MIRA INFORM REPORT

Report Date :

01.11.2011

IDENTIFICATION DETAILS

Name :	SAHNEY COMMUTATORS PRIVATE LIMITED
Formerly Known As :	SCHUNK TECHNOLOGIES (INDIA) PRIVATE LIMITED
Registered Office :	No. 772, II Floor, 4^th Block, 80 Feet Peripheral Road, Koramangala, Bangalore – 560034, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	02.03.1987
Com. Reg. No.:	08-008214
Capital Investment / Paid-up Capital :	Rs.33.728 Millions
CIN No.: [Company Identification No.]	U52190KA1987PTC008214
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of mica based insulation and commutators for motors and generators in the locomotive and other industries.

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 570000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established and a reputed 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 good for normal 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	No. 772, II Floor, 4^th Block, 80 Feet Peripheral Road, Koramangala, Bangalore – 560034, Karnataka, India
Tel. No.:	91-80-40347555 / 40347504
Fax No.:	91-80-40347575
E-Mail :	commutators@sahney.com
Website :	http://www.sahney.com
Factory:	9E2 Bomasandra Industrial Area, Anekal Taluk, Bangalore-560099, Karnataka, India

DIRECTORS

As on 30.09.2010

Name :

Mr. Kanwal Deep Kaur Sahney

Designation :

Director

Address :

No. 50, Ushakiran, Carmichael Road, Mumbai, Maharashtra, India

Date of Birth/Age :

22.01.1944

Date of Appointment :

02.03.1987

Din No.:

00405996

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U74900MH1982PTC026209	RAJIV SAHNEY ADVISORY PRIVATE LIMITED	Director	23-01-82	23-01-82	-	Converted to LLP and dissolved	NO
2	U32109MH1966PTC013516	SAHNEY KIRKWOOD PRIVATE LIMITED	Director	24-07-85	24-07-85	-	Active	NO
3	U52190KA1987PTC008214	SAHNEY COMMUTATORS PRIVATE LIMITED	Director	02-03-87	02-03-87	-	Active	NO

Name :

Mr. Jasjiv Devinder Singh Sahney

Designation :

Director

Address :

No. 27, Viviani Road, Richards Town, Bangalore – 560005, Karnataka, India

Date of Birth/Age :

02.01.1964

Date of Appointment :

18.02.1994

Din No.:

00022886

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U52190KA1987PTC008214	SAHNEY COMMUTATORS PRIVATE LIMITED	Director	18-02-94	18-02-94	-	Active	NO
2	U32109MH1966PTC013516	SAHNEY KIRKWOOD PRIVATE LIMITED	Director	15-02-95	15-02-95	-	Active	NO
3	U34103GA1997PLC002686	SAN MOTORS LIMITED	Director	27-09-99	27-09-99	-	Active	NO
4	U24110MH1982PTC026499	ISOVOLTA (INDIA) PRIVATE LIMITED	Director	01-04-00	01-04-00	-	Active	NO
5	U93090KA2001NPL028969	YPO BANGALORE CHAPTER	Director	02-05-01	02-05-01	20-09-09	Active	NO
6	U74140MH2001PTC133168	MEDUSIND SOLUTIONS INDIA PRIVATE LIMITED	Director	30-01-04	30-01-04	-	Active	NO
7	U70109MH2006PTC161405	ROCKSTONE REAL ESTATE MANAGEMENT PRIVATE LIMITED	Director	11-12-06	11-12-06	-	Active	NO
8	U74900MH1978PTC020600	KANWALDEEP SAHNEY ADVISORY PRIVATE LIMITED	Director	03-07-07	03-07-07	-	Converted to LLP and dissolved	NO

Name :

Mr. Rajiv Sahney

Designation :

Director

Address :

No. 50, Ushakiran, Carmichael Road, Mumbai, Maharashtra, India

Date of Birth/Age :

06.09.1962

Date of Appointment :

08.08.1997

Din No.:

