MIRA INFORM REPORT

Report Date :

15.11.2011

IDENTIFICATION DETAILS

Name :	USART TECHNOLOGIES INDIA PRIVATE LIMITED
Registered Office :	1F2, Degala Residency, Officers Colony, Dr. A S Rao Nagar, Hyderabad – 500062, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.08.2008
Com. Reg. No.:	01-060712
Capital Investment / Paid-up Capital :	Rs.0.500 Million
CIN No.: [Company Identification No.]	U74900AP2008PTC060712
TAN No.: [Tax Deduction & Collection Account No.]	HYDU01176A
PAN No.: [Permanent Account No.]	AABCU0320R
Legal Form :	Private Limited Liability Company
Line of Business :	Trader and Exporter of Networking Products, Telemetry, Avionics, Calibration Products, Testing and Measuring, etc.
No. of Employees :	12 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 5000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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

INFORMATION PARTED BY

Name :	Ms. Kalpana
Designation :	Accounts Department
Contact No.:	91-40-64580374
Date :	12.11.2011

LOCATIONS

Registered Office :	1F2, Degala Residency, Officers Colony, Dr. A S Rao Nagar, Hyderabad – 500062, Andhra Pradesh, India
Tel. No.:	91-40-64580374
E-Mail :	nsitaramam@yahoo.co.in sitaramam@usartindia.com
Location :	Owned
Sales Office :	6-28, Plot No. 85W, Anupuram, Kapra, ECIL Post, Hyderabad – 500062, Andhra Pradesh, India
Tel. No.:	91-40-64580374/ 37143374
Fax No.:	91-40-40190374

DIRECTORS

As on 30.09.2011

Name :

Mr. Sitaramam Neerogi

Designation :

Managing Director

Address :

1F2, Degala Residency, Officers Colony, Dr. A S Rao Nagar, Hyderabad – 500062, Andhra Pradesh, India

Date of Birth/Age :

28.04.1967

Date of Appointment :

25.08.2008

DIN No.:

01850142

Other Directorship :

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
U31200AP2005PTC046744	Csi Integrated Instruments Private Limited	Director	4/07/2005	4/07/2005	-	Active	YES
U74900AP2008PTC060712	Usart Technologies India Private Limited	Managing director	25/08/2008	25/08/2008	-	Active	NO

Name :

Ms. Bhuvaneshwari Neerogi

Designation :

Director

Address :

1F2, Degala Residency, Officers Colony, Dr. A S Rao Nagar, Hyderabad – 500062, Andhra Pradesh, India

Date of Birth/Age :

26.02.1976

Date of Appointment :

25.08.2008

DIN No.:

02261492

KEY EXECUTIVES

Name :	Ms. Kalpana
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Sitaramam Neerogi	25000
Bhuvaneshwari Neerogi	25000
Total	50000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader and Exporter of Networking Products, Telemetry, Avionics, Calibration Products, Testing and Measuring, etc.
Products :	· Trading of Electronic Instruments
Exports :
Products :	Networking Products
Countries :	· USA · UK
Imports :
Products :	Networking Products
Countries :	· USA · UK · Taiwan · China
Terms :
Selling :	Cash/ Credit
Purchasing :	Cash/ Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

12 (Approximately)

Bankers :

Oriental Bank of Commerce, 126, SD Road, Secunderabad – 500003, Andhra Pradesh, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Bank OD	3.487	3.374
Total	3.487	3.374
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
N. Sita Ramam – Managing Director	1.480	1.263
N. Bhuvaneswari - Director	0.490	0.000
Others	1.150	0.600
Total	3.120	1.863

Banking Relations :	--
Auditors :
Name :	Mr. Nagaraju Kammela Chartered Accountant
Address :	D. No :2-1-414/1, Flat No. 301, Sri Sai Krupa Residency, 4^th Street, Nallakunta, Hyderabad – 500044, Andhra Pradesh, India
PAN.:	ATWPK5039J

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.10/- each	Rs.0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.10/- each	Rs.0.500 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		0.500	0.500	0.500
2] Share Application Money		0.000	0.000	0.045
3] Reserves & Surplus		0.857	0.206	0.071
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1.357	0.706	0.616
LOAN FUNDS
1] Secured Loans		3.487	3.374	0.000
2] Unsecured Loans		3.120	1.863	0.300
TOTAL BORROWING		6.607	5.237	0.300
DEFERRED TAX LIABILITIES		0.001	0.001	0.001
TOTAL		7.965	5.944	0.917
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.052	0.065	0.076
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	0.130	0.324	0.070
	Sundry Debtors	7.339	5.256	0.963
	Cash & Bank Balances	1.007	0.727	0.305
	Other Current Assets
	Loans & Advances	1.777	1.727	0.163
Total Current Assets		10.253	8.034	1.501
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.973	1.559	0.221
	Other Current Liabilities
	Provisions	0.381	0.616	0.467
Total Current Liabilities		2.354	2.175	0.688
Net Current Assets		7.899	5.859	0.813
MISCELLANEOUS EXPENSES		0.014	0.020	0.028
TOTAL		7.965	5.944	0.917

