MIRA INFORM REPORT

Report Date :

14.03.2013

IDENTIFICATION DETAILS

Name :	DPK ELECTROSALES (INDIA) PRIVATE LIMITED
Registered Office :	753+754, Budhwar Peth 111/12 Panacea Light, Phadke Houd Behind Singh Motors Cycle, Pune – 411002, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	25.08.2008
Com. Reg. No.:	11-132676
Capital Investment / Paid-up Capital :	Rs. 3.970 Millions
CIN No.: [Company Identification No.]	U29268PN2008PTC132676
Legal Form :	Private Limited Liability Company
Line of Business :	Trading in Electronic Components.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (17)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The management of the company has failed to file its financials with the Government Department after 2010. As per old [2010], the profitability appears low. However, business is active. Payment terms are unknown. The company can be considered for business dealings on a safe and secured 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term Bank facilities : D
Rating Explanation	Default
Date	March 12, 2013

Rating Agency Name	CARE
Rating	Short term Bank facilities : D
Rating Explanation	Default
Date	March 12, 2013

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 DECLINED

UNABLE TO CONTACT (91-20-24461013)

LOCATIONS

Registered Office :	753+754, Budhwar Peth 111/12 Panacea Light, Phadke Houd Behind Singh Motors Cycle, Pune – 411002, Maharashtra, India
Tel. No.:	91-20-24461013
Fax No.:	Not Available
E-Mail :	sanjay@dpkelectrosales.com
Website :	www.dpkelectrosales.com
Mumbai Office :	Ganga Building, Room No. 36, 3^rd Floor, Tara Temple Lane, Lamington Road, Mumbai – 400007, Maharashtra, India
Tel. No.:	91-22-23870047

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Sanjay Pukhraj Jain
Designation :	Director
Address :	384, Bhavani Peth, Pune – 411042, Maharashtra, India
Date of Birth/Age :	27.04.1970
Date of Appointment :	25.08.2008
DIN No.:	02273244
Name :	Mr. Pukhraj Kundanmal Jain
Designation :	Director
Address :	384, Bhavani Peth, Pune – 411042, Maharashtra, India
Date of Birth/Age :	24.07.1945
Date of Appointment :	25.08.2008
DIN No.:	02273237
Name :	Mrs. Anita Sanjay Jain
Designation :	Director
Address :	384, Bhavani Peth, Pune – 411042, Maharashtra, India
Date of Birth/Age :	28.10.1971
Date of Appointment :	25.08.2008
DIN No.:	02273230
Name :	Mr. Dhapubai Pukhraj Jain
Designation :	Director
Address :	384, Bhavani Peth, Pune – 411042, Maharashtra, India
Date of Birth/Age :	04.05.1946
Date of Appointment :	25.08.2008
DIN No.:	02273257
Name :	Mr. Chirag Vasant Jain
Designation :	Director
Address :	384, Bhavani Peth, Pune – 411042, Maharashtra, India
Date of Birth/Age :	30.03.1989
Date of Appointment :	25.08.2008
DIN No.:	02273274

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Sanjay Pukhraj Jain	23000
Anita Sanjay Jain	5000
Chirag Vasant Jain	5000
Alka Diamond Industries Limited	1000
Ansh Merchandise Private Limited	1250
Triangular Infocomm Limited	1250
Vanguard Jewels Limited	1500
Prabhav Industries Limited	850
Empower Industries Limited	850
Total	39700

AS ON 24.11.2010

Names of Allottees	No. of Shares
Avanc Technologies Limited, India	1700
Total	1700

AS ON 31.03.2011

Names of Allottees	No. of Shares
Sanjay Pukhraj Jain	40842
Anita Sanjay Jain	8879
Chirag Vasant Jain	8879
Total	58600

AS ON 01.02.2012

Names of Allottees	No. of Shares
Sanjay Pukhraj Jain	175
Anita Sanjay Jain	150
Chirag Vasant Jain	75
Total	400

