MIRA INFORM REPORT

Report Date :

09.03.2012

IDENTIFICATION DETAILS

Name :	AVON METERS PRIVATE LIMITED
Registered Office :	116, Ram Darbar, Industrial Area, Phase II, Chandigarh-160001
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.06.1995
Com. Reg. No.:	53-016650
Capital Investment / Paid-up Capital :	Rs.30.000 Millions
CIN No.: [Company Identification No.]	U31300CH1995PTC016650
TAN No.: [Tax Deduction & Collection Account No.]	PTLA11380F
PAN No.: [Permanent Account No.]	AABCA3428Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Energy Meters.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 320000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. 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 :	116, Ram Darbar, Industrial Area, Phase II, Chandigarh-160001, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	twinkle45897@rediffmail.com

DIRECTORS

As on 30.09.2011

Name :

Mr. Anil Kumar Gupta

Designation :

Director

Address :

# 1150, Sector 7, Panchkula-134109, Haryana, India

Date of Birth/Age :

03.10.1961

Date of Appointment :

25.07.1997

Din No.:

01144744

Name :

Mr. Natwar Goyal

Designation :

Director

Address :

House No. 1295, Sector 19-B, Chandigarh-160019, India

Date of Birth/Age :

10.10.1985

Date of Appointment :

27.12.2006

Din No.:

01291101

Name :

Mr. Ram Niwas Gupta

Designation :

Director

Address :

108, NAC, Shivalik Enclave, Manimajra, Chandigarh-160017, India

Date of Birth/Age :

15.02.1951

Date of Appointment :

25.07.1997

Din No.:

01573048

Name :

Mr. Nikhil Goel

Designation :

Director

Address :

House No. 3135, Sector 21-D, Chandigarh-160017, India

Date of Birth/Age :

29.05.1980

Date of Appointment :

21.09.1998

Din No.:

01741446

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U31300CH1995PTC016650	AVON METERS PRIVATE LIMITED	Director	21-09-98	21-09-98	Active	NO
2	L24231CH1996PLC017755	PARABOLIC DRUGS LIMITED	Director	29-09-11	08-11-10	Active	NO

Name :

Mr. Yogender Mohan Jindal

Designation :

Director

Address :

House No. 178, Sector 18-A, Chandigarh-160017, India

Date of Birth/Age :

18.01.1949

Qualification :

21.06.1995

Din No.:

01793080

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL1957PTC002810	JYOTI LAXMAN ROLLER FLOUR MILLS PRIVATE LIMITED	Director	20-05-87	20-05-87	Active	NO
2	U31300CH1995PTC016650	AVON METERS PRIVATE LIMITED	Director	21-06-95	21-06-95	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Yogender Mohan Jindal	514500
Ashok Goyal	35000
Shanty Sarup	20000
R.M. Jindal	45000
Shakuntala Devi	20000
Rukmani Devi	77500
Mukesh Rani	33000
Swati	7500
Deepa	7500
Ashu	7000
Anil Kumar Gupta	250000
Prem Chand	20000
Sunita Gupta	60000
Manju Gupta	43500
Shakuntala Goel	70000
Urmil Goel	70000
R.N. Gupta	196500
T.N. Goel	381500
Gulab Singh Goel	25000
Sunita Goel	20000

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Energy Meters.

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Actual Production [p.a.] [nos.]
Single Phase Maters	397912
Three Phase Meters	115072

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Small Industrial Development Bank of India, SCO 145-146, First and Second Floors, Sector 17 C, Chandigarh-160017, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Union Bank of India [Secured against hypothecation of stocks and book debts and future secured by first charge on the fixed assets of the company in addition to the personal guarantee of the directors]	58.613	136.647
HDFC Car Loan [Secured against hypothecation of Car Honda Accord]	0.000	0.340
HDFC Car Loan [Secured against hypothecation of Car Skoda Laura]	0.000	0.340
HDFC Car Loan [Secured against hypothecation of Car Skoda Laura]	0.00	0.340
HDFC Car Loan [Secured against hypothecation of Car Skoda Octavia]	0.000	0.224
HDFC Car Loan [Secured against hypothecation of Car Skoda Laura]	0.000	0.354
HDFC Car Loan [Secured against hypothecation of Car Skoda Laura]	0.000	0.381
Tata Finance Limited Car Loan [Secured against hypothecation of Car Skoda Octavia]	0.000	0.324
HDFC Car Loan [Secured against hypothecation of Car BMW]	2.684	0.000
HDFC Car Loan [Secured against hypothecation of Car Mersedise]	2.515	0.000
SIDBI [Secured against hypothecation of 3 Nos. of Moulding Machines]	5.043	0.000
Total	68.855	138.950
Unsecured Loan
From Share Holders	14.306	13.240
From Body Corporate	82.648	60.094
From Others	36.368	30.230
Total	133.322	103.564

