MIRA INFORM REPORT

Report Date :

30.08.2012

IDENTIFICATION DETAILS

Name :	GH INDUCTION INDIA PRIVATE LIMITED
Registered Office :	36 and 37, SIDCO Industrial Estate, Thirumudivakkam, Chennai – 600044, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	31.07.1998
Com. Reg. No.:	18-040909
Capital Investment / Paid-up Capital :	Rs.15.000 Millions
CIN No.: [Company Identification No.]	U29309TN1998PTC040909
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Induction Hardening Machines and Induction Heating Equipment.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 460000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having good track. It has achieved a better increase in its sales turnover and profits during 2011. Financial position of the company appears sound. Trade relations are reported as trustworthy. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BBB (Long Term Bank Loan Facility)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	26.07.2011

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	36 and 37, SIDCO Industrial Estate, Thirumudivakkam, Chennai – 600044, Tamilnadu, India
Tel. No.:	91-44-24780046/24780052/24781043/24781044
Fax No.:	91-44-24780042
E-Mail :	suluchari@gmai.com sales@ghinduction.co.in purchase@ghinduction.co.in service@ghinduction.co.in careers@ghinduction.co.in

DIRECTORS

As on 21.09.2011

Name :

Mr. Jose Vicente Perez Gonzalez

Designation :

Director

Address :

14-B Avda Escorial, LA Eliana, Valencia, Spain - 46183

Date of Birth/Age :

19.03.1946

Date of Appointment :

21.10.1998

DIN No.:

01809434

Name :

Mr. Venkatachari Rengachari

Designation :

Director

Address :

S-25, 35^th Cross, Street, Besant, Chennai – 600090, Tamilnadu, India

Date of Birth/Age :

30.10.1942

Date of Appointment :

02.07.2008

DIN No.:

00597598

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U28999TN1997PTC039136	AKSHAYA INDUCTION SERVICES PRIVATE LIMITED	Director	29/09/1997	29/09/1997	01/04/2009	Active	NO
2	U29309TN1998PTC040909	GH INDUCTION INDIA PRIVATE LIMITED	Director	02/07/2008	31/07/1998	-	Active	NO

Name :

Mr. Rengachari Venkatachari

Designation :

Managing Director

Address :

S-25, 35^th Cross, Street, Besant, Chennai – 600090, Tamilnadu, India

Date of Birth/Age :

24.08.1964

Date of Appointment :

02.07.2008

DIN No.:

00597523

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U28999TN1997PTC039136	AKSHAYA INDUCTION SERVICES PRIVATE LIMITED	Director	29/09/1997	29/09/1997	01/04/2009	Active	NO
2	U29309TN1998PTC040909	GH INDUCTION INDIA PRIVATE LIMITED	Managing director	02/07/2008	31/07/1998	-	Active	NO
3	U29230TN2009PTC070742	AKSHAYA INDUCTION ACCESSORIES PRIVATE LIMITED	Director	16/02/2009	16/02/2009	01/04/2009	Active	NO

Name :

Mr. Ambur Ramakrishnan Ramanathan

Designation :

Director

Address :

16, Gangai Amman Colony, Vadapalani, Chennai – 600026, Tamilnadu, India

Date of Birth/Age :

23.06.1962

Date of Appointment :

02.07.2008

DIN No.:

00597767

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U28999TN1997PTC039136	AKSHAYA INDUCTION SERVICES PRIVATE LIMITED	Managing director	08/12/1997	08/12/1997	01/04/2009	Active	NO
2	U29309TN1998PTC040909	GH INDUCTION INDIA PRIVATE LIMITED	Director	02/07/2008	02/07/2008	-	Active	NO

Name :

Mr. Miguel Carlos Gisbert Mezquida

Designation :

Director

Address :

339 Avda Tamarindos, Valencia, Spain - 46015

Date of Birth/Age :

01.11.1950

Date of Appointment :

