MIRA INFORM REPORT

Report Date :

22.06.2011

IDENTIFICATION DETAILS

Name :	BILL FORGE PRIVATE LIMITED

Registered Office :	Unit No. 9C, Hosur Road, Bommasandra-Industrial Area, Bangalore 562158, Karnataka

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	23.12.1982

Com. Reg. No.:	005086

Paid-up Capital :	Rs. 10.641 Millions

CIN No.: [Company Identification No.]	U51392KA1982PTC005086

TAN No.: [Tax Deduction & Collection Account No.]	BLRB03712C BLRB00784A

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer of Automobile Spare Parts

No. of Employees :	2000 (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 2700000

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

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. Gavda
Designation :	Accountants

LOCATIONS

Registered Office/Factory 1 :	Unit No. 9C, Hosur Road, Bommasandra-Industrial Area, Bangalore 562158, Karnataka, India
Tel. No.:	91-80-27832325
Fax No.:	91-80-27832127
E-Mail :	contact@billforge.com billforge@vsnl.com
Website :	www.billforge.com
Area :	2.5 Acres
Location :	Owned

Factory 2 :	98 L, Kiadb Industrial Area, Phase II, Jigani, Bangalore 562106, Karnataka, India
Tel. No.:	91-80-27826993
Fax No.:	91-80-27826943
Area :	2.9 Acres
Location :	Owned

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Ravindra K Iyengar
Designation :	Director
Date of Birth/Age :	02.07.1961
Qualification :	ICWI
Date of Appointment :	14.11.2005

Name :	Mr. Girish N Kulkarni
Designation :	Director
Date of Birth/Age :	07.07.1966
Qualification :	MBA
Date of Appointment :	13.06.2006

Name :	Mr. Hari Krishnan
Designation :	Director
Date of Birth/Age :	06.09.1966
Qualification :	Mechanical Engineer
Date of Appointment :	30.05.2007

Name :	Mr. Anil Haridas
Designation :	Director
Date of Birth/Age :	02.04.1958
Date of Appointment :	23.12.1982

Name :	Mr. Sunil Haridas
Designation :	Director
Date of Birth/Age :	06.06.1952
Date of Appointment :	01.04.2000

KEY EXECUTIVES

Name :	Mr. Gavda
Designation :	Accountants

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Anil Haridass	238576
Anjali Powar Haridass	242605
Sunil Haridass	172118
Manjula Sunil	38891
Mridula Sugadhan	38918
M C Mythili	39994
Monsson India Inflection Fund Limited, Mauritius	94521
Monsson India Inflection Fund 2 Limited, Mauritius	155955
Anita Shourie	200
Hari S Bhartia	6500
Naresh Gujral	1300
OKS Span Tech Private Limited, New Delhi	1900
Pioneer Invest Corporation Limited, Mumbai	3300
Sandeep Bhammar	3300
Shyam S Bhartia	6500
Span India Private Limited, New Delhi	9500
Ashokan.P	150
Chandra Shekar.K	125
Charles. K	100
Devasagayam. N	50
Eswarappa. K.S	50
Govindarajan.V	50
Govindaraju. C	50
Krishnamurthy. H	50
Lakshman Rao. Y	50
Lissyamma	100
Mahadevaswamy	50
Manjunatha. D.S	125
Mayige Gowda.P.B	50
Mothiram.M	150
Prasad. V	50
Rajeesh. K.R	50
Ram Mohan	400
Ravindra. K	2500
Shashidharan.K.K	3000
Shekar. C	50
Shyam Singh. K	50
Sridhar.R Rao	550
Terence.C.J	50
Varghese Joseph	50
Venkatesh. K.V	125
Meghanathan.A	125
Natesan.N	150
Saravannan.C	75
Shashidharan . K	50
Pradeep Kumar	100
Vijaya Kumar.P	125
Sunny.C.J	250
Srinivas V	450
Arun H K	50
Ajith.M.K	75
Sudarsana Kumar.B	50
Chandrasekhar.P	100
Manjunatha.V.S	50
Narendranath Rao Y.K.	100
Paul.P.T.	150
Pushparaj.V	50
Saimon.S.P.	100

Total	1064153

AS ON 30.09.2010

Equity Share Breakup		Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]		24.00
Directors or relatives of directors		72.00
Other		1.00
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Automobile Spare Parts

Products :	Claw Pole Drive Flange Gear Blanks Pinion Gear Blank Steering Column Yokes Spider Cross Common Rail Hubs Pole Shoe CV Joint Tripot Joint Shaft Bearing Races

