MIRA INFORM REPORT

Report No. :	314128
Report Date :	26.03.2015

IDENTIFICATION DETAILS

Name :	CISCO SYSTEMS (INDIA) PRIVATE LIMITED
Registered Office :	No. 11, Divyasree Chambers, B Wing, O Shaugnessy Road, Akkithimanahalli, Bangalore – 560027, Karnataka
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	29.12.1995
Com. Reg. No.:	08-019505
Capital Investment / Paid-up Capital :	Rs. 343.301 Millions
CIN No.: [Company Identification No.]	U31909KA1995PTC019505
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCC0258Q
Legal Form :	Private Limited Liability Company
Line of Business :	Providing Marketing and Support Activities.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

A (63)

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 Cisco Systems Management BV, The Netherland [CSMBV]. It is an established company having good track record. Financial position of the company is sound. Fundamentals of the company are strong and healthy. 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.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE

[CONTACT NO.: 91-80-41593000]

LOCATIONS

Registered Office :	No. 11, Divyasree Chambers, B Wing, O Shaugnessy Road, Akkithimanahalli, Bangalore – 560027, Karnataka, India
Tel. No.:	91-80-41593000
Fax No.:	91-80-22230167
E-Mail :	prathap.nagaraj@bgl.kochhar.com
Website :	http://www.cisco.com
Sales Offices :	Located at: · Bangalore  · Chennai · New Delhi  · Kolkata · Mumbai · Gurgaon · Pune  · Hyderabad · Colombo
R&D Offices :	Located at: · 133, Kadubeesanhalli, Panatoor Gram Panchayat, Outer Ring Road, Bangalore – 560037, Karnataka, India · SEZ Unit, Cessna Business Park, Kadubeesanahalli Village, Varthur Hobli, Sarjapur - Marathahalli Outer Ring Road, Bangalore – 560087, Karnataka, India · Level 1, Block B, Esquire Center 9, M. G. Road, Bangalore – 560001, Karnataka, India

DIRECTORS

AS ON 30.09.2014

Name :	Mr. Dinesh Ramkrishin Malkani
Designation :	Managing director
Address :	Villa B8 Epsilon, Yemlur Village Main Road, Off Old Airport Road, Bangalore – 560037, Karnataka, India
Date of Birth/Age :	14.10.1970
Date of Appointment :	07.08.2013
PAN No.:	AMIPM4210G
DIN No.:	06621722
Name :	Gorman Thomas Mark
Designation :	Director
Address :	60, Raush ST, Sam Francisco, California 94103, USA
Date of Birth/Age :	04.01.1961
Date of Appointment :	30.06.2007
DIN No.:	01281745
Name :	Evan Barry Sloves
Designation :	Director
Address :	621, 29^th Avenue San Mateo California 94403 United State of America
Date of Birth/Age :	10.06.1970
Date of Appointment :	07.07.2007
DIN No.:	01882600

KEY EXECUTIVES

Name :	Mrs. Anita Nair
Designation :	Secretary
Address :	1-D, 703, Akme Harmony Apartment, Sarjapur, Outer Ring Road, Bangalore - 560103, Karnataka, India
Date of Birth/Age :	07.12.1974
Date of Appointment :	12.11.2008
PAN No.:	AJJPK5222A

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Equity Shareholders	No. of Shares
Cisco Systems Management B.V., The Netherlands	992877
CSI Mauritius Inc, Mauritius	312837

Names of Preference Shareholder	No. of Shares
Cisco Systems Management B.V., The Netherlands	33000000
Total	33000000

AS ON 30.09.2014

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Providing Marketing and Support Activities.

