MIRA INFORM REPORT

Report Date :

17.08.2012

IDENTIFICATION DETAILS

Name :	STAY SHARP DIAMOND TOOLS PRIVATE LIMITED
Registered Office :	Karamchand Mansion, Barrack Road, Behind Metro Cinema, Mumbai – 400 020, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	15.03.1983
Com. Reg. No.:	11-029541
Capital Investment / Paid-up Capital :	Rs.9.600 millions
CIN No.: [Company Identification No.]	U29220MH1983PTC029541
TAN No.: [Tax Deduction & Collection Account No.]	MUMS37970C
PAN No.: [Permanent Account No.]	AAAC59975P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Stone Cutting Tools.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 752000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Financially company is doing well. 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.

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 (GENERAL DETAILS)

Name :	Ms. Dipti
Designation :	Accounts Executive
Contact No.:	91-22-26861648
Date :	16.08.2012

LOCATIONS

Registered Office :	Karamchand Mansion, Barrack Road, Behind Metro Cinema, Mumbai – 400 020, Maharashtra, India
Tel. No.:	91-22-22007995/ 26861648
Fax No.:	Not Available
E-Mail :	agarwalkala@gmail.com ssdtaccounts@yahoo.co.in info@staysharp.com
Website :	http://www.staysharp.com
Location :	Owned
Factory :	A-10, Laghu Udyog Kendra, I.B. Patel Road, Goregaon (East), Mumbai – 400 063, Maharashtra, India
Tel. No.:	91-22-26855840/41
Fax No.:	91-22-26859845

DIRECTORS

As on 19.09.2011

Name :	Mr. Sudhir Banarsilal Tulsyan
Designation :	Managing Director
Address :	8^th Floor, Landmark Building, Friends CHS Limited, N.S. Road No.5, JVPD Scheme, Vile Parle (West), Mumbai – 400 056, Maharashtra, India
Date of Birth/Age :	26.08.1949
Date of Appointment :	15.03.1983
DIN No.:	00085422
Name :	Mr. Swapan Manilal Shah
Designation :	Director
Address :	132, Ritu Apartments, 1/113, Doongersey Road, Mumbai - 400 006, Maharashtra, India
Date of Birth/Age :	13.01.1948
Date of Appointment :	15.03.1983
DIN No.:	00085551

KEY EXECUTIVES

Name :	Ms. Dipti
Designation :	Accounts Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 19.09.2011

Names of Shareholders	No. of Shares
Sudhir Banarasilal Tulsyan	17280
Usha Sudhir Tulsyan	5760
Anurag Sudhir Tulsyan	5760
Banarasilal Hanumandas (HUF)	3600
Sudhir Banarasilal Tulsyan (HUF)	3600
Manilal L. Shah	10
Manilal L. Shah (HUF)	10
Manilal Shah (HUF) Small	10
Swapan M. Shah	6760
Aamy S. Shah	6760
Aman Swapan Shah Trust	10
Aman S. Shah	4500
Gaurang M. Shah	9010
Sonal G. Shah	9010
Indian Marble Industries, India	10
M.L. Shah and Company, India	10
S.M. Shah (HUF)	10
SPM Designers Private Limited, India	11890
Suditul Trading and Investments Company Limited, India	12000
Total	96000

As on 19.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	32.44
Directors or relatives of directors	67.56
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Stone Cutting Tools.

Products :

Item Code No. (ITC Code)	820220
Product Description	Circular Saw Blades
Item Code No. (ITC Code)	820239
Product Description	Segments

Exports :

Products :

Stone Cutting Tools

Countries :

Dubai

Imports :

Products :

Raw Materials

Countries :

China

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Licensed Capacity	Installed Capacity (Nos.)	Actual Production (Nos.)
(i) Diamond Wheels	Not Applicable	5,000	2,097
(ii) Diamond Segments	Not Applicable	4,00,000	2,96,336

Note:

Licensed and Installed Capacities are as certified by a Director of the Company on which the Auditors have relied.

