MIRA INFORM REPORT

Report Date :

27.02.2013

IDENTIFICATION DETAILS

Name :	PRECISION HONING SOLUTIONS PRIVATE LIMITED
Registered Office :	Shop No. 20, Grow More Tower, Plot No. 5, Sector - 2, Kharghar, Navi Mumbai – 410210, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	30.06.2009
Com. Reg. No.:	11-193656
Capital Investment / Paid-up Capital :	Rs. 0.500 Million
CIN No.: [Company Identification No.]	U29253MH2009PTC193656
Legal Form :	Private Limited Liability Company
Line of Business :	Trader and Importer of Machinery Spare Parts.
No. of Employees :	20 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 16000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered normal 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.

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

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. Shankar
Designation :	Accounts Department
Contact No.:	91-22-27745766
Date :	25.02.2013

LOCATIONS

Registered Office :	Shop No. 20, Grow More Tower, Plot No. 5, Sector - 2, Kharghar, Navi Mumbai – 410210, Maharashtra, India
Tel. No.:	91-22-27745766/ 32222491
Fax No.:	91-22-27745766
E-Mail :	skarnani@phspl.com adcosta@phspl.com sales@phspl.com info@phspl.com
Website :	www.phspl.com
Location :	Rented
Corporate Office :	Office #512, 5th Floor, The Land Mark, Plot No. 26A, Sector 7 Kharghar, Navi Mumbai, Maharashtra, India
Location :	Rented
Technical Centers :	Center – 1 Sub Plot No. 3, Final Plot No.109 – 111, Ramtekdi Industrial Estate, Hadapsar, Pune – 411028, Maharashtra, India
Technical Centers :	Center – 2 G 716, Chopanki Industrial Area, Bhiwadi - 301019, Rajasthan, India

DIRECTORS

AS ON 24.09.2012

Name :	Shubhra Terrence Miranda
Designation :	Nominee director
Address :	3, Marian Terrace, 68, Chapel Road, Bandra (West), Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	12.07.1993
Date of Appointment :	30.06.2009
DIN No.:	00443035
Name :	Mr. Terrence Ivan Miranda
Designation :	Director
Address :	42, Columbia CHS Limited, St. Dominic Road, Bandra (West), Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	14.09.1974
Date of Appointment :	20.01.2012
DIN No.:	00443071

KEY EXECUTIVES

Name :	Mr. Shankar
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 24.09.2012

Names of Shareholders	No. of Shares
Omira Marketing Private Limited, India	50000
Total	50000

AS ON 24.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader and Importer of Machinery Spare Parts.
Imports :
Products :	Machinery Spare Parts
Countries :	Ø USA
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :	Retailers and End Users
No. of Employees :	20 (Approximately)
Bankers :	Indian Bank, Kharghar Branch, No. 27-30, Ground Floor, Grow More Tower, Plot No. 5, Sector 2, Kharghar, Navi Mumbai - 410210, Maharashtra, India

Banking Relations :	--
Auditors :
Name :	S.M. Lasrado and Company Chartered Accountants
Address :	Silver Symphony, 1st Floor, 37, Church Avenue, Santacruz (West), Mumbai – 400054, Maharashtra, India
Tel. No.:	91-22-26054108/ 1441/ 2015
Fax No.:	91-22-26052501
Website :	www.smlasrado.com
Income-tax PAN of auditor or auditor's firm :	AAAPL5821E
Holding Company :	Omira Marketing Private Limited [U51900MH1993PTC072785]

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50,000	Equity Shares	Rs. 10/- each	Rs. 0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50,000	Equity Shares	Rs. 10/- each	Rs. 0.500 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		0.500	0.100	0.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3.421	1.320	0.000
4] (Accumulated Losses)		0.000	0.000	(0.484)
NETWORTH		3.921	1.420	(0.384)
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		16.300	6.608	2.425
TOTAL BORROWING		16.300	6.608	2.425
DEFERRED TAX LIABILITIES		0.063	0.019	0.000
TOTAL		20.284	8.047	2.041
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.303	1.149	1.025
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	16.642	10.568	0.939
	Sundry Debtors	27.307	12.109	1.697
	Cash & Bank Balances	2.735	0.901	2.571
	Other Current Assets	1.751	0.033	0.000
	Loans & Advances	1.971	0.496	0.241
Total Current Assets		50.406	24.107	5.448
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	25.048	13.990	3.790
	Other Current Liabilities	4.750	2.572	0.675
	Provisions	1.627	0.647	0.000
Total Current Liabilities		31.425	17.209	4.465
Net Current Assets		18.981	6.898	0.983
MISCELLANEOUS EXPENSES		0.000	0.000	0.033
TOTAL		20.284	8.047	2.041

