MIRA INFORM REPORT

Report Date :

15.10.2013

IDENTIFICATION DETAILS

Name :	AXIS ELECTRICAL COMPONENTS (INDIA) PRIVATE LIMITED
Registered Office :	Axis House, Plot No.104-C, Government Industrial Estate, Kandivali (West), Mumbai – 400 067, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	21.05.1997
Com. Reg. No.:	11-108174
Capital Investment / Paid-up Capital :	Rs.15.000 millions
CIN No.: [Company Identification No.]	U31200MH1997PTC108174
TAN No.: [Tax Deduction & Collection Account No.]	MUMA18966D
PAN No.: [Permanent Account No.]	AAACA9691C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Electrical Components.
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 720000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There appears some dip in the profitability of the company. However, networth of the company appears to be satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. The company can be considered normal 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 – 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 (GENERAL DETAILS)

Name :	Ms. Dipti Shinde
Designation :	Marketing Department
Contact No.:	91-22-28696636
Date :	02.10.2013

LOCATIONS

Registered Office/ Factory :	Axis House, Plot No.104-C, Government Industrial Estate, Kandivali (West), Mumbai – 400 067, Maharashtra, India
Tel. No.:	91-22-67756000/ 28696636
Fax No.:	91-22-28678491
E-Mail :	axisindia@vsnl.com info@axis-india.com marketing@axis-india.com (Marketing) purchase@axis-india.com (Purchase) logistics@axis-india.com (Logistics) accounts@axis-india.com (Accounts)
Website :	www.axis-india.com
Location :	Owned

DIRECTORS

AS ON 05.09.2012

Name :

Mr. Kanderp Sevantilal Khandwala

Designation :

Director

Address :

401, Megh Apartment, 4^th Floor Military Road, Juhu, Mumbai – 400049, Maharashtra, India

Date of Birth/Age :

27.09.1958

Date of Appointment :

21.05.1997

DIN No.:

00514555

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	U51900MH1977PTC004407	PARAMOUNT COMMERCIAL CORPN PRIVATE LIMITED	Director	26/05/1980	26/05/1980	-	Active	NO
2	U31200MH1997PTC108174	AXIS ELECTRICAL COMPONENTS (INDIA) PRIVATE LIMITED	Director	21/05/1997	21/05/1997	-	Active	NO
3	U74999MH1994GAP081104	BOMBAY INDUSTRIES ASSOCIATION	Director	29/04/2006	29/04/2006	04/09/2009	Active	NO

Name :

Mr. Nimish Premsingh Taterh

Designation :

Director

Address :

1902 Great Eastern Height CTS Limited, Marve Road, Malad (West), Mumbai – 400064, Maharashtra, India

Date of Birth/Age :

15.10.1967

Date of Appointment :

21.05.1997

DIN No.:

00517983

KEY EXECUTIVES

Name :	Ms. Dipti Shinde
Designation :	Marketing Department

MAJOR SHAREHOLDERS

AS ON 05.09.2012

Names of Shareholders	No. of Shares
Kanderp S. Khandwala	75000
Nimish Premsingh Taterh	75000
Total	150000

AS ON 05.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Electrical Components.
Products :	· Copper Lugs · Copper Ferrules · Brass Cable Glands · Earth Clamps · Earth Conductors · Line Taps · Split Bolts · Hot Line Clamp · LT AB Fittings · Pole Line Hardware · Suspension Clamp · Dead end Clamp · Piercing Connectors · PG Clamps
Exports :
Products :	Electrical Components
Countries :	· Gulf Country · Middle East · Asian Country · Europe · South Africa · Arabic Countries
Imports :
Products :	Raw Materials
Countries :	· Malaysia · China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

150 (Approximately)

Bankers :

Central Bank of India, Mumbai Main Office, Documentation Cell, 2^nd Floor, Central Bank Building, Fort, Mumbai – 400 001, Maharashtra, India (Tel. No.: 91-22-22625932)

