MIRA INFORM REPORT

Report Date :

24.01.2011

IDENTIFICATION DETAILS

Name :	GENUS INNOVATION LIMITED
Formerly Known As:	K C M Mercantile Limited
Registered Office :	B-9, Ganpati Enclave, Ajmer Road, Jaipur – 302006, Rajasthan
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	27.01.1998
Com. Reg. No.:	014605
CIN No.: [Company Identification No.]	U51311RJ1998PLC014605
TAN No.: [Tax Deduction & Collection Account No.]	JDHK01706F
PAN No.: [Permanent Account No.]	AACCG4460D
Legal Form :	A closely held Public Limited Liability Company
Line of Business :	Manufacturer of Electronic Energy Meters and the Electronic Items.

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 308772
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be under pressure. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered 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 :	Mr. Jitendra Agarwal
Designation :	Director
Date :	22.01.2011

LOCATIONS

Registered Office :	B-9, Ganpati Enclave, Ajmer Road, Jaipur – 302006, Rajasthan, India
Tel. No.:	91-141-2220455
E-Mail :	genus.innovation@genus.in
Website :	www.genus.in
Area :	2500sq.fts
Location :	Owned
Factory 1 :	Spl – 3, Riico Industrial Area, Sitapura, Tonk Road, Jaipur – 302022, Rajasthan, India

DIRECTORS

AS ON 29.09.2010

Name :	Mr. Narayan Prasad Todi
Designation :	Director
Address :	B-5, Ganpati Enclave, Ajmer Road, Jaipur – 302006, Rajasthan, India
Date of Birth/Age :	11.12.1966
Date of Appointment :	27.01.1998
Name :	Ms. Parul Agarwal
Designation :	Director
Address :	B-9, Ganpati Enclave, Ajmer Road, Jaipur – 302006, Rajasthan, India
Date of Birth/Age :	23.07.1975
Date of Appointment :	18.06.2004
Name :	Mr. Jitendra Kumar Agarwal
Designation :	Director
Address :	-9, Ganpati Enclave, Ajmer Road, Jaipur – 302006, Rajasthan, India
Date of Birth/Age :	16.07.1977
Date of Appointment :	10.08.2005
Name :	Mr. Ishwar Chand Agarwal
Designation :	Director
Address :	-9, Ganpati Enclave, Ajmer Road, Jaipur – 302006, Rajasthan, India
Date of Birth/Age :	19.04.1950
Date of Appointment :	08.07.2009

KEY EXECUTIVES

Name :	Mr. Ankit Jhanjhari
Designation :	Secretary
Address :	106/5, Chattrapati Marg, Vijay Path, Mansarovar, Jaipur – 302020, Rajasthan, India
Date of Birth/Age :	17.08.1977
Date of Appointment :	22.01.2003

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2010

Shareholder's Name	No. Of Share
Jitendra Kumar Agarwal	488500
Narayan Prasad Todi	202600
Kailash Chandra Agarwal	175600
Nishu Todi	2300
Rubal Todi	7000
Parul Agarwal	2500
Bajrang Lal Todi (Huf)	2000
Indra Kanwari Todi	2000
Phoosh Raj Todi (Huf)	2000
Manju Devi Todi	2000
Anand Todi	2000
Anand Todi (Huf)	2500
Sharda Devi Todi	2500
Vishnu Todi	2500
Vishnu Todi (Huf)	2600
I.C. Agarwal	312400
I.C. Agarwal (Huf)	232400
Shanti Devi Agarwal	202400
Simple Agarwal	2400
Amit Agarwal	2400
Rajendra Agarwal	381800
Amrit Lal Todi	3500
Amrit Lal Todi (Huf)	2500
Sarita Devi Todi	2000
Banwari Lal Todi	2500
Rama Todi	2000
Baldev Kumar Agarwal	2500
Baldev Kumar Agarwal (Huf)	2000
Smt. Rakesh Agarwal	2500
Himanshu Agarwal	2000
Narayan Parsad Todi (Huf)	212000
Seema Todi	197500
Anju Agarwal	200000
Rajendra Agarwal (Huf)	250000
Monisha Agarwal	200000
Banwari Lal Todi (Huf)	28000
Total	3141400

