MIRA INFORM REPORT

Report Date :

21.01.2011

IDENTIFICATION DETAILS

Name :	SERVOTECH INDIA LIMITED
Formerly Known As :	SERVOTECH ENGINEERS (INDIA) LIMITED
Registered Office :	3 Amitex House, Novelty Silk Mills Compound, Dahisar (East), Mumbai-400068, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	09.07.1986
Com. Reg. No.:	11-40345
CIN No.: [Company Identification No.]	U29100MH1986PLC040345
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer of Oil Extraction Plants.

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 30000
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 (GENERAL DETAILS)

Name :	Ms. Preeti
Designation :	Accounts Department
Date :	13.01.2011

LOCATIONS

Registered Office :	3 Amitex House, Novelty Silk Mills Compound, Dahisar (East), Mumbai-400068, Maharashtra, India
Tel. No.:	91-22-28624357/ 58/ 28083295
E-Mail :	info@servotech-india.com preetighiya@hotmail.com
Corporate Office :	Office No. 8, A Wing, “B” Building, Shiv Sagar Apartments, Ram S.V. Road, Near Vijay Sales, Borivali (West), Mumbai-400066, Maharashtra, India
Tel. No.:	91-22-28624357/ 58/ 28083295
Fax No.:	91-22-28083296

DIRECTORS

As on 29.09.2010

Name :	Mr. Nileshkumar R Lahoti
Designation :	Director
Address :	18/D, Prem Apartment, Saibaba Nagar, Borivali West, Mumbai-400092, Maharashtra, India
Date of Appointment :	02.07.2001
DIN No.:	00755193
Name :	Mr. Murli M Radheshya, Lahoti
Designation :	Director
Address :	18-D-303, Prem Apartments, Saibaba Nagar, Borivali (West), Mumbai-400092, Maharashtra, India
Date of Appointment :	02.07.2001
DIN No.:	02570460
Name :	Mr. Rohit T Doshi
Designation :	Director
Address :	301, 301A, Giriraj Apartment, Factory Lane, 3^rd Floor, Opposite M.K High School, Borivali (West), Mumbai-400092, Maharashtra, India
Date of Birth/Age :	05.12.1962
Date of Appointment :	08.10.2007
DIN No.	02570480

KEY EXECUTIVES

Name :	Ms. Preeti
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders	No. of Shares
Murali Manohar Lahoti	50000
Nilesh Kuma Lahoti	45070
Total	95070

Equity Share Breakup (Percentage of Total Equity)

As on 29.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Oil Extraction Plants.

Products :

Production Description	ITC Code
Castor Oil Plants	151530.00
Food Processing Plants	84792001
Chemical/ Petrochemical Plants	847989.02
Pharmaceutical Plants	847989.02
Distillery and its all types of equipments, accessories, parts and components	841940.001 and 841940.02

· Solvent Extraction plant

· Vegetable Oil Refining Plant

· Vanaspati/ Hydrogenation plant

· Spice Extraction plant

· Dry Fractionation plant

· Tea Extraction Plant

· Oil Mill/ Expeller

· Cotton Seed Processing Complex

· Castor Oil Derivatives Complex

· Lecithin Plant

· Acid Oil Plant

· Feed Milling Plant

· Bio-Diesel Plant

· Oleo Chemicals Plant

· Cattle Feed Plan etc.

Services :

· Engineer, Manufacturing, Testing, Packaging, Installation and Startup of the Plant

· Righ From Conceptualization to Commissioning of the Plants etc.

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Customers :

End Users and OEM’s

· Andhra Oil and Cake Products Limited

· Deccan Solvent Oil Extractions Private Limited

· Vegetable Oil and Chemical Industries

· Gongadi Ramppa Oil Mill

· Coromandel Agro Products and Oils Limited

· The Haryana State Co-Operative Supply and Mareketing Federation Limited

· Anand Taluka Co-Operative Cotton Seed Ginning and Pressing Society Limited

· Mukesh Extractions Private Limited

· Hathwa Vanaspati Limited

· Prabhat Solvent Extraction Industries Private Limited

· Deepak Vegetable Industries

· Nav Maharashtra Chakan Oil Mills Limited

No. of Employees :

Approximately 50 (Office 8, Factory 42)

Bankers :

Punjab Natioanl Bank, MID Corporate Branch, Brady House, V.N. Road, Fort, Mumbai-400023, Maharashtra, India

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Cash Credit Account with
Punjab National Bank (The above loans are secured by the office premises situated at 203, Chartere House, Dr. C H Street, New Marinelines, Mumbai-400002 and personal guarantee by the directors)	17.304	3.684
Packing Credit Limit with
Punjab National Bank (The above loans are secured by the premises situated at 501-502, 5^th Floor, Triveni Krupa Building, Cater Road No. 3, Borivali (East), personal guarantee byt eh directors	0.000	2.869
Total	17.303	6.553
Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Others	22.850	0.000
Total	22.850	0.000

Banking Relations :	--
Auditors :
Name :	Amit Dish and Associates Chartered Accountant
Address :	14, Chitalia House, 1^st Floor, Dr. C.H. Street, Marine Lines, Mumbai-400002, Maharashtra, India

