MIRA INFORM REPORT

Report Date :

08.10.2011

IDENTIFICATION DETAILS

Name :	CITY LINERS GLOBAL LIMITED
Registered Office :	No. 1A, Raghavendra Colony, Melma Nagar, Thandalam Road, Thandalam Near Kunrathur Temple, Chennai– 600122, Tamil Nadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	02.07.2004
Com. Reg. No.:	18-053626
Capital Investment/ Paid-up Capital:	Rs.13.513 Millions
CIN No.: [Company Identification No.]	U34300TN2004PLC053626
TAN No.: [Tax Deduction & Collection Account No.]	CHEC06237A
PAN No.: [Permanent Account No.]	AACCC4104A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Dealers and Supplier of Cylinder Liners

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 51000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company is under pressure. There appears huge accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

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 :	No. 1A, Raghavendra Colony, Melma Nagar, Thandalam Road, Thandalam Near Kunrathur Temple, Chennai– 600122, Tamil Nadu, India
Tel. No.:	91-44-24781829
Mobile No.:	91-9884111188
Fax No.:	91-44-24781829
E-Mail :	prakash@clapindia.com muthu@clapindia.com mundhara_co@yahoo.co.in

DIRECTORS

As on 30.09.2010

Name :	Mr. R.R. Prakash Kumar
Designation :	Director
Address :	No. 18/24, M.G. Chakrapani Street, Sathya Garden, Saligramam, Chennai – 600093
Date of Birth/Age :	26.07.1965
Date of Appointment :	02.07.2004
DIN No:	00747895

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	U52599TN1994PTC028437	Cylinder Liners Agencies Private Limited	Managing director	29-08-94	29-08-94	-	Active	YES
2	U51909TN2004PTC052666	Alfa Source Links Private Limited	Director	04-03-04	04-03-04	-	Active	YES
3	U34300TN2004PLC053626	City Liners Global Limited	Director	02-07-04	02-07-04	-	Active	NO
4	U29253TN2010PTC077285	Ipl Engine Components Private Limited	Director	13-06-11	13-06-11	-	Active	NO

Name :	Mr. Prakash Uthara
Designation :	Director
Address :	No. 18/24, M.G. Chakrapani Street, Sathya Garden, Saligramam, Chennai – 600093
Date of Birth/Age :	23.08.1971
Date of Appointment :	02.07.2004
DIN No:	00747916

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	U52599TN1994PTC028437	Cylinder Liners Agencies Private Limited	Director	29-08-94	29-08-94	-	Active	YES

Name :	Mr. Rajan Maragatham
Designation :	Director
Address :	No. 18/24, M.G. Chakrapani Street, Sathya Garden, Saligramam, Chennai – 600093
Date of Birth/Age :	11.05.1935
Date of Appointment :	03.05.2007
DIN No:	03226804
Name :	Mr. Clogg Andrew Michael
Designation :	Director
Address :	28876, Woodcreek, Mission Vigeo, CA – 92692, US
Date of Birth/Age :	23.11.1947
Date of Appointment :	25.04.2008
DIN No:	02247371

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
R.R. Prakash Kumar	983600
Prakash Uthara	8000
Rajan Maragatham	8000
Adhish Prakash	100
R. Rajesh	100
V. Raghavan	100
Saroja Raghavan	100
Industrial Parts Depot LLC, USA	351351
Total	1351351

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011 Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	26.00
Directors or relatives of Directors	74.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Dealers and Supplier of Cylinder Liners

GENERAL INFORMATION

Bankers :

UCO Bank, Mid Corporate Branch, No. 67, Burkit Road, T Nagar, Chennai – 600017, Tamil Nadu, India

Facilities :

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Amhattur Clothing Limited	15.027	15.027
UCO Bank – Term Loan A/c 23656	1.656	2.771
UCO Bank – Packing Credit	18.822	16.360
UCO Bank – Foreign Credit	5.294	6.132
UCO Bank – Term Loan FCL – 2	0.642	1.418
UCO Bank – Term Loan FCL A/c – 1	2.906	6.419
For Bank Borrowings – UCO Bank A/c NO 12477	0.029	0.392
Total	44.376	48.519
Unsecured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Industrial Parts Loan A/c	6.940	7.812
R.R Prakash Kumar	0.000	2.145
Total	6.940	9.957

Banking Relations :	--
Auditors :
Name :	V. Narayanan and Company Chartered Accountants
Address :	23, SIR C.V. Raman Road, Alwarpet, Chennai – 600018, Tamil Nadu, India
PAN No :	AADFV3471F
Tel No:	91-44-24995550/ 24994822/ 24982659

