MIRA INFORM REPORT

Report Date :

09.06.2008

IDENTIFICATION DETAILS

Name :	ARIHANT CNC PRIVATE LIMITED

Registered Office :	Flat No. 31, 8^th Floor, A – Wing, Saniya Heritage, Bibwewadi Kondhwa Road, Bibwewadi, Pune – 411037, Maharashtra

Country :	India

Financials (as on) :	31.03.2007

Date of Incorporation :	05.06.2000

Com. Reg. No.:	014960

CIN No.: [Company Identification No.]	U34300PN2000PTC14960

TAN No.: [Tax Deduction & Collection Account No.]	PNEA03151B

PAN No:	AACCA8285E

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer of Auto Components.

RATING & COMMENTS

MIRA’s Rating :

RATING			STATUS		PROPOSED CREDIT LINE
41-55		Ba	Overall operation is considered normal. Capable to meet normal commitments.		Satisfactory
	Maximum Credit Limit :			USD 30000

	Status :			Satisfactory

	Payment Behaviour :			Regular

	Litigation :			Clear

	Comments :			Subject is a well-established and reputed company meeting its normal commitments timeously. Trade relations are fair. Business is active. The company can be considered good for normal business dealings.

INFORMATION PARTED BY

Name :	Mr. Jitendra S. Bora
Designation :	Director
Contact No.:	91-9370647460
Date :	27.05.2008

LOCATIONS

Registered Office :	Flat No. 31, 8^th Floor, A – Wing, Saniya Heritage, Bibwewadi Kondhwa Road, Bibwewadi, Pune – 411037, Maharashtra, India
Mobile No.:	91-9370647460/ 9370647461
E-Mail :	arihantcnc@hotmail.com arihantcnc@gmail.com
Website :	http://www.arihantcnc.com
Location :	Owned

Factory :	A – 77 B, 1^st Floor, Pavna Industrial Co-Op. Soc. Limited, Bhosari, Pune, 411037, Maharashtra, India
Tel. No.:	91-20-27111138
Fax No.:	91-20-66111138
Area :	1000 Sq.ft
Location :	Owned

Factory :	Sanaswadi Plant, Gate No. 829, Near Reliance Tower, At Post Sanaswadi, Taluka – Shirur, Dist – Pune – 411037, Maharashtra, India

DIRECTORS

Name :	Mr. Jitendra Subhash Bora
Designation :	Director
Address :	587, Nana Peth, Laxmi Road, Pune – 411002, Maharashtra, India
Date of Birth/Age :	11.01.1968
Qualification :	B.E.
Experience :	15 Years
Date of Appointment :	05.06.2000

Name :	Mr. Parag C. Kothari
Designation :	Director
Address :	Flat No. 4, A/1, Sakal Nagar, Baner Road, Pune – 411007, Maharashtra, India
Date of Birth/Age :	31.05.1974
Qualification :	Diploma Eng
Experience :	7 Years
Date of Appointment :	05.06.2000

Name :	Mr. Dharmendra Bora
Designation :	Director
Address :	587, Nana Peth, Laxmi Road, Pune – 411002, Maharashtra, India
Date of Birth/Age :	17.11.1972
Date of Appointment :	05.06.2000

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2005

Names of Shareholders	No. of Shares
Mr. Jitendra Subhash Bora	100000
Mr. Parag C. Kothari	100000
Mr. Dharmendra Bora	100000
Total	300000

Equity share breakup (Percentage of total equity)

As on 31.03.2007

Sr. No.	Category	Percentage
1.	Directors or relatives of directors	100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Auto Components.

Products :	v Pinion Gear Blanks v Spindles v Hydraulic Parts v Sleeves v Gear blanks v Shafts v Washers for Power Tools v Fan Hub v Impellers v Boring Bar Blanks

Terms :
Selling :	Credit (30 days), Advance and against Delivery.

