MIRA INFORM REPORT

Report Date :

11.03.2011

IDENTIFICATION DETAILS

Name :	POWER AND INSTRUMENTATION (GUJARAT) LIMITED
Registered Office :	309, Atlantis Enclave, Near Subhash Chowk, Gurukul Road, Ahmedabad – 380 052, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.09.1983
Com. Reg. No.:	04-006456
CIN No.: [Company Identification No.]	U32201GJ1983PLC006456
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Trading Jobwork and Manufacturing of Electrical Item.

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 95000
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

LOCATIONS

Registered Office :	309, Atlantis Enclave, Near Subhash Chowk, Gurukul Road, Ahmedabad – 380 052, Gujarat, India
E-Mail :	finance@grouppower.org

DIRECTORS

As on 30.09.2010

Name :	Mr. Padmaraj Padmnabhan Pillai
Designation :	Director
Address :	D/32, Nebula Tower, S.G. Road, Near Grand Bhagwati, Bodakdev, Ahmedabad – 380 052, Gujarat, India
Date of Appointment :	26.03.1996
DIN No.:	00647590
Name :	Ms. Padmavati Padmnabhan Pillai
Designation :	Director
Address :	D/32, Nebula Tower, S.G. Road, Near Grand Bhagwati, Bodakdev, Ahmedabad – 380 052, Gujarat, India
Date of Appointment :	12.09.1983
DIN No.:	02026354
Name :	Mr. Sumeet Dileep Agnihotri
Designation :	Director
Address :	901, Ashima Tower, B/H Sunrise Park, Nehru Foundation Road, Vastrapur, Ahmedabad – 380 054, Gujarat, India
Date of Appointment :	14.05.2003
DIN No.:	02026337
Name :	Ms. Sreelatha Padmnabhan Nair
Designation :	Director
Address :	D/32, Nebula Tower, Near Grand Bhagwati, Ahmedabad – 380 054, Gujarat, India
Date of Appointment :	01.03.2004
DIN No.:	03134020

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Padmavati Padmnabhan Pillai	190000
Sreekala Pillai	7200
Padmaraj Padmnabhan Pillai	132900
Sreelatha Padmnabhan Nair	100
Sreeram Nair	40
Pooja Nair Sreekala Pillai	40
Rachana Luthra	20
Total	330300

As on 30.09.2010

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

BUSINESS DETAILS

Line of Business :

Trading Jobwork and Manufacturing of Electrical Item.

GENERAL INFORMATION

Bankers :

Vijaya Bank, Gurukul Branch, Gurukul Road, Ahmedabad – 380 052, Gujarat, India

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
OD A/C Vijaya Bank, Gurukul Branch	15.077	16.642
Letter of Credit LC Vijaya Bank (Secured Loan against book debts, stock and securities of Director’s immovable properties)	4.115	0.000
Total	19.192	16.642

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Directors
L. Padmavathi Pillai	0.115	0.115
Total	0.115	0.115

Banking Relations :	--
Auditors :
Name :	J.M. Patel and Bros. Chartered Accountants
Address :	402, Harsh Avenue, Navjivan Press Road, Near Income Tax Railway Crossing, Ahmedabad – 380 014, Gujarat, India

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.10/- each	Rs.7.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
330300	Equity Shares	Rs.10/- each	Rs.3.303 millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs.100/- each	Rs.2.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20030	Equity Shares	Rs.100/- each	Rs.2.003 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		2.003	2.003	2.003
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		21.717	16.320	12.871
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		23.720	18.323	14.874
LOAN FUNDS
1] Secured Loans		19.192	16.642	11.682
2] Unsecured Loans		0.115	0.115	0.115
TOTAL BORROWING		19.307	16.757	11.797
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		43.027	35.080	26.671
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.606	3.018	1.685
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	34.869	18.238	7.843
	Sundry Debtors	51.473	61.980	30.671
	Cash & Bank Balances	5.192	2.521	1.877
	Other Current Assets	14.250	7.318	3.924
	Loans & Advances	11.946	5.385	4.707
Total Current Assets		117.730	95.442	49.022
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	76.686	61.535	22.184
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	2.623	1.845	1.852
Total Current Liabilities		79.309	63.380	24.036
Net Current Assets		38.421	32.062	24.986
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		43.027	35.080	26.671

