MIRA INFORM REPORT

Report Date :

28.08.2013

IDENTIFICATION DETAILS

Name :	I M GEARS PRIVATE LIMITED
Registered Office :	159-B, Velacherry Road, East Tambaram, Chennai-600059, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	05.04.1995
Com. Reg. No.:	18-030820
Capital Investment / Paid-up Capital :	Rs.32.563 Millions
CIN No.: [Company Identification No.]	U35999TN1995PTC030820
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the business of Manufacturing and Supply of Auto Components to Two-Wheeler and Four-Wheeler.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 2106000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Overall financial appears to be decent. Liquidity position of the company seems good. Trade relations are fair. Business is active. Payment terms are usually correct. The company can be considered 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	A – [Long Term]
Rating Explanation	Adequate credit quality and average credit risk.
Date	18.09.2012

Rating Agency Name	CRISIL
Rating	A2+ [Short Term]
Rating Explanation	Strong degree of safety and low credit risk.
Date	18.09.2012

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 / Plant II :	159-B, Velacherry Road, East Tambaram, Chennai-600059, Tamilnadu, India
Tel. No.:	91-44-22397044/6918
Fax No.:	91-44-22390386
E-Mail :	accounts@imgearsindia.com hr.imgears@vsnl.net
Plant I :	235 1A, 2C, Vengaivasal Main Road, Madambakam Post, Selaiyur, Chennai-600073, Tamilnadu, India
Tel. No.:	91-44-22780598/0386/0085
Fax No.:	91-44-22781565

DIRECTORS

AS ON 28.09.2012

Name :

Mr. Vijayaraghavan Narasimhan Vankhpuram

Designation :

Managing Director

Address :

507, (159-B), Velacherry Road, East Tambaram, Chennai-600059, Tamilnadu, India

Date of Birth/Age :

10.08.1953

Date of Appointment :

05.04.1995

Din No.:

01909708

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	U30007TN1990PTC020007	SRINAR ELECTRONICS PRIVATE LIMITED	Director	12/12/1990	12/12/1990	-	Active	NO
2	U35999TN1995PTC030820	I M GEARS PRIVATE LIMITED	Managing director	05/04/1995	05/04/1995	-	Active	NO
3	U72200TN2010PTC074378	MANUFACTURING SYSTEM INSIGHTS (INDIA) PRIVATE LIMITED	Director	27/01/2010	27/01/2010	15/12/2010	Active	NO
4	U28910TN2010PTC078115	IM AMIS FORGINGS PRIVATE LIMITED	Managing director	26/11/2010	18/11/2010	-	Active	NO

Name :

Mr. Srinivasan Narasimhan Vankhpuram

Designation :

Managing Director

Address :

507, (159-B), Velacherry Road, East Tambaram, Chennai-600059, Tamilnadu, India

Date of Birth/Age :

12.06.1957

Date of Appointment :

05.04.1995

Din No.:

01257990

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	U30007TN1990PTC020007	SRINAR ELECTRONICS PRIVATE LIMITED	Director	12/12/1990	12/12/1990	Active	NO
2	U35999TN1995PTC030820	I M GEARS PRIVATE LIMITED	Managing director	05/04/1995	05/04/1995	Active	NO
3	U28910TN2010PTC078115	IM AMIS FORGINGS PRIVATE LIMITED	Managing director	26/11/2010	18/11/2010	Active	NO

Name :

Mr. Parthasarathy Narasimhan Vankhpuram

Designation :

Whole Time Director

Address :

159-B, Velacherry Road, East Tambaram, Chennai-600059, Tamilnadu, India

Date of Birth/Age :

08.06.1955

Date of Appointment :

05.04.1995

Din No.:

