MIRA INFORM REPORT

Report Date :

08.04.2013

IDENTIFICATION DETAILS

Name :	FUTECH PROJECTS (INDIA) PRIVATE LIMITED
Registered Office :	105, Pocket – J Shopping Center Sarita Vihar, New Delhi – 110076, Delhi
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	15.06.1993
Com. Reg. No.:	054050
Capital Investment / Paid-up Capital :	Rs.6.749 Millions
CIN No.: [Company Identification No.]	U74140DL1993PTC054050
Legal Form :	Private Limited Liability Company
Line of Business :	Subject provides turnkey solutions to the industries in field for firefighting systems, utilities, piping, Erection, Commissioning and installations, material handling etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (37)

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

Maximum Credit Limit :	USD 171212
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears some dip in the turnover and profits during 2012. However, trade relations are reported as fair. Business is active. Payment terms are slow but correct. 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term : BB
Rating Explanation	Moderate risk of default.
Rating	Short Term : A4+
Rating Explanation	Minimal Degree of safety and very high credit risk
Date	05.07.2012

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 :	105, Pocket – J Shopping Center Sarita Vihar, New Delhi – 110076, Delhi, India
Tel. No.:	91-11-26942613
Fax No.:	91-11-26942613
Corporate Office :	C-28 Sector 65, Noida 201301, Uttar Pradesh, India
Tel. No.:	91-120-4655900
Fax No.:	91-120-4655901
E-Mail :	projects@futechgroup.com futech@nda.vsnl.net.in

DIRECTORS

AS ON 29.09.2012

Name :	Mr. S S Ahmed
Designation :	Director
Address :	C-79, Sarita Vihar, New Delhi – 110076, India
Date of Birth/Age :	10.11.1955
Date of Appointment :	15.06.1993
DIN No.:	00382956
Name :	Ms. Kasturi Lakshmi Narsimhan
Designation :	Director
Address :	C-87, Sector – 40, Noida – 201301, India
Date of Birth/Age :	01.01.1953
Date of Appointment :	15.06.1993
DIN No.:	01846145

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
S S Ahmed	299700
Zeba Shahid	37500
Srilini Narsimhan	74000
Total	411200

AS ON 29.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject provides turnkey solutions to the industries in field for firefighting systems, utilities, piping, Erection, Commissioning and installations, material handling etc.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

The Karur Vysya Bank limited, Central Processing Cell (Loans), 65/7, 1st Floor, New Rohtak Road,, New Delhi - 110005, Delhi, India

Facilities :

SECURED LOAN	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Vehicles Loans from Banks
Vehicle loan from banks-repayable monthly installment till the term of loan is completed NOTE: There is no default, continuing or otherwise, as at the balance sheet date, in repayment of any of the above loans and interest thereon.	1.824	1.410
Working capital loans repayable on demand from the karur vysya bank limited (Secured by immovable property of the company situated at 105 and 106, shopping centre, pocket J, Sarita vihar, new Delhi and secured by residential immovable property of both the director situated at Plot No.87, Block C, Sector 10, Noida, India and Flat No.79, First Floor, SFS Flats, Sarita Vihar, Delhi)	7.706	5.621
Term Loan repayable within 12 months	0.621	0.474
TOTAL	10.151	7.505
UNSECURED LOAN	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Loan from Directors and relatives	2.880	1.790
TOTAL	2.880	1.790

Banking Relations :	--
Auditors :
Name :	P. K. Gaur and Associates Chartered Accountant
Address :	Suite#4G, Uppal's, M-6 Plaza, Jasola District Centre, New Delhi 110025, Delhi, India
Associates :	Futech Consultants Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.10/-	Rs.7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
674900	Equity Shares	Rs.10/-	Rs.6.749 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		6.749	6.749	6.749
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		36.054	30.423	19.340
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		42.803	37.172	26.089
LOAN FUNDS
1] Secured Loans		10.151	7.507	4.690
2] Unsecured Loans		2.880	1.790	0.540
TOTAL BORROWING		13.031	9.297	5.230
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		55.834	46.469	31.319
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16.239	16.011	13.498
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.500	0.500	0.500
DEFERREX TAX ASSETS		0.932	1.219	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.649	12.102	0.786
	Sundry Debtors	69.273	76.636	49.238
	Cash & Bank Balances	12.276	8.142	4.899
	Other Current Assets	6.202	6.415	0.000
	Loans & Advances	10.865	7.806	11.983
Total Current Assets		104.265	111.101	66.906
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	52.068	63.840	36.399
	Other Current Liabilities	9.396	12.214	8.924
	Provisions	4.638	6.308	4.293
Total Current Liabilities		66.102	82.362	49.616
Net Current Assets		38.163	28.739	17.290
MISCELLANEOUS EXPENSES		0.000	0.000	0.031
TOTAL		55.834	46.469	31.288

