MIRA INFORM REPORT

Report Date :

07.04.2014

IDENTIFICATION DETAILS

Name :	FAXONICS TECHNOLOGIES PRIVATE LIMITED

Registered Office :	501-502, Building No.17, Maruti Mansion, Raghunath Dadaji Street, Fort, Mumbai – 400 001, Maharashtra

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	22.05.2007

Com. Reg. No.:	11-171041

Capital Investment / Paid-up Capital :	Rs.21.650 millions

CIN No.: [Company Identification No.]	U72900MH2007PTC171041

TAN No.: [Tax Deduction & Collection Account No.]	MUMF05553C

PAN No.: [Permanent Account No.]	AABCF0965F

Legal Form :	Private Limited Liability Company

Line of Business :	Trader and Dealer of Computer Parts, Printer and Printer Parts.

No. of Employees :	23 Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING

STATUS

PROPOSED CREDIT LINE

26-40

Capability to overcome financial difficulties seems comparatively below average.

Small

Maximum Credit Limit :	USD 134000

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is an established company having moderate track. The company possess an acceptable financial profile marked by modest networth base. The ratings also take into consideration the low profit margin and drastic deterioration in the cash reserves of the company during 2013. However, trade relations seems to be fair. Business is active. Payment terms are reported as slow but correct. The company can be considered for business dealings 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.

INDIAN ECONOMIC OVERVIEW

India’s current account deficit for the fiscal third quarter ended September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in exports and moderation in gold imports. Manufacturing activity and new orders in India showed their strongest growth in a year in February. The news comes as a relief after data showed Asia’s third largest economy grew by a slower-than-expected 4.7 % annually in the three months through December. The HSBC Manufacturing Purchasing Managers’ Index which gauges the business activity of India’s factories but not its’ utilities, rose to 52.5 in February, its highest in a year from 51.4 in January. Overall new orders for factory goods which rose to a one-year high of 54.9 contributed to the surge. China has emerged as India’s biggest trading partner in the current financial year replacing the United Arab Emirates and pushing it to the third spot. India-China trade has reached $49.5 billion with a 8.7 % share in India’s total trade. The US comes second at $46 billion with 8.1 % share during the first nine months of the current financial year.

The Reserve Bank of India has granted an additional nine months to the public to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000 denominations, pushing the deadline to January 1, 2015. A day before dates for the Lok Sabha polls were announced, the government decided to hike interest rates on fixed deposit schemes offered by post offices up to 0.2 per cent. The new rates will be effective April, 1. The Supreme Court will resume hearing on March, 11 Nokia’s appeal against a ruling over transferring ownership of its local mobile phones plant which is the subject of a tax dispute to Microsoft Corp.

In the last days of the current Government, another scam has surfaced. The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The Central Bureau of Investigation will look into allegations that over $80 million was paid in kickbacks in a deal signed in 2011. India has asked Boeing Co. to find a solution for problems with state-owned Air India’s 787 Dreamliners. The aircraft has experienced a series of malfunctions since its debut in 2011.

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. Ashutosh Singh
Designation :	Finance Department
Contact No.:	91-22-22625566
Date :	05.04.2014

LOCATIONS

Registered Office/ Head Office/ Corporate Office :	501-502, Building No.17, Maruti Mansion, Raghunath Dadaji Street, Fort, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91-22-22625566/ 22626072
Fax No.:	91-22-22630004
E-Mail :	mail@faxonics.com accounts@faxonics.com sales@faxonics.com service@faxonics.com consumables@faxonics.com faxonics@vsnl.com yogi@faxonics.com
Website :	http://www.faxonics.com
Location :	Owned

Branch Office 1 :	11/1, Sakina Mansion, Sahar Road, Andheri (East), Mumbai – 400 069, Maharashtra, India
Tel. No.:	91-22-26834001
E-Mail :	sales@faxonics.com

Branch Office 2 :	Office No.8, Ganesh Apartment, Perugate Road, Opposite Tilak Smarak, 1526, Sadashiv Peth, Pune – 411 030, Maharashtra, India
Tel. No.:	91-20-65105533/ 65103377
Fax No.:	91-20-24487004
E-Mail :	mail.pune@faxonics.com

Branch Office 3 :	D-64/52-G 12/1, Madhopur, Sigra, Varanasi – 221 010, Uttar Pradesh, India
E-Mail :	mail.vnsi@faxonics.com

DIRECTORS

AS ON 28.09.2013

Name :	Mr. Yogendra Ramchandra Singh
Designation :	Director
Address :	25, 3^rd Floor, Wellington Terraces No.1, Wellington Street, Dhobi Talab, Mumbai – 400 002, Maharashtra, India
Date of Birth/Age :	01.02.1969
Date of Appointment :	22.05.2007
DIN No.:	01358089