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1400000	Equity Shares	Rs.10/- each	Rs. 14.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1351351	Equity Shares	Rs. 10/- each	Rs.13.513 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		13.513	13.513	13.513
2] Share Application Money		4.716	0.000	0.000
3] Reserves & Surplus		6.324	6.324	6.324
4] (Accumulated Losses)		[11.632]	[11.176]	[9.166]
NETWORTH		12.921	8.661	10.671
LOAN FUNDS
1] Secured Loans		44.376	48.519	47.951
2] Unsecured Loans		6.940	9.957	12.254
TOTAL BORROWING		51.316	58.476	60.205
DEFERRED TAX LIABILITIES		0.000	0.000	4.269
TOTAL		64.237	67.137	75.145
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		38.943	41.199	43.162
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.575	1.557	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	19.376	23.343	29.625
	Sundry Debtors	5.242	7.658	9.670
	Cash & Bank Balances	1.232	1.784	4.119
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.650	1.226	0.523
Total Current Assets		28.500	34.011	43.937
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.707	9.862	12.520
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.074	0.074	0.046
Total Current Liabilities		3.781	9.936	12.566
Net Current Assets		24.719	24.075	31.371
MISCELLANEOUS EXPENSES		0.000	0.306	0.612
TOTAL		64.237	67.137	75.145

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Direct Income	30.456	40.064	39.554
		Indirect Income	8.126	0.974	2.119
		TOTAL	38.582	41.038	41.673
Less	EXPENSES
		Cost of Materials	25.720	26.868	24.664
		Manufacturing Expenses	1.062	6.760	4.963
		Administration and Selling Expenses	0.916	4.457	3.125
		Directors Remuneration	0.720	0.780	0.000
		Employees Cost	3.883	3.018	2.510
		Preliminary Expenses Written off	0.306	0.306	0.306
		TOTAL	32.607	42.189	35.568
Less	PROFIT/ [LOSS] BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		5.975	[1.151]	6.105
Less	FINANCIAL EXPENSES/ INTEREST		3.009	4.055	3.972
	PROFIT/ [LOSS] BEFORE TAX, DEPRECIATION AND AMORTISATION		2.966	[5.206]	2.133
Less/ Add	DEPRECIATION/ AMORTISATION		2.393	2.386	1.963
	PROFIT/ [LOSS] BEFORE TAX		0.573	[7.592]	0.170
Less	TAX		[1.028]	[5.583]	6.063
	PROFIT/ [LOSS] AFTER TAX		[0.455]	2.009	[5.893]
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		[11.176]	[9.166]	[3.273]
	BALANCE CARRIED TO THE B/S		[11.631]	[11.175]	[9.166]
	Earnings/ [LOSS] Per Share (Rs.)		[0.34]	[0.23]	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	[1.17]	[4.89]	[14.14]
Return on Total Assets (PBT/Total Assets}	(%)	0.84	[10.09]	0.19
Return on Investment (ROI) (PBT/Networth)		0.04	[0.87]	0.01
Debt Equity Ratio (Total Liability/Networth)		4.26	7.89	6.81
Current Ratio (Current Asset/Current Liability)		7.53	3.42	3.49

LOCAL AGENCY FURTHER INFORMATION

Note:

The Registered office of the company has been shifted from No. 18, 21^st Avenue, Ashok Nagar, Chennai – 600083, Tamil Nadu, India to present address w.e.f. 18.10.2010

Operations:

The performance of the company for the year has been improved compared to the previous year. The Company achieved turnover of Rs. 38.582 Millions (Previous Year Rs. 41.038 Millions).

Bankers Charges Report as per Registry

Corporate identity number of the company	U34300TN2004PLC053626
Name of the company	CITY LINERS GLOBAL LIMITED
Address of the registered office or of the principal place of business in India of the company	No. 18, 21^st Avenue, Ashok Nagar, Chennai – 600083, Tamil Nadu, India
This form is for	Modification of charge
Charge identification number of the charge to be modified	90291045
Type of charge	Book Debts Movable Property Others
Particular of charge holder	UCO Bank, Mid Corporate Branch, No. 67, Burkit Road, T Nagar, Chennai – 600017, Tamil Nadu, India Email: ucotnagarmcu@vsnl.net
Nature of instrument creating charge	Agreement relating to Term Loan Agreement for packing credit Agreement Re: inland/ foreign bills purchased and advance against bills in course of collection.
Date of instrument Creating the charge	16.05.2008
Amount secured by the charge	Rs. 36.169 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Term Loan: Interest at the rate of BPLR + 3.75% presently 17.25%p.a. with monthly rests. Terms of Repayment The term loan in INR to be repaid in 60 monthly installments. The FCNR loan is repayable in 10 yearly installments together with interest. Margin Term Loan : 30% EPC : 10% Extent and Operation of the charge As per Agreement Others: Term Loan: Rs 13.669 Millions Working Capital fund based: Rs.22.500 Millions Total: Rs. 36.169 Millions
Short particulars of the property charged	First Charge by way of hypothecation on the entire stocks of inventory, receivables, bills and other chargeable current assets of the company both present and future, plant and machinery and other immovable and movable fixed assets of the company at door No. 1A, Memla Nagar, Raghavendra Colony, Thandalam, Chennai – 602101.
Particulars of the present modification	The credit facilities revised to Rs. 36.169 Millions and first charg e by way of hypothecation on the entire stocks of inventory, receivables, bills and other chargeable current assets of the company both present and future, plant and machinery and other immovable and movable fixed assets of the company at door No. 1A, Memla Nagar, Raghavendra Colony, Thandalam, Chennai – 602101.

FIXED ASSETS:

• Land
• Building
• Building Work- in – Progress
• Plant and Machinery
• Furniture and Fittings
• Electrical Fittings
• Computer
• Moulds

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.49.19
UK Pound	1	Rs.75.91
Euro	1	Rs.65.43

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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.