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	277.306	155.080	71.814
		Other Income	0.676	0.550	0.144
		TOTAL (A)	277.982	155.630	71.958
Less	EXPENSES
		Raw Material Consumed	238.787	130.865	52.784
		Manufacturing and Administrative Expenses	28.564	17.100	14.923
		TOTAL (B)	267.351	147.965	67.707
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		10.631	7.665	4.251
Less	INTEREST (D)		1.737	1.520	0.831
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.894	6.145	3.420
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.833	0.833	0.305
	PROFIT BEFORE TAX (E-F) (G)		8.061	5.312	3.115
Less	TAX (H)		2.563	1.642	0.963
	PROFIT AFTER TAX (G-H) (I)		5.498	3.670	2.152
	Provision for Equity Dividend		0.100	0.100	0.100
	Provision for Fringe Benefit Tax (FBT)		0.000	0.122	0.145
	Statutory Reserve		0.810	0.517	0.286
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		14.955	12.024	10.403
	BALANCE CARRIED TO THE B/S		19.543	14.955	12.024
	Earnings Per Share (Rs.)		274.49	NA	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.98	2.36	1.34
Net Profit Margin (PBT/Sales)	(%)	2.91	3.43	4.34
Return on Total Assets (PBT/Total Assets}	(%)	6.59	5.40	6.14
Return on Investment (ROI) (PBT/Networth)		0.34	0.29	0.21
Debt Equity Ratio (Total Liability/Networth)		4.16	4.37	2.41
Current Ratio (Current Asset/Current Liability)		1.48	1.51	2.04

LOCAL AGENCY FURTHER INFORMATION

Note:

The registered office of the company has been shifted from 12, Sunshine Industrial Estate, Behind Maniar Tailors, Rakhial, Ahmedabad – 380 023, Gujarat to the present address w.e.f. 01.04.2010.

REVIEW OF OPERATIONS:

During the year 2009-2010, the company has made sales of Rs.277.300 millions and made a profit after tax of Rs.5.497 millions.

FORM 8:

Corporate identity number of the company	U32201GJ1983PLC006456
Name of the company	POWER AND INSTRUMENTATION (GUJARAT) LIMITED
Address of the registered office or of the principal place of business in India of the company	309, Atlantis Enclave, Near Subhash Chowk, Gurukul Road, Ahmedabad – 380 052, Gujarat, India E-Mail: jmpatelca@yahoo.co.in
This form is for	Modification of charge
Charge identification number of the modified	80001718
Type of charge	Immovable Property Book Debts Movable Property Floating Charge Others (Stocks)
Particular of charge holder	Vijaya Bank, Gurukul Branch, Gurukul Road, Ahmedabad – 380 052, Gujarat, India E-Mail: ahm.ro.9101@vijaybank.co.in
Nature of description of the instrument creating or modifying the charge	SUPPLEMENTARY AGREEMENT
Date of instrument Creating the charge	06/09/2010
Amount secured by the charge	65,000,000.00
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: BR + 5.25% i.e. 13.50% p.a. (floating) Terms of Repayment: Limit for the period of One year from the Date of Sanction subject to review periodically. Margin: Raw Materials, goods in process, finished goods, consisting of electrical control/penal panels etc = 25 % Hypothecation of Book Debts not older than 90 days = 40% Extent and Operation of the charge: The entire charge remain in operation until the entire charge amount paid by the Borrower to the Charge Holder along with interest.
Short particulars of the property charged	Hypothecation of raw materials, goods in process, finished goods, consisting of electrical control/penal panel etc with 25% margin lying at the factory premises/godown at and or any other places in future or different places as stored or execution of work order at different places as per requirement (existing as well as future addition ) of the company. Hypothecation of Book Debts not older than 90 days with 40% margin (existing as well as future addition) of the company. Hypothecation of entire fixed assets existing as well as future addition of the company value of Rs.3.018 millions.
Date of latest modification prior to the present modification	24/12/2008
Particulars of the present modification	The bank has now agreed to enhanced/renew the said CC (H) facility upto the limit of Rs.30.000 millions and Rs.35.000 millions Bank Guarantee. Total limit enhanced from Rs.40.000 millions to Rs.65.000 millions.

CONTINGENT LIABILITIES: (As on 31.03.2010)

Bank Guarantees issued by Vijaya Bank, Gurukul Branch, Ahmedabad for Rs.22.745 millions for the year ending March, 2010.

FIXED ASSETS:

· Motor Car

· Computer

· Machinery

· Furniture and Fixture

· Office Equipments

· Fax Machine

· Kinetic Scooter

· Cycle

· Xerox Machine

· Bajaj Scooter

· Bike

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.45.11
UK Pound	1	Rs.72.90
Euro	1	Rs.62.56

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--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.