Names of Allottees	No. of Shares
Indu Jain	39
Naresh Jain	19
Shakuntala Jain	66
Nerav Shah	33
Sanguine Media Limited, India	4410
Iris Media Works Limited, India	285
Total	4852

AS ON 31.03.2012

Names of Allottees	No. of Shares
Sanjay Pukhraj Jain	274573
Anita Sanjay Jain	59873
Chirag Vasant Jain	60302
Total	394748

AS ON 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	85.65
Others	14.35
Total	100.00

BUSINESS DETAILS

Line of Business :

Trading in Electronic Components.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Ø IDBI Bank Limited, Mittal Court, C Wing, 2nd Floor, Nariman Point, Mumbai - 400021, Maharashtra, India

Ø Oriental Bank of Commerce

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
Oriental Bank of Commerce	0.000	0.696
OBC Working Capital Finance	0.000	6.773
IDBI Working Capital Finance	24.136	0.000
LC Creditor	50.000	0.000
Total	74.136	7.469

Banking Relations :	--
Auditors :
Name :	M G M and Company Chartered Accountants
Address :	6, Bharat Arcade, 2394A, East Street, Camp Pune, Pune – 411001, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAQFM4506M
Associate Company :	Advent Electronics International Pte. Limited
Subsidiary Company :	Find Chip Online Singapore Pte. Limited

CAPITAL STRUCTURE

AS ON 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
505000	Equity Shares	Rs. 100/- each	Rs. 50.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs. 100/- each	Rs. 50.000 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50,000	Equity Shares	Rs. 100/- each	Rs. 5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
39,700	Equity Shares	Rs. 100/- each	Rs. 3.970 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		3.970	2.500
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		44.442	10.999
4] (Accumulated Losses)		0.000	0.000
NETWORTH		48.412	13.499
LOAN FUNDS
1] Secured Loans		74.136	7.469
2] Unsecured Loans		11.235	3.849
TOTAL BORROWING		85.371	11.318
DEFERRED TAX LIABILITIES		0.043	0.000
TOTAL		133.826	24.817
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.594	2.888
Capital work-in-progress		0.000	0.000
INVESTMENT		30.007	2.170
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	15.865	8.075
	Sundry Debtors	127.872	34.796
	Cash & Bank Balances	18.966	0.896
	Other Current Assets	0.000	0.000
	Loans & Advances	16.232	1.770
Total Current Assets		178.935	45.537
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	72.498	24.088
	Other Current Liabilities	5.227	1.323
	Provisions	2.306	0.430
Total Current Liabilities		80.031	25.841
Net Current Assets		98.904	19.696
MISCELLANEOUS EXPENSES		2.321	0.063
TOTAL		133.826	24.817

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income	334.398	51.917
		Other Income	2.450	0.002
		TOTAL (A)	336.848	51.919
Less	EXPENSES
		Cost of sales		46.259
		Personnel Cost		0.946
		Administrative and Other Expenses		0.352
		Remuneration to Directors		1.400
		TOTAL (B)	333.225	48.957
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			2.962
Less	FINANCIAL EXPENSES (D)			0.825
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.623	2.137
Less/ Add	DEPRECIATION/ AMORTISATION (F)		N.A.	0.390
	PROFIT BEFORE TAX (E-F) (G)		N.A.	1.747
Less	TAX (H)		N.A.	0.600
	PROFIT AFTER TAX (G-H) (I)		1.612	1.147
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	11.441	0.000
	IMPORTS
		Trading goods	13.112	1.856
	Earnings Per Share (Rs.)		40.61	45.87

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009
PAT / Total Income	(%)	0.48	2.21
Net Profit Margin (PBT/Sales)	(%)	N.A.	3.36
Return on Total Assets (PBT/Total Assets}	(%)	N.A.	3.61
Return on Investment (ROI) (PBT/Networth)		N.A.	0.13
Debt Equity Ratio (Total Debt/Networth)		1.76	0.84
Current Ratio (Current Asset/Current Liability)		2.24	1.76

