MIRA INFORM REPORT

Report Date :

25.11.2011

IDENTIFICATION DETAILS

Name :	FINE TOOLS (INDIA) PRIVATE LIMITED
Registered Office :	No.449-P, 4^th Phase, KIADB Industrial Area, Peenya, Bangalore – 560 058, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	28.06.2006
Com. Reg. No.:	08-039835
Capital Investment / Paid-up Capital :	Rs.7.600 Millions
CIN No.: [Company Identification No.]	U25209KA2006PTC039835
TAN No.: [Tax Deduction & Collection Account No.]	BLRF01382D
PAN No.: [Permanent Account No.]	AABCF0583F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of Moulds and Components.
No. of Employees :	Not Available

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 109000
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 – 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

LOCATIONS

Registered Office/ Factory :	No.449-P, 4^th Phase, KIADB Industrial Area, Peenya, Bangalore – 560 058, Karnataka, India
Tel. No.:	91-80-28360453/ 28363666
Fax No.:	91-80-41170471
E-Mail :	hnarao@gmail.com info@finetoolsindia.com
Website :	http://www.finetoolsindia.com

DIRECTORS

As on 30.09.2010

Name :

T.P. Kallesh

Designation :

Managing Director

Address :

No.431, 1^st Cross, 4^th Block, 3^rd Stage, Basaveshwarnagar, Bangalore – 560 079, Karnataka, India

Date of Birth/Age :

01.06.1957

Date of Appointment :

28.06.2006

DIN No.:

00222750

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	U25209KA2005PTC035699	GLS Polymers Private Limited	Director	25-02-05	25-02-05	15-12-07	Active	NO
2	U25209KA2006PTC039835	Fine Tools (India) Private Limited	Managing director	28-06-06	28-06-06	-	Active	NO
3	U29253KA2010PTC054406	Marvel Castings and Components Private Limited	Director	09-07-10	09-07-10	-	Active	NO

Name :

Shailaja Kallesh

Designation :

Director

Address :

No.431, 1^st Cross, 4^th Block, 3^rd Stage, Basaveshwarnagar, Bangalore – 560 079, Karnataka, India

Date of Birth/Age :

21.11.1963

Date of Appointment :

28.06.2006

DIN No.:

00222465

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	U25209KA2006PTC039835	Fine Tools (India) Private Limited	Director	28-06-06	28-06-06	-	Active	NO
2	U29253KA2010PTC054406	Marvel Castings and Components Private Limited	Director	09-07-10	09-07-10	-	Active	NO

KEY EXECUTIVES

Name :	Krishnamurthy V.C.
Designation :	Company Secretary
Address :	# 156, New No.81, 4^th Cross, 11^th Main, Hanumantha Nagara, Bangalore – 560 019, Karnataka, India
Tel. No.:	91-80-26610154

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
T.P. Kallesh	505000
Shailaja Kallesh	255000
Total	760000

As on 30.09.2010

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers of Moulds and Components.
Products :	· Plastic Moulded Components · Automobiles – Parts for Safety Seat Belts, Window Regulator, Door Trims etc. These parts eventually go into vehicles manufactured by Toyota, Suzuki, Hyundai, Mahindra and Mahindra, Tata, Ford etc. · Consumer Products – Parts for Razors, watches etc. · Appliances – parts for washing machines · Electronics

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Canara Bank, Specialised SME Branch, No.473D, 13^th Cross, 4^th Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
(On mortgage and hypothecation of Industrial Shed, Plant and Machinery, Stock in Hand, Book Debts)
Canara Bank OD Account – 2036	(5.045)	(0.004)
Term Loan – 435	6.539	0.000
Canara Bank OD Account – 5516	25.143	8.246
Term Loan – 273	0.834	2.085
Canara Bank OD Account – 245426100 5245	(0.004)	(0.004)
Total	27.467	10.323
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
T. P. Kallesh	4.987	4.120
Shailaja Kallesh	6.955	4.454
Total	11.942	8.574

Banking Relations :	--
Auditors :
Name :	ABS and Company Chartered Accountants
Address :	No.32, G3, Rukmini Apartments, 15^th Cross, 11^th Main, Malleswaram, Bangalore – 560 055, Karnataka, India
Tel. No.:	91-80-23448727/ 23561653
E-Mail :	hnarao@gmail.com hnarao@dataone.in
PAN No.:	ADRPR2313R

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
760000	Equity Shares	Rs.10/- each	Rs.7.600 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		7.600	7.600	7.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		19.583	11.885	6.497
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		27.183	19.485	14.097
LOAN FUNDS
1] Secured Loans		27.467	10.323	10.311
2] Unsecured Loans		11.942	8.574	8.354
TOTAL BORROWING		39.409	18.897	18.665
DEFERRED TAX LIABILITIES		0.516	0.091	0.042
TOTAL		67.108	38.473	32.804
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		30.984	15.146	12.681
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	27.781	20.737	18.030
	Sundry Debtors	18.278	11.940	8.460
	Cash & Bank Balances	0.014	0.482	0.433
	Other Current Assets	0.000	0.000	0.000
	Loans, Advances & Deposits	14.590	8.379	4.583
Total Current Assets		60.663	41.538	31.506
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	13.776	9.451	6.195
	Other Current Liabilities	7.250	6.146	3.658
	Provisions	3.529	2.646	1.578
Total Current Liabilities		24.555	18.243	11.431
Net Current Assets		36.108	23.295	20.075
MISCELLANEOUS EXPENSES		0.016	0.032	0.048
TOTAL		67.108	38.473	32.804

