MIRA INFORM REPORT

Report Date :

14.09.2011

IDENTIFICATION DETAILS

Name :	SAGAR HEAVY ENGINEERING PRIVATE LIMITED
Registered Office :	# 419, Industrial Area – A, Ludhiana – 141003, Punjab
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	14.05.1986
Com. Reg. No.:	16-006856
Capital Investment / Paid-up Capital :	Rs.0.300 Million
CIN No.: [Company Identification No.]	U28932PB1986PTC006856
TAN No.: [Tax Deduction & Collection Account No.]	JLDS07065C
PAN No.: [Permanent Account No.]	AAGCS8020B
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer and Exporter of Workshop Equipment Machine Tools.
No. of Employees :	25 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 3000
Status :	Small Company
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a small company in its field. Its scale of activities are limited. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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

INFORMATION PARTED BY

Name :	Mr. Gurtar Singh
Designation :	Project Manager
Contact No.:	91-9914821506
Date :	24.08.2011

LOCATIONS

Registered Office/ Factory :	# 419, Industrial Area – A, Ludhiana – 141003, Punjab, India
Tel. No.:	91-161-5025352/ 2601267
Mobile No.:	91-9914821506/ 9872904835 (Mr. Gurtar Singh) 91-9814021505 (Mr. S. Kirpal Sagar) 91-9915070900 (Mr. Zorawar Singh)
Fax No.:	91-161-5025352/ 2601267
E-Mail :	gurtar@sagarheavy.co.in info@sagarheavy.co.in nikhil_nanu@rediffmail.com sambhtca@gmail.com
Website :	http://www.sagarheavy.com
Location :	Owned

DIRECTORS

(AS ON 30.09.2010)

Name :

Mr. Kirpal Singh

Designation :

Director

Address :

# 419 Industrial Area-A, Ludhiana-141003, Punjab, India.

Date of Birth/Age :

04.04.1948

Date of Appointment :

14.05.1986

DIN No.:

01728935

Other Directorships :

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	U28932PB1986PTC006856	SAGAR HEAVY ENGINEERING PVT LTD	Director	14/05/1986	14/05/1986	Active

Name :

Mr. Gurdeep Kaur

Designation :

Director

Address :

# 419 Industrial Area- A, Ludhiana-141003, Punjab, India.

Date of Birth/Age :

01.08.1952

Date of Appointment :

01.04.1987

DIN No.:

01730528

Other Directorships :

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	U28932PB1986PTC006856	Sagar Heavy Engineering Private Limited	Director	01/04/1987	01/04/1987	Active	Yes

Name :

Mr. Zorawar Singh

Designation :

Director

KEY EXECUTIVES

Name :	Mr. Gurtar Singh
Designation :	Project Manager
Contact No.:	91-9914821506

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Kirpal Singh	9000
Gurdeep Kaur	19000
Zorawar Singh	2000
Total	30000

(AS ON 30.09.2010)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Workshop Equipment Machine Tools.
Products :	· Shaping Machine · Vertical Turning Lathe Machine · Slotting Machine · Radial Drilling Machine · Milling Machine · CNC Machine
Exports :
Products :	Workshop Equipment
Countries :	· South Africa · Gulf Countries
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

· Bharat Heavy Electricals Limited

· Bhilai Machinery Corporation

· Hindustan Nation al Glass and Industries Limited

· Industrial Traders

· Kalsi Engineers

· Larsen and Turbo Limited

· Parksons Engineering Corporation

· Gremac CNC limited

· Progressive Engineering Works

· Sagar Engineering Work Unit No.2

· Sagar Toods

· Universal Engineering (Private) limited

· Zays Auto Engineering Private Limited

Suppliers :

· Akal Castings (Private) Limited

· A. K. Engineering Works

· Ashoka Hardware and Mills Store

· Bombay Trading Corporation

· Chetana Hi-tech Engineers

· DIDC Courier and Cargo

· Goel Associates

· Gulshan Electric Store

· H. S. Engineering works

· Iqus India (Private) Limited

· India Mart Internesh Limited

· Jethi Chemicals

· Kalsi It Solutions

· Khanna chemicals

· Master Millin and Engg Corporation

· Nota Industries

· Shiva Coal Traders

· Shodhi Harware and Mills Stores

· Sodhi Oil company

· Vijay Shankar Chandak and Company

· Udan Products Promoters

No. of Employees :

25 (Approximately)

Bankers :

· UCO Bank

Miller Ganj, Ludhiana-141002, Punjab, India.

