MIRA INFORM REPORT

Report Date :

07.03.2011

IDENTIFICATION DETAILS

Name :	SANGHVI ELECTRONICS PRIVATE LIMITED
Registered Office :	Shop No. 7, 23/B Purshottam Building, Tribhuvan Road Cross, Lamington Road, Mumbai-400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	07.12.1990
Com. Reg. No.:	11-059333
CIN No.: [Company Identification No.]	U30007MH1990PTC059333
TAN No.: [Tax Deduction & Collection Account No.]	MUMS15235D
PAN No.: [Permanent Account No.]	AAACS6108D
Legal Form :	Private Limited Liability Company
Line of Business :	Trader, Dealer, Distributor of Electronic Products and Computer Peripherals

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 50000
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

Name :	Ms. Felcy
Designation :	Accounts Manager
Contact No.:	91-22-23894000
Date :	05.03.2011

LOCATIONS

Registered Office :	Shop No. 7, 23/B Purshottam Building, Tribhuvan Road Cross, Lamington Road, Mumbai-400004, Maharashtra, India
Tel. No.:	91-22-23894000/23803333
Mobile No.:	91-9819119111 (Mr. Suresh Sanghvi)
Fax No.:	91-22-23803333
E-Mail :	ronak2000@vsnl.net sanghvis@vsnl.net
Area :	1500 (approximately)
Location :	Owned
Warehouse :	Located at Sativali (Vasai)
Branches :	Located at Hyderabad Bangalore

DIRECTORS

As On 30.09.2009

Name :	Mr. Ashok Jethmal Sanghvi
Designation :	Director
Address :	1, Rishikesh Building, 63, Worli Hill Road, Worli, Mumbai-400018, Maharashtra, India
Date of Birth/Age :	26.10.1959
Qualification :	HSC
Date of Appointment :	07.12.1990
DIN No.:	00407245
Name :	Mr. Suresh Jethmal Sanghvi
Designation :	Director
Address :	205, Sybille Apartment, 65 Worli Hill Road, Worli, Mumbai-400018, Maharashtra, India
Date of Birth/Age :	02.11.1963
Qualification :	B.Com.
Date of Appointment :	07.12.1990
DIN No.:	00427594
Name :	Mr. Sudhir Ramdas Sadar
Designation :	Director
Address :	20, New Prabhat Colony, Near Indrayani Colony, Banera Road, Amravati -444606, Maharashtra, Maharashtra, India
Date of Birth/Age :	18.06.1969
Qualification :	BE
Date of Appointment :	20.11.2008
DIN No.:	02211169
Name :	Mr. Ronak Suresh Sanghvi
Designation :	Director
Address :	205, Sibylee Apartment, 65, Worli Hill Road, Worli Mumbai-400018, Maharashtra, India
Date of Birth/Age :	29.08.1990
Date of Appointment :	20.11.2008
DIN No.:	02337127

KEY EXECUTIVES

Name :	Ms. Felcy
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On30.09.2009

Names of Shareholders	No. of Shares
Suresh J Sanghvi	106100
Shailesh A Jain	1200
Veetrag B Bafna	1100
Sakeena Aboobaker	100
Anjana S Sanghvi	51000
Ugam J Sanghvi	1000
Aatish A Sanghvi	1000
Ronak S Sanghvi	1000
Suresh J Sanghvi HUF	1000
Sawalaram D Purohit	1000
Nagaram S Purohit	1000
Monika I Vardhan	100
Sandeep I Vardan	100
Reena I VArdan	100
Sushila S Seth	100
Suresh M Seth	100
Sanjay B Bhora	100
Manish B Bhora	100
Vimla B Bhora	100
Hastudevi M Bhora	100
Banulal M Bohra	100
Nitu B Bhora	100
Babulal M Bohra HUF	100
Aadittya A Sanghvi	16000
Manish Kaveri	100
Nisha Kaveri	100
Ashok Kaveri	100
Dinesh Bohra	20
Narendra S Jain HUF	10
Narendra S Jain	10
Parveenkanta R Jain	26000
Poonam V Kapoor	25000
Sikha Finance and Leasing Private Limited – India	50000
Realstone Exports Private Limited – India	50000
Rigveda Properties Private Limited – India	63100

As On 30.09.2009

Category	Percentage
Directors or relatives of Directors	43.50
Other top fifty shareholders	56.50
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader, Dealer, Distributor of Electronic Products and Computer Peripherals
Agencies Held :	LG Seagates Samsung Maxton
Terms :
Selling :	Cash, Credit: 30/60/90 Days
Purchasing :	Cash, Credit: 30/60/90 Days

GENERAL INFORMATION

Customers :

• End Users and OEM’s
• Distributors

No. of Employees :

30 (approximately)

Bankers :

• Indian Overseas Bank, Breach Candy Branch, 65/67, Mazda Mansion, Bhulabhai Desai Road, Breach Candy, Mumbai – 400026, Maharashtra, India
• ICICI Bank Limited

Facilities :

Cash Credit: Rs.37.500 Millions

Particulars	31.03.2009 (Rs. In Millions)	31.03.2008 (Rs. In Millions)
Secured Loans
Indian Overseas Bank (Cash Credit Account) (Secured against Book Debts, Personal Gurantee of Directors and Mrs. Anjana S Sanghvi and Equitable mortgage of Flat No. 205, Sibylle Apt., Worli, Mumbai-18)	17.580	13.038
ICICI Bank Limited (Motor Car) (Secured by way of hypothecation of specific vehicle)	0.040	0.268
Total	17.620	13.306
Unsecured Loans	31.03.2009 (Rs. In Millions)	31.03.2008 (Rs. In Millions)
From Directors	1.125	0.000
From Shareholders and Others	2.456	6.625
Total	3.581	6.625