00236852

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	U30007TN1990PTC020007	SRINAR ELECTRONICS PRIVATE LIMITED	Managing director	12/12/1990	12/12/1990	Active	NO
2	U35999TN1995PTC030820	I M GEARS PRIVATE LIMITED	Whole-time director	05/04/1995	05/04/1995	Active	NO
3	U28910TN2010PTC078115	IM AMIS FORGINGS PRIVATE LIMITED	Director	18/11/2010	18/11/2010	Active	NO

Name :

Ms. Sujatha Vijayaraghavan

Designation :

Whole Time Director

Address :

159-B, Velacherry Road, East Tambaram, Chennai-600059, Tamilnadu, India

Date of Birth/Age :

04.12.1957

Date of Appointment :

05.04.1995

Din No.:

01269664

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	U35999TN1995PTC030820	I M GEARS PRIVATE LIMITED	Whole-time director	02/05/1995	05/04/1995	-	Active	NO
2	U72200TN2010PTC074378	Manufacturing System Insights (India) Private Limited	Director	27/01/2010	27/01/2010	09/02/2010	Active	NO

Name :

Mr. Soumya Srinivasan

Designation :

Whole Time Director

Address :

159-B, Velacherry Road, East Tambaram, Chennai-600059, Tamilnadu, India

Date of Birth/Age :

25.02.1964

Date of Appointment :

02.05.1995

Din No.:

01269693

Name :

Parthasarathy Nalini

Designation :

Whole Time Director

Address :

159-B, Velacherry Road, East Tambaram, Chennai-600059, Tamilnadu, India

Date of Birth/Age :

02.06.1962

Date of Appointment :

02.05.1995

Din No.:

02865364

Name :

Mr. Vijayaraghavan Athulan

Designation :

Director

Address :

507, Velachery Road, Tambaram East, Chennai-600059, Tamilnadu, India

Date of Birth/Age :

02.10.1983

Date of Appointment :

18.07.2012

Din No.:

02918484

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	U72200TN2010PTC074378	MANUFACTURING SYSTEM INSIGHTS (INDIA) PRIVATE LIMITED	Managing director	30/10/2010	29/01/2010	Active	NO
2	U35999TN1995PTC030820	I M GEARS PRIVATE LIMITED	Director	28/09/2012	18/07/2012	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Shareholders	No. of Shares
Vijayaraghavan Narasimhan Vankhpuram	1155080
Prthasarathy Narasimhan Vankhpuram	900860
Srinivasan Narasimhan Vankhpuram	1164980
Sujatha Vijayaraghavan	12600
Parthasarathy Nalini	10710
Soumya Srinivasan	12100
TOTAL	3256330

AS ON 28.09.2012

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

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of Manufacturing and Supply of Auto Components to Two-Wheeler and Four-Wheeler.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Mid Corporate Group, Industrial Finance Branch, No.155, Anna Salai, Chennai-600002, Tamilnadu, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loans banks	287.320	256.111
Foreign currency loans banks	0.000	46.161
Working capital loans banks	278.347	143.993
TOTAL	565.667	446.265

Banking Relations :	--
Auditors :
Name :	Thiagarajan V Chartered Accountant
Address :	Rosy Towers, I Floor 7, Nungambakkam, High Road, Chennai-600034, Tamilnadu, India
PAN No:	AAAFR8792G

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3700000	Equity Shares	Rs.10/- each	Rs.37.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3256330	Equity Shares	Rs.10/- each	Rs.32.563 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		32.563	32.563	32.231
2] Share Application Money		0.000	0.000	0.332
3] Reserves & Surplus		493.947	395.831	322.138
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		526.510	428.394	354.701
LOAN FUNDS
1] Secured Loans		565.667	446.265	543.848
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		565.667	446.265	543.848
DEFERRED TAX LIABILITIES		0.000	11.575	29.447
TOTAL		1092.177	886.234	927.996
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		577.692	486.269	558.943
Capital work-in-progress		0.000	0.234	0.000
INVESTMENT		17.020	0.820	0.820
DEFERREX TAX ASSETS		2.451	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	90.209	81.946	72.505
	Sundry Debtors	405.509	335.010	311.177
	Cash & Bank Balances	132.302	82.890	54.084
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	167.672	103.367	86.322
Total Current Assets		795.692	603.213	524.088
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	136.939	74.012	84.253
	Other Current Liabilities	31.555	38.363	28.057
	Provisions	132.184	91.927	43.545
Total Current Liabilities		300.678	204.302	155.855
Net Current Assets		495.014	398.911	368.233
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1092.177	886.234	927.996

