MIRA INFORM REPORT

Report Date :

04.10.2012

IDENTIFICATION DETAILS

Name :	ELECTRONICS RELAYS (INDIA) PRIVATE LIMITED
Registered Office :	93-A, Industrial Suburb, Yeshwanthpur, Bangalore – 560022, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	16.11.1978
Com. Reg. No.:	08-003407
Capital Investment / Paid-up Capital :	Rs. 4.765 Millions
CIN No.: [Company Identification No.]	U32109KA1978PTC003407
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporter of Electronic Solid State Relays – Coil, Power Relays, Liquid Relays, Level Indicators / Controllers, Capacitor Discharge, Moulds, Solid State, 3-Phase, etc.
No. of Employees :	110 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 250000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appear some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

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

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.

INFORMATION PARTED BY

Name :	Mr. Ram
Designation :	Commercial Executive
Contact No.:	91-80-22354189
Date :	27.09.2012

LOCATIONS

Registered Office :	93-A, Industrial Suburb, Yeshwanthpur, Bangalore – 560022, Karnataka, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	mktg@eri.co.in office@ganjam.com
Website :	http://www.electronicrelaysindia.com http://www.ganjam.com
Factory :	P.B. No. 2254, 93-A, Industrial Suburb, II Stage, Yeshwanthpur, Bangalore – 560 022, Karnataka, India
Tel. No.:	91-80-22354189 / 23371434 / 23375929 / 22354190 / 41283173 / 23371753 / 23470067
Fax No.:	91-80-22357760 / 23470048 / 25571750
E-Mail :	eri@vsnl.com
Website :	www.electronicrelays.com
Branch Office :	P B No.124, No.64, Palace Road, Vasanth Nagar, Bangalore – 560 052, Karnataka, India
Tel. No.:	91-80-22354189 / 23371753 / 22354190 / 22357760
Fax No.:	91-80-22357760 / 23470048 / 23571750
E-Mail :	mktg@eri.co.in sales@eri.co.in
Website :	www.electronicrelaysindia.com

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Umesh Bimaji Ganjam

Designation :

Managing director

Address :

# 16, Embassy Palace , Flat # 104, Cunningham Road, Bangalore – 560052, Karnataka, India

Date of Birth/Age :

11.06.1954

Date of Appointment :

16.11.1978

DIN No.:

00117741

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	U32109KA1978PTC003407	ELECTRONICS RELAYS (INDIA) PRIVATE LIMITED	Managing director	16/11/1978	16/11/1978	Active	NO
2	U52393KA1980PTC004049	GANJAM NAGAPPA AND SON PRIVATE LIMITED	Managing director	30/03/2012	19/12/1980	Active	NO
3	U65990MH1991PTC063535	GAYLE HOLDINGS PRIVATE LIMITED	Director	25/08/1994	25/08/1994	Dormant	NO

Name :

Mr. Kumar Eswar Ganjam

Designation :

Director

Address :

# 16, Embassy Palace , Flat # 204, Cunningham Road, Bangalore – 560052, Karnataka, India

Date of Birth/Age :

23.04.1977

Date of Appointment :

12.07.2008

DIN No.:

00117514

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	U36911KA1994PTC015632	GANJAM JEWELLERS PRIVATE LIMITED	Director	20/01/1997	20/01/1997	Active	NO
2	U52393KA1980PTC004049	GANJAM NAGAPPA AND SON PRIVATE LIMITED	Managing director	30/03/2012	30/09/2000	Active	NO
3	U32109KA1978PTC003407	ELECTRONICS RELAYS (INDIA) PRIVATE LIMITED	Director	12/07/2008	12/07/2008	Active	NO

Name :

Mr. Eswar Subbaramaiah Ganjam

Designation :

Director

Address :

Flat #204, Block A, Embassy Palace, 16 Cunningham Road, Bangalore – 560001, Karnataka, India

Date of Birth/Age :

24.10.1938

Date of Appointment :

16.11.1978

DIN No.:

00853642

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	U32109KA1978PTC003407	ELECTRONICS RELAYS (INDIA) PRIVATE LIMITED	Director	16/11/1978	16/11/1978	-	Active	NO
2	U52393KA1980PTC004049	GANJAM NAGAPPA AND SON PRIVATE LIMITED	Managing director	30/03/2012	19/12/1980	-	Active	NO
3	U27205KA1991PLC011666	PEAKOK JEWELLERY LIMITED	Director	14/02/1991	14/02/1991	28/07/2007	Active	NO
4	U36911KA1994PTC015632	GANJAM JEWELLERS PRIVATE LIMITED	Managing director	13/05/1994	13/05/1994	-	Active	NO
5	U36911KA2003PLC031686	CARBON ACCESSORIES LIMITED	Director	10/03/2003	10/03/2003	12/05/2007	Active	NO

KEY EXECUTIVES

Name :	Mr. Ram
Designation :	Commercial Executive
Name :	Mr. P. Vishwanath
Designation :	Engineer – Technical Support

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
G S Bimaji	700
Eswar Subbaramaiah Ganjam	14854
Umesh Bimaji Ganjam	23217
Pushpa Murthy	920
Reshma Umesh	5595
Malini Bimaji	853
Usha Eswar	853
Radha Kumar	120
Girija S Rao	100
B K Sarojamma	1
Ajeykutty Banarjee	1
A K Banarjee	1
Sunirmal Bose	1
Prema S Rao	1
Ramaswamy	1
Raji Ramaswamy	1
Rajkumar S Rao	1
Anuradha Rao	1
Jyothi Ramachandra	1
Sharada Rao	1
P.V.Rao	1
Padma Bose	1
Shaeila Rao	1
Deepak M. Chandanani	1
Guli Chandanani	1
Anita Rao	1
B S Rao	1
Lakshmi Krishnan	1
Ravi B Rao	1
Rajeeva Lochana H S	1
Kumar E Ganjam	412
Avinash Rao	1
Jaya P Pai	1
Prabhakar pai	1
Total	47648

AS ON 30.09.2011

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

BUSINESS DETAILS

Line of Business :	Manufacturers and Exporter of Electronic Solid State Relays – Coil, Power Relays, Liquid Relays, Level Indicators / Controllers, Capacitor Discharge, Moulds, Solid State, 3-Phase, etc.
Products :	Ø Microprocessor based Controls such as Automatic Vending Machines, etc. Ø Microcomputer Control, Ticket Vending Machines, NC Machine Control Ø For Process Control Systems using PLCs such as Programmable Controls, DCS, etc. Ø Computer Systems Ø Temperature Control Systems such as Microwave Ovens, Heater Control, Lamp Control, Injection Moulding Machines, etc. Ø Motor Control Ø Medical Equipments Ø Uninterrupted Power Supplies Ø I/O modules for NC/CNC Machines Ø Traffic Signals Ø Home Appliances such as Washing Machines, etc.
Exports :
Products :	Electronic Solid State Relays
Countries :	Ø Italy Ø Vietnam Ø France Ø China
Imports :
Products :	Raw Material
Countries :	Ø Germany Ø Singapore
Terms :
Selling :	Credit and Against Delivery
Purchasing :	Credit and Against Delivery

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity*	Actual Production
Goods Manufactured		Not Applicable	420000 units per annum	378767 units

* Certified by the management and relied upon by the auditors, the same being technical matter.

GENERAL INFORMATION

Customers :

End Users and Others (Distributors)

No. of Employees :

110 (Approximately)

Bankers :

Ø State Bank of Mysore, Industrial Finance Branch, No.18, Mid Ford Gardens, Off M G Road, Bangalore – 560001, Karnataka, India

Ø ICICI Bank

Ø Corporation Bank

Ø State bank of India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From State Sank of Mysore
Cash Credit (Secured against hypothecation of stock and property at No.93/A, Industrial Suburb, II Stage, RajajInagar, Bangalore)	12.713	12.288
Pre- Shipment Credit (Secured against hypothecation of stock and property at No. 93/A, Industrial Suburb, II Stage. Rajajinagar, Bangalore)	7.331	7.538
Term Loan (Secured against hypothecation of Machinery /Tools and personal Guarantee of Directors)	2.717	5.833
Export Bill Discounted (Secured against hypothecation of stock and property at No. 93/A, Industrial Suburb, II Stage, Rajajinagar, Bangalore)	8.131	3.766
SBM -IFB 64036037397 (Secured against hypothecation of stock and debt receivables) (All the above loans have been secured by the Personal Guarantee of Directors)	0.000	0.013
Total	30.892	29.438
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Reshma Umesh	0.100	0.100
G. B. Umesh	3.353	2.248
G.S.Eswar	2.000	2.000
Total	5.453	4.348

