MIRA INFORM REPORT

Report Date :

16.05.2012

IDENTIFICATION DETAILS

Name :	MEGAWIN SWITCHGEAR PRIVATE LIMITED
Registered Office :	35/1, 35/2, 35/3, Narasothipatty, P.B. No.434, Alagapuram Post, Perumal Malai Adivaram, Salem - 636 004, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.10.2005
Com. Reg. No.:	18-012211
Capital Investment / Paid-up Capital :	Rs.50.200 millions
CIN No.: [Company Identification No.]	U31200TZ2005PTC012211
TAN No.: [Tax Deduction & Collection Account No.]	CHEM08714G
PAN No.: [Permanent Account No.]	AAECM4516E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Medium Voltage Switchgear Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 2048000
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/ Head Office/ Factory :	35/1, 35/2, 35/3, Narasothipatty, P.B. No.434, Alagapuram Post, Perumal Malai Adivaram, Salem - 636 004, Tamilnadu, India
Tel. No.:	Board: 91-427-2330498/ 2330288/ 2447099/ 2430571 Direct: 91-427-2430568
Fax No.:	91-427-2330502
E-Mail :	info@megawin.co.in salem@megawin.co.in vak333@gmail.com
Website :	http://www.megawinswitchgear.com
Windmill :	Thandyarkulam Village, Near Panagudi , Tirunelveli District, Tamilnadu, India
Branch Office :	Located at: v Chennai v Bangalore v Mumbai v Pune v Hyderabad v Kerala v Bhopal v Vadodara v Delhi v Kolkata

DIRECTORS

As on 16.09.2011

Name :

Mr. Subramaniam Ganesan

Designation :

Managing Director

Address :

No.12K, Gandhi Road, Salem – 636 007, Tamilnadu, India

Date of Birth/Age :

13.09.1954

Qualification :

B.E., (Electrical Engineering)

Experience :

31 Years

Date of Appointment :

12.10.2005

DIN No.:

00003449

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	U31102TZ2003PTC010585	Hiiwin (IND) Transformer Private Limited	Director	12-05-03	12-05-03	Under Process of Striking off	NO
2	U31200TZ2005PTC012211	Megawin Switchgear Private Limited	Managing director	13-10-05	12-10-05	Active	NO
3	U45200TN2006PTC060950	PPB Construction Private Limited	Director	23-09-07	23-09-07	Active	NO
4	U72200TZ2011PTC016864	Shriganesh Biztech Private Limited	Managing director	17-03-11	17-03-11	Active	NO

Name :

Mrs. Jayanthy Ganesan

Designation :

Whole-Time Director

Address :

No.13K, Gandhi Road, Salem – 636 007, Tamilnadu, India

Date of Birth/Age :

12.12.1960

Qualification :

M.A.

Experience :

16 Years

Date of Appointment :

30.10.2009

DIN No.:

00003441

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	U31102TZ2003PTC010585	Hiiwin (IND) Transformer Private Limited	Director	12-05-03	12-05-03	Under Process of Striking off	NO
2	U31200TZ2005PTC012211	Megawin Switchgear Private Limited	Whole-time director	30-10-09	12-10-05	Active	NO
3	U45200TN2006PTC060950	PPB Construction Private Limited	Director	23-09-07	23-09-07	Active	NO
4	U72200TZ2011PTC016864	Shriganesh Biztech Private Limited	Director	17-03-11	17-03-11	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 16.09.2011

Names of Shareholders	No. of Shares
S. Ganesan	4518000
G. Jayanthi Ganesan	502000
Total	5020000

As on 16.09.2011

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

BUSINESS DETAILS

Line of Business :

Manufacturer of Medium Voltage Switchgear Products.

Products :

Item Code No. (ITC Code)	85.35
Product Description	Switch Gears
Item Code No. (ITC Code)	85.37
Product Description	Circuit Breakers
Item Code No. (ITC Code)	85.37
Product Description	Transformers
Item Code No. (ITC Code)	85.37
Product Description	Others
Item Code No. (ITC Code)	85.37
Product Description	Power Generation

PRODUCTION STATUS (AS ON 31.03.2010)

a. Licensed capacity is not applicable to the Company.

b. Installed capacity is as certified by the management and accepted by auditor, being a technical matter.

Switchgears and Power Control Equipments

5000 Nos.

Particulars	Unit	Actual Production
Switch Boards	Nos.	2366
Circuit Breakers	Nos.	1963
Transformers	Nos.	85
Others	Nos.	3676
Power Generation	Units	4581600

GENERAL INFORMATION

Customers :

v TNEB

v PSEB

v MSEB

v NLC

v KPTCL

v DVB

v Emami

v Tuticorin Port Trust

v DCM Daewoo

v MM Forging Limited

v Tamilnadu Newsprint Limited

v Seshasayee Paper Boards

No. of Employees :

Not Available

Bankers :

State Bank of India, Siruthozil Branch, 120/2 and 120/3, Cherry Road, Chinnayan Towers, Salem – 636 007, Tamilnadu, India

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Rupee term loans banks secured	35.050	46.450
Working capital loans banks secured	438.791	361.176
Interest accrued due other debt secured	0.418	0.506
Total	474.259	408.132

