MIRA INFORM REPORT

Report Date :

15.04.2011

IDENTIFICATION DETAILS

Name :	SPECTOMS ENGINEERING PRIVATE LIMITED
Registered Office :	114, GIDC Estate, Makarpura, Vadodara – 390010, Gujarat, India
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	30.04.1974
Com. Reg. No.:	04-002518
CIN No.: [Company Identification No.]	U29259GJ1974PTC002518
TAN No.: [Tax Deduction & Collection Account No.]	BRDS02122B
PAN No.: [Permanent Account No.]	AACCS9401Q
Legal Form :	Private Limited Liability Company
Line of Business :	Exporter, Manufacturer and Importer of Feed milling equipments, grain handling systems, storage silos, food processing equipments, marine equipments.

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 40000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appear some accumulated losses recorded by the company. However, trade relations are fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office / Factory and Administrative Office : :	114, GIDC Estate, Makarpura, Vadodara – 390010, Gujarat, India
Tel. No.:	91-265-2634189 / 2642441
Fax No.:	91-265-2642441
E-Mail :	info@spectoms.com
Website :	http://www.spectoms.com

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Navinchandra Amritlal Shah
Designation :	Managing Director
Address :	10, Nira Park Society, Bh. Natubhai Centre, Gotri Road, Vadodara – 390007, Gujarat, India
Date of Birth/Age :	03.05.1937
Date of Appointment :	30.04.1974
Name :	Mr. Mityam Navin Shah
Designation :	Director
Address :	404, Darpan Apartment, R.C. Dutta Road, Alkapuri, Baroda – 390007, India
Date of Birth/Age :	06.08.1984
Date of Appointment :	01.12.2009
Name :	Mr. Abhay Arvind Shah
Designation :	Director
Address :	101, Amber Residency Productivity Road, B/S Ghovardhan Haveli, Baroda – 390007, India
Date of Birth/Age :	07.12.1976
Date of Appointment :	01.12.2009
Name :	Mr. Arvind Amritlal Shah
Designation :	Director
Address :	404, Darpan Apartment, R.C. Dutta Road, Alkapuri, Baroda – 390007, India
Date of Birth/Age :	15.08.1942
Date of Appointment :	30.04.1974
Date of Ceasing :	13.01.2010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Arvind Shah	561877
Navin Shah	197992
Bhadra Shah	68972
Neela Shah	55453
Taraben Shah	35152
Urmila Shah	27060
Mistu Shah	45368
Uday Shah	30050
Arvind Shah	47130
Navin Shah	3583
Yash Shah	26565
Shilpa U. Shah	8200
Uday Shah	7750
Indumati Shah	7750
Jigna Shah	6220
Kavita Shah	6220
Rahendra Shah	37213
Komal Shah	41350
Virendra Shah	9950
Virendra Shah	12550
Total	1236405

AS ON 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Exporter, Manufacturer and Importer of Feed milling equipments, grain handling systems, storage silos, food processing equipments, marine equipments.

GENERAL INFORMATION

Bankers :

Bank Of Baroda, Laheripura New Road Branch, N. K. Zaveri Estate, Laheripura New Road, Vadodara – 390001, Gujarat, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
(Personally Guaranteed by directors of the company)
Cash Credit from Bank of Baroda against hypothecation of Raw Material and Semi Finished and Finished Goods	13.889	14.162
Bank of Baroda Bills/Cheque Discounting A/c	0.000	0.017
Central Bank of India – Term Loan from Vehicles	0.222	0.368
Baroda Traders Co-Operative Bank – Term Loan for vehicles	0.226	0.289
Total	14.337	14.836
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Loan From Directors and Shareholders	1.971	2.171
Total	1.971	2.171

Banking Relations :	--
Auditors :
Name :	Vijay N Tewar and Company – Vijay Tewar Chartered Accountant
Address :	315-16. Pamorama, R.C. Dutt Road, Alkapuri, Vadodara – 390007, Gujarat, India

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1236405	Equity Shares	Rs.10/- each	Rs.12.364 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		12.364	12.364	12.364
2] Share Application Money		5.162	5.162	5.162
3] Reserves & Surplus		1.607	1.623	1.642
4] (Accumulated Losses)		(8.802)	(11.186)	(12.389)
NETWORTH		10.331	7.963	6.779
LOAN FUNDS
1] Secured Loans		14.337	14.836	14.730
2] Unsecured Loans		1.971	2.171	1.141
TOTAL BORROWING		16.308	17.007	15.871
DEFERRED TAX LIABILITIES		0.134	0.199	0.146
TOTAL		26.773	25.169	22.796
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7.661	5.218	3.737
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6.371	7.533	9.100
	Sundry Debtors	2.981	8.020	4.937
	Cash & Bank Balances	9.697	7.978	1.794
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	9.748	13.978	12.012
Total Current Assets		28.797	37.509	27.843
Less : CURRENT LIABILITIES & PROVISIONS
	Other Current Liabilities	9.434	17.287	8.724
	Provisions	0.251	0.271	0.060
Total Current Liabilities		9.685	17.558	8.784
Net Current Assets		19.112	19.951	19.059
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		26.773	25.169	22.796