Banking Relations :	--
Auditors :
Name :	Salgia And Associates Chartered Accountant
Address :	Panthky House, 1^st Floor, 8, Maruti Cross Lane, Fort, Mumbai-400001, Maharashtra, India
Tel. No.:	91-22-22619784
E-Mail :	salgia_associates@yahoo.com
Pan No.:	ADSPS9398A

CAPITAL STRUCTURE

As On 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
449740	Equity Shares	Rs.10/- each	Rs.4.497 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		4.497	4.497	4.497
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		8.147	7.839	7.289
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		12.644	12.336	11.786
LOAN FUNDS
1] Secured Loans		17.620	13.306	13.436
2] Unsecured Loans		3.581	6.625	6.905
TOTAL BORROWING		21.201	19.931	20.341
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		33.845	32.267	32.127
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.815	0.923	1.149
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.084	0.080	0.061
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	8.126	16.499	16.511
	Sundry Debtors	25.222	31.607	21.607
	Cash & Bank Balances	2.641	2.279	0.827
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	8.343	5.168	0.963
Total Current Assets		44.332	55.553	39.908
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	10.253	23.729	7.126
	Other Current Liabilities	0.941	0.237	1.493
	Provisions	0.192	0.323	0.372
Total Current Liabilities		11.386	24.289	8.991
Net Current Assets		32.946	31.264	30.917
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		33.845	32.267	32.127

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2009	31.03.2008	31.03.2007
	SALES	193.165	263.169	253.782
	EXPENSES	185.425	264.182	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION	0.737	1.145	1.182
Less/ Add	DEPRECIATION/ AMORTISATION	0.240	0.291	0.341
	PROFIT BEFORE TAX	0.497	0.854	0.841
Less	TAX	0.189	0.304	0.338
	PROFIT AFTER TAX	0.308	0.550	0.503
	BALANCE CARRIED TO THE B/S	0.308	0.550	0.503
	Earnings Per Share (Rs.)	0.68	1.22	NA

Particulars	31.03.2010
Sales Turnover	200.000 (approximately)

Expected Sales (2010-2011) : Rs. 250.000 Millions

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
Net Profit Margin (PBT/Sales)	(%)	0.26	0.32	0.06
Return on Total Assets (PBT/Total Assets}	(%)	1.10	1.51	0.40
Return on Investment (ROI) (PBT/Networth)		0.04	0.07	0.01
Debt Equity Ratio (Total Liability/Networth)		2.58	3.58	2.48
Current Ratio (Current Asset/Current Liability)		3.89	2.28	4.43

LOCAL AGENCY FURTHER INFORMATION

The Details of sundry creditors:

Rs. In Millions

Particulars	31.03.2009	31.03.2008	31.03.2007
Sundry creditors
Due to micro and small enterprises	--	--
Others	10.253	23.729
Total	10.253	23.729	7.126

GENERAL REVIEW:

During the year the company has set up a branch office at Secunderabad. As reported in the last year, the market for the products the company is dealing in is still very competitive but there are opportunities for growth. The directors are trying to increase the sale turnover further by opening new branch offices so that the fixed overheads are spread over a larger volume and the profitability can be improved.

Fixed Assets:

• Computers
• Plant and Machinery
• Office Equipments
• Motor Car
• Scooter
• Bicycle
• Furniture and Fixture

Form 8

Corporate identity number of the company	U30007MH1990PTC059333
Name of the company	Sanghvi Electronics Private Limited
Address of the registered office or of the principal place of business in India of the company	Shop No. 7 23/B, Purshottam Building, Gtribhuvan Road Cross Lamington Road, Mumbai-400004, Maharashtra, India
This form is for	Modification of charge
Type of charge	Book Debts Movable Property
Particular of charge holder	Indian Overseas Bank Breach Candy Branch, 65/67, Mazda Mansion, Bhulabhai Desai Road, Breach Candy, Mumbai-400026, Maharashtra, India E-mail : breachbr@mummsco.iob.net.co.in
Nature of description of the instrument creating or modifying the charge	a) Letter of Hypothecation IN f-110e b) Letter of Hypothecation in F-107
Date of instrument Creating the charge	07.09.2010
Amount secured by the charge	Rs. 37.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest – @ BSR + 6% p.a. = 14.25% p.a. Terms of Repayment Repayable on demand Margin - 25% on Stocks; 40% on Book Debts. Extent and Operation of the charge The charge is to operate as security, by way of first exclusive charge, for the due repayment of credit facilities aggregating to Rs.37.500 milions together with interests, additional interests, costs, charges, expenses and all other moneys payable by the Company to the Bank in terms of sanction. Others – Facility: Cash Credit : Rs.37.500 million
Short particulars of the property charged	Hypothecation, by way of the first charge, of all the company’s : a) Book Debts of the Company, both present and future. b) Stocks representing genuine trade transactions, Computer peripherals like hard disc - drivers, cabinets, graphic cards, printers and scanners etc.
Date of latest modification prior to the present modification	21.04.2010
Particulars of the present modification	The amount secured by the charge has been enhanced from Rs.30.000 millions to Rs.37.500 millions

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.44.99
UK Pound	1	Rs.73.24
Euro	1	Rs.62.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--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		48

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.