MIRA INFORM REPORT

Report Date :

13.05.2014

IDENTIFICATION DETAILS

Name :	INTECH SYSTEMS CHENNAI PRIVATE LIMITED
Registered Office :	S-2, Thiru-vi-ka Industrial Estate, Guindy, Chennai – 600 032, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	05.03.2003
Com. Reg. No.:	18-050450
Capital Investment / Paid-up Capital :	Rs.7.725 Millions
CIN No.: [Company Identification No.]	U72200TN2003PTC050450
IEC No.:	0498038564
TAN No.: [Tax Deduction & Collection Account No.]	33100903737
PAN No.: [Permanent Account No.]	AABCI0806J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Industrial Automation Products.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 344000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal business dealings at usual trade terms and condition.

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

India’s current account deficit for the fiscal third quarter ended September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in exports and moderation in gold imports. Manufacturing activity and new orders in India showed their strongest growth in a year in February. The news comes as a relief after data showed Asia’s third largest economy grew by a slower-than-expected 4.7 % annually in the three months through December. The HSBC Manufacturing Purchasing Managers’ Index which gauges the business activity of India’s factories but not its’ utilities, rose to 52.5 in February, its highest in a year from 51.4 in January. Overall new orders for factory goods which rose to a one-year high of 54.9 contributed to the surge. China has emerged as India’s biggest trading partner in the current financial year replacing the United Arab Emirates and pushing it to the third spot. India-China trade has reached $49.5 billion with a 8.7 % share in India’s total trade. The US comes second at $46 billion with 8.1 % share during the first nine months of the current financial year.

The Reserve Bank of India has granted an additional nine months to the public to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000 denominations, pushing the deadline to January 1, 2015. A day before dates for the Lok Sabha polls were announced, the government decided to hike interest rates on fixed deposit schemes offered by post offices up to 0.2 per cent. The new rates will be effective April, 1. The Supreme Court will resume hearing on March, 11 Nokia’s appeal against a ruling over transferring ownership of its local mobile phones plant which is the subject of a tax dispute to Microsoft Corp.

In the last days of the current Government, another scam has surfaced. The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The Central Bureau of Investigation will look into allegations that over $80 million was paid in kickbacks in a deal signed in 2011. India has asked Boeing Co. to find a solution for problems with state-owned Air India’s 787 Dreamliners. The aircraft has experienced a series of malfunctions since its debut in 2011.

RBI DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ 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. Shashikala
Designation :	Sales Website Development
Contact No.:	91-44-43538888
Date :	10.04.2014

LOCATIONS

Registered Office/ Corporate Office/ Factory :	S-2, Thiru-vi-ka Industrial Estate, Guindy, Chennai – 600 032, Tamilnadu, India
Tel. No.:	91-44-43538888
Fax No.:	91-44-43537888
E-Mail :	intech3@eth.net info@intechchennai.com
Website :	http://www.intechchennai.com
Location :	Owned
Windmill Division I :	SF No.864/1, Munduvelampatty Village, Dharapuram Taluk, Erode District, Tamilnadu, India
Windmill Division II :	SF.No.40715 and 406/B, Munduvelampatty Village, Dharapuram Taluk, Erode District, Tamilnadu, India
Petrol Bunk Division :	Reliance Petrol Bunk, Maraimalai Nagar, Chennai, Tamilnadu, India

DIRECTORS

As on : 30.09.2013

Name :

Mr. Palanisamy Duraisamy

Designation :

Managing Director

Address :

G-202, Gray Shoot, No.4, Bishop Garden Extension, R.A. Puram, Chennai – 600 028, Tamilnadu, India

Date of Appointment :

05.03.2003

DIN No. :

00077642

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	U02102TZ1992PTC003643	KOVAI MARUTHI PAPERS AND BOARDS PRIVATE LIMITED	Director	14-02-92	14-02-92	-	Active	NO
2	U72200TN2003PTC050450	INTECH SYSTEMS CHENNAI PRIVATE LIMITED	Managing director	05-03-03	05-03-03	-	Active	NO
3	U31300KA2006PTC038745	LONGWELL ELECTRONIC (INDIA) PRIVATE LIMITED	Director	19-08-06	19-08-06	28-11-11	Active	NO
4	U01112TN2011PTC080913	INTECH AGROTECH INDIA PRIVATE LIMITED	Director	02-06-11	02-06-11	-	Active	NO
5	U29253TN2013PTC092805	INNO Automation India Private Limited	Director	02-09-13	02-09-13	-	Active	NO

Name :

Mrs. Thamilarasi Duraisamy

Designation :

Managing Director

Address :

G-202, Gray Shoot, No.4, Bishop Garden Extension, R.A. Puram, Chennai – 600 028, Tamilnadu, India

Date of Appointment :

05.03.2003

DIN No. :

00361657

Name :

Naveen Kumar Duraiswamy

Designation :

Director

Address :

Flat No. G202 Gray Shott No.4, Bishop Garden Extn, R A Puram Chennai - 600028 Tamil Nadu India

Date of Birth/Age :

29.12.1986

Date of Appointment :

13.09.2013

DIN No. :