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	203.979	244.359	131.751
		Other Income	2.606	2.179	1.217
		TOTAL (A)	206.585	246.538	132.968
Less	EXPENSES
		Cost of Sales and Services		192.595	101.625
		Salary, Wages and Other Employee Benefits	197.472	26.224	14.807
		Advertisement Expenses		7.427	5.541
		TOTAL (B)	197.472	226.246	121.973
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			20.292	10.995
Less	FINANCIAL EXPENSES (D)			4.195	1.346
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		Na	16.097	9.649
Less/ Add	DEPRECIATION/ AMORTISATION (F)			1.292	1.069
	PROFIT BEFORE TAX (E-F) (G)		9.113	14.805	8.580
Less	TAX (I)		3.483	3.722	2.875
	PROFIT AFTER TAX (G-I) (J)		5.630	11.083	5.705

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.73	4.49	4.29
Net Profit Margin (PBT/Sales)	(%)	4.47	6.06	6.51
Return on Total Assets (PBT/Total Assets}	(%)	7.56	11.64	10.67
Return on Investment (ROI) (PBT/Networth)		0.21	0.39	0.33
Debt Equity Ratio (Total Debt/Networth)		0.30	0.25	0.20
Current Ratio (Current Asset/Current Liability)		1.58	1.35	1.35

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	No
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	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	No
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

BACKGROUND

Subject made a humble beginning in 1991 by two Graduate Engineers of 1975 batch having rich experience in Design and Engineering and Project Management in one of the most respected multi disciplinary turnkey, contracting companies of India then. Subject, a private limited company has since then grown to become a respectable consultancy organization in India with a long and impressive list of satisfied clients in India. This list includes many Multi-National Companies operating in India. After having launched Futech Consultants Private Limited successfully, the promoters have floated “Subject” in 1993 with a mission to serve the country through the project management route. From the project management services, the company started taking the contracts on turn key basis… from concept to commissioning….for Fire and Utilities and that is how the Futech is made. It started with small valued contracts but has grown to execute large contracts with reputed clients. The largest contract being executed by subject as on date is in excess of Rs.130.000 Millions for Mumbai Monorail. It started with one client and could impress many more by its magic of shear competence, commitment and technical excellence.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U74140DL1993PTC054050
Name of the company	FUTECH PROJECTS (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	105 POCKET-J SHOPPING CENTERSARITA VIHAR NEW DELHI Delhi INDIA 110076
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10318904
Type of charge	Immovable Property
Particular of charge holder	The Karur Vysya Bank Limited
Nature of instrument creating charge	Letter evidencing extension of equitable mortgage dated 24.01.2013.
Date of instrument Creating the charge	24/01/2013
Amount secured by the charge	Rs.16.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest SOD(RE) and Clean Bills Discounting: 3% over and above the Base Rate of the Bank ie 14% p.a. at present at monthly rest and BG/LC Commission @ 2% p.a. Terms of Repayment Renewable every year. Margin SOD:- 40% and BG/LC :- 10% Cash Margin and 10% for Clean Bills Discounting limit Extent and Operation of the charge Equitable mortgage of immovable properties of the Company situated at Leasehold Industrial Property bearing No. 78, Block-C, Sector-65, Noida, Gautam Budh Nagar, (UP) to secure all amounts payable under SOD limit of Rs. 25.000 Millions, enhanced BG/LC limit of Rs. 125.000 Millions and Fresh Bills Discounting limit of Rs. 15.000 Millions aggregating to Rs. 165.000 Millions granted to/enjoyed by the Company together with all interests, costs, charges, expenses, commission etc.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Equitable mortgage of immovable properties of the company being Leasehold Industrial Property bearing No. 78, Block-C, Sector-65, Noida, Gautam Budh Nagar, (UP).

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.54.88
UK Pound	1	Rs.83.54
Euro	1	Rs.70.90

INFORMATION DETAILS

Report Prepared by :

SDA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		37

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.