MIRA INFORM REPORT

Report Date :

26.07.2011

IDENTIFICATION DETAILS

Name :	MAHESHWARI BRAZINGS PRIVATE LIMITED
Registered Office :	601, Rethani Delhi Road, Meerut-250003, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.03.1996
Com. Reg. No.:	20-19641
Capital Investment/ Paid-up Capital:	Rs. 9.626 Millions
CIN No.: [Company Identification No.]	U27201UP1996PTC19641
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of Silver Brazing Rods.
No. of Employees:	Not Available

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 120000
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

LOCATIONS

Registered Office :	601, Rethani Delhi Road, Meerut-250003, Uttar Pradesh, India
Tel. No.:	91-121-2441061
Fax No.:	91-121-2768967
E-Mail :	vipinnagar@hotmail.com

DIRECTORS

As on 28.06.2011

Name :	Mrs. Aruna Bhatter
Designation :	Director
Address :	B-17, Shambhu Nagard, Bagpat Road, Meerut-250002, Uttar Pradesh, India
Date of Birth/Age :	01.10.1966
Date of Appointment :	15.07.2002
DIN No.:	01643400
Name :	Mr. Rakesh Maheshwari
Designation :	Whole Time Director
Address :	B-17, Shambhu Nagard, Bagpat Road, Meerut-250002, Uttar Pradesh, India
Date of Birth/Age :	08.04.1966
Date of Appointment :	19.03.1996
DIN No.:	01643376
Name :	Mrs. Shanti Devi
Designation :	Director
Address :	B-17, Shambhu Nagard, Bagpat Road, Meerut-250002, Uttar Pradesh, India
Date of Birth/Age :	15.04.1945
Date of Appointment :	28.02.2006
DIN No.:	01635398
Name :	Mr. Bhagwati Prashed Maheshwari
Designation :	Whole Time Director
Address :	B-17, Shambhu Nagard, Bagpat Road, Meerut-250002, Uttar Pradesh, India
Date of Birth/Age :	01.03.1943
Date of Appointment :	19.03.1996
DIN No.:	01632286

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.06.2011

Names of Shareholders	No. of Shares
Bhagwati Prasad Maheshwari	25100
Rakesh Maheshwari	910700
B.P. Maheshwari (HUF)	10000
Rakesh Maheshwari (HUF)	10000
Shanti Devi	5000
Aruna Bhattar	1500
Ranjana Maheshwari	100
Vimlesh Mittal	100
Ragunandan Prasad Saraf Private Limited, Uttar Pradesh, India	100
Vinod Maheshwari	100
Neeru Maheshwari	100
Rajkumar Maheshwari	100
Madhu Maheshwari	100
Total	963000

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Directors or relatives of Directors	99.00
Others	1.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier of Silver Brazing Rods.

PRODUCTION STATUS AS ON (31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Welding Rods	Kgs p.a.	36000	31181.983

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel West, Mumbai-400013, Maharashtra, India
• Punjab National Bank, Kaisar Ganj Branch, Meerut-25002, Uttar Pradesh, India
• ICICI Bank Limited

Facilities :

Secured Loans	31.03.2011 Rs. in Millions	31.03.2010 Rs. in Millions
HDFC Bank A/C 028	5.147	8.093
Total	5.147	8.093

Banking Relations :	--
Auditors :
Name :	Vipin Nagar and Company Chartered Accountant
Address :	470/3, Mangal Pandey Nagar, University Road, Meerut-250004, Uttar Pradesh, India
Tel. No.:	91-121-4006768
Mobile No.:	91-9897419696

