MIRA INFORM REPORT

Report Date :

17.03.2012

IDENTIFICATION DETAILS

Name :	VENSON ELECTRIC PRIVATE LIMITED
Registered Office :	No. 331, 9^th Cross, 4^th Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	17.02.2000
Com. Reg. No.:	08-026414
Capital Investment / Paid-up Capital :	Rs.20.000 Millions
CIN No.: [Company Identification No.]	U31909KA2000PTC026414
TAN No.: [Tax Deduction & Collection Account No.]	BLRV03677C
PAN No.: [Permanent Account No.]	AABCV7157P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Control and Relay Panels.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 190000
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 :	No. 331, 9^th Cross, 4^th Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka, India
Tel. No.:	91-80-28360223/ 28361208
Fax No.:	91-80-28360223
E-Mail :	brgopalarao@yahoo.co.in info@vensonelectric.com venson@vsnl.com
Website :	www.vensonelectric.com

DIRECTORS

As on 26.09.2011

Name :

Mr. Sathyanarayana Venkata Rama Sastry Manchanahalli

Designation :

Managing director

Address :

# 68, Sathyanarayana Layout, 3^rd Stage, 4^th Block, Basaveshwaranagra, Bangalore – 560079, Karnataka, India

Date of Birth/Age :

13.04.1945

Date of Appointment :

17.02.2000

DIN No.:

00271610

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U31909KA1990PTC011138	JVS ELECTRONICS PRIVATE LIMITED	Managing director	14/08/1990	14/08/1990	-	Active	NO
2	U31909KA2000PTC026414	VENSON ELECTRIC PRIVATE LIMITED	Managing director	17/02/2000	17/02/2000	-	Active	NO

Name :

Anagha Satyanarayana Manchanahalli

Designation :

Director

Address :

# 68, Sathyanarayana Layout, 3^rd Stage, 4^th Block, Basaveshwaranagra, Bangalore – 560079, Karnataka, India

Date of Appointment :

17.02.2000

DIN No.:

00287494

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U31909KA2000PTC026414	VENSON ELECTRIC PRIVATE LIMITED	Director	17/02/2000	17/02/2000	-	Active	NO
2	U31909KA1990PTC011138	JVS ELECTRONICS PRIVATE LIMITED	Director	1/11/2004	1/11/2004	-	Active	NO

Name :

Aaryaa Satyanarayana Manchanahalli

Designation :

Director

Address :

# 68, Sathyanarayana Layout, 3^rd Stage, 4^th Block, Basaveshwaranagra, Bangalore – 560079, Karnataka, India

Date of Appointment :

17.02.2000

DIN No.:

00286187

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U31909KA2000PTC026414	VENSON ELECTRIC PRIVATE LIMITED	Director	17/02/2000	17/02/2000	-	Active	NO
2	U31909KA1990PTC011138	JVS ELECTRONICS PRIVATE LIMITED	Director	1/11/2004	1/11/2004	-	Active	NO

Name :

Mrs. Nagarathna Ballupura Krishnappa

Designation :

Director

Address :

# 68, Sathyanarayana Layout, 3^rd Stage, 4^th Block, Basaveshwaranagra, Bangalore – 560079, Karnataka, India

Date of Appointment :

01.04.2005

DIN No.:

00286066

Name :

Mr. Grish R Chaitanya

Designation :

Director

Address :

# 68, Sathyanarayana Layout, 3^rd Stage, 4^th Block, Basaveshwaranagra, Bangalore – 560079, Karnataka, India

Date of Appointment :

01.02.2010

DIN No.:

00290909

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U32102KA1996PTC020230	CAMBRIDGE TECHNOLOGY INDIA PRIVATE LIMITED	Director	4/04/1996	4/04/1996	-	Active	NO
2	U01117KA2009PTC050260	ANUPAANA HERBS PRIVATE LIMITED	Director	26/06/2009	26/06/2009	-	Active	NO
3	U31909KA2000PTC026414	VENSON ELECTRIC PRIVATE LIMITED	Director	1/02/2010	1/02/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.09.2011

Names of Shareholders	No. of Shares
M V Sathyanaryana	104000
Nagrathna	54000
M S Anagha	21595
M S Aaryaa	21595
Grish R Chaitanya	5
HUF	4400

Equity Share Break up (Percentage of Total Equity)

As on 26.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Control and Relay Panels.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of Mysore, SME City Credit Centre, 2^nd Floor, Rangarao Road, Shankarpuram, Bangalore – 560004, Karnataka, India

· The National Co-operative Bank Limited

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
State Bank of Mysore – Cash Credit	12.324	12.442
The National Co-operative Bank Limited – Cash Credit	0.056	0.000
The National Co-operative Bank Limited – MT Term Loan	2.478	0.000
Swaraj Mazda The National Co-operative Bank Limited – Loan A/c	0.699	0.000
Car Loan Account Account No. 64022003997	0.000	0.310
Total	15.557	12.752
Note: Secured by Book debts, Stock and Personnel Guarantee of Chairman and Managing Director
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Mrs. Anagha Chaitanya R – Loan A/c	3.302	0.000
Mr. M. V. Satyanarayana – Loan A/c	6.676	0.000
Total	9.978	0.000

