MIRA INFORM REPORT

Report Date :

24.05.2013

IDENTIFICATION DETAILS

Name :	INSIGHT BUSINESS MACHINES PRIVATE LIMITED
Registered Office :	B-210, Raj Ratan Industrial Estate, Beside American Spring Works, Ramchandra Lane Extension, Malad (West), Mumbai – 400064, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	11.01.1996
Com. Reg. No.:	11-096148
Capital Investment / Paid-up Capital :	Rs.2.466 Millions
CIN No.: [Company Identification No.]	U30000MH1996PTC096148
TAN No.: [Tax Deduction & Collection Account No.]	MUMI04082B
Legal Form :	Private Limited Liability Company
Line of Business :	Trader, Dealer and Distributor of Computer Peripherals.
No. of Employees :	120 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 150000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears some dip in the sales turnover and profits during 2012. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal 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.

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. Neel Shashikant Shah
Designation :	Director
Contact No.:	91-9820088201
Date :	21.05.2013

LOCATIONS

Registered / Head Office :	B-210, Raj Ratan Industrial Estate, Beside American Spring Works, Ramchandra Lane Extension, Malad (West), Mumbai – 400064, Maharashtra, India
Tel. No.:	91-22-67262100
Mobile No.:	91-9967216296 (Ms. Pillai)
Fax No.:	91-22-28808034
E-Mail :	info@insightindia.com neel@insightindia.com pvibhakar@insightindia.com
Website :	http://www.insightindia.com
Area :	1500 sq. ft.
Location :	Owned
Branch Office :	Located At: Navi Mumbai Baroda Hyderabad Rajasthan Delhi Lucknow Bangalore Uttarakhand Madhya Pradesh Kolkata
Service Centers :	Located At: North Delhi Chandigarh Mandi Lucknow Varanasi Jaipur Indore Sonepat Karnal Ludhiana Haridwar Haldwani Raipur East Kolkata Patna Samastipur South Bangalore Chennai Hyderabad Bidar Goa Belgaum West Mumbai Lonawala Pune Nagpur Baroda Silvassa Ahmedabad Surat Rajkot

DIRECTORS

As on: 28.09.2012

Name :	Mr. Neel Shashikant Shah
Designation :	Director
Address :	Satyam, Plot No. 5, Evershine Nagar, Malad (West), Mumbai-400064, Maharashtra, India
Date of Birth/Age :	09.12.1969
Qualification :	Graduate
Date of Appointment :	11.01.1996
DIN No.:	00870661
Name :	Mr. Piyush Vipinchandra Vibhakar
Designation :	Director
Address :	A-4, Ajit Nagar, S. V. Road, Malad (West), Mumbai-400064, Maharashtra, India
Date of Birth/Age :	13.08.1972
Qualification :	Graduate
Date of Appointment :	11.01.1996
DIN No.:	00864719

MAJOR SHAREHOLDERS

As on: 28.09.2012

Names of Shareholders	No. of Shares
Neel Shashikant Shah	47645
Piyush Vipinchandra Vibhakar	55685
Neel Shashikant Shah HUF	56000
Piyush Vipinchandra Vibhakar HUF	52000
Amisha Neel Shah	18900
Kajal Piyush Vibhakar	16400
TOTAL	246630

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader, Dealer and Distributor of Computer Peripherals.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

120 (Approximately)

Bankers :

Development Credit Bank Limited, 601 and 602, Peninsula Business Park, 6th Floor, Tower A, Senapati Bapat Marg, Lower Parel,, Mumbai - 400013, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2012

As on

31.03.2011

LONG TERM BORROWINGS

Term Loan

4.528

7.339

Total

4.528

7.339

SECURED TERM LOAN-

(Rs. in Millions)

Particulars	As at 31 march 2012
	Current	Non-current
a) Development Credit Bank – TL	2.000	4.500
b) HDFC Vehicle Loan	0.311	0.028
Total	2.311	4.528

Details of terms of Repayment for the other long term borrowing and security provided in respect of secured other long term borrowing:

(Rs. in Millions)

Particulars	As at 31 march 2012
	Secured
Term loans from banks
Development Credit Bank – TL
Term loan for office 208/209	4.500
HDFC Bank Vehicle Loan	0.028
Total term loans from bank	4.528

Note:

a) Working Capital facility is secured against mortgage of gala no 210 and 211of Raj Ratna Indusrial Estate, Malad (West), Mumbai – 4000064 and hypothetication of Stock and Book Debts.

b) Term Loan of Rs.10.000 Millions is secured against Equitable Mortgage on favour of Development Credit Bank against Gala No.210-211 of Raj Ratan Industrial Estate, Malad (West), Mumbai – 4000064.

c) Term Loans, working facility and Bank Guarantee issued by Development Credit Bank, Malad are also covered by personal Guarantee from Directors.