21.10.1998

DIN No.:

01835459

Name :

Mr. Vicente Martinez Juan

Designation :

Director

Address :

Carrer Remedio 6, Sagunto, Valencia, Spain - 46500

Date of Birth/Age :

08.06.1966

Date of Appointment :

02.07.2008

DIN No.:

02342054

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 21.09.2011

Names of Shareholders	No. of Shares
Venkatachari Rengachari	375000
Rengachari Venkatachari	150000
J. Venkatesan	75000
A. R. Ramanathan	75000
D Lakshminarayanan	60000
GH Electrotermia S.A	765000
Total	1500000

As on 21.09.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	51.00
Directors or relatives of directors	40.00
Other top fifty shareholders	9.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Induction Hardening Machines and Induction Heating Equipment.

Products :

ITC Code	Product Descriptions
851400	Induction Heating Equipment

PRODUCTION STATUS AS ON (31.03.2011)

Particulars	Unit	Actual Production
Induction Heating Machines for Various Application	Qty	33
Induction Coil, inductor and Incerter	Qty	158
Ball screw assembly, Lovejoy coupling Hydraulic Press and etc. Control Card, Relay Card, Power Supply card IGBT, MCCB, Tripot, Machine Amplifier and etc.	Qty	3575
Transformer	Qty	15

GENERAL INFORMATION

Customers :

• TATAC
• DELPH –TVS
• OMAX
• RICO
• Maruti Suzuki
• Sansera Engineering
• TATA Yutaka
• Honda
• Hero Honda
• Fairfield
• Onassis
• Jata Auto
• Gearock

No. of Employees :

Not Available

Bankers :

State Bank of India, Commercial Branch, 65-A, G.S.T Road, Guindy, Chennai – 600032, Tamilnadu, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
State Bank of India Cash credit (Hypothecations of Stock of Raw Materials, Components, Work in progress and Receivable)	0.000	0.752
Total	0.000	0.752

Banking Relations :	--
Auditors :
Name :	Sundararajan Associates Chartered Accountants
Address :	7, Vyasarpadi Gangadharan Street, Nangambakkam, Chennai – 600034, Tamilnadu, India
Tel. No.:	91-44-28261955/28234855
Fax No.:	91-44-42081955
Income-tax PAN of auditor or auditor's firm :	AABFS4109F
Joint Venture:	GH Electrotermia

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs. 10/- each	Rs.15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Share	Rs.10/- each	Rs.15.000 Millions

Note:

Out of this 1,000,000 Equity Shares of Ra.10 each fully paid up- issued as Bonus Shares

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		15.000	15.000	15.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		100.785	88.573	82.384
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		115.785	103.573	97.384
LOAN FUNDS
1] Secured Loans		0.000	0.752	1.073
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.752	1.073
DEFERRED TAX LIABILITIES		0.000	0.000	0.102
TOTAL		115.785	104.325	98.559
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		58.530	55.570	46.419
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.552	0.481	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	42.480	17.150	30.934
	Sundry Debtors	75.342	50.897	35.453
	Cash & Bank Balances	41.163	52.445	53.616
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	49.480	67.484	50.059
Total Current Assets		208.465	187.976	170.062
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	42.513	23.522	28.974
	Other Current Liabilities	40.030	23.678	21.283
	Provisions	69.219	92.502	67.665
Total Current Liabilities		151.762	139.702	117.922
Net Current Assets		56.703	48.274	52.140
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		115.785	104.325	98.559