Banking Relations :	--
Auditors :
Name :	B R Gopala Rao and Company Chartered Accountants
Address :	1212, 4^th Main, E-Block, Rajajinagar, 2^nd Stage, Bangalore – 560010, Karnataka, India
PAN.:	ADJPR1918E

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 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		20.000	20.000	20.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		29.397	28.185	28.561
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		49.397	48.185	48.561
LOAN FUNDS
1] Secured Loans		15.557	12.752	5.889
2] Unsecured Loans		9.978	0.000	0.000
TOTAL BORROWING		25.535	12.752	5.889
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		74.932	60.937	54.450
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.787	7.456	7.326
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		4.105	4.000	4.000
DEFERREX TAX ASSETS		0.180	0.208	0.140
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	17.301	6.999	10.821
	Sundry Debtors	61.229	42.315	40.995
	Cash & Bank Balances	6.293	11.028	3.829
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	21.139	14.156	15.867
Total Current Assets		105.962	74.498	71.512
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	44.063	21.960	19.015
	Other Current Liabilities	3.039	2.417	3.011
	Provisions	0.000	0.848	6.502
Total Current Liabilities		47.102	25.225	28.528
Net Current Assets		58.860	49.273	42.984
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		74.932	60.937	54.450

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	TURNOVER		158.220	126.116	137.278
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		3.759	4.094	20.664
Less	FINANCIAL EXPENSES		3.110	1.276	2.586
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		0.649	2.818	18.078
Less/ Add	DEPRECIATION/ AMORTISATION		1.595	1.290	1.734
	PROFIT/ (LOSS) BEFORE TAX		(0.946)	1.528	16.344
Less	TAX		0.399	1.056	6.640
	PROFIT/ (LOSS) AFTER TAX		(1.345)	0.472	9.704
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	2.709	1.834	5.825
	TOTAL EARNINGS		2.709	1.834	5.825
	IMPORTS
		Raw Materials and Components	1.617	4.952	6.800
	TOTAL IMPORTS		1.617	4.952	6.800
	Earnings/ (Loss) Per Share (Rs.)		(0.67)	NA	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Return on Total Assets (PBT/Total Assets}	(%)	0.80	1.86	29.23
Return on Investment (ROI) (PBT/Networth)		0.02	0.03	0.34
Debt Equity Ratio (Total Liability/Networth)		1.47	0.79	0.71
Current Ratio (Current Asset/Current Liability)		2.24	2.95	2.51

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE OF THE COMPANY

During the year the Company achieved a turnover of Rs.158.220 Millions (PY 126.116 Millions). After paying interest and financial charges of Rs.3.110 Millions (PY 1.276 Millions) and providing depreciation of Rs.1.595 Millions (PY 1.290 Millions) and after providing for taxation of Rs.0.218 Millions (PY 0.848 Million) and deferred Tax Asset of Rs.0.181 Millions (PY 0.208 Million), the Company earned a net Profit of Rs. (1.345) Millions (PY 0.472Million).

Bankers Charges Report as per Registry

Corporate identity number of the company	U31909KA2000PTC026414
Name of the company	VENSON ELECTRIC PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No.331, 9th Cross, 4th Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka, India Email : brgopalarao@yahoo.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80026942
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	State Bank of Mysore, SME City Credit Centre, 2^nd Floor, Rangarao Road, Shankarpuram, Bangalore – 560004, Karnataka, India Email : rjr.cs69@gmail.com
Nature of instrument creating charge	Agreement of loan cum hypothecation Form ADV-2.
Date of instrument Creating the charge	07.10.2011
Amount secured by the charge	Rs.62.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest WCL/TL - at 3.50% above BR, effective rate 14.25% p.a. at monthly rests Penal INT : max 2% p.a. over the normal rate Terms of repayment WCL - on demand. Advance is for a period of 12 months Term Loan: in 36 months, including moratorium period of 06 months to be paid in 29 monthly installments of Rs.0.166 Million each and the final installment of Rs.0.186 Million. Interest to be serviced separately as and when applied. Interest to be serviced during the moratorium period also BG - period of BG is 18 months subject to renewal after 12 months from the date of sanction Margin RM/SIP/FG - 25% Receivables - 50% BG - 10% Term Loan - 25.37% Extent and operation of the charge Exclusive first charge on the assets of the company and to the full extent Others CC Rs. 27.500 Millions; TL Rs. 5.000 Millions; BG Rs.30.000 Millions; Total Rs.62.500 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	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, vehicles etc.
Date of instrument modifying the charge	19.09.2011
Particulars of the present modification	For the existing charge of Rs.62.500 Millions additional security of current assets and other movables described and obtained for the limit. All other terms and conditions and including charge on existing securities remain unchanged.

FIXED ASSETS

· Plant and Machinery

· Moulding Tools

· Office Equipments

· Furniture and Fixtures

· Vehicles

· Software

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.50.31
UK Pound	1	Rs.79.05
Euro	1	Rs.65.83

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	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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		43

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.