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	90.337	30.254	7.078
		Other Income	0.304	0.068	0.017
		TOTAL	90.641	30.322	7.095
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	87.162	27.478	7.466
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		3.479	2.744	(0.371)
Less/ Add	DEPRECIATION/ AMORTISATION		0.353	0.274	0.113
	PROFIT BEFORE TAX		3.126	2.470	(0.484)
Less	TAX		1.024	0.667	0.000
	PROFIT AFTER TAX		2.102	1.803	(0.484)
	Earnings Per Share (Rs.)		42.04	36.06	(9.68)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.32	5.95	(6.82)
Net Profit Margin (PBT/Sales)	(%)	3.46	8.16	(6.84)
Return on Total Assets (PBT/Total Assets}	(%)	6.05	9.78	7.48
Return on Investment (ROI) (PBT/Networth)		0.80	1.74	1.26
Debt Equity Ratio (Total Debt/Networth)		4.16	4.65	(6.32)
Current Ratio (Current Asset/Current Liability)		1.60	1.40	1.22

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
For Expenses	1.817	0.000	0.000
For Imports and Others	23.231	13.990	3.790
Total	25.048	13.990	3.790

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	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	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	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	No

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Loan from Company under same Management	12.800	4.108
Loan from Directors	1.000	1.000
Loans from Holding Company	2.500	1.500
Total	16.300	6.608

Note: The registered address of the company has been shifted from 3, Marian Terrace, 68, Chapel Road, Bandra (West), Mumbai – 400050, Maharashtra, India to the present w.e.f.01.09.2009

OPERATIONS:

The Company has recorded a turnover of Rs. 90.337 Millions (P.Y. Rs. 30.254 Millions). The Company has achieved this result mainly due to the efforts of the management alongwith the staff. The company hopes to do better in the coming year.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U29253MH2009PTC193656
Name of the company	PRECISION HONING SOLUTIONS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Shop No. 20, Grow More Tower, Plot No. 5, Sector - 2, Kharghar, Navi Mumbai – 410210, Maharashtra, India Email: skarnani@phspl.com
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	Indian Bank, Kharghar Branch, No. 27-30, Ground Floor, Grow More Tower, Plot No. 5, Sector 2, Kharghar, Navi Mumbai - 410210, Maharashtra, India Email: khargar@indianbank.co.in
Nature of description of the instrument creating or modifying the charge	a) Agreement for Open Cash Credit (Stocks / Book debts). b) Agreement of Hypothecation of Movables.
Date of instrument Creating the charge	05.09.2012
Amount secured by the charge	Rs. 15.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest OCC : BR+ 3.00% p.a. + 0.50% p.a. (Presently at 14.00% p.a.). Sub Limit : Inland / Import LC : As per HO guidelines. Terms of Repayment Repayable on Demand. Margin OCC : 25% SL : Inland / Import LC : 10% Extent and Operation of the charge The charge is to operate as security, by way of first exclusive charge, for the due repayment of the credit facility of Rs.15.000 Millions together with interests, additional interest, costs, charges, expenses and all other moneys payable by the Company to the Bank from time to time in terms of sanction. Others Facility : ------------------ Open Cash Credit : Rs.15.000 Millions SL : Inland/ Import LC : (Rs.2.500 Millions)
Short particulars of the property charged	Hypothecation by way of first charge of the Company's : a) Book debts, receivable and other claims which are due and owing to the Company from time to time. b) Goods, produce, merchandise, stock stored or to be stored from time to time in premises at Shop No.20, Grow More Tower, Plot No.5, Sector 2, Kharghar, Navi Mumbai - 410 210 or elsewhere.

FIXED ASSETS:

Ø Office Equipment

Ø Computers, Printers and Software

Ø Electrical Fittings

Ø Furniture and Fixture

Ø Machinery and Equipments

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. 54.04
UK Pound	1	Rs. 81.80
Euro	1	Rs. 71.41

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.