MIRA INFORM REPORT

Report No. :	352169
Report Date :	07.12.2015

IDENTIFICATION DETAILS

Name :	MEDHA TRACTION EQUIPMENT PRIVATE LIMITED
Registered Office :	Sy. No. 787, 788, 790 & 791, Jodimetla X Roads, Ghatkesar Mandal, Chowdaryguda Village, Range Reddy-500088, Telangana
Tel. No.:	91-40-67237999
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	23.08.2008
Com. Reg. No.:	060706
Capital Investment / Paid-up Capital :	Rs. 211.300 Million
CIN No.: [Company Identification No.]	U74900TG2008PTC060706
IEC No.:	0912000147
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAFCM7706D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Seller of Rotating Machines (Traction Motors and Alternators) for application in Railway Vehicles (Diesel/Electric Locomotives, EMUs, DEMUs, Metros etc). (Registered Activity)
No. of Employees :	Not Available

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 429700
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Medha Traction Equipment Private Limited is a 50:50 joint venture company between “Medha “Servo Drives Private Limited” and “”Trasys Asia Limited”. It is an established company having moderate track record. As per financial of the year 2014, company has reported loss from its business operations. Further, rating is constrained on account of company’s moderate financial risk profile marked by its negative reserves level and leverage balance sheet profile of the company. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. In view of aforesaid, 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

NOT AVAILABLE

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 31-03-2015.

LOCATIONS

Registered Office/ Factory :	Sy. No. 787, 788, 790 & 791, Jodimetla X Roads, Ghatkesar Mandal, Chowdaryguda Village, Range Reddy-500088, Telangana, India
Tel. No.:	91-40-67237999
Fax No.:	91-40-27260005
E-Mail :	info@medhatraction.com marketing@medhatraction.com

DIRECTORS

AS ON 24.07.2014

Name :	Mr. Srinivas Reddy Nookala
Designation :	Managing director
Address :	Plot No.17, Icrisat Colony, Phase-1, Bowenpally, Secunderabad, 500009, Andhra Pradesh, India
Date of Birth/Age :	20.02.1967
Date of Appointment :	23.08.2008
DIN No.:	01373219
Name :	Mr. Yedavalli Reddy Kasyap
Designation :	Director
Address :	12-12-312/1, St. No 13, Tarnaka, Secunderabad-500017, Andhra Pradesh, India
Date of Birth/Age :	17.03.1979
Date of Appointment :	23.08.2008
DIN No.:	02088825
Name :	Mr. Guenter Eichhubl
Designation :	Director
Address :	Hainbach 44, Klausen Leopoldsdorf, 2533, Austria
Date of Birth/Age :	19.09.1959
Date of Appointment :	24.03.2010
DIN No.:	02666029
Name :	Mr. Robert Tencl
Designation :	Director
Address :	Moellersdorferstr. 26/1/4, Guntramsdorf, 2353, Austria
Date of Birth/Age :	14.02.1969
Date of Appointment :	12.01.2012
DIN No.:	05159036

KEY EXECUTIVES

Name :	Mr. Varun Deshmukh
Designation :	Secretary
Address :	C/o Y. Bhavanarayana, Plot No.114,, H. No. 10-71, Street No.9, HMT Nagar, Nacharam, Hyderabad-500076, Andhra Pradesh, India
Date of Birth/Age :	18.06.1985
Date of Appointment :	02.01.2014
PAN No.:	AKJPD8944M

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 24.07.2014

Names of Shareholders	No. of Shares
Medha Servo Drives Private Limited, India	10565000
Trasys Asia Limited, Hong Kong	10565000
Total	21130000

AS ON 24.07.2014

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]	50.00
Bodies corporate	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Seller of Rotating Machines (Traction Motors and Alternators) for application in Railway Vehicles (Diesel/Electric Locomotives, EMUs, DEMUs, Metros etc). (Registered Activity)

Products :

ITC Code No.	Product Descriptions
85015330	Traction Motor

Brand Names :

--

Agencies Held :

--

Exports :

Not Available

Imports :

Not Available

Terms :

Not Available

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

Not Available

Bankers :

Bank Name:	Not Divulged
Branch:	Not Divulged
Person Name (with Designation):	Not Divulged
Contact Number:	Not Divulged
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks:	Not Divulged

· Citi Bank N. A.

1st Floor, Queens Plaza, Sardar Patel Road, Hyderabad - 500003, Andhra Pradesh, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Term loans from banks	115.928	0.000
SHORT TERM BORROWINGS
Loans repayable on demand	38.596	0.000
Total	154.524	0.000

Banking Relations :	--
Auditors :
Name :	V.G. Rao and Associates Chartered Accountants
Address :	G-4, 2-2-647/125A, Sagarika Apartment, Central Excise Colony Bagh Amberpet, Hyderabad-500013, Telangana, India
Income-tax PAN of auditor or auditor's firm :	AABFV3661M
Memberships :	--
Collaborators :	--
Associates :	· Medha Servo Drives Private Limited, India (U31103TG1984PTC004436) · Trasys Asia Limited, Hong Kong · Traktionssysteme Austria Gmbh

