MIRA INFORM REPORT

Report Date :

27.12.2012

IDENTIFICATION DETAILS

Name :	BIRKAN ENGINEERING INDUSTRIES PRIVATE LIMITED
Registered Office :	E-2B madhu Vihar, Patparganj, New Delhi – 110092, Delhi
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	11.11.1988
Com. Reg. No.:	55-033864
Capital Investment / Paid-up Capital :	Rs. 9.761 Millions
CIN No.: [Company Identification No.]	U74899DL1988PTC033864
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of all types of Glasses
No. of Employees :	150 ( Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 90000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. 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

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.

INFORMATION PARTED BY

Name :	Mr. Robin Mukesh
Designation :	Chief Executive Officer
Contact No.:	91-9999258328
Date :	18.12.2012

LOCATIONS

Registered Office :	E-2B madhu Vihar, Patparganj, New Delhi – 110092, Delhi, India
Tel. No.:	Not Available
Mobile No.:	91-9999258328 (Mr. Robin Mukesh)
Fax No.:	Not Available
E-Mail :	birkanengg@hotmail.com robinmukesh@birkanengg.com
Website :	www.birkanengg.com
Location :	Owned
Factory :	S-6 and S-4, Site – IV, Sahibabad Industrial Area, Ghaziabad – 201010, Uttar Pradesh, India
Tel. No.:	91-120-4225901/ 10
Fax No.:	91-120-4225907

DIRECTORS

As on: 29.09.2012

Name :

Ms. Geeta Gupta

Designation :

Director

Address :

77 Hig Duplex, Chander Nagar, Ghaziabad – 201012, Uttar Pradesh, India

Date of Birth/Age :

31.07.1961

Date of Appointment :

26.06.2000

DIN No.:

01579261

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	U74899DL1994PTC058628	RELIABLE POLY COMPOUNDS PRIVATE LIMITED	Director	27-04-94	27-04-94	-	Active	NO
2	U74899DL1988PTC033864	BIRKAN ENGINEERING INDUSTRIES PRIVATE LIMITED	Director	26-06-00	26-06-00	-	Active	NO
3	U18201DL2003PTC118505	AADYAA EMBROIDERY PRIVATE LIMITED	Director	25-05-03	25-05-03	-	Active	YES

Name :

Mr. Mukesh Kumar Gupta

Designation :

Additional Director

Address :

77 Hig Duplex, Chander Nagar, Ghaziabad – 201012, Uttar Pradesh, India

Date of Birth/Age :

11.05.1958

Date of Appointment :

26.06.2000

DIN No.:

01720932

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	U74899DL1994PTC058628	RELIABLE POLY COMPOUNDS PRIVATE LIMITED	Director	27-04-94	27-04-94	02-05-11	Active	NO
2	U74899DL1988PTC033864	BIRKAN ENGINEERING INDUSTRIES PRIVATE LIMITED	Additional director	26-06-00	26-06-00	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Robin Mukesh
Designation :	Chief Executive Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Mukesh Gupta	27150
Geeta Gupta	6100
Kapil Mehta	600
Anil Gupta	6754
Shailendra Gupta	4800
Ajay Goyal	600
Chanderkanta	150
R. K. Gupta	4970
R. P. C. L	5581
Upanshu Singhal	371
Annu Goyal	150
Ashwani Kumar	360
Neeraj Singhal	499
Pushpa Govil	760
Seema Singhal	950
Geeta Melhotra	800
Sushil Kumar Singh	1750
A. K. Singhal	1320
Atul Gupta	2000
Kumar Pal Singh	1220
Kishan Pal Singh	1200
Robin Mukesh	4200
S. P. Singh	5500
S. K. Gupta	5218
Kapil Singhal	3105
S. K. Tyagi	3000
Varun Chaudhary	1000
Anubhav Footwear Private Limited	3000
Ratan Polymers Private Limited	3000
Arjun Maheshwari	1500
Total	97608

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of all types of Glasses
Imports :
Products :	Raw Materials
Countries :	· China · USA · Europe
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

Seint Gobain, Ankleshwar, Gujarat, India

Customers :

End Users

· Schindler India Private Limited

No. of Employees :

150 ( Approximately)

Bankers :

· Canara Bank, Vivek Vihar, Delhi – 110095, India

· Citi Bank

· HDFC Bank

· IDBI Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Canara Bank OCC Account	14.317	9.561
Canara Bank Term Loan Lind_1300773003234	1.365	0.000
Canara Bank Term Loan	8.634	10.967
Canara Bank Car Loan (Swift)	0.086	0.201
Citi Bank Against Property	0.548	0.610
HDFC Car Loan Jeta	1.027	1.252
HDFC Car Loan Wagon R	0.280	0.332
Total	26.257	22.923
Unsecured Loan	As on 31.03.2012	As on 31.03.2011
City Bank	0.011	0.253
Total	0.011	0.253

Banking Relations :	--
Auditors :
Name :	Prakash and Santosh Chartered Accountants
Address :	210, M.J. Shopping Centre 3, Veer Savarkar Block, Shakarpur, Delhi – 110092, India
PAN No.:	AABFP0422C
Sister Concern :	Rely Private Limited Address: E-2B madhu Vihar, Patparganj, New Delhi – 110092, Delhi, India

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs.100/- each	Rs. 15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
97608	Equity Shares	Rs.100/- each	Rs. 9.761 Millions

