MIRA INFORM REPORT

Report Date :

27.06.2011

IDENTIFICATION DETAILS

Name :	BHAGWATI AUTOCAST LIMITED
Registered Office :	Survey No. 816, Village Rajoda, Near Bavla, Ahmedabad 382220, Gujarat, India
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	20.10.1981
Com. Reg. No.:	004718
Capital Investment / Paid-up Capital :	Rs.28.806 millions
CIN No.: [Company Identification No.]	L27100GJ1981PLC004718
TAN No.: [Tax Deduction & Collection Account No.]	AHMB00776G
Legal Form :	Public Limited Liability Company, Company's Shares are Listed on Stock Exchange
Line of Business :	Manufacturer of Iron
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 528600
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. Patel
Designation :	Finance Department
Date :	24.06.2011

LOCATIONS

Registered Office /Factory :	Survey No. 816, Village Rajoda, Near Bavla, Ahmedabad 382220, Gujarat, India
Tel. No.:	91-2714-232283 / 232066
Fax No.:	91-2714-232383
E-Mail :	autocast@bhagwati.com
Website :	www.bhagwati.com
Location :	Owned
Branches :	101, Shatdal Complex, 1^st Floor, Ashram Road, Ahmedabad 380009, Gujarat, India

DIRECTORS

Name :	Dr. P N Bhagwati
Designation :	Director
Name :	Ms. Reeva Bhagwati
Designation :	Director
Name :	Mr. M P Bhagwati
Designation :	Director
Name :	Mr. M N Shah
Designation :	Director
Name :	Mr. B L Dalal
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Patel
Designation :	Finance Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2011

Category of Shareholder	Total No. of Shares	% of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	772,606	26.82
Bodies Corporate	625,815	21.72
Sub Total	1,398,421	48.54
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	1,398,421	48.54
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	300	0.01
Financial Institutions / Banks	1	-
Sub Total	301	0.01
(2) Non-Institutions
Bodies Corporate	120,900	4.20
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	974,697	33.84
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	286,407	9.94
Any Others (Specify)	99,958	3.47
Non Resident Indians	75,703	2.63
Hindu Undivided Families	24,255	0.84
Sub Total	1,481,962	51.44
Total Public shareholding (B)	1,482,263	51.46
Total (A)+(B)	2,880,684	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	2,880,684	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Iron

Products :

ITC Code	Product Description
72013001	Ferrous Castings

PRODUCTION STATUS

AS ON 31.03.2010

Particulars	Unit	Actual Production
S G Iron Castings	MT	404
CI Castings	MT	9939

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

Bank of Baroda, Ashram Road Branch, Ahemdabad, Gujarat

Facilities :

Rs. In Millions

SECURED LOAN	31.03.2010	31.03.2009
From Bank of Baroda
Term Loan (repayable within one years RS. 13.333 millions)	56.983	1.200
Cash Credit Facilities ( Both are Secured against hypothecation of stock of raw materials, consumable stores, stock in process, finished goods and book debts, plant and machinery and equitable mortgage of the land [ bearing survey No. 816 ] and factory building and further guaranteed by Managing Director and partly guaranteed up to Rs. 22.500 millions by the promoter Company )	0.624	32.410
From Others (secured by hypothecation of a vehicle)	0.000	0.176
TOTAL	57.607	33.786
UNSECURED LOAN
Deposits
From Directors	4.070	3.570
From Company (in which directors are interested as directors)	6.450	6.450
From Others	2.250	2.000
Interest accrued and due on deposits	0.773	0.706
TOTAL	13.543	12.726

Banking Relations :	--
Auditors :
Name :	Millin J Jani and Company Chartered Accountant
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs. 10 each	Rs.30.000 millions

Issued Capital :

No. of Shares	Type	Value	Amount
2933637	Equity Shares	Rs. 10 each	Rs. 29.336 millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2880684	Equity Shares	Rs. 10 each	Rs.28.806 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		28.806	28.806	28.806
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		103.344	84.331	69.383
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		132.150	113.137	98.189
LOAN FUNDS
1] Secured Loans		57.607	33.786	17.883
2] Unsecured Loans		13.543	12.726	11.671
TOTAL BORROWING		71.150	46.512	29.554
DEFERRED TAX LIABILITIES		10.126	4.622	5.489
TOTAL		213.426	164.271	133.232
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		139.499	56.052	61.993
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	26.263	17.556	27.455
	Sundry Debtors	143.918	172.794	154.777
	Cash & Bank Balances	9.182	5.001	2.621
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	46.263	39.160	31.660
Total Current Assets		225.626	234.511	216.513
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	105.570	78.870	110.085
	Other Current Liabilities	14.107	8.136	10.337
	Provisions	32.070	39.765	25.764
Total Current Liabilities		151.747	126.771	146.186
Net Current Assets		73.879	107.740	70.327
MISCELLANEOUS EXPENSES		0.048	0.479	0.912
TOTAL		213.426	164.271	133.232

