MIRA INFORM REPORT

Report Date :

24.12.2011

IDENTIFICATION DETAILS

Name :	E.G. KANTAWALA PRIVATE LIMITED
Registered Office :	Survey No.28/1, OLF Nagar, Mundhawa Road, Damodar Nagar, Off Nagar Road, Kharadi, Pune – 411014, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	16.11.1995
Com. Reg. No.:	11-014420
Capital Investment / Paid-up Capital :	Rs.2.500 Millions
CIN No.: [Company Identification No.]	U29299PN1995PTC014420
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Weighing Solutions.
No. of Employees :	120 (Approximately)

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 80000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Profitability of the company us under pressure. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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 :	Ms. Jasica
Designation :	Key Executive
Contact No.:	91-20-30418100
Date :	15.12.2011

LOCATIONS

Registered Office/ Factory :	Survey No.28/1, OLF Nagar, Mundhawa Road, Damodar Nagar, Off Nagar Road, Kharadi, Pune – 411014, Maharashtra, India
Tel. No.:	91-20-30418100/ 30418123
Fax No.:	91-20-30418126
E-Mail :	accounts@egkantawalla.com sales@egkantawalla.com amd_cs@rediffmail.com
Website :	http://www.egkantawalla.com
Location :	Owned

DIRECTORS

(AS ON 30.09.2011)

Name :

Mr. Nooruddin Abbas Kantawalla

Designation :

Managing Director

Address :

Flat No1001, Green Valley Society, Wanawadi, Pune – 411040, Maharashtra, India

Date of Birth/Age :

19.06.1966

Date of Appointment :

29.03.1997

DIN No.:

00745900

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U29196MH1995PTC094513	E.G.KANTAWALLA PRIVATE LIMITED	Managing director	29/03/1997	29/03/1997	Active	YES
2	U29299PN1995PTC014420	E.G. KANTAWALA PRIVATE LIMITED	Managing director	29/03/1997	29/03/1997	Active	NO
3	U32109MH1993PTC075406	EAGLE DIGITAL SCALES PRIVATE LIMITED	Additional director	1/9/2010	1/9/2010	Strike off	NO

Name :

Mr. Saifee Fakhruddin Kantawalla

Designation :

Additional Director

Address :

Natraj Enclave, B-42, Near Tatya Tope Bunglow, Wanawad, Pune – 411040, Maharashtra, India

Date of Birth/Age :

10.05.1955

Date of Appointment :

24.02.1997

DIN No.:

03386447

KEY EXECUTIVES

Name :	Ms. Jasica
Designation :	Key Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Moazzam Nooruddin Kantawalla	212500
Nooruddin Abbas Kantawalla	37500
Total	250000

(AS ON 30.09.2011)

Equity Shares Break – Up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Weighing Solutions.
Exports :
Products :	Weighing Solutions
Countries :	Germany
Imports :
Products :	Weighing scales
Countries :	· England · France · Germany
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Retailers, End Users and Manufacturing Company

No. of Employees :

120 (Approximately)

Bankers :

· ICICI Bank Limited

Landmark Race Cource Circle, Alkapuri, Baroda – 390015, Gujarat, India

· Union Bank of India

·

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
ICICI Bank, Pune (Secured against Hypothecation of Motor Cars)	0.000	0.295
UBI Bank, Pune (Secured against Hypothecation of Motor Cars)	0.184	0.316
Union Bank of India (Secured against Hypothecation of Current Assets including Stock, Book Debts etc.)	8.914	4.642
ICICI Bank Property Loan (secured against Hypothecation of Gera Office)	0.455	1.836
UBI Generator Loan (Secured against hypothecation of Generator)	0.516	0.000
Total	10.069	7.089
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
M. A. Kantawalla	0.729	1.272
M N Kantawalla	1.832	1.847
F N Goojwalla	0.285	0.000
Munira Kantawalla	0.943	0.000
Total	3.789	3.119

Banking Relations :	--
Auditors :
Name :	V. K. Gujrathi and Company Chartered Accountant
Address :	Poonam Plaza Office No.402/3/4, Market Yard Road, Pune – 411037, Maharashtra, India
PAN No.:	ABWPG0446M
Associates/Subsidiaries :	· Sun Yarn (Private) Limited, Silvassa