00022896

.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U32109MH1966PTC013516	SAHNEY KIRKWOOD PRIVATE LIMITED	Director	01-02-92	01-02-92	03-07-07	Active	NO
2	U24110MH1982PTC026499	ISOVOLTA (INDIA) PVT LTD	Director	11-09-92	11-09-92	-	Active	NO
3	U74900MH1978PTC020600	KANWALDEEP SAHNEY ADVISORY PRIVATE LIMITED	Director	01-09-94	01-09-94	03-07-07	Converted to LLP and dissolved	NO
4	U52190KA1987PTC008214	SAHNEY COMMUTATORS PRIVATE LIMITED	Director	08-08-97	08-08-97	-	Active	NO
5	U74140MH2001PTC133168	MEDUSIND SOLUTIONS INDIA PRIVATE LIMITED	Director	02-09-02	02-09-02	-	Active	NO
6	U74140MH2004PTC146033	N V ADVISORY SERVICES PRIVATE LIMITED	Director	21-07-05	21-07-05	-	Active	NO
7	U28920MH1988PTC047335	VARROC ENGINEERING PRIVATE LIMITED	Director	30-09-06	23-12-05	21-12-10	Active	NO
8	U45203AP1998PLC029154	BSCPL INFRASTRUCTURE LIMITED	Director	28-09-06	05-06-06	-	Active	NO
9	U74140MH1997NPL111167	YOUNG PRESIDENTS ORGANIZATION (MUMBAI CHAPTER)	Director	01-07-06	01-07-06	01-07-08	Active	NO
10	L63010MH2004PLC073508	ALLCARGO LOGISTICS LIMITED	Director	29-09-06	21-08-06	09-08-10	Active	NO
11	U25209MH1995PTC090037	VARROC POLYMERS PRIVATE LIMITED	Director	25-06-08	25-06-08	21-12-10	Active	NO
12	U74999MH2008NPL185159	INTERNATIONAL WINE AND FOOD SOCIETY	Director	28-07-08	28-07-08	02-08-09	Active	NO
13	U52300MH2010PTC210618	MITIGATE TRADING PRIVATE LIMITED	Additional director	10-02-11	10-02-11	11-02-11	Active	NO
14	U70102MH2011PTC219551	RAE REAL ESTATE PRIVATE LIMITED	Director	07-07-11	07-07-11	-	Active	NO
15	U70102MH2011PTC223507	NURA REAL ESTATE PRIVATE LIMITED	Director	31-10-11	31-10-11	-	Active	NO

Name :

Mr. Venkatesh Rameshkumar G.

Designation :

Director

Address :

Plot No. 6B, Dr. Ramamurthy Nagar Main Road, Keelkattalai, Chennai, India

Date of Birth/Age :

03.04.1966

Date of Appointment :

15.10.2007

Din No.:

02095948

Name :

Mr. Suresh D. Ghorpadkar

Designation :

Director

Address :

45, Gurupreeth Residency, Flat No. S.1, 4^th Cross, 4^th Main, RMV II-Stage, Boopasandra, Bangalore – 5600094, India

Date of Birth/Age :

07.03.1942

Date of Appointment :

18.02.2006

Din No.:

02533434

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Devindra Singh Sahney	77316
Kanwaldeep Kaur Sahney	10321
Minicon Insulated Wires, Hyderabad, India	385120
Jasjiv Sahney and Mr. Rajiv Sahney	41500
Kanwaldeep Kaur Sahney and Jasjiv Sahney	41500
Devindra Singh Sahney and Rajiv Sahney	41500
Rajiv Sahney and Jasjiv Sahney	41500
Devindra Singh Sahney and Kanwaldeep Kaur Sahney	7941
Kanwaldeep Kaur Sahney and Devindra Singh Sahney	7932
Rajiv Sahney and Devindra Singh Sahney	41517
Rajiv Sahney and Kanwaldeep Kaur Sahney	50244
Rajiv Sahney	18775
Sahney Kirkwood Limited, Mumbai, India	92250
Jasjiv Sahney	15400
Total	872816

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	55.00
Directors or relatives of directors	45.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of mica based insulation and commutators for motors and generators in the locomotive and other industries.

Products :

ITC Code No.	Product Description
850300.90	Commutator – Part of Electric Motors
861490.06	Mica based insulating Material
854690.00	Electrical Insulators of any Material

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Commutators	Pcs.	10000000	6647713
Sllp Rings	Pcs.	4000000	287700
Contact Parts	Pcs.	5000000	1132170
Micanite – Items	Kgs.	50000	--
Moulding Compound	Kgs.	500000	324880

GENERAL INFORMATION

Bankers :

• Canara Bank, Industrial Finance Branch, No.83, Richmond Road, Bangalore – 560025, Karnataka, India

• Kotak Mahindra Bank

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Term Loans
Loan from Canara Bank	27.289	10.630
Loan for Car from Kotak Mahindra	0.181	0.335
Working Capital
Open Cash Credit from Canara Bank	60.798	46.009
Post Shipment Credit – Export bills discounted Canara Bank	0.000	4.104
Packing Credit – Canara Bank	0.000	4.300
Total	88.268	65.378
Unsecured Loan
From Directors	5.364	5.929
Loan/ICD’s from Group Companies Sahney Kirkwood Private Limited	8.188	33.827
Total	13.552	39.756

Banking Relations :	--
Auditors :
Name :	K.P Rao and Company Chartered Accountant
Address :	Poornima, 25, State Bank Road, Bangalore – 560025, Karnataka, India
Tel. No.:	91-80-26687385/25686814
Fax No.:	91-80-25594661
E-Mail :	kprao@airtelmall.in