Products/ Services :

ITC Code No.	Product Descriptions
99611840	Software

Brand Names :

“Cisco”

Agencies Held :

--

Exports :

Products :

Not Divulged

Countries :

Not Divulged

Imports :

Products :

Not Divulged

Countries :

Not Divulged

Terms :

Selling :

Not Divulged

Purchasing :

Not Divulged

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

Not Divulged

Bankers :

Bank Name:	Not Divulged
Branch:	Not Divulged
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 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 :	Lovelock and Lewes Chartered Accountants
Address :	5th Floor, Tower-D, The Millenia 1 and 2, Murphy Road, Ulsoor, Bangalore, Karnataka, India
Income-tax PAN of auditor or auditor's firm :	AABFL5878L
Ultimate holding company :	Cisco Systems Inc., USA (CSI)
Holding company :	Cisco Systems Management BV, The Netherlands (CSMBV)
Fellow Subsidiary company :	· Cisco Technology Inc · Cisco Development India Private Limited [U72200KA2007PTC043451] · Cisco Systems (Scotland) Limited · SA United States · Navini Networks Technologies Private Limited (NNTPL) · Starent Networks, Corporation · Starent Networks India Private Limited · Starent Networks India Sales and Services Private Limited · Cisco Commerce India Private Limited (CCIPL) · Newscale Software Private Limited · BroadHop India Private Limited · Cisco Systems Australia Pty Limited · Cisco Servicos do Brasil Ltda · Cisco Systems (Thailand) Limited · Cisco Systems Services BV, India Branch · Cisco Systems South Africa Pty Limited · Cisco Systems (Puerto Rico) Corp · Cisco Systems GmbH · Cisco Systems Czech Republic S.R.O. · Cisco Systems International B.B. Saudi Arabia Branch · Cisco Systems (Korea) Limited · Cisco Systems (USA) Pte Limited (CSPLS) · Cisco Systems (Malaysia) Sdn, Bhd · Cisco Systems Limited, United Kingdom · Cisco Systems Belgium Sprl · Cisco Systems de Mexico, S.A.de C.V. · Cisco Systems (HK) Limited · Cisco Systems Inc., USA (CSI) · Cisco Systems International · B.V. Dubai Internet City Branch · Cisco Systems Norway AS · Philippines Branch of CS Management BV · Cisco Systems Poland SP zoo · Cisco Systems International BV, Netherland (CSIBV) · Cisco Photonics Italy S.r.l. · Cisco Systems Management BV, Srilanka Representative office · Airespace Wireless Networks Private Limited · Topspin Communications (India) Private Limited, India (TCTIPL) · Cisco System Capital (India) Private Limited, India (CSCPL) · IronPort LLC
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· Cisco Systems India Gratuity Fund Trust · Cisco Systems India Employees Provident Fund Trust
Parties under common control with whom transactions have taken place during the year :	· Cisco International Limited Singapore Branch · Greenfield Networks Technologies Private Limited, India (GNTPL) · Cisco Services Malaysia SDN BHD · Tandberg Technology India Private Limited · Tandberg India Private Limited · Cisco Services (Hong Kong) Limited · Cisco Video Technologies India Private Limited · Webex Technologies India Private Limited, India · Pari Network India Private Limited

CAPITAL STRUCTURE

AFTER 30.09.2014

Authorised Capital : Rs. 805.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 343.301 Millions

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
2,500,000	Equity Shares	Rs. 10/- each	Rs. 25.000 Millions
49,000,000	Preference Shares	Rs. 10/- each	Rs. 490.000 Millions
	Total		Rs. 515.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,330,104	Equity Shares	Rs. 10/- each	Rs. 13.301 Millions
33,000,000	Preference Shares	Rs. 10/- each	Rs. 330.000 Millions
	Total		Rs. 343.301 Millions

