1_MNCPL Information Memorandum 1.4

Mobile Net Connecxion Pvt Ltd

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Information Memorandum

MWH Advisory Services


MNCPL- Business SummaryMNCPL will be an online-mall for its customers, in areas of mobile/DTH/Data-card recharge, utility bills payment, travel (bus & hotels) and digital products.

MNCPL aims to deliver services to its customers through online portal and mobile apps.

MNCPL will acquire customers primarily through recharge product. MNCPL is building a robust process for activating the acquired customers and cross-selling high margin products to these customers.

MNCPL will give its customers a unique and best in class experience while using its services. MNCPL’s customer centricity and convenience of transaction will make the customer retain with it, thereby increasing its profitability.

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What Does the MNCPL Brand stand for?

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MNCPL is your friendly gateway to bring the world on your

handset MNCPL is a distribution B2B company and not technology company

MNCPL is agile, smart, witty & has futuristic technology powers

MNCPL leverages & synchronizing with fast moving wireless

communication Era & wants you to stay connected to the world all the

time

So MNCPL is always happy & excited to help you do fast & hassle-

free transactions online or Hand set


Team Profile

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Name Designation Department Experience Share Holdings

Kinnari C Patel Founder & CEO Chief Strategist 14 yrs+ B2C, B2B.Science graduate in 1998 from South

Gujarat University. She is also on board of M/s SS Global Solution Pvt Ltd, M/s MKAY Consultants Pvt Ltd, M/s

Reminder For Me

33.33%

Jayendrasinh Solanki CMD Customer Support

16 yrs+ customer care. He has been into family business of Salt PAN provider to GACL & IPCL, Retail Lending, Sand

dredging33.33%

Chaitanyasinh Rana Vice Chairman & Director Sales & Distribution

7 yrs+ Technology. Commerce Graduate in 2006 from Baroda University. EPC contractors, Diamond holder in premier MLM

business26.00%

Chetan Patel Associate Director Finance & Accounts

18 yrs+ Capital Markets. BE Electronics & MMS finance from JBIMS Mumbai. He has been part with HSBC, Motilal Oswal

and Sushil Finance in Portfolio Management services5.33%

Ankur Kumar Saigal Associate Director Technology 7 yrs+ IT -Project Manager in Mobile Enabled software

developments 2.00%


SWOT Analysis of MNCPL

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Strength Weakness 1 Rural focus 1 Dependency on Technology provider

2 Strong distribution network 2 Unstructured Organisational structures

3 Zero Debt 3 Low margin High volumes

4 Simple Process / Business Model 4 99% is cash transaction business

5 Young and Dynamic Business leaders 5 Does not have strong back office or systems

or processes

Opportunities Threats 1 Scalability Unlimited upside 1 Service provider may pouch distributing

agents

2 Cross Selling 2 Technologies changes fast & present may become obsolute

3 Can add high margins products or services 3 -

4 - 4 -

5 - 5 -


MNCPL Focus area “RURAL”

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S.No Sub Area Total / Rural / Urban

No of Households Persons Males Females

1 Gujarat State Total 96,91,362 5,06,71,017 2,63,85,577 2,42,85,440 Rural 59,41,858 3,17,40,767 1,63,17,771 1,54,22,996 Urban 37,49,504 1,89,30,250 1,00,67,806 88,62,444

2 Bharuch District Total 2,82,677 13,70,656 7,13,676 6,56,980

Rural 2,08,495 10,18,096 5,28,788 4,89,308

Urban 74,182 3,52,560 1,84,888 1,67,672

S.No Town / Village Taluka Category No of House Persons Males Females

1 Jhadeshwar Bharuch A 3,789 16,651 8,618 8,033

2 Sarangpore Anklesvar A 3,102 12,531 7,727 4,804

3 Amod Amod A 2,934 15,527 7,972 7,555

33 Govali Jhagadia B 918 4,290 2,259 2,031

34 Panetha Jhagadia B 917 4,099 2,160 1,939

35 Borbhatha Bet Anklesvar B 910 4,363 2,284 2,079

95 Malpore Jambusar C 497 2,287 1,138 1,149

96 Jantran Jambusar C 492 2,290 1,184 1,106

97 Katpor Hansot C 490 2,219 1,152 1,067

Source :- http://www.censusindia.gov.in



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S.No Average Monthly Expense@600 Rs Sub Area Total / Rural /