Purchasing :	Credit (60 days)

GENERAL INFORMATION

Customers :

v OEM’s

v LN

v Jagdamba Auto Components Limited., Koregaon Bhima, Pune.

v Kulkarni Power Tools Limited. Shirol, Jaisingpur.

v Kalyani Forge Limited. Koregaon Bhima, Pune.

v Saraswati Forge., Aurangabad.

v Turbo Gears Private Limited, Ranjangaon, Pune.

v Tranter India Private Limited., Sanaswadi, Pune.

No. of Employees :

Bankers :

State Bank of India

Deccan Gym Khanna Branch, Shirole Bhavan, J M Road, Pune – 411004, Maharashtra, India

Facilities :

CC – Rs. 3.000 millions

	31.03.2006 (Rs. in millions)	31.03.2005 (Rs. in millions)
Secured Loans
Term Loan from State Bank of India Term loan – Machinery (Secured by hypothecation of plant and machinery, mortgage of premises and personal guarantee of directors.)	--	0.653
Term Loan – Machinery (Secured by hypothecation of plant and machinery, mortgage of premises and personal Guarantee of Directors.)	2.800	3.607
Term Loan – Machinery (Secured by hypothecation of plant and machinery, mortgage of premises and personal Guarantee of Directors.)	4.281	2.932

Cash Credit with State Bank of India (Secured by book debts , Stocks and Personal Guarantee of Directors).	1.001	1.021

Standard Chartered Bank – Car Loan (Secured by hypothecation of Car)	0.154	0.199

Cosmos Bank Limited – Car Loan (Secured by hypothecation of car)	0.228	--

Cosmos Bank Limited – Car Loan (Secured by hypothecation of car)	0.315	--
Total	8.780	8.415

	31.03.2006 (Rs. in millions)	31.03.2005 (Rs. in millions)
Unsecured Loans
From Directors
Mr. J S Bora	0.957	0.834
Mr. D S Bora	0.929	0.949
Mr. P C Kothari	1.130	1.074
Total	3.016	2.857


Banking Relations :	Satisfactory

Auditors :
Name :	Mr. S M Chandorkar, Chartered Accountants
Address :	914 A, Sadashiv Peth, Laxmi Narayan Society, Pune – 411030, Maharashtra, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
300,000	Equity Shares	Rs. 10/- each	Rs. 3.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
300,000	Equity Shares	Rs. 10/- each	Rs. 3.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		3.000	3.000
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		2.929	2.129
4] (Accumulated Losses)		0.000	0.000
NETWORTH		5.929	5.129
LOAN FUNDS
1] Secured Loans		13.866	8.780
2] Unsecured Loans		2.788	3.017
TOTAL BORROWING		16.654	11.797
DEFERRED TAX LIABILITIES		0.984	0.480

TOTAL		23.567	17.406

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		18.313	13.282
Capital work-in-progress		0.000	0.000

INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.584	0.138
	Sundry Debtors	4.795	3.625
	Cash & Bank Balances	1.456	0.864
	Other Current Assets	0.287	0.240
	Loans & Advances	2.484	2.261
Total Current Assets		9.606	7.128
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	3.281	1.936
	Provisions	1.071	1.069
Total Current Liabilities		4.352	3.005
Net Current Assets		5.254	4.123

MISCELLANEOUS EXPENSES		0.000	0.000

TOTAL		23.567	17.406

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006
Sales Turnover (Including Other Income)		21.669	18.606
Total Income		21.669	18.606

Profit/(Loss) Before Tax		2.908	1.840
Provision for Taxation		0.000	0.000
Profit/(Loss) After Tax		2.908	1.840

Expenditures :
	Depreciation & Amortization	0.265	1.977
	Other Expenditure	18.495	14.789
Total Expenditure		18.760	16.766

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006
PAT / Total Income	(%)	13.42	9.89

