MIRA INFORM REPORT

Report Date :

22.09.2011

IDENTIFICATION DETAILS

Name :	PRECISE SMALL MOTORS PRIVATE LIMITED
Registered Office :	B-243, 2^nd Stage, 6^th Main, Peenya Industrial Estate, Bangalore- 560058, Karnataka.
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	04.01.1994
Com. Reg. No.:	08-015100
Capital Investment / Paid-up Capital :	0.500 Millions
CIN No.: [Company Identification No.]	U31909KA1994PTC015100
TAN No.: [Tax Deduction & Collection Account No.]	BLRP01545F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Induction Motors for domestic appliances
No. of Employees :	30(Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca(15)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Very Small Company
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a very small company in its field. Its scale of activities are limited. Profitability of the company is under pressure. However, Trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a secured 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
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. Viswanathan
Designation :	Key Executive
Contact No.:	91-9343729371
Date :	19.09.2011

LOCATIONS

Registered/Factory Office :	B-243, 2^nd Stage, 6^th Main, Peenya Industrial Estate, Bangalore- 560058, Karnataka, India.
Tel. No.:	91-80-28361800
Mobile No.:	91-9341210259 (Mr. M.B. Baliga)
Fax No.:	91-80-28362404
E-Mail :	baligabn@gmail.com
Website :	www.precisesmallmotors.tradeindia.com
Location :	Owned

DIRECTORS

AS ON 30.09.2010

Name :

Mr. Narasimha Bantwal Baliga

Designation :

Managing Director

Address :

No.65, Sundar Nagar , Gokul Extention, Bangalore- 560064, Karnataka, India

Date of Birth/Age :

11.11.1962

Date of Appointment :

15.05.1997

DIN No.:

01867463

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
U31909KA1994PTC015100	PRECISE SMALL MOTORS PRIVATE LIMITED	Managing director	04-01-94	04-01-94	-	Active	NO

Name :

Mr. Aravinda Bantwal Baliga

Designation :

Director

Address :

No.65, 2^nd Cross Sundar Nagar, Bangalore – 560064, Karnataka, India

Date of Birth/Age :

11.10.1964

Date of Appointment :

18.07.2009

DIN No.:

02648414

Other Directorship:

CIN	Name of the Company	Current designation of the director	Name of the Company	Current designation of the director	Name of the Company	Current designation of the director	Defaulting status
U31909KA1994PTC015100	PRECISE SMALL MOTORS PRIVATE LIMITED	Director	18-07-09	18-07-09	-	Active	NO

Name :

Mr. Heera Bantwal Baliga

Designation :

Director

Address :

Flat No. 301, Sharanya Apts, No.17, 7^th Main Road BET 8^th and 7^th C, Malleswaram, Bangalore- 560063, Karnataka, India

Date of Birth/Age :

02.01.1947

Date of Appointment :

04.01.1994

DIN No.:

01308567

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
U31909KA1994PTC015100	PRECISE SMALL MOTORS PRIVATE LIMITED	Director	04-01-94	04-01-94	31-01-10	Active	NO

KEY EXECUTIVES

Name :	Mr. Viswanathan
Designation :	Key Executive
Address :
Mobile No.:	91-9343729371 (Mr. Viswanathan)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Heera Baliga B	12500
B Narasimha Baliga	17000
B Aravind Baliga	11250
B Govinda Baliga	9250
Total	50000

Equity Share Break up

AS ON 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Induction Motors for Domestic appliances
Products :	· Universal Series for Switchgear · PDMC Motors for Dish Antenna Tracking · FHP Induction Motors for domestic appliances
Exports :
Products :	· Induction Motors
Countries :	· Australia · USA
Imports :
Products :	· Raw Material
Countries :	· China
Terms :
Selling :	L/C, Cash, Credit
Purchasing :	L/C, Cash, Credit

GENERAL INFORMATION

Customers :

· Retailers

· End Users

· OEM’s

No. of Employees :

30(Approximately)

Bankers :

· State Bank of India, SME City Credit Centre, Seshadripuram, Badaganadu Sangha Bldg,Kumara Park, Bangalore- 560020, Karnataka, India

· ICICI Bank

Facilities :

Secured Loan	Rs. In Millions 31.03.2009	Rs. In Millions 31.03.2008
Cash Credit From SBI	0.637	0.544
SBI Term Loan	0.143	0.353
Car Loan From ICICI	0.171	0.319
Total	0.952	1.216
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Unsecured Loans	1.206	1.033
Total	1.206	1.033

Banking Relations :	----
Auditors :
Name :	Mr. P B Chandra Mohan Chartered Accountant
Address :	45/1, 3^rd Cross, 2^nd Main Vivekananda Colony, Banashankari, Bangalore – 560078, Karantaka, India
Mobile No.:	91-9242190250/91-632229025
Email Id:	chandru36941@gmail.com
PAN No.:	91-AHKPC3327K
Sister Concerns :	· Unipro Industries · Indo Electricals Company

CAPITAL STRUCTURE

AS ON 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs.10/- each	Rs.1.500 Millions

