MIRA INFORM REPORT

Report Date :

08.04.2011

IDENTIFICATION DETAILS

Name :	PROGRESSIVE MOTORS PRIVATE LIMITED
Registered Office :	“Om Shri” Ramdham Street, No. 1, Near Karnataka Bank, Kalawad Road, Rajkot – 360 005, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	10.08.1999
Com. Reg. No.:	04-36405
CIN No.: [Company Identification No.]	U35914GJ1999PTC036405
TAN No.: [Tax Deduction & Collection Account No.]	RKTP01631A
PAN No.: [Permanent Account No.]	AABCP7549K
Legal Form :	Private Limited Liability Company
Line of Business :	Authorised Dealer of Earth Moving equipments.

RATING & COMMENTS

MIRA’s Rating :

B ( 31 )

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 34572
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Nikhil
Designation :	Accountant
Date :	06.04.2011

LOCATIONS

Registered Office :	“OmShri” Ramdham Street, No. 1, Near Karnataka Bank, Kalawad Road, Rajkot – 360 005, Gujarat
Mobile No.:	91-9879401207 (Mr. Kalpesh)
E-Mail :	accounts@perfectautoservices.com kalpesh.progressive@telecon.co.in
Area :	2000 sq.fts
Location :	Owned
Corporate Office :	Near Rajkamal Petrol Pump, Gondal, Vivdi, Rajkot-360001, Gujarat, India
Tel. No.:	91-281-6452646
Fax No.:	91-281-2360408
Area :	10000 Sq.fts
Location :	Owned
Branch Office :	Meblimata Temple, Rajkot Highway, Happa, District Jamnagar, Gujarat, India
Area :	15000 sq.fts
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :	Mr. Kalpesh Naranbhai Kothari
Designation :	Director
Address :	“OmShri” Ramdham Street, No. 1, Near Karnataka Bank, Kalawad Road, Rajkot – 360 005, Gujarat
Date of Appointment :	10.08.1999
Name :	Mrs. Hetalben Kalpesh bhai Kothari
Designation :	Director
Address :	331, Ramdhan Street No. 1 to 3, Nanamawa, Rajkot – 360 005, Gujarat
Date of Appointment :	10.08.1999
Name :	Mr. Narayandas Gangajibhai Kothari
Designation :	Director
Address :	“OmShri” Ramdham Street, No. 1, Near Karnataka Bank, Kalawad Road, Rajkot – 360 005, Gujarat
Date of Appointment :	10.08.1999

KEY EXECUTIVES

Name :	Mr. Nikhil
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders (As on 30.09.2010)		No. of Shares
Mr. Vijay Jhaverilal Doshi		10
Mr. Kalpesh Narayandas Kothari		2490
Mrs. Hetalben Kalpesh bhai Kothari		32500
	Total	35000

AS ON : 30.09.2010

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		99.97
Other top fifty shareholders		0.03
	Total	100.00

BUSINESS DETAILS

Line of Business :	Authorised Dealer of Earth Moving equipments.
Agencies Held :	Tata Hitachi Telcon
Terms :
Selling :	Cash, Credit (30 days, 60 days, 90 days)
Purchasing :	Cash, Credit (30 days, 60 days, 90 days)

GENERAL INFORMATION

Customers :

• End Users
• OEM’s

No. of Employees :

50 (Approximately)

Bankers :

· Corporation Bank, Rajkot Main Branch

· Citizen Co-op Bank, Jawahar Branch

· Standard Chartered Bank, Rajkot Branch

· The Hong Kong and Shanghai Banking corporation Limited, APJ Chambers, Ground Floor, 3 Wallace Street, Fort, Mumbai – 400 001, Maharashtra

· HDFC Bank, Yagnik Road Branch, Rajkot, Gujarat, India

Facilities :

Cash Credit – Rs.27.500 millions (Standard Chartered Bank)

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Cash Credit loan from Bank	2.845	18.236
From Finance Companies	10.753	2.022
Above Loans are secured against hypothecation of Raw Materials, Stores, Book Debt, Mortgage of Specific land and building and also personally guaranteed by all Directors.
Total	13.598	20.348
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From directors	4.653	4.331
From Corporate Bodies	0.741	0.000
Total	5.394	4.331

Banking Relations :

---

Auditors :

Name :

Sanghavi and Company

Chartered Accountants

Address :

112, Aditya Centre, Phulchhab Chowk, Rajkot – 360 001, Gujarat

Associates/Subsidiaries :

Perfect Auto Services, Gondal

Activity : Dealer for Tata motors

CAPITAL STRUCTURE

As on: 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs.5.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
35000	Equity Shares	Rs.100/- each	Rs.3.500 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		3.500	3.500	3.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5.143	3.905	2.906
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		8.643	7.405	6.406
LOAN FUNDS
1] Secured Loans		13.598	20.347	31.284
2] Unsecured Loans		5.394	4.331	14.042
TOTAL BORROWING		18.992	24.678	45.326
DEFERRED TAX LIABILITIES		0.061	0.067	0.076
TOTAL		27.696	32.150	51.808
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.663	6.156	6.726
Capital work-in-progress		0.663	0.663	0.115
INVESTMENT		0.450	0.450	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	32.114	32.513	38.408
	Sundry Debtors	8.197	2.127	13.201
	Cash & Bank Balances	5.775	0.914	0.970
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	15.826	5.557	12.228
Total Current Assets		61.912	41.111	64.807
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	26.119	10.181	13.978
	Current Liabilities	12.548	4.334	4.727
	Provisions	2.325	1.715	1.135
Total Current Liabilities		40.992	16.230	19.840
Net Current Assets		20.920	24.881	44.967
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		27.696	32.150	51.808

