MIRA INFORM REPORT

Report Date :

18.10.2011

IDENTIFICATION DETAILS

Name :	BORON CARBIDE (INDIA) PRIVATE LIMITED
Registered Office :	2^nd Floor Bhukhanvala Chambers B 28 Veera Industrial Estate, Veera Desai Road, Link Road, Andheri, Mumbai – 400 053, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	22.01.1987
Com. Reg. No.:	11-42304
Capital Investment / Paid-up Capital :	Rs.0.840 million
CIN No.: [Company Identification No.]	U26993MH1987PTC042304
TAN No.: [Tax Deduction & Collection Account No.]	MUMB12718G
PAN No.: [Permanent Account No.]	AABCB0498D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Boron Carbide used in various industries
No. of Employees :	Not Available

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 4000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company is under pressure. 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 cautions.

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 :	2^nd Floor Bhukhanvala Chambers B 28 Veera Industrial Estate, Veera Desai Road, Link Road, Andheri, Mumbai – 400 053, Maharashtra, India
Tel. No.:	91-22-40649000 / 26733910 / 66680790
Fax No.:	91-22-66920604-05
E-Mail :	shetty_02@rediffmail.com b4cinfo@bdtlimited.com b4c@vsnl.net
Website :	www.b4cind.in
Factory :	GIDC Estate Kabilpore Kabil Navsari – 396 424, Gujarat, India

DIRECTORS

As on 28.09.2011

Name :

Mr. Madhukant Ratanlal Bhukhanvala

Designation :

Director

Address :

Ratna, Plot No. 13, N.S. Road No. 4, Juhu Vile Parle Scheme, Vile Parel (West), Mumbai – 400 056, Maharashtra, India

Date of Birth/Age :

12.03.1933

Date of Appointment :

22.01.1987

DIN No.:

00197436

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U29224MH1971PTC015403	Hifin Capital Private Limited	Director	28-10-71	28-10-71	Active	NO
2	U29220MH1973PTC016544	Bhukhanvala Holdings Private Limited	Director	11-05-73	11-05-73	Active	NO
3	U26993MH1987PTC042304	Boron Carbide (India) Private Limited	Director	22-01-87	22-01-87	Active	NO
4	U74130MH2003PTC138674	Aon Research Private Limited	Director	18-01-03	18-01-03	Active	NO
5	U67200MH2001PTC134338	HSBC Global Shared Services (India) Private Limited	Director	31-07-03	31-07-03	Active	NO
6	U26910MH2004PTC146671	Bhukhanvala Ceramics Private Limited	Director	01-06-06	01-06-06	Amalgamated	NO
7	U29118MH2007PTC168622	Newkut Industries Private Limited	Director	02-04-07	02-04-07	Active	NO
8	U70103MH2007PTC174014	Ratna Properties Private Limited	Director	11-09-07	11-09-07	Active	NO
9	U45202MH2008PTC182726	Peerage Properties Private Limited	Director	27-05-08	27-05-08	Active	NO

Name :

Mr. Niraj Pankaj Bhukhanwala

Designation :

Director

Address :

Ratna, Plot No. 13, N.S. Road No. 4, Juhu Vile Parle Scheme, Vile Parel (West), Mumbai – 400 056, Maharashtra, India

Date of Birth/Age :

23.12.1973

Date of Appointment :

17.07.2003

DIN No.:

00113468

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	U26993MH1987PTC042304	Boron Carbide (India) Private Limited	Director	17-07-03	17-07-03	-	Active	NO
2	U29220MH1973PTC016544	Bhukhanvala Holdings Private Limited	Director	17-07-03	17-07-03	-	Active	NO
3	U92100MH1989PLC051768	Maya Entertainment Limited	Director	18-12-03	18-12-03	19-04-10	Active	NO
4	U26910MH2004PTC146671	Bhukhanvala Ceramics Private Limited	Director	01-06-04	01-06-04	-	Amalgamated	NO
5	U29299MH1999PTC121582	Bhukhanvala Tools Private Limited	Director	29-11-04	29-11-04	27-03-08	Active	NO
6	U29224MH1971PTC015403	Hifin Capital Private Limited	Director	01-12-04	01-12-04	-	Active	NO
7	U28930MH2005PTC152808	Bhukhanvala Power Tools Private Limited	Director	25-04-05	25-04-05	31-03-07	Active	YES
8	U67190MH2005PTC154781	INDIAREIT Fund Advisors Private Limited	Director	08-08-05	08-08-05	-	Active	NO
9	U74994KA2005PTC036023	Woodstock Ambience Private Limited	Director	30-09-06	30-09-06	-	Active	NO
10	U29118MH2007PTC168622	Newkut Industries Private Limited	Director	02-04-07	02-04-07	-	Active	NO
11	U70103MH2007PTC174014	Ratna Properties Private Limited	Director	11-09-07	11-09-07	-	Active	NO
12	U29299MH2007PTC175039	Hilti Manufacturing India Private Limited	Director	16-10-07	16-10-07	01-02-09	Active	NO
13	U51312MH2007PTC172641	TOD'S Retail India Private Limited	Director	29-09-08	15-11-07	15-06-11	Active	NO
14	U45202MH2008PTC182726	Peerage Properties Private Limited	Director	27-05-08	27-05-08	-	Active	NO
15	U27202MH2008PTC183857	Planet Power Tools Private Limited	Director	23-06-08	23-06-08	08-08-08	Active	YES
16	U92100MH2004PTC150019	Maya Entertainment Studios Private Limited	Additional director	22-01-10	22-01-10	-	Active	NO
17	U21098MH2007PTC167536	Planet Paper And Pulp Products Private Limited	Director	03-02-10	03-02-10	-	Active	NO
18	U93000MH2010PTC205033	Maya Digital Media Private Limited	Director	29-06-10	29-06-10	31-07-10	Active	NO
19	U74999MH2009PTC197632	Print Tech Packaging Solutions Private Limited	Director	08-12-10	08-12-10	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2011

