MIRA INFORM REPORT

Report Date :

11.09.2012

IDENTIFICATION DETAILS

Name :	MICRO DYNAMICS PRIVATE LIMITED
Registered Office :	T – 178, MIDC, Bhosari, Pune – 411026, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	16.06.1981
Com. Reg. No.:	11-024629
Capital Investment / Paid-up Capital :	Rs.8.989 Millions
CIN No.: [Company Identification No.]	U31101PN1981PTC024629
TAN No.: [Tax Deduction & Collection Account No.]	PNEM08467E
PAN No.: [Permanent Account No.]	AABCM1521E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Boilers, Steam Turbines, Pumps, Fans, Bag Filters, MDCS Filters, Valves.
No. of Employees :	250 (Approximately)

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 1000000
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. 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 – 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 DECLINED

Management Non Co-operative (91-20-27120839)

LOCATIONS

Registered Office / Factory 1 :	T – 178, MIDC, Bhosari, Pune – 411026, Maharashtra, India
Tel. No.:	91-20-30685473 / 27120839 / 27129099 / 27123127 / 27128254
Mobile No. :	91-9371313151 (Mr. Iftekhar Khan)
Fax No.:	91-20-27122678 / 30685473
E-Mail :	micro@microdynamics.com
Website :	http://www.microdynamics.com
Area :	115000 Sq. ft.
Location :	Owned
Factory 2 :	T-181-1 – 1/A, MIDC, Bhosari, Pune – 411026, Maharashtra, India

DIRECTORS

As on 30.09.2011

Name :

Mrs. Zohra Ishrat Ali

Designation :

Director

Address :

69, Lullanagar, Pune – 411040, Maharashtra, India

Date of Appointment :

01.10.2003

DIN No.:

01669784

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	U31101PN1981PTC024629	MIRCO DYNAMICS PRIVATE LIMITED	Director	1/10/2003	1/10/2003	-	Active	NO
2	U29299PN2004PTC020073	MICRO DYNAMICS PRIVATE LIMITED	Director	28/12/2004	28/12/2004	-	Active	NO

Name :

Mr. Ishrat Shaukat Ali

Designation :

Director

Address :

69, Lullanagar, Pune – 411040, Maharashtra, India

Date of Appointment :

31.01.1996

DIN No.:

02596380

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	U31101PN1981PTC024629	MIRCO DYNAMICS PRIVATE LIMITED	Director	31/01/1996	31/01/1996	-	Active	NO
2	U29299PN2004PTC020073	MICRO DYNAMICS PRIVATE LIMITED	Director	28/12/2004	28/12/2004	-	Active	NO

Name :

Mr. Shujayat Ali Mirza

Designation :

Director

Address :

69, Lullanagar, Pune – 411040, Maharashtra, India

Date of Birth/Age :

19.02.1936

Date of Appointment :

16.06.1981

DIN No.:

02618634

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Zohra Ishrat Ali	20540
Ishrat Shaukat Ali	69354
Total	89894

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Boilers, Steam Turbines, Pumps, Fans, Bag Filters, MDCS Filters, Valves.
Products :	· Boilers · Turbines · Fans · Pumps · Valves · Water Treatment Plants

GENERAL INFORMATION

No. of Employees :

250 (Approximately)

Bankers :

• Axis Bank Limited
• Cosmos Bank Cooperative Bank Limited (Khadki Branch), 269/270, Shaniwar Peth, Pune - 411030, Maharashtra, India
• ICICI Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Loans From banks
Term Loans A/c No. 00275100231	2.035	2.539
Term Loans A/c No. 00275100143	0.544	0.674
Term Loans A/c No. 00280125152	9.997	0.000
Term Loans A/c No. 00275100107	1.263	1.565
Term Loans A/c No. 00275180578	4.077	5.038
Term Loans A/c No. 00275180213	0.779	0.966
Term Loans A/c No. 00275180277	0.419	0.520
Term Loans A/c No. 28018037	2.881	3.570
Term Loans A/c No. 00275100286	3.240	4.023
Term Loans A/c No. 00275180639	24.449	29.264
Term Loans A/c No. 00275180602	6.484	0.000
Term Loans A/c No. 00275180611	1.224	0.000
Term Loans A/c No. 00275180620	2.292	0.000
Working Capital Facility	44.935	44.034
ICICI Bank Limited	0.373	0.838
Total	104.992	93.031
Note: a. Term loan from The Cosmos co-operative Bank Limited is Secured by Mortgage of Land and Buildings and Plant and Machinery of the Company and personally guaranteed by the Directors of the Company. b. Working Capital Facilities from Cosmos Co-operative Bank Limited are secured by Hypothecation of Inventories and Sundry Debtors of the company with a charge on entire Fixed Assets of the company and are also personally guaranteed by the Directors of the Company. c. Loan from ICICI Bank Limited is secured by Hypothecation of Motor Cars.
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Loan From Share Holders, Friends, and Relatives	4.851	4.851
Total	4.851	4.851