Urban No of Households@

600 Rs /Month No of Households@

7200 Rs / year Market Share @2%

1 Gujarat State Total 5,81,48,17,200 69,77,78,06,400 1,39,55,56,128 Rural 3,56,51,14,800 42,78,13,77,600 85,56,27,552 Urban 2,24,97,02,400 26,99,64,28,800 53,99,28,576

2 Bharuch District Total 16,96,06,200 2,03,52,74,400 4,07,05,488

Rural 12,50,97,000 1,50,11,64,000 3,00,23,280

Urban 4,45,09,200 53,41,10,400 1,06,82,208

S.No Town / Village Taluka Category

1 Jhadeshwar Bharuch A 22,73,400 2,72,80,800 5,45,616

2 Sarangpore Anklesvar A 18,61,200 2,23,34,400 4,46,688

3 Amod Amod A 17,60,400 2,11,24,800 4,22,496

33 Govali Jhagadia B 5,50,800 66,09,600 1,32,192

34 Panetha Jhagadia B 5,50,200 66,02,400 1,32,048

35 Borbhatha Bet Anklesvar B 5,46,000 65,52,000 1,31,040

95 Malpore Jambusar C 2,98,200 35,78,400 71,568

96 Jantran Jambusar C 2,95,200 35,42,400 70,848

97 Katpor Hansot C 2,94,000 35,28,000 70,560

Source :- http://www.reminderforme.com



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S.NoCost of acquiring per

client @100 Rs + 2.5 Rs per month = Rs 130

Sub Area Total / Rural / Urban No of Household No of Households@ 62

Rs / year Market Share @2% in

1st year

1 Gujarat State Total 96,91,362 1,25,98,77,060 2,51,97,541

Rural 59,41,858 77,24,41,540 1,54,48,831

Urban 37,49,504 48,74,35,520 97,48,710

2 Bharuch District Total 2,82,677 3,67,48,010 7,34,960

Rural 2,08,495 2,71,04,350 5,42,087

Urban 74,182 96,43,660 1,92,873

S.No Town / Village Taluka Category No of House holds

1 Jhadeshwar Bharuch A 3,789 4,92,570 9,851

2 Sarangpore Anklesvar A 3,102 4,03,260 8,065

3 Amod Amod A 2,934 3,81,420 7,628

33 Govali Jhagadia B 918 1,19,340 2,387

34 Panetha Jhagadia B 917 1,19,210 2,384

35 Borbhatha Bet Anklesvar B 910 1,18,300 2,366

95 Malpore Jambusar C 497 64,610 1,292

96 Jantran Jambusar C 492 63,960 1,279

97 Katpor Hansot C 490 63,700 1,274

Source :- http://www.reminderforme.com


MNCPL Process Flow

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Retailer

Customers

MNCPL as collections

Service providers collecting agents

1000 975 969

Service Providers API gateway either internet or Mobile android apps

1000 value recharge within 3 minutes cycle time


MNCPL Snap shot

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Distributors / Agents / Sub Agents etc 234

Starting date 02 April 2013 End date 13 August 2014

Actual Commision 1,09,14,206

Actual daily collection 9,38,856

31 March 2014 13 August 2014

Collections 28,05,96,714 35,20,71,168

Commission @ 3.1% 86,98,498 1,09,14,206


MNCPL Collection Sheet

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Agent Wise Collections

Total collection 35,20,71,168 234 15,74,048 7,98,673 16,32,434 15,74,316 17,03,542 20,55,756 13,39,049 6,88,409 Date Day Daily collection Count Agent1 Agent2 Agent3 Agent4 Agent5 Agent6 Agent7 Agent8

