MIRA INFORM REPORT

Report Date :

12.12.2013

IDENTIFICATION DETAILS

Name :	POM SYSTEMS AND SERVICES PRIVATE LIMITED
Registered Office :	No. 75, 6^th Main, 3^rd Phase, Peenya Industrial Area, Bangalora – 560058, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	05.06.2006
Com. Reg. No.:	08-027199
Capital Investment / Paid-up Capital :	Rs.0.335 Million
CIN No.: [Company Identification No.]	U74999KA2000PTC027199
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Service Provider of Invertors, UPS, Batteries, Transformers Industrial Solar Energy Products.
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 102000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has seen a drastic dip in its net profitability during 2013. The company possesses a modest financial profile. The rating also take into consideration the mediocre scale of operations and competition threat from organised as well as unorganised players. However, trade relation are fair. Business is active. Payment terms are reported as 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.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	SP 3B
Rating Explanation	Moderate performance capability and moderate financial strength.
Date	July 2013

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 (GENERAL DETAILS)

Name :	Ms. Soumya
Designation :	Office Executive
Contact No.:	91-80-23722583
Date :	10.12.2013

LOCATIONS

Registered Office / Factory / Repair Centre :	No. 75, 6^th Main, 3^rd Phase, Peenya Industrial Area, Bangalora – 560058, Karnataka, India
Tel. No. :	91-80-23722583 / 28376660 (10 lines)
Fax No. :	91-80-28375256
E-Mail :	accounts@poweroneups.com pornservices@poweroneups.com poweroneups@poweroneups.com
Website :	www.poweroneups.com
Area :	1000 Sq ft
Location :	Owned

DIRECTORS

As on 30.09.2013

Name :

Mr. Bhima Rao Ippalavalasa

Designation :

Director

Address :

No. 431, KRS Gowda Extension, HMT Layout, Nelagadaranahalli, Nagasandra Post, Bangalore – 560073, Karnataka, India

Date of Birth/Age :

29.12.1959

Qualification :

Diploma In Electronics and Communication

Experience :

26 Years

Date of Appointment :

05.06.2000

DIN No. :

01361057

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	U32109KA1998PTC023553	POWER-ONE MICRO SYSTEMS PRIVATE LIMITED	Director	30/03/1998	30/03/1998	-	Active	NO
2	U74999KA2000PTC027199	POM SYSTEMS AND SERVICES PRIVATE LIMITED	Director	05/06/2000	05/06/2000	-	Active	NO

Name :

Mr. Rajesh Ramanna Mayasandra

Designation :

Director

Address :

No. 91, “ANAGHA”, 3rd Cross, 3rd Phase, 4th Block, BSK 3rd Stage, Bangalore - 560085, Karnataka, India

Date of Birth/Age :

10.04.1968

Qualification :

Diploma In Electronics and Communication

Experience :

17 Year

Date of Appointment :

05.06.2000

DIN No. :

01361100

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	U32208KA1994PTC016078	PROLINE POWER SYSTEMS PRIVATE LIMITED	Director	17/08/1994	17/08/1994	-	Active	NO
2	U32109KA1998PTC023553	POWER-ONE MICRO SYSTEMS PRIVATE LIMITED	Director	30/03/1998	30/03/1998	-	Active	NO
3	U74999KA2000PTC027199	POM SYSTEMS AND SERVICES PRIVATE LIMITED	Director	05/06/2000	05/06/2000	-	Active	NO

Name :

Mr. Kandasamy Jayanthi

Designation :

Director

Address :

No.12, First Main Road, Navashakti Nagar, Oulgaret, Pondicherry – 605010, U.T, India

Date of Birth/Age :

10.06.1974

Qualification :

Diploma In Electronics and Communication

DIN No. :

02696637

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Bhima Rao Ippalavalasa	3250
Rajesh Ramanna Mayasandra	16750
Mary Mamees	13500
Total	33500

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Service Provider of Invertors, UPS, Batteries, Transformers Industrial Solar Energy Products.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

150 (Approximately)

Bankers :

Canara Bank, Infantry Road Branch, No 91, Infantry Road, Banglore – 560001, Karnataka, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Canara Bank Vehicle Loan	0.083	0.266
Canara Bank Vehicle Loan (Omini)	0.107	0.193
Canara Bank Term loan (Secured by Hypothecation of Vehicles and Other Assets)	0.232	0.311
Long term loan
Kotak Mahindra Vehicles Loan	0.245	0.345
Reliance Capital Limited	0.046	0.174
SHORT TERM BORROWINGS
Canara Bank, Working Capital Limit (Against Hypothecation of Stock and Other Current Assets)	1.020	0.000
Total	1.733	1.289

