MIRA INFORM REPORT

Report Date :

09.07.2012

IDENTIFICATION DETAILS

Name :	MIVEN MACHINE TOOLS LIMITED
Registered Office :	Tarihal Industrial Area, Tarihal, Hubli – 580026, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.07.1985
Com. Reg. No.:	08-007036
Capital Investment / Paid-up Capital :	Rs. 30.035 millions
CIN No.: [Company Identification No.]	L29220KA1985PLC007036
TAN No.: [Tax Deduction & Collection Account No.]	BLRM06213E
PAN No.: [Permanent Account No.]	AABTM0082B
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer of C N C Machine Tools.
No. of Employees :	160 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca [14]

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 :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears huge accumulated losses recorded by the company. Profitability of the company is under severe pressure. Trade relations are fair. Payments are reported to be slow. The company can be considered for business dealings on 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 – 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 :	Mr. Chanabasapta Genji
Designation :	Senior Manger Sales Marketing
Contact No.:	91-836-2212221
Date :	06.07.2012

LOCATIONS

Registered Office / Factory:	Tarihal Industrial Area, Tarihal, Hubli – 580026, Karnataka, India
Tel. No.:	91-836-2212221 – 24
Fax No.:	91-836-2310411
E-Mail :	Mivensales@gmail.com mmsales@dataone.in
Website :	http://www.Mivenmachinetools.net
Location :	Owned

DIRECTORS

As on 31.03.2011

Name :

Mr. Sanjay B Baljekar

Designation :

Director

Address:

Soumeya 8, Anand Niketan, society, 22/1-A, Karve Nagar, Pune – 411052, Maharashtra, India

Date of Birth:

19.09.1954

Date of Appointment:

24.10.2008

DIN No.:

01999874

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	U34360PN1982PTC028836	PRECOMP TOOLS PRIVATE LIMITED	Director	04/12/1982	04/12/1982	-	Active	NO
2	U34300PN1993PTC075125	PRECOMP GEARS PRIVATE LIMITED	Director	12/11/1993	12/11/1993	-	Active	NO
3	U29299PN1998PTC014540	EMUGE INDIA PRIVATE LIMITED	Director	01/12/1998	01/12/1998	-	Active	NO
4	L29220KA1985PLC007036	MIVEN MACHINE TOOLS LIMITED	Director	25/09/2009	24/10/2008	-	Active	NO
5	U28112PN2012PTC142153	Metform Vacutreat India Private Limited	Director	03/02/2012	03/02/2012	-	Active	NO

Name :

Mr. Vikram R Sirur

Designation :

Chairman and Whole time Director

Address:

Opposite corporation Lamington Road, Hubli Dharwad - 580021, Karnataka, India

Date of Birth:

16.12.1946

Date of Appointment:

15.10.1998

DIN No.:

00312980

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	U29150KA1986PTC007869	MIVEN MAYFRAN CONVEYORS PRIVATE LIMITED	Managing director	21/10/1986	21/10/1986	-	Active	NO
2	U15493KA1991PTC012376	RURIS TECNAL EXTRACTION SYSTEMS PRIVATE LIMITED	Managing director	03/10/1991	03/10/1991	-	Active	NO
3	U31200PN1992PTC016377	COTMAC ELECTRONICS PRIVATE LIMITED	Director	09/01/1992	09/01/1992	-	Active	NO
4	U01113KA1976PTC003027	MIPRO INTERNATIONAL PRIVATE LIMITED	Director	19/02/1998	19/02/1998	-	Active	NO
5	L29220KA1985PLC007036	MIVEN MACHINE TOOLS LIMITED	Whole-time director	01/07/2010	15/10/1998	-	Active	NO
6	U72200PN1999PTC013498	COTMAC INFOTECH PRIVATE LIMITED	Director	08/05/1999	08/05/1999	-	Active	NO
7	U17111KA1981PTC004382	N A SIRUR(HUBLI)PRIVATE LIMITED	Director	10/12/2000	10/12/2000	-	Active	NO
8	U31904MH1986PTC039713	FINEARC SYSTEMS PRIVATE LIMITED	Director	01/04/2002	01/04/2002	-	Active	NO
9	U29219KA2011PTC057337	PRATT AUTOMATION PRIVATE LIMITED	Director	02/03/2011	02/03/2011	-	Active	NO

Name :

Mr. Mukund Shankarrao Muley

Designation :

Director

Address:

B – 101, Sylvan Heights, Sanewadi Aundh, Pune – 411007, Maharashtra, India

Date of Birth:

31.03.1966

Qualifications :

B.E. (Elect).

