MIRA INFORM REPORT

Report Date :

14.03.2008

IDENTIFICATION DETAILS

Name :	SHRADHA FORGE PRIVATE LIMITED
Registered Office :	G-508, GIDC, Lodhika Industrial Estate, Kalawad Road, Village: Metoda, Taluka Lodhika, Rajkot, 364 485, Gujarat.
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	16.02.1993
Com. Reg. No.:	018981
CIN No.: [Company Identification No.]	U28910GJ1993PTC018981
TAN No.: [Tax Deduction & Collection Account No.]	RKTS00697E
PAN No.: [Permanent Account No.]	AAIFS5358P
Legal Form :	Private limited Liability Company
Line of Business :	Manufacturing of Forging Items.

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 7832
Status :	Moderate
Payment Behaviour :	Slow and Delayed
Litigation :	Clear
Comments :	Subject is an established Company having moderate track. Financial position is moderate having Suspencial accumulated losses. It’s payment are reported as slow and delayed. The Company can be considered for any business dealings on safe and secured trade terms and conditions, only.

LOCATIONS

Registered Office :	G-508, GIDC, Lodhika Industrial Estate, Kalawad Road, Village: Metoda, Taluka Lodhika, Rajkot, 360021, Gujarat.
Tel. No.:	91-2827-287227
Fax No.:	91-2827-287227
E-Mail :	contact@shradhaforge.com

DIRECTORS

Name :	Mr. Patel Jayendra Dhanji bhai
Designation :	Chairman Cum Managing Director
Address :	901, Satyam Shivam Sundaram Apartment, University Road, Rajkot, Gujarat, 360005.
Date of Birth/Age :	11/07/1949
Date of Appointment :	16.02.1993
Name :	Mr. Vrajlal Nanji Bhai Sherasiya
Designation :	Director
Date of Birth/Age :	25.03.1961
Date of Appointment :	12.04.2007
Name :	Mr. Gunvant Bhai Nanji Bhai Sherasiya
Designation :	Director
Date of Birth/Age :	01.06.1963
Date of Appointment :	12.04.2007
Name :	Mr. Haresh Bhai Duda Bhai Sarkhedi
Designation :	Director
Date of Birth/Age :	07.04.1960
Date of Appointment :	12.04.2007
Name :	Mr. Pravin Bhai Nanji Bhai Sherasiya
Designation :	Director
Date of Birth/Age :	28.02.1966
Date of Appointment :	12.04.2007
Name :	Mr. Paresh Kumar Manilal Ghodasara
Designation :	Director
Date of Birth/Age :	20.10.1966
Date of Appointment :	12.04.2007
Name :	Amit Devendra Kumar Patel
Designation :	Director
Date of Birth/Age :	25.06.1984
Date of Appointment :	12.04.2007
Name :	Mr. Patel Kirit Kumar Dhanji Bhai
Designation :	Chairman Cum Managing Director
Address :	22, Ajay Apartment, DR. Yagnik Road, Rajkot, Gujarat, 360001.
Date of Birth/Age :	16/07/1954
Date of Appointment :	16.02.1993
Name :	Mr. Patel Umesh (Vishal) Natwarlal
Designation :	Chairman Cum Managing Director
Address :	22, Ajay Apartment, DR. Yagnik Road, Rajkot, Gujarat, 360001.
Date of Birth/Age :	02/11/1974
Date of Appointment :	16.02.1993
Name :	Mr. Mayur Kumar Jayendra Bhai Patel
Designation :	Director
Address :	Dhanvilla, 1-Shree Ram Park, B/H, central School, Kalawad Road, Rajkot, Gujarat, India 360005.
Date of Birth/Age :	16/10/1979
Date of Appointment :	01.09.2005
Resignation Date :	01.09.2007
Name :	Mr. Umesh Natwarlal Patel
Designation :	Director
Address :	22, Ajay Apartment, DR. Yagnik Road, Rajkot, Gujarat, 360001.
Date of Birth/Age :	02/11/1974
Date of Appointment :	16.02.1993
Resignation Date :	01.09.2007

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders As on 31.03.2007	No. of Shares
Haresh Kumar DudaBhai Sarkhedi	19,700
Vrajlal NanjiBhai Sherasiya	25,700
GunvantBhai Nanji Bhai Sherasiya	20,300
Labhuben Nanjibhai Sherasiya	7,100
Pravin Bhai NanjiBhai Sherasiya	19,300
Paresh Kumar Manilal Ghodasara	54,300
DevendraBhai Patel	41,300
Bhavnaben DevendraBhai Patel	14,000
Amit DevendraBhai Patel	14,000
Rashilaben HareshBhai Sarkhedi	7,500
Mansi HareshBhai Sark	7,500
Bhartiben Vrajlal Sherasiya	2,500
Meenaben GunvantBhai Sherasiya	7,500
Nanjibhai Jivrajbhai Sherasiya	13,600
Bhavnaben Pravinbhai Sherasiya	8,500
Rekhaben Pareshbhai Ghodasara	15,100
Total	277,900

Equity Share Breakup (Percentage of Total Equity)

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

BUSINESS DETAILS

Line of Business :	Manufacturing of Forging Items.
Products :	· Pinion · Spine Sleeve · Cluster Gear Shaft · Pin for rear Axle · Types of Speed Gear Wheel · Leading Link (LH & RH) · Reverse Gear Sprocket · Driver · Clutch Center · E.G.C. Lever · Pin for rear Axle · Corner Cap etc Round Jobs · Diamond Tools · Wide Range of Flanges · Hydraulic Units Spares · Forged Gears Blanks · Any type of Round Job Forging as per Drawing or Sample.

