MIRA INFORM REPORT

Report Date :

08.03.2011

IDENTIFICATION DETAILS

Name :	DEEPAK FASTENERS LIMITED
Registered Office :	4^TH Floor, First Mall, Mall Road, Ludhiana-141001, Punjab.
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.11.1990
Com. Reg. No.:	16-010832
CIN No.: [Company Identification No.]	U28991PB1990PLC010832
IEC No.:	3092004621
TIN and VAT No.:	03931025559
TAN No.: [Tax Deduction & Collection Account No.]	JLDD00515E / JLDD00615G
PAN No.: [Permanent Account No.]	AAACD6282G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers and Exporters of Fasteners, Farm Parts, Hex Bolts and Nuts

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 2500000
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

LOCATIONS

Registered Office / Corporate Office :	4th Floor, First Mall, The Mall, Ludhiana – 141 002, Punjab, India
Tel. No.:	91-161-3911111 (30 Lines)
Fax No.:	91-161-2449050/ 2774400
E-Mail :	sales@deepakfasteners.com unbrako@deepakfasteners.com
Website :	http://www.deepakfasteners.com http://www.unbrako.in
Factory 1:	Village Jaspalon, G T Road, Doraha – 141421, India
Tel. No.:	91-161-3911111
Fax No.:	91-1628-245300
Area :	431964 sq. ft.
Location :	Owned
Factory 2/ Branch Office :	Near 33 KV sub Station, Industrial Area, Phase – IV, Tahiwal, UNA, Himachal Pradesh, India
Tel. No.:	91-1975-257300-301
Fax No.:	91-1975-257302
Area :	253779 sq. ft.
Location :	Owned
Branch Offices :	EGA Trade Centre, 809, Poonamallee High Road, 1st Floor, Office No. 5, Kilpauk, Chennai - 600 010, Tamilnadu, India Tel : 91-44-26612389 Fax : 91-44-26612451 E-mail : chennai@deepakfasteners.com Kailash Explanade, D-205/206, IInd Floor, Opposite Shreyas Sinema, LBS Road, Ghatkoper, Mumbai – 400 086, Maharashtra, India Tel : 91-22-40260048 Fax : 91-22-25002952 E-mail : mumbai@deepakfasteners.com
Overseas Office :	Located at: · Australia · Canada · Ireland · United Kingdowm · USA

NOTE:

They have manufacturing facilities at three sites in India and one in (Shannon) Ireland Unbrako Plant Except for Shannon Plant Manufacturing locations are owned by us.

DIRECTORS

As On : 30.09.2010

Name :	Mr. Kailash Kalra
Designation :	Director
Address :	600/13A, Sagar Street, Civil Lines, Ludhiana – 141 003, Punjab, India
Date of Birth/Age :	14.03.1938
Qualification :	B. Tech (Civil)
Experience :	44 years
Date of Appointment :	12.11.1990
Name :	Mr. Sanjeev Kalra
Designation :	Director
Address :	600/13A, Sagar Street, Civil Lines, Ludhiana – 141 003, Punjab, India
Date of Birth/Age :	13.03.1964
Qualification :	MBA (Finance)
Experience :	24 years
Date of Appointment :	12.11.1990
Name :	Mr. Deepak Kalra
Designation :	Director
Address :	600/13A, Sagar Street, Civil Lines, Ludhiana – 141 003, Punjab, India
Date of Birth/Age :	09.05.1966
Qualification :	B. Tech (Mech)
Experience :	22 years
Date of Appointment :	12.11.1990
Name :	Mr. Sanjiv Singhal
Designation :	Director
Address :	1A, Firpos, 47-A, Bhlabhai Desai Road, Breach Candy, Mumbai, Maharashtra, India
Date of Birth/Age :	23.03.1967
Date of Appointment :	11.06.2010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Deepak Kalra	201485
Sanjeev Kalra	187829
Kailash Kalra	193121
Prem Kalra	21088
Mona Kalra	7785
Monika Kalra	8285
Ajay Sharma	101
Deepak Fibers Limited, India	34000
Shree Ganesh Jewellers Limited, India	309538
Deepak Infosys Lmited, India	40000
Kailash Impex Limited, India	20000
Sanjeev Kalra and Sons (Karta Sanjeev Kalra)	2750
Deepak Kalra and Sons (Karta Deepak Kalra)	2750
Banyam Tree Growth Capital LLC	125
Total	1028857

