MIRA INFORM REPORT

Report Date :

17.06.2013

IDENTIFICATION DETAILS

Name :	MEGAWIN SWITCHGEAR PRIVATE LIMITED
Registered Office :	35/1, 35/2, 35/3, Narasothipatty, P.B. No.434, Alagapuram Post, Perumal Malai Adivaram, Salem - 636 004, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	12.10.2005
Com. Reg. No.:	11-012211
Capital Investment / Paid-up Capital :	Rs.50.200 millions
CIN No.: [Company Identification No.]	U31200TZ2005PTC012211
TAN No.: [Tax Deduction & Collection Account No.]	CHEM08714G
PAN No.: [Permanent Account No.]	AAECM4516E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Medium Voltage Switchgear Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 2405000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having a satisfactory track record. Financially company seems to be strong. 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 condition.

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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term fund based facilities BBB
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation. It carry moderate credit risk.
Date	April 2012

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.

LOCATIONS

Registered / Head Office / Factory :	35/1, 35/2, 35/3, Narasothipatty, P.B. No.434, Alagapuram Post, Perumal Malai Adivaram, Salem - 636 004, Tamilnadu, India
Tel. No.:	Board: 91-427-2330498/ 2330288/ 2447099/ 2430571 Direct: 91-427-2430568
Fax No.:	91-427-2330502
E-Mail :	info@megawin.co.in salem@megawin.co.in vak333@gmail.com
Website :	http://www.megawinswitchgear.com
Factory :	2/18, 2/19 Unit-II, Narasothipatti, Perumal Mala Adivaran, Salem - 636004 Tamilnadu, , India
Windmill :	Thandyarkulam Village, Near Panagudi , Tirunelveli District, Tamilnadu, India
Branch Office :	Located at: v Chennai v Bangalore v Mumbai v Pune v Hyderabad v Kerala v Bhopal v Vadodara v Delhi v Kolkata

DIRECTORS

As on: 28.09.2012

Name :	Mrs. Jayanthi Ganesan
Designation :	Whole-Time Director
Address :	No.13K, Gandhi Road, Salem – 636007, Tamilnadu, India
Date of Birth/Age :	12.12.1960
Qualification :	M.A.
Experience :	17 Years
Date of Appointment :	12.10.2005
DIN No.:	00003441
Name :	Mr. Subramaniam Ganesan
Designation :	Managing Director
Address :	No.12K, Gandhi Road, Salem – 636007, Tamilnadu, India
Date of Birth/Age :	13.09.1954
Qualification :	B.E., (Electrical Engineering)
Experience :	32 Years
Date of Appointment :	12.10.2005
DIN No.:	00003449

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 28.09.2012

Names of Shareholders	No. of Shares
S. Ganesan	4518000
G. Jayanthi Ganesan	502000
Total	5020000

As on: 28.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Medium Voltage Switchgear Products.

Products :

Item Code No	Product Description
85023100	Wind Mill
85365010	Control and Switchgear
85.35	Switch Gears
85.37	Circuit Breakers
85.37	Transformers
85.37	Power Generation

GENERAL INFORMATION

Customers :

v TNEB

v PSEB

v MSEB

v NLC

v KPTCL

v DVB

v Emami

v Tuticorin Port Trust

v DCM Daewoo

v MM Forging Limited

v Tamilnadu Newsprint Limited

v Seshasayee Paper Boards

No. of Employees :

Not Available

Bankers :

State Bank of India, Siruthozil Branch, 120/2 and 120/3, Cherry Road, Chinnayan Towers, Salem – 636 007, Tamilnadu, India

Facilities :

Secured Loan	31.03.2012 [Rs. in Millions]	31.03.2011 [Rs. in Millions]
Long Term Borrowing
Rupee term loan from bank	12.542	24.068
Total	12.542	24.068
Short Term Borrowing
Rupee term loan from bank	11.400	11.400
Other Loan and Advance	521.271	438.791
Total	532.671	450.191

Banking Relations :	--
Auditors :
Name :	V. Ananthakrishnan Chartered Accountant
Address :	18, Seventh Cross, Maravaneri Extension, Salem - 636007, Tamilnadu, India
PAN No. :	ABYPA7169F
Associates :	v P.P.B. Constructions Private Limited CIN No. : U45200TN2006PTC060950 PAN No. : AADCP9988J v Megawin Fabrications PAN No. : AAOFM3328H v Megawin Structural PAN No.:AARFM4524E

