MIRA INFORM REPORT

Report Date :

14.08.2014

IDENTIFICATION DETAILS

Name :	A4E INDIA PRIVATE LIMITED
Registered Office :	Flat No. 1106 and 1107, 11^th Floor, New Delhi House, 27, Barakhamba Road, New Delhi - 110001
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	25.06.2009
Com. Reg. No.:	55-191587
Capital Investment / Paid-up Capital :	Rs. 74.070 Millions
CIN No.: [Company Identification No.]	U85100DL2009PTC191587
PAN No.: [Permanent Account No.]	AAHCA9299H
Legal Form :	Private Limited Liability Company
Line of Business :	Providing Training and Placement Services.
No. of Employees :	90 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 122000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating is constrained on account of company’s weak financial risk profile and accumulated losses incurred by the company over a year. However, trade relations are fair. Business is active. Payments are reported to be slow. 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 – 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.

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 PARTED BY (GENERAL DETAILS)

Name :	Mr. V. K. Madhavan
Designation :	Training Head
Contact No.:	91-9958002618
Date :	13.08.2014

LOCATIONS

Registered Office :	Flat No. 1106 and 1107, 11^th Floor, New Delhi House, 27, Barakhamba Road, New Delhi – 110001, India
Tel. No. :	91-11-30614606
Mobile No. :	91-9958002618 (Mr. V. K. Madhavan)
Fax No. :	91-11-30614411
E-Mail :	keshav@kudsiaassociates.com infoindia@a4eindia.com
Website :	www.a4eindia.com
Branch Offices :	Located at · Orissa UP Bihar Rajasthan Maharashtra

DIRECTORS

As on 27.09.2013

Name :	Mark Alastair Runacres
Designation :	Director
Address :	Farm House No.25, Kapashera Estate, Kapashera Village, New Delhi – 110037, India
Date of Birth/Age :	19.05.1959
Date of Appointment :	03.07.2012
DIN No. :	00786343
Name :	Vangal Madhavan
Designation :	Director
Address :	Chirag Simayal, PO Nathuwakhan, Nainital – 263158, Uttarakhand, India
Date of Birth/Age :	09.07.1969
Date of Appointment :	03.06.2013
DIN No. :	00581283
Name :	David Jameslaurens Crichton Miller
Designation :	Director
Address :	12, Huntingdon Street, N1 1BU, London, England, PE296FL, U.K.
Date of Birth/Age :	16.01.1963
Date of Appointment :	03.07.2012
DIN No. :	05333973

KEY EXECUTIVES

Name :	Mukesh Gupta
Designation :	Secretary
Address :	House No. 234, Street No. 4, Ram Nagar, Krishna Nagar, Delhi – 110051, India
Date of Birth/Age :	31.10.1972
Date of Appointment :	08.11.2012
PAN No. :	AFFPG7552K
Name :	Mr. V. K. Madhavan
Designation :	Training Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2013

Names of Shareholders	No. of Shares
Mark Alastair Runacres, India	1
A4E Limited, U.K.	11036999
Total	11037000

Allottee as on 25.11.2013

Names of Shareholders	No. of Shares
A4E Limited, U.K.	2600000
Total	2600000

As on 27.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Providing Training and Placement Services.

Products :

Item Code No. (ITC Code)	Product Description
85	Health and Social Work

Terms :

Selling :

Cash and Cheque

Purchasing :

Cash and Cheque

GENERAL INFORMATION

No. of Employees :	90 (Approximately)
Bankers :	Not Divulged

Banking Relations :	--
Auditors :
Name :	Kudsia and Associates Chartered Accountants
Address :	Delhi, India
Income-tax PAN of auditor or auditor's firm :	AAAFK5796K
Holding Company :	A4e Limited, UK

CAPITAL STRUCTURE

After 27.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
17,500,000	Equity Shares	Rs.10/- each	Rs. 175.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13,637,000	Equity Shares	Rs.10/- each	Rs. 136.370 Millions

