MIRA INFORM REPORT

Report Date :

14.03.2011

IDENTIFICATION DETAILS

Name :	COBRA CARBIDE PRIVATE LIMITED

Registered Office :	No. 54, Bommasandra Jigani Link Road, Industrial Area, Phase IV, Bangalore – 560099, Karnataka

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	19.04.2002

Com. Reg. No.:	08-030394

CIN No.: [Company Identification No.]	U35202KA2002PTC030394

TAN No.: [Tax Deduction & Collection Account No.]	BLRC03531D

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer and exporter of Carbide Tools

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 617000

Status :	Moderate

Payment Behaviour :	Slow but Correct

Litigation :	Clear

Comments :	Subject is an established company having moderate track. The company incurred some losses in the current year. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered 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. Satya
Designation :	Accountant
Contact No.:	91-8110-415003
Date :	11.03.2011

LOCATIONS

Registered Office/Factory :	No. 54, Bommasandra Jigani Link Road, Industrial Area, Phase IV, Bangalore – 560099, Karnataka, India
Tel. No.:	91-8110-415003
Fax No.:	91-8110-415007
E-Mail :	sales@cobracarbide.com
Website :	http://www.cobracarbide.com
Location :	Owned

DIRECTORS

AS ON : 30.09.2010

Name :	Mr. Rakesh Aghi
Designation :	Whole Time Director
Address :	No.1A, Cresent Park Apartmenr Near Manchester, Aprtments, Rent House Road, Bangalore – 560001, Karnataka, India
Date of Birth/Age :	09.07.1963
Date of Appointment :	19.04.2002

Name :	Mr. Sameer Aghi
Designation :	Whole Time Director
Address :	No. 54, Bommasandra Jigani Link Road, Industrial Area, Phase II, Near Bus Stop, Bangalore – 560099, Karnataka, India
Date of Birth/Age :	20.03.1972
Date of Appointment :	19.04.2002

Name :	Mrs. Swaran Lata Aghi
Designation :	Director
Address :	182, Sadar Kabadi Bajar, Meerut Sadar Bazar, Meerut – 250001, Uttar Pradesh, India
Date of Birth/Age :	10.07.1930
Date of Appointment :	29.01.2003

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON : 30.09.2010

Names of Shareholders (Equity Shares)		No. of Shares
Mr. Rakesh Aghi		2600000
Mr. Sameer Aghi		860000
Mrs. Swaran Lata Aghi		40000

Total		3500000

Names of Shareholders (Preference Shares)		No. of Shares
Mr. Rakesh Aghi		300000

Total		300000

AS ON : 30.09.2010

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	0.00
Bodies corporate	0.00
Directors or relatives of Directors	100.00
Other top fifty shareholders	0.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and exporter of Carbide Tools

Exports :
Products :	Carbide Tools
Countries :	Germany UAE China France

Imports :
Products :	Raw Materials
Countries :	China US

Terms :
Selling :	L/C, Cash, Credit

Purchasing :	L/C, Cash, Credit

PRODUCTION STATUS AS ON : 31.03.2010

Licensed Capacity	NA
Installed Capacity	550000 End Mills
	500000 Drills
	500000 Reamers
	1000000 Burrs
	1000000 inserts

GENERAL INFORMATION

Suppliers :

PTG MBH
Ambica Trading Corporation
B and Q Traders
Balaji Industries Enterprises
Steer Engineering Private Limited
Aditya Associates
Anushka Enterprises
Tata Power Company Limited
A.V. Engineering

Customers :

Others
Manufacturer
V.K. Enterprises
Ray Corporation
Raj Corporations
Rudraksh Enterprises
PK Industries
Fine Products Enterprises
B Q Enterpises
Ascent Tools
Ambica Trading Corporation

No. of Employees :

150 (Approximately) (In Office 50 and In Factory – 100)

Bankers :

Axis bank Limited, Branch Anandrao Circle – Bangalore, Karnataka, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Loan From Banks (Secured by Hypothecation of vehicles)	0.282	0.526
Packing Credit (Secured by hypothecation of stock and Receivable)	--	10.000
Cash Credit from Bank (Secured by hypothecation of stock and Receivable)	40.424	30.355
Term Loans (Secured against hypothecation of present and future assets of the company)	83.409	97.445
Total	124.115	138.326

Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Directors	9.309	8.309

Total	9.309	8.309


Banking Relations :	--

Auditors :
Name :	CGS And Company Chartered Accountant
Address :	No.48, 3^rd Floor, R V Road, Basavanagudi, Bangalore – 560004, Karnataka, India

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount

3500000	Equity Shares	Rs.10/- each	Rs. 35.000 Millions

300000	Non Cumulative Redeemable Preference Shares	Rs.100/- each	Rs. 30.000 millions

	TOTAL		Rs. 65.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

3500000	Equity Shares	Rs.10/- each	Rs.35.000 Millions

300000	Non Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.30.000 millions

	TOTAL		Rs.65.000 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		65.000	65.000	65.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		89.237	93.444	85.583
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		154.237	158.444	150.583
LOAN FUNDS
1] Secured Loans		124.115	138.326	91.848
2] Unsecured Loans		9.309	8.309	4.378
TOTAL BORROWING		133.424	146.635	96.226
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		287.661	305.079	246.809