Date of Appointment:

30.03.2002

DIN No.:

00818938

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	U31200PN1992PTC016377	COTMAC ELECTRONICS PRIVATE LIMITED	Managing director	01/04/2006	15/01/1992	-	Active	NO
2	U31909MH1997PTC107161	COTMAC ELECTRONICS (SURAT) PRIVATE LIMITED	Director	09/04/1997	09/04/1997	-	Active	NO
3	U31200PN2000PTC014637	COTMAC SYNERGY AUTOMATION PRIVATE LIMITED	Director	23/03/2000	23/03/2000	-	Under Process of Striking off	NO
4	U31909PN2000PTC014803	SOFTECH CONTROLS PRIVATE LIMITED	Director	25/04/2000	25/04/2000	-	Active	NO
5	U32204PN2000PTC015258	COTMAC TELECOM PRIVATE LIMITED	Director	25/08/2000	25/08/2000	-	Under Process of Striking off	NO
6	U29194PN2000PTC015657	COTMAC GASTEC PRIVATE LIMITED	Director	21/12/2000	21/12/2000	-	Active	NO
7	U72200PN1999PTC013498	COTMAC INFOTECH PRIVATE LIMITED	Director	01/06/2001	01/06/2001	-	Active	NO
8	L29220KA1985PLC007036	MIVEN MACHINE TOOLS LIMITED	Director	30/03/2002	30/03/2002	-	Active	NO
9	U72200PN2001PTC016204	PRO-EX SOLUTIONS PRIVATE LIMITED	Nominee director	20/03/2006	20/03/2006	20/09/2011	Active	NO
10	U74999PN2012PTC142497	COTMAC DTM EXIM PRIVATE LIMITED	Director	12/03/2012	12/03/2012	-	Active	NO
11	U27320PN2012PTC142854	COTMAC PRECISION CASTINGS PRIVATE LIMITED	Director	02/04/2012	02/04/2012	-	Active	NO
12	U31908PN2012PTC143001	SERRA POWER SOLUTIONS INDIA PRIVATE LIMITED	Director	18/04/2012	18/04/2012	-	Active	NO

Name :

Mr. Shyam Sirur

Designation :

Director

Address:

A 8/2, HDFC Colony, Chinchawad, Pune – 41119, Maharashtra, India

Date of Birth:

09.08.1948

Date of Appointment:

30.03.2002

DIN No.:

