MIRA INFORM REPORT

Report Date :

14.12.2011

IDENTIFICATION DETAILS

Name :	PATEL FURNACE AND FORGING PRIVATE LIMITED
Registered Office :	4/B, Pravasi Estate Veshweshwar Nagar, Goregaon East, Mumbai 400063, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.08.1984
Com. Reg. No.:	033841
Capital Investment / Paid-up Capital :	Rs. 2.000 millions
CIN No.: [Company Identification No.]	U05000MH1984PTC033841
TAN No.: [Tax Deduction & Collection Account No.]	MUMP05720B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture of Shot Blasting Machines
No. of Employees :	60 Approximately

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 100876
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.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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. Pravin
Designation :	Director
Contact No.:	91-9737061333
Date :	10.12.2011

LOCATIONS

Registered Office :	4/B, Pravasi Estate Veshweshwar Nagar, Goregaon East, Mumbai 400063, Maharashtra, India
Tel. No.:	91-22-28745525
Mobile No.:	91-9737061333 (Mr. Pravin)
Fax No.:	91-22-28741296
E-Mail :	patelf@dataone.in
Factory :	A/2-510, Makarpura, G.I.D.C., Vadodara 390010, Gujarat, India
Tel. No.:	91-265-2644864 / 2640406
Fax No.:	91-265-2643663

DIRECTORS

AS ON 16.08.2011

Name :	Ms. Nandini Patel
Designation :	Director
Date of Birth/Age :	18.05.1946
Date of Appointment :	25.08.1985
DIN No.:	00406307

OTHER DIRECTORSHIP

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U05000MH1984PTC033841	Patel Furnace And Forging Private Limited	Director	25/08/1985	25/08/1985	-	Active	NO

Name :	Mr. Pravin A Patel
Designation :	Director
Date of Birth/Age :	08.12.1939
Date of Appointment :	01.10.2006
DIN No.:	00406247

OTHER DIRECTORSHIP

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U05000MH1984PTC033841	Patel Furnace And Forging Private Limited	Director	01/10/2006	01/10/2006	-	Active	NO

Name :	Mr. Nipun P Patel
Designation :	Director
Date of Birth/Age :	08.05.1974
Date of Appointment :	21.04.1996
DIN No.:	00406279

OTHER DIRECTORSHIP

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U05000MH1984PTC033841	Patel Furnace And Forging Private Limited	Director	21/04/1996	21/04/1996	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 16.08.2011

Names of Preference Shareholders	No. of Shares
Pravin Patel	480
Nandini Patel	520
Total	1000

Names of Equity Shareholders	No. of Shares
Pravin Patel	5070
Nandini Patel	9230
Nipun Patel	5600
Kinnari Patel	100
Total	20000

AS ON 16.08.2011

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacture of Shot Blasting Machines
Products :	· Aluminum Casting Deburring Machine · Blast Rooms Plants · Ceramic Paver Blasting Equipments · Cylinder Shot Blast Machines · Door Hook Type Shot Blasting Machine · Pipe Blasting Equipment · Railway Shot Blasting Equipment Boogie · Rod Bar Shot Blasting Machines · Shot Blasting · Shot Peening Machines · Steel Mill Equipments Special Machines · Strip Cleaning Machine · Strip Shot Blast Machines · Structure Cleaning Machine · Swing Table Shot Blasting Machines · Wire Coil Shot Blasting Mac · Wire Mesh Shot Blasting Machines · Agriculture Farm Equipment · Contious Monorail Machine · Tumble Blast Machines · Y Type Hanger Machine · Manganese and Ni Hard Liners · Blast Wheel Spares · Shot Blasting Machine Spare · Shot Blasting wheel
Exports :
Products :	Machines
Countries :	Saudi Arabia, UAE, Australia, South Africa
Terms :
Selling :	L/C
Purchasing :	L/C

PRODUCTION STATUS

AS ON 31.03.2011

Particulars	Unit	Installed Capacity	Actual Production
Shot Blasting Machine	Nos.	125	117

GENERAL INFORMATION

Customers :	· Wholesalers · Retailers
No. of Employees :	60 Approximately
Bankers :	Bank of India, Alkapuri Branch, 45, Gautam Nagar Society, Race Course Circle, Vadodara 390007, Gujarat, India
Facilities :	--

Banking Relations :	--
Auditors :
Name :	V R Shah and Associates Chartered Accountant
Address :	12-Dhayber Colony, B/H Baroda High School, Near Polo Ground, Vadodara 390001, Gujarat, India
Associates Concern :	· Nipun Alloy Industries · N K Industries · Pranan Engineering Industries

CAPITAL STRUCTURE

AS ON 16.08.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
47500	Equity Shares	Rs. 100 each	Rs.4.750 millions
2500	Preference Shares	Rs. 100 each	Rs. 0.250 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000	Equity Shares	Rs. 100 each	Rs. 2.000 millions
1000	Preference Shares	Rs. 100 each	Rs. 0.100 million

FINANCIAL DATA

[all figures are in Rupees Millions]

