MIRA INFORM REPORT

Report Date :

17.10.2013

IDENTIFICATION DETAILS

Name :	USART TECHNOLOGIES INDIA PRIVATE LIMITED
Registered Office :	1F2, Degala Residency, Officers Colony, Dr. A.S. Rao Nagar, Hyderabad – 500 062, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	25.08.2008
Com. Reg. No.:	01-060712
Capital Investment / Paid-up Capital :	Rs.0.500 million
CIN No.: [Company Identification No.]	U74900AP2008PTC060712
TAN No.: [Tax Deduction & Collection Account No.]	HYDU01176A
PAN No.: [Permanent Account No.]	AABCU0320R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Trader, Exporter and Importer of Networking Products, Telemetry, Avionics, Calibration Products, Testing and Measuring, Electronic Instruments.
No. of Employees :	12 (Approximately)

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 6000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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

Name :	Mr. Sitaramam Neerogi
Designation :	Managing Director
Contact No.:	91-9849232875
Date :	14.10.2013

LOCATIONS

Registered Office :	1F2, Degala Residency, Officers Colony, Dr. A.S. Rao Nagar, Hyderabad – 500 062, Andhra Pradesh, India
Tel. No.:	91-40-64580374
Mobile No.:	91-9849232875 (Mr. Sitaramam Neerogi)
Fax No.:	91-40-40190374
E-Mail :	nsitaramam@yahoo.co.in sitaramam@usartindia.com
Location :	Owned
Sales Office/ Factory :	6-28, Plot No.85W, Anupuram, Kapra, ECIL Post, Hyderabad – 500 062, Andhra Pradesh, India
Tel. No.:	91-40-27143374

DIRECTORS

As on 24.09.2012

Name :

Mr. Sitaramam Neerogi

Designation :

Managing Director

Address :

1F2, Degala Residency, Officers Colony, Dr. A.S. Rao Nagar, Hyderabad – 500 062, Andhra Pradesh, India

Date of Birth/Age :

28.04.1967

Date of Appointment :

25.08.2008

DIN No.:

01850142

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	U31200AP2005PTC046744	CSI INTEGRATED INSTRUMENTS PRIVATE LIMITED	Director	04/07/2005	04/07/2005	-	Active	YES
2	U74900AP2008PTC060712	USART TECHNOLOGIES INDIA PRIVATE LIMITED	Managing director	25/08/2008	25/08/2008	-	Active	NO

Name :

Mrs. Bhuvaneshwari Neerogi

Designation :

Director

Address :

1F2, Degala Residency, Officers Colony, Dr. A.S. Rao Nagar, Hyderabad – 500 062, Andhra Pradesh, India

Date of Birth/Age :

26.02.1976

Date of Appointment :

25.08.2008

DIN No.:

02261492

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.09.2012

Names of Shareholders	No. of Shares
Sitaramam Neerogi	25000
Bhuvaneshwari Neerogi	25000
Total	50000

As on 24.09.2012

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

BUSINESS DETAILS

Line of Business :	Manufacturer, Trader, Exporter and Importer of Networking Products, Telemetry, Avionics, Calibration Products, Testing and Measuring, Electronic Instruments.
	· Networking Products · Telemetry · Avionics · Calibration Products · Testing and Measuring · RF and Microwave · Scientific Instruments · Timing and Frequency Products · Industrial Computers · Pressure Transducers · Calibrators · Telemetry Ground Station
Exports :
Products :	· Calibration Products · Networking Products
Countries :	· USA · UK · Germany · Singapore
Imports :
Products :	· Networking Products · Telemetry Products
Countries :	· USA · UK · Taiwan · China
Terms :
Selling :	Cash, Credit (30/ 60 days), Cheque and DD
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

· DRDL

· RCI

· BEL

· ECIL

· PGAD

· ITC

· NFCL

No. of Employees :

12 (Approximately)

Bankers :

Oriental Bank of Commerce, 126, SD Road, Secunderabad – 500 003, Andhra Pradesh, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Short Term Borrowings
Loans repayable on demand
- From banks	2.944	3.487
Total	2.944	3.487

Banking Relations :	--
Auditors :
Name :	Kammela and Associates Chartered Accountants
Address :	D. No.:2-1-414/1, Flat No.301, Sri Sai Krupa Residency, 4^th Street, Nallakunta, Hyderabad – 500 044, Andhra Pradesh, India
Tel. No.:	91-40-65876942
Mobile No.:	91-9989350365
E-Mail :	knraj_ca@rediffmail.com
Income-tax PAN of auditor or auditor's firm :	ATWPK5039J