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income
		Other Income
		TOTAL	231.296	195.592	201.909
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	166.460	138.279	145.963
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		64.836	57.313	55.946
Less	FINANCIAL EXPENSES		0.269	0.079	0.050
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		64.567	57.234	55.896
Less/ Add	DEPRECIATION/ AMORTISATION		1.394	1.950	2.268
Less	LOSS ON IMPAIRMANT		0.000	1.442	0.000
	PROFIT BEFORE TAX		63.173	53.842	53.628
Less	TAX		21.010	18.404	19.097
	PROFIT AFTER TAX		42.163	35.438	34.531
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		72.990	70.344	62.726
Less	APPROPRIATIONS
		Transfer to General Reserve	4.216	3.544	3.453
		Provision for Dividend inclusive of Tax on Dividend	9.152	29.248	23.399
		Income Tax Earlier Year Provision	0.378	0.000	(0.421)
		Fringe Benefit Tax Earlier Year Provision	0.421	0.000	0.482
	BALANCE CARRIED TO THE B/S		80.986	72.990	70.344
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	10.448	1.895	3.512
	TOTAL EARNINGS		10.448	1.895	3.512
	IMPORTS
		Raw Materials	26.984	26.238	14.065
	TOTAL IMPORTS		26.984	26.238	14.065
	Earnings Per Share (Rs.)		28.11	23.63	23.02

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	18.23	18.12	17.10
Return on Total Assets (PBT/Total Assets}	(%)	30.30	28.64	31.53
Return on Investment (ROI) (PBT/Networth)		0.55	0.52	0.55
Debt Equity Ratio (Total Liability/Networth)		1.31	1.36	1.22
Current Ratio (Current Asset/Current Liability)		1.37	1.35	1.44

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U29309TN1998PTC040909
Name of the company	GH INDUCTION INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	36 and 37, SIDCO Industrial Estate, Thirumudivakkam, Chennai – 600044, Tamilnadu, India Email: suluchari@gmail.com
This form is for	Modification of charge
Charge identification number of the modified	90286400
Type of charge	Immovable property Book Debts Movable Property
Particular of charge holder	State Bank of India, Commercial Branch, 65-A, G.S.T Road, Guindy, Chennai – 600032, Tamilnadu, India Email: mahendiran56@gmail.com
Nature of description of the instrument creating or modifying the charge	1. Letter of Arrangement S M E - 1. 2. Supplemental Agreement of Loan cum Hypothecation S M E - 4. 3. EM Confirmation Letter 4. Sanction Letter
Date of instrument Creating the charge	10.09.2011
Amount secured by the charge	Rs.125.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit: 4.00% above Base Rate present effective rate is 14.00% p.a. with monthly rests. Term Loan : 4.40% above Base Rate present effective rate is 14.40% p.a. with monthly rests. Terms of Repayment Working Capital: Repayable on Demand Term Loan: Repayable in 60 monthly installments commencing after moratorium period of 12 months i.e. from August 2012. First 59 installments of Rs.141.600 Millions each and the Last installment of Rs.145.600 Millions. Margin Raw Materials, Stores & Consumables: 25% Stock in Process : 25% Finished Goods : 25% Receivables : 25% Bank Guarantee : 10% Extent and Operation of the charge As mentioned in the Agreements
Short particulars of the property charged	CC: Hypothecation of present and future Stocks of Raw Materials, Stocks-in-Process, Finished Goods, Consumable Spares, Stores, Receivables / Book Debts and other Current Assets of the Company. TL: Hypothecation of Plant and Machinery purchased / to be purchased out of Term Loan and Equitable Mortgage over the immovable properties of the Company BG: Counter Guarantee by the Company and charge over the Current Assets of the Company
Date of latest modification prior to the present modification	09.08.2004
Particulars of the present modification	By the present modification, the overall limit has been enhanced to Rs.125.000 Millions and secured by the Current Assets, Plant and Machineries and the immovable properties belonging to the Company

FIXED ASSETS

• Computer
• Furniture and Fixtures
• Plant and Machinery
• Vehicle
• Electrical Fittings\Factory Shed
• Land

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.55.66
UK Pound	1	Rs.80.04
Euro	1	Rs.69.91

INFORMATION DETAILS

Report Prepared by :

KVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

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

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.