MIRA INFORM REPORT

Report Date :

18.04.2011

IDENTIFICATION DETAILS

Name :	CLASSIC MICROTECH PRIVATE LIMITED
Registered Office :	Block No. 60, AT and Post – Sonasan, Taluka Prantij, District Sabarkantha, Himatnagar-383210, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	13.08.2002
Com. Reg. No.:	04-041112
CIN No.: [Company Identification No.]	U26999GJ2002PTC041112
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer and Importer of Industrial Chemicals including Zirconium Silicate.

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 77000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company is low. Trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some slight cautions.

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. Mukesh
Designation :	Director
Date :	14.04.2011

LOCATIONS

Registered Office/ Factory :	Block No. 60, AT and Post – Sonasan, Taluka Prantij, District Sabarkantha, Himatnagar-383210, Gujarat, India
Tel. No.:	91-2770-240427
Mobile No.:	91-9879105070/ 9909984856 (Mr. Mukeshbhai Patel)
Fax No.:	91-2770-240040/ 240090
E-Mail :	classic_microtech@yahoo.com mbpatel444@yahoo.co.in
Area :	Owned

DIRECTORS

As on 18.08.2010

Name :	Mr. Mukeshkumar Babubhai Patel
Designation :	Director
Address :	Narsinh Pura, Post-Kukadiya, Ta- Idar, Sabarkantha-3834140, Gujarat, India
Date of Birth/Age :	13.06.1978
Date of Appointment :	13.08.2002
Name :	Mr. Kacharabhai Rajabhai Patel
Designation :	Director
Address :	At- Rampur Nava, Post- Ganthiyol, Talukar – Idar, Sabarkantha-383410, Gujarat, India
Date of Birth/Age :	15.04.1966
Date of Appointment :	13.08.2002
Name :	Mr. Narsinhbhai Pashabhai Patel
Designation :	Director
Address :	At- Rampur Nava, Post- Ganthiyol, Talukar – Idar, Sabarkantha-383410, Gujarat, India
Date of Birth/Age :	01.06.1956
Date of Appointment :	13.08.2002
Name :	Mr. Hasmukhbhai Mohanbhai Patel
Designation :	Director
Address :	At- Rampur Nava, Post- Ganthiyol, Talukar – Idar, Sabarkantha-383410, Gujarat, India
Date of Birth/Age :	01.04.1966
Date of Appointment :	13.08.2002
Name :	Mr. Ajaykumar Ayyanna Pinnimti
Designation :	Director
Address :	MIG 2150 BHEL, Ramchandrapuram, Hyderabad-502032, Andhra Pradesh, India
Date of Birth/Age :	29.01.1965
Date of Appointment :	01.06.2007
Date of Ceasing :	01.11.2010
DIN No.:	01945593
Name :	Mr. Dineshbhai Ramnlal Patel
Designation :	Director
Address :	Laxmanpura, Idar, Goral, Idar, Sabarkantha-383410, Gujarat, India
Date of Birth/Age :	01.06.1969
Date of Appointment :	01.06.2007
Date of Ceasing :	01.11.2010
DIN No.:	01917917
Name :	Mr. Kirankumar Bhikhalal Patel
Designation :	Director
Address :	Rampur, Taluka Idar, Post- Ganthiol, Idar, Sabarkantha-383410, Gujarat, India
Date of Birth/Age :	20.06.1984
Date of Appointment :	01.06.2007
Date of Ceasing :	01.11.2010
DIN No.:	01918094

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 18.08.2010

Names of Shareholders	No. of Shares
Kacharabhai Rajabhai Patel	86480
Narsinhbai Pashabhai Patel	40445
Mukeshbhai B Patel	87745
Hasmukhbhai M Patel	38900
Babubhai P Patel	45990
Bhavikaben K Patel	10000
Bhikhabhai R Patel	38440
Chetanaben M Patel	15000
Kirankumar B Patel	35000
Kirtibhai N Patel	10000
Pravinbhai G Patel	10000
Rajabhai T Patel	11225
Rinkuben K Patel	12500
Sureshbhai N Patel	21905
Arvindbhai P Patel	5000
Dayabhai D Patel	2750
Devchandbhai D Patel	5500
Dineshbhai R Patel	35790
Dipakbhai N Patel	4950
Girdharbhai L Patel	5000
Hansaben J Patel	2250
Hsmukhbhai B Patel	26825
Jashiben H Patel	3380
Jayantibhai M Patel	34225

