MIRA INFORM REPORT

Report Date :

08.03.2011

IDENTIFICATION DETAILS

Name :	INFINITY FAB ENGINEERING COMPANY PRIVATE LIMITED
Registered Office :	Plot No. 31, Machhe Industrial Area, Machhe, Belgaum – 590 014, Karnataka
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	17.08.1992
Com. Reg. No.:	08-13449
CIN No.: [Company Identification No.]	U85110KA1992PTC013449
TAN No.: [Tax Deduction & Collection Account No.]	BLRI02642D
PAN No.: [Permanent Account No.]	AAAFI4806L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Pre Fabricated Structures and providing various engineering construction services.

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 75624
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

INFORMATION PARTED BY

Name :	Mr. Ravindra Ganmukhi
Designation :	Director
Contact No.:	91-9448281050
Date :	03.03.2011

LOCATIONS

Registered Office :	Plot No. 31, Machhe Industrial Area, Machhe, Belgaum – 590 014, Karnataka, India
Tel. No.:	91-831-2411967
Fax No.:	91-831-2411020
E-Mail :	infinityengg@yahoo.co.in raviganamukhi@yahoo.co.in surevict@gmail.com
Website :	www.infinityfab.com
Factory :	G-1, Sukhsagar Apartments, Opposite 3rd Railway Gate, Tilakwadi, Belgaum – 590 006, Karnataka, India
Tel. No.:	91-831-4202754
Fax No.:	91-831-4202754

DIRECTORS

AS ON 30.09.2009

Name :	Mr. Ravindra Vasantrao Ganamukhi
Designation :	Chairman cum Managing Director
Address :	G 1, Sukhsagar Apartment, Near Third Railway Gate, Tilakwadi, Belgaum – 590 006, Karnataka, India
Mobile No:	91-9448281050
Date of Birth/Age :	09.03.1970
Date of Appointment :	17.08.1992
Name :	Mr. Irshad Mehboob Dakhani
Designation :	Director
Address :	1247, Bauxite Road, Sahyadri Nagar, Hindalga, Belgaum – 590 001, Karnataka, India
Date of Birth/Age :	24.05.1970
Date of Appointment :	24.08.1999
Name :	Mrs. Snehalata Vasantrao Ganamukhi
Designation :	Director
Address :	G 1, Sukhsagar Apartment, Near Third Railway Gate, Tilakwadi, Belgaum – 590 006, Karnataka, India
Date of Birth/Age :	24.06.1951
Date of Appointment :	24.08.1999
Name :	Mr. Vasantrao Gurubasappa Ganamukhi
Designation :	Director
Address :	G 1, Sukhsagar Apartment, Near Third Railway Gate, Tilakwadi, Belgaum – 590 006, Karnataka, India
Date of Birth/Age :	27.12.1941
Date of Appointment :	02.05.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2009

Names of Shareholders	No. of Shares
Mr. Ravindra Vasantrao Ganamukhi	1761
Mrs. Sangeeta Ravindra Ganamukhi	640
Mrs. Rashmi Ravi Talikoti	310
Mr. Nusrat Irshad Dakhani	200
Mrs. Snehalata Vasantrao Ganamukhi	280
Mr. Vasantrao Gurubasappa Ganamukhi	304
Mr. Irshad Mehboob Dakhani	450
Mr. Ravi Chandrashekharappa Talikoti	200
Mr. W Jambanna	246
Total	4391

Equity share break-up as on 30.09.2009

Category	Percentage
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Pre Fabricated Structures and providing various engineering construction services.
Products :	v Industrial Sheds/Manufacturing Plants v Warehouses/Godowns v Airport/Railway/Bus Terminals v Aircraft Hangers, Supermarkets/Malls, etc. v Canopies for Petroleum Retail Outlets and Buildings v Highway Toll Booths v Pre Built Shelters etc. v Underground and Above Ground Petroleum/Chemical Storage Tanks
Services Offered :	Turnkey Construction of, v Pre Engineered Building Systems   v Pre Fabricated Structures v Structural Fabrication v Petroleum Retail Outlets (Petrol Pumps) v Petroleum Storage Tank Farms v Turnkey Projects involving Civil Construction and Steel Fabrication Works.
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

GENERAL INFORMATION

Suppliers :

v Indian Oil Corporation Limited

v Hindustan Petroleum Corporation Limited

v Bharat Petroleum Corporation Limited

v Mangalore Refinery and Petrochemicals Limited

v Nuclear Power Corporation Limited

v Mecon Limited

Customers :

Corporate

No. of Employees :

70 (8 in Office, 62 in Factory)

Bankers :

v State Bank of India

Commercial Branch, Goa Ves., Belgaum – 590 011, Karnataka, India

v Kotak Mahindra Bank Limited

Facilities :

(Rs. in millions)

