MIRA INFORM REPORT

Report Date :

16.04.2011

IDENTIFICATION DETAILS

Name :	INNOVATIVE MOTORS PRIVATE LIMITED
Registered Office :	23-A, Shivam Society, Near Lalbaug Crossing, Manjalpur, Vadodara – 390 011, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	11.02.2002
Com. Reg. No.:	04-040452
CIN No.: [Company Identification No.]	U34300GJ2002PTC040452
TAN No.: [Tax Deduction & Collection Account No.]	BRDI00184C
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Scooter and Automobile Parts.

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 46000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

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

INFORMATION PARTED BY

Name :	Ms. Dipti
Designation :	Sales Manager
Contact No.:	91-9824650776
Date :	15.04.2011

LOCATIONS

Registered Office :	23-A, Shivam Society, Near Lalbaug Crossing, Manjalpur, Vadodara – 390 011, Gujarat, India
Mobile No.:	91-9824001399 (Mr. Pranav Shah) 91-9824650776 (Ms. Dipti)
E-Mail :	sapatel@satyam.net.in b-b@innovativehonda.com
Website :	http://www.innovativehonda.com
Area :	4000 sq. ft.
Location :	Owned
Warehouse :	CG Road, Navarangpura, Ahmedabad – 380 009, Gujarat, India
Tel. No.:	91-79-26565655/ 26565654/ 26565545
Fax No.:	91-79-26565654

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Bhavesh Bhupendrabhai Patel
Designation :	Director
Address :	23-A Shivam Society, Manjalpur, Vadodara-390011, Gujarat, India
Date of Birth/Age :	12.02.1969
Qualification :	Graduate
Date of Appointment :	11.02.2002
Name :	Mr. Atul Bhupendrabhai Patel
Designation :	Director
Address :	23-A Shivam Society, Manjalpur, Vadodara-390011, Gujarat, India
Date of Birth/Age :	07.01.1971
Qualification :	Graduate
Date of Appointment :	11.02.2002
Name :	Mr. Pranav Harikant Shah
Designation :	Director
Address :	23-A Shivam Society, Manjalpur, Vadodara-390011, Gujarat, India
Date of Birth/Age :	13.09.1971
Qualification :	Graduate
Date of Appointment :	11.02.2002
Name :	Mr. Sanjay Navnitbhai Purohit
Designation :	Director
Address :	B-6, Vaibhav Vatika Society, Manjalpur, Vadodara-390011, Gujarat, India
Date of Birth/Age :	18.03.1969
Date of Appointment :	11.02.2002

KEY EXECUTIVES

Name :	Ms. Dipti
Designation :	Sales Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Bhavesh Bhupendrabhai Patel	41000
Atul Bhupendrabhai Patel	54000
Pranav Harikant Shah	5000
Total	100000

AS ON 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Trader of Scooter and Automobile Parts.
Terms :
Selling :	Cash
Purchasing :	Cash and Cheque

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

60 (Approximately)

Bankers :

• Bank of Baroda, Law Garden Branch, Bank Of Baroda Tower, Ground Floor, Opposite NCC Ground, Ellisbridge, Ahmedabad – 380 006, Gujarat, India
• Citi Bank, Baroda
• ICICI Bank Limtied, Ahmedabad
• State Bank of India

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Term Loan
Bank of Baroda (Vehicle Loan)	0.259	0.386
Working Capital Loans
Aman Lease and Finance Limited	0.000	0.486
ICICI Bank CC A/c	3.164	0.217
Bank of Baroda	8.851	17.500
Total	12.274	18.589

Note

Term loan is secured against vehicle. Working capital loan from Bank is secured against hypothecation of stock in trade, book debts and equitable mortgage of building and as well as personal guarantee of directors.

