MIRA INFORM REPORT

Report Date :

19.07.2012

IDENTIFICATION DETAILS

Name :	PRINTECH DIGITAL IMAGING PRIVATE LIMITED
Registered Office :	No.270/2, Bhanu Nursing Home, M. Vishweswaraiah Road, Bommanahalli, Bangalore – 560068, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.08.2006
Com. Reg. No.:	08-040279
Capital Investment / Paid-up Capital :	Rs.8.557 Millions
CIN No.: [Company Identification No.]	U22219KA2006PTC040279
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Printing Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (41)

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

Maximum Credit Limit :	USD 132000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Profitability of the company appear 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 normal 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

LOCATIONS

Registered Office :	No.270/2, Bhanu Nursing Home, M. Vishweswaraiah Road, Bommanahalli, Bangalore – 560068, Karnataka, India
Tel. No.:	91-80-40611804/ 406611811/ 41508666
Fax No.:	91-80-25732266
E-Mail :	gopalsn@sandh.in printechprasad@yahoo.co.in admin@sandh.in info@printechdigital.net
Production Unit :	Chennai Tel No.:91-44-43556612/ 21 Fax No.:91-44-43556990 Hyderabad Tel No.:91-40-27176455 Fax No.:91-40-27176456

DIRECTORS

(AS ON 26.09.2011)

Name :

Mr. Bhagawath Prasad Bharatula

Designation :

Director

Address :

#331, 11^th A Cross, 17^th Main, 2^nd Phase, J P Nagar, Bangalore – 560078, Karnataka, India

Date of Birth/Age :

05.08.1963

Date of Appointment :

25.08.2006

DIN No.:

01197863

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	Company/ LLP Status	Defaulting status
1	U22219KA2006PTC040279	PRINTECH DIGITAL IMAGING PRIVATE LIMITED	Director	25/08/2006	25/08/2006	Active	NO
2	U74300KA2007PTC042378	SOLUTIONS 4 RETAIL PRIVATE LIMITED	Director	04/04/2007	04/04/2007	Active	NO

Name :

Mrs. Rajeshwari Shriram

Designation :

Director

Address :

#374, 10^th Cross, 6^th Main Vijaya Bank Layout, Bangalore – 560076, Karnataka, India

Date of Birth/Age :

03.10.1978

Date of Appointment :

25.08.2006

DIN No.:

01067803

Name :

Mrs. Shobha Chandrappa

Designation :

Director

Address :

#331, 11^th A Cross, 17^th Main, 2^nd Phase, J P Nagar, Bangalore – 560078, Karnataka, India

Date of Birth/Age :

29.03.1967

Date of Appointment :

25.08.2006

DIN No.:

01067844

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 26.09.2011)

Names of Shareholders	No. of Shares
Bhagawath Prasad Bharatula	427850
Rajeshwari Shriram	213925
Shobha Chandrappa	213925
Total	855700

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Printing Products.

PRODUCTION STATUS (AS ON 31.03.2011)

Licensed Capacity	Not Available
Installed Capacity	190.00 Lakhs sft of Billboard Printing and 27.50 Lakhs sft of inshop hire solution Signage.
Actual Production	94.00 Lakhs sft of billboard Printing and 14.80 Lakhs aft of Inshop hi resolution signage

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Axis Bank Limited

· ICICI Bank

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Axis Bank Limited – Term Loan 009010600133920	0.319	5.354
Axis Bank Limited – Term Loan 009010600158091	2.521	4.214
Axis Bank Limited – Term Loan 909060031432773	2.096	3.356
Axis Bank Limited – Cash credit - 8280	25.329	28.312
Vehicle Loans: ICICI Bank – Honda City	0.000	0.022
Total	30.265	41.258
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
(From Directors/ Share Holders) Bhagawath Prasad	5.476	0.765
Total	5.476	0.765

Banking Relations :	--
Financial Institutes :	· Tata Capital Financial Services Limited One Forbes, Dr. V. B. Gandhi Marg, Fort, Mumbai - 400001, Maharashtra, India
Auditors :
Name :	Sundararajan and Harish Chartered Accountant
Address :	No.13/2, 4^th Cross, Nagappa Street, Palace Nagar, Bangalore – 560003, Karnataka, India
Tel No.:	91-80-23446761/ 62
Fax No.:	91-80-23567104
PAN No.:	AADFS9027Q
Email :	admin@sandh.in
Related Parties :	· Solution 4 Retail Private Limited