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	343.300	343.300	343.300
(b) Reserves & Surplus	22941.250	18961.180	15860.190
(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)	23284.550	19304.480	16203.490
(3) Non-Current Liabilities
(a) Long-term borrowings	620.130	460.710	277.840
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	8413.640	7363.500	5526.980
(d) long-term provisions	1216.220	1112.690	803.410
Total Non-current Liabilities (3)	10249.990	8936.900	6608.230
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	1373.470	1388.560	7779.970
(c) Other current liabilities	2721.300	2105.250	1217.730
(d) Short-term provisions	491.020	586.110	543.140
Total Current Liabilities (4)	4585.790	4079.920	9540.840
TOTAL	38120.330	32321.300	32352.560
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	10719.330	10136.610	7935.270
(ii) Intangible Assets	80.210	29.340	26.240
(iii) Capital work-in-progress	2199.700	644.230	1994.620
(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)	5430.940	4482.510	3068.790
(d) Long-term Loan and Advances	4155.650	3973.100	3012.470
(e) Other Non-current assets	0.000	0.000	1.990
Total Non-Current Assets	22585.830	19265.790	16039.380
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	0.000	0.000	0.000
(c) Trade receivables	14596.140	11577.340	9705.370
(d) Cash and cash equivalents	307.310	791.200	5634.490
(e) Short-term loans and advances	583.550	607.900	904.350
(f) Other current assets	47.500	79.070	68.970
Total Current Assets	15534.500	13055.510	16313.180
TOTAL	38120.330	32321.300	32352.560

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		TOTAL	45654.450	39030.260	32183.500
Less	EXPENSES
		TOTAL	33677.480	29831.120	23558.090
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		11976.970	9199.140	8625.410
Less/ Add	DEPRECIATION/ AMORTISATION		5831.520	5141.120	4412.200
	PROFIT BEFORE TAX		6145.450	4058.020	4213.210
Less	TAX		2165.380	957.030	1434.990
	PROFIT AFTER TAX		3980.070	3100.990	2778.220
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		18961.180	15860.190	13081.970
	BALANCE CARRIED TO THE B/S		22941.250	18961.180	15860.190
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	44542.520	38307.680	30449.040
	Earnings Per Share (Rs.)		115.94	90.33	80.93

34,330,104

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	20.16	14.92	15.44
Return on Investment (ROI) (PBT/Networth)		0.26	0.21	0.26
Debt Equity Ratio (Total Debt/Networth)		0.03	0.02	0.02
Current Ratio (Current Asset/Current Liability)		3.39	3.20	1.71

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particulars	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	343.300	343.300	343.300
Reserves & Surplus	15860.190	18961.180	22941.250
Net worth	16203.490	19304.480	23284.550
Long-term borrowings	277.840	460.710	620.130
Short term borrowings	0.000	0.000	0.000
Total borrowings	277.840	460.710	620.130
Debt/Equity ratio	0.017	0.024	0.027

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	32183.500	39030.260	45654.450
		21.274	16.972

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	32183.500	39030.260	45654.450
Profit	2778.220	3100.990	3980.070
	8.63%	7.95%	8.72%

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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG-TERM BORROWINGS
Long-term maturities of finance lease obligations	620.130	460.710
Total	620.130	460.710

GENERAL INFORMATION

Subject incorporated on December 29, 1995 under the Companies Act, 1956 of India is a subsidiary of Cisco Systems Management BV, The Netherlands, to undertake research and development activities primarily in software development and testing.

The Company's research and development center for software development is registered under Software Technology Parks of India (STPI) scheme. On May 29, 1999, the Company took over the activities of Cisco Systems India Limited - India branch offices primarily for providing marketing and support activities for Cisco brand in India. During May 2000, the Company opened stock and sales depots at various locations in India primarily to support the product replacements of Cisco products in India which has since been suspended with effect from July 2009. On August 13, 2007, the Company set up a Special Economic Zone (SEZ), where Research and Development activities and support services to Cisco group companies are undertaken.

FIXED ASSETS:

· Land

· Buildings

· Plant and equipment

· Other plant and equipment

· Furniture and fixtures

· Vehicles

· Motor vehicles

· Office equipment

· Computer equipments

· Other equipments

· Leasehold improvements

· Goodwill

· 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. 62.34
UK Pound	1	Rs. 92.64
Euro	1	Rs. 68.12

INFORMATION DETAILS

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILITY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--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		63

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.