Terms of Repayment

(Rs. in Millions)

Description of Loan/ Security	Rate of Interest	2012-13	2013-14	2014-15	2015-16
DCB Term Loan For Office 208/209	13.25%	2.000	2.000	2.000	0.500
(Secured Against Gala No.208-209)
HDFC Bank Vehicle Loan		0.311	0.028	0.000	0.000
(Secured Against : Toyota Corolla)
Total Repayment		2.311	2.028	2.000	0.500

Banking Relations :	--
Auditors :
Name :	Lad and Nagaral Associates [Pradip N. Gohil] Chartered Accountants
Address :	159/4, Smruti, Jawahar Nagar, Road No. 2, Goregaon (West), Mumbai – 400062, Maharashtra, India
Tel. No.:	91-22-28767488/ 28737904
Fax No.:	91-22-28788528
PAN No.:	ACIPG0545J

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
246630	Equity Shares	Rs.10/- each	Rs.2.466 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		2.466	2.466	2.466
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		35.221	30.245	23.928
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		37.687	32.711	26.394
LOAN FUNDS
1] Secured Loans		4.528	7.339	15.785
2] Unsecured Loans		1.014	0.985	0.906
TOTAL BORROWING		5.542	8.324	16.691
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		43.229	41.035	43.085
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		18.570	3.521	4.312
Capital work-in-progress		1.683	13.056	0.000
INVESTMENT		0.180	0.181	0.181
DEFERREX TAX ASSETS		0.249	0.823	0.404
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	15.617	20.013	16.318
	Sundry Debtors	90.309	76.074	66.161
	Cash & Bank Balances	3.966	10.301	8.433
	Other Current Assets	0.111	1.314	0.000
	Loans & Advances	11.063	6.717	8.746
Total Current Assets		121.066	114.419	99.658
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	78.764	56.099	45.547
	Other Current Liabilities	17.287	33.063	3.802
	Provisions	2.468	1.803	12.121
Total Current Liabilities		98.519	90.965	61.470
Net Current Assets		22.547	23.454	38.188
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		43.229	41.035	43.085

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Sales	385.007	479.176	460.849
		Other Operating Income	0.132	0.231
		TOTAL (A)	385.139	479.407	460.849
			Due to Recession
Less	EXPENSES
		Operating Expenses	373.786	468.785	449.550
		TOTAL (B)	373.786	468.785	449.550
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		11.353	10.622	11.299
Less	FINANCIAL EXPENSES (D)		1.553	1.038	0.760
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.800	9.584	10.539
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.410	0.855	1.091
	PROFIT BEFORE TAX (E-F) (G)		8.390	8.729	9.448
Less	TAX (H)		3.407	2.412	3.342
	PROFIT AFTER TAX (G-H) (I)		4.983	6.317	6.106
	Earnings Per Share (Rs.)		2.021	2.562	3.060

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.29	1.32	1.32
Net Profit Margin (PBT/Sales)	(%)	2.18	1.82	NA
Return on Total Assets (PBT/Total Assets}	(%)	6.01	7.40	9.09
Return on Investment (ROI) (PBT/Networth)		0.22	0.27	0.35
Debt Equity Ratio (Total Debt /Networth)		0.15	0.25	2.96
Current Ratio (Current Asset/Current Liability)		1.23	1.26	1.62

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

PARTICULARS	31.03.2012	31.03.2011	31.03.2010
Trade Payables	78.764	56.099	45.547
Total	78.764	56.099	45.547

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	Yes
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	No

UNSECURED LOAN:

(Rs. in Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
Loans and advances from related parties	0.989	0.955
Other loans and advances	0.025	0.030
Total	1.014	0.985

