MIRA INFORM REPORT

Report No. :	309103
Report Date :	23.02.2015

IDENTIFICATION DETAILS

Name :	QLOGIC (INDIA) PRIVATE LIMITED
Registered Office :	MCCIA Trade Towers, B-301 to B-306, Senapati Bapat Road, Pune - 411016, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	07.11.2007
Com. Reg. No.:	11-130972
Capital Investment / Paid-up Capital :	Rs. 0.211 Million
CIN No.: [Company Identification No.]	U31900PN2007PTC130972
TAN No.: [Tax Deduction & Collection Account No.]	PNEQ00149C
PAN No.: [Permanent Account No.]	AAACQ1664K
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged for carrying out research and development activities for high performance storage networking, server networking, data networking and converged networking infrastructure solutions.
No. of Employees :	Information declined by management

RATING & COMMENTS

MIRA’s Rating :

A (58)

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of “NetXen Inc., USA”. It is an established company having fine track record. The rating takes into consideration good networth position backed by a debt free balance sheet of the company. Further, profit margin of the company is decent as well during FY 14. 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.

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 DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-20-30255900)

LOCATIONS

Registered Office :	MCCIA Trade Towers, B-301 to B-306, Senapati Bapat Road, Pune - 411016, Maharashtra, India
Tel. No.:	91-20-30255900
Fax No.:	91-20-30220070
E-Mail :	charu.ambekar@qlogic.com parag.mehta@qlogic.com vivek.bandla@glogic.com ashutosh.parasnis@qlogic.com manish.karne@qlogic.com
Website :	www.qlogic.com

DIRECTORS

As on 30.09.2014

Name :	Mr. Ashutosh Shreesh Parasnis
Designation :	Managing director
Address :	A-7, Ivy Glen, Marigold, Kalyani Nagar, Pune - 411014, Maharashtra, India
Date of Birth/Age :	12.12.1956
Qualification :	B.S. from Bombay University and an M.B.A. from Symbiosis.
Experience :	30 Years
Date of Appointment :	20.02.2012
DIN No.:	00322320
Name :	Charudatta Yashwant Ambekar
Designation :	Director
Address :	16/7, A2, Yogiraj Co-Operative Housing Society, Erandavana, Karve Road, Pune - 411004, Maharashtra, India
Date of Birth/Age :	24.11.1966
Date of Appointment :	08.08.2014
DIN No.:	06939374

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Names of Shareholders	No. of Shares
Qlogic International Holdings Inc, USA	10001
Netxen Inc, USA	11108
Qlogic Corporation, USA	1
Total	21110

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
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged for carrying out research and development activities for high performance storage networking, server networking, data networking and converged networking infrastructure solutions.
Brand Names :	--
Agencies Held :	--
Exports :	--
Imports :	--
Terms :	--

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (with Designation):	Not Divulged
Contact Number:	Not Divulged
Since How Long Known:	Not Divulged
Maximum Limit Dealt:	Not Divulged
Experience :	Not Divulged
Remarks :	Not Divulged

Customers :

Reference:	Not Divulged
Name of the Person (with Designation):	Not Divulged
Contact Number:	Not Divulged
Since How Long Known:	Not Divulged
Maximum Limit Dealt:	Not Divulged
Experience :	Not Divulged
Remarks :	Not Divulged

No. of Employees :

Information declined by management

Bankers :

Bank Name:	Not Divulged
Branch:	Not Divulged
Name of the Person (with Designation):	Not Divulged
Contact Number:	Not Divulged
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks: Not Divulged

Facilities :

--

Banking Relations :	--
Auditors :
Name :	BBSR and Company Chartered Accountants
Address :	1^st Floor Lodha Excelus, Apollo Mills Compound, N M Joshi Marg, Mahalaxmi, Mumbai – 400011, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAKFB4397F
Memberships :	--
Collaborators :	--
Holding Company :	NetXen Inc., USA
Ultimate Holding Company :	Qlogic Corporation, USA
Fellow Subsidiary :	Qlogic International Holdings Inc, USA

