MIRA INFORM REPORT

Report No. :	339165
Report Date :	03.09.2015

IDENTIFICATION DETAILS

Name :	MICROMATIC GRINDING TECHNOLOGIES LIMITED (w.e.f.20.10.1997)
Formerly Known As :	PARISHUDH SADHAN YANTRA LIMITED (w.e.f.01.07.1997) PARISHUDH SADHAN YANTRA PRIVATE LIMITED
Registered Office :	301, Vikas Deep, Laxmi Nagar, District Center, New Delhi – 110092
Tel. No.:	91-11-22026874
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	31.03.1982
Com. Reg. No.:	55-042422
Capital Investment / Paid-up Capital :	Rs.9.290 Million
CIN No.: [Company Identification No.]	U74899DL1982LC042422
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	MRTM01100B
PAN No.: [Permanent Account No.]	AAACM9654P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the business of manufacturing grinding machines which are used extensively in industries such as automobiles, printing, pumps, steel mills and aerospace for giving final finish to components such as fuel injections, engine valves, bearings, power trains, cutting tools etc.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 940000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company moderate track. The company possesses a modest financial profile marked by modest networth base as well as realization, leading to moderate accrued payables along with deterioration in cash reserves supported by comfortable capital structure and gearing as on March 2014. Management has reported a drastic dip in its revenue as well as profit margins during FY 14, which is further susceptible to risk emanating from cyclical trends in the auto industry and adverse movements in raw material process. Further, the rating also takes into consideration profits of the company declined over last year due to increase in inputs costs, weakening of Indian rupee and intense market competition. However, trade relations are seems to be fair. Business is active. Payment terms are reported as slow but correct. In view of successful foreign technology collaborations, 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

Rating Agency Name	ICRA
Rating	Long Term Fund Based Limits = BB
Rating Explanation	Have inadequate credit quality and carry high credit risk
Date	February, 2015

Rating Agency Name	ICRA
Rating	Non Fund Based Limits = A4
Rating Explanation	Have minimal degree of safety and carry higher credit risk.
Date	February, 2015

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 31-03-2013.

INFORMATION PARTED BY

MANAGEMENT NON - COOPERATIVE (91-120-2712137)

LOCATIONS

Registered Office :	301, Vikas Deep, Laxmi Nagar, District Center, New Delhi – 110092, India
Tel. No.:	91-11-22026874/ 22414232
Fax No.:	91-11-22026761
E-Mail :	skdujari@micromaticgrinding.com
Website :	http://www.micromaticgrinding.com
Head Office/Factory 1:	MGT Ghaziabad C-27/ C-28, Meerut Road, Industrial Area, Ghaziabad - 201003, Uttar Pradesh, India
Tel. No.:	91-120-2712137/ 69/ 79/ 2723216
Fax No.:	91-121-2717823
Factory 3:	MGT Bangalore 5/A, Servey No.74, 103, 106, 107, KIADB Industrial Area, Dobaspet, Nelamangala Tuluk, Bangalore - 562111, Karnataka, India
Tel. No.:	91-80-27735383/ 85/ 86/ 87/ 27702449
Fax No.:	91-80-27735384
Factory 4:	Also Located At: Mumbai Pune Chennai
Corporate Office:	Plot No. 240/241  11th Main, 3rd Phase,  Peenya Industrial Area, Bangalore - 560 058
Tel. No.:	91 -80 - 40200555
Fax No.:	91- 80 - 41136066
E-Mail :	Mmtblr@Acemicromatic.Com
Branch Office:	Located At: Coimbatore Kolkata Jamshedpur Aurangabad Belgaum Hyderabad Rajkot Kolhapur Gurgaon Faridabad Bommasandra Ranipet Tambaram Sriperumbudur Indore Nasik Thane Chakan

DIRECTORS

AS ON 29.09.2014

Name :

Mr. Narendra Kumar Dhand

Designation :

Whole-time director

Address :

R-5-58, Raj Nagar, Ghaziabad – 201002, Uttar Pradesh, India

Date of Birth/Age :

09.09.1943

Qualification :

B. Tech

Date of Appointment :

01.07.2014

DIN No.:

00379502

PAN No.:

