MIRA INFORM REPORT

Report Date :

06.09.2014

IDENTIFICATION DETAILS

Name :	TEJAS NETWORKS LIMITED [w.e.f. 18.03.2008]
Formerly Known As :	TEJAS NETWORKS INDIA LIMITED [w.e.f. 23.10.2002] TEJAS NETWORKS INDIA PRIVATE LIMITED
Registered Office :	J P Software Park, Plot No 25, Sy. No 13, 14,17,18, Konnapana Agrahara Village, Begur Hobli, Bangalore – 560100, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	24.04.2000
Com. Reg. No.:	08-026980
Capital Investment / Paid-up Capital :	Rs. 1009.742 Millions
CIN No.: [Company Identification No.]	U72900KA2000PLC026980
TAN No.: [Tax Deduction & Collection Account No.]	BLRT01403D
PAN No.: [Permanent Account No.]	AABCT1670M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is enabler of high-performance telecom infrastructure by developing innovative carrier class communications equipment.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 14000000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Exist
Comments :	Subject is an established company having satisfactory track. The company is continuously incurring losses. However, the rating takes into consideration in the increase in turnover of the company driven by increased demand for telecom network infrastructure products both in Indian and Overseas markets, its expended product portfolio, entry into newer geographies and the continuous financial support in the form of equity infusion by the investors. Trade relations are reported as fair. Business is active. Payment terms are reported to be usually correct. 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

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	ICRA
Rating	Long term = BBB
Rating Explanation	Moderate degree of safety. It carry moderate credit risk.
Date	January, 2014

Rating Agency Name	ICRA
Rating	Short term = A2
Rating Explanation	Strong degree of safety and carry lowest credit risk.
Date	January, 2014

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 DENIED

Management Non-Cooperative

Contact no.:91-80-41794600

LOCATIONS

Registered Office/ Factory/ Branches 1 :	J P Software Park, Plot No 25, Sy. No 13, 14,17,18, Konnapana Agrahara Village, Begur Hobli, Bangalore – 560100, Karnataka, India
Tel. No.:	91-80-41794600/ 700/ 800/ 51794600/ 700/ 800
Fax No.:	91-80-41214481/ 51214481 / 41794738
E-Mail :	info@tejasnetworks.com prasannavs@india.tejasnetworks.com tamirisa@airtelbroadband.in nram@tejasnetworks.com lnarayana@india.tejasnetwaorks.com krishnakanthv@india.tejasnetworks.com
Website :	http://www.tejasnetworks.com
Head Office/ R & D Centre / Optical Lab :	Zone 2, 1^st Floor, Khanija Bhavan, 49, Race Course Road, Bangalore – 560 001, Karnataka, India
Tel. No.:	91-80-2226 7495 / 2238 4712 – 19
Fax No.:	91-80-2226 7494
E-Mail :	info@tejasnetworks.com sanjay@tejasnetworks.com mgsubra@tejasnetworks.com
Website :	http://www.tejasnetworks.com
Area :	20000 sq. ft.
Location :	Rented
Branches 2 :	301, Sai Plaza, Junction of Jawahar Road, And RB Mehta Marg, Opposite Ghatkopar Railway Station, Ghatkopar 9East), Mumbai – 4001 077, Maharashtra, India
Tel. No.:	91-22-65938780 / 25153767
Fax No.:	91-22-25103442
E-Mail :	sales-mumbai@tejasnetworks.com
Branches 3 :	2^nd Floor, 11 Prem Sadan Building, Rajhendra Place, New Delhi – 110 008, India
Tel. No.:	91-11-6546 4059 / 6549 8589
Fax No.:	91-11-2572 1226
E-Mail :	sales-delhi@tejasnetworks.com
Sales Office:	· 104, Sagar Shopping Centre, 76, J P Road Andheri (West), Mumbai – 400058, Maharashtra , India · R 535, 2^nd Floor, New Rajinder Nagar, New Delhi – 110060, India Tel: 91-11-5546-4059 Telefax: 91-11-2874-5106
Overseas Office:	· Tejas Networks Inc., 595 Summer Street, Suite 2, Stamford, Connecticut 06901, USA · C/o. Tejas Communication Pte. Ltd., 6, Shenton Way, #28-09 DBS Building Tower Two, Singapore - 068809 Email: sales-international@tejasnetworks.com Tejsas networks India limited · C/o Sandstone Capital, 177 Milk Street, 1^st Floor, Boston, MA – 02109 Email: sales-international@tejasnetworks.com
Branches 4 :	Located At : · Bangalore · Gurgaon · Kolkata · Pondicherry

