MIRA INFORM REPORT

Report Date :

26.11.2011

IDENTIFICATION DETAILS

Name :	HANS MACHINERIES PRIVATE LIMITED
Registered Office :	Satyen Bose Road, Banipur, P S Sankrail, Howrah - 711 304, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	13.04.1994
Com. Reg. No.:	21-62931
Capital Investment/ Paid-up Capital:	Rs.1.975 millions
CIN No.: [Company Identification No.]	U74999WB1994PTC062931
IEC No.:	0298017512
TAN No.: [Tax Deduction & Collection Account No.]	CALH01325C
PAN No.: [Permanent Account No.]	AAACH7484E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Jute Mill Machine and Spare Parts.
No. of Employees :	50 (approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 100000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. There appears some, losses being incurred by the company in the current year i.e. 2010-11. However, networth appears to be satisfactory. 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

INFORMATION PARTED BY

Name :	Mr. Samik
Designation :	Director
Contact No.:	91-9432357682
Date :	23.11.2011

LOCATIONS

Registered Office/ Factory :	Satyen Bose Road, Banipur, P S Sankrail, Howrah - 711 304, West Bengal, India
Tel. No.:	91-33-26792105
Mobile No.:	91-9432357681 (Mr. Sujit Pal), 91-9432357682 (Mr. Samik)
Fax No.:	91-33-26793036
E-Mail :	machineries@hansmachineries.com ajcandco@gmail.com machineries@hanspl.com
Website :	www.hansmachineries.com
Area :	21738 sq ft
Location :	Owned

DIRECTORS

(AS ON 29.09.2011)

Name :	Mr. Samik Sett
Designation :	Director / Quality Assurance Manager
Address :	Satyen Bose Road, Banipur, Howrah-711 304, West Bengal, India
Date of Birth/Age :	17.07.1980
Qualification :	B.Tech
Date of Appointment :	15.10.2003
DIN No. :	01578802
Name :	Mrs. Sukla Sett
Designation :	Director
Address :	Satyen Bose Road, Banipur, Howrah, West Bengal-711304, India
Date of Birth/Age :	07.07.1986
Qualification :	B.Sc.
Date of Appointment :	01.04.2006
DIN No. :	01885425

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Swapan Kumar Sett	81500
Minakshi Sett	114000
Samik Sett	1000
Sukla Sett	1000
Total	197500

Equity Share Breakup

(AS ON 30.09.2010)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Jute Mill Machine and Spare Parts.

Products :

· High Density Precision Cross Winding Machine (chain Traverse Type) for Jute and Textile Mills

· Heavy package Ring Twisting machine for Jute and Textile Mills.

· Rotary Faller Gill Draw Head machine for Jute Mill

· Rotary Faller Fill First Drawing machine for Jute Mill

· Rotary Faller Gill Second Drawing machine for Jute Mill

· Rotary Faller Gill Third Drawing Machine for Jute Mill

· Different Precision Engineering Components for engineering Organizations.

Product Description	Item Code No.
Manufacturing of Jute Mill Machine and Spare parts	NA

Exports :

Products :

Engineering Goods

Countries :

· USA

· European Countries

Terms :

Selling :

Cash / Credit

Purchasing :

Cash / Credit

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Installed Capacity	Actual Production
Drawing Machine	100	07
Draw Head	25	15

GENERAL INFORMATION

Suppliers :

Steel authority of India

Customers :

Jindal Steel and Power

Type of Customers :

· Wholesalers

· Retailers

No. of Employees :

50 (approximately)

Bankers :

Small Industries Development Bank of India (SIDBI), Kolkata Branch, 8^th Floor, Constantia Building, 11, Dr. U. N. Brahmachari Street, Kolkata-700017, West Bengal, India

Facilities :

(Rs. in millions)

	As on 31.03.2011	As on 31.03.2010
Secured Loans	6.365	5.445

(Rs. in millions)

