MIRA INFORM REPORT

Report Date :

16.05.2013

IDENTIFICATION DETAILS

Name :	WYSETEK SYSTEMS TECHNOLOGISTS PRIVATE LIMITED
Registered Office :	6-7, Udyog Mandir No. 1, Ground Floor, Bhagoji Keer, Mahim, Mumbai – 400 016, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	28.08.1996
Com. Reg. No.:	11-102214
Capital Investment / Paid-up Capital :	Rs. 2.499 Millions
CIN No.: [Company Identification No.]	U72900MH1996PTC102214
Legal Form :	Private Limited Liability Company
Line of Business :	Providing Networking Solution and trading of IT Products of Different Brands.
No. of Employees :	80 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 250000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears dip in the turnover and profitability during 2012. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Bank Loan = BB+
Rating Explanation	Moderate risk of default
Date	13.02.2013

Rating Agency Name	CRISIL
Rating	Short Term Bank Loan = A4+
Rating Explanation	Moderate degree of safety and very high credit
Date	13.02.2013

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. Ajit Kade
Designation :	Accounts Executive
Contact No.:	91-22-66662727
Date :	14.05.2013

LOCATIONS

Registered Office / Head Office :	6-7, Udyog Mandir No. 1, Ground Floor, Bhagoji Keer, Mahim, Mumbai – 400 016, Maharashtra
Tel. No.:	91 22 66662727 / 43594900 / 24440777
Fax No.:	91-22-66662747
E-Mail :	anil@wysetek.com rajesh@wysetek.com
Website :	http://www.wysetek.com
Location :	Owned
Branch Office :	Located At : Bangalore Hyderabad Chennai Delhi Faridabad Noida Kolkata Goa Ahmedabad Indore Pune

DIRECTORS

As on 29.09.2012

Name :	Mr. Cherian Kunnumkadavadakathil Thomas
Designation :	Director
Address :	Raheja Sherwood, C-Wing, 503 and 504, Near Western Highway, Goregaon (East), Mumbai-400063, Maharashtra,India
Date of Birth/Age :	05.01.1964
Qualification :	B. Sc
Date of Appointment :	28.08.1969
DIN No.:	02779692
Name :	Mr. Rajesh Madhav Mathkar
Designation :	Director
Address :	B-333, Daaffodil, Mahindra Garden, S. V. Road, Goregaon (West), Mumbai-400102, Maharashtra, India
Date of Birth/Age :	13.02.1967
Qualification :	Engineering
Date of Appointment :	28.08.1969
DIN No.:	00695089

KEY EXECUTIVES

Name :	Mr. Ajit Kade
Designation :	Accounts Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Thomas Cherian	124950
Rajesh Mathkar	124950
Total	249900

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Providing Networking Solution and trading of IT Products of Different Brands.

Products / Services :

· IBM Servers

· Lenovo Desktops and Notebooks

· Microsoft Operating System

· Tandberg Data Storage

· HP Peripherals

· Cisco and D-Link Networking

· APC and Emerson UPS

Generic name of principle product of the company

Product Description	Item Code (ITC Code No.)
Computer systems including personal computer	847150

Terms :

Selling :

Cash / Credit

Purchasing :

Cash / Credit

GENERAL INFORMATION

Customers :

Retailers and End Users

No. of Employees :

80 (Approximately)

Bankers :

Indian Bank, Mahim Branch, 1-1A Raj Mahal, MMC Road, Mahim (West), Mumbai – 400016, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2012

As on

31.03.2011

Term loans

Loan from Banks

0.212

0.388

Loan from Other Parties

3.913

0.000

Less: Due within 12 months

(0.823)

(0.175)

From Banks (Cash Credit Facility)

32.603

31.860

Total

35.905

32.073

The Term Loans are secured against the vehicles for which they were procured. The 'Loan from Bank' is repayable in 36 installments of Rs. 17,307 each. The 'Loan from Other Parties' is repayable in 60 installments of Rs 87,136 each.