DIRECTORS

AS ON 14.09.2012

Name :

Dr. Gururaj Deshpande

Designation :

Director

Address :

11 Fairway Drive, Andover, USA

Date of Birth/Age :

30.11.1950

Date of Appointment :

24.04.2000

DIN No.:

01979383

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	U72900KA2000PLC026980	TEJAS NETWORKS LIMITED	Director	24/04/2000	24/04/2000	-	Active	NO
2	U72200KA2008PTC047066	HiveFire Technologies India Private Limited	Director	07/07/2008	07/07/2008	20/04/2011	Strike off	NO

Name :

Mr. Sanjay Nayak

Designation :

Managing Director

Address :

529, 17 D Main, 6^th Block, Koramangala, Bangalore, Karnataka

Date of Birth/Age :

28.06.1964

Date of Appointment :

06.05.2000

Qualification :

BE (BIT Ranchi); MS (Comp- Engg.) NCSU

DIN No.:

01049871

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	U72900KA2000PLC026980	TEJAS NETWORKS LIMITED	Managing director	01/01/2014	06/05/2000	-	Active	NO
2	U32201KA2013PTC071695	vSave Energy Private Limited	Director	06/11/2013	06/11/2013	-	Active	NO
3	U73100KA2014NPL074734	ELCIA ESDM CLUSTER	Nominee director	05/06/2014	05/06/2014	-	Active	NO

Name :

Prof. Ashok Jhunjhunwala

Designation :

Director

Address :

C-2/2/5, Loop Road, IIT Madras, Chennai – 600036, Tamilnadu, India

Date of Birth/Age :

22.06.1953

Date of Appointment :

07.03.2002

DIN No.:

00417944

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	L72100KA1989PLC014226	SASKEN COMMUNICATION TECHNOLOGIES LIMITED	Director	22/11/2000	22/11/2000	-	Active	NO
2	U72200DL2000PLC184006	JATAAYU SOFTWARE LIMITED	Director	04/05/2001	04/05/2001	14/12/2007	Amalgamated	NO
3	L65993TN1993PLC024142	POLARIS FINANCIAL TECHNOLOGY LIMITED	Director	23/07/2014	16/06/2001	-	Active	NO
4	U64202TN2000PTC044818	N-LOGUE COMMUNICATIONS PRIVATE LIMITED	Director	28/12/2001	28/12/2001	01/10/2005	Under liquidation	NO
5	U72900KA2000PLC026980	TEJAS NETWORKS LIMITED	Director	07/03/2002	07/03/2002	-	Active	NO
6	U72900DL2003NPL120999	NATIONAL INTERNET EXCHANGE OF INDIA	Nominee director	19/06/2003	19/06/2003	-	Active	NO
7	U30007TN1994PTC027281	MIDAS COMMUNICATION TECHNOLOGIES PRIVATE LIMITED	Director	18/09/2003	18/09/2003	01/06/2009	Active	NO
8	U74899DL1987GOI002354	NATIONAL RESEARCH DEVELOPMENT CORPORATION	Director	08/02/2005	08/02/2005	08/02/2008	Active	NO
9	U73100TN2006NPL059651	IIT MADRAS RESEARCH PARK	Director	27/04/2006	27/04/2006	-	Active	NO
10	L32309KA1954GOI000787	BHARAT ELECTRONICS LIMITED	Director	19/09/2006	23/05/2006	22/05/2009	Active	NO
11	L67120MH1993PLC074411	3i Infotech Limited	Director	25/07/2007	19/10/2006	-	Active	NO
12	L64200MH1995PLC086354	TATA TELESERVICES (MAHARASHTRA) LIMITED	Director	24/08/2007	12/04/2007	-	Active	NO
13	U40106TG2007PTC052755	InteliZon Energy Private Limited	Additional director	04/01/2008	04/01/2008	01/08/2008	Active	NO
14	L64200MH1986PLC039266	Tata Communications Limited	Director	07/08/2009	25/10/2008	-	Active	NO
15	U64203HP1994PLC014541	EXICOM TELE-SYSTEMS LIMITED	Director	07/09/2009	31/12/2008	-	Active	NO
16	U73100DL2012NPL233152	BIOTECHNOLOGY INDUSTRY RESEARCH ASSISTANCE COUNCIL	Director	25/06/2013	25/06/2013	-	Active	NO
17	U73200TN2013NPL094014	IITM INCUBATION CELL	Director	03/12/2013	03/12/2013	-	Active	NO
18	U34101KA1996PTC020195	Mahindra Reva Electric Vehicles Private Limited	Additional director	20/01/2014	20/01/2014	-	Active	NO

