MIRA INFORM REPORT

Report Date :

08.08.2011

IDENTIFICATION DETAILS

Name :	APPLICOMP (INDIA) LIMITED
Registered Office :	Gangapur Gin Compound Station Road, Ahmednagar – 414 001, Maharashtra
Country :	India
Financials (as on) :	31.07.2010
Date of Incorporation :	31.12.1996
Com. Reg. No.:	25-104800
Capital Investment / Paid-up Capital :	Rs.1382.928 millions
CIN No.: [Company Identification No.]	u29302PN1996ptc104800
TAN No.: [Tax Deduction & Collection Account No.]	muma14916G
Legal Form :	A Closely held Public Limited Liability Company.
Line of Business :	Manufacturer and Trader of Refrigerator, Washing Machine and Television.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 8100000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is a well established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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

LOCATIONS

Registered Office :	Gangapur Gin Compound Station Road, Ahmednagar – 414 001, Maharashtra, India
Tel. No.:	91-241-2358427 / 2355121
Fax No.:	91-241-2824775
E-Mail :	secretarial1@gmail.com info@applicomp.in
Factory :	Survey No 6-11, Krishnasagara Village, Anekal Taluk, Attibele, Hosur Road, Bangalore – 562 107, Karnataka, India
Tel. No.:	91-80-27821845 / 27820890 / 27820891 / 27820892
Fax No.:	91-80-27821154

DIRECTORS

As on 31.01.2011

Name :	Mr. Pradipkumar Nandlal Dhoot
Designation :	Director
Address :	99, Manav Mandir Road, Videocon House, 1st Floor, Napean Sea Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	22.03.1960
Date of Appointment :	31.12.1996
DIN No. :	01635315
Name :	Mr. Subramanian Padmanabhan
Designation :	Director
Address :	30, Senapti Bapat Road, Vishrambagh Society, Pune – 411 006, Maharashtra, India
Date of Birth/Age :	01.09.1939
Date of Appointment :	31.12.1996
DIN No. :	00001207
Name :	Mr. Suresh Madhava Hegde
Designation :	Director
Address :	51, Plot No. C-1, C-2, Dream Queen, SVP Road, Santacruz (West), Mumbai – 400 054, Maharashtra, India
Date of Birth/Age :	19.03.1958
Date of Appointment :	08.03.2006
DIN No. :	01321882
Name :	Mr. Anirudha Venugopal Dhoot
Designation :	Director
Address:	101, Videocon House, 1^st Floor, 99 Manav Mandir, Napean Sea Road, Opp. J M Mehta Bus Stop, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	31.03.1978
Date of Appointment :	19.09.2001
DIN No. :	01620906
Name :	Mr. Sharad Bansilal Palod
Designation :	Director
Address :	Ashish Bunglow, Station Road, Gangapur Gin Compound, Ahmednagar – 414 001, Maharashtra, India
Date of Birth/Age :	23.10.1944
Date of Appointment :	31.12.1996
DIN No. :	01799051
Name :	Mr. Yatinder Vir Singh
Designation :	Additional Director
Address :	2104/B-II, Vasant Kunj, New Delhi – 110 070, Delhi, India
Date of Birth/Age :	16.08.1962
Date of Appointment :	20.05.2011
DIN No. :	02223708

KEY EXECUTIVES

Name :	Ms. Sonal Bhandari
Designation :	Secretary
Address :	C-7, Rajhans Residency, D.P. Road, Aundh, Pune-411052, Maharashtra, India
Date of Birth/Age :	16.02.1986
Date of Appointment :	01.08.2009
PAN No. :	ANIPB4203H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.01.2011

Names of Shareholders	No. of Shares
Videocon Industries Limited, India	17023500
Value Industries Limited, India	9712000
Kail Limited, India	1683000
Dome-Bell Electronics India Private Limited, India	18258000
Indian Refrigerator Company Limited, India	1683000
Tekcare India Private Limited, India	10098000
Shree Dhoot Trading and Agencies Limited, India	20098000
Partecipazioni Italiane SPA, Italy	59737337
Total	138292837

Equity Share Breakup (Percentage of Total Equity)

As on 31.01.2011

Category	Percentage of Holding
Foreign holdings (Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident indian(s) or overseas corporate bodies or others)	43.20
Bodies corporate (not mentioned above)	56.80
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Trader of Refrigerator, Washing Machine and Television.

