MIRA INFORM REPORT

Report Date :

24.10.2008

IDENTIFICATION DETAILS

Name :	SYNERGY PUNCHING PRIVATE LIMITED
Registered Office :	No.2, II Cross, S M Road Behind Banashankari Kalyana Mantappa, Dasarahalli, Bangalore – 560 057, Karnataka.
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	27.02.2001
Com. Reg. No.:	028682
CIN No.: [Company Identification No.]	U29299KA2001PTC028682
TAN No.: [Tax Deduction & Collection Account No.]	BLRS0544F
Legal Form :	Private limited liability company.
Line of Business :	Manufacturer and Exporter of Sheet Metals.

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

Maximum Credit Limit :	USD 97130 Millions
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. Financial position of the company is satisfactory. Trade relations are fair. Payments are usually correct and as per commitments. The company doing well. It can be considered good for normal business dealings at usual trade terms and condition.

INFORMATION PARTED BY

Name :	Mrs. Chand Basha
Designation :	Chief Executive Officer
Contact No.:	91-9844038341
Date :	22.10.2008

LOCATIONS

Registered Office :	No.2, II Cross, S M Road Behind Banashankari Kalyana Mantappa, Dasarahalli, Bangalore – 560 057, Karnataka, India.
Tel. No.:	91-80-28364295
Mobile No.:	91-9844038341
Fax No.:	91-80-28364211
E-Mail :	chand@synergypunching.com
Website :	www.synergypunching.com
Area :	1000 sq.ft
Location :	Rented
Branch / Factory 1 :	No.A3 and A4, Peenya Industrial, 2^nd Phase, Bangalore- 560 058, Karnataka, India.
Area :	1500 sq. ft
Location :	Rented
Factory 2 :	No. 337, 9^th Cross Road, 4^th Phase, Peenya Industrial Area, Bangalore-560 058, Karnataka, India.
Area :	1000 sq. ft
Location :	Rented

DIRECTORS

Name :	Mr. Siddappa Nagaraju
Designation :	Director
Address :	No.173, 5^th Cross, Nandini Layout Main Road, Saraswathipuram, Bangalore, Karnataka, India.
Date of Birth/Age :	01.09.1967
Date of Appointment :	27.02.2001
Name :	Mrs. Zareena Chand Basha
Designation :	Director
Address :	No.14, officers Model Colony, off- Ayyappa temple Road, T.Dasarahalli, Bangalore-560 057, Karnataka, India.
Date of Birth/Age :	01.06.1968
Date of Appointment :	27.02.2001
Name :	Mr. Kenchappa
Designation :	Director
Address :	Krishnapura Layout, Nelamangala Taluka, Rural Dist. Bangalore, Karnataka, India.
Date of Birth/Age :	08.10.1948
Date of Appointment :	27.02.2001
Name :	Mr. M Hemachandra Reddy
Designation :	Director
Address :	Penpligunbla Pall, Paipalli Post, Kanipakam Via, Chittur Dist. Bangalore, Karnataka, India.
Date of Birth/Age :	10.06.1972
Date of Appointment :	27.10.2001

MAJOR SHAREHOLDERS

Sr No.	Names of Shareholders	No. of Shares
1.	Mr. S Nagaraju	2750
2.	Mrs. Zareena Chand Basha	2500
3.	Mrs. Radha	2250
4.	Mr. Siddappa	2250
5.	Mrs. Rajamma	813
6.	Mr. R Shivakumar	1750
7.	Mr. Onkaraswamy	1250
8.	Mrs. Gowaramma	812
9.	Mr. Kenchappa	2500
10.	Mr. K. Shubhakar	2500
11.	Mr. K. Chandraprabha	1250
12.	Mrs. Sumaiya Chand	625
13.	Mrs. Fharana Noorulla	5875
14.	Mr. Noorulla	2875
15.	Mr. M hemachandra Reddy	5500
16.	Mr. Jayachandra Reddy	4500
	Total	40,000

Equity Share Breakup (Percentage of Total Equity)

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

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Sheet Metals.
Exports :
Countries :	Dubai
Terms :
Selling :	L/C , Credit (60 Days)
Purchasing :	Cheque (130 Days)

