MIRA INFORM REPORT

Report Date :

14.06.2011

IDENTIFICATION DETAILS

Name :	GENERAL OPTICS (ASIA) LIMITED
Registered Office :	R. S. 84/1, Nallavadu Road, Thavalakuppam, Pondicherry – 605 007
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	08.10.1982
Com. Reg. No.:	59-203
Capital Investment / Paid-up Capital :	Rs.13.500 millions
CIN No.: [Company Identification No.]	U33201PY1982PLC000203
TAN No.: [Tax Deduction & Collection Account No.]	CHEG02503E
Legal Form :	A closely held public limited liability company.
Line of Business :	Manufacturers of Instrument Assembling, Precision Optical Components and Mounted Optical Components.
No. of Employees :	Around 300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (63)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 960000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Trade relations are fair. Financial position is good. The company is doing well. It’s payments are correct and as usual trade terms and conditions. It can be regarded as a promising business partner in a medium to long-run.

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 :	R. S. 84/1, Nallavadu Road, Thavalakuppam, Pondicherry – 605 007, India
Tel. No.:	91-413-2619001
Fax No.:	91-413-2618755
E-Mail :	mktg@goalpdy.com materials@goalpdy.com hr@goalpdy.com corp@goalpdy.com
Website :	http://www.alacrastore.com http://www.goalpdy.com http://www.photonics.com

DIRECTORS

(As on 28.08.2010)

Name :	Mr. S Murali
Designation :	Chairman
Address :	No.5, First Cross Jayanagar, Pondicherry-605010, India
Date of Birth/Age :	02.06.1953
Date of Appointment :	08.10.1982
DIN No. :	00207907
Name :	Mr. R Vaidyanathan
Designation :	Director
Address :	Prof. Finance IIM, Bannerghatta Road, Bangalore-560076, Karnataka, India
Date of Birth/Age :	21.12.1951
Date of Appointment :	30.09.1987
DIN No. :	00221577
Name :	Mr. Abhaya Kumar
Designation :	Director
Address :	3, Dorai Swamy Road, T. Nagar, Chennai-600017, Tamilnadu, India
Date of Birth/Age :	23.12.1953
Date of Appointment :	28.11.2005
DIN No. :	00729827
Name :	Mr. M. Nagalakshmi
Designation :	Whole Time Director
Address :	No.5, First Cross Jayanagar, Pondicherry-605010, India
Date of Birth/Age :	30.01.1955
Date of Appointment :	01.09.2008
DIN No. :	02316308
Name :	Mr. J. Narasimhan
Designation :	Whole Time Director
Address :	1, 31^st Cross, 4^th Main Road, Avvainagar, Pondicherry-605008, India
Date of Birth/Age :	06.06.1947
Date of Appointment :	29.08.2008
DIN No. :	02274068
Name :	Mr. Supraja
Designation :	Director
Address :	No.5, First Cross Jayanagar, Pondicherry-605010, India
Date of Birth/Age :	19.02.1982
Date of Appointment :	29.08.2008
DIN No. :	02316538

KEY EXECUTIVES

Name :	Mr. T. Arulmozhi
Designation :	Secretary
Address :	2B, Jaidev Apartments, 16^th, A, Cross, Avvainagar, Pondicherry-605008, India
Date of Birth/Age :	16.09.1953
Date of Appointment :	29.05.1983
PAN No. :	ABYPA9426D

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 28.08.2010)

Names of Shareholders	No. of Shares
Nagalakshmi Murali	234380
S Murali	971745
K Balaji	945
S Rangarajan	1500
V Vijayalakshmi	19500
J Narasimhan	12600
R Vaidyanathan	17000
M Supraja	6000
Bipinbhaichand Zaveri	3000
Dipa Vinaychandra Shah	2700
Pushpa Vinayak Shah	4500

(As on 28.08.2010)

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	90.00
Other top fifty shareholders	9.00
Others	1.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Instrument Assembling, Precision Optical Components and Mounted Optical Components.

