MIRA INFORM REPORT

Report Date :

14.02.2014

IDENTIFICATION DETAILS

Name :	MEGA DESIGNS PRIVATE LIMITED
Registered Office :	Moudle 301, SDF Building, Block - GP, Sector – V, Salt Lake Electronics Complex, Kolkata – 700091, West Bengal
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	11.05.1988
Com. Reg. No.:	21-044388
Capital Investment / Paid-up Capital :	Rs.0.100 Million
CIN No.: [Company Identification No.]	U72200WB1988PTC044388
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in manufacturing, trading and servicing of note counting machine and coin vending machine.
No. of Employees :	53 (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 27000
Status :	Small company
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a small company in its field. Its scale of activities are limited. Profit of the company seems to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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

The worst is over for India’s economy with gross domestic product likely to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s Analytics. Concerns over the rupee and current account deficit are under control, said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up from the estimated 4.8 % for 2013/14.  Total economic growth, infrastructure bottlenecks and lack of transparency and consistency in foreign direct investment policies seem to have taken a toll on India’s attractiveness as an investment destination, says an Ernst & Young survey.  Projects with FDI component fell 16.4 % across the globe in 2012 from the previous year.  The drop in India was steeper at 21 %. State run carrier Air India is doling out free tickets to its 24000 employees, even as it expects to incur a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn. 550000 number of jobs generated across India in 2013, a fall of 0.4 % as compared to with a year earlier. The National  Capital Region has a one-fourth share in total jobs created, according to a study by industry lobby group Assochem, Banks, real estate, automobile and telecommunications sectors are showing a rise of job creation. $ 805 mn investments by venture capital firms in India during 2013, registering a drop of about 18 % over the previous year. The Information Technology and IT-Enabled  Services Industry retained its status as the favourable venture capital investors in 2013. Pakistan has temporarily banned gold imports for the second time in six months, as it tries to stem smuggling into India. India’s import duty on gold is 10 % and curbs on purchases have dried up legal imports into what used to be the world’s biggest bullion buyers. The World Gold Council puts the amount smuggled into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed bank deposits estimated to be about Rs 35000 mn be used for education and awareness among depositors.  According to the plan, deposits that have not been claimed for at least 10 years will be transferred to the scheme.

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. M D Alam
Designation :	Account Executive
Contact No.:	91-33-23571906
Date :	10.02.2014

LOCATIONS

Registered Office :	Moudle 301, SDF Building, Block - GP, Sector – V, Salt Lake Electronics Complex, Kolkata – 700091, West Bengal, India
Tel. No.:	91-33-23571906
Fax No.:	91-33-23576199
E-Mail :	udit@vsnl.com info@megadesugn.co.in
Area :	2000 Sq ft
Location :	Owned
Factory 1 :	Located at Patna, Bihar, India
Area :	300
Location :	Rented
Factory 2 :	Located at Ranchi, Jharkhand, India
Area :	600 Sq ft
Location :	Rented

DIRECTORS

As on 30.09.2013

Name :

Mr. Udit Mukhopadhyay

Designation :

Managing director

Address :

JC – 13/4, Sector – 3, Salt Lake, 24 Parganas (North), Kolkata – 700098, West Bengal, India

Date of Birth/Age :

03.06.1958

Date of Appointment :

30.06.1999

DIN No.:

00750164

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	U31103WB1985PTC039290	SIGNOTRON (INDIA) PRIVATE LIMITED	Director	01/09/1987	01/09/1987	-	Active	NO
2	U72200WB1988PTC044388	MEGA DESIGNS PRIVATE LIMITED	Managing director	30/06/1999	30/06/1999	-	Active	NO
3	U30007WB2010PTC155724	FENNEL TECHNOLOGIES PRIVATE LIMITED	Director	14/12/2010	14/12/2010	-	Active	NO

Name :

Mr. Partha Sarathi Biswas

Designation :

Director

Address :

FE – 82, Sector – 3, Salt Lake, 24 Parganas (North), Kolkata – 700091, West Bengal, India

Date of Birth/Age :

19.11.1950

Date of Appointment :

14.05.2002

DIN No.:

00476960

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	U31103WB1985PTC039290	SIGNOTRON (INDIA) PRIVATE LIMITED	Managing director	31/07/1985	31/07/1985	-	Active	NO
2	U72200WB1988PTC044388	MEGA DESIGNS PRIVATE LIMITED	Director	14/05/2002	14/05/2002	-	Active	NO
3	U25194WB2009PTC137624	PURBA RUBBER PRIVATE LIMITED	Director	10/08/2009	10/08/2009	-	Active	NO

KEY EXECUTIVES

Name :	Mr. M D Alam
Designation :	Account Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares	% age
American Mega Trends Inc, USA	3980	39.80
Partha Sarathi Biswas	10	0.10
Udit Mukhopadhyay	6000	60.00
Suman Mukhopadhyay	10	0.10
Total	10000	100.00

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	39.80
Directors or relatives of Directors	60.20
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in manufacturing, trading and servicing of note counting machine and coin vending machine.
Imports :
Products :	Raw Material
Countries :	· UK · Canada
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

· Crane Payments Solution Pty Limited

Customers :

Banks

· State Bank of India

· Paschim Banga Gramin Bank

· Bangya Gramin Vikas Bank

· Nadia District Central Cooperative Bank

No. of Employees :

53 (Approximately)

Bankers :

· State Bank of India, Salt Lake Electronics Complex, Branch, Plot No.: A-1, 8/1 Block – EP, Sector – V, Kolkata, West Bengal, India

