MIRA INFORM REPORT

Report Date :

18.03.2011

IDENTIFICATION DETAILS

Name :	LAXMI DRUCKEN KOMPONENTS PRIVATE LIMITED
Registered Office :	Plot No. C/47, MIDC Chincholi, Solapur – 413255, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.06.1997
Com. Reg. No.:	11-108713
CIN No.: [Company Identification No.]	U31909MH1997PTC108713
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Geared Motors, Gear Boxes, Monoblock Pumps, Submerged Pumps, Domestic Pumps, Non Clog Pumps.

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 260000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well 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 :	Plot No. C/47, MIDC Chincholi, Solapur – 413255, Maharashtra, India
Tel. No.:	91-217-2357695
Fax No.:	91-217-2357461
E-Mail :	spr_idmotor@sancharnet.in
Website :

DIRECTORS

AS ON 28.09.2010

Name :	Mr. Sharad Krishna Thakre
Designation :	Chairman
Address :	Krishnao, 33 Antrolikar, Nagar, Hotagi Road, Solapur – 413003, Maharashtra, India
Date of Birth/Age :	10.03.1953
Date of Appointment :	12.06.1997
Name :	Mr. Sanjiv Jaykumar Patil
Designation :	Director
Address :	7751/1, Civil Lines, Hotagi Road, Solapur – 413003, Maharashtra, India
Date of Birth/Age :	25.03.1967
Date of Appointment :	12.06.1997
Name :	Mr. Laxinarayan Rajiru Sheral
Designation :	Director
Address :	Gurukripa Apartment, 21/42, New Pachha Peth, Opposite. Government Polytechnic College, India
Date of Birth/Age :	26.01.1959
Date of Appointment :	12.06.1997
Name :	Mr. Manali Sharad Thakre
Designation :	Director
Address :	Krishna, 33, Antrollkar Nagar, Hotagi Road, Solapur – 413003, Maharashtra, India
Date of Birth/Age :	17.10.1958
Date of Appointment :	23.12.2008
Name :	Mr. Aditya Sharad Thakre
Designation :	Director
Address :	Krishna, 33, Antrollkar Nagar, Hotagi Road, Solapur – 413003, Maharashtra, India
Date of Birth/Age :	01.06.1987
Date of Appointment :	01.06.2010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2010

Names of Shareholders	No. of Shares
Manali Sharad Thakre	7990
Sanjiv Jaykumar Patil	3000
Laxminarayan Rajiru Sheral	3000
Sharad Krishna Thakre (HUF)	600
Manali Sharad Thakre	500
Keerthikumar K.	600
Naranchnadra B.	600
Aditya Sharad Thakre	3610
Total	19900

AS ON 28.09.2010

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	93.96
Other top fifty shareholders	6.04
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Geared Motors, Gear Boxes, Monoblock Pumps, Submerged Pumps, Domestic Pumps, Non Clog Pumps.

GENERAL INFORMATION

Bankers :

• ING Vysya Bank
• Syndicate Bank
• Bank of India
• Samarth Sahkari Bank Limited

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
12150060 ING Vysya Bank O/D, Against F.D.	1.413	0.517
12150080 Syndicate Bank O/D Against F.D.	0.850	(0.026)
12150090 Bank of India O/D Against F.D.	8.940	2.026
12150100 Samarth Sahkari Bank Limited	0.951	0.000
Total	12.154	2.517
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
12230002 Sales Tax Deferment	4.084	4.084
Total	4.085	4.085

Banking Relations :	--
Auditors :
Name :	Mr. Dilip S. Sapatnekar Chartered Accountant
Address :	35/36, Nath Pride, Civil Chowk, Solapur – 413003, Maharashtra, India