Name :	Mr. Sanjay Rajendra Singh
Designation :	Director
Address :	D-602, 6^th Floor, Orchard Enclave, Gomes Nagar, J.B. Nagar Andheri (East), Mumbai – 400 059, Maharashtra, India
Date of Birth/Age :	05.05.1972
Date of Appointment :	22.05.2007
DIN No.:	01358135

Name :	Ms. Sarita Yogendra Singh
Designation :	Director
Address :	25, 3^rd Floor, Wellington Terraces No.1, Wellington Street, Dhobi Talab, Mumbai – 400 002, Maharashtra, India
Date of Birth/Age :	16.09.1971
Date of Appointment :	28.10.2013
DIN No.:	06653201

KEY EXECUTIVES

Name :	Mr. Ashutosh Singh
Designation :	Finance Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2013

Names of Shareholders	No. of Shares	Percentage of Holding
Yogendra Ramchandra Singh	1469500	67.88
Sanjay Rajendra Singh	695500	32.12
Total	2165000	100.00

AS ON 28.09.2013

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00

BUSINESS DETAILS

Line of Business :	Trader and Dealer of Computer Parts, Printer and Printer Parts.

Products/ Services :	Printer Multifunctional Printers Fax Machines Scanners Copiers Projectors After Sales Service Annual Maintenance Managed Document Services

Agencies Held :	OPTOMA CANON

Imports :
Products :	Finished Goods
Countries :	Taiwan China

Terms :
Purchasing :	Depend

GENERAL INFORMATION

Suppliers :

Advanced Techyro Services Private Limited
A One Infotech
Canon India Private Limited
Computer Centre
Dharmaveer Art
D Horizon Digital Solutions
Eden Irdosol Private Limited
Frontline Software Solution
Galaxy Infotech
Insite Advertising Services
Jaya Infotech Private Limited
Karuna Offset Printers
Sugam Printers
Swastic Tele Systems
Tech Pius Media Private Limited
Zip Technologies Marketing (India) Private Limited

Customers :

Air India Limited
Reserve Bank of India
State Bank of India
Cipla Limited
Creative Systems
D.S. Group
Express Comtel Private Limited
HD Fire Protect Private Limited
IDBI Bank Limited
Jupiter Exports
Kalpana Associates
Life Insurance Corporation of India
Navin Fluorine International Limited
Sai Solutions
Shivam Services
The Bank of Nova Scotia
University of Pune
V.R. Enterprises
Zenith Outdoors Private Limited

No. of Employees :

23 (Approximately)

Bankers :

Abhyudaya Co-Operative Bank Limited, Administrative Office, K.K. Tower, Abhyudaya Bank Lane, Off. G.D. Ambekar Marg, Parel Village, Mumbai – 400 012, Maharashtra, India
Bank of India
Standard Chartered Bank

Facilities :

Secured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Bank O/d
Abhyudaya Co-Operative Bank Limited	22.911	45.450
Standard Chartered Bank	4.008	1.127
Abhyudaya Co-Operative Bank Limited	0.211	0.319
Kotak Mahindra (Car Loan)	0.000	0.184
Sundaram Finance	0.096	0.256
Total	27.226	47.336


Banking Relations :	--

Auditors :
Name :	Satish Singh and Associates Chartered Accountants
Address :	002, ‘A’ Wing, Ground Floor Mansarovar CHS Limited, ADI Shankaracharya Marg, Opposite I.I.T. Market, Powai, Mumbai – 400 076, Maharashtra, India
Tel. No.:	91-22-25772248/ 25782430/ 25788303/ 25794517
Fax No.:	91-22-25794517
E-Mail :	casatishsingh@rediffmail.com satish_usingh@yahoo.com
Website :	www.casatishsingh.com
PAN No.:	AADPS6795D

CAPITAL STRUCTURE

AS ON 28.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2165000	Equity Shares	Rs.10/- each	Rs.21.650 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	21.650	14.650	4.500
(b) Reserves & Surplus	11.783	8.028	4.562
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	33.433	22.678	9.062

(3) Non-Current Liabilities
(a) Long-term borrowings	72.811	61.272	46.489
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) Long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	72.811	61.272	46.489

(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	27.848	28.396	41.038
(c) Other current liabilities	2.304	2.838	3.135
(d) Short-term provisions	3.684	0.953	0.973
Total Current Liabilities (4)	33.836	32.187	45.146

TOTAL	140.080	116.137	100.697

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	6.413	5.572	4.463
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.739	0.739	0.739
(c) Deferred tax assets (net)	0.494	0.381	0.196
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	7.646	6.692	5.398