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
12,500,000	Equity Shares	Rs.10/- each	Rs. 125.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7,407,000	Equity Shares	Rs.10/- each	Rs. 74.070 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	74.070	38.820	5.000
(b) Reserves & Surplus	(59.160)	(40.756)	(14.097)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	15.500	1.000	10.800
Total Shareholders’ Funds (1) + (2)	30.410	(0.936)	1.703
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.056	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.860	0.492	0.000
Total Non-current Liabilities (3)	0.860	0.548	0.000
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	2.315	2.996	0.325
(c) Other current liabilities	9.026	18.065	0.321
(d) Short-term provisions	0.020	0.012	0.219
Total Current Liabilities (4)	11.361	21.073	0.865
TOTAL	42.631	20.685	2.568
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	0.881	0.757	0.045
(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	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.040	0.000	0.000
(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	0.921	0.757	0.045
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	0.000	0.000	0.000
(c) Trade receivables	31.976	0.000	0.000
(d) Cash and cash equivalents	5.777	18.489	2.509
(e) Short-term loans and advances	3.957	1.439	0.014
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	41.710	19.928	2.523
TOTAL	42.631	20.685	2.568

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income		11.460	1.035
		Other Income		0.000	0.000
		TOTAL (A)	49.090	11.460	1.035
Less	EXPENSES
		Employees benefits expense		17.521	7.165
		Other expenses		19.798	7.187
		TOTAL (B)	67.012 (Including Financial Expenses)	37.319	14.352
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			(25.859)	(13.317)
Less	FINANCIAL EXPENSES (D)			0.504	0.705
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(17.922)	(26.363)	(14.022)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.588	0.240	0.074
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(18.510)	(26.603)	(14.096)
Less	TAX (H)		(0.106)	0.056	0.001
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(18.404)	(26.659)	(14.097)
	Earnings / (Loss) Per Share (Rs.)		(2.48)	(6.87)	--

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(37.49)	(232.63)	(1362.03)
Net Profit Margin (PBT/Sales)	(%)	NA	(232.14)	(1361.93)
Return on Total Assets (PBT/Total Assets}	(%)	(43.46)	(128.61)	(548.91)
Return on Investment (ROI) (PBT/Networth)		(0.61)	28.42	(8.28)
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		3.67	0.95	2.92

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	5.000	38.820	74.070
Reserves & Surplus	(14.097)	(40.756)	(59.160)
	10.800	1.000	15.500
Net worth	1.703	(0.936)	30.410
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	1.035	11.460	49.090
		1,007.246	328.360

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	1.035	11.460	49.090
Profit	(14.097)	(26.659)	(18.404)
	(1362.03%)	(232.63%)	(37.49%)

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	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	Yes
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 / No
24]	Banking facility details	Yes / No
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes / No
28]	Incorporation details, if applicable	Yes / No
29]	Last accounts filed at ROC	Yes / No
30]	Major Shareholders, if available	Yes / No
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes / No
32]	PAN of Proprietor/Partner/Director, if available	Yes / No
33]	Voter ID No of Proprietor/Partner/Director, if available	Yes / No
34]	External Agency Rating, if available	Yes / No

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

UNSECURED LOANS

OPERATIONS

During the year, the Company was involved in implementation of special project sanctioned form the Ministry of Rural Development, Government of India, under Sawrnajaynti Gram Swarozgar Yojana (SGSY) for skill development for work for training & certification of Rural BPL youth in six states in India. The company is implementing this project in co-ordination with the Ministry Development and their monitoring agency National Institute of Rural Development.

CONTINGENT LIABILITIES:

PARTICULARS

31.03.2013 (Rs. In Millions)

31.03.2012 (Rs. In Millions)

FIXED ASSETS

Tangible Assets

· Furniture and Fixtures

Office Equipment

Computer Equipments

Other Equipments

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.61.25
UK Pound	1	Rs.103.02
Euro	1	Rs.81.90

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	KAR
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	--
--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	NO
--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		26

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.