Products :

Item Code No. (ITC Code)	Product Description
8418.00	Refrigerator
8450.00	Washing Machine
8528.00	Television

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Punjab National Bank,

• Brady House, V N Road Rort, Mumbai – 400 001, Maharashtra, India
• MID Corporate Branch, Horniman circle, Fort, Mumbai – 400 023, Maharashtra, India

· Allahabad Bank

o Industrial Finance Branch, Allahabad Bank Building, 2^nd Floor, 37, M S Marg, Fort, Mumbai – 400 001, Maharashtra, India

o Industrial Finance Branch, Apeejay House, 3, Dinsha Wacha Road, Near Kc College, Churchgate, Mumbai - 400020, Maharashtra, India

ICICI Bank Limited

Landmarkrace Cource Circle, Alkapuri, Baroda – 390 015, Gujarat, India

Facilities :

Secured Loans	As on 31.07.2010 Rs. in millions	As on 31.07.2009 Rs. in millions
Term Loans
Rupee Loan from Bank	999.956	999.993
Foreign Currency Loan from Bank	2218.720	2490.149
Working Capital Loan from Banks	73.683	864.171
Total	3292.359	4354.313

Unsecured Loans	As on 31.07.2010 Rs. in millions	As on 31.07.2009 Rs. in millions
From Banks	999.981	0.000
From Others	1500.000	1000.000
Total	2499.981	1000.000

Banking Relations :

---

Auditors :

Name :

Kadam and Company

Chartered Accountants

Address :

“Vedant” 8/9, Viraj Estate, Opposite Tarakpur Bus Stand, Ahmednagar-414003, Maharashtra, India

CAPITAL STRUCTURE

As on 31.07.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
150000000	Equity Shares	Rs.10/- each	Rs.1500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
138292837	Equity Shares	Rs.10/- each	Rs.1382.928 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.07.2010	31.07.2009	31.07.2008
SHAREHOLDERS FUNDS
1] Share Capital		1382.928	1382.928	1382.928
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		648.173	579.057	526.590
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2031.101	1961.985	1909.518
LOAN FUNDS
1] Secured Loans		3292.359	4354.313	3218.893
2] Unsecured Loans		2499.981	1000.000	1400.000
TOTAL BORROWING		5792.340	5354.313	4618.893
DEFERRED TAX LIABILITIES		109.968	69.016	53.123
TOTAL		7933.409	7385.314	6581.534
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5429.626	4673.611	5139.671
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		567.983	487.330	386.847
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2215.011	2100.234	1925.283
	Sundry Debtors	1800.031	1679.177	1317.488
	Cash & Bank Balances	74.761	78.269	163.156
	Other Current Assets	3.475	2.058	8.966
	Loans & Advances	109.134	154.744	139.616
Total Current Assets		4202.412	4014.482	3554.509
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2174.661	1711.275	2412.069
	Other Current Liabilities	58.281	53.824	68.105
	Provisions	33.670	25.010	19.319
Total Current Liabilities		2266.612	1790.109	2499.493
Net Current Assets		1935.800	2224.373	1055.016
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		7933.409	7385.314	6581.534

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.07.2010	31.07.2009	31.07.2008
	SALES
		Income	8501.200	7448.339	6926.519
		Other Income	15.000	8.433	10.327
		TOTAL (A)	8516.200	7456.772	6936.846
Less	EXPENSES
		Cost of Goods Consumed/ Sold	8423.700	6185.865	5645.284
		Salary, Wages and Employees’ Benefit		80.828	96.228
		Manufacturing and Other Expenses		384.266	388.058
		TOTAL (B)	8423.700	6650.959	6129.570
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(Including Financial Expenses and Depreciation)	805.813	807.276
Less	FINANCIAL EXPENSES (D)			253.474	308.760
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			552.339	498.516
Less/ Add	DEPRECIATION/ AMORTISATION (F)			477.452	457.827
	PROFIT BEFORE TAX (E-F) (G)		92.500	74.887	40.689
Less	TAX (H)		41.000	25.998	(7.895)
	PROFIT AFTER TAX (G-H) (I)		51.500	48.889	48.584
Add	EXCESS PROVISION OF INCOME TAX FOR EARLIER YEARS W/BACK		NA	3.577	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	526.591	478.007
	BALANCE CARRIED TO THE B/S		NA	579.057	526.591
	IMPORTS
		Raw Materials	163.344	496.421	611.750
		Capital Goods	0.000	0.000	0.131
	TOTAL IMPORTS		163.344	496.421	611.881
	Basic and Diluted Earnings Per Share (Rs.)		0.37	0.38	0.35

