MIRA INFORM REPORT

Report Date :

03.07.2008

IDENTIFICATION DETAILS

Name :	SANDEEP AXLES PRIVATE LIMITED
Registered Office :	K-275, Village Binadapur, Uttam Nagar, New Delhi – 110059, India
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	20.09.1989
Com. Reg. No.:	55-037766
CIN No.: [Company Identification No.]	U74899DL1989PTC037766
TAN No.: [Tax Deduction & Collection Account No.]	DELS21982C
PAN No.: [Permanent Account No.]	AAACS0971R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Axle Shafts and Auto Parts

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 130000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Sudhir
Designation :	Senior Accountant
Date :	24.06.2008

LOCATIONS

Registered Office :	K-275, Village Binadapur, Uttam Nagar, New Delhi – 110059, India
Tel. No.:	91-124-4150423-30
Mobile No.:	91-9811403230
Fax No.:	91-124-4510420/21/22
E-Mail :	sspoddar@vsnl.com
Website :	http://www.sdmaxles.com
Corporate Office :	Plot #114, Sector – 3, IMT Manesar, Gurgaon – 122050, Haryana, India.
Tel. No.:	91-124-4150431 / 38/ 39
Fax No.:	91-124-4510420
Mobile No.:	91-9811403230
Area :	1000 sq ft ( Owned)
Factory :	Located at :- Faridabad
Tel. No.:	91-129-4190638
Fax No.:	91-129-4510420
Area :	800 sq ft ( Rented)

DIRECTORS

Name :	Mr. Mahajan Pat Satya
Designation :	Managing Director
Address :	WZ-406-N, Janak Park, Hari Nagar, Clolk Tower, New Delhi – 110064, India.
Date of Birth/Age :	05.02.1943
Date of Appointment :	20.09.1989
Name :	Mr. Sandeep Mahajan
Designation :	Whole Time Director
Address :	WZ-406N, Janak Park, Hari Nagar, New Delhi-110058, India
Date of Birth/Age :	16.02.1971
Date of Appointment :	20.09.1981
Name :	Mr. Vikrant Mahajan
Designation :	Whole Time Director
Address :	WZ-406, Janak Park, Hari Nagar, New Delhi-110058, India
Date of Birth/Age :	27.10.1976
Date of Appointment :	01.01.1999

KEY EXECUTIVES

Name :	Mr. Sudhir
Designation :	Senior Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2005

Names of Shareholders	No. of Shares
Anil Mahajan	1750
Sandeep Mahajan	34733
Vimal Mahajan	12250
Bala Mahajan	2650
Indu Mahajan	2750
Rajesh Mahajan	3000
Kamal Mahajan	1000
Satya Pal Mahajan (HUF)	1400
Kamal Mahajan (HUF)	500
Vimal Mahajan (HUF)	1300
Anil Mahajan (HUF)	1300
Vikrant Mahajan	31433
Mamta Mahajan	1750
Vikram Mahajan	4184
Total	100000

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2007

Category	Percentage
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Axle Shafts and Auto Parts
Products :	Rear Axle Shaft Yokes Brake S-Cam Trailor Pin/ Nut/ Bold/ Studd Flanges and Couplings Coil spring for light and heavy vehicles CVC turned components, Forged Components/ Shaft and Pipes Propeller Shaft components fly wheel rings bush and washer (brass) and cam shafts.
Exports :
Products :	Finished goods of Auto Parts
Countries :	North and South America Europe Australia Africa Germany Italy France
Imports :
Products :	Raw Material
Countries :	USA
Terms :
Selling :	Cash
Purchasing :	Credit ( 30 days)

GENERAL INFORMATION

Customers :	Wholesalers and OEM’s
No. of Employees :	165 (Office 15, Factory 150)
Bankers :	HDFC Bank Limited Bank of India, New Delhi
Facilities :	Loan Rs. 40.000 Millions

Banking Relations :

Satisfactory

Auditors :

Name :

M/s. S S Poddar and Company

Chartered Accountant

Address :

C-5, Community Centre, Naraina Vihar, New Delhi-110028, India

Tel. No.:

91-11-25771907

Fax No.:

91-11-25776993

E-Mail :

sspoddar@vsnl.com

Memberships :

• EEPC
• FIEO
• Defence and Railway
• ARSTU
• ISO QS 9000

Associates/Subsidiaries :

Sister Concern :	S. P. M. Auto Private Limited
Address:	B-169, Behror, Industrial Area, District- Alwar, Rajasthan, India
Tel No.:	91-1494-21195
Fax No.:	91-1494-21249
Sister Concern :	Mahajan Machines
Address:	K-275, Village Binda Pur, Uttam Nagar, New Delhi-110059, India
Tel No.:	91-11-5503474 / 5529934
Fax No.:	91-11-5508533

