MIRA INFORM REPORT

Report Date :

28.10.2013

IDENTIFICATION DETAILS

Name :	PATSON MACHINES PRIVATE LIMITED
Registered Office :	SNEH C-11 Erandwane Society, 14/5, Erandwane, Pune-411004, Maharashtra.
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	23.03.2006
Com. Reg. No.:	11 - 022214
Capital Investment / Paid-up Capital :	Rs. 5.000 Millions
CIN No.: [Company Identification No.]	U29299PN2006PTC022214
TAN No.: [Tax Deduction & Collection Account No.]	PNEP10561F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Machines and Machines Equipment
No. of Employees :	35 (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 18000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appear accumulated losses recorded by the company during the financial year 2012. However, trade relations are fair. Business is active. Payment terms are 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 – 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

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the trade deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

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. Vidya
Designation :	Accountant
Contact No.:	91-20-25442913
Date :	26.10.2013

LOCATIONS

Registered Office :	SNEH C-11 Erandwane Society, 14/5, Erandwane, Pune-411004, Maharashta, India.
Tel. No.:	91-20-25442913/25292830/65709980/65619979
Fax No.:	91-20-25410836/25442913/65709980
E-Mail :	patsontech@vsnl.net
Website :	www.patsonmachines.om
Area :	1000 sq.ft.
Location :	Owned
Factory :	Shop No-H3, Survey No.77/1+2+3 Vishnu Malati IndustrialEstate, Village-Shivane, Pune-411023, Maharashtra, India.
Tel. No.:	91-20-25292830
Fax No.:	91-20-25410836
E-Mail :	patsontech@vsnl.net
Area :	2000 sq.ft.
Location :	Owned

DIRECTORS

As on 28.09.2012

Name :	Mr. Shridhar Patwardhan
Designation :	Director
Address :	SNEH C-11 Erandwane Society, 14/5 Erandwane, Pune-411004, Maharashtra, India.
Date of Birth/Age :	15.12.1947
Date of Appointment :	23.03.2006
DIN No.:	00564973
Name :	Mr. Amit Patwardhan
Designation :	Director
Address :	SNEH C-11 Erandwane Society, 14/5 Erandwane, Pune-411004, Maharashtra, India.
Date of Birth/Age :	31.12.1976
Date of Appointment :	23.03.2006
DIN No.:	00565078

KEY EXECUTIVES

Name :	Ms. Vidya
Designation :	Accountant

MAJOR SHAREHOLDERS

As on 28.09.2012

Names of Equity Shareholders	No. of Shares
Shridhar Patwardhan	346000
Amit Patwardhan	4000
Total	350000

Names of Preference Shareholders	No. of Shares
Shridhar Patwardhan	150000
Total	150000

Equity Share Break up (Percentage of Total Equity)

As on 28.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Machines and Machines Equipment
Products :	Special Purpose Machines Carburetor Machining Machines Multi Spindle Drilling Machines Fine Boring SPM Multi Spindle Tapping Machines ASV Machining Machines Multi Spindle Heads    Yoke Boring Grooving Machines Bracket Drilling Machines, etc.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

35 (Approximately)

Bankers :

• State Bank of India, SMECCC, Sharda Chambers, Shankar Sheth Road, Pune - 411037, Maharashtra, India.
• Standard Chartered Bank
• Kotak Mahindra Bank, Pune

Facilities :

SECURED LOANS	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Short Term Borrowings
Loans payable on demand
From Bank	0.548	1.551
Total	0.548	1.551

Note:

Working capital loans are secured by hypothecation of present and future stock of raw materials, stock in trade, finished goods, stores and spare parts (not relating to plant and machinery), book debts, outstanding monies receivables, claims, bills, material in transit etc.

