MIRA INFORM REPORT

Report Date :

17.07.2012

IDENTIFICATION DETAILS

Name :	SINEX SYSTEMS PRIVATE LIMITED
Registered Office :	24, Five Furlong Road, Maduvinkarai, Guindy Chennai - 600 032, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011 (Summarized Balance sheet)
Date of Incorporation :	24.05.1995
Com. Reg. No.:	18-031525
Capital Investment / Paid-up Capital :	Rs.0.960 million
CIN No.: [Company Identification No.]	U92490TN1995PTC031525
TAN No.: [Tax Deduction & Collection Account No.]	CHES05422E
PAN No.: [Permanent Account No.]	AABCS4855P
Legal Form :	Private Limited Liability Company
Line of Business :	Trader and Importer of Euroceil, Harpoon, PVC Stretch Ceilins etc.
No. of Employees :	110 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 92000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Umesh Badri
Designation :	Chief Executive Officers
Contact No.:	91-9176922648
Date :	10.07.2012

LOCATIONS

Registered Office :	24, Five Furlong Road, Maduvinkarai, Guindy Chennai - 600 032, Tamilnadu, India
Tel. No.:	91-44-22450024 / 24482867
Mobile No.:	91-9176922648 (Mr. Umesh Badri)
Fax No.:	91-44-42124938/ 24480334/ 24482867/ 24481922
E-Mail :	accounts@sinexsystems.com
Website :	http://www.sinexsystems.com
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :	Mr. Iyer Badri Narayan
Designation :	Managing Director
Address :	Flat No.3A and 51 A, 16^thCross Street, Besant Nagar, Chennai – 600090, Tamil Nadu, India
Date of Birth/Age :	25.09.1957
Date of Appointment :	24.05.1995
DIN No.:	02587829
Name :	Mrs. Badri Narayanan Varalakshmi
Designation :	Director
Address :	2B/1A/3, Renga Manor, No.5, 7^th Cross Street, Sastri Nagar, Chennai – 600020, Tamil Nadu, India
Date of Birth/Age :	28.08.1966
Date of Appointment :	01.09.2007
DIN No.:	02587816
Name :	Mrs. N.Rajalakshmi
Designation :	Director
Address :	Flat No.3A and 51 A, 16^thCross Street, Besant Nagar, Chennai – 600090, Tamil Nadu, India
Date of Appointment :	19.02.1997

KEY EXECUTIVES

Name :	Mr. Umesh Badri
Designation :	Chief Executive Officers

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
N. Badri Narayan	95952
Varalakshmi	48
Total	96000

As on 30.09.2010

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader and Importer of Euroceil, Harpoon, PVC Stretch Ceiling etc.
Products :	· Printed Ceiling · Acoustic Ceiling · Indoor Swimming Pool Ceiling · Biofree Ceiling · High Gloss Reflective Ceiling · Backlit Ceiling
Imports :
Products :	Raw Material
Countries :	· China · Hong Kong · Germany
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Actual Production
Vistarr and Banner	Nos.	4418
Kwick Frame and Broucher Stand	Nos.	6781
Signages. Flow Image, Roto Sign and Digital scroller	Nos.	9011

GENERAL INFORMATION

Customers :

Retailers and End Users

· Ashok Layland

No. of Employees :

110 (Approximately)

Bankers :

· Federal Bank of India, Adyar Branch, No:10, 4th Main Road, Gandhi Nagar,, Chennai - 600020, Tamil Nadu, India

· The Federal Bank Limited, No:46 Lattice Bridge Road, Adayar, Chennai - 600041, Tamil Nadu, India

· HDFC Bank, Chennai, Tamil Nadu, India

Facilities :

SECURED LOAN	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Cash Credit From Bank Secured by hypothecation of certain Plant and Machinery, Computer systems, Sundry Debtors and Inventories		22.504
Term Loan From Federal Bank Limited Secured By Hypothecation Of Tata Eicher Van		0.279
Total	31.757	22.783
UNSECURED LOAN	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Loan From Directors		2.133
Total	0.500	2.133

Banking Relations :	--
Auditors :
Name :	SRKB ASSOCIATES Chartered Accountant
Address :	New No.28, Old No.195, III Floor, North Usman Road T. Nagar, Chennai – 600017, Tamil Nadu, India
PAN.:	AABFS7891N

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.10/- each	Rs.1.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
96000	Equity Shares	Rs.10/- each	Rs.0.960 million

FINANCIAL DATA

[all figures are in Rupees Millions]

(SUMMARIZED BALANCE SHEET)

