MIRA INFORM REPORT

Report Date :

17.06.2013

IDENTIFICATION DETAILS

Name :	MONOTECH SYSTEMS LIMITED
Registered Office :	3^rd Floor, City Center No.66, Thirumalai Road, T Nagar, Chennai – 600017, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	14.07.1999
Com. Reg. No.:	18-042840
Capital Investment / Paid-up Capital :	Rs. 21.000 Millions
CIN No.: [Company Identification No.]	U22219TN1999PLC042840
IEC No.:	0499010167
TAN No.: [Tax Deduction & Collection Account No.]	CHEM02590A
PAN No.: [Permanent Account No.]	AABCM8821D
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Dealer and Distributor of Printing Machinery and Software
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 290000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established and reputed company having a satisfactory track record. Trade relations are fair. Business is active. Payments are reported to be usually correct and as per commitments. 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.

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.

LOCATIONS

Registered Office / Corporate Office :	3^rd Floor, City Center No.66, Thirumalai Road, T Nagar, Chennai – 600017, Tamilnadu, India
Tel. No.:	91-44-28157894/ 28157928/ 28157933
Mobile No.:	91-9444047130 (Ms. Kaweri)
Fax No.:	91-44-28157973
E-Mail :	info@monotech.in service@monotech.in
Website :	http://www.monotech.in
Area :	2000 sq. ft.
Location :	Owned
Branch Office :	C-206, 1st Floor, Naraina Industrial Area, Phase-I, New Delhi 110028, India
Tel. No.:	91-11-47505614

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Tej Prakash Jain
Designation :	Managing Director
Address :	T – 2, Jain’s Wingate Garden, 1 and 2, 1^st Cross Street, Seethammal colony, Alwarpet, Chennai – 600018, Tamilnadu, India
Date of Appointment :	14.07.1999
DIN No.:	01092515
Name :	Mr. Anil Dangi
Designation :	Director
Address :	Near Azad Chowk, Bhilwara – 311001, Rajasthan State, India
Date of Appointment :	14.07.1999
DIN No.:	01419180
Name :	Mrs. Sharmila Jain
Designation :	Director
Address :	T – 2, Jain’s Wingate Garden, 1 and 2, 1^st Cross Street, Seethammal colony, Alwarpet, Chennai – 600018, Tamilnadu, India
Date of Appointment :	14.07.1999
DIN No.:	01667049

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Tej Prakash Jain	1542900
Sharmila Jain	749200
Anil Dangi	1000
S. Venkataraman	100
Nathamal Chordia	5100
Kanchana Devi	5100
Sanjay Chordia	2600
Divya Jain	178600
Sagarika Jain	15400
TOTAL	2500000

AS ON 29.09.2012

Equity Shares Break Up	Percentage of Holding
Directors or relatives of Directors	100.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Dealer and Distributor of Printing Machinery and Software

Products :

Printing Machinery and Software Basysprint UV Setter (CTcP) Violet CTP System Refurbished CTP / Imagsetters Rip and Workflow Solution Xeikon Digital Production System Konica Minolta Digital Printing System OCE Digital Production System Xante Ilumina Digital Printer Wide / Large Format Printers, CNC Routers and INKS Skyjet Wide Format and Uv Flatbed Printer GCC Wide Format Inkjet Printer Nipson digital Black and White Printer Printing Machinery and Software

GENERAL INFORMATION

Suppliers :

· Econuo Technology, China

· Grafmac Two Company Limited

· Great Computers

· Printsoff Systems Limited

· Scodix Limited

· UNI Supplies Limited

· Heights, UK

· Shanghai Lansheng, China

· Xaar Jet Limited, UK

· Zhengzhou New Century, China

· Sun Roadway

No. of Employees :

Not Available

Bankers :

· Citi Bank N A, 163, Anna Salai, 2^nd Floor, Chennai-600002, Tamilnadu, India

· Standard Chartered Bank, No.19, 2^nd Floor, Rajaji Salai, Chennai-600001, Tamilnadu, India

· HSBC Bank

· ICICI Bank Limited

· Axis Bank Limited

· State Bank of India

Facilities :

Secured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Short Term Borrowings
Loans Repayable on Demand
From Bank
Citi Bank NA	16.025	23.351
Others Credit Card
AMEX	0.247	0.000
Citi Bank	0.021	0.000
HSBC	0.108	0.000
TOTAL	16.401	23.351

Banking Relations :	--
Auditors :
Name :	Raj and Subramanian Chartered Accountant
Address :	26/18, 1^st Floor, Deenadayalu Street, T Nagar, Chennai-600017, Tamilnadu, India
PAN No.:	AACFR6024P