GENERAL INFORMATION

Suppliers :	· Best Engineering Aids and Consultancies · Hytek Marketing · Deeba Engineers and Marketing Pvt Ltd · Jagadish Logistic Pvt Ltd · Pennar Industries Limited · Scientific India Pvt Ltd · Sri Manjunatha Precosion Works · Sri Muneshwara Tempo Service · Sri Rama Fabrication Works · Sri Sai Ram Engineering Works · Sri Sai Tempo Services · S.R.S. Mini Transport · SS Coating Systems · SS Tool Room · TMD Packing Private Company
Customers :	· Dorman Smith Switchgear LLC · Pentavision Private Limited · HBL NIFE Power Systems Limited · Rinac India Limited · Twenty First Century Office Pvt Ltd · United Telecoms Limited · A M Steels · Dickenson Fowler (India) Pvt Ltd · Fowler Westrup Pvt Ltd · GE India Exports Pvt Ltd · Karnataka housing Board · RFS Technologies · MRO Tek Ltd · Nidha Steels · SLV Engineering
No. of Employees :	150 (Office Plus Factory)
Bankers :	State Bank of Mysore, SME Branch, CSI Layout 2^nd Main Tumkur, Tumkur- 572 102 , Karnataka, India.
Facilities :	--
Banking Relations :	Satisfactory
Auditors :
Name :	K.R Aithal and Company, Chartered Accountant
Address :	No.88, 2^nd Floor, Jeering Building, 11^th Cross, Malleshwaram, Bangalore - 560 003, Karnataka, India.
Tel. No.:	91-80-23346995

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs. 10/- each	80.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs. 10/- each	40.000 Millions

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1]Paid-up Capital		4.000	4.000	2.000
2] Share Application Money		0.000	0.000	0.400
3] Reserves & Surplus		15.426	7.580	2.242
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		19.426	11.580	4.642
LOAN FUNDS
1] Secured Loans		38.533	18.400	17.796
2] Unsecured Loans		0.000	0.000	4.217
TOTAL BORROWING		38.533	18.400	22.013
DEFERRED TAX LIABILITIES		3.870	2.065	1.695
TOTAL		61.829	32.045	28.350
FIXED ASSETS [Net Block]		38.306	24.565	22.359
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.010	0.010	0.010
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	8.113	5.538	2.936
	Sundry Debtors	59.575	31.169	9.381
	Cash & Bank Balances	10.908	4.729	4.747
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.020	2.210	0.923
Total Current Assets		80.616	43.646	17.987
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	55.811	34.648	12.049
	Provisions	1.315	1.559	0.000
Total Current Liabilities		57.126	36.207	12.049
Net Current Assets		23.490	7.438	5.939
MISCELLANEOUS EXPENSES		0.023	0.032	0.042
TOTAL		61.829	32.045	28.350

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006
Sales Turnover		209.288	108.344
Other Income		0.430	0.554
Total Income		209.718	108.898
Profit/(Loss) Before Tax		19.175	9.308
Provision for Taxation		5.875	3.100
Profit/(Loss) After Tax		13.300	6.208
CIF Value		9.855	NA
Earnings in Foreign Exchange		5.814	NA
Expenditures :
	Depreciation & Amortization	2.150	1.490
	Financial Charges	5.490	4.390
	Other Expenditure	182.903	93.702
Total Expenditure		190.543	99.582

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	6.34	5.73
Net Profit Margin (PBT/Sales)	(%)	9.16	10.1
				NA
Return on Total Assets (PBT/Total Assets}	(%)	16.12	13.6
Return on Investment (ROI) (PBT/Networth)		0.99	0.80
Debt Equity Ratio (Total Liability/Networth)		2.94	3.13	2.60
Current Ratio (Current Asset/Current Liability)		1.41	1.20	1.49

LOCAL AGENCY FURTHER INFORMATION

Form 8 :

Name of the company

SYNERGY PUNCHING PRIVATE LIMITED

Presented By

SYNERGY PUNCHING PRIVATE LIMITED

1) Date and description of instrument creating the change

20^th march 2003,

a) Articles of Agreement: Medium Term Lone against pledge of Moveable Machinery

b) Agreement for cash Credit Hypothecation of goods

c) Indemnity for Purchases / Discount of Usance/ Demand Bills/ Cheques- for companies

(All Documents related to a single Charge)

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

a) Term Loan : Rs 1.500 millions

b) Cash Credit : Rs 1.000 million

c) Cheque Purchase : Rs 0.500 million

Total : Rs. 2.550 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

a) Hypothecation of one CNC press brake model with controller, servo motor ball screw and accessories as detailed in schedule- B to the agreement

b) Hypothecation of sheet metal components cabinets, manufactured on CNC Turret punch press etc., Stored at the company at No. 337, IV Cross , IV Phase, Peenya Industrial Area, Bangalore – 560 058

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

a) The Term Loan is repayable in 35 Monthly installments of Rs.29.500/- each and Rs. 35.000 at the 36 installments along with the interest at 2% above / Below SBM PLR with a minimum of 13.75% per annum.

b) The cash credit repayable an demand and that the rate of interest chargeable shall be 13.75% per annum.

