MIRA INFORM REPORT

Report Date :

28.11.2011

IDENTIFICATION DETAILS

Name :	PRAGATI TRANSMISSION PRIVATE LIMITED
Registered Office :	103/A, 104/A, 3^rd Main Road, 2^nd Stage, Peenya Industrial Estate, Bangalore – 560058, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.11.2005
Com. Reg. No.:	08-037594
Capital Investment / Paid-up Capital :	Rs.5.000 Millions
CIN No.: [Company Identification No.]	U34300KA2005PTC037594
TAN No.: [Tax Deduction & Collection Account No.]	BLRP06925C
PAN No.: [Permanent Account No.]	AADCP7146C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Spur gears, Helical Gears, Worm Gears, Power Tool Gears.
No. of Employees :	85 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 101000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. There appears some accumulated losses recorded by the company in the previous year. However with some improvement in the financial position it has been successful in wiping off the losses. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. 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 :	Ms. Vidya
Designation :	Administration Department
Contact No.:	91-80-28365364
Date :	25.11.2011

LOCATIONS

Registered Office/ Factory :	103/A,104/A, 3^rd Main Road, 2^nd Stage, Peenya Industrial Estate, Bangalore – 560058, Karnataka, India
Tel. No.:	91-80-28365364/ 28367349
Fax No.:	91-80-28365352
E-Mail :	pragatigears@rediffmail.com
Location :	Rented

DIRECTORS

As on 30.09.2011

Name :

Mr. Prakash Dhondu Kadam

Designation :

Managing Director

Address :

S -1, Srivari Residency, 112, 3^rd Cross, S V K Layout, Basaveswar Nagar, Bangalore – 560079, Karnataka, India

Date of Birth/Age :

11.03.1958

Date of Appointment :

03.11.2005

DIN No.:

00321464

Name :

Mr. Atul Suresh Bhirangi

Designation :

Director

Address :

G -1, Aditi Silver Residency, No. 99, AGS Layout, 4^th Cross, New Bel Road, Bangalore – 560054, Karnataka, India

Date of Birth/Age :

20.12.1964

Date of Appointment :

03.11.2005

DIN No.:

01204873

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
U29199KA2001PTC029247	Pragati Automation Private Limited	Managing director	24/12/2003	24/12/2003	-	Active	NO
U34300KA2005PTC037594	Pragati Transmission Private Limited	Director	3/11/2005	3/11/2005	-	Active	NO
U03110KA1988PTC009204	Pragati Engineering Belgaum Private Limited	Director	29/09/2007	29/09/2007	-	Active	NO

Name :

Mr. Srinivas Govindrao Shirgurkar

Designation :

Director

Address :

No. 586, 1^st Main, RMV Extension, 2^nd Stage, Dollars Colony, Bangalore – 560094, Karnataka, India

Date of Birth/Age :

08.04.1948

Date of Appointment :

03.11.2005

DIN No.:

00173944

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
U29199KA1986PLC007816	ACE Designers Limited	Managing director	1/07/2010	25/09/1986	-	Active	NO
U02922KA1987PLC008415	Auto CNC Machining Limited	Director	11/06/1987	11/06/1987	-	Active	NO
U85110KA1994PLC015321	ACE Manufacturing Systems Limited	Director	7/03/1994	7/03/1994	-	Active	NO
U85110KA1995PLC018544	ACE Multi Axes Systems Limited	Director	16/08/1995	16/08/1995	-	Active	NO
U74899DL1987PTC029798	Micromatic Machine Tools Private Limited	Director	30/08/1996	30/08/1996	-	Active	NO
U34300KA2005PTC037594	Pragati Transmission Private Limited	Director	3/11/2005	3/11/2005	-	Active	NO
L85110KA1980PLC003913	Wendt India Limited	Director	17/04/2006	17/04/2006	-	Active	NO

Name :

Benedict D Machado

Designation :

Director

Address :

No. 583, 1^st Main, RMV Extension, 2^nd Stage, Dollars Colony, Bangalore – 560094, Karnataka, India

