MIRA INFORM REPORT

Report Date :

09.03.2013

IDENTIFICATION DETAILS

Name :	HEGDE AGRO IMPEX PRIVATE LIMITED

Registered Office :	Hegde Farm, 2^nd K.M., B.K. Road, Sagar, Shimoga – 577 401, Karnataka

Country :	India

Financials (as on) :	31.03.2012

Date of Incorporation :	22.01.2008

Com. Reg. No.:	08-045023

Capital Investment / Paid-up Capital :	Rs.0.500 Million

CIN No.: [Company Identification No.]	U51101KA2008PTC045023

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer of Agriculture Implements.

No. of Employees :	Approximately 23 (In Office – 3, In Factory – 20)

RATING & COMMENTS

MIRA’s Rating :

Ca (20)

RATING

STATUS

PROPOSED CREDIT LINE

11-25

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

Limited with full security

Status :	Small Company

Payment Behaviour :	Slow

Litigation :	Clear

Comments :	Subject is a small company in its field. Its scale of activities is limited. Trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a secured 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 – June 30, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

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

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. Khandika Lakshminarayana Vinaya Hegde
Designation :	Director
Contact No.:	91-9663433808
Date :	14.02.2013

LOCATIONS

Registered Office/ Factory :	Hegde Farm, 2^nd K.M., B.K. Road, Sagar, Shimoga – 577 401, Karnataka, India
Tel. No.:	91-8183-229731/ 229363/ / 221233/ 221234
Mobile No.:	91-9663433808 (Mr. Khandika Lakshminarayana Vinaya Hegde)
Fax No.:	91-8183-228781
E-Mail :	hegdeagroimpex@gmail.com hegdeagroimpex@hotmail.com info@hegdeagroimpex.com
Website :	http://www.hegdeagroimpex.com
Area :	7 Acres
Location :	Owned

DIRECTORS

As on 29.09.2012

Name :	Mr. Khandika Lakshminarayana Vinaya Hegde
Designation :	Director
Address :	Jambagaru, Belalamakki Hegde Farm, B.K. Road, Sagar, Shimoga – 577 401, Karnataka, India
Date of Birth/Age :	01.10.1985
Date of Appointment :	22.01.2008
Din No.:	01939317

Name :	Mr. Lakshminarayana Khandika Thimmappa Venkatagiriyappa Hegde
Designation :	Director
Address :	135, Yalagalale Village, Hegde Farm, B.K. Road, Sagar, Shimoga – 577 401, Karnataka, India
Date of Birth/Age :	22.04.1957
Date of Appointment :	22.01.2008
Din No.:	01939259

Name :	Mr. Sanjay Kankika Lakshminarayana Hegde
Designation :	Director
Address :	Yalagalale, Hegde Farm, Sagar, Shimoga – 577 401, Karnataka, India
Date of Birth/Age :	06.05.1990
Date of Appointment :	07.09.2011
Din No.:	03613885

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders		No. of Shares
Holekoppa Govindarao Ravi		16666
Lakshminarayana Khandika Thimmappa Venkatagiriyappa Hegde		16670
Khandika Lakshminarayana Vinaya Hegde		16664
Total		50000

As on 29.09.2012

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Agriculture Implements.

Products :	· Motocart · Brush Cutters · Earth Auger · Power Sprayer · Towable Backhoe · Irrigation Sprinkler · Sprinkler Fittings · Earth Auger Bits

Imports :
Products :	Agriculture Implements
Countries :	China

Terms :
Selling :	Advance

Purchasing :	Advance

GENERAL INFORMATION

Suppliers :

· Honda Siel Power Products Limited

Customers :

Others (Dealers)

· Vinayak Bhat (Yellapur, Karnataka)

No. of Employees :

Approximately 23 (In Office – 3, In Factory – 20)

Bankers :

· Corporation Bank, Sagar, Shimoga, Karnataka, India

· The Saraswat Co-operative Bank Limited, Karve Road Branch, Pune – 411 004, Maharashtra, India

