MIRA INFORM REPORT

Report Date :

15.07.2013

IDENTIFICATION DETAILS

Name :	M G ELECTRONICS LIMITED
Formerly Known As :	MG ELECTRONICS PRIVATE LIMITED
Registered Office :	3, Community Centre East of Kaillash, New Delhi-110065
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	17.04.1969
Com. Reg. No.:	5-005030
Capital Investment / Paid-up Capital :	Rs. 38.262 Millions
CIN No.: [Company Identification No.]	U74899DL1969PLC005030
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Glass Fiber Products
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 470000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears slight dip in sales and profitability during 2012. However, general financial position seems to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal 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

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. Naresh Sharma
Designation :	Company Secretary
Contact No.:	91-11-26460860
Date :	11.07.2013

LOCATIONS

Registered Office :	3, Community Centre East of Kaillash, New Delhi-110065, India
Tel. No.:	91-11-26460860
Fax No.:	91-11-26431588
E-Mail :	Mg.gh2b@yahoo.in
Location :	Owned

DIRECTORS

AS ON 07.09.2012

Name :	Mr. Narendra Nath Goyal
Designation :	Director
Address :	F-93, Sector-39, Noida-201301, Uttar Pradesh, India
Date of Birth/Age :	06.08.1946
Date of Appointment :	06.11.1997
DIN No.:	00049959

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	U74899DL1969PLC005030	M G ELECTRONICS LIMITED	Director	06-11-97	06-11-97	Active	NO
2	U26101UP1976PLC004284	UP TWIGA FIBER GLASS LIMITED	Whole-time director	31-07-12	30-09-06	Active	NO
3	U26100DL1970NPL005313	ALL INDIA GLASS MFRS'. FEDERATION.	Director	21-09-07	21-09-07	Active	NO

Name :	Mr. Nirmal Dharam Vir Sood
Designation :	Director
Address :	B-111A, Greater Kailash, Part-1, New Delhi-110048, India
Date of Birth/Age :	06.09.1929
Date of Appointment :	11.10.1991
DIN No.:	00140555
Name :	Mr. Trilochan Kaur Dhillon
Designation :	Director
Address :	3, Community Centre East of Kaillash, New Delhi-110065, India
Date of Birth/Age :	11.03.1945
Date of Appointment :	23.06.1995
DIN No.:	00050493

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	U74899DL1969PLC005030	M G ELECTRONICS LIMITED	Director	23-06-95	23-06-95	Active	NO

KEY EXECUTIVES

Name :	Mr. Naresh Sharma
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 07.09.2012

Names of Shareholders	No. of Shares
Somaia Hiten Swati	127539
Binoy Somaia	63769
Bejul Somaia	63769
Nirmal Sood	63771
Kumal Kapila	15942
Nikhil Kapila	15942
Arjun Bowry	15942
Akhil Bowry	15942
TOTAL	382616

AS ON 07.09.2012

Equity Shares Break Up	Percentage of Holding
Directors or relatives of Directors	33.33
Other top fifty shareholders	66.67
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Glass Fiber Products

Products :

ITC CODE	PRODUCTS
701932.00	Glass Fiber Tissue

Terms :

Selling :

Credit

Purchasing :

Credit

GENERAL INFORMATION

No. of Employees :	100 (Approximately)
Bankers :	· State Bank of India, Mahatma Gandhi Road, New Delhi-110049, India Tel No.:-91-11-55663545

Banking Relations :	--
Auditors :
Name :	Yashpal and Ashok Chartered Accountant
Address :	718, Joshi Road, 201, Sitaram Mansion Karol Bagh, New Delhi-110005, India
PAN No.:	AAIPM7032L

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs.100/- each	Rs. 40.000 Millions
400000	11% Redeemable Cumulative Preference Shares	Rs.100/- each	Rs. 40.000 Millions
	TOTAL		Rs. 80.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
382616	Equity Shares	Rs.100/- each	Rs. 38.262 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	38.262	38.262
(b) Reserves & Surplus	81.161	75.480
(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)	119.423	113.742
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	3.576	3.603
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	1.343	1.135
Total Non-current Liabilities (3)	4.919	4.738
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	0.834	1.648
(c) Other current liabilities	0.442	0.343
(d) Short-term provisions	0.446	0.402
Total Current Liabilities (4)	1.722	2.393
TOTAL	126.064	120.873
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	43.593	17.235
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(b) Non-current Investments	0.623	0.620
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	6.661	5.734
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	50.877	23.589
(2) Current assets
(a) Current investments	0.000	0.091
(b) Inventories	1.922	3.285
(c) Trade receivables	3.418	0.999
(d) Cash and cash equivalents	68.758	91.695
(e) Short-term loans and advances	1.021	1.200
(f) Other current assets	0.068	0.014
Total Current Assets	75.187	97.284
TOTAL	126.064	120.873

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		38.262
2] Share Application Money		0.000
3] Reserves & Surplus		69.170
4] (Accumulated Losses)		0.000
NETWORTH		107.432
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		3.401
TOTAL		110.833
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		18.714
Capital work-in-progress		0.000
INVESTMENT		0.620
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3.564
	Sundry Debtors	18.613
	Cash & Bank Balances	66.171
	Other Current Assets	0.000
	Loans & Advances	12.308
Total Current Assets		100.656
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.488
	Other Current Liabilities	2.076
	Provisions	6.593
Total Current Liabilities		9.157
Net Current Assets		91.499
MISCELLANEOUS EXPENSES		0.000
TOTAL		110.833

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	34.616	39.141	7.877
		Other Income	5.923	3.367	21.978
		TOTAL	40.539	42.508	29.855
Less	EXPENSES
		Cost of Materials Consumed	3.859	4.354	3.540
		Employee Benefit Expenses	4.281	3.977	3.091
		Other Expenses	23.869	25.706	15.853
		Changes in Inventories of finished goods and WIP	1.211	(1.132)	0.423
		Prior Period Expenses	0.000	0.000	0.016
		Unspent liabilities and excess provisions written back	0.000	0.000	(0.030)
		TOTAL	33.220	32.905	22.893
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		7.319	9.603	6.962
Less/ Add	DEPRECIATION/ AMORTISATION		1.176	1.404	1.536
	PROFIT / (LOSS) BEFORE TAX		6.143	8.199	5.426
Less	TAX		0.329	1.803	1.674
	PROFIT / (LOSS) AFTER TAX		5.814	6.396	3.752
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		26.829	20.433	16.681
	BALANCE CARRIED TO THE B/S		32.643	26.829	20.433
	Earnings / (Loss) Per Share (Rs.)		15.20	16.72	9.81

Particulars	31.03.2013
Sales Turnover (Approximately)	36.000

The above information has been parted by Mr. Naresh Sharma.

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	14.34	15.05	12.57
Net Profit Margin (PBT/Sales)	(%)	17.75	20.95	68.88
Return on Total Assets (PBT/Total Assets}	(%)	4.90	6.82	4.55
Return on Investment (ROI) (PBT/Networth)		0.05	0.07	0.05
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		43.66	40.65	10.99

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	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	No
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	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	No

CORPORATE INFORMATION

The company is primarily engaged in the business in the business of manufacturing of Glass Fiber products. The registered office of the Company is located at 3, Community Centre, East of Kailash, New Delhi-110065

FIXED ASSETS

· Land and Site Development

· Building

· Plant and Machinery

· Furniture and Fixtures

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. 59.89
UK Pound	1	Rs. 90.88
Euro	1	Rs. 78.32

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
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	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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.