(Rs. in Millions)

Term loans from other parties
Director
Neel Shah		0.128
Piyush Vibhakar		0.125
	Interest %
Shareholders
Amisha Shah		0.108
Kajal Vibhakar		0.180
Neel Shah HUF	15%	0.193
Piyush Vibhakar HUF	15%	0.255
		0.736
Total – Term Loans from other parties		0.989

BANKERS CHARGES REPORT AS PER REGISTRY:

Corporate identity number of the company	U30000MH1996PTC096148
Name of the company	INSIGHT BUSINESS MACHINES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	B-210 Raj Ratan Industrial Estate beside American Springs Works Malad (West), Mumbai – 400064, Maharashtra, India neel@insightindia.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10067980
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	Development Credit Bank Limited, 601 and 602, Peninsula Business Park, 6th Floor, Tower A, Senapati Bapat Marg, Lower Parel,, Mumbai - 400013, Maharashtra, India CIN No.: L99999MH1995PLC089008 tanjore.natarajan@dcbbank.com
Nature of instrument creating charge	Deed of Hypothecation Dated 12.12.2012 Working Capital Agreement Dated 12.12.2012 Letter of Recording for Collateral Equitable Mortgage Dated 12.12.2012 (All agreements constituting a single modification) Nature of Facility : Cash Credit : Rs.35.000 Millions BG/LC : Rs.15.000 Millions FC : Rs. 1.500 Millions Total Rs.51.500 Millions
Date of instrument Creating the charge	12.12.2012
Amount secured by the charge	Rs.51.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit- Base Rate+ 2.50% i. e. 13%; BG/LC( intechangeable Limit)- As per Card Rate and Base Rate (Current DCB BR is 10.50%)+12.50%, i. e. 23% p. a. with monthly rests from the date of devolvement. Terms of Repayment Cash Credit:- On Demand / Annual Review. Letter of Credit:- On Demand / not over 120 days. Margin Cash Credit :- 30% of paid up stock and / or Book Debts not over 90 days Letter of Credit :- Cash margin in the Form of TDR- 10% Extent and Operation of the charge The Charge is Operative and modified to Rs.51.500 Millions. Others N.A.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	The whole of the moveable properties of the borrower including its moveable plant and machinery, machinery spares, tools and accessories, furniture and fixtures, stocks in trade, finished goods, goods in progress, raw materials, book debts and other movables, both present and future whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about the borrowers factories, premises and godowns or wherever else the same may be or be held by any party to the order of disposition of the borrower or in the course of transit or on high seas or on order or delivery, howsoever and where so ever in the possession of the Borrower and either by way of substitution or addition, actionable claims, amounts due and receivable under any contract or otherwise and secured by Equitable mortgage of property at :- 1) Gala no. 208 situated on 2nd Floor, Raj Ratna Industrial Estate, Malad (west), Mumbai – 400064, Maharashtra, India 2) Gala no. 209 situated on 2nd Floor, Raj Ratna Industrial Estate, Malad (west),Mumbai - 400064. Maharashtra, India 3) Gala no. 210 situated on 2nd Floor, Raj Ratna Industrial Estate, Malad (west), Mumbai – 400064, Maharashtra, India 4) Gala No. 211 situated on 2nd Floor, Raj Ratna Industrial Estate, Malad (west),Mumbai – 400064, Maharashtra, India
Date of instrument modifying the charge	28.01.2012
Particulars of the present modification	By this Modification the limit of the charge is increased from Rs.31.000 Millions to Rs.51.500 Millions by additional credit facility of Rs.20.500 Millions (Cash Credit : Rs.15.000 Millions + BG : Rs.5.000 Millions + FC : Rs.0.500 Million).The total limit of Rs.51.500 Millions further collaterally secured by Equitable Mortgage of properties i.e. Gala no. 208, 209, 210 & 211 situated on 2nd Floor, Raj Ratna Industrial Estate, Malad (west), Mumbai - 400064. Other terms and conditions remain unchanged.

FIXED ASSETS:

• Land and Building
• Computer
• Furniture and Fixtures
• Office Equipments
• Vehicles

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.55.99
UK Pound	1	Rs.84.19
Euro	1	Rs.71.86

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.