MIRA INFORM REPORT

Report Date :

01.08.2014

IDENTIFICATION DETAILS

Name :	NU TEK INDIA LIMITED
Registered Office :	A-213, Road No.-4, Gali No.-11, Mahipalpur, New Delhi-110037
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	06.07.1993
Com. Reg. No.:	55-054313
Capital Investment / Paid-up Capital :	Rs. 772.600 Millions
CIN No.: [Company Identification No.]	L74899DL1993PLC054313
Vat No.:	06141823769
PAN No.: [Permanent Account No.]	AAACN2270L
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is a telecom infrastructure services provider offering infrastructure rollout solutions for both mobile and fixed telecom networks. The company also offers services in installing and maintaining telecom network equipment and infrastructure.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 19000000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has incurred a heavy loss during 2014. The rating also take into consideration change in government policies and the unfavorable environment in the telecommunication (telecom) sector. However, trade relations are reported as fair. Business is active. Payments terms are reported to be slow. 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.

ECGC Country Risk Classification List – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating = B
Rating Explanation	High risk of default
Date	10.10.2013

Rating Agency Name	CRISIL
Rating	Short Term Rating = A4
Rating Explanation	Minimal degree of safety it carry very high credit risk
Date	10.10.2013

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 31-03-2014.

INFORMATION DECLINED

Management Non-Cooperative (91-124-6124600)

LOCATIONS

Registered Office :	A-213, Road No.-4, Gali No.-11, Mahipalpur, New Delhi-110037
Tel. No.:	91-11-32694477
Fax No.:	Not Available
E-Mail :	sanjay.kumar@nutek.in info@nutek.in
Website :	http://www.nutek.in
Corporate Office :	B-27, Infocity, Sector – 34, Gurgaon – 122002, Haryana, India
Tel. No.:	91 124 6124 600
Fax No.:	91 124 6124 675
E-Mail :	marketing@nutek.in

DIRECTORS

As on 31.03.2013

Name :	Mr. Inder Sharma
Designation :	Chairman Cum Managing Director
Name :	Mr. Vineet Sirpaul
Designation :	Whole Time Director
Name :	Mrs. Sumati Sharma
Designation :	Director
Name :	Mr. Mahesh Khera
Designation :	Director
Name :	Mr. Amar Sarin
Designation :	Director
Name :	Mr. Rajiv Kumar
Designation :	Additional Director

KEY EXECUTIVES

Name :	Mr. Sanjay Kumar Singh
Designation :	General Counsel and Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2014

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	14694204	9.51
Sub Total	14694204	9.51
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	14694204	9.51
(B) Public Shareholding
(1) Institutions
Foreign Institutional Investors	154578	0.10
Sub Total	154578	0.10
(2) Non-Institutions
Bodies Corporate	12920436	8.36
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	40184245	26.01
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	70943291	45.91
Any Others (Specify)	15621846	10.11
Employees	147092	0.10
Clearing Members	3613922	2.34
Non Resident Indians	11860832	7.68
Sub Total	139669818	90.39
Total Public shareholding (B)	139824396	90.49
Total (A)+(B)	154518600	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	154518600	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	79358451	0.00

BUSINESS DETAILS

Line of Business :

Subject is a telecom infrastructure services provider offering infrastructure rollout solutions for both mobile and fixed telecom networks. The company also offers services in installing and maintaining telecom network equipment and infrastructure.

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

State Bank of India, Commercial Branch, Palm Court, Gurgaon-122002, Haryana, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2014	As on 31.03.2013
Long-term borrowings
Term loans From banks (against hypothecation of vehicles)	NA	5.000
From other parties (against hypothecation of vehicles)	NA	0.200
Long-term maturities of finance lease obligations	NA	2.000
Short-term borrowings
State Bank of India	NA	255.700
Total	NA	262.900

Banking Relations :	---
Auditors :
Name :	Suman Jeet Agarwal and Company Chartered Accountants
Address :	516, Arunachal Building, 19,Barakhamba Road, Connaught Place, New Delhi- 110001, India
Tel. No.:	11-43549486
Fax No.:	11-43549487
E-Mail :	sumanjeet68@yahoo.co.in
Subsidiaries : (As on 31.03.2013)	· Nutek HK Private Limited · Ketun Energy Private Limited · Nutek Europe SRO
Associates : (As on 31.03.2013)	Oriental Stich Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs.772.600 Millions

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
200000000	Equity Shares	Rs.5/- each	Rs.1000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
154518600	Equity Shares	Rs.5/- each	Rs.772.600 Millions

Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

Particulars	Number of shares	Rs. In Millions
Opening Balance	154,518,600	772.600
Fresh issue	--	--
Closing Balance	154,518,600	772.600

Details of shares held by each shareholder holding more than 5% shares:

Class of shares / Name of Shareholder	Number of shares held	% holding in that class of shares
Equity shares with voting rights
Mr. Inder Sharma	14542860	9.41

