MIRA INFORM REPORT

Report Date :

01.02.2013

IDENTIFICATION DETAILS

Name :	DNV INDUSTRIAL SYSTEMS PRIVATE LIMITED
Registered Office :	D-183, New Ashok Nagar, Mehra wali gali, Near Aircel Tower, Delhi - 110092
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	15.07.2009
Com. Reg. No.:	55-192220
Capital Investment / Paid-up Capital :	Rs. 0.100 millions
CIN No.: [Company Identification No.]	U29292DL2009PTC192220
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer, Exporter and Importer of sound proof canopy, sound proof box etc
No. of Employees :	100 (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 8000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was established as a proprietory concern during 1994 by the name ‘DNV Industries’ and during 2009 it got reconstituted as a private limited company. It is an established company having a moderate track record. The financial position of the company appears to be unhealthy and needs improvement. However, trade relations are reported as fair. Business is active. Payments 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	SE 3C
Rating Explanation	Moderate performance capability and low financial strength.
Date	August - 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ li

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 :	Mr. Dev Datta
Designation :	Director
Contact No.:	91-9811235614
Date :	31.03.2012

LOCATIONS

Registered Office :	D-183, New Ashok Nagar, Mehra wali gali, Near Aircel Tower, Delhi – 110092, India
Tel. No.:	91-120-2519945
Mobile No.:	91-9811235614 (Mr. Dev Datta)
Fax No.:	91-120-2519945
E-Mail :	dnvind@yahpoo.com
Location :	Owned
Factory :	C - 64/1, UPSIDC Industrial Area, Secunderabad, Uttar Pradesh, India
Marketing office :	C - 286, Sector -10, Noida -201301, Uttar Pradesh, India

DIRECTORS

As on 30.09.2012

Name :	Mr. Dev Datta
Designation :	Director
Address :	1912, Sector -37, Noida-201301, Uttar Pradesh, India
Date of Birth/Age :	20.08.1967
Date of Appointment :	15.072009
DIN No.:	02625157
Name :	Ms. Neel Kamal Sharma
Designation :	Director
Address :	1912 Sector -37 Noida-201301 Uttar Pradesh India
Date of Birth/Age :	06.12.1970
Date of Appointment :	15.07.2009
DIN No.:	02625126

MAJOR SHAREHOLDERS

As on 30.09.2012

Names of Shareholders	No. of Shares
Dev Datta	5000
Neel Kamal Sharma	5000
Total	10000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of sound poor canopy, sound proof box etc.
Exports :
Products :	Sound Proof Box
Countries :	Srilanka Nepal Europe Gulf countries
Imports :
Products :	Raw Materials
Countries :	China South Korea
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :	Sheela Forms Limited Nikon Limited
Customers :	Wholesaler Reliance Industry Limited L G Electronic Ashok Leyland
No. of Employees :	100 (Approximately)
Bankers :	Punjab National Bank, Sector 27, Noida - 201301 Uttar Pradesh, India Tel No.: - 91-120-2521674 (Ringing but no respons)

Banking Relations :	-----
Auditors :
Name :	Manish and Associates Chartered Accountant
Address :	1^st Floor, Jay Market, Atta Sector – 27, Noida – 201301, Uttar Pradesh, India
PAN No.:	AGXPK2363H
Sister Concern :	Automotive Components Associations

CAPITAL STRUCTURE

As on 30.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs.0.100 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs. 0.100 Million

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		0.100	0.100	1.375
2] Share Application Money		0.900	0.000	0.110
3] Reserves & Surplus		1.080	0.525	8.486
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2.080	0.625	9.971
LOAN FUNDS
1] Secured Loans		0.000	0.000	1.671
2] Unsecured Loans		5.088	1.526	0.713
TOTAL BORROWING		5.088	1.526	2.384
DEFERRED TAX LIABILITIES		0.021	0.013	0.000
TOTAL		7.189	2.164	12.355
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.616	1.232	9.696
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.157	0.154	8.515
	Sundry Debtors	7.570	3.136	8.372
	Cash & Bank Balances	0.877	0.432	0.792
	Other Current Assets	0.005	0.009	0.304
	Loans & Advances	2.551	0.315	2.235
Total Current Assets		11.160	4.046	20.218
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6.798	2.514	17.047
	Other Current Liabilities	0.661	0.435
	Provisions	0.128	0.165	0.512
Total Current Liabilities		7.587	3.114	17.559
Net Current Assets		3.573	0.932	2.659
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		7.189	2.164	12.355

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	40.577	22.956
		Other Income	0.026	0.000
		TOTAL (A)	40.603	22.956	NA
Less	EXPENSES
		Cost of Materials Consumed	35.599	18.115
		Employee Benefits Expense	1.993	2.846
		Other Expenses	1.800	1.164
		TOTAL (B)	39.392	22.125	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.211	0.831	NA
Less	FINANCIAL EXPENSES (D)		0.000	0.002
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.211	0.829	NA
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.362	0.199	NA
	PROFIT BEFORE TAX (E-F) (G)		0.849	0.630	NA
Less	TAX (I)		0.294	0.195	NA
	PROFIT AFTER TAX (G-I) (J)		0.555	0.435	NA
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.525	0.090	NA
	BALANCE CARRIED TO THE B/S		1.080	0.525	0.090
	Earnings Per Share (Rs.)		55.51	43.55	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.37	1.89	NA
Net Profit Margin (PBT/Sales)	(%)	2.09	2.74	NA
Return on Total Assets (PBT/Total Assets}	(%)	5.74	11.94	NA
Return on Investment (ROI) (PBT/Networth)		0.27	1.01	NA
Debt Equity Ratio (Total Debt/Networth)		2.45	2.44	0.24
Current Ratio (Current Asset/Current Liability)		1.47	1.30	1.15

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	No
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
18]	Major customers	Yes
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	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

.

UNSECURED LOAN

Particulars	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Loans and advances from related parties	5.088	1.526
Total	5.088	1.526

RESULT OF OPERATION

The company has earned profit of Rs. 0.849 Millions Limited before tax during the year as compared to Rs. 0.630 Millions earned during the last financial year, in the same way the Gross Revenue of the Company has increased from Rs. 22.956 Millions (previous year) to Rs. 40.603 Millions (current year).

FIXED ASSETS

• Furniture and Fixtures
• Plant and Machinery
• Industrial Building
• Computer
• Car

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.53.29
UK Pound	1	Rs.84.22
Euro	1	Rs.72.22

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	SPN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
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.