	As on 31.03.2011	As on 31.03.2010
Unsecured Loans	11.817	11.941

Banking Relations :	--
Auditor 1 :
Name :	N. Sureka and Company Chartered Accountants
Address :	106, Stephen House, Kolkata-700001, West Bengal, India
Income-tax PAN of auditor or auditor’s firm :	AAEFN8316L
Auditor 2 :
Name :	Agrawal Jajodia and Company Chartered Accountants
Address :	9, Mangoe Lane, 2^nd Floor, Room No.28, Kolkata-700001, West Bengal, India
Associates/Subsidiaries :	Hans Enterprise Address: Satyen Bose Road, Howrah -711 304, West Bengal, India Line of Business: Jute machinery Spares

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Share	Rs.10/- each	Rs.2.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
197500	Equity Share	Rs.10/- each	Rs.1.975 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		1.975	1.975	1.975
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		25.073	25.771	23.459
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		27.048	27.746	25.434
LOAN FUNDS
1] Secured Loans		6.365	5.445	8.410
2] Unsecured Loans		11.817	11.941	11.788
TOTAL BORROWING		18.182	17.386	20.198
DEFERRED TAX LIABILITIES		2.333	2.682	2.392
TOTAL		47.563	47.814	48.024
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		25.522	26.695	23.411
Capital work-in-progress		3.613	5.064	10.133
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9.718	5.983	4.239
	Sundry Debtors	4.427	4.729	4.828
	Cash & Bank Balances	0.184	0.865	3.466
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	10.959	11.257	9.770
Total Current Assets		25.288	22.834	22.303
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	1.812	0.097	0.485
	Other Current Liabilities	0.288	1.959	2.863
	Provisions	4.760	4.723	4.475
Total Current Liabilities		6.860	6.779	7.823
Net Current Assets		18.428	16.055	14.480
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		47.563	47.814	48.024

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	14.965	30.442	25.870
		Other Income	6.020	4.414	2.062
		TOTAL (A)	20.985	34.856	27.932
Less	EXPENSES
		Raw Material Consumed	8.335	19.501	16.490
		Payment to and Provision for Employees	4.713	4.218	3.369
		Manufacturing Expenses	1.218	1.299	0.992
		Selling and Administrative Expenses	1.621	1.719	1.080
		TOTAL (B)	15.887	26.737	21.931
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5.098	8.119	6.001
Less	FINANCIAL EXPENSES (D)		1.692	2.001	1.541
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.406	6.118	4.460
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.416	3.923	3.572
	PROFIT BEFORE TAX (E-F) (G)		(1.010)	2.195	0.888
Less	TAX (H)		0.312	0.679	0.340
	PROFIT AFTER TAX (G-H) (I)		(0.698)	1.516	0.548
Less	EARLIER YEAR TAX		0.000	(0.104)	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		24.391	22.979	22.431
	BALANCE CARRIED TO THE B/S		23.693	24.391	22.979
	Earnings Per Share (Rs.)		0.000	7.68	2.77

Expected Sales (2011-2012) : Rs.25.000 millions.

The above information has been parted by Mr. Samik Satt.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(3.33)	4.35	1.96
Net Profit Margin (PBT/Sales)	(%)	(6.75)	7.21	3.43
Return on Total Assets (PBT/Total Assets}	(%)	(1.99)	4.43	1.94
Return on Investment (ROI) (PBT/Networth)		(0.04)	0.08	0.03
Debt Equity Ratio (Total Liability/Networth)		0.92	0.87	1.10
Current Ratio (Current Asset/Current Liability)		3.68	3.37	2.85

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in reports
1) Year of Establishment	Yes
2) Locality of the Firm	Yes
3) Constitution 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 of last two years	Yes
12) Profitability for last three years	Yes
13) Reasons for variations <> 20%	---------
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of Sister concern	Yes
17) Major Suppliers	Yes
18) Major Customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market Information	---------
22) Litigation that the firm / promoter involved	---------
23) Banking Details	Yes
24) Banking facility Details	Yes
25) Conduct of the banking account	---------
26) Buyer visit details	---------
27) Financials, if provided	No
28) Incorporation details, if applicable	----------
29) Last account field at ROC	----------
30) Major Shareholders, if available	----------