Banking Relations :	--
Auditors :
Name :	S. A. Limya and Company Chartered Accountant
Address :	Flat No - 9, Smruti Co Operative Hosing Society, Prabhat Road Lane-1, 33/ 38, Erandwane, Pune - 411004, Maharashtra, India
PAN.:	ABGFS8004D
Memberships :	Small Scale Industry (SSI), NSI and MCC
Related Parties :	Exceltech, Partnership Firm – Both directors are partners in the firm

CAPITAL STRUCTURE

As on 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
350000	Equity Shares	Rs. 10/- each	Rs. 3.500 Millions
150000	Preference Shares	Rs. 10/- each	Rs. 1.500 Millions
	Total		Rs. 5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
350000	Equity Shares	Rs. 10/- each	Rs. 3.500 Millions
150000	Preference Shares	Rs. 10/- each	Rs. 1.500 Millions
	Total		Rs. 5.000 Millions

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	5.000	2.500
(b) Reserves & Surplus	(0.565)	(0.887)
(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)	4.435	1.613
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.308	0.281
Total Non-current Liabilities (3)	0.308	0.281
(4) Current Liabilities
(a) Short term borrowings	8.689	8.711
(b) Trade payables	4.902	4.463
(c) Other current liabilities	0.103	0.465
(d) Short-term provisions	0.229	0.196
Total Current Liabilities (4)	13.923	13.835
TOTAL	18.666	15.729
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1.549	1.369
(ii) Intangible Assets	0.202	0.337
(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)	0.059	0.083
(d) Long-term Loan and Advances	0.102	0.102
(e) Other Non-current assets	0.311	1.729
Total Non-Current Assets	2.223	3.620
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	14.147	8.823
(c) Trade receivables	1.099	1.651
(d) Cash and cash equivalents	0.524	0.861
(e) Short-term loans and advances	0.589	0.646
(f) Other current assets	0.084	0.128
Total Current Assets	16.443	12.109
TOTAL	18.666	15.729

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		2.500
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		(1.085)
NETWORTH		1.415
LOAN FUNDS
1] Secured Loans		2.994
2] Unsecured Loans		1.333
TOTAL BORROWING		4.327
DEFERRED TAX LIABILITIES		0.017
TOTAL		5.759
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.663
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6.701
	Sundry Debtors	4.244
	Cash & Bank Balances	0.692
	Other Current Assets	0.767
	Loans & Advances	0.000
Total Current Assets		12.404
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000
	Other Current Liabilities	8.311
	Provisions	0.011
Total Current Liabilities		8.322
Net Current Assets		4.082
MISCELLANEOUS EXPENSES		0.014
TOTAL		5.759

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL (A)	29.628	32.179	21.314
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	28.459	31.364	22.309
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.169	0.815	(0.995)
Less	FINANCIAL EXPENSES (D)		0.401	0.323	NA
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.768	0.492	NA
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.421	0.394	NA
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		0.347	0.098	(0.995)
Less	TAX (H)		0.025	(0.100)	(0.010)
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		0.322	0.198	(0.985)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(0.886)	(1.085)	(0.100)
	BALANCE CARRIED TO THE B/S		(0.564)	(0.886)	(1.085)
	IMPORTS
		Compressor, Spares and Consumable	0.359	1.111	0.185
	TOTAL IMPORTS		0.359	1.111	0.185
	Earnings Per Share (Rs.)		0.92	0.79	(3.94)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.09	0.61	(4.62)
Return on Total Assets (PBT/Total Assets}	(%)	2.06	0.70	(7.07)
Return on Investment (ROI) (PBT/Networth)		0.08	0.06	(0.70)
Debt Equity Ratio (Total Debt /Networth)		1.96	5.40	3.06
Current Ratio (Current Asset/Current Liability)		1.18	0.87	1.49

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	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
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	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:

Particulars	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Short Term Borrowings
Loans and advances from related parties	0.990	3.150
Other loans and advances (Advances form directors	7.151	4.010
Total	8.141	7.160

COMPANY OVERVIEW:

• It is a company incorporated under the companies’ act 1956.

• The company is primarily engaged in the manufacture and marketing of special purpose machine.

• The company has issued 1000000 equity shares of Rs. 10/- each and 150000 preference shares of Rs. 10/- each during the year.

INDEX OF CHARGE:

Sr .No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10090124	12/01/2013 *	7,600,000.00	State Bank of India	Small and Medium Enterprises city Credit Centre, Sharada Chambers, Shankarsheth Road, Pune, Maharashtra - 411037, INDIA	B67119883

* Date of modification charge

FIXED ASSETS:

• Machinery
• Vehicles
• Computer
• Digital Camera
• Tressing Board
• Furniture
• M.S.E.B Transformer
• Computer Software

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. 61.63
UK Pound	1	Rs. 99.94
Euro	1	Rs. 85.13

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	VNT

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	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	YES
--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.