MIRA INFORM REPORT

Report No. :	339176
Report Date :	09.09.2015

IDENTIFICATION DETAILS

Name :	ACE MANUFACTURING SYSTEMS LIMITED
Registered Office :	Plot No. 467-469, 12th Cross, 4th Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka
Tel. No.:	91-80-41828100, 28360508 to 12, 2836 2791, 4182 8102
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	07.03.1994
Com. Reg. No.:	08-015321
Capital Investment / Paid-up Capital :	Rs.6.880 Million
CIN No.: [Company Identification No.]	U85110KA1994PLC015321
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	BLRA01051B
PAN No.: [Permanent Account No.]	AACCA3584G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Vertical Machining Centers.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

A (63)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum credit limit:	4600000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company incorporated in the year 1994 having a good track record. Available financial indicate company sound financial risk profile marked by healthy networth position with low borrowings and favorable gap between trade payable and trade receivable. Further, the rating also takes into consideration good profitability margin of the company. Trade relations are reported as fair. Business is active. Payments terms are reported to be regular and as per commitment. In view of long track record and sound financial base, the company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

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	Fund Based Limits = A+
Rating Explanation	Adequate degree of safety and carry low credit risk.
Date	June, 2014

Rating Agency Name	ICRA
Rating	Non-fund based limits = A1+
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	June, 2014

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 DENIED

Management non-co-operative (91-80-41828100)

LOCATIONS

Registered Office :	Plot No. 467-469, 12th Cross, 4th Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka, India
Tel. No.:	91-80-41828100, 28360508 to 12, 2836 2791, 4182 8102
Fax No.:	91-80-28362791/41828102
E-Mail :	helpdesk@amslindia.com
Website :	http://www.amsl.in http://www.acemicromatic.net
Sales and Service Centers :	Located at: Aurangabad Bangalore Belgaum Hyderabad Kolkata Kolhapur Chennai Ranipet Mumbai Coimbatore Pune Gurgaon Delhi Faridabad Jamshedpur Rajkot Ludhiana Rudrapur Bommasandra Trichy Aurangabad Chakan Indore Kolhapur Mumbai Pune Rajkot Jamshedpur Kolkata
Overseas:	Germany China - Shanghai

DIRECTORS

As on 26.04.2014

Name :

Puttige Ramdas

Designation :

Managing director

Address :

No.452, 1st Stage 1 main Bemllayout, Basveshwarnagar, Bangalore – 560079, Karnataka, India

Date of Birth/Age :

18.03.1946

Qualification :

B.E., M. Tech

Date of Appointment :

01.04.2015

PAN No.:

AANPR3545A

DIN No.:

01510873

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	U85110KA1994PLC015321	ACE MANUFACTURING SYSTEMS LIMITED	Managing director	01/04/2015	30/03/1996	-	Active	NO
2	U28930KA2007PTC043919	AMS BHARGAVA MACHINING PRIVATE LIMITED	Director	20/09/2007	20/09/2007	-	Active	NO
3	U29290MH1973GAP016420	INDIAN MACHINE TOOL MANUFACTURERS ASSOCIATION	Nominee director	06/09/2013	06/09/2013	-	Active	NO

Name :

Mr. Shrinivas Govindrao Shirgurkar

Designation :

Director

Address :

586, 1^st Main, 2^nd Stage, 3^rd Block, RMV Extention, Bangalore – 560094, Karnataka, India

Date of Birth/Age :

08.04.1948

Qualification :

B.E.