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
550,000	Equity Shares	Rs.10/- each	Rs. 5.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21,110	Equity Shares	Rs.10/- each	Rs. 0.211 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	0.211	0.211	0.211
(b) Reserves & Surplus	339.546	253.696	175.432
(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)	339.757	253.907	175.643
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	34.830	24.308	11.476
(c) Other long term liabilities	0.000	5.173	7.982
(d) long-term provisions	44.543	35.890	24.207
Total Non-current Liabilities (3)	79.373	65.371	43.665
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	31.995	29.714	56.965
(c) Other current liabilities	167.547	155.845	138.891
(d) Short-term provisions	15.976	31.110	9.954
Total Current Liabilities (4)	215.518	216.669	205.810
TOTAL	634.648	535.947	425.118
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	409.336	365.159	239.862
(ii) Intangible Assets	0.968	1.523	0.992
(iii) Capital work-in-progress	5.430	4.714	6.910
(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	60.227	75.222	59.799
(e) Other Non-current assets	2.255	2.483	2.401
Total Non-Current Assets	478.216	449.101	309.964
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	0.000	0.000	0.000
(c) Trade receivables	3.018	0.000	37.686
(d) Cash and cash equivalents	86.457	63.653	48.365
(e) Short-term loans and advances	63.915	23.193	27.640
(f) Other current assets	3.042	0.000	1.463
Total Current Assets	156.432	86.846	115.154
TOTAL	634.648	535.947	425.118

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		TOTAL	998.152	914.453	766.201
Less	EXPENSES
		TOTAL	637.989	625.892	559.179
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		360.163	288.561	207.022
Less/ Add	DEPRECIATION/ AMORTISATION		231.039	170.252	111.879
	PROFIT/ (LOSS) BEFORE TAX		129.124	118.309	95.143
Less	TAX		43.275	40.044	31.666
	PROFIT/ (LOSS) AFTER TAX		85.849	78.265	63.477
	EARNINGS IN FOREIGN CURRENCY
		Service Income	995.899	911.654	764.875
	TOTAL EARNINGS		995.899	911.654	764.875
	IMPORTS
		Capital Goods	229.968	253.769	NA
	TOTAL IMPORTS
	Earnings / (Loss) Per Share (Rs.)		4066.75	3707.48	36232.82

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	20.52	22.27	22.75
Return on Investment (ROI) (PBT/Networth)		0.38	0.47	0.54
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		0.73	0.40	0.56

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	0.211	0.211	0.211
Reserves & Surplus	175.432	253.696	339.546
Net worth	175.643	253.907	339.757
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	766.201	914.453	998.152
		19.349	9.153

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	766.201	914.453	998.152
Profit	63.477	78.265	85.849
	8.28%	8.56%	8.60%

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	No
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

CURRENT MATURITIES OF LONG TERM DEBTS: NOT AVAILABLE

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

CHANGE OF ADDRESS

The registered office of the company has been shifted from MCCIA Trade Towers, A 301-304, 3^rd Floor, F.P, 403 A/2, Senapati Bapat Road, Pune-411016, Maharashtra, India to the present address w.e.f. 01.03.2010.

BACKGROUND

Subject was incorporated on 7 November, 2007. With effect from 3 April 2008, it became a wholly owned subsidiary of QLogic international Holdings lnc with QLogic Corporation as its ultimate holding company.

The Company has been formed for carrying out research and development activities for its ultimate holding company.

QLogic Corporation, the Ultimate Holding Company, is based in the United States of America and is a supplier of high performance storage networking, server networking, data networking and converged networking infrastructure solutions, which are sold primarily to original equipment manufacturer and distributor.

In accordance with the Scheme of Amalgamation approved by the Honourable High Court of Bombay on 15 October 2010, Netxen Systems India Private Limited (hereinafter referred to as ‘erstwhile Netxen Systems India Private limited ‘or’ Transferor Company) was amalgamated with the Company with effect from 1 October 2009. Pursuant to the scheme 11,110 equity shares of Rs. 10 each were issued as fully paid-up equity shares without payment being received in cash to the shareholders of the transferor company, resulting In Netxen Inc to become the holding company of Subject. Netxen Inc. is a wholly owned subsidiary of the ultimate holding company QLogic Corporation.

The erstwhile Netxen systems India Private Limited had facilities located at pune, Maharashtra and Bangalore, Karnataka and was engaged in carrying out! research and development activities, Consequent to the amalgamation. this business is being carried on by the Company w.e.f. 1 October 2009.

The Company has facilities located at Pune, Maharashtra and Bangalore, Karnataka.

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
Gurantees given by bankers on behalf of the company	1.780	1.780

FIXED ASSETS

Tangible Assets

· Computer

· Office Equipment

· Leasehold Improvement

Intangible Asset

· Computer Software

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.62.26
UK Pound	1	Rs.96.01
Euro	1	Rs.70.72

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	SUM
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	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	7
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	8
--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	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		58

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.