPERATIONS

FINANCIAL PERFORMANCE

During the year, the Company has earned total income of Rs.922.560 Millions against Rs.173.366 millions in the previous year.

SERVICES

During the year, the Company was successful in expanding the operations to over 38 cities. With 42,000 Access Points, Company is now largest outdoor wi-fi network provider in the world.

There has been significant improvement in revenue and cash collections over the previous year. The active customer base increased from 70,283 to 216,351, during the year with an improvement in customer satisfaction measure as well. The Company has also succeeded to achieve wire-line equivalent consistent quality, speed and capacity.

During the year, the Company signed an alliance agreement with Aircel Limited – a national level 2G/3G cellular operator for upgrading its 2G and offloading its 3G data to the Company’s wi-fi network.

FUTURE PROSPECTS AND PROJECTS

The Company proposes to purchase entire shareholding of HCL Infinet Limited and has entered into a Share Purchase Agreement with the shareholders of HCL Infinet Limited for this purpose. HCL Infinet is the Networking Services arm of a HCL Infosystems Limited, a leading IT company and provides a complete range of network solutions. The company started its ISP/NLD operations in the year 2000. It has an all India license to operate as an Internet Service Provider (ISP), NLD (VPN), ITSP and Call Centre (OSP) Services Provider. HCL Infinet offers Managed Network Services to enterprises across the country. It operates through a Pan India POP footprint with direct presence in 300+ locations expanding to 850+ locations. With over 400 enterprise customers and presence in BFSI and Aviation segments, the company has a proven record of offering robust network connectivity solutions for critical applications like banking, reservation and ticketing. This will strengthen the Company’s foray into enterprise business.

CONTINGENT LIABILITIES:

Particulars	31.03.2011	31.03.2010
	(Rs. in Millions)
Claims against the Company not acknowledged as debts	0.797	0.000
Bank Guarantees	28.450	1741.915
TOTAL	29.247	1741.915

FIXED ASSETS:

Ø Office Building

Ø Lease hold Improvements

Ø Computers Hardware

Ø Computers Software

Ø Plant and Machinery

Ø Customer premises equipments

Ø Office Equipments

Ø Furniture and fixtures

PRESS RELEASE:

TIKONA DIGITAL TO INVEST RS 10000.000 MILLIONS IN NETWORKS

April 23, 2012

Tikona Digital Networks, which is to launch its data offerings on 4G/LTE (high-speed wireless communication for mobile phones and data terminals) this year, plans to spend Rs 10000.000 Millions in the next two years.

The company has WiMax licences to offer these services in five telecom circles. It won these in the 2010 licence auction, along with Infotel Broadband Services, taken over by Reliance Industries, as well as Qualcomm, Aircel and others. LTE (Long Term Evolution) speeds would be at least four to five times those of the 3G networks offered by multiple companies in the market. The LTE plaform will also be a pioneering technology in India; it is still in the evolution phase in many developed countries.

Tikona, which already offers Wi-Fi data connectivity to home consumers as well as small enterprises, hopes to combine both LTE and Wi-Fi in future plans. “We will converge both,” said Prakash Bajpai, chief executive officer.

The combined service will offer data connectivity through existing Wi-Fi networks indoors, such as homes and offices. When the same consumer moves outdoors, these services will be offered via LTE. “When at home, traffic will automatically get bypassed to Wi-Fi. When the devices are used outside, we can connect it to LTE. Both will offer high speed experience but this way, it will have a better cost distribution and this combination will be very powerful,” said Bajpai.

The number of devices used will be given connectivity and user authentication. Bajpai also does not rule out the possibility of offering voice along with data in the package. While voice can be offered over WiMax spectrum through voice operated internet protocol or VoIP, it requires a huge ecosystem of LTE devices, which is not widely available.

Bajpai did not comment on whether he would participate in the forthcoming re-auction of 2G spectrum.

The Wi-Fi and LTE combination, according to him, will also follow the usage patterns of consumers. “Around 80 per cent of data usage happens when you are stationary and indoors. You don't surf YouTube while walking on the road. You do it when you are settled in the home and in the office, right? That will be well taken care of by the Wi-Fi capacity,” said Bajpai.

Tikona also claims to have an advantage in terms of the circles in which it has LTE capacity. Except in Himachal Pradesh, the company offers its Wi-Fi services in the circles where it has WiMax spectrum. The others being Gujarat, Uttar Pradesh (East), Uttar Pradesh (West) and Rajasthan. “About 30 per cent of the population of India resides in the five circles, with 320 million population. Earlier, circles like UP and Bihar were considered low grade telecom circles, but not now. Today, they might have the lowest number of Internet customers, but they will have the highest potential for the Internet, as they are populous,” said Bajpai.

Tikona is also undertaking a second phase of expansion of its Wi-Fi network. It currently offers these services in 39 cities. It is about to start a second phase of expansion of its Wi-Fi services across the country.

“We would like to expand it to hundreds of cities but it is a matter of new capital,” said Bajpai. He also claimed they’d created value with 270,000 consumers and 10,000 small and medium business enterprises. It has also started trading sights on high-end enterprise consumers.

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. 57.78
UK Pound	1	Rs. 89.71
Euro	1	Rs. 76.24

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	1
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--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.