MIRA INFORM REPORT

Report Date :

01.06.2012

IDENTIFICATION DETAILS

Name :	PACMAC ENGINEERS PRIVATE LIMITED
Registered Office :	437-C, Baikampady Industrial Area, New Mangalore 575011, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	23.01.1996
Com. Reg. No.:	019660
Capital Investment / Paid-up Capital :	Rs.2.650 millions
CIN No.: [Company Identification No.]	U28920KA1996PTC019660
TAN No.: [Tax Deduction & Collection Account No.]	BLRP02728F / BLRP03421F
PAN No.: [Permanent Account No.]	AABCP8058R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of complete line of machinery for packaging of powders and liquids in rigid containers, vacuumising and gassing, seaming / capping for food, pharmaceutical, and other products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 17368
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. 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 some 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

LOCATIONS

Registered Office /Factory :	437-C, Baikampady Industrial Area, New Mangalore 575011, Karnataka, India
Tel. No.:	91-824-2406897
Fax No.:	91-824-2406897
E-Mail :	Cnk27@sify.com pacmac@blr.vsnl.net.in
Website :	www.pacmacengineers.net

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Chandrashekar Rao
Designation :	Director
Date of Birth/Age :	06.12.1947
Date of Appointment :	23.01.1996
Name :	Mrs. Veena C Rao
Designation :	Director
Date of Birth/Age :	24.06.1952
Date of Appointment :	23.01.1996
Name :	Mr. Dattatray Bantwal
Designation :	Director
Date of Birth/Age :	15.06.1938
Date of Appointment :	23.01.1996
Name :	Mr. P Anantharay Pal
Designation :	Director
Date of Birth/Age :	03.09.1944
Date of Appointment :	23.01.1996
Name :	Mrs. Shanti Pal
Designation :	Director
Date of Birth/Age :	11.09.1950
Date of Appointment :	23.01.1996
Name :	Mr. Druva Dattatray
Designation :	Director
Date of Birth/Age :	23.05.1975
Date of Appointment :	23.01.1996

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Mr. Chandrashekar Rao	15200
Mrs. Veena C Rao	13260
Mr. Dattatray Bantwal	15000
Mr. P Anantharay Pal	15000
Mrs. Shanti Pal	43260
Mr. Druva Dattatray	43260
Mr. M P Bal	6000
Mrs. Shobha G	3400
Mr. Chandrashekar	3500
Mr. B S Rao	5000
Mr. P Krishna	2500
Mr. Ashwin Pal	5000
Mr. Prithviraj Rao	10000
Ms. Pushpa	2500
Recon Dies and Tools Private Limited, Mumbai, India	30000
Mrs. Kishori Dattatraya	3620
Mr. Bharath Pal	13500
Ms. Prajna Rao	35000
Total	265000

AS ON 30.09.2011

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		11.32
Directors or relatives of directors		81.93
Other		6.75
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of complete line of machinery for packaging of powders and liquids in rigid containers, vacuumising and gassing, seaming / capping for food, pharmaceutical, and other products.

Products :

ITC Code	Product Description
84223000	Filling Machine
84223000	Vaccuumising Machine
84223000	Auromatic Seaming Machine

PRODUCTION STATUS

Particulars	Unit	Actual Production
Belt Conveyors, Automatic Capping / Beeding / Augur Filling/liquid filling can end feeding and closing machine and unscramblers etc.	No. of Machines / parts	317

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Karnataka Bank Limited, Panambur Branch, Mangalore 575010, Karnataka, India

· ICICI Bank

· Canara Bank

Facilities :

Rs. In Millions

SECURED LOAN	31.03.2011	31.03.2010
Karnataka Bank Limited OD A/C - 311	2.292	2.056
Karnataka Bank Limited OD A/C - 735 (both loans secured by hypothecation of stock of raw materials, semi finished and finished goods, book debts, machinery costing Rs. 0.367 million, 2^nd charge on fixed assets of the company. Pledge of AC certificates of Karnataka bank limited and co-obligation/guarantee of all the directors)	0.000	3.848
ICICI Bank (Maruti Omni Loan) (Secured by hypothecation of car )	0.000	0.018
Karnataka Bank Limited, Packing Credit Loan	1.003	0.000
Total	3.295	5.922
UNSECURED LOAN
Deposits from Shareholders	2.274	2.021
Recon Dies and Tools Private Limited	0.700	0.700
Total	2.974	2.721

Banking Relations :	--
Auditors :
Name :	S S Kamath and Rau Chartered Accountant
Address :	Karangalpady, Mangalore 575003, Karnataka, India
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
350000	Equity Shares	Rs. 10 each	Rs.3.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
265000	Equity Shares	Rs. 10 each	Rs.2.650 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		2.650	2.650	2.650
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2.297	2.297	2.297
4] (Accumulated Losses)		(0.605)	(0.426)	(0.901)
NETWORTH		4.342	4.521	4.046
LOAN FUNDS
1] Secured Loans		3.295	5.922	1.994
2] Unsecured Loans		2.974	2.721	2.470
TOTAL BORROWING		6.269	8.643	4.464
DEFERRED TAX LIABILITIES		0.000	0.062	0.059
TOTAL		10.611	13.226	8.569
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7.180	7.676	8.199
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.003	0.006	0.008
DEFERREX TAX ASSETS		0.033	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	7.591	2.068
	Sundry Debtors	0.000	2.162	9.207
	Cash & Bank Balances	0.000	7.272	2.141
	Other Current Assets	0.000	1.466	2.561
	Loans & Advances	27.764	1.639	1.437
Total Current Assets		27.764	20.130	17.414
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8.878	6.934	7.845
	Other Current Liabilities	15.491	7.652	4.847
	Provisions	0.000	0.000	4.360
Total Current Liabilities		24.369	14.586	17.052
Net Current Assets		3.395	5.544	0.362
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		10.611	13.226	8.569

