MIRA INFORM REPORT

Report Date :

02.10.2012

IDENTIFICATION DETAILS

Name :	GMP SYSTECH ENGINEERING PRIVATE LIMITED
Registered Office :	E-46/2/3 & 4, Behind Garware Stadium, Chikal Thana Industrial Area, Aurangabad – 431210, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	26.08.1996
Com. Reg. No.:	11-102157
Capital Investment / Paid-up Capital :	Rs. 0.800 Million
CIN No.: [Company Identification No.]	U99999MH1996PTC102157
TAN No.: [Tax Deduction & Collection Account No.]	NSKG00633D
PAN No.: [Permanent Account No.]	AABCG7974M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Engineering Products
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (15)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is a company having moderate track. The management of the company has failed to file its financials with the government department since 2010. As per old, we found that the company’s financial position is very weak. Accumulated losses recorded by the company exceeds the networth. Business is active. Payments terms are unknown. Initially, the company can be considered for business dealings on a safe and 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	SE 3C
Rating Explanation	Moderate performance capability and low financial strength.
Date	May 2011

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	E-46/2/3 & 4, Behind Garware Stadium, Chikal Thana Industrial Area, Aurangabad – 431210, Maharashtra, India
Tel. No.:	91-240-2481085
Fax No.:	91-240-2481085
E-Mail :	svg1959@yahoo.com gmpsepl@gmail.com gmpsystech@rediffmail.com
Website :	http://www.gmpsystech.com

DIRECTORS

AS ON 28.09.2010

Name :

Mr. Pradeep Shridharrao Deshmukh

Designation :

Director

Address :

Plot No. 42, Mukund Housing Society, Mahajan Colony, N-2 Cidco, Aurangabad, Maharashtra, India

Date of Appointment :

26.08.1996

DIN No.:

00084973

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U99999MH1996PTC102157	GMP SYSTECH ENGINEERING PRIVATE LIMITED	Director	26/08/1996	26/08/1996	-	Active	NO
2	U25190MH2004PTC148680	SAFEGUARD CONTRACEPTIVES PRIVATE LIMITED	Additional director	13/01/2011	13/01/2011	30/09/2011	Active	NO

Name :

Mr. Shivsamb Dhondiba Hampalle

Designation :

Whole-time director

Address :

74, “Chandan”, Behind Kasliwal market, Mukundwadi, N-2, Cidco, Aurangabad – 431003, Maharashtra, India

Date of Birth/Age :

25.04.1961

Date of Appointment :

20.08.2009

DIN No.:

01962375

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U99999MH1996PTC102157	GMP SYSTECH ENGINEERING PRIVATE LIMITED	Whole-time director	20/08/2009	26/08/1996	Active	NO
2	U74900MH2011PTC216484	GRINDING SOLUTIONS PRIVATE LIMITED	Director	20/04/2011	20/04/2011	Active	NO

Name :

Mrs. Prachi Pradeep Deshmukh

Designation :

Whole-time director

Address :

Plot No. 42, Mukund Housing Society, Mahajan Colony, N-2 Cidco, Aurangabad, Maharashtra, India

Date of Birth/Age :

13.04.1967

Date of Appointment :

20.08.2009

DIN No.:

02592913

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U99999MH1996PTC102157	GMP SYSTECH ENGINEERING PRIVATE LIMITED	Whole-time director	20/08/2009	01/06/2007	-	Active	NO
2	U25190MH2004PTC148680	SAFEGUARD CONTRACEPTIVES PRIVATE LIMITED	Additional director	13/01/2011	13/01/2011	30/09/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2010

Names of Shareholders	No. of Shares
Pradeep Shridharrao Deshmukh	25980
Prachi Pradeep Deshmukh	29710
Vijaya M. Deshmukh	4170
Nanda R. Deshmukh	3800
Hasanrao S. Deshmukh	5080
Ratnamala G. Patange	4160
Digambarrao K. Deshmukh	4100
Rajabhau P. Deshmukh	3000
Total	80000

AS ON 28.09.2010

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

BUSINESS DETAILS

Line of Business :	Manufacturer of Engineering Products
Products :	Ø Pressure Vessels Ø Storage Tanks Ø Rotating Bowls Ø Screw Conveyors Ø Heat Exchangers Ø Rotary Valves etc.