Names of Shareholders	No. of Shares
Madhukant Ratanlal Bhukhanvala	225
Bhukhanvala Holdings Private Limited, India	75940
Smita Pankaj Bhukhanvala	125
Hifin Capital Private Limited, India	7500
Nitish Madhukant Bhukhanvala	125
Niraj Pankaj Bhukhanwala	125
Total	84040

As on 28.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	99.29
Directors or relatives of directors	0.71
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Boron Carbide used in various industries

Products :

Item Code No.	Product Description
2849 90 10	Vajrabor Powder
2849 90 10	Carbolap Paste
2849 90 10	Boron Carbide Pellets
2849 90 10	Boron Carbide Ceramics

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel W, Mumbai – 400 013, Maharashtra, India

· Bank of Baroda – GIDC, Kabilpore, District Valsad, Gujarat, India

Facilities :

Secured Loans	31.03.2011 Rs. in millions	31.03.2010 Rs. In Millions
From Bank (Secured by hypothecation Motor Car)	0.611	0.920
Total	0.611	0.920

Unsecured Loans	31.03.2011 Rs. in millions	31.03.2010 Rs. In Millions
From Holding Company	118.704	34.696
Total	118.704	34.696

Banking Relations :	--
Auditors :
Name :	S. R. Divatia and Company Chartered Accountants
Address :	219-221, Avon Arcade, S. J. Road, Vile Parle West, Near Railway Station, Mumbai – 400 056, Maharashtra, India
Tel. No.:	91-22-26160791 / 26631927
Fax No.:	91-22-26104926
E-Mail :	mail@srdivatia.com
PAN No.:	AACFS3031P
Holding Company :	Bhukhanvala Holdings Private Limited CIN : U29220MH1973PTC016544

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
6100000	Equity Shares	Rs.10/- each	Rs.61.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
59040	Equity Shares Fully paid	Rs.10/- each	Rs.0.590 million
25000	Equity Shares to be issued	Rs.10/- each	RS.0.250 million
	Total		Rs.0.840 million

Note

· 1000000 Equity Shares of Rs.10 each of Bhukhanvala Ceramics Private Limited to be cancelled due to Amalgamation)

· 62590 shares of Rs.10 each are held by the Holding Company, Bhukhanvala Holdings Private Limited

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		0.840	0.590	0.590
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.119	10.854	21.278
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		0.959	11.444	21.868
LOAN FUNDS
1] Secured Loans		0.611	0.920	0.000
2] Unsecured Loans		118.704	34.696	6.899
TOTAL BORROWING		119.315	35.616	6.899
DEFERRED TAX LIABILITIES		1.757	1.316	1.592
TOTAL		122.031	48.376	30.359
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		87.844	32.441	36.434
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	12.817	10.586	12.485
	Sundry Debtors	3.614	2.102	5.889
	Cash & Bank Balances	7.935	1.987	7.967
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	24.189	4.990	7.201
Total Current Assets		48.555	19.665	33.542
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	5.514	1.900	37.208
	Other Current Liabilities	5.864	0.461	1.069
	Provisions	2.990	1.369	1.340
Total Current Liabilities		14.368	3.730	39.617
Net Current Assets		34.187	15.935	(6.075)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		122.031	48.376	30.359

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2011	31.03.2010	31.03.2009
SALES	24.647	12.299	165.073
PROFIT/LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	(18.310)	(5.955)	19.707
FINANCIAL EXPENSES	0.122	0.082	2.746
PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION	(18.432)	(6.037)	16.961
DEPRECIATION/ AMORTISATION	11.484	4.674	5.243
PROFIT/LOSS BEFORE TAX	(29.916)	(10.711)	11.718
TAX	(1.067)	(0.287)	4.334
PROFIT/LOSS AFTER TAX	(28.849)	(10.424)	7.384
PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	(4.519)	12.241	4.857
BALANCE CARRIED TO THE B/S	(33.368)	1.817	12.241
Earnings Per Share (Rs.)	(343.28)	(176.56)	125.07

