MIRA INFORM REPORT

Report Date :

13.06.2012

IDENTIFICATION DETAILS

Name :	NEXTFIRST ENGINEERING TECHNOLOGIES PRIVATE LIMITED
Registered Office :	355, 7^thCross Wilson Garden, Bangalore-560027, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.08.2004
Com. Reg. No.:	08-034459
Capital Investment / Paid-up Capital :	34287 Euro
CIN No.: [Company Identification No.]	U31103KA2004PTC034459
TAN No.: [Tax Deduction & Collection Account No.]	BLRN02553F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Industrial Automation Products.
No. of Employees :	65 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	Euro 30875
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to slow. The company can be considered normal for business dealings on a 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

LOCATIONS

Registered Office :	355, 7^thCross Wilson Garden, Bangalore-560027, Karnataka, India
Tel. No.:	91-80-22485450/22107350
Fax No.:	91-80-22222232
E-Mail :	balasubramanian.m@nextfirst.com
Website :	http://www.nextfirst.com
Factory :	69, Kaveriappa Layout, BTM Second Stage, Bangalore, Karnataka, India

DIRECTORS

As on 30.09.2011

Name :	Mr. Mahadevan Balasubramanian
Designation :	Director
Address :	355, 7^thCross Wilson Garden, Bangalore-560027, Karnataka, India
Date of Birth/Age :	03.07.1948
Date of Appointment :	09.08.2004
Din No.:	00517376
Name :	Mr. Jayendran Balasubramanian
Designation :	Director
Address :	355, 7^thCross Wilson Garden, Bangalore-560027, Karnataka, India
Date of Birth/Age :	06.06.1978
Date of Appointment :	09.08.2004
Din No.:	00517387

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Jayendran Balasubramanian	70000
Mahadevan Balasubramanian	50000
Veena Jayendran Radhakrishna	37000
Sudeep Sadanand Pradhan	7500
Vijaya Balasubramanian	50000
Viswanathan Nagarajan KKN	500
Ramesh Gopalakrishnan	2500
Giridhar Rajan	500
Ramprasad Prabhakar Rao	500
Rajesh P K	500
Sagar Arjunwadkar	600
Arvind Krishna Seshadri	600
Avinash T Mishra	200
Kumbam Gautam Reddy	24510
Total	244910

As on 30.03.2012

Names of Allottees	No. of Shares
Mahadevan Balasubramanian	260000
Veena Jayendran Radhakrishna	150000
Jayendran Balasubramanian	90000
Total	500000

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	85.00
Other	15.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Industrial Automation Products.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Special Purpose Machine Design	84752900

Imports :

Countries :

· Europe

· USA

GENERAL INFORMATION

Suppliers :

Festo Pneumatics

Customers :

GE India Technology

No. of Employees :

65 [Approximately]

Bankers :

State Bank of India, Wilson Garden Branch, Bangalore-560027, Karnataka, India

Facilities :

SECURED LOAN	As on 31.03.2011 [In Euro]	As on 31.03.2010 [In Euro]
Overdraft account and demand loan with State Bank of India [Secured by deposit of title deeds of property bearing No. 355, 7^th Cross, Wilson Garden, Bangalore of the relative of directors]	169903	350564
Other secured loan [Secured by receivables]	2857	2431
Loan against fixed deposit [Secured by deposit of fixed deposit receipt]	4060	4526
Total	176820	357521
UNSECURED LOAN
Loans from directors, shareholders, relatives and friend	90479	42003
Loan from other	16904	32004
Total	107383	74007

Cash Credit Euro 285714.

Bank Guarantees Euro 321428.

Banking Relations :	--
Auditors :
Name :	B. Shekar Chartered Accountants
Address :	20, 12^th Cross, 1^st Main Hanuman Laout, RMV, 2^nd Stage, Sanjaynagar, Bangalore-560094, Karnataka, India
Tel. No.:	91-80-23416129/23518366
Fax No.:	91-80-23518366
E-Mail :	rajashekarbs@yahoo.com
Pan No.:	ABFFS6354P

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	0.14 Euro Each	105000 Euro

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
744910	Equity Shares	0.14 Euro Each	104287 Euro

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	0.14 Euro Each	35000 Euro

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
244910	Equity Shares	0.14 Euro Each	34287 Euro

