MIRA INFORM REPORT

Report Date :

09.06.2011

IDENTIFICATION DETAILS

Name :	TAHIRA INDUSTRIES (INDIA) PRIVATE LIMITED
Registered Office :	Caves Road, Jogeshwari East, Mumbai – 400060, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	16.05.1946
Com. Reg. No.:	11-004953
Capital Investment / Paid-up Capital :	Rs.5.354 Millions
CIN No.: [Company Identification No.]	U289220MH1946PTC004953
TAN No.: [Tax Deduction & Collection Account No.]	MUMT10759A
PAN No.: [Permanent Account No.]	AAACT1990R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Electrical Operated Lifting Barriers, Presure Vacuum Valves and Flame Arrestors.

RATING & COMMENTS

MIRA’s Rating :

Ca (12)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Performance of the company is showing downward trends. There appears a huge accumulated losses being 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 on a secured 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. Suraj Shah
Designation :	Director
Contact No.:	91-9819912148
Date :	07.06.2011

LOCATIONS

Registered Office :	Caves Road, Jogeshwari East, Mumbai – 400060, Maharashtra, India
Tel. No.:	91-22-28326724 / 28322132
Fax No.:	91-22-28353679
E-Mail :	surajshah9@ti-ipl.com
Factory :	Plot 81-A, Tahira Compound, Caves Road, Premsons, Jogeshwari East, Mumbai – 400060, Maharashtra, India
Tel. No.:	91-22-28240731 / 28240732 / 28353679
Fax No.:	91-22-28353679

DIRECTORS

AS ON : 30.09.2010

Name :	Mr. Suraj Amritlal Shah
Designation :	Director
Address :	X-602, Goldenrays Building C-33A, Shashtri Nagar, Lakhandwala Complex, Andheri (West), Mumbai – 400053, Maharashtra, India
Date of Birth/Age :	19.11.1977
Date of Appointment :	29.01.2008
Din No.:	01998544
Name :	Mrs. Jayaben Amritlal Shah
Designation :	Director
Address :	X-602, Goldenrays Building C-33A, Shashtri Nagar, Lakhandwala Complex, Andheri (West), Mumbai – 400053, Maharashtra, India
Date of Birth/Age :	03.07.1951
Date of Appointment :	29.01.2008
Din No.:	01998560
Name :	Mr. Amritlal Premchand Shah
Designation :	Chairman Cum Managing Director
Address :	X-602, Goldenrays Building C-33A, Shashtri Nagar, Lakhandwala Complex, Andheri (West), Mumbai – 400053, Maharashtra, India
Date of Birth/Age :	19.10.1948
Date of Appointment :	25.04.1991
Din No.:	01753666

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON : 30.09.2010

Names of Shareholders	No. of Shares
Amritlal Premchand Shah	37875
Jayaben Amritlal Shah	11000
Suraj Amritlal Shah	4670
Total	53545

AS ON : 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Electrical Operated Lifting Barriers, Presure Vacuum Valves and Flame Arrestors.

GENERAL INFORMATION

Bankers :

Not Available

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Long Term loans
Loan from Director	39.926	44.945
Total	39.926	44.945

Banking Relations :	--
Auditors :
Name :	SJA and Company Chartered Accountant
Address :	42, Free Press House, 4^th Floor 215, Nariman Point, Mumbai – 400021, Maharashtra, India

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
55000	Equity Shares	Rs.100/- each	Rs.5.500 Millions
5000	7.5% Cumulative Redeemable Preference Shares	Rs.100/- each	RS. 0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
53545	Equity Shares	Rs.100/- each	Rs.5.354 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		5.354	5.354	5.354
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.530	0.530	0.530
4] (Accumulated Losses)		(19.168)	(19.704)	(18.216)
NETWORTH		(13.284)	(13.820)	(12.332)
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		39.926	44.945	48.886
TOTAL BORROWING		39.926	44.945	48.886
DEFERRED TAX LIABILITIES		2.006	2.688	3.177
TOTAL		28.648	33.813	39.731
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		21.896	25.196	28.996
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	0.393	0.476	0.539
	Sundry Debtors	1.999	2.474	4.627
	Cash & Bank Balances	0.508	0.228	0.006
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.578	2.473	2.298
Total Current Assets		4.478	5.651	7.470
Less : CURRENT LIABILITIES & PROVISIONS
	Other Current Liabilities	3.546	3.917	4.822
	Provisions	0.034	0.141	0.107
Total Current Liabilities		3.580	4.058	4.929
Net Current Assets		0.898	1.593	2.541
MISCELLANEOUS EXPENSES		5.854	7.024	8.194
TOTAL		28.648	33.813	39.731

