MIRA INFORM REPORT

Report Date :

21.03.2014

IDENTIFICATION DETAILS

Name :	GDR MEKTEK PRIVATE LIMITED
Registered Office :	No. 1334, 26th Main, 27th Cross, BSK II Stage, Bangalore - 560070 , Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	05.06.2006
Com. Reg. No.:	08-039631
Capital Investment / Paid-up Capital :	Rs.11.500 Millions
CIN No.: [Company Identification No.]	U29219KA2006PTC039631
TAN No.: [Tax Deduction & Collection Account No.]	BLRG07340E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Heavy-Duty Machines.
No. of Employees :	70 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (35)

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

Maximum Credit Limit :	USD 62000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has shown growth in the turnover and profit during financial year 2013, however, the reserves of the company’s are low. Trade relations are reported to be fair. Business is active. Payments terms are reported to be 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 – 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

State-run banks hired nearly 300000 personnel including more than 94000 officers in the last four years, according to the Indian Banks Association. A study by trade lobby Assocham in September 2013 indicated that banks would need 800000 people in the next six years. It estimated that state-run lenders alone would hire 50000 people in 2013/14.

The Competition Commission of India plans to issue final orders within a broad time-frame of one year in matters where it decides to carry out detailed investigations. The number of complaints received by the watchdog which keeps tabs on unfair trade practices in the marketplace.

The government has detected custom tax evasion totaling around Rs 37920 mn in 14 states until December. Maharashtra topped the list of Rs 14190 mn followed by Andhra Pradesh at Rs 8140 mn, Gujarat Rs 5240 mn, Karnataka Rs 1670 mn and Tamilnadu Rs 1610 mn.

Connaught Place in New Delhi slipped four notches to become the world’s eighth most expensive office locations. London’s West End is the world’s most expensive office market.

There are 4.072 mn number of high value spenders under the scanner of the income tax department. The income tax department has information that they have made cash deposits announcing to Rs 1 mn or more in their savings bank accounts in the current financial year. It plans to check potential evasion before the closing of the financial year on March 31.

Estimated pharmaceutical sales in the country for 2016 is $ 27 bn. It is 14.4 per cent higher than a year ago. The life sciences and health care industry is up against challenges such as quality management, says a recent Deloitte report.

The gross non-performing assets of listed banks rose 35.2 % to Rs 2.43 lakh crore during the first three months of the financial year. In absolute terms, the 40 listed banks added Rs 3386 crore to their gross NPAs in nine months with the State Bank of India leading with the State Bank of India leading with an accretion of Rs 16610 crore.

The inflow of smuggled gold doubled in 2013 following restrictions to curb the supply from official channels to contain the current account deficit. China surpassed India in the demand for gold for the first time in 2013 due to liberalization of gold trading norms by its local governments.

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. Jaya
Designation :	Accounts Department
Contact No.:	91-80-26483022
Date :	18.03.2014

LOCATIONS

Registered Office :	No. 1334, 26th Main, 27th Cross, BSK II Stage, Bangalore - 560070 , Karnataka, India
Tel. No.:	91-80-26483022
Mobile No.:	91-9343132040 (Mr. Prabhakar)
Fax No.:	Not Available
E-Mail :	gdr@gdrmektek.com info@gdrmektek.com
Website :	http://www.gdrmektek.com
Location :	Owned
Head Office/ Factory 1 :	# 736, Sy # 33/2, 77/1, Hulimavu Village, Bannerghatta Road, Bangalore – 560076, Karnataka, India
Factory 2 :	No.57, Mylasandra, BGS College Road, RVC Post, BEML 7th Stage, 1st Phase, 2nd Main, 5th Cross, Bangalore – 560059, Karnataka, India
Tel. No.:	91-80-28605742
Fax No.:	91-80-28605742

DIRECTORS

As on 30.09.2013

Name :

Mr. Krishna GDR

Designation :

Director

Address :

1334, 26^th, main, 27^th Cross, BSK II Stage, Bangalore – 560070, Karnataka, India

Date of Birth/Age :

04.03.1964

Date of Appointment :

05.06.2006

DIN No.:

00010754

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	U85110KA1994PTC016215	SPECIAL PURPOSE MACHINES (INDIA) PRIVATE LIMITED	Director	12/09/1994	12/09/1994	-	Active	NO
2	U85110KA1995PTC017772	G.D.TECHCENTRE PRIVATE LIMITED	Director	08/05/1995	08/05/1995	-	Active	NO
3	U51505KA1997PTC022060	G.D. INDIA PRIVATE LIMITED	Director	01/04/1997	01/04/1997	-	Active	NO
4	U85110KA1997PLC022059	S.P.M. (INDIA) LIMITED	Director	01/04/1997	01/04/1997	-	Active	NO
5	U29299KA1997PTC022061	QUICLOC PRIVATE LIMITED	Director	01/04/1997	01/04/1997	-	Active	NO
6	U72900KA2000PTC026333	GD SOFTECH PRIVATE LIMITED	Director	04/02/2000	04/02/2000	-	Strike off	NO
7	U29219KA2006PTC039631	GDR MEKTEK PRIVATE LIMITED	Director	05/06/2006	05/06/2006	-	Active	NO

Name :

Mr. G.K. Parijatha

Designation :

Director

Address :

1334, 26^th, main, 27^th Cross, BSK II Stage, Bangalore – 560070, Karnataka, India

Date of Birth/Age :

21.06.1964

Date of Appointment :

05.06.2006

DIN No.:

05144281

KEY EXECUTIVES

Name :	Ms. Jaya
Designation :	Accounts Department

MAJOR SHAREHOLDERS

As on 30.09.2013

Names of Shareholders	No. of Shares	% of Holding
Krishna GDR	750000	65.22
G.K. Parijatha	400000	34.78
Total	1150000	100.00