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	122.465	23.347	85.552
		Other Income	5.871	1.919	8.679
		TOTAL (A)	128.336	25.266	94.231
Less	EXPENSES
		Administrative Expenses	6.597	6.478	8.002
		Trading & Other Expense	1.129	1.009	4.702
		Purchases made for re-sale	109.847	7.362	97.443
		Increase/(Decrease) in Finished Goods	4.438	4.392	(21.929)
		TOTAL (B)	122.011	19.241	88.218
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6.325	6.025	6.013
Less	FINANCIAL EXPENSES (D)		3.917	3.742	3.639
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.408	2.283	2.374
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.565	0.669	0.628
	PROFIT BEFORE TAX (E-F) (G)		1.843	1.614	1.746
Less	TAX (H)		0.605	0.615	0.619
	PROFIT AFTER TAX (G-H) (I)		1.238	0.999	1.127
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3.905	2.906	1.779
	BALANCE CARRIED TO THE B/S		5.143	3.905	2.906
	Earnings Per Share (Rs.)		52.67	46.11	---

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.96	3.95	1.19
Net Profit Margin (PBT/Sales)	(%)	1.50	6.91	2.04
Return on Total Assets (PBT/Total Assets)	(%)	2.73	3.34	2.44
Return on Investment (ROI) (PBT/Networth)		0.21	0.22	0.27
Debt Equity Ratio (Total Liability/Networth)		6.94	5.52	10.17
Current Ratio (Current Asset/Current Liability)		1.51	2.53	3.27

LOCAL AGENCY FURTHER INFORMATION

sundry creditors details:

Particulars	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009	Rs. In Millions 31.03.2008
Sundry Creditors	26.119	10.181	13.978

operation results :-

The operation of the company during the year has been resulted in a net profit of Rs. 0.999 million after providing depreciation of Rs. 0.667 million and provision for taxes to the extent of Rs. 1.614 million. There was a carried forward credit balance of Rs. 2.906 millions and after making all these adjustments total credit balance of Rs. 3.905 millions has been carried forward. To conserve the financial resources of the company the directors do not recommend any dividend.

form 8:-

Corporate identity number of the company

U35914GJ1999PTC036405

Name of the company

PROGRESSIVE MOTORS PRIVATE LIMITED

Address of the registered office or of the principal place of business in India of the company

'Omshri' Ramdham Street No 1nr Karnataka Bank Kalawad Road, Rajkot – 360 005, Gujarat, India

This form is for

Creation of charge

Type of charge

· Immovable Property

Particular of charge holder

Name :	Citizens Co-Operative Bank Limited
Address :	Jawahar Road, Rajkot – 360 001, Gujarat, India
E-Mail :	ccbho01@bsnl.in

Nature of instrument creating charge

Mortgage deed of plot of land situated at village Vavdi Taluka Rajkot survey no. 32 plot no. 1 admeasuring 5144.80 sq mts.

Date of instrument Creating the charge

07.02.2009

Amount secured by the charge

Rs. 18.000 millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of Interest:

17% interest subject to any change by RBI in any interest rate

Terms of Repayment:

Renewal every year

Margin

40% of the value of land

Extent and Operation of the charge

overdraft facility renewal every year

Short particulars of the property charged (Including location of the property)

Plot of land situated at village Vavdi Taluka Rajkot survey no. 32 plot no. 1 admeasuring 5144.80 sq mts.

Corporate identity number of the company	U35914GJ1999PTC036405
Name of the company	PROGRESSIVE MOTORS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	'Omshri' Ramdham Street No 1nr Karnataka Bank Kalawad Road, Rajkot – 360 005, Gujarat, India
This form is for	Modification of charge
Type of charge	Movable Property
Particular of charge holder	STANDARD CHARTERED BANK
Nature of instrument creating charge	Supplemental Agreement of Hypothecation of Current And Movable Assets
Date of instrument Creating the charge	28/05/2010
Amount secured by the charge	Rs.27.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As negotiated from time to time Terms of Repayment on demand Margin As negotiated from time to time Extent and Operation of the charge Payable by the borrower to the bank on its first demand at any time from the borrower
Short particulars of the property charged	All companies stocks of Pay Loaders in trade including those in transit etc.
Date of instrument modifying the charge	01/02/2010
Particulars of the present modification	All present and future stock in trade consisting of raw materials, finished goods, goods in process of manufacturing and other merchandise being movable properties I. Belonging to the borrower or II. At the Borrower's disposal or III Stored or to be stored or bought in to upon or in course of transit to the borrower's factory or premises (or at any other place in the borrower's possession or occupation or at any other place)

trade references:-

· C G Shipping, Jamnagar

· Reliance Industries Limited

Fixed assets:-

· Land

· building

· Computer and Printer

· Office Equipments

· Shop

· Stock yard

· Air Conditioner

· Furniture and Fixtures

· Workshop Equipment

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.44.22
UK Pound	1	Rs.71.97
Euro	1	Rs.63.23

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	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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	no
--OTHER MERIT FACTORS	YES/NO	yes
TOTAL		44

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	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

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.