ABFPD6577M

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	U74899DL1982PLC042422	MICROMATIC GRINDING TECHNOLOGIES LIMITED	Whole-time director	1/7/2014	31/03/1982	-	Active	NO
2	U74899DL1987PTC029798	MICROMATIC MACHINE TOOLS PRIVATE LIMITED	Director	25/04/1988	25/04/1988	-	Active	NO
3	U74899DL1990PTC039589	APP-TECH MACHINES PRIVATE LIMITED	Director	21/03/1990	21/03/1990	-	Active	NO
4	U29290MH1973GAP016420	INDIAN MACHINE TOOL MANUFACTURERS ASSOCIATION	Director	20/08/2004	20/08/2004	-	Active	NO
5	U29200DL2008FTC182050	TOYODA MICROMATIC MACHINERY INDIA Private Limited	Director	13/08/2008	13/08/2008	-	Active	NO

Name :

Mrs. Neelam Dhand

Designation :

Whole Time Director

Address :

R-5-58, Raj Nagar, Ghaziabad – 201002, Uttar Pradesh, India

Date of Birth/Age :

17.08.1950

Qualification :

Graduate

Date of Appointment :

01.08.2013

DIN No.:

00358572

PAN No.:

ABFPD6578E

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	U74899DL1982PLC042422	MICROMATIC GRINDING TECHNOLOGIES LIMITED	Whole-time director	1/8/2013	15/05/1982	-	Active	NO
2	U74899DL1987PTC029798	MICROMATIC MACHINE TOOLS PRIVATE LIMITED	Director	17/11/1987	17/11/1987	12/4/2010	Active	NO
3	U74899DL1990PTC039589	APP-TECH MACHINES PRIVATE LIMITED	Director	21/03/1990	21/03/1990	-	Active	NO
4	U13203DL2007PTC161269	MICROMATIC MANUFACTURING SYSTEMS PRIVATE LIMITED	Director	25/06/2008	6/12/2007	-	Active	NO

Name :

Mr. Sidhartha Dhand

Designation :

Whole Time Director

Address :

R-5-58, Raj Nagar, Ghaziabad – 201002, Uttar Pradesh, India

Date of Birth/Age :

22.11.1972

Qualification :

Graduate

Date of Appointment :

01.04.2010

DIN No.:

00390761

PAN No.:

ABGPD0374B

Name :

Mr. Kapil Dhand

Designation :

Managing Director

Address :

R-5-58, Raj Nagar, Ghaziabad – 201002, Uttar Pradesh, India

Date of Birth/Age :

03.02.1978

Qualification :

B. Tech

Date of Appointment :

01.07.2014

DIN No.:

00390692

PAN No.:

ABFPD6579F

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	U74899DL1982PLC042422	MICROMATIC GRINDING TECHNOLOGIES LIMITED	Managing director	1/7/2014	5/10/2005	-	Active	NO
2	U13203DL2007PTC161269	MICROMATIC MANUFACTURING SYSTEMS PRIVATE LIMITED	Director	29/03/2007	29/03/2007	-	Active	NO

Name :

Mr. Jagdish Pal Malik

Designation :

Whole-time director

Address :

201 Sun Breeze Apartment, Vaishali Sector – 4, Ghaziabad – 201010, Uttar Pradesh, India

Date of Birth/Age :

03.02.1978

Date of Appointment :

01.01.2008

DIN No.:

01990286

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	U74899DL1982PLC042422	MICROMATIC GRINDING TECHNOLOGIES LIMITED	Whole-time director	1/1/2008	13/12/2007	-	Active	NO
2	U28910PB2001PLC024790	R.N.GUPTA AND COMPANY LIMITED	Director	30/09/2011	14/08/2011	18/03/2014	Active	NO

MAJOR SHAREHOLDERS

AS ON 29.09.2014

Names of Shareholders	No. of Shares
App-Tech Machines Private Limited, India	689200
Narendra Kumar Dhand Jointly With Neelam Shand	56200
Neelam Dhand Jointly With Narendra Kumar Dhand	56200
Sidhartha Dhand	56200
Kapil Dhand	56200
Ramesh Kumar Mahajan Jointly With Sudha Mahajan	5000
Shiv Kumar Dujari Jointly With Chandra Kanta Dujari	5000
Chandra Kanta Dujari Jointly With Shiv Kumar Dujari	5000
Total	929000

Equity Share Break up (Percentage of Total Equity)

AS ON 29.09.2014

Category	Percentage
Bodies corporate	74.19
Directors or relatives of Directors	24.20
Other	1.61
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of manufacturing grinding machines which are used extensively in industries such as automobiles, printing, pumps, steel mills and aerospace for giving final finish to components such as fuel injections, engine valves, bearings, power trains, cutting tools etc.