Banking Relations :	--
Auditors :
Name :	L B Laddha and Company Chartered Accountants
Address :	Flat No.7 and 8, Second Floor, Sukhawani Chambers, Station Road, Pimpri, Oune – 411018, Maharashtra, India
Tel. No.:	91-22-27426966 / 27420547
E-Mail :	laddhalb@gmail.com
PAN.:	AAJPL1258Q

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/-each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
89894	Equity Shares	Rs.100/-each	Rs.8.989 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

Particulars		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		8.989	7.537	7.537
2] Share Application Money		0.000	1.452	1.452
3] Reserves & Surplus		241.585	239.968	75.239
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		250.574	248.957	84.228
LOAN FUNDS
1] Secured Loans		104.992	93.031	98.383
2] Unsecured Loans		4.851	4.851	1.248
TOTAL BORROWING		109.843	97.882	99.631
DEFERRED TAX LIABILITIES		0.106	0.690	0.493
TOTAL		360.523	347.529	184.352
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		254.776	257.081	101.658
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.163	0.163	0.163
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	90.936	78.275	79.675
	Sundry Debtors	66.791	78.865	57.533
	Cash & Bank Balances	1.970	1.288	1.437
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	23.734	24.276	27.371
Total Current Assets		183.431	182.704	166.016
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	50.808	53.049	34.297
	Other Current Liabilities
	Provisions	27.039	39.370	49.188
Total Current Liabilities		77.847	92.419	83.485
Net Current Assets		105.584	90.285	82.531
MISCELLANEOUS EXPENSES		0.00	0.000	0.000
TOTAL		360.523	347.529	184.352

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	199.407	183.365	211.954
		Other Income
		TOTAL	199.407	183.365	211.954
Less	EXPENSES
		Office Expenses
		Administrative Expenses	197.830	180.957	211.425
		Advertising Expenses
		TOTAL	197.830	180.957	211.425
	PROFIT BEFORE TAX		1.577	2.408	0.529
Less	TAX		(0.040)	0.707	0.842
	PROFIT AFTER TAX		1.617	1.701	(0.313)
	Earnings Per Share (Rs.)		17.99	22.58	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.81	0.93	(0.15)
Return on Total Assets (PBT/Total Assets}	(%)	0.35	0.55	0.20
Return on Investment (ROI) (PBT/Networth)		0.01	0.01	0.01
Debt Equity Ratio (Total Liability/Networth)		0.75	0.76	2.17
Current Ratio (Current Asset/Current Liability)		2.36	1.98	1.99

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	Yes
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	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	No
17]	Major suppliers	No
18]	Major customers	No
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	No

OPERATIONS:

During the year ended on 31st March, 2011 Sales and Other Income amounted to Rs.199.407 Millions in comparison to Rs. 183.365 Millions in the previous Year. Company has made net Profit of Rs. 1.617 Millions in comparison to net Profit of Rs.1.701 Millions in the previous year. Company is taking necessary steps to increase its profitability by imposing strict control over overheads.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U31101PN1981PTC024629
Name of the company	MICRO DYNAMICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	T – 178, MIDC, Bhosari, Pune – 411026, Maharashtra, India mirco@mircodynamics.com
This form is for	Creation of Charge
Type of charge	· Book debts · Floating charge
Particular of charge holder	Cosmos Bank Cooperative Bank Limited (Khadki Branch), 269/270, Shaniwar Peth, Pune - 411030, Maharashtra, India mandevazecs@vsnl.net
Nature of instrument creating charge	Deed of hypothecation of stock, book debts and machinery dated 29^th July, 2011
Date of instrument Creating the charge	29.07.2011
Amount secured by the charge	Rs.10.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest SLSO (Rs. 10.000 Millions): presently 13.50% P. A Terms of Repayment SLSO (Rs. 10.000 Millions): 10 months upto April, 2012 Margin SLSO (Rs. 10.000 Millions): 25% in banks favour Extent and Operation of the charge The charge shall continue to operate till full repayment of the facility enjoyed by the company Others Facility: SLSO of Rs. 10.000 Millions for purpose of working capital finance
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All stock in trade, raw material, semi-manufactured and manufactured goods, finished goods situated at T-178 and 181, MIDC Bhosari, Pune - 26 and as more particularly described in schedule i of the deed all present and future book debts, outstanding moneys, receivables, claims, bills chooses in action, contracts, engagements and securities of the company.

FIXED ASSETS :

· Land

· Building

· Leased Plant and Machinery

· Furniture and Fixtures

· Computer

· Crane

· Office Equipments

· Electrical Installations

· Vehicles

· Truck Mounting Crane

· Tools Equipments

· Motor Car

· Shed

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.55.52
UK Pound	1	Rs.88.49
Euro	1	Rs.70.20

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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		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.