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs. 25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs. 25.000 Millions
Less	Call In Arrears		Rs. 4.000 Millions
	TOTAL		Rs. 21.000 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	21.000	15.500
(b) Reserves & Surplus	53.066	18.818
(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	4.231	3.569
(b) Deferred tax liabilities (Net)	0.000	0.045
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
(4) Current liabilities
(a) Short term borrowings	16.401	23.351
(b) Trade payables	121.525	56.339
(c) Other current liabilities	33.199	15.641
(d) Short-term provisions	0.000	0.000
TOTAL	249.422	133.263
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	7.551	5.643
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.142	0.000
(d) Long-term Loan and Advances	9.906	5.078
(e) Other Non-current assets	0.060	0.000
(2) Current assets
(a) Current investments	0.095	0.095
(b) Inventories	106.530	65.169
(c) Trade receivables	101.787	41.405
(d) Cash and cash equivalents	1.650	0.306
(e) Short-term loans and advances	21.701	15.567
(f) Other current assets	0.000	0.000
TOTAL	249.422	133.263

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		10.000
2] Share Application Money		0.000
3] Reserves & Surplus		9.961
4] (Accumulated Losses)		(0.029)
NETWORTH		19.932
LOAN FUNDS
1] Secured Loans		14.982
2] Unsecured Loans		1.995
TOTAL BORROWING		16.977
DEFERRED TAX LIABILITIES		0.000
TOTAL		36.909
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.127
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	26.844
	Sundry Debtors	69.733
	Cash & Bank Balances	2.789
	Other Current Assets	32.411
	Loans & Advances	2.227
Total Current Assets		134.004
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	42.793
	Other Current Liabilities	56.095
	Provisions	2.334
Total Current Liabilities		101.222
Net Current Assets		32.782
MISCELLANEOUS EXPENSES		0.000
TOTAL		36.909

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	883.071	558.206	375.486
		Other Income	1.644	4.552	13.715
		TOTAL (A)	884.715	562.758	389.201
Less	EXPENSES
		Cost of Material Consumed	764.931	504.183	378.293
		Employee benefit expenses	50.959	35.153
		Other administrative expenses	49.483	43.670
		Changes in inventories of finished goods, work in progress and stock in trade	(41.361)	(38.324)
		TOTAL (B)	824.012	544.682	378.293
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		60.703	18.076	10.908
Less	FINANCIAL EXPENSES (D)		5.872	2.677	2.964
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		54.831	15.399	7.944
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.733	1.396	1.065
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		53.098	14.003	6.879
Less	TAX (H)		18.850	5.146	2.340
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		34.248	8.857	4.539
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		18.818	9.961	5.422
	BALANCE CARRIED TO THE B/S		53.066	18.818	9.961
	Earnings Per Share (Rs.)		19.57	8.86	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.87	1.57	1.17
Net Profit Margin (PBT/Sales)	(%)	6.01	2.51	1.83
Return on Total Assets (PBT/Total Assets}	(%)	21.30	10.51	4.98
Return on Investment (ROI) (PBT/Networth)		0.72	0.41	0.35
Debt Equity Ratio (Total Debt /Networth)		0.28	0.78	0.85
Current Ratio (Current Asset/Current Liability)		1.35	1.29	1.32

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	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	No
17]	Major suppliers	Yes
18]	Major customers	No
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	No
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 Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Long Term Borrowings
Loans from Others
T P Jain	0.042	1.621
Sharmila Jian	0.001	1.660
Divya Jain	0.655	0.288
Other Loans and Advances
Advance from customers	3.398	0.000
Kotak Mahindra Prime Limited	0.135	0.000
TOTAL	4.231	3.569

FORM 8

Corporate identity number of the company	U22219TN1999PLC042840
Name of the company	MONOTECH SYSTEMS LIMITED
Address of the registered office or of the principal place of business in India of the company	3^rd Floor, City Center No.66, Thirumalai Road, T Nagar, Chennai – 600017, Tamilnadu, India
This form is for	Creation of charge
Type of charge	· Book debts · Movable property (not being pledge) · Others
Particular of charge holder	Standard Chartered Bank, No.19, 2^nd Floor, Rajaji Salai, Chennai-600001, Tamilnadu, India
Nature of instrument creating charge	Hypothecation Agreement dated 24-08-2012
Date of instrument Creating the charge	24.08.2012
Amount secured by the charge	Rs. 180.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Credit Facility. Interest / Commission - As agreed by and with the Bank from time to time. Terms of repayment As agreed by and with the Bank from time to time. Margin As agreed by and with the Bank from time to time. Extent and operation of the charge As agreed by and with the Bank from time to time.
Short particulars of the property charged (Including location of the property)	Hypothecation by way of first and exclusive charge on: a) All the stock in trade both present and future consisting of raw materials, finished goods, goods in process of manufacturing and other merchandise. b) All the present and future book debts, outstanding moneys receivable, claims and bills.

FIXED ASSETS

· Furniture and Fixtures

· Office Equipments

· Motor Car

· Computers

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 :

DPT

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	5
--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	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		47

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.