MIRA INFORM REPORT

Report Date :

29.04.2011

Note:

The Given address could not be confirmed

IDENTIFICATION DETAILS

Name :	DROPCO MULTILUB SYSTEMS PRIVATE LIMITED
Registered Office :	O 89/1 Gandhi Nagar Oppraitlway Sgtation N H 5, Railway Road, Faridabad – 121001, Haryana
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	16.11.2000
Com. Reg. No.:	05-034578
CIN No.: [Company Identification No.]	U74999HR2000PTC034578
TAN No.: [Tax Deduction & Collection Account No.]	RTKD02225G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of lubricating systems for oil and grease and allied products

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 10000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, 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 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 DENIED BY

Name :	Mr. J. L Gulati
Designation :	Director
Date :	27.04.2011

LOCATIONS

Registered Office :	O 89/1 Gandhi Nagar Oppraitlway Sgtation N H 5, Railway Road, Faridabad – 121001, Haryana, India
E-Mail :	khandelwalmalhotra@gmail.com

DIRECTORS

As On 30.09.2010

Name :	Mr. Jawahar Lal Gulati
Designation :	Director
Address :	O 89/1 Gandhi Nagar Oppraitlway Sgtation N H 5, Railway Road, Faridabad – 121001, Haryana, India
Date of Birth/Age :	20.09.1955
Date of Appointment :	16.11.2000
DIN No.:	01237953
Name :	Mr. Rajender Kumar Gulati
Designation :	Director
Address :	O 89/1 Gandhi Nagar Oppraitlway Sgtation N H 5, Railway Road, Faridabad – 121001, Haryana, India
Date of Birth/Age :	05.10.1966
Date of Appointment :	16.11.2000
DIN No.:	00299904

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 30.09.2010

Names of Shareholders	No. of Shares
J.L.Gulati	64550
R.K.Gulati	10000
Sriniwas Leasing and Finance Private Limited – India	5000
Amit Gulati	1800
Ankit Verma	10
Archana Gulati	40
Ashok Kumar	50
Garima Gulati	300
Jawahar Lal Gulati HUF	400
Jyoti Gulati	300
R.K.Gulati HUF	400
U.L.Gulati	400
Gunwanti Bai	400
Total	83650

As On 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of lubricating systems for oil and grease and allied products
Products :	Hand Operated Piston Pumps for Oil Motorized Lubrication Units (Single Phase / Three Phase) Grease Lubrication Systems (Manual / Air Operated / Motorized) Dual Line Grease Lubricators with Control Panel Air-Oil Mist Lubrication Systems Electronic Lubrication Timers / Controllers Oil Circulating Systems Lubrication Accessories Spares.

GENERAL INFORMATION

Bankers :	Punjab National Bank – NIT, Faribabad – 121001, Haryana, India
Facilities :	--

Banking Relations :	--
Auditors :
Name :	Malhotra Khandelwal and Company Chartered Accountant
Address :	E-205, Basement Greater Kailash, Part II, New Delhi – 110048, Delhi, India
Pan No.:	AABFM1846P
Memberships :	National Small Industries Corporation (N.S.I.C) Small Scale Industries (S.S.I) Exim International Trade Consultants (E.I.T.C)

CAPITAL STRUCTURE

As On 30.09.2010

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
83650	Equity Shares	Rs. 10/- each	Rs. 0.837 Million

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		0.837	0.837	0.837
2] Share Application Money		0.001	0.001	0.001
3] Reserves & Surplus		1.756	1.455	1.380
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2.594	2.293	2.218
LOAN FUNDS
1] Secured Loans		4.327	5.087	4.885
2] Unsecured Loans		4.607	6.202	5.731
TOTAL BORROWING		8.934	11.289	10.616
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		11.528	13.582	12.834
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.453	6.196	5.372
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.371	0.344	0.276
DEFERREX TAX ASSETS		0.124	0.072	0.018
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.830	9.813	9.885
	Sundry Debtors	9.506	10.376	9.752
	Cash & Bank Balances	0.043	0.031	0.192
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.626	0.741	0.910
Total Current Assets		16.005	20.961	20.739
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	10.404	13.794	13.360
	Provisions	0.024	0.201	0.216
Total Current Liabilities		10.428	13.995	13.576
Net Current Assets		5.577	6.966	7.163
MISCELLANEOUS EXPENSES		0.003	0.004	0.005
TOTAL		11.528	13.582	12.834

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income
		Other Income
		TOTAL	17.382	15.540
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		Interest
		Deprecation			NA
		TOTAL	17.110	15.328
	PROFIT BEFORE TAX		0.272	0.212
Less	TAX		(0.031)	0.148
	PROFIT AFTER TAX		0.303	0.064
	Earnings Per Share (Rs.)		4.00	1.00

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.74	0.41	NA
Return on Total Assets (PBT/Total Assets}	(%)	1.27	0.78	NA
Return on Investment (ROI) (PBT/Networth)		0.10	0.09	NA
Debt Equity Ratio (Total Liability/Networth)		7.46	11.03	10.91
Current Ratio (Current Asset/Current Liability)		1.53	1.50	1.53

LOCAL AGENCY FURTHER INFORMATION

Form 8:

This form is for

Modification of charge

Charge identification number of the modified

80017734

Corporate identity number of the company

U74999HR2000PTC034578

Name of the company

DROPCO MULTILVB SYSTEMS PRIVATE LIMTIED

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

O 89/1 Gandhi Nagar Oppraitlway Sgtation N H 5 Railway Road 110001, Haryana, India

Type of charge

Book Debts

Movable Property

Particular of charge holder

Name :	Punjab National Bank
Address :	NIT, Faribabad – 121001, Haryana, India
Email :	cs.faridabad@gmail.com

Nature of description of the instrument creating or modifying the charge

Hypothecation agreement for current assets

Date of instrument Creating the charge

01.02.2007

Amount secured by the charge

Rs. 46.000 Millions

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

Rate of Interest - BPLR+1.50% p.a monthly comounding basis

Terms of Repayment - Since it is an overdraft facility, so there will be no repayment.

Extent and Operation of the charge - present and future stock of raw materials, work in progress, finished goods, consumable stores and spares and book debts.

Short particulars of the property charged

Present and future stock of raw materials, work in progress, finished goods, consumable stores and spares and book debts.

Fixed Assets:

• Air condition
• Building
• Calculator
• Car
• Computer
• Cycle
• EPBAX
• Electrical equipment
• Fan
• Fax machine
• Fire equipment
• Furniture and fixture
• Generator
• Invertor
• Motor cycle
• Measuring instrument
• Mobile
• Office equipment
• Pattern
• Plant and machinery
• Scooter
• Television
• Tools and dies
• Water cooler
• Welding set
• Weighting scale
• Photostate M/c

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.44.33
UK Pound	1	Rs.74.13
Euro	1	Rs.65.78

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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		29

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.