02 April 2013 Tuesday 1,07,399 24 550 400 6,186 848 10,828 9,323 749 6,857

03 April 2013 Wednesday 1,09,261 22 300 15,465 785 918 17,142

04 April 2013 Thursday 58,772 28 506 1,300 1,902 400 3,107 2,867 3,505 3,189

05 April 2013 Friday 1,99,269 41 17,385 2,857 644 4,460 4,307 8,761 6,302

06 April 2013 Saturday 1,64,861 41 16,097 670 3,271 18,638 4,299 4,931 - -

08 April 2013 Monday 2,02,528 34 713 339 17,257 3,480 - -

09 April 2013 Tuesday 1,41,689 42 660 572 7,423 689 4,772 11,188 497 8,228

10 April 2013 Wednesday 2,43,996 45 336 19,645 18,558 3,808 3,873 982 20,570

11 April 2013 Thursday 1,76,659 47 541 2,130 5,664 - 3,211 3,157 3,572

12 April 2013 Friday 2,19,577 49 15,662 1,260 3,057 1,221 - 4,608 7,893 6,743

13 April 2013 Saturday 1,58,106 46 14,502 805 2,947 502 4,738 4,442 - -

15 April 2013 Monday 2,96,669 47 579 16,387 2,386 5,603 20,774 3,596 2,844 4,001

16 April 2013 Tuesday 1,91,872 47 3,200 3,271 543 - 4,931 7,111 7,215

17 April 2013 Wednesday 1,50,257 95 4,760 967 2,655 1,357 9,596 4,002 - -

18 April 2013 Thursday 3,03,249 91 1,026 425 789 10,986 - 21,397

19 April 2013 Friday 2,26,015 96 421 15,944 5,047 - 1,125 6,254

20 April 2013 Saturday 1,58,382 98 4,708 3,248 651 - 4,896 6,406 -

22 April 2013 Monday 4,55,655 96 456 476 1,629 9,897 21,465 25,677

23 April 2013 Tuesday 1,42,748 112 1,140 700 4,547 - 699 3,884

24 April 2013 Wednesday 2,94,623 115 663 13,300 22,448 11,368 - 9,915 2,309 -

25 April 2013 Thursday 2,11,069 117 4,241 3,638 782 8,012 11,352 5,771 -

26 April 2013 Friday 2,65,409 112 547 533 705 10,986 30,812


Recharge Competition Landscape

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Company Delivery Model Subscriber Base (mn) Product OfferingsPaytm Web, M-APP 3.5 million Recharge, Bills, Bus

Mobikwik Web, APP 1.5 million Recharge, Bills

Freecharge Web 2.8 million Recharge

Rechargeitnow Web 6.0 million Recharge

Company Delivery Model

Subscriber Base (mn)

Product Offerings

Oxygen B2B – Online & Offline

1 lak outlets Ticketing, Recharge, Utility Bills, Prepaid Cards, SBI – Kiosk Tieup

Suvidhaa B2B 60,000 outlets Ticketing, Recharge, Utility Bills

Easy Bill B2B 20,000 outlets Ticketing, Recharge, Utility Bills

Online Players

Offline Players


Recharge Competition Landscape

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Company Delivery Model

ICICI Bank Web, M-APP

HDFC Bank Web, APP

Axis Bank Web

SBI

Company Subscriber Base (mn) Product Offerings

Ng Pay 2.9 million Travel – Train, Bus, Flight, Movies, Shopping, Recharge

Airtel Money N-A Semi Closed Wallet, Travel – Train, Bus, Flight, Movies, Shopping, Recharge

Paymate N-A Semi Closed Wallet, Travel – Train, Bus, Flight, Movies, Shopping, Recharge

M-Check N-A Semi Closed Wallet, Travel – Train, Bus, Flight, Movies, Shopping, Recharge

