MIRA INFORM REPORT

Report Date :

17.10.2011

IDENTIFICATION DETAILS

Name :	RMG ELECTROMECH PRIVATE LIMITED
Registered Office :	No.41, Kereguddadahalli, Chikkabanavara, Kammagondahalli Main Road, Bangalore-560 090, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	30.07.1997
Com. Reg. No.:	08-22593
Capital Investment / Paid-up Capital :	Rs. 2.120 Millions
CIN No.: [Company Identification No.]	U31909KA1997PTC022593
TAN No.: [Tax Deduction & Collection Account No.]	BLR01148A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of a Process Control Equipment and Instrument / Cyclic Test System.
No. of Employees :	50 (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 75000
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 :	Ms. Geeta
Designation :	Accountant
Contact No.:	91-80-23253326
Date :	11.10.2011

LOCATIONS

Registered Office/ Factory :	No.41 and 42, Smr Layout, Kereguddadahalli, chikkabanavara P. O Bangalore-560 090, Karnataka, India
Tel. No.:	91-80-23253325/28389481/23253326/23253327/23253329
Fax No.:	91-80-23253328/28389204
E-Mail :	rmg-bangalore@dataone.in
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :

Mr. Mattappallil Jose

Designation :

Director

Address :

No.5, Smr Layout, Kereguddadahalli, Chikkabanavara, Bangalore North, Bangalore 560090, Karnataka, India

Date of Birth/Age :

25.01.1952

Date of Appointment :

04.01.1988

DIN No.:

00359656

Name :

Mr. Gopinathan Chakyath Velluvakandy

Designation :

Director

Address :

No.20, Geetham, Kereguddadahalli, Chikkabanavara, Bangalore North, Bangalore 560090, Karnataka, India

Date of Birth/Age :

03.05.1944

Date of Appointment :

04.01.1988

DIN No.:

00359770

Name :

Ms. Girija Ravindran

Designation :

Director

Address :

No.158, Jinsha, Prashanth Nagar, T. Dasarahalli, Bangalore North, Bangalore 560058, Karnataka, India

Date of Birth/Age :

24.03.1961

Date of Appointment :

04.01.1988

DIN No.:

00359934

Name :

Ms. Kalaimathi Gunasekaran

Designation :

Director

Address :

No.14, 3^rd Main, 1^st Cross, M.S.R Road, VR Layout, Bangalore North, Bangalore – 560012, Karnataka, India

Date of Birth/Age :

15.03.1961

Date of Appointment :

01.04.1999

DIN No.:

00360139

Other Directorship:

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	U31909KA1997PTC022593	R.M.G Electromech Private Limited	Director	04-01-99	04-01-99	-	Active	NO
2	U29120TZ2010PTC016075	Instrument Logics and Controls India Private Limited	Director	25-05-10	25-05-10	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Geeta
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Mattappallil Jose	53000
Gopinathan Chakyath Velluvakandy	53000
Girija Ravindran	53000
Kalaimathi Gunasekaran	53000
TOTAL	212000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of a Process Control Equipment and Instrument / Cyclic Test System.

Products :

• 2 Wire/ 3 Wire Position Transmitters
• 2 Wire Inductive/ Capacitive Non Contact Type LVDT/ Proximity Sensor Based Position Transmitters
• Electronic Positioners Using PWM Technique
• Loop Powered 2 Wire Digital Displays and Signal Isolators
• Special Purpose Power Supplies
• Varibale Frequency Drives for Induction/ DC Motors
• Micro Controller Based Thyristor/ IGBT Motor Control

Product Description	Item Code No.
Manufacture of Electronic Goods	8543 and 9026

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Customers :

• STI, Italy
• CCI, Chennai
• Auma (India) Private Limited, Bangalore
• Mil Control Limited, Thrissur
• Instrumentation Limited, Palakkad
• Fisher Sanmar Limited, Chennai
• KOSO Fluid Controls Private Limited, Palakkad
• Keltron Controls DIVN, Aroor, Kerela
• Forbes Marshall, Pune
• ABB Limited, Bangalore
• Control Components Inc.
• Flow Serve India Controls Private limited, Bangalore
• NTPC
• Dresser Valve India Private Limited, Coimbatore
• Sevem Glocon Limited, Chennai
• SMC Pneumatics India Private Limited, Noida
• ILC, Coimbatore

No. of Employees :

50 (Approximately)

Bankers :

• State Bank of India, SME City Credit Centre, 20, Badaganadu Sangha Building, Girls High School Street, Seshadripuram Kumara Park, Bangalore – 560020, Karnataka, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Term Loan – State Bank of India (Secured by charge on plant and machinery of the company)	0.355	0.761
OD/ CC with State Bank of India	1.952	2.486
Total	2.307	3.247
Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
From Directors	3.178	3.178
From Others	0.000	0.000
Total	3.178	3.178

Banking Relations :	--
Auditors :
Name :	Rajnish and Jayasimha Chartered Accountants
Address :	414, 41^st Cross, 7^th Main, 5^th Block, Jayanagar, Bangalore-560 041, Karnataka, India
PAN.:	AABFR2531K

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
212000	Equity Shares	Rs.10/- each	Rs. 2.120 Millions