GENERAL INFORMATION

No. of Employees :	82 People
Bankers :	· Bank of India, Kalawad Road Branch, Rajkot 360 005, Gujarat, · The Co-Operative Bank Of Rajkot Limited. · Bank of Baroda, MG Road, Rajkot 380001, Gujarat, India.

Banking Relations :	Satisfactory
Auditors :
Name :	M N. Manvar & Company, Chartered Accountant
Address :	504, Star Plaza, Near Circuit House, Pulchhab Chowk, Rajkot, Gujarat, 360001.

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
277,500	Equity Shares	Rs. 10/- Each	Rs. 2.775 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		2.775	2.775
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		2.626	2.626
4] (Accumulated Losses)		(3.443)	(2.356)
NETWORTH		1.958	3.045
LOAN FUNDS
1] Secured Loans		6.254	3.996
2] Unsecured Loans		8.422	8.139
TOTAL BORROWING		14.676	12.135
DEFERRED TAX LIABILITIES		2.157	3.181
TOTAL		18.791	18.361
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.657	10.803
Capital work-in-progress		0.000	0.000
INVESTMENT		0.982	1.111
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.029	4.736
	Sundry Debtors	2.753	1.900
	Cash & Bank Balances	0.200	0.193
	Other Current Assets	0.000	0.000
	Loans & Advances	0.533	1.157
Total Current Assets		7.515	7.986
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	0.124	1.387
	Provisions	0.239	0.152
Total Current Liabilities		0.363	1.539
Net Current Assets		7.152	6.447
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		18.791	18.361

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2007	31.03.2006		31.03.2005
Sales Turnover	37.261	40.129		29.927
Other Income	0.024	0.186		0.347
Total Income	37.285	40.315		30.274
Profit/(Loss) Before Tax	(1.081)	0.133		0.386
Provision for Taxation	0.000	0.000		0.000
Profit/(Loss) After Tax	(1.087)	0.111		0.386
Expenditures :
Financial Charges	1.437	0.588	0.000
Depreciation & Amortization	0.752	0.737	0.668
Change in Stock	0.360	0.567	1.238
Other Expenditure	35.817	39.424		31.230

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	(2.91)	0.27	1.27
Net Profit Margin (PBT/Sales)	(%)	(2.90)	0.33	1.29
Return on Total Assets (PBT/Total Assets}	(%)	(2.90)	0.32	1.27
Return on Investment (ROI) (PBT/Networth)		0.55	0.04	--
Debt Equity Ratio (Total Liability/Networth)		0.18	0.50	--
Current Ratio (Current Asset/Current Liability)		20.70	5.19	--

LOCAL AGENCY FURTHER INFORMATION

This form is for	Creation of Charge
Corporation identity number (CIN) or foreign company registrations number of the company	U28910GJ1993PTC018981
Name of the company	SHRADHA FORGE PRIVATE LIMITED
Address	1/3, Amrut Commercial Centre Sardar Nagar, Main Road, Rajkot, Gujarat, India.
Type of Charges	· Book Debts · Movable Property (Not being Pledge) · Others
Whether consortium finance is involved	No
Whether joint charge involved	No
Number of charge holder(s)	1
Particular of the charge holder	Name : Bank of India Address : Kalawad Road Branch, City : Rajkot State : Gujarat ISO Country Code : IN Pin Code : 360005 E-mail ID : boikalawadrd@sancharnet.in
Nature or description of the instrument creating or modifying the charge	Hypothecation Cum Loan Agreement
Date of the instrument creating charge	13.10.2006
Whether charge created or modified outside India	No
Amount Secure by the charge	Rs. 9.544 millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	(a) Rate of Interest 12.25% P.A. (b) Terms of Repayment (A) Term Loan:- 48 Monthly Installments of Rs. 43000/- Each Together with the Interest as D when Charged. (B) Cash Credit:- On Demand and Subject to Annual Review. (c) Margin CC :- Stock = 25% BD = 40% Term Loan = 25% (d) Extent and Operation of the Charge The Charge Operates to Create Security over Properties for Securing Repayment of Entire Finance of Rs. 95.440 millions together with all Interests, Costs, and Expenses. (e) Others (A) Bifurcation of Total Finance of Rs. 9.544 millions Term Loan CC (Stock) Rs. 6.000 millions CC (BD) Rs. 4.000 millions But Maximum CC Allowed Rs. 7.500 millions All Properties to be kept Fully Insured.
Short particulars of the Property charged	As Per Attachment
Whether any of the property or interest therein under reference is not registered in the name of the company	No

Form 8 Particular for creation or modification of charges

Name of the company	SHRADHA FORGE PRIVATE LIMITED
Presented By	Shree Jayendrabhai Patel Director
1) Date and description of instrument creating the change	Memorandum of Equitable Mortgage Limited 25.09.2003
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 25.000 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	Factory Building and Plant and Machinery situated at G – 508, G. I. D. C. Lodhika Villa : Metoda, Dist : Rajkot.
4) Gist of the terms and conditions and extent and Operation of the charge.	(1) Interest 15.50 P.A. (2) Margin 20.00
5) Name and Address and description of the person entitled to the charge.	The Co –Operative Bank of Rajkot Limited Panchanath Plot, Main Branch, Rajkot.

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. 40.15
UK Pound	1	Rs. 80.54
Euro	1	Rs. 63.41

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	1
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	1
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	--
--LEVERAGE	1~10	2
--RESERVES	1~10	--
--CREDIT LINES	1~10	2
--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		13

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