MIRA INFORM REPORT

Report Date :

11.02.2012

IDENTIFICATION DETAILS

Name :	SHANKARA MACHINE TOOLS PRIVATE LIMITED
Registered Office :	A-1/260, Paschim Vihar, New Delhi-110063
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.08.1961
Com. Reg. No.:	55-003523
Capital Investment / Paid-up Capital :	Rs. 0.478 Million
CIN No.: [Company Identification No.]	U74899DL1961PTC003523
TAN No.: [Tax Deduction & Collection Account No.]	DELS21422C
PAN No.: [Permanent Account No.]	AAACS8550L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Seller of Blowers and Mis Casting
No. of Employees :	25 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 6000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an old and relatively small 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 for small 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

INFORMATION PARTED BY

Name :	Mr. Sandeep Sarin
Designation :	Proprietor of sister concern
Contact No.:	91-9811229552
Date :	07.02.2012

LOCATIONS

Registered Office :	A-1/260, Paschim Vihar, New Delhi-110063, India
Tel. No.:	91-11-25286140
Mobile No.:	91-9811229552 (Mr. Sandeep Sarin)
Fax No.:	Not Available
E-Mail :	shankaramt@yahoo.co.in aiyarco@eth.net
Location :	Owned
Factory :	27-A, MIE, Bahadurgarh, Haryana, India

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Anil Kumar Sarin
Designation :	Director
Address :	A-1/260, Paschim Vihar, New Delhi-110063, India
Date of Birth/Age :	06.10.1964
Date of Appointment :	01.04.2005
DIN No.:	01144741
Name :	Mr. Rajesh Kumar Sarin
Designation :	Director
Address :	A-1/260, Paschim Vihar, New Delhi-110063, India
Date of Birth/Age :	28.11.1955
Date of Appointment :	14.01.1985
DIN No.:	01144805

KEY EXECUTIVES

Name :	Mr. Sandeep Sarin
Designation :	Proprietor of sister concern

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
M.S. Sarin	700
P.K. Sarin	250
S.C. Sarin	250
S.K. Sarin	350
R.K. Sarin	360
Sudarshan Sarin	100
Jyoti Rani	50
Kanta Rani	50
Usha Rani	50
Veena Sarin	50
Sudesh Kumar Sarin	120
Ashwani Kumar	150
Savita Jolly	100
Kavita Kundra	100
R. K. Sarin	430
Madhu Sarin	520
Ashwani Kumar Sarin	450
Anil Kumar Sarin	350
Sandeep Sarin	200
Rubina Sarin	50
Sonali Sarin	50
Narmata Sarin	50
Total	4780

AS ON 30.09.2011

Equity Shares Break Up	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Seller of Blowers and Mis Casting

Products :

ITC CODE	PRODUCTS
8414.40	Air Compressor
7325.10	C. I. Casting
8423.90	Weighbridge Spares and Weighing Spares.

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Actual Production
C. I. Casting	Kgs.	190521.15
Twin Lobe Compressor	Kgs.	44269.62
Parts of Compressor	Kgs.	7603.00

GENERAL INFORMATION

Suppliers :

· Anand Trading Company

Customers :

Wholesalers and Retailers

No. of Employees :

25 (Approximately)

Bankers :

State Bank of India, Paschim Vihar Branch

Facilities :

State Bank of India Cash Credit Limit Rs. 0.930 Million.
Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Cash credit facility against stocks and Book Debts	0.000	1.086
Cash credit against stocks	0.912	0.000
Cash credit against book debts	0.028	0.000
(Against hypothecation of finished stock, semi- finished stock, raw material, book debt, and collateral security of factory land and building and personal guarantee of the directors).
Total	0.940	1.086
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Other Loans and Advances	0.479	0.652
Total	0.479	0.652

Banking Relations :	--
Auditors :
Name :	Aiyar and Company Chartered Accountant
Address :	607, Akashdeep Building, 26-A, New Delhi-110001, India
Tel. No.:	91-22-23313807 / 23316117 / 23316125
Fax No.:	91-22-23310281
E-Mail :	info@aiyarco.com
Pan No.:	AAAFA0301Q
Sister Concern :	Water Steed (Proprietory – Mr. Sandeep Sarin)

