MIRA INFORM REPORT

Report Date :

22.03.2011

IDENTIFICATION DETAILS

Name :	SAKTHI AUTO ANCILLARY PRIVATE LIMITED (w.e.f.02.06.2000)
Formerly Known As :	BELGIUM VENTIEL INDIA VALVES PRIVATE LIMITED
Registered Office :	Indigarai Road, N.G.G.O Colony, Coimbatore-641002, Tamil Nadu.
Country :	India
Financials (as on) :	31.12.2009
Date of Incorporation :	02.03.1998
Com. Reg. No.:	18-008320
CIN No.: [Company Identification No.]	U29199TZ1998PTC008320
TAN No.: [Tax Deduction & Collection Account No.]	CMBB03121G
PAN No.: [Permanent Account No.]	AABCB0064H
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer and Exporter of Cast and Ductile Articles of Iron and Industrial Valves.

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 360000
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 DENIDED BY

Name :	Ms. Shalini
Designation :	Operator
Date :	21.03.2011

LOCATIONS

Registered Office :	Indigarai Road, N.G.G.O Colony, Coimbatore-641002, Tamil Nadu, India
Tel. No.:	91-422-2642728 / 2642224 /2642869 / 2647203 / 2646212
Fax No.:	91-422-2642613
E-Mail :	ganravi@gmail.com marketing@saapl.net info@saapl.net valvesmarketing@saapl.net
Website :	www.saapl.net

DIRECTORS

AS ON 26.04.2010

Name :	Mr. S. Jeevanatham
Designation :	Managing Director
Address :	B 20 – Srivatsa Garden, Mettupalayam Road, Thudialur, Coimbatore-641034,Tamil Nadu, India
Date of Birth/Age :	25.02.1968
Date of Appointment :	02.03.1998
DIN No :	00691142
Name :	Mr. S Mohanraj
Designation :	Whole Time Director
Address :	B 21 – Srivatsa Garden, Mettupalayam Road, Thudialur, Coimbatore-641034,Tamil Nadu, India
Date of Birth/Age :	28.06.1971
Date of Appointment :	09.10.2001
DIN No :	00691183
Name :	Mr. S. Subramaniam
Designation :	Director
Address :	4/364, Thangavelu Street, NGGC Colony, Coimbatore-641022,Tamil Nadu, India
Date of Birth/Age :	03.04.1940
Date of Appointment :	07.06.2006
DIN No :	01237825
Name :	Mr. S Baskar
Designation :	Director
Address :	New No.23, Tyagi Shanmuga Nagar, Singanallur, Coimbatore-641005,Tamil Nadu, India
Date of Birth/Age :	15.09.1954
Date of Appointment :	07.06.2006
DIN No :	00732051
Name :	Mr. S Rathinasamy
Designation :	Director
Address :	Officer S Bangalow, Sakhti Auto Component Limited, Pallegounde Npaplayam, Perundurai, Erode, Tamil Nadu-638056, India
Date of Birth/Age :	10.05.1955
Date of Appointment :	07.06.2006
Name :	Mr. Panadian P Sankararaja
Designation :	Director
Address :	Jothi No.5, 1^st Steet, MKP Colony, Main Akkarampalayam Road, Ganapathy, Coimbatore-641006,Tamil Nadu, India
Date of Birth/Age :	02.06.1958
Date of Appointment :	07.06.2006
DIN No :	00671851
Name :	Mr. H. Kannan
Designation :	Director
Address :	14/28 C- Balaji Garden Extension, Subramaniam Palayam, G N Mills Post, Coimbatore-641029,Tamil Nadu, India
Date of Birth/Age :	12.05.1964
Date of Appointment :	07.06.2006
DIN No :	00671896

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 26.04.2010

Names of Shareholders	No. of Shares
Mr. S. Jeevanatham	437200
Mr. S Mohanraj	61740
Sakhthi Auto Component Limited, India	536920
Total	1035860

AS ON 26.04.2010

Names of Preference Shareholders	No. of Shares
Sakhthi Auto Component Limited, India	200000
Sakhthi Auto Component Limited, India	2355430
Total	2555430

AS ON 26.04.2010

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		51.83
Directors or relatives of directors		48.17
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Cast and Ductile Articles of Iron and Industrial Valves.