Banking Relations :	--
Auditors :
Name :	V.K.S. Shetty and Company Chartered Accountants
Address :	No.55, Ram Nivas, 1st Floor, 10th Cross, Mahalakshmipuram, 2^nd Stage, Bangalore – 560086, Karnataka, India
Tel. No. :	91-80-23193645, 23193646
Fax No. :	91-80-23193646
E-Mail :	Vksshetty_co@yahoo.com
PAN No. :	AEOPS9245M
Enterprise with Common Key Management, Personnel :	Power One Micro System Private Limited

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.10/- each	Rs.1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
33500	Equity Shares	Rs.10/- each	Rs.0.335 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	0.335	0.335	0.335
(b) Reserves & Surplus	25.018	21.292	15.842
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.135	0.135	0.135
Total Shareholders’ Funds (1) + (2)	25.488	21.762	16.312
(3) Non-Current Liabilities
(a) long-term borrowings	0.713	1.289	1.528
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	0.713	1.289	1.528
(4) Current Liabilities
(a) Short term borrowings	1.295	1.400	2.516
(b) Trade payables	8.243	7.142	2.977
(c) Other current liabilities	3.326	5.787	5.168
(d) Short-term provisions	6.127	5.842	9.288
Total Current Liabilities (4)	18.991	20.171	19.949
TOTAL	45.192	43.222	37.789
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	8.847	9.413	10.009
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.253	0.199	0.146
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.541	0.665	0.598
Total Non-Current Assets	9.641	10.277	10.753
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	3.681	1.476	2.219
(c) Trade receivables	26.703	27.267	21.100
(d) Cash and cash equivalents	3.038	2.251	1.882
(e) Short-term loans and advances	1.641	1.472	1.587
(f) Other current assets	0.488	0.479	0.248
Total Current Assets	35.551	32.945	27.036
TOTAL	45.192	43.222	37.789

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013	31.03.2012
	SALES
		Income
		Other Income
		TOTAL		89.261	86.208
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL		82.328	76.288
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION			6.933	9.920
Less	FINANCIAL EXPENSES			0.529	0.662
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION			6.404	9.258
Less/ Add	DEPRECIATION/ AMORTISATION			1.003	1.169
	PROFIT/ (LOSS) BEFORE TAX			5.401	8.089
Less	TAX			1.674	2.640
	PROFIT/ (LOSS) AFTER TAX			3.727	5.449
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			20.377	14.927
	BALANCE CARRIED TO THE B/S			24.103	20.377
	Earnings / (Loss) Per Share (Rs.)			111.25	162.66

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Return on Total Assets (PBT/Total Assets}	(%)	12.02	18.80	NA
Return on Investment (ROI) (PBT/Networth)		0.21	0.37	NA
Debt Equity Ratio (Total Debt/Networth)		0.08	0.12	0.25
Current Ratio (Current Asset/Current Liability)		1.87	1.63	1.36

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	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	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%	-----
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	Yes
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 address of the company has been shifted from # 419/58, 14^th Cross, 20^th Main 1 Block, Rajajinagr, Banglore – 560010, Karnataka, India to the present address w.e.f. 01.08.2011

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
SHORT TERM BORROWINGS
Power-one Micro Sytem Private Limited (Company in which directors are interested)	0.275	1.400
Total	0.275	1.400

INDEX OF CHARGES

.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10284907	20/04/2011	263,000.00	CANARA BANK	INFANTRY ROAD BRANCH, NO.91, INFANTRY ROAD, BANGALORE, Karnataka - 560001, INDIA	B12236261
2	10232629	17/07/2010	417,000.00	CANARA BANK	INFANTRY ROAD BRANCH, NO.91, INFANTRY ROAD, BANGALORE, Karnataka – 560S001, INDIA	A90977240
3	10163075	12/08/2008	761,000.00	CANARA BANK	INFANTRY ROAD BRANCH, NO.91, INFANTRY ROAD, BANGALORE, Karnataka - 560001, INDIA	A55074710
4	90192660	16/07/2010 *	6,967,000.00	CANARA BANK	INFANTRY ROAD BRANCH, NO.91, INFANTRY ROAD, BANGALORE, Karnataka - 560001, INDIA	A90976614

* Date of charge modification

OPERATION AND FUTURE OUTLOOK:

The company had achived annual gross turnover of Rs. 89.261 millions (Rs. 86.208 millions) from the business of marketing and servicing of Electronic Equipment such as UPS and Stabilisaers and from other receipts. The company is having very good quantum of orders on hand and it is expected to continue its consistet growyh both in terms of turnover and profitability as in the earlier years.

FIXED ASSETS

Ø Land and Building

Ø AC Power Meter

Ø Office Equipment

Ø Computer

Ø Delivery Van

Ø Digital Multimeter

Ø Furniture and Fixture

Ø Tata Sumo

Ø U P S

Ø Electroni Equipment

Ø Motor Car

Ø 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.62.33
UK Pound	1	Rs.100.79
Euro	1	Rs.84.15

INFORMATION DETAILS

Information Gathered by :	NAY
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		31

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.