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Directors	1.937	4.624
From Share Holders and Directors Relatives	19.560	22.422
Total	21.497	27.046

Banking Relations :	--
Auditors :
Name :	S.A. Patel and Company Chartered Accountants
Address :	422, Paradise Complex, Sayajigunj, Vadodara – 390 005, Gujarat, India
Associated Concerns :	Innovative School of Business and Management Private Limited Harshil Motors Private Limited Shree Krishna Pulverizer Krishna Corporation

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Share	Rs.10/- each	Rs.1.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100000	Equity Share	Rs.10/- each	Rs.1.000 million

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		1.000	1.000	1.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		10.524	8.316	5.973
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		11.524	9.316	6.973
LOAN FUNDS
1] Secured Loans		12.274	18.589	3.534
2] Unsecured Loans		21.497	27.046	28.129
TOTAL BORROWING		33.771	45.635	31.663
DEFERRED TAX LIABILITIES		0.547	0.589	0.540
TOTAL		45.842	55.540	39.176
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		27.414	28.532	29.886
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.805	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	16.393	15.215	5.661
	Sundry Debtors	2.254	2.005	3.736
	Cash & Bank Balances	4.233	12.242	3.334
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	13.272	7.211	5.316
Total Current Assets		36.152	36.673	18.047
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.191	2.129	2.808
	Current Liabilities	15.338	7.398	5.945
	Provisions	0.000	0.138	0.004
Total Current Liabilities		18.529	9.665	8.757
Net Current Assets		17.623	27.008	9.290
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		45.842	55.540	39.176

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	311.469	283.118	293.458
		Other Income	3.464	3.186	4.502
		TOTAL	314.933	286.304	297.960
Less	EXPENSES
		Office Expenses	311.700	282.915	296.081
		Administrative Expenses
		Advertising Expenses
		TOTAL	311.700	282.915	296.081
	PROFIT BEFORE TAX		3.233	3.389	1.879
Less	TAX		1.025	1.046	0.994
	PROFIT AFTER TAX		2.208	2.343	0.885
	Earnings Per Share (Rs.)		22.08	23.43	8.85

Expected Sales (2010-11): Rs.345.000 millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.70	0.82	0.30
Net Profit Margin (PBT/Sales)	(%)	1.04	1.20	0.64
Return on Total Assets (PBT/Total Assets}	(%)	5.09	5.20	3.92
Return on Investment (ROI) (PBT/Networth)		0.28	0.36	0.30
Debt Equity Ratio (Total Liability/Networth)		4.54	5.94	5.80
Current Ratio (Current Asset/Current Liability)		1.95	3.79	2.06

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditor	3.191	2.129	2.808

NOTE

Registered Office of the company has been shifted from 5 Pramukh Prasad Socnr, Manjilpur, Township, Manjalpur, Vadodara-390011, Gujarat, India to the present address w.e.f. 18.03.2010

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U34300GJ2002PTC040452
Name of the company	INNOVATIVE MOTORS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	23-A, Shivam Society, Near Lalbaug Crossing, Manjalpur, Vadodara-390011, Gujarat, India
Type of charge	Immovable Property
Particular of charge holder	Bank of Baroda, Law Garden Branch, Bank Of Baroda Tower, Ground Floor, Opposite NCC Ground, Ellisbridge, Ahmedabad-380006, Gujarat, India Email ID : lawahm@bankofbaroda.com
Nature of description of the instrument creating or modifying the charge	Instrument Relating to Deposit of Title Deeds
Date of instrument Creating the charge	26.02.2009
Amount secured by the charge	Rs.30.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Over Draft (Under Baroda Traders Loan Scheme) (Rs. 30.000 millions) : 0.75% above BPLR i.e. 13.25% at presently with monthly rest subject to change from time to time Terms of Repayment on demand Margin 40% of the proposed property Extent and Operation of the charge 12 months subject to yearly review
Short particulars of the property charged	All the piece or parcel of Non agricultural land bearing Sub Plot No. 3 adm. about 397 Sq. Mtrs. and Sub Plot No. 6 adm. 458 Sq. Mtrs. together with construction standing thereon, situated on the land bearing Final Plot No. 317/paiki of Town planning Scheme No. 3 of Village Changispur, Taluka City, Reg. District Ahmedabad and Sub-District Ahmedabad-380003, Gujarat, India (Memnagar)

TRADE REFERENCES:

· Honda

FIXED ASSETS

• Land
• Building
• Office Equipments
• Furniture
• Computers
• Vehicle

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.44.52
UK Pound	1	Rs.72.72
Euro	1	Rs.64.41

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	YES
--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	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.