MIRA INFORM REPORT

Report Date :

13.07.2011

IDENTIFICATION DETAILS

Name :	TOUGH CASTING PRIVATE LIMITED
Registered Office :	Plot No.E-68, M. I. D. C., Shiroli, Kolhapur-416122, Maharashtra
Country :	India
Financials (as on) :	31.03.2011 (Provisional)
Date of Incorporation :	16.03.1988
Com. Reg. No.:	11-046562
Capital Investment / Paid-up Capital :	Rs. 5.000 millions
CIN No.: [Company Identification No.]	U27310PN1988PTC046562
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter, Importer of Castings, Grates, Chain Links, Combustion Equipments etc.
No. of Employees :	75 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 63000
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 – 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 :	Mr. Shashikant
Designation :	Manager Representative
Contact No.:	91-9673539090
Date :	12.07.2011

LOCATIONS

Registered Office / Factory :	Plot No.E-68, M. I. D. C., Shiroli, Kolhapur-416122, Maharashtra, India
Tel. No.:	91-230-2468019 / 2469313
Mobile No.:	91-9673539090 (Mr. Shashikant) 91-9823297070 (Mr. Amol)
Fax No.:	91-230-2469722
E-Mail :	sales@toughcasting.com toughcasting@gmail.com jitu_160372@uahoo.com
Website :	www.toughcasting.com
Area :	1380 sq. mt.
Location :	Owned

DIRECTORS

AS ON 30.09.2010

Name :	Ms. Sushma Balasaheb Kadolkar
Designation :	Managing Director
Address :	249/A/L/75, G-2, Arihant Plaza, Nagala Park, Kolhapur-416003, Maharashtra, India
Date of Birth/Age :	01.06.1952
Date of Appointment :	24.11.1994
DIN No :	00279342
Name :	Mr. Balasaheb Yallojirao Kadolkar
Designation :	Director
Address :	249/A/L/75, G-2, Arihant Plaza, Nagala Park, Kolhapur-416003, Maharashtra, India
Date of Birth/Age :	15.04.1949
Date of Appointment :	24.11.1994
DIN No :	00257399
Name :	Mr. Vinayak Yallojirao Kadolkar
Designation :	Director
Address :	411, Vijaynagar, Hindalaga, Belgaum, Karnataka, India
Date of Birth/Age :	22.07.1956
DIN No :	00279295
Name :	Ms. Kalpana Subhash Kadolkar
Designation :	Director
Address :	411, Vijaynagar, Hindalaga, Belgaum, Karnataka, India
Date of Birth/Age :	19.03.1962
DIN No :	00279191
Name :	Mr. Amol Balasaheb Kadolkar
Designation :	Director
Address :	249/A/L/75, G-2, Arihant Plaza, Nagala Park, Kolhapur-416003, Maharashtra, India
Date of Appointment :	25.08.2005
DIN No :	00257386

KEY EXECUTIVES

Name :	Mr. Shashikant
Designation :	Manager Representative

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Sushma Balasaheb Kadolkar	11132
Vinayak Yallojirao Kadolkar	6413
Kalpana Subhash Kadolkar	2303
Balasaheb Yallojirao Kadolkar	3702
Vaijayanti Vivek Diwakar	200
Nilkant Ganesh Gadgil	100
Shrishail Chanavirappa Uppin	100
Prakash Govindrao Badkundri	100
Subhash Yallojirao Kadolkar	3785
Shobha Vinayak Kadolkar	450
Shrish Ramchandra Mane	100
Yallojirao Ishwar Kadolkar	615
Amol Balasaheb Kadolkar	1000
Total	30000

AS ON 27.10.2010

Names of Share Alooted	No. of Shares
Balasaheb Yallojirao Kadolkar	7500
Sushma Balasaheb Kadolkar	2500
Vinayak Yallojirao Kadolkar	2500
Shobha Vinayak Kadolkar	2500
Subhash Yallojirao Kadolkar	2500
Kalpana Subhash Kadolkar	2500
Total	20000

AS ON 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter, Importer of Castings, Grates, Chain Links, Combustion Equipments etc.
Exports :
Products :	· Castings
Countries :	· Taiwan · USA · Malaysia · Philippines
Imports :
Products :	· Machinery
Countries :	· Germany

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity (p. a.)	Installed Capacity (P.a.)	Actual Production
Casting	Tones	1200	1200	641

GENERAL INFORMATION

Customers :

· End Users

· Others

· Sugar Factory

· Cement Factory

No. of Employees :

75 (Approximately)

Bankers :

· The Shamrao Vithal Co-operative Bank Limited, Anant Towers, Rajarampuri Road, Sykes Extension, E Ward, Shahupuri, Kolhapur-416001, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
The Shamrao Vithal Co-operative Bank Limited – Term loan		0.931
The Shamrao Vithal Co-operative Bank Limited – Term Loan		5.828
(Secured by hypothecation of land, building and plant and machinery and guaranteed by directors jointly and severally)	7.576	0
The Shamrao Vithal Co-operative Bank Limited – Cash Credit (Secured by hypothecation of stock and bills receivable)		7.703
Loans Against Fixed Deposit		0.056
Total	7.576	14.518
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Reliable Metals and Alloys		0.025
Loans from Directors	0.728	0.069
Business Loan (Indiabulls)		1.340
Business Loan (HDFC Bank)		0.457
Total	0.728	1.891

Banking Relations :	--
Auditors :
Name :	V. D. Bhavsar and Associates Chartered Accountant
Address :	1429, C Ward, Laxmipuri, Kolhapur-416002, Maharashtra, India
Sister Concern :	Sound Cost Alloys Private Limited Address : Plot No.E-68, M. I. D. C., Shiroli, Kolhapur-416122, Maharashtra, India Line of Business : Manufacturer, Exporter, Importer of Castings, Grates, Chain Links, Combustion Equipments etc.

