MIRA INFORM REPORT

Report Date :

03.11.2011

IDENTIFICATION DETAILS

Name :	ZETEK CASTINGS PRIVATE LIMITED
Registered Office :	L-60, L- Block, Anna Nagar East Chennai 600102, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	07.11.2003
Com. Reg. No.:	051904
Capital Investment / Paid-up Capital :	Rs.11.100 millions
CIN No.: [Company Identification No.]	U27320TN2003PTC051904
TAN No.: [Tax Deduction & Collection Account No.]	CHEZ03040C
PAN No.: [Permanent Account No.]	AAACZ1915G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of Casting Parts
No. of Employees :	140 Approximately

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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. Eshwar
Designation :	Plant Head
Contact No.:	91-9840940912
Date :	02.11.2011

LOCATIONS

Registered Office :	L-60, L- Block, Anna Nagar East Chennai 600102, Tamilnadu, India
Tel. No.:	91-44-24781372
Mobile No.:	91-9840940912 (Mr. Eshwar)
Fax No.:	91-44-26633607
E-Mail :	zetek@zetekcastings.com mak@gpackcasting.com
Location :	Owned
Factory :	Plot No.31,32, SIDCO Industrial Estate, Thirumudivakkam, Chennai 600044, Tamilnadu, India
Tel. No.:	91-44-24781371 / 72
E-Mail :	pdc@zetekcastings.com

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Krishnamurthy Venkateswaran
Designation :	Director
Date of Appointment :	07.11.2003
DIN No.:	00020874

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U27320TN2003PTC051904	Zetek Castings Private Limited	Director	07/11/2003	07/11/2003	-	Active	NO
2	U27310TN2010PTC074916	Teknomec Technologies Private Limited	Director	15/03/2010	15/03/2010	-	Active	NO
3	U27205TN2011PTC079886	Zetek Technologies Private Limited	Director	28/03/2011	28/03/2011	-	Active	NO

Name :	Mr. Raghavelu Chandresekar
Designation :	Director
Date of Appointment :	07.11.2003
DIN No.:	00022379

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U27320TN2003PTC051904	Zetek Castings Private Limited	Director	07/11/2003	07/11/2003	-	Active	NO
2	U27310TN2010PTC074916	Teknomec Technologies Private Limited	Director	15/03/2010	15/03/2010	-	Active	NO
3	U27205TN2011PTC079886	Zetek Technologies Private Limited	Director	28/03/2011	28/03/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Eshwar
Designation :	Plant Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Mr. Krishnamurthy Venkateswaran	555000
Mr. Raghavelu Chandresekar	555000
Total	1110000

AS ON 30.09.2011

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier of Casting Parts

Products :

ITC Code	Product Description
760429.90	Aluminium Die Casting Component

Terms :

Selling :

L/C, Cash, Credit

Purchasing :

L/C, Cash, Credit

PRODUCTION STATUS

AS ON 31.03.2011

Particulars	Unit	Installed Capacity
Aluminium Die Casting Components	Nos	1080000

Particulars	Unit	Actual Production
Aluminium Die Casting Components	Nos
For Sales		578268
For Job Work		267552

GENERAL INFORMATION

Suppliers :

· Sargam Metal

· Jignesh Alloys

Customers :

· Wholesaler

· Retailers

· Rane TRW

· Rane Madras

· Borgwarner

· Litens

· JKM Auto

· EBMpapst

No. of Employees :

140 Approximately

Bankers :

· Bank of Baroda, 1^st Floor, Seven Star Complex, MTH Road, Ambattur, Chennai 600053, Tamilnadu, India

· Tamilnadu Industrial Investment Corporation Limited, No. 692, Anna Salai, Nandanam, Chennai 600035, Tamilnadu, India

· HDFC Bank

· ICICI Bank Limited

Facilities :

Rs. In Millions

SECURED LOAN	31.03.2011	31.03.2010
Bank of Baroda – Term Loan 2	0.000	0.540
Bank of Baroda – Cash Credit	10.748	11.168
Bank of Baroda – Term Loan 3	4.050	5.320
TIIC – Term Loan	28.472	0.000
Total	43.270	17.028
UNSECURED LOAN
Zitai Precision Machinery Company Limited (Supplier Credit - CAPEX)	0.000	2.319
Loan from Directors	0.000	0.246
Teknomec	0.000	2.313
ICICI Bank Limited	0.000	0.136
HDFC Bank	0.414	0.000
Total	0.414	5.014

Banking Relations :	--
Auditors :
Name :	S Sundar Rajan Chartered Accountant
Address :	11, 1^st Floor, Crescent Avenue, Kesavaperumalpuram, Chennai 600028, Tamilnadu, India
Tel. No.:	91-44-24950885 / 24950826
Sister Concern:	Technomac