Secured Loans	31.03.2009	31.03.2008
Fullerton India Credit Company Limited	0.659	0.600
Future Money	0.220	0.400
Kotak Mahindra Bank Limited	--	0.519
State Bank of India C/C	16.444	16.927
SBI- Malmaruti (Car loan)	0.271	0.352
State Bank of India D/L	3.886	5.522
Total	21.480	24.322
Unsecured Loans From Directors and Their Relatives
Mr. K Hemakshppa	0.060	0.060
Mr. Gundappa Nagalikar	0.200	0.200
Mr. K S Satawani	0.200	0.200
Mr. Ravi Talikoti	0.200	0.200
Mr. Prakash Ghewari	--	0.050
Mr. Nagraj	0.400	0.500
Mr. Chetan K. Satwani	0.050	0.050
Mrs. Geeta P. Gheewari	--	0.050
Mr. Anand Kulkarni	0.050	0.100
Ms. Noor	--	0.260
Mr. Rafiq Mujawar	--	0.273
Ms. W Parvati	0.050	0.050
Total	1.210	1.993

Banking Relations :	--
Auditors :
Name :	G A Mekalke and Company Chartered Accountants
Address :	14, Cantonment Complex, Opposite Fish Market, Camp, Belgaum – 590 001, Karnataka, India
Memberships :	v Belgaum Chamber of Commerce v Small Scale Industries

CAPITAL STRUCTURE

As on 30.09.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
5000	Equity Shares	Rs. 1000/- each	Rs. 5.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4241	Equity Shares	Rs. 1000/- each	Rs. 4.241 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2010
Sales Turnover (Approximately)	62.500

Expected Sales (2010-2011) : Rs.80.000 millions

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		4.391	4.391	4.391
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		14.515	11.385	8.522
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		18.906	15.776	12.913
LOAN FUNDS
1] Secured Loans		21.481	24.321	18.963
2] Unsecured Loans		1.210	1.993	2.565
TOTAL BORROWING		22.691	26.314	21.528
DEFERRED TAX LIABILITIES		0.165	0.190	0.223
TOTAL		41.762	42.280	34.664
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.019	2.323	2.470
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.001	0.001	0.001
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	16.503
	Sundry Debtors	0.000	0.000	12.611
	Cash & Bank Balances	0.000	0.000	0.991
	Other Current Assets	0.000	0.000	6.232
	Loans & Advances	47.388	50.704	1.077
Total Current Assets		47.388	50.704	37.414
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	7.644	10.746	5.172
	Provisions	0.000	0.000	0.050
Total Current Liabilities		7.644	10.746	5.222
Net Current Assets		39.744	39.958	32.192
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		41.762	42.280	34.664

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Sales	71.732	70.758	61.492
		Other Income	0.000	0.000	0.000
		TOTAL (A)	71.732	70.758	61.492
Less	EXPENSES
		Administrative Expenses	63.702	63.807	56.599
		TOTAL (B)	63.702	63.807	56.599
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		8.030	6.951	4.893
Less	FINANCIAL EXPENSES (D)		4.602	3.863	2.739
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.428	3.088	2.154
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.323	0.378	0.410
	PROFIT BEFORE TAX (E-F) (G)		3.105	2.710	1.744
Less	TAX (H)		(0.024)	(0.033)	(0.046)
	PROFIT AFTER TAX (G-H) (I)		3.129	2.743	1.790
	Earnings Per Share (Rs.)		712	--	--

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	4.36	3.88	2.92
Net Profit Margin (PBT/Sales)	(%)	4.33	3.83	2.84
Return on Total Assets (PBT/Total Assets}	(%)	6.28	5.11	4.37
Return on Investment (ROI) (PBT/Networth)		0.16	0.17	0.13
Debt Equity Ratio (Total Liability/Networth)		0.40	0.68	0.40
Current Ratio (Current Asset/Current Liability)		6.20	4.72	7.16

LOCAL AGENCY FURTHER INFORMATION

Financial Results

The working result of the current year shows total turnover of Rs. 71.732 millions and net profit of Rs. 3.129 millions as compared to turnover of Rs. 70.758 millions and net profit of Rs. 2.743 millions for the previous year. The results for the year are encouraging.