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
22,000,000	Equity Shares	Rs. 10/- each	Rs. 220.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21,130,000	Equity Shares	Rs. 10/- each	Rs. 211.300 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	211.300	211.300	0.200
(b) Reserves & Surplus	(60.871)	3.610	0.000
(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)	150.429	214.910	0.200
(3) Non-Current Liabilities
(a) Long-term borrowings	115.928	0.000	0.000
(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)	115.928	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	188.596	0.000	9.000
(b) Trade payables	68.042	2.512	0.050
(c) Other current liabilities	8.646	2.093	0.165
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	265.284	4.605	9.215
TOTAL	531.641	219.515	9.415
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	263.970	0.723	0.044
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.631	94.380	7.954
(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)	28.904	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	293.505	95.103	7.998
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	92.947	4.169	0.000
(c) Trade receivables	83.711	0.000	0.000
(d) Cash and cash equivalents	9.205	69.425	1.301
(e) Short-term loans and advances	0.000	0.000	0.000
(f) Other current assets	52.273	50.818	0.116
Total Current Assets	238.136	124.412	1.417
TOTAL	531.641	219.515	9.415

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014
	SALES
		Revenue from Operations	120.803
		Other Income	1.865
		TOTAL (A)	122.668
Less	EXPENSES
		Cost of Materials Consumed	179.549
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(31.742)
		Employees benefits expense	8.196
		Other expenses	22.079
		TOTAL (B)	178.082
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(55.414)
Less	FINANCIAL EXPENSES (D)		16.722
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(72.136)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		20.905
	PROFIT BEFORE TAX (E-F) (G)		(93.041)
Less	TAX (H)		(28.559)
	PROFIT AFTER TAX (G-H) (I)		(64.482)
	Earnings Per Share (Rs.)		(3.05)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	NA	NA	NA
Cash Generated from Operations	NA	NA	NA
Net Cash Flow from used in Operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	(53.38)	NA	NA
Operating Profit Margin (PBDIT/Sales)	(%)	(45.87)	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	(18.53)	NA	NA
Return on Investment (ROI) (PBT/Networth)		(0.62)	NA	NA
Debt Equity Ratio (Total Debt/Networth)		2.02	0.00	45.00
Current Ratio (Current Asset/Current Liability)		0.90	27.02	0.15

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	0.200	211.300	211.300
Reserves & Surplus	0.000	3.610	(60.871)
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	0.200	214.910	150.429
Long-term borrowings	0.000	0.000	115.928
Short term borrowings	9.000	0.000	188.596
Total borrowings	9.000	0.000	304.524
Debt/Equity ratio	45.000	0.000	2.024

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	No
8	Designation of contact person	No
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10451232	05/07/2014 *	100,000,000.00	CITI BANK N.A.	1ST FLOOR, QUEENS PLAZA, SARDAR PATEL ROAD, HYDER ABAD- 500003, TELANGANA, INDIA	C15495419
2	10424017	08/04/2013	165,000,000.00	CITIBANK N. A.	1ST FLOOR, QUEENS PLAZA,, SARDAR PATEL ROAD,, HYD ERABAD, ANDHRA PRADESH - 500003, INDIA	B74525072

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
SHORT TERM BORROWINGS
Intercorporate borrowings	150.000	0.000
Total	150.000	0.000

CORPORATE INFORMATION:

Subject is a Private Limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is engaged in the manufacturing and selling of Rotating Machines (Traction Motors and Alternators) for application in Railway Vehicles (Diesel/Electric Locomotives, EMUs, DEMUs, Metros etc.,). It is a joint venture company between Medha Servo Drives (Private) Limited, a company based at Hyderabad and Trasys Asia Limited, company incorporated under the laws of Hong Kong, with both parties holding share capital in the ratio of 1:1.

HIGHLIGHTS OF THE RESULTS OF OPERATIONS

The initial trial production commenced from June, 2013 as per the projected plan of action.

The prototype DEMU motors (8 nos.) produced and supplied by TSA are now undergoing field trials and have already run for more than 65,000 Kms. satisfactorily. A similar trial for 12 numbers WDG 4 prototype motors supplied are running satisfactorily in the field.

The prototype motor for EMU application for type testing is planned to be manufactured during the financial year 2014-15.

48 motors have already been supplied to DLW during the financial year out of the order for 60 numbers for WDG 4 motors. The balance 12 motors were supplied during the financial year 2014-15. Gross amount of Rs.285.62 million was spent as on 31st March, 2014 towards Capital expenditure (inclusive of Building cost) as against the budgeted cost of Rs.350 million. Procurement, erection and commissioning of all Capital equipment was completed within the budgeted cost and time. The entire Capex has been capitalised in the books of accounts.

A reasonable vendor data base has been established for both imported and indegenous materials for both WDG 4 and EMU motors to meet the quality requirements specified by TSA.

A team of frontline supervisors and associates were recruited and trained in various processes and activities to deliver the products as per stringent quality requirements of TSA.

The Company has been certified with ISO 9001:2008 certificate for it’s quality standards by theagency M/s American Quality Assessors (India) Private Limited and such certificate is effect from 6th January, 2014 for a period of 3 year for the manufacture of AC traction motors. The company has obtained the consent to establish from Andhra Pradesh Pollution Control Board and has applied for consent to operate which is now under progress.

Towards ERP implementation, SAP has been rolled out to carry out all material planning, procurement, production and finance functions. The system is now in place and functioning satisfactorily. The company expresses gratitude and puts on the contribution made by the teams from MSDPL for the implementation of both SAP and ISO 9001:2008.

FIXED ASSETS:

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer Equipments

· Leasehold Improvements

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 records 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 records 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. 66.84
UK Pound	1	Rs. 101.04
Euro	1	Rs. 73.05

INFORMATION DETAILS

Analysis Done by :	HNA
Report Prepared by :	IND

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	1
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	1
--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	YES
--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.