MIRA INFORM REPORT

Report Date :

09.07.2012

IDENTIFICATION DETAILS

Name :	SERVOMAX INDIA LIMITED (w.e.f. 06.01.2005)
Formerly Known As :	SERVOMAX PRECIOUS ELECTRONICS LIMITED (w.e.f. 28.12.2004) SERVO MAX PRECIOUS ELECTRONICS PRIVATE LIMITED
Registered Office :	Plot No. 16, 17 and 18, IDA, Phase II, Cherlapally, Hyderabad – 500051, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.09.2000
Com. Reg. No.:	01-035239
Capital Investment / Paid-up Capital :	Rs.227.400 Millions
CIN No.: [Company Identification No.]	u29309ap2000plc035239
TAN No.: [Tax Deduction & Collection Account No.]	HYDS04559C
PAN No.: [Permanent Account No.]	AAFCS0247R
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	manufacturer of Transformers, Voltage stabilizers, Energy Saving Equipment and Isolation Transformers
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (33)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 2120000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with light caution.

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 DECLINED BY

Management Non Co-operative.

Tel No.: 91-40-44436635

LOCATIONS

Registered Office/ Factory 1 :	Plot No. 16, 17 and 18, IDA, Phase II, Cherlapally, Hyderabad – 500051, Andhra Pradesh, India
Tel. No.:	91-40-27260620/ 27260621
Fax No.:	91-40-27260580/ 27260581
E-Mail :	admin@servomax.net ceo@servomax.net cco@servomax.net ekambareswararao@gmail.com coo@servomax.net mm@servomax.net overseas@servomax.net esd@servomax.net km_servomax@yahoo.com purchase@servomax.net accounts@servomax.net
Website :	http://www.servomax.net
Factory 2/ Project Division:	Plot No. 38, Electronic Complex, Extn. ECIL Post, Hyderabad – 500062, Andhra Pradesh, India
Tel. No.:	91-40-27123927/ 27123279/ 27143064/ 27143096
Fax No.:	91-40-27125386
Email:	ceo@servomax.net mm@servomax.net overseas@servomax.net
Hyderabad Branch Office/ Centre Marketing Office :	#206, Meridian Plaza, Near Lal Bunglow, Ameerpet, Hyderabad – 500016, Andhra Pradesh, India
Tel No.:	91-40-44436635/ 27143064/ 44436666/ 600
Fax No.:	91-40-44436633/ 27125386/ 44436633
Branches :	Located at: · Bangalore · Kolkata · Chennai · Mumbai · Coimbatore · New Delhi · Pune · Kolhapur · Peenya

DIRECTORS

(AS ON 12.12.2011)

Name :

Mr. Venkateswara Rao Avasarala

Designation :

Managing director

Address :

Plot No. 16, Anupuram Colony, ECIL Post, Hyderabad – 500 062, Andhra Pradesh, India

Date of Birth/Age :

20.05.1962

Date of Appointment :

12.09.2000

DIN No.:

00487242

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	U52334AP1996PLC024290	SNIGDHA MARKETING LIMITED	Director	7/06/1996	7/06/1996	26/03/2010	Active	NO
2	U29309AP2000PLC035239	SERVOMAX INDIA LIMITED	Managing director	1/04/2009	12/09/2000	-	Active	NO
3	U29308AP2008PTC058350	SERVOMAX TRANSFORMERS PRIVATE LIMITED	Director	27/03/2008	27/03/2008	-	Active	NO
4	U74900AP2008PTC061571	FIRST ESCO INDIA PRIVATE LIMITED	Director	24/10/2008	24/10/2008	-	Active	NO
5	U31200AP2008PLC060773	ALTAIR ELECTRONICS LIMITED	Director	22/10/2009	22/10/2009	10/02/2010	Active	NO
6	U45209PN2010PTC138055	SERVOMAX INFRASTRUCTURE PRIVATE LIMITED	Director	22/12/2010	22/12/2010	-	Active	NO
7	U32100AP1997PLC026971	SERWEL ELECTRONICS LIMITED	Director	30/09/2011	25/01/2011	-	Active	NO
8	U31900AP2011PTC074147	SERVOMAX MARKETING PRIVATE LIMITED	Director	28/04/2011	28/04/2011	-	Active	NO
9	U64200DL2011PTC218835	SERVOMAX TELECOM SERVICES PRIVATE LIMITED	Director	9/05/2011	9/05/2011	-	Active	NO

Name :

Mr. Chandra Sekar Reddy Poreddy

Designation :

Whole-time director

Address :

