MIRA INFORM REPORT

Report Date :

04.07.2011

IDENTIFICATION DETAILS

Name :	CERAMED ENGINEERS PRIVATE LIMITED
Registered Office :	27-29, Supariwala Building, Emmerchant Road, Kagudak, Mumbai-400009, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	18.01.1988
Com. Reg. No.:	11-45916
Capital Investment / Paid-up Capital :	Rs.8.200 Millions
CIN No.: [Company Identification No.]	U74210MH1988PTC045916
TAN No.: [Tax Deduction & Collection Account No.]	MUMC12102G
PAN No.: [Permanent Account No.]	AABCC1878N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer Wibro Finishing Machines.
No. of Employees :	30 Approximately

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 89000
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 low. However trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small 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. Jayan K C
Designation :	Administrator
Contact No.:	91-9900163166
Date :	27.06.2011

LOCATIONS

Registered Office :	27-29, Supariwala Building, Emmerchant Road, Kagudak, Mumbai-400009, Maharashtra, India
Tel. No.:	91-80-28363040
Mobile No.:	91-9900163166 (Mr. Jayan)
Fax No.:	91-80-28362501
E-Mail :	ceramed@vsnl.com
Website :	http://www.ceramedengineers.com/
Factory :	B-67 and 68, 3^rd Stage, Peenya Industrial Estate, Bangalore-560058, Karnataka, India
Tel. No.:	91-80-28364026/ 28367454/ 28360924/ 28363040
Fax No.:	91-80-28362501
Area :	Owned

DIRECTORS

As on 27.09.2010

Name :	Mr. Mahadevan Gopal
Designation :	Director
Address :	# 432/ 28, 11^th Main, RMV Extension, Bangalore-560080, Karnataka India
Date of Birth/Age :	27.10.1956
Date of Appointment :	18.01.1988
DIN No. :	00710190
Name :	Mrs. Samta Gopal Mahadevan
Designation :	Director
Address :	# 432/ 28, 11^th Main, RMV Extension, Bangalore-560080, Karnataka India
Date of Birth/Age :	15.12.1959
Date of Appointment :	18.01.1988
DIN No. :	01239079
Name :	Mr. Mahadevan Narayan
Designation :	Director
Address :	# 432/ 28, 11^th Main, RMV Extension, Bangalore-560080, Karnataka India
Date of Birth/Age :	14.09.1962
Date of Appointment :	18.01.1988

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2010

Names of Shareholders	No. of Shares
Mahadevan Gopal	1200
Mahadevan Narayan	4800
Samta Gopal	6000
M Gopal – Partner(Geeyam Refractory)	70000
Total	82000

As on 27.09.2010

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

BUSINESS DETAILS

Line of Business :

Manufacturer Wibro Finishing Machines.

Products :

· Vibro Finishing Machine

· Vibratory Deburring Machine

· Vibro Polisher

· Centrifugal High Energy Finished Machine

· Rotary Drier

· Vibratory Drier

· Other Products : Ceramic Media, Plastic Media, Porcelain Media, Chemical Compound, Corn Cob, Walnut Shell etc.

Product Description	ITC Code
Machinery for sorting screening separation or washing	8474-10
Mill Stones Grinding stones ceramic grinding chips	6801-90
Polishing and creams others	3405-90

Exports :

Products :

Wibro Finishing Machines

Countries :

· UK

· USA

Imports :

Products :

Raw Material

Countries :

· Germany

· USA

Terms :

Selling :

Cash

Purchasing :

Cash

GENERAL INFORMATION

Customers :

Manufacturer

No. of Employees :

30 Approximately

Bankers :

· State Bank of India

Peenya Industrial Estate Branch, B-96, II Cross, I Stage, Peenya Industrial Estate, Bangalore-560058, Karnataka, India

· Canara Bank, RMV Extension Branch, Bangalore-560080, Karnataka, India

· Indus Bank

· Axis Bank

· HDFC Bank Limited

Facilities :

Secured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
SBI CC A/C	11.782	11.777
Term Loan (SBI)	0.319	0.572
Total	12.101	12.349

Unsecured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
Narayan M	0.150	0.150
HDFC Bank Loan	1.000	0.000
Total	1.150	0.150

Banking Relations :	--
Auditors :
Name :	P. Ishwara Bhat and Company Chartered Accountant
Address :	Flat No. 107, Swiss Complex, No. 33, Race Course Road, Bangalore – 560 001, Karnataka, India

CAPITAL STRUCTURE

As on 27.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Share	Rs.100/- each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
82000	Equity Shares	Rs.100/- each	Rs.8.200 Millions

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		8.200	8.200	8.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		14.156	13.744	12.402
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		22.356	21.944	20.602
LOAN FUNDS
1] Secured Loans		12.101	12.349	14.227
2] Unsecured Loans		1.150	0.150	2.650
TOTAL BORROWING		13.251	12.499	16.877
DEFERRED TAX LIABILITIES		0.000	0.000	0.200
TOTAL		35.607	34.443	37.679
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7.949	9.001	12.263
Capital work-in-progress		0.000	0.000	0.000
Intangible Assets		0.000	0.000	1.256
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.466	0.345	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.791	10.028	15.622
	Sundry Debtors	26.268	27.452	25.871
	Cash & Bank Balances	0.456	0.426	1.850
	Other Current Assets	1.006	0.929	1.061
	Loans & Advances	1.816	1.227	3.368
Total Current Assets		41.337	40.062	47.772
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	10.505	10.098	16.387
	Other Current Liabilities	3.640	4.867	7.225
	Provisions	0.000	0.000	0.000
Total Current Liabilities		14.145	14.965	23.612
Net Current Assets		27.192	25.097	24.160
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		35.607	34.443	37.679