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions
1250000	Equity Shares	Rs.10/- each	Rs.12.500 Millions
	Total		Rs.22.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
872816	Equity Shares	Rs.10/- each	Rs.8.728 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions
1250000	Equity Shares	Rs.10/- each	Rs.12.500 Millions
	Total		Rs.22.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
872816	Equity Shares	Rs.10/- each	Rs.8.728 Millions
	Preferences Shares Application Money Received Pending for Allotment of Shares		Rs.25.000 Millions
	Total		Rs.33.728 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		33.728	8.728	8.728
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		111.102	80.536	72.230
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		144.830	89.264	81.058
LOAN FUNDS
1] Secured Loans		88.268	65.378	74.790
2] Unsecured Loans		13.552	39.756	43.039
TOTAL BORROWING		101.820	105.134	117.829
DEFERRED TAX LIABILITIES		0.672	0.367	0.771
TOTAL		247.322	194.765	199.558
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		86.275	62.185	66.852
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		5.000	5.000	5.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	84.421	50.451	72.010
	Sundry Debtors	143.964	94.229	94.617
	Cash & Bank Balances	8.460	8.002	7.696
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	41.260	32.886	31.384
Total Current Assets		278.105	185.568	205.707
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	75.039	29.587	48.620
	Other Current Liabilities	30.500	21.247	20.710
	Provisions	16.519	7.154	8.671
Total Current Liabilities		122.058	57.988	78.001
Net Current Assets		156.047	127.580	127.706
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		247.322	194.765	199.558

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income
		Other Income
		TOTAL (A)	932.691	630.631	705.997
Less	EXPENSES
		Office Expenses	855.974	588.780	654.685
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	855.974	588.780	654.685
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		76.717	41.851	51.312
Less	FINANCIAL EXPENSES (D)		18.032	16.705	17.707
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		58.685	25.146	33.605
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.973	10.480	8.992
	PROFIT BEFORE TAX (E-F) (G)		48.712	14.666	24.613
Less	TAX (H)		18.146	6.749	9.098
	PROFIT AFTER TAX (G-H) (I)		30.566	7.917	15.515
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	118.703	54.547	48.012
		Commission Earnings	2.483	1.906	2.588
		Development Charges	3.375	0.506	0.000
	TOTAL EARNINGS		124.561	56.959	50.600
	IMPORTS
		Raw Materials	185.635	106.310	106.095
		Stores & Spares	0.000	0.751	0.138
	TOTAL IMPORTS		185.635	107.061	106.233
	Earnings Per Share (Rs.)		36.02	9.07	17.78

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.28	1.26	2.20
Return on Total Assets (PBT/Total Assets}	(%)	13.37	5.92	9.03
Return on Investment (ROI) (PBT/Networth)		0.34	0.16	0.30
Debt Equity Ratio (Total Liability/Networth)		1.55	1.83	2.42
Current Ratio (Current Asset/Current Liability)		2.28	3.20	2.64

LOCAL AGENCY FURTHER INFORMATION

FORM :8

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	80002508
Corporate identity number of the company	U52190KA1987PTC008214
Name of the company	SAHNEY COMMUTATORS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No. 772, II Floor, 4^th Block, 80 Feet Peripheral Road, Koramangala, Bangalore – 560034, Karnataka, India
Type of charge	Book Debts Movable Property (not being pledge) Floating Charge
Particular of charge holder	Canara Bank, Industrial Finance Branch, No.83, Richmond Road, Bangalore – 560025, Karnataka, India
Email	mgrblr1927adv@canbank.co.in
Nature of description of the instrument creating or modifying the charge	Supplemental Common Hypothecation Agreement
Date of instrument Creating the charge	21.12.2010
Amount secured by the charge	Rs.210.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest OCC/OBDB /PC FDB/FBE- Base Rate+4% Presently 12% p. a Other limits as per existing/sanction terms Terms of Repayment CC - Running account repayable on demand Other limits as per existing/sanction terms Margin OCC/ODBD/PC/FDB/FBE-25% on Stocks and Book debts. PC -10% on stocks Other limits as per existing/sanction terms. Extent and Operation of the charge The charge shall operate to the extent of the loan amount plus interest commission costs expenses and other charges thereon. Others The said amount of Rs.210.000 millions comprises OCC/ODBD/PC/FDB/FBE Rs.77.000 millions , Short Term Loan II Rs.250 millions , Term Loan III Rs.38.000 millions , ILC/FLC/BG Rs.70.000 millions
Short particulars of the property charged	I) Continuing security by way of first charge on stocks, movable fixed assets including machineries and spares, electrical installations, Twin Head bar slotting machine, Short circuit test, Hipt Commutators II) Testing and Integrated printing, sewage treatment plant and CU Recovery Plant, tools, furniture and fixtures, computer systems, cranes and trollies, etc., book debts and other movables both present and future
Date of latest modification prior to the present modification	20.12.2010
Particulars of the present modification	By the above, the amount secured by charge on movables comprising stocks, plant, machineries, book debts and other assets present and future shall cover the present modified limits aggregating Rs.210.000 millions . (all other terms and conditions remain unchanged)

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. 48.87
UK Pound	1	Rs. 78.11
Euro	1	Rs. 68.36

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	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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.