MIRA INFORM REPORT

Report Date :

25.01.2014

IDENTIFICATION DETAILS

Name :	COSMOS ENGITECH PRIVATE LIMITED
Registered Office :	Cosmos House, 85/2, Atladra, Padra Road, Vadodara-390012, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	04.09.1996
Com. Reg. No.:	04-030628
Capital Investment / Paid-up Capital :	Rs.7.554 Millions
CIN No.: [Company Identification No.]	U29199GJ1996PTC030628
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in Manufacturing of Precision Machined Components and Assemblies.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 386000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Even though there appears some dip in the turnover of the company during current year. The company has shown a better growth in the profitability. However, the rating takes into consideration the company’s modest scale of operations, working capital requirement and also fluctuation in raw material prices. However, trade relations are reported as fair. Business is active. Payments terms are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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 narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

India was ranked 94^th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BB [Cash Credit]
Rating Explanation	Moderate risk of default.
Date	December 2013

Rating Agency Name	ICRA
Rating	A4+ [Non Fund Based Limit]
Rating Explanation	Minimal degree of safety. It carry very high credit risk.
Date	December 2013

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.

LOCATIONS

Registered Office :	Cosmos House, 85/2, Atladra, Padra Road, Vadodara-390012, Gujarat, India
Tel. No.:	91-265-3927000/3027001
Fax No.:	Not Available
E-Mail :	engitech.finance@cosmos.in
Website :	www.cosmos.in
Factory :	445, GIDC Industrial Estate, Makarpura, Vadodara-390010, Gujarat, India
Tel. No.:	91-265-2834311
Fax No.:	91-265-2634311

DIRECTORS

AS ON 31.08.2013

Name :

Mrs. Neetu Nagesh Velaga

Designation :

Whole Time Director

Address :

102, Mangalya Apartment, 79, Alkapuri, Vadodara-390007, Gujarat, India

Date of Birth/Age :

30.11.1962

Date of Appointment :

04.09.1996

Din No.:

00372852

Name :

Mr. Nimish Arvind Shah

Designation :

Director

Address :

36, Greenpark Society, Makarpura Road, Vadodara-390010, Gujarat, India

Date of Birth/Age :

15.07.1962

Date of Appointment :

15.12.1999

Din No.:

00372897

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	Company/ LLP Status	Defaulting status
1	U29255GJ1994PTC021035	COSMOS IMPEX (INDIA) PRIVATE LIMITED	Managing director	10/01/1994	10/01/1994	Active	NO
2	U29199GJ1996PTC030628	COSMOS ENGITECH PRIVATE LIMITED	Director	15/12/1999	15/12/1999	Active	NO
3	U29199GJ2005PTC046816	GOLDENSUN COSMOS MACHINERY PRIVATE LIMITED	Director	27/09/2005	27/09/2005	Active	NO
4	U29308GJ2009PTC058699	COSMOS GRINDING TECHNOLOGIES PRIVATE LIMITED	Director	25/11/2009	25/11/2009	Active	NO

Name :

Mrs. Veenita Nimish Shah

Designation :

Whole Time Director

Address :

36, Greenpark Society, Makarpura Road, Vadodara-390010, Gujarat, India

Date of Birth/Age :

11.03.1964

Date of Appointment :

04.09.1996

Din No.:

00372951

Name :

Mr. Nagesh Kamalngam Velaga

Designation :

Director

Address :

102, Mangalya Apartment, 79, Alkapuri, Vadodara-390007, Gujarat, India

Date of Birth/Age :

01.03.1963

Date of Appointment :

15.03.1997

Din No.:

00373006

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	Company/ LLP Status	Defaulting status
1	U29255GJ1994PTC021035	COSMOS IMPEX (INDIA) PVT LTD	Director	10/01/1994	10/01/1994	Active	NO
2	U29199GJ1996PTC030628	COSMOS ENGITECH PRIVATE LIMITED	Director	15/03/1997	15/03/1997	Active	NO
3	U29199GJ2005PTC046816	GOLDENSUN COSMOS MACHINERY PRIVATE LIMITED	Whole-time director	27/09/2005	27/09/2005	Active	NO
4	U29308GJ2009PTC058699	COSMOS GRINDING TECHNOLOGIES PRIVATE LIMITED	Director	25/11/2009	25/11/2009	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.08.2013

Names of Shareholders	No. of Shares
Veenita Nimish Shah	125500
Neetu Nagesh Velaga	122500
Nimish Arvind Shah	71300
Nagesh Kamalngam Velaga	72250
Prabhaben Arvindbhai Shah	65750
Rajesh S. Pradhan	26000
Arvindbhai Bhogilal Shah	49450
Aayush Nagesh Velaga	50000
Abhishek Nagesh Velaga	67250
Wu Mei Tai	105356
TOTAL	755356

