MIRA INFORM REPORT

Report Date :

21.04.2012

IDENTIFICATION DETAILS

Name :	VARUN RADIATORS PRIVATE LIMITED
Registered Office :	Plot No 1106 G I D C Estate, Chhatral Tal Kalol, District Mehsana, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	29.04.1986
Com. Reg. No.:	04-008648
Capital Investment / Paid-up Capital :	Rs. 4.240 millions
CIN No.: [Company Identification No.]	U25209GJ1986PTC008648
TAN No.: [Tax Deduction & Collection Account No.]	AHMV00804G
PAN No.: [Permanent Account No.]	AAACV7073K
Legal Form :	Private Limited Liability Company
Line of Business :	Designing and Manufacturing of Aluminium Brazed Heat Exchangers and Copper-Brass Radiators.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 77000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be under pressure. However, trade relations are 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 – 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/ Factory :	Plot No 1106 G I D C Estate, Chhatral Tal Kalol, District Mehsana, Gujarat, India
Tel. No.:	91-2764-233348/56/59
Fax No.:	91-2764-233348
E-Mail :	ca.sanjivshah@yahoo.com info@varunradiators.com
Website :	www.varunradiators.com

DIRECTORS

As On 30.09.2010

Name :

Mr. Manish Hasmukhrai Patel

Designation :

Director

Address :

12 Uganda park, Memnagar, Ahmedabad – 380052, Gujarat, India

Date of Birth/Age :

25.11.1960

Date of Appointment :

12.02.1987

DIN No. :

01807334

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	U25209GJ1986PTC008648	VARUN RADIATORS PRIVATE LIMITED	Director	12-02-87	12-02-87	Active	NO
2	U50101GJ2000PTC039104	INDULGENCE LIFESTYLE PRIVATE LIMITED	Director	21-12-00	21-12-00	Dormant	NO

Name :

Mrs. Mina Manish Patel

Designation :

Director

Address :

12 Uganda park, Memnagar, Ahmedabad – 380052, Gujarat, India

Date of Birth/Age :

27.04.1969

Date of Appointment :

01.03.2004

DIN No. :

01922103

Name :

Mr. Nilesh Hasmukhbahi Patel

Designation :

Director

Address :

12 Uganda park, Memnagar, Ahmedabad – 380052, Gujarat, India

Date of Birth/Age :

15.09.1964

Date of Appointment :

01.04.1989

DIN No. :

01848948

Name :

Ms. Priti Nilesh Patel

Designation :

Director

Address :

12 Uganda park, Memnagar, Ahmedabad – 380052, Gujarat, India

Date of Birth/Age :

06.02.1969

Date of Appointment :

01.03.2004

DIN No. :

01848968

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 30.09.2010

Names of Shareholders	No. of Shares
Hasmukhbhai Patel	1233
Manish Patel	9087
Madhuben Patel	1772
Nilesh Patel	7307
Mina Patel	11125
Priti Patel	10928
Mita Parekh	481
Parth Bhatt	20
Utkarsh Patel	200
Hasmukhbahi V Patel HUF	247
Total	42400

As On 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Designing and Manufacturing of Aluminium Brazed Heat Exchangers and Copper-Brass Radiators.
Brand Names :	Hexsol Cougar Ashwa

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Actual Production
Radiators Manufacturing	33432
Radiators Trading	2352
Cables Trading	0

GENERAL INFORMATION

Bankers :

• State Bank of India – Kadi Branch, Patel Bhuvan, Kadi – 382715, Gujarat, India
• HDFC Bank – S. G. Road Branch, Sapath 3, Near Grand Bhagwati, S.G. Road, Ahmedabad, Gujarat, India
• ICICI Bank

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
State Bank of India CC A/c	20.191
S.B.I open term loan	1.128
S.B.I tempo traveler loan	0.156
S.B.I term loan	18.368
Reliance capital (swaraj mazda)	0.264	46.063
ICICI Bank – Indica Loan	0.084
ICICI swift loan	0.158
S.B.I SME Care Loan	0.979
S.B.I Loan A/c-27627	5.060
Total	46.388	46.063

Banking Relations :	--
Auditors :
Name :	A. L. Thakkar and Company Chartered Accountants
Address :	Kashmira Chambers, B/H Old High Court, Navrangpura, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-26587802/26580524
Fax No.:	91-79-26585132
E-Mail :	lgt@icenet.net
Pan No.:	AAFFA6141D

CAPITAL STRUCTURE

As On 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
45000	Equity shares	Rs. 100/- each	Rs. 4.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
42400	Equity shares	Rs. 100/- each	Rs. 4.240 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		4.240	3.700	3.700
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		15.224	11.706	13.626
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		19.464	15.406	17.326
LOAN FUNDS
1] Secured Loans		46.388	46.063	17.044
2] Unsecured Loans		12.722	12.216	9.694
TOTAL BORROWING		59.110	58.279	26.738
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		78.574	73.685	44.064
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		43.017	43.810	13.905
Capital work-in-progress		6.199	6.199	14.096
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	38.322	30.516	16.895
	Sundry Debtors	8.742	5.881	8.663
	Cash & Bank Balances	1.133	1.288	1.086
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.497	5.969	1.892
Total Current Assets		51.694	43.654	28.536
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	21.760	19.496	11.956
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.640	0.550	0.550
Total Current Liabilities		22.400	20.046	12.506
Net Current Assets		29.294	23.608	16.030
MISCELLANEOUS EXPENSES		0.064	0.068	0.033
TOTAL		78.574	73.685	44.064