CAPITAL STRUCTURE

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Shares	Rs. 10 each	Rs.12.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1110000	Equity Shares	Rs. 10 each	Rs.11.100 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		11.100	4.500	3.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5.952	3.409	2.103
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		17.052	7.909	5.503
LOAN FUNDS
1] Secured Loans		43.270	17.028	9.785
2] Unsecured Loans		0.414	5.014	13.965
TOTAL BORROWING		43.684	22.042	23.750
DEFERRED TAX LIABILITIES		1.651	0.546	0.635
TOTAL		62.387	30.497	29.888
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		50.423	22.307	20.813
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	3.529	2.890	2.083
	Sundry Debtors	25.056	19.547	6.938
	Cash & Bank Balances	0.001	0.195	0.427
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	14.083	2.835	5.506
Total Current Assets		42.669	25.467	14.954
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	20.080	13.146	4.114
	Other Current Liabilities	6.374	0.435	1.308
	Provisions	4.251	3.696	0.668
Total Current Liabilities		30.705	17.277	6.090
Net Current Assets		11.964	8.190	8.864
MISCELLANEOUS EXPENSES		0.000	0.000	0.211
TOTAL		62.387	30.497	29.888

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	126.825	72.967	48.393
		Labour Charges Receipts	7.894	5.831	5.612
		Other Income	0.078	0.000	0.008
		TOTAL (A)	134.797	78.798	54.013
Less	EXPENSES
		Manufacturing Expenses	89.411	55.915	44.033
		Employees Remuneration	14.572	9.728	3.391
		Administrative Expenses	16.247	5.062	1.928
		TOTAL (B)	120.230	70.705	49.352
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		14.567	8.093	4.661
Less	FINANCIAL EXPENSES (D)		3.328	2.492	1.174
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		11.239	5.601	3.487
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.173	2.568	2.725
	PROFIT BEFORE TAX (E-F) (G)		7.066	3.033	0.762
Less	TAX (H)		2.183	0.937	(0.104)
	PROFIT AFTER TAX (G-H) (I)		4.883	2.096	0.866
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.923	1.919	1.053
Less	APPROPRIATIONS
	Transfer to General Reserve		0.706	0.303	NA
	Dividend		2.000	0.675	NA
	Tax on Dividend		0.340	0.114	NA
	BALANCE CARRIED TO THE B/S		4.760	2.923	1.919
	IMPORTS
		Raw Materials	0.149	NA	NA
		Capital Goods	19.056	NA	NA
		Moulds and Dies	8.422	2.756	0.649
	TOTAL IMPORTS		27.627	2.756	0.649
	Earnings Per Share (Rs.)		5.39	4.46	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.62	2.65	1.60
Net Profit Margin (PBT/Sales)	(%)	5.57	4.15	1.57
Return on Total Assets (PBT/Total Assets}	(%)	7.59	6.34	2.13
Return on Investment (ROI) (PBT/Networth)		0.41	0.38	0.13
Debt Equity Ratio (Total Liability/Networth)		4.45	5.04	5.53
Current Ratio (Current Asset/Current Liability)		1.38	1.47	2.45

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF OPERATIONS:

Revenues for the Financial 2010-2011 stood at Rs. 134.799 millions and profit after tax was Rs. 4.882 millions. The business performed well, with productivity gains, growth in volumes and sustained margins notwithstanding raise in the input costs. The company's stability and marketing strategy to neutralize the cost increase and improve margins together with purchasing efficiencies, improvement in manufacturing yield/usage and expenses control helped in increasing the profitability.

FINANCE:

The company had been sanctioned with an assistance of I Term Loan of Rs. 27.000 millions and Subsidy Bridge Loan of Rs. 3.000 millions from M/s. Tamilnadu Industrial Investment Corporation Limited, Nandanam Branch for the purpose of purchase and erection of imported and indigenous machinery, transport, erection and electrical.

FIXED ASSETS:

· Furniture and Fittings

· Plant and Machinery

· Computer

· Lease Land

FORM 8

Corporate identity number of the company	U27320TN2003PTC051904
Name of the company	ZETEK CASTINGS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	L-60, L- Block, Anna Nagar East Chennai 600102, Tamilnadu, India
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Tamilnadu Industrial Investment Corporation Limited, No. 692, Anna Salai, Nandanam, Chennai 600035, Tamilnadu, India Email: rmchennai@tiic.in
Nature of instrument creating charge	Deed of Hypothecation dated 13th August, 2010.
Date of instrument Creating the charge	13.08.2010
Amount secured by the charge	Rs. 30.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 13.75% per annum, in case of default an additional interest of 2.5% will be charged on the defaulted amount for the defaulted period. Terms of repayment The Term Loan will be repaid in 54 monthly installments as follows: First month Rs. 0.500 million Next 12 Months: Rs 0.450 million each Next 12 Months: Rs 0.500 million each Next 12 Months: Rs 0.450 million each. Next 12 Months: Rs 0.500 million each Last 5 Months: Rs. 0.740 million each and SBL of Rs 3.000 millions is repayable on demand. Margin The loan will be disbursed in accordance with the advanced margin of 74.43% for the proposed overall security. Extent and operation of the charge As per the deed of hypothecation deed dated 13/08/10
Short particulars of the property charged (Including location of the property)	All the plant and machineries erected or to be erected at Plot no 31, SIDCO Industrial Estate, Thirumudivakkam, chennai - 44

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter's background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	--
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

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.49.25
UK Pound	1	Rs.78.73
Euro	1	Rs.67.64

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		34

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	-

MAXIMUM CREDIT LIMIT

Maximum Credit Limit : USD 68208

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.