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Heavy-Duty Machines.
Exports :
Products :	Finished Goods
Countries :	USA
Imports :
Products :	Raw Material
Countries :	· USA · Germany
Terms :
Purchasing :	Depend

GENERAL INFORMATION

Customers :

OEM’s

No. of Employees :

70 (Approximately)

Bankers :

State Bank of India, SME JP Nagar Branch, 5th Phase, JP Nagar, Bangalore - 560078, Karnataka, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Term Loans from Banks (Secured by Hypothecation of all Raw-materials, semi-finished and finished goods, Bills receivables and Personal Guarantees of Directors)
SBI Cash Credit A/c. (Secured against Hypothecations of Vehicle)	12.276	12.195
ICICI Car Loan (Secured against Hypothecations of Vehicle)	1.160	1.358
HDFC Car Loan (Secured by hypothecation of Vehicle and the Personal Guarantee of the Directors of the company)	0.495	0.580
Short Term Borrowings
From Banks (Secured against Hypothecation of Vehicle)
ICICI Car Loan (Secured against Hypothecation of Vehicle)	0.198	1.130
HDFC Car Loan (Secured by hypothecation of Vehicle and the Personal Guarantee of the Directors of the company)	0.086	0.268
Total	14.215	15.531

Banking Relations :	--
Auditors :
Name :	A. Bala Muruli Krishna Chartered Accountants
Address :	MU-201, Towns End, Avalahali Village, Doddaballapur Road, Yelahanka, Bangalore – 560064, Karnataka, India
PAN No.:	ADUPK3408P
Associate Companies :	· Quicloc Private Limited · SPM India Limited

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1150000	Equity Shares	Rs.10/- each	Rs.11.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1150000	Equity Shares	Rs.10/- each	Rs.11.500 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	11.500	11.500	11.500
(b) Reserves & Surplus	3.894	2.608	2.246
(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)	15.394	14.108	13.746
(3) Non-Current Liabilities
(a) long-term borrowings	13.931	14.133	7.329
(b) Deferred tax liabilities (Net)	1.145	1.475	1.482
(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)	15.076	15.608	8.811
(4) Current Liabilities
(a) Short term borrowings	15.965	17.332	6.577
(b) Trade payables	19.429	5.599	5.343
(c) Other current liabilities	7.855	13.085	13.680
(d) Short-term provisions	0.238	0.133	0.060
Total Current Liabilities (4)	43.487	36.149	25.660
TOTAL	73.957	65.865	48.217
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	11.343	15.346	15.819
(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	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1.698	2.324	2.255
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	13.041	17.670	18.074
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	14.356	22.699	19.489
(c) Trade receivables	40.270	19.822	6.177
(d) Cash and cash equivalents	2.942	3.766	3.166
(e) Short-term loans and advances	3.348	1.887	1.290
(f) Other current assets	0.000	0.021	0.021
Total Current Assets	60.916	48.195	30.143
TOTAL	73.957	65.865	48.217

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	59.186	37.280	49.073
		Other Income	0.684	0.916	1.415
		TOTAL	59.870	38.196	50.488
Less	EXPENSES
		Cost of Materials Consumed		23.062	26.269
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		(5.852)	1.752
		Employee Benefits Expenses		10.096	8.276
		Other Expenses		7.513	7.927
		TOTAL	57.365	34.819	44.225
			(including financial expenses)
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION			3.377	6.263
Less	FINANCIAL EXPENSES			1.605	1.794
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		2.505	1.772	4.469
Less	DEPRECIATION/ AMORTISATION		1.443	1.345	0.803
	PROFIT/(LOSS) BEFORE TAX		1.062	0.427	3.666
Less	TAX		(0.224)	0.065	0.280
	PROFIT/(LOSS) AFTER TAX		1.286	0.362	3.386
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.609	2.247	(1.139)
	BALANCE CARRIED TO THE B/S		3.895	2.609	2.247
	Earnings Per Share (Rs.)		1.12	0.55	5.12

Expected sales (2013-2014): Rs.55.000 Millions

The above information has been parted by Ms. Jaya, Accounts Department

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	2.15	0.95	6.71
Net Profit Margin (PBT/Sales)	(%)	1.79	1.15	7.47
Return on Total Assets (PBT/Total Assets}	(%)	1.44	0.65	7.60
Return on Investment (ROI) (PBT/Networth)		0.07	0.03	0.27
Debt Equity Ratio (Total Debt /Networth)		1.94	2.23	1.01
Current Ratio (Current Asset/Current Liability)		1.40	1.33	1.17

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	11.500	11.500	11.500
Reserves & Surplus	2.246	2.608	3.894
Share Application money pending allotment	0.000	0.000	0.000
Net worth	13.746	14.108	15.394
long-term borrowings	7.329	14.133	13.931
Short term borrowings	6.577	17.332	15.965
Total borrowings	13.906	31.465	29.896
Debt/Equity ratio	1.012	2.230	1.942

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
Sales	49.073	37.280	59.186
		(24.032)	58.761

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	49.073	37.280	59.186
Profit	3.386	0.362	1.286
	6.90%	0.97%	2.17%

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	Yes
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

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Short Term Borrowings
From Directors	15.681	15.934
Total	15.681	15.934

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10166895	14/12/2010 *	30,000,000.00	State Bank of India	SME JP Nagar Branch, 5th Phase, JP Nagar, Bangalore - 560078, Karnataka, India	B02877272

*Date of modification Charges

FIXED ASSETS:

· Partitions and Fabrications

· Tools and Dies

· Electrical Installation

· Office Equipment’s

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

· Mobile Phone

· Auto Desk 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.61.13
UK Pound	1	Rs.101.17
Euro	1	Rs.84.59

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		35

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.