AS ON 30.09.2010

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		39.23
Directors or relatives of directors		60.77
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Fasteners, Farm Parts, Hex Bolts and Nuts

Products :

Item Code No. (ITC Code)	Product Description
U28991	Sale of Fasteners

Brand Name :

DFL and Unbrako

GENERAL INFORMATION

Suppliers :

· Atma Ram Mela Ram Steels Private Limited

· Saeco Steel Rolling Mills

· Easy Tours and Cargo Private Limited

· Mittal Packing Stores

· Durga Chemical Agency

· Bombay Motor Company

· Birdi Carbide Dies

· Deol Enterprises

· NBC Industrial

· R. K. Stamp Makers

· Star Polyfab

· Devi Power Private Limited

· L. K. Sales

· Vijay Shanker Chandak and Company

· Nitin Bag Store

· H. K. Steel Industrial

· Manjit Metal Works.

· Dutta Enterprises

· Indo Mobil Limited

Customers :

· Gammon India Limited

· Bajaj Hindustan Limited

· NTPC Limited

· Om Sales Corporation, Mumbai

· Beskal S. A. Greece

· Mitwali Steel Products Company

· B. T. Steels Limited

· Bremick Private Limited

· ABU Dhabi Oilfield Supply Center

· Euro Hardware Limited

· Karela State Electricity Board

· Punj Lloyed Limited

· Bharat Heavy Electrical Limited

· Kochi Refineries Limited

· Alabatain Industrials Company

· Serco Ryan Limited

· Stokvis Trading B .V.

· Rajindera Kumar and Company

No. of Employees :

(180-Office and 1600-Factory) (1800 Group) (Approximately)

Bankers :

· Allahabad Bank, IIFB Cheema Chowk, 165, Industrial Area-A, Ludhiana-141002, Punjab, India

· Oriental Bank of Commerce, Overseas Branch, G. T. Road, Miller Ganjj, Ludhiana-141003, Punjab, India

Facilities :

SECURED LOAN	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Loans and Advance from Banks
Term Loans	148.834	112.159
Working Capital	588.386	479.934
Term Loan Against Car	9.441	6.958
Total	746.661	599.051
UNSECURED LOAN	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Shareholders and others	13.629	23.290
Total	13.629	23.290

Banking Relations :	--
Auditors :
Name :	Rakesh Goel and Associates Chartered Accountants
Address :	B – 15/503, ST No.1, Nirankari Mohalla, Overlock Road, Ludhiana, India
Tel. No.:	91-161-2532574/ 2533174
Fax No.:	91-161-2532574
E-Mail :	ca_rakeshgoel@sify.com
Subsidiaries :	· Deepak Fasteners UK Limited · Deepak Fasteners (Shannon) Limited · Deepak Fasteners (Australia) Private Limited · Deepak Fasteners (Shanghai) Company Limited

CAPITAL STRUCTURE

(AS ON 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
10100000	Equity Shares	Rs.10/- each	Rs.101.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1028732	Equity Shares	Rs.10/- each	Rs.10.287 Millions