FORM 8:

Corporate identity number of the company	U74999WB1994PTC062931
Name of the company	HANS MACHINERIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Satyen Bose Road, Banipur, P S Sankrail, Howrah-711304, West Bengal, India E-Mail Id: ajcanco@gmail.com
This form is for	Creation of charge
Type of charge	Immovable Property Movable Property (not being pledge) Others-Lien on Fixed Deposit
Particular of charge holder	Small Industries Development Bank of India (SIDBI), Kolkata Branch, 8^th Floor, Constantia Building, 11, Dr. U. N. Brahmachari Street, Kolkata-700017, West Bengal, India E-Mail Id: skalam@sidbi.in
Nature of instrument creating charge	i) Agreement for Term Loan Limit cum Hypothecation executed by the Company in favour of SIDBI ii) Equitable Mortgage on immovable properties of the company in favour of SIDBI by way of deposit by constructive delivery of title deeds
Date of instrument Creating the charge	23.11.2010
Amount secured by the charge	Rs.3.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	a) Rate of Interest 12% p.a. payable monthly with right to rest every 2 years from date of first disbursement. b) Terms of Repayments The Loan shall be repaid in 40 equal monthly installments of Rs.0.087 millions each after a moratorium of 6 months from the date of first disbursement of the loan. c) Margin Nil. d) Extent and Operation of the charge The charge operates as a first / extension of first charge on the immovable and movable properties of the company in favour of SIDBI to secure the due repayment and discharge by the company to SIDBI of its terms loan limit of Rs.3.500 millions together with all dues payable in terms of Letter of Intent dated 19.11.2010 / Agreement for Term Loan Limit cum Hypothecation dated 23.11.2010 as may be amended / modified from time to time. e) Others Nil.
Short Particulars of the property charged	i) All immovable properties of Company situate (a) land admeasuring 7 Cottahs, 14 chittaks, 18 sq. feet at J. L. No.33, RS. Dag No.51 and 52, L. R. Dag No. 65 and 66, L.R. Khatian No.814 ii) (R.S. Khatian No.186) and (b) lan admeasuring 7 Cottahs, 14 chittaks, 18 sq. feet at J. L. No.33, RS. Dag No. 52, 61 and 64, L. R. Dag No.89, 66 and 92, L.R. Khatian No.814 iii) (R. S. Khatian No. 179 and 186) at Mouza Hatgacha, P. S. Sankrail, district Howrah, West Bengal iv) All immovable and movable properties of the company, acquired / to be acquired out of the Term Loan Limit v) All movable assets of the company including plant, machinery, machinery spares, tools and accessories, office equipment, computers, furniture, fixtures, located at Satyen Bose Road, Banipur, Howrah-711304 vi) Extension of Lien on Fixed Deposit having face value of Rs.1.000 million.

FIXED ASSETS

· Land

· Factory Shed

· Plant and Machinery

· Furniture and Fixtures

· Electric Equipment

· Mobile Phone

· Computers

· Tools

· Cycle

· Generator

· Air Condition Machine

· Electric Installation

· Car

· Typewriter

· Xerox Machine

· Telephone Equipment

WEBSITE DETAILS:

Subject situated at howrah, India and dedicated to manufacture high precision engineering components. They manufacture precision spares for engines, valves, pumps, compressors as per customer requirement. Further products include various automobile brake discs, drums, rotors, pumps, brackets, spacers, gear box housings, various valves, different shafts, rollers etc.

They manufacture all the products with considering them as the end user. Thus all the components are 100% checked and maintained high quality. CNC controlled machines are used to manufacture the products.

• Established in the year 1997
• Manufactures and develop Jute and Textile machines of any magnitude in India and abroad.
• Also have a excellent setup for manufacturing high precision engineering components
• Caters to major OEMs/Customer like Diesel Locomotive works (DLW), TATA Metalics (for TELCON), Stone India (for railways)
• ISO9001:2000 certified company

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 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.52.16
UK Pound	1	Rs.80.64
Euro	1	Rs.69.43

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	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		43

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.