MIRA INFORM REPORT

Report Date :

20.05.2013

IDENTIFICATION DETAILS

Name :	MARATHAN MOTOR (INDIA) PRIVATE LIMITED
Registered Office :	House No. 177, Sector 55, Faridabad – 121001, Haryana
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.08.2006
Com. Reg. No.:	05-036117
Capital Investment / Paid-up Capital :	Rs. 2.500 Millions
CIN No.: [Company Identification No.]	U29120HR2006PTC036117
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Electrical Motors, FHP Motors, Cooler Fan, Diaphragm Pump, PMDC Motors, Booster Pump, Juicer, Mixer and Grinder.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 24000
Status :	Moderate
Payment Behaviour :	Sloe but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The profitability of the company seems to be low. The external borrowing is huge. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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

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 :	House No. 117, Sector 55, Faridabad – 121001, Haryana, India
Tel. No.:	91-129-2245788
Fax No.:	Not Available
E-Mail :	cs.faridabad@gmail.com shyam@aajvca.com marathan_motors@rediffmail.com
Factory :	Plot No. 1, Behind Gurudwara, Saroorpur Industrial Area Nangla Gujran, Faridabad, Haryana, India

DIRECTORS

As on 30.09.2011

Name :	Mr. Manoj Kumar Khandelwal
Designation :	Director
Address :	House No 541 , Sector 8, Faridabad - 121006, Haryana, India
Date of Birth/Age :	18.12.1970
Date of Appointment :	01.08.2006
DIN No.:	01754203
Name :	Mrs. Ruchi Khandelwal
Designation :	Director
Address :	House No 541 , Sector 8, Faridabad -121006, Haryana, India
Date of Birth/Age :	11.05.1972
Date of Appointment :	23.09.2009
DIN No.:	02789785

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Manoj Kumar Khandelwal	82800
Ruchi Khandelwal	167200
Total	250000

As on 10.01.2012

Names of Allottees	No. of Shares
Allegiance Trading Private Limited, India	500
Jaguar Softech Private Limited, India	500
Accent Telecom Services Private Limited, India	500
Total	1500

As on 30.09.2011

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 Electrical Motors, FHP Motors, Cooler Fan, Diaphragm Pump, PMDC Motors, Booster Pump, Juicer, Mixer and Grinder.

Product :

· Booster Pump · Electrical Motors · Grinder · PMDC Motors · Cooler Fan · Electrical Product · Juicer · Diaphragm Pump · FHP Motors · Mixer

PRODUCTION STATUS (AS ON 31.03.2011)

Capacity and Production	31.03.2011
Class of Goods :
Licenced Capacity (Electric Motors)	500000
Installed Capacity (Electric Motors)	500000
Licenced Capacity (Evaporative Air Coolers)	40000
Installed Capacity (Evaporative Air Coolers)	25000
Production :
Electric Motors (Nos.)	381238
Evaporative Air Coolers	4520

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	· Bank of India, Mohan Road, Ballabgarh, Faridabad – 121002, Haryana, India · Small Industries Development Bank of India, N.H.5-R/2, Neelam Badshah Khan Road, N.I.T, Faridabad – 121001, Haryana, India · Punjab National Bank · Axis Bank Limited

Facilities :

Secured Loan	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Loan From Bank of India (C/C A/c)	3.564	3.981
Loan From Bank of India (LC Discount)	32.143	0.000
Total	35.707	3.981

Banking Relations :	--
Auditors :
Name :	AAJV and Associates Chartered Accountants
Address :	B 399 B, Ground Floor, Nehru Ground NIT, Faridabad – 121001, Haryana, India
PAN No. :	AAFFB2557E

CAPITAL STRUCTURE

After 30.09.2011

No. of Shares	Type	Value	Amount
510000	Equity Shares	Rs.10/- each	Rs. 5.100 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
251500	Equity Shares	Rs.10/- each	Rs. 2.515 Millions

