MIRA INFORM REPORT

Report Date :

02.04.2013

IDENTIFICATION DETAILS

Name :	VINYAS INNOVATIVE TECHNOLOGIES PRIVATE LIMITED
Registered Office :	Survey No.365, KIADB Plot No. 200A, Hebbal Industrial Area, Mysore – 570018 Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	27.04.2001
Com. Reg. No.:	08-028959
Capital Investment / Paid-up Capital :	Rs.126.914 Millions
CIN No.: [Company Identification No.]	U72200KA2001PTC028959
TAN No.: [Tax Deduction & Collection Account No.]	BLRV03347B
PAN No.: [Permanent Account No.]	AABCV3713D
Legal Form :	Private Limited Liability Company
Line of Business :	Providing Electronic Manufacturing Solutions to Electronic Hardware Industry.
No. of Employees :	Not Available

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 630000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Reserves of the company appear to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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	Letter of Credit (A4)
Rating Explanation	Minimal degree of safety, it carry high credit risk.
Date	29.08.2012

Rating Agency Name	CRISIL
Rating	Cash Credit (B+)
Rating Explanation	High risk of default.
Date	29.08.2012

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 :	Survey No.365, KIADB Plot No. 200A, Hebbal Industrial Area, Mysore – 570018 Karnataka, India
Tel. No.:	91-821-2404444/ 2404555/ 4282194/ 4009500
Fax No.:	91-821-4282194/ 2404444
E-Mail :	vinyasit@rediffmail.com prasad@vinyasit.net marketing@vinyasit.net hr@vinyasit.net shilpahr@vinyasit.net nimmoo@yahoo.com
Website :	www.vinyasit.com
Location :	Owned
Bangalore Office:	# 64/1, 1^st Floor, Sajjan Rao Circle, V V Puram, Bangalore-560004, Karnataka, India
Tel No.:	91-80-41204995
Fax No.:	91-80-41204995
Email:	marketing@vinyasit.net

DIRECTORS

(AS ON 27.09.2012)

Name :	Mr. Narendra Narayanan
Designation :	Chairman cum Managing Director
Address :	38, A-1, Block I, Main Road, Vijaynagar, 3^rd Stage, Mysore – 570017, Karnataka, India
Date of Birth/Age :	02.03.1959
Date of Appointment :	18.11.2002
DIN No.:	00396176
Name :	Mr. Srinivasan Tirunarayanapuram Ramachari
Designation :	Whole-time Director
Address :	48, 5^th Cross, K.R. Vanam, Mysore-570004, Karnataka, India
Date of Birth/Age :	30.07.1968
Date of Appointment :	30.09.2003
DIN No.:	00379256
Name :	Mr. Hosakote Raghavendra Shyama Rao
Designation :	Whole-time Director
Address :	90, 2^nd Cross, 4tr Block, 6^th Main T.R. Nagar, Bangalore – 560028, Karnataka, India
Date of Birth/Age :	07.04.1969
Date of Appointment :	25.04.2005
DIN No.:	00379249
Name :	Kunagalli Radhakrishnan Usha Prakash
Designation :	Director
Address :	37/B, Rachana, 6^th Cross, 8^th Main K.H. Road, Saraswataipuram, Mysore-570009, Karnataka, India
Date of Birth/Age :	17.04.1963
Date of Appointment :	30.09.2003
DIN No.:	02278196
Name :	Mrs. Meera Narendra
Designation :	Director
Address :	38, A-1, Block I, Main Road, Vijaynagar, 3^rd Stage, Mysore-570017, Karnataka, India
Date of Birth/Age :	02.05.1965
Date of Appointment :	18.11.2002
Din No.:	00396184
Name :	Mr. Srinivasamurthy Prakash
Designation :	Director
Address :	37/B, Rachana, 6^th Cross, 8^th Main K.H. Road, Saraswataipuram, Mysore-570009, Karnataka, India
Date of Birth/Age :	01.10.1959
Date of Appointment :	30.09.2003
Din No.:	02262793
Name :	Mr. Senthilarumugam Thiruvadi
Designation :	Nominee Director
Address :	A3, 313 Sneha Apartment, Godavari, Block National Games Village, Koramangala, Bangalore – 560047, Karnataka, India
Date of Birth/Age :	23.02.1956
Date of Appointment :	20.08.2011
Din No.:	03431263

