MIRA INFORM REPORT

Report Date :

05.08.2008

IDENTIFICATION DETAILS

Name :	SWASTIK POWER ELECTRONICS (INDIA) PRIVATE LIMITED
Registered Office :	Building No. 5, Gala No. 1, to 4, Dharani Arcade, Anjurphata, Bhiwandi, Thane – 421 302, Maharashtra
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	09.09.2002
Com. Reg. No.:	11 - 137121
CIN No.: [Company Identification No.]	U31909MH2002PTC137121
TAN No.: [Tax Deduction & Collection Account No.]	PNES08891B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter Dealings in Power Solutions.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 35360
Status :	Mediocre
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company has substantial loans from it’s bankers. Trade relations are fair. Payments are reported as slow but correct. However the company can be considered for small to mediocre business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Rajan
Designation :	Manager
Contact No.:	91-9321214545
Date :	02.08.2008

LOCATIONS

Registered Office :	Building No. 5, Gala No. 1, to 4, Dharani Arcade, Anjurphata, Bhiwandi, Thane – 421 302, Maharashtra
Tel. No.:	91-2522-278000/ 279000/ 279981
Mobile No.:	91-9321214545
Fax No.:	91-2522-279881/ 279981/ 279555
E-Mail :	swastikpw@rediffmail.com dombivalibank@vsnl.net
Website :	http://www.swastikpower.com
Area :	10000 Sq. ft
Location :	Owned
Head Office :	237 / 238, Telipada, Agra Road, Bhiwandi, Thane 421 302, Maharashtra, India
Tel. No.:	91-2522-278000
Fax No.:	91-2522-279555

DIRECTORS

Name :	Mr. Shyam Amare
Designation :	Managing Director
Address :	269, Mayuresh Darshan Apartment, Opposite Bhimeshwar Temple, Brahminali, Bhiwandi, Thane 421 302, Mahrashtra, India
Date of Birth/Age :	22.08.1968
Qualification :	Engineering
Date of Appointment :	09.09.2002
Name :	Mr. Prashant Amare
Designation :	Director
Address :	269, Mayuresh Darshan Apartment, Opposite Bhimeshwar Temple, Brahminali, Bhiwandi, Thane 421 302, Mahrashtra, India
Date of Birth/Age :	10.10.1969
Qualification :	Engineering
Date of Appointment :	09.09.2002
Name :	Mrs. Chhaya Amare
Designation :	Director
Address :	269, Mayuresh Darshan Apartment, Opposite Bhimeshwar Temple, Brahminali, Bhiwandi, Thane 421 302, Mahrashtra, India
Date of Birth/Age :	26.01.1974
Date of Appointment :	01.05.2005
Name :	Mrs Jyoti Amare
Designation :	Director
Address :	269, Mayuresh Darshan Apartment, Opposite Bhimeshwar Temple, Brahminali, Bhiwandi, Thane 421 302, Mahrashtra, India
Date of Birth/Age :	30.11.1973
Date of Appointment :	01.05.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

30.08.2002

Names of Shareholders	No. of Shares
Mr. Shayam Vinayak Amre	10000
Mr. Prashant Vinayak Amare	10000

Equity share breakup (Percentage of total equity)

As on 31.03.2007

Sr. No.	Category	Percentage
1.	Directors or relatives of directors.	100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter Dealings in Power Solutions.
Products :	v Invetor v Welding Machines v Stabilizers v Battery Charger Products.
Exports :
Countries :	v Middle East v South Africa v America
Terms :
Selling :	Cash and Credit (depend Cash 100%)
Purchasing :	Cash and Credit ( 30 Days)

GENERAL INFORMATION

Customers :	v Wholesalers v All India Radio, Ahmednagar v Balaji Hospital, Virar  v Bhabha Research Center, Mumbai  v Cadbury India Private Limited v Chitle Dairy, Pune v Controllers Quality Association for Defense, Ahmednagar v Crompton Greaves, Ahmednagar v Dabhol Power Divison, Dabhol v Esijeet Pharmaceutical Limited Taloja v Mauli Agro Products Limited, Ahemdnagar v Panchavati Hotel, Nashik v Pepsico India Holding Limited, Roha v The Executive Engineer, (Hydro Electrical Project), Shahapur v Vehicle Research and Development Centre (VRD), Ahemdnagar v Win-Web Network, Kalyan v Shree Nityanand Pharmacy, Vasai v Elegent Tours and Travels, Nalasopara
No. of Employees :	72
Bankers :	Dombivali Nagari Sahakari Bank Limited 186, Bharai Building, Padma Nagar, Bhiwandi, Thane 421 301, Maharashtra, India Shamrao Vittal Co-Op. Bank Thane
Facilities :	CC – Rs. 30.000 millions

