MIRA INFORM REPORT

Report Date :

25.02.2012

IDENTIFICATION DETAILS

Name :	MAHABAL METALS PRIVATE LIMITED
Registered Office :	The Mahabal Group, C/O, P.B. No.30, Miraj – 416 410, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.10.1996
Com. Reg. No.:	11-103515
Capital Investment / Paid-up Capital :	Rs.2.885 Millions
CIN No.: [Company Identification No.]	U29299MH1996PTC103515
TAN No.: [Tax Deduction & Collection Account No.]	KLPM01788D
PAN No.: [Permanent Account No.]	AABCM8611K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Automobile Parts.
No. of Employees :	700 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 1616000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having good track. Financial position of the company appears to be sound. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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. Ashok
Designation :	Accounts Manager
Contact No.:	91-9823314128
Date :	22.02.2012

LOCATIONS

Registered Office :	The Mahabal Group, C/O, P.B. No.30, Miraj – 416 410, Maharashtra, India
Tel. No.:	91-233-2211101/ 2211102/ 2211103/ 2211104/ 2211201
Mobile No.:	91-9823314128 (Mr. Ashok)
Fax No.:	91-233-2211106
E-Mail :	kadam.ashok@mahabal.in deepak.bosle@mahabal.in www.mahabalgroup.com san_smahabal@sancharnet.in san_mmpl@sancharnet.in san_mahabal@sancharnet.in amrutparakh@rediffmail.com
Area :	2 Acres
Location :	Owned
Factory 1 :	“Mahabal Metals” at Plot No.23, 24, Gut No.57, 36 and Plot No.85/1 and 2, Marathe Industrial Estate, Miraj, Maharashtra, India
Factory 2 :	There is one new unit coming up at Kupwad District, Gut No. E 25, Miraj, Maharashtra, India
Area :	9.5 Acres
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :

Mr. Sanjay Gopalrao Damale

Designation :

Director

Address :

Near R.M. High School, Brahminpuri, Miraj – 416 410, Maharashtra, India

Date of Birth/Age :

15.07.1961

Date of Appointment :

10.08.2008

DIN No. :

02392776

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U29299MH1996PTC103515	Mahabal Metals Privale Limited	Director	10-08-08	10-08-08	Active	NO
2	U34300PN1990PTC057548	Mahabal Auto Ancillaries Private Limited	Director	10-08-08	10-08-08	Active	NO

Name :

Mr. Shrikant Madhavrao Mahabal

Designation :

Director

Address :

Brahminpuri, Miraj – 416 410, Maharashtra, India

Date of Birth/Age :

01.06.1959

Qualification :

Engineer

Date of Appointment :

25.10.1996

DIN No. :

00314421

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U34300PN1990PTC057548	Mahabal Auto Ancillaries Private Limited	Director	01-08-90	01-08-90	Active	NO
2	U29299MH1996PTC103515	Mahabal Metals Privale Limited	Director	25-10-96	25-10-96	Active	NO

Name :

Mr. Hemant Madhavrao Mahabal

Designation :

Director

Address :

Brahminpuri, Miraj – 416 410, Maharashtra, India

Date of Birth/Age :

06.03.1962

Qualification :

Engineer

Date of Appointment :

25.10.1996

DIN No. :

00314483

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U34300PN1990PTC057548	Mahabal Auto Ancillaries Private Limited	Director	01-08-90	01-08-90	Active	NO
2	U29299MH1996PTC103515	Mahabal Metals Privale Limited	Director	25-10-96	25-10-96	Active	NO
3	U29299PN2005PTC020338	Trinitas Engineers And Founders Private Limited	Director	30-09-09	06-01-09	Active	NO

Name :

Mr. Nishikant Madhavrao Mahabal

Designation :

Director

Address :

Brahminpuri, Miraj – 416 410, Maharashtra, India

Date of Birth/Age :

29.12.1966

Qualification :

Engineer

Date of Appointment :

25.10.1996

DIN No. :

00314567

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U34300PN1990PTC057548	Mahabal Auto Ancillaries Private Limited	Director	01-08-90	01-08-90	Active	NO
2	U29299MH1996PTC103515	Mahabal Metals Privale Limited	Director	25-10-96	25-10-96	Active	NO

KEY EXECUTIVES

Name :	Mr. Ashok
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Shrikant Madhav Mahbal	960
Hemant M. Mahabal	960
Nishikant M. Mahabal	960
Sanjay G. Damale	5
Total	2885

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Automobile Parts.
Exports :
Products :	Automobile Parts
Countries :	v UK v USA
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	2009-10
1) Licensed Capacity	N.A.
2) Installed Capacity	5900 (Melting) P.M.