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.10/- each	Rs.0.500 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.10/- each	Rs.0.500 million

Details of shareholders holding more than 5% shares in the company

Name of the shareholder	31.03.2012
	No. of shares held	% of share holding
Sitaramam Neerogi	25000	50.00
Bhuvaneshwari Neerogi	25000	50.00

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	0.500	0.500
(b) Reserves & Surplus	0.906	0.857
(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)	1.406	1.357
(3) Non-Current Liabilities
(a) Long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.001	0.001
(c) Other long term liabilities	0.000	0.000
(d) Long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	0.001	0.001
(4) Current Liabilities
(a) Short term borrowings	6.442	6.607
(b) Trade payables	0.256	1.972
(c) Other current liabilities	0.033	0.033
(d) Short-term provisions	0.464	0.349
Total Current Liabilities (4)	7.195	8.961
TOTAL	8.602	10.319
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	0.058	0.052
(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)	0.000	0.000
(d) Long-term Loan and Advances	0.030	0.030
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	0.088	0.082
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	2.247	0.130
(c) Trade receivables	3.672	7.339
(d) Cash and cash equivalents	2.202	2.431
(e) Short-term loans and advances	0.000	0.000
(f) Other current assets	0.393	0.337
Total Current Assets	8.514	10.237
TOTAL	8.602	10.319

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.500
2] Share Application Money		0.000
3] Reserves & Surplus		0.206
4] (Accumulated Losses)		0.000
NETWORTH		0.706
LOAN FUNDS
1] Secured Loans		3.374
2] Unsecured Loans		1.863
TOTAL BORROWING		5.237
DEFERRED TAX LIABILITIES		0.001
TOTAL		5.944
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.065
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.324
	Sundry Debtors	5.256
	Cash & Bank Balances	0.727
	Other Current Assets	0.135
	Loans, Advances & Deposits	1.592
Total Current Assets		8.034
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.559
	Other Current Liabilities & Provisions	0.616
Total Current Liabilities		2.175
Net Current Assets		5.859
MISCELLANEOUS EXPENSES		0.020
TOTAL		5.944

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income from Sales	6.074	22.719	6.259
		Income from consultancy	0.444	0.716	0.451
		Other Income	0.104	0.070	0.005
		TOTAL	6.622	23.505	6.715
Less	EXPENSES
		Cost of Goods sold	6.539	19.167	4.617
		Administrative and Other Expenses		3.363	1.878
		TOTAL	6.539	22.530	6.495
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		0.083	0.975	0.220
Less/ Add	DEPRECIATION/ AMORTISATION		0.011	0.013	0.017
	PROFIT BEFORE TAX		0.072	0.962	0.203
Less	TAX		0.022	0.311	0.067
	PROFIT AFTER TAX		0.049	0.651	0.136
	BALANCE CARRIED TO THE B/S		0.049	0.650	0.136
	Earnings Per Share (Rs.)		0.98	13.00	2.72

Particulars	31.03.2013
Sales Turnover (Approximately)	15.000

Expected Sales (2013-2014): Rs.30.000 millions

Sales turnover for the year 2012 has been declined due to market fluctuation.

The above information has been parted by Mr. Sitaramam Neerogi (Managing Director).

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.74	2.77	2.03
Net Profit Margin (PBT/Sales)	(%)	1.10	4.10	3.03
Return on Total Assets (PBT/Total Assets}	(%)	0.84	9.32	2.51
Return on Investment (ROI) (PBT/Networth)		0.05	0.71	0.29
Debt Equity Ratio (Total Debt/Networth)		4.58	4.87	7.42
Current Ratio (Current Asset/Current Liability)		1.18	1.14	3.69

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 four years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	Yes
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	Yes
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	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Short Term Borrowings
Loans repayable on demand
- From other parties	1.050	1.150
Interest free loan and advances from related parties repayable on demand	2.448	1.970
Total	3.498	3.120

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10221551	25/03/2010	4,000,000.00	ORIENTAL BANK OF COMMERCE	126, SD ROAD, SECUNDERABAD, ANDHRA PRADESH - 500003, INDIA	A83690354

FIXED ASSETS:

· Computer

· Furniture and Fixtures

· Fax Machine

· Printer

· UPS

· Office Equipment

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.61.69
UK Pound	1	Rs.98.59
Euro	1	Rs.83.67

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	SMN

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	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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
DEFAULTERS
--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.