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		239.949	251.460	249.314
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	45.893	35.799	13.127
	Sundry Debtors	22.825	37.080	36.517
	Cash & Bank Balances	2.885	1.769	1.709
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	4.581	3.075	1.790
Total Current Assets		76.184	77.723	53.143
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	19.544	19.996	50.733
	Other Current Liabilities	6.494	1.696	3.648
	Provisions	2.434	2.412	1.267
Total Current Liabilities		28.472	24.104	55.648
Net Current Assets		47.712	53.619	(2.505)

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		287.661	305.079	246.809

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	84.471	115.267	90.326
		Other Income	4.697	11.929	6.480
		TOTAL	89.168	127.196	96.806

Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses	93.374	118.187	89.980
		Interest
		Depreciation
		TOTAL	93.374	118.187	89.980

	PROFIT BEFORE TAX		(4.206)	9.009	6.825

Less	TAX		0.000	1.148	1.009

	PROFIT AFTER TAX		(4.206)	7.861	5.817

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	48.049	76.553	NA
	TOTAL EARNINGS		48.049	76.553	NA

	IMPORTS
		Raw Materials and Consumables	26.491	59.727	NA
	TOTAL IMPORTS		26.491	59.724	NA

	Earnings Per Share (Rs.)		(1.10)	2.06	1.53

Expected Sales (2010-2011) : Rs. 200.000 millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(4.71)	6.18	6.00

Net Profit Margin (PBT/Sales)	(%)	(4.97)	7.81	7.55

Return on Total Assets (PBT/Total Assets}	(%)	(1.33)	2.79	2.25

Return on Investment (ROI) (PBT/Networth)		(0.02)	0.05	0.04

Debt Equity Ratio (Total Liability/Networth)		1.04	1.05	1.00

Current Ratio (Current Asset/Current Liability)		2.67	3.22	0.95

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details :

(Rs. In Millions )

Particulars	31.03.2010	31.03.2009	31.03.2008

Sundry Creditors	19.544	19.996	50.733

Background :

Subject (“the Company”) was incorporated on April 19, 2002. The Company has been approved under the scheme of 100% Export Oriented Unit (EOU) on 31 07.2002 vide a letter number VI1ll4010712002-EOU-I of even date and the said license is valid up to 3010712007 and the Company is eligible to claim lncome Tax exempted Under Section 106 of the Income Tax Act, 1961

The Company is primarily engaged in manufacturing high precision carbide cutting tools like End Mills, Drills. Reamers and Roughers The Company is also into design and manufacture of special tools as required by the industry.

Note : The Registered office address of the company has been shifted from 39, Konappana Agraghara, Hosurroad, P.O. Electronic City, Bangalore – 561229, Karnataka, India to present w.e.f 28.03.2007.

Form : 8

Corporate identity number of the company	U35202KA2002PTC030394
Name of the company	COBRA CARBIDE PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No.54, Bommasandra Jigani Link Road, Industrial Area, Phase IV, Bangalore, Karnataka – 560099, India
This form is for	Modification of charge
Type of charge	Immovable property
Particular of charge holder	Axis Bank Limited, Credit Management Centre, No.41, 1st Floor, Seshadri Road, Anandrao Circle, Bangalore – 560009, Karnataka, INDIA
Nature of instrument creating charge	1) Memorandum of entry (Extension of equitable mortgage) 2) Sanction Letter
Date of instrument Creating the charge	25/05/2010
Amount secured by the charge	Rs. 7.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest : BPLR-1.75% i.e., Presently 13.0% Floating. Penal Interest: 2% p.m Terms of repayment : Tenor-48 months from the date of disbursement/first drawal Repayment: 48 Equated Monthly Instalments OF Rs.0.187 millions Each starting From 20.02.2010 Margin : As Fixed By The Bank Form Time To Time Extent and operation of the charge : To Cover Loan Amount Plus Costs, Expenses, Interest And Other Incidentals Other : Nature of the facility: 1) Term loan under " power rent" scheme - Rs.7.000 millions Total - Rs.7.000 millions (disbursement of the loan shall be through mg road branch)
Short particulars of the property charged (Including location of the property)	Term Loan Of Rs.7.000 millions Additionally Secured By Equitable Mortgage Of Factory Land And Building Situated At Plot No 54, Bommasandra Jigani Link Road Industrial Area, Off Hosur Road, Bangalore 560099
Particulars of the present modification	Term Loan Of Rs.7.000 millions Additionally Secured By Equitable Mortgage Of Factory Land And Building Situated At Plot No 54, Bommasandra Jigani Link Road Industrial Area, Off Hosur Road, Bangalore 560099

Fixed Assets :

Computer and Printer software
Software (Work in Progress)
Motor Vehicles
Furniture and Fixture
Office Equipments
Plant And Machinery
Electrical Equipments
Buildings
Land

TRADE REFERENCES :

Balaji Industries
Toolchem Private Limited

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. 45.21
UK Pound	1	Rs. 72.54
Euro	1	Rs. 62.43

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	2
--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		30

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

45.893

22.825

2.885

0.000

4.581

76.184

6.494

2.434

28.472

47.712

(4.71)

(4.97)

(1.33)

(0.02)

1.04

2.67

Unit