Products :

Item Code No.	Products Description
8460	Machine-tools for deburring, sharpening, grinding, noting, polishing or otherwise finishing metal or cermet’s by means of grinding stones, abrasives or polishing products, other than gear cutting, gear grinding or gear finishing machines or heading no.8

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	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 :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

Information declined by the management

Bankers :

• ICICI Bank Limited

Banker Name	Canara Bank
Branch Address	Maliwara Chowk Branch, Maliwara Chowk, Ghaziabad - 201001, Uttar Pradesh, India
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 Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

(Rs. In Million)

SECURED LOAN

As on

31.03.2014

As on

31.03.2013

LONG TERM BORROWING

Term Loan From Bank

From Canara Bank, Ghaziabad

11.450

42.650

From Vehicle Loans

Tata Capital Limited

0.317

0.669

From Canara Bank

0.593

0.560

From ICICI Bank

1.197

0.000

SHORT TERM BORROWING

Working Capital Loan from Bank

Cash credit Facilities

- From Canara Bank

70.770

54.367

Total

84.327

98.246

Note:

Long-term Borrowings

a) Terms and Conditions of Secured Loans

1) Security Clauses:

i) The Term Loan including current maturities from Canara Bank is secured by way of equitable mortgage on Company’s factory land and building at C-27 & C40/1, Industrial Area Meerut Road, Ghaziabad and 5A Dobaspet Industrial Area, Nelamangla Taluk, Bangalore and Hypothecation of all the movable properties including tools machineries, spares and accessories and such other assets both present and future.

ii) The Term Loan from Canara Bank is secured by way of Hypothecation of Plant and Machinery financed by them.

iii) The Loans from Canara Bank are further secured by guarantee of the Holding Company.

iv) Vehicle loans including current maturities is secured by hypothecation of vehicles against which the loans have been taken. Repayments are done by equated monthly installment over 36 to 60 months.

b) Maturity Profile and Rate of Interest and No of Installments of Secured Loans

Particulars		F. Y. 2015-16		F. Y. 2016-17		F. Y. 2017-18		F. Y. 2018-19
	Rate of Intt.	Install	Rs. In Million	Install	Rs. In Million	Install	Rs. In Million	Install	Rs. In Million
Term Loan	11.70 & 12.20%	5	11.450	-	-	-	-	-	-
Tata Capital	11.00%	12	0.317	-	-	-	-	-	-
Canara Bank	10.70%	12	0.254	2	0.044	-	-	-	-
Canara Bank	10.50%	12	0.295	-	-	-	-	-	-
ICICI Bank Limited	10.50%	12	0.325	12	0.360	12	0.400	6	0.112

Terms and Conditions of Unsecured Loans:

Unsecured loans from Related Parties and others carrying interest 13% to 14.50% P. A. and shall ne repayable after a period from 2 to 3 years.

Short-term borrowings

(A) Cash Credit facilities from Canara Bank is secured by way of Hypothecation of all stock of Inventories and Book Debts of the company. Cash Credit is repayable on demand and carries interest at floating rate 15% P.A. linked to the base rates of the bank.

Financial Institute:	Electronica Finance Limited, 128/A, Plot No.3, Kailashchandra Apartments, Paud Road, Kothrud, Pune - 411038,, Maharashtra, India
Auditors :
Name :	B K Kapur and Company Chartered Accountants
Address :	17, Navyug Market, Ghaziabad – 201001, Uttar Pradesh, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAFFB2355L
Memberships :	Not Available
Collaborators :	Not Available
Holding Company:	App Tech Machines Private Limited, India [CIN: U74899DL1990PTC039589]
Subsidiary Company :	Micromatic Manufacturing Systems Private Limited, India [CIN: U13203DL2007PTC161269]
Enterprises Significantly Influenced by Directors and /or their relatives:	Micromatic Machine Tools Private Limited, India [CIN: U74899DL1987PTC029798]
Joint Venture Company:	Toyoda Micromatic Machinery India Limited, India [CIN: U29200DL2008FLC182050]