Products :

Product Description	ITC Code
Mounted Optical Components	9002.19
Precision Optical Components	9001.90
Instrument Assemblies	9015.80

· Lenses

· Prisms, Wedges, Windows and other Flats

· Opto-mechanical and Opto-electronic sub-assemblies, Instrument Assemblies and Test Benches to customer's specifications

PRODUCTION STATUS

As on 31.03.2009

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Precision Optical Components, Instrument Assemblies / Sub Assemblies	Nos.	1000000	200000	73278

GENERAL INFORMATION

No. of Employees :

Around 300 (Approximately)

Bankers :

· Indian Bank, 26, Ethiraj Salai, Chennai – 600 008, Tamil Nadu, India

· Indian Bank, Main Branch, Pondicherry, Tamilnadu, India

· ABN Amro Bank N V, Haddows Road, Chennai, Tamilnadu, India

Facilities :

Secured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
Term Loan from Indian Bank	39.368	28.885
Total	39.368	28.885

Banking Relations :	--
Auditors :
Name :	Ganesan and Company Chartered Accountant
Address :	23, Jawaharlal Nehru Street, Pondicherry – 605 001, India

CAPITAL STRUCTURE

Authorised Capital : (As on 28.08.2010)

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/ each	Rs.40.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1350000	Equity Shares	Rs.10/- each	Rs.13.500 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		13.500	13.500	13.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		227.064	211.735	189.715
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		240.564	225.235	203.215
LOAN FUNDS
1] Secured Loans		39.368	28.885	32.508
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		39.368	28.885	32.508
DEFERRED TAX LIABILITIES		18.072	16.775	17.961
TOTAL		298.004	270.895	253.684
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		139.577	135.015	151.040
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.002	0.002	0.002
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	31.713	10.349	11.653
	Sundry Debtors	11.311	19.457	11.252
	Cash & Bank Balances	252.700	207.638	189.276
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	36.880	24.161	22.709
Total Current Assets		332.604	261.605	234.890
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	17.760	8.450	10.045
	Other Current Liabilities	102.888	73.364	77.342
	Provisions	53.531	43.913	44.861
Total Current Liabilities		174.179	125.727	132.248
Net Current Assets		158.425	135.878	102.642
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		298.004	270.895	253.684

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	122.594	121.899	91.339
		Income from Services	0.000	0.315	0.000
		Other Income	19.086	19.164	16.660
		TOTAL (A)	141.680	141.378	107.999
Less	EXPENSES
		Material Consumed	28.399	19.407	16.692
		Adjustment due to decrease / (increase) in stock of finished goods and work in process	(9.146)	(0.991)	0.481
		Personnel	31.359	26.712	26.229
		Manufacturing, Administrative and Other Expenses	36.125	29.310	27.930
		TOTAL (B)	86.737	74.438	71.332
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		54.943	66.940	36.667
Less	INTEREST (D)		2.218	3.472	3.499
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		52.725	63.468	33.168
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.036	8.914	8.867
	PROFIT BEFORE TAX (E-F (G)		42.689	54.554	24.301
Less	TAX (H)		10.006	14.291	7.325
	PROFIT AFTER TAX (G-H) (I)		32.683	40.263	16.976
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		148.119	121.353	122.621
Less	APPROPRIATIONS
		Transfer to General Reserve	4.300	5.600	2.450
		Dividend	6.750	6.750	13.500
		Tax on Dividend	1.121	1.147	2.294
	BALANCE CARRIED TO THE B/S		168.631	148.119	121.353
	FOB Value of Exports		76.289	61.190	51.898
	IMPORTS
		Raw Materials	12.150	6.019	8.840
		Stores & Spares	18.887	11.242	6.081
		Plant and Machinery	21.241	0.000	5.475
	TOTAL IMPORTS		52.278	17.261	20.396
	Earnings Per Share (Rs.)		24.21	29.82	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	23.07	28.48	15.72
Net Profit Margin (PBT/Sales)	(%)	34.82	44.75	26.61
Return on Total Assets (PBT/Total Assets}	(%)	9.04	13.75	6.30
Return on Investment (ROI) (PBT/Networth)		0.18	0.24	0.12
Debt Equity Ratio (Total Liability/Networth)		0.89	0.69	0.81
Current Ratio (Current Asset/Current Liability)		1.91	2.08	1.78

