MIRA INFORM REPORT

Report Date :

22.06.2011

IDENTIFICATION DETAILS

Name :	RAJDEEP INDUSTRIAL PRODUCTS PRIVATE LIMITED
Formerly Known As :	BALL BEARING AND TOOLS TRADERS (PUNE) PRIVATE LIMITED
Registered Office :	143, Vadgam Dhayari, Wadgaon, Pune Singagad Road, Pune-411041, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	06.07.1993
Com. Reg. No.:	25-17927
Capital Investment / Paid-up Capital :	Rs.13.005 millions
CIN No.: [Company Identification No.]	U51503PN1993PTC017927
Legal Form :	Private Limited Liability Company
Line of Business :	Distributor of Ball Bearings, Valves and Compressors.
No. of Employees :	120 (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 9700000
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.

INFORMATION PARTED BY

Name :	Mr. Ajit Shah
Designation :	Accounts Manager
Contact No.:	91-9850844601
Date :	21.06.2011

LOCATIONS

Registered/ Corporate Office :	143, Vadgam Dhayari, Wadgaon, Pune Singagad Road, Pune-411041, Maharashtra, India
Tel. No.:	91-20-24393751 - 54
Mobile No.:	91-9850844601 (Mr. Ajit Shah)
Fax No.:	91-20-24393759
E-Mail :	rajdeep_bombay@vsnl.net marketing@rajdeepindia.com rajdeepltd@vsnl.com
Website :	http://www.rajdeepindia.com
Area :	20000 sq ft
Location :	Owned
Branches :	Located At: Pune Mumbai Nashik Aurangad
Sanaswadi Office :	Sr. No 1227, Grampanchayat Mouje, Sanaswadi
Email :	marketing@rajdeepindia.com

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Anand D Shah
Designation :	Director
Address :	5, Govardhan Nagar, Pune – 411037, Maharashtra, India
Date of Birth/Age :	06.12.1972
Date of Appointment :	01.04.1994
Name :	Mr. Gautam D Shah
Designation :	Director
Address :	5, Govardhan Nagar, Pune – 411037, Maharashtra, India
Date of Birth/Age :	13.06.1977
Date of Appointment :	20.10.2002
Name :	Mr. Deepak K Shah
Designation :	Director
Address :	5, Govardhan Nagar, Pune – 411037, Maharashtra, India
Date of Birth/Age :	31.10.1948
Date of Appointment :	06.07.1993

KEY EXECUTIVES

Name :	Mr. Ajit Shah
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Kirtilal Premchand Shah (HUF)	10
Anand D Shah	135091
Anand D Shah	25727
Shrikant K Shah	10
Smita S Shah	10
Sandeep S Shah	10
Deepak K Shah	498784
Sandhya D Shah	130361
Deepak K Shah (HUF)	129975
Gautam D Shah	1612
Gautam Deepak Shah	41422
Dushyant K Shah	10
Harsha D Shah	10
Dushyant K Shah (HUF)	10
Neeraj D Shah	10
Bharat K Shah	10
Nilima Bharat Shah	10
Shrenik D Shah	10
Anand D. Shah	35799
Shardaben K Shah	10
Reema S Shah	10
Shweta A Shah	39527
Sheetal S Shah	10
Anand Deepak Shah	28113
Anand Deepak Shah (HUF)	4783
Gautam D. Shah	229051
Sejal G Shah	80
Total	1300465

AS ON 30.09.2010

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Distributor of Ball Bearings, Valves and Compressors.

Products :

· SKF

· L and T Audco

· Atlas Copco

· Leader Valves

· Expert valves

ITC Code	Product Descriptions
008482	Bearing
008481	Valves

Agencies Held :

• SKF Bearings (India) Limited
• Atlas Copco (India) Limited
• L and T

Exports :

Products :

Engineering Products

Countries :

• South Africa
• Mozambia

Imports :

Products :

Finished Products

Countries :

• China

Terms :

Selling :

L/C / Credit

Purchasing :

L/C / Credit

GENERAL INFORMATION

Customers :

Wholesales and End Users

No. of Employees :

120 (Approximately)

Bankers :

• Janta Sahakari Bank Limited, 1444 Shukrawar Peth, Bajirao Road, Through It’s Bajirao Road Branch, Pune 411002, Maharashtra, India
• Union Bank of India, Mumbai