Particulars	31.03.2011
Share Capital	0.960
Reserves & Surplus	22.151
Secured Loans	31.757
Unsecured Loans	0.500
TOTAL	55.368
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	12.078
DEFERREX TAX ASSETS	(0.425)
Inventories	15.802
Sundry Debtors	38.775
Cash & Bank Balances	3.432
Loans & Advances	20.127
Other Current Liabilities	24.679
Provisions	9.666
MISCELLANEOUS EXPENSES	0.000
TOTAL	55.444

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		0.960	0.960
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		21.083	17.980
4] (Accumulated Losses)		0.000	0.000
NETWORTH		22.043	18.940
LOAN FUNDS
1] Secured Loans		22.783	25.528
2] Unsecured Loans		2.133	2.936
TOTAL BORROWING		24.916	28.464
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		46.959	47.404
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.032	10.422
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.058	0.149
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	14.641	17.730
	Sundry Debtors	34.938	27.171
	Cash & Bank Balances	4.331	3.956
	Other Current Assets	0.000	0.000
	Loans & Advances	15.304	14.549
Total Current Assets		69.214	63.406
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	15.087	14.647
	Other Current Liabilities	8.407	4.623
	Provisions	8.851	7.303
Total Current Liabilities		32.345	26.573
Net Current Assets		36.869	36.833
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		46.959	47.404

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	120.641	92.951	71.090
		Other Income	2.158	0.587	2.472
		TOTAL (A)	122.799	93.538	73.562
Less	EXPENSES
		Cost of Goods Sold	50.733	36.970	28.778
		Salaries and Administrative staff	22.815	15.625	14.242
		Other Expenditure	37.662	30.365	21.969
		TOTAL (B)	111.210	82.960	64.989
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		11.589	10.578	8.573
Less	FINANCIAL EXPENSES (D)		4.953	5.220	5.095
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6.636	5.358	3.478
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.820	0.656	0.690
	PROFIT BEFORE TAX (E-F) (G)		5.816	4.702	2.788
Less	TAX (H)		3.676	1.599	1.321
	PROFIT AFTER TAX (G-H) (I)		2.140	3.103	1.467
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		21.084	17.980	16.513
Less	Dividend paid to Director		0.917	0.000	0.000
Less	Dividend Distribution Tax		0.156	0.000	0.000
	BALANCE CARRIED TO THE B/S		22.151	21.083	17.980
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.000	0.097	0.294
	TOTAL EARNINGS		0.000	0.097	0.294
	IMPORTS
		Raw Materials	0.000	2.842	1.408
	TOTAL IMPORTS		0.000	2.842	1.408
	Earnings Per Share (Rs.)		22.29	32.33	15.29

Particulars	31.03.2012
Sales Turnover (Approximately)	108.300
	(Due to some pending work)

Expected Sales (2012-2013): Rs.150.000 millions

The above information has been parted by Mr. Umesh Badri.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.74	3.32	1.99
Net Profit Margin (PBT/Sales)	(%)	4.82	5.06	3.92
Return on Total Assets (PBT/Total Assets}	(%)	6.45	5.93	3.78
Return on Investment (ROI) (PBT/Networth)		0.25	0.21	0.15
Debt Equity Ratio (Total Liability/Networth)		2.88	2.60	2.91
Current Ratio (Current Asset/Current Liability)		2.28	2.13	2.39

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%	Yes
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
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	No
30) Major Shareholders, if available	Yes

NOTE:

The Registered Office of the company has been shifted from 369,370, 5^th Link Streetnehru Nagar, Chennai-600096, Tamil Nadu, India to the present address w.e.f.19.11.2008