AS ON 29.09.2010

Category	Percentage
Directors or relatives of Directors	98.22
Other top fifty shareholders	1.78
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Electronic Energy Meters and the Electronic Items.
Terms :
Selling :	Cash, Credit (30 days, 60 days, 90 days)
Purchasing :	Cash, Credit (30 days, 60 days, 90 days)

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Electronic Energy Meter and parts of EEM	Nos.	2400000	2400000	37460
Meter Boxes for Meter	Nos.	500000	500000	NA
Colour Television	Nos.	1500000	1500000	NA
Solar Panal	Nos.	40000	40000	NA
Modam	Nos.	40000	40000	NA
Inventor/UPS	Nos.	200000	200000	NA

GENERAL INFORMATION

Customers :

• End Users
• OEM’s

No. of Employees :

150

Bankers :

Bank of Baroda, M I Road, Jaipur

Facilities :

Cash Credit – Rs.99.000 Millions

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Term Loan from Bank of Baroda	0.000	0.051
Working Capital Loan from Bank of Baroda (Secured by equitable mortgage of land d and building of jaipur plant and hypothecation of stock of raw materials, semi finished goods, store and spares and packing material, outstanding mony, book debts, claims, bills, contracts, engagements, all tangibles movable plant and machinery vehicles and other movable assets of the company. The loan is further secured by personal guarantee of the director and personal property)	28.745	41.615
Overdraft From Bank of Baroda	0.000	8.681
Total	28.745	80.348

Banking Relations :	--
Auditors :
Name :	R Monnot and Company Chartered Accountant
Address :	C-68, Lalkhothi Scheme, Jaipur – 302015, Rajasthan, India
Tel. No.:	91-141-2742517
Fax No.:	91-141-2742073
Associates:	Genus Power Infrastructure Limited Hi Print Electromack Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs.35.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3141400	Equity Shares	Rs.10/- each	Rs.31.414 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Expected Sales (2010-2011) : Rs.150.000 Millions

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		31.414	31.414	31.414
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		45.779	40.832	38.961
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		77.193	72.246	70.375
LOAN FUNDS
1] Secured Loans		28.745	50.348	59.110
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		28.745	50.348	59.110
DEFERRED TAX LIABILITIES		4.568	6.679	6.947
TOTAL		110.506	129.273	136.432
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		77.852	47.575	49.581
Capital work-in-progress		0.745	0.000	0.000
INVESTMENT		3.851	3.851	13.024
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	37.527	15.619	22.909
	Sundry Debtors	44.731	73.847	109.397
	Cash & Bank Balances	10.195	17.954	14.787
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	73.392	39.080	36.785
Total Current Assets		165.845	146.500	183.878
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	94.280	43.811	85.905
	Other Current Liabilities	28.239	11.507	11.174
	Provisions	15.280	13.372	13.032
Total Current Liabilities		137.799	68.690	110.111
Net Current Assets		28.046	77.810	73.767
MISCELLANEOUS EXPENSES		0.012	0.037	0.060
TOTAL		110.506	129.273	136.432

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	76.495	127.485	314.154
		Other Income	10.831	3.434	3.042
		TOTAL (A)	87.326	130.919	317.196
Less	EXPENSES
		Raw Material Consumed	70.841	83.224	225.982
		Payment to Provision for Employees	16.532	16.272	15.074
		Manufacturing Expenses	2.225	2.292	2.285
		Administrative and Other Expenses	4.555	4.212	2.597
		Selling and Distribution Expenses	2.470	2.287	44.481
		Loss on sale of Investment	0.000	5.060	0.000
		Preliminary Expenses W/off	0.024	0.024	0.024
		Increased / (Decreased) in Stock	(25.259)	(3.494)	(1.090)
		TOTAL (B)	71.388	109.877	289.353
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		15.938	21.042	27.843
Less	FINANCIAL EXPENSES (D)		9.629	13.948	9.816
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6.309	7.094	18.027
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.994	3.200	3.062
	PROFIT BEFORE TAX (E-F) (G)		3.315	3.894	14.965
Less	TAX (I)		(1.612)	2.003	4.834
	PROFIT AFTER TAX (G-I) (J)		4.927	1.891	10.131
Less	INCOME TAX ADJUSTMENT		(0.020)	0.020	0.000
Less	TRASFER TO LOAN REDEMPTION RESERVE		0.000	0.000	10.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		30.832	28.961	28.835
Less	PRIOR PERIOD TO ADJUSTMENT		0.000	0.000	0.005
	BALANCE CARRIED TO THE B/S		35.779	30.832	28.961
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.084	39.284	40.957
	TOTAL EARNINGS		0.084	39.284	40.957
	IMPORTS
		Raw Materials	3.008	NA	NA
		Capital Goods	0.454	NA	NA
		Store Spares	NA	NA	3.682
	TOTAL IMPORTS		3.462	NA	3.682
	Earnings Per Share (Rs.)		1.57	0.60	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.64	1.44	3.19
Net Profit Margin (PBT/Sales)	(%)	4.33	3.05	4.76
Return on Total Assets (PBT/Total Assets}	(%)	1.36	2.00	6.41
Return on Investment (ROI) (PBT/Networth)		0.04	0.05	0.21
Debt Equity Ratio (Total Liability/Networth)		2.16	1.65	2.40
Current Ratio (Current Asset/Current Liability)		1.20	2.13	1.67