00134226

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	U01132PN1955PTC131061	COTMAC PRIVATE LIMITED	Whole-time director	02/04/2007	01/12/1972	-	Active	NO
2	U01113KA1976PTC003027	MIPRO INTERNATIONAL PRIVATE LIMITED	Director	01/11/1976	01/11/1976	-	Active	NO
3	U31102PN1989PTC016572	SUNNY WELD PRIVATE LIMITED	Director	15/09/1989	15/09/1989	07/02/2011	Active	NO
4	U31200PN1992PTC016377	COTMAC ELECTRONICS PRIVATE LIMITED	Whole-time director	01/04/2006	15/03/1993	-	Active	NO
5	U72200MH1995PTC087911	MOMIC TECHNOLOGIES PRIVATE LIMITED	Director	01/05/1995	01/05/1995	-	Active	NO
6	U31909MH1997PTC107161	COTMAC ELECTRONICS (SURAT) PRIVATE LIMITED	Director	09/04/1997	09/04/1997	-	Active	NO
7	U17111KA1981PTC004382	N A SIRUR(HUBLI)PRIVATE LIMITED	Director	13/04/1998	13/04/1998	-	Active	NO
8	U51101KA1919ULL001442	SIBELLA PRIVATE LIMITED	Director	13/04/1998	13/04/1998	-	Active	NO
9	U72200PN1999PTC013498	COTMAC INFOTECH PRIVATE LIMITED	Director	01/04/1999	01/04/1999	-	Active	NO
10	U31200PN2000PTC014637	COTMAC SYNERGY AUTOMATION PRIVATE LIMITED	Director	23/03/2000	23/03/2000	-	Under Process of Striking off	NO
11	U31909PN2000PTC014803	SOFTECH CONTROLS PRIVATE LIMITED	Director	25/04/2000	25/04/2000	-	Active	NO
12	U32204PN2000PTC015258	COTMAC TELECOM PRIVATE LIMITED	Director	25/08/2000	25/08/2000	-	Under Process of Striking off	NO
13	U29194PN2000PTC015657	COTMAC GASTEC PRIVATE LIMITED	Director	21/12/2000	21/12/2000	-	Active	NO
14	L29220KA1985PLC007036	MIVEN MACHINE TOOLS LIMITED	Director	30/03/2002	30/03/2002	-	Active	NO
15	U72200PN2001PTC016204	PRO-EX SOLUTIONS PRIVATE LIMITED	Nominee director	20/03/2006	20/03/2006	20/09/2011	Active	NO
16	U72200PN2007PTC130625	SIBELLA TECHNOLOGIES PRIVATE LIMITED	Director	29/08/2007	29/08/2007	-	Active	NO
17	U51909PN2010PTC136352	COTMAC INDUSTRIAL TRADING PRIVATE LIMITED	Director	19/05/2010	19/05/2010	-	Active	NO
18	U51101KA1960PTC001408	MOGORA COSMIC PRIVATE LIMITED	Director	07/02/2011	07/02/2011	-	Active	NO
19	U74999PN2012PTC142497	COTMAC DTM EXIM PRIVATE LIMITED	Director	12/03/2012	12/03/2012	-	Active	NO
20	U27320PN2012PTC142854	COTMAC PRECISION CASTINGS PRIVATE LIMITED	Director	02/04/2012	02/04/2012	-	Active	NO

Name :

Mr. Ambat Rajagopal Menon

Designation :

Executive Director

Address:

Shakuntala Plat No:T1, Mahalaxmi Apartments, Shanti Colony Vishweshwar AR Hubli Dharwad - 580032, Karnataka, India

Date of birth / Age :

30.01.1950

Qualifications :

B.Sc. (Engineering)

Date of Appointment:

27.06.2002

DIN No.:

01273473

KEY EXECUTIVES

Name :	Vishnu. Narayanappa Hasalkar
Designation :	Company Secretary
Address:	House No.253, Renuka Nagar, Gokul Road, Hubli, Dharwad - 580030, Karnataka, India
Date of birth / Age :	11.04.1946
Date of Appointment:	28.06.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2012

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	2,588,150	86.17
Sub Total	2,588,150	86.17
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	2,588,150	86.17
(1) Institutions	--	--
(2) Non-Institutions
Bodies Corporate	53,100	1.77
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	362,250	12.06
Sub Total	415,350	13.83
Total Public shareholding (B)	415,350	13.83
Total (A)+(B)	3,003,500	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	--	--
(1) Promoter and Promoter Group	--	--
(2) Public	--	--
Sub Total	--	--
Total (A)+(B)+(C)	3,003,50	100.00

As on: 28.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	87.94
Directors or relatives of Directors	0.20
Other top fifty shareholders	2.28
Other	9.58
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of C N C Machine Tools.