KEY RATIOS

PARTICULARS		31.07.2010	31.07.2009	31.07.2008
PAT / Total Income	(%)	0.60	0.66	0.70
Net Profit Margin (PBT/Sales)	(%)	1.09	1.01	0.58
Return on Total Assets (PBT/Total Assets)	(%)	0.96	0.86	0.47
Return on Investment (ROI) (PBT/Networth)		0.05	0.04	0.02
Debt Equity Ratio (Total Liability/Networth)		3.97	3.64	3.72
Current Ratio (Current Asset/Current Liability)		1.85	2.24	1.42

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS AND FINANCIAL RESULTS

During the year, the net sales of the Company have shown a remarkable increase of Rs.1052.800 millions, from Rs.7448.400 millions to Rs.8501.200 millions, representing a growth of 14.1%, The total expenditure amounted to Rs.8423.700 millions as against Rs.7383.900 millions, representing an increase of Rs.1041.800 millions. The Company posted a net profit of Rs.51.500 millions as against Rs.48.900 millions for the previous year. An amount of Rs.648.200 millions has been transferred to Balance Sheet.

FUTURE PLAN OF ACTION

The Company shall continue to invest in better infrastructure, additional manpower and new technologies and processes and the Company aims to offer better quality product at affordable prices.

The Company proposes the following activities in near future:

· Continued strong focus on total cost productivity and process improvements;

· Focus on premium product offerings; and

· Continued focus to make more energy efficient products

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

Particulars	31.07.2010 Rs. In Millions	31.07.2009 Rs. In Millions
a) Letter of Guarantees	183.747	102.909
b) Letters of Credit opened	143.293	257.734
c) Custom Duty Demand under dispute	369.808	369.808
d) Excise Duty Demand under dispute	13.769	10.837
e) Service Tax demands under dispute	7.034	Nil

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U29302PN1996PLC104800
Name of the company	APPLICOMP (INDIA) LIMITED
Address of the registered office or of the principal place of business in India of the company	Gangapur Gin Compound Station Road, Ahmednagar – 414 001, Maharashtra, India
Type of charge	Immovable property Movable property (not being pledge)
Particular of charge holder	Allahabad Bank Industrial Finance Branch, Allahabad Bank Building, 2^nd Floor, 37, M S Marg, Fort, Mumbai – 400 001, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Term Loan Agreement dated 20.06.2011 and Declaration by the Borrower-Mortgagor on Affidavit dated 20.06.2011 executed by the Company together with Recital executed by Allahabad Bank (the "Bank").
Date of instrument Creating the charge	20.06.2011
Amount secured by the charge	Rs.2000.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of interest Base Rate+1.50% p.a. with monthly rest (floating) Terms of repayment Repayment in 18 quarterly installments beginning from 3rd quarter of the first disbursement. The first 17 installments will be of Rs.100.000 millions each and last installment of Rs.300.000 millions. Margin 15% minimum subject to the condition that margin on loan component of repairs and maintainance be raised to 30%. Extent and operation of the charge 1st Mortgage of immovable property and all factories, buildings, structures, immovable plants and machinery erected or situated at immovable property and any other buildings, factories, structures, immovable plant and machinery and all those existing and future machinery, plants, capital goods, assets, purchased/to be purchased out of term loan. Others Other terms and conditions as may be agreed to between the Company and the Bank, from time to time.
Short particulars of the property charged	· First Mortgage of the immovable property and all factories, buildings, structures, immovable plants and machinery erected on or affixed to or situated on the immovable property and any other buildings · factories, structures, immovable plant and machinery which might hereafter be erected on or affixed to or situated on the immovable property · including land and building built on 30 acres and 34-1/2 guntas of land in Survey No. 6,7,8,9,10,5/P and 14/P of Krishnasagara Village, · and Survey No. 41/2A, 41/2B and 41/4 of Manchenhally Village, Attiblled Hobli, Anekal Taluk, Dist. Bangalore - Karnataka and · All those machinery/plant/capital goods/assets purchased/ to be purchased by the Company out of the term loan granted and · All those machinery/ plant/ vehicle/ capital goods/ assets/ grafts and all those assets / movable properties

Fixed Assets

· Land

· Buildings

· Plant and Machinery

· Electrical Installation

· Computers

· Furniture and Fixtures

· Office Equipments

· Vehicles

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.44.80
UK Pound	1	Rs.72.86
Euro	1	Rs.63.11

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		34

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.