AS ON 31.08.2013

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	13.95
Directors or relatives of directors	82.61
Other top fifty shareholders	3.44
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in Manufacturing of Precision Machined Components and Assemblies.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Alkapuri Branch, Vadodara-390005, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Long Term Borrowings
Term Loans
From Banks	6.293	9.574
Car Loan	1.249	1.539
Short Term Borrowings
Loans Repayable on Demand
From Banks Cash Credit	12.022	4.925
Term Loan From Others	17.167	14.764
TOTAL	36.731	30.802

Banking Relations :	--
Auditors :
Name :	Ambalal M Shah Chartered Accountants
Address :	108, Belle Vista, Near Birds Circle, Race Course, Vadodara-390007, Gujarat, India
PAN No:	ABUPJ1970B

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
755356	Equity Shares	Rs.10/- each	Rs.7.554 Millions

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	7.554	7.554	7.554
(b) Reserves & Surplus	88.967	76.687	31.148
(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)	96.521	84.241	38.702
(3) Non-Current Liabilities
(a) long-term borrowings	7.542	11.113	6.130
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	8.670	8.608	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	16.212	19.721	6.130
(4) Current Liabilities
(a) Short term borrowings	31.388	20.300	16.281
(b) Trade payables	24.290	31.872	19.375
(c) Other current liabilities	1.627	2.752	2.460
(d) Short-term provisions	6.956	3.693	3.267
Total Current Liabilities (4)	64.261	58.617	41.383
TOTAL	176.994	162.579	86.215
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	101.407	99.479	41.030
(ii) Intangible Assets	0.000	0.000	0.000
(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	3.500	3.500
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.220	0.203	0.129
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	101.627	103.182	44.659
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	25.253	20.757	14.275
(c) Trade receivables	27.467	25.971	22.395
(d) Cash and cash equivalents	9.647	6.058	1.004
(e) Short-term loans and advances	13.000	6.611	3.882
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	75.367	59.397	41.556
TOTAL	176.994	162.579	86.215

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012
	SALES
		Gross Income	151.607	173.323
		Other Income	NA	NA
		TOTAL (A)	NA	NA
Less	EXPENSES
		TOTAL (B)	NA	NA
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		26.182	16.870
Less	FINANCIAL EXPENSES (D)		5.242	4.924
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		20.940	11.946
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.660	5.040
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		16.280	6.906
Less	TAX (H)		4.000	1.240
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		12.280	5.666
	EARNINGS IN FOREIGN CURRENCY		124.521	64.896
	Earnings / (Loss) Per Share (Rs.)		16.25	7.50

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Return on Total Assets (PBT/Total Assets}	(%)	9.20	4.34	NA
Return on Investment (ROI) (PBT/Networth)		0.17	0.08	NA
Debt Equity Ratio (Total Debt/Networth)		0.40	0.37	0.57
Current Ratio (Current Asset/Current Liability)		1.17	1.01	1.00

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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES:

S. NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10272372	07/01/2013 *	69,100,000.00	STATE BANK OF INDIA	ALKAPURI BRANCH, ALKAPURI, VADODARA - 390005, GUJARAT, INDIA	B66759929
2	90111685	09/01/2013 *	72,700,000.00	STATE BANK OF INDIA	ALKAPURI BRANCH, ALKAPURI, VADODARA - 390005, GUJARAT, INDIA	B66686726
* Date of charge modification

NOTE:

The registered office of the company has been shifted from 711-13, Centre Point, R.C. Dutt Road, Vadodara-390007, Gujarat, India to the present address w.e.f. 31.07.2009.

Unsecured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Short Term Borrowings
Loans Repayable on Demand
From Others	2.199	0.611
TOTAL	2.199	0.611

OPERATIONS IN RETROSPECT:

During the year, the gross income of the company reached to Rs.151.607 millions as against Rs.173.323 millions for the corresponding previous year registering decrease of 12.53%. Whereas, the net profit reached to Rs.12.280 millions as against Rs.5.666 millions for the corresponding previous year registering rise of 116.73%.

The company would be continuing to endeavour to operate on its optimum capacities with relatively lesser costs and so as to generate still more surpluses in coming years. With the systematic, planned and result oriented approach and with the effective organizational set up to bring all round efficiency, the board expects better future performance of the company in coming years, barring unforeseen circumstances.

FIXED ASSETS:

· Factory Land

· Computer

· Office Equipments

· Building

· Furniture and Fixtures

· Plant and Machinery

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.62.17
UK Pound	1	Rs.103.38
Euro	1	Rs.85.09

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		33

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.