Name :

Balakrishnan Venkatraman

Designation :

Director

Address :

567, 6^th Main Road, 3^rd Stage, 3^rd Block, Basaveshwaranagar, Bangalore – 560079, Karnataka, India

Date of Birth/Age :

30.10.1964

Date of Appointment :

11.06.2010

DIN No. :

02825465

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	U72900KA2000PLC026980	TEJAS NETWORKS LIMITED	Director	11/06/2010	09/11/2009	-	Active	NO
2	U80900DL2010NPL209163	EXTENSIBLE BUSINESS REPORTING LANGUAGE (XBRL) INDIA	Director	05/12/2011	28/01/2011	-	Active	NO
3	U72200KA2002PLC030310	INFOSYS BPO LIMITED	Director	08/06/2012	11/06/2011	31/12/2013	Active	NO
4	L85110KA1981PLC013115	INFOSYS LIMITED	Whole-time director	09/06/2012	11/06/2011	31/12/2013	Active	NO
5	U67190KA2009PTC051638	MICROGRAAM MARKETPLACE PRIVATE LIMITED	Director	01/04/2013	01/04/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Krishnakanth Venkata Gangavarapu
Designation :	Secretary
Address :	10, 6^th Cross, P.R. Layout, Bangalore – 560017, Karnataka, India
Date of Birth/Age :	27.08.1980
Date of Appointment :	16.03.2011
PAN No.:	AKSPM6451B

Name :	Dr. Kumar N Sivarajan
Designation :	Technical
Qualification :	B.Tech (IIT-M), Ph.D (EE), Cal Tech, USA,
Name :	Mr. Arnob Roy
Designation :	President-Engineering
Qualification :	B.Tech(IIT-KGP); MS (EE), Unebraska, USA
Name :	Mr. Murali R
Designation :	CFO
Qualification :	B.A, C A
Date of Appointment :	28.08.2006
Name :	Mr. Harmeet Singh
Designation :	Senior Vice President – International Business Development
Qualification :	B. Tech, P.hd
Experience :	17.9 years
Date of Appointment :	01.01.2007
Name :	Mr. Allan Philip
Designation :	Technical Director
Qualification :	BE,
Experience :	23.6 years

Name :	Mr. Rajiv Mahajan
Designation :	Sr. Vice President Domestic Sales
Qualification :	BE, MS

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 14.09.2012

Shareholders file details are attached.

AS ON 14.09.2012

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	48.60
Bodies corporate	0.28
Directors or relatives of Directors	2.30
Other top fifty shareholders	46.65
Others	2.17
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is enabler of high-performance telecom infrastructure by developing innovative carrier class communications equipment.

Products :

· Access Networks

· Regional Backbone Networks

· Wireless BTS-MSC connectivity

· Ethernet LAN over SDH WAN

· Optical transport for Digital Loop Carrier (DLC)

· As MADMs for superior bandwidth management and utilization

· Digital Cross Connections

Products Descriptions	Item Code No.
Multiplexers-Optical Networking and Telecommunication	85176270
Soft Ware	85238020

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

· Export-Import Bank of India

· Standard Chartered Bank, Raheja Towers, Sixth Floor, No. 26 - 27, M. G. Road, Bangalore - 560001, Karnataka, India

· Citi Bank, M.G. Road Branch, M.G. Road, Bangalore - 560001, Karnataka, India

· UTI Bank Limited, Esquire Centre, No. 9 M G Road, M G Road Branch, Bangalore - 560001, Karnataka, India

· Export-Import Bank of India, Centre One, Floor 21, World Trade Centre, Cuffe Parade, Mumbai - 400005, Maharashtra, India

· DBS Bank Limited, Salarpuria Windsor, No.2, Ulsoor Road, Bangalore - 560042, Karnataka, India