Particulars	Unit	Actual Production
Various Automobile Components	Nos.	2612535

GENERAL INFORMATION

Suppliers :

v Sesa Goa Limited

v Genuine Engineering

Customers :

Wholesalers and Retailers

v Tata Motors

v Mahindra and Mahindra

No. of Employees :

700 Approximately)

Bankers :

v Bank of Baroda, Miraj – 416 410, Maharashtra, India

v IDBI Bank Limited IDBI Tower TC Complex, Cuffe Parade, Mumbai – 400 005, Maharashtra, India

v IDBI Bank Limited, Opposite Vita Dairy, Brahmnpuri, Miraj – 416 410, Maharashtra, India

v Industrial Development Bank of India, Opposite Vita Dairy, Brahmnpuri, Miraj – 416 410, Maharashtra, India

v HDFC Bank Limited

v ICICI Bank Limited

v ABN Amro Bank

Facilities :

Cash Credit – Rs.260.000 millions, Term Loan – Rs.320.000 millions (From Bank of Baroda, Miraj Branch)

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans secured
Rupee term loans banks secured	240.342	215.274
Working capital loans secured
Working capital loans banks secured	224.269	41.523
Loans taken for fixed assets secured
Loans taken for vehicles secured	3.103	6.048
Total	467.714	262.845

Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Deferred sales tax loan unsecured	7.332	7.332
Total	7.332	7.332

Banking Relations :	--
Auditors :
Name :	Y.P. Lele and Company Chartered Accountants
Address :	F-5, Laxmi Vijay Apartment, Jilebi Chowk, Brahmanpuri, Miraj – 416 410, Maharashtra, India
Tel. No.:	91-233-2222700
Pan No. :	AAJPL6040J
Associated Companies :	v Mahabal Auto Ancillaries Private Limited, India (CIN No.: U34300PN1990PTC057548) v Trinitas Engineers and Founders Private Limited, India (CIN No.: U29299PN2005PTC020338)

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000	Equity Shares	Rs.1000/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2885	Equity Shares	Rs.1000/- each	Rs.2.885 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		2.885	2.880	2.880
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		401.160	395.347	307.356
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		404.045	398.227	310.236
LOAN FUNDS
1] Secured Loans		467.714	262.845	65.112
2] Unsecured Loans		7.332	7.332	7.332
TOTAL BORROWING		475.046	270.177	72.444
DEFERRED TAX LIABILITIES		31.510	38.764	14.123
TOTAL		910.601	707.168	396.803
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		617.779	560.547	242.356
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	105.109	50.651	43.386
	Sundry Debtors	257.389	200.328	180.069
	Cash & Bank Balances	0.971	6.471	18.308
	Other Current Assets	18.610	0.486	42.874
	Loans & Advances	90.858	72.092	29.160
Total Current Assets		472.937	330.028	313.797
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	160.657	156.418	110.519
	Other Current Liabilities	2.894	1.027	0.534
	Provisions	16.564	25.962	48.297
Total Current Liabilities		180.115	183.407	159.350
Net Current Assets		292.822	146.621	154.447
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		910.601	707.168	396.803

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1333.553	1022.634	936.707
		Other Income	27.223	16.260	15.230
		TOTAL (A)	1360.776	1038.894	951.937
Less	EXPENSES
		Office Expenses	1159.951	806.010	778.435
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	1159.951	806.010	778.435
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		200.825	232.885	173.502
Less	INTEREST (D)		33.956	9.259	14.783
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		166.869	223.626	158.719
Less/ Add	DEPRECIATION/ AMORTISATION (F)		147.098	85.262	68.593
	PROFIT BEFORE TAX (E-F) (G)		19.771	138.364	90.126
	TAX (H)		13.200	48.940	41.557
	PROFIT AFTER TAX (G-H) (I)		12.489	89.653	57.325
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.032	0.000	0.100
	BALANCE CARRIED TO THE B/S		12.521	89.653	57.425
Less	APPROPRIATIONS
		Interim Dividend	2.880	0.000	7.200
		I.T on Interim Dividend	0.432	0.000	1.130
		Proposed Dividend	2.885	1.440	5.760
		Income Tax on Dividend	0.479	0.222	0.979
		Transfer to General Reserve	5.600	87.959	42.356
	PROFIT AFTER APPROPRIATION		0.245	0.032	0.000
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	171.662	95.215	143.200
		On Account Export	155.163	98.718	155.163
	TOTAL EARNINGS		326.825	193.933	298.363
	IMPORTS
		CIF value of Imports	0.000	16.187	5.762
	TOTAL IMPORTS		0.000	16.187	5.762
	Earnings Per Share (Rs.)		4328.94	31129.51	19904.51

Expected Sales (2011-2012): Rs.1900.000 millions

The above information has been parted by Mr. Ashok (Accounts Manager).