Date of Birth/Age :

04.12.1948

Date of Appointment :

03.11.2005

DIN No.:

00174074

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
U29199KA1986PLC007816	ACE Designers Limited	Managing director	1/07/2010	25/09/1986	-	Active	NO
U02922KA1987PLC008415	Auto CNC Machining Limited	Director	11/06/1987	11/06/1987	-	Active	NO
U85110KA1994PLC015321	ACE Manufacturing Systems Limited	Director	7/03/1994	7/03/1994	-	Active	NO
U85110KA1995PLC018544	ACE Multi Axes Systems Limited	Director	16/08/1995	16/08/1995	-	Active	NO
U74899DL1987PTC029798	Micromatic Machine Tools Private Limited	Director	30/08/1996	30/08/1996	-	Active	NO
U34300KA2005PTC037594	Pragati Transmission Private Limited	Director	3/11/2005	3/11/2005	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Vidya
Designation :	Administration Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Prakash D Kadam	10000
Benedict D Machado	10000
Srinivas G Shirgurkar	10000
Pragati Automation Private Limited, India	20000
Total	50000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Bodies corporate	40.00
Directors or relatives of Directors	60.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Spur gears, Helical Gears, Worm Gears, Power Tool Gears.
Exports :
Products :	Gears
Countries :	Europe
Imports :
Products :	Toolings
Countries :	Switzerland
Terms :
Selling :	Credit
Purchasing :	Credit

GENERAL INFORMATION

Customers :

End Users

· Tata Motors

No. of Employees :

85 (Approximately)

Bankers :

· HDFC Bank

· Union Bank of India, Bangalore, Karnataka, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Term Loans
From Bank (Secured by hypothecation of Plant and Machinery and movable fixed assets)	3.463	7.456
Working Capital Loans from Bank
Cash Credit (Secured by way of hypothecation of Stock and Debtors) (The above term loan and cash credit from bank are also collaterally secured by fixed deposit and personal guarantees of Directors)	12.510	9.303
Total	15.973	16.759
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
HDFC Bank Loan (On the personal guarantee of Directors)	0.559	1.093
Total	0.559	1.093

Financial Institute :

Tate Capital Limited, One Forbes, Dr. V B Gandhi Marg, Fort, Mumbai – 400001, Maharashtra, India

Banking Relations :	--
Auditors :
Name :	K Shivaram and Associates Chartered Accountants
Address :	# 166/1, 1^st Floor, 8^th Cross, 7^th Main, Malleshwaram, Bangalore – 560003, Karnataka, India
Tel. No.:	91-80-23465640
Mobile No.:	91-9845234358
E-Mail :	shivaramdk@gmail.com
PAN.:	ACRPS1647N
Enterprise where key management personnel have significant influence :	· Ace Designers Limited · Pragati Automations Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs.5.000 Millions

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		5.000	5.000	5.000
2] Share Application Money		0.000	0.000	6.525
3] Reserves & Surplus		20.341	0.000	0.000
4] (Accumulated Losses)		0.000	(5.711)	0.000
NETWORTH		25.341	(0.711)	11.525
LOAN FUNDS
1] Secured Loans		15.973	16.759	18.092
2] Unsecured Loans		0.599	1.093	1.500
TOTAL BORROWING		16.572	17.852	19.592
DEFERRED TAX LIABILITIES		8.509	8.286	0.000
DEFERRED PAYMENT LIABILITY FOR CAPITAL GOODS		98.635	113.634	0.000
TOTAL		149.057	139.061	31.117
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		96.197	110.805	14.428
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	1.246
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7.838	10.798	7.813
	Sundry Debtors	52.441	19.775	15.340
	Cash & Bank Balances	7.438	2.008	1.568
	Other Current Assets	0.000	0.000	0.000
	Deposits, Loans & Advances	12.870	13.960	1.834
Total Current Assets		80.587	46.541	226.555
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	19.313	16.646	9.734
	Other Current Liabilities	1.938	1.716	1.119
	Provisions	6.540	0.000	0.349
Total Current Liabilities		27.791	18.362	11.202
Net Current Assets		52.796	28.179	15.353
MISCELLANEOUS EXPENSES		0.064	0.077	0.090
TOTAL		149.057	139.061	31.117