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	12.883	10.343	45.596
		Other Income	0.000	0.000	0.000
		TOTAL (A)	12.883	10.343	45.596
Less	EXPENSES
		Selling and Distribution Expenses
		Office Expenses	11.972	8.268	41.412
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	11.972	8.268	41.412
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.911	2.075	4.184
Less	FINANCIAL EXPENSES (D)		0.490	0.631	0.556
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.421	1.444	3.628
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.677	0.737	0.689
	PROFIT BEFORE TAX (E-F) (G)		(0.256)	0.707	2.939
Less	TAX (H)		(0.078)	0.233	0.953
	PROFIT AFTER TAX (G-H) (I)		(0.178)	0.474	1.986
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.426	0.901	2.888
	BALANCE CARRIED TO THE B/S		0.605	0.426	0.901
	Earnings Per Share (Rs.)		(0.67)	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(1.38)	4.58	4.35
Net Profit Margin (PBT/Sales)	(%)	(1.98)	6.83	6.44
Return on Total Assets (PBT/Total Assets}	(%)	(0.73)	2.54	11.47
Return on Investment (ROI) (PBT/Networth)		(0.05)	0.15	0.72
Debt Equity Ratio (Total Liability/Networth)		7.05	5.15	5.33
Current Ratio (Current Asset/Current Liability)		1.13	1.38	1.02

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE

The directors are glad to report that turnoverwise there has been improvement in company’s performance during the year under report. The company derived a sales turnover of Rs. 12.900 millions higher by 24.55% of the previous years sales turnover of Rs. 10.300 millions. however, owing to rising working costs, particularly the personnel cost, the company earned a lower profit before depreciation of Rs. 1.444 millions that the company earned last year after charging depreciation of Rs. 0.677 million. The company suffered a loss of Rs. 0.256 million for the year under report before tax as against profit before tax of Rs. 0.707 earned last years.

FIXED ASSETS:

· Flat

· Land

· Compound Wall

· Road

· Garden Development

· Building

· Machinery

· UPS

· Computers

· Furniture

· Mobile Cell Phone

· Dogmatic Caliper

· Water Purifier

· Maruthi Omni

· Laser Printer

· Computer Laptop

FORM 8

Corporate identity number of the company	U28920KA1996PTC019660
Name of the company	PACMAC ENGINEERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	437-C, Baikampady Industrial Area, New Mangalore 575011, Karnataka, India
This form is for	Modification of charge
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	Karnataka Bank Limited, Panambur Branch, Mangalore 575010, Karnataka, India Email: mlr.panambur@ktkbank.com
Nature of instrument creating charge	Hypothecation Agreement Dated 16.07.2009 For Rs.2.300 millions For Working Capital Hypothecation Agreement Dated 16.07.2009 For Rs.2.000 millions For Working Capital(Shipping Loan) Take Delivery Letter And D.P Note Dated 16.07.2009 For Rs.0.500 millions For Bank Guarantee
Date of instrument Creating the charge	16.07.2009
Amount secured by the charge	Rs. 4.800 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Overdraft:PLR+1% i.e.15% p.a. AT present shipping loan: as per the credit sanction intimation Terms of repayment Overdraft: Running Account Repayable On Demand Subject To Annual Renewal Shipping Loan:Out Of Procceds Of Export Bills/By Realisation Of Export Bills Margin Overdraft:25% On Stocks and Bookdebts (Of Not More Than 90 Days) Shipping Loan:25% Aganist Stock/Advance Paid To Suppliers For Pre-Shipmemt Credit Bank Guarantee: 25% Extent and operation of the charge Overdraft Loan Limit Of Rs.2.300 millions, Shipping Loan Limit Of Rs.2.000 millions and Bank Guarantee Limit Of Rs.0.500 millions. Thus The Total Credit Limit Has Been Increased From The Existing Limit Of Rs.3.000 millions To Rs.4.800 millions.
Short particulars of the property charged (Including location of the property)	Hypothecation Of Structural Steel Fabrications, Hot and Cold Rolling Machine,Pipe Extruding Machine,Stamping and Pressing Machine Etc. Stock-In-Trade Of Raw Materials,Finished and Semi-Finished Goods Of M.S.Rods/Steel Etc. Stacked/Installed/Parked In The Companys Factory At 437-C,Industrial Area, Baikampady, Mangalore And Debts Arising Out Of Sales Made From Time To Time
Date of instrument modifying the charge	12.12.2001
Particulars of the present modification	Fresh Shipping Loan Of Rs.2.000 millions, Renewal Of Od Facility Of Rs.2.300 millions And Bank Guarantee Of Rs.0.500 millions. Hence The Total Credit Limits Have Been Increased From Existing Rs.3.000 millions To Rs.4.800 millions.

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

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.56.42
UK Pound	1	Rs.87.37
Euro	1	Rs.69.95

INFORMATION DETAILS

Report Prepared by :

PRL

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.