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	523.720	567.461	489.932
		Other Income	1.038	0.144	2.760
		TOTAL (A)	524.758	567.605	492.692
Less	EXPENSES
		Cost of Materials	247.276	298.621	242.117
		Purchases of Materials for resale	1.057	0.631	0.432
		Manufacturing Expenses	230.174	220.087	211.773
		Increase/(Decrease) in Finished Goods	(3.183)	3.116	1.771
		TOTAL (B)	475.324	522.455	456.093
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		49.434	45.150	36.599
Less	FINANCIAL EXPENSES (D)		7.773	10.377	9.263
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		41.661	34.773	27.336
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.883	7.232	6.956
	PROFIT BEFORE TAX (E-F) (G)		34.778	27.541	20.380
Less	TAX (H)		13.079	9.897	6.886
	PROFIT AFTER TAX (G-H) (I)		21.699	17.644	13.494
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		14.836	14.887	16.393
Less	APPROPRIATIONS
		Transfer to General Reserve	15.000	15.000	15.000
		Proposed Equity Dividend	2.304	2.304	0.000
		Tax on Dividend	0.383	0.391	0.000
	BALANCE CARRIED TO THE B/S		18.848	14.836	14.887
	Earnings Per Share (Rs.)		7.53	6.13	4.68

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010	31.03.2011
	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	160.99	169.07	140.29	159.71
Total Expenditure	147.44	149.31	130.37	143.14
PBIDT (Excl OI)	13.55	19.76	9.92	16.57
Other Income	1.34	0.17	0.17	0.17
Operating Profit	14.89	19.93	10.09	16.74
Interest	3.06	3.54	2.02	3.36
Exceptional Items	0	0	0	0
PBDT	11.83	16.39	8.07	13.38
Depreciation	3.57	2.80	3.00	2.90
Profit Before Tax	8.26	13.59	5.07	10.48
Tax	2.23	4.40	1.64	3.53
Provisions and contingencies	0	0	0	0
Profit After Tax	6.03	9.19	3.43	6.95

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.13	3.10	2.73
Net Profit Margin (PBT/Sales)	(%)	6.64	4.85	4.15
Return on Total Assets (PBT/Total Assets}	(%)	9.52	9.47	7.31
Return on Investment (ROI) (PBT/Networth)		0.26	0.24	0.20
Debt Equity Ratio (Total Liability/Networth)		1.76	1.57	1.84
Current Ratio (Current Asset/Current Liability)		1.48	1.84	1.48

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

Rs. In Millions

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors	105.570	78.870	110.085

REVIEW OF OPERATIONS :

The Company has achieved sales of Rs. 579.800 millions as against Rs. 659.700 millions in the preceding year (i.e. marginal decrease in value of 12.10%). However, the Company has been able to increase the sales in terms of quantity. Due to reduction in prices of our products i.e. C I Castings, sales in terms of value has decreased. Despite adverse factors like volatile raw material price, increase in labour and power cost, the Company has been able to improve profitability with strict control over borrowing cost as well as better working capital management. During the year, the Company has successfully implemented high pressure moulding line .DISAFLEX 70. project within estimated time. By modernising the existing moulding line with high pressure moulding line, the Company will not only able to provide high quality casting products but will also reduce manpower cost and also increase productivity.

FIXED ASSETS:

· Land

· Office Building

· Factory Building

· Plant and Machinery

· Electrical Installations

· Laboratory Equipments

· Furniture and Fixtures

· Vehicles

· Office Equipments

· Computer

UN-AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31^ST MARCH, 2011

(Rs. in millions)

Particulars	Quarter Ended 31.03.2011	Year ended 31.03.2011
Net Sales/ Income from Operations	160.994	630.061
Other Operating Income	0.000	0.000
Expenditure
Increase/(Decrease) in stock in trade and work in progress	(11.058)	(14.049)
Consumption of Raw Materials	84.148	308.563
Purchases of Trading Goods	0.328	0.328
Stores and Spares	23.847	89.114
Power and Fuel	19.635	79.010
Employees Cost	18.541	64.268
Depreciation and Amortization	3.569	12.269
Other Expenses	12.002	43.015
Total	151.012	582.518
Profit from operations before Other Income, Interest and Exceptional Items (1-2)	9.982	47.543
Other Income	1.341	1.848
Profit before Interest and Exceptional Items (3+4)	11.323	49.391
Interest	3.059	11.986
Profit after Interest but before Exceptional Items (5-6)	8.264	37.405
Exceptional Items	0.000	0.000
Profit (+)/ Loss (-) from Ordinary Activities before tax (7+8)	8.264	37.405
Tax expense	2.235	11.800
Net Profit (+)/ Loss (-) from Ordinary Activities after tax (9-10)	6.029	25.065
Extraordinary Items (Net of tax expense)	0.000	0.000
Net Profit (+)/ Loss (-) for the period	6.029	25.605
Paid-up equity share capital (Face value of Rs.10/- each)	28.807	28.807
Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year	--	--
Earnings per share
Before Extraordinary items (not annualized)
- Basic (Rs.)	2.09	8.89
- Diluted (Rs.)	0.00	0.00
After Extraordinary Items
- Basic	2.09	8.89
- Diluted	0.00	0.00
Public Shareholding
- No. of shares	1482463	1482463
- Percentage of shareholding	51.46	51.46
Promoters and promoter group shareholding
Pledged/ Encumbered
- No. of shares	Nil	Nil
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	Nil	Nil
- Percentage of shares (as a % of the total share capital of the company)	Nil	Nil
Non-encumbered
- No. of shares	1398421	1398421
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	100.00	100.00
- Percentage of shares (as a % of the total share capital of the company)	48.54	48.54

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.44.94
UK Pound	1	Rs.71.89
Euro	1	Rs.64.09

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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.