MIRA INFORM REPORT

Report Date :

06.12.2014

IDENTIFICATION DETAILS

Name :	P.B. SYSTEMS (INDIA) PRIVATE LIMITED
Registered Office :	No.11, IInd Floor “Rosy Towers”, No.7, Nungambakkam High Road, Chennai – 600034, Tamilnadu
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	17.02.1999
Com. Reg. No.:	18-041915
Capital Investment / Paid-up Capital :	Rs.1.809 Millions
CIN No.: [Company Identification No.]	U30006TN1999PTC041915
TIN No.:	Not Available
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged into Development of Software.
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (64)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 447000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having good track record. Financial position of the company is sound. Fundamentals of the company are healthy. Trade relations are reported as fair. Business is active. Payment terms are reported to be regular and as per commitment. The company can be considered normal 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.

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

Verdict Implications: Apex court order may alter coal import dynamics. Traders go slowly on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn Business Empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M a M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that it had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

NOT AVAILABLE

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. Harsha Kumar
Designation :	Administrative Officer
Contact No.:	91-9396274024
Date :	05.12.2014

LOCATIONS

Registered Office :	No.11, IInd Floor “Rosy Towers”, No.7, Nungambakkam High Road, Chennai – 600034, Tamilnadu, India
Tel. No.:	91-44-28270310
Mobile No.:	91-9396274024 (Mr. Harsha Kumar)
Fax No.:	91-44-28272539
E-Mail :	pratapmoturi@yahoo.com
Website :	www.pbsystems.com
Branch Office 1 :	Q City, B-Block, 1st Floor, Nanakramguda, Gachibowli, Hyderabad - 500032, Andhra Pradesh, India
Branch Office 2 :	40-1-52/5, Near Benz Circle, Sainag Complex, 5th Floor, Above ICICI Bank, M G Road, Vijayawada - 520010, Andhra Pradesh, India

DIRECTORS

As on 14.08.2014

Name :

Lakshmi Moturi

Designation :

Director

Address :

Sai Nilayam, N0.25 C ,Ranjith Street, Kottur Puram, Chennai - 600085, Tamilnadu, India

Date of Birth/Age :

15.11.1956

Date of Appointment :

15.12.2000

DIN No.:

00872281

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	U67120TN1980PLC008217	SOUTH EAST FINANCE CO LIMITED	Director	10/04/1980	10/04/1980	-	Under Process of Striking off	NO
2	U74210TN1986PTC013261	ROSY MANAGEMENT CONSULTANTS PRIVATE LIMITED	Director	21/07/1997	21/07/1997	-	Active	NO
3	U30006TN1999PTC041915	P.B.SYSTEMS (INDIA) PRIVATE LIMITED	Director	15/12/2000	15/12/2000	-	Active	NO
4	U72900TN2009PTC072850	P B SOFT SYSTEMS INDIA PRIVATE LIMITED	Director	09/09/2009	09/09/2009	-	Active	NO

Name :

Mr. Prathipati Rao Bhogeswara

Designation :

Director

Address :

24 Hidden Creek, Irvine Ca 92620, Irvine, 92620, United States of America

Date of Birth/Age :

30.11.1955

Date of Appointment :

17.02.1999

DIN No.:

01348894

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	U30006TN1999PTC041915	P.B.SYSTEMS (INDIA) PRIVATE LIMITED	Director	17/02/1999	17/02/1999	-	Active	NO
2	U72900TN2009PTC072850	P B SOFT SYSTEMS INDIA PRIVATE LIMITED	Managing director	09/09/2009	09/09/2009	-	Active	NO

Name :

Mallaiah Duddempudi

Designation :

Director

Address :

74-11-7/1, Babuji Road Patamata, Vijayawada, 520010, Andhra Pradesh, India

Date of Birth/Age :

01.06.1955

Date of Appointment :

01.04.2003

DIN No.:

01412971

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	U26940AP1996PTC023947	KANAKADURGA PULVERISERS PRIVATE LIMITED	Director	26/06/1996	26/06/1996	-	Active	NO
2	U15142AP1987PTC007219	BABU AGRO OILS PRIVATE LIMITED.	Director	23/02/1998	23/02/1998	-	Strike off	NO
3	U15143AP1986PTC006977	BABU REFINED OILS PRIVATE LIMITED	Director	23/02/1998	23/02/1998	13/03/2007	Dormant	NO
4	U30006TN1999PTC041915	P.B.SYSTEMS (INDIA) PRIVATE LIMITED	Director	01/04/2003	01/04/2003	-	Active	NO