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs. 2.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		2.500	1.830	1.830
2] Share Application Money		0.000	0.499	0.499
3] Reserves & Surplus		3.554	0.975	0.314
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6.054	3.304	2.643
LOAN FUNDS
1] Secured Loans		35.707	3.981	0.360
2] Unsecured Loans		0.079	0.000	0.000
TOTAL BORROWING		35.786	3.981	0.360
DEFERRED TAX LIABILITIES		0.048	0.031	0.000
TOTAL		41.888	7.316	3.003
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.112	2.841	1.408
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.193	5.687	0.650
	Sundry Debtors	62.764	17.502	12.108
	Cash & Bank Balances	0.127	0.745	0.097
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	7.716	3.794	3.306
Total Current Assets		75.800	27.728	16.161
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	33.616	22.045	13.611
	Other Current Liabilities	2.737	0.941	0.796
	Provisions	0.702	0.304	0.202
Total Current Liabilities		37.055	23.290	14.609
Net Current Assets		38.745	4.438	1.552
MISCELLANEOUS EXPENSES		0.031	0.037	0.043
TOTAL		41.888	7.316	3.003

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	204.942	104.867
		Other Income	0.641	0.235
		TOTAL	205.583	105.102	62.900
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	203.310	104.117	62.347
	PROFIT BEFORE TAX		2.273	0.985	0.553
Less	TAX		0.000	NA	0.192
	PROFIT AFTER TAX		2.273	NA	0.361
	EARNINGS IN FOREIGN CURRENCY		USD 387385.15	USD 42681	USD 636789
	Earnings Per Share (Rs.)		3.94	NA	1.97

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.10	NA	0.57
Net Profit Margin (PBT/Sales)	(%)	1.11	0.94	NA
Return on Total Assets (PBT/Total Assets}	(%)	2.88	3.22	3.15
Return on Investment (ROI) (PBT/Networth)		0.37	0.30	0.21
Debt Equity Ratio (Total Debt /Networth)		5.91	1.20	0.14
Current Ratio (Current Asset/Current Liability)		2.04	1.19	1.11

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	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	No

UNSECURED LOAN:

Particulars	As on 31.03.2011 (Rs. In Millions)	As on 31.03.2010 (Rs. In Millions)
Loan From Ruchi Khandelwal	0.078	0.000
Total	0.078	0.000

FINANCIAL REPORT:

The Company has achieved a Sales of Rs.204.942 millions as compared to sales of Rs.104.867 millions in the previous year and other income of Rs. 0.641 million as compared to other Income Rs.0.235 million in the previous year which resulted into Net Profit of Rs.2.273 millions Before Taxes as compared to of Rs.0.985 million Before Taxes in the previous year. The management is confident to achieve good turnover and profits during the coming years.

BANKER CHARGES REPORT AS PER REGISTRY:

Corporate identity number of the company	U29120HR2006PTC036117
Name of the company	MARATHAN MOTOR (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	House No. 177, Sector 55, Faridabad – 121001, Haryana, India E-Mail : cs.faridabad@gmail.com
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Small Industries Development Bank of India, N.H.5-R/2, Neelam Badshah Khan Road, N.I.T, Faridabad – 121001, Haryana, India E-Mail : ucgaur@sidbi.in
Nature of instrument creating charge	Deed of hypothecation dated 06.01.2012
Date of instrument Creating the charge	06.01.2012
Amount secured by the charge	Rs. 7.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest : 0.5% above SIDBI's PLR, current PLR being 12.75% and current effective rate of interest being 13.25%. Term of Payment : The loan shall be repaid in 54 monthly installment comprising the first 53 installments of Rs.0.130 million each and last installment of Rs.0.110 million commencing after 6 months from the date of first disbursement of the loan. Margin : 28.02% Extent and operation of the charge : First charge by way of hypothecation of all the borrower movables/ assets including plant, machinery and other equipments acquired/ to be acquired under the project/ scheme.
Short particulars of the property charged (Including location of the property)	i. First charge by way of hypothecation of all the borrower movables/ assets including plant, machinery and other equipments acquired/ to be acquired under the project/ scheme and placed/ to be placed at Plot No.1, Behind Gurudwara, Saroorpur Industrial Area, Nangla, Gujran, Faridabad.

FIXED ASSETS:

· Computer

· Furniture and Fixture

· Office Equipment

· Plant and Machinery

· Testing and Handling Equipment

· Tools and Dies

· Scooter / Motor Cycle

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. 54.89
UK Pound	1	Rs. 83.66
Euro	1	Rs. 70.58

INFORMATION DETAILS

Report Prepared by :

ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		27

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.