Exports :
Products :	Automobile Spare Parts
Countries :	US, France, Canada

Imports :
Products :	Raw Materials and Capital Goods
Countries :	Korea, Germany

Terms :
Selling :	L/C, Cash, Credit

Purchasing :	L/C, Cash, Credit

PRODUCTION STATUS

AS ON 31.03.2010

Particulars	Unit	Actual Production
Races	Qty in Nos.	336.71
Retainers	Qty in Nos.	282.84
Spark Plugs	Qty in Nos.	172.06
Sheet Metal Components	Qty in Nos.	50.34
UJKits / CVjoints / Gears	Qty in Nos.	12.95
Yokes	Qty in Nos.	34.04
Aluminium Parts / Hubs	Qty in Nos.	7.58
Total		896.53

GENERAL INFORMATION

Customers :

OEM’s
Bajaj
Biosch
Nexteer
Endurance
Maruti Suzuki
Hero Honda
TVS
Yamaha
Piaggio
Ford

No. of Employees :

2000 (Approximately)

Bankers :

Corporation Bank, Industrial Finance Branch, Rallaram Building, Mission Road, Bangalore 560027, Karnataka, India

State Bank of India, SPL Commercial Branch, Hudson Circle, Krishi Bhavan, Bangalore 560001, Karnataka, India

Facilities :

SECURED LOAN	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Term Loan From Scheduled Bank
Term Loan from Corporation Bank (Secured against Fixed Assets of the Company excluding Vehicles which are under Hire Purchase Scheme)	397.493	378.685
Term Loan from HDFC Bank Limited (Secured against plant and machinery acquired out of term loan)	0.000	120.000
Term Loan from HHFL (Secured against plant and machinery acquired out of term loin)	32.989	47.222
Term Loan from State Bank of India (Secured against Fixed Assets of the company on Paripasu basis excluding vehicles which are under hire purchases scheme)	357.238	0.000

Working Capital:-
Cash Credit with Corporation Bank (Secured against Paripasu first charge on Inventory and Book Debts)	473.634	408.729
WCDL with HDFC account I . . (Pari passu charge against hypothecation of raw materials, sem -finished goods, finished goods and book debts)	0.000	30.000
Cash Credit with Citibank i (Secured against Paripasu first charge on Inventory and Book debts)	0.000	63.999
Cash Credit with State Bank of India (Secured against Paripasu first charge on Inventory and Book debts)	149.009	0.000
Vehicle loan under Hirepurchase scheme	4.183	1.682

Total	1414.546	1050.317

UNSECURED LOAN	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
From Directors and Shareholders	0.811	0.811


Banking Relations :	--

Auditors :
Name :	Abraham Mathew and Master Chartered Accountant
Address :	11/1, Nandidurga Road, Bangalore 560046, Karnataka, India
Tel. No.:	91-80-23435020
Fax No.:	91-80-23333461

CAPITAL STRUCTURE

AS ON 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount

2000000	Equity Shares	Rs. 10 each	Rs.20.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

1064153	Equity Shares	Rs. 10 each	Rs.10.641 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		10.641	10.641	10.641
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		667.144	653.911	640.776
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		677.785	664.552	651.417
LOAN FUNDS
1] Secured Loans		1414.546	1050.517	880.691
2] Unsecured Loans		0.811	0.811	0.811
TOTAL BORROWING		1415.357	1051.328	881.502
DEFERRED TAX LIABILITIES		89.449	73.466	47.510

TOTAL		2182.591	1789.346	1580.429

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		1266.195	1126.004	825.620
Capital work-in-progress		102.995	118.807	118.678

INVESTMENT		0.050	0.052	0.052
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	461.809	322.457	300.588
	Sundry Debtors	501.434	386.710	402.019
	Cash & Bank Balances	54.617	53.076	32.174
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	148.000	133.723	158.627
Total Current Assets		1165.860	895.966	893.408
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	267.195	259.564	181.699
	Other Current Liabilities	58.587	61.143	36.720
	Provisions	26.727	30.776	38.910
Total Current Liabilities		352.509	351.483	257.329
Net Current Assets		813.351	544.483	636.079

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		2182.591	1789.346	1580.429

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	1902.147	1509.655	1244.992
		Other Income	0.000	0.000	0.000
		TOTAL (A)	1902.147	1509.655	1244.992

Less	EXPENSES
		Office Expenses
		Administrative Expenses	1723.330	1357.515	1132.976
		Advertising Expenses
		TOTAL (B)	1723.330	1357.515	1132.976

