MIRA INFORM REPORT

Report Date :

04.07.2011

IDENTIFICATION DETAILS

Name :	BORON CARBIDE (INDIA) PRIVATE LIMITED
Registered Office :	2^nd Floor Bhukhanvala Chambers B 28 Veera Industrial Estate, Veera Desai Road Linke Road, Andheri (W), Mumbai – 400053, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	22.01.1987
Com. Reg. No.:	11-042304
Paid-up Capital :	Rs. 0.590 Million
CIN No.: [Company Identification No.]	U26993MH1987PTC042304
TAN No.: [Tax Deduction & Collection Account No.]	MUMB12718G
PAN No.: [Permanent Account No.]	AABCB0498D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Boron Carbide used in various industries
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 45000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears huge dip in the turnover and profitability of the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	2^nd Floor Bhukhanvala Chambers B 28 Veera Industrial Estate, Veera Desai Road Linke Road, Andheri (W), Mumbai – 400053, Maharashtra, India
Tel. No.:	91-22-40649000/26733910/66680790
Fax No.:	91-22-66920604-05
E-Mail :	Shetty_02@rediffmail.com B4cinfo@bdtlimited.com B4c@vsnl.net
Website :	www.b4cind.in

DIRECTORS

As On 15.07.2010

Name :	Mr. Madhukant Ratanlal Bhukanvala
Designation :	Director
Address :	Ratna, Plot No. 13, N.S. Road No. 4, Juhu Vile Parle Scheme, Vile Parel (West), Mumbai – 400056, Maharashtra, India
Date of Birth/Age :	12.03.1933
Date of Appointment :	22.01.1987
DIN No.:	00197436
Name :	Mr. Niraj Pankaj Bhukhawala
Designation :	Director
Address :	Ratna, Plot No. 13, N.S. Road No. 4, Juhu Vile Parle Scheme, Vile Parel (West), Mumbai – 400056, Maharashtra, India
Date of Birth/Age :	23.12.1973
Date of Appointment :	17.07.2003
DIN No.:	00113468
Name :	Mr. Nitish Madhukant Bhukhanwala
Designation :	Director
Address :	13, Ratna, 4^th Road, J V P D Scheme, Vile Parle West, Mumbai – 400056, Maharashtra, India
Date of Birth/Age :	06.12.1961
DIN No.:	00274657

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 15.07.2010

Names of Shareholders	No. of Shares
Bhukhanvala Ratanlal Madhukant	100
Bhukhanvala Holdings Private Limited – India	58940
Total	59040

As On 30.04.2011

Names of Shareholders	No. of Shares
Bhukhanvala Ratanlal Madhukant	125
Bhukhanvala Holdings Private Limited – India	17000
Smita P. Bhukhanwala	125
Nitish Bhukhanwala	125
Niraj Bhukhanwala	125
Hifin Capital Private Limited – India	7500
Total	25000

As On 15.07.2010

Category	Percentage
Bodies corporate	99.83
Directors or relatives of Directors	0.17
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Boron Carbide used in various industries

Products :

Item Code No.	Product Description
2849 90 10	Vajrabor Powder
2849 90 10	Carbolap Paste
2849 90 10	Boron Carbide Pellets

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• HDFC Bank Limited – HDFC Bank House Senapati Bapat Marg, Lower Parel W, Mumbai – 400013, Maharashtra, India
• Bank of Baroda – GIDC, Kabilpore, District Valsad, Gujarat, India

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
From Bank (Secured by hypothecation of the motor car)	0.920	0.000
Total	0.920	0.000

Unsecured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
From Holding Company	34.696	6.734
From Directors	0.000	0.165
Total	34.696	6.899

Banking Relations :	--
Auditors :
Name :	S. R. DIVATIA and Company Chartered Accountant
Address :	219-221, Avon Arcade, S. J. Road, Vile Parle West, Near Railway Station, Mumbai – 400056, Maharashtra, India
Tel. No.:	91-22-26160791/26631927
Fax No.:	91-22-26104926
E-Mail :	mail@srdivatia.com
Pan No.:	AACFS3031P
Holding Company :	Bhukanvala Holdings Private Limited CIN: U29220MH1973PTC016544

CAPITAL STRUCTURE

As On 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1100000	Equity Shares	Rs. 10/- each	11.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
59040	Equity Shares	Rs. 10/- each	Rs. 0.590 Million

Note:

(58,940 shares (Previous Year: 58,940 Equity Shares) of Rs. 10 each are held by the Holding Company, Bhukhanvala Holdings Private Limited)

After 15.07.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1100000	Equity Shares	Rs. 10/- each	11.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
84040	Equity Shares	Rs. 10/- each	Rs. 0.840 Million