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income
		Other Income
		TOTAL	1449.068	1137.161	1070.371
Less	EXPENSES
		TOTAL	1164.365	864.433	825.629
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		284.703	272.728	244.742
Less	FINANCIAL EXPENSES		54.183	59.565	68.635
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		230.520	213.163	176.107
Less/ Add	DEPRECIATION/ AMORTISATION		106.173	108.744	116.912
	PROFIT / (LOSS) BEFORE TAX		124.347	104.419	59.195
	TRANSFERRED TO DEFERRED TAX		(14.025)	17.871	(6.759)
	NET PROFIT		98.115	73.693	30.580
	BALANCE CARRIED OVER TO BALANCE SHEET		98.116	73.693	30.580
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	577.117	424.283	431.245
	IMPORTS
		Raw Materials	3.003	0.000	14.297
		Consumable and Spare Parts	26.105	28.593	20.005
		Capital Goods	105.226	25.541	89.217
	TOTAL IMPORTS		134.334	54.134	123.519
	Earnings / (Loss) Per Share (Rs.)		30.13	22.63	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.77	6.48	2.85
Return on Total Assets (PBT/Total Assets}	(%)	9.05	9.58	5.47
Return on Investment (ROI) (PBT/Networth)		0.23	0.24	0.17
Debt Equity Ratio (Total Debt/Networth)		1.07	1.04	1.53
Current Ratio (Current Asset/Current Liability)		2.65	2.95	3.36

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	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	No
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10305297	12/07/2011	30,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL WEST, MUMBAI - 400013, MAHARASHTRA, INDIA	B20073185
2	10249640	11/11/2010 *	181,200,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL WEST, MUMBAI - 400013, MAHARASHTRA, INDIA	B01172238
3	80052225	20/05/2013 *	797,900,000.00	State Bank of India	MID CORPORATE GROUP, INDUSTRIAL FINANCE BRANCH, N O.155, ANNA SALAI, CHENNAI- 600002, TAMILNADU, INDIA	B78792637
* Date of charge modification

COMPANY INFORMATION:

Subject was incorporated on 5^th April 1995. The Company is engaged in the business of manufacturing and supply of Auto Components to Two-wheeler and Four-wheeler manufacturers and General Engineering Components to various General Engineering Industries. The components so manufactured are also exported to several countries across the world.

OVERVIEW:

IM Gears is a precision engineering Company catering to the growing demand of the Automobile Sector and also the general engineering Industries in Power Tools and Windmills. It has also marked its presence in the last few years both in the Hydraulic and Aerospace sectors where it sees an enormous growth potential and also the margins available for its product.

The Company has added a new facility at Vedavakkam, near Maduranthagam its 3rd Plant and the same has become operational since Septemenrr’2010.

This was possible due to the creation of the sound manufacturing facilities which have been constantly upgraded in line with the customer demand and expectations supported by the Company’s full fledged Research and Development department which facilitates the development of parts for the new Projects or models that the OEM’s or its Tier1 vendor come up with. This effort has helped the Company to achieve a growth of 27% over the previous year.

FIXED ASSETS:

· Factory Building

· Electrical Installation

· Fire Fighting Equipments

· Plant and Machinery

· Motor Vehicles

· Computer

· Furniture and Fixtures

· Air Conditioners

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.65.67
UK Pound	1	Rs.102.20
Euro	1	Rs.87.75

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.