Bank A/C No.: 10224932208

· HDFC Bank Limited

Facilities :

Secured Loan	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long-term Borrowings
Other loans and advance Car Loan	0.092	0.189
Short-term borrowings
Overdraft from banks State Bank of India	3.828	0.000
Total	3.920	0.189
NOTE: The company has taken loan for car. The repayment is to be made as per finances schedule for repayment. The asset has been realised in the books as per the bill value given by the seller. The amount of loan in totality except interest is entered in the books. The amount of interest is paid with the installment. The same interest is charged as an expense in profit &loss account. The Company has taken an overdraft from State Bank of India. Salt Lake Branch upto the tune of Rs.7.759 Millions and which are secured against personal fixed deposits of Mr. U. Mukhopadhyay. The overdraft carries an interest rate of 10.25% pa.

Banking Relations :	--
Auditors :
Name :	Dokania S. Kumar and Company Chartered Accountants
Address :	598/2, Sarat Chatterjee Road, Shibpur, Howrah – 711102, West Bengal, India
Tel. No.:	91-33-22104010/26788652
E-Mail :	dokaniask@gmail.com
Website:	www.dokaniaca.com
PAN N Income-tax PAN of auditor or auditor's firm :	AADFD7955N

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs. 0.100 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs. 0.100 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	0.100	0.100	0.100
(b) Reserves & Surplus	6.729	6.607	6.446
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	6.829	6.707	6.546
(3) Non-Current Liabilities
(a) long-term borrowings	4.779	4.489	4.300
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	4.779	4.489	4.300
(4) Current Liabilities
(a) Short term borrowings	3.828	0.000	0.000
(b) Trade payables	5.409	0.462	0.660
(c) Other current liabilities	2.842	1.349	1.381
(d) Short-term provisions	0.232	0.129	1.021
Total Current Liabilities (4)	12.311	1.940	3.062
TOTAL	23.919	13.136	13.908
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1.250	1.449	1.308
(ii) Intangible Assets	0.066	0.085	0.141
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.046	0.038	0.015
(d) Long-term Loan and Advances	0.124	0.101	0.097
(e) Other Non-current assets	0.870	1.588	2.903
Total Non-Current Assets	2.356	3.261	4.464
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	9.959	3.814	1.787
(c) Trade receivables	9.171	3.819	4.012
(d) Cash and cash equivalents	1.156	1.878	2.331
(e) Short-term loans and advances	1.277	0.364	1.314
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	21.563	9.875	9.444
TOTAL	23.919	13.136	13.908

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	29.191	20.828	24.628
		Other Income	0.173	0.258	0.341
		TOTAL	29.364	21.086	24.969
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	29.142	20.819	21.800
	PROFIT BEFORE TAX		0.222	0.267	3.169
Less	TAX		0.100	0.106	0.930
	PROFIT AFTER TAX		0.122	0.161	2.239
	IMPORTS
		Stores & Spares	15.498	5.727	5.159
		Stock in trade	0.000	0.159	0.000
	TOTAL IMPORTS		15.498	5.886	5.159
	Earnings Per Share (Rs.)		12.22	16.11	223.93

Expected Sales (2013-2014) : Rs.60.000 Millions

The above information has been parted by Mr. M D Alam (Account Executive)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.42	0.76	8.97
Net Profit Margin (PBT/Sales)	(%)	0.76	1.28	12.87
Return on Total Assets (PBT/Total Assets}	(%)	0.93	2.03	22.79
Return on Investment (ROI) (PBT/Networth)		0.03	0.04	0.48
Debt Equity Ratio (Total Debt /Networth)		1.26	0.67	0.66
Current Ratio (Current Asset/Current Liability)		1.75	5.09	3.08

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	0.100	0.100	0.100
Reserves & Surplus	6.446	6.607	6.729
Net worth	6.546	6.707	6.829
long-term borrowings	4.300	4.489	4.779
Short term borrowings	0.000	0.000	3.828
Total borrowings	4.300	4.489	8.607
Debt/Equity ratio	0.657	0.669	1.260

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Sales	24.628	20.828	29.191
		(15.430)	40.153

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	24.628	20.828	29.191
Profit	2.239	0.161	0.122
	9.09%	0.77%	0.42%

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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	Yes
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

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

FINANCIAL RESULTS

The company has earned a profit Rs. 0.212 Million before provision for taxation for the year ending 31^st March, 2013. (Previous year profit Rs.0.267 Million)

UNSECURED LOAN

PARTICULARS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long-term Borrowings
Loans and advance from others	4.687	4.300
Total	4.687	4.300
NOTE: Loan and Advances from others includes loan taken from Mr. Udit Mukhopadhyay, Managing Director of the company. The entire loan is repayable on demand. The rate of interest charged is @ 10%.

CONTINGENT LIABILITIES

Particulars	31.03.2013
ESI Demand	0.071
NOTE: ESI Demand comprises of demand under section 45A of the ESI Act, 1948. The matter is pending before the offer of the juge, Employee Insurance court, Kolkata vide case no. TC 91 of 2012. The demand is for the period April, 2006 t0o September, 2006.

FIXED ASSETS

· Plant and Machinery

· Furniture and Fixtures

· Computer and peripherals

· Electrical Installation

· Vehicle

· Moulding Die

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.62.27
UK Pound	1	Rs.103.47
Euro	1	Rs.84.87

INFORMATION DETAILS

Information Gathered by :	HTL
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
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	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	NO
--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.