CAPITAL STRUCTURE

As on 28.06.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs. 10/- each	Rs. 25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
963000	Equity Shares	Rs. 10/- each	Rs. 9.630 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs. 10/- each	Rs. 25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
962600	Equity Shares	Rs. 10/- each	Rs. 9.626 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		9.626	4.626	4.626
2] Share Premium		5.775	5.775	5.775
3] Share Application Money		0.000	0.000	0.000
4] Reserves & Surplus		15.613	13.758	13.343
5] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		31.014	24.159	23.744
LOAN FUNDS
1] Secured Loans		5.147	8.093	0.000
2] Unsecured Loans		27.600	23.950	22.400
TOTAL BORROWING		32.747	32.043	22.400
DEFERRED TAX LIABILITIES		0.477	0.330	0.169
TOTAL		64.238	56.532	46.313
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		22.624	21.879	9.219
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		2.333	2.559	8.221
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6.981	4.176	4.489
	Sundry Debtors	47.057	30.584	19.833
	Cash & Bank Balances	0.955	0.832	1.517
	Other Current Assets	0.000	0.000	0.081
	Loans & Advances	2.323	1.837	6.803
Total Current Assets		57.316	37.429	32.723
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	17.993	5.302	3.716
	Other Current Liabilities	0.000	0.000	0.103
	Provisions	0.042	0.033	0.031
Total Current Liabilities		18.035	5.335	3.850
Net Current Assets		39.281	32.094	28.873
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		64.238	56.532	46.313

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	189.792	115.124	62.552
		Other Income	0.495	0.853
		TOTAL (A)	190.287	115.977	62.552
Less	EXPENSES
		Cost of Goods Sold	174.209	103.709
		Oil Consumed	1.465	1.143
		Salary to staff	0.088	0.087
		Directors remuneration	1.068	0.828
		Interest on Unsecured Loans	3.312	2.874
		Interest paid to Bank	0.218	0.141
		Insurance Expenses	0.047	0.033
		Other Expenses	7.263	5.435
		TOTAL (B)	187.670	114.250	61.124
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION)		2.617	1.727
Less/ Add	DEPRECIATION/ AMORTISATION		0.615	0.428
	PROFIT BEFORE TAX		2.002	1.299	1.428
Less	TAX		0.147	0.884	NA
	PROFIT AFTER TAX		1.855	0.415	NA
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		13.758	13.343	NA
	BALANCE CARRIED TO THE B/S		15.613	13.758	NA
	Earnings Per Share (Rs.)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.97	0.36	NA
Net Profit Margin (PBT/Sales)	(%)	1.05	1.13	NA
Return on Total Assets (PBT/Total Assets}	(%)	2.50	2.19	3.40
Return on Investment (ROI) (PBT/Networth)		0.06	0.05	0.06
Debt Equity Ratio (Total Liability/Networth)		1.64	1.55	1.11
Current Ratio (Current Asset/Current Liability)		3.18	7.02	8.50

LOCAL AGENCY FURTHER INFORMATION

Working:

The company has achieved a net profit of Rs. 2.000 Millions on the total sales volume of Rs. 189.792 Millions. The same has been transferred to the Reserve and Surplus in the Balance Sheet. The directors are pleased to submit that the company is continuously earning profits. The board expects to achieve better profits during current financial year as well.

Bankers Charges Report as per Registry

Corporate identity number of the company	U27201UP1996PTC19641
Name of the company	MAHESHWARI BRAZINGS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	601, Rethani Delhi Road, Meerut-250003, Uttar Pradesh, India
This form is for	Modification of charge
Charge identification number of the charge to be modified	10101103
Type of charge	Book Debts Movable Property (not being pledge) Floating Charge
Particular of charge holder	HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel West, Mumbai-400013, Maharashtra, India
Nature of instrument creating charge	Supplementary Letter of Hypothecation
Date of instrument Creating the charge	29.04.2011
Amount secured by the charge	Rs. 14.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest at the rate as may be communicated by the Bank form time to time Terms of Repayment On Demand Margin As may be stipulated by the Bank from time to time Extent and Operation of the charge Hypothecation by way of First Charge on Company’s stock in trade, Book Debts, etc. to secure as a continuing security for the repayment of Rs. 14.000 Millions together with interest, costs, charges, expenses and other money due and payable by the company to the bank.
Short particulars of the property charged	Stock in Trade, Consisting of raw Materials, goods in process of manufacturing finished goods, and other merchandise whatsoever being movable properties All the debts, that is all the book debts, outstandings, monies receivables, claims, bills, invoice documents, contracts, guarantees and rights
Particulars of the present modification	The charge shall now stand increased from Rs. 7.000 Millions to Rs. 14.000 Millions, against the security of stock in trade and book debt of the company.

Fixed Assets:

· Land

· Staff Quarter

· Godowns

· Store Building

· Factory Building

· Furniture and Fixture

· Plant and Machinery

· Laboratory

· Vehicles

· Generator

· Computers

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.44.42
UK Pound	1	Rs.72.49
Euro	1	Rs.63.87

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	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		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.