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	(121.38)	(87.09)	7.10
Return on Total Assets (PBT/Total Assets}	(%)	(21.93)	(20.56)	16.75
Return on Investment (ROI) (PBT/Networth)		(31.19)	(0.94)	0.54
Debt Equity Ratio (Total Liability/Networth)		139.40	3.44	2.13
Current Ratio (Current Asset/Current Liability)		3.38	5.27	0.85

LOCAL AGENCY FURTHER INFORMATION

AMALGAMATION OF BHUKHANVALA CERAMIC PRIVATE LIMITED WITH THE COMPANY

The Hon’ble High Court of Bombay vide Order dated 25^th March, 2011 has sanctioned the Scheme of Amalgamation of the erstwhile Bhukhanvala Ceramics Private Limited with the Company. This order was filed with the ROC on 11^th May, 2011. With this, all the assets and liabilities of the erstwhile Bhukhanvala Ceramic Private Limited were transferred and vested in the Company with effect from 1^st April, 2010 (the Appointed Date). Accordingly, effect of the Scheme of Amalgamation has been given effect to in the accounts for 2010-11. However, the figures for previous year are for the Company prior to Amalgamation.

FINANCIAL PERFORMANCE

During the year, the Company achieved a Sales Turnover of Rs.24.647 millions (Previous Year : Rs.12.299 millions). The Company incurred a Loss before providing for taxes of Rs.29.916 millions in the financial year 2010-11 (Previous Year : Loss before tax Rs.10.711 millions).

REVIEW OF OPERATIONS

During the year the amalgamation of Bhukhanvala Ceramics with the company was concluded. This allows the company to have a complete product range in the advanced ceramic materials domain and it will also allow the company to provide complete solutions to customers. This is also expected to improve efficiencies at the operational level.

During the year the company has successfully negotiated for various orders with the Indian government for nuclear and defense related projects. These orders are expected to be issued to the company in the year 2011-12.

The long term outlook for the Nuclear and Defense Industry is positive and with that in mind the company continues to invest in its development and sales efforts for the future.

FORM 8

This form is for

Creation of charge

Corporate identity number of the company

U26993MH1987PTC042304

Name of the company

BORON CARBIDE (INDIA) PRIVATE LIMITED

Address of the registered office or of the principal place of business in India of the company

2^nd Floor Bhukhanvala Chambers B 28 Veera Industrial Estate, Veera Desai Road, Link Road, Andheri, Mumbai – 400 053, Maharashtra, India

Type of charge

• Book Debts
• Movable Property

Particular of charge holder

Name :	HDFC Bank Limited
Address :	HDFC Bank House Senapati Bapat Marg, Lower Parel W, Mumbai – 400013, Maharashtra, India
CIN :	L65920MH1994PLC080618
Email :	efiling@anbindia.com

Nature of description of the instrument creating or modifying the charge

Letter of Hypothecation

Date of instrument Creating the charge

25.09.2006

Amount secured by the charge

Rs.45.000 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest - The bank is entitled to charge interest at such rate as may be determined by the bank from time to time.

Terms of Repayment - On demand and/or as determined by the bank from time to time.

Margin - Margin as determined by the bank from time to time.

Extent and Operation of the charge - The charge to operate as a continuing security for the balance due to the bank.

Others - The facility provided to the borrower is in the nature of Bank Guarantee facility.

Short particulars of the property charged

Hypothecation by way of first charge on all the stock in trade both present and future consisting of raw materials, finished goods, goods in process of manufacturing and other merchandise, fixed assets and whatsoever being movable properties and all the Book Debts, Outstandings monies receivable, claims and bills.

FIXED ASSETS

· Land

· Building

· Plant and machinery

· Electrical installation

· Furniture and fixture

· Office equipment

· Motor car

· Computer

AS PER WEBSITE DETAILS

PROFILE

Subject is a pioneer in manufacturing of Boron Carbide used in various industries. Subject is being supplied to all leading engineering companies in private and public sector units for variety of applications.

Subject is a super hard abrasive material, next only to diamond and cubic boron nitride in hardness. It simply outclasses the conventional abrasives like aluminum oxide and silicon carbide with its superlative and cost effective performance. Boron Carbide find extensive applications in the hard metals (Carbides) industry, in the production of Tools and Machines Components in Finishing / Lapping of numerous items.

Boron Carbide Abrasive Grains commercially manufactured in India for the first time by Subject are now available in various standard grit size.

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.48.89
UK Pound	1	Rs.77.31
Euro	1	Rs.67.79

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--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	NO
--AFFILIATION	YES/NO	YES
--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.