MIRA INFORM REPORT

Report Date :

14.02.2012

IDENTIFICATION DETAILS

Name :	SHARP KNIFE COMPANY PRIVATE LIMITED
Registered Office :	C-13, NICE Area, MIDC Satpur, Nashik – 422007, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	16.05.1989
Com. Reg. No.:	11-051752
Capital Investment / Paid-up Capital :	Rs.2.500 Millions
CIN No.: [Company Identification No.]	U29309MH1989PTC051752
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Control Panels on CNC Turret Punch.
No. of Employees :	80 (Approximately) (Office - 40 and Factory - 40)

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 43000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. 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.

INFORMATION PARTED BY

Name :	Mr. Pawar
Designation :	Accountant
Contact No.:	91-253-2353399
Date :	13.02.2012

LOCATIONS

Registered Office/ Factory :	C-13, NICE Area, MIDC Satpur, Nashik – 422007, Maharashtra, India
Tel. No.:	91-253-2353399/ 6610499/ 6610399/ 6601575
Mobile No.:	91-9421564299 - Mr. Hemant Chavan
Fax No.:	Not Available
E-Mail :	trambak.nahire@sharpknife.in suranaaj@yahoo.co.in
Website :	http://www.sharpknife.in
Location :	Owned

DIRECTORS

(AS ON 30.09.2011)

Name :	Mr. Hemant Govind Chavan
Designation :	Director
Address :	G S Villa, Satpur, Nashik – 422007, Maharashtra, India
Date of Appointment :	23.11.2005
DIN No.:	00805455
Name :	Mr. Rupesh Govind Chavan
Designation :	Director
Address :	G S Villa, Satpur, Nashik – 422009, Maharashtra, India
Date of Birth/Age :	01.08.1963
Date of Appointment :	23.11.2005
DIN No.:	00805452
Name :	Mr. Govind Totaram Chavan
Designation :	Director
Address :	G S Villa, Satpur, Nashik – 422007, Maharashtra, India
Date of Appointment :	23.11.2005
DIN No.:	00805325

KEY EXECUTIVES

Name :	Mr. Pawar
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Hemant Govind Chavan	8000
Rupesh Govind Chavan	5500
Govind Totaram Chavan	9500
G T Chavan	2000
Total	25000

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	80 (Approximately) (Office - 40 and Factory - 40)
Terms :
Selling :	Cash and Credit (30 days)
Purchasing :	Cash and Credit (30 days)

GENERAL INFORMATION

Customers :

OEM’s and Manufacturer

No. of Employees :

80 (Approximately)

Bankers :

· The Thane Janata Sahakari Bank Limited

Sharanpur Road Branch, Nashik – 422002, Maharashtra, India

· Union Bank of India

· The Shamrao Vitthal Co-operative Bank Limited

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
The Thane Janata Term Loan A/c – 181 (Hypothecation against Machinery)	3.142	--
The Thane Janta Term Loan A/c – 199 (Hypothecation against Machinery)	4.918	--
The Thane Janata Term Loan A/c – 116 (Hypothecation against Land and Building)	33.833	--
The Thane Janata Term Loan A/c –129 (Hypothecation against Land and Building)	9.316	--
The Thane Janata Term Loan A/c –176 (Hypothecation against Machinery)	5.569	6.586
The Thane Janata CC A/c – 170 (Hypothecation against Stock and Debtors)	30.052	14.306
Total	86.830	20.892
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Abhishek Rokade	0.300	0.300
G. S. Engg. (G. T. Chavan HUF)	0.940	0.940
G. T. Chavan Loan A/c	3.028	0.950
Hemant G. Chavan Loan A/c	3.077	2.877
Rupesh G. Chavan Loan A/c	3.217	1.168
Jayashree Belgavakar	0.300	0.300
Rameshwar D. Rokade	0.300	0.300
Rekha R. Rokade	0.300	0.300
Sarika Belgavakar	0.300	0.300
Pooja Chavan Loan A/c	1.570	0.150
Total	13.331	7.585

Banking Relations :	--
Auditors :
Name :	Krishnamurthy Jain and Suryawanshi Chartered Accountant
Address :	307, Sarda Sankul, M G Road, Nashik – 422001, Maharashtra, India
PAN No.:	ADGPC0155M

CAPITAL STRUCTURE

(AS ON 30.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	Equity Share	Rs.100/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
25000	Equity Share	Rs.100/- each	Rs.2.500 Millions

