MIRA INFORM REPORT

Report No. :	307548
Report Date :	18.02.2015

IDENTIFICATION DETAILS

Name :	CERAGON NETWORKS INDIA PRIVATE LIMITED
Registered Office :	C/o The Genesis, A-32, First Floor, Mohan Co-Operative Industrial Estate, Mathura Road, New Delhi – 110 044
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	15.01.2003
Com. Reg. No.:	55-118490
Capital Investment / Paid-up Capital :	Rs.0.100 million
CIN No.: [Company Identification No.]	U51909DL2003PTC118490
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 in the business of marketing, erectioning and installation of Telecom Equipments.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 618000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having good track record. Financial position of the company is sound. 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

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.

LOCATIONS

Registered Office :	C/o The Genesis, A-32, First Floor, Mohan Co-Operative Industrial Estate, Mathura Road, New Delhi – 110 044
Tel. No. :	91-11-66244700
Fax No. :	91-11-66244704
E-Mail :	ramP@ceragon.com
Website :	www.ceragon.com

DIRECTORS

AS ON 30.09.2014

Name :

Ira Palti

Designation :

Director

Address :

HaErez Number 21, Karmei Yosef, 99797, Israel

Date of Birth/Age :

14.09.1957

Date of Appointment :

01.08.2005

DIN No. :

00927899

Name :

Mr. Ram Prakash Tripathi

Designation :

Managing Director

Address :

A-102, II Floor, Raju Park, Adjacent Sainik Farm, New Delhi – 110 062, India

Date of Birth/Age :

15.10.1966

Qualification :

Bachelor of Engineering

Experience :

24 Years

Date of Appointment :

15.01.2006

DIN No. :

01005344

Name :

Doron Ovadia Arazi

Designation :

Additional Director

Address :

14, Arthur Rubinstein St., Tel Aviv, 69671, Israel

Date of Appointment :

16.11.2014

DIN No. :

02946607

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	U51909DL2004PTC129912	VERINT SYSTEMS (INDIA) PRIVATE LIMITED	Director	14/10/2004	14/10/2004	25/09/2007	Active	NO
2	U72200KA2004PTC033348	WITNESS SYSTEMS SOFTWARE (INDIA) PRIVATE LIMITED	Director	25/05/2007	25/05/2007	28/06/2007	Active	NO
3	U51909DL2003PTC118490	CERAGON NETWORKS INDIA PRIVATE LIMITED	Additional director	16/11/2014	16/11/2014	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares	Percentage of holding
Ceragon Networks Limited, Israel	9900	99.00
Ceragon Networks UK Limited, United Kingdom	100	1.00
Total	10000	100.00

AS ON 30.09.2014

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

BUSINESS DETAILS

Line of Business :	Subject is engaged in the business of marketing, erectioning and installation of Telecom Equipments.
Products :	Telecom Equipments
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :	Not Available

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Experience :	Not Available
Maximum Limit Dealt :	Not Available

Customers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Experience :	Not Available
Maximum Limit Dealt :	Not Available

No. of Employees :

Not Available

Bankers :

Banker Name	HDFC Bank Limited
Branch Address	Not Available
Person Name (With Designation)	Not Available
Contact Number	Not Available
Name of Account Holder	Not Available
Account Number	Not Available
Account Since (Date/Year of Account Opening)	Not Available
Average Balance Maintained (If Possible)	Not Available
Credit Facilities Enjoyed (If any)	Not Available
Account Operation	Not Available
Remarks (If any)	Not Available

The Hongkong and Shanghai Banking Corporation Limited

Banking Relations :	--
Auditors :
Name :	A.K. Batra and Associates Chartered Accountants
Address :	A-36, First Floor, Rajouri Garden, New Delhi – 110 027, India
Tel. No. :	91-11-45565338/ 45134430
PAN No.:	AAAFA7179A
Memberships :	Not Available
Collaborators :	Not Available
Holding Company :	Ceragon Networks Limited, Israel