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 two years	Yes
12]	Profitability for last two 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	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	No
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

UNSECURED LOANS

Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From Banks and Financial Institutions	6.797	0.000
From Directors and Shareholders	1.651	2.554
From Others	2.787	1.295
Total	11.235	3.849

FINANCIAL RESULTS:

During the financial year the company achieved a turnover of Rs. 334.400 Millions as against the turnover of Rs. 51.900 Millions in the previous year, with a profit before depreciation and tax liability of Rs. 3.623 Millions as against a profit of Rs. 2.137 Millions and post tax profit Rs. 1.612 Millions as against Rs. 1.147 Millions.

They expect that the company would continue to achieve a good turnover and profits in foreseeable future. Looking at increasing demand of products in market, future of the company seems to be brighter in the years to come.

PROSPECTS AND RETROSPECTS:

The future seems to be better as compared to the current year. The board is confident of having a good turnover in the years to come. The directors therefore view the future with renewed confidence.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U29268PN2008PTC132676
Name of the company	DPK ELECTROSALES (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	753+754, Budhwar Peth 111/12 Panacea Light, Phadke Houd Behind Singh Motors Cycle, Pune – 411002, Maharashtra, India Email: sanjay@dpkelectrosales.com
This form is for	Modification of charge
Charge identification number of the modified	10199523
Type of charge	Book debts Movable property (not being pledge) Others [Present and future goods and stock]
Particular of charge holder	IDBI Bank Limited, Mittal Court, C Wing, 2nd Floor, Nariman Point, Mumbai - 400021, Maharashtra, India Email: nita.kapur@idbi.co.in CIN No.: L65190MH2004GOI148838
Nature of description of the instrument creating or modifying the charge	Second supplemental deed of hypothecation dated 23.02.2012
Date of instrument Creating the charge	23.02.2012
Amount secured by the charge	Rs. 235.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit Rs. 25.000 Millions @ BBR + 4.50 % BG/SPLC/LC Rs. 205.000 Millions - Commission @ 2% p.a. LER Limit Rs. 5.000 Millions - As Per Treasury Rates Terms of Repayment Due for repayment within 12 months unless individual facility is due for repayment before that date or is renewed before that date, subject to review In case of LC and LER limit, repayment has to be made out of internal accruals or working capital limits Margin Cash Credit - Stock 25 %, Book Debts Upto 90 Days - 30% BG/SBLC/LC - 10% IN Fixed Deposits LER Limit - 10 % IN Fixed Deposits
Short particulars of the property charged	Cash Credit: I) Primary : Hypothecation of Stock and Book Debts up to 90 Days Letter of credit : I) Primary : A) Hypothecation of Stock and Book Debts up to 90 Days, B) Goods Under LC LER : I) Primary : Clean
Date of Modification	11.05.2010
Particulars of the present modification	As per this Present Modification dated 23.02.2012, the Total Charge now stands at Rs. 235.000 Millions comprising as follows: 1. Cash credit Limit now stands to Rs. 25.000 Millions, 2. Bank Guarantee Limit increased from Rs. 175.000 Millions to Rs. 205.000 Millions and 3. LER of Rs. 5.000 Millions. Total Facilities OF Rs. 235.000 Millions.

CONTINGENT LIABILITIES:

(Rs. in millions)

Name of Party	31.03.2010
Bank Guarantee
For Microchip Technologies Ireland Limited	4.209
For National Semiconductor Asia Pacific Pte Limited	4.400
Letter of Credit (LC)
For Amizara Corporation	20.000
For Aditya Enterprises	30.000

FIXED ASSETS:

Ø Computer

Ø Furniture and Fixtures

Ø Motor Car

Ø Plant and Machinery

Ø Office in Panacealight Building

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 records 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. 54.11
UK Pound	1	Rs. 80.84
Euro	1	Rs. 70.55

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	2
--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		17

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.