MIRA INFORM REPORT

Report Date :

28.11.2011

IDENTIFICATION DETAILS

Name :	MEGATHERM ELECTRONICS PRIVATE LIMITED
Registered Office :	123 SDF Building, Block GP Sector V, Salt Lake City, Kolkata – 700091, West Bengal
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	22.06.1989
Com. Reg. No.:	21-47097
Capital Investment / Paid-up Capital :	Rs.19.920 Millions
CIN No.: [Company Identification No.]	U32109WB1989PTC047097
TAN No.: [Tax Deduction & Collection Account No.]	CALM02078G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Importer and Exporter of All Types of Furnance Like Medium Furnances, Induction Melting Furnances and Melting Furnances
No. of Employees :	300 (Approximately)

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 600000
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 – 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 :	Mr. Vikas Varshneya
Designation :	Director
Contact No.:	91-9831188818
Date :	16.11.2011

LOCATIONS

Registered Office :	123 SDF Building, Block GP Sector V, Salt Lake City, Kolkata-700091, West Bengal, India
Tel. No.:	91-33-23577352/ 7745/ 7854/ 6043
Mobile No.:	91-9831188818 (Mr. Vikas)
Fax No.:	91-33-23377757
E-Mail :	megatherm@vsnl.com v.varshneya@megatherm.com
Website :	www.megatherm-india.com
Area :	46000 sq.ft.
Location :	Owned
Factory 1 :	Plot L-1, Block GP, Sector V, Kolkata – 700091, West Bengal, India
Tel. No.:	91-33-23577352 / 7745/ 7854/ 6093
Fax No.:	91-33-23577757
E-Mail :	megatherm@vsnl.net.in, contact@megatherm-india.com sales@megatherm.com
Area :	46000 Sq ft
Factory2/Branch :	1, Taratala Road, Kolkata-700088, West Bengal, India
Tel No.:	91-33-24014234/ 4235
Fax No.:	91-33-24013246
E mail:	emt@megatherm.com
Area :	18000 Sq. ft
Located	Owned

DIRECTORS

As on 30.09.2010

Name :

Ms. Shesadri Bhushan Chanda

Designation :

Chairman Cum Managing Director

Address :

Udita 030402, 1050/ 1, Survey Park, Kolkata-700075, West Bengal India

Date of Birth/Age :

21.08.1956

Date of Appointment :

22.06.1989

Din No.:

00961593

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	U32109WB1989PTC047097	MEGATHERM ELECTRONICS PRIVATE LIMITED	Managing director	22-06-89	22-06-89	-	Active	NO
2	U29299WB1988SGC044800	EMT MEGATHERM PRIVATE LIMITED	Managing director	24-10-05	24-10-05	-	Active	NO
3	U51101UP2009PTC038375	EMA MEGATHERM INDUCTION EQUIPMENTS PRIVATE LIMITED	Managing director	20-10-09	06-10-09	-	Active	NO
4	U31900WB2010PTC154236	MEGATHERM TRANSMISSION AND DISTRIBUTION PRIVATE LIMITED	Director	22-10-10	22-10-10	-	Active	NO

Name :

Mrs. Ayati Chanda

Designation :

Director

Address :

Udita 030402, 1050/1, Survey Park, Kolkata – 700075, West Bengal, India

Date of Birth :

06.03.1963

Date of Appointment :

01.11.2005

Din No.:

00962425

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	U29299WB1988SGC044800	EMT MEGATHERM PRIVATE LIMITED	Director	24-10-05	24-10-05	-	Active	NO
2	U32109WB1989PTC047097	MEGATHERM ELECTRONICS PRIVATE LIMITED	Director	01-11-05	01-11-05	-	Active	NO
3	U31900WB2010PTC154236	MEGATHERM TRANSMISSION AND DISTRIBUTION PRIVATE LIMITED	Director	22-10-10	22-10-10	-	Active	NO

Name :

Mr. Satadri Chanda

Designation :

Director

Address :

Udita 030402, 1050/1, Survey Park, Kolkata – 700075, West Bengal, India

Date of Birth :

01.09.1989

Date of Appointment :

24.09.2008

Din No.:

02302312

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	U32109WB1989PTC047097	MEGATHERM ELECTRONICS PRIVATE LIMITED	Director	30-09-08	24-09-08	-	Active	NO
2	U31900WB2010PTC154236	MEGATHERM TRANSMISSION AND DISTRIBUTION PRIVATE LIMITED	Director	22-10-10	22-10-10	-	Active	NO

Name :

Mr. Aaditeya Datta

Designation :

Director

Address :

114, Netaji SC Bose Road, Jadavpur, Kolkata – 700040, West Bengal, India

Date of Birth :

20.02.1973

Date of Appointment :

24.09.2008

Din No.:

02322749

Name :

Mr. Vikas Varshneya

Designation :

Director

Name :

Mr. Gautam Talukdar

Designation :

Director

Name :

Mr. Gurpreet Kaur

Designation :

Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Shesadri Bhushan Chanda	195350
Ayati Chanda	3850
Total	199200

Equity Share Breakup (Percentage of Total Equity)

(As on 30.09.2010)

Category	Percentage
Directors or relative of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of All Types of Furnances Like Medium Furnances, Induction Melting Furnances and Melting Furnances.