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE APPRAISAL AND OPERATIONAL REVIEW

The Company is primarily engaged in manufacturing of Electronic Energy Meters and other electronic items. It also carried out manufacturing of Electronic Energy Meters, Inverters and Home-UPS for other companies on Job work basis.

Due to the fire/blast on 29th October, 2009 at the IOCL’s depot adjoining the Jaipur manufacturing unit, the company has suffered significant damage to its assets and inventories. This accident has also adversely affected the operations and financial performance of the Company. The assets of the Company were fully insured and accordingly the claim has been filed with insurance company and the final claim is yet to be settled. The Company has received Compensation/ Adhoc relief from IOCL through RIICO in the month of August, 2010 on account of the said fire/ blast incident against the submission of Bank Guarantee as per the order of Hon’able Rajasthan High Court. The said adhoc relief is subject to the final decision of Hon’able Rajasthan High Court.

The Company for the year recorded a turnover of Rs.82.683 millions as compared to Rs.137.685 millions in previous year. The Profit before Tax was Rs.3.315 millions as compared to Rs.3.893 millions in the previous year. The Profit after Tax was Rs.4.927 millions as compared to Rs.1.891 millions in the previous year.

Due to the ongoing power sector reforms and continuous emphasis of Government of India on proactive power reforms through its programs, policies, regulations and higher budgetary allocations, the Directors are expecting good orders of Energy Meters as well as other electronics items in the coming year both in domestic market as well as for export to other countries. The Company is fully equipped to cater the demand of cost efficient and reliable power equipments.

Form 8:

Corporate identity number of the company	U51311RJ1998PLC014605
Name of the company	GENUS INNOVATION LIMITED
Address of the registered office or of the principal place of business in India of the company	B-9, Ganpati Enclave,Ajmer Road, Jaipur - 302 006, Rajasthan. India
This form is for	Modification of charge
Type of charge	Book Debts Movable Property Immovable Property
Particular of charge holder	Bank of Baroda
Nature of instrument creating charge	Letter of Bank confirming Interchangeability of LC to BG
Date of instrument Creating the charge	28/06/2010
Amount secured by the charge	Rs.99.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Extent and Operation of the charge The charge will operate as first charge.
Short particulars of the property charged	Secured by way of hypothecation of the borrower's stock of raw materials, stock-in-process, finished goods, consumable spares and packing materials, book debts and all the moveable machinery of the Borrower, including all stores and spare parts, both present and future, belonging to the Borrower and equitable mortgage of Plat No.SPL-2B, RIICO Industrial Area, Sitapura, Jaipur including land and buildings, structures, houses, outhouse, constructed thereon, plant and machinery installed thereon.
Date of instrument modifying the charge	26/05/2009
Particulars of the present modification	Interchangeability of Rs 15.000 Millions from Letter of Credit to Bank Guarantee ( including interchangeability of Rs.4.600 Millions allowed on 04.06.2010)

Fixed Assets:

• Leasehold Land
• Factory Building
• Office Building
• Motor Cars
• Tube Well
• Office Equipments
• Plant and Machinery
• Computers
• 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.45.70
UK Pound	1	Rs.72.78
Euro	1	Rs.61.65

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.