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		9.761	8.501	8.501
2] Share Application Money		0.800	5.668	0.000
3] Reserves & Surplus		13.833	1.309	0.723
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		24.394	15.478	9.224
LOAN FUNDS
1] Secured Loans		26.257	22.923	19.615
2] Unsecured Loans		0.011	0.253	0.529
TOTAL BORROWING		26.268	23.176	20.144
DEFERRED TAX LIABILITIES		1.261	0.866	0.607
TOTAL		51.923	39.520	29.975
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		27.774	19.732	19.205
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.277
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	17.165	12.414	8.715
	Sundry Debtors	15.269	13.713	6.424
	Cash & Bank Balances	0.384	0.431	0.012
	Other Current Assets	3.720	2.827	1.614
	Loans & Advances	3.387	2.217	3.568
Total Current Assets		39.925	31.602	20.333
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	15.064	8.883	7.854
	Other Current Liabilities	0.541	2.906	2.010
	Provisions	0.171	0.025	0.000
Total Current Liabilities		15.776	11.814	9.864
Net Current Assets		24.149	19.788	10.469
MISCELLANEOUS EXPENSES		0.000	0.000	0.024
TOTAL		51.923	39.520	29.975

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	80.000 (Approximately)	55.736	26.649
		Other Income	NA	2.602	0.418
		TOTAL (A)	NA	58.338	27.067
Less	EXPENSES
		Coast of Raw Materials Consumed		40.968	17.504
		Administrative and Selling Expenses		8.514	4.123
		Trading and Manufacturing Expenses		6.255	4.571
		Preliminary Expenses		0.015	0.008
		TOTAL (B)	NA	55.752	26.206
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		NA	2.586	0.861
Less/ Add	DEPRECIATION/ AMORTISATION (F)		NA	1.542	0.556
	PROFIT BEFORE TAX (E-F) (G)		1.388	1.044	0.305
Less	TAX (H)		0.395	0.458	0.291
	PROFIT AFTER TAX (G-H) (I)		0.993	0.586	0.014
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.309	0.723	0.709
	BALANCE CARRIED TO THE B/S		2.302	1.309	0.723
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	2.029	0.000	0.000
	TOTAL EARNINGS		2.029	0.000	0.000
	IMPORTS
		Raw Materials	2.821	0.000	0.000
	TOTAL IMPORTS		2.821	0.000	0.000
	Earnings Per Share (Rs.)		10.17	6.90	0.02

Expected Sales (2012-2013): Rs. 120.000 Millions

The above information has been parted by Mr. Robin Mukesh

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	1.01	0.05
Net Profit Margin (PBT/Sales)	(%)	NA	1.87	1.15
Return on Total Assets (PBT/Total Assets}	(%)	2.05	2.03	0.77
Return on Investment (ROI) (PBT/Networth)		0.06	0.07	0.03
Debt Equity Ratio (Total Liability/Networth)		1.72	2.26	3.25
Current Ratio (Current Asset/Current Liability)		2.53	2.67	2.06

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	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]	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

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U74899DL1988PTC033864
Name of the company	BIRKAN ENGINEERING INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	E-2bmadhu Vihar, Patparganj, New Delhi – 110092, Delhi, India birkanengg@hotmail.com
This form is for	Creation of charge
Type of charge	· Immovable property · Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	Canara Bank, Vivek Vihar, Delhi – 110095, India
Nature of instrument creating charge	Supplemental Common Hypothecation Agreement dated 02.05.2012 and Letter evidencing extension of equitable mortgage alongwith Schedule A and B dated 02.05.2012
Date of instrument Creating the charge	02.05.2012
Amount secured by the charge	Rs. 3.500 Millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of interest As would prevail at the time of arising any liability under the limit. Terms of repayment Payable on demand. Margin 25% Extent and operation of the charge 100% Others To secure all amounts payable under FLC limit of Rs. 3.500 Millions granted to the Company.
Short particulars of the property or assets charged (including complete address and location of the property)	Hypothecation of the following:- I. a)The whole of the borrower's present and future stock of raw-materials of glasses, finished goods, work-in-progress, goods in process or manufacture and all II. finished and manufactured goods and articles such as raw-materials together with all stores, components and spares which now belong to or may hereafter from time to time, during the continuance of III. this security belong to the borrower and which are or shall or may be brought into, stored or be in or upon or about the borrower's factory godowns and/or other premises at S-6, Inustrial Area, Site-IV, IV. Sahibabad or whereverelse the same may be. V. b)All the borrower's present and future book-debts, outstandings, money receivables, claims, bills, rights to or in moveable properties and moveable assets and which are now due, owing or payable or VI. belonging to the borrower or which may at any time hereafter during the continuance of this security become due, owing, payable or belonging to the borrower in the course of its business. VII. c)All plant and machinery, motor vehicles, tools and accessories and other fixed assets of the Company - both present and future VIII. ii) Equitable mortgage of immovable properties of the Company situated at Plot No. 4, Site No. 4, Sahibabad Industrial Area, Ghaziabad (UP).

OPERATION

The company has performed better than earlier year, but board feels much more funds required for the growth of the company hence board has decided not to pay dividend.

TRADE REFERENCES

· Seint Gobain, Ankleshwar, Gujarat, India

· Schindler India Private Limited, Mumbai, Maharashtra, India

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Computer and Accessories

· Office Equipment

· Lab Equipment

· Vehicles

· Video Camera

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 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. 54.96
UK Pound	1	Rs. 88.68
Euro	1	Rs. 72.45

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		44

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.