MIRA INFORM REPORT

Report No. :	324781
Report Date :	02.06.2015

IDENTIFICATION DETAILS

Name :	ECO TECH SOFTWARE PRIVATE LIMITED
Registered Office :	G-42, First Avenue, Anna Nagar East, Chennai – 600102, Tamilnadu
Tel. No.:	91-44-26631206
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	03.03.1998
Com. Reg. No.:	18-040015
Capital Investment / Paid-up Capital :	Rs.5.000 Million
CIN No.: [Company Identification No.]	U72300TN1998PTC040015
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	CHEE02250D
PAN No.: [Permanent Account No.]	AAACE6684R
Legal Form :	Private Limited Liability Company
Line of Business :	The subject has engage in business of sales of software and related services.
No. of Employees :	60 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 10000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating takes into consideration, company’s moderate financial risk profile marked by low reserves and huge external borrowing taken by the company, which acts as threatening to liquidity position of the company. However, management has reported healthy profit margin during FY2014. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. Subject can be considered for business dealings with some caution.

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, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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.

INFORMATION PARTED BY

Name :	Mr. Velu
Designation :	Director
Contact No.:	91-9840098427
Date :	30.05.2015

LOCATIONS

Registered Office :	G-42, First Avenue, Anna Nagar East, Chennai – 600102, Tamilnadu, India
Tel. No.:	91-44-26631206
Mobile No.:	91-9840098427 (Mr. Velu)
Fax No.:	Not Available
E-Mail :	velu@stageindia.net
Website :	www.stageindia.net
Location :	Owned

DIRECTORS

As on 02.07.2014

Name :	A.P.S. Velu
Designation :	Director
Address :	G-42, First Avenue, Anna Nagar East, Chennai – 600102, Tamilnadu, India
Date of Birth/Age :	29.07.1961
Date of Appointment :	03.03.1998
DIN No.:	00880617
Name :	S.V. Rajalakshmi
Designation :	Director
Address :	G-42, First Avenue, Anna Nagar East, Chennai – 600102, Tamilnadu, India
Date of Birth/Age :	24.04.1966
Date of Appointment :	03.03.1998
DIN No.:	01785356

MAJOR SHAREHOLDERS

As on 02.07.2014

Names of Shareholders	No. of Shares
A.P.S. Velu	400000
S.V. Rajalakshmi	100000
Total	500000

As on 02.07.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	The subject has engage in business of sales of software and related services.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Software Development
Countries :	· Bangladesh · Indonesia
Imports :	Not Available
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

Wholesaler and Retailer

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

No. of Employees :

60 (Approximately)

Bankers :

Banker Name	Deccan Bank
Branch Address	Chennai, Tamilnadu, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Deutsche Bank AG, Kothari Building, 114 M. G. Road, Nungambakkam, Chennai – 600034, Tamilnadu, India

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
From Deutsche Bank	20.813	17.000
SHORT TERM BORROWING
Cash Credit From Deutsche Bank	13.396	0.000
Total	34.209	17.000

Auditors :
Name :	Sukumar and Associates Chartered Accountants
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital:

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 Million

FINANCIAL DATA

[all figures are in Rupees Million]

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	5.000	1.920	1.920
(b) Reserves & Surplus	0.058	-2.831	-3.317
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	3.080	1.580
Total Shareholders’ Funds (1) + (2)	5.058	2.169	0.183
(3) Non-Current Liabilities
(a) long-term borrowings	23.023	17.000	17.065
(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	0.000	0.000	0.000
Total Non-current Liabilities (3)	23.023	17.000	17.065
(4) Current Liabilities
(a) Short term borrowings	14.246	5.894	6.353
(b) Trade payables	1.645	0.791	0.189
(c) Other current liabilities	8.870	14.001	9.608
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	24.761	20.686	16.150
TOTAL	52.842	39.855	33.398
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	6.579	6.382	5.996
(ii) Intangible Assets	0.265	0.038	0.022
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	4.549	6.330	3.176
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.414	0.613	0.671
(d) Long-term Loan and Advances	5.052	4.252	4.731
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	16.859	17.615	14.596
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	0.000	0.000	0.000
(c) Trade receivables	26.368	15.730	12.746
(d) Cash and cash equivalents	0.127	0.393	0.316
(e) Short-term loans and advances	9.488	6.117	5.740
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	35.983	22.240	18.802
TOTAL	52.842	39.855	33.398