FINANCIAL DATA

[all figures are in Euro]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		34287	34287	34287
2] Share Application Money		000	000	000
3] Reserves & Surplus		332212	332212	332212
4] (Accumulated Losses)		(212122)	(213835)	(44411)
NETWORTH		154377	152664	322088
LOAN FUNDS
1] Secured Loans		176820	357521	278538
2] Unsecured Loans		107383	74007	17516
TOTAL BORROWING		284203	431528	296054
DEFERRED TAX LIABILITIES		000	000	000
TOTAL		438580	584192	618142
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		49299	70712	82721
Capital work-in-progress		375962	548343	000
INVESTMENT		000	000	000
DEFERREX TAX ASSETS		000	000	000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	52843	52064	44333
	Sundry Debtors	293431	432912	367578
	Cash & Bank Balances	48073	54500	27282
	Other Current Assets	000	56221	239226
	Loans & Advances	288219	187404	71178
Total Current Assets		682566	783101	749597
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	381193	382335	181217
	Other Current Liabilities	287354	434930	32260
	Provisions	000	000	000
Total Current Liabilities		668547	817265	213477
Net Current Assets		14019	(34164)	536120
MISCELLANEOUS EXPENSES		000	000	000
OTHERS		(700)	(699)	(699)
TOTAL		438580	584192	618142

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income
		Other Income
		TOTAL	1218572	849136	938684
Less	EXPENSES
		Office Expenses
		Administrative Expenses	1195448	985495	1055919
		Advertising Expenses
		TOTAL	1195448	985495	1055919
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		23124	(136359)	(117235)
Less/ Add	DEPRECIATION/ AMORTISATION		21412	33064	43965
	PROFIT / (LOSS) BEFORE TAX		1712	(169423)	(161200)
Less	TAX		NA	NA	000
	PROFIT / (LOSS) AFTER TAX		NA	NA	(161200)
	IMPORTS		45636	17797	NA
	Earnings Per Share (Euro)		NA	NA	(658.20)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	NA	(17.17)
Return on Total Assets (PBT/Total Assets}	(%)	0.23	(19.84)	(19.37)
Return on Investment (ROI) (PBT/Networth)		0.01	(1.11)	(0.50)
Debt Equity Ratio (Total Liability/Networth)		6.17	8.18	1.58
Current Ratio (Current Asset/Current Liability)		1.02	0.96	3.51

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	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	Yes
18) Major customers	Yes
19) Payments terms	No
20) Export / Import details (if applicable)	Yes
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

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	80031271
Corporate identity number of the company	U31103KA2004PTC034459
Name of the company	NEXTFIRST ENGINEERING TECHNOLOGIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	355, 7^thCross Wilson Garden, Bangalore-560027, Karnataka, India
Type of charge	Book Debts Movable Property (not being pledge) Floating Charge
Particular of charge holder	State Bank of India, Wilson Garden Branch, Bangalore-560027, Karnataka, India
Email	rjr.cs69@gmail.com
Nature of description of the instrument creating or modifying the charge	Supplemental agreement of loan cum hypothecation sme-4.
Date of instrument Creating the charge	29.11.2011
Amount secured by the charge	Euro 607142
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest WCL- at 7.50% above BR, effective rate 17.50% p.a. With monthly rests. Terms of Repayment WCL - On Demand. Margin RM/SFG/FG/CCS/Receivables/EPC : 25% BG : 25% For BG above 18 months : 35% Extent and Operation of the charge Exclusive first charge on the assets of the company and to the full extent. Others CC (stocks) Euro 142857; CC (Receivables) Euro 142857; BG Euro 321428; Total Euro 607142.
Short particulars of the property charged	Hypothecation of company's present and future movable fixed assets and current assets like stocks, raw materials, semi finished and finished goods, book debts, receivables, outstanding monies, bills, rights, Stores, components, furniture and fittings; other movables, plant and machinery etc.,
Date of latest modification prior to the present modification	25.09.2009
Particulars of the present modification	The amount secured by the charge stands Increased to Euro 607142. The securities above continue for the enhanced limit. All other terms and conditions remain unchanged.

FIXED ASSETS:

· Books

· Camera and Mobiles

· Computer and Software

· Electrical Equipments

· Electrification Expenses

· Furniture and Fixtures

· Guesthouse Assets

· Plant and Machinery

WEBSITE DETAILS:

HISTORY:

Subject was started in spring of 2004 to provide best in class services and customised solutions in the engineering industry. They have grown to gain experience in different streams across different industry verticals. With a dynamic team and qualified supplier base, Subject has grown into a world class multi-disciplinary solution provider.

Subject has demonstrated a strong customer focus over multiple projects through the entire engagement starting with requirement gathering through post commissioning support phase. As a result, customers have repeatedly called on them for solutions to some of their most challenging problems.

What began as a small group of passionate engineers is today a 360 degree organization with well defined functions. Subject serves customers in multiple geographies through a robust delivery process and is piloting a global foray though several successful projects overseas.

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.56.05
UK Pound	1	Rs.86.69
Euro	1	Rs.69.98

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
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		27

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.