MIRA INFORM REPORT

Report Date :

16.05.2013

IDENTIFICATION DETAILS

Name :	MICRO-TECH CNC PRIVATE LIMITED

Registered Office :	No.68/1, Fort Street, Attibele, Anekal Taluka, Bangalore-562107, Karnataka

Country :	India

Financials (as on) :	31.03.2012

Date of Incorporation :	24.04.1995

Com. Reg. No.:	08-017661

Capital Investment / Paid-up Capital :	Rs.20.000 Millions

CIN No.: [Company Identification No.]	U85110KA1995PTC017661

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer of Diesel Engine Components and Automobile Components.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 180000

Status :	Satisfactory

Payment Behaviour :	Usually correct

Litigation :	Clear

Comments :	Subject is an established company having a satisfactory track record. There appears a growth in the sales turnover from 2011 to 2012. Trade relations are fair. Business is active. Payment terms are usually correct. The company can be considered 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 – 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

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 :	No.68/1, Fort Street, Attibele, Anekal Taluka, Bangalore-562107, Karnataka, India
Tel. No.:	91-4344-260408
Fax No.:	Not Available
E-Mail :	microtechcnc@microtechcnc.in ca.jelvarav.hsr@gmail.com
Website :	www.microtechcnc.in

Factory :	Plot No 16-E, Sipcot, Phase-II, Hosur - 635109 , Tamilnadu, India
Tel. No.:	91-4344-260408/ 260307
Fax No.:	91-4344-260409
	microtechcnc@microtechcncn.in

DIRECTORS

As on: 24.09.2012

Name :

Mr. Govindaswamy Muralibabu

Designation :

Whole Time Director

Address :

A-100, Sipcot Housing Colony, Krishnagiri, Hosur-635126, Tamilnadu, India

Date of Birth/Age :

09.05.1962

Date of Appointment :

24.04.1995

DIN No.:

01834887

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U85110KA1995PTC017661	MICRO-TECH CNC PRIVATE LIMITED	Whole-time director	24/04/1995	24/04/1995	-	Active	NO
2	U28910TZ2007PTC013572	MICRO-TECH CNC PRESSINGS INDIA PRIVATE LIMITED	Director	26/03/2007	26/03/2007	-	Active	NO
3	U29299TZ2009PLC015516	HOSUR SMALL MICRO ENGINEERING COMPONENTS LIMITED	Director	30/09/2011	25/08/2011	-	Active	NO

Name :

Mr. Pulikkottil Johnsonpaul

Designation :

Whole Time Director

Address :

No.147, Sipcot Colony, Krishnagiri, Hosur-635126, Tamilnadu, India

Date of Birth/Age :

09.03.1964

Date of Appointment :

24.04.1995

DIN No.:

01843437

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U85110KA1995PTC017661	MICRO-TECH CNC PRIVATE LIMITED	Whole-time director	24/04/1995	24/04/1995	-	Active	NO
2	U28910TZ2007PTC013572	MICRO-TECH CNC PRESSINGS INDIA PRIVATE LIMITED	Director	26/03/2007	26/03/2007	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 24.09.2012

Names of Shareholders	No. of Shares
G Murali Babu	770000
PJohnson Paul	770000
P. T. Paul	55000
G. Revathi Ammal	55000
M. Saraswathi	140000
J. Irene Paul	175000
G. Gowri	35000
Total	2000000

Equity Share Break up (Percentage of Total Equity)

As on: 24.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Diesel Engine Components and Automobile Components.

Products :

Product	ITC Code
Diesel Engine Components and Automobile Components	84099111

PRODUCTION STATUS (AS ON 31.03.2012)

Particulars	Unit	Installed Capacity	Actual Production
Diesel Engine	Nos	3500000	3637102

GENERAL INFORMATION

Customers :

Overseas Clients

Parker Hannifin Limited
Cooper Standard Automotive Pty Limited
Bosch Rexroth Limited Scotland

Domestic Clients

Hyundai Motor India Limited
Bosch India Limited
Behr India Limited
IFB Automotive Limited
LM Glasfiber India Private Limited
Suzlon Energy Limited

No. of Employees :

Not Available

Bankers :

City Union Bank Limited, No-12, Ist Floor, Sri Krishna Complex, Tank Street, Hosur - 635109, Tamilnadu, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
LONE TERM BORROWINGS
Term loans
CUB Term Loan - 351566	4.231	21.994
CUB Term Loan – 724233	3.770	5.232
CUB Term Loan – 768878	21.863	19.624
(Secured By Hyphothication/ Mortgage of Land, Building and Plant and Machinery of the company Situated at Hosur, Chennai and Coimbatore)
Terms of Repayment: 5.1
Kotak Mahindra Finance - Car Loan	0.000	0.034
Kotak Mahindra Finance	0.084	0.560
(Secured By Hyphothication/ Mortgage of Motor Car of the Company)
SHORT TERM BORROWINGS
Loans repayable on demand
CUB Cash Credit - Limit Rs. 37.500 Millions	40.231	39.794
CUB Cash Credit Adhoc Against Customer LC- Limit Rs. 23.500 Millions	19.469	0.000
Total	89.648	87.238
Terms of Repayment: Term Loan from Kotak Mahindra Finance outstanding Rs.0.560 Million is repayable in 36 montly instalment out of whichRs. 0.097 Million for 12 Months, 0.088 Million for 12 Months and Rs. 0.022 Million for last 12 Months including interest @ 7.5% from July 2010 And being paid regularly. (Secured By Book Debts and Stock in Trade Situated at Factory along with factory Land, Building and Machinery, All these assets hyphothecated commanly for Term Loan and Working Capital)