CAPITAL STRUCTURE

AS ON 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs.5.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011 (Provisional)	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		5.000	3.000	3.000
2] Share Application Money		0.000	2.000	0.000
3] Reserves & Surplus		10.906	11.005	7.586
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		15.906	16.005	10.586
LOAN FUNDS
1] Secured Loans		7.576	14.518	19.069
2] Unsecured Loans		0.728	1.891	3.004
TOTAL BORROWING		8.304	16.409	22.073
DEFERRED TAX LIABILITIES		8.351	0.220	0.000
PROFIT AND LOSS A/C		19.021	0.000	0.000
BANK OD A/C		11.840	0.000	0.000
TOTAL		63.422	32.634	32.659
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		22.831	18.657	19.371
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		1.330	0.525	0.525
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	32.934	32.992	13.074
	Sundry Debtors	36.688	26.969	36.162
	Cash & Bank Balances	1.263	3.104	1.399
	Other Current Assets	17.535	0.000	0.000
	Loans & Advances	1.785	11.779	6.980
Total Current Assets		90.205	74.844	57.615
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	43.244	38.259	24.926
	Other Current Liabilities	4.984	17.042	14.409
	Provisions	2.716	6.091	5.517
Total Current Liabilities		50.944	61.392	44.852
Net Current Assets		39.261	13.452	12.763
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		63.422	32.634	32.659

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011 (Provisional)	31.03.2010	31.03.2009
	SALES
		Income	199.121	115.881	56.443
		Other Income	0.322
		TOTAL (A)	199.443	115.881	56.443
Less	EXPENSES
		Cost of Material	109.297
		Direct Expenses	48.018
		Administrative Expenses	6.376
		Other Expenses	5.051	104.919	52.185
		Personal Expenses	3.310
		Selling Expenses	5.594
		TOTAL (B)	177.646	104.919	52.185
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		21.797	10.962	4.258
Less	FINANCIAL EXPENSES (D)		2.775	2.845	2.270
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		19.022	8.117	1.988
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.000	2.462	2.522
	PROFIT BEFORE TAX (E-F) (G)		19.022	5.655	(0.534)
	EXPORT VALUE		NA	0.267	12.740

Expected Sales (2011-2012) : Rs. 300.000 millions

The above information has been parted by Mr. Shashikant.

KEY RATIOS

PARTICULARS		31.03.2011 (Provisional)	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	9.55	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	16.83	6.05	(0.69)
Return on Investment (ROI) (PBT/Networth)		1.19	0.35	(0.05)
Debt Equity Ratio (Total Liability/Networth)		4.25	4.87	6.32
Current Ratio (Current Asset/Current Liability)		1.77	1.22	1.28

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF OPERATION (AS ON 31.03.2010)

During the year, company has achieved a turnover of Rs. 115.881 millions as against Rs. 56.443 millions of the previous year showing increase in sales. During the period the company has earned net profit of Rs. 5.655 millions as against Rs. (0.534) million of the previous year.

During the period the sale has increased to considerable level with considerable profit. The order position was good. There is good response for the assembly of traveling grate they developed successfully. They are getting these enquiries and orders on large scale. Some export orders are under process and we are very positive to get the same. The export sale this year was Rs. 4.050 millions and they expect to reach up to Rs.30.000 millions in current year. They also developed some prestigious customers like Tata International etc. These orders are also for value added items.

Looking toward the increased load and high quality requirements of customers they have decided to go for some modernization. They have ordered mini sand plant with sand testing equipments. They have also ordered shell core shooter to improve finish of cores and increase the production. They have approached our bankers for financial help for this and their response is awaited.

There is one more constraint for their financial rotation. They are doing all project work. The general practice is they get 20-30% advance and 50 to 60% after dispatch. Balance 20% is received after 1-1½ year performance or against Bank Guarantee. Their Bank Guarantee limit is blocked in this only and the present limit is very less for this. They are asking to increase this limit. It is awaited.

FORM 8

Corporate identity number of the company	U27310PN1988PTC046562
Name of the company	TOUGH CASTING PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.E-68, M. I. D. C., Shiroli, Kolhapur-416122, Maharashtra, India
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	The Shamrao Co-operative Bank Limited, Anant Towers, Rajarampuri Road, Sykes Extension, E Ward, Shahupuri, Kolhapur-416001, Maharashtra, India
Nature of instrument creating charge	Term Loan. Composite Hypothecation Agreement.
Date of instrument Creating the charge	30.10.2010
Amount secured by the charge	Rs. 2.700 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest ROI @PLR -1.50% Terms of repayment Repayment in Equal Monthly Installment of Rs. 0.062 millions in 60 months and no moratorium. Margin 25% Extent and operation of the charge Charge will remain in force till the payment of principal plus interest in full. Other Penal Interest @ 2%.
Short particulars of the property charged (Including location of the property)	Hypothecation of Full Sand Plant of Kelson Engineering and Fabricators make. Hypothecation of Core Box Shooter, Semi- Auto Core Shooter and Pneumatic Moulding Machine and ELGI Screw air compressor and Vertical air receiver, etc.

FIXED ASSETS:

· Office Equipments

· Plant and Machinery

· Bicycle

· Furniture and Fixtures

· Leasehold Land

· Computer Systems

TRADE REFERENCE:

· Fives Sales KCP Private Limited

· Neesons Energy System

· Trichy

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.44.68
UK Pound	1	Rs.70.87
Euro	1	Rs.62.25

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		45

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.