CAPITAL STRUCTURE

(AS ON 30.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Share	Rs.10/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
250000	Equity Share	Rs.10/- each	Rs.2.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		2.500	0.500	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		17.291	18.158	18.187
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		19.791	18.658	18.687
LOAN FUNDS
1] Secured Loans		10.069	7.089	9.281
2] Unsecured Loans		3.789	3.119	1.450
TOTAL BORROWING		13.858	10.208	10.731
DEFERRED TAX LIABILITIES		0.086	1.918	1.492
TOTAL		33.735	30.784	30.910
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.648	7.977	16.234
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		8.860	10.224	2.059
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	24.972	13.975	12.234
	Sundry Debtors	4.764	0.091	1.183
	Cash & Bank Balances	0.470	0.229	0.465
	Other Current Assets	1.401	1.879	1.887
	Loans & Advances	3.831	3.408	3.665
Total Current Assets		35.438	19.582	19.434
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	14.766	3.758	4.138
	Other Current Liabilities	0.305	0.428	2.679
	Provisions	4.140	2.813	0.000
Total Current Liabilities		19.211	6.999	6.817
Net Current Assets		16.227	12.583	12.617
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		33.735	30.784	30.910

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	74.488	64.178	69.079
		Other Income	2.489	NA	NA
		TOTAL	76.977	NA	NA
Less	EXPENSES
		Cost of Sales	41.889	NA	NA
		Sales and Administrative Expenses	34.357	NA	NA
		TOTAL	76.246	NA	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		0.731	3.591	2.912
Less	FINANCIAL EXPENSES		1.350	1.085	1.443
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		(0.619)	2.506	1.469
Less/ Add	DEPRECIATION/ AMORTISATION		2.014	2.109	2.304
	PROFIT BEFORE TAX		(2.633)	0.397	(0.835)
Less	TAX		(0.024)	(0.426)	0.000
	PROFIT AFTER TAX		(2.657)	(0.029)	(0.835)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		18.158	18.187	19.022
Less	APPROPRIATIONS		(1.790)	0.000	0.000
	BALANCE CARRIED TO THE B/S		17.291	18.158	18.187
	IMPORTS
		Raw Materials	NA	18.608	18.608
	TOTAL IMPORTS		NA	18.608	18.608
	Earnings Per Share (Rs.)		(10.63)	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(3.45)	NA	NA
Net Profit Margin (PBT/Sales)	(%)	(3.53)	0.62	(1.21)
Return on Total Assets (PBT/Total Assets}	(%)	(5.97)	1.44	(2.34)
Return on Investment (ROI) (PBT/Networth)		(0.13)	0.02	(0.04)
Debt Equity Ratio (Total Liability/Networth)		1.67	0.92	0.94
Current Ratio (Current Asset/Current Liability)		1.84	2.80	2.85

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	-----
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last three years	Yes
Profitability for last three years	No
Reasons for variation <> 20%	No
Estimation for coming financial year	No
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payments Terms	Yes
Export/ Imports Details (If applicable)	Yes
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	No
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	No
Incorporation details is applicable	-----
Last Accounts filed at ROC	-----
Major Shareholders, if available	-----

FORM 8:

Corporate identity number of the company	U29299PN1995PTC014420
Name of the company	EG KANTAWALA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Survey No. 28/1, OLF Nagar, Mundhawa Road, Damodar Nagar, Off Nagar Road, Kharadi, Pune – 411014, Maharashtra, India accounts@egkantawalla.com
This form is for	Creation of charge
Type of charge	Immovable property Any interest in immovable property
Particular of charge holder	ICICI Bank Limited Landmarkrace Cource Circle, Alkapuri, Baroda – 390015, Gujarat, India vivek.naladkar@icicibank.com
Nature of instrument creating charge	1) Memorandum of entry dated 1st October, 2011 2) Exclusive mortgage by deposit of title deeds dated 1st October, 2011 both these documents create a single charge
Date of instrument Creating the charge	01.10.2011
Amount secured by the charge	Rs.10.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: Base as publicly notified from time to time + Margin of 2.75% = 12.75%p.a. (10%+2.75%) or as applicable at the time of disbursement. (floating rate of interest) Terms of repayment: 120 EMI (10 years) of Rs.0.148 Million Margin: NA Extent and Operation of the charge: Exclusive first charge on the immovable property situated at Office No. 204, PT Gera Center, 2nd Floor, CTS No. 13, F, Plot No. 168, ADM 1960 sq. ft., Dhole Patil Road, Camp, Pune and any other interest in this property. Others: Guarantee to be provided by the directors of the company.
Particulars of the property charged	Office No. 204, Pt Gera Center, 2nd Floor, CTS No. 13, F, Plot No. 168, Adm 1960 sq. ft., Dhole Patil Road, Camp, Pune. together with all the buildings and structures thereon, Fixtures, fittings.

FIXED ASSETS:

· Plant and Machinery

· Building

· Computers and Software

· Office Equipment

· Vehicles

· Furniture and Fixtures

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.52.78
UK Pound	1	Rs.82.73
Euro	1	Rs.68.87

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	YES
--AFFILIATION	YES/NO	YES
--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.