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
SHORT TERM BORROWINGS
From Central Bank of India
Working Capital Loan	6.610	3.095
Export Packing Credit	0.000	35.000
Bill Discounting (Secured against mortgage of Immovable Assets, Inventory and Receivable. Also Guaranteed by Directors)	4.661	55.934
Total	11.271	94.029

Banking Relations :	--
Auditors :
Name :	N.P. Patwa and Company Chartered Accountants
Address :	102, Sudaive, Plot No.97, Hindu Colony Road No. 3, Dadar (CR), Mumbai – 400 014, Maharashtra, India
Tel. No.:	91-22-24118146/ 24115870/ 24114590
E-Mail :	nppatwa@gmail.com
PAN No.:	AAGFN2813E
Associates/Subsidiaries :	Paramon Commercial Corporation Private Limited Address: Axis House Plot No.104C, Government Industrial Estate, Kandivali (West), Mumbai – 400 067, Maharashtra, India Line of Business: Manufacturer and Exporter of Electrical Components.

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorized Capital:

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs.100/- each	Rs.15.000 millions

Note:

1) 50000 equity shares of face value Rs.100 each issued as fully paid up bonus shares by capitalisation of free reserves.

2) Of the issued and fully paid up capital, the company offered to buy back equity shares upto 50000 being

25% of issued and subscribed capital as on 1.12.2011 and the offer was accepted by the share holders

and the amount is paid up

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	15.000	15.000
(b) Reserves & Surplus	165.009	147.475
(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)	180.009	162.475
(3) Non-Current Liabilities
(a) Long-term borrowings	0.105	0.090
(b) Deferred tax liabilities (Net)	0.055	0.055
(c) Other long term liabilities	0.000	0.000
(d) Long-term provisions	0.892	0.608
Total Non-current Liabilities (3)	1.052	0.753
(4) Current Liabilities
(a) Short term borrowings	11.271	94.029
(b) Trade payables	64.086	67.159
(c) Other current liabilities	21.079	11.622
(d) Short-term provisions	8.765	15.128
Total Current Liabilities (4)	105.201	187.938
TOTAL	286.262	351.166
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	19.274	19.464
(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	2.209	7.100
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	1.710	1.656
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	23.193	28.220
(2) Current assets
(a) Current investments	32.868	30.648
(b) Inventories	78.523	77.771
(c) Trade receivables	84.605	159.229
(d) Cash and cash equivalents	2.135	4.446
(e) Short-term loans and advances	64.938	50.836
(f) Other current assets	0.000	0.016
Total Current Assets	263.069	322.946
TOTAL	286.262	351.166

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		10.000
2] Share Application Money		0.000
3] Reserves & Surplus		106.097
4] (Accumulated Losses)		0.000
NETWORTH		116.097
LOAN FUNDS
1] Secured Loans		19.326
2] Unsecured Loans		0.268
TOTAL BORROWING		19.594
DEFERRED TAX LIABILITIES		0.000
TOTAL		135.691
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		18.550
Capital work-in-progress		0.000
INVESTMENT		34.156
DEFERRED TAX ASSETS		0.070
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	67.571
	Sundry Debtors	15.925
	Cash & Bank Balances	3.311
	Other Current Assets	7.742
	Loans & Advances	13.218
Total Current Assets		107.767
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	24.884
	Other Current Liabilities	0.000
	Provisions	0.000
Total Current Liabilities		24.884
Net Current Assets		82.883
MISCELLANEOUS EXPENSES		0.032
TOTAL		135.691