· Karnataka Bank Limited, Sagar – 577 401, Karnataka, India

· Union Bank of India, Moti Bagh, 1, Palika Bhawan, New Delhi – 110 066, India

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Banks (Secured by first mortgage/charge on Plant and Machinery and second charge on and personal guarantee of Directors)	0.000	0.609
Total	0.000	0.609


Banking Relations :	--

Auditors :
Name :	Ravisha P.G. Chartered Accountant
Address :	1^st Floor, Sahakara Shree, 3^rd Cross, Durgigudi, Shimoga – 577 201, Karnataka, India
Tel. No.:	91-8182-227917
E-Mail :	ravisha009@gmail.com
Income-tax PAN of auditor or auditor's firm :	AFMPR6946K

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.10/- each	Rs.0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	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	0.500	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.097	0.021	0.000
4] (Accumulated Losses)		0.000	0.000	(0.025)
NETWORTH		0.597	0.521	0.475
LOAN FUNDS
1] Secured Loans		0.000	0.609	0.792
2] Unsecured Loans		0.746	0.463	0.015
TOTAL BORROWING		0.746	1.072	0.807
DEFERRED TAX LIABILITIES		0.002	0.005	0.002

TOTAL		1.345	1.598	1.284

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		0.378	0.364	0.279
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	1.193	0.982	0.746
	Sundry Debtors	0.000	0.199	0.000
	Cash & Bank Balances	0.012	0.041	0.023
	Other Current Assets	0.031	0.031	0.031
	Loans & Advances	0.102	0.097	0.200
Total Current Assets		1.338	1.350	1.000
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.289	0.067	0.004
	Other Current Liabilities	0.015	0.020	0.027
	Provisions	0.079	0.053
Total Current Liabilities		0.383	0.140	0.031
Net Current Assets		0.955	1.210	0.969

MISCELLANEOUS EXPENSES		0.012	0.024	0.036

TOTAL		1.345	1.598	1.284

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	4.016	2.079	0.661
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA

Less	EXPENSES
		Office Expenses	NA	NA	NA
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA	NA

	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		0.136	0.116	(0.037)

Less/ Add	DEPRECIATION/ AMORTISATION		0.035	0.038	0.012

	PROFIT/ (LOSS) BEFORE TAX		0.101	0.078	(0.049)

Less	TAX		0.025	0.032	0.002

	PROFIT/ (LOSS) AFTER TAX		0.076	0.046	(0.051)

	Earnings/ (Loss) Per Share (Rs.)		1.52	0.92	NA

Expected Sales (2012-2013): Rs.8.000 millions

The above information has been parted by Mr. Khandika Lakshminarayana Vinaya Hegde.

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Net Profit Margin (PBT/Sales)	(%)	2.51	3.75	(7.41)

Return on Total Assets (PBT/Total Assets}	(%)	5.89	4.55	(3.83)

Return on Investment (ROI) (PBT/Networth)		0.17	0.15	(0.10)

Debt Equity Ratio (Total Debt/Networth)		1.25	2.06	1.70

Current Ratio (Current Asset/Current Liability)		3.49	9.64	32.26

LOCAL AGENCY FURTHER INFORMATION

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	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	Yes
15) Capital in the business	Yes
16) Details of sister concerns	No
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	No

Unsecured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
SHORT TERM BORROWINGS
Related Parties	0.306	0.313
Deposits from Shareholders	0.440	0.150
Total	0.746	0.463

TRADE REFERENCES:

· Vinayak Bhat (Yellapur, Karnataka)

· Honda Siel Power Products Limited

FIXED ASSETS:

· Site 01

· Site 02

· Computer

· Tools and Equipments

· 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.54.40
UK Pound	1	Rs.81.57
Euro	1	Rs.71.23

INFORMATION DETAILS

Information Gathered by :	NYN

Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		20

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.

MIRA INFORM REPORT

1.193

0.982

0.000

0.199

0.012

0.041

0.031

0.031

0.102

0.097

1.338

1.350

0.289

0.067

0.015

0.020

0.079

0.053

0.383

0.140

0.955

1.210

3.75

4.55

0.15

2.06

9.64

Unit