Products :

Products Description	Item Code No
Medium/ High Frequency Induction Furnace	84771000

· Medium Furnances Induction Melting Furnances

· Iduction Furnances Melting

· Automated Machines for Induction Hardening at Auto Components

· Adopt transformers, etc.

Exports :

Products :

Melting Furnances

Countries :

· UAE

· Poland

· France

Imports :

Products :

Raw Material

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

· Balbir Steel

Suppliers :

· Jindal Steel

· Tata Motors

No. of Employees :

300 (Approximately)

Bankers :

v State Bank of India, 24, Park Street, Commercial Branch, Kolkata-700016, India

v State Bank of India, 24 Park Street, Kolkata - 700 016, West Bengal, India

v CITI Bank, N.S.C. Bose Road, Kolkata-700040, India

v Axis Bank Limited, Credit Management Centre (CMC), 1, Shakespeare Sarani, AC Market, 3^rd floor, Kolkata – 700071, West Bengal, India

v ICICI Bank

Facilities:

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Cash Credit Account with SBI, Commercial Branch, Kolkata (Secured by first charge on fixed and current assets, both current and future and equitable mortgage of industrial flat at 123 SDF Building measuring 1354 sq.ft. land and building at plot L1 Sector V, Salt Lake Measuring 0.6232 acre, house property at 1E Balkunth, 114 NSC Bose Road, Kolkata 40 and Pledge of FDR of Rs. 4.600 Millions and personal guarantee of the directors.)	1.018	46.661
Axis Bank Corporation Loan (Secured by Equitable mortgage of Flat Udita At 1050/1 Survey park Kolkata-700075 owned by Managing Director of the company and repayable by quarterly installment of Rs. 2.500 Millions each)	0.000	20.000
Car Loan – ICICI Bank	0.786	0.000
Total	1.804	66.661

Banking Relations :	--
Auditors :
Name :	Bhattacharjee Roy Chaudhari and Associates Chartered Accountant
Address :	36, Strand Road, First Floor, Room no. 13, Kolkata – 700001, West Bengal, India
PAN No.:	AACFB3225G
Sister Concern :	Megatherm International
Subsidiary :	EMT Mehatherm Private Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Capital	Rs.100/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
199200	Equity Capital	Rs.100/- each	Rs.19.920 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			(Gross)	(Gross)
1] Share Capital		19.920	9.960	9.960
2] Share Application Money		2.095	2.095	2.095
3] Reserves & Surplus		127.350	114.873	100.005
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		149.365	126.928	112.060
LOAN FUNDS
1] Secured Loans		1.804	66.661	64.137
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1.804	66.661	64.137
DEFERRED TAX LIABILITIES		1.212	1.507	2.671
TOTAL		152.381	195.096	178.868
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		37.938	30.583	33.940
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		4.344	3.845	5.049
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9.180	79.269	111.774
	Sundry Debtors	86.626	162.209	21.387
	Cash & Bank Balances	31.559	22.098	23.248
	Other Current Assets	6.203	4.455	72.882
	Loans & Advances	125.106	157.912	69.462
Total Current Assets		258.674	425.943	298.753
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	19.410	19.411	81.770
	Other Current Liabilities	102.979	191.252	29.492
	Provisions	26.186	54.612	47.612
Total Current Liabilities		148.575	265.275	158.874
Net Current Assets		110.099	160.668	139.879
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		152.381	195.096	178.868

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income (Gross)	996.100	1249.803	1284.714
		Other Income	0.081	NA	NA
		TOTAL (A)	996.181	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses		NA	NA
		Advertising Expenses
		TOTAL (B)		NA	NA
			955.627
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			NA	NA
Less	FINANCIAL EXPENSES (D)			NA	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		40.554	29.190	28.045
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.800	8.485	5.141
	PROFIT BEFORE TAX (E-F) (G)		33.754	20.705	22.904
Less	TAX (H)		11.316	NA	9.582
	PROFIT AFTER TAX (G-H) (I)		22.438	NA	13.322
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	339.668	309.055	406.630
	TOTAL EARNINGS		339.668	309.055	406.630
	IMPORTS
		Import Value	4.062	56.765	83.226
	TOTAL IMPORTS		4.062	56.765	83.226
	Earnings Per Share (Rs.)		0.23	--	66.87

Particulars	31.03.2011
Sales Turnover (Approximately)	1260.000

Expected Sales (2011-2012) : Rs. 1260.000 millions

The above information has been parted by Mr. Vikas .