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.92	8.63	6.02
Net Profit Margin (PBT/Sales)	(%)	1.48	13.53	9.62
Return on Total Assets (PBT/Total Assets}	(%)	1.81	15.54	16.21
Return on Investment (ROI) (PBT/Networth)		0.05	0.35	0.29
Debt Equity Ratio (Total Liability/Networth)		1.62	1.14	0.75
Current Ratio (Current Asset/Current Liability)		2.63	1.80	1.97

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
- Creditors due small micro enterprises	--	--	--
- Creditors due others	160.657	156.418	110.519
Total	160.657	156.418	110.519

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	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 one year	Yes
12) Profitability for last three years	--
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	--
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	--

OPERATION:

The company has expanded its arm by establishing a new unit at 5A/1, MIDC, Miraj. The new plant has commissioned its production from last week of March, 2010. In the new unit latest and advanced technology i.e DISA foundry expansion has used. Main purpose and motive of the new unit is to increase the production capacity viz in the CI and S G casting Iron and stable the supply of the products. The capacity of the new unit is

30,000 M.T. p.a. Company has started its commercial production in the new unit.

EXPORTS:

During the year the Company’s export division-registered Sales of Rs.17.223 millions only. The Company initiated several export promotion measures to improve exports.

CAPITAL AND FINANCE:

During the year, there was change in the equity share capital of the company. The working capital fresh limit has taken from banks of Rs.0.626 million considering the expansion of new MIDC unit and demand of the product. With significant pressure on liquidity during the year, the company’s capital expenditure programs and growing business requirement, the overall borrowing of the company stood at Rs.467.714 millions.

FINANCIAL PERFORMANCE:

The profit before tax is Rs.19.771 Millions. The profit after tax is Rs.12.489 Millions which are increased comparatively last year.

FORM 8

Corporate identity number of the company	U29299MH1996PTC103515
Name of the company	MAHABAL METALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	The Mahabal Group, C/O, P. B.No. 30, Miraj – 416410, Maharashtra, India Email Id : amrutparakh@rediffmail.com
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Bank of Baroda, Miraj Branch, Miraj - 416410, Maharashtra, India Email Id : cpc.sme.kolhapur@bankofbaroda.com
Nature of instrument creating charge	Composite Deed of Hypothecation dated on 02.08.2011
Date of instrument Creating the charge	02.08.2011
Amount secured by the charge	Rs.100.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest R.O.I = 2.50% over the base rate @ 12.75% p.a. with monthly rest (for intervening period till the loan is converted in FCNR (B) Loan) Terms of repayment Repayable in 20 quarterly installments of Rs.5.000 Millions each commencing after 3 months from the date of disbursement. (Door to door tenor is 63 months inclusive of moratorium period of 3 months. Margin Margin = 30.85% Extent and operation of the charge First and exclusive charge on property as mentioned in Deed of Hypothecation dated 02.08.2011 Others Nil
Short particulars of the property or asset(s) charged (including complete address and location of the property)	1^st charge by way of Hypothecation of the Borrowers machinery purchased and installed in new foundry Unit No. III situated at plot no. A/5/1 and 2, M. I. D. C. Miraj, and Unit No. 1 situated at Plot No. 23 and 24, M. I. D. C., Miraj. Extension of charge over land and building with factory shed and entire plant and machineries of the units I, II, III situated at a) Plot No. 23 and 24, M.I.D.C., Miraj – 416410, Maharashtra, India b) Plot No. 57/2/5, 6,7, M. I./ D. C, Miraj – 416410, Maharashtra, India c) Plot No. A-5/1 and 2 M. I. D. C, Miraj, Extension charge on furniture, electronic installation computer and other fixed assets Extension of charge over current assets of the company situated at above units of the company.

TRADE REFERENCES:

v Tata Motors

v Mahindra and Mahindra

v Sesa Goa Limited

v Genuine Engineering

FIXED ASSETS

v Land

v Buildings

v Plant and Machinery

v Furniture and Fixture

v Patterns

v Electrical Installation

v Office Equipments

v Computer

v Testing Equipment

v Vehicles

v Internal Roads

v Wind Mill Project – 1

v Wind Mill Project – 2

v Wind Mill Project – 3

v Handling Equipments

v Vehicles – Two Wheeler

v Fixture and Tooling’s

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.49.07
UK Pound	1	Rs.77.19
Euro	1	Rs.65.57

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

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.