MIRA INFORM REPORT

Report Date :

23.09.2013

IDENTIFICATION DETAILS

Name :	KUSABA ENGINEERS PRIVATE LIMITED
Registered Office :	Gate No. 59, Plot No. 3, Pune Satara Road, Mouje Kasurdi Khede Bare, Taluka Bhor, Pune – 412205, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	08.10.2001
Com. Reg. No.:	25-016482
Capital Investment / Paid-up Capital :	Rs.0.935 Million
CIN No.: [Company Identification No.]	U29299PN2001PTC016482
IEC No.:	3101006601
TAN No.: [Tax Deduction & Collection Account No.]	PNEK05037E
PAN No.: [Permanent Account No.]	AABCK6395C
Legal Form :	Private Limited Liability Company
Line of Business :	Trader and Importer of Various Motors Control Instruments.
No. of Employees :	12 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 9000
Status :	Small Company
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a small company in its field. It scale of activity is limited. The company has improved its performance during 2012 marked by an increase in its sales turnover as well as net profitability. Trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered 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.

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 :	Ms. Shilpa
Designation :	Office Executive
Contact No.:	91-20-25464818
Date :	21.09.2013

LOCATIONS

Registered Office :	Gate No. 59, Plot No. 3, Pune Satara Road, Mouje Kasurdi Khede Bare, Taluka Bhor, Pune – 412205, Maharashtra, India
Tel. No.:	91-20-25433879/25464818
Fax No.:	91-20-25446759/25446750
E-Mail :	info@kusabaengrs.com kusabaengrs@kusabaengrs.com svb@badawegroup.com vva@badawegroup.com
Website :	http://www.kusabaengrs.com
Location :	Owned

DIRECTORS

As on 29.09.2012

Name :	Mr. Vishwakumar Vishwanath Badawe
Designation :	Director
Address :	Adwait, 72/24, Erandawane, Gulmohar Path, Off Law College Road, Pune – 411004, Maharashtra, India
Date of Birth/Age :	22.05.1936
Date of Appointment :	20.03.2010
DIN No.:	00213345
Name :	Mr. Satyajit Vishwakumar Badawe
Designation :	Managing Director
Address :	Adwait, 72/24, Erandawane, Gulmohar Path, Off Law College Road, Pune – 411004, Maharashtra, India
Date of Birth/Age :	12.11.1967
Date of Appointment :	20.03.2010
DIN No.:	00213469
Name :	Mrs. Manjiri Satyajit Badawe
Designation :	Director
Address :	Adwait, 72/24, Erandawane, Gulmohar Path, Off Law College Road, Pune – 411004, Maharashtra, India
Date of Birth/Age :	11.11.1971
Date of Appointment :	08.09.2004
DIN No.:	00213510
Name :	Mr. Ramkumar Chandrasekaran Kuppanoor
Designation :	Director
Address :	5/6, Kilpauk Street, Kilpauk Garden Road, Chennai – 600 010, Tamilnadu, India
Date of Birth/Age :	27.11.1968
Date of Appointment :	15.02.2005
DIN No.:	00213704

KEY EXECUTIVES

Name :	Ms. Shilpa
Designation :	Office Executive

MAJOR SHAREHOLDERS

As on 29.09.2012

Names of Shareholders	No. of Shares
Satyajit Vishwakumar Badawe	5284
Vishwakumar Vishwanath Badawe	661
Satyajit Vishwakumar Badawe (HUF)	250
Vineeta Badawe	67
Manjiri Satyajit Badawe	2505
Vrinda V Badawe	583
Total	9350

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader and Importer of Various Motors Control Instruments.
Imports :
Products :	Raw Materials
Countries :	Germany
Terms :
Selling :	Cash and Credit (30 days)
Purchasing :	L/C, Cash and Credit (30 days)

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Actual Production
Manufacture Shielding Assembly	60

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

12 (Approximately)

Bankers :

· The Cosmos Co-Operative Bank Limited (Deccan Gymkhana Branch) 269/270, Shaniwar Peth, Pune – 411 030, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Short Term Borrowings
Cash credit account with Cosmos Co-operative Bank	1.721	0.846
Total	1.721	0.846

Note: Secured against mortgage of land and building hypothecation of other equipment and personal guarantees of directors.

Banking Relations :	--
Auditors :
Name :	U B Gujar and Company Chartered Accountant
Address :	Swojas Gulmohar, 3 Shantisheela Society, Film Institute Road, Pune – 411004, Maharashtra, India
Tel. No.:	91-20-25440006/ 25449400
PAN No.:	ABMPG3737F
Associates Company :	· Badawe Engineers Private Limited, Pune Line of Business: Manufacturer of Various Control Engineering Instrumentation Position Control Systems.

