MIRA INFORM REPORT

Report Date :

22.12.2011

IDENTIFICATION DETAILS

Name :	STARRAGHECKERT MACHINE TOOLS PRIVATE LIMITED
Registered Office :	Plot Nos.349/350, 9^th Cross, 4^th Phase, Peenya Industrial Area, Bangalore – 560 058, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.10.2008
Com. Reg. No.:	08-048140
Capital Investment / Paid-up Capital :	Rs.91.008 millions
CIN No.: [Company Identification No.]	U29220KA2008PTC048140
TAN No.: [Tax Deduction & Collection Account No.]	BLRS30553F
PAN No.: [Permanent Account No.]	AAMCS5522J
Legal Form :	Private Limited Liability Company
Line of Business :	The Company proposes to undertake manufacturing, trading and designing of Machine Tools and technical consultancy services.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (13)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a company having moderate track. There appears huge accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions.

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	Plot Nos.349/350, 9^th Cross, 4^th Phase, Peenya Industrial Area, Bangalore – 560 058, Karnataka, India
Tel. No.:	91-80-42770600/ 40977186
Fax No.:	91-80-40977338
E-Mail :	finance.in@starragheckert.com india@starragheckert.com
Website :	http://www.starragheckert.com

DIRECTORS

As on 30.09.2011

Name :

Chandramouli Alampundi Natarajan

Designation :

Managing Director

Address :

1141, 1^st Floor, 1^st Cross, 13^th Main, 2^nd Stage, Indiranagar, Bangalore – 560 008, Karnataka, India

Date of Birth/Age :

11.05.1957

Qualification :

MBA, IIM Calcutta

Experience :

32 Years

Date of Appointment :

05.03.2010

DIN No.:

00528825

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U29299KA2001PTC029127	Makino India Private Limited	Whole-time director	01-04-05	01-04-05	01-03-10	Active	NO
2	U29220KA2008PTC048140	Starragheckert Machine Tools Private Limited	Managing director	05-03-10	05-03-10	-	Active	NO

Name :

Frank Brinken

Designation :

Director

Address :

Lerchenweg 14, Rotkreuz, Switzerland 6343

Date of Birth/Age :

10.11.1948

Date of Appointment :

30.10.2008

DIN No.:

02296158

Name :

Gerold Brutsch

Designation :

Director

Address :

Rheinsagestr 13, Diessenhofen, Switzerland 8253

Date of Birth/Age :

24.03.1966

Date of Appointment :

30.10.2008

DIN No.:

02279038

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares	Percentage of Holding
StarragHeckert Holding AG, Switzerland	29299999	99.999997
StarragHeckert AG, Switzerland	1	0.000003
Total	29300000	100.00

As on 02.12.2011

Names of Allottees	No. of Shares
StarragHeckert Holding AG, Switzerland	5350000
Total	5350000

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00

BUSINESS DETAILS

Line of Business :

The Company proposes to undertake manufacturing, trading and designing of Machine Tools and technical consultancy services.

Products :

Item Code No. (ITC Code)	8457
Product Description	Horizontal Machine Centres

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Not Available

Facilities :

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Other debt unsecured	9.840	0.000
Total	9.840	0.000

Notes:

Other loans and advances: From StarragHeckert Holding AG

Banking Relations :	--
Auditors :
Name :	Rishi Madhur and Company Chartered Accountants
Address :	H.V.M. House, 1^st Floor, #106, Amarjyothi Layout, Off. Intermediate Ring Road, Domlur, Bangalore – 560 071, Karnataka, India
PAN No.:	AAGFR3584A
Holding Company :	StarragHeckert Holding AG Address: Seebleichestrasse, CH – 9404, Rorschacherberg, Switzerland
Group Company, Shareholder and subsidiary of Holding Company :	StarragHeckert AG, Switzerland
Group Company and subsidiary of Holding Company :	StarragHeckert GmbH, Germany

CAPITAL STRUCTURE

After 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs.500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
34650000	Equity Shares	Rs.10/- each	Rs.346.500 millions

