MIRA INFORM REPORT

Report Date :

31.01.2011

IDENTIFICATION DETAILS

Name :	DAKSHIN FOUNDRY PRIVATE LIMITED
Registered Office :	209, Ramanashree Chambers No.37, Lady Curzon Road, Bangalore – 560001, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	07.10.2004
Com. Reg. No.:	034823
CIN No.: [Company Identification No.]	U02710KA2004PTC034823
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Ferrous Casting

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 62432
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. 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 – 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 PARTED BY

Name :	Ms. Aruna
Designation :	Accounts Department
Date :	29.01.2011

LOCATIONS

Registered Office :	209, Ramanashree Chambers No.37, Lady Curzon Road, Bangalore – 560001, Karnataka, India
Tel. No.:	91-80-25596362
Fax No.:	91-80-25521963
E-Mail :	blr@indicarb.com, mouli3568@gmail.com
Website :	www.dakshinfoundry.com
Factory :	Plot No.28, B-H Hosakote, Kiabd Industrial Area, Bangalore – 562114, India
Tel. No.:	91-80-27971681-83
Fax No.:	91-80-27971684

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Alok Bhartia
Designation :	Director
Address :	No.101, Parijath Apartment, Fair Fileld Layout, 45/1, Race Course Road, Bangalore – 560001, Karnataka, India
Date of Birth/Age :	14.09.1958
Date of Appointment :	07.10.2004
Name :	Ms. Alpana Bhatia
Designation :	Director
Address :	No.101, Parijath Apartment, Fair Fileld Layout, 45/1, Race Course Road, Bangalore – 560001, Karnataka, India
Date of Birth/Age :	07.09.1966
Date of Appointment :	07.10.2004
Name :	Mr. Krishnan Elangadu Sadagopan
Designation :	Director
Address :	No.10, 9^th Block, Kumra Park West, Bangalore – 560020, Karnataka, India
Date of Birth/Age :	01.1.1941
Date of Appointment :	31.10.2006
Name :	Mr. Ramachandra Nanjundiah
Designation :	Director
Address :	No.231, 4^th Main Road, Basaveshwaranagar, Bangalore – 560079, Karnataka, India
Date of Birth/Age :	07.08.1934
Date of Appointment :	29.03.2005
Name :	Mr. Srinivasan Rangarajan
Designation :	Director
Address :	Dhanya, 126 Nandi Durga Road, Bangalore – 560001, Karnataka, India
Date of Birth/Age :	10.09.1941
Date of Appointment :	29.03.2005
Name :	Mr. Deepak Bhartia
Designation :	Director
Address :	No.102, Parijath Apartment, Fair Fileld Layout, 45/1, Race Course Road, Bangalore – 560001, Karnataka, India
Date of Birth/Age :	28.11.1959
Date of Appointment :	14.02.2005

KEY EXECUTIVES

Name :	Ms. Aruna
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

6% CUMULATIVE REDEEMABLE PREFERENCE SHARES AS ON 30.09.2010

Names of Shareholders	No. of Shares
Pialde Investment Company Private Limited, Bangalore	25000
Sri Bajrang Jude Mills Limited, Kolkata	82000
Melbrow Commercial Company Limited, Bangalore	20000
EIC Holdings Limited, Kolkata	100000
Prakash Chandra Kejriwala	60000
Norisys Technology Limited, Delhi	60000
Southern Hightech Capital Limited, Bangalore	53000
Golflink Estate and Finance Private Limited, Bangalore	50000
Total	450000

EQUITY SHARES AS ON 30.09.2010

Names of Shareholders	No. of Shares
Alok Bhartia	5000
Alpana Bhatia	4000
Pialde Investment Company Private Limited, Bangalore	50000
Shivangini Properties Limited, Bangalore	140000
EIC Holdings Limited, Kolkata	350000
Prakash Chandra Kejriwala	13000
Prabhas Kejriwala	19500
Sumitra Kejriwala	7500
Norisys Technology Limited, Delhi	240000
Deepa Bhartia	46000
Vidush Bhartia	75000
Deepak Bhartia	50000
Total	1000000

10% REDEEMABLE NON CUMULATIVE NON CONVERTIBLE DEBENTURES AS ON 30.09.2010

Names of Shareholders	No. of Shares
EIC Holdings Limited, Kolkata	100000
Total	100000

AS ON 30.09.2010

Category	Percentage
Bodies corporate	78.00
Directors or relatives of Directors	22.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Ferrous Casting

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Ferrous Casting	Tons / Nos		6000	21326

GENERAL INFORMATION

No. of Employees :

Not divulged by the management

Bankers :

Central Bank of India, Indiranagar Branch, No.541, CMH Road, I Stage, Indiranagar, Bangalore -5600038, Karnataka, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Central Bank of India – Cash Credit A/c	28.394	34.413
Central Bank of India – Packing Credit A/c	14.463	0.000
Central Bank of India – Term Loan A/c (Secured by Hypothecation of Land and Building, Plant and Machinery, Stock in Trade and Books Debts)	150.520	167.462
Vehicle Loan (Secured by Hypothecation of Vehicle)	0.097	0.314
Total	193.474	202.189
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Directors	26.112	11.508
From Share Holders	98.758	97.719
From Bodies Corporate	31.932	18.753
Total	156.802	127.980