· Axis Bank Limited, Esquire Centre, No.9, M.G. Road, Bangalore - 560001, Karnataka, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Rupee term loans from others	30.000	0.000
SHORT TERM BORROWINGS
Loans repayable on demand from banks [Secured by Hypothecation of Inventory, Book debts, Fixed Assets, Fixed Deposits, Current Assets]	1593.579	1655.905
Loans repayable on demand from others	175.385	0.000
Total	1798.964	1655.905

Banking Relations :

---

Auditors :

Name :

Deloitte Haskin and Sells

Chartered Accountants

Address 2:

Deloitte Haskins and Sells, Deloitte Centre, Anchorage II, 100/2, Richmond Road, Bangalore - 560 025, Karnataka, India

PAN No.:

AACFD3771D

Subsidiaries :

· Tejas Communication Pte Limited, Singapore (Tejas, Singapore)

· Tejas Israel Limited, Israel (Tejas Israel)

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
109900000	Equity shares	Rs.10/- each	Rs. 1099.000 millions
420000	Preference Share	Rs.1000/- each	Rs. 402.000 millions
	Total		Rs. 1519.000 millions

Issued, Subscribed Capital :

No. of Shares	Type	Value	Amount
91001377	Equity shares	Rs.10/- each	Rs. 910.014 millions
394330	Preference Share	Rs.1000/- each	Rs. 394.330 millions
	TOTAL		Rs. 1304.344 millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
58273447	Equity shares	Rs.10/- each	Rs. 582.734 millions
32727930	Add : Partly Paid up Equity Share Capital	Rs.1/- each	Rs. 32.728 millions
394330	Preference Share	Rs.1000/- each	Rs. 394.330 millions
	Total		Rs. 1009.792 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	1009.792	615.462	615.462
(b) Reserves & Surplus	2278.712	3044.404	3837.657
(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)	3288.504	3659.866	4453.119
(3) Non-Current Liabilities
(a) long-term borrowings	30.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	1.751	0.000	0.000
(d) long-term provisions	25.644	30.876	26.695
Total Non-current Liabilities (3)	57.395	30.876	26.695
(4) Current Liabilities
(a) Short term borrowings	1768.964	1655.905	1441.051
(b) Trade payables	1136.963	734.792	1222.398
(c) Other current liabilities	54.897	46.712	59.407
(d) Short-term provisions	10.078	11.368	21.372
Total Current Liabilities (4)	2970.902	2448.777	2744.228
TOTAL	6316.801	6139.519	7224.042
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	132.439	87.353	60.288
(ii) Intangible Assets	634.538	532.161	376.991
(iii) Capital work-in-progress	2.131	0.000	0.000
(iv) Intangible assets under development	717.664	759.860	653.126
(b) Non-current Investments	45.672	587.546	629.782
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	486.332	460.128	453.166
(e) Other Non-current assets	8.558	1.608	15.318
Total Non-Current Assets	2027.334	2428.656	2188.671
(2) Current assets
(a) Current investments	0.000	158.567	538.888
(b) Inventories	2007.210	2029.824	1855.508
(c) Trade receivables	1263.733	740.931	1894.119
(d) Cash and cash equivalents	554.197	256.877	371.612
(e) Short-term loans and advances	442.686	499.379	371.155
(f) Other current assets	21.641	25.285	4.089
Total Current Assets	4289.467	3710.863	5035.371
TOTAL	6316.801	6139.519	7224.042

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Income	2749.808	1806.863	3977.966
	Other Income	128.616	186.625	112.697
	TOTAL (A)	2878.424	1993.488	4090.663
Less	EXPENSES
	Cost of Materials Consumed	1364.123	990.666	2069.986
	Purchases of Stock-in-Trade	0.000	0.000	0.000
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	0.000	0.000	0.000
	Employees benefits expense	416.361	513.470	542.032
	Exceptional Items	541.874	0.000	0.000
	Other Expenses	507.003	466.190	676.172
	TOTAL (B)	2829.361	1970.326	3288.190
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	49.063	23.162	802.473
Less	FINANCIAL EXPENSES (D)	334.469	373.270	280.864
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	(285.406)	(350.108)	521.609
Less/ Add	DEPRECIATION/ AMORTISATION (F)	480.286	443.144	304.757
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	(765.692)	(793.252)	216.852
Less	TAX (H)	0.000	0.000	32.500
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	(765.692)	(793.252)	184.352
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	939.552	515.552	546.209
	Earning on Royalty	20.927	16.404	86.381
	Earning on Dividend	0.000	98.059	0.034
	Other Earning	60.081	43.449	111.334
	TOTAL EARNINGS	1020.560	673.464	743.958
	IMPORTS
	Raw Materials	938.394	937.204	1867.126
	Components and Stores parts	0.000	0.000	0.000
	Capital Goods	70.694	75.089	31.248
	TOTAL IMPORTS	1009.088	1012.293	1898.374
	Earnings / (Loss) Per Share (Rs.)	(12.44)	(12.89)	3.00