Products :

• Horizontal Numerically Controlled Lathes

CNC Lathe Machines

• Chucker Series CNC Lathe Machines
• Universal Series CNC Lathe Machines
• GL 160/200 CNC Lathe Machines
• Venus – 250 CNC Lathe Machines
• Ultra Series CNC Lathe Machines
• WSU 40 CNC Lathe Machines

ITC Code No:	Description of Product
845811	Horizontal Numarically Controlled Lathes

Terms :

Selling :

Depends

Purchasing :

Depends

GENERAL INFORMATION

Customers :

Manufacturer

No. of Employees :

160 (Approximately)

Bankers :

The Shamrao Vithal Co-operative Bank Limited, Ground Floor, Satellite Spaceage Complex, Koppikar Road, Hubli - 580020, Karnataka, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	7.580	7.523
Working capital loans banks secured	37.790	33.990
Total	45.370	41.513
UNSECURED LOAN	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Loans directors unsecured	2.000	0.000
Other debt unsecured	12.203	9.387
Total	14.203	9.387

Banking Relations :	--
Auditors :
Name :	B K Ramadhyani and Company Chartered Accountant
Address :	4-B, 4^th Floor, Chitrapur Bhavan, No.68, 8^th Main, 15^th Cross, Malleshwaram, Bangalore, Karnataka, India
PAN No:	AABFB1153O
Enterprises over which key management personnel and their relatives are able to exercise significant :	Miven Mayfran Conveyors Private Limited CIN No: U29150KA1986PTC007869 Cotmac Private Limited CIN : U01132PN1955PTC131061 Cotmac Electronics Private Limited CIN : U31909MH1997PTC107161 Cotmac Electronics (Surat) Private Limited CIN : U00360KA1992PTC012701 Cotmac Infotech Private Limited CIN : U72200PN1999PTC013498 Cotmac Telecom Private Limited CIN : U32204PN2000PTC015258 Cotmac Electronics (Bangalore) Private Limited Cotmac Gastech Private Limited CIN : U29194PN2000PTC015657 Sirsi Weldaids Private Limited Softech Private Limited CIN : U31909PN2000PTC014803 Ruris Tecnal Extraction Systems Private Limited CIN : U15493KA1991PTC012376 Mipro International Private Limited CIN : U01113KA1976PTC003027 Finearc Systems Private Limited
Holding Company:	· N A Sirur (Hubli) Private Limited · CIN : U17111KA1981PTC004382

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3003500	Equity Shares	Rs.10/- each	Rs.30.035 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		30.035	30.035	30.035
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1.528	1.528	1.528
4] (Accumulated Losses)		(64.166)	(56.816)	(47.294)
NETWORTH		(32.603)	(25.253)	(15.731)
LOAN FUNDS
1] Secured Loans		45.370	41.513	37.506
2] Unsecured Loans		14.203	9.387	6.000
TOTAL BORROWING		59.573	50.900	43.506
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		26.970	25.647	27.775
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15.463	16.497	18.148
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.050	0.050	0.050
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	40.717	25.605	36.619
	Sundry Debtors	27.952	7.895	4.706
	Cash & Bank Balances	2.313	1.447	1.381
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	4.010	3.634	6.120
Total Current Assets		74.992	38.581	48.826
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	33.927	18.047	26.311
	Other Current Liabilities	27.446	9.889	10.753
	Provisions	2.162	1.545	2.185
Total Current Liabilities		63.535	29.481	39.249
Net Current Assets		11.457	9.100	9.577
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		26.970	25.647	27.775

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	55.118	47.955	51.741
		Other Income	2.042	0.587	0.848
		Other Services Receipts	0.000	0.000	1.135
		TOTAL (A)	57.160	48.542	53.724
Less	EXPENSES
		Consumption materials changes inventories	32.363	24.986
		Material Consumed	8.694	7.491
		Employee related expenses	6.744	7.432
		Administrative Expenses	7.921	9.551
		TOTAL (B)	55.722	49.460	53.835
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.438	(0.918)	(0.111)
Less	FINANCIAL EXPENSES (D)		7.302	6.953	7.055
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(5.864)	(7.871)	(7.166)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.486	1.651	1.897
	PROFIT BEFORE TAX (E-F) (G)		(7.350)	(9.522)	(9.063)
Less	TAX (I)		0.000	0.000	0.320
	PROFIT AFTER TAX (G-I) (J)		(7.350)	(9.522)	(9.383)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(56.816)	(47.294)	(38.251)
	BALANCE CARRIED TO THE B/S		(64.166)	(56.816)	(47.294)
	IMPORTS
		Components and spare parts	1.949	(0.233)	(1.993)
	TOTAL IMPORTS		1.949	(0.233)	(1.993)
	Earnings Per Share (Rs.)		(2.45)	(3.17)	(3.12)

Particulars	31.03.2012
Sales Turnover (Approximately)	110.000

Expected Sales (202-2013): Rs.180.000 million

The above information has been parted by Mr. Chanabasapta Genji.

