MIRA INFORM REPORT

Report Date :

23.04.2012

IDENTIFICATION DETAILS

Name :	LANCER LASER TECH LIMITED (w.e.f. 29.04.2008)
Formerly Known As :	LANCER LASER TECH PRIVATE LIMITED
Registered Office :	Survey No. 1434P/2, Chhatral-Mehsana, National Highway, Opposite Sandek Laminations, Village Rajpur, Taluka Kadi-382740, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.08.1999
Com. Reg. No.:	04-36446
Capital Investment / Paid-up Capital :	675000 Euro
CIN No.: [Company Identification No.]	U28930GJ1999PLC036446
TAN No.: [Tax Deduction & Collection Account No.]	AHML00400B/ AHML00150D
PAN No.: [Permanent Account No.]	AAACL5061F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Machinery Parts and Sheet Metal Components.
No. of Employees:	36 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	Euro 216675
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well 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

LOCATIONS

Registered Office/ Factory :	Survey No. 1434P/2, Chhatral-Mehsana, National Highway, Opposite Sandek Laminations, Village Rajpur, Taluka Kadi-382740, Gujarat, India
Tel. No.:	91-2764-278801/278802/278803/04/05/06
Mobile No.:	91-9825065253 (Mr. Dhirajkumar Narshibhai Patel)
Fax No.:	91-2764-278807
E-Mail :	info@lancerlaser.com bjt_asso@yahoo.co.in
Website :	http://www.lancerlaser.com

DIRECTORS

AS ON 09.05.2011

Name :	Mr. Nitin Mangaldas Patel
Designation :	Director
Address :	21, Netra Bunglow, Near Seema Saurabh Society, Memnagar, Ahmedabad, Gujarat, India
Date of Birth/Age :	25.02.1973
Date of Appointment :	20.08.1999
Din No.:	01753811

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	U28930GJ1999PLC036446	LANCER LASER TECH LIMITED	Director	28-08-99	28-08-99	Active	NO
2	U29100GJ2012PTC068908	LANCER FAB TECH PRIVATE LIMITED	Director	07-02-12	07-02-12	Active	NO

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Bottom of Form

Name :	Mr. Dhirajkumar Narshibhai Patel
Designation :	Director
Address :	20, Samruddhi 1 Bunglow, Opposite Saij Anand Bunglow, Shilaj Road, Thaltej, Ahmedabad-380054, Gujarat, India
Date of Birth/Age :	08.12.1973
Date of Appointment :	20.08.1999
Din No.:	02136948

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Bottom of Form

Name :	Mr. Dhyabhai Bechrdas Patel
Designation :	Director
Address :	66, Alok Bunglow, Drive in Road, Thaltej, Ahmedabad, Gujarat, India
Date of Appointment :	01.04.2009
Din No.:	02558924

KEY EXECUTIVES

Name :	Mr. Dinesh
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 09.05.2011

Names of Shareholders	No. of Shares
Nitinbhai M Patel	530400
Jashodaben N Patel	104000
Bhavanben N Patel	191100
Dhiraj N Patel	640400
Jagrutiben Patel	78500
Narshibhai B Patel	56600
Kailashben N Patel	98700
Sarojben D Patel	156280
Dahyabhai B Patel	232500
Hitesh D Patel	130000
Rashmiben D Patel	51000
Shubhadraben D Patel	456500
Mittal M Patel	30000
Dahyabhai B Patel HUF	475500
Dipesh D Patel	80000
Nitin M Patel HUF	624500
Dhiraj N Patel HUF	266820
Harshad N Patel	118200
Krishna H Patel	54500
Geometry Metal Tech Private Limited, India	60000
Narshibhai B Patel HUF	49000
Harshad N Patel HUF	15500
Total	4500000

Equity Share Breakup (Percentage of Total Equity)

AS ON 09.05.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	99.00
Bodies corporate	1.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Machinery Parts and Sheet Metal Components.

Products :

PRODUCT DESCRIPTIONS	ITC CODE
Sheet Metal Components and Fabrication/ Engineering	84879000

Exports :

Products :

Machinery Parts and Sheet Metal Components

Countries :

US

Imports :

Products :

Raw Materials

Countries :

Italy

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Actual Production*
Machinery Parts	Nos.	519175 [Excluding production on job work basis]

NOTE: The management has certified the particulars regarding the capacity as shown above and we have been informed that these particulars cannot be ascertain and not verified by the auditors being a technical matters.

