MIRA INFORM REPORT

Report Date :

12.09.2008

IDENTIFICATION DETAILS

Name :	K R PANCHAL AND COMPANY
Registered Office :	D/33/1,New Arbuda Industrial Estate,G.S.T. Crossing Road,New Ranip, Ahmedabad-382480, Gujarat.
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	31.03.2006
Com. Reg. No.:	24074203526 / 24574203526
PAN No.: [Permanent Account No.]	AIZPP1072E
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners.
Line of Business :	Manufacturer,Exporter and Supplier of Drilling Machines.

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 18740
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established concern having satisfactory track.Trade relations are fair.Payments are usually correct and as per commitments. Nothing adverse reported. The concern can be considered normal for business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr.Chirag P.Panchal (Int.Marketing Manager)
Designation :	Sales Accountant
Contact No.:	91-9428118751 / 91-79-32911074
Email	Cp_boss@yahoo.com
Date :	05.09.2008

LOCATIONS

Registered Office/Factory / Branches :	D/33/1,New Arbuda Industrial Estate,G.S.T. Crossing Road,New Ranip, Ahmedabad – 382480,Gujarat, India
Tel. No.:	91-79-32911074 / 30150531
Mobile No.:	91-9978123447 / 9428118751
Fax No.:	91-79-30150531
E-Mail :	jk_krpdrillmac@yahoo.co.in / cp_boss007@yahoo.com
Website :	www.krpanchal.com
Area :	14000 sq.fts.
Location :	Owned

PARTNERS

Name :	Mr.Kodarlal Ramchandra Panchal
Designation :	Partner
Address :	109/110,Kshav Nagar Society, Subhashbridge,Ahmedabad
Date of Birth:	25.08.1949
Experience :	40 years
Name :	Mr.Pravinchandra K. Panchal
Designation :	Partner
Address :	B/2,Janki Appartment,Subhash Bridge,Ahmedabad
Date of Birth:	10.08.1964
Experience :	27 years

KEY EXECUTIVES

Name :	Mr.Hareshkumar K.Panchal
Designation :	WorkShop Manager
Address :	109/110,Kshav Nagar Society, Subhashbridge,Ahmedabad
Date of Birth :	31.08.1971
Experience :	20 years
Name :	Mr.Chirag P. Panchal
Designation :	Accountant
Address :	B/2,Janki Appartment,Subhash Bridge,Ahmedabad
Date of Birth :	10.07.1985
Experience :	10 years
Name :	Mr.Hemant P. Panchal
Designation :	WorkShop Direct
Address :	B/2,Janki Appartment,Subhash Bridge,Ahmedabad
Date of Birth :	02.09.1986
Experience :	7 years

BUSINESS DETAILS

Line of Business :	Manufacturer,Exporter and Supplier of Drilling Machines.
Terms :
Selling :	Credit (7 days)
Purchasing :	Cash

GENERAL INFORMATION

Customers :	Wholesalers OEM’s
No. of Employees :	34 (in office 4 + 30 in factory)
Bankers :	v Bank of Baroda Kaligham,Ahmedabad – 80 v Bank of India Subhashbridge,Ahmedabad – 27 v ICICI Bank Sahibaug,Ahmedabad

Banking Relations :	Satisfactory
Auditors :
Name :	Mr.Alpesh K. Panchal Chartered Accountant Prunpurshottam,New Ranip,Ahmedabad-80
Tel. No.:	91-9925701448
	Mr.Tejas R.Shah Tax Consultant Ashram Road,Ahmedabad-04
Mobile No:	91-9825011851
Sister Concerns:
Name :	J.K. Machines
Address :	D/33,New Arbuda Industrial Estate,G.S.T Crssing Road, New Ranip, Ahmedabad - 382480
Line of Business :	Manufacturer :Type of Heavy Duty,Bench Type Pillar Drill Machine
Name :	Bharat Products
Address :	C/33,New Arbuda Industrial Estate,G.S.T Crossing Road, New Ranip, Ahmedabad - 382480
Line of Business :	Manufacturer: Type of Pillar Drill Machine, Hackshaw Machines, Vices
Name :	Jay Nirant Industries
Address :	C/34/1,New Arbuda Industrial Estate, G.S.T Crossing Road, New Ranip, Ahmedabad - 382480
Line of Business :	Manufacturer: Electric Motors,Polishar,Bench Grinder,Flexible Shaft Grinder,Atta Mixture Motor.

