MIRA INFORM REPORT

Report Date :

30.07.2014

IDENTIFICATION DETAILS

Name :	ESSEM SRINISONS SYSTEMS PRIVATE LIMITED
Registered Office :	Plot No. 47, Yashashree, Dashmesh Nagar, Aurangabad – 431005, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	24.08.1998
Com. Reg. No.:	11-116679
Capital Investment / Paid-up Capital :	Rs. 10.000 Millions
CIN No.: [Company Identification No.]	U29193MH1998PTC116679
TIN No.:	27730002117
PAN No.: [Permanent Account No.]	AAACE7067N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Wiring Harness.
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 369000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Financial position of the company seems to be decent. Trade relations are reported as fair. Business is active. Payment terms are reported to be usually correct and as per commitments. The company can be considered normal for 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.

HENKEL RATING

HENKEL’s Rating :

350 (Significant risk)

Credit Rating	Henkel Rating (Customer Risk Assesment- CRA)
Mira Inform	Risk Category	Credit Limit	Description
Aaa	100	Inter Company, credit limit not required	Very low risk (blue ships)
Aa	200, 201	(120% of Gross Annualised Sales/365)*Credit Term.	Low risk
A	300, 301	(100% of Gross Annualised Sales/365)*Credit Term.	Moderate risk
Ba	350	(90% of Gross Annualised Sales/365)*Credit Term.	Significant risk
B	400	(80% of Gross Annualised Sales/365)*Credit Term.	High risk
	450		Very high risk
Ca or C	500*	NIL/ Legal/ Bad/No Transaction	Doubtful accounts
	007*	NIL	Small unrated customers
	009*	NIL	Inactive customers
	999*	Initially First Invoice vales, CRA will be done and based on report the CL would get revised.	New customer

ECGC Country Risk Classification List – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Nandkishore
Designation :	Accounts Head
Contact No.:	91-9881088314
Date :	29.07.2014

LOCATIONS

Registered Office :	Plot No. 47, Yashashree, Dashmesh Nagar, Aurangabad - 431005, Maharashtra, India
Tel. No. :	91-240-2694507
Mobile No. :	91-9881088314 (Mr. Nandkishore)
Fax No. :	91-240-2694412
E-Mail :	gakulkarni@essemsrinisons.com devendraring@gmail.com
Website :	www.essemsrinisons.com
Head Office :	C-101, First Floor, Remibiz-court, Saha Industrial Estate, Plot No. 9, Off Veera Desai Road, Andheri (West), Mumbai – 400058, Maharashtra, India
E-Mail :	info@essemsrinisons.com
Factory 1 :	Gut No. 258, Beside Arklite Company, Kharabwadi, Talegaon Road, Taluka-Khed, Chakan – 410501, Maharashtra, India
Tel. No.:	91-2135-256024
Fax No.:	91-2135-256245
E-Mail :	nsawalgaonkar@essemsrinisons.com info@essemsrinisons.com
Factory 2 :	Plot No. 1, Gut No. 8, Naigaon Khandewadi, Paithan Road, Aurangabad - 431107, Maharashtra, India
E-Mail :	info@essemsrinisons.com

DIRECTORS

As on 24.09.2013

Name :

Mr. Shirish Prakash Mansabdar

Designation :

Managing director

Address :

Plot. No.47, Dashmesh Nagar, Osmanpur, Aurangabad – 431005, Maharashtra, India

Date of Birth/Age :

04.05.1971

Date of Appointment :

28.09.1998

DIN No. :

00565477

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	U29193MH1998PTC116679	ESSEM SRINISONS SYSTEMS PRIVATE LIMITED	Managing director	28-09-1998	28-09-1998	-	Active	NO
2	U74999MH1999PTC118438	ESSEM TECHNODESIGN PRIVATE LIMITED	Director	19-02-1999	19-02-1999	29-09-2011	Active	NO

Name :

Aruna Prakash Mansabdar

Designation :

Director

Address :

Flat No. 162, B- Wing, Juhu Trishul, Co.Op, Gulmohar Road No - 6, JVPO, Mumbai – 400059, Maharashtra, India

Date of Birth/Age :

09.02.1946

Date of Appointment :

28.09.1998

DIN No. :

00565905

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	U29193MH1998PTC116679	ESSEM SRINISONS SYSTEMS PRIVATE LIMITED	Director	28-09-1998	28-09-1998	-	Active	NO
2	U74999MH1999PTC118438	ESSEM TECHNODESIGN PRIVATE LIMITED	Director	19-02-1999	19-02-1999	29-09-2011	Active	NO

Name :

Mr. Sandeep Suhas Patki

Designation :

Whole-time director

Address :

Flat No. G 202, S. No. 615, Sudarshan Apts, Karve Nagar, Pune – 411052, Maharashtra, India

Date of Birth/Age :

20.06.1971

Date of Appointment :

22.12.2005

DIN No. :

00568340

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	U29193MH1998PTC116679	ESSEM SRINISONS SYSTEMS PRIVATE LIMITED	Whole-time director	22-12-2005	22-12-2005	Active	NO
2	U74999MH1999PTC118438	ESSEM TECHNODESIGN PRIVATE LIMITED	Director	13-08-2009	13-08-2009	Active	NO

Name :

Mr. Rangaraj Varadaraj

Designation :

Whole-time director

Address :