03525280

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	U01112TN2011PTC080913	INTECH AGROTECH INDIA PRIVATE LIMITED	Managing director	02-06-11	02-06-11	-	Active	NO
2	U29253TN2013PTC092805	INNO Automation India Private Limited	Managing director	02-09-13	02-09-13	-	Active	NO
3	U72200TN2003PTC050450	INTECH SYSTEMS CHENNAI PRIVATE LIMITED	Director	13-09-13	13-09-13	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 30.09.2013

Names of Shareholders	No. of Shares
Palanisamy Duraisamy	40000
Thamilarasi Duraisamy	25000
D. Naveen Kumar	4150

As on : 30.09.2013

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 Industrial Automation Products.
Products :	· Automation Systems · Sensing Solutions · Meters Controllers · Industrial Components · Motion Control · Weighing and Automation · RFID and Vision Systems · STI- Safety Solutions · Panels and Accessories
Terms :
Selling :	L/C and Credit
Purchasing :	L/C and Credit

GENERAL INFORMATION

Suppliers :

Rane TRW Steering Systems Limited, India

Customers :

TVS

No. of Employees :

100 (Approximately)

Bankers :

State Bank of India, Commercial Bank Guindy, Chennai – 600 032, Tamilnadu, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loan	0.288	1.201
SHORT TERM BORROWINGS
Loan repayable on Demand
From Bank	21.773	35.407
From Others	17.160	0.000
Total	39.221	36.608

Banking Relations :	--
Auditors :
Name :	P.SAKTHI AMPALIKAI Chartered Accountants
Address :	No.34, V.N.Road, Nandanam, Chennai – 600035, Tamil Nadu, India
PAN No.:	AAHPA5584C

CAPITAL STRUCTURE

As on : 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs.100/- each	Rs.15.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
77250	Equity Shares	Rs.100/- each	Rs.7.725 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	7.725	7.725	7.725
(b) Reserves & Surplus	78.342	72.997	69.065
(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)	86.067	80.722	76.790
(3) Non-Current Liabilities
(a) Long-term borrowings	0.288	1.201	5.099
(b) Deferred tax liabilities (Net)	3.372	3.777	4.172
(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)	3.660	4.978	9.271
(4) Current Liabilities
(a) Short term borrowings	38.933	35.407	30.769
(b) Trade payables	39.686	14.782	5.423
(c) Other current liabilities	4.159	2.174	2.296
(d) Short-term provisions	1.132	1.229	0.000
Total Current Liabilities (4)	83.910	53.592	38.488
TOTAL	173.637	139.292	124.549
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	38.336	40.761	42.506
(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	9.993	10.478	10.809
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	48.329	51.239	53.315
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	67.661	41.556	32.867
(c) Trade receivables	40.128	30.053	20.463
(d) Cash and cash equivalents	5.018	7.414	5.584
(e) Short-term loans and advances	12.501	9.030	12.320
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	125.308	88.053	71.234
TOTAL	173.637	139.292	124.549

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	220.090	221.261	601.202
		Other Income	0.527	0.744	0.653
		TOTAL (A)	220.617	222.005	601.855
Less	EXPENSES
		Cost of materials consumed
		Purchase of stock in trade
		Changes in Inventories
		Employees Benefits
		Other Expenses
		TOTAL	210.645	214.010	595.318
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		9.972	7.995	6.537
Less/ Add	DEPRECIATION/ AMORTISATION		NA	NA	NA
	PROFIT/ (LOSS) BEFORE TAX		NA	NA	NA
Less	TAX		NA	NA	NA
	PROFIT/ (LOSS) AFTER TAX		5.345	3.932	2.919
	Earnings / (Loss) Per Share (Rs.)		69.19	50.90	37.79

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	2.44	1.77	0.49
Net Profit Margin (PBT/Sales)	(%)	NA	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	NA	NA	NA
Return on Investment (ROI) (PBT/Networth)		NA	NA	NA
Debt Equity Ratio (Total Debt/Networth)		0.46	0.45	0.47
Current Ratio (Current Asset/Current Liability)		0.87	1.64	1.85

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	7.725	7.725	7.725
Reserves & Surplus	69.065	72.997	78.342
Net worth	76.790	80.722	86.067
long-term borrowings	5.099	1.201	0.288
Short term borrowings	30.769	35.407	38.933
Total borrowings	35.868	36.608	39.221
Debt/Equity ratio	0.467	0.454	0.456

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	601.202	221.261	220.090
		-63.197	-0.529

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Sales	601.202	221.261	220.090
Profit	2.919	3.932	5.345
	0.49%	1.78%	2.43%

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	No
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	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
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]	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	90288047	04/06/2012 *	47,500,000.00	State Bank of India	S M E Guindy Branch, A-65, G.S.T Road, Guindy, Chennai - 600032, Tamil Nadu -, India	B42531293

FIXED ASSETS:

· Land

· Building

· Plant and Equipments

· Plant and Equipments – Windmill

· Furniture and Fixtures

· Office Equipment

· Computers

· Vehicles

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.59.73
UK Pound	1	Rs.100.82
Euro	1	Rs.82.22

INFORMATION DETAILS

Information Gathered by :	PDT
Analysis Done by :	DIV
Report Prepared by :	NIS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	5
--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		44

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.