MIRA INFORM REPORT

Report Date :

01.10.2013

IDENTIFICATION DETAILS

Name :	SVASCA INDUSTRIES (INDIA) LIMITED
Registered Office :	SF 20, Cross River Mall, Plot No. 9 B and 9 C (CBD) Shahdara, New Delhi-110032
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.05.1997
Com. Reg. No.:	55-87192
Capital Investment / Paid-up Capital :	Rs.29.515 Millions
CIN No.: [Company Identification No.]	u28999dl1997plc087192
TAN No.: [Tax Deduction & Collection Account No.]	dels15013F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Servo Stabilizers.
No. of Employees :	200 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 240000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Management have failed to file its financial details since 2011 with government department. Mr. Siddharth Tayal, director has provided general details and denied to disclose financial detail to us. However, trade relations are fair. Business is active. Payments are reported to be unknown. 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 – 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

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating = B
Rating Explanation	Risk prone credit quality and very high credit risk
Date	31.07.2012

Rating Agency Name	CRISIL
Rating	Short Term Rating = A1
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	31.07.2012

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 (GENERAL DETAILS)

Name :	Mr. Siddharth Tayal
Designation :	Director
Contact No.:	91-9811030312
Date :	23.09.2013

LOCATIONS

Registered Office :	SF 20, Cross River Mall, Plot No. 9 B and 9 C (CBD) Shahdara, New Delhi-110032, India
Mobile No. :	91-9811030312 / 9971992827 [Mr. Siddharth Tayal]
E-Mail :	mktg_svasca@yahoo.co.in lallandcompany@gmail.com naveen@canaveen.com
Area :	2000 Sq. ft.
Location :	Owned
Corporate Office :	A-56, Jhlimil Industrial Area Shahadra, New Delhi-110095, India
Factory :	48^th Mile Stone, Delhi-Mathura Road, Village-Prithla, Palwal-121102, Haryana, India
Tel. No.:	91-1275-401700/01-03/270399
Fax No.:	91-1275-401702

DIRECTORS

As on 24.09.2010

Name :

Mr. Shyam Tayal

Designation :

Director

Address :

C-74, Surya Nagar, Sahibabad, Ghaziabad – 201 0011, Uttar Pradesh

Date of Birth/Age :

06.10.1956

Qualification :

B.Com

Date of Appointment :

12.05.1997

Din No.:

01049173

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	Company/ LLP Status	Defaulting status
1	U28999DL1997PLC087192	SVASCA INDUSTRIES (INDIA) LIMITED	Managing director	01/10/2010	12/05/1997	Active	NO

Name :

Mr. Siddharth Tayal

Designation :

Director

Address :

C-74, Surya Nagar, Sahibabad, Ghaziabad – 201 0011, Uttar Pradesh

Date of Birth/Age :

14.08.1997

Qualification :

M.B.A.

Date of Appointment :

01.04.1998

Din No.:

01049154

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	Company/ LLP Status	Defaulting status
1	U28999DL1997PLC087192	SVASCA INDUSTRIES (INDIA) LIMITED	Whole-time director	01/10/2010	12/05/1997	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.09.2010

Names of Shareholders	No. of Shares
Aditya Tayal	73600
Ajay Kumar Rai	2000
Ajay Kumar Verma	26500
Anshu Tayal	34500
Anju Deswal	24000
Badri Raman	4500
Baljit	4000
Bijender Singh Deswal	38500
Cheena Tayal	74310
Chintamani	10000
Deep Chand	27700
Deepak Mittal	25000
Deep Shikha Aggarwal	100
Girish Tayal	304010
Gulshan Chawla	4500
Khalid	42800
H.K.Khare	16000
H.C.Gupta	35000
Heena Tayal	9700
J.B.Goyal	59000

As on 24.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	14.00
Directors or relatives of directors	86.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Servo Stabilizers.
Products :	Power Distribution Transformers Furnace transformers Servo Stabilizers Rectifier transformers, etc
Exports :
Products :	Servo Stabilizers
Countries :	Africa Asia
Terms :
Selling :	L/C Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

200 [Approximately]

Bankers :

· Bank of India, Connaught Circus Branch, H-0 16, Indra Place, Middle Circle, Connaught Circle New Delhi-110001, India