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.10/- each	Rs.0.500 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs.0.100 million

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	0.100	0.100	0.100
(b) Reserves & Surplus	216.240	187.388	150.934
(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)	216.340	187.488	151.034
(3) Non-Current Liabilities
(a) Long-term borrowings	0.000	0.000	0.000
(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	3.788	2.870	0.000
Total Non-current Liabilities (3)	3.788	2.870	0.000
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	149.736	200.889	168.295
(c) Other current liabilities	71.681	20.874	15.193
(d) Short-term provisions	0.077	0.072	26.499
Total Current Liabilities (4)	221.494	221.835	209.987
TOTAL	441.622	412.193	361.021
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	28.181	26.040	22.429
(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)	11.093	11.798	0.496
(d) Long-term Loan and Advances	0.290	0.290	0.000
(e) Other Non-current assets	0.100	0.000	0.000
Total Non-Current Assets	39.664	38.128	22.925
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	37.756	20.423	14.283
(c) Trade receivables	225.944	284.535	238.713
(d) Cash and cash equivalents	28.294	33.232	25.286
(e) Short-term loans and advances	109.880	35.814	47.298
(f) Other current assets	0.084	0.061	12.516
Total Current Assets	401.958	374.065	338.096
TOTAL	441.622	412.193	361.021

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from Operations	520.039	679.972	557.526
		Other Income	2.154	3.897	0.020
		TOTAL	522.193	683.869	557.546
Less	EXPENSES
		Cost of materials consumed	NA	281.578	197.717
		Employee benefit expense	NA	134.212	113.931
		Other expenses	NA	209.407	175.766
		TOTAL	NA	625.197	487.414
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		NA	58.672	70.132
Less/ Add	DEPRECIATION/ AMORTISATION		NA	4.835	4.769
	PROFIT/ (LOSS) BEFORE TAX		NA	53.837	65.363
Less	TAX		NA	17.383	20.746
	PROFIT/ (LOSS) AFTER TAX		28.852	36.454	44.617
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		187.388	150.934	106.317
	BALANCE CARRIED TO THE B/S		216.240	187.388	150.934
	EARNINGS IN FOREIGN CURRENCY
		Sale and Marketing Support Services – Ceragon Israel	132.059	107.840	86.180
	TOTAL EARNINGS		132.059	107.840	86.180
	Earnings / (Loss) Per Share (Rs.)		2885.21	3645.42	4461.69

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	5.55	5.36	8.00
Return on Total Assets (PBT/Total Assets}	(%)	NA	13.45	18.13
Return on Investment (ROI) (PBT/Networth)		NA	0.29	0.43
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.81	1.69	1.61

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	0.100	0.100	0.100
Reserves & Surplus	150.934	187.388	216.240
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	151.034	187.488	216.340
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
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from Operations	557.526	679.972	520.039
		21.962	(23.521)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from Operations	557.526	679.972	520.039
Profit	44.617	36.454	28.852
	8.00%	5.36%	5.55%

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	-----
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

Note:

The registered office of the company has been shifted from 1^st and 2^nd Floor, H-9/1, Block B-1, Mohan Co-Operative Industrial Estate, Mathura Road, New Delhi – 110 044 to the present address w.e.f. 02.12.2010.

FINANCIAL RESULTS:

The working results of the Company for the year ended 31^st March 2014 resulted in a Net Surplus of Rs.28.852 millions The accumulated surplus of Rs.216.240 millions is proposed to be carried forward to the next year.

REVIEW OF OPERATIONS AND FUTURE PROSPECTS:

The Company started its operation in India from August 2003. The Company's performance during the period has been satisfactory. The directors of your Company are optimistic that the results will continue to remain good in the years to come.

INDEX OF CHARGES

No Charges Exist for Company.

FIXED ASSETS

· Office Equipment

· Computers

· Furniture and Fixtures

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.62.20
UK Pound	1	Rs.95.99
Euro	1	Rs.71.00

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
-- PROFITABILITY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	5
--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		52

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.