Products :

ITC CODE	PRODUCT
72015001 / 5009	Cast and Ductile Articles of Iron
84099103	Industrial Valves

GENERAL INFORMATION

No. of Employees :

200 (Approximately)

Bankers :

v Indian Overseas Bank, Ganapathy Branch, Ganapathy, Coimbatore-641006, Tamil Nadu, India

Facilities :

SECURED LOAN	31.12.2009 Rs. In Millions	31.12.2008 Rs. In Millions
FROM BANKS
a) Term Loan	67.745	76.318
Interest accrued and due on the above	0.423	0.512
b) Hypothecation Loans for Working Capital	91.481	89.687
Interest accrued and due on the above	0.219	0.000
FROM OTHERS
Hire Purchase Loan	0.982	0.858
Interest accrued and due on the above	0.006	0.003
Total	160.856	167.378
UNSECURED LOAN	31.12.2009 Rs. In Millions	31.12.2008 Rs. In Millions
OTHER LOANS AND ADVANCES
From Others	19.235	20.394
Total	19.235	20.394

Banking Relations :	--
Financial Institute :	First Leasing Company of India Limited, 749, Anna Salai, Chennai-600002, Tamil Nadu, India
Auditors :
Name :	V Chandramouli Chartered Accountant
Address :	V H Road, Coimbatore-641001, Tamil Nadu, India
Holding Company :	v Sakthi Auto Component Limited v Sakthi Sugars Limited

CAPITAL STRUCTURE

As On : 31.12.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Shares	Rs. 10/- each	Rs. 12.500 millions
3500000	Redeemable Non-Cumulative Preference Shares	Rs. 10/- each	Rs. 35.000 millions
	Total		Rs. 47.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1035860	Equity Shares	Rs. 10/- each	Rs. 10.359 millions
200000	1% Redeemable Non-Cumulative Preference Shares	Rs. 10/- each	Rs. 2.000 millions
2355430	10% Redeemable Non-Cumulative Preference Shares	Rs. 10/- each	Rs. 23.554 millions
	Total		Rs. 35.913 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2009	31.12.2008	30.06.2007
SHAREHOLDERS FUNDS
1] Share Capital		35.913	35.913	35.913
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		53.567	43.894	33.721
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		89.480	79.807	69.634
LOAN FUNDS
1] Secured Loans		160.856	167.378	88.287
2] Unsecured Loans		19.235	20.394	12.437
TOTAL BORROWING		180.091	187.772	100.724
DEFERRED TAX LIABILITIES		14.245	12.227	7.161
TOTAL		283.816	279.806	177.519
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		176.056	160.687	137.270
Capital work-in-progress		9.612	13.005	3.041
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	50.447	39.969	37.515
	Sundry Debtors	90.387	94.049	64.152
	Cash & Bank Balances	2.491	2.652	2.642
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	82.190	78.308	23.480
Total Current Assets		225.515	214.978	127.789
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	124.738	105.289
	Other Current Liabilities	0.000	0.000	90.407
	Provisions	2.629	3.575	0.174
Total Current Liabilities		127.367	108.864	90.581
Net Current Assets		98.148	106.114	37.208
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		283.816	279.806	177.519

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2009	31.12.2008	30.06.2007
	TURNOVER		480.001	688.213	357.830
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		48.172	58.629	25.061
Less	FINANCIAL EXPENSES		25.597	26.792	10.318
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		22.575	31.837	14.743
Less/ Add	DEPRECIATION/ AMORTISATION		10.884	14.838	6.093
	PROFIT BEFORE TAX		11.691	16.999	8.650
Less	TAX		2.018	6.826	3.946
	PROFIT AFTER TAX		9.673	10.173	4.704
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		33.035	24.762	20.058
Less	APPROPRIATIONS
		Transfer to Preference Shares Redemption Reserve	1.900	1.900	0.000
	BALANCE CARRIED TO THE B/S		40.808	33.035	24.762
	EXPORT VALUE		9.560	16.134	1.598
	IMPORTS
		Stores & Spares	1.386	4.294	3.654
		Capital Goods	0.000	1.034	16.910
	TOTAL IMPORTS		1.386	5.328	20.564
	Earnings Per Share (Rs.)		9.34	6.54	4.54