CAPITAL STRUCTURE

(AS ON 26.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
855700	Equity Shares	Rs.10/- each	Rs.8.557 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		8.557	2.500	2.500
2] Share Application Money		0.000	6.057	6.057
3] Reserves & Surplus		24.414	19.414	12.815
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		32.971	27.971	21.372
LOAN FUNDS
1] Secured Loans		30.265	41.258	38.611
2] Unsecured Loans		5.476	0.765	0.500
TOTAL BORROWING		35.741	42.023	39.111
DEFERRED TAX LIABILITIES		1.050	1.298	1.298
TOTAL		69.762	71.292	61.781
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		44.993	53.768	48.319
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	18.420	23.281	29.223
	Sundry Debtors	41.229	33.210	14.737
	Cash & Bank Balances	1.133	1.262	0.725
	Other Current Assets	1.729	1.573	1.567
	Loans & Advances	4.385	4.163	5.076
Total Current Assets		66.896	63.489	51.328
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	39.207	42.608	34.982
	Other Current Liabilities	0.000	0.673	0.000
	Provisions	2.920	2.700	2.915
Total Current Liabilities		42.127	45.981	37.897
Net Current Assets		24.769	17.508	13.431
MISCELLANEOUS EXPENSES		0.000	0.016	0.031
TOTAL		69.762	71.292	61.781

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		TOTAL (A)	141.680	134.774	126.196
Less	EXPENSES
		TOTAL (B)	120.847	112.802	104.023
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		20.833	21.972	22.173
Less	FINANCIAL EXPENSES (D)		5.053	5.536	7.020
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		15.780	16.436	15.153
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.009	7.765	7.510
	PROFIT BEFORE TAX (E-F) (G)		7.771	8.671	7.643
Less	TAX (H)		2.771	2.073	3.841
	PROFIT AFTER TAX (G-H) (I)		5.000	6.598	3.802
	Earnings Per Share (Rs.)		5.84	26.39	15.21

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.53	4.90	3.01
Return on Total Assets (PBT/Total Assets}	(%)	6.95	7.39	7.67
Return on Investment (ROI) (PBT/Networth)		0.24	0.31	0.36
Debt Equity Ratio (Total Liability/Networth)		2.36	3.15	3.60
Current Ratio (Current Asset/Current Liability)		1.59	1.38	1.35

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

CONTINGENT LIABILITIES:

Value of Outstanding Bank Guarantee: Rs.4.000 Million and Letter of Credit: Rs. Nil.

FORM 8:

This form is for	Modification of charge
Charge identification number of the modified	10330499
Corporate identity number of the company	U22219KA2006PTC040279
Name of the company	PRINTECH DIGITAL IMAGING PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No.270/2, Bhanu Nursing Home, M Vishweswaraiah Road, Bommanahalli, Bangalore – 560068. Karnataka, India gopalsn@sandh.in
Type of charge	Immovable Property
Particular of charge holder	Tata Capital Financial Services Limited One Forbes, Dr. V. B. Gandhi Marg, Fort, Mumbai – 400001, Maharashtra, India avan.doomasia@tatacapital.com
Nature of description of the instrument creating or modifying the charge	Deed of simple mortgage dated 23.05.2012
Date of instrument Creating the charge	23/05/2012
Amount secured by the charge	Rs.34.590 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest Rs.21.500Millions:-LTLR less 2.75% i.e 14.25% p.a floating interest rate. Rs.13.090 Millions:-LTLR less 2.75% i.e 14.25% p.a floating interest rate. Terms of Repayment Principal and Interest amount to be repaid in 60 months (including moratorium of 6 months) Margin Margin@15% for Equipment and 30% on the registered value of land and building and additional construction cost. Extent and Operation of the charge The charge extends to the due repayment of the loan of Rs.34.590 Millions including interest, additional interest, costs, charges, expenses and all other monies payable by the Borrower under the Term Loan Agreement dated 22.11.2011. In the event of default in payment of interest or repayment of principal amount of the Loan the Borrower shall pay to the Lender, further interest @ 4% p.a. as penal interest.
Short particulars of the property charged	Survey No.270 and 332,measuring on the East 18.80 mts, on the West 18 mts, on the North 59.20mts.,and on the South 58 mts, Plot No 161, Situated at Bommasandra Industrial Area, Bommansandra village, Attibele Hobli, Anekal Taluk, Bangalore, Karnataka.
Particulars of the present modification	To further secure the charge of Rs 34.590 Millions additional property admeasuring on the East 18.80 mts., on the West 18 mts., on the North 59.20 mts., and on the South 58 mts, Suvery No.270 and 332,Situated at Bommansandra Industrial Area, Bommasandra Village, Attibele Hobli, Anekal Taluk, Bangalore, Karnataka have been mortgaged with Tata Capital Financial Services Limited.

FIXED ASSETS:

· Goodwill

· Computer and Accessories

· Furniture and Fixture

· Plant and Machinery

· Factory Equipments

· Tools

· Office Equipments

· Electrical Installations

· UPS

· Generator

· 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.55.34
UK Pound	1	Rs.86.55
Euro	1	Rs.67.95

INFORMATION DETAILS

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	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	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		41

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.