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.25	NA	NA
Net Profit Margin (PBT/Sales)	(%)	3.38	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	11.37	4.54	6.88
Return on Investment (ROI) (PBT/Networth)		0.22	0.16	0.20
Debt Equity Ratio (Total Liability/Networth)		1.00	2.62	0.20
Current Ratio (Current Asset/Current Liability)		1.74	1.61	1.88

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1. Year of Establishment	Yes
2. Locality of the firm	Yes
3. Constructions 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	Yes
15. Capital in the business	Yes
16. Details of sister concerns	Yes
17. Major suppliers	Yes
18. Major customers	Yes
19. Payments terms	Yes
20. Export / Import details	Yes
21. Market information	-------
22. Litigations that the firm / promoter involved	------
23. Banking Details	Yes
24. Banking facility details	Yes
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	------

OPERATING RESULTS AND OVERVIEW

The year 2009 was one of the worst in the history of the world economy. Indian economy also felt the ripple effect of the recession of world economy. The company also suffered due to this and there was marginal fall in the turnover of the company. In spite of fall in the turnover, there was increase in the profit mainly due to interest rate fluctuation and less interest outgo.

The company is trying its best to curtail cost of production and building up innovative marketing and selling strategies to augment the turnover.

FORM :8

Corporate identity number of the company	U32109WB1989PTC047097
Name of the company	MEGATHERM ELECTRONICS PVT LTD
Address of the registered office or of the principal place of business in India of the company	123 SDF Building Block GP Sector V, Salt Lake City, Kolkata – 700091, West Bengal, INDIA
This form is for	Modification of charge
Type of charge	Immovable property Any interest in immovable property
Particular of charge holder	State Bank of India, Commercial Branch, Kolkata, 24, Park Street, Kolkata – 700016, West Bengal, India
Nature of instrument creating charge	Memorandum of Deposit for Creation of Creation of Charge for Overall Limit - (Form - C.9).
Date of instrument Creating the charge	12/09/2011
Amount secured by the charge	Rs. 258.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Cash Credit : At 5.00% above Base Rate, present effective rate is 13.50% p.a. with monthly rest. Terms of repayment Working Capital Limit is repayable on demand. Margin As stipulated by the Bank for the respective assets from time to time. Finished Goods : 25%, Receivables (Cover period 90 days) : 25%, Letter of Credit : 10% and Bank Guarantee : 10%. Extent and operation of the charge The charge operates as first charge basis on the whole of the mortgaged properties of the Company as mentioned in Column No.15 to secure the maximum amount under the said charge fixed at Rs.258.000 millions together with interest, costs and charges thereon. Other The Borrower shall not do or allow anything which may prejudice the security and shall comply with the terms and conditions of the Agreements.
Short particulars of the property charged (Including location of the property)	All that Flat bearing Module No.123 measuring 125 sq.mt. situate on the ground floor in SDF Building in Salt Lake Electronics Complex, Sector-V of Bidhannagar, P.S. Bidhannagar, Dist. 24 Pgs(N) Under Lease Deed No.I-3703 for the year 1992.
Particulars of the present modification	By this modification, the overall limit remains same at Rs.258.000 millions. However, the overall limit is additionally secured by creation of mortgage on the above mentioned properties of the Company situated at SDF Building in Salt Lake Electronics Complex, Sector-V, Saltlake for securing the due repayment and discharge of the liability by the borrower to the bank together with interest, costs and charges thereon. All other terms and conditions continue to remain as before in full force and effect.

CONTINGENT LIABILITY NOT PROVIDED IN RESPECT OF :

(Rs. In Millions)

Particulars	31.03.2010	31.03.2009
Outstanding Bank Guarantee	32.546	52.792
Outstanding Letter of Credit	19.729	14.188

TRADE REFERENCES

· Balbir Steel

· Jindal Steel

· Tata Motors

FIXED ASSETS:

v Land – Leasehold

v Factory Building

v Residential Flat

v Plant and Machinery

v Electrical Installation

v Air Conditioner Machine

v Motor car

v Motor Cycle

v Tools and Equipment

v Drawing Equipment

v Furniture and Fixture

v Office Equipment

v Computers

AS PER WEBSITE

History

In 1989, the Company led by its Chief Entrepreneur, Mr. S. B. Chanda, ventured into manufacturing of "Electric Induction Melting and Heating Equipments" and started its maiden journey in the diverse field of Metallurgical and Metal Working Sectors.

Market

The Company made deep inroads in almost every metal sector. It is present in melt shops, be it for Steel or Iron or Copper or Aluminium, whether an SME or Large Foundry or an integrated Steel Plant. It is present in diverse metal working segment, be it forging or rolling, hardening or tempering, whether Automotive sector or Defence production or a Critical Engineering Application.

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. 52.16
UK Pound	1	Rs. 80.64
Euro	1	Rs. 69.42

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--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.