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sale of Machined components	68.831	57.097	32.419
		Job work receipts	76.783	7.713	7.338
		Other Income	0.318	0.231	0.230
		TOTAL	145.932	65.041	39.987
	EXPENSES
		Office Expenses	97.565	55.686	36.367
		Administrative Expenses
		Advertising Expenses
		TOTAL	97.565	55.686	36.367
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		48.367	9.355	3.620
Less/ Add	DEPRECIATION/ AMORTISATION		15.551	12.059	2.319
	PROFIT/ (LOSS) BEFORE TAX		32.816	(2.704)	1.301
Less	TAX		6.764	9.532	(0.889)
	PROFIT/ (LOSS) AFTER TAX		26.052	(12.236)	2.190
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(5.711)	6.525	4.335
	BALANCE CARRIED TO THE B/S		20.341	(5.711)	6.525
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	USD 3198	USD 25429	USD 17181
	TOTAL EARNINGS		USD 3198	USD 25429	USD 17181
	Earnings/ (Loss) Per Share (Rs.)		521.04	(244.72)	43.80

Expected Sales (2011-12): Rs.220.000 Millions

The above information has been parted by Ms. Vidya.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	17.85	18.81	3.25
Net Profit Margin (PBT/Sales)	(%)	47.68	4.73	4.01
Return on Total Assets (PBT/Total Assets}	(%)	18.56	(1.72)	0.53
Return on Investment (ROI) (PBT/Networth)		1.29	3.80	0.11
Debt Equity Ratio (Total Liability/Networth)		1.75	50.93	2.67
Current Ratio (Current Asset/Current Liability)		2.89	2.53	20.22

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS

The company has made remarkable growth in turnover during the year. As a result of the expansion of production capacity, the turnover of the company has been increased to 124.36% over the last year turnover. During the year the company has made considerable amount of profit and wipeout previous years loss.

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 two years	Yes
12) Profitability for last three years	--
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	--
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	Yes
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	Yes
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

FORM 8

Corporate identity number of the company	U34300KA2005PTC037594
Name of the company	PRAGATI TRANSMISSION PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Email Id : pragatigears@rediffmail.com
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Tata Capital Limited, One Forbes, Dr V B Gandhi Marg, Fort, Mumbai - 400001, Maharashtra, India Email Id : shailesh.rajadhyaksha@tatacapital.com
Nature of instrument creating charge	Loan cum hypothecation cum guarantee agreement dated 24.10.2011
Date of instrument Creating the charge	24.10.2011
Amount secured by the charge	Rs.75.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Long Term Lending Rate (LTLR) @ 17.75% per annum Rate of Interest @ 2.50% below LTLR, subject to a minimum of 11% p.a Terms of repayment Principal amount to be repaid in 60 monthly installments of Rs.1.250 Millions commencing from 10.12.2011 and ending on 10.11.2016 Margin Margin @ 19% of Invoice / Machine Value Extent and operation of the charge The charge extends to the due repayment of the loan of Rupees 75.000 Millions including interest, additional interest, costs, charges, expenses and all other monies payable by the Borrower under the Agreement dated 24.10.2011 In the event of default in payment of interest or repayment of principal amount of the Loan the Borrower shall pay to the Lender, further interest @ 4% p.a. as penal interest Others Nil
Short particulars of the property or asset(s) charged (including complete address and location of the property)	CNC Hobbing Machine Model No 400 GH Phoenix CNC Gear Grinding Machine Reishauer CNC GEAR Testing Systems Model No GMX 40D

FIXED ASSETS

· Plant and Machinery

· Testing and Measuring equipments

· Tools and Handling Equipment

· Computer

· Electrical Fittings

· Furniture and Fixtures

· Office Equipment

· Vehicles

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.52.17
UK Pound	1	Rs.80.64
Euro	1	Rs.69.43

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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	4
--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		42

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.