Expected Sales (2011-2012) : Rs.150.000 millions

The above information has been parted by Mr. Pravin

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		2.100	2.100	2.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		23.119	17.395	12.253
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		25.219	19.495	14.353
LOAN FUNDS
1] Secured Loans		7.989	10.158	6.052
2] Unsecured Loans		3.877	0.000	3.746
TOTAL BORROWING		11.866	10.158	9.798
DEFERRED TAX LIABILITIES		0.881	0.808	0.771
TOTAL		37.966	30.461	24.922
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		12.537	11.607	10.571
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.060	0.210	0.212
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9.001	6.925	5.023
	Sundry Debtors	5.647	5.824	3.793
	Cash & Bank Balances	41.478	30.429	21.908
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	5.197	4.875	5.696
Total Current Assets		61.323	48.053	36.420
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	32.214	26.086	18.612
	Provisions	3.740	3.323	3.669
Total Current Liabilities		35.954	29.409	22.281
Net Current Assets		25.369	18.644	14.139
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		37.966	30.461	24.922

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2011	31.03.2010
SALES	124.828	94.610
EXPENSES	116.283	87.018
PROFIT BEFORE TAX	8.545	7.592
PROFIT AFTER TAX	5.737	5.155
EARNINGS IN FOREIGN CURRENCY	17.259	9.070
Earnings Per Share (Rs.)	319.77	257.77

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	NA	NA
Net Profit Margin (PBT/Sales)	(%)	6.84	8.02	NA
Return on Total Assets (PBT/Total Assets}	(%)	11.56	12.72	NA
Return on Investment (ROI) (PBT/Networth)		0.33	0.38	NA
Debt Equity Ratio (Total Liability/Networth)		1.93	2.07	2.28
Current Ratio (Current Asset/Current Liability)		1.70	1.63	1.63

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL RESULTS

The year under review was continued to be good for the Company. Sales and other Income have increase by 31.94% as compared the previous year. However, due to recession in domestic as well as export market, the sales prices of company's product were remained under pressure. Moreover, the increase in Steel price, a basic Raw material has affected the profitability of the company. In spite of various odds, the management efforts for cost control in various cost centers have resulted in maintaining profitability of the company.

FUTURE PROSPECTS:

The buoyancy and upward trend witnessed in the Forging Industries continues unabated in the year too. The industry observed significant upswing in both domestic as well as International Market. The company has been securing numbers of orders from various giant companies. Marketing team is well strengthen with all types of Data Bank. They are fetching good amount of business from market. The Company has secured orders from Ordnance Factory (Defense) and expect of the order from COFMOW (Railway). Company is also looking for exports possibilities of marketing Shot Blasting Machines in Middle East countries, Sri Lanka, Dubai, etc. Considering good future market of products of the company and barring unforeseen circumstances, result of current year will be good.

FORM 8

Corporate identity number of the company	U05000MH1984PTC033841
Name of the company	PATEL FURNACE AND FORGING PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	4/B, Pravasi Estate Veshweshwar Nagar, Goregaon East, Mumbai 400063, Maharashtra, India
This form is for	Modification of charge
Type of charge	Immovable property
Particular of charge holder	Bank of India, Alkapuri Branch, 45, Gautam Nagar Society, Race Course Circle, Vadodara 390007, Gujarat, India Email: Alkapuri.Vadodara@bankofindia.co.in
Nature of instrument creating charge	Supplemental Memorandum of Deposit of title deeds
Date of instrument Creating the charge	07.06.2011
Amount secured by the charge	Rs. 28.450 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest TL @ 3.50% over BR plus tenor premium of 0.75 present effective rate14.25% with monthly rest. Terms of repayment TL in 58 monthly installments of Rs. 0.059 million from September 2011 CC - On Demand Margin TL @ 20.41% Extent and operation of the charge First and Exclusive charge in favour of Bank of India Other Term Loan - Rs. 3.450 millions CC - Stock - Rs. 8.000 millions CC - BDs - Rs. 2.000 millions EPC - Rs. 5.000 millions FBP / FBN - Rs. 5.000 millions Maxi. EPC and FBP/FBN - Rs. 5.000 millions Guarantee (NFB) - Rs. 10.000 millions Total...... Rs. 28.450 millions
Short particulars of the property charged (Including location of the property)	All piece and parcel of land being plot no. A2-510 situated in GIDC Industrial Estate, Makarpura, Vadodara admeasuring 3921.56 Sq. mtrs. bearing R S No. 128/P and 129/P.
Date of instrument modifying the charge	08.05.2008
Particulars of the present modification	Under this modification total amount of charge is Rs. 28.450 millions divided as under: Term Loan - Rs. 3.450 millions CC - Stock - Rs. 8.000 millions CC - BDs - Rs. 2.000 millions EPC - Rs. 5.000 millions FBP / FBN - Rs. 5.000 millions Maxi. EPC and FBP/FBN - Rs. 5.000 millions Guarantee (NFB) - Rs. 10.000 millions Total...... Rs. 28.450 millions

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter's background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	--
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	--
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

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.53.40
UK Pound	1	Rs.83.32
Euro	1	Rs.70.44

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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		49

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.