Banking Relations :	--
Auditors :
Name :	K Jaishankar and Company Chartered Accountant
Address :	No.11, First Floor, Palace Cross Road, Bangalore – 560020, Karnataka, India
Associates/Subsidiaries :	NA

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1050000	Equity Shares	Rs.100/- each	Rs.105.000 Millions
450000	6% Redeemable Non-Cumulative Preference Shares	Rs.100/- each	Rs.45.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
900000	Equity Shares	Rs.100/- each	Rs.90.000 Millions
450000	6% Redeemable Non-Cumulative Preference Shares	Rs.100/- each	Rs.45.000 Millions
	Share Application Money		Rs.10.000 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		145.000	115.000	80.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(129.392)	(95.625)	(60.896)
NETWORTH		15.608	19.375	19.104
LOAN FUNDS
1] Secured Loans		193.474	202.190	208.583
2] Unsecured Loans		166.802	127.980	93.824
TOTAL BORROWING		360.276	330.170	302.407
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		375.884	349.545	321.511
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		285.053	281.956	272.719
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.668
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	55.518	42.150	23.306
	Sundry Debtors	60.644	25.440	22.492
	Cash & Bank Balances	2.842	2.753	2.149
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	25.339	31.703	33.697
Total Current Assets		144.343	102.046	81.644
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	50.244	34.452	34.176
	Other Current Liabilities	2.748	0.000	0.210
	Provisions	1.416	1.398	0.754
Total Current Liabilities		54.408	35.850	35.410
Net Current Assets		89.935	66.196	46.234
MISCELLANEOUS EXPENSES		0.896	1.393	1.890
TOTAL		375.884	349.545	321.999

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		TOTAL INCOME (A)	202.720	135.044	99.275
Less	EXPENSES
		TOTAL EXPENSES (B)	222.760	157.488	141.121
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(20.039)	(22.444)	(41.846)
Less	FINANCIAL EXPENSES (D)		0.000	0.000	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(20.039)	(22.444)	(41.846)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.728	12.024	11.129
	PROFIT BEFORE TAX (E-F) (G)		(33.767)	(34.468)	(52.975)
Less	TAX (I)		0.000	0.000	0.242
	PROFIT AFTER TAX (G-I) (J)		(33.767)	(34.468)	(53.217)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(95.625)	(60.896)	(7.679)
	BALANCE CARRIED TO THE B/S		(129.392)	(95.625)	(60.896)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(16.66)	(25.52)	(53.36)
Return on Total Assets (PBT/Total Assets}	(%)	(7.86)	(8.97)	(53.36)
Return on Investment (ROI) (PBT/Networth)		(2.16)	(1.78)	(2.77)
Debt Equity Ratio (Total Liability/Networth)		26.57	18.89	17.68
Current Ratio (Current Asset/Current Liability)		2.65	2.85	2.30

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details:

Particulars	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009	Rs. In Millions 31.03.2008
Sundry Creditors
For Goods (Due to SSI Units)	43.304	18.212	19.027
For Capital Goods	0.000	1.529	4.849
For Expenses	6.940	14.711	10.300

Form 8:

This form is for	Modification of charge
Charge identification number of the modified	80003269
Corporate identity number of the company	U02710KA2004PTC034823
Name of the company	AKSHIN FOUNDRY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	209, Ramanashree Chambersno.37, Lady Curzon Road, Bangalore - 560001 Karnataka, India
Type of charge	Movable Property
Particular of charge holder	CENTRAL BANK OF INDIA
Nature of description of the instrument creating or modifying the charge	Letter Sanctioning Cash Credit Limit Of Rs.3.500 Millions Agreement of Hypothecation To Secure Demand Cash Credit Against Goods
Date of instrument Creating the charge	24/04/2009
Amount secured by the charge	Rs.207.600 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest At The Rate Of Bplr + 2% Per Annum With Monthly Rests Terms of Repayment Payable On Demand Margin 25% Extent and Operation of the charge Full
Short particulars of the property charged	Hypothecation Of All Tangible Movable Property Such As Products, Stock-In Trade And Goods Whether Finished Or Raw Or In Process Of Manufacture And All Articles Manufactured By The Borrowers
Date of latest modification prior to the present modification	22/01/2008
Particulars of the present modification	Cash Credit Limits Increased From Rs.35.000 Millions To Rs.38.500 Millions Total Limits Stands At Rs.207.600 Millions

FIXED ASSETS:

• Land
• Building
• Furniture and Fixtures
• Plant and Machinery
• Office Equipment
• Vehicles
• Computer

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.45.74
UK Pound	1	Rs.72.73
Euro	1	Rs.62.73

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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		26

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.