Banking Relations :	--
Auditors :
Name :	V. Ananthakrishnan Chartered Accountant
Address :	18, Seventh Cross, Maravaneri Extension, Salem - 636 007, Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	ABYPA7169F
Associates :	v P.P.B. Constructions Private Limited v Megawin Fabrications

CAPITAL STRUCTURE

As on 16.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs.60.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5020000	Equity Shares	Rs.10/- each	Rs.50.200 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		50.200	50.200	50.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		461.874	375.633	277.852
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		512.074	425.833	328.052
LOAN FUNDS
1] Secured Loans		474.259	408.132	447.499
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		474.259	408.132	447.499
DEFERRED TAX LIABILITIES		30.678	31.686	31.140
TOTAL		1017.011	865.651	806.691
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		250.163	255.207	266.967
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		3.000	2.500	2.500
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	592.273	329.816	221.138
	Sundry Debtors	328.853	392.348	286.871
	Cash & Bank Balances	61.370	60.072	74.837
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	169.180	166.969	144.237
Total Current Assets		1151.676	949.205	727.083
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	206.272	198.149	109.037
	Other Current Liabilities	83.955	90.207	39.140
	Provisions	97.601	52.905	41.765
Total Current Liabilities		387.828	341.261	189.942
Net Current Assets		763.848	607.944	537.141
MISCELLANEOUS EXPENSES		0.000	0.000	0.083
TOTAL		1017.011	865.651	806.691

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales and Services	1095.178	1018.260	909.563
		Other Income	7.412	11.520	23.104
		TOTAL (A)	1102.590	1029.780	932.667
Less	EXPENSES
		Material Cost	882.671	637.275	605.976
		Personal Cost		66.852	50.718
		Other Operative Expenses		85.760	67.312
		TOTAL (B)	882.671	789.887	724.006
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		219.919	239.893	208.661
Less	FINANCIAL EXPENSES (D)		58.836	59.138	54.770
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		161.083	180.755	153.891
Less/ Add	DEPRECIATION/ AMORTISATION (F)		30.567	29.388	26.352
	PROFIT BEFORE TAX (E-F) (G)		130.516	151.367	127.539
Less	TAX (H)		43.688	53.450	43.978
	PROFIT AFTER TAX (G-H) (I)		86.828	97.917	83.561
Less	Prior Period Items		0.587	0.136	0.130
	SURPLUS CARRIED FORWARD		86.241	97.781	83.431
	IMPORTS
		Raw Materials	NA	83.413	65.164
		Capital Goods	NA	4.208	28.798
		Stores & Spares	NA	1.299	0.833
	TOTAL IMPORTS		NA	88.920	94.795
	Earnings Per Share (Rs.)		16.70	19.48	16.62

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.87	9.51	8.96
Net Profit Margin (PBT/Sales)	(%)	11.92	14.87	14.02
Return on Total Assets (PBT/Total Assets}	(%)	9.31	12.57	12.83
Return on Investment (ROI) (PBT/Networth)		0.25	0.36	0.39
Debt Equity Ratio (Total Liability/Networth)		1.68	1.76	1.94
Current Ratio (Current Asset/Current Liability)		2.97	2.78	3.83

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	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	Yes
17) Major suppliers	No
18) Major customers	Yes
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

Bankers Charges Report as per Registry

Corporate identity number of the company	U31200TZ2005PTC012211
Name of the company	MEGAWIN SWITCHGEAR PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	35/1, 35/2, 35/3, Narasothipatty, P.B. No.434, Alagapuram Post, Perumal Malai Adivaram, Salem - 636 004, Tamilnadu, India E-Mail: vak333@gmail.com
This form is for	Modification of charge
Charge identification number of the modified	10001560
Type of charge	Immovable Property Any interest in immovable property Book Debts Movable Property
Particular of charge holder	State Bank of India, Siruthozil Branch, 120/2 and 120/3, Cherry Road, Chinnayan Towers, Salem – 636 007, Tamilnadu, India E-Mail: subramanian.velayutham@sbi.co.in
Nature of description of the instrument creating or modifying the charge	1. Supplemental agreement of loan for increase in the overall limit - Form C.1-A 2. Supplemental agreement of hypothecation of goods and assets for increase in the overall limit - Form C.2-A
Date of instrument Creating the charge	07.12.2011
Amount secured by the charge	Rs.997.500 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: As stipulated by the bank from time to time Terms of Repayment: As stipulated by the bank from time to time Margin: As stipulated by the bank from time to time Extent and Operation of the charge: Exclusive charge by way of hypothecation of raw materials, work in progress, finished goods, consumable goods, receivables and other current assets of the company, Fixed assets of the company including Land and building and Plant and machinery and the charge will continue till the entire dues is discharged.
Short particulars of the property charged	Exclusive charge on entire current assets of the company namely raw materials, work in progress, finished goods, consumable goods, receivables and other current assets of the company, exclusive charge on fixed assets of the company including Land and building and Plant and machinery and the charge will continue till the entire dues is discharged.
Date of latest modification prior to the present modification	16.12.2010
Particulars of the present modification	The total Credit limit has been increased from Rs.949.700 millions to Rs.997.500 millions

FIXED ASSETS:

v Land

v Buildings

v Furniture

v Plant and Machinery

v Wind Mill

v Vehicles

v Computer

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.53.84
UK Pound	1	Rs.86.72
Euro	1	Rs.69.17

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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.