Facilities :

SECURED LOAN	31.03.2010	31.03.2009
	Rs. In Millions
LIC Loan	5.103	5.103
The Shamrao Vitthal Co Op Bank Limited	0.113	17.650
Vehicle loan from TATA Motors Limited	0.000	0.119
Vehicle loan from Janata Sahakari Bank Limited	0.546	0.712
Cash credit from Janata Sahakari Bank Limited	61.164	61.366
Total	66.926	84.950
NOTES: Vehicles Loans Secured by Hypothecation of Vehicles. Cash credit from Janata Sahakari Bank Limited secured by hypothecation of book debts and stock. LIC loan secured by assignment of Keyman policies Loan from The Shamrao Vitthal Co-operative Bank secured by equitable mortgage of Commercial properties.
UNSECURED LOAN	31.03.2010	31.03.2009
	Rs. In Millions
From Directors, Members and their relatives	37.136	41.524
Intercorporate deposits	0.656	0.656
Total	37.792	42.180

Banking Relations :	--
Auditors :
Name :	A M Nahar and Company Chartered Accountant
Address :	‘Manik’, 150, Mukund Nagar, Pune – 411037, Maharashtra, India
Tel No.:	91-22-24265078

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
2250000	Equity Shares	Rs.10/- each	Rs.22.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1300465	Equity Shares	Rs.10/- each	Rs.13.005 millions

NOTE:

(Of the above 690000 equity shares allotted as fully paid up in pursuance of merger sanctioned by the Bombay High Court without payment being received in cash).

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		13.005	13.005	13.004
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		84.803	70.208	64.500
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		97.808	83.213	77.504
LOAN FUNDS
1] Secured Loans		66.926	84.950	53.148
2] Unsecured Loans		37.792	42.180	41.115
TOTAL BORROWING		104.718	127.129	94.263
DEFERRED TAX LIABILITIES		3.197	2.886	2.588
TOTAL		205.723	213.228	174.355
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		31.733	27.618	26.065
Capital work-in-progress		0.046	1.063	1.141
INVESTMENT		1.000	1.000	0.500
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	70.653	98.181	91.548
	Sundry Debtors	124.771	91.224	126.645
	Cash & Bank Balances	30.824	28.499	26.714
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	8.371	8.525	29.311
Total Current Assets		234.619	226.429	274.218
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	55.237	39.639	80.986
	Other Current Liabilities	5.795	2.549	44.106
	Provisions	0.643	0.694	2.477
Total Current Liabilities		61.675	42.882	127.569
Net Current Assets		172.944	183.547	146.649
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		205.723	213.228	174.355

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income			408.902
		Other Income			6.990
		TOTAL (A)	400.027	400.184	415.892
Less	EXPENSES
		Purchases of Trading Goods			351.161
		Increase / Decrease In Stock	377.195	391.401	(16.866)
		Administrative Expenses			35.943
		TOTAL (B)	377.195	391.401	370.237
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	NA	45.655
Less	FINANCIAL EXPENSES (D)		NA	NA	18.579
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		NA	NA	27.076
Less/ Add	DEPRECIATION/ AMORTISATION (F)		NA	NA	1.468
	PROFIT BEFORE TAX (E-F) (G)		22.832	8.783	25.608
Less	TAX (H)		8.211	3.084	7.756
	PROFIT AFTER TAX (G-H) (I)		14.621	5.699	17.852
Less	PRIOR PERIOD ADJUSTMENT OF TAX		0.000	0.000	2.346
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		17.113	16.406	15.900
	EXCESS/ (SHORT) PROVISION FOR TAX IN EARLIER YEARS		(0.026)	0.008	0.000
Less	APPROPRIATIONS
		Transfer to General Reserve	14.000	5.000	15.000
	BALANCE CARRIED TO THE B/S		17.708	17.113	16.406
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.607	5.812	8.400
	TOTAL EARNINGS		0.607	5.812	8.400
	Earnings Per Share (Rs.)		11.22	4.39	13.72