Form 8

Name of the company	INFINITY FAB ENGINEERING COMPANY PRIVATE LIMITED
Presented By	v State Bank of India Commercial Branch, Goa Ves., Belgaum – 590 011, Karnataka, India
1) Date and description of instrument creating the change	Date : 25.05.1995 General Agreement for the grant of SIA and Hypothecation of Goods, Book Debts and Other Assets.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 0.800 million
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	All Present and Future Goods, Book Debts, Movables and Other Assets of the Borrower including Documents of Title to Goods and Other Assets such as Outstanding Moneys, Receivables, Claims, Bills, Invoices, Documents and Securities, Contracts, Engagements, Investments, Rights and the existing Machinery and all Future Machinery belonging to or in possession of or under the control of the Borrower wherever lying stored and kept and whether in possession of the Borrower or of the Bank or of any third party whether in India or elsewhere throughout world (including all such goods, machineries, movables and other assets as may be in course of shipment, transit or delivery) by way of First Charge.
4) Gist of the terms and conditions and extent and operation of the charge.	· Rate of Interest 16% per annum with quarterly rests. · Repayment On Demand
5) Name and Address and description of the person entitled to the charge.	State Bank of India Commercial Branch, Goa Ves., Belgaum – 590 011, Karnataka, India
6) Date and brief description of instrument modifying the charge	Date: 29.11.2005 (29^th day of November, 2005). Agreement of Loan-cum-Hypothecation SME 2. Link Letter SME 12. (Both the above pertain to same charge)
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	By the above, the amount secured by the charge stands Increased from Rs. 14.000 millions to Rs. 21.000 millions. (CC Sts Rs. 7.000 millions, CC Rec Rs. 7.000 millions, SME Credit Plus – Rs. 2.000 millions, LC Rs. 3.000 millions and BG – Rs. 2.000 millions ) Rate of Interest: 12.25% per annum with periodical rests or at such rate/s and at such periodical rests as the Bank may specify from time to time. Repayment : On Demand Margin: 25% on RM/Receivables/BG/LC and 33% on SPG. Security of Stocks, goods, Book Debts, Receivables, Other Movable Assets, Plant and Machinery, etc. already obtained and now obtained both present and future are available for the entire credit facilities of Rs. 21.000 millions by way of first charge.

This form is for	Modification of charge
Charge identification number of the charge to be modified	90198815
Corporate identity number of the company	U85110KA1992PTC013449
Name of the company	INFINITY FAB ENGINEERING COMPANY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 31, Machhe industrial Area, Machhe, Belgaum – 590014, Karnataka, India
Type of charge	· Book Debts · Movable Property (not being pledge) · Floating Charge
Particular of charge holder	State Bank of India Commercial Branch, Goa Ves., Belgaum – 590 011, Karnataka, India E-mail : surevict@gmail.com
Nature of instrument creating charge	Supplementary Agreement of Loan-Cum-Hypothecation and Letter of arrangement
Date of instrument Creating the charge	19.03.2008
Amount secured by the charge	Rs. 27.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	· Rate of interest WCL and Demand Loan at 2% above SBAR with minimum of 14.25% P.A. rising or falling there with on daily products with minimum monthly rests. Present effective rate 14.25% per annum. Penal Interest for non compliance of terms of sanction: Max 2% per annum over the normal rate: Prepayment penalty as per terms of sanction. · Terms of repayment WCL – On Demand. Advance is for a period of 12 months and subject to review as per sanction. Demand Loan: In 33 monthlly installments with effect from June 2008 (Moraatorium period of 3 months) first 32 Installments of Rs. 0.166 million each and final installment of Rs. 0.188 million. · Margin On Raw Materials – indigenous 25% On Semi finished goods 33.33% On Receivables 25% cover period for receivables 120 days On Letters of credit 20% On Bank Guarantee 20% · Extent and operation of the charge Exclusive First charge on the assets of the company and to the full extent. · Others Cash Credit facilities from Rs. 0.160 million WCDL – Rs. 5.500 millions BG – Rs. 6.000 millions Total – Rs. 27.500 millions
Particulars of the property charged	Hypothecation of company’s present and future movable fixed assets and current assets like stocks, which includes raw materials, semi-finished and finished goods, book debts, receivables, outstanding monies, bills, rights, stores, components, furniture and fittings, other movables, plant and machinery, vehicles and assets to be purchased out of bank finance.
Date of modification to present modification	27.02.2007
Particulars of the present modification	The amount secured by the charge stands renewed at the same level of Rs. 27.500 millions. The securities described and detailed in Col No 14 herein above continue for the renewed limit All other terms and conditions remain unchanged.

Fixed Assets

· Construction

· Electrification

· Furniture

· Generator

· Machinery

· Vehicles

· Vehicles (Scorpio)

· Computer

· Tools

TRADE REFERENCE:

• Mecon Limited
• Indian Oil Corporation Limited

As Per Website Details

Incorporated in the year 1992, Subject is a noted business entity engaged in manufacture of Pre Fabricated Structures and providing various engineering construction services. These include, 

· Design, Fabrication and Erection of Pre-Engineered Building Systems (PEBs) for Industrial Buildings/Sheds, Warehouses/Godowns, Canopies, Aircraft Hangers, Malls, Bus/Railway Terminuses, etc.

· Design, Fabrication and Erection of Pre-Fabricated Structures like CANOPIES for Petroleum Retail Outlets and Large Buildings, Highway Toll Booths, Pre-Built Shelters, etc.

· Petroleum/Chemical Storage Tanks (Underground and Above ground)

· Turnkey Construction of Pre-Engineered Building Systems, Petroleum Retail Outlets, etc.

The company is professionally managed by a group of technocrats having versatile knowledge and experience in the discipline. High quality and timely delivery are the two parameters, which have kept them ahead in the industry. The company is a perfect blend of man and machine to deliver its clients with the best possible engineering construction services and allied products at the most competitive prices. They are committed to deliver the best, thus leaving no space for quality degradation. The company is associated with Belgaum Chamber of Commerce and Industries.

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 :

The 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.

The 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. 45.13
UK Pound	1	Rs. 73.36
Euro	1	Rs. 63.06

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

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.