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	772.600	772.600	772.600
(b) Reserves & Surplus	4111.100	5015.600	4774.100
(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)	4883.700	5788.200	5546.700
(3) Non-Current Liabilities
(a) long-term borrowings	7.500	7.200	3.900
(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	8.200	6.700	6.000
Total Non-current Liabilities (3)	15.700	13.900	9.900
(4) Current Liabilities
(a) Short term borrowings	258.100	256.100	274.600
(b) Trade payables	585.200	429.600	499.300
(c) Other current liabilities	126.200	88.600	187.900
(d) Short-term provisions	148.800	147.200	125.000
Total Current Liabilities (4)	1118.300	921.500	1086.800
TOTAL	6017.700	6723.600	6643.400
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	34.300	35.000	30.200
(ii) Intangible Assets	0.000	5.500	8.500
(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	3625.000	4251.300	217.300
(c) Deferred tax assets (net)	3.600	2.900	2.900
(d) Long-term Loan and Advances	0.000	1.200	3788.000
(e) Other Non-current assets	1.300	2.300	3.400
Total Non-Current Assets	3664.200	4298.200	4050.300
(2) Current assets
(a) Current investments	0.000	0.000	15.000
(b) Inventories	7.700	18.800	25.700
(c) Trade receivables	467.700	1018.200	866.600
(d) Cash and cash equivalents	795.000	76.500	85.900
(e) Short-term loans and advances	73.000	759.400	1071.000
(f) Other current assets	1010.100	552.500	528.900
Total Current Assets	2353.500	2425.400	2593.100
TOTAL	6017.700	6723.600	6643.400

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	1392.319	1192.100	822.700
		Other Income	15.588	15.600	67.200
		TOTAL (A)	1407.907	1207.700	889.900
Less	EXPENSES
		Cost of Materials Consumed	295.264	0.000	0.000
		Purchases	787.912	751.700	438.100
		Increase /Decrease in stock	11.110	6.900	5.900
		Employees benefits expense	205.910	185.200	151.600
		Other expenses	188.163	151.700	197.600
		Exceptional Items	150.257	0.000	0.000
		TOTAL (B)	1638.616	1095.500	793.200
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(230.709)	112.200	96.700
Less	FINANCIAL EXPENSES (D)		39.686	40.200	47.700
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(270.395)	72.000	49.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.598	11.100	13.900
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(280.993)	60.900	35.100
Less	TAX (H)		(0.591)	21.500	13.200
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(280.402)	39.400	21.900
	EARNINGS IN FOREIGN CURRENCY
		Export of services/Materials	NA	51.500	35.100
	TOTAL EARNINGS		NA	51.500	35.100
	Earnings / (Loss) Per Share (Rs.)		(1.81)	0.25	0.14

Note:

1. The above audited financial results have been reviewed by the Audit Committee at its meeting held on May 30, 2014 and approved by the Board of Directors at its meeting held on May 30, 2014.

2. The above published unaudited consolidated results have been prepared by the Company in accordance with the Accounting Standard 21 on "Consolidated Financial Statements".

3. Current tax provision has been made at the prevailing rates.

4. An amount of Rs. 148.200 Millions has been written off as unserviceable project under progress from the India Projects.

4. Figures pertaining to the previous year have been regrouped, reclassified to confirm to the classification of the current period.

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	(19.92)	3.26	2.46
Net Profit Margin (PBT/Sales)	(%)	(20.18)	5.11	4.27
Return on Total Assets (PBT/Total Assets}	(%)	(11.76)	2.47	0.55
Return on Investment (ROI) (PBT/Networth)		(0.06)	0.01	0.01
Debt Equity Ratio (Total Debt /Networth)		0.05	0.05	0.05
Current Ratio (Current Asset/Current Liability)		2.10	2.63	2.39

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	772.600	772.600	772.600
Reserves & Surplus	4774.100	5015.600	4111.100
Net worth	5546.700	5788.200	4883.700
long-term borrowings	3.900	7.200	7.500
Short term borrowings	274.600	256.100	258.100
Total borrowings	278.500	263.300	265.600
Debt/Equity ratio	0.050	0.045	0.054

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	822.700	1192.100	1392.319
		44.901	16.795

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	822.700	1192.100	1392.319
Profit / (Loss)	21.900	39.400	(280.402)
	2.66%	3.31%	-20.14%

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	No
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	No
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

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2014	As on 31.03.2013
Short-term borrowings
Citi Bank (Book Over Draft)	NA	0.400
Total	NA	0.400

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10143890	26/06/2014 *	200,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, 6TH FLOOR, PALM COURT, GURGAON, HARYANA - 122001, INDIA	C12616009

* Date of charge modification

FIXED ASSETS

· Computer

· Office Equipment

· Furniture and Fixtures

· Laptop

· Other Office equipment

· Plant & Machinery

· TEMS

· Genset

· Motorcycle

· 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 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.60.25
UK Pound	1	Rs.101.92
Euro	1	Rs.80.69

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	DIV
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--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	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.