MIRA INFORM REPORT

Report Date :

21.10.2011

IDENTIFICATION DETAILS

Name :	PRO INNOVATIVE TECHNOLOGIES PRIVATE LIMITED
Registered Office :	No. 99/49, 2^nd Main Industrial Town, Rajainagar, Bangalore-560044, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	31.08.2005
Com. Reg. No.:	8-037105
Capital Investment / Paid-up Capital :	Rs. 0.100 million
CIN No.: [Company Identification No.]	U32109KA2005PTC037105
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Service Provider, Wholesalers, Distributor and Supplier of Pcb assembling, electrical goods, circuit boards, electronic instrument, conductors, cable and Core services, design, fabrication of housing for electronic assemblies, emc testing, semi automated testing etc.

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 97000
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

LOCATIONS

Registered Office :	No. 99/49, 2^nd Main Industrial Town, Rajainagar, Bangalore-560044, Karnataka, India
Tel. No.:	91-80-23307067 / 40613710
Fax No.:	91-80-23307005 / 41673556
E-Mail :	dhiren@proinnovative.net proinnovative@vsnl.com
Website :	www.proinnovative.net

DIRECTORS

AS ON 30.09.2010

Name :

Mr. Dhiren Mansukhlal Shah

Designation :

Director

Address :

161, Embassy Heritage, 8^th Main Malleshwaram Banglore-560056, Karnataka, India

Date of Birth/Age :

13.08.1962

Date of Appointment :

31.08.2005

DIN No.:

01659997

Name :

Ms. Rupa Dhiren Shah

Designation :

Director

Address :

161, Embassy Heritage, 8^th Main Malleshwaram Banglore-560056, Karnataka, India

Date of Birth/Age :

26.01.1964

Date of Appointment :

31.08.2005

DIN No.:

01660090

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U32109KA2005PTC037105	Pro Innovative Technologies Private Limited	Director	31-08-05	31-08-05	Active	NO
2	U31909KA2010PTC053353	Srishti I2i Biz Solutions Private Limited	Director	22-04-10	22-04-10	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Dhiren Mansukhlal Shah	5000
Rupa Shah	5000
Total	10000

AS ON 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Service Provider, Wholesalers, Distributor and Supplier of Pcb assembling, electrical goods, circuit boards, electronic instrument, conductors, cable and Core services, design, fabrication of housing for electronic assemblies, emc testing, semi automated testing etc.
Products :	Populated Printed Circuit Boards

GENERAL INFORMATION

Bankers :

· Yes Bank Limited, 9^th floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai-400018, Maharashtra, India

· Standard Chartered Bank

· Barclay’s Bank

· HDFC Bank

· India Bulls

· Kotak Mahindra Bank

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Overdraft with Vijaya Bank*	4.199	5.000
Machinery Loan from SIDBI**	1.136	1.578
Machinery Loan from Vijaya Bank**	0.000	0.018
Total	5.335	6.596
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Retail SME Loans from:
- Standard Chartered Bank	0.141	0.862
- Barclay’s Bank	1.453	2.337
- HDFC Bank	2.123	0.511
- India Bulls	0.294	1.071
- Kotak Mahindra Bank	1.916	0.000
Total	5.927	4.781

*Overdraft is secured by stocks and book debts

**Machinery loans are secured by hypothecation of machineries

Banking Relations :	--
Auditors :
Name :	R Murali and Associates Chartered Accountant
Address :	# 6, Alcazar, 11/1, Infantry Road, Cross, Bangalore-560001, Karnataka, India

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
10000	Equity Shares	Rs.10/- each	Rs. 0.100 Million

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		0.100	0.100	0.100
2] Share Application Money		13.376	12.448	9.502
3] Reserves & Surplus		10.975	9.145	4.329
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		24.451	21.693	13.931
LOAN FUNDS
1] Secured Loans		5.335	6.596	5.146
2] Unsecured Loans		5.927	4.781	7.288
TOTAL BORROWING		11.262	11.377	12.434
DEFERRED TAX LIABILITIES		1.603	1.180	1.057
TOTAL		37.316	34.250	27.422
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.080	9.917	8.969
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	20.494	29.800	47.175
	Sundry Debtors	20.232	12.614	25.401
	Cash & Bank Balances	2.967	5.156	4.953
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	4.802	9.917	12.995
Total Current Assets		48.495	57.487	90.524
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	11.041	18.931	25.275
	Other Current Liabilities	10.574	13.498	45.720
	Provisions	0.683	0.770	1.128
Total Current Liabilities		22.298	33.199	72.123
Net Current Assets		26.197	24.288	18.401
MISCELLANEOUS EXPENSES		0.039	0.045	0.052
TOTAL		37.316	34.250	27.422

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Gross Total Turnover	73.090	95.101	97.771
		Other Income	0.816	0.102
		TOTAL	73.906	95.203	97.771
Less	EXPENSES
		Office Expenses
		Administrative Expenses	71.320	89.669	92.102
		Advertising Expenses
		TOTAL	71.320	89.669	92.102
	PROFIT BEFORE TAX		2.586	5.534	5.669
Less	TAX		0.756	0.718	2.068
	PROFIT AFTER TAX		1.830	4.816	3.601
	BALANCE CARRIED TO THE B/S		1.830	4.816	3.601
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	22.712	56.909	56.518
	TOTAL EARNINGS		22.712	56.909	56.518
	IMPORTS
		Raw Materials	24.769	21.929	36.215
		Capital Goods	0.000	0.286	2.068
	TOTAL IMPORTS		24.769	22.215	38.283
	Earnings Per Share (Rs.)		0.18	0.48	3.60

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.48	5.06	3.68
Net Profit Margin (PBT/Sales)	(%)	3.54	5.82	NA
Return on Total Assets (PBT/Total Assets}	(%)	4.34	8.21	5.70
Return on Investment (ROI) (PBT/Networth)		0.11	0.26	0.41
Debt Equity Ratio (Total Liability/Networth)		1.44	2.11	6.15
Current Ratio (Current Asset/Current Liability)		2.17	1.73	1.25

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE OF THE COMPANY

During the current year the company has not performed well. Global economic recession has affected to the performance of the company and during the year Company has achieved a profit of Rs. 2.586 millions compared to Rs. 5.534 millions during the previous financial year. The company has taken all necessary steps to improve the business in the coming year.

FORM 8

Corporate identity number of the company	U32109KA2005PTC037105
Name of the company	PRO INNOVATIVE TECHNOLOGIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No. 99/49, 2^nd Main Industrial Town, Rajainagar, Bangalore-560044, Karnataka, India
This form is for	Creation of charge
Type of charge	Book debts Others
Particular of charge holder	Yes Bank Limited, 9^th floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai-400018, Maharashtra, India
Nature of instrument creating charge	Deed of Hypothecation dated 28.07.2010.
Date of instrument Creating the charge	28.07.2010
Amount secured by the charge	Rs. 10.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest As communicated by the bank from time to time Terms of repayment Unless Demanded Earlier, at the end of the tenor of the credit facility sanctioned to the company. Margin As communicated by the bank from time to time Extent and operation of the charge Exclusive Charge on Current Assets, Stock, Book Debts, Bill Receivables (Present and Future)
Short particulars of the property charged (Including location of the property)	Current Assets, Stock, Book Debts, Bill Receivables (Present and Future)

FIXED ASSETS

· Plant and Machinery

· Furniture and Fixtures

· Computers

· Office Equipments

· 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. 49.71
UK Pound	1	Rs. 78.08
Euro	1	Rs. 68.05

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		44

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.