MIRA INFORM REPORT

Report Date :

02.10.2013

IDENTIFICATION DETAILS

Name :	INNOVATIVE TELECOM AND SOFTWARES PRIVATE LIMITED
Registered Office :	O-21-22, 1^st Floor, Kanaknidhi, Opposite Gandhi Smruti Bhavan, Timaliyawad, Nanpura, Surat – 395 001, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	27.03.2000
Com. Reg. No.:	04-037643
Capital Investment / Paid-up Capital :	Rs. 5.506 Millions
CIN No.: [Company Identification No.]	U32309GJ2000PTC037643
TAN No.: [Tax Deduction & Collection Account No.]	SRTI00037C
PAN No.: [Permanent Account No.]	AAACI8036R
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the business of trading of Computer, Peripherals, Components AMC, repairs etc.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 160000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. 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 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.

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DENIED BY

Name :	Ms. Aesha
Designation :	Accounts Department
Contact No.:	91-261-2461920
Date :	01.10.2013

LOCATIONS

Registered Office/ Showroom :	O/ 21-22, 1^st Floor, Kanaknidhi, Opposite Gandhi Smruti Bhavan, Timaliyawad, Nanpura, Surat – 395 001, Gujarat, India
Tel. No.:	91-261-2476474/2461920/2464926
Fax No.:	91-261-2461902
E-Mail :	mihir@innosoftel.com bhagatir@hotmail.com moin@innosoftel.com sales@innosoftel.com aisha@innovative.co.in mihir@innovative.co.in
Website :	http://www.innosoftel.com http://www.innovative.co.in
Area :	1500 sq. ft.
Location :	Owned
Branch Offices :	Located At: Mumbai Vapi Bharuch

DIRECTORS

As on 29.09.2012

Name :	Mr. Mihirbhai Bansidhar Chahwala
Designation :	Managing Director
Address :	A – 802, Smita Park, Sarela Wadi, Ghod Dod Road, Surat, Gujarat, India
Date of Birth/Age :	02.09.1959
Qualification :	BE
Date of Appointment :	27.03.2003
DIN No.:	01867580
Name :	Mr. Moinuddin Rashiuddin Shaikh
Designation :	Director
Address :	45, Ganga Sagar Society, Adajan Patia, Surat – 395 009, Gujarat, India
Date of Birth/Age :	17.11.1970
Qualification :	BE
Date of Appointment :	27.03.2000
DIN No.:	01749805
Name :	Mr. Azimuddin Shaikh
Designation :	Director
Address :	39, Ganganagar Society, Adajan Patia, Surat, Gujarat, India
Date of Birth/Age :	01.11.1977
Qualification :	Diploma in Computers
Date of Appointment :	31.03.2003
DIN No.:	01749753
Name :	Mrs. Sushmaben Mihirbhai Chahwala
Designation :	Director
Address :	A – 802, Smita Park, Sarela Wadi, Ghod Dod Road, Surat, Gujarat, India
Date of Birth/Age :	08.12.1961
Qualification :	B.Com
Date of Appointment :	27.03.2000
DIN No.:	01771783
Name :	Mr. Zakiahmed Rashiduddin Shaikh
Designation :	Director
Address :	39, Ganganagar Society, Adajan Patia, Surat, Gujarat, India
Date of Birth/Age :	15.01.1973
Qualification :	Diploma in Computers
Date of Appointment :	31.03.2003
DIN No.:	01842143

KEY EXECUTIVES

Name :	Ms. Aesha
Designation :	Accounts Department

MAJOR SHAREHOLDERS

As on 29.09.2012

Names of Shareholders	No. of Shares
Azimuddin Rashiduddin Shaikh	55055
Moinuddin Rashiduddin Shaikh	165165
Sushmaben Mihirbhai Chahwala	137637
Zakiahmed Rashiduddin Shaikh	55055
Mihirbhai Bansidhar Chahwala	137638
Total	550550

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of trading of Computer, Peripherals, Components AMC, repairs etc.

GENERAL INFORMATION

No. of Employees :

Information denied by management

Bankers :

• Yes Bank Limited, 9^th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai-400018, Maharashtra, India
• Axis Bank Limited
• Syndicate Bank
• HDFC Bank
• ICICI Bank

Facilities :

SECURED LOANS	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
Term Loans
From Banks	0.193	0.627
Total	0.193	0.627

Banking Relations :	--
Auditors :
Name :	Hiren M. Diwan and Company Chartered Accountants
Address :	43, River Palace, Wing A, Besides Wavdi Ovara, Nanpura, Surat–395001, Gujarat, India
Tel. No.:	91-261-2470102 / 2470103
Fax No.:	91-261-3931401
PAN No.:	AAZPD2794H
Control Exist :	M and M Enterprise