Net Profit Margin (PBT/Sales)	(%)	13.42	9.89

Return on Total Assets (PBT/Total Assets}	(%)	13.42	9.89

Return on Investment (ROI) (PBT/Networth)		0.49	0.36

Debt Equity Ratio (Total Liability/Networth)		0.73	0.58

Current Ratio (Current Asset/Current Liability)		2.21	2.37

LOCAL AGENCY FURTHER INFORMATION

Trust Seal Acceptance Chart

Parameters	Details
Statutory Approvals
Income Tax Registration	AACCA8285E
Central Sales Tax Registration	27940014272 C
VAT / TIN Registration	27940014272 V
Name of Bank	State Bank
Current Account Number	11100363991
Account Since	8 Years

Credibility Factors
India Mart Client Since	3 Months

Trade Affiliations
SSI Registration	Yes
Export Promotion Council	No

Chambers of Commerce Membership	No

Standards and Certifications
Quality Management Systems	Yes
Environment Management Systems	No
Safety Certificates	No
Product Certificates	No
Other Certificates	ISO 9001:2000

Form 8

Name of the company	ARIHANT CNC PRIVATE LIMITED
Presented By	Mr. Jitendra S. Bora, Director
1) Date and description of instrument creating the change	21.09.2004 Term loan, Ancillary agreement for medium term loan against pledge of movable machinery, Guarantee agreement for small Industrial Advances, Supplemental General agreement for grant of medium term advances to small scale industries on hypothecation of movables book debts and other assets. All agreements constituting a single charge.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 2.500 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	Primary security: The assets equipments purchased out of the bank sources. Collateral security: 1) Industrial Block Bearing Industrial Gala No. A 77 (b) at MIDC Pimpri, 2) Flat No. 4 A – 1, Sakal Nagar Co-Op. Hsg. Soc, Aundh, Pune.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest rate 12.75% p.a.
5) Name and Address and description of the person entitled to the charge.	State Bank of India Deccan Gym Khanna, Pune – 411 004
6) Date and brief description of instrument modifying the charge	Supplemental General Agreement for grant of medium term advances to small scale industries on hypothecation of movables book debts and other assets and ancillary. Agreement or medium term loan against pledge of movable machinery and Guarantee Agreement for small Industrial advances dated 28^th March 2005. All agreement constituting a single charge.
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.	Additional finance of Rs. 4.949 millions was provided making the total amount of finance to Rs. 7.449 millions Rate of Interest – 12.25%.

Form 8

This form is for	Creation of charge
Corporate identity number of the company	U34300PN2000PTC14960
Name of the company	ARIHANT CNC PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	587, Nana Peth, Laxmi Road, Pune – 411002, Maharashtra, India
Type of charge	Hypothecation
Particular of charge holder	Name : State Bank of India Address : Deccan Gym Khanna Branch, Shirole Bhavan, J M Road City : Pune State: Maharashtra Country: IN Pin code: 411004 e-mail ID: arihantcnc@hotmail.com
Nature of description of the instrument creating or modifying the charge	Agreement of loan cum hypothecation
Date of instrument Creating the charge	13.06.2006
Amount secured by the charge	Rs. 11.700 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 1.5% above SBAR minimum 11.75% p.a. 1^st Installment in January 2007 till June 2012 total 54 installments.
Short particulars of the property charged	Assets purchased out of bank finance

Trade References

v Jagadamba Auto Components Limited – Koregaon Bhima

v Kulkarni Power Tools – Jay Singh, Pune, Dist – Kolhapur

v SECO India limited – Sanaswadi, Koregaon, Bhima

Fixed Assets

v Factory Premises

v Electrical Installation

v Plant and machinery

v Office Equipments

v Computer

v Car

v Furniture and Fixtures

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 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 :

The 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.

The 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. 42.79
UK Pound	1	Rs. 83.77
Euro	1	Rs. 66.71

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	5
--LEVERAGE	1~10	5
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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, they 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

MIRA INFORM REPORT

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