Date of Appointment :

07.03.1994

PAN No.:

AKMPS5692E

DIN No.:

00173944

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	U29199KA1986PLC007816	ACE DESIGNERS LIMITED	Managing director	01/07/2010	25/09/1986	-	Active	NO
2	U02922KA1987PLC008415	AUTO CNC MACHINING LIMITED	Director	11/06/1987	11/06/1987	-	Active	NO
3	U85110KA1994PLC015321	ACE MANUFACTURING SYSTEMS LIMITED	Director	07/03/1994	07/03/1994	-	Active	NO
4	U85110KA1995PLC018544	ACE MULTI AXES SYSTEMS LIMITED	Director	16/08/1995	16/08/1995	-	Active	NO
5	U74899DL1987PTC029798	MICROMATIC MACHINE TOOLS PRIVATE LIMITED	Director	30/08/1996	30/08/1996	-	Active	NO
6	U34300KA2005PTC037594	PRAGATI TRANSMISSION PRIVATE LIMITED.	Director	03/11/2005	03/11/2005	-	Active	NO
7	L85110KA1980PLC003913	WENDT INDIA LIMITED	Director	17/04/2006	17/04/2006	-	Active	NO
8	U29290MH1973GAP016420	INDIAN MACHINE TOOL MANUFACTURERS ASSOCIATION	Director	29/08/2012	29/08/2012	-	Active	NO
9	U74900KA2012NPL067059	IMTMA Machine Tool Industry Park	Director	06/12/2012	06/12/2012	-	Active	NO
10	U72200KA2013PTC070078	AceMicromatic MANUFACTURING INTELLIGENCE TECHNOLOGIES PRIVATE LIMITED	Director	26/07/2013	26/07/2013	-	Active	NO

Name :

Benedict Machado

Designation :

Director

Address :

583, 1^st Main, 2^nd Stage, 3^rd Block, Rmvextention, Bangalore – 560094, Karnataka, India

Date of Birth/Age :

04.12.1948

Qualification :

B.E.

Date of Appointment :

07.03.1994

PAN No.:

AEJPM7124C

DIN No.:

00174074

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	U29199KA1986PLC007816	ACE DESIGNERS LIMITED	Managing director	01/07/2010	25/09/1986	-	Active	NO
2	U02922KA1987PLC008415	AUTO CNC MACHINING LIMITED	Director	11/06/1987	11/06/1987	-	Active	NO
3	U85110KA1994PLC015321	ACE MANUFACTURING SYSTEMS LIMITED	Director	07/03/1994	07/03/1994	-	Active	NO
4	U85110KA1995PLC018544	ACE MULTI AXES SYSTEMS LIMITED	Director	16/08/1995	16/08/1995	-	Active	NO
5	U74899DL1987PTC029798	MICROMATIC MACHINE TOOLS PRIVATE LTD	Director	30/08/1996	30/08/1996	-	Active	NO
6	U34300KA2005PTC037594	PRAGATI TRANSMISSION PRIVATE LIMITED.	Director	03/11/2005	03/11/2005	-	Active	NO

Name :

Mr. Ashok Vishwanath Sathe

Designation :

Director

Address :

No.252, 5^th D Cross,2^nd Phase, 2^nd Stage, Mahalakshmipuram, Bangalore – 560086, Karnataka, India

Date of Birth/Age :

17.03.1940

Qualification :

B.E., M. Tech

Date of Appointment :

07.03.1994

DIN No.:

00174204

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	U29199KA1986PLC007816	ACE DESIGNERS LIMITED	Whole-time director	01/07/2010	25/09/1986	-	Active	NO
2	U02922KA1987PLC008415	AUTO CNC MACHINING LIMITED	Director	11/06/1987	11/06/1987	-	Active	NO
3	U74899DL1987PTC029798	MICROMATIC MACHINE TOOLS PRIVATE LTD	Director	01/02/1988	01/02/1988	-	Active	NO
4	U85110KA1994PLC015321	ACE MANUFACTURING SYSTEMS LIMITED	Director	07/03/1994	07/03/1994	-	Active	NO
5	U85110KA1995PLC018544	ACE MULTI AXES SYSTEMS LIMITED	Director	16/08/1995	16/08/1995	-	Active	NO
6	U29199KA2001PTC029247	PRAGATI AUTOMATION PRIVATE LIMITED	Director	05/07/2001	05/07/2001	-	Active	NO
7	U22100PN2007PTC130644	UDYAM PRAKASHAN PRIVATE LIMITED	Director	03/09/2007	03/09/2007	-	Active	NO
8	U29253KA2011PTC060244	PRAGATI CONTROL SYSTEMS PRIVATE LIMITED	Director	05/09/2011	05/09/2011	-	Active	NO