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs. 100/- each	Rs. 1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9350	Equity Shares	Rs. 100/- each	Rs. 0.935 Million

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	0.935	0.935
(b) Reserves & Surplus	1.284	0.940
(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)	2.219	1.875
(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	0.030	0.027
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	0.030	0.027
(4) Current Liabilities
(a) Short term borrowings	1.721	0.846
(b) Trade payables	0.713	1.895
(c) Other current liabilities	2.230	2.840
(d) Short-term provisions	1.370	1.143
Total Current Liabilities (4)	6.034	6.724
TOTAL	8.283	8.626
II. ASSETS
(1) Non-current assets
(a) Fixed Assets	0.562	0.588
(i) Tangible assets	0.014	0.024
(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	0.005	0.005
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	0.581	0.617
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	5.799	2.797
(c) Trade receivables	1.193	4.359
(d) Cash and cash equivalents	0.137	0.180
(e) Short-term loans and advances	0.060	0.006
(f) Other current assets	0.513	0.667
Total Current Assets	7.702	8.009
TOTAL	8.283	8.626

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.635
2] Share Application Money		0.300
3] Reserves & Surplus		0.861
4] (Accumulated Losses)		0.000
NETWORTH		1.796
LOAN FUNDS
1] Secured Loans		0.284
2] Unsecured Loans		1.960
TOTAL BORROWING		2.243
DEFERRED TAX LIABILITIES		0.023
TOTAL		4.062
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.371
Capital work-in-progress		0.000
INVESTMENT		0.051
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1.983
	Sundry Debtors	1.971
	Cash & Bank Balances	0.038
	Other Current Assets	0.025
	Loans & Advances	0.777
Total Current Assets		4.794
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.144
	Other Current Liabilities	0.616
	Provisions	0.394
Total Current Liabilities		1.154
Net Current Assets		3.640
MISCELLANEOUS EXPENSES		0.000
TOTAL		4.062

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
INCOME AND AGENCY COMMISSION		9.532	9.216	6.562
EXPENSES		NA	NA	NA
PROFIT/(LOSS) BEFORE DEPRECIATION		0.759	0.209	(0.063)
DEPRECIATION/ AMORTISATION		0.118	0.094	0.076
PROFIT/(LOSS) BEFORE TAX		0.641	0.115	(0.139)
TAX		0.192	0.036	(0.004)
PROFIT/(LOSS) AFTER TAX		0.449	0.079	(0.136)
EARNINGS IN FOREIGN CURRENCY
	Agency Commission	0.568	0.012	0.310
	Trading Sales	0.000	0.051	0.042
TOTAL EARNINGS		0.568	0.063	0.352
IMPORTS
	Raw Materials	8.270	6.896	4.802
TOTAL IMPORTS		8.270	6.896	4.802
Earnings Per Share (Rs.)		48.02	8.45	(21.43)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Return on Total Assets (PBT/Total Assets}	(%)	8.32	1.43	(2.70)
Return on Investment (ROI) (PBT/Networth)		0.29	0.06	(0.08)
Debt Equity Ratio (Total Debt /Networth)		0.78	0.45	1.25
Current Ratio (Current Asset/Current Liability)		1.28	1.19	4.15

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 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

NOTE: CURRENT MATURITY OF LONG TERM BORROWINGS DETAIL NOT AVAILABLE

INDEX OF CHARGE:

Sr .No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10264755	05/01/2011	500,000.00	THE COSMOS CO-OPERATIVE BANK LIMITED (DECCAN GYMKHANA BRANCH)	269/270, SHANIWAR PETH, PUNE, Maharashtra - 411030, INDIA	B05339882
2	10007085	21/09/2011 *	2,000,000.00	THE COSMOS CO-OPERATIVE BANK LIMITED (DECCAN GYMKHANA BRANCH)	269/270,SHANIWR PETH, PUNE, Maharashtra - 411030, INDIA	B23213580

* Date of charge modification

OPERATIONS AND FINANCIAL RESULTS:

The profit for the financial year ended 31.03.2012 is Rs.0.448 Million (Previous year loss Rs.0.079 Million).

FIXED ASSETS:

· Land

· Building

· Testing Equipments

· Plant and Machinery

· Furniture and Fixture

· Mobile Handset

· Office Equipment

· Computer Software

· Tools Dies and Mould

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. 62.24
UK Pound	1	Rs. 99.90
Euro	1	Rs. 84.23

INFORMATION DETAILS

Information Gathered by :	JML
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	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--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	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		29

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.