MIRA INFORM REPORT

Report Date :

06.12.2012

IDENTIFICATION DETAILS

Name :	VASTUPAL BEARING RACES LIMITED
Registered Office :	504 Sarap Navjivan Press Laneashram, Road 14, Ahmedabad-380014, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	02.07.1993
Com. Reg. No.:	04-019761
Capital Investment / Paid-up Capital :	Rs. 10.756 millions
CIN No.: [Company Identification No.]	U29120GJ1993PTC019761
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Bearing Races.
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 135000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, 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 cautions.

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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.

LOCATIONS

Registered Office :	504 Sarap Navjivan Press Laneashram, Road 14, Ahmedabad-380014, Gujarat, India
Tel. No.:	91-79-27540529 / 4060 / 4003
Fax No.:	91-79-27543815
E-Mail :	pradip_vastupal@yahoo.com pradip@vastupal.com
Website :	www.vastupal.com
Factory:	404 GIDC, Bavla District, Ahmedabad, Gujarat, India

DIRECTORS

As on 30.09.2012

Name :

Mr. Prakashbhai Babulal Shah

Designation :

Director

Address :

A-8, Ratilal Park, Co. op Housing Society Limited, St. Xavier’s School Road, Narangpura, Ahmedabad, India

Date of Birth/Age :

21.01.1957

Date of Appointment :

01.04.1999

DIN No.:

01201220

Other Directorship:

	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U65910GJ1994PTC023552	VASTUPAL LEASING AND FINANCE PVT LTD	Director	11/11/1994	11/11/1994	-	Active	NO
2	U29120GJ1993PTC019761	VASTUPAL BEARING RACES LIMITED	Director	01/04/1999	01/04/1999	-	Active	NO
3	U51103GJ1994PTC023326	MUKTA INDUSTRIES PRIVATE LIMITED	Director	05/03/2009	05/03/2009	-	Active	NO

Name :

Mr. Naresh Babulal Shah

Designation :

Director

Address :

20, Sudarshan Society, Part – II, Near Naranpura Bus Stop, Ahmedabad-380013, Gujarat, India

Date of Birth/Age :

21.01.1957

Date of Appointment :

02.07.1999

DIN No.:

01212428

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U27109GJ1987PTC010021	VASTUPAL STEEL AND SPARE PVT LTD	Director	24/03/1991	24/03/1991	-	Active	NO
2	U65910GJ1994PTC023552	VASTUPAL LEASING AND FINANCE PVT LTD	Director	11/11/1994	11/11/1994	-	Active	NO
3	U29120GJ1993PTC019761	VASTUPAL BEARING RACES LIMITED	Director	02/07/1999	02/07/1999	-	Active	NO
4	U51103GJ1994PTC023326	MUKTA INDUSTRIES PRIVATE LIMITED	Director	01/09/2000	01/09/2000	-	Active	NO

Name :

Mr. Arvindkumar Babulal Shah

Designation :

Director

Address :

23, Sudarshan Society, Part II, Naranpura Bus Stop, Ahmedabad-360013, Gujarat, India

Date of Birth/Age :

26.07.1951

Date of Appointment :

02.07.1993

DIN No.:

01393415

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29120GJ1993PTC019761	VASTUPAL BEARING RACES LIMITED	Director	02/07/1993	02/07/1993	-	Active	NO
2	U27310RJ2005PTC020887	SUBHADRA RINGS PRIVATE LIMITED	Director	30/09/2009	08/06/2005	-	Active	NO

Name :

Mr. Pankaj Babulal Shah

Designation :

Director

Address :

20, Sudarshan Society, Part – II, Near Naranpura Bus Stop, Ahmedabad-380013, Gujarat, India

Date of Birth/Age :

08.09.1962

Date of Appointment :

01.10.1995

DIN No.:

01398034

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U65910GJ1994PTC023552	VASTUPAL LEASING AND FINANCE PVT LTD	Director	11/11/1994	11/11/1994	-	Active	NO
2	U29120GJ1993PTC019761	VASTUPAL BEARING RACES LIMITED	Director	01/10/1995	01/10/1995	-	Active	NO
3	U51103GJ1994PTC023326	MUKTA INDUSTRIES PRIVATE LIMITED	Director	01/09/2000	01/09/2000	-	Active	NO

Name :

Mr. Pradip Babulal Shah

Designation :

Director

Address :

20, Sudarshan Society, Part – II, Near Naranpura Bus Stop, Ahmedabad-380013, Gujarat, India

Date of Birth/Age :

22.10.1965

Date of Appointment :

02.07.1993

DIN No.:

01398037

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29120GJ1993PTC019761	VASTUPAL BEARING RACES LIMITED	Director	02/07/1993	02/07/1993	-	Active	NO
2	U65910GJ1994PTC023552	VASTUPAL LEASING AND FINANCE PVT LTD	Director	11/11/1994	11/11/1994	-	Active	NO
3	U51103GJ1994PTC023326	MUKTA INDUSTRIES PRIVATE LIMITED	Director	01/09/2000	01/09/2000	-	Active	NO
4	U72901GJ2006PTC048591	INFINITE INFOSYSTEMS PRIVATE LIMITED	Director	29/06/2006	29/06/2006	-	Active	NO
5	U29130GJ2012PTC071624	MUKTA SPECTRUM BEARINGS PRIVATE LIMITED	Director	21/08/2012	21/08/2012	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2012