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		178.817	152.140	112.016

Less	FINANCIAL EXPENSES (D)		NA	NA	NA

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		178.817	152.140	112.016

Less/ Add	DEPRECIATION/ AMORTISATION (F)		134.815	103.404	86.556

	PROFIT BEFORE TAX (E-F) (G)		44.002	48.736	25.460

Less	TAX (H)		21.431	33.044	21.519

	PROFIT AFTER TAX (G-H) (I)		22.571	15.692	3.941

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		200.302	190.823	186.882

Less	APPROPRIATIONS
		Transfer to General Reserve	2.500	3.100	NA
		Dividend	9.338	3.113	NA
	BALANCE CARRIED TO THE B/S		211.035	200.302	190.823

	Earnings Per Share (Rs.)		21.21	28.39	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.18	1.03	0.31

Net Profit Margin (PBT/Sales)	(%)	2.31	3.22	2.04

Return on Total Assets (PBT/Total Assets}	(%)	1.80	2.41	1.48

Return on Investment (ROI) (PBT/Networth)		0.06	0.07	0.04

Debt Equity Ratio (Total Liability/Networth)		2.74	2.22	1.82

Current Ratio (Current Asset/Current Liability)		3.30	2.54	3.47

LOCAL AGENCY FURTHER INFORMATION

FORM 8

Corporate identity number of the company	U51392KA1982PTC005086
Name of the company	BILL FORGE PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Unit No. 9C, Hosur Road, Bommasandra-Industrial Area, Bangalore 562158, Karnataka, India
This form is for	Modification of charge
Type of charge	Immovable property
Particular of charge holder	Corporation Bank, Industrial Finance Branch, Rallaram Building, Mission Road, Bangalore 560027, Karnataka, India Email: survict@gmail.com
Nature of instrument creating charge	Memorandum for recording creation of mortgage by deposit of title deeds
Date of instrument Creating the charge	26.11.2010
Amount secured by the charge	Rs. 1118.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	Extent and operation of the charge Pari passu first charge on the assets (immovable property) of the company and to the full extent. Pari passu with state bank of India Spl Commercial Branch, Hudson Circle Bangalore. Other State Bank of India - Rs. 870.000 millions. Corporation Bank IFB Bangalore Rs. 1118.5 millions; Total Rs. 1988.500 millions . For the state bank of India limit of Rs. 870.0 millions separate charge already been registered for existing securities and for the additional security of immovable property form 8 is being filed now separately vide charge id no. 10165424.
Short particulars of the property charged (Including location of the property)	EM of immovable properties in Coimbatore Registration District, Madhukkarai sub-Registration District, Coimbatore Taluk, in Malumichampatti Village, in S.F. Nos.273/2, 274/1B and 275/1B. Measuring 1) S.F.No.273/2 to an extent of 1.92.5 acres of land. 2) S.F.No.274/1B to an extent of acres 0.32 cents. 3) S.F.No.275/1B to an extent of acres 0.55 cents.
Date of instrument modifying the charge	20.08.2010
Particulars of the present modification	Within the overall limit of Rs. 1225.4 millions the security is obtained for the present reduced outstanding amount of Rs.1118.5 millions. The security of immovable properties described and detailed in col no 15 herein above obtained on paripassu first charge basis with State Bank of India. All other terms and conditions remain unchanged.

FIXED ASSETS:

Land
Factory Building

Plant and Machinery
Furniture and Fixtures
Vehicles
Computer and Accessories
Office Equipments
Technical Know-how
Electrical Installation

AS PER WEBSITE DETAILS

OVERVIEW:

Subject manufactures a variety of cold, warm, hot forged and machined components for the automotive and non-automotive sectors.

Since commencement of operations in 1985, Subject has achieved several milestones and is today among the most technologically advanced manufacturer of forged and machined components. Being one of India’s emerging companies, it has manufacturing operations across 5 locations in India.

Subject’s customers include top automotive companies in the world, the list includes well respected OEM's and Tier 1 companies.

Backed by the company’s philosophy to be pro-active to its customers needs and continually improve all aspects of its business model, Subject provides solutions to meet the stringent needs of industry today.

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.44.91
UK Pound	1	Rs.72.89
Euro	1	Rs.64.48

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	YES
--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.

MIRA INFORM REPORT

461.809

501.434

54.617

148.000

1165.860

267.195

58.587

26.727

352.509

813.351

1.18

2.31

1.80

0.06

2.74

3.30

Unit