Plot No. 14 Anupuram Colony, ECIL Post, Hyderabad – 500 062, Andhra Pradesh, India

Date of Birth/Age :

01.06.1960

Date of Appointment :

01.02.2006

DIN No.:

00543734

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	U29309AP2000PLC035239	SERVOMAX INDIA LIMITED	Whole-time director	1/10/2009	1/02/2006	-	Active	NO
2	U32100AP1997PLC026971	SERWEL ELECTRONICS LIMITED	Director	30/04/2007	30/04/2007	1/10/2010	Active	NO
3	U52334AP1996PLC024290	SNIGDHA MARKETING LIMITED	Director	1/05/2007	1/05/2007	26/03/2010	Active	NO
4	U29308AP2008PTC058350	SERVOMAX TRANSFORMERS PRIVATE LIMITED	Director	27/03/2008	27/03/2008	-	Active	NO
5	U45209PN2010PTC138055	SERVOMAX INFRASTRUCTURE PRIVATE LIMITED	Director	22/12/2010	22/12/2010	-	Active	NO
6	U31900AP2011PTC074147	SERVOMAX MARKETING PRIVATE LIMITED	Director	28/04/2011	28/04/2011	-	Active	NO

Name :

Mr. Ashok Gopalrao Kalmankar

Designation :

Director

Address :

H. No. 3-5-874/13/13A, Flat No. 201, Aasra Apartments, Hyderguda, Hyderabad – 500 029, Andhra Pradesh, India

Date of Birth/Age :

02.02.1946

Date of Appointment :

30.12.2009

DIN No.:

01557687

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	L24230AP1993PLC016155	EXENSYS SOFTWARE SOLUTIONS LIMITED	Director	25/09/2007	29/04/2007	31/10/2008	Active	NO
2	U45200AP1997PLC028322	TOTEM INFRASTRUCTURE LIMITED	Director	29/09/2009	15/01/2009	30/11/2011	Active	NO
3	U29309AP2000PLC035239	SERVOMAX INDIA LIMITED	Director	29/09/2010	30/12/2009	-	Active	NO
4	U93000AP2007PTC056377	SPYN FINANCIAL SERVICES PRIVATE LIMITED	Director	1/04/2010	1/04/2010	-	Active	NO

Name :

Mr. Venkata Chandra Sekhar Ravulapati

Designation :

Whole-time director

Address :

1-9-635, II-E. Aishwarya Apartments, Vidya Nagar, Hyderabad – 500044, Andhra Pradesh, India

Date of Birth/Age :

03.12.1964

Date of Appointment :

30.12.2009

DIN No.:

01871093

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	U21011AP1999PTC032726	TRILLIUM ENGINEERS PRIVATE LIMITED	Whole-time director	21/10/1999	21/10/1999	-	Active	NO
2	U52334AP1996PLC024290	SNIGDHA MARKETING LIMITED	Director	1/04/2007	1/04/2007	30/09/2009	Active	NO
3	U29309AP2000PLC035239	SERVOMAX INDIA LIMITED	Whole-time director	29/09/2010	30/12/2009	-	Active	NO

Name :

Mr. Sirish Bommakanti Narasimha

Designation :

Director

Address :

6-3-865/11, Imperial, Mannor, F. No. 107, Ameerpet, Hyderabad – 500016, Andhra Pradesh, India

Date of Birth/Age :

13.09.1963

Date of Appointment :

30.12.2009

DIN No.:

02023568

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	U74999AP2007PLC052227	PCH RETAIL LIMITED	Director	4/01/2007	4/01/2007	10/01/2012	Active	NO
2	U29309AP2000PLC035239	SERVOMAX INDIA LIMITED	Director	29/09/2010	30/12/2009	-	Active	NO

Name :

Mr. Ramaraghavulu Pujari

Designation :

Director

Address :

6-3-1246, Flat No. 204, Marvel Residency, Hyderabad – 500082, Andhra Pradesh, India

Date of Birth/Age :

01.07.1954

Date of Appointment :

02.03.2009

DIN No.:

