MIRA INFORM REPORT

Report Date :

21.08.2012

IDENTIFICATION DETAILS

Name :	SAFEX INDUSTRIES LIMITED (w.e.f. July 2012) SAFEX EQUIPMENTS PRIVATE LIMITED
Registered Office :	Plot No.517, GIDC Industrial Estate, Vatva, Ahmedabad – 382 445, Gujarat.
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.02.1990
Com. Reg. No.:	04 – 13315
Capital Investment / Paid-up Capital :	Rs.1.634 Millions
CIN No.: [Company Identification No.]	U23904GJ1990PTC013315
PAN No.: [Permanent Account No.]	AABCS5536R
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of EOT Crane.
No. of Employees :	300 (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 :	USD 130772
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject was established as a private limited with the name ‘Safex Equipment Private Limited’ in the year 1990 and recently it got converted into a limited company with the name ‘Safex Industries Limited’ during July 2012. It is an established company having satisfactory track records. 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Sagar
Designation :	Director
Contact No.:	91-9924099400
Date :	27.02.2012

LOCATIONS

Registered Office/ Factory 1:	Plot No.517, GIDC Industrial, GIDC Industrial Estate, Phase IV, Vatva, Ahmedabad – 382 445, Gujarat
Tel. No.:	91-79-25842836
Mobile No.:	91-9924099400 (Mr. Sagar)
Fax No:	91-79-25833197
E-mail:	sagar.shah@safexcranes.co.in
Website:	www.safexcranes.co.in
Area:	10000 sq. ft
Location :	Owned
Factory 2:	Block No.85, Village Vavdi, Khedaa Dholka Highway, Kheda, Gujarat, India

DIRECTORS

As on 30.09.2011

Name :	Mr. Mohan Khemchand Assudani
Designation :	Director
Address :	19/402, Satyagrah Chhavni, Satellite, Ahmedabad – 380 015, Gujarat, India.
Date of Appointment :	02.02.1990
Name :	Mrs. Pushpaben Suryakant Bhatia
Designation :	Director
Address :	17/323, Satyagrah Chhavni, Satellite, Ahmedabad – 380 015, Gujarat, India.
Date of Appointment :	02.02.1990
Name :	Mr. Yogesh Ratilal Shah
Designation :	Director
Address :	125, Tapovan Society, Near Manekbaug, Ambawadi, Ahmedabad – 380 015, Gujarat, India.
Date of Appointment :	02.02.1990
Name :	Mr. Sagar
Designation :	Director
Name :	Mrs. Kamini Y. Shah
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON (30.09.2010)

Names of Shareholders	No. of Shares
Shri Mohan Khemchand Assudani	2724
Smt. Pushpaben Bhatia	5448
Shri. Yogesh Ratilal Shah	5448
Ms. Sudha Assudani	2724
Total	16344

Equity Share Breakup (Percentage of Total Equity) As on 30.09.2011:-

Category	Percentage of Holding
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of EOT Crane.
Products :	Overhead Travelling Semi Portal Crane Wire Rope Hoist Crane Customized Crane Cage Hoists Flame Proof Hoists Travel Trolleys Hand Geared Trolleys Good Lift Chain Pulley Blocks Semi Goliath Material Handling Equipments
Products :	EOT Crane
Countries :	· Gulf · African Countries
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

· Bharat Bijlee Limited

Customers :

· Wholesalers

· Retailers

· Reliance Industries Limited

No. of Employees :

300 (approximately)

Bankers :

· Bank of India, Memnagar Road BR., 22-25 Sahjanand Arcade Building, Near Helmet Signal, 132 FT. Ring Road, Memnagar, Ahmedabad – 380 009, Gujarat, India.

Facilities:

CC: Rs.60.000 Millions

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
From Bank of India Memnagar and Vatva for working capital (secured by hypothecation created on all the current assets of the company and mortgage / charge on all the immovable assets of the company situated at GIDC Vatva - due within one year Rs. 3.930 millions Previous Year Rs. 0.745 millions)	3.930	0.745
From HDFC Bank (for Purchase of Motor Cars Secured by hypothecation of the respective Motor Cars)	2.684	0.000
Total	6.614	0.745

Banking Relations :

---

Auditors :

Name: 

S.K Chalishazar and Company

Chartered Accountants

Address :

Ahmedabad, Gujarat, India

Associates/Subsidiaries :

· Safex Electromech Private Limited

Address: Ahmedabad

Activity: Manufacturer and Exporter of Material Handling Equipments

· Safex Energy Private Limited

Address: Ahmedabad

Activity: Manufacturer and Exporter of Material Handling Equipments

· Safex Engineering Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
240000	Equity Shares	Rs.10/- Each	Rs.2.400 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
16344	Equity Shares	Rs.100/- Each	Rs.1.634 millions