GENERAL INFORMATION

Customers :

Ø Carlsberg India Private Limited

Ø Aurangabad Breweries Limited

Ø Inertia Industries Limited

Ø Lilasons Industries Limited

Ø United Spirits Limited - UB Group

Ø United Breweries Limited

Ø Arlem Breweries Limited

Ø Frigorifico Allana Limited

Ø Mother Dairy Foods Processing Limited

Ø Jain Spices

Ø Orchid Chemicals and Pharmaceuticals Limited

Ø Glenmark Pharmaceuticals Limited

Ø Johnson and Johnson Limited

Ø Lupin Laboratories Limited

Ø Wockhardt Limited

Ø Sterlite Technologies

No. of Employees :

Not Available

Bankers :

State Bank of Hyderabad

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
State Bank of Hyderabad [Hypothecation on company’s stock and Debtors and 2^nd Charge on Land and Building and Plant and Machinery]	1.848	1.953
Sales Tax Deferal Scheme Loan	2.157	2.157
Total	4.005	4.110
Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
Darshit Chit Fund	(0.060)	0.317
Total	(0.060)	0.317

Banking Relations :	--
Auditors :
Name :	Indapurkar and Mundada Chartered Accountants
Address :	Flat No. 2, Plot No. 24-26, Chandrapushpa Sankul, New Shreya Nagar, Kalda Corner, Aurangabad – 431005, Maharashtra, India
Tel. No.:	91-240-2347630/ 2344893
E-Mail :	indmunca@gmail.com
Income-tax PAN of auditor or auditor's firm :	AABFI0087J

CAPITAL STRUCTURE

AFTER 28.09.2011

Authorised Capital : Rs. 2.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 0.800 Million

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
160,000	Equity Shares	Rs. 10/- each	Rs. 1.600 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
80,000	Equity Share	Rs.10/- each	Rs. 0.800 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		0.800	0.800	0.800
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(2.611)	(2.653)	(0.926)
NETWORTH		(1.811)	(1.853)	(0.126)
LOAN FUNDS
1] Secured Loans		4.005	4.110	3.739
2] Unsecured Loans		(0.060)	0.317	0.116
TOTAL BORROWING		3.945	4.427	3.855
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2.134	2.574	3.729
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.431	1.198	1.362
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.586	0.069	0.000
DEFERREX TAX ASSETS		1.261	0.979	0.026
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.500	0.748	0.536
	Sundry Debtors	3.338	6.809	10.467
	Cash & Bank Balances	0.351	0.270	0.197
	Other Current Assets	0.612	0.076	0.000
	Loans & Advances	3.037	1.240	1.669
Total Current Assets		18.838	9.143	12.869
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.000	0.000
	Other Current Liabilities	17.407	5.468	7.949
	Provisions	3.575	3.347	2.579
Total Current Liabilities		20.982	8.815	10.528
Net Current Assets		(2.144)	0.328	2.341
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2.134	2.574	3.729

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income
		Other Income
		TOTAL	21.412	15.703
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	21.404	18.295
	PROFIT/ (LOSS) BEFORE TAX		0.008	(2.592)
Less	TAX		(0.034)	(0.865)
	PROFIT/ (LOSS) AFTER TAX		0.042	(1.727)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(2.653)	(0.926)
	BALANCE CARRIED TO THE B/S		(2.611)	(2.653)
	Earnings/ Loss Per Share (Rs.)		(0.53)	(21.59)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.20	(11.00)	N.A.
Return on Total Assets (PBT/Total Assets}	(%)	0.04	(25.07)	N.A.
Return on Investment (ROI) (PBT/Networth)		(0.00)	(1.40)	N.A.
Debt Equity Ratio (Total Liability/Networth)		(13.76)	(7.15)	(114.15)
Current Ratio (Current Asset/Current Liability)		0.90	1.04	1.22

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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 two years	Yes
12]	Profitability for last two 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	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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

Note: The registered address of the company has been shifted from N-2,MIG 11/B-57 Cidcothahre Nagar, Aurangabad, Maharashtra, India to the present w.e.f. 12.12.2009

FIXED ASSETS:

Ø Building

Ø Car-Indica

Ø Computer

Ø Chain lifting machine

Ø Furniture and Fixture

Ø Invertor

Ø Land

Ø Mobile

Ø Plant and Machinery

Ø Printers

Ø Welding Machine

WEBSITE DETAILS

PROFILE:

Subject was incorporated in 1996, to manufacture engineering products, led by our visionary Managing Director Mr. Pradeep Deshmukh, backed by a well organized and efficient management team, infrastructure and loyal clientele, GMP has been setting paradigms of quality scaling new heights of excellence.

Management:

The management of the company is handled by a dedicated team of experienced and well qualified engineers who have excellent track record of manufacturing process equipments. The team members work dedicatedly and have a passion to create the best in the industry products and solutions

Advanced Infrastructure:

GMP has a 1400 square meters manufacturing facility in Aurangabad, Maharashtra which is a leading industrial centre located about 300 KMS from Mumbai. The robust infrastructure includes in-house facilities for cutting, bending, pressing, drilling, welding, grinding, buffing, handling, measuring and testing of the offered products. The space allows us to handle large jobs e.g. recently we manufactured a 1.5 Mn gallons PA Biodiesel plant at this facility in a record time of 100 days while continuing with routine production.

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. 52.78
UK Pound	1	Rs. 85.16
Euro	1	Rs. 67.79

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--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		15

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

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.