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Turnover	133.643	107.843	82.843
		Other Income	0.020	0.149	0.079
		TOTAL	133.663	107.992	82.922
Less	EXPENSES
		Office Expenses	118.727	97.889	76.167
		Administrative Expenses
		Advertising Expenses
		TOTAL	118.727	97.889	76.167
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		14.936	10.103	6.755
Less/ Add	DEPRECIATION/ AMORTISATION		3.267	2.019	2.130
	PROFIT BEFORE TAX		11.669	8.084	4.625
Less	TAX		3.971	2.696	1.578
	PROFIT AFTER TAX		7.698	5.388	3.047
	EXPORT VALUE		1.377	1.190	2.156
	IMPORTS
		Raw Materials and Stores and Consumables	0.117	0.057	3.847
		Plant and Machinery	10.981	1.849	0.000
	TOTAL IMPORTS		11.098	1.906	3.847
	Earnings Per Share (Rs.)		10.13	7.09	4.00

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.76	4.99	3.67
Net Profit Margin (PBT/Sales)	(%)	8.73	7.50	5.58
Return on Total Assets (PBT/Total Assets}	(%)	12.73	14.26	10.47
Return on Investment (ROI) (PBT/Networth)		0.43	0.41	0.33
Debt Equity Ratio (Total Liability/Networth)		2.35	1.91	2.13
Current Ratio (Current Asset/Current Liability)		2.47	2.28	2.76

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS OF THE COMPANY AND FINANCIAL RESULTS:

The company has made a turnover of Rs.133.643 Millions resulting in a profit of Rs.11.669 Millions after making depreciation Rs.3.267 Millions for the year 2010-11. The directors are hopeful of showing substantial growth in the coming years. Prospects for the company during 2011-12 are quite encouraging.

FORM 8:

Corporate identity number of the company	U25209KA2006PTC039835
Name of the company	FINE TOOLS (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No.449-P, 4^th Phase, KIADB Industrial Area, Peenya, Bangalore – 560 058, Karnataka, India E-Mail : hnarao@gmail.com
This form is for	Modification of charge
	10112201
Type of charge	· Book Debts · Movable Property · Floating Charge
Particular of charge holder	Canara Bank, Specialised SME Branch, No.473D, 13^th Cross, 4th Phase, Peenya Industrial Area, Bangalore – 560 058, Karnataka, India E-Mail: blr2454@canbank.co.in
Nature of instrument creating charge	Supplemental Common Hypothecation Agreement.
Date of instrument Creating the charge	18.01.2011
Amount secured by the charge	Rs.34.171 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: OCC/ODBD; 13% p.a. i.e. Base Rate + 4% p.a. TL and Stand by TL ; 13.50% p.a. i.e. Base Rate + 4% p.a. + 0.50% p.a. both subject to revision from time to time. Other limits; As per the Bank Norms. Terms of repayment: OCC/ODBD; Running Account repayable on demand. TL and Stand by TL; The amount is repayable in 60 months including repayment holiday of 6 months i.e. Rs.0.119 Million in 53 months and 0.117 Million in 1 month. Margin: CC; 25% on stocks and 40% on receivables. TL and Stand by TL; 40% Extent and Operation of the charge: The charge shall operate to the extent of entire loan amount plus interest, cost, commission, expenses, liquidated damages and other charges if any thereon. Others: The said amount of Rs.34.171 Millions comprises of OCC/ODBD Rs.20.000 Millions, Stand by CC Rs.2.500 Millions and TL I Rs.4.274 Millions, TL II Rs.6.397 Millions, Stand by TL Rs.1.000 Million, Existing BG and Packing Credit stands closed.
Particulars of the property charged	Hypothecation by way of first charge on Stocks, Book Debts, Machinery and other movables both present and future stored or installed at No.449 P, 4^th Phase, Peenya Industrial Estate, Bangalore-560 058 or at any other place.
Date of last modification prior to the present modification	17.01.2011
Particulars of the present modification	By the above the charge on stocks, book debts, plant, machineries and other movables present and future shall cover the present modified limits aggregating Rs.34.171 millions. All other terms and conditions remains unchanged.

FIXED ASSETS:

• Computer
• Electrical Installation
• Energy Saving Devices
• Factory Building
• Furniture and Fixtures
• Generator
• Land
• Motor Car
• Moulds and Tools
• Office Equipments
• Motor Bike
• Projector
• Plant and Machinery

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.52.25
UK Pound	1	Rs.81.23
Euro	1	Rs.69.83

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	NO
--AFFILIATION	YES/NO	NO
--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.