MIRA INFORM REPORT

Report Date :

17.02.2011

IDENTIFICATION DETAILS

Name :	BALAJI SAFETY GLASS (INDIA) PRIVATE LIMITED (w.e.f. 20.12.2004)

Formerly Known As :	BALAJI SECURE GLASS INDIA PRIVATE LIMITED

Registered Office :	Survey No. 12, Byagadafenahalli, Chandapura, Anekal Road, Anekal, Bangalore-562106, Karnataka

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	26.05.2003

Com. Reg. No.:	80-031990

CIN No.: [Company Identification No.]	U26101KA2003PTC031990

TAN No.: [Tax Deduction & Collection Account No.]	BLRB05452G

PAN No.: [Permanent Account No.]	AACCB4013H

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer of Decorative Glass, Industrial Laminated Glass, Laminated Safety Glass, Plain Glass, toughened Glass.

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 690000

Status :	Satisfactory

Payment Behaviour :	Usually correct

Litigation :	Clear

Comments :	Subject is a well 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 – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

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. Balaji Kondiala
Designation :	Director
Contact No.:	91-9739980817
Date :	16.02.2011

LOCATIONS

Registered Office/ Factory :	Survey No. 12, Byagadafenahalli, Chandapura, Anekal Road, Anekal, Bangalore-562106, Karnataka, India
Tel. No.:	91-80-27827678
Mobile No.:	91-9739980817 (Mr. Balaji Kondiala)
Fax No.:	91-80-27827681
E-Mail :	marketing@bsg.co.in nagarajugl@yahoo.com balajisafetyglass@yahoo.com
Website :	http://www.bsg.co.in
Area :	10000 sq. ft. (Owned)

Marketing Office:	3^rd Floor, SRNG Complex, OTC Road, Nagarthpet, Bangalore-560002, Karnataka, India
Tel. No.:	91-80-41302277
Fax No.:	91-80-41156781

DIRECTORS

AS ON 27.09.2010

Name :	Mr. Balaji Kondiala
Designation :	Director
Address :	18-30, 3^rd Cross, 18^th Main, BTM 2^nd Stage, Bangalore-560076, Karnataka, India
Date of Birth/Age :	04.06.1965
Date of Appointment :	23.04.2004

Name :	Mr. Prahlada Vinutha
Designation :	Director
Address :	18-30, 3^rd Cross, 18^th Main, BTM 2^nd Stage, Bangalore-560076, Karnataka, India
Date of Birth/Age :	26.11.1967
Date of Appointment :	11.04.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2010

Names of Shareholders		No. of Shares
Balaji Kondiala		2200355
Prahlada Vinutha		914571
Tumati Prahlad Naidu		216556
Muniswamy Santha Kumari		198012
Vishnu Kommini		175000
Varsha Balaji Kondiala		175000
Vandana Balaji Kondiala		175000

Total		4054494

AS ON 27.09.2010

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		76.82
Other		23.18
Total		100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Decorative Glass, Industrial Laminated Glass, Laminated Safety Glass, Plain Glass, toughened Glass.

Terms :
Selling :	Cash and Credit (30 days / 60 days / 90 days)

Purchasing :	Cash and Credit (30 days / 60 days / 90 days)

PRODUCTION STATUS (AS ON 31.03.2010)

Licensed Capacity	305520 Sq. Mtrs.
Installed Capacity	305520 Sq. Mtrs.
Actual Production	202969 Sq. Mtrs.

GENERAL INFORMATION

Customers :

End Users and OEM’s

No. of Employees :

50 (Approximately)

Bankers :

Yes Bank Limited, 9^th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai-400018, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. In Millions)	As on 31.03.2009 (Rs. In Millions)
Bank over draft SBI (Is primarily secured by hypothecation of stocks in trade and bills receivable of the company with additional collaterally security of all immovable properties and on personal guarantees of the directors)	31.914	40.126
SBI Term Loan I (A/c No. 10207076584) (Is primarily secured by the factory land and factory building of the company and immovable properties of the directors with additional collaterally security of all immovable properties and on personal guarantee of the company)	0.000	17.206
SBI Term Loan II – 30180335628 (Is primarily secured by the factory building of the company and immovable properties of the directors with additional collaterally security of all immovable properties and on personal guarantee of the directors)	11.211	13.745
ICICI Bank Vehicle loan (secured by hypothecation of vehicle)	3.850	0.925
HDFC Bank Tata Indica Loan (Secured by hypothecation of vehicle)	0.000	0.126
ABN Amro Bank (Crane Laon (Secured by hypothecation of crane)	0.000	0.006
Total	46.975	72.134


Banking Relations :	--

Auditors :
Name :	C. Venkatesulu Chartered Accountant
Address :	# 391, 9^th Cross, 2^nd Block, Jayanagar, Bangalore-560011, Karnataka, India
Tel. No.:	91-80-26568611
Fax No.:	91-80-26568611
E-Mail :	evenkatesulufca@gmail.com