Bank Apps

Dedicated Mobile Apps


Product Portfolio

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Gadgets

Travel

Utilities Payment

Recharge

Prepaid/Data card/DTH

Bus / Hotel

Postpaid/Electricity/Others

Accessories/Digital / Online Retailing


Investment Rationale

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Need for Fund Green field expansion PAN Gujarat and subsequently Other states Positive cash flows from Year 2 (FY 2015-16) Strategic move towards potential to X-sell high margin retail products / services Investment in Technologies – CRM, Back office, Mobile apps, Asset based investments in office infrastructure. Will be intrinsic hedger for investors Enhancement in Branding, Marketing Building robust Distribution network

Quantum for Fund Current equity proposed to be raised – Rs. XXXXX lacs Looking for 1% dilution per every crore of investment upto 32% maximum

Investors returns and benefits Exit option of Investors by IPO or Promoters Commitments of buyback at 23% IRR for 3 years 32% IRR for 4 years 36% IRR for 5 years


Cash flow Projections

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Year ending March 31, 2014 2015 2016 2017 2018 2019

(Rs. in lacs)

No of Distributors 234 468 702 983 1278 1661

Increment % 100.00 60.00 50.00 40.00 30.00

Total No of Distributors 234 702 1404 2387 3664 5325

Revenue Contribution

- Recharge Yield @3.1% 100.00 80.00 68.00 50.00 40.00 35.00

- Bus Tickets Yield @5% 0.00 12.00 18.00 24.00 30.00 30.00

- Hotel Yield @15% 0.00 6.00 10.00 14.00 16.00 18.00

- Online Retailing Yield @20% 0.00 2.00 4.00 12.00 14.00 17.00

Total 100.00 100.00 100.00 100.00 100.00 100.00

Per distributor revenue per year 0.37

Distributor wise Revenue increment by % (a) 25.00 25.00 25.00 25.00 25.00

Gross Yield % (x) 3.10 4.38 5.31 7.25 7.94 8.69

Gross Yield Growth % (b) 41.29 21.19 36.59 9.52 9.38

Total Simple Sum growth % [(a)+(b)] 66.29 46.19 61.59 34.52 34.38

Per distributor revenue per year 0.37 0.62 0.90 1.46 1.96 2.64

REVENUES in Lacs Total 87.00 434.02 1,268.96 3,485.78 7,198.96 14,059.05


Profitability Projections

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Year ending March 31, 2014 2015 2016 2017 2018 2019(Rs. in lacs)

REVENUES in Lacs Total 87.00

434.02

1,268.96

3,485.78

7,198.96

14,059.05

REVENUES Breakup - Recharge 87.00 347.21 862.89 1742.89 2879.58 4920.67 - Bus Tickets 0.00 52.08 228.41 836.59 2159.69 4217.72 - Hotel 0.00 26.04 126.90 488.01 1151.83 2530.63 - Online Retailing 0.00 8.68 50.76 418.29 1007.85 2390.04 Total Revenues (z) 87.00 434.02 1268.96 3485.78 7198.96 14059.05 EXPENSES Gross Commission including Percent (y) 2.50 3.00 3.50 4.50 5.00 5.00 Amount [(y/x)*z] 70.16 297.27 836.73 2163.59 4533.35 8093.87Overheads & other expenses Percent 1.00 1.00 1.00 1.00 1.00 1.00 Salaries, incentives & bonus Amount 28.06 99.09 239.06 480.80 906.67 1618.77 Sales & marketing expenses Total Expenses 98.23 396.36 1075.79 2644.39 5440.02 9712.64 EBIDTA -11.23 37.65 193.16 841.40 1758.94 4346.41 PBT -11.23 37.65 193.16 841.40 1758.94 4346.41 Tax 0.00 -4.65 -23.88 -104.00 -217.40 -537.22 PAT -11.23 42.31 217.04 945.39 1976.35 4883.62