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(26.60)	(39.79)	4.51
Net Profit Margin (PBT/Sales)	(%)	(27.85)	(43.90)	5.45
Return on Total Assets (PBT/Total Assets}	(%)	(13.79)	(16.55)	3.65
Return on Investment (ROI) (PBT/Networth)		(0.23)	(0.22)	0.05
Debt Equity Ratio (Total Debt /Networth)		0.55	0.45	0.32
Current Ratio (Current Asset/Current Liability)		1.44	1.52	1.83

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	615.462	615.462	1009.792
Reserves & Surplus	3837.657	3044.404	2278.712
Net worth	4453.119	3659.866	3288.504
long-term borrowings	0.000	0.000	30.000
Short term borrowings	1441.051	1655.905	1768.964
Total borrowings	1441.051	1655.905	1798.964
Debt/Equity ratio	0.324	0.452	0.547

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)
Income	3977.966	1806.863	2749.808
		(54.578)	52.187

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Income	3977.966	1806.863	2749.808
Profit/ loss After Tax	184.352	(793.252)	(765.692)
	4.63%	(43.90%)	(27.85%)

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	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	Yes
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	Yes

LITIGATION DETAILS

CASE PENDING

High Court of Karnataka -Bangalore Bench

ITA 351/2013

Petitioner/Appnt. Name	COMMISSIONER OF INCOME TAX-III		Respondent/Defnt. Name	M/S TEJAS NETWORKS LTD.,
Petnr./Appnt. Advocate	SANMATHI E I		Respnt./Defnt. Advocate	M/S KING & PARTRIDGE
Date Filed	09/07/2013	Classification	District	Bangalore City

Please Note Down the Group No:351-352

Stage	HEARING	Last Posted For	FINAL HEARING
Last Action Taken	ADJOURNED	Last Date of Action	28/02/2014	Next Hearing Date	21/04/2014
Latest Order
Before Hon'ble Judge/s	DILIP B.BHOSALE B.MANOHAR

Connected to

ITA 353/2013

Lower Court Details [Appeal from below case.]

Case No	Court Name	Disposal Dt
ITA 1080/2011	INCOME TAX APPELLATE TRIBUNAL BANGALORE	15/02/2013
ITA 1042/2011	INCOME TAX APPELLATE TRIBUNAL BANGALORE	15/02/2013

BUSINESS PERFORMANCE / FINANCIAL REVIEW

Standalone Financial

The total revenues of the Company on standalone basis stood at Rs. 2922.100 Millions for the current financial year. The earnings before tax of the company had remained at the same level at a loss of Rs. 765.600 Millions due to the fall in the revenues during the current financial year as well.

AWARDS AND RECOGNITION

During the period, the company has received the following awards and recognitions.

· Won Aegis Graham Bell Award for innovation in green telecom.

· Mr. Sanjay Nayak, CEO & MD won Sarabhai Award from IESA.

Won EISA Technovation Award for 2012.

· Won Govt. of India’s TCOE Award of Excellence in Telecom Products.

CORPORATE INFORMATION

Subject is a leading enabler of high-performance telecom infrastructure by developing innovative carrier class communications equipment. Tejas pioneered the development of a strong portfolio of packet-aware optical transport products based on SDH/SONET and has been credited with one of the first commercial deployments of Ethernet-over-SDH/SONET. Tejas has developed products that transition legacy networks into intelligent, ethernet-enabled networks, which can be used to offer many new revenue-generating, data services.

FIXED ASSTES:

· Lease hold improvements

· Furniture and fixtures

· Networking equipment

· Computing equipment

· Lab equipment

· Office equipment

· Software Over the license period

· Vehicles

· Software

· Car Lease

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.60.44
UK Pound	1	Rs.98.64
Euro	1	Rs.78.20

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	DIV
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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		46

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.