MIRA INFORM REPORT

Report Date :

02.10.2013

IDENTIFICATION DETAILS

Name :	MAGAL ENGINEERING COMPANY INDIA PRIVATE LIMITED (w.e.f. 21.08.2008)
Formerly Known As :	MAGAL LVD INDIA PRIVATE LIMITED
Registered Office :	No. 264/75, 2^nd Main, 36^th Cross, 8^th Block, Jayanagar, Bangalore- 560082, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	01.09.1999
Com. Reg. No.:	08-025662
Capital Investment / Paid-up Capital :	Rs. 2.500 Millions
CIN No.: [Company Identification No.]	U02922KA1999PTC025662
TAN No.: [Tax Deduction & Collection Account No.]	BLRM06551G
PAN No.: [Permanent Account No.]	AABCM9083D
Legal Form :	Private Limited Liability Company
Line of Business :	Trader, Exporter and Importer of Sheet Metal Working Machines, Metal Cutting / Forming Machines, etc.
No. of Employees :	20 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 13000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Even though sales turnover of the company has increased, company recorded losses from its operating activity during financial year 2012. Trade relation reported to be fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealing 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.

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. Sanjay G.M.
Designation :	Account Officer
Contact No.:	91-80-41475983
Date :	01.10.2013

LOCATIONS

Registered Office :	No. 264/75, 2^nd Main, 36^th Cross, 8^th Block, Jayanagar, Bangalore- 560082, Karnataka, India
Tel. No.:	91-80-41475983
Fax No.:	Not Available
E-Mail :	ppswamy_49@hotmail.com graplind@gmail.com accounts@magal.co.in
Website :	http://www.magal.co.in
Corporate Office :	No. 310, 8^th Cross, Pennya Industrial Area, 4^th Phase, Bangalore-560058, Karnataka, India

DIRECTORS

As on: 29.09.2012

Name :

Mr. Magal Krishnaswamy Narasinga Rao

Designation :

Managing director

Address :

38, 2nd Main, 2nd Cross, Mico Layout, BTM, II Stage, Bangalore - 560076, Karnataka, India

Date of Birth/Age :

02.12.1959

Date of Appointment :

01.09.1999

DIN No.:

00676940

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	U02922KA1999PTC025662	MAGAL ENGINEERING COMPANY INDIA PRIVATE LIMITED	Managing director	01/09/1999	01/09/1999	-	Active	NO
2	U63040KA2005PTC036513	SWIFT DESTINATIONS PRIVATE LIMITED	Director	12/12/2005	12/12/2005	-	Strike off	NO
3	U33100KA2009PTC051862	MAGAL HEALTHCARE PRIVATE LIMITED	Director	17/12/2009	17/12/2009	-	Active	NO
4	U74900KA2010PTC054745	DETAIL ADVERTISERS PRIVATE LIMITED	Director	11/08/2010	11/08/2010	-	Active	NO
5	U29253KA2013FTC068456	LVD-STRIPPIT INDIA PRIVATE LIMITED	Director	05/04/2013	05/04/2013	-	Active	NO

Name :

Mrs. Sheila Narasinga Rao

Designation :

Director

Address :

Skanda 38, 2nd Main, 2nd Cross, Mico Layout, BTM Ii Stage, Bangalore - 560076, Karnataka, India

Date of Birth/Age :

05.06.1959

Date of Appointment :

01.09.1999

DIN No.:

02509231

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	U02922KA1999PTC025662	MAGAL ENGINEERING COMPANY INDIA PRIVATE LIMITED	Director	01/09/1999	01/09/1999	-	Active	NO
2	U63040KA2005PTC036513	SWIFT DESTINATIONS PRIVATE LIMITED	Director	12/12/2005	12/12/2005	-	Strike off	NO
3	U33100KA2009PTC051862	MAGAL HEALTHCARE PRIVATE LIMITED	Director	17/12/2009	17/12/2009	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Sanjay G.M.
Designation :	Account Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Magal Krishnaswamy Narasinga Rao	122500
Sheila Narasinga Rao	127500
Total	250000

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader, Exporter and Importer of Sheet Metal Working Machines, Metal Cutting / Forming Machines, etc.
Products :	Marketing of Machineries and Spares Sheet Metal Working Machines Metal Cutting Forming Machines
Exports :
Products :	Marketing of Machineries and Spares Sheet Metal Working Machines Metal Cutting Forming Machines
Countries :	Singapore Srilanka Bangladesh
Imports :
Products :	Marketing of Machineries and Spares Sheet Metal Working Machines Metal Cutting Forming Machines
Countries :	Kenya Taiwan Belgium Spain Japan Singapore
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Retailers and End Users

No. of Employees :

20 (Approximately)

Bankers :

Indian Bank, SSI Branch, 130, Ramaiah Complex, 100 Ft. Road, Peenya, Bangalore - 560057, Karnataka, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long term borrowings
Term loans from banks	2.356	0.577
Short term borrowings
Bank Overdraft	8.539	4.916
Total	10.895	5.493