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

State Bank of Mysore,

SSI Branch,

Tumkur.

6) Date and brief description of instrument modifying the charge

13.01.2005

a) Agreement for cash Credit (Hypothecation of goods)

b) Agreement for cash Credit (Hypothecation of Debts and Assets)

c) Agreement for Advance (For Hypothecation 4/08 pledge by borrower)

d) Letter of Undertaking by company not to create further charge over its property and assets.

(All Relates to a single charge)

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.

Credit facilities have been enhanced form Rs. 2.550 Millions to Rs. 6.550 Millions as detailed below and that the rate of interest has been reduced form 13.75% per annum to 1% above SBM PLR with a minimum of 12% per annum monthly rests and that all other term and condition continues to operate.

Sr. No	Particulars	Existing (Rs in Millions)	Enhanced (Rs in Millions)
1	Term Loan	1.050	1.050
2	Cash Credit	1.000	5.000
3	Cheque Purchase	0.500	0.500
	Total	2.550	6.550

Form 8:

This form is for	Modification of charge
Charge identification number of the modified	80006990
Corporate identity number of the company	U29299KA2001PTC028682
Name of the company	SYNERGY PUNCHING PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No.2, II Cross, S M Road Behind Banashankari Kalyana Mantappa, Dasarahalli, Bangalore – 560 057, Karnataka, India.
Type of charge	Book Debts Immovable property Movable Property
Particular of charge holder	State Bank of Mysore , SME Branch, CSI layout , 2^nd Main Tumkur-572 102 Karnataka. E-mail – gss_comsecy@rediffmail.com
Nature of description of the instrument creating or modifying the charge	1) Agreement For Hypothecation 2) Letter of Indemnity in respect of discount or purchase of usance bills/demands from companies 3) Letter of Extension of Equitable Mortgage.
Date of instrument Creating the charge	15.06.2007
Amount secured by the charge	62.200 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 1) Cash Credit -0.25% over the bank PLR with a minimum of 13.50% p.a 2) Stand by Line of credit at 14.50% p.a Terms of Repayment Repayable on Demand Margin 25% Extent and Operation of the charge The charge on the assets being charge shall operate to the extent of Rs. 62.200 millions plus interest, costs, commission, expenses and other charges thereon. Others
Short particulars of the property charged	Hypothecation of raw material , in process and finished stocks, movable machinery , equipment, tools, stores and spares, consumer articles and accessories located at 337, 9 cross, 4 Phase, Peenya Industrial Area, Bangalore and Company’s godown at Tumkur. b) Creation of Equitable Mortgage by way of deposit of title deeds of immovable properties of the company as detailed in Schedule –A and B of letter of deposit of title deeds, attached to this form and which form part of this document.
Particulars of the present modification	1) The credit limits enhanced form Rs. 26.500 millions to 62.200 millions as below:- (CC. Hyr, Rs 27.000 millions, LC Bills Discounting Rs. 20.000 millions, Stand by limit Rs 2.700 millions and existing limits of BG- Rs. 2.500 millions and TL- Rs 10.00 Millions Remains same.) 2) Extension of Equipment Mortgage by way of deposit of tiotle deeds of immovable properties of the company as detailes in schedule –A amd B of letter of Deposit of title deeds, attached to this form and which form part of this documents. All other terms and conditions remain same.

Fixed Assets :

1. Land

2. Building

3. Plant and Machinery

4. D.G. Set

5. Electrical Installation

6. Tools and Die Sets

7. Hand Tools and Instruments

8. Software Machine

9. Computer Equipment

10. Computer Software

11. Office Equipment

12. Furniture and fixtures

13. Other Equipment

14. Motor Vehicles-MBYKE

15. Motor Vehicles – CAR

16. Motor Vehicles – Goods

17. Work Tables and Racks

18. Capital Works in Progress

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.49.79
UK Pound	1	Rs.81.27
Euro	1	Rs.63.91

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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
TOTAL		54

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