KEY EXECUTIVES

Name :	Mrs. Shilpa H R
Designation :	Company Secretary
Address :	No.97, 5^th Main, Gokulam 3^rd Stage, Mysore 570002, Karnataka, India
Date of Birth/Age :	25.10.1982
Date of Appointment :	20.01.2012
PAN No.:	AORPR3282A

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 27.09.2012)

Names of Shareholders (Equity Shares)	No. of Shares
Narendra Narayanan	959952
Meera Narendra	684000
Kunagalli Radhakrishnan Usha Prakash	180000
Srinivasamurthy Prakash	744000
Srinivasan Tirunarayanapuram Ramachari	48000
Narayanan H S	48000
Hosakote Raghavendra Shyama Rao	20048
Canbank Ventures Capital Fund Limited, India	141300
Total	2825300
Names of Shareholders (Preference Shares)	No. of Shares
Narendra Narayanan	3570
Meera Narendra	1050
Narayanan H S	3450
Srinivasamurthy Prakash	3000
Kunagalli Radhakrishnan Usha Prakash	3800
Canbank Ventures Capital Fund Limited, India	971740
Total	986610

(AS ON 30.09.2012)

Equity Shares Break – up

Category	Percentage
Venture Capital	5.00
Directors or relatives of directors	95.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Providing Electronic Manufacturing Solutions to Electronic Hardware Industry.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Actual Production
Jobwork Domestic	Nos.	1577127
Jobwork Exports	Nos.	--
Sales Domestic	Nos.	232649
Sales Export	Nos.	45447
Dales Deemed Exports	Nos.	505

GENERAL INFORMATION

Customers :

· Bharat Electronics

· HD Medical Group

· Sunair Electronics LLC.

· Sangoma

· Sukam Powered by Innovation

· HCL

· Philips

· Fluke

· Tata

· Sasken

· Spectrum Infotech Private Limited

· Omne Agate Systems Private Limited

No. of Employees :

Not Available

Bankers :

· State Bank of India,

Commercial Branch, MRN Signature, Vishwamanava Double Road, Saraswatipuram, Mysore – 570009, Karnataka, India

· Canara Bank

No.6, Ganga Temple Road, Jayalakshmi Puram, Mysore – 570012, Karnataka, India

· Andhra Bank

· HDFC Bank

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans from banks (State Bank of India, Term Loan A/c No 07221453643,393,738.00 (Against hypothecation of Plant and Machinery) SBI Term Loan A/c No 30781203203- (Against hypothecation of Plant and Machinery)- Kotak Mahindra Bank Term Loan Rs.7.747 Millions)	11.141	9.621
Rupee term loans from others (L and T Finance Limited Rs.2.907 Millions (Against hypothecation of Plant and Machinery) - KSFC Term Loan)	2.907	6.933
Working capital loans from banks	0.000	3.562
Loans taken for vehicles	2.908	0.295
Working capital loans from banks	246.092	118.570
Other loans and advances (Foreign Fluctuation A/c)	0.000	(2.132)
Total	263.048	136.849

Banking Relations :	--
Auditors :
Name :	Loknath and Company Chartered Accountants
Address :	459, Ashianna, 6^th Main, Vijayanagar, 1^st Stage, Mysore-570017, Karnataka, India
PAN No.:	AAKPL4553S

