MIRA INFORM REPORT

Report Date :

17.09.2013

IDENTIFICATION DETAILS

Name :	CYBERSTAR INFOCOM PRIVATE LIMITED (w.e.f. 06.09.2007)
Formerly Known As :	CYBERSTAR INFOCOM LIMITED
Registered Office :	Surya Chambers, 1^st Floor, South Block, 124, Airport Road, Murugesh Palya, Bangalore – 560 017, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	09.11.1999
Com. Reg. No.:	08-038995
Capital Investment / Paid-up Capital :	Rs.71.082 Millions
CIN No.: [Company Identification No.]	U72200KA1999PTC038995
TAN No.: [Tax Deduction & Collection Account No.]	BLRC01703C
PAN No.: [Permanent Account No.]	AABCC2931J
Legal Form :	Private Limited Liability Company
Line of Business :	Dealer and Distributor of IT peripherals, software and consumables.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 540000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profitability of the company appears to be low in 2012. However, trade relation are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

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 PARTED BY (GENERAL DETAILS)

Name :	Mr. Ragamayi
Designation :	Accounts Department
Contact No.:	91-80-41266808
Date :	13.09.2013

LOCATIONS

Registered Office/ Corporate Office :	Surya Chambers, 1^st Floor, South Block, 124, Airport Road, Murugesh Palya, Bangalore – 560017, Karnataka, India
Tel. No.:	91-80-41266808
Fax No.:	91-80-41266801
E-Mail :	info@cuberstarindia.com prakash.reddy@cyberstarindia.com ragamayi@cyberstarindia.com
Website :	www.cyberstarindia.com
Area :	4500 sq. ft.
Location :	Owned
Zonal Office 1 :	14, Sonal Society, Sonal Char Rasta, Opposite Maruti Complex, Gurukul Road, Memnagar, Ahmedabad – 380052, Gujarat, India
Tel. No.:	91-79-40046990
E-Mail :	ahmedabad@cyberstarindia.com
Zonal Office :	Also located at: · New Delhi · Bangalore · Chennai · Kochi · Coimbatore · Hyderabad · Bhubaneshwar · Guwahati · Kolkata · Mumbai · Pune

DIRECTORS

As on 29.09.2012

Name :

Mr. Chinnareddy Prakash Reddy

Designation :

Director

Address :

Sri Thimmaraya Swami Nilayam, 4th Corss, Kanaka Vinayaka Street, Shanthi Layout, R.M. Nagar, Bangalore – 560 016, Karnataka, India

Date of Birth/Age :

26.06.1961

Qualification :

Chartered Accountant

Date of Appointment :

22.05.2006

DIN No.:

00467352

Name :

Mrs. Mamta Rathi

Designation :

Director

Address :

1^st Floor, South Block, No.124, Airport Road, Murugeshpalya, Bangalore – 560017, Karnataka, India

Date of Birth/Age :

20.04.1968

Qualification :

ME (Electronics and Computers)

Date of Appointment :

29.12.2004

DIN No.:

02032648

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1999PLC102331	CYBERSTAR INFOCOM LIMITED	Director	29/12/2004	29/12/2004	-	Dormant	NO
2	U72200KA1999PTC038995	CYBERSTAR INFOCOM PRIVATE LIMITED	Director	29/12/2004	29/12/2004	-	Active	NO

Name :

Mr. Rajkumar Rathi

Designation :

Director

Address :

A-201, Prestige Ozone, Whitefield, Bangalore – 560066, Karntaka, India

Date of Birth/Age :

10.05.1965

Qualification :

MBA, BE

Date of Appointment :

29.12.2004

DIN No.:

02032716

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1999PLC102331	CYBERSTAR INFOCOM LIMITED	Director	29/12/2004	29/12/2004	-	Dormant	NO
2	U72200KA1999PTC038995	CYBERSTAR INFOCOM PRIVATE LIMITED	Director	29/12/2004	29/12/2004	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Ragamayi
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Rajkumar Rathi	7099270
Mamata Rathi	8955
Total	7108225

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Dealer and Distributor of IT peripherals, software and consumables.

Products :

Item Code No. (ITC Code)	Product Description
99611841	Distribution of Computer Peripherals and Networking

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

100 (Approximately)

Bankers :

· Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227, D, Nariman Point, Mumbai – 400021, Maharashtra, India

· Standard Chartered Bank, Vaishnavi Serenity, 112, Serenity, Koramangala Industrial Area, 5^th Block, Koramangala, Bangalore – 560095, Karnataka, India

Tel. No.: 91-80-39404444

Facilities :

SECURED LOANS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Long-term maturities of finance lease Obligations (Secured by personal guarantee and hypothecation of Mercedes Benz car in favour of Kotak Mahindra Prime Limited)	1.844	2.946
Total	1.844	2.946

Banking Relations :	--
Auditors :
Name :	Ranga Rao and Associates Chartered Accountants
Address :	39, 6^th Cross Wilson Garden, Bangalore- 560027, Karnataka, India
PAN No. :	ABGPR1561G