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs. 10/- each	Rs. 2.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
95070	Equity Shares	Rs. 10/- each	Rs. 0.951 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		0.951	0.951	0.951
2] Share Application Money		2.552	0.000	0.000
3] Reserves & Surplus		4.034	2.219	0.382
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		7.537	3.170	1.333
LOAN FUNDS
1] Secured Loans		17.303	6.553	2.153
2] Unsecured Loans		22.850	0.000	0.000
TOTAL BORROWING		40.153	6.553	2.153
DEFERRED TAX LIABILITIES		0.178	0.070	0.022
TOTAL		47.868	9.793	3.508
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		28.135	1.602	0.335
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	10.226	8.925	1.327
	Sundry Debtors	61.658	18.850	3.191
	Cash & Bank Balances	33.418	0.250	1.094
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	10.137	16.453	29.571
Total Current Assets		115.439	44.478	35.183
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	73.033	19.513	1.930
	Other Current Liabilities	21.912	15.820	29.834
	Provisions	0.761	0.954	0.246
Total Current Liabilities		95.706	36.287	32.010
Net Current Assets		19.733	8.191	3.173
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		47.868	9.793	3.508

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	267.459	358.438	82.900
		Other Income	1.120	0.487	0.239
		TOTAL (A)	268.579	358.925	83.139
Less	EXPENSES
		Purchase (Material Consumed)	241.929	334.183	75.259
		Manufacturing Expenses	8.639	9.891	3.325
		Employees’ Remuneration and benefits	5.350	3.618	1.672
		Administrative Expenses	7.095	7.613	2.018
		TOTAL (B)	263.013	355.305	82.274
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5.566	3.620	0.865
Less	FINANCIAL EXPENSES (D)		2.542	0.616	0.184
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.024	3.004	0.681
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.339	0.165	0.025
	PROFIT BEFORE TAX (E-F) (G)		2.685	2.839	0.656
Less	TAX (I)		0.870	1.002	0.268
	PROFIT AFTER TAX (G-I) (J)		1.815	1.837	0.388
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.219	0.382	[0.006]
	BALANCE CARRIED TO THE B/S		4.034	2.219	0.382
	Earnings Per Share (Rs.)		19.09	--	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.68	0.51	0.47
Net Profit Margin (PBT/Sales)	(%)	1.00	0.79	0.79
Return on Total Assets (PBT/Total Assets}	(%)	1.87	6.16	1.85
Return on Investment (ROI) (PBT/Networth)		0.36	0.90	0.49
Debt Equity Ratio (Total Liability/Networth)		18.03	13.51	25.63
Current Ratio (Current Asset/Current Liability)		1.21	1.23	1.10

LOCAL AGENCY FURTHER INFORMATION

Trade References:

· Andhra Oil and Cake Products Limited

Performance Review:

The performance of the company during the year was satisfactory and the base business grew strongly.

The turnover of the company decrease by Rs. 267.500 Millions as compared to Rs. 358.400 Millions in the previous year.

The company earn the Profit before the Tax and Depreciation to the tune of Rs. 3.024 Millions as compared to Rs. 3.004 Millions during the previous year.

Bankers Charges Report as per Registry

Corporate identity number of the company	U29100MH1986PLC040345
Name of the company	SERVOTECH INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	3 Amitex House, Novelty Silk Mills Compound, Dahisar (East), Mumbai-400068, Maharashtra, India
This form is for	Modification of Charge
Charge identification number of the charge to be modified	10169069
Type of charge	Immovable Property
Particular of charge holder	Punjab Natioanl Bank, MID Corporate Branch, Brady House, V.N. Road, Fort, Mumbai-400023, Maharashtra, India
Nature of instrument creating charge	Letter of Title Deposit with Bank as Security for the credit facility of Rs. 17.500 Millions (Enhanced from Rs. 5.000 Millions ) and General Counter Indemnity for Rs. 50.000 Millions. (Both the above documents constitute single charge of Rs. 67.500 Millions)
Date of instrument Creating the charge	23.11.2009
Amount secured by the charge	Rs. 67.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest By this submission, the company has created charge on immovable property to secure bank fro the total fund based and non fund base facilities of Rs. 67.500 Millions. Sanctioned to the company. Terms of Repayment By this submission, the company has created charge on immovable property to secure bank fro the total fund based and non fund base facilities of Rs. 67.500 Millions. Sanctioned to the company. Margin By this submission, the company has created charge on immovable property to secure bank fro the total fund based and non fund base facilities of Rs. 67.500 Millions. Sanctioned to the company. Extent and Operation of the charge Rs. 67.500 Millions and operation of first charge on immovable property to secure bank for the total fund base facilities of Rs. 67.500 Millions. sanctioned to the company.
Short particulars of the property charged	First charge on immovable property to secure bank for the total fund base and non fund base facilities of Rs. 67.500 Millions sanctioned to the company (immovable property as mentioned in title deeds) Plot No. 9-63, Admeasuring 7800 sq.mts, Tarapur Industrial Area, Vaillage: Pemtebhi, Taluka: Palghar, District Thane.
Particulars of the present modification	By the modification, the company has created first charge on immovable property to secure bank for the total fund base and non fund base facilities of Rs. 67.500 Millions. Sanctioned to the company (immovable property: Plot No. 9-63, Admeasuring 7800 sq.mts., Tarapur Industria Area, Village: Pemtebhi, Taluka Palghar, District Thane as more specifically mentioned in the title deeds) The last charge was registered on 12.01.2009 for Rs. 5.000 Millions under charge ID10169069 by SRN158540311

Fixed Assets:

· Freehold Land

· Factory Building

· Plant and Machinery

· Office Equipments

· Computer

· Furniture and Fixtures

· Telephone Systems

· Motor Car

· Motor Cycles

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.45.58
UK Pound	1	Rs.72.73
Euro	1	Rs.61.45

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	NO
--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.