GENERAL INFORMATION

Suppliers :

· Jindal Stainless Limited

Customers :

Wholesalers

· KHS Machinery Private Limited

No. of Employees :

36 (Approximately)

Bankers :

· Corporation Bank, Navrangpura Branch, Ahmedabad-380009, Gujarat, India

· Dena Bank, Mesona High Branch

Facilities :

Secured Loans	As on 31.03.2011 [In Euro]	As on 31.03.2010 [In Euro]
Term Loan from Corporation Bank (Secured by way of mortgage factory land and building and hypothecation of plant and machinery of the company and personal guarantee of the directors)	855712	61709
Cash Credit from Corporation Bank (Secured by way of hypothecation of book debts and stocks )	536677	472459
Vehicles loans- secured by way of hypothecation of vehicles	32274	14317
Total	1424663	548485
Unsecured loans
From Directors	100651	113034
From Others	90850	77988
From Other Banks	0000	774
Deferred Payment of Sales Tax	62430	96097
Total	253931	287893

Banking Relations :	--
Auditors :
Name :	B.J. Trivedi and Associates Chartered Accountant
Address :	34, Raj Ratna Complex, Oppsite Municipal School, Navrangpura, Ahmedabad-380009, Gujarat, India
Tel. No.:	91-79-26426317
Fax No.:	91-79-26445640
E-Mail :	bjt_asso@yahoo.co.in
Associates:	Geometry Metal Tech Private Limited Umiya Agro Industries

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	0.15 Euro Each	750000 Euro

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
* 4500000	Equity Shares	0.15 Euro Each	675000 Euro

* Includes issue of 1550000 equity shares as fully paid up bonus shares on 01.06.2010

FINANCIAL DATA

[all figures are in Euro]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		675000	232500	232500
2] Share Application Money		000	000	000
3] Reserves & Surplus		408376	621034	550971
4] (Accumulated Losses)		000	000	000
NETWORTH		1083376	853534	783471
LOAN FUNDS
1] Secured Loans		1424663	548485	475688
2] Unsecured Loans		253931	287893	200464
TOTAL BORROWING		1678594	836378	676152
DEFERRED TAX LIABILITIES		203660	145637	123815
TOTAL		2965630	1835549	1583438
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2931335	1172110	1120599
Capital work-in-progress		000	000	000
INVESTMENT		153	153	153
DEFERREX TAX ASSETS		000	000	000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	603897	477631	305217
	Sundry Debtors	583796	652606	418693
	Cash & Bank Balances	54567	35463	29977
	Other Current Assets	000	000	000
	Loans & Advances	157442	67059	62230
Total Current Assets		1399702	1232759	816117
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1363109	537508	319505
	Other Current Liabilities	17471	29281	26524
	Provisions	000	9728	11960
Total Current Liabilities		1380580	576517	357989
Net Current Assets		19122	656242	458128
MISCELLANEOUS EXPENSES		1785	2485	000
OTHERS		13235	4559	4558
TOTAL		2965630	1835549	1583438

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2989124	2185759	1662689
		Job Charges Income	258028	112006	37129
		Interest Subsidy	000	000	5253
		Other Income	25990	3414	1157
		TOTAL (A)	3273142	2301179	1706228
Less	EXPENSES
		Raw Material Consumption	2361159	1417671	1123977
		Manufacturing Expenses	324874	208353	157365
		Administrative Expenses	299836	137192	133981
		Selling and Distribution Expenses	117513	70379	84179
		Variation in Stock	(287511)	91999	(80142)
		TOTAL (B)	2815871	1925594	1419360
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		457271	375585	286868
Less	FINANCIAL EXPENSES (D)		148017	91842	76761
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		309254	283743	210107
Less/ Add	DEPRECIATION/ AMORTISATION (F)		83853	71854	58875
	PROFIT BEFORE TAX (E-F) (G)		225401	211889	151232
Less	TAX (H)		100086	60386	52768
	PROFIT AFTER TAX (G-H) (I)		125315	151503	98464
Less	PREVIOUS YEAR EXPENSES		3713	5310	448
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		459270	389207	317898
Less	APPROPRIATIONS
		Dividend	91176	68382	22794
		Tax on Dividend	15143	7748	3913
		Issue of Bonus Shares	227941	000	000
	BALANCE CARRIED TO THE B/S		246612	459270	389207
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	29361	14744	NA
	TOTAL EARNINGS
	IMPORTS
		Raw Materials	625362	197159	NA
	TOTAL IMPORTS
	Earnings Per Share (Euro)		27.85	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.83	6.58	5.77
Net Profit Margin (PBT/Sales)	(%)	7.54	9.69	9.10
Return on Total Assets (PBT/Total Assets}	(%)	5.20	8.81	7.81
Return on Investment (ROI) (PBT/Networth)		0.21	0.25	0.19
Debt Equity Ratio (Total Liability/Networth)		2.82	1.66	1.32
Current Ratio (Current Asset/Current Liability)		1.01	2.14	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	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
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%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
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	Yes
30) Major Shareholders, if available	Yes