KEY RATIOS

PARTICULARS		31.12.2009	31.12.2008	30.06.2007
Return on Total Assets (PBT/Total Assets}	(%)	2.91	4.52	3.26
Return on Investment (ROI) (PBT/Networth)		0.13	0.21	0.12
Debt Equity Ratio (Total Liability/Networth)		3.59	3.87	2.85
Current Ratio (Current Asset/Current Liability)		1.77	1.97	1.41

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

(Rs. In millions)

PARTICULARS	31.12.2009	31.12.2008	30.06.2007
Sundry Creditors
Due to Micro, small and Medium Enterprises
Liabilities for purchase, expenses and other (other than Micro, Small and Medium Enterprises)	116.521	101.588	0.000
Liability for Capital Expenses	8.217	3.701	0.000
Total	124.738	105.289	0.000

OPERATIONS

During the year, the Company has achieved a turnover of Rs.480.001 millions. The market is encouraging for Auto components and castings and hence satisfactory working results are expected to be achieved in current year. The company is maintaining consistency in quality and also implementing various methods to reduce cost. The company has taken a foundry on lease for a period of five years to meet the increased demand of the customers.

The Company has got SQ Certification from India Limited, Chennai for the outstanding performance in the quality management

FORM 8

Corporate identity number of the company	U29199TZ1998PTC008320
Name of the company	SAKTHI AUTO ANCILLARY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Indigarai Road, N.G.G.O Colony, Coimbatore-641002, Tamil Nadu, India
This form is for	Modification of charge
Type of charge	Any Interest in Immovable Property
Particular of charge holder	Indian Overseas Bank, Ganapathy Branch, Ganapathy, Coimbatore-641006, Tamil Nadu, India
Nature of instrument creating charge	01.Confirmation (applicable for limited company mortgagor) evidencing creation of supplemental mortgage.
Date of instrument Creating the charge	02.11.2010
Amount secured by the charge	Rs. 140.900 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest CC -- BPLR +0.50 % ( with minimum of 13%), funded TL - BPLR +1.50% ( with minimum of 14%), LC as per circular in force and TLs - BPLR +0.50% (with minimum of 13%) Terms of repayment Working Capital Limits - repayable on demand, however renewable annually at the discretion of the bank For Term Loans - as per repayment schedule agreed Margin CC -Stock of RM SIP and FG - 25% Book Debts - 40% TLs - as per sanction Funded TL Nil and LC 25% Extent and operation of the charge Exclusive charge on the assets created or to be created out of the terms loans from the bank Exclusive charge on the entire current assets such as Raw materials, semi finished goods, finished goods, book debts, other receivables and other movable spares of the company. TL are primarily secured by exclusive charge on the plant and machinery, equipments, and other fixed assets of the company with WDV of Rs.143.800 millions
Short particulars of the property charged (Including location of the property)	EM followed by registered memorandum of factory land and building of the company at various SF Nos. at Idigarai Road, NGGO Colony, Kurudampalayam Village Coimbatore District Exclusive charge on the assets created or to be created out of the terms loans from the bank Exclusive charge on the entire current assets such as Raw materials, semi finished goods, finished goods, book debts, other receivables and other movable spares of the company. TL are primarily secured by exclusive charge on the plant and machinery, equipments, and other fixed assets of the company with WDV of Rs.143.800 millions
Charge identification number of the charge to be modified	10020924
Date of instrument modifying the charge	01.11.2010
Particulars of the present modification	There is no charge in the overall credit limit of Rs. 140.900 millions extended to the company by the bank and that the modification is necessitated for extension of EM on the immovable properties belonging to the company for the due repayment of entire above said amount together with interest, cost, expenses and other dues to the bank by the company. Over terms and conditions remain same and unchanged.

FIXED ASSETS

ü Land

ü Buildings

ü Plant and Machinery

ü Electrical Installations

ü Office Equipments

ü Furniture and Fixtures

ü Motor Vehicles

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.45.05
UK Pound	1	Rs.73.05
Euro	1	Rs.63.81

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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		46

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.