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	43.577	90.041	NA
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		1.811	3.601	6.162
Less/ Add	DEPRECIATION/ AMORTISATION		1.212	1.343	1.394
	PROFIT BEFORE TAX		0.599	2.258	4.768
Less	TAX		0.187	0.916	1.179
	PROFIT AFTER TAX		0.412	1.342	3.589
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		8.228	7.386	4.297
Less	APPROPRIATIONS
		Transfer to General Reserve	0.100	0.500	0.500
	BALANCE CARRIED TO THE B/S		8.540	8.228	7.386
	EARNINGS IN FOREIGN CURRENCY
		Export of goods on FOB basis	0.336	0.572	NA
		Other Income	0.000	3.299	NA
	TOTAL EARNINGS		0.336	3.871	NA
	IMPORTS
		Raw Materials	0.197	0.797	NA
	TOTAL IMPORTS		0.197	0.797	NA
	Earnings Per Share (Rs.)		5.03	16.37	NA

Particulars	31.03.2011
Sales Turnover (Approximately)	46.000

Expected Sales (2011-2012) : Rs.60.000 millions

The above information has been parted by Mr. Jayan K C

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
Net Profit Margin (PBT/Sales)	(%)	1.37	2.50	NA
Return on Total Assets (PBT/Total Assets}	(%)	1.22	4.60	7.94
Return on Investment (ROI) (PBT/Networth)		0.03	0.10	0.23
Debt Equity Ratio (Total Liability/Networth)		1.23	1.25	1.97
Current Ratio (Current Asset/Current Liability)		2.92	2.68	2.02

LOCAL AGENCY FURTHER INFORMATION

NOTE:

The Registered office of the company has been shifted from 15, Ground Floor, Meghal Service, Industrial Estate, Devidayal Road, Mulund (West), Mumbai-400009, Maharashtra, India to present address.

OPERATIONS:

The Company has achieved total income of Rs.4.357 millions in spite of global recession during the year, resulting in a Profit before depreciation of Rs.1.81 0 millions.

FUTURE OUTLOOK:

In keeping with developments in finishing technology, they are constantly striving to increase product mix. Towards this end they have designed two types of machines, which are in tune with developments, abroad and which will bring cost effectiveness into finishing operations.

The Company is confident of increasing the turnover further in the corning years with consequent improvement in profitability.

CONTINGENT LIABILITIES

Particulars	As on 31.03.2010 Rs. In millions
Bank Guarantee	0.283
Customs duty-Pending fulfillment of export obligation	1.132

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	90219840
Corporate identity number of the company	U74210MH1988PTC045916
Name of the company	CERAMED ENGINEERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	15, Ground Floor, Meghal Service, Industrial Estate, Devidayal Road, Mulund (West), Mumbai-400009, Maharashtra, India
Type of charge	· Book Debts · Movable Property · Immovable Property · Others Stocks, Machineries etc.
Particular of charge holder	State Bank of India, Peenya Industrial Estate Branch, B-96, II Cross, I Stage, Peenya Industrial Estate, Bangalore-560058, Karnataka, India
Nature of description of the instrument creating or modifying the charge	Supplemental Agreement of loan cum hypothecation (SME 4) Memorandum for Recording Extension of Mortgage by deposit of title deeds (SME 7) Letter of Confirmation for Extension of mortgage by deposit of title deeds (SME 8) (All the documents relate to the same modification)
Date of instrument Creating the charge	10.06.2009
Amount secured by the charge	Rs.20.600 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest WC: Interest @ 1.00% above SBAR (SBAR = 12.25% w.e.f. 01.01.2009) with a minimum of 13.25% p.a. rising or falling therewith on daily products with monthly rests. Present effective raed 13.25% p.a. Terms of Repayment Repayable on Demand Margin 25% Extent and Operation of the charge Charge extends by way of first charge on all the aforesaid throughout the period of sanctioned limits.
Short particulars of the property charged	Hypothecation of the whole of the present and future stocks of raw materials, semi finished goods, finished goods, book debts, receivables, machiniers etc belonging to the company. EM on Company’s immovable properties comprising of Land and Building situated No. B-67 and 68, III stage, Peenya Industrial Estate, Bangalore and Factory land and building situated at Plot No. 14 (Behind shed No. B-67 and 68), III stage, Peenya Industrial Estate, Bangalore
Date of latest modification prior to the present modification	31.05.2008
Particulars of the present modification	Total limits enhanced from Rs.16.200 millions to Rs.20.600 millions. EM on co's immovable properties comprising of Land and Building situated at No. B-67 and 68, III Stage, Peenya Industrial Estate, Bangalore and Factory Land and Building situated at Plot No. 14 (Behind Shed No. B-67 and 68), III Stage, Peenya Industrial Estate, Bangalore. All other terms, conditions and existing securities to continue.

TRADE REFERENCES

· Ashok Leyland

· TVS Motors

FIXED ASSETS

· Plant and Machinery

· Weighing Scale

· Electrical Installation

· Office Appliances

· Furniture and Fixtures

· Vehicles

· Computer

· Land

· Electrical Equipments

· Office Building

· Factory Building

· Refrigerator

· Air Conditioner

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.44.59
UK Pound	1	Rs.71.75
Euro	1	Rs.64.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--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		30

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.