CAPITAL STRUCTURE

AS ON : 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
20000	Equity Shares	Rs.100/- each	Rs. 2.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
19900	Equity Shares	Rs.100/- each	Rs. 1.990 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		1.990	1.990	1.990
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		62.554	48.731	42.493
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		64.544	50.721	44.483
LOAN FUNDS
1] Secured Loans		12.154	2.517	6.493
2] Unsecured Loans		4.084	4.084	4.084
TOTAL BORROWING		16.238	6.601	10.577
DEFERRED TAX LIABILITIES		0.408	0.200	0.193
TOTAL		81.190	57.522	55.253
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		51.031	28.494	21.670
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.114	0.115	0.115
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	41.317	31.048	22.279
	Sundry Debtors	37.069	20.067	21.052
	Cash & Bank Balances	0.761	0.390	0.523
	Other Current Assets	40.609	29.357	25.042
	Loans & Advances	0.217	0.118	0.322
Total Current Assets		119.973	80.980	69.218
Less : CURRENT LIABILITIES & PROVISIONS
	Other Current Liabilities	64.838	34.322	21.593
	Provisions	25.090	17.745	14.157
Total Current Liabilities		89.928	52.067	35.750
Net Current Assets		30.045	28.913	33.468
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		81.190	57.522	55.253

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	355.366	174.461	204.784
		Other Income	3.799	2.817	1.552
		TOTAL (A)	359.165	177.278	206.336
Less	EXPENSES
		Office Expenses
		Administrative Expenses	332.257	163.279	183.927
		Advertising Expenses
		Financial Expenses
		TOTAL	332.257	163.279	183.927
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		26.908	13.999	22.409
Less/ Add	DEPRECIATION/ AMORTISATION		5.177	3.553	2.745
	PROFIT BEFORE TAX		21.731	10.446	19.661
Less	TAX		7.326	3.743	6.817
	PROFIT AFTER TAX		14.405	6.703	12.844
Less	APPROPRIATIONS
		Transfer to General Reserve	1.429	0.671	1.285
		Dividend	0.497	0.398	0.497
		Tax on Dividend	0.084	0.067	0.084
	BALANCE CARRIED TO THE B/S		12.934	5.567	10.977
	Earnings Per Share (Rs.)		723.86	336.83	645.42

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.01	3.78	6.22
Net Profit Margin (PBT/Sales)	(%)	6.11	5.98	9.60
Return on Total Assets (PBT/Total Assets}	(%)	12.70	9.54	21.63
Return on Investment (ROI) (PBT/Networth)		0.33	0.20	0.44
Debt Equity Ratio (Total Liability/Networth)		1.64	1.15	1.04
Current Ratio (Current Asset/Current Liability)		1.33	1.55	1.93

LOCAL AGENCY FURTHER INFORMATION

Financial Results :

Profitability for the year has been increased due to various factors including the cost reduction models of products introduced in the market and activities of cost accounting have been started. The profitability of the company is satisfactory in spite of stiff competition in the market.

The Management is taken out the efforts to control input costs to improve overall operating margins.

The World economy is passing through an unprecedented liquidity squeeze, which has led to credit crunch and large scale disruption in money markets. Pessimism about the global economy is deepening and a worldwide slowdown showed up in the corporate profits. It is thin corporate profits. It is affecting commodities Prices and emerging economies.

As a result the Indian economy is also getting affected. Inflation is ranging around 11 to 12% for quite a long time. The combined adverse effect of rising inflation and Cost of funds is getting reflected in plunging net earnings of Indian Corporates. The Global economic turmoil is also affecting overall Indian exports. All out efforts are being made by the Finance ministry and the RBI to resolve the issue through Cuts in Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio ( SLR)

Performance And Future Plan

This is the 13th year of the company. Their team is continuously working on development and improvement activities like widening product base, increasing end customers base and controlling cost by reduction in rejections, reworks and wastages, etc. all the above activities have regulated in 114.52% growth compare to last year in spite of stiff competition in market .

Fixed Assets :

• Leasehold Land
• Building
• Plant and Machinery
• Electric Fittings
• Tool and Equipments
• Furniture and Fixtures
• Computers
• Office Equipments
• Vehicles
• Generator
• Borewell
• Assets Under Construction - WIP

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. 45.24
UK Pound	1	Rs. 72.57
Euro	1	Rs. 63.00

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	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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.