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		2.500	2.500	2.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		8.260	6.972	1.706
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		10.760	9.472	4.206
LOAN FUNDS
1] Secured Loans		86.830	20.892	13.903
2] Unsecured Loans		13.331	7.585	1.877
TOTAL BORROWING		100.161	28.477	15.780
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		110.921	37.949	19.986
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		108.044	13.714	8.419
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.411
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	22.065	15.339	11.817
	Sundry Debtors	17.328	12.760	20.826
	Cash & Bank Balances	7.773	1.179	0.259
	Other Current Assets	4.166	0.774	0.374
	Loans & Advances	0.275	8.949	0.429
Total Current Assets		51.607	39.001	33.705
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	24.689	12.386	19.312
	Other Current Liabilities	3.150	2.956	3.237
	Provisions	21.322	0.000	0.000
Total Current Liabilities		49.161	15.342	22.549
Net Current Assets		2.446	23.659	11.156
MISCELLANEOUS EXPENSES		0.431	0.576	0.000
TOTAL		110.921	37.949	19.986

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		TOTAL	103.608	71.603	70.349
Less	EXPENSES
		TOTAL	94.821	67.911	67.784
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		8.787	3.692	2.565
Less/ Add	DEPRECIATION/ AMORTISATION		2.195	1.986	1.389
	PROFIT BEFORE TAX		6.592	1.706	1.176
Less	TAX		1.222	(0.039)	0.000
	PROFIT AFTER TAX		5.370	1.745	1.176
	IMPORTS VALUE		25.448	NIL	NIL
	Earnings Per Share (Rs.)		214.8	--	--

Expected Sales (2011-12): Rs.190.000 Millions

The above information has been parted by Mr. Pawar.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.18	2.44	1.67
Return on Total Assets (PBT/Total Assets}	(%)	4.13	3.24	2.79
Return on Investment (ROI) (PBT/Networth)		0.61	0.18	0.28
Debt Equity Ratio (Total Liability/Networth)		13.88	4.63	9.11
Current Ratio (Current Asset/Current Liability)		1.05	2.54	1.49

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Sundry Creditors	24.689	12.386	19.312
Total	24.689	12.386	19.312

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	-----
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last two years	Yes
Profitability for last three years	No
Reasons for variation <> 20%	-----
Estimation for coming financial year	Yes
Capital in the business	No
Details of sister concerns	-----
Major Suppliers	No
Major Customers	No
Payments Terms	Yes
Export/ Imports Details (If applicable)	-----
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	-----
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	No
Incorporation details is applicable	-----
Last Accounts filed at ROC	-----
Major Shareholders, if available	-----

NOTE:

The Registered office of the company has been shifted from, H -24, MIDC Area, Satpur, Nashik – 422007, Maharashtra, India to the present address w.e.f. May - 2011.

OPERATIONAL RESULTS:

This is 22 year of operation. During the year, company has achieved good turnover over the performance of last financial year, profit of the current includes profit on sale of land and building situated at H- 24, Satpur, MIDC, Nashik of Rs.4.731 Millions.

FORM 8:

Corporate identity number of the company	U29309MH1989PTC051752
Name of the company	SHARP KNIFE COMPANY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	H/24, M.I.D.C. Area Satpur, Nashik – 422007, Maharashtra, India suranaaj@yahoo.co.in
This form is for	Creation of charge
Type of charge	Book Debts Movable Property
Particular of charge holder	The Thane Janata Sahakari Bank Limited Specialised Credit Cell, Shop No. 1-2, Keshar Plaza DGP Nagar, Ambad, Nashik – 422010, Maharashtra, India sandeep.divekar@thanejanata.co.in
Nature of description of the instrument creating or modifying the charge	Hypothecation of goods, plant and machinery and debts
Date of instrument Creating the charge	21/10/2011
Amount secured by the charge	Rs.12.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest @13.50% p.a. (at monthly rest) i.e. 1.50% below PLR Terms of Repayment Repayment IN 66 months in 60 EMI of Rs.0.276 Million each. Margin 30% Extent and Operation of the charge First charge created in favour of The Thane Janata Sahakari Bank Limited, Ambad Branch
Short particulars of the property charged	All stocks of finished goods, raw material and semi finished goods and consumable stores and spares, merchandise now / anytime hereafter belonging to / at the disposal of borrower and stored / being stored / which hereafter may from time to time be brought into / stored / be in / about borrower's premises / godowns and all other places of storage with agents / agencies All tangible movable machinery and plant machines spares, machinery stores, spares and accessories present and future, whether installed or not at site / in transit / borrower's premises / godowns wherever / same may be held by party anywhere book debts, outstanding decrees, monies receivables, claims and bills which are now due and owing / which may be any time hereafter during continuance of this security become due and owing to borrower

FIXED ASSETS:

· Land of Plot No.C-13

· Computer and Peripherals

· Electric Installation

· Furniture and Fixture

· Plant and Machinery

· Building H - 24

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.49.64
UK Pound	1	Rs.78.35
Euro	1	Rs.65.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--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	NO
--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.