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs.500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
29300000	Equity Shares	Rs.10/- each	Rs.293.000 millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9100816	Equity Shares	Rs.10/- each	Rs.91.008 millions

(Of the above 9,100,815 equity shares of Rs.10 each are held by StarragHeckert Holding AG and 1 share of Rs.10 is held by StarragHeckert AG)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		91.008	10.500	0.100
2] Share Application Money pending allotment		56.592	8.200	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(69.786)	(6.412)	(0.019)
NETWORTH		77.814	12.288	0.081
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		9.840	0.000	0.000
TOTAL BORROWING		9.840	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		87.654	12.288	0.081
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		23.548	2.427	0.000
Capital work-in-progress		29.786	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		1.142	0.047	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	81.240	20.075	0.000
	Sundry Debtors	1.166	0.000	0.100
	Cash & Bank Balances	14.643	5.154	0.000
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	10.552	0.625	0.000
Total Current Assets		107.601	25.854	0.100
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	68.710	15.294	0.000
	Other Current Liabilities	1.000	0.317	0.000
	Provisions	4.713	0.429	0.019
Total Current Liabilities		74.423	16.040	0.019
Net Current Assets		33.178	9.814	0.081
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		87.654	12.288	0.081

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	30.10.2008 to 31.03.2009
	SALES
		Income	1.051 (Gross Income)	0.000	0.000
		Other Income	NA	0.000	0.000
		TOTAL (A)	NA	0.000	0.000
Less	EXPENSES
		Pre-operative Expenses	NA	0.000	0.019
		Personnel Expenses	NA	2.990	0.000
		Operating Expenses	NA	3.264	0.000
		TOTAL (B)	NA	6.254	0.019
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	(6.254)	(0.019)
Less	FINANCIAL & OTHER CHARGES (D)		NA	0.005	0.000
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(58.892)	(6.259)	(0.019)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.578	0.180	0.000
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(64.470)	(6.439)	(0.019)
Less	TAX (H)		(1.096)	(0.047)	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(63.374)	(6.392)	(0.019)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	(0.019)	0.000
	BALANCE CARRIED TO THE B/S		NA	(6.412)	(0.019)
	IMPORT VALUE		58.746	16.455	0.000
	Earnings/ (Loss) Per Share (Rs.)
	- Basic		(6.96)	(16.09)	(1.93)
	- Diluted		NA	(13.37)	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	0.00	0.00
Net Profit Margin (PBT/Sales)	(%)	NA	0.00	0.00
Return on Total Assets (PBT/Total Assets}	(%)	(49.16)	(22.77)	(19.00)
Return on Investment (ROI) (PBT/Networth)		(0.83)	(0.52)	(0.23)
Debt Equity Ratio (Total Liability/Networth)		1.08	1.31	0.23
Current Ratio (Current Asset/Current Liability)		1.45	1.61	5.26

LOCAL AGENCY FURTHER INFORMATION

Note:

The registered office of the company has been shifted from Millenia Tower, Level 1, Tower B, No.1 and 2, Murphy Road, Ulsoor, Bangalore – 560 008, Karnataka to the present address w.e.f. 01.09.2010.

OPERATIONS:

The Company proposes to undertake manufacturing, trading and designing of Machine Tools and technical consultancy services in India. During the year, the Company has undertaken marketing, trading activities and services and proposes to set-up manufacturing facilities in the following years.

BACKGROUND:

The Company was incorporated on 30^th October, 2008. Company proposes to undertake manufacturing, trading and designing of Machine Tools and technical consultancy services in India. Company is a subsidiary of StarragHeckert Holding AG, Switzerland. The Company has commenced operations from June 2009.

FIXED ASSETS:

v Plant Machinery

v Office Equipments

v Computer Equipments

v Furniture Fixtures

v Vehicles

v Leasehold Improvements

v Leasehold Properties

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.52.67
UK Pound	1	Rs.82.53
Euro	1	Rs.69.13

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	-
--CREDIT LINES	1~10	-
--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		13

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.