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000	Equity Shares	Rs.100/- each	Rs. 0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4780	Equity Shares	Rs.100/- each	Rs. 0.478 Million

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		0.478	0.478	0.478
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1.080	0.772	0.692
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1.558	1.250	1.170
LOAN FUNDS
1] Secured Loans		0.940	1.086	0.991
2] Unsecured Loans		0.479	0.652	0.052
TOTAL BORROWING		1.419	1.738	1.043
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2.977	2.988	2.213
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.544	0.642	0.675
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.275	0.248	0.273
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2.881	2.854	2.445
	Sundry Debtors	2.978	3.554	3.064
	Cash & Bank Balances	0.292	0.831	0.138
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.094	0.105	0.100
Total Current Assets		6.245	7.344	5.747
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2.749	3.843	3.191
	Other Current Liabilities	0.468	0.561	0.509
	Provisions	0.870	0.842	0.782
Total Current Liabilities		4.087	5.246	4.482
Net Current Assets		2.158	2.098	1.265
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2.977	2.988	2.213

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	14.915	13.320	15.326
		Other Income	0.175	0.090	0.081
		TOTAL	15.090	13.410	15.407
Less	EXPENSES
		Office Expenses	14.579	13.093	15.005
		Administrative Expenses
		Advertising Expenses
		TOTAL	14.579	13.093	15.005
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		0.511	0.317	0.402
Less/ Add	DEPRECIATION/ AMORTISATION		0.114	0.132	0.164
	PROFIT BEFORE TAX		0.397	0.185	0.238
Less	TAX		0.89	0.105	0.112
	PROFIT AFTER TAX		0.308	0.080	0.126
	BALANCE CARRIED TO THE B/S		0.308	0.080	0.126
	Earnings Per Share (Rs.)		64.46	16.82	26.45

Expected Sales (2011-2012) : Rs. 17.500 Millions.

The above information has been parted by Mr. Sandeep Sarin.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.04	0.60	0.82
Net Profit Margin (PBT/Sales)	(%)	2.66	1.39	1.55
Return on Total Assets (PBT/Total Assets}	(%)	5.62	2.25	3.55
Return on Investment (ROI) (PBT/Networth)		0.25	0.148	0.20
Debt Equity Ratio (Total Liability/Networth)		3.53	5.59	4.72
Current Ratio (Current Asset/Current Liability)		1.53	1.40	1.28

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. Constructions of the firm	Yes
4. Premises details	Yes
5. Type of Business	Yes
6. Line of Business	Yes
7. Promoter’s background	-------
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	No
13. Reasons for variation <> 20%	No
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	No
19. Payments terms	Yes
20. Export / Import details	No
21. Market information	------
22. Litigations that the firm / promoter involved	------
23. Banking Details	Yes
24. Banking facility details	Yes
25. Conduct of the banking account	------
26. Buyer visit details	------
27. Financials, if provided	No
28. Incorporation details, if applicable	------
29. Last accounts filed at ROC	------
30. Major Shareholders, if available	------

CORPORATE ACTIVITIES AND RESULTS

The company’s turnover (Net of excise duty) for the year amounted to Rs. 14.915 Millions as compared to Rs. 13.320 Millions in the previous year. During the year company earned a net profit of Rs. 0.397 Million after providing depreciation of Rs.0.114 Million as against the net Profit of Rs. 0.185 Million after providing depreciation of Rs. 0.132 Million during the previous year.

TRADE REFRENCES

· Anand Trading Company

FIXED ASSETS

· Land

· Machinery

· Building

· Furniture and Fixtures

· Pattern

· Typewriter

· Moulding Boxes and Jigs

· Cycle

· Generator Sets

· Calculator

· Scooter

· Desert Cooler

· Air Conditioner

· Office Equipments

· Chain Pulley

· Computer

· Fax Machine

· Cellular Phone

· Motor Car

· Transformer

· Welding Set

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. 49.28
UK Pound	1	Rs. 78.09
Euro	1	Rs. 65.58

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		43

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.