MIRA INFORM REPORT

Report Date :

18.08.2011

IDENTIFICATION DETAILS

Name :	SELVEL CONVEYORS PRIVATE LIMITED
Registered Office :	901, Aavishkar, Near Irla Bridge, S.V. Road, Andheri (West), Mumbai – 400 058, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	10.11.1999
Com. Reg. No.:	11-122608
Paid-Up Capital :	Rs. 17.443 Millions
CIN No.: [Company Identification No.]	U74999MH1999PTC122608
TAN No.: [Tax Deduction & Collection Account No.]	MUMS39438A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Fabricators of Material Handling Equipment.
No. of Employees :	55 (approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 520000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for 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.

INFORMATION PARTED BY

Name :	Ms. Deepali
Designation :	Accounts Department
Date :	17.08.2011

LOCATIONS

Registered Office :	901, Aavishkar, Near Irla Bridge, S.V. Road, Andheri (West), Mumbai – 400 058, Maharashtra, India
Tel. No.:	91-22-26251753
Fax No.:	Not Available
E-Mail :	selvel@bom4.vsnl.net.in deepali@selvelconveryors.com jigar.shah@selvelconveyors.com
Website :	www.selvelconveyors.com
Location :	Owned
Factory :	Selvel House, Plot No. 5/6, Gokhiware, Valiv Road, Vasai East, Thane – 401208, Maharashtra, India
Tel. No.:	91-250-2452373/2453708/2453710/2453712
Fax No.:	91-250-2452441

DIRECTORS

As on 30.09.2010

Name :	Mr. Niraj Mahendrakumar Shah
Designation :	Director
Address :	901, Aavishkar, Near Irla Bridge, S.V. Road, Andheri (West), Mumbai – 400 058, Maharashtra, India
Date of Birth/Age :	14.05.1976
Qualification :	Diploma in Mechanical Engineering
Date of Appointment :	10.11.1999
DIN No.:	00422919
Name :	Mr. Mahendrakumar Nathalal Shah
Designation :	Director
Address :	901, Aavishkar, Near Irla Bridge, S.V. Road, Andheri (West), Mumbai – 400 058, Maharashtra, India
Date of Birth/Age :	03.07.1946
Qualification :	B.E. Mechanical and Electrical
Date of Appointment :	10.11.1999
DIN No.:	00422925
Name :	Mr. Jigar Mahendrakumar Shah
Designation :	Director
Address :	901, Aavishkar, Near Irla Bridge, S.V. Road, Andheri (West), Mumbai – 400 058, Maharashtra, India
Date of Birth/Age :	28.11.1974
Qualification :	Diploma in Production Engineering
Date of Appointment :	10.11.1999
DIN No.:	01816060

KEY EXECUTIVES

Name :	Ms. Deepali
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Mahendrakumar Nathalal Shah	1634000
Jigar Mahendrakumar Shah	57850
Niraj Mahendrakumar Shah	31000
Monica Apurva Shah	15600
Sheetal Jigar Shah	3600
Hansaben Mahendrakumar Shah	2200
Total	1744250

As on 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers and Fabricators of Material Handling Equipment.
Exports :
Products :	· Equipments
Countries :	· Bangladesh · Singapore
Imports :
Products :	· Raw material and machinery
Countries :	· Italy
Terms :
Selling :	L/C, Cash and Credit: 30/60 Days
Purchasing :	L/C, Cash and Credit: 30/60 Days

GENERAL INFORMATION

Customers :

· Manufacturer

No. of Employees :

55 (approximately)

Bankers :

· HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Patel (West), Mumbai – 400 013, Maharashtra, India

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Working Capital Loans Working Capital facility availed as Cash Credit is secured by hypothecation stocks and book debts and personal guarantee of the Directors	5.214	5.580
Vehicles Loans Secured against hypothecation of motor car, Innova and Honda Civic and personal guarantee of the directors	1.394	0.491
Total	6.608	6.071

Banking Relations :	--
Auditors :
Name :	Mr. Manish Shah (Kashyap Umesh and Associates) Chartered Accountants
Address :	28, Devprayag, Veera Desai Road, Andheri (West), Mumbai – 400053, Maharashtra, India
Tel. No.:	91-22-66372810/28891468/26248715
E-Mail :	kuapartners@gmail.com
Pan No.:	AAHFK5100G
Associates :	Selvel Estate Private Limited

CAPITAL STRUCTURE

As On 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1744250	Equity Shares	Rs.10/- each	Rs.17.443 millions

Note:

Of the above 1744250 equity shares of Rs.10 each allotted as fully paid up pursuant to take over of running business of proprietory concern. M/s. Selvel Conveyors on 17.08.2003 with all its assets and liabilities as going concern without payment being received in cash.