Name :

Venkateshaiah Chandra

Designation :

Director

Address :

No.437, 8^th Floor, Mahalakshmipuram, Bangalore – 560086, Karnataka, India

Date of Birth/Age :

26.01.1949

Qualification :

B.E

Date of Appointment :

13.02.1995

DIN No.:

01510893

Name :

Thirumalaimuppur Kuppuswamy Ramesh

Designation :

Additional director

Address :

1702, 7^th Floor, Gowart Apartments, RMV II Stage, Bangalore – 560054, Karnataka, India

Date of Birth/Age :

26.01.1958

Qualification :

B.E., PGDBA

Date of Appointment :

08.05.2008

DIN No.:

01790388

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	U85110KA1994PLC015321	ACE MANUFACTURING SYSTEMS LIMITED	Director	08/05/2008	04/08/2007	-	Active	NO
2	U29290MH1973GAP016420	INDIAN MACHINE TOOL MANUFACTURERS ASSOCIATION	Director	29/08/2012	29/08/2012	-	Active	NO

Name :

Benine Gopalrao Dwarakanath

Designation :

Director

Address :

Aadhara Nilaya, No.92, 57^th Cross, Vijaya Bank Layout, Behind IIMB, Bannerghatta Road, Bangalore – 560076, Karnataka, India

Date of Birth/Age :

23.08.1948

Date of Appointment :

01.04.2013

DIN No.:

00449073

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	U29199TZ1991PLC003561	TITAN MECHATRONICS LIMITED	Director	01/11/1999	01/11/1999	-	Active	NO
2	U33301GA1991PLC001148	TITAN TIMEPRODUCTS LIMITED	Director	29/12/2001	29/12/2001	18/04/2011	Active	NO
3	U85110KA1994PLC015321	ACE MANUFACTURING SYSTEMS LIMITED	Director	01/04/2013	01/04/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Rajesh Ramegowda
Designation :	Secretary
Address :	#558/40 9th Main MC Layout, Vijayanagar, Bangalore - 560040, Karnataka, India
Date of Appointment :	30/07/2014
PAN No.:	AFFPR6097C

MAJOR SHAREHOLDERS

As on 26.04.2014

Names of Shareholders	No. of Shares
ACE Designer Limited, India	19400
Micromatic Machine Tools Limited, India	18000
Puttige Ramdas	11200
Benedict Machado	5400
Shrinivas Govindrao Shirgurkar	5400
Ramdas Jayashree	4000
Philomena Machado	1800
Bharathi Shitrgurkar	1800
V. Chandra	1800
Total	68800

As on 03.09.2014

Names of Allottees	No. of Shares allotted
P. Ramdas	5600
Jayashree Ramdas	2000
Total	7600

As on 26.04.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	54.36
Directors or relatives of Directors	45.64
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Vertical Machining Centers.

Products :

Product Description	Item Code No. (ITC Code)
Vertical Machining Centers	84571010

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Not Divulged

Purchasing :

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 :

• Autotech Industries
• Bajaj Auto Limited
• Kiran Udyog Limited
• Honda Group
• Mahindra Group
• Bosch Group

No. of Employees :

Information declined by the management.

