MIRA INFORM REPORT

Report Date :

04.12.2013

IDENTIFICATION DETAILS

Name :	C M FLOWMETERS (INDIA) PRIVATE LIMITED
Registered Office :	Plot No.2, Phase III, Kasba Industrial Estate, Kolkata – 700 107, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	27.06.2003
Com. Reg. No.:	21-096488
Capital Investment / Paid-up Capital :	Rs.6.102 millions
CIN No.: [Company Identification No.]	U36900WB2003PTC096488
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Rotameters (Variable Area Flowmeters) for industrial, scientific and medical applications.
No. of Employees :	30 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 57000
Status :	Small Company
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a small company in its field. Its scale of activities are limited. The management has failed to file its financial with Government Department for the year 2013. There appears slight dip in sales turnover of the company during the financial year 2012. However, there appears no external borrowing taken by the company and its operating on its owned fund. Trade relations are 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 – 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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

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. Tapas Ghosh
Designation :	Finance Department
Contact No.:	91-33-24421456
Date :	16.11.2013

LOCATIONS

Registered Office/ Factory :	Plot No.2, Phase III, Kasba Industrial Estate, Kolkata – 700 107, West Bengal, India
Tel. No.:	91-33-24421456/ 24430201
Mobile No.:	91-9830942149 (Mr. Ramaswamy Venkateswar)
Fax No.:	91-33-24430201
E-Mail :	sales@cmflowmeters.in cmflowmeters@vsnl.net
Website :	www.cmflowmeters.com
Location :	Owned

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Ramaswamy Venkateswar

Designation :

Director

Address :

B-299, Lake Gardens, Flat-B 1, Hiland Park, Kolkata – 700 045, West Bengal, India

Date of Birth/Age :

28.06.1960

Date of Appointment :

27.06.2003

DIN No.:

00384377

Election Commission Identity Card No.:

WB/23/151/312331

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	U36900WB2003PTC096488	C M FLOWMETERS (INDIA) PRIVATE LIMITED	Director	27/06/2003	27/06/2003	-	Active	NO
2	U33111WB2010PTC140822	CM MEDITECH PRIVATE LIMITED	Director	08/01/2010	08/01/2010	-	Active	NO

Name :

Gomathy Venkateswar

Designation :

Director

Address :

B-299, Lake Gardens, Flat-B 1, Hiland Park, Kolkata – 700 045, West Bengal, India

Date of Birth/Age :

05.09.1939

Date of Appointment :

27.06.2003

DIN No.:

01739700

Election Commission Identity Card No.:

MT/08/036/0343682

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	U36900WB2003PTC096488	C M FLOWMETERS (INDIA) PRIVATE LIMITED	Director	27/06/2003	27/06/2003	-	Active	NO
2	U33111WB2010PTC140822	CM MEDITECH PRIVATE LIMITED	Director	08/01/2010	08/01/2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Tapas Ghosh
Designation :	Finance Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Gomathy Venkateswar	146438
Ramaswamy Venkateswar	463722
Total	610160

AS ON 29.09.2012

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

BUSINESS DETAILS

Line of Business :

Manufacturer of Rotameters (Variable Area Flowmeters) for industrial, scientific and medical applications.

Products :

Item Code No. (ITC Code)	90261010
Product Description	Flowmeter/ Rotameter

· Anaesthetic Rotameters

· BPC Rotameters

· Anaesthetic Roatameters with Hypoxia devices

· Rotameters Tubes

· Variable Area Rotameters

· Complete Rotameters Unit

Brand Names :

“CM”

Exports :

Products :

· Finished Goods

Countries :

· South Korea

· Turkey

· Canada

· Germany

Imports :

Products :

Raw Materials

Countries :

Germany

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit (Depend)

GENERAL INFORMATION

Customers :	End Users and Others
No. of Employees :	30 (Approximately)
Bankers :	· Axis Bank Limited · Federal Bank Limited · Bank of Maharashtra · Standard Chartered Grindlays Bank Limited · United Bank of India · The Hongkong and Shanghai Banking Corporation Limited

Banking Relations :	--
Auditors :
Name :	Dipak Kumar Mitra and Company Chartered Accountants
Address :	No.6, Old Post Office Street, 2^nd Floor, Kolkata – 700 001, West Bengal, India
PAN No.:	ADLPM3315N
Memberships :	CII, Association of Medical Device Industry, Indo-German Chamber of Commerce

CAPITAL STRUCTURE

AS ON 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
650000	Equity Shares	Rs.10/- each	Rs.6.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
610160	Equity Shares	Rs.10/- each	Rs.6.102 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	6.102	6.102
(b) Reserves & Surplus	8.138	7.335
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	14.240	13.437
(3) Non-Current Liabilities
(a) Long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) Long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	0.000	0.093
(c) Other current liabilities	0.624	0.593
(d) Short-term provisions	1.881	3.711
Total Current Liabilities (4)	2.505	4.397
TOTAL	16.745	17.834
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2.853	3.335
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.022	0.044
Total Non-Current Assets	2.875	3.379
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	2.702	1.167
(c) Trade receivables	3.663	3.851
(d) Cash and cash equivalents	5.172	5.631
(e) Short-term loans and advances	0.384	0.181
(f) Other current assets	1.949	3.625
Total Current Assets	13.870	14.455
TOTAL	16.745	17.834

