MIRA INFORM REPORT

Report Date :

25.11.2008

IDENTIFICATION DETAILS

Name :	YANTRA KAUSHALYA ENGINEERS PRIVATE LIMITED
Registered Office :	1K1, GIDC, opposite IDMC Unit 1, Vitthal Udyognagar, Vallabh Vidyanagar, Anand - 388 121, Gujarat
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	26.10.2006
Com. Reg. No.:	04-49276
CIN No.: [Company Identification No.]	U29268GJ2006PTC049276
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Machinery and parts, Valves for Dairy Plants.

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 8000
Status :	Satisfactory
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a relatively small but well established company. Trade relations are fair. Payments are reported as slow to the local suppliers. The company is expected to do well in near future. However, presently it can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	1K1, GIDC, opposite IDMC Unit 1, Vitthal Udyognagar, Vallabh Vidyanagar, Anand - 388 121, Gujarat
Tel. No.:	91-2692-236438 / 235182
Fax No.:	91-2692-236385
E-Mail :	roopalcs2001@gmail.com yantra9@hotmail.com
Factory :	Plot No. 1805, Phase 4, Vallabh Vidyanagaj – 388 121, Gujarat, India

DIRECTORS

Name :	Mr. Jagrut Harilal Bhatt
Designation :	Director
Address :	Hari Ni Haveli, Vinukaka Marg Lambhvel Road, Bakrol Anand – 388 315, Gujarat
Date of Birth/Age :	25.10.1955
Date of Appointment :	26.10.2006
Directorship in other companies :	CIN of the Company : U29120GJ2005PTC047039 Name of the Company : Cipriani Harrison Vavles Private Limited Designation : Director
Name :	Mrs. Chhaya Jagrut Bhatt
Designation :	Director
Address :	Hari Ni Haveli, Vinukaka Marg Lambhvel Road, Bakrol Anand – 388 315, Gujarat
Date of Birth/Age :	10.12.1957
Date of Appointment :	26.10.2006
Directorship in other companies :	CIN of the Company : U29120GJ2005PTC047039 Name of the Company : Cipriani Harrison Vavles Private Limited Designation : Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders		No. of Shares
Mr. Jagrut Harilal Bhatt		7950
Ms. Chhaya Jagrut Bhatt		2000
Ms. Indiraben C Shah		10
Mr. Jagrut Harilal Bhatt (HUF)		10
Mr. Nainesh R Shah		10
Mr. Kaushik R Shah		10
Ms. Dipti K Shah		10
	Total	10000

AS ON 30.09.2007:-

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		99.60
Other top fifty shareholders		0.40
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Machinery and parts, Valves for Dairy Plants.

GENERAL INFORMATION

No. of Employees :

Around 20

Bankers :

Union Bank of India, K -103, Das chamber, Dr. Rajendra Marg, Vallabh Vidhyanagar – 388 120, Gujarat, India

Facilities :

Secured Loans	31.03.2007 (Rs. In Millions)
Term Loan from Bank secured by way of equitable mortgage over the immovable properties comprising of land situated at 1kl, opposite, IDMA Unit -1, GIDC Estate, Vithal Udyognagar, Anand – 388 121 all Plant and machinery with equipment accessories lying at mention premises and at premises No. 1805, phase IV, GIDC, V U Nagar and personal Guarantee of Director (Term Loan include Rs. 0.183 million repayable within one year)	4.396
Total	4.396
Unsecured Loans	31.03.2007 (Rs. In Millions)
From Director	10.603
From shareholders	2.692
Total	13.295

Banking Relations :

Satisfactory

Auditors :

Name :

Anil N Shah and Company

Chartered Accountants

Address :

203-205, Sarthak Complex, Nr. Swastik Cross Road, Navrangpura, Ahmedabad – 380 009, Gujarat

Tel. No.:

91-79-26446107/26430497

Mobile No.:

91-9327004626/9825174950

E-Mail :

anilnshahca@vsnl.net

aashah_1999@yahoo.com

Associates/Subsidiaries :

