MIRA INFORM REPORT

Report Date :

13.01.2012

IDENTIFICATION DETAILS

Name :	E C BLADES AND TOOLS PRIVATE LIMITED
Registered Office :	Plot No.284, Industrial Area, Phase – 1, Chandigarh - 160002
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	05.08.1991
Com. Reg. No.:	53-011555
Capital Investment / Paid-up Capital :	Rs.50.000 Millions
CIN No.: [Company Identification No.]	U28939CH1991PTC011555
TAN No.: [Tax Deduction & Collection Account No.]	PTLM10530C
PAN No.: [Permanent Account No.]	AAACE8648M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Rail Coach Components, Heavy Fabrication Items, Stainless Steel Components For Rail Coach, Integral Coach, Tractor Sheet, Metal Components For Hmt Tractors.
No. of Employees :	Not Available

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 470000
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 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 – 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

LOCATIONS

Registered Office :	Plot No.284, Industrial Area, Phase – 1, Chandigarh – 160002, India
Tel. No.:	91-172-2652347 / 2561422
Fax No.:	91-172-2562159
E-Mail :	skbansal_co@sify.com ecbt@ecbtindia.com
Website :	http://www.ecbtindia.com
Corporate Office / Factory 1 :	Plot No.55, Industrial Estate, Phase – I, Panchkula – 134113, Haryana, India
Tel. No.:	91-172-2584024
Factory 2 :	Plot No.347, Industrial Estate, Phase – II, Chandigarh – 160 002, India
Tel. No.:	91-172-2652347

DIRECTORS

As on 30.09.2011

Name :	Mr. Dinesh Arora
Designation :	Managing Director
Address :	House No.166, Sector -6, Panchkula – 134109, Haryana, India
Date of Birth/Age :	20.05.1952
Date of Appointment :	29.11.1999
DIN No.:	00034227

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U28946CH1991PTC011023	Engineers and Consultants Private Limited	Managing director	01-04-10	25-01-91	-	Active	NO
2	U33119CH1999PTC022261	Kuteer Equipments Private Limited	Director	01-04-10	19-02-99	-	Active	NO
3	U28939CH1991PTC011555	E C Blades and Tools Private Limited	Managing director	01-04-10	29-11-99	-	Active	NO

Name :	Ms. Sonu Arora
Designation :	Director
Address :	House No.166, Sector -6, Panchkula – 134109, Haryana, India
Date of Birth/Age :	09.02.1983
Date of Appointment :	01.01.2007
DIN No.:	00034249

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U33119CH1999PTC022261	Kuteer Equipments Private Limited	Managing director	29-04-01	29-04-01	-	Active	NO
2	U28939CH1991PTC011555	E C Blades and Tools Private Limited	Director	01-01-07	01-01-07	-	Active	NO
3	U28946CH1991PTC011023	Engineers and Consultants Private Limited	Director	30-09-10	01-04-10	-	Active	NO

Name :	Mrs. Anita Arora
Designation :	Director
Address :	House No.166, Sector -6, Panchkula – 134109, Haryana, India
Date of Birth/Age :	27.04.1958
Date of Appointment :	01.06.2008
DIN No.:	00034285

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U28946CH1991PTC011023	Engineers and Consultants Private Limited	Director	10-10-99	10-10-99	-	Active	NO
2	U28939CH1991PTC011555	E C Blades and Tools Private Limited	Director	30-09-08	01-06-08	-	Active	NO

Name :	Mr. Rajan Gupta
Designation :	Director
Address :	House No.166, Sector -6, Panchkula – 134109, Haryana, India
Date of Birth/Age :	26.01.1970
Date of Appointment :	10.03.2007
DIN No.:	00357801

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Dinesh Arora	307500
Sonu Arora	192000
Rajan Gupta	500
Total	500000

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Rail Coach Components, Heavy Fabrication Items, Stainless Steel Components For Rail Coach, Integral Coach, Tractor Sheet, Metal Components For Hmt Tractors.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, SCO 14, Sector – 10, Panchkula – 134109, Haryana, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working Capital Loan Bank Secured	80.679	50.519
Loans Taken For Fixed Assets Secured	28.663	0.000
Total	109.342	50.519
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee Term Loan Unsecured	5.855	0.000
Loan From Directors Unsecured	7.616	0.132
Loan Taken For Fixed Assets Unsecured	7.005	4.824
Total	20.476	4.956

Banking Relations :	--
Auditors :
Name :	S K Bansal and Company Chartered Accountants
Address :	Kothi No.3193, Sector – 28 D, Chandigarh - 160002, India
PAN.:	AAPFS1400D
Associates :	Kuteer Equipments Private Limited Engineers and Consultants Private Limited