CAPITAL STRUCTURE

(AS ON 27.09.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
4650000	Equity Shares	Rs.10/- each	Rs.46.500 Millions
1035000	Preferences Shares	Rs.100/- each	Rs.103.500 Millions
	Total		Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2825300	Equity Shares	Rs.10/- each	Rs.28.253 Millions
986610	Preferences Shares	Rs.100/- each	Rs.98.661 Millions
	Total		Rs.126.914 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		126.914	28.327	14.907
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		31.589	27.037	26.259
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		158.503	55.364	41.166
LOAN FUNDS
1] Secured Loans		263.048	136.849	86.207
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		263.048	136.849	86.207
DEFERRED TAX LIABILITIES		3.642	3.002	2.269
TOTAL		425.193	195.215	129.642
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		80.866	71.100	44.018
Capital work-in-progress		26.341	0.000	0.000
INVESTMENT		0.209	0.192	0.381
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	190.344	116.750	74.377
	Sundry Debtors	198.584	77.361	70.143
	Cash & Bank Balances	97.832	13.964	0.220
	Other Current Assets	2.491	0.435	27.876
	Loans & Advances	23.337	35.211	5.189
Total Current Assets		512.588	243.721	177.805
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	166.664	108.920	63.048
	Other Current Liabilities	0.360	0.700	19.120
	Provisions	27.787	10.178	10.394
Total Current Liabilities		194.811	119.798	92.562
Net Current Assets		317.777	123.923	85.243
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		425.193	195.215	129.642

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income (Gross Revenue)	462.042	299.805	281.402
		Other Income	NA	24.173
		TOTAL	NA	323.978	281.402
Less	EXPENSES
		TOTAL	NA	306.574	267.512
	PROFIT BEFORE TAX		20.513	17.404	13.890
Less	TAX		6.900	1.463	NA
	PROFIT AFTER TAX		13.613	15.936	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	103.632	110.468	78.364
	TOTAL EARNINGS		103.632	110.468	78.364
	IMPORTS
		Raw Materials/ Components	190.926	180.567	166.811
	TOTAL IMPORTS		190.926	180.567	166.811
	Earnings Per Share (Rs.)		3.57	--	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	4.92	NA
Net Profit Margin (PBT/Sales)	(%)	4.44	5.81	NA
Return on Total Assets (PBT/Total Assets}	(%)	3.46	5.53	6.26
Return on Investment (ROI) (PBT/Networth)		0.13	0.31	0.34
Debt Equity Ratio (Total Debt/Networth)		1.66	2.47	2.09
Current Ratio (Current Asset/Current Liability)		2.63	2.03	1.92

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 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	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 office of the company has been shifted from Kiadb, Plot 70/Z 2, Hoota Galli, Mysore- 571186, Karnataka, India to the present address w.e.f. 01.06.2009.

REVIEW OF OPERATION

During the year, the Company has earned gross revenue of Rs.462.042 Millions as against Rs.299.805 Millions during the previous year. The net profit for the year has been Rs.13.613 Millions as against Rs.15.936 Million during the previous financial year. The directors are continuously looking for avenues for future growth of the Company in Electronic manufacturing Service Sector.

FORM 8

This form is for	Creation of charge
Charge identification number of the modified	--
Corporate identity number of the company	U72200KA2001PTC028959
Name of the company	VINYAS INNOVATIVE TECHNOLOGIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Survey No.365, KIADB Plot No.200-A, Hebbal Industrial Area, Mysore – 570018, Karnataka, India shilpahr@vinyasit.net
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	Canara Bank No.6, Ganga Temple Road, Jayalakshmi Puram, Mysore – 570012, Karnataka, India cb0566@canarabank.com
Nature of description of the instrument creating or modifying the charge	Common Hypothecation Agreement; inter se pari passu agreement.
Date of instrument Creating the charge	07/01/2013
Amount secured by the charge	Rs.20.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest 14.5% p.a. Terms of Repayment Running account repayable on demand Margin 25% Extent and Operation of the charge The charge shall operate to the extent of the loan amount plus interest commission costs expenses and other charges thereon
Short particulars of the property charged	Hypothecation by way of First charge on stocks and book debts both present and future on pari passu basis with State Bank of India stored at company premises at Survey No.365, KIADB Plot No.200A, Hebbal Industrial Area, Hebbal, Mysore 570018 or at any other place

FIXED ASSETS:

· Land

· Plant and Machinery

· Furniture and Fixtures

· Office Equipment

· Vehicles

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 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 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.54.39
UK Pound	1	Rs.82.32
Euro	1	Rs.69.54

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
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	3
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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
-	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.