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	22.720	6.259	0.559
		Income from consultancy	0.716	0.451	0.609
		Other Income	0.069	0.005	0.000
		TOTAL (A)	23.505	6.715	1.168
Less	EXPENSES
		Cost of Goods sold	19.167	4.61	0.296
		Administrative and Other Expenses	3.363	1.879	0.753
		TOTAL (B)	22.530	6.495	1.049
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.975	0.220	0.119
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.013	0.017	0.007
	PROFIT BEFORE TAX (E-F) (G)		0.962	0.203	0.112
Less	TAX (I)		0.312	0.067	0.041
	PROFIT AFTER TAX (G-I) (J)		0.650	0.136	0.071
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.000	0.000	0.000
	BALANCE CARRIED TO THE B/S		0.650	0.136	0.071
	Earnings Per Share (Rs.)		13.00	2.72	1.42

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.76	2.03	6.07
Net Profit Margin (PBT/Sales)	(%)	4.23	3.24	20.03
Return on Total Assets (PBT/Total Assets}	(%)	9.33	2.51	7.10
Return on Investment (ROI) (PBT/Networth)		0.71	0.28	0.18
Debt Equity Ratio (Total Liability/Networth)		2.18	10.49	1.60
Current Ratio (Current Asset/Current Liability)		4.36	3.69	2.18

LOCAL AGENCY FURTHER INFORMATION

COMPANY OVERVIEW

The Company was incorporated on 25.08.2008 as a private limited company and is primarily engaged in the business of trading of all kinds of scientific instruments, whether mechanical or electronic, to manufacture and trading of all kinds of electronics, electrical instrument, apparatus, appliances and devices for industrial or domestic usage.

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	No
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	No
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

FORM 8

Corporate identity number of the company	U74900AP2008PTC060712
Name of the company	USART TECHNOLOGIES INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	1F2, Degala Residency, Officers Colony, Dr. AS Rao Nagar, Hyderabad – 500062, Andhra Pradesh, India Email Id : nsitaramam@yahoo.co.in
This form is for	Creation of charge
Type of charge	Book debts Stock of Machineries, stores, spares, consumables
Particular of charge holder	Oriental Bank of Commerce, 126, SD Road, Sescunderabad – 500003, Andhra Pradesh, India Email Id : bm0181@obc.co.in
Nature of instrument creating charge	Agreement of Hypothecation of assets
Date of instrument Creating the charge	25.03.2010
Amount secured by the charge	Rs.4.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 12% Terms of repayment One year Margin 25% Extent and operation of the charge Primary security : Hypothecation of stocks of machinery, stores, spares, consumables and receivables Collateral Security a) Flat no 1F2 having plinth area of 964 sq.ft (Carpet area 819.40 Sq. ft) b) Plot no 264 admeasuring about 200.00 sq. yards c) Plot no 223(P) admeasuring about 134.00 Sq. Yards d) Plot no 124, admeasuring about 300.00 sq. yards e) Personal guarantee of both the directors of the company namely Mr. Nirogi Sitaramam and Smt. Nirogi Bhuvaneshwari Others Nil
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Flat no. 1F2 having plinth area of 964 sq. ft situated at “Degala Residency” Plot F-4, in Survey No. 298/1, Officers Colony, Safilguda, Malkajgari Mandal, R.R District Plot no 246 admeasuring about 200 Sq. yards in S.No:379,385,3902,392 and 393 situated at nagaram village, keesara mandal, R. R District Plot no 223(P) admeasuring about 300 Sq. yards in S.No:379,385,3902,392 and 393 situated at nagaram village, keesara mandal, R. R District Plot no 124 admeasuring about 300 Sq. yards in S. No. 50 situated at Pocharam Village, Ghatkesar mandal, R. R District Personal guarantee of both the directors of the company namely Shri. Nirogi Sitaramam and Smt. Nirogi Bhuvaneshwari

FIXED ASSETS

· Furniture

· Computer

· Fax Machine

· Printer

· UPS

TRADE REFERENCES

· ITC

· DRDL

· PGAD

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.50.08
UK Pound	1	Rs.80.36
Euro	1	Rs.68.83

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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		27

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.