Nature of Security	Description	Nature of Charge
Primary	Hypothecation of Trade Receivables and Inventory	Exclusive
Collateral	Business Premises owned by the company	Exclusive

Banking Relations :	--
Auditors :
Name :	GPS and Associates Chartered Accountants
Address :	A-1, Sindhi Niwas, Sitladevi Temple Road, Mahim (West), Mumbai – 400 016, Maharashtra, India
Tel. No.:	91-22-2446859 / 24446688 / 24441348 / 24440777
Fax No.:	91-22-24466455
PAN.:	AADFG4422H

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs. 10/- each	Rs. 5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
249900	Equity Shares	Rs. 10/- each	Rs. 2.499 Millions

Terms/ rights attached to equity shares

The company has only one class of equity shares having par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. No dividend has been proposed by the Board of Directors during the year.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Particulars of shareholders holding more than 5% shares

Name of Shareholder	Number of shares	Percentage of shareholding
Mr. Cherian Thomas	1,24,950	50%
Mr. Rajesh Mathkar	1,24,950	50%

As per of the company, including its register of shareholders / members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

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		2.499	2.499	2.499
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		61.525	54.161	42.176
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		64.024	56.660	44.675
LOAN FUNDS
1] Secured Loans		35.905	32.073	46.775
2] Unsecured Loans		0.353	2.240	3.180
TOTAL BORROWING		36.258	34.313	49.955
DEFERRED TAX LIABILITIES		0.839	1.179	0.975
TOTAL		101.121	92.152	95.605
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		29.605	31.652	23.064
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		5.477	8.184	5.930
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	14.119	6.444	4.433
	Sundry Debtors	432.656	269.219	110.223
	Cash & Bank Balances	8.681	5.443	6.835
	Other Current Assets	0.060	0.075	0.000
		0.482	0.497	0.000
	Loans & Advances	16.865	2.796	2.241
Total Current Assets		472.863	284.474	123.732
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	392.844	217.332	52.725
	Other Current Liabilities	11.231	13.772	3.002
	Provisions	2.749	1.054	1.394
Total Current Liabilities		406.824	232.158	57.121
Net Current Assets		66.039	52.316	66.611
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		101.121	92.152	95.605

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	647.083	948.988	587.282
		Commission Income	0.000	0.000	9.440
		Service Income	0.000	0.000	36.036
		Other Income	2.728	2.437	2.313
		TOTAL (A)	649.811	951.425	635.071
			Due to market slowdown
Less	EXPENSES
		Purchase of Stock-in-Trade	563.771	845.478
		Changes in inventories of finished goods	(7.675)	(2.011)	613.212
		Other direct expenses	3.842	6.970
		Employee benefit expense	58.310	54.908
		Other expenses	15.190	20.566
		TOTAL (B)	633.438	925.911	613.212
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		16.373	25.514	21.859
Less	FINANCIAL EXPENSES (D)		2.741	4.204	2.763
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		13.632	21.310	19.096
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.549	3.426	2..928
	PROFIT BEFORE TAX (E-F) (G)		10.083	17.884	16.168
Less	TAX (H)		2.719	5.899	5.560
	PROFIT AFTER TAX (G-H) (I)		7.364	11.985	10.608
	Earnings Per Share (Rs.)		29.47	47.96	42.45

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.13	1.25	1.67
Net Profit Margin (PBT/Sales)	(%)	1.56	1.88	2.75
Return on Total Assets (PBT/Total Assets}	(%)	2.01	5.66	11.01
Return on Investment (ROI) (PBT/Networth)		0.16	0.32	0.36
Debt Equity Ratio (Total Debt /Networth)		0.57	0.61	1.12
Current Ratio (Current Asset/Current Liability)		1.16	1.23	2.17

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Rs. In Millions

Particular	31.03.2012	31.03.2011	31.03.2010
Dues for Goods	381.403	204.426	52.725
Dues for Services	11.441	12.906
Total	392.844	217.332	52.725

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%	Yes
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	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	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	Yes

BACKGROUND

Founded in 1990, Subject is an established IT System Integration organization. Its primary business is Sales and Services of IT Products and Solutions.

It has a vast customer base in both SME as well as Enterprise Sector.

Partnership with global leaders from IT Industry as well as all India Service Network is the key strategical strength.

The Head Office is located at Mahim, Mumbai, with Branch offices in Bangalore, Hyderabad, Chennai, Delhi, Faridabad, Noida, Kolkata, Goa, Ahmedabad, Indore and Pune

REVIEW OF OPERATIONS

The Company is engaged in I.T. Services; their major force is on providing I.T Solutions to their clients. We are pleased to inform that as on 31st March 2012, they had total staff strength of 210 people, with operations in Mumbai, Bangalore, Hyderabad, Chennai, New Delhi, Faridabad, Indore, Noida, Kolkata, Goa, Ahmedabad, Indore and Pune.