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Importer of Industrial Chemicals including Zirconium Silicate.
Products :	Zirconium Silicate (Zircom 5 Micron, Zircon 2 Micron and Zircon 1 Micron) Zir Floor (Zircon 325 Mesh and Zircon)
Imports :
Products :	Zircon Sand
Countries :	China Africa Australia Germany Indonesia Malaysia
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit (60 Days for import)

PRODUCTION STATUS AS ON 31.03.2009

Particulars	Unit	Installed Capacity	Actual Production
Zirconium Silicate and Sirfloor	Kgs	4200000	1595410

GENERAL INFORMATION

Customers :

OEM’s and Industrial Companies

No. of Employees :

Approximately 29 (12 people on contract)

Bankers :

Union Bank of India, Dr. S.R. Marg Branch, Ganesh Chamebrs, Darpan Panch Rasta, Darpan Society, Navjivan, Ahmedabad-380014, Gujarat, India

Facilities :

Secured Loans	31.03.2009 Rs. in Millions	31.03.2008 Rs. in Millions
Term Loan – Hypothecation of P and M Etc.
Union Bank of India, Ahmedabad	14.910	9.156
Working Capital Loan
Union Bank of India, Ahmedabad	22.159	0.000
Total	37.069	9.156
Unsecured Loans	31.03.2009 Rs. in Millions	31.03.2008 Rs. in Millions
From Directors, share holder and relatives	4.522	0.511
Total	4.522	0.511

Banking Relations :	--
Auditors :
Name :	K K Patel and Associates Chartered Accountant
Address :	F-51, 2^nd Floor, Akash Ganga Complex, Near S.T. Stand, Himatnagar-383001, Gujarat, India
Tel. No.:	91-2772-240499
Mobile No.:	91-9898044121
E-Mail :	kamleshpatel74@hotmail.com

CAPITAL STRUCTURE

As on 18.08.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs. 10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
830000	Equity Shares	Rs. 10/- each	Rs. 8.300 Millions

After 18.08.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Shares	Rs. 10/- each	Rs. 12.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
830000	Equity Shares	Rs. 10/- each	Rs. 8.300 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		8.300	8.300	8.300
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		11.026	9.624	8.152
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		19.326	17.924	16.452
LOAN FUNDS
1] Secured Loans		37.089	37.069	9.156
2] Unsecured Loans		7.977	4.522	0.511
TOTAL BORROWING		45.066	41.591	9.667
DEFERRED TAX LIABILITIES		0.536	0.414	0.000
TOTAL		64.928	59.929	26.119
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		23.285	23.388	0.522
Capital work-in-progress		0.000	0.000	17.152
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	25.371	17.998	0.000
	Sundry Debtors	43.555	25.388	0.000
	Cash & Bank Balances	0.499	0.039	0.316
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	8.808	5.958	8.104
Total Current Assets		78.233	49.383	8.420
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	36.172	12.707	0.196
	Other Current Liabilities		0.000	0.000
	Provisions	0.551	0.312	0.000
Total Current Liabilities		36.723	13.019	0.196
Net Current Assets		41.510	36.364	8.224
MISCELLANEOUS EXPENSES		0.133	0.177	0.221
TOTAL		64.928	59.929	26.119

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income (Turnover)	162.848	75.912
		Other Income	NA	NA
		TOTAL (A)	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses	NA	NA
		Advertising Expenses
		TOTAL (B)	NA	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		11.090	8.707
Less	FINANCIAL EXPENSES (D)		5.791	4.604
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5.299	4.103
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.145	1.906
	PROFIT BEFORE TAX (E-F) (G)		2.154	2.197
Less	TAX (H)		0.752	0.725
	PROFIT AFTER TAX (G-H) (I)		1.402	1.472
	Earnings Per Share (Rs.)		1.69	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
Net Profit Margin (PBT/Sales)	(%)	1.32	2.89	NA
Return on Total Assets (PBT/Total Assets}	(%)	2.12	3.02	NA
Return on Investment (ROI) (PBT/Networth)		0.11	0.12	NA
Debt Equity Ratio (Total Liability/Networth)		4.23	3.05	0.60
Current Ratio (Current Asset/Current Liability)		2.13	3.79	42.96