Bankers Charges Report as per Registry

Corporate identity number of the company	U92490TN1995PTC031525
Name of the company	SINEX SYSTEMS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	24, Five Furlong Road, Maduvinkarai, Guindy Chennai - 600 032, Tamilnadu accounts@sinexsystems.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90290999
Type of charge	· Immovable property · Book debts · Movable property (not being pledge) · Others (Machinery)
Particular of charge holder	Federal Bank of India, Adyar Branch, No:10, 4th Main Road, Gandhi Nagar,, Chennai - 600020, Tamil Nadu, India mdsk@federalbank.co.in
Nature of instrument creating charge	1. Agreement of Cash Credit / Overdraft / Demand Loan 2. Letter of Credit Agreement 3. Term Loan Agreement 4. Single Counter Guarantee 5. No instrument. Extension of Equitable Mortgage, by deposit of Title Deeds, of the Company's Immovable Properties (Letters - 2 Nos., confirming the said extension are enclosed herewith) All relate to one single Modification of Charge
Date of instrument Creating the charge	28.03.2012
Amount secured by the charge	Rs.47.100 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Term Loan: Rs.2.100 Millions: - Interest @ 14.25% p.a. (Table 3, FB 3 BR + 5.25%) (Sub Limit under Term Loan : Import LC :- Rs.1.500 millions: Commission as per Card Rules) Terms of Repayment Term Loan: Rs.2.100 millions:- To be repaid in monthly installments of Rs.0.035 millions each. Interest to be serviced then and there Margin Term Loan : Rs.2.100 millions :- 25% Extent and Operation of the charge Companies : (1) Stocks, Book debts and all receivables not exceeding 180 days, and goods covered under LC, Machinery purchased out of the Bank Finance (TL); (2) EM of : (i) Land measuring 4800 Sq.ft., and shed thereon in S.No322/24A and 322/24B in Plot No.33 and 34 of Kottivakkam village (ii) Land in Old Paimash No.961, New No.5/11 measuring 0.50 acres in Pudupakkam Village to secure the Overall Credit Limit of Rs.47.100 millions, together with interests, costs, charges and other expenses. Others The revised Overall Credit Limit of Rs.47.100 millions consists of : Cash Credit : Rs.30.000 millions Term Loan : Rs. 2.100 millions [Import LC (Sub Limit under Term Loan) : Rs.1.500 millions] Import LC : Rs. 7.500 millions [Inland LC (Sub Limit under Import LC) : Rs.7.500 millions] Bank Guarantee: Rs. 7.500 millions
Short particulars of the property charged	Company's : (A) Stocks of Inventory and Receivables Outstanding less than 180 days (Stock of display materials, scrollers, ACM sheets, raw materials etc, and goods covered under LC; and Machinery namely. 2 Nos. Hi Frequency PVC Welding Machine with Japan Electric Tube accessories, and 1 No. Maxi W 1530 CNC Router with HSD Spindle, Vaccum Bed, Servo Drive, Dust Collector and other accessories (B) EM of Company's Immovable properties namely. (a) All that piece and parcel of vacant land bearing Plot No.33 and 34, both situated in Srinivas Nagar, First Street, Kottivakkam Village, Tambaram Tk. Kancheepuram Dist., comprised in Old Sy.No.322/1A, 1A, 1A, 1A, New Sy.No.322/24A (Plot No.33: 2400 Sq.ft.,) and New Sy.No.322/24B (Plot No.34: 2400 Sq.ft.,) in all admeasuring 4800 Sq.ft., and (i) Plot No.33 bounded on the North by Sy. No.322/15, (Plot No.3 and 4), South by 30 Ft. Road, East by property belonging to Mrs. Devakirubai Jayabalan (Plot No.34) and West by Sy. No.322/43, Plot No.32 (ii) Plot No.34 bounded on the : North by Sy. No.322/16, (Plot No.3 and 4), South by 30 Feet Road, East by Sy.No.322/23 (Plot No.33) and West by Sy. No.322/43, Plot No.32, both Plot No.33 and 34 lying within the Regn. Dist., of South Chennai and Regn. Sub Dist., of Adyar, together with the right to the common passage and all buildings present and future. (b) All that piece and parcel of vacant land in Old Paimash No.961, New Sy.No.5/11 measuring 0.50 Acre (50 Cents) situated in Pudupakkam Village, Kancheepuram Dist., within the Regn. Sub Dist. of Thiruporur and Regn. Dist of Kancheepuram and bounded on the North by land retained by the Vendor, South by Portion No. B as per sub-division and 20 Feet private passage, East by land comprised in Sy.No.5/12, West by land comprised in Sy. No.5/10.
Date of latest modification prior to the present modification	14.05.2007
Particulars of the present modification	The present REVISED Overall Credit Limit of Rs.47.100 millions, is secured by the Company's : (1) Stocks, Book debts and all receivables not exceeding 180 days, and goods covered under LC, Machinery purchased out of the Bank Finance (TL) (2) EM of : (i) Land measuring 4800 Sq.ft., and shed thereon in S.No322/24A and 322/24B in Plot No.33 and 34 of Kottivakkam village (ii) Land in Old Paimash No.961, New No.5/11 measuring 50 Cents in Pudupakkam Village more fully described in Field No.15(i) to (ix) above.

Contingent Liability:

Particular	Rs. In millions
a. On account of Bank Guarantees issued	1.166
b. On account of L.C issued	1.220

c. Company is having disputed Sales Tax demand

Assessment year	Name of the Statute	Nature of the Dues Tax		Forum where dispute is pending
2003 - 2004	Sales Tax	TNG ST	194224	DCTO
2007-2008	Income Tax	Self Assessment	1548811	Assistant Commissioner Income Tax
2007-2008	Income Tax	FBT	54196	Assistant Commissioner Income Tax

FIXED ASSETS:

· Land

· Factory Buildings

· Plant and machinery

· Office Equipment

· Computer

· Furniture and fixture

· Vehicles

TRADE REFERENCES:

· Ashok Layland

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.54.92
UK Pound	1	Rs.85.47
Euro	1	Rs.67.15

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	DPK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		42

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.