CAPITAL STRUCTURE

After 30.09.2011

Authorised Capital : Rs.75.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.50.000 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.100/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.100/- each	Rs.50.000 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		50.000	35.000	20.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		68.128	53.697	38.262
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		118.128	88.697	58.262
LOAN FUNDS
1] Secured Loans		109.342	50.519	66.104
2] Unsecured Loans		20.476	4.956	14.932
TOTAL BORROWING		129.818	55.475	81.036
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		247.946	144.172	139.298
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		81.637	49.255	36.306
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	93.786	56.882	22.737
	Sundry Debtors	82.180	56.846	109.946
	Cash & Bank Balances	0.854	1.173	0.014
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	22.761	17.822	24.301
Total Current Assets		199.581	132.723	156.998
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	26.152	29.056	42.176
	Other Current Liabilities	0.000	0.000	0.410
	Provisions	7.270	9.000	11.700
Total Current Liabilities		33.422	38.056	54.286
Net Current Assets		166.159	94.667	102.712
MISCELLANEOUS EXPENSES		0.150	0.250	0.280
TOTAL		247.946	144.172	139.298

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income		523.389	597.876
		Other Income		1.558	0.229
		TOTAL (A)		524.947	598.105
Less	EXPENSES
		Finished Goods Purchased		9.950	36.806
		Material Consumed	NA	345.866	417.817
		Personal Expenses		29.574	16.751
		Manufacturing Expenses		55.259	45.384
		Administrative, Financial, Selling and other Expenses		52.787	40.348
		TOTAL (B)		493.436	557.106
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		31.701	31.511	40.999
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.840	5.089	7.527
	PROFIT BEFORE TAX (E-F) (G)		21.861	26.422	33.472
Less	TAX (I)		NA	9.000	11.700
	PROFIT AFTER TAX (G-I) (J)		NA	17.422	21.772
Less	Adjustment		NA	1.987	0.063
	BALANCE CARRIED TO THE B/S		NA	15.435	21.709
	Earnings Per Share (Rs.)		NA	84.67	216.53

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	3.32	3.64
Net Profit Margin (PBT/Sales)	(%)	NA	5.05	5.60
Return on Total Assets (PBT/Total Assets}	(%)	7.77	14.52	17.32
Return on Investment (ROI) (PBT/Networth)		0.19	0.30	0.57
Debt Equity Ratio (Total Liability/Networth)		1.38	1.05	2.33
Current Ratio (Current Asset/Current Liability)		5.97	3.49	2.89

LOCAL AGENCY FURTHER INFORMATION

Note:

The registered office of the company has been shifted from #347, Industrial Area, Phase – II, Chandigarh – 160 002, India to the present address w.e.f. 01.06.2009

Performance :

The directors of your Company have pleasure in presenting the Annual Report together with the Audited Accounts of the Company for the year ended 31st March 2011.

The gross turnover of the company has been at Rs.492.421 Millions as against Rs.589.223 Millions in the previous year. There has been a net profit of Rs.21.861 Millions during the year. Thus net profit has been arrived at after providing depreciation Rs.9.840 Millions in the current financial year. It is expected that the working in the current financial year of the company may improve as the company is planning to explore the new area of its products.

Form 8:

Corporate identity number of the company	U28939CH1991PTC011555
Name of the company	E C BLADES AND TOOLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No 284, Industrial Area Phase-1, Chandigarh – 160002, India E-mail : skbansal_co@sify.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90310425
Type of charge	Any interest in immovable property Book debts Movable property (not being pledge)
Particular of charge holder	State Bank of India, SCO 14, Sector – 10, Panchkula – 134109, Haryana, India E-mail : sbi.01509@sbi.co.in
Nature of instrument creating charge	Supplemental agreement of loan for increase of overall limit
Date of instrument Creating the charge	03.12.2011
Amount secured by the charge	Rs.280.200 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest In case of working capital 5.00% above base rate present effective being 15.00% In case of term loan 5.00% above base rate present effective being 15.00% Terms of repayment Working capital facility is repayable on demand but subject to renew after every 12 months Term loan-1 to be repaid in 20 quarterly installment of Rs.0.500 Millions each commencing from 30th sep 2010 Term loan-2 to be repaid in 75 monthly installment of Rs.1.600 Millions each commencing from October 2012 Margin Against all type of stocks including raw material semi finished goods and finished goods-25% Against book debts-40% In case of bank guarantee and LC 10% Extent and operation of the charge Primary on all type of stocks of Raw Material Working Capital Finished Goods and all current assets present and future ;ying in factory and in transit documentary inland and export bills and book debts and hypothecation of fixed assets of the company having WDV of Rs.204.200 Millions estimated as on 31.3.2012 And Collaterally on imm prop comp of land measuring 19.25 bighas situated at mauja haripur teh derabssi in the name of md of co and plot no.55 and 56 Industrial Area Phase-1 PKL in the name of company
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Land Measuring 19.25 Bighas At Mauja Haripur Tehsil Derabssi In The Name of Dinesh Arora Managing director of The Company and Plot No 55 and 56 Industrial Area Ph-1 Panchkula In The Name of Company
Date of instrument modifying the charge	06.05.2011
Particulars of the present modification	Increase in Overall credit facility from Rs.220.000 Millions and Rs.8.300 Millions to Rs.280.000 Millions and Rs.0.200 Million only

Fixed Assets:

• Dies Jigs and Fixtures
• Furniture
• Office Equipments
• Machinery
• Quality Control Instruments
• Electrification and Installation
• Vehicle
• Computer
• Air conditioner
• Scooter

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.51.83
UK Pound	1	Rs.79.42
Euro	1	Rs.65.90

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
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	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.