There has been a decrease in Sales by 33.01% from Rs. 903.600 Millions in the previous year to Rs. 605.300 Millions in the current year. The Commission income has decreased from Rs. 4.617 Millions in FY 2010-11 to Rs. 1.993 Millions in FY 2011-12. Service income during the year decreased from Rs. 9.789 Millions in FY 2010-11 to Rs. 8.509 Millions. A major challenge faced in the current year was reversal of rebate on purchase which was approved and paid by IBM for FY 2010-11; however, subsequently IBM decided to reverse this rebate. Due to this the profitability has declined during the year. Otherwise, the year was better as compared to previous year.

The economic conditions were quite challenging. The Directors and the staff worked hard to create opportunities and maintain the profitability.

The directors are constantly on the lookout for new opportunities and avenues for growth.

CONTINGENT LIABILITIES

Rs. In Millions

Particular	31.03.2012	31.03.2011
Bank guarantees issued on behalf of the company to customers	0.508	2.441
Bank guarantees issued on behalf of the company to sales tax authorities	0.200	0.510

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2012	As on 31.03.2011
From Directors	0.353	2.240
Total	0.353	2.240

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U72900MH1996PTC102214
Name of the company	WYSETEK SYSTEMS TECHNOLOGISTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	6-7, Udyog Mandir No. 1, Ground Floor, Bhagoji Keer, Mahim, Mumbai – 400 016, Maharashtra, India anil@wysetek.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90157737
Type of charge	Immovable property Any interest in immovable property
Particular of charge holder	Indian Bank, Mahim Branch, 542 Raj Mahal, M M Chotani Road, Mahim West, Mumbai – 400 016, Maharashtra, India E-mail: adlalwani@rediffmal.com
Nature of instrument creating charge	a) Letter from Party to Bank Confirming Extension of Equitable Mortgage (D 33) for Rs.35.000 Millions. b) Letter from Bank Dated 28.03.2012.
Date of instrument Creating the charge	28.03.2012
Amount secured by the charge	Rs.35.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Secured OD: Base rate + 2.00% p.a. + 0.50% p.a. (Presently 13.25% p.a.). SL: Inland BG / Inland LC: As per HO Guidelines. SL: IBN: BR + 2.00% p.a. + 0.50% p.a. (Presently 13.25% p.a.) Terms of Repayment Repayable on Demand. Margin Secured OD : 25% on Stocks and Book debts SL-Inland Bank Gtee. : 25% on Money Gtee. : 10% on Perf. Gtee. Inland LC / IBN : 10% Extent and Operation of the charge The charge is to operate as security, by way of first exclusive charge, for the due repayment of the credit facility of Rs.35.000 Millions together with interests, additional interest, costs, charges, expenses and all other moneys payable by the Company to the Bank from time to time in terms of sanction Others Facility Existing Revised Limits (Rs. in Millions) ------------------- ---------- ----------- Secured OD 35.000 350.00 SL-Inland BG (1.000) (2.000) -Inland LC NIL (1.500) -IBN NIL (1.500) Term Loan-I 7.500 NIL Term Loan-II 5.700 NIL
Short particulars of the property or asset(s) charged (including complete address and location of the property)	A) Extension of equitable mortgage on the following immovable properties of the Company : 1) Flat No.404, III Floor, Oxford House, 15, Rustoum Bagh, Main Road of Airport Road, Bangalore - 560 017. 2) Gala No.6 and 7, Udyog Mandir, 7-C, Bhagoji Kheer Marg, Mahim (West), Mumbai and B) Creation of equitable mortgage on the following immovable property of the Company : 3) Commercial premises at Unit No.201, II Floor, Regent Plaza bearing S.No.5/1A/1, Village Baner, Pune - 411016.
Date of instrument modifying the charge	12.03.2010
Particulars of the present modification	The charge is reduced from Rs.48.200 Millions to Rs.35.000 Millions as detailed below : a) Sec. OD limit of Rs.350 remains unchanged. b) SL of BG increased from Rs.1.000 Millions to Rs.2.000 Millions. c) SL of LC and IBN of Rs.1.000 Millions each sanctioned. d) Term Loans of Rs.7.500 Millions and Rs.5.700 Millions are closed. Further, 1. EM on Unit No.6 and 7, Udyog Mandir, 7C, B.K. Marg, Mahim, Mumbai and Flat No. 404, Oxford House, Airport Road Bangalore is extended. 2. EM on Commercial premises at Unit No.201, S.No.5/1A/1, Village Baner, Pune is created.

FIXED ASSETS

• Furniture and Fixture
• Electrical Installation
• Office Equipment
• Mobile
• Computers
• Motor Car

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 records 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.54.78
UK Pound	1	Rs.83.38
Euro	1	Rs.70.72

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	5
--CREDIT LINES	1~10	3
--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		31

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.