Banking Relations :	--

Auditors :
Name :	M S Raj and Company Chartered Accountants
Address :	No.A-41/1, TNHB, Bagalur Hudco, Hosur-635109, Tamilnadu, India
PAN No.:	AFOPS9775B

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount

3500000	Equity Shares	Rs.10/- each	Rs.35.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

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		20.000	20.000	20.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		25.384	18.485	15.011
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		45.384	38.485	35.011
LOAN FUNDS
1] Secured Loans		89.648	87.238	58.832
2] Unsecured Loans		0.000	1.200	2.112
TOTAL BORROWING		89.648	88.438	60.944
DEFERRED TAX LIABILITIES		2.456	2.469	1.842

TOTAL		137.488	129.392	97.797

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		110.027	107.617	90.095
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.051	0.051	0.051
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	17.965	13.503	12.994
	Sundry Debtors	38.062	24.859	19.598
	Cash & Bank Balances	6.692	3.626	5.388
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	20.681	18.972	18.937
Total Current Assets		83.400	60.960	56.917
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	21.919	14.602	7.632
	Other Current Liabilities	24.368	19.445	37.526
	Provisions	9.703	5.189	4.108
Total Current Liabilities		55.990	39.236	49.266
Net Current Assets		27.410	21.724	7.651

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		137.488	129.392	97.797

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	220.768	125.315	117.203
		Other Income	1.230	0.872	0.673
		TOTAL (A)	221.998	126.187	117.876

Less	EXPENSES
		Cost of materials consumed	100.925	48.465	91.491
		Changes in inventories of finished goods work-in-progress	3.802	(3.909)
		Employee benefits expense	29.955	20.264
		Other expenses	45.249	29.505
		TOTAL (B)	179.931	94.325	91.491

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		42.067	31.862	26.385

Less	FINANCIAL EXPENSES (D)		19.247	16.278	14.104

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		22.820	15.584	12.281

Less/ Add	DEPRECIATION/ AMORTISATION (F)		12.106	10.422	8.252

	PROFIT BEFORE TAX (E-F) (G)		10.712	5.162	4.029

Less	TAX (H)		3.823	1.688	1.275

	PROFIT AFTER TAX (G-H) (I)		6.889	3.474	2.754

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		15.985	12.510	9.756

	BALANCE CARRIED TO THE B/S		22.874	15.985	12.510

	EARNINGS IN FOREIGN CURRENCY		20.123	13.871	2.253

	IMPORTS
		Raw Materials	14.172	0.441	0.708
		Stores & Spares	0.077	0.056	0.231
		Plant and Machinery	0.000	16.254	3.226
	TOTAL IMPORTS		14.249	16.751	4.165

	Earnings Per Share (Rs.)		3.45	1.74	1.56

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.10	2.75	2.34

Net Profit Margin (PBT/Sales)	(%)	4.85	4.12	3.44

Return on Total Assets (PBT/Total Assets}	(%)	5.54	3.06	2.74

Return on Investment (ROI) (PBT/Networth)		0.24	0.13	0.12

Debt Equity Ratio (Total Debt /Networth)		1.97	2.30	1.74

Current Ratio (Current Asset/Current Liability)		1.49	1.55	1.16

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	No
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	No

PERFORMANCE REVIEW:

During the year 2011-12 the company made a turnover of Rs. 220.768 Millions and earned a Profit of Rs.10.712 Millions after charging depreciation of Rs. 12.106 Millions. However efforts are being made for better performance in the coming year.

FINANCE:

The company is enjoying term loam and working capital facilities of Rs.100.000 Millions and Rs.37.500 Millions respectively from City Union Bank Hosur Branch. However, term loan outstanding as on 31st March 2012 is Rs.50.232 Millions and repayment against term loan is being paid regularly. Further the new fabrication orders are being executed against LC issued by the customer. However on the basis of LC, the working capital ad-hoc loan of Rs.25.000 Millions availed in the year, in addition to the existing working capital of Rs.37.500 Millions and the ad-hoc loan is Rs.75.000 Millions as on date of this report.

UNSECURED LOAN:

(Rs. in Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
LONE TERM BORROWINGS
Loans and advances from related parties	0.000	1.200
Total	0.000	1.200

FIXED ASSETS:

Land
Building
Marketing Office
Plant and Machinery
Electrification
Generator Set
Furniture and Fittings
Tools and Fixtures
Office Equipments
Computer
Motor Cars

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.54.78
UK Pound	1	Rs.83.38
Euro	1	Rs.70.72

INFORMATION DETAILS

Report Prepared by :

RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--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		49

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

17.965

38.062

6.692

0.000

20.681

83.400

21.919

24.368

9.703

55.990

27.410

3.10

4.85

5.54

0.24

1.97

1.49

Unit