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	33.143	47.668	22.016
		Other Income	3.371	3.423	3.422
		TOTAL (A)	36.514	51.091	25.438
Less	EXPENSES
		Raw Material Consumed	17.764	31.469	13.909
		Manufacturing Expenses	5.007	6.519	2.809
		Employees Remuneration and Benefits	3.024	1.693	2.023
		Administrative Expenses	4.191	6.358	3.286
		Audit Fees	0.035	0.039	0.039
		Increase / Decrease in Stock	(0.236)	(0.147)	2.889
		Other Expenditure	1.003	(0.017)	0.000
		TOTAL (B)	30.788	45.914	24.955
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5.726	5.177	0.483
Less	FINANCIAL EXPENSES (D)		2.679	3.088	2.770
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.047	2.089	(2.287)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.478	0.360	0.194
	PROFIT BEFORE TAX (E-F) (G)		2.569	1.729	(2.481)
Less	TAX (I)		0.186	0.526	0.045
	PROFIT AFTER TAX (G-I) (J)		2.383	1.203	(2.526)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(11.186)	(12.389)	(98.630)
	BALANCE CARRIED TO THE B/S		(6.802)	(11.186)	(12.389)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	2.838	3.819	NA
	TOTAL EARNINGS		2.838	3.819	NA
	IMPORTS
		C.I.F. Value of Import	1.639	0.053	NA
	TOTAL IMPORTS		1.639	0.053	NA
	Earnings Per Share (Rs.)		1.93	--	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	6.52	2.35	(9.93)
Net Profit Margin (PBT/Sales)	(%)	7.75	3.62	(11.26)
Return on Total Assets (PBT/Total Assets}	(%)	7.04	4.04	(5.67)
Return on Investment (ROI) (PBT/Networth)		0.24	0.21	(0.36)
Debt Equity Ratio (Total Liability/Networth)		2.51	4.34	3.63
Current Ratio (Current Asset/Current Liability)		2.97	2.13	3.16

LOCAL AGENCY FURTHER INFORMATION

Note : The registered office address of the company has been shifted from Purshottam Estate, Bahocharjird, Baroda – 390018, Gujarat, India to present address w.e.f. 27.03.2008

Form : 8

Corporate identity number of the company	U29259GJ1974PTC002518
Name of the company	SPECTOMS ENGINEERING PVT LTD
Address of the registered office or of the principal place of business in India of the company	Puroshottam Estate Bahocharjird, Baroda - 390018, Gujarat India
This form is for	Modification of charge
Type of charge	Immovable property
Particular of charge holder	Bank Of Baroda, Laheripura New Road Branch, N. K. Zaveri Estate, Laheripura New Road, Vadodara – 390001, Gujarat, India
Nature of instrument creating charge	Supplemental Memorandum of Entry
Date of instrument Creating the charge	28/03/2007
Amount secured by the charge	Rs. 48.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Cash Credit Hypo. of Stock cum Bood Debts: 0.25% below BPLR i.e. 12.25% p.a. at present, payable at monthly rest Packing Credit: Upto 180 days not exceeding BPLR minus 3% points i.e. 9.50% p.a. at present payable at monthly rest. As per rating / bank's guidelines BP/BD: Up to 90 days- 3% below BPLR i.e. 9.50% p.a. at present payable at monthly rest, Beyond 90 days to 6 months 0.50% above BPLR i.e. 9.50% p.a. at present payable at monthly rest L/C- Commission as per rules Terms of repayment 12 Months subject to yearly review Margin Cash Credit : Stock and Book Debts -25% on Raw Materials & 30% on others Sub Limit PC cum FBP/FBD: 10% BP/BD- Nil Inland/Foreign LC-DP/DA : 25% Extent and operation of the charge The charge shall extend to repayment to the bank together with interest, additional interest, further interest by way of liquidated damages, interest tax, commitment charges, premia on prepayment or on redemption, costs, charges and expenses and other moneys payable under their respective Loan Agreements/ Letters of Sanction / Memorandum of Terms and Conditions, as amended from time to time. Other Nil
Short particulars of the property charged (Including location of the property)	Supplemntal Memorandum of Entry on immovable property being Leasehold Plot No.114 in Makarpura Industrial Estate, GIDC, Vadodara forming part of land bearing R.S. No.419/420 of Mouje Vadsar in District Baroda admeasuring 5167 sq. mtrs. Also collaterally secured by the mortgage of immovable properties being Flat 404, Darpan Apt, R. C. Dutt Road, Vadodara and Flat No. A-3, Krishna Apt, R. C. Dutt Road, Vadodara belonging to Mr. A. A. Shah and Mr. R. A. Shah respectively.

FIXED ASSETS :

• Plant and Machinery
• Motor Car
• Air Conditioners
• Fax Machine
• Cycles
• Capital WIP
• Factory Building
• Office Equipments
• Scooter
• Typewriter
• Furniture and Fixtures

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. 44.48
UK Pound	1	Rs. 72.36
Euro	1	Rs. 64.42

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--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		29

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.