Auditors :
Name :	S V Mohile and Associates Chartered Accountants
Address :	Mangal Murti, Ram Maruti Road (Estn), Thane 400 602, Maharashtra, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs. 10/- each	Rs. 3.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs. 10/- each	Rs. 1.500 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		1.500	1.500	1.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5.572	3.147	1.670
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		7.072	4.647	3.170
LOAN FUNDS
1] Secured Loans		12.669	7.883	6.572
2] Unsecured Loans		0.000	0.158	0.530
TOTAL BORROWING		12.669	8.041	7.102
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		19.741	12.688	10.272
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7.581	6.134	5.150
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.938	1.206	0.488
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	13.935	8.168	5.249
	Sundry Debtors	9.704	7.011	8.264
	Cash & Bank Balances	0.316	0.056	0.302
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.987	2.148	1.063
Total Current Assets		26.942	17.383	14.878
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	13.771	10.531	9.448
	Suspense Account	1.988	1.547	0.844
Total Current Liabilities		15.759	12.078	10.292
Net Current Assets		11.183	5.305	4.586
MISCELLANEOUS EXPENSES		0.039	0.043	0.048
TOTAL		19.741	12.688	10.272

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		56.500	49.554	57.079
Total Income		56.500	49.554	57.079
Profit/(Loss) Before Tax		1.987	2.290	2.007
Provision for Taxation		0.000	0.000	0.000
Profit/(Loss) After Tax		1.987	2.290	2.007
Expenditures :
	Administrative Expenses	1.609	NA	NA
	ESIC Employer’s Contribution	0.080	NA	NA
	Bank CC Loan Charges	0.011	NA	NA
	Financial Charges	1.727	0.980	0.755
	Depreciation & Amortization	0.757	0.570	0.628
	Other Expenditure	50.329	45.714	53.689
Total Expenditure		54.513	47.264	55.072

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	3.52	4.62	3.52
Net Profit Margin (PBT/Sales)	(%)	3.52	4.62	3.52
Return on Total Assets (PBT/Total Assets}	(%)	3.52	4.62	3.52
Return on Investment (ROI) (PBT/Networth)		0.28	0.49	0.63
Debt Equity Ratio (Total Liability/Networth)		2.23	2.60	3.25
Current Ratio (Current Asset/Current Liability)		1.71	1.44	1.45

LOCAL AGENCY FURTHER INFORMATION

Trade References

v Peale Electronics – Uganda

v Cadbury India Private Limited – Mumbai

v Crompt Greaves

v Oberoi Hotels

v Maharashtra SSC Pune Board

Form 8

Charge identification (ID) number of the charge to be modified	90146464
Corporation identity number or foreign company registrations number of the company	U31909MH2002PTC137121
Name of the company	SWASTIK POWER ELECTRONICS (INDIA) PRIVATE LIMITED
Address	Building No. 5, Gala No. 1 to 4, Dharani Arcade, Anjur Phata, District Thane 421 302, Maharashtra, India
This Form is for	Modification of charge
Type of Charges	v Immovable property
Particular of the charge holder	Name : Dombivali Nagari Sahakari Bank Limited Address : 186, Bharai Building, Padmanagar City : Bhiwandi State : Maharashtra ISO country code :IN Pin code : 421 301 e-mail ID : dombivalibank@vsnl.net
Nature or description of the instrument creating charge	Deed of Mortgage for further charge.
Date of the instrument creating charge	14.02.2007
Amount Secure by the charge	Rs. 6.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	a) Rate of Interest: Rate of interest is @ 13.50% p a b) Terms of Repayment: Period : 12 months c) Margin: Margin 25% d) Extent and operation of the charge: Charge is created for Equitable Mortgage in favour of the Bank.
Short particulars of the property charge whether it is a charge on	All that pieces and parcels of the commercial Galas/ godowns bearing No. 1,2,3 and 4 total adm. 5400 Sq. ft. on ground Floor, in the building known as “Dharani Arcade” constructed on land bearing survey No. 131, Hissa No. 1(P) , situated at Revenue Village Ahnal, Taluka Bhiwandi, Dist. Thane more particularly described in schedule I to the agreement.
Particulars of the Present modification	Charge originally created for Rs. 2.000 millions and modified from time to time (6^th modification) upto Rs. 6.000 millions further modified to Rs. 9.000 millions on account of renewal and enhancement in cash credit limit from Rs. 3.000 millions to Rs. 6.000 millions Breakup of limits is as under: Cash Credit – Rs. 6.000 millions Term Loan – I Rs. 2.411 millions Term Loan – II Rs. 0.334 millions Term Loan _ III Rs. 0.255 millions