CAPITAL STRUCTURE

As on 29.09.2007

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs. 100/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs. 100/- each	Rs. 10.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		10.000	10.000	5.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		16.943	16.994	17.027
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		26.943	26.994	21.027
LOAN FUNDS
1] Secured Loans		69.869	68.497	39.571
2] Unsecured Loans		2.164	0.691	0.668
TOTAL BORROWING		72.033	69.188	40.239
DEFERRED TAX LIABILITIES		0.350	1.052	1.078
TOTAL		99.326	97.234	62.344
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		30.023	30.133	30.932
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7.164	37.538	10.786
	Sundry Debtors	21.940	34.291	24.760
	Cash & Bank Balances	7.487	10.971	10.561
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	41.327	18.984	6.855
Total Current Assets		77.918	101.640	52.962
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	7.879	33.959	18.948
	Provisions	0.735	0.580	2.602
Total Current Liabilities		8.614	34.539	21.550
Net Current Assets		69.304	67.101	31.412
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		99.327	97.234	62.344

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		6.420	12.017	133.373
Sales Export		116.900	146.023	0.013
Other Income		9.492	6.327	0.000
Total Income		132.812	164.367	146.404
Profit/(Loss) Before Tax		0.266	0.520	4.675
Provision for Taxation		0.316	0.553	1.758
Profit/(Loss) After Tax		[0.050]	[0.033]	2.917
Earnings in Foreign Currency :
	Export Earnings	116.900	146.023	132.382
Total Imports		0.000	0.000	2.476
Expenditures :
	Financial Charges	7.442	6.325	4.806
	Depreciation & Amortization	0.000	4.501	3.239
	Other Expenditure	103.906	170.598	125.614
	Change in Stock	21.198	[17.577]	0.000
Total Expenditure		132.546	181.424	133.659

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	[0.04]	(0.02)	1.99
Net Profit Margin (PBT/Sales)	(%)	[4.14]	0.32	3.19
Return on Total Assets (PBT/Total Assets}	(%)	0.25	0.04	5.57
Return on Investment (ROI) (PBT/Networth)		0.01	0.02	0.22
Debt Equity Ratio (Total Liability/Networth)		2.99	3.84	3.41
Current Ratio (Current Asset/Current Liability)		9.05	2.94	2.46

LOCAL AGENCY FURTHER INFORMATION

Name of the company	SANDEEP AXLES PRIVATE LIMITED
Presented By	Director
1) Date and description of instrument creating the change	Agreement of Hypothecation of tangible moveable machinery and plant dated 07.04.2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 49.800 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of all tangible moveable machinery and plant whether installed or not and whether lying loose or in areas at site or in transit or which may at any time during the continuance of this security be installed or lying loose or in cases or being in or upon or about borrowers godown / premises at Manesar, District – Gurgaon or wherever else the same may be.
4) Gist of the terms and conditions and extent and operation of the charge.	As per annexure “A” attached
5) Name and Address and description of the person entitled to the charge.	Bank of India, CGO Complex Branch, Lodhi Road, New Delhi
6) Date and brief description of instrument modifying the charge	Not Applicable
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Not Applicable

This form is for	Modification of charge
Charge identification number of the charge to be modified	80004020
Corporate identity number of the company	U74899DL1989PTC037766
Name of the company	SANDEEP AXLES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	K-275, Village Binadapur, Uttam Nagar, New Delhi – 110059,
Type of charge	Book Debts Movable property (not being pledge)
Particular of charge holder	Bank of India, CGO Complex Branch, Lodhi Road, New Delhi- 110003
Nature of description of the instrument creating or modifying the charge	Supplemental Deed of Hypothecation
Date of instrument Creating the charge	01.02.2007
Amount secured by the charge	Rs. 70.200 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per Annexure “A” attached Terms of Repayment As per Annexure “A” attached Margin As per Annexure “A” attached Extent and operation of the charge 100% Others (Original charge created on 07.04.2005 and registered on 06.05.2005 for Rs. 49.800 Millions and modified on 21.04.2006 for Rs. 40.200 Millions
Short particulars of the property charged	As per Annexure “B” attached
Date of latest modification prior to the present modification	21.04.2006
Particulars of the present modification	The amount of charge over immovable property of the company as mentioned in column no. 14 above stands revised/ re-alliened to secure the following credit facilities aggregating to Rs. 70.2000 Millions granted by bank to the company on such terms and conditions as detailed in annexure “A” attached herewith. Other terms and conditions remained the same

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.43.34
UK Pound	1	Rs.86.53
Euro	1	Rs.68.54

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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