NIL

CAPITAL STRUCTURE

AS ON 30.09.2007:-

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs. 10/- Each	Rs. 1.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs. 10/- Each	Rs. 0.100 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		0.100
2] Share Application Money		0.000
3] Reserves & Surplus		1.403
4] (Accumulated Losses)		0.000
NETWORTH		1.503
LOAN FUNDS
1] Secured Loans		4.396
2] Unsecured Loans		13.295
TOTAL BORROWING		17.691
DEFERRED TAX LIABILITIES		0.362
DEFERRED PAYMENT LIABILITY		0.953
TOTAL		20.509
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		12.208
Capital work-in-progress		0.353
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2.916
	Sundry Debtors	7.374
	Cash & Bank Balances	1.155
	Other Current Assets	0.000
	Loans & Advances	0.740
Total Current Assets		12.185
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	4.265
	Provisions	0.000
Total Current Liabilities		4.265
Net Current Assets		7.920
MISCELLANEOUS EXPENSES		0.028
TOTAL		20.509

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007
Sales Turnover		11.020
Other Income		0.185
Total Income		11.205
Profit/(Loss) Before Tax		2.157
Provision for Taxation		0.755
Profit/(Loss) After Tax		1.402
Export Value		6.680
Expenditures :
	Manufacturing Expenses	2.172
	Raw Material Consumed	5.514
	Increase/(Decrease) in Finished Goods	[0.463]
	Interest	0.171
	Depreciation & Amortization	0.345
	Other Expenditure	1.309
Total Expenditure		9.048

KEY RATIOS

PARTICULARS		31.03.2007
PAT / Total Income	(%)	12.51
Net Profit Margin (PBT/Sales)	(%)	19.57
Return on Total Assets (PBT/Total Assets}	(%)	8.72
Return on Investment (ROI) (PBT/Networth)		1.44
Debt Equity Ratio (Total Liability/Networth)		14.61
Current Ratio (Current Asset/Current Liability)		2.86

LOCAL AGENCY FURTHER INFORMATION

History:

During the year, as on 26.10.2006, the company has been registered under part IX of companies, 1956 on conversion of erstwhile proprietorship firm namely Yantra Kaushalya. On incorporation, running business as well all assets and liabilities lying in books of proprietorship firm are taken over by company.

Performance:

In spite of stiff competition in the global market, the company has penetrated in market by producing good export orders. The sales Turnover for the period commencing from 26.10.2006 to 31.03.2007 was Rs. 11.020 millions which include export turnover of Rs. 6.988 millions. During the year, the company has achieved profit of Rs. 1.403 millions after providing depreciation of Rs. 0.344 million.

FIXED ASSETS:-

· Land

· Plant and Machinery

· Building

· Vehicles

· Furniture and Fixtures

· Office equipment

· Dies and Tools

· EDP Equipment

· Electric Installation

FORM 8:-

Corporate identity number of the company	U29268GJ2006PTC049276
Name of the company	YANTRA KAUSHALYA ENGINEERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	1K1, GIDC, opposite IDMC Unit 1, Vitthal Udyognagar, Vallabh Vidyanagar, Anand - 388 121, Gujarat
This form is for	Modification of charge
Type of charge	· Movable Property · Book Debts · Others
Particular of charge holder	Union Bank of India, K-103, Das Chambers, Dr. Rajendra Marg, Vallabh Vidyanagar, Gujarat, India E-Mail: vvnagar@nionbankofindia.com
Nature of instrument creating charge	Union Bank of India, V V Nagar letter No. ADV : BB : 137
Date of instrument Creating the charge	18.04.2007
Amount secured by the charge	Rs. 26.700 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest : CC Hyp - 11% p.a. with monthly rests: packing credit 7.5% p.a with monthly rests, TL – 11.5% p.a with monthly rests, FDBPO / FUDBP – 7.5% p.a with monthly rest. Terms of repayment: Working capital – On Demand, TL- in 72 monthly installment Margin: CC – hyp /PC -25%, TL – 30%, FDBPO / FUDBP -10% Extent and operation of the Charge: Hypothecation of all tangible movable machineries, plant, fixtures, fittings other installations, cranes, furniture, computers and other accessories, vehicles together with spares, tools and movable goods and assets both present and future lying at K-1, GIDC Estate, Vithal Udyognagar and all present and future book debts, outstanding monies, receivables, claims bill contracts, engagements and securities.
Short particulars of the property charged (Including location of the property)	Hypothecation of all tangible movable machineries, plant, fixtures, fittings other installations, cranes, furniture, computers and other accessories, vehicles together with spares, tools and movable goods and assets both present and future lying at K-1, GIDC Estate, Vithal Udyognagar and all present and future book debts, outstanding monies, receivables, claims bill contracts, engagements and securities.

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 :

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.50.09
UK Pound	1	Rs.74.90
Euro	1	Rs.63.40

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	5
--PROFITABILIRY	1~10	5
--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, 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