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011	31.03.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Sales Turnover	12.580	11.330	19.530	41.210
Total Expenditure	14.620	13.010	19.110	37.660
PBIDT (Excl OI)	(2.040)	(1.680)	0.420	3.550
Other Income	0.020	0.060	0.050	0.530
Operating Profit	(2.020)	(1.620)	0.470	4.080
Interest	1.700	1.750	2.090	2.810
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	(3.720)	(3.370)	(1.620)	1.270
Depreciation	0.310	0.310	0.310	0.320
Profit Before Tax	(4.030)	(3.680)	(1.930)	0.950
Tax	0.000	0.000	0.000	0.000
Profit After Tax	(4.030)	(3.680)	(1.930)	0.950
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	(4.030)	(3.680)	(1.930)	0.950

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	[12.85]	[19.62]	[17.46]
Net Profit Margin (PBT/Sales)	(%)	[13.33]	[20.59]	[17.52]
Return on Total Assets (PBT/Total Assets}	(%)	[8.13]	[17.16]	[13.53]
Return on Investment (ROI) (PBT/Networth)		[0.23]	[0.38]	[0.58]
Debt Equity Ratio (Total Liability/Networth)		[3.78]	[3.20]	[5.26]
Current Ratio (Current Asset/Current Liability)		1.18	1.31	1.24

LOCAL AGENCY FURTHER INFORMATION

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	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
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	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	No
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	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	No

OPERATIONS:

During the year, the company achieved a turnover of Rs.57.160 millions excluding Excise Duty as against previous year's turnover of Rs.48.543 millions excluding Excise Duty and suffered a loss of Rs.7.350 millions as against previous year's net loss of Rs. 9.522 millions. The company manufactured and dispatched 9 machines during the year as against 13 machines during the previous year.

The company's order book position at the beginning of the year consisted of 3 machines for a value of Rs.23.797 millions. During the year, the company received orders for 9 machines for a value of Rs.40.938 millions. Though there is increase in in-house manufacturing activity during the year, the material consumption has increased 71.76% to as compared to that of previous year of 63.09%

Bankers Charges Report as per Registry

Corporate identity number of the company	L29220KA1985PLC007036
Name of the company	MIVEN MACHINE TOOLS LIMITED
Address of the registered office or of the principal place of business in India of the company	Tarihal Industrial Area, Tarihal, Hubli – 580026, Karnataka, India mmtsales@dataone.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90192596
Type of charge	· Immovable property · Book debts · Movable property (not being pledge)
Particular of charge holder	The Shamrao Vithal Co-operative Bank Limited, Ground Floor, Satellite Spaceage Complex, Koppikar Road, Hubli - 580020, Karnataka, India paikr@svcbank.com
Nature of instrument creating charge	1. Recording Letter Evidencing Deposit of Title Deeds dated 27/08/2011. 2. Composite Hypothecation Agreement dated 27/08/2011. 3.Loan Agreement dated 27/08/2011 4.Sanction Letter dated22/08/2011
Date of instrument Creating the charge	27.08.2011
Amount secured by the charge	Rs.73.300 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 13% p.a (Rate of Interest is subject to change as and when RBI revises the Bank Rate/CRR/SLR/Repo Rate/ Reverse Repo Rate/ on account of increase in cost of funds to the Bank) Terms of Repayment 1. New Term Loan of Rs. 12.500 millions to be repaid in 60 months of EMI Rs. 0.285 million after a moratorium of 12 months (Total Tenure 72 months) 2. New Term Loan of Rs.5.800 millions to be repaid in 60 months of EMI Rs.0.132 millions after a moratorium of 12 months (Total Tenure 72 months) All other facilities' terms of repayment will continue as per the charge dt.29/05/2009 Margin New Term Loan of Rs.12.500 Millions -- 15% New Term Loan of Rs. 5.800 Millions -- 15% All other facilities' margin will continue as per the charge dt. 29/05/2009 Extent and Operation of the charge The charge operates as a security by way of Equitable Mortgage on Land and Building as per Schedule I of Recording Letter Evidencing Deposit of Title Deed dt. 27/08/2011 and by way of Hypothecation on Stock, Book Debts and Plant and Machineries hypothecated assets as per the Schedule II of the Composite hypothecation agreement dt. 27/08/2011.
Short particulars of the property charged	Land and Buildings: Plot No. Nil, Tarihal Industrial Area, Survey No. 92/1 and 92/2 (Total of 21 Acres and 2169 Square Meters) Hypothecated Stocks: Whole of the present and future stocks of raw materials, goods in process of manufacture and all finished and manufactured goods and articles Hypothecated book debts: All of the present and future book debts, outstanding monies, receivables, claims, bills, rights to or in movable properties which are now due or become due in future. Hypothecated Plant and Machinery: All the Plant and Machinery other assets etc installed at the factory.
Date of latest modification prior to the present modification	22.07.2011
Particulars of the present modification	Total limits enhanced from Rs.55.000 millions to Rs.73.300 millions as per details provided in Schedule III of Recording Letter Evidencing Deposit of Title Deeds dt. 27/08/2011