00018994

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	U45200AP1991PTC013453	ROSHNI DEVELOPERS PRIVATE LIMITED	Director	26/07/2005	26/07/2005	3/07/2007	Active	NO
2	U45200AP2001PLC038175	INDU PROJECTS LIMITED	Whole-time director	27/09/2005	27/09/2005	3/07/2007	Active	NO
3	U45200AP2006PTC048968	INDU TECHZONE PRIVATE LIMITED	Director	1/02/2006	1/02/2006	3/07/2007	Active	NO
4	U00095PN2006PTC022236	INDU CONCEPT INFRA VENTURES PRIVATE LIMITED	Director	28/03/2006	28/03/2006	3/07/2007	Active	NO
5	U70102AP2006PTC049678	INDU FINELANDS PRIVATE LIMITED	Director	31/03/2006	31/03/2006	3/07/2007	Active	NO
6	U45200TN2006PTC085149	INDU NAVAYUGA INFRA PROJECTS PRIVATE LIMITED	Director	4/04/2006	4/04/2006	3/07/2007	Active	NO
7	U45200AP2006PTC049849	INDU ROYAL HOMES PRIVATE LIMITED	Director	13/04/2006	13/04/2006	3/07/2007	Active	NO
8	U45200AP2006PTC049848	INDU EASTERN PROVINCE PROJECTS PRIVATE LIMITED	Director	13/04/2006	13/04/2006	3/07/2007	Active	NO
9	U45200AP1997PLC028322	TOTEM INFRASTRUCTURE LIMITED	Whole-time director	8/12/2008	8/12/2008	31/01/2010	Active	NO
10	U29309AP2000PLC035239	SERVOMAX INDIA LIMITED	Director	25/09/2009	2/03/2009	-	Active	NO
11	U45200AP2004PLC043015	GKC PROJECTS LIMITED	Director	27/06/2009	27/05/2009	-	Active	NO
12	U74999AP2009PLC064124	TOTEM INTERNATIONAL LIMITED	Director	24/06/2009	24/06/2009	7/09/2009	Active	NO
13	U40106AP2007PTC055617	TF SOLARPOWER PRIVATE LIMITED	Director	31/05/2010	14/04/2010	-	Active	NO
14	U40109AP2008PTC060822	HYPERION GREEN ENERGY INDIA PRIVATE LIMITED	Director	15/09/2010	15/09/2010	-	Active	NO
15	U72200AP2010PTC070850	VELOCITY NETWORKS PRIVATE LIMITED	Director	21/04/2011	21/04/2011	-	Active	NO
16	L25209AP1987PLC007550	RAJ PACKAGING INDUSTRIES LIMITED	Additional director	7/11/2011	7/11/2011	-	Active	NO
17	U92400AP2010PTC071272	CELEBRITY CRICKET LEAGUE PRIVATE LIMITED	Nominee director	30/11/2011	30/11/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 12.12.2011)

Names of Shareholders	No. of Equity Shares
A.Venkateswara Rao	7144530
R Narayan Rao	3937
P Chandra Sekar Roddy	147035
A L Anuradha	121660
P Akila	12863
P Hymavathi	35700
P Nikitha	18375
A.R. Prasad	7500
V Satyanarayana	2625
V Santosh Kumar	2625
V Srinivasa Rao	2625
Sharada	2625
A Mohan Rao	2625
A Satya Teja	2625
Manikyamma	15750
Ravi Teja	7875
A Snigdha	7875
Avcndus Capitals Private Limited	68750
Connect Advisory Services Private Limited	58750
Pothuri Pavana Kumara	2000
Ekambareswara Rao	2000
T.S.Krishna Mohan	2000
Nagaraju	2000
R. V.Chandra Sekhar	50000

Names of Shareholders	No. of Preference Shares
A Venkateswara Rao	1499990
Total	1499990

(AS ON 31.03.2012)

Names of Shareholders	No. of Equity Shares
A. Venkateswara Rao	628500
Names of Shareholders	No. of Preference Shares
Barik Construction Private Limited, India	50000
Evergreen Synfab Private Limited, India	100000
Skyblue Industries Private Limited, India	100000
Glen Infrabuild Private Limited, India	50000
Macro IT Systems Private Limited, India	60000
Century Buildmart Private Limited, India	50000
Ram Rahim Trading company Private Limited, India	50000
Total	460000

(AS ON 04.01.2012)

Names of Shareholders	No. of Equity Shares
A. Venkateswara Rao	570000
Total	570000

(AS ON 04.01.2012)

Names of Shareholders	No. of Equity Shares
A. Venkateswara Rao	1364900
Total	1364900

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	0.01
Bodies corporate	1.65
Directors or relatives of directors	98.34
Total	100.00

BUSINESS DETAILS

Line of Business :

manufacturer of Transformers, Voltage stabilizers, Energy Saving Equipment and Isolation Transformers

Products :