CAPITAL STRUCTURE

AS ON 29.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
2750000	Equity Shares	Rs.10/- each	Rs.27.500 Million
25000	Preference Shares	Rs.100/- each	Rs. 2.500 Million
	Total		Rs. 30.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
929000	Equity Shares	Rs.10/- each	Rs. 9.290 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	9.290	9.290	9.290
(b) Reserves & Surplus	321.624	311.102	268.793
(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)	330.914	320.392	278.083
(3) Non-Current Liabilities
(a) long-term borrowings	64.917	92.939	109.989
(b) Deferred tax liabilities (Net)	5.595	7.716	8.721
(c) Other long term liabilities	4.280	4.366	0.000
(d) long-term provisions	0.000	0.000	3.747
Total Non-current Liabilities (3)	74.792	105.021	122.457
(4) Current Liabilities
(a) Short term borrowings	70.770	54.367	40.564
(b) Trade payables	122.867	145.651	112.517
(c) Other current liabilities	124.532	161.907	200.865
(d) Short-term provisions	13.066	21.317	24.308
Total Current Liabilities (4)	331.235	383.242	378.254
TOTAL	736.941	808.655	778.794
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	243.527	260.633	276.235
(ii) Intangible Assets	18.236	19.572	14.141
(iii) Capital work-in-progress	0.000	1.072	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	18.897	18.097	18.097
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	5.164	7.220	8.016
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	285.824	306.594	316.489
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	254.017	259.857	257.615
(c) Trade receivables	118.734	163.520	95.511
(d) Cash and cash equivalents	45.316	52.702	80.195
(e) Short-term loans and advances	33.050	25.982	28.984
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	451.117	502.061	462.305
TOTAL	736.941	808.655	778.794

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	729.340	998.066	1058.556
	Other Income	13.375	11.121	11.167
	TOTAL (A)	742.715	1009.187	1069.723
Less	EXPENSES
	Cost of Materials Consumed	349.690	486.302	542.700
	Prior Period Items	0.000	0.000	0.045
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(3.835)	21.192	(5.065)
	Employees benefits expense	140.227	144.624	136.156
	Other Direct Manufacturing expenses	83.158	99.678	237.985
	Other Administrative and Selling Expenses	110.217	134.239	0.000
	TOTAL (B)	679.457	886.035	911.821
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	63.258	123.152	157.902
Less	FINANCIAL EXPENSES (D)	21.325	22.662	25.076
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	41.933	100.490	132.826
Less/ Add	DEPRECIATION/ AMORTISATION (F)	33.579	35.107	37.314
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	8.354	65.383	95.512
Less	TAX (H)	(2.168)	15.466	30.105
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	10.522	49.917	65.407
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD (K)	189.053	147.746	82.339
Less	APPROPRIATIONS
	Transfer to General Reserve	1.000	1.000	NA
	Dividend	0.000	7.608
	Total (M)	1.000	8.608	NA
	Balance Carried to the B/S	198.575	189.055	65.407
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	40.701	52.776	NA
	TOTAL EARNINGS	40.701	52.776	NA
	IMPORTS
	Raw Materials	38.257	79.897	NA
	TOTAL IMPORTS	38.257	79.897	NA
	Earnings / (Loss) Per Share (Rs.)	11.33	53.73	70.41

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	32.339	32.074	31.740
Cash generated from operations	44.981	43.983	105.098
Net cash from Operating Activities	42.649	27.272	89.665

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	1.44	5.00	6.18
Operating Profit Margin (PBIDT/Sales)	(%)	8.67	12.34	14.92
Return on Total Assets (PBT/Total Assets}	(%)	1.16	8.28	12.56
Return on Investment (ROI) (PBT/Networth)		0.03	0.20	0.34
Debt Equity Ratio (Total Debt /Networth)		0.51	0.56	0.66
Current Ratio (Current Asset/Current Liability)		1.36	1.31	1.22

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	9.290	9.290	9.290
Reserves & Surplus	268.793	311.102	321.624
Net worth	278.083	320.392	330.914
long-term borrowings	109.989	92.939	64.917
Short term borrowings	40.564	54.367	70.770
Current maturities of long-term debts	31.740	32.074	32.339
Total borrowings	182.293	179.380	168.026
Debt/Equity ratio	0.656	0.560	0.508

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1058.556	998.066	729.340
		(5.714)	(26.925)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1058.556	998.066	729.340
Profit	65.407	49.917	10.522
	6.18%	5.00%	1.44%

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	Yes
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	Yes
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

OPERATIONS:

Year 2013-14 was a difficult year for the company with slowdown in automobile industry. Domestic investments declined due to high interest rates and slowdown in capex cycle. This resulted in poor orders and sales was adversely impacted. The total revenue of the company decreased by 26% to Rs. 742.700 Million during the year against Rs. 1009.100 Million in the previous year. Profit before tax was reduced significantly to Rs. 8.400 Million against Rs. 65.220 million in last year.