Bankers :

· Canara Bank, Industrial Finance Branch, Venkatadri Complex, No.83, Richmod Road, Bangalore - 560025, Karnataka, India

· The Karnataka Bank Limited, Kasturba Road Branch, Kasturba Road, Bangalore - 560001, Karnataka, India

Facilities :

(Rs. In Million)

Secured Loan	As on 31.03.2014	As on 31.03.2013
SHORT TERM BORROWINGS:
Loans repayable on demand form banks	49.698	62.660
Total	49.698	62.660

Auditors :
Name :	P. A. Ghatage and Company Chartered Accountants
Address :	2/10, BDA Flats, Cambridge Layout Extension, Ulsoor, Bangalore – 560008, Karnataka, India
PAN No.:	AANPG1439N
Memberships :	Not Available
Collaborators :	Not Available
Associates :	· Ace Designers Limited · Ace Multi Axes Systems Limited · Auto CNC Machining Limited · Pragati Automation Private Limited · Micromatic Machine Tools Private Limited · AMS Bhargava Machining Private Limited [U28930KA2007PTC043919]

CAPITAL STRUCTURE

After 26.04.2014

Authorised Capital:

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Million
50000	Preference Shares	Rs.100/- each	Rs.5.000 Million
	Total		Rs.15.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
76400	Equity Shares	Rs.100/- each	Rs.7.640 Million

As on 26.04.2014

Authorised Capital:

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Million
50000	Preference Shares	Rs.100/- each	Rs.5.000 Million
	Total		Rs.15.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
68800	Equity Shares	Rs.100/- each	Rs.6.880 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	6.880	6.880	6.880
(b) Reserves & Surplus	1617.484	1488.607	1278.847
(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)	1624.364	1495.487	1285.727
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	41.357	39.795	36.950
(c) Other long term liabilities	5.430	5.430	4.107
(d) long-term provisions	19.019	17.515	14.009
Total Non-current Liabilities (3)	65.806	62.740	55.066
(4) Current Liabilities
(a) Short term borrowings	50.598	63.560	11.041
(b) Trade payables	256.472	223.263	493.600
(c) Other current liabilities	74.911	91.530	192.387
(d) Short-term provisions	175.059	228.690	249.524
Total Current Liabilities (4)	557.040	607.043	946.552
TOTAL	2247.210	2165.270	2287.345
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	374.415	380.954	381.682
(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	2.608	2.608	2.608
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	35.165	33.987	32.545
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	412.188	417.549	416.835
(2) Current assets
(a) Current investments	439.027	564.466	524.509
(b) Inventories	655.974	591.815	656.600
(c) Trade receivables	448.647	281.306	355.223
(d) Cash and cash equivalents	27.387	25.498	19.561
(e) Short-term loans and advances	263.987	284.636	314.617
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	1835.022	1747.721	1870.510
TOTAL	2247.210	2165.270	2287.345

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Revenue from operations	2190.129	2319.700	2936.388
	Other Income	38.773	28.907	26.444
	TOTAL	2228.902	2348.607	2962.832
Less	EXPENSES
	Cost of materials consumed	1514.196	1611.558	2046.473
	Changes in inventories of finished goods, work-in-progress and stock-in-trade	1.323	(100.402)	(10.500)
	Employee benefit expense	229.883	198.076	181.161
	Other expenses	240.493	240.531	258.222
	TOTAL	1985.895	1949.763	2475.356
Less	PROFIT/LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	243.007	398.844	487.476
Less	FINANCIAL EXPENSES	0.742	0.713	0.500
	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION	242.265	398.131	486.976
Less/ Add	DEPRECIATION/ AMORTISATION	22.629	21.366	19.110
	PROFIT/LOSS BEFORE TAX	219.636	376.765	467.866
Less	TAX	17.000	114.845	146.281
	PROFIT/LOSS AFTER TAX	161.074	261.920	321.585
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	NA	1118.797	893.680
Less	APPROPRIATIONS
	Provision for Dividend on Equity Shares	NA	NA	55.040
	Corporate Tax on Dividend	NA	NA	8.928
	Transfer to General Reserve	NA	NA	32.500
	Utilized for buy back of shares	NA	NA	0.000
	BALANCE CARRIED TO THE B/S	NA	NA	1118.797
	EARNINGS IN FOREIGN CURRENCY
	Export Earnings	61.902	27.879	43.497
	TOTAL EARNINGS	61.902	27.879	43.497
	IMPORTS
	Raw Materials	N.A	NA	287.395
	TOTAL IMPORTS	N.A	NA	287.395
	Earnings Per Share (Rs.)	2341.19	3806.98	4674.00