NOTE:

The Registered office of the company has been shifted from 17/B, Kamladeep Industrial Estate, opposite New Arvind Mills, Khatraj, Kalol-382721, Gujarat, India to present address.

FUTURE OUTLOOK:

The company has achieved significant growth during the last financial year. On a standalone basis, the company achieved total income of Euro 3247147 during the year under consideration as against the total of Euro 2297764 in earlier year, representing an increase of almost 41% as compare to 35% of earlier year.

As the company has already established its trade name in the market and proved its capability. As a strategic objective, the company has been focusing to global opportunity in the market and commissioned the new plant location having full fledged state of art technology, a total engineering fabrication job shop solution with all respect and pursuing expansion / enhancement of facility to provide high tech fabrication solution in coming years as a part of business strategy by increasing value chain with large infrastructure facility.

By level best efforts, they are on a verge of proving track record to deliver the service to their customers. The company expects very bright future with great avenues of the business by spreading its horizon.

RAJPUR PROJECT

It is a matter of great pleasure that the company has already started commercial production at Rajpur Project as a part of expansion strategy. Necessary statutory registration also obtained. The Company is under planning to shift the entire manufacturing operation at Rajpur for the sake of commercial expedience. The management expects full fledged operation in next year.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U28930GJ1999PLC036446
Name of the company	LANCER LASER TECH LIMITED
Address of the registered office or of the principal place of business in India of the company	17/B, Kamladeep Industrial Estate, Opposite New Arvind Mills, Khatraj, Kalol-382721, Gujarat, India
This form is for	Creation of charge
Type of charge	Book Debts Movable Property
Particular of charge holder	DENA BANK
Nature of instrument creating charge	Agreement of Hypothecation (Goods, Book Debts and Other Movable Assets to secure multiple facilities) dated 29/09/2011
Date of instrument Creating the charge	29.09.2011
Amount secured by the charge	Euro 3122058
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest CCH: BR (10.70%) + 6.55% - 2.75% i.e. 14.50% p.a. TL - I: BR (10.70%) + 6.55% +0.50% - 2.75% i.e. 15.00% p.a. TL-II : BR (10.70%) + 6.55% +0.50% - 2.75% i.e. 15.00% p.a. (ROI subject to change) Terms of Repayment CC- running account payable on demand subject to annual renewal TL - I and TL - II: Repayable in 7 years with moratorium period of 6 months and repayment start from last quarter of FY 2011-12 and to be made in 28 quarterly installments of Euro 71691 and Euro 7882 respectively Margin CC: Raw Material - 25%,Finished Goods - 25%,Working Progress and stores and spares - 33.1/3%, Book debts - 50% TL - I: 28.16% TL - II: 40% L/C: 20% Extent and Operation of the charge Principal amount of loan / credit facilities as aforesaid together with interest, interest - tax thereon, as applicable, costs, charges, expenses, discount, commission and other moneys due to the bank as specifically mentioned in the Agreement of Hypothecation dated 29/09/2011
Short particulars of the property charged	primary by way of hypothecation by way of first charge on all the Borrower's goods and/or book-debts and/or movables and other assets as per Agreement of Hypothecation dated 29/09/2011 All stocks raw materials / goods in process and finished goods such as metal sheets , fabricated sheets etc, consumable stores and spares, packing materials etc both present and future as per agreement All the tangible movable properties and assets of the borrower of whatsoever nature including plant, machinery, tools, accessories lying at 17B, 22B Khatraj and Rajpur Highway both present and future All the present and future book-debts, outstanding, moneys, receivables, claims, bills, rights to or in movable properties and movable assets which are now due, owing or payable or belonging to borrower

FIXED ASSETS:

· Land

· Factory Building

· Plant and Machinery

· Electric Equipments

· Furniture and Fixture

· Computers

· Office Equipments

· Vehicles

· Computer Software

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	6
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	6
--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		47

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.