F No. 22, Chanakyapuri - II, Shahanoorwadi, Aurangabad – 431005, Maharashtra, India

Date of Birth/Age :

25.12.1970

Date of Appointment :

22.12.2005

DIN No. :

00785021

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	U29193MH1998PTC116679	ESSEM SRINISONS SYSTEMS PRIVATE LIMITED	Whole-time director	22-12-2005	22-12-2005	Active	NO
2	U74999MH1999PTC118438	ESSEM TECHNODESIGN PRIVATE LIMITED	Director	13-08-2009	13-08-2009	Active	NO

KEY EXECUTIVES

Name :	Mr. Nandkishore
Designation :	Accounts Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.09.2013

Names of Shareholders	No. of Shares	Percentage of Holding
Shirish Prakash Mansabdar	49000	49.00
Aruna Prakash Mansabdar	51000	51.00
Total	100000	100.00

Allottees as on 30.03.2014

Names of Allottees	No. of Shares
Shirish Prakash Mansabdar	12500
Aruna Prakash Mansabdar	12500
Total	25000

As on 24.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Wiring Harness.
Terms :
Selling :	Cash, Cheque and Credit
Purchasing :	Cash, Cheque and Credit

GENERAL INFORMATION

Customers :

Others

No. of Employees :

400 (Approximately)

Bankers :

· The Karur Vysya Bank Limited, Sector-14, Payal Cinema Complex, Gurgaon - 122001, Haryana, India

Axis Bank, Kranti Chowk, Aurangabad, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Term Loans from Bank #
Axis Bank Limited – 00002202	0.631	2.069
Axis Bank Limited – 11033817	4.646	2.735
Axis Bank Limited - 22166558	4.979	6.921
Axis Bank Limited – 452108	9.530	0.000
LAP from Reliance Capital – Jahu Trishul Flat	21.959	19.461
LAP from Reliance Capital – Gopal Vishnu Flat	10.087	0.000
SHORT TERM BORROWINGS
Working Capital Loans from Banks
-Axis Bank Limited - 00000417	49.999	49.741
-Axis Bank Limited – 00000426	9.445	28.442
Total	111.276	109.369

NOTE

LONG TERM BORROWINGS

# The loan was secured against hypothecation of Plant and Machinery, addition to building and other capital investment.

SHORT TERM BORROWINGS

The loan is secured against hypothecation of stocks of raw materials, WIP, Finished Goods, Present and Future Receivable. It is also secured by the charge on the other assets of the company and personal guarantee of all the directors of the company.

Banking Relations :	--
Auditors :
Name :	V. D. Abhyankar and Associates Chartered Accountants
Address :	Flat No.3, Rukmini Apartments, Chetna Nagar, Aurangabad – 431005, Maharashtra, India
Tel. No. :	91-240-2332460/ 6421755
Mobile No. :	91-9822030471/ 9822086466
Income-tax PAN of auditor or auditor's firm :	AAPPA5537K

CAPITAL STRUCTURE

After 24.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
125,000	Equity Shares	Rs.100/- each	Rs. 12.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
125,000	Equity Shares	Rs.100/- each	Rs. 12.500 Millions

As on 24.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
125,000	Equity Shares	Rs.100/- each	Rs. 12.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100,000	Equity Shares	Rs.100/- each	Rs. 10.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

NOTE : FINANCIAL DETAIL ATTACHED.

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	10.000	10.000	10.000
Reserves & Surplus	63.807	69.727	81.705
Net worth	73.807	79.727	91.705
long-term borrowings	16.905	53.107	75.164
Short term borrowings	49.717	78.183	59.444
Total borrowings	66.622	131.290	134.608
Debt/Equity ratio	0.903	1.647	1.468

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	507.800	541.800	597.100
		6.696	10.207

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	507.800	541.800	597.100
Profit	36.500	6.800	12.000
	7.19%	1.26%	2.01%

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 four 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)	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

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10047063	07/10/2013 *	172,200,000.00	AXIS BANK LIMITED	GROUND FLOOR, SARKAR BUILDING,, ADALAT ROAD, KRANTI CHOWK, AURANGABAD, MAHARASHTRA - 431001, INDIA	B87777678
2	10048362	27/03/2008 *	52,266,000.00	AXIS BANK LIMITED	SARKAR BUILDING, ADALAT ROAD, KRANTI CHOWK, AUR  ANGABAD, MAHARASHTRA - 431005, INDIA	A37000783

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Loans and Advances from Related Parties
Mansabdar Aruna Prakash	4.460	3.322
Mansabdar Ashwini Shirish	1.301	0.947
Mansabdar Prakash Manoharrao	1.352	0.000
Mansabdar Shirish Prakash	10.043	9.541
Deferred Payment Liabilities
Sales Tax Defferal Scheme	6.176	8.111
Total	23.332	21.921

OPERATING RESULTS

During the year, the company had achieved a turnover of Rs. 597.100 Millions against last year’s Rs. 541.800 Millions. The company is positive about its future growth.

FIXED ASSETS

Tangible Assets

· Freehold Land

Building for Own Use

Plant and Machinery

Electrical Installations

Furniture and Fixtures

Vehicles

Office Equipments

Computer

Generator (D.G. Set)

Testing Equipments

Intangible Assets

· Royalty

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.60.10
UK Pound	1	Rs.102.04
Euro	1	Rs.80.74

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	RAS
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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		48

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

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.