(AS ON 30.09.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
10100000	Equity Shares	Rs.10/- each	Rs.101.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1028982	Equity Shares	Rs.10/- each	Rs.10.290 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		10.287	10.287	9.791
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		625.387	456.739	275.422
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		635.674	467.026	285.213
LOAN FUNDS
1] Secured Loans		746.661	599.051	184.891
2] Unsecured Loans		13.629	23.290	0.000
TOTAL BORROWING		760.290	622.341	184.891
DEFERRED TAX LIABILITIES		16.503	14.113	3.245
TOTAL		1412.467	1103.480	473.349
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		338.991	293.072	100.951
Capital work-in-progress		9.898	39.172	17.907
INVESTMENT		398.829	302.726	123.907
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	594.009	414.944	140.046
	Sundry Debtors	339.707	242.592	185.710
	Cash & Bank Balances	107.184	50.027	39.675
	Other Current Assets	60.174	0.000	0.000
	Loans & Advances	0.000	60.083	33.471
Total Current Assets		1101.074	767.646	398.902
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	253.095	193.567	137.925
	Other Current Liabilities	69.060	34.951	0.000
	Provisions	114.170	70.744	30.503
Total Current Liabilities		436.325	299.262	168.428
Net Current Assets		664.749	468.384	230.474
MISCELLANEOUS EXPENSES		0.000	0.126	0.110
TOTAL		1412.467	1103.480	473.349

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1546.565	1723.441	992.235
		Other Income	38.796	43.244	9.100
		TOTAL (A)	1585.361	1766.685	1001.335
Less	EXPENSES
		Raw Material Consumed	829.691	939.937	513.524
		Manufacturing Expenses	332.624	414.430	200.410
		Personal Expenses	43.661	36.113	18.078
		Administrative Expenses	63.985	53.692	27.631
		Selling and Distribution Expenses	55.713	48.515	41.076
		Increase/(Decrease) in Finished Goods	(131.655)	(50.014)	46.595
		Difference of Excise Duty on Stocks	(1.128)	1.797	(1.360)
		Miscellaneous Expenditure Written off	0.126	0.136	0.060
		TOTAL (B)	1193.017	1444.606	846.014
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		392.344	322.079	155.321
Less	FINANCIAL EXPENSES (D)		90.991	84.721	37.078
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		301.353	237.358	118.243
Less/ Add	DEPRECIATION/ AMORTISATION (F)		46.854	40.868	13.019
	PROFIT BEFORE TAX (E-F) (G)		254.499	196.490	105.224
Less	TAX (H)		85.852	71.698	38.576
	PROFIT AFTER TAX (G-H) (I)		168.647	124.792	66.648
	EARNINGS IN FOREIGN CURRENCY
		Sale of goods manufactured	NA	NA	253.997
		Sale of goods trade	NA	NA	110.358
	TOTAL EARNINGS		NA	NA	364.355
	Earnings Per Share (Rs.)		163.94	191.00	107.47

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	10.64	7.06	6.66
Net Profit Margin (PBT/Sales)	(%)	16.46	11.40	10.60
Return on Total Assets (PBT/Total Assets}	(%)	17.67	18.52	21.05
Return on Investment (ROI) (PBT/Networth)		0.40	0.42	0.37
Debt Equity Ratio (Total Liability/Networth)		1.91	1.97	1.24
Current Ratio (Current Asset/Current Liability)		2.52	2.57	2.37

LOCAL AGENCY FURTHER INFORMATION

Note : Registered Office of the company has been shifted from E – 536, Phase VI, Focal Point, Ludhiana – 141 010, Punjab, India to the present address w.e.f. 30.12.2010

OPERATION

Despite slow market in major part of the financial year 2009-10 the company recorded total Net Sales and other income of Rs.1585.400 millions for the year ended March, 2010 as against Rs.1766.700 millions achieved during the previous year. The profit after tax was higher at Rs. 168.600 millions as against Rs. 124.800 millions in the previous year.

Supply of Fasteners to replacement and original equipment segments wherein the company holds a key position, continue to be the area of focus of the company in order to meet the increase demand. The company has sufficient installed capacity. The Company continue to follow its philosophy to provide the high quality products at the lower costs, coupled with excellent customer services. The market is witnessing fierce competition. All efforts were made under total quality management. Total productivity management and six sigma Umbrella to Continuously improve the cost, quality, delivery and competitiveness. The Company products are well accepted in the market in brief, all customers of the company are on growth path and company is confident to meet their increased demand. The volume growth in domestic market is expected to be in the region of 35% for 2010-2011.