Equity 100.00 100.00 500.00 500.00 1000.00 2000.00

EPS -1.12 4.23 4.34 18.91 19.76 24.42

Fair Price

PE @ 15 63.46 65.11 283.62 296.45 366.27Sensex PE - 20

PE @ 20 84.62 86.82 378.16 395.27 488.36Sector Averages - 32

PE @ 32 135.39 138.91 605.05 632.43 781.38


Valuation Projections

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Equity 100.00 100.00 500.00 500.00 1000.00 2000.00EPS -1.12 4.23 4.34 18.91 19.76 24.42 Fair Price

PE @ 15 63.46 65.11 283.62 296.45 366.27Sensex PE - 20

PE @ 20 84.62 86.82 378.16 395.27 488.36Sector Averages - 32

PE @ 32 135.39 138.91 605.05 632.43 781.38Market Capitalization Valuation (Rs in Lacs)

With existing leverage 14,181

29,645

73,254

With existing leverage backed by asset backed investments Premium of 25%

17,726

37,056

91,568

Without existing leverage Premium of 50%

21,271

44,468

1,09,882

Without existing leverage backed by asset backed investments

28,362

59,290

1,46,509


Balance Sheet & Key Ratios Projections

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Equity Share Capital 500.00 500.00 500.00 500.00 1000.00 2000.00Reserves 50.00 240.00 470.00 690.00 820.00 1090.00Secured Loans 0.00 50.00 100.00 200.00 270.00 430.00Unsecured Loans 0.00 60.00 90.00 130.00 140.00 280.00Total 550.00 850.00 1160.00 1520.00 2230.00 3800.00Net Block 434.50 510.00 596.00 747.00 1089.00 2209.00Capital Work in Progress 21.00 43.00 67.00 91.00 128.00 227.00Investments 0.00 0.00 19.00 39.00 54.00 109.00Working Capital 94.50 297.00 478.00 643.00 959.00 1255.00Total 550.00 850.00 1160.00 1520.00 2230.00 3800.00 KEY RATIOS OPM % 12.33 7.49 11.78 23.36 26.70NPM% 10.80 6.56 10.33 20.47 23.40Sales Growth % 38.78 25.00 29.64 11.49 43.27PAT Growth % 41.95 51.87 165.77 216.97 105.30Return on Equity % 9.05 10.49 22.72 47.08 56.93Return on Capital Employed % 8.30 9.47 19.45 41.84 50.79

Contact:- [email protected]:- +91 9930982815/6Skype:- kcpatels

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Disclaimers and Confidentiality Undertakings• This Confidential Memorandum (the Memorandum) has been prepared by MWH Consulting Pvt. Ltd. (MWH

) based on information provided by MNCPL Communications Pvt. Ltd. (MNCPL) and other information by sources identified herein solely for the purpose of allowing interested parties an opportunity to evaluate a transaction involving MNCPL. This document has been produced for the exclusive use of a limited number of prospective investors and their designated representatives and may not be used or distributed to others without express written consent from MWH .

• This document contains selected information provided by MNCPL to assist the recipient in making an initial decision to proceed with further examination. While the information included herein is believed to be accurate and reliable, by delivery of this Confidential Memorandum, MWH does not make any representations or warranties, express or implied, as to the accuracy or completeness of such information.

• The information contained in this Memorandum has been prepared to assist interested parties in making their own evaluation of MNCPL and does not purport to be all-inclusive or to contain all of the information that may be material to prospective parties’ decision to enter into a transaction. The information and data contained herein are not substitutes for the recipient's independent evaluation and analyses.

• Statements contained in this Memorandum describing documents and agreements including, but not limited to, terms and conditions of the proposed transaction are provided in summary form only and such summaries are qualified in their entirety by reference to the final form of such documents and agreements which result from the negotiation and final understanding among all concerned parties.

• The Memorandum in which this notice is incorporated does not constitute or form any part of any offer or invitation to any section of the public to subscribe for, underwrite or purchase securities in or assets or liabilities of MNCPL.

• Each recipient of this document agrees to treat all information contained herein confidentially and that the recipient will not, directly or indirectly, disclose distribute or reproduce such information or any part thereof without prior written consent of MNCPL.

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1_MNCPL Information Memorandum 1.4

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