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		17.443	19.180	19.180
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		112.975	101.326	66.265
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		130.418	120.506	85.445
LOAN FUNDS
1] Secured Loans		6.608	6.071	3.325
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		6.608	6.071	3.325
DEFERRED TAX LIABILITIES		0.000	0.079	0.005
TOTAL		137.026	126.656	88.775
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		24.049	25.159	27.963
Capital work-in-progress		0.663	0.000	0.000
INVESTMENT		76.802	61.764	28.185
DEFERREX TAX ASSETS		0.156	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	13.699	16.022	27.910
	Sundry Debtors	35.044	39.463	49.175
	Cash & Bank Balances	3.455	1.648	3.058
	Other Current Assets	0.370	1.376	0.091
	Loans & Advances	65.468	60.450	37.718
Total Current Assets		118.036	118.959	117.952
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	18.514	14.719	24.378
	Other Current Liabilities	9.323	10.643	27.962
	Provisions	54.843	53.864	32.985
Total Current Liabilities		82.680	79.226	85.325
Net Current Assets		35.356	39.733	32.627
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		137.026	126.656	88.775

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income			NA
		Other Income
		TOTAL	186.789	230.166	NA
Less	EXPENSES
		Office Expenses			NA
		Administrative Expenses
		Advertising Expenses
		Financial Expenses
		TOTAL	138.100	166.580	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		48.689	63.586	NA
Less/ Add	DEPRECIATION/ AMORTISATION		3.294	3.773	NA
	PROFIT BEFORE TAX		45.395	59.813	NA
Less	TAX		15.100	21.468	NA
	PROFIT AFTER TAX		30.295	38.345	31.344
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	6.368	0.534	2.717
	TOTAL EARNINGS		6.368	0.534	2.717
	IMPORTS
		Raw Materials	30.465	29.756	30.487
	TOTAL IMPORTS		30.465	29.756	30.487
	Earnings Per Share (Rs.)		15.92	19.99	16.34

Particulars	31.03.2011
Sales Turnover (approximately)	220.000

The above information has been parted by Ms. Deepali (Accounts Department)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	16.22	16.66	NA
Return on Total Assets (PBT/Total Assets}	(%)	31.95	11.71	NA
Return on Investment (ROI) (PBT/Networth)		0.35	0.14	NA
Debt Equity Ratio (Total Liability/Networth)		0.68	0.71	1.04
Current Ratio (Current Asset/Current Liability)		1.43	1.50	1.38

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

(Rs. in millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors
- Dues to Micro, Small and Medium Enterprises	--	--	--
- Others	18.514	14.719	24.378
Total	18.514	14.719	24.378

FINANCIAL RESULTS:

During the year the company has achieved total income of Rs.186.789 millions and earned profit of Rs.30.295 millions after providing provision for Depreciation for Rs.3.294 millions and provision for current years taxation of Rs.15.100 millions, adjusting deferred tax credit of Rs. 0.235 millions and adjusting short provision of taxation of Rs. 0.585 million

Contingent Liability in respect of:

(a) Bank Guarantee of Rs.7.452 millions (Previous year Rs. 3.731 millions)

(b) Excise Duty along with penalty of Rs. 0.267 million (Previous Year Rs.0.267 million) Pending with Customs, Excise and Service Tax Appellate Tribunal

(c) Income-tax of Rs.0.629 million (Previous Year Rs.0.629 million) pending with Income Tax Appellate Tribunal.

(d) Income-tax of Rs.0.294 million (Previous Year Rs. Nil) pending with Assessing Officer. The order has been passed by the Commissioner of Income-tax (Appeals). The case referred by Commissioner of Income-tax (Appeals) to Assessing Officer for re-computing the tax payable.

Form 8:

This form is for	Modification of charge
Charge identification number of the modified	90144958
Corporate identity number of the company	U74999MH1999PTC122608
Name of the company	SELVEL CONVEYORS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	901, Aavishkar, Near Irla Bridge, S.V. Road, Andheri (West), Mumbai – 400 058, Maharashtra, India
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	CIN No.: L65920MH1994PLC080618 HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Patel (West), Mumbai – 400 013, Maharashtra, India E-Mail: RBBform8@hdfcbank.com
Nature of description of the instrument creating or modifying the charge	Supplemental memorandum relating to Hypothecation of Stocks, Book-Debts and Machinery.
Date of instrument Creating the charge	12.10.2007
Amount secured by the charge	Rs.31.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest at the rate as may be communicated by the Bank from time to time. Terms of Repayment: On Demand Margin: Borrower shall at all times during the continuance of this security maintain the said debts of a sufficient amount to provide the margin of security as may from time to time advised by the Bank. Extent and Operation of the charge: Hypothecation by way of First Charge on Company's Stocks, Book Debts and Machinery etc. to secure as a Continuing Security for repayment of monies due and payable by the borrower to the Bank.
Short particulars of the property charged	Hypothecation first charge over the Stocks, Book debts and Machinery.
Date of latest modification prior to the present modification	10.02.2004
Particulars of the present modification	The bank having at the request of Company has agreed to sanctioned Additional Credit Facility stand increased from Rs.21.000 millions to Rs.31.000 millions.

FIXED ASSETS:

· Land

· Building

· Lift

· Plant and Machineries

· Furniture and Fixtures

· Vehicles

· Computers

· Technical Know-How and Designs

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.45.37
UK Pound	1	Rs.74.56
Euro	1	Rs.65.34

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	YES
--AFFILIATION	YES/NO	YES
--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	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.