LOCAL AGENCY FURTHER INFORMATION

Trade References:

· Patel Chemnicals, Mumbai

· Reson Operate India Limited

Operations:

The turnover of the company for the year increased from Rs. 162.848 Millions to Rs. 79.512 Millions. During the year the company has earned Net Profit of Rs. 1.402 Millions as against the Net Profit of Rs. 1.472 Millions in the previous year.

Note:

The Registered office of the company has been shifted from F/51, Akash Ganga Complex, 2^nd Floor, Near S T Stand, Himatnagar, District Sabarkantha, Gujarat, India to present address w.e.f. 01.06.2007

Note:

The subject company established in year 2002, but the activity of company started in 2008 as confirm by accountant (Mr. Hasmukhbhai)

Bankers Charges Report as per Registry

Corporate identity number of the company

U26999GJ2002PTC041112

Name of the company

CLASSIC MICROTECH PRIVATEM LIMITED

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

Block No. 60, AT and Post – Sonasan, Taluka Prantij, District Sabarkantha, Himatnagar-383210, Gujarat, India

This form is for

Modification of charge

Charge identification number of the charge to be modified

10090945

Type of charge

Book Debts

Movable Property

Particular of charge holder

Union Bank of India, Dr. S.R. Marg Branch, Ganesh Chamebrs, Darpan Panch Rasta, Darpan Society, Navjivan, Ahmedabad-380014, Gujarat, India

E Mail: cbssrmarg@unionbankofindia.com

Nature of instrument creating charge

Supplemental Deed to composite hypothecation deed

Date of instrument Creating the charge

03.11.2010

Amount secured by the charge

Rs. 111.950 Millions

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

Rate of Interest

Cash Credit : Bank rate plus 4.5%, Term Loan: I and II: Base rate Plus 4.5%, Imported LC/ WL LC: Usual Commission

Terms of Repayment

Term Loan : -II shall be repayable in 20 quarterly equal installment of Rs. 0.263 Millions. First installment shall fall due on April 2011

Margin

Stock: 25% book debts: 50%, Import LC: 20%, TL-I: Plant and Machinery: 25% and Building : 35%, TL-II: Plant and Machinery: 30%

Extent and Operation of the charge

All the securities are further hypothecated and charged to the bank to secure various enhanced credit facilities from Rs. 84.200 Millions to Rs. 111.950 Millions granted by the bank to the company (borrower) plus interest, commission, costs, charges, expenses and other monies payable by the company toe the Bank. This charge operates as exclusively first chare.

Others

(Rs. in Millions)

Particulars	Existing	Proposed
Cash Credit	27.500	40.000
Term Loan- I	16.700	16.700
Term Loan – II	0.000	5.250
IMP L/C	40.000	50.000
WW Inl L/C	[5.000]	[50.000]
Total	84.200	111.950

Short particulars of the property charged

Entire current assets viz the goods, stocks, raw materials situated at Block No. 60 at and P.O. sonasan , Taluka Pantij, District- Sabnarkantha-383210 and all book debts/ receivables.

Entire movable assets viz, Plant, Machinery, Fixtures, implements, fittings and furniture etc situated at Block No. 60 at and P.O. sonasan , Taluka Pantij, District- Sabnarkantha-383210

Date of instrument modifying the charge

08.04.2010

Particulars of the present modification

The original charge being agreement of composite hypothecate deed dated 18.01.2008 now further modified to secured various enhanced credit facilities from Rs. 84.200 Millions to Rs. 111.950 Millions granted by the bank to the company (borrower) plus interest, commission, Costs, Charges, expenses and other monies payable by the company to the bank.

Fixed Assets:

· Land

· Computer

· Office Equipments

· Plant and Machinery

· Factory Building

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.44.52
UK Pound	1	Rs.72.71
Euro	1	Rs.64.41

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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		30

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
-	NB	New Business	-

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.