· HDFC Bank

· HSBC Bank

· ICICI Bank

· Standard Chartered Bank

Facilities :

Secured Loan	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
UCO Bank C/C Hypothecation (Secured against hypothecation of stock of raw material stock in process and fixed goods, along with personal guarantee of directors.)	4.499	3.273
UCO Bank Bills (Secured against hypothecation of bills discounted and personal guarantee of the directors.)	0.000	1.233
HDFC Bank Loan A/c (secured against personal guarantee of the directors)	0.169	0.299
Total	4.668	4.805
Unsecured Loan	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Gurdeep Kaur	0.275	0.323
Sat Pal Singh	0.054	0.054
Zorawar Singh	0.077	0.062
Kirpal Singh	0.030	0.016
S. Ravi	0.300	0.300
Total	0.736	0.755

Banking Relations :	--
Auditors :
Name :	Sat Pal Sharma and Company Chartered Accountant
Address :	44-GF, Sant Isher Singh Nagar, Pakhowal Road, Ludhiana – 141001, Punjab, India.
Associates/Subsidiaries :	· Sagar Mechtronics Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
30000	Equity Shares	Rs.10/- each	Rs.0.300 Million
20000	Preferences Shares	Rs.10/- each	Rs.0.200 Million
	Total		Rs.0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
30000	Equity Shares	Rs.10/- each	Rs.0.300 Million

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		0.300	0.300	0.300
2] Share Application Money		0.060	0.060	0.060
3] Reserves & Surplus		0.274	0.235	0.192
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		0.634	0.595	0.552
LOAN FUNDS
1] Secured Loans		4.668	4.805	2.899
2] Unsecured Loans		0.736	0.755	0.744
TOTAL BORROWING		5.404	5.560	3.643
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		6.038	6.155	4.195
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.024	1.067	1.166
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	5.641	4.529	2.023
	Sundry Debtors	2.945	3.021	3.533
	Cash & Bank Balances	1.938	2.939	1.915
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.647	0.553	0.382
Total Current Assets		11.171	11.042	7.853
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	1.620	1.954	0.920
	Other Current Liabilities	4.537	4.000	3.904
	Provisions	0.000	0.000	0.000
Total Current Liabilities		6.157	5.954	4.824
Net Current Assets		5.014	5.088	3.029
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		6.038	6.155	4.195

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
SALES
	Sales Turnover	11.100	14.618	14.836
	Miscellaneous Income	0.010	0.017	0.005
	TOTAL	11.110	14.635	14.841
EXPENSES
	Depreciation	0.131	0.133	0.145
	Bank Interests and Bank Charges	0.767	0.648	0.000
	Other Expenses	0.010	0.017	0.005
NET PROFIT / LOSS		0.039	0.044	0.055

KEY RATIOS

PARTICULARS	31.03.2010	31.03.2009	31.03.2008
Debt Equity Ratio (Total Liability/Networth)	18.24	19.35	15.34
Current Ratio (Current Asset/Current Liability)	1.81	1.85	1.63

LOCAL AGENCY FURTHER INFORMATION

OPERATION

The sales turnover of the company has decreased to Rs.11.100 Millions as compared to previous years figure of Rs.14.618 Millions. The company earned net profit of Rs.0.039 Million. The company has paid bank interests and bank charges to Rs.0.067 Million during the year.

SHARE CAPITAL:

The total paid up share capital of the company as on 31.03.2010 is 30000 equity shares of Rs.10/- each fully paid.

FORM 8:

This form is for	Modification of charge
Charge identification number of the modified	80036459
Corporate identity number of the company	U28932PB1986PTC006856
Name of the company	SAGAR HEAVY ENGINEERING PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	# 419 Industrial Area-A, Ludhiana-141003, Punjab, India.
Type of charge	Movable Property (not being pledge)
Particular of charge holder	UCO Bank, Miller Ganj, Ludhiana-141003, Punjab, India. Rajesh_kumarpcs@yahoo.com
Nature of description of the instrument creating or modifying the charge	Hypothecation of Goods to secure a demand cash credit
Date of instrument Creating the charge	03.03.2009
Amount secured by the charge	Rs.4.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest at the rate of 1% per annum below the BPLR subject to minimum of 12% per annum with monthly rest. Terms of Repayment ON Demand Margin 25% Extent and Operation of the charge 100%
Short particulars of the property charged	All kinds of stocks, pigirons, castic iron, special steel, gun metal, electrical goods, machine tools, vertical machine, special pump or machine and all other articles, goods, stocks and moveable property of any kind whatsoever which now or hereafter from time to time during this security shall be brought into stored or to be in or about the borrower's premises and godowns open space, factories etc including in particular such stock stored at 419, industrial area A, Ludhiana.
Date of latest modification prior to the present modification	18.07.2007
Particulars of the present modification	The Bank has granted to the borrower by way of cash credit facility to the extent of Rs.1.400 millions and the repayment thereon with interest, cost, charges and expenses has been secured by the deed of hypothecation dated 28th December, 2005 and modified by supplement deed of hypothecation dated 18.07.2007 and 03.03.2009 and limit has been increased to Rs.2.400 millions and Now increased to Rs.0.450 millions respectively

FIXED ASSETS:

· Air Conditioner

· Bicycles

· Motor Car

· Computer

· Fans

· Furniture

· Generator

· Hand Pump

· Inverter

· Mobile Cell Phone

· Page and Fax

· Plant and Machinery

· Tools

· Scooter

· Fire Extinguisher

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.46.97
UK Pound	1	Rs.74.22
Euro	1	Rs.63.66

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		29

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.