Contingent Liabilities:

a) Counter guarantees given to the bankers for guarantees given by them on behalf of the company Rs.15.473 millions (Rs. 2.129 millions).

b) Claim by former employees/casual workers pending before Courts - Estimated Rs.0.084 million (Rs.0.084 millions).

c) The Company has considered an amount of Rs.1.457 millions (Rs.1.457 millions) due from a customer as good of recovery in respect of which the customer has made claim of Rs.7.349 millions for which no provision is made since the matter is pending in court. The company is confident of recovering the dues and that the claim of the customer will not stand.

d) . Liability in respect of pending fringe benefit tax, sales tax and entry tax assessments - not ascertainable

e) The companys premise is located at Tarihal Industrial Area, Tarihal, Hubli, which was earlier covered under the jurisdiction of Rainal Mandal Panchayat. Subsequently, Rainal Mandal Panchayat was merged with Hubli Dharwad Municipal Corporation (H D M C), Hubli. Since KIADB had not fully developed this Industrial Estate, it has not handed over the same to H D M C. As such, they were collecting annual maintenance charges. The company has been regular in making the payment of annual maintenance charges to KIADB till 2007-08. Subsequent to the balance sheet date the KIADB has also made claims for maintenance charges and interest totally amounting to Rs. 0.294 million including for prior years. The company is disputing the claim and is in the process of filing a petition for waiver, further H D M C has claimed Rs. 19.153 millions (Rs.16.988 millions) towards tax including penalty of Rs. 11.151 millions (Rs. 8.905 millions) for the period from 1995 to 2008. However, for the year under report property tax of Rs. 0.087 million (Rs. 0.087) has been paid to H D M C as per the terms of H D M C for the relevant year. The matter relating to the payment of property tax for the years prior to 2008-09 is disputed through the Greater Hubli Dharwad Industries Association and the matter is pending before the Government of Karnataka. The company is confident that the claim relating to prior years will be withdrawn and will not be payable. Consequently no provision has been made for the said demand. However and as a matter of abundant precaution, tax amount based on past demands of the Mandal Panchayat which has been provided in prior years to an extent of Rs.0.318 million (Rs.0.318 million) though not paid is retained in the books of account.

Outflow of resources on the above can be determined at the time of settlement of disputes / claim.

FIXED ASSETS:

· Free Hold Land

· Factory Building

· Plant and Machinery

· Furniture and Fittings

· Office Equipments

· Factory Equipments

· Electrical Installations

· Jigs and Fixtures

· Computers and Printer

· 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.55.42
UK Pound	1	Rs.86.04
Euro	1	Rs.68.61

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	DPK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	3
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	1
--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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		14

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.