Particulars	31.03.2011
Sales Turnover (Approximately)	570.000

The above information has been parted by Mr. Ajit Shah.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.65	1.42	4.29
Net Profit Margin (PBT/Sales)	(%)	NA	NA	6.26
Return on Total Assets (PBT/Total Assets}	(%)	8.57	3.46	8.53
Return on Investment (ROI) (PBT/Networth)		0.23	0.11	0.33
Debt Equity Ratio (Total Liability/Networth)		1.70	2.04	2.86
Current Ratio (Current Asset/Current Liability)		3.80	5.28	2.15

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2010	31.03.2009	31.03.2008
	Rs. In Millions
Sundry Creditors for Goods	52.285	36.017	76.023
Sundry Creditors for Expenses	2.952	3.622	4.963
Total	55.237	39.639	80.986

Note: Both the company have been demerged and now they are not in the group.

· Rajdeep Distributors Private Limited

· Rajdeep Automation Private Limited

FORM 8:

Corporate identity number of the company	U51503PN1993PTC017927
Name of the company	Rajdeep Industrial Products Private Limited
Address of the registered office or of the principal place of business in India of the company	143, Singhagad Road, Wadgaon Dhayari, Pune 411041, Maharashtra, India rajdeepltd@vsnl.com
This form is for	Modification of charge
Type of charge	· Immovable property · Book debts · Movable property (not being pledge) · Floating charge · Others – Paid Up Stock
Particular of charge holder	Janta Sahakari Bank Limited, 1444 Shukrawar Peth, Bajirao Road, Through It’s Bajirao Road Branch, Pune 411002, Maharashtra, India Email: jsbho@vsnl.com
Nature of instrument creating charge	1. Agreement Interest the Banks. 2. Deed of Hypothecation of Goods and Book Debts. 3. Deed of Hypothecation of Goods and Book Debts. 4. Deed of Confirmation. (All the above deeds executed to constitute a single charge.)
Date of instrument Creating the charge	15.09.2010
Amount secured by the charge	Rs.76.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: 13 % P.A. with monthly rests. Terms of repayment To be repaid on demand or before twelve months. Margin 30% Book Debts. 30% Paid-Up Stock. Extent and operation of the charge Type of Credit Facility : Cash Credit Other Consortium Finance by Janata Sahakari Bank Limited and Shamrao Vitthal Cooperative Bank. Janata Sahakari Bank's Consortium Share is enhanced from Rs.46. 00 Millions to Rs.61.000 Millions. The Shamrao Vitthal Co-Operative Bank's Consortium Share is reduced from Rs.50.000 Millions to Rs.15.000 Millions Total Cash Credit Limit is reduced from Rs.96.000 Millions to Rs.76.000 Millions. Interest Agreement is executed to Indicate Consortium Share Change.
Short particulars of the property charged (Including location of the property)	Primary Security: Present and future paid-up stock and book as per information given to the Bank and records maintained at the registered office of the company. Collateral Security: Immovable property specifically described in the schedule to the deed of further charge on the mortgaged property
Particulars of the present modification	By this Modification Cash Credit Facility is reduced from Rs.96.000 Millions to Rs.76.000 Millions. Stock and Book Debts are provided as primary security to the Cash Credit Limit of Rs.76.000 Millions. Immoveable property continues to be the collateral security to the same cash credit limit. Among this Total Cash Credit Facility, Janata Sahakari Bank provides finance of Rs.61.000 Millions and the Shamrao Vitthal Co-op. Bank Limited provides finance of Rs.15.000 Millions only.

CONTINGENT LIABILITIES:

a. Sales tax and CST liability for the year 2002-03 amounting to Rs.0.550 million (net of payment Rs.0.230million.) Appeal is pending.

b. Income tax liability for A.Y. 2001-02 Rs.0.038 million

c. Demand of Rs.1.474 millions against stamp duty on amalgamation / merger is pending in appeal before stamp duty authorities of Government of Maharashtra

d. Bank and Corporate guarantee Rs.9.108 millions (P.Y. Rs.9.168 millions)

Trade References:

• Auto Service Private Limited
• SKF Bearings India Limited

FIXED ASSETS:

• Free Hold Land
• Building
• Plant and Machinery
• Motor Car
• Vehicle
• Cycle
• Computer
• Telephone Equipment
• Furniture and Fixture
• Electric Equipments

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.72.90
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.