· Intelligent PMP Unit

· Electronic Voltage Stabilizers

· Stabilizers

· Auto Transformer

· Automatic Power Factor

· Controller Panel

· Linear / Vertical Variac

· Distribution Transformer

· LT Pannel Boards

· Electro Plating Rectifier

· Energy Saver

Products Description	Item Code No.
Power Conditioning Equipments	85129000

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Actual Production
Power Conditioning equipments	Nos	8708
Power Saving equipments	Nos	80

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Axis Bank

6-3-879/B, Ground Floor, G. Pulla Reddy Building, Greenlands, Begumpet Road, Hyderabad – 500016, Andhra Pradesh, India

· Barclays Bank PLC

20/21, Kamraj Salai, Kanchipuram – 631501, Tamilnadu, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Working capital loans banks secured	891.195	453.555
Loans taken for vehicles secured	6.510	4.601
Total	897.705	458.156
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Working capital loans banks unsecured	99.687	0.000
Total	99.687	0.000

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	1-8-384 and 385, 3^rd Floor, Gowra Grand, S. P. Road, Begumpet, Secunderabad – 500003, Andhra Pradesh, India
Tel. No.:	91-40-40312600
Fax No.:	91-40-40312714
PAN.:	AACCD4805B
Other Entities under the control of Key Management Personnel and their relatives :	· Serwel Electronics Limited · Sloka Power Systems · First Esco India Private Limited

CAPITAL STRUCTURE

AS ON 12.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions
1500000	Preference Shares	Rs.100/- each	Rs.150.000 Millions
	Total		Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7740100	Equity Shares	Rs.10/- each	Rs.77.401 Millions
1499990	0.1% Participative Cumulative Compulsory Convertible Preference Shares	Rs.100/- each	Rs.149.999 Millions
	Total		Rs.227.400 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		227.400	227.400	227.400
2] Share Application Money		79.501	39.501	0.000
3] Reserves & Surplus		222.889	126.195	65.345
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		529.790	393.096	292.745
LOAN FUNDS
1] Secured Loans		897.705	458.156	243.987
2] Unsecured Loans		99.687	0.000	0.000
TOTAL BORROWING		997.392	458.156	243.987
DEFERRED TAX LIABILITIES		8.106	4.680	3.042
TOTAL		1535.288	855.932	539.774
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		133.994	116.517	60.823
Capital work-in-progress		10.363	1.492	15.233
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	329.100	192.507	144.740
	Sundry Debtors	1308.996	577.191	314.916
	Cash & Bank Balances	110.210	48.720	28.679
	Other Current Assets	88.421	0.000	0.000
	Loans & Advances	141.285	100.394	76.043
Total Current Assets		1978.012	918.812	564.378
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	457.737	140.710	52.835
	Other Current Liabilities	121.502	29.207	41.605
	Provisions	7.842	10.972	6.220
Total Current Liabilities		587.081	180.889	100.660
Net Current Assets		1390.931	737.923	463.718
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1535.288	855.932	539.774

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2813.303	1615.917	889.889
		Other Income	6.597	5.632	3.202
		TOTAL (A)	2819.900	1621.549	893.091
Less	EXPENSES
		Consumption materials changes inventories	2081.145	1287.950
		Manufacturing service costs	221.577	38.894
		Employee related expenses	137.218	69.006	818.050
		Administrative selling other expenses	110.958	78.108
		TOTAL (B)	2550.898	1473.958	818.050
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		269.002	147.591	75.041
Less	FINANCIAL EXPENSES (D)		109.119	48.984	20.798
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		159.883	98.607	54.243
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.221	4.705	2.931
	PROFIT BEFORE TAX (E-F) (G)		150.662	93.902	51.312
Less	TAX (H)		53.793	32.877	18.772
	PROFIT AFTER TAX (G-H) (I)		96.869	61.025	32.540
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		125.223	64.373	32.008
Less	APPROPRIATIONS
		Preference Dividend	0.150	0.150	0.150
		Dividend Tax on Proposed Dividend	0.025	0.025	0.025
	BALANCE CARRIED TO THE B/S		221.917	125.223	64.373
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	10.080	10.651	10.272
	TOTAL EARNINGS		10.080	10.651	10.272
	Earnings Per Share (Rs.)
	Basic		12.49	7.86	4.18
	Diluted		10.88	6.85	3.66

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.44	3.76	3.64
Net Profit Margin (PBT/Sales)	(%)	5.36	5.81	5.77
Return on Total Assets (PBT/Total Assets}	(%)	7.13	9.07	8.21
Return on Investment (ROI) (PBT/Networth)		0.28	0.24	0.18
Debt Equity Ratio (Total Liability/Networth)		2.99	1.63	1.18
Current Ratio (Current Asset/Current Liability)		3.37	5.08	5.61

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of Contact person	No
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-----
Estimation for coming financial year	No
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payments Terms	No
Export/ Imports Details (If applicable)	No
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	Yes

OPERATIONS:

The Indian economy resurged after the global recession and showed steady growth in all spheres and it was very impressive in the core sector of manufacturing, construction and services. The company is into wide range of power saving products with different product range and excellent distribution network all over India to capitalize the opportunities that emanated from the economic growth and could perform exceptionally well in terms of growth in revenue.