CAPITAL STRUCTURE

Capital Investment :
Owned :	Rs.3.748 millions
Borrowed :	0.000
Total :	Rs.3.748 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

SUMMARIZED FIGURE

PARTICULARS		31.03.2007
Partner Capital		3.748
LOAN FUNDS
Unsecured Loans		0.328
FIXED ASSETS [Net Block]		3.825
INVESTMENT		0.300
CURRENT ASSETS, LOANS & ADVANCES
	Sundry Debtors	0.723
	Cash & Bank Balances	0.060
	Loans & Advances	0.050
CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	0.455

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2007
Sales Turnover	5.568

LOCAL AGENCY FURTHER INFORMATION

PRODUCTS WITH BRAND NAMES

PRODUCT	BRAND NAMES
3MM PCB High Speed Drill Machine 25000-30000 R.P.M Model No. 3KHD	BHARAT BRAND Manufacture Bharat Products.
6MM High Speed Drill Machine 6000-12000 R.P.M Model No: 6KHD	BHARAT BRAND Manufacture Bharat Products.
5MM Tapping Machine Model No.5KT	BHARAT BRAND Manufacture Bharat Products.
13MM Pillar Drill Machine (Hollow) Model No.13LSSR	KRP BRAND Manufacturers J.K.Machines
20MM Pillar Drill Machine Model No.20KB,20KFR,20KPR	KRP BRAND Manufacturers J.K.Machines
20MM Pillar Drill Machine Model No.19KB , 19KFR	BHARAT BRAND Manufacture Bharat Products.
20MM Pillar Drill Machine Model No.20KF	KRP BRAND Manufacturers J.K.Machines
20MM – 15”Centre Pillar Drill Machine Model No:378KCR(20)	KRP BRAND Manufacturers J.K.Machines
25MM Pillar Drill Machine Model No:25LKPR	BHARAT BRAND Manufacture Bharat Products.
25MM Pillar Drill Machine Model No:25KPR	KRP BRAND Manufacturers J.K.Machines
25MM – 15”Centre Pillar Drill Machine Model No:378KCR(25)	KRP BRAND Manufacturers J.K.Machines
32MM Pillar Drill Machine Model No:32KPS	KRP BRAND Manufacturers J.K.Machines
38MM Pillar Drill Machine Model No.38KPT	KRP BRAND Manufacturers J.K.Machines
38MM – 15”Centre Pillar Drill Machine Model No:378KCR(38)	KRP BRAND Manufacturers J.K.Machines
40MM Pillar Drill Machine (Auto Feed) Model No.38KPF	KRP BRAND Manufacturers J.K.Machines
32MM Redial Drill Machine(Fine Feed) Model No.32KRD	KRP AND COMPANY BRAND Manufacturers J.K.Machines
32MM Redial Drill Machine(Auto Feed) Model No.32KRD	KRP AND COMPANY BRAND Manufacturers K.R.Panchal and Company
40MM Redial Drill Machine(All Geared Auto Feed) Model No.40KRDFA	KRP AND COMPANY BRAND Manufacturers K.R.Panchal and Company
Precision Bench Vice Model No.75,90,100,125,150,200	HKP BRAND Manufacturers Bharat Products
Precision Drill Machine Vice Model No.3”,4”,6”,8”	HKP BRAND Manufacturers Bharat Products
Highly Precision Compound Sliding Table Model No.6”X6”,8”X8”,10”X10”,8”X12”,12”X12”.	HKP BRAND Manufacturers Bharat Products
Hackshaw Machine Model No.14JNI	BHARAT BRAND Manufacture Bharat Products
Electric Motor Single Phase Model No.0.25HP,0.5HP,1HP,1.5HP,2HP	JNI BRAND Manufactures Jay Nirant Industries
Electric Motor Three Phase ModelNo.0.5HP,1HP,1.5HP,2HP,3HP,5HP,7.5HP,10HP	JNI BRAND Manufactures Jay Nirant Industries
Bench Grinder Single Phase Model No.0.5HP,0.75HP,1HP	JNI BRAND Manufactures Jay Nirant Industries
Bench Grinder Three Phase Model No.0.5HP,1HP,1.5HP	JNI BRAND Manufactures Jay Nirant Industries
Polishar Three Phase Model No.3HP,5HP	JNI BRAND Manufactures Jay Nirant Industries
Flexible Shaft Grinder Three Phase Model No.1HP,1.5HP	JNI BRAND Manufactures Jay Nirant Industries

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.45.44
UK Pound	1	Rs.79.62
Euro	1	Rs.63.48

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	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	NO
--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		46

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