· Allahabad Bank

· ING Vysya Bank

· HDFC bank

· ICICI bank Limited

· IDBI bank

· Standard Chartered Bank

Facilities :

SECURED LOAN	As on 31.03.2010 [Rs. in Millions]	As on 31.03.2009 [Rs. in Millions]
Bank of India (Cash Credit against hypothecation of stocks and book debts)	116.700	76.434
Bank of India (against hypothecation of vehicle)	0.619	0.901
Bank of India (against hypothecation of machinery)	0.000	0.741
ICICI bank Limited (Against Hypothecation Vehicle)	0.131	0.164
ICICI bank Limited (Against Hypothecation Vehicle)	0.075	0.287
TML Finance Services Limited (Against hypothecation of vehicle)	0.000	0.475
HDFC bank (Against hypothecation of vehicle )	0.000	0.059
Tata motors Finance Limited (against hypothecation of vehicles)	0.270	0.528
Intec Security Limited (Mortgagee of leases Deed)	2.207	5.614
Kotak Mahindra Bank Limited (Against hypothecation of vehicle)	0.380	0.620
Total	120.382	85.823

Banking Relations :	--
Financial Institution :	Dewan Housing Finance Corporation Limited, Warden House, 2^nd Floor, Sir P M Road, Fort, Mumbai-400001, Maharashtra, India
Auditors :
Name :	Naveen upadhyaya and associates Chartered Accountants
Address :	E 186, Basement, krishna Market, Lajpat Nagar – I, New Delhi-110024, India
Tel. No.:	91-11-29810619
Mobile No.:	91-9911334882
E-Mail :	naveenupadhyaya@yahoo.com
Pan No.:	AADFN1033H

CAPITAL STRUCTURE

As on 24.09.2010

Authorised Capital : Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.30.715 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2951540	Equity Shares	Rs.10/- each	Rs.29.515 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		29.515	28.515	28.515
2] Share Application Money		0.300	0.000	0.000
3] Reserves & Surplus		31.502	9.858	7.615
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		61.317	38.373	36.130
LOAN FUNDS
1] Secured Loans		120.382	85.823	73.137
2] Unsecured Loans		41.919	34.931	24.813
TOTAL BORROWING		162.301	120.754	97.950
DEFERRED TAX LIABILITIES		0.985	0.000	0.000
TOTAL		224.603	159.127	134.080
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		27.471	20.398	17.220
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	68.004	56.589	69.427
	Sundry Debtors	151.191	121.882	68.255
	Cash & Bank Balances	11.925	0.752	6.807
	Other Current Assets	0.000	9.424	0.000
	Loans & Advances	21.958	21.710	22.511
Total Current Assets		253.078	210.357	167.000
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	50.863	56.723	36.411
	Other Current Liabilities	3.862	13.644	13.252
	Provisions	1.221	1.375	0.745
Total Current Liabilities		55.946	71.742	50.408
Net Current Assets		197.132	138.615	116.592
MISCELLANEOUS EXPENSES		0.000	0.000	0.268
Deferred Revenue Expenditure		0.000	0.114	0.000
TOTAL		224.603	159.127	134.080

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales Turnover	350.456	315.157	188.836
		Job Work	1.449	6.713	1.019
		Other Income	2.935	3.187	4.927
		TOTAL (A)	354.840	325.057	194.782
Less	EXPENSES
		Raw Material Consumed	281.955	262.843	144.024
		Administrative Expenses	7.945	3.824	1.855
		Personal Expense	5.396	4.333	2.737
		Increase/(Decrease) in Finished Goods	(11.665)	(7.968)	(3.293)
		Selling and Distribution Expense	7.137	1.664	0.725
		Manufacturing Expenses	37.673	40.599	33.455
		TOTAL (B)	328.441	305.295	179.503
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		26.399	19.762	15.279
Less	FINANCIAL EXPENSES (D)		19.798	14.449	11.725
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6.601	5.313	3.554
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.624	2.179	1.713
	PROFIT BEFORE TAX (E-F) (G)		3.977	3.134	1.841
Less	TAX (I)		1.333	0.892	0.407
	PROFIT AFTER TAX (G-I) (J)		2.644	2.242	1.434
	Earnings / (Loss) Per Share (Rs.)		0.90	--	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.75	0.69	0.74
Net Profit Margin (PBT/Sales)	(%)	1.13	0.96	0.97
Return on Total Assets (PBT/Total Assets)	(%)	1.42	1.36	1.00
Return on Investment (ROI) (PBT/Networth)		0.06	0.08	0.05
Debt Equity Ratio (Total Liability/Networth)		3.56	5.02	4.11
Current Ratio (Current Asset/Current Liability)		4.52	2.93	3.31