Banking Relations :	--
Auditors :
Name :	Vinod Kumar and Associates Chartered Accountants
Address :	1048, Sector 18-C, Chandigarh-160019, India
Tel. No.:	91-172-5077789
Fax No.:	91-172-5077790
Pan No.:	AADFV0820A

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5250000	Equity Shares	Rs.10/- each	Rs.52.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 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		30.000	30.000	30.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		52.173	46.054	36.735
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		82.173	76.054	66.735
LOAN FUNDS
1] Secured Loans		68.855	138.950	143.061
2] Unsecured Loans		133.322	103.564	119.191
TOTAL BORROWING		202.177	242.514	262.252
DEFERRED TAX LIABILITIES		9.572	8.284	7.788
TOTAL		293.922	326.852	336.775
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		95.572	77.460	65.074
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	54.034	58.645	68.212
	Sundry Debtors	166.540	248.540	274.588
	Cash & Bank Balances	34.986	33.638	21.985
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	36.546	34.528	38.449
Total Current Assets		292.106	375.351	403.234
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	89.251	119.430
	Other Current Liabilities	2.461	3.755	120.564
	Provisions	2.044	2.774	10.969
Total Current Liabilities		93.756	125.959	131.533
Net Current Assets		198.350	249.392	271.701
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		293.922	326.852	336.775

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	423.090	592.179	566.423
		Commissioning and Installation	0.000	0.010	0.034
		Other Income	9.315	11.800	28.462
		TOTAL (A)	432.405	603.989	594.919
Less	EXPENSES
		Material and Other Manufacturing Expenses	324.280	513.190	493.850
		Personnel Expenses	16.199	10.775	8.214
		Administration and Selling Expenses	30.135	31.859	44.523
		Increase / Decrease in Stocks	16.296	1.455	(6.155)
		TOTAL (B)	386.910	557.279	540.432
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		45.495	46.710	54.487
Less	FINANCIAL EXPENSES (D)		30.432	29.382	19.074
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		15.063	17.328	35.413
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.768	4.788	4.060
	PROFIT BEFORE TAX (E-F) (G)		9.295	12.540	31.353
Less	TAX (H)		3.175	3.217	11.618
	PROFIT AFTER TAX (G-H) (I)		6.120	9.323	19.735
	Earnings Per Share (Rs.)		2.04	3.11	1.63

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.42	1.54	3.32
Net Profit Margin (PBT/Sales)	(%)	2.20	2.12	5.54
Return on Total Assets (PBT/Total Assets}	(%)	2.40	2.77	6.69
Return on Investment (ROI) (PBT/Networth)		0.11	0.16	0.47
Debt Equity Ratio (Total Liability/Networth)		3.60	4.84	5.90
Current Ratio (Current Asset/Current Liability)		3.12	2.97	3.07

LOCAL AGENCY FURTHER INFORMATION

CONTINGENT LIABILITIES: [AS ON 31.03.2011]

1. Bank guarantee in favour of third parties Rs.205.106 Millions

2. Letter of credit in favour of Avnet Asia Pte Limited. Singapore for nil

3. Letter of credit in favour of Inabata Singapore PTC Limited, Singapore for US $ 99200

4. Inland letter of credit in favour of Mitsubhishi Corporation (India) Private Limited Rs.7.204 Millions

5. Inland letter of credit in favour of CIPSA RIC India Private Limited Rs.4.212 millions.

FIXED ASSETS:

· Land

· Plant and Machinery

· Furniture and Fixtures

· Tools and Equipments

· Office Equipments

· Computer

· Car

· Mobile Phone

· Electrical Installation

· Scooter

· Refrigerator

· Water Cooler

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.50.57
UK Pound	1	Rs.79.57
Euro	1	Rs.66.50

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--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	NO
--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		44

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.