Issued, Subscribed & Paid-up Capital :

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

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2010	31.03.2009	31.03.2008
Sales Turnover (Approximately)	2.283	2.469	3.417

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		0.500	0.500	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.300	0.351	0.481
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		0.800	0.851	0.981
LOAN FUNDS
1] Secured Loans		0.274	0.952	1.216
2] Unsecured Loans		1.873	1.206	1.033
TOTAL BORROWING		2.147	2.158	2.249
DEFERRED TAX LIABILITIES		0.035	0.054	0.077
TOTAL		2.982	3.063	3.307
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.364	1.855	2.225
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	3.151	0.296	0.327
	Sundry Debtors	(0.896)	1.204	1.162
	Cash & Bank Balances	0.281	0.044	0.324
	Other Current Assets	0.170	0.000	0.000
	Loans & Advances	0.000	0.141	0.111
Total Current Assets		2.706	1.685	1.924
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.242	0.359	0.714
	Other Current Liabilities	(0.154)	0.100	0.110
	Provisions	0.000	0.018	0.018
Total Current Liabilities		1.088	0.477	0.842
Net Current Assets		1.618	1.208	1.082
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2.982	3.063	3.307

PROFIT AND LOSS ACCOUNT

PARTICULARS	31.03.2010	31.03.2009	31.03.2008
Sales	2.283	2.469	3.417
Profit Before Tax	(0.070)	(0.135)	(0.137)
Profit After Tax	(0.051)	(0.129)	(0.124)
Earning Per Share	(1.02)	(2.59)	(2.48)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(2.23)	(2.06)	(3.62)
Net Profit Margin (PBT/Sales)	(%)	(3.06)	(5.46)	(4.00)
Return on Total Assets (PBT/Total Assets}	(%)	(1.71)	(3.81)	(3.30)
Return on Investment (ROI) (PBT/Networth)		(0.08)	(0.15)	(0.14)
Debt Equity Ratio (Total Liability/Networth)		3.94	3.09	3.15
Current Ratio (Current Asset/Current Liability)		2.48	1.39	2.28

LOCAL AGENCY FURTHER INFORMATION

FORM 8

Corporate identity number of the company	U31909KA1994PTC015100
Name of the company	PRECISE SMALL MOTORS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	B-243, II Stage, Peenya Industrial Estate, Bangalore – 560058, Karnataka, India Email Id:- baligabn@vsnl.com
This form is for	Modification of charge
Charge Identification number	80059963
Type of charge	Immovable property Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	State Bank of India, SME City Credit Centre, Seshadripuram, Badaganadu Sangha Bldg Kumara Park, Bangalore – 560020, Karnataka, India Email Id:- surevict@gmail.com
Nature of instrument creating charge	Supplemental Agreement of Loan Cum Hypothecation Form SME -4 and Memorandum for Recording Extension of Mortgage by Deposit of Title Deeds SME -7 (Both Pertain to the same charge)
Date of instrument Creating the charge	24.06.2010
Amount secured by the charge	Rs. 5.820 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 1. WCL-At 2.00% above SBAR, Effective rate 13.75% p.a. at montly rests. 2. TL- At 2.50% above SBAR, Effective rate 14.25% p.a. at monthly rests. 3. EPC- 9.25% p.a. monthly rests. Terms of repayment WCL – On Demand. Advance is for a period of 12 Months. Term Loan: In 63 Monthly Installments, First 33 Monthly Installments of Rs. 0.040 Millions and next 30 Monthly Installments Rs. 0.050 Millions with effect from October 2010. Margin FG/PC/Domestic Receivables – 25% Term Loan – 25% Extent and operation of the charge Exclusive First Charge on the assets of the company and to the full extent. Other Cash Credit Rs. 1.000 Million; EPC Rs. 2.000 Million; Term Loan Rs. 2.820 Millions; Total Rs. 5.282 Millions. (Existing Term Loan of Rs. 0.700 Millions Stands Closed).
Short particulars of the property charged (Including location of the property)	1. Hypothecation fo company’s present and future movable fixed assets like stocks, raw materials, semi finished and finished goods, book debts, receivables, outstanding monies, bills, rights. 2. Stores, components, furniture and fittings, other movables, plant and machinery, vehicles and assets to be purchased out of bank finance 3. EM of factory building No. B-243, Industrial Estate, Peenya II Stage, Bangalore.
Particulars of the present modification	The amount secured by the charge stands increased to Rs. 5.820 Millions. The securities described and detailed in col no 15 herein above continue for the limit. All other terms and conditions remain unchanged.

FIXED ASSETS

· Air Conditioner

· Active Honda

· Factory Building

· Plant and Machinery

· Electricity Fittings

· Instruments

· Security Building

· Dg Room

· Office Equipments

· Furniture and Fixtures

· Computer

· Printers

· Vehicles

· Phone

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 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.47.89
UK Pound	1	Rs.75.30
Euro	1	Rs.65.63

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--CREDIT LINES	1~10	--
--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		15

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.