Export turnover of the company also decreased to Rs. 40.700 Million from Rs. 52.700 Million during the year on FOB basis.

Profit during the year declined over last year due to increase in input costs, weakening of India rupee, intense market competition resulting in higher discounts, and low absorption of fixed costs on account of slower volume growth. Fixed costs like Employee salaries etc. also increased in line with market trends and as a percentage of total revenue.

The industry witnessed sluggish demand given the slowdown in economic growth. The subdued demand and emergence of many players in unorganized sector resulted in price squeeze. The year witnessed continuing pressure on input and logistic costs. The company also participated in an exhibition in China to showcase its products to enter the new export markets.

FUTURE OUTLOOK:

World-wide 2014 appears to be much more encouraging than 2013, with the forces driving the global economic recovery firmly entrenched. The IMF projects GDP growth in developed and emerging markets to grow.

The outlook for the Indian economy has turned distinctive positive due to timely measures by the new Government by addressing fiscal imbalances and fast forwarding investment activity should play out positively in the coming year.

RBI’s deft moves to stabilize the Rupee, enable it to recover to INR 60/$. The current account deficit for the year has been contained. The GDP growth is predicted to 5.5% in the Goods and Service Tax is rolled out. Overall, the stage seems set for India to Shift to a higher growth trajectory.

The year ahead, will be one when they consolidate and reinforce what they have achieved in recent year and see the fruition of several initiatives that are currently underway. The speed of change in today’s world makes it imperative to focus on forward looking policies, lean processes, shaping talent for tomorrow and invest in futuristic systems and applications.

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Loans from Related Parties	44.710	40.310
Loans from Others	6.650	8.750
Total	51.360	49.060

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10534210	28/11/2014	5,610,500.00	ELECTRONICA FINANCE LIMITED	128/A, PLOT NO.3, KAILASHCHANDRA APPARTMENTS, PAUD ROAD, KOTHRUD, PUNE, MAHARASHTRA - 411038, INDIA	C35552280
2	90064458	16/07/2003 *	5,000,000.00	CANARA BANK	MALIWARA CHOWK, CHAZIABAD, UTTAR PRADESH, INDIA	-
3	90064422	16/07/2003 *	290,000.00	CANARA BANK	MALIWARA CHOWK, GHAZIBAD, UTTAR PRADESH, INDIA	-
4	90064354	16/09/2002 *	10,000,000.00	CANARA BANK	MALIWARA CHOWK, CHAZIABAD, UTTAR PRADESH, INDIA	-
5	90064258	16/07/2003 *	200,000.00	CANARA BANK	MALIWARA CHOWK, CHAZIABAD, UTTAR PRADESH, INDIA	-
6	90064249	30/07/2001	2,000,000.00	CANARA BANK	MALIWARA CHOWK, CHAZIABAD, UTTAR PRADESH, INDIA	-
7	90064119	17/02/2000	125,000.00	CANARA BANK	MALIWARA CHOWK, CHAZIABAD, UTTAR PRADESH, INDIA	-
8	90064102	16/12/1999	42,000,000.00	CANARA BANK	MALIWARA CHOWK, CHAZIABAD, UTTAR PRADESH, INDIA	-
9	90064068	25/05/1999	39,000,000.00	CANARA BANK	MALIWARA CHOWK, GHAZIBAD, UTTAR PRADESH, INDIA	-
10	90063962	28/10/1997	25,000,000.00	CANARA BANK	MALIWARA CHOWK, GHAZIBAD, UTTAR PRADESH, INDIA	-

 * Date of charge modification

FIXED ASSETS

Tangible assets

• Land
• Buildings
• Plant and equipment
• Furniture and fixtures
• Vehicles
• Motor vehicles
• Office equipment
• Computer equipment’s

Intangible assets

• Computer software
• 7Know-how

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.66.16
UK Pound	1	Rs.101.22
Euro	1	Rs.74.61

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	RAS
Report Prepared by :	GTA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		34

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.