MIRA INFORM REPORT

Report Date :

19.07.2014

IDENTIFICATION DETAILS

Name :	NINE STAR SYSTEMS
Registered Office :	B-62, GIDC, Sector-25, Electronics Estate, Gandhinagar – 382024, Gujarat
Country :	India
Financials (as on) :	31.03.2014
Year of Establishment :	17.10.2010
Capital Investment :	Rs. 0.773 Million
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer of Solar Light and Trader of Solar Water Heater, Solar Power Plant, Led Displays.
No. of Employees :	10 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 3000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established partnership concern having a satisfactory track record. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The concern can be considered for normal 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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

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. Viral Joshi
Designation :	Partner
Contact No.:	91-9904062919
Date :	15.07.2014

LOCATIONS

Registered Office/ Factory :	B-62, GIDC, Sector-25, Electronics Estate, Gandhinagar – 382024, Gujarat, India
Tel. No.:	91-79-23289089
Mobile No.:	91-9904062919 (Mr. Viral Joshi)
Fax No.:	Not Available
E-Mail :	gstarsystems@gmail.com
Website :	www.ninestarsystems.com
Area :	500 sq ft
Location :	Rented

PARTNERS

Name :	Mr. Viral Joshi
Designation :	Partner
Date of Birth/ Age :	28 Years
Qualification :	B. Tech
Name :	Mr. Sanjay Jain
Designation :	Partner
Date of Birth/ Age :	45 Years
Qualification :	B.E

BUSINESS DETAILS

Line of Business :

Manufacturer of Solar Light and Trader of Solar Water Heater, Solar Power Plant, Led Displays.

Products :

Solar Products
Solar Grid Power Plant	Solar Power Plant
Solar Home Light and Power Plant System	Solar Street Light
Solar LED Light	Solar Street Light
Solar Lighting	Solar Water Heater
Solar Lighting System
Lighting Systems
LED Screen	LED Moving Message Display Board
LED Torch	LED Luminaire
LED Strip and Wall Washer
LED Displays
LED Board	Display Screen
Access Control Systems
Access Control Reader	Motion Detectors
Fingerprint Attendance System	RFID Card Attendance System
Display Systems/Digital Display
CCTV Camera and Security Systems
Wind Mills

Exports :

Products :

· Solar Light

Solar Water Heater

Solar Power Plant

Led Displays

Countries :

UAE

Imports :

Products :

Led Parts

Countries :

China

Terms :

Selling :

Cash and Credit

Purchasing :

TT, Cash and Credit

GENERAL INFORMATION

Supplier :	Lesotech, Gandhinagar
Customer :	J J PV Solar, Rajkot
No. of Employees :	10 (Approximately)
Bankers :	United Bank of India, Gandhinagar Branch, Gujarat, India
Facilities :	Cash Credit : Rs. 0.500 Million (From United Bank of India)

Banking Relations :	--
Auditors :
Name :	RSPH and Associates Chartered Accountants

CAPITAL STRUCTURE

Capital Investment :
Owned :	Rs. 0.773 Million
Borrowed :	--
Total :	Rs. 0.773 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2014
Sales Turnover (Approximately)	23.000

The above information has been parted by Mr. Viral Joshi (Partner).

Note: Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2013
SHAREHOLDERS FUNDS
1] Share Capital		0.773
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		0.773
LOAN FUNDS
1] Secured Loans		0.123
2] Unsecured Loans		0.000
TOTAL BORROWING		0.123
DEFERRED TAX LIABILITIES		0.000
TOTAL		0.896
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.181
Capital work-in-progress		0.000
INVESTMENT		0.022
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.188
	Sundry Debtors	2.685
	Cash & Bank Balances	1.377
	Other Current Assets	0.000
	Loans & Advances	0.000
Total Current Assets		4.250
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.490
	Other Current Liabilities	0.000
	Provisions	0.067
Total Current Liabilities		3.557
Net Current Assets		0.693
MISCELLANEOUS EXPENSES		0.000
TOTAL		0.896

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013
	SALES
		Income	16.560
		Other Income	0.171
		TOTAL	16.731
Less	EXPENSES
		Cost of Goods Sold	13.590
		Direct Expenses	1.449
		Accounting Charges	0.010
		Advertisement Expenses	0.036
		Audit Fees Expenses	0.005
		Bank Charges	0.009
		Car Loan Int.	0.036
		Computer Repairing Expenses	0.044
		Consulting Fees Expenses	0.014
		Electric Repairing Expenses	0.077
		Factory Expenses	0.043
		Factory Rent Expenses	0.120
		Insurance Expenses	0.008
		Interest on Bank Loan CC	0.008
		Interest on Capital	0.016
		Loan Process Charges	0.005
		Local Tempo Charges	0.037
		Machinery Repairing Expenses	0.024
		Other Expenses	0.957
		TOTAL	16.488
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		0.243
Less/ Add	DEPRECIATION/ AMORTISATION		0.047
	NET PROFIT/ (LOSS)		0.196

KEY RATIOS

PARTICULARS		31.03.2013
PAT / Total Income	(%)	1.17
Net Profit Margin (PBT/Sales)	(%)	1.18
Return on Total Assets (PBT/Total Assets}	(%)	4.42
Return on Investment (ROI) (PBT/Networth)		0.25
Debt Equity Ratio (Total Debt/Networth)		0.16
Current Ratio (Current Asset/Current Liability)		1.19

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 one year	Yes
12]	Profitability for last one year	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	No
16]	Details of sister concerns	No
17]	Major suppliers	No
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	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
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

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 records 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.60.33
UK Pound	1	Rs.103.18
Euro	1	Rs.81.58

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	RAS
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	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		45

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.