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	38.364	41.953	44.588
(c) Trade receivables	62.023	51.341	46.006
(d) Cash and cash equivalents	0.605	8.271	1.253
(e) Short-term loans and advances	23.071	7.880	3.452
(f) Other current assets	8.371	0.000	0.000
Total Current Assets	132.434	109.445	95.299

TOTAL	140.080	116.137	100.697

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
SALES
	Gross Sales	359.290	349.944	264.758
	Other Income	NA	NA	NA
	TOTAL	NA	NA	NA

EXPENSES
	TOTAL	422.092	365.897	259.546

PROFIT / (LOSS) BEFORE INTEREST, TAX AND NON CASH EXPENDITURE		8.845	6.486	5.212

INTEREST		0.000	0.000	0.000

DEPRECIATION AND MISC. EXPENDITURE WRITTEN OFF.		2.111	1.759	1.447

PROFIT / (LOSS) BEFORE TAX		5.189	4.727	3.765

TAX		1.546	1.446	1.309

PROFIT / (LOSS) AFTER TAX		3.755	3.466	2.405

Earnings / (Loss) Per Share (Rs.)		1.73	2.37	5.34

Expected Sales (2013-2014): Rs.360.000 millions

The above information has been parted by Mr. Ashutosh Singh (Finance Department).

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Return on Total Assets (PBT/Total Assets}	(%)	3.74	4.11	3.77

Return on Investment (ROI) (PBT/Networth)		0.16	0.21	0.42

Debt Equity Ratio (Total Debt/Networth)		2.18	2.70	5.13

Current Ratio (Current Asset/Current Liability)		3.91	3.40	2.11

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	4.500	14.650	21.650
Reserves & Surplus	4.562	8.028	11.783
Net worth	9.062	22.678	33.433

Long-term borrowings	46.489	61.272	72.811
Short term borrowings	0.000	0.000	0.000
Total borrowings	46.489	61.272	72.811
Debt/Equity ratio	5.130	2.702	2.178

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Gross Sales	264.758	349.944	359.290
		32.175	2.671

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Gross Sales	264.758	349.944	359.290
Profit	2.405	3.466	3.755
	0.91%	0.99%	1.05%

LOCAL AGENCY FURTHER INFORMATION

Details of Current Maturities of Long Term Debt: Not Available

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	Yes
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
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:

No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

10324878

14/11/2011

352,000.00

ABHYUDAYA CO-OPERATIVE BANK LIMITED

ADMINISTRATIVE OFFICE, K.K. TOWER, ABHYUDAYA BANK LANE, G.D. AMBEKAR MARG, PAREL VILLAGE LANE, MUMBAI, MAHARASHTRA - 400012, INDIA

B28461176

10163605

30/01/2014 *

85,000,000.00

ABHYUDAYA CO-OPERATIVE BANK LIMITED

ADMINISTRATIVE OFFICE, K. K. TOWER, ABHYUDAYA BANK, LANE, OFF. G.D. AMBEKAR MARG, PAREL VILLAGE, MUMBAI, MAHARASHTRA - 400012, INDIA

B96121751

* Date of charge modification

Unsecured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Bhupendra Singh	0.000	4.956
Bipin Singh	0.400	0.550
Faxonics	0.000	0.065
FOA	0.000	6.565
FZG	0.000	0.000
Jitendra Singh	0.000	0.950
Rajesh Singh	0.000	0.000
S. Singh	0.500	0.850
Buy Credit (Letter of Credit)	44.685	0.000
Total	45.585	13.936

REVIEW OF OPERATION:

Gross Turnover for the year amounted Rs.359.290 millions and the company is in process of placing itself as a player in area of reseller of items related to Information Technologies.

FUTURE PROSPECT:

Within the two years the company expect increase in sale. This is expected to enhance the competitiveness of the company's products vis-à-vis competitiveness in the market and will result in increase in cash flow.

Considering the fast growth of IT sector, the company is poised to capitalize on its advantage and translate into higher profitability.

FINANCE:

During the year the company has availed financial assistance.

FIXED ASSETS:

· Furniture

· Furniture and Fixture (New Office)

· Camera

· Camera (Office)

· Mobile

· Washing Machine

· Water Purifier

· Car

· Maruti EECO

· Maruti Swift

· Tempo

· Computer Projector

· Computers

· Copiers

· Laptop

· Printer 01

· Printer 02

· Printer 03

· Gold Coin

· Refrigerator

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.60.32
UK Pound	1	Rs.100.04
Euro	1	Rs.82.65

INFORMATION DETAILS

Information Gathered by :	PDT

Analysis Done by :	SUB

Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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		29

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.

MIRA INFORM REPORT

3.74

0.16

2.18

3.91

Unit