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7108225	Equity Shares	Rs.10/- each	Rs.71.082 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	71.082	71.082
(b) Reserves & Surplus	64.170	63.748
(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)	135.252	134.830
(3) Non-Current Liabilities
(a) long-term borrowings	1.844	2.946
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	23.877	23.262
Total Non-current Liabilities (3)	25.721	26.208
(4) Current Liabilities
(a) Short term borrowings	77.030	49.005
(b) Trade payables	416.197	373.239
(c) Other current liabilities	12.056	14.365
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	505.283	436.609
TOTAL	666.256	597.647
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	5.813	7.306
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.146	0.243
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	1.352	1.244
(d) Long-term Loan and Advances	67.220	59.623
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	74.531	68.416
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	87.601	198.775
(c) Trade receivables	471.588	314.322
(d) Cash and cash equivalents	32.536	16.134
(e) Short-term loans and advances	0.000	0.000
(f) Other current assets	0.000	0.000
Total Current Assets	591.725	529.231
TOTAL	666.256	597.647

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.794
2] Share Application Money		0.000
3] Reserves & Surplus		121.605
4] (Accumulated Losses)		0.000
NETWORTH		122.399
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		0.000
TOTAL		122.399
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.800
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	110.654
	Sundry Debtors	205.951
	Cash & Bank Balances	32.112
	Other Current Assets	0.000
	Loans & Advances	63.471
Total Current Assets		412.188
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	230.210
	Other Current Liabilities	42.419
	Provisions	20.960
Total Current Liabilities		293.589
Net Current Assets		118.599
MISCELLANEOUS EXPENSES		0.000
TOTAL		122.399

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL	2734.675	2143.290	1158.173
Less	EXPENSES
		TOTAL	2734.028	2122.598	1122.775
	PROFIT/ (LOSS) BEFORE TAX		0.647	20.692	35.398
Less	TAX		0.226	8.260	12.701
	PROFIT/ (LOSS) AFTER TAX		0.421	12.432	22.697
	IMPORTS
		Trading Goods	528.900	902.506	662.730
	TOTAL IMPORTS		528.900	902.506	662.730
	Earnings/ (Loss) Per Share (Rs.)		0.06	1.75	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.02	0.58	1.96
Return on Total Assets (PBT/Total Assets}	(%)	0.10	3.47	8.51
Return on Investment (ROI) (PBT/Networth)		0.00	0.15	0.29
Debt Equity Ratio (Total Debt/Networth)		0.58	0.39	0.00
Current Ratio (Current Asset/Current Liability)		1.17	1.21	1.40

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	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%	-----
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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10303253	16/04/2012 *	140,000,000.00	KOTAK MAHINDRA BANK LIMITED	36-38A, NARIMAN BHAVAN, 227,D, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA	B39320296
2	10212984	20/03/2013 *	175,000,000.00	STANDARD CHARTERED BANK	VAISHNAVI SERENITY, 112, 5TH BLOCK, KORAMANGALA, BANGALORE - 560095, KARNATAKA, INDIA	B72965387

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. In Millions)
SHORT TERM BORROWINGS
Loans repayable on demand (Secured by personal guarantees and mortgage of personal property of Mr. Rajkumar Rathi and Mrs. Mamta Rathi and hypothecation of current assets of the company pari passu)	77.030	49.005
Total	77.030	49.005

CORPORATE INFORMATION

The Company is a Private limited company under the Companies Act, 1956 (the Act) on 9^th November 1999. The registered office of the company is located at Bangalore, Karnataka, India. The Company is involved in the dealing and distribution of IT peripherals, Software and consumables, which involve several categories of products.

BUSINESS OPERATIONS AND PROSPECTS:

The Company has earned a total income of Rs. 2734.675 millions for the year ended 31^st March 2012 and total expenditure is Rs. 2734.028 millions for the said year and thereby registered a profit of Rs.0.421 million after providing for deferred tax, taxes. The business outlook for the year 2012-2013 is encouraging.

CONTINGENT LIABILITIES (AS ON 31.03.2012):

(Rs. in millions)

a. The company adopts a process of claiming from customs department special additional duities incurred while importing material. Out of the total claim made of Rs.6.444 millions claims aggregated to Rs.2.010 millions are pending with the customs department owing to certain quiries raised. Accordingly Rs.2.010 millions is treated as contingent liability, against receivables from customs department and indicated in the current assets.

b. The company has preferred an appeal with the commercial tax department of Bangalore with respect to a sales tax assessment. On the instructions the company has placed deposit of Rs.0.556 million pending disposal of the appeal.

Total contingent liability (a+b) Rs.2.566 millions

FIXED ASSETS

· Tangible Assets

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer Equipments

· Other Equipments

· Intangible Assets

· Computer Software

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.62.48
UK Pound	1	Rs.99.66
Euro	1	Rs.83.50

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.