Banking Relations :	--
Auditors 1 :
Name :	Gunasheela and Associates Chartered Accountants
Address :	No. 140, B, 3^rd Floor, 9^th Cross, Margosa Road, Malleshwaram, Bangalore – 560003, Karnataka, India
Tel. No.:	91-80-42067082
Fax No.:	91-80-42199185
E-Mail :	guna@gunasheelaassociates.com
Auditors 2 :
Name :	K.R. Seshadri Chartered Accountant
Address :	12^th Main, ‘E’ Block, Rajajinagar, 2^nd Stage, Bangalore-560010, Karnataka, India
Pan No.:	AFAPS4865G
Companies in which Key Management Personnel/relatives of Key Management Personnel can exercise significant influence:	Detail Advertisers Private Limited Magal Healthcare Private Limited

CAPITAL STRUCTURE

As on: 31.03.2012

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

As on: 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs. 5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
33480	Equity Shares	Rs.10/- each	Rs. 0.334 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2.500	2.500
(b) Reserves & Surplus	0.957	1.601
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	3.457	4.101
(3) Non-Current Liabilities
(a) long-term borrowings	12.191	8.711
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	4.260	4.777
(d) long-term provisions	0.913	0.000
Total Non-current Liabilities (3)	17.364	13.488
(4) Current Liabilities
(a) Short term borrowings	8.539	4.916
(b) Trade payables	5.891	3.991
(c) Other current liabilities	11.487	7.771
(d) Short-term provisions	0.058	0.167
Total Current Liabilities (4)	25.975	16.845
TOTAL	46.796	34.434
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	16.511	5.058
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	3.250	3.462
(d) Long-term Loan and Advances	1.237	1.250
(e) Other Non-current assets	3.372	1.048
Total Non-Current Assets	24.370	10.818
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	4.567	7.378
(c) Trade receivables	14.488	11.948
(d) Cash and cash equivalents	0.673	1.434
(e) Short-term loans and advances	2.698	2.856
(f) Other current assets	0.000	0.000
Total Current Assets	22.426	23.616
TOTAL	46.796	34.434

SOURCES OF FUNDS			31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital			0.335
2] Share Application Money			0.000
3] Reserves & Surplus			0.477
4] (Accumulated Losses)			0.000
NETWORTH			0.812
LOAN FUNDS
1] Secured Loans			5.760
2] Unsecured Loans			10.451
TOTAL BORROWING			16.211
DEFERRED TAX LIABILITIES			0.000
TOTAL			17.023
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]			5.249
Capital work-in-progress			0.000
INVESTMENT			0.000
DEFERREX TAX ASSETS			3.734
CURRENT ASSETS, LOANS & ADVANCES
	Inventories		10.421
	Sundry Debtors		6.595
	Cash & Bank Balances		1.398
	Other Current Assets		0.000
	Loans & Advances		7.992
Total Current Assets			26.406
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities
	Provisions
Total Current Liabilities			18.366
Net Current Assets			8.040
MISCELLANEOUS EXPENSES			0.000
TOTAL			17.023

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Turnover			37.868
		Other Income			NA
		TOTAL	92.050	81.718	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL		80.206	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		Including Expenses	Including depreciation	NA
Less/ Add	DEPRECIATION/ AMORTISATION		2.763		1.062
	PROFIT /(LOSS) BEFORE TAX		(0.212)	1.475	(12.392)
Less	TAX		0.434	0.350	(3.772)
	PROFIT /(LOSS) AFTER TAX		(0.646)	1.125	(8.620)
	EARNINGS IN FOREIGN CURRENCY		NA	10.483	NA
	IMPORTS		NA	NA	22.046
	Earnings Per Share (Rs.)		(2.59)	0.45	(36.99)

Particulars	31.03.2013
Sales Turnover (Approximately)	80.000

Expected Sales (2013-2014): Rs. 80.000 Millions

The above information has been parted by Mr. Sanjay G.M.

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(0.70)	1.38	NA
Return on Total Assets (PBT/Total Assets}	(%)	(0.49)	4.76	(39.15)
Return on Investment (ROI) (PBT/Networth)		(0.06)	0.36	(15.26)
Debt Equity Ratio (Total Debt/Networth)		5.99	3.32	19.97
Current Ratio (Current Asset/Current Liability)		0.86	1.40	1.43

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last four 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	Yes
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	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 LOAN

(Rs. In Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
Long term borrowings
Loan and advance from related parties	4.009	5.613
Working capital loans	1.617	2.521
Other loans	4.209	0.000
Total	9.835	8.134

OPERATIONS

The operations of the company have improved significantly and directors continue their efforts to further streamline the operations so that the company’s performance further improves.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10415762	30/03/2013	7,000,000.00	INTEC CAPITAL LIMITED	701,MANJUSHA, 57 NEHRU PLACE, NEW DELHI, DELHI -  110019, INDIA	B71982797
2	10346597	10/08/2011	9,500,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W , MUMBAI, MAHARASHTRA - 400013, INDIA	B27071950
3	10180748	10/09/2009	5,000,000.00	INDIAN BANK	III BLOCK,, JAYANAGAR, BANGALORE, KARNATAKA - 560  011, INDIA	A71296040
4	10080009	28/12/2007	1,276,000.00	INDIAN BANK	SSI BRANCH, 130, RAMAIAH COMPLEX, 100 FT. ROAD, PEENYA, BANGALORE, KARNATAKA - 560057, INDIA	A29178530

FIXED ASSETS:

· Factory Land

· Factory Building

· Vehicles

· Computer

· Office Equipments

· Fax Machine

· PABX

· UPS

· Others

· Furniture and Fixture

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. 62.36
UK Pound	1	Rs. 101.20
Euro	1	Rs. 84.53

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--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		30

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.