Form 8

Name of the company

SWASTIK POWER ELECTRONICS (INDIA) PRIVATE LIMITED

Presented By

MR. MILIND LIMAYE (BRANCH MANAGER D N S B)

1) Date and description of instrument creating the change

Agreement for assignment takeover of business dt. 15.05.2003

Declaration of indent dt. 15.05.2003

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 2.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Date of acquisition of property 15.05.2003

All stock of raw material, semi finished and finished goods, all products, goods any and every tangible moveable property in or about borrowers premises, godowns.

4) Gist of the terms and conditions and extent and operation of the charge.

Rate of interest :

15%

Margin

30%

Charge to cover all outstanding sums, interests, costs and charges payable by the company to the bank.

5) Name and Address and description of the person entitled to the charge.

Dombivali Nagari Sahakari Bank Limited

Bhiwandi Branch, Bhiwandi

6) Date and brief description of instrument modifying the charge

Hypothecation of Tangible movable property dt. 02.05.2005

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

By way of first modification on 22.03.2004 registered on 22.04.2004 wide Sr. No. 12 term loan of Rs. 2.411 millions , 0.334 millions and 0.255 millions was granted in addition to existing CC Limit of Rs. 2.000 millions

Similarly equitable cortgage of commercial galas /

godowns no 1 2 3 4 in Dharani Arcade, Bhiwandi was registered.

By way of second modification on 25.03.2004 all present and future furniture and fixtures and electrical installations were hypothecated for therm loan II of Rs. 0.334 millions

By way of fourth modification on 02.02.2005 registered on 17.06.2005 wide Sr. No. B 16 Cash credit limit was enhanced from Rs. 2.000 millions to Rs. 3.000 millions against all present and future stock and book debts as particularly described in the instrument.

Rate of interest:

13.50%

By way of fifth modification on 15.06.2005 charge on commercial galas / godowns no 1, 2, 3 and 4 in Dharani Arcade, Bhiwandi was extended by Rs. 1.000 millions to Rs. 6.000 millions

The present total charge is as under

Particulars	Old Limit (Rs. In Millions)	New Limit (Rs. In Millions)
Cash credit	2.000	3.000
Term loan I	2.411	2.411
Term loan II	0.334	0.334
Term loan III	0.255	0.255
Total	5.000	6.000

As Per Website Details

Company Profile

Subject, is a dedicated company towards for power failure/power fluctuation. Their range of products includes Inverter, UPS and Stabilizers. They are in the business of power solution for more than 8 years. They are ISO-9000 certified company. They have established dealer network in throughout Maharashtra and part of Gujarat. They have satisfied customer base of more than 10,000 nos.

Director’s Capital breakup :

Name of Directors	Amount
Mr. Anish M. Shah	Rs. 0.200 million
Mrs. Chhaya S, Amre	Rs. 0.475 million
Mrs. Harshidaben Bhaskar Sukla	Rs. 0.200 million
Mrs. Jyoti P. Amre	Rs. 0.475 million
Mr. Mukesh R. Shah	Rs. 0.200 million
Mr. Prashant Amre	Rs. 0.450 million
Mrs. Savita Chandrashekar karvir	Rs. 0.100 million
Mr. Shivabhai Satwara (HUF)	Rs. 0.250 million
Mr. Shyam V. Amre	Rs. 0.075 million
Total	Rs. 2.425 millions

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 records 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 records 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. 42.40
UK Pound	1	Rs. 83.57
Euro	1	Rs. 66.02

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		37

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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