Notes: Share Application money received pending allotment

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		2.120	2.120	0.800
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		16.640	15.588	12.955
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		18.760	17.708	13.755
LOAN FUNDS
1] Secured Loans		2.307	3.247	2.521
2] Unsecured Loans		3.178	3.177	4.347
TOTAL BORROWING		5.485	6.424	6.868
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		24.245	24.132	20.623
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.139	6.035	5.961
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.083	0.076	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.265	10.311	9.520
	Sundry Debtors	13.625	17.512	14.772
	Cash & Bank Balances	0.379	0.361	0.066
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.336	0.284	0.253
Total Current Assets		25.605	28.468	24.611
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.470	7.789	7.966
	Other Current Liabilities	0.112	2.658	1.987
	Provisions	0.000	0.000	0.000
Total Current Liabilities		7.582	10.447	9.953
Net Current Assets		18.023	18.021	14658
MISCELLANEOUS EXPENSES		0.000	0.000	0.004
TOTAL		24.245	24.132	20.623

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	58.721	61.275	55.608
		Other Income	0.232	0.120	0.120
		TOTAL	58.953	61.395	55.728
	DEPRECIATION/ AMORTISATION		0.800	0.766	0.698
	PROFIT AFTER TAX		1.052	2.632	3.664
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		15.588	12.955	9.291
	BALANCE CARRIED TO THE B/S		16.640	15.587	12.955
	Earnings Per Share (Rs.)		4.96	12.42	17.28

Particulars	31.03.2011
Sales Turnover (Approximately)	70.000

Expected Sales (2011-2012) : Rs. 80.000 Millions

The above information has been parted by Ms. Geeta (Accountant)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.78	4.29	6.57
Debt Equity Ratio (Total Liability/Networth)		0.70	0.95	1.22
Current Ratio (Current Asset/Current Liability)		3.38	2.72	2.47

LOCAL AGENCY FURTHER INFORMATION

Check list by Info Agents	Available in Reports ( Yes/No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitutions of the Firm	Yes
Premises Details	Yes
Type Of Business	Yes
Line of Business	Yes
Promoter’s Background	--
No. of Employees	Yes
Name of person contacted	Yes
Designation of contact person	Yes
Turnover of Firm fort last three years	Yes
Profitability for last three years	No
Reasons For Variation<>20%	No
Estimation for coming financial year	Yes
Capital in Business	Yes
Details of Sister Concern	No
Major Suppliers	No
Major Customers	No
Payment Terms	Yes
Export / Import Details (if Applicable)	No
Market Information	--
Litigations that the firm / Promoter involved in	--
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	--
Buyer visit details	--
Financial, if provided	No
Incorporation details, if applicable	--
Last Account filed at ROC	--
Major shareholder , if available	--

OPERATIONS DURING THE YEAR:

Though they had projected 15-17% growth during the year 2009-10, the recessionary trend continued till the new financial year 2010-11.

Though volume of business in terms of quantities increased the revenue it generated was lower by around 40% do to facts one of key products namely electronic programmable actuator control (E — Pac ) was sold for a lower prices due to very tough market conditions which affected the company’s profitability adversely. They had taken a strategic decision to cut cost by 15% of our main product to remain competitive during worst economic scenario of the decade.

This reason why the figure look bit dismal. However, it is important to note that company remained generating profit though at a lower scale.

The current business scenario seem to be improving both national and international level which would bring in better figures during the year 2010 -11,

FORM 8:

Corporate identity number of the company	U31909KA1997PTC022593
Name of the company	R.M.G ELECTROMECH PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No.41, Kereguddadahalli, Chikkabanavara, Kammagondahalli Main Road, P.O. Bangalore-560 090, Karnataka, India Email: rmg-bangalore@dataone.in
This form is for	Modification of Charge
Charge identification (ID) number of the charge to be modified	80047352
Type of charge	Immovable Property Movable Property (not being pledge)
Particular of charge holder	State Bank of India, SME City Credit Centre, 20, Badaganadu Sangha Building, Girls High School Street, Seshadripuram Kumara Park, Bangalore – 560020, Karnataka, India Email: jsurya@vsnl.com
Nature of instrument creating charge	Supplemental Agreement Of Loan Cum Hypothecation (Sme-4) Memorandum for Recording Extension of Mortgage by Deposit of Title Deeds Covering Enhanced Limits (SME-7) (Both the documents relate to the same modification)
Date of instrument Creating the charge	24.03.2011
Amount secured by the charge	Rs. 6.525 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: WC : Interest @ 6.50 above base rate which is presently 8.25%, Present effective rate 14.75% p.a. Terms of Repayment: Payable on demand Margin: 25% Extent and operations of the charge : Charge extends by way of first charge on all the assets throughout the period of sanctioned limits.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of the whole of the present and future stocks of raw materials, stock in process, finished goods, book debts, outstanding monies, receivables, claims, bills and other current assets belonging to the company. Hypothecation of plant and machineries, furniture and fixtures, etc. belonging to the company. EM on companys immovable properties comprising of Industrial land & building situated at No. 41 and 42, Khatha No. 148/147, Kereguddadahalli, Yeshwanthpur Hobli, Bangalore
Date of instrument modifying the charge	14.07.2008
Particulars of the present modification	Total limits modified to Rs. 6.525 millions EM on company’s immovable properties comprising of Industrial land and buildings situated at No. 41 and 42, Khatha No. 148/147, Kereguddadahalli, Yeshwanthpur Hobli, Bangalore. All other terms, conditions and existing securities to continue.

FIXED ASSETS:

• Computer
• Construction of New Factory Building
• Vehicle
• Furniture and Fixture
• Machineries
• Official Equipments
• Site

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.49.07
UK Pound	1	Rs.77.42
Euro	1	Rs.67.73

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	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.