 Note – Out of which 5,967 shares issued as fully paid bonus shares

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		1.634	1.634	1.634
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		31.059	25.007	20.675
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		32.693	26.641	22.309
LOAN FUNDS
1] Secured Loans		6.614	0.745	2.821
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		6.614	0.745	2.821
DEFERRED TAX LIABILITIES		0.000	0.127	0.161
TOTAL		39.307	27.513	25.291
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		26.129	23.657	16.748
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		4.000	4.000	4.000
DEFERREX TAX ASSETS		0.085	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	38.287	9.611	7.306
	Sundry Debtors	43.832	37.985	34.991
	Cash & Bank Balances	9.432	7.519	6.399
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	8.659	8.784	5.588
Total Current Assets		100.210	63.899	54.284
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	72.738	48.266	36.358
	Other Current Liabilities	15.589	13.760	11.229
	Provisions	2.790	2.017	2.154
Total Current Liabilities		91.117	64.043	49.741
Net Current Assets		9.093	(0.144)	4.543
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		39.307	27.513	25.291

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	221.452	160.102	160.170
		Other Income	5.437	4.707	4.679
		TOTAL (A)	226.889	164.809	164.849
Less	EXPENSES
		Manufacturing & Other Expenses	242.741	157.771	140.800
		Inventory Variation	(28.675)	(2.305)	15.437
		Fringe Benefit Tax		0.006	0.120
		TOTAL (B)	214.066	155.472	156.357
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		12.823	9.337	8.492
Less	FINANCIAL EXPENSES (D)		0.347	0.229	0.167
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.476	9.108	8.325
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.846	2.793	1.365
	PROFIT BEFORE TAX (E-F) (G)		8.630	6.315	6.960
Less	TAX (I)		2.579	1.983	2.229
	PROFIT AFTER TAX (G-I) (J)		6.051	4.332	4.731

Particulars	31.03.2012
Sales Turnover (Approximately)	300.000

Expected Sales (2012-2013) : Rs.450.000 Millions

The above information has been parted by Mr. Sagar - Director

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.66	2.62	2.86
Net Profit Margin (PBT/Sales)	(%)	3.89	3.94	4.34
Return on Total Assets (PBT/Total Assets}	(%)	6.83	7.21	9.79
Return on Investment (ROI) (PBT/Networth)		0.26	0.23	0.31
Debt Equity Ratio (Total Liability/Networth)		2.98	2.43	2.35
Current Ratio (Current Asset/Current Liability)		1.09	0.99	1.09

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	Yes
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)	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	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

Bankers Charges Report as per Registry

This form is for

Modification of charge

Charge identification number of the modified

90107591

Corporate identity number of the company

U29304GJ1990PTC013315

Name of the company

SAFEX EQUIPMENTS PRIVATE LIMITED

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

Plot No.517, GIDC Industrial, GIDC Industrial Estate, Phase IV, Vatva, Ahmedabad – 382 445, Gujarat, India.

Type of charge

· Immovable property

· Book debts

· Movable property (not being pledge)

· Floating charge

· Others

Particular of charge holder

Bank of India, memnagar Road BR., 22-25, Sahjanand Arcade Building, Near Helmet Signal, 132 FT. Ring Road, Memnagar, Ahmedabad – 380 009, Gujarat, India.

E-Mail: boimem@sancharnet.in

Nature of description of the instrument creating or modifying the charge

05.09.2008, No instrument was executed but equitable mortgage was extended by continuing the oral consent for continuing to hold the title deeds in respect of immovable properties of the company.

Date of instrument Creating the charge

05.09.2008

Amount secured by the charge

Rs. 20.000 Millions

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

Rate of interest

Minimum interest being at 14.75% p.a. or such other rate as may from time to time be fixed by the bank. Overdues to be charged interest at 2% over the RBI rate for the demand loan

Terms of repayment

On Demand

Margin

25% against Raw materials, Finished goods

25% against Stores

25% against goods in process

40% against book – debts out standing of 2 or 3 months

All the securities keep and maintain such margins of security in favour of bank.

Extent and operations of the charge

First charge by way Equitable Mortgage by way of deposit of title deeds on all immovable properties more particularly as mentioned in point no. 14 below as are or may at any time be in the possession or power of the company to secure inland guarantee facility of aggregating to Rs. 10.000 Millions with respective interest rates with quarterly rests or at such other rates as may be fixed by the bank and notified to the company form time to time with power to the bank to seize and realize.

Short particulars of the property charged

All the pieces of land with building sheds, and structure standing thereon situation at Plot no. 517, GIDC Industrial Estate, Phase IV, Vatwa, Ahmedabad-382445, Survey No. 335/P being the land admeasuring 3840 sq.mtrs with lease tenure of 99 years and all other structure, machinery and plant fastened to the earth and other fixtures and fittings erected or installed thereon (both present and future)

Date of latest modification prior to the present modification

25.04.2007

Particulars of the present modification

Name of the Facility	Existing Limits (Rs. In Millions)	Revised Limits (Rs. In Millions)
Inland Guarantee	10.000	12.500
CC- Hypothecation of stocks	1.700	7.500
CC- Hypothecation of book debts	0.800	5.000

FIXED ASSETS:

• Land
• Building
• Plant and Machinery
• Electric Installation
• Office Equipments
• Computers
• Furniture and Fixtures
• Motor Cars
• Cycles

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.55.70
UK Pound	1	Rs.87.54
Euro	1	Rs.68.85

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	6
--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		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.