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	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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
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	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

NOTE:

The Registered Office of the company has been shifted from E-186, Krishna Market, Lajpat Nagar – I, New Delhi-110024, India to the present address w.e.f. 30.03.2011

FINANCIAL RESULTS:

During the year, the gross receipts of the company are Rs. 354.839 Millions, as compared to Rs. 325.057 Millions during the previous year. The Net Profit of the company has been increased from Rs. 3.134 Millions to Rs. 3.976 Millions during the year.

UNSECURED LOAN

Particular	As on 31.03.2010 [Rs. in Millions]	As on 31.03.2009 [Rs. in Millions]
Deferred Sales Tax (Haryana State)	17.975	17.975
ICICI Bank Limited	0.000	0.099
ICICI Bank Limited	0.000	0.078
Standard Chartered Bank	1.879	0.000
HDFC Bank	0.000	0.112
Kotak Mahindra Bank	0.000	0.197
India Bull Credit Bank	0.329	0.919
ABN Amro Bank	1.753	2.448
Bajaj Finance Limited	1.321	1.894
Barclays Bank PLC	2.289	3.281
Reliance Capital Limited	1.448	2.000
Rcligare Finvest Limited	2.379	3.355
Mahinder Tayal	0.027	0.181
Cheena Tayal	1.190	1.090
Shyan Tayal	0.045	0.045
Girish Tayal	0.500	0.800
Tayal Strips Private Limited	0.608	0.252
Vasundra Tayal	0.161	0.171
Siddharth Tayal	0.229	0.034
NSlC	9.650	0.000
Vijay Tayal	0.136	0.000
Total	41.919	34.931

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10373275	27/07/2012	16,200,000.00	INTEC CAPITAL LIMITED	701,MANJUSHA, 57 NEHRU PLACE, NEW DELHI, DELHI -  110019, INDIA	B56693328
2	10318275	31/10/2011	1,760,613.00	DEWAN HOUSING FINANCE CORPORATION LIMITED	WARDEN HOUSE 2ND FLOORSIR P M ROAD, FORT, MUMBAI,  MAHARASHTRA - 400001, INDIA	B25564030
3	10245603	20/05/2013 *	300,000,000.00	BANK OF INDIA	CONNAUGHT CIRCUS BRANCH, H-16,, INDIRA PALACE, CONNAUGHT CIRUCS, NEW DELHI, DELHI - 110001, INDIA	B77842219
4	10028107	21/11/2006	15,000,000.00	BANK OF INDIA	CONNAUGHT CIRUCS, NEW DELHI, DELHI - 110001, INDIA	A07615792
5	90040126	04/06/2005	65,500,000.00	BANK OF INDIA	CONNAUGHT CIRCUS BRANCH, NEW DELHI, DELHI, INDIA	-
6	90038142	18/05/2011 *	320,000,000.00	BANK OF INDIA	CONNAUGHT CIRCUS BRANCH, H-16, INDIRA PALACE, CON  NAUGHT CIRCUS, NEW DELHI, DELHI - 110001, INDIA	B14280465
7	90035143	06/01/2000 *	2,000,000.00	BANK OF INDIA	CONNAUGHT CIRCUS, NEW DELHI, DELHI - 110001, INDIA	-
8	90034610	09/11/2000 *	2,000,000.00	BANK OF INDIA	CONNAUGHT CIRCUS, NEW DELHI, DELHI, INDIA	-

* Date of charge modification

Fixed Assets

· Office Equipments

· Land

· Building

· Plant and Machinery

· Cellular

· Wireless

· Computer

· Xerox Machine

· EPBAX

· Cooler

· Wireless

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.68.78
UK Pound	1	Rs.101.42
Euro	1	Rs.84.67

INFORMATION DETAILS

Information Gathered by :	NAY
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.