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	50.016	29.328	30.165
		Other Income	0.004	0.082	0.000
		TOTAL	50.020	29.410	30.165
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	50.012
	PROFIT BEFORE TAX		0.008	NA	NA
Less	TAX		0.000
	PROFIT AFTER TAX		0.008
	Earnings Per Share (Rs.)		0.01

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.02	NA	NA
Net Profit Margin (PBT/Sales)	(%)	0.02	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	0.01	NA	NA
Return on Investment (ROI) (PBT/Networth)		0.00	NA	NA
Debt Equity Ratio (Total Liability/Networth)		3.16	5.08	2.27
Current Ratio (Current Asset/Current Liability)		2.31	2.18	2.28

LOCAL AGENCY FURTHER INFORMATION

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	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last one year	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
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	Yes
29) Last accounts filed at ROC	No
30) Major Shareholders, if available	Yes

Form 8:

This form is for

Modification of charge

Charge identification number of the modified

10104541

Corporate identity number of the company

U25209GJ1986PTC008648

Name of the company

Varun Radiators Private Limited

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

Plot No 1106 G I D C Estate Chhatral Tal Kalol Dist Mehsana, Gujarat, India

Type of charge

Book Debts

Movable Property

Immovable Property

Particular of charge holder

Name :	State Bank of India
Address :	Kadi Branch, Patel Bhuvan, Kadi – 382715, Gujarat, India
Email :	Sbi.00549@sbi.co.in

Nature of description of the instrument creating or modifying the charge

C10A memorandum relating to deposit of totle deeds for creation of further charge for term loan overall limit where the initial charge is created by way of motrtgage by doposit oftitle deeds for Rs. 54.000 millions (Rs. Fifty Four Millions Only)

Date of instrument Creating the charge

30.03.2009

Amount secured by the charge

Rs. 54.000 Millions

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

Rate of Interest – Cash credit - @ SBAR i.e presently 12.25%

Term Loan - @ SBAR i.e presently 12.25%

Terms of Repayment – cash Credit – Repayable on demand

Term Loan – 51 installments of Rs. 0.392 million each

Open term loan – Repayable in three years after disbursement

Demand loan – repayable in six monthly installment of Rs 0.666 million

Margin –

Raw materials imported – 25%

Raw mateials indegenious - 25%

Finished goods – 40%

Receivable – 50%

Term loan – 26.5%

Extent and Operation of the charge –

Hypothecation of entire current assets of the company and hypothecation over plant and machinery to be created out of term loan.

Collateral security of leasehold plot no. 1106, 1507, 1514 and 1515 phase II Gidc chhatral tal kalol, and residential sub plot no. 125/b of ognaj park plot owners association ahmedabad

Personal gurantee of all directors and third party guarantee of Smt. Madhuben H, Patel.

Short particulars of the property charged

Collateral security of leasehold plot no. 1106, 1507, 1514 and 1515 phase ii gidc chhatral tal, kalol and resedentail sub plot no 125/b of ognaj park plot owners association ahmedabad.

FIXED ASSETS:

• Land
• Dead stock
• Factory building
• Plant and machinery
• Electrical installation
• Furniture and fixtures
• Tempo traveler
• Air conditioner
• Computer
• Type writer
• Mobile phone
• Opel astra
• Maruti swift car
• Building w.i.p
• Plastic crates
• Fax machine
• Swaraj mazda

AS PER WEBSITE DETAILS

PROFILE:

Subject is a Bureau Veritas ISO 9001: 2000 certified company for designing and manufacturing Aluminium Brazed heat exchangers for wide range of applications and markets. Starting as a manufacturer of copper brass radiators, Varun Radiator has now become a leading Aluminium brazed heat exchange solution provider. It has become the first Indian company to design and develop parallel flow condenser for HVAC application. Drive to innovate and timely delivery of cost effective products through value engineering have been the constant guiding principles for the company.

MANAGEMENT TEAM

Realizing that Human resource is the most critical resource in the organization it is company’s endeavour to recruit and retain talents from the top most institutes of the country. The team has graduates from IIM Ahmedabad and IIT’s to add strength to the organization.

The management team of the company comprises of

Manish Patel, Managing Director

Manish Patel is a merit certificate holder from ‘The Institute of Cost and Works Accountants’. He possesses 20 years of experience in engine cooling products, markets and finance.

Nilesh Patel, Executive Director

Nilesh Patel in a commerce graduate. He possesses 16 years of experience in managing manufacturing and supply chain for the company.

K. Sharat Chandra, Head Strategy and Planning

An IIT-Mumbai alumnus with post graduation in management from IIM Ahmedabad – 2005 . Sharat worked with Arthur Andersen for 2 years before joining IIM A. He formulates company’s strategy to identify new areas/products for growth and was instrumental in starting  PF condenser project for the company

Joy Tuscano, Chief Operating Officer

An electronics engineer with a Post-graduation in Management from IIM – Ahmedabad. He also did M Sc. in International Management from Università commerciale Luigi Bocconi – Italy . He handles overall operations for the company.

Ahmed Saifee, Head Business Development

An engineer with Post-graduation in Management from IIM – Ahmedabad. Prior to his MBA he was employed with Nestle in manufacturing and process development. He handles business planning and development for OEM’s.

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.52.00
UK Pound	1	Rs.83.54
Euro	1	Rs.68.40

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.