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income
	Other Income
	TOTAL	41.636	26.175	25.023
Less	EXPENSES	31.237	20.049	18.002
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	10.399	6.126	7.021
Less	FINANCIAL EXPENSES	5.419	4.431	4.955
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	4.980	1.695	2.066
Less/ Add	DEPRECIATION/ AMORTISATION	1.232	1.152	0.989
	PROFIT/ (LOSS) BEFORE TAX	3.748	0.543	1.077
Less	TAX	0.858	0.057	(0.161)
	PROFIT/ (LOSS) AFTER TAX	2.890	0.486	1.238
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD (K)	(2.831)	(3.317)	(4.555)
	Balance Carried to the B/S	0.059	(2.831)	(3.317)
	Earnings / (Loss) Per Share (Rs.)	5.78	0.972	2.476

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	0.632	0.000	0.000
Cash generated from operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Total Income)	(%)	6.94	1.86	4.95
Return on Total Assets (PBT/Total Assets}	(%)	7.83	1.65	3.64
Return on Investment (ROI) (PBT/Networth)		0.74	0.25	5.89
Debt Equity Ratio (Total Debt/Networth)		7.49	10.56	127.97
Current Ratio (Current Asset/Current Liability)		1.45	1.08	1.16

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	1.920	1.920	5.000
Reserves & Surplus	(3.317)	(2.831)	0.058
Share Application money pending allotment	1.580	3.080	0.000
Net worth	0.183	2.169	5.058
long-term borrowings	17.065	17.000	23.023
Short term borrowings	6.353	5.894	14.246
Current Maturities of Long Term Debt	0.000	0.000	0.632
Total borrowings	23.418	22.894	37.901
Debt/Equity ratio	127.967	10.555	7.493

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Total Income	25.023	26.175	41.636
		4.604	59.068

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Total Income	25.023	26.175	41.636
Profit	1.238	0.486	2.890
	4.95%	1.86%	6.94%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	----------------------
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	No
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	No
22	Conduct of the banking account	----------------------
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	----------------------
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	----------------------
33	Market information	----------------------
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

Note:

Registered address has been shifted from the G-124/1, Anna Nagar East, Chennai – 600102, Tamilnadu, India to the present address w.e.f. 01.02.2008.

OPERATIONS

During the year the company sales and other incomes were at Rs.41.636 Million as compared to Rs.26.175 Million in the previous year. The Company has made a profit of Rs.3.747 Million during the current year as compared to a profit of Rs.0.543 Million in the previous year.

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
From Other Parties	2.210	0.000
SHORT TERM BORROWING
From Other Parties	0.850	5.894
Total	3.060	5.894

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10439800	30/09/2014 *	16,000,000.00	DEUTSCHE BANK AG	4-4A, WESTERN TOWER, SUNNY SIDE, SHAFI MOHAMMAD ROAD, THOUSAND LIGHTS, CHENNAI - 600006, TamilNadu, INDIA	C30724058
2	90296487	24/12/2003 *	1,300,000.00	BHARAT OVERSEAS BANK LIMITED	64; ARMENIAN STREET, GEORGE TOWN, CHENNAI - 600001, TamilNadu, INDIA	-

* Date of charge modification

FIXED ASSETS

· Building

· Computer

· Electrical Fittings

· Furniture

· Office Equipment’s

· Vehicle

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.63.60
UK Pound	1	Rs.97.26
Euro	1	Rs.69.62

INFORMATION DETAILS

Information Gathered by :	RKH
Analysis Done by :	SAN
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		29

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.