MIRA INFORM REPORT

Report Date :

28.08.2008

IDENTIFICATION DETAILS

Name :	EFFICIENT PRECISION AND SYSTEMS PRIVATE LIMITED
Registered Office :	Sr. No. 167/206, Tukai Darshan, Opposite SP. Infocity, Phursungi, Pune – 412308, Maharashtra
Country :	India
Financials (as on) :	31.03.2008 [Efficient Engineers]
Date of Incorporation :	03.08.2007
Com. Reg. No.:	130529
CIN No.: [Company Identification No.]	U28999PN2007PTC130529
TAN No.: [Tax Deduction & Collection Account No.]	PNEE02179C
PAN No.: [Permanent Account No.]	AABCE8144M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Precision CNC Machining Products

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is successor to Efficient Engineers, a proprietory concern which was established in year 1998. It’s trade relations are fair. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Pradeep Gadekar
Designation :	Director
Contact No.:	91-9850899930
Date :	18.08.2008

LOCATIONS

Registered Office / Factory :	Sr. No. 167/206, Tukai Darshan, Opposite SP. Infocity, Phursungi, Pune – 412308, Maharashtra, India
Tel. No.:	91-20-26981552
Mobile No.:	919850899930 / 9822008747 [Mr. Pradeep Gadekar] 919822008747 [Mr. Anand Gadekar]
Fax No.:	91-20-26981552
E-Mail :	pradeepgadkar@rediffmail.com b.nadar@rediffmail.com
Area :	4000 sq. ft. [Owned]

DIRECTORS

Name :	Mr. Pradeep Babruvan Gadekar
Designation :	Director
Address :	S. No. 15, Vittal Nagar, Near Fish Farm, Hadapsar, Pune – 411028, Maharashtra, India
Date of Birth/Age :	25.10.1976
Qualification :	D. Production Technology
Experience :	10 Years
Name :	Mr. Anand Babruvan Gadekar
Designation :	Director
Address :	S. No. 15, Vittal Nagar, Near Fish Farm, Hadapsar, Pune – 411028, Maharashtra, India
Date of Birth/Age :	18.12.1973
Qualification :	B. Mach
Experience :	12 Years
Name :	Ms. Arti Anand Gadekar
Designation :	Director
Address :	S. No. 15, Vittal Nagar, Near Fish Farm, Hadapsar, Pune – 411028, Maharashtra, India
Date of Birth/Age :	04.05.1978
Qualification :	B. Com.
Name :	Ms. Vandana Gadekar
Designation :	Director
Address :	C-16, Pruthvi Apartment, Hadapsar Gaon, Pune – 411028, Maharashtra, India
Date of Birth/Age :	08.06.1981
Qualification :	B. Com.

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders`	No. of Shares
Mr. Pradeep Babruvan Gadekar	7000
Mr. Anand Babruvan Gadekar	1000
Ms. Arti Anand Gadekar	1000
Ms. Vandana Gadekar	1000
Total	10000

BUSINESS DETAILS

Line of Business :	Manufacturer of Precision CNC Machining Products
Products :	Jigs and Fixtures Heat Exchangers Coolers Milk Processing Vessels
Imports :
Products :	Machinery
Countries :	Korea and Taiwan
Terms :
Selling :	Credit [60-90 days]
Purchasing :	L/C and Credit [60-90 days]

GENERAL INFORMATION

Customers :	OEM’s
No. of Employees :	11
Bankers :	Union Bank of India Hadapsar Branch, Pune – 28

Banking Relations :	--
Auditors :
Name :	N G Sharda and Company Chartered Accountants
Address :	Pune

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs. 10/-each	Rs. 2.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs. 10/-each	Rs. 0.100 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

[Proprietor of : Mr. Pradeep Babruvan Gadekar]

EFFICIENT ENGINEERS

CAPITAL ACCOUNT

Particulars	Amount Rs in Millions	Particulars	Amount Rs in Millions
To		By
Withdrawals	0.060	Opening Balance	0.666
Advance Tax : AY: 2008-2009	0.025	Salary Received from Efficient Precision and Systems Pvt Ltd	0.080
Income Tax : AY : 2007-2008	0.002	Profit from P & L A/c	0.283
Balance C/F	0.942
Total	1.029	Total	1.029

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008
SHAREHOLDERS FUNDS
1] Proprietor’s Capital		0.942
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		0.942
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.112
TOTAL BORROWING		0.112
DEFERRED TAX LIABILITIES		0.000
TOTAL		1.054
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.190
Capital work-in-progress		0.000
INVESTMENT		0.408
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	0.045
	Cash & Bank Balances	0.066
	Other Current Assets	0.742
	Loans & Advances	0.000
Total Current Assets		0.853
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	0.397
	Provisions	0.000
Total Current Liabilities		0.397
Net Current Assets		0.456
MISCELLANEOUS EXPENSES		0.000
TOTAL		1.054

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008
Sales Turnover		6.282
Net Profit		0.284
Expenditures :
	Opening Stock	0.151
	Purchases	5.221
	Octroi, Cartge and Transport	0.024
	Wages	0.233
	Office Expenses	0.010
	Advertisements	0.003
	Bank Charges	0.005
	City Conveyance	0.020
	Depreciation	0.015
	Electricity Bills and Spares	0.010
	Insurance	0.001
	Interest paid to BOM	0.007
	Labour Welfare	0.015
	Stationery	0.001
	Legal Fees	0.016
	Rates and Taxes	0.006
	Repairs and Maintenance	0.011
	Sales Tax	0.190
	Social Contributions	0.001
	Telephone Expenses	0.011
	Tender Fees	0.016
	Traveling Expenses	0.006
	Professional Tax	0.011
	Interest Paid to others	0.017
Total Expenditure		6.001

KEY RATIOS

PARTICULARS		31.03.2008
PAT / Total Income	(%)	4.52
Net Profit Margin (PBT/Sales)	(%)	4.52
Return on Total Assets (PBT/Total Assets}	(%)	27.23
Return on Investment (ROI) (PBT/Networth)		0.30
Debt Equity Ratio (Total Liability/Networth)		0.54
Current Ratio (Current Asset/Current Liability)		2.15

LOCAL AGENCY FURTHER INFORMATION

Trade Reference

• Punewala Group Company
• Bharat Forge India Private Limited
• The Indian Smelting and Refining Company

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 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.43.73
UK Pound	1	Rs.80.57
Euro	1	Rs.64.29

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		45

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