During the period, the company has achieved a gross turnover of Rs.3099.500 Millions (Rs.2819.900 Millions net) as against Rs.1776.700 Millions (Rs.1621.500 Million net) during the previous year recording a 74% growth. The significant growth is on account of increase in sales volume for all product lines by about 45% as also increase in revenue from erection contracts by 286%. The company was successful in exploiting to its ability in executing projects and thereby bagging large orders. During the period under review, the company had a stabilized level of operation in telecom revenue and also a small retail operation, mainly marketing of imported GE make appliance / products.

FUTURE PROSPECTS

In the forthcoming years, the company proposes to venture into production of some more products like Panel Boards, Resin Cast Transformers, Power Transformers, Industrial Surge Arresters, Industrial Inverters etc.

The company also plans to venture into Electrical Consultancy and Energy Saving Consultancy. Electrical Consultancy will enable the company to sell solutions rather than products thereby improving the net margin.

For Energy Saving Consultancy, the company has already obtained necessary rating from ICRA which will enable the company to quote for various energy saving projects.

The revenue from erection contracts will have its natural growth as the company finishes a few large projects which are already on the verge of completion.

The company also proposes to improve its basket of traded products by including Home UPS, Solar Heaters, Solar Panels, Micro Wind Mills and Home Automation and Home Protection Products. This will ultimately culminate into floating of a Servomax Retail enterprise as an independent division of the company.

Also, the company intends to improve the product quality by upgrading the manufacturing facilities, wherever required, by making additional investment. The company has started its research and development wing to develop more products in line with the vision above.

FORM 8:

This form is for	Creation of charge
Corporate identity number of the company	U29309AP2000PLC035239
Name of the company	Servomax India Limited
Address of the registered office or of the principal place of business in India of the company	Plot No. 16, 17 and 18, IDA, Phase II, Cherlapally, Hyderabad – 500051, Andhra Pradesh, India ceomktg@servomax.net
Type of charge	Immovable Property Book Debts Movable Property
Particular of charge holder	Axis Bank Limited 6-3-879/B, Ground Floor, G. Pulla Reddy Building, Greenlands, Begympet Road, Hyderabad – 500016, Andhra Pradesh, India sreedevi.edpuganti@axisbank.com
Nature of description of the instrument creating or modifying the charge	Mortgage Deed Hypothecation Deed
Date of instrument Creating the charge	16.02.2012
Amount secured by the charge	Rs.500.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest Base rate + 3.50% (presently 13.5%) Terms of Repayment Repayable on Demand Margin a) Cash Credit: Raw Materials - 25%, Stock-in-Process - 25%, Finished Goods and Pkg. Materia - 25%, Stores and Spares - 25%, Book Debts(cover period 90 days) - 25%. b) Letter of Credit (cash margin): 10% to be collected upfront and kept in TDR with Bank's lieu noted thereon. c) Bank Guarantee (cash margin): 10% to be collected upfront and kept in TDR with Bank's lieu noted thereon. 100% cash margin in case of disputed liabilities. Extent and Operation of the charge The charge operates as a security for the repayment of credit facility availed by the Company together with the payment of interest and any other charges, costs and expenses payable to or incurred by the Bank.
Short particulars of the property charged	Primary: Pari Pasu charge on the current assets of the Company both present and future. Exclusive charge on the unit bearing no. 4-A, 4-B, 4-C and 4-D in fourth floor, Meridian Plaza, bearing Municipal No. 6-3-853/1, 6-3-854 and 6-3-854/A, Ameerpet, Hyderabad-500016. Exclusive charge on Plot No. 4/2/Part, Sy. No. 66/1, Nacharam Village, Kapra Municipality, Uppal mandal, RR Dist, Hyderabad standing in the name of the Company. Exclusive charge on the landed property bearing Sy. No. 316,316/AA, 317 at Tallapally Village, Shabad Mandal, R.R District standing in the name of the Company.

Fixed Assets:-

· Land

· Building

· Plant and Machinery and Office Equipments etc.

· Furniture and Fixtures

· Vehicles

· Computers

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 :	NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		33

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.