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs.60.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5020000	Equity Shares	Rs.10/- each	Rs.50.200 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2102		31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital		50.200		50.200
(b) Reserves & Surplus		551.167		461.874
(c) Money received against share warrants		0.000		0.000
(2) Share Application money pending allotment		0.000		0.000
(3) Non-current liabilities
(a) long-term borrowings		12.542		24.068
(b) Deferred tax liabilities (Net)		29.482		30.678
(c) Other long term liabilities		0.000		0.000
(d) long-term provisions		0.000		0.000
(4) Current liabilities
(a) Short term borrowings		532.671		450.191
(b) Trade payables		155.185		205.972
(c) Other current liabilities		98.165		84.254
(d) Short-term provisions		143.055		97.601
TOTAL		1572.467		1404.838
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets		232.921		247.811
(ii) Intangible Assets		0.000		0.000
(iii) Capital work-in-progress		3.140		2.351
(iv) Intangible assets under development		0.000		0.000
(b) Non-current Investments		3.000		3.000
(c) Deferred tax assets (net)		0.000		0.000
(d) Long-term Loan and Advances		29.783		43.266
(e) Other Non-current assets		0.000		0.000
(2) Current assets
(a) Current investments		0.000		0.000
(b) Inventories		632.035		592.273
(c) Trade receivables		384.124		328.853
(d) Cash and cash equivalents		89.349		61.370
(e) Short-term loans and advances		198.115		125.914
(f) Other current assets		0.000		0.000
TOTAL		1572.467		1404.838
SOURCES OF FUNDS			31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital			50.200
2] Share Application Money			0.000
3] Reserves & Surplus			375.633
4] (Accumulated Losses)			0.000
NETWORTH			425.833
LOAN FUNDS
1] Secured Loans			408.132
2] Unsecured Loans			0.000
TOTAL BORROWING			408.132
DEFERRED TAX LIABILITIES			31.686
TOTAL			865.651
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]			255.207
Capital work-in-progress			0.000
INVESTMENT			2.500
DEFERREX TAX ASSETS			0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories		329.816
	Sundry Debtors		392.348
	Cash & Bank Balances		60.072
	Other Current Assets		0.000
	Loans & Advances		166.969
Total Current Assets			949.205
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors		198.149
	Other Current Liabilities		90.207
	Provisions		52.905
Total Current Liabilities			341.261
Net Current Assets			607.944
MISCELLANEOUS EXPENSES			0.000
TOTAL			865.651

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1304.059	1095.178	1018.260
		Other Income	2.186	7.412	11.520
		TOTAL	1306.245	1102.590	1029.780
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	1065.725	885.398	789.886
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		240.520	217.192	239.894
Less	FINANCIAL EXPENSES		81.176	56.695	59.138
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		159.344	160.497	180.756
Less/ Add	DEPRECIATION AND MISCELLANEOUS EXPENDITURE WRITE OFF		25.793	30.567	29.388
	PROFIT BEFORE TAX		133.551	129.930	151.368
Less	TAX		44.259	43.688	53.450
	PROFIT AFTER TAX		89.292	86.242	97.918
Less	EXCEPTIONAL ITEM		0.000	0.587	0.136
	PROFIT FOR THE YEAR		89.292	85.655	97.782
	Earnings Per Share (Rs.)		17.79	17.18	19.50

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	6.83	7.82	9.51
Net Profit Margin (PBT/Sales)	(%)	10.24	11.86	14.86
Return on Total Assets (PBT/Total Assets}	(%)	8.53	9.58	12.57
Return on Investment (ROI) (PBT/Networth)		0.22	0.25	0.35
Debt Equity Ratio (Total Debt/Networth)		0.91	0.93	0.96
Current Ratio (Current Asset/Current Liability)		3.36	2.86	2.78

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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	Yes
19]	Payments terms	No
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

FIXED ASSETS:

v Land

v Buildings

v Furniture

v Plant and Machinery

v Wind Mill

v Vehicles

v Computer

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.57.74
UK Pound	1	Rs.90.64
Euro	1	Rs.77.02

INFORMATION DETAILS

Report Prepared by :

ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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

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.