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		6.102
2] Share Application Money		0.000
3] Reserves & Surplus		5.892
4] (Accumulated Losses)		0.000
NETWORTH		11.994
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		0.000
TOTAL		11.994
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.056
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1.081
	Sundry Debtors	2.925
	Cash & Bank Balances	5.455
	Other Current Assets	0.000
	Loans & Advances	3.754
Total Current Assets		13.215
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.027
	Other Current Liabilities	1.205
	Provisions	3.112
Total Current Liabilities		4.344
Net Current Assets		8.871
MISCELLANEOUS EXPENSES		0.067
TOTAL		11.994

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011
	SALES
		Revenue from operations	8.280	10.748
		Other Income	0.399	0.213
		TOTAL (A)	8.679	10.961
			(Due to less Export)
Less	EXPENSES
		Cost of Material Consumed	1.196	1.546
		Changes in Inventories	(1.340)	0.026
		Manufacturing Expenses	2.826	2.784
		Employee Benefit Expenses	2.138	1.912
		Other Administrative Expenses	2.122	2.116
		TOTAL (B)	6.942	8.384
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.737	2.577
Less	FINANCIAL EXPENSES (D)		0.056	0.068
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.681	2.509
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.634	0.467
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		1.047	2.042
Less	TAX (H)		0.244	0.600
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		0.803	1.442
	Earnings / (Loss) Per Share (Rs.)		0.13	2.36

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	9.25	13.16	NA
Net Profit Margin (PBT/Sales)	(%)	12.64	19.00	NA
Return on Total Assets (PBT/Total Assets}	(%)	6.25	11.45	NA
Return on Investment (ROI) (PBT/Networth)		0.07	0.15	NA
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		5.54	3.29	3.04

LOCAL AGENCY FURTHER INFORMATION

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 two years	Yes
12) Profitability for last two years	Yes
13) Reasons for variation <> 20%	Yes
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	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	No
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) 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	Yes
34) External Agency Rating, if available	No

Note:

No Charges Exist for Company.

COMPANY OVERVIEW:

Subject is a manufacturer of Rotameters (Variable Area Flowmeters) for industrial, scientific and medical applications. The Rotameter is a vital precision instrument used to measure and control fluid flow rates. In the medical field, CM is a leading international manufacturer of Rotameters for anaesthesia applications. The company was established as Chemicals and Meters in 1967 by Raju Venkateswar (1929-94), a US-trained chemical engineer. The company operates out of its office-cum-factory premises in the Kasba Industrial Estate in Kolkata. The brand CM stands for excellence, quality and reliability.

FINANCIAL RESULTS:

The accounts for the year after meeting all expenses shows a Net Profit of Rs.1.047 millions. After providing for Income Tax and Income tax adjustment for earlier years amounting to Rs.0.326 million, and Rs.0.082 million the Company has been able to earn a surplus of Rs.0.803 million.

FUTURE PROSPECTS:

The year, 2011-12, was a challenging year in the life of the company. In 2010-11, they had managed to have significant sales performance despite the discontinuation of business with a major customer. It was therefore hoped that with new customers added in 2011-12, their sales performance would be better. However, ultimately there was a net shrinkage of business, because the previous year had included a few non-repeat orders. The hoped for business with GE Healthcare, for which a lot of work had been put in during 2009 and 2010, did not materialize.

Hence it is imperative for the company to expand sales in the core area of business, anaesthetic rotameters. The industrial rotameters business, which has shown promising results despite the de-emphasising of this in the interest of attention to the medical market, has now to be expanded. Cost-reduction through process improvement and productivity increase has to be achieved. Quality management systems have to be deepened and upgraded. Operational management needs to be pulled up.

With the global economic situation, and the dominance of large multinational companies, the market for the company’s core product, anaesthetic rotameters, is in flux. Anaesthesia Machine manufacturers are shifting to electronic machines on the one hand, and to lowcost, sub-standard rotameters from china on the other hand, while also continuing to rely on rotameter manufacturers of in Europe and North America. Hence the space for a company like CM is shrinking.

However, the brand CM continues to be respected brand in the medical market, in India and now internationally. The product speaks for itself. Hence the company should press on, persist with its efforts, and seek to place itself firmly in the international market.

FIXED ASSETS:

· Goodwill

· Leasehold Land

· Computer

· Calibrator

· Digital Camera

· Electric Installation

· Fax Machine

· Fire Fighting Equipments

· Furniture and Fixture

· Factory Building

· Motor Car

· Mould and Pattern

· Office Equipments

· Plant and Machinery

· Refrigerator

· Tools and Implements

· Water Treatment Plant

· Air Conditioning Machine

· EPABX Machine

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 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.62.34
UK Pound	1	Rs.102.06
Euro	1	Rs.84.46

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		33

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.