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	N.A	N.A	N.A
Cash generated from operations	N.A	N.A	N.A
Net cash flow from operating activity	(65.777)	193.455	433.136

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	7.35	11.29	10.95
Operating Profit Margin (PBDIT / Sales)	(%)	11.10	17.19	16.60
Return on Total Assets (PBT/Total Assets}	(%)	9.79	17.42	20.48
Return on Investment (ROI) (PBT/Networth)		0.14	0.25	0.36
Debt Equity Ratio (Total Debt /Networth)		0.03	0.04	0.01
Current Ratio (Current Asset/Current Liability)		3.29	2.88	1.98

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	6.880	6.880	6.880
Reserves & Surplus	1278.847	1488.607	1617.484
Net worth	1285.727	1495.487	1624.364
long-term borrowings	0.000	0.000	0.000
Short term borrowings	11.041	63.560	50.598
Total borrowings	11.041	63.560	50.598
Debt/Equity ratio	0.009	0.043	0.031

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	2936.388	2319.700	2190.129
		(21.002)	(5.586)

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	2936.388	2319.700	2190.129
Profit	321.585	261.920	161.074
	10.95%	11.29%	7.35%

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	Yes
8	Designation of contact person	No
9	Promoter’s background	No
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	No
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

RESULTS OF OPERATIONS

For major part of the year under review, the industry faced recessionary trend. The input costs shot up mainly due to volatile foreign exchange rates and also due to sluggish market, the Company had no other option but to offer higher discounts and lesser prices. Consequently, the profitability of the Company during the year under review was strained. Despite lower market demand your Company could achieve turnover and production of Rs. 2175.700 Million and Rs. 2174.400 Million respectively as compared to the previous year’s turnover/production of Rs. 2306.500 Million Rs. 2406.900 Million (Turnover less by about 5.67 % and Production less by about 9.66 %). The Profit Before Tax for the year stood at Rs. 219.600 Million as against the previous year’s figure of Rs. 376.700 Million. In spite of the slowdown faced by the manufacturing industry during the year under review, the Company could achieve a respectable production/turnover for the year. Looking at the order inflow for the past couple of months, the Company hopes that the situation would be better in the current financial year 2014-15 and consequently the Company may do better in the financial year 2014-15 and onwards. The Company has made ambitious plans to produce and dispatch about 1100 machines in the financial year 2014-15. During the year under review, Company has sold 687 machines consisting of 32 Horizontal Machining Centres and 655 Vertical Machining Centres.

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
SHORT TERM BORROWINGS:
Other loans and advances	0.900	0.900
Total	0.900	0.900

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80038464	14/11/2013 *	45,000,000.00	THE KARNATAKA BANK LIMITED	KASTURBA ROAD BRANCH, KASTURBA ROAD, BANGALORE, Karnataka - 560001, INDIA	B91542522
2	80046793	31/01/2013 *	272,500,000.00	CANARA BANK	INDUSTRIAL FINANCE BRANCH, VENKATADRI COMPLEX, NO.83, RICHMOD ROAD, BANGALORE, Karnataka - 560025, INDIA	B68301035

* Date of charge modification

FIXED ASSETS

· Land

· Buildings

· Factory building

· Plant and equipment

· Factory Equipments

· Furniture and fixtures

· Vehicles

· Motor vehicles

· Office equipment

· Computer Equipments

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.66.60
UK Pound	1	Rs.55.60
Euro	1	Rs.102.30

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	DIV
Report Prepared by :	RKI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILITY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		63

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.