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	540.592	474.392	298.759
		Other Income			18.366
		TOTAL (A)	540.592	474.392	317.125
Less	EXPENSES
		Increase in Stock		(10.315)	(9.258)
		Material Consumption		140.439	96.326
		Cost of Goods Sold		148.083	116.587
		Manufacturing Expenses		40.270	30.608
		Administrative Expenses		43.151	30.349
		Selling and Distribution Expenses		28.620	18.186
		Prior Period Expenses		0.353	0.000
		TOTAL (B)	499.708 [Including Financial Expenses and Depreciation]	390.601	282.798
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			83.791	34.327
Less	FINANCIAL EXPENSES (D)			7.968	3.012
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			75.823	31.315
Less/ Add	DEPRECIATION/ AMORTISATION (F)			2.817	2.797
	PROFIT BEFORE TAX (E-F) (G)		40.884	73.006	28.518
Less	TAX (H)		NA	21.628	12.968
	PROFIT AFTER TAX (G-H) (I)		NA	51.378	15.550
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		145.574	104.196	96.396
Less	APPROPRIATIONS
		Dividend	NA	0.000	5.000
		Tax on Dividend Distribution	NA	0.000	0.850
		Transfer to General Reserve	NA	0.000	1.900
		Capitalisation of Reserve for issue of fully paid up Bonus shares	NA	10.000	0.000
	BALANCE CARRIED TO THE B/S		NA	145.574	104.196
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings (FOB)	389.451	337.284	225.307
	TOTAL EARNINGS		389.451	337.284	225.307
	IMPORTS
		CIF value of Imports	31.510	15.642	9.831
	TOTAL IMPORTS		31.510	15.642	9.831
	Earnings Per Share (Rs.)		150.22	342.52	19.00

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	10.83	4.90
Net Profit Margin (PBT/Sales)	(%)	NA	NA	9.55
Return on Total Assets (PBT/Total Assets}	(%)	14.39	21.22	22.58
Return on Investment (ROI) (PBT/Networth)		0.23	0.45	0.25
Debt Equity Ratio (Total Debt/Networth)		0.06	0.58	0.17
Current Ratio (Current Asset/Current Liability)		2.50	1.72	4.33

LOCAL AGENCY FURTHER INFORMATION

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 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	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 Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
From Directors (Maximum Outstanding Rs.0.121 million. Previous year 0.090 million)	0.105	0.090
Total	0.105	0.090

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80033600	12/06/2007 *	87,500,000.00	CENTRAL BANK OF INDIA	MUMBAI MAIN OFFICE , DOCUMENTATION CELL, 2^ND FLOOR , CENTRAL BANK BLDG. FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	A18849745
2	90145087	29/03/2004	19,500,000.00	CENTRAL BANK OF INDIA	MUMBAI MAIN OFFICE, DOCUMENTATION CELL; M.G. ROAD; FORT, MUMBAI, MAHARASHTRA - 400023, INDIA	-
3	90146623	29/03/2004	27,500,000.00	CENTRAL BANK OF INDIA	MUMBAI MAIN OFFICE, DOCUMENTATION CELL; M.G. ROAD; FORT, MUMBAI, MAHARASHTRA - 400023, INDIA	-
4	90144610	29/07/2003	47,000,000.00	CENTRAL BANK OF INDIA	MUMBAI MAIN OFFICE, DOCUMENTATION CELL; M.G. ROAD; FORT, MUMBAI, MAHARASHTRA - 400023, INDIA	-
5	90149148	01/11/2012 *	150,000,000.00	CENTRAL BANK OF INDIA	MUMBAI MAIN OFFICE, DOCUMENTATION CELL,, 2ND FLOOR, CENTRAL BANK BUILDING, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	B63929202
6	90146443	31/03/2003	67,000,000.00	CENTRAL BANK OF INDIA	MUMBAI MAIN OFFICE, DOCUMENTATION CELL; M.G. ROAD; FORT, MUMBAI, MAHARASHTRA - 400023, INDIA	-

* Date of charge modification

OPERATION AND OUTLOOK:

During the year the company earned total income of Rs.540.592 millions as against Rs.479.180 millions achieved during the corresponding period of previous year. After offsetting the expenses the company made a profit (before tax) of Rs.40.884 millions as against profit of Rs.73.006 millions achieved during the corresponding period of the previous year.

FIXED ASSETS:

· Air Conditioners

· Computers

· Dies and Tools

· Electrical Fittings

· Mobile Phones

· Office Equipments

· Plant and Machinery

· Vehicles

· Furniture and Fixtures

· 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.61.30
UK Pound	1	Rs.97.99
Euro	1	Rs.83.15

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.