Name :

Mr. Hanumanth Rao Garneni

Designation :

Alternate Director

Address :

Flat No.301, Sri Ganesh Residency, Vittal Rao Nagar, Madhpur, Hyderabad - 500000, Andhra Pradesh, India

Date of Birth/Age :

27.03.1947

Date of Appointment :

10.10.2002

DIN No.:

01413074

Name :

Mr. Garneni Venu

Designation :

Director

Address :

30, Augusta, Irvine Ca 92620, Irvine, 92620, United States Of America

Date of Birth/Age :

05.04.1969

Date of Appointment :

10.10.2002

DIN No.:

01941991

KEY EXECUTIVES

Name :	Mr. Harsha Kumar
Designation :	Administrative Officer

MAJOR SHAREHOLDERS

As on 14.08.2014

Names of Shareholders	No. of Shares	% of Holding
Prathipati Rao Bhogeswara	179889	99.45
Mallaiah Duddempudi	1000	0.55
Total	180889	100.00

Equity Share Break up (Percentage of Total Equity)

As on 14.08.2014

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged into Development of Software.
Products :	--
Brand Names :	--
Agencies Held :	--
Exports :
Products :	Software and Applications
Countries :	USA
Imports :	Not Divulged
Terms :
Selling :	Credit
Purchasing :	Credit

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :	Not Divulged
Customers :	Not Divulged
No. of Employees :	400 (Approximately)
Bankers :	ICICI Bank Limited, Vijaywada Main Branch, Andhra Pradesh, India
Facilities :	--

Banking Relations :	--
Auditors :
Name :	Murali and Moturi Chartered Accountants
Address :	No.12, 2nd Floor, Rosy Tower, Chennai – 600034, Tamilnadu, India
Tel. No.:	91-44-28270310 / 28264015
Fax No.:	91-44-28272539
PAN No.:	AAIPM6535E
Memberships :	--
Collaborators :	--
Sister Concern :	Not Divulged

CAPITAL STRUCTURE

As on 14.08.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
180899	Equity Shares	Rs.10/- each	Rs.1.809 Millions

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	1.809	1.809	1.809
(b) Reserves & Surplus	154.630	107.862	61.693
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.312
Total Shareholders’ Funds (1) + (2)	156.439	109.671	63.814
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.318	0.309	1.025
(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)	0.318	0.309	1.025
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	0.158	0.148	0.963
(c) Other current liabilities	2.767	38.288	20.980
(d) Short-term provisions	23.881	22.890	5.633
Total Current Liabilities (4)	26.806	61.326	27.576
TOTAL	183.563	171.306	92.415
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	41.023	42.613	46.602
(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)	0.000	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	41.023	42.613	46.602
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	0.000	0.000	0.000
(c) Trade receivables	47.693	49.480	12.305
(d) Cash and cash equivalents	54.634	43.462	15.393
(e) Short-term loans and advances	39.632	35.139	18.043
(f) Other current assets	0.581	0.612	0.072
Total Current Assets	142.540	128.693	45.813
TOTAL	183.563	171.306	92.415

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	343.698		237.475
		Other Income	0.921		0.045
		TOTAL	344.619	321.642	237.520
Less	EXPENSES		263.523	241.289	214.874
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		81.096	80.353	22.646
Less	DEPRECIATION/ AMORTISATION		10.448	12.011	9.086
	PROFIT/(LOSS) BEFORE TAX		70.648	68.342	13.560
Less	TAX		23.880	22.174	5.104
	PROFIT/(LOSS) AFTER TAX		46.768	46.168	8.456
	Earnings / (Loss) Per Share (Rs.)		258.53	452.63	82.92

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	13.61	NA	3.56
Return on Total Assets (PBT/Total Assets}	(%)	38.49	39.89	14.67
Return on Investment (ROI) (PBT/Networth)		0.45	0.62	0.21
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		5.32	2.10	1.66

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	1.809	1.809	1.809
Reserves & Surplus	61.693	107.862	154.630
Share Application money pending allotment	0.312	0.000	0.000
Net worth	63.814	109.671	156.439
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	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Total Income	237.520	321.642	344.619
		35.417	7.144

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Total Income	237.520	321.642	344.619
Profit	8.456	46.168	46.768
	3.56%	14.35%	13.57%

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	No
17]	Major suppliers	No
18]	Major customers	No
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	No
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

NO CHARGES EXIST FOR COMPANY

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.61.85
UK Pound	1	Rs.96.73
Euro	1	Rs.76.53

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	DIV
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		64

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.