Names of Shareholders	No. of Shares
Arvindkumars B. Shah	37200
Arvindkumar B. Shah (H.U.F.)	7500
Sonal A. Shah	38400
Jasmin Piyushbahi Shah	14500
Babulal A Shah (H.U.F.)	15000
Chetna P. Shah	7500
Dipa P. Shah	8700
Hemendra S. Shah	91000
Jitendra B. Shah	50000
Jaineta N. Shah	70200
Kusum M Shah	15000
Muktaben B, Shah	30000
Megh Hemendra Shah	3000
Naresh B. Shah	32200
Naresh B. Shah (H.U.F)	7500
Pankaj B. Shah^-	72000
Pradip B. Shah	90800
Pragna P. Shah	65700
Rahul N. Shah	15000
Nita A. Shah	34500
Piyush A. Shah	186500
Subhadra A Shah	7500
Prakash B. Shah	124000
Priyanka P. Shah	44400
Prakash B. Shah (H.U.F.)	7500
Total	1075600

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Bearing Races.

Products :

ITC CODE NO.	PRODUCT/ SERVICES DESCRIPTION
29131	Manufacturing of Bearing Races

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Union Bank of India

C. U. Shah Chambers, Near Gujarat Vidhyapith, Ashram Road, Ahmedabad - 380014, Gujarat, India

· Union Bank of India

Ashram Road Branch, C U Shah Chambers, Ashram Road, Ahmedabad - 380009, Gujarat, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Cash Credit from Bank – Union Bank of India (Working Capital loan from bank are secured by hypothecation of Stocks of Raw Materials, Finished goods, Work in Progress)	45.521	45.301
Total	45.521	45.301
Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Loan from Directors	3.323	4.042
Deposits	1.150	0.000
Loan from Inter corporates	4.299	4.234
Total	8.772	8.276

Banking Relations :	--
Auditors :
Name :	M.S. Chhajed and Company Chartered Accountants
Address :	F-6 Maharshi Complex, S.P. Colony, Naranpura, Ahmedabad-380014, Gujarat, India
PAN No.:	AAVFM7675C

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1075600	Equity Shares	Rs.10/- each	Rs. 10.756 Millions

Reconciliation of Share Capital

Particulars	31.03.2012
	Number	Amount in millions
Equity Shares (Face Value Rs. 10.00)	1075600	10.756
Shares Outstanding during the year	0	0.000
Shares Issued during the year	0	0.000
Shares outstanding at the end of the year	1075600	10.756

Shareholders holding more than 5% of Share

Particulars	31.03.2012
	Number	% of Holding
Hemendra B. Shah	79500	7.39
Jaineta N. Shah	70200	6.53
Pankaj B. Shah	64600	6.01
Pradip B. Shah	76500	7.11
Pragna P. Shah	65700	6.11
Shruti P. Shah	72300	6.72
Piyush A. Shah	186500	17.34

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		10.756	10.756	10.756
2] Share Application Money		0.450	0.450	0.000
3] Reserves & Surplus		22.646	21.793	21.206
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		33.852	32.999	31.962
LOAN FUNDS
1] Secured Loans		45.521	45.301	46.044
2] Unsecured Loans		8.772	8.276	12.931
TOTAL BORROWING		54.293	53.577	58.975
DEFERRED TAX LIABILITIES		3.556	3.657	3.573
TOTAL		91.701	90.233	94.510
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		21.817	23.596	25.397
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	21.856	19.132	17.033
	Sundry Debtors	49.311	64.019	73.600
	Cash & Bank Balances	3.737	4.030	3.906
	Other Current Assets	0.000	0.000	5.465
	Loans & Advances	21.645	12.813	6.842
Total Current Assets		96.549	99.994	106.846
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	24.878	32.507	36.457
	Other Current Liabilities	1.299	0.389	1.176
	Provisions	0.488	0.461	0.100
Total Current Liabilities		26.665	33.357	37.733
Net Current Assets		69.884	66.637	69.113
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		91.701	90.233	94.510

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	226.407	192.857	211.593
		Other Income	0.538		NA
		TOTAL (A)	226.945	192.857	NA
Less	EXPENSES
		Office Expenses	223.913	190.024	NA
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	223.913	190.024	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.032	2.833	2.129
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.802	1.802	1.924
	PROFIT BEFORE TAX (E-F) (G)		1.220	1.031	0.205
Less	TAX (H)		0.367	0.444	0.992
	PROFIT AFTER TAX (G-H) (I)		0.853	0.587	0.787
Less	Prior Year Adjustment of deferred tax liability		0.000	0.000	2.046
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		15.807	15.221	16.480
	BALANCE CARRIED TO THE B/S		16.660	15.807	15.221
	Earnings Per Share (Rs.)		0.79	0.55	0.73

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.38	0.30	NA
Net Profit Margin (PBT/Sales)	(%)	0.54	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	1.03	0.83	0.16
Return on Investment (ROI) (PBT/Net worth)		0.32	0.03	0.01
Debt Equity Ratio (Total Liability/Net worth)		2.39	2.63	3.03
Current Ratio (Current Asset/Current Liability)		3.62	3.00	2.83

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	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 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	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	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

FIXED ASSETS:

· Land

· Office Building

· Factory Building and Shed

· Plant and Machinery

· Electrification

· Furniture and Dead Stock

· Others (Computer)

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.54.56
UK Pound	1	Rs.87.89
Euro	1	Rs.71.52

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

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