FORM 8

Corporate identity number of the company	U28991PB1990PLC010832
Name of the company	DEEPAK FASTENERS LIMITED
Address of the registered office or of the principal place of business in India of the company	E – 536, Phase VI, Focal Point, Ludhiana – 141 010, Punjab, India Ca_rakeshgoel@sify.com
This form is for	Creation of charge
Type of charge	Immovable property Movable property (not being pledge)
Particular of charge holder	Oriental Bank of Commerce, Overseas Branch, G. T. Road, Miller Ganjj, Ludhiana-141003, Punjab, India
Nature of instrument creating charge	Agreement of hypothecation of assets-loan Extension of EM -ltr-22
Date of instrument Creating the charge	23.11.2010
Amount secured by the charge	Rs. 165.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Extent and operation of the charge Extent Of Operation 100% Other Hypothecation of documents of title of goods in case of LC on D.P. Basis and Hypothecation of goods in case of LC on D.A. Basis
Short particulars of the property charged (Including location of the property)	EM of land and building 7biga at barmalipur g.t. Road Ludhiana EM of land and building 65 k-7.5m jaspalon G.T. Road near doraha Ludhiana

FIXED ASSETS

· A.C. and Cooler

· Building

· Car

· Computers

· Cycle

· Electric Installation

· Fan

· Furniture and Fixture

· Generator

· Land

· Machinery

· Office Equipment

· Scooter

· Transformer

· Truck

· Tube Well

· Waste Water Treatment

· Plant

· Weighing Machine

WEB SIDE DETAILS

PROFILE

The Largest Industrial Fasteners Manufacturer in India since 1956 and today the proud Worldwide Owner of UNBRAKO, Deepak Fasteners Limited is committed to quality and delivery at the best possible prices. Since its establishment, Deepak Fasteners Limited has proactively implemented global strategies to create an internationally integrated business structure.

Today they have well equipped 4 manufacturing plants, with latest technology as well as skilled and learned workforce. This helps to perfect our products to the minutest of details, achieving near zero-defect results, assuring the High Quality and Life Long Durability. They strictly follow International Standards like DIN, ISO, IS, ASTM, BS, ANSI etc. for production. The modern lab equipments facilitate in maintaining quality and constantly innovating their production methods, thereby enhancing customer satisfaction. They have expertise not only in standard products, but also in made-to-order customized products.

The product’s life and quality is measured not only by its grades and standards but also by its finish, which prevents it from rusting and adds strength to the material. They are proud to say that they excel in various coatings done in-house in their manufacturing plants to meet the customer requirements. To name a few: Hot Dip Galvanizing, Mechanical Galvanizing, Electro Galvanizing (Zinc and Copper Cadmium), PTFE Coating and Delta Protekt. Apart from these standard coatings we also specialize in Rilsan Coating (with WRC approval) for Water Board Industry of UK, Europe and USA.

As facts speak louder than words, Their claim of being World Class Fasteners Manufacturers is authenticated by the following certifications credited to them by various World Level Organizations: ISO 9001:2000 (Certification No – FM 551489), ISO / TS 16949:2002 (Certification No. –TS 549578), WRC Approved (Certification No– PT/285/0609), BS EN ISO 9001:2008 (Certification No.– 24919, which is monitored by NQA) and CE Certified (0038/CPD/MUM/0910021/1).

The World Level Recognitions and Unshakeable trust of the customers are the forces that encourage them to build a worldwide accessible network to cater the demand of this voracious market. With Global Infrastructure in 5 countries covering 4 continents, Deepak Fasteners has already made its mark in the International Market and is still growing to reach the lofty heights and make a mark in the Fasteners World.

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.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	YES
--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.