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		0.590	0.590	0.590
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		10.854	21.278	13.894
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		11.444	21.868	14.484
LOAN FUNDS
1] Secured Loans		0.920	0.000	0.000
2] Unsecured Loans		34.696	6.899	21.577
TOTAL BORROWING		35.616	6.899	21.577
DEFERRED TAX LIABILITIES		1.316	1.592	1.491
TOTAL		48.376	30.359	37.552
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		32.441	36.434	37.389
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	10.586	12.485	22.118
	Sundry Debtors	2.102	5.889	35.685
	Cash & Bank Balances	1.987	7.967	0.720
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	4.990	7.201	7.933
Total Current Assets		19.665	33.542	66.456
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.900	37.208	42.049
	Other Current Liabilities	0.461	1.069	24.241
	Provisions	1.369	1.340	0.003
Total Current Liabilities		3.730	39.617	66.293
Net Current Assets		15.935	(6.075)	0.163
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		48.376	30.359	37.552

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income
		Other Income
		TOTAL (A)	12.147	157.297	171.804
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	18.102	13.759	144.115
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(5.955)	19.707	27.689
Less	FINANCIAL EXPENSES (D)		(0.082)	2.746	7.438
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(6.037)	16.961	20.251
Less/ Add	DEPRECIATION/ AMORTISATION (F)		(4.674)	5.243	5.174
	PROFIT BEFORE TAX (E-F) (G)		(10.711)	11.718	15.077
Less	TAX (I)		(0.287)	4.334	5.526
	PROFIT AFTER TAX (G-I) (J)		(10.424)	7.384	9.551
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		12.241	4.857	(4.694)
	BALANCE CARRIED TO THE B/S		1.817	12.241	4.857
	Earnings Per Share (Rs.)		(176.56)	125.07	161.77

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(85.82)	4.69	5.56
Return on Total Assets (PBT/Total Assets}	(%)	(20.56)	16.75	14.52
Return on Investment (ROI) (PBT/Networth)		0.94	0.54	1.04
Debt Equity Ratio (Total Liability/Networth)		3.44	2.13	6.07
Current Ratio (Current Asset/Current Liability)		5.27	0.85	1.00

LOCAL AGENCY FURTHER INFORMATION

Review of Operations:

During the year the company has expanded its sales efforts and has added a number of new industrial customers for its boron carbide products. The sales in the year have been lower than the previous year, primarily because of the completion of the special project for the Department of Atomic energy which was completed in 2008-09. The Company is making efforts to identify new areas where it would be able to fulfill the requirements of the Department of Atomic Energy and other Nuclear Projects and is working towards securing new orders from them so that it can further utilize its production capacity.

The company also sees that the Indian market will continue to exhibit strong growth for boron carbide powders and hence it is investing in sales to ensure that we are able to benefit from this growth

Form 8:

This form is for

Creation of charge

Corporate identity number of the company

U26993MH1987PTC042304

Name of the company

BORON CARBIDE (INDIA) PRIVATE LIMITED

Address of the registered office or of the principal place of business in India of the company

2^nd Floor Bhukhanvala Chambers B 28 Veera Industrial Estate, Veera Desai Road Linke Road, Andheri (W), Mumbai – 400053, Maharashtra, India

Type of charge

Book Debts

Movable Property

Particular of charge holder

Name :	HDFC Bank Limited
Address :	HDFC Bank House Senapati Bapat Marg, Lower Parel W, Mumbai – 400013, Maharashtra, India
CIN :	L65920MH1994PLC080618
Email :	efiling@anbindia.com

Nature of description of the instrument creating or modifying the charge

Letter of Hypothecation

Date of instrument Creating the charge

25.09.2006

Amount secured by the charge

Rs. 45.000 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest - The bank is entitled to charge interest at such rate as may be determined by the bank from time to time.

Terms of Repayment - On demand and/or as determined by the bank from time to time.

Margin - Margin as determined by the bank from time to time.

Extent and Operation of the charge - The charge to operate as a continuing security for the balance due to the bank.

Others - The facility provided to the borrower is in the nature of Bank Guarantee facility.

Short particulars of the property charged

Hypothecation by way of first charge on all the stock in trade both present and future consisting of raw materials, finished goods, goods in process of manufacturing and other merchandise, fixed assets and whatsoever being movable properties and all the Book Debts, Outstandings monies receivable, claims and bills.

Fixed Assets:

• Leasehold Land
• Building
• Plant and machinery
• Electrical installation
• Furniture and fixture
• Office equipment
• Motor car
• Computer

AS PER WEBSITE DETAILS

PROFILE:

Subject is a pioneer in manufacturing of Boron Carbide used in various industries. Subject is being supplied to all leading engineering companies in private and public sector units for variety of applications.

Subject is a super hard abrasive material, next only to diamond and cubic boron nitride in hardness. It simply outclasses the conventional abrasives like aluminum oxide and silicon carbide with its superlative and cost effective performance. Boron Carbide find extensive applications in the hard metals (Carbides) industry, in the production of Tools and Machines Components in Finishing / Lapping of numerous items.

Boron Carbide Abrasive Grains commercially manufactured in India for the first time by Subject are now available in various standard grit size.

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.44.59
UK Pound	1	Rs.71.75
Euro	1	Rs.64.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	4
--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		32

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.