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	0.581	1.318	1.992
		Income	14.274	13.008	11.632
		Other Income	0.419	0.799	8.332
		TOTAL (A)	15.274	15.125	21.956
Less	EXPENSES
		Decrease In Inventory	0.000	0.145	0.381
		Raw Material Consumed	0.296	0.424	0.574
		Purchase of Traded Goods	0.022	0.128	0.053
		Manufacturing and Other Expenses	7.318	8.163	8.086
		Payments to and Previous for Employees	2.221	2.440	1.029
		Administrative Expenses	2.064	1.967	1.814
		TOTAL (B)	11.923	13.267	11.937
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3.351	1.858	10.019
Less	FINANCIAL EXPENSES (D)		0.005	0.000	0.047
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.346	1.858	9.972
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.351	3.799	4.567
	PROFIT BEFORE TAX (E-F) (G)		(0.005)	(1.941)	5.405
Less	TAX (I)		0.530	0.453	0.139
	PROFIT AFTER TAX (G-I) (J)		(0.535)	(1.488)	5.266
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(19.704)	(18.216)	(23.482)
	BALANCE CARRIED TO THE B/S		(19.168)	(19.704)	(18.216)
	Earnings Per Share (Rs.)		10.92	(30.40)	107.59

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(3.50)	(9.83)	23.98
Net Profit Margin (PBT/Sales)	(%)	(0.03)	(13.54)	39.67
Return on Total Assets (PBT/Total Assets}	(%)	(0.01)	(6.29)	14.82
Return on Investment (ROI) (PBT/Networth)		(0.00)	(0.14)	(0.43)
Debt Equity Ratio (Total Liability/Networth)		(3.27)	(3.54)	(4.36)
Current Ratio (Current Asset/Current Liability)		1.25	1.39	1.51

LOCAL AGENCY FURTHER INFORMATION

OPERATION:

At present two types of activities are being carried out in the Company;

1) Engineering

2) Pharmaceutical

Engineering activity is slowed down due to enormous price rises in raw material. This activity will slowly pick up in the near future. Electric operated Barriers are our main target. In pharmaceutical there is a set back during the year. Orders are not available and manufacturing facility is under utilized. However a job work charge has marginally picked up and the current year has begun on a better note.

FINANCE:

During the year the company mainly depended on internal accruals for working capital finance.

SALES:

During the year the turnover of the Company decline to Rs. 0.580 millions as against Rs. 1.318 millions in the previous year. This was mainly because the Company is looking more to the job work as compared to own production. This has resulted into increase in the operating income to Rs. 14.273 millions as against Rs. 0.130 millions in the preceding year. The Directors are confident that the financial position of the Company will improve in the years to come and the Company will show better results.

PROFITABILITY:

During the year the company has suffered minor loss of Rs. 0.005 millions. However on account of reversal of Deferred Tax liability of Rs. 0.682 millions and after making provision of Rs. 0.140 millions towards taxes of earlier years the company has made a net profit after tax of Rs. 0.535 millions The loss is on account of not able to utilize the capacity to the fullest extend. However, company could stop cash losses resulting into improved cash flow.

The margins are under pressure and the project cost substantially increased due to delay in the implementation resulting into burden on the existing products. All efforts are being made to curtail the expenses and improve fund flow situation.

At present the attempt is being made to fully recover the depreciation and amortization of Research and Development. This will give stability to the Company and better prospects in the years to come.

The company also suffers on account of heavy octroi charges which it has to bear on the inward shipment of raw materials from outside Mumbai and outward shipment of finished product to suppliers located outside the octroi duty. Invariably this increases the cost and margin goes under the pressure.

FIXED ASSERS :

· Factory Building

· Freehold Land

· Furniture and Fixture

· Plant and Machinery

· Computer

· Office Equipments

· Electrical Installation

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. 44.61
UK Pound	1	Rs. 73.27
Euro	1	Rs. 65.47

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	--
--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		12

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.