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs. 15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
550550	Equity Shares	Rs.10/- each	Rs. 5.506 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	5.506	5.506
(b) Reserves & Surplus	34.051	24.882
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	39.557	30.388
(3) Non-Current Liabilities
(a) long-term borrowings	0.193	0.627
(b) Deferred tax liabilities (Net)	0.782	0.549
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	0.975	1.176
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	11.191	29.891
(c) Other current liabilities	0.296	0.356
(d) Short-term provisions	4.134	5.348
Total Current Liabilities (4)	15.621	35.595
TOTAL	56.123	67.159
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	7.513	3.474
(ii) Intangible Assets	1.079	1.798
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	3.878	3.522
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	12.470	8.794
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	0.808	6.472
(c) Trade receivables	15.990	30.706
(d) Cash and cash equivalents	20.757	14.366
(e) Short-term loans and advances	6.128	6.821
(f) Other current assets	0.000	0.000
Total Current Assets	43.683	58.365
TOTAL	56.153	67.159

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.501
2] Share Application Money		0.000
3] Reserves & Surplus		19.711
4] (Accumulated Losses)		0.000
NETWORTH		20.212
LOAN FUNDS
1] Secured Loans		1.025
2] Unsecured Loans		0.000
TOTAL BORROWING		1.025
DEFERRED TAX LIABILITIES		0.491
TOTAL		21.728
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.060
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6.862
	Sundry Debtors	70.926
	Cash & Bank Balances	3.548
	Other Current Assets	0.000
	Loans & Advances	5.988
Total Current Assets		87.324
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	67.741
	Other Current Liabilities	0.184
	Provisions	2.731
Total Current Liabilities		70.656
Net Current Assets		16.668
MISCELLANEOUS EXPENSES		0.000
TOTAL		21.728

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	193.492	278.809
		Other Income	0.280	1.461
		TOTAL (A)	193.772	280.270	204.749
Less	EXPENSES
		Cost of Materials Consumed	151.767	229.034	193.550
		Employees Benefits Expenses	12.965	18.818
		Other Expenses	13.769	14.871
		Exceptional Items	0.027	0.091
		TOTAL (B)	178.528	262.814	193.550
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		15.244	17.456	(Including Financial
					Expenses)
Less	FINANCIAL EXPENSES (D)		0.043	0.077
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		15.201	17.379	11.199
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.636	1.897	0.945
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		13.565	15.482	10.254
Less	TAX (H)		4.396	5.307	3.113
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		9.169	10.175	7.141
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	12.670
Less	APPROPRIATIONS
		Dividend	NA	NA	0.100
	BALANCE CARRIED TO THE B/S		NA	NA	19.711
	Earnings Per Share (Rs.)		17.01	18.48	140.69

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.73	3.63	3.49
Net Profit Margin (PBT/Sales)	(%)	7.01	5.55	NA
Return on Total Assets (PBT/Total Assets}	(%)	28.52	25.02	11.10
Return on Investment (ROI) (PBT/Networth)		0.34	0.51	0.51
Debt Equity Ratio (Total Debt /Networth)		0.00	0.02	0.05
Current Ratio (Current Asset/Current Liability)		0.80	0.89	1.24

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	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]	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

NOTE: CURRENT MATURITY OF LONG TERM DEDT DETAIL NOT AVAILABLE

INDEX OF CHARGE:

Sr .No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10194159	20/12/2011 *	25,000,000.00	YES BANK LIMITED	9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA, DR. ANNIE BESANT ROAD, WORLI, MUMBAI, Maharashtra - 400018, INDIA	B28166072

* Date of modification charge

CORPORATE INFORMATION:

Subject is engaged in the business of trading of Computer, Peripherals, Components AMC, repairs etc having its registered office at O/ 21-22, 1^st Floor, Kanaknidhi, Opposite Gandhi Smruti Bhavan, Timaliyawad, Nanpura, Surat – 395 001, Gujarat, India

BUSINESS AFFAIRS

The Board of Directors presents the above reported results of the company for the year under consideration for the kind consideration of the Hon’ble members. The Board hopes that the Hon’ble members would find the scale of operation during the year under consideration to be satisfactory. The Hon’ble members are requested to appreciate that the profitability vis-à-vis the volume of business has been maintained at the most satisfactory level during the current year too in comparison with the preceding year. the board takes this opportunity to inform the Hon’ble members that the company is hoping to obtain a big commercial assignment as at present from a government authority which will not only result in enhanced profitability for the company but will also be able to meet the company’s obligation towards the society at large to a substantial extent.

The Hon’ble members are requested to approve the above results.

FIXED ASSETS:

• Furniture and Fixtures
• Telephone
• Air Conditioner
• Calculator
• Cellular Phone
• Computer Software
• Computers
• Vehicles
• Electrical Fittings
• Motor Pump
• Fax Machine
• EPABX Systems
• Fan
• Water Filter
• Office Renovation

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. 62.35
UK Pound	1	Rs. 101.20
Euro	1	Rs. 84.54

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	VNT

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	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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.