LOCAL AGENCY FURTHER INFORMATION

Prospects

The year 2010-11 commenced with an Order Book of Rs.315.000 millions. Additional orders worth approximately Rs.10.000 millions are under different stages of negotiation. They plan to complete most of the orders on hand for which development phase has been completed during the year 2010-2011.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	90006009
Corporate identity number of the company	U33201PY1982PLC000203
Name of the company	GENERAL OPTICS (ASIA) LIMITED
Address of the registered office or of the principal place of business in India of the company	R. S. 84/1, Nallavadu Road, Thavalakuppam, Pondicherry – 605 007, India
Type of charge	Immovable Property
Particular of charge holder	Indian Bank 26, Ethiraj Salai, Chennai – 600 008, Tamilnadu, India Email ID: ethirajsalai@indianbank.co.in
Nature of description of the instrument creating or modifying the charge	Form D33 letter from party to bank for extension of equitable mortgage.
Date of instrument Creating the charge	21.12.2010
Amount secured by the charge	Rs.215.600 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Not Applicable, as the charge is equitable mortgage. Terms of Repayment Not Applicable, as the charge created is equitable mortgage. Margin Not Applicable, as the charge created is equitable mortgage. Extent and Operation of the charge Equitable mortgage by deposit of title deeds of the company property situated at R.S. No 84/1, Nallavadu Road, Thavalakuppam, Pondicherry-605 007, as security for the facilities granted and to be granted by Indian Bank to them.
Short particulars of the property charged	Wet land bearing R.S.84, Cadaster No.1474 having an extent of one kani and four kuzhis and three veesams.
Date of last modification prior to the present modification	31.12.2008
Particulars of the present modification	The amount secured by the equitable mortgage has been increased from Rs.178.000 millions to Rs.215.600 millions.

FIXED ASSETS

• Land
• Building
• Machinery
• R & D Machinery
• Computers
• R and D Computer
• Plant Electrification
• Fire Fighting Equipment
• Office Equipment
• Furniture
• R & D Furniture
• Vehicle

Web Details

Subject is a closely held Public Limited Company (Joint Stock Company) run by a Board of Directors chaired by Mr. S. Murali who is also the founder of the company. Subject was incorporated in 1982 and has been manufacturing and exporting precision optical systems and components since 1984.

The expertise is in the manufacture of custom precision optical instruments, devices and components besides assemblies, sub assemblies, etc. They also deliver integrated solutions to the clients where they design, build and test complex opto-mechanical and opto-electronic systems (including custom test benches involving precision mechanics, precision optics, electronics and related software).

Over 80% of the program is exported to customers in USA, Germany, France, Holland, Belgium, Singapore and other countries. They also cater to a wide network of domestic Indian customers.

The 75,000 sq.ft. manufacturing facility is located in Pondicherry, India which is also the headquarters. The plant is vertically integrated starting from glass cutting to optics fabrication to thin film coating and machining of metals to surface treatment followed by opto-mechanical and opto-electronic assembly, as well as test and evaluation.

Profile

From the day the first export was made in 1984 to now, when they are designing and manufacturing optical, opto-electronic and opto-mechanical assemblies, Subject has come a long way in its continuing journey of excellence.

Being an export oriented unit, Subject's quality standards meet the most demanding international requirements. The skilled and highly talented work-force of over 180 employees (comprising over 50 engineers) has over 27 years of experience in precision mechanical engineering and precision optics design and fabrication.

Today they are known for the complex customized jobs. The focus on quality and professionalism has earned them the customers' trust and confidence. As a result over 80% of the business comes from long standing customers with whom they are associated for over 15 years.

Milestones

· 1982:

Foundation of subject on October 8th,1982

· 1984:

First export to USA

· 1987:

Night Vision Devices for Indian Defense

· 1994:

Design and manufacture of Handheld Thermal Imaging Cameras for Indian Navy

· 1997:

ISO Quality System certification under the 1994 series

Design and manufacture of LASER Range Finders for Battle Tanks

· 1999:

Delivery of space qualified lenses and filters

· 2000:

Supply of Star Sensor lens assemblies

· 2001:

ISO 9001 - 2000 certification for Quality Management Systems

· 2002:

Design and realization of test and evaluation systems for ground checkout of satellite payloads

Design and fabrication of space borne filters

· 2004:

Proprietary process development and delivery of superpolished optics made from Zerodur and fused silica (Patent pending)

Design and development of Laser Based Imaging And Surveillance Systems

· 2006:

Delivery of complex Glass Monoblocks for Gyros

· 2008:

Contract to build boundary layer LIDARs

Contract to build ground based telescopes

· 2009:

Design and fabrication of Space borne Optical Solar Reflectors (Patents Pending)

· 2010:

ISO 9001 - 2008 certification for Quality Management Systems

The Customers

They believe in maintaining complete trust, loyalty and confidentiality of the customers. This has been the key to maintaining long-term relationships with the clients, most of whom have been working with them for more than 15 years.

Market segments they serve

· Metrology

· Biosciences

· Aerospace

· Space

· Defense

· Astronomy

· Atmospheric Sciences

· Scientific Research

· LASER Instrumentation

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.44.87
UK Pound	1	Rs.72.83
Euro	1	Rs.64.37

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		63

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.