GENERAL INFORMATION

Customers :	Wholesalers and Retailers
No. of Employees :	50 (Approximately)
Bankers :	Axis Bank Limited

Banking Relations :	--
Auditors :
Name :	I.O. Dharia and Company Chartered Accountants
Address :	3-B, 1^st Floor, Ismail Building, 381, Dr. D.N. Road, Fort, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91-22-22874544/ 22817791
Fax No.:	91-22-66315926
E-Mail :	iodharia@vsnl.com iodharia@gmail.com
Income-tax PAN of auditor or auditor's firm :	AAAFI0684E
Associates/ Subsidiaries :	v Shatul Engineering Industries v Diamond Tool Industry
Related Parties :	v M.L. Shah and Company v Shatul Commercial Company Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
96000	Equity Shares	Rs.100/- each	Rs.9.600 millions

(Of the above Shares, 12000 Equity Shares of Rs.100/- each have been allotted as fully paid-up Bonus Shares by capitalization of General Reserve)

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		9.600	9.600	9.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		178.402	161.636	160.628
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		188.002	171.236	170.228
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.318	0.394
TOTAL		188.002	171.554	170.622
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.721	6.953	7.938
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		152.932	138.359	137.388
DEFERRED TAX ASSETS		0.269	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.396	4.848	6.777
	Sundry Debtors	19.012	18.080	18.204
	Cash & Bank Balances	2.491	4.061	0.994
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	5.996	2.604	2.664
Total Current Assets		32.895	29.593	28.639
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.648	3.182	3.165
	Other Current Liabilities	0.167	0.169	0.178
	Provisions	0.000	0.000	0.000
Total Current Liabilities		4.815	3.351	3.343
Net Current Assets		28.080	26.242	25.296
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		188.002	171.554	170.622

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	38.277	31.628	35.591
		Other Income	15.962
		TOTAL	54.239	31.628	35.591
Less	EXPENSES
		Office Expenses	33.329	29.332	34.959
		Administrative Expenses
		Advertising Expenses
		TOTAL	33.329	29.332	34.959
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		20.910	2.296	0.632
Less/ Add	DEPRECIATION/ AMORTISATION		0.916	1.086	1.316
	PROFIT/ (LOSS) BEFORE TAX		19.994	1.210	(0.684)
Less	TAX		3.213	0.070	0.826
	PROFIT/ (LOSS) AFTER TAX		16.781	1.140	(1.510)
Add/ Less	Adjustment of Tax for earlier year		(0.015)	(0.133)	0.045
Add/ Less	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		55.446	54.439	55.904
	BALANCE CARRIED TO THE B/S		72.212	55.446	54.439
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods calculated on F.O.B. basis	0.002	0.138	NA
	TOTAL EARNINGS		0.002	0.138	NA
	IMPORTS
		Raw Materials	3.360	2.322	5.680
		Capital Goods	0.332	0.000	0.000
	TOTAL IMPORTS		3.692	2.322	5.680
	Earnings/ (Loss) Per Share (Rs.)		174.65	10.49	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	30.94	3.60	(4.24)
Net Profit Margin (PBT/Sales)	(%)	52.24	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	50.47	3.31	(1.87)
Return on Investment (ROI) (PBT/Networth)		0.11	0.01	0.00
Debt Equity Ratio (Total Liability/Networth)		0.03	0.02	0.02
Current Ratio (Current Asset/Current Liability)		6.83	8.83	8.57

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditors	4.648	3.182	3.165

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	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	No
18) Major customers	No
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	No
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) Date of Birth of Proprietor/Partner/Director, if available	Yes
32) PAN 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

OPERATIONS:

During the year, Company has incurred a Profit of Rs.16.781 millions. With the view to conserve the resources, the director’s do not propose any dividend. The turnover for the same is Rs.38.277 millions.

CONTINGENT LIABILITY:

Particulars	31.03.2011 (Rs. in millions)
Disputed Income-Tax Liability	0.207

FIXED ASSETS:

v Factory Buildings

v Office Buildings

v Plant and Machinery

v Electrical Installations

v Furniture, Fixtures and Equipments

v Vehicles

v Computers

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.55.99
UK Pound	1	Rs.87.55
Euro	1	Rs.68.68

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		49

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.