MIRA INFORM REPORT

Report Date :

15.10.2011

IDENTIFICATION DETAILS

Name :`	G VARADAN ENGINEERING PRIVATE LIMITED
Registered Office :	#4, 2^nd“A” Cross, Nagarbhavi Village, Bangalore – 560072, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	17.06.1998
Com. Reg. No.:	08-23859
Paid up Capital :	Rs.0.120 million
CIN No.: [Company Identification No.]	U28112KA1998PTC023859
TAN No.: [Tax Deduction & Collection Account No.]	BLRG03757F
PAN No.: [Permanent Account No.]	AAACE4312Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Paper Machinery Parts.
No. of Employees :	11 (approximately)

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 24572
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

INFORMATION PARTED BY

Name :	Mr. Manjunath
Designation :	Key Executive
Contact No.:	91-9845440517
Date :	10.10.2011

LOCATIONS

Registered Office :	#4, 2^nd“A” Cross, Nagarbhavi Village, Bangalore – 560072, Karnataka, India
Tel. No.:	91-80-23213541
Mobile No.:	91-9845440517 (Mr. Manjunath)
Fax No.:	91-80-23213498
E-Mail :	gvaradan@vsnl.net.in
Location :	Rented
Corporate Office:	No. 2 # 5, Birenroy Road (East), Near Saurav Ganguli House, Kolkata – 700 008, India
Mobile No.:	91-9831437011
Factory :	Prasanth Nagar, Vyaya Nagar, Bangalore – 560040, Karnataka, India
Area :	4000 Sq. ft
Location :	Rented
Factory :	Shrnivas Nagar, Bangalore, Karnataka, India
Branches :	Kolkata , West Bengal, India

DIRECTORS

As on 29.09.2010

Name :	Mrs. Vijaya Govind
Designation :	Chairman
Address:	28 Binny Layout Vijayanagar, Bangalore – 560 040, Karnataka, India
Date of Birth/Age:	06.03.1949
Date of Appointments :	01.04.2006
Name :	Mr. Sundar Rajan Shankar
Designation :	Managing Director
Address :	79, PHBCS 3^rd Stage Behind Bhel Township, Vijayanagar, Bangalore – 560 040, Karnataka, India
Date of Birth/Age :	28.05.1961
Date of Appointment :	01.04.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders	No. of Shares
Vijaya Govind	975
Sharanya Govind	25
Sundarajan Shankar	200
Total	1200

(As on 30.09.2010)

Category	Percentage
Directors or relative of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Paper Machinery Parts.
Products :	· Liquid Filters: Duplex, Triplex, Multiplex, Solid Liquid Separation Filters, etc. · Nozzles: Air Atomizing Nozzles, Belt Type Nozzles, Ceramic Dome Nozzles, Full Cone Nozzles, High Impact Flat Fan Nozzles, etc. · Showering Systems · Oscillators:- Fixed and Variable · Wedge-Filters:- (Online Duplex and Gang) · Auto Self Cleaning Filters · Bearing Housings      · Linear Motion Bearings
Exports :
Products :	· Paper Machinery Parts.
Terms :
Selling :	Credit
Purchasing :	Credit

GENERAL INFORMATION

Customer : 

West Coast Paper Mill Limited

No. of Employees :

11 (in office 3 + 8 in factory)

Bankers :

· HSBC Bank

M. G. Road, Bangalore-560001, Karnataka, India

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Bills Discounting Account	0.014	0.014
Total	0.014	0.014
Unsecured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
From Director
S. R. Shankar	0.145	0.145
Vijaya Govind	1.500	1.500
From Bank
HDFC Bank	0.000	0.581
Bank of India OD account	0.000	0.263
From Others
Reliance Capital Loan A/c	0.556	0.785
Bajaj Finance	1.233	1.516
Total	3.434	4.790

Banking Relations :

---

Auditors :

Name:

Aru and Dev

Chartered Accountant

Address:

13A, Shrungar Shopping Centre, 80 M G Road, Bangalore – 560001, Karnataka, India

Tel No.:

91-80-25587958/ 25589559/ 2558546

Fax No.:

91-80-25593254

Associates/Subsidiaries :

· Shloka Engineering

Bangalore – 560001, Karnataka, India

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000	Equity Shares	Rs.100/- each	Rs.0.500 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1200	Equity Shares	Rs.100/- each	Rs.0.120 million

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2011
Sales Turnover (Approximately)	50.000

Expected Sales (2011-2012) : Rs. 60.000 Millions

The above information has been parted by (Mr. Manjunath - Key Executive)

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		0.120	0.120	0.120
2] Share Application Money		0.001	0.001	0.000
3] Reserves & Surplus		6.022	3.915	2.305
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6.143	4.036	2.425
LOAN FUNDS
1] Secured Loans		0.014	0.014	0.014
2] Unsecured Loans		3.434	4.791	2.196
TOTAL BORROWING		3.448	4.805	2.210
DEFERRED TAX LIABILITIES		0.000	0.000	0.469
Deferred Term Liability		0.126	0.283	0.000
TOTAL		9.717	9.124	5.104
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.822	0.938	1.063
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.037	0.033	0.022
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3.336	2.645	3.050
	Sundry Debtors	9.304	6.446	5.439
	Cash & Bank Balances	3.186	4.413	2.027
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	6.847	6.136	1.994
Total Current Assets		22.673	19.640	12.510
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	11.201	8.891	7.622
	Other Current Liabilities	0.717	0.738	0.177
	Provisions	1.897	1.858	0.692
Total Current Liabilities		13.815	11.487	8.491
Net Current Assets		8.858	8.153	4.019
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		9.717	9.124	5.104

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Turnover	35.573	35.291	26.360
	EXPENSES
		TOTAL	NA	32.526	NA
	PROFIT BEFORE TAX		3.005	2.765	1.695
Less	TAX		--	1.156	0.634
	PROFIT AFTER TAX		NA	1.609	1.061

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
Net Profit Margin (PBT/Sales)	(%)	8.44	7.83	6.43
Return on Total Assets (PBT/Total Assets}	(%)	12.78	13.43	12.48
Return on Investment (ROI) (PBT/Networth)		0.48	0.68	0.69
Debt Equity Ratio (Total Liability/Networth)		2.81	4.03	4.41
Current Ratio (Current Asset/Current Liability)		1.64	1.70	1.47

LOCAL AGENCY FURTHER INFORMATION

NOTES:

The Registered office of the company has been shifted from No. 429, 9^th Main, NGEF Layout, Nagarbhavi, Bangalore – 560072, Karnataka, India, to the present address w.e.f. 01.10.2008

TRADE REFERENCES:

· The West Cost Paper Mills Limited

FORM 8:-

Name of the company	G VARADAN ENGINEERING PRIVATE LIMITED
Presented By	G VARADAN ENGINEERING PRIVATE LIMITED and Canara Bank, Chandra Layout Branch, Bangalore
1) Date and description of instrument creating the change	23.09.2005 Deed of hypothecation Re: Machinery
2) Amount secured by the charge/amount owing on the securities of charge	Rs.0.185 million
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of the existing machinery of Rs. 0.400 million and machinery valued at Rs. 0.215 million stored at company a factory premises at No. 429, 9^th main , NGEF Layout , Bangalore – 560 040, or wherever else by way of trust charge.
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest % 18.75% p.a compounded monthly. Margin: 20% Repayment: In 40 monthly installments of Rs. 0.005 millions commencing from November, 2005.
5) Name and Address and description of the person entitled to the charge.	Canara Bank 8, Chandra layout, Bangalore – 560 040, Tamilnadu, India
6) Date and brief description of instrument modifying the charge	NA
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	NA

FIXED ASSETS:

· Plant and Machinery

· Office Equipment

· Vehicles

· Furniture and Fixture

· Computer

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%	No
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	----------------------
22) Litigations that the firm / promoter involved in	----------------------
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	----------------------
26) Buyer visit details	----------------------
27) Financials, if provided	Yes
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.49.06
UK Pound	1	Rs.77.41
Euro	1	Rs.67.72

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	YES
--AFFILIATION	YES/NO	YES
--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.