Banking Relations :	--
Auditors :
Name :	Manian and Rao Chartered Accountants
Address :	No. 361, 1^st Floor, 7^th Cross, 1^st Block, Jayanagar, Bangalore – 560011, Karnataka, India
Tel. No.:	91-80-26569500
Fax No.:	91-80-26569501
E-Mail :	contact@manian-rao.com
Income-tax PAN of auditor or auditor's firm :	AAHFM0757B
Associate :	Ø Ganjam Nagappa and Son Private Limited Ø Ganjam Jewellers Inc. Ø Ganjam Nagappa and Son HUF Ø Ganjam Nagappa and Son (V) Ø Ganjam Jewellers Private Limited Ø Ganjam Nagappa and Son
Sister Concern :	Ø Ganjam Exports Ø Ganjam Nagappa and Son Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50,000	Equity Shares	Rs. 100/- each	Rs. 5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
47,648	Equity Share	Rs. 100/- each	Rs. 4.765 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		4.765	4.765	4.765
2] Share Application Money		12.567	13.172	13.400
3] Reserves & Surplus		62.515	62.515	8.782
4] (Accumulated Losses)		(16.219)	(8.298)	(2.038)
NETWORTH		63.628	72.154	24.909
LOAN FUNDS
1] Secured Loans		30.892	29.438	31.070
2] Unsecured Loans		5.453	4.348	0.100
TOTAL BORROWING		36.345	33.786	31.170
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		99.973	105.940	56.079
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		81.629	85.750	30.269
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		3.105	3.105	3.105
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	19.803	15.240	23.002
	Sundry Debtors	19.926	25.990	16.890
	Cash & Bank Balances	5.036	4.539	3.275
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	5.502	5.234	8.625
Total Current Assets		50.267	51.003	51.792
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	24.873	29.314	22.200
	Other Current Liabilities	8.071	3.114	5.800
	Provisions	2.084	1.490	1.087
Total Current Liabilities		35.028	33.918	29.087
Net Current Assets		15.239	17.085	22.705
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		99.973	105.940	56.079

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
INCOME		91.420	67.584	96.498
EXPENSES		92.700	72.698	97.546
DEPRECIATION/ AMORTISATION		1.257	1.321	1.532
PROFIT / [LOSS] BEFORE TAX		(7.920)	(9.865)	(8.078)
TAX		0.000	2.038	(2.174)
PROFIT / [LOSS] AFTER TAX		(7.920)	(11.903)	(5.904)
EARNINGS IN FOREIGN CURRENCY
	FOB Value of Export	46.097	28.513	44.268
IMPORTS
	Raw Materials	23.440	18.337	25.746
Earnings/[Loss] Per Share (Rs.)		(166)	(250)	(124)

Particulars	31.03.2012
Sales Turnover (Approximately)	110.000

Expected Sales ( 2012-2013 ) : Rs. 140.000 Millions

The above information has been parted by Mr. Ram (Commercial Executive)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(8.66)	(17.61)	(6.12)
Return on Total Assets (PBT/Total Assets}	(%)	(6.00)	(7.21)	(9.84)
Return on Investment (ROI) (PBT/Networth)		0.12	(0.14)	(0.32)
Debt Equity Ratio (Total Liability/Networth)		1.12	0.94	2.42
Current Ratio (Current Asset/Current Liability)		1.44	1.50	1.78

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
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
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	No

FIXED ASSETS:

Ø Land

Ø Factory Building

Ø Plant and Machinery

Ø Furniture and Fixtures

Ø Computer

Ø Software

Ø Testing Equipments

Ø Office Equipments

Ø Research and Development Equipments

Ø Production Equipments

Ø Electrical Installations

Ø Vehicles

Ø Tools / Hand Tools

Ø Generator

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. 52.33
UK Pound	1	Rs. 84.30
Euro	1	Rs. 67.45

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
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	4
--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	Yes
--AFFILIATION	YES/NO	yes
--LISTED	YES/NO	No
--OTHER MERIT FACTORS	YES/NO	Yes
TOTAL		30

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.