CAPITAL STRUCTURE

AS ON 27.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4054494	Equity Shares	Rs.10/- each	Rs.40.545 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		40.545	40.545	21.020
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		133.750	129.633	136.558
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		174.295	170.178	157.578
LOAN FUNDS
1] Secured Loans		46.975	72.134	69.418
2] Unsecured Loans		10.183	0.700	0.000
TOTAL BORROWING		57.158	72.834	69.418
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		231.453	243.012	226.996

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		192.295	192.860	191.772
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		3.232	5.130	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	15.225	15.018	15.801
	Sundry Debtors	52.817	57.747	36.502
	Cash & Bank Balances	0.196	0.180	0.110
	Other Current Assets	0.644	1.350	7.623
	Loans & Advances	9.122	10.596	8.695
Total Current Assets		78.004	84.891	68.731
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	30.933	26.062
	Other Current Liabilities	6.220	5.274	33.558
	Provisions	4.925	8.559	0.000
Total Current Liabilities		42.078	39.895	33.558
Net Current Assets		35.926	44.996	35.173

MISCELLANEOUS EXPENSES		0.000	0.026	0.051

TOTAL		231.453	243.012	226.996

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	198.312	221.500	169.941
		Other Income	0.119	0.174	NA
		TOTAL (A)	198.431	221.674	NA

Less	EXPENSES
		Manufacturing expenses	132.828	151.683
		Employees remuneration and benefits	17.089	13.836
		Administration and other expenses	15.355	14.056	NA
		Miscellaneous expenses written off	0.026	0.026
			165.298	179.601
		Accretion/ decrease in stock	(0.195)	(0.353)
		TOTAL (B)	165.103	179.248	NA

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		33.328	42.426	NA

Less	FINANCIAL EXPENSES (D)		9.895	10.950	NA

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		23.433	31.476	NA

Less/ Add	DEPRECIATION/ AMORTISATION (F)		17.966	17.323	NA

	PROFIT BEFORE TAX (E-F) (G)		5.467	14.153	8.814

Less	TAX (H)		1.351	5.312	NA

	PROFIT AFTER TAX (G-H) (I)		4.116	8.841	NA

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.000	0.000	NA

	BALANCE CARRIED TO THE B/S		4.116	8.841	NA

	IMPORTS
		Raw Materials	10.186	NA	NA
		Capital Goods	3.821	NA	NA
	TOTAL IMPORTS		14.007	NA	NA

	Earnings Per Share (Rs.)		1.02	2.18	NA

Expected Sales (2010-2011) : Rs.250.000 Millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.07	3.99	NA

Net Profit Margin (PBT/Sales)	(%)	2.76	6.39	5.19

Return on Total Assets (PBT/Total Assets}	(%)	2.02	5.10	3.38

Return on Investment (ROI) (PBT/Networth)		0.03	0.08	0.06

Debt Equity Ratio (Total Liability/Networth)		0.57	0.66	0.65

Current Ratio (Current Asset/Current Liability)		1.85	2.13	2.05

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors
Sundry Creditors for Capital Goods	1.822	0.802	NA
Sundry Creditors for Raw Material	29.101	23.916	NA
Sundry Creditors for Expenses	0.010	1.344	NA
Total	30.933	26.062	NA

Financial Operations:

The company has made a net profit of Rs.5.467 millions after depreciation.

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U26101KA2003PTC031990
Name of the company	BALAJI SAFETY GLASS (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Survey No. 12, Byagadafenahalli, Chandapura, Anekal Road, Anekal, Bangalore-562106, Karnataka, India
Type of charge	Movable Property (not being pledge) Others
Particular of charge holder	Yes Bank Limited, 9^th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai-400018, Maharashtra, India
Email	shareholders@yesbank.in
Nature of description of the instrument creating or modifying the charge	Deed of hypothecation
Date of instrument Creating the charge	12.11.2010
Amount secured by the charge	Rs.30.100 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Rates as communicated by the bank from time to time. Terms of Repayment Unless demanded earlier Cash credit (CC): On demand TL: 36 months LC: usance : 180 days LUT for Buyers Credit: 36 months Margin As specified by the bank from time to time Extent and Operation of the charge Exclusive charge by way of hypothecation on company's machineries procured through YBL finance for INR 30.100 millions both present and future.
Short particulars of the property charged	Exclusive charge by way of hypothecation on company's machineries procured through YBL finance for INR 30.100 millions both present and future.

Fixed Assets:

Air Conditioner
Crane
Air Dryer
Generator
Powder Coating Machine
Sand Filter
Glass Stands
Electrical Equipments
Transformers
Land and Building
Office Equipments
Vehicles

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.45.45
UK Pound	1	Rs.72.90
Euro	1	Rs.61.43

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.

MIRA INFORM REPORT

15.225

52.817

0.196

0.644

9.122

78.004

30.933

6.220

4.925

42.078

35.926

2.07

2.76

2.02

0.03

0.57

1.85

Unit