MIRA INFORM REPORT

Report Date :

26.07.2012

IDENTIFICATION DETAILS

Name :	GNA UDYOG LIMITED (w.e.f. 13.06.1991)

Formerly Known As :	GNA UDYOG PRIVATE LIMITED

Registered Office :	GNA House, 1-C, Chhoti Baradari, Part - II, Garha Road, Opposite Medical College, Jalandhar – 144 001, Punjab

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	03.08.1990

Com. Reg. No.:	16-010607

Capital Investment / Paid-up Capital :	Rs.95.400 millions

CIN No.: [Company Identification No.]	U51909PB1990PLC010607

PAN No.: [Permanent Account No.]	AACCG4912C

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer of Propeller Shafts, Steering Components, Front Wheel Hub, Pivot Pins and Pitman Arms.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 782000

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 – June 30, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	D
Rating Explanation	Instruments with this rating are in default or are expected to be in default soon.
Date	31.01.2012

RBI DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ 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.

LOCATIONS

Registered Office :	GNA House, 1-C, Chhoti Baradari, Part - II, Garha Road, Opposite Medical College, Jalandhar – 144 001, Punjab, India
Tel. No.:	91-1826-270101/ 264941-943/ 262309
Fax No.:	91-1826-270025/ 262627
E-Mail :	gnaudyog@gnaudyog.com sales@gnaudyog.com gjain@gnagroup.com
Website :	http://www.gnaudyog.com

Factory :	Village and P.O Bundala, District Jalandhar – 144 034, Punjab, India
Tel. No.:	91-1826-270101-105
Fax No.:	91-1826-270025

DIRECTORS

As on 20.09.2010

Name :

Mr. Ranbir Singh

Designation :

Director

Address :

V.P.O Bundala, District Jalandhar – 144 034, Punjab, India

Date of Birth/Age :

04.12.1961

Date of Appointment :

30.06.1999

DIN No.:

01572708

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	Company/ LLP Status	Defaulting status
1	U34300PB1980PLC004154	GNA Duraparts Limited	Director	15/09/1988	15/09/1988	Active	NO
2	U29130PB1993PLC013684	G N A Axles Limited	Whole-time director	01/04/2010	06/09/1993	Active	NO
3	U31904PB1983PLC005241	Guru Nanak Transmissions Punjab Limited	Director	09/02/1998	09/02/1998	Active	NO
4	U51909PB1990PLC010607	GNA Udyog Limited	Director	30/06/1999	30/06/1999	Active	NO
5	U65990PB2009PLC032876	GNA Investment Limited	Director	02/06/2009	02/06/2009	Active	NO
6	U65110PB1999PLC022634	Capital Local Area Bank Limited	Additional director	27/03/2010	27/03/2010	Active	NO

Name :

Mr. Gurdeep Singh

Designation :

Director

Address :

V.P.O Bundala, District Jalandhar – 144 034, Punjab, India

Date of Birth/Age :

04.01.1967

Qualification :

Graduate

Date of Appointment :

05.11.2001

DIN No.:

01572748

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	Company/ LLP Status	Defaulting status
1	U60210PB1984PLC005913	Amarsons Automotives Limited	Director	09/01/1985	09/01/1985	Active	NO
2	U34300PB1980PLC004154	GNA Duraparts Limited	Whole-time director	01/04/2010	03/09/1991	Active	NO
3	U29130PB1993PLC013684	G N A Axles Limited	Director	06/09/1993	06/09/1993	Active	NO
4	U31904PB1983PLC005241	Guru Nanak Transmissions Punjab Limited	Director	30/09/1993	30/09/1993	Active	NO
5	U51909PB1990PLC010607	GNA Udyog Limited	Director	05/11/2001	05/11/2001	Active	NO
6	U65990PB2009PLC032876	GNA Investment Limited	Director	02/06/2009	02/06/2009	Active	NO

Name :

Mr. Maninder Singh Seehra

Designation :

Whole-time Director

Address :

V.P.O Bundala, District Jalandhar – 144 034, Punjab, India

Date of Birth/Age :

08.12.1959

Qualification :

Graduate

Date of Appointment :

04.09.1991

DIN No.:

01610746

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	Company/ LLP Status	Defaulting status
1	U34300PB1980PLC004154	GNA Duraparts Limited	Director	15/09/1988	15/09/1988	Active	NO
2	U51909PB1990PLC010607	GNA Udyog Limited	Whole-time director	01/04/2012	04/09/1991	Active	NO
3	U29130PB1993PLC013684	G N A Axles Limited	Director	06/09/1993	06/09/1993	Active	NO
4	U31904PB1983PLC005241	GURU Nanak Transmissions Punjab Limited	Director	09/02/1998	09/02/1998	Active	NO
5	U65990PB2009PLC032876	GNA Investment Limited	Director	02/06/2009	02/06/2009	Active	NO

Name :

Mr. Jasvinder Singh Seehra

Designation :

Director

Address :

GNA House, V.P.O Bundala, District Jalandhar – 144 034, Punjab, India

Date of Birth/Age :

26.07.1958

Date of Appointment :

21.03.2011

DIN No.:

01831572

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	Company/ LLP Status	Defaulting status
1	U34300PB1980PLC004154	GNA Duraparts Limited	Director	15/09/1988	15/09/1988	Active	NO
2	U29130PB1993PLC013684	G N A Axles Limited	Whole-time director	01/04/2010	06/09/1993	Active	NO
3	U31904PB1983PLC005241	Guru Nanak Transmissions Punjab Limited	Director	09/02/1998	09/02/1998	Active	NO
4	U65990PB2009PLC032876	GNA Investment Limited	Director	02/06/2009	02/06/2009	Active	NO
5	U51909PB1990PLC010607	GNA Udyog Limited	Director	21/03/2011	21/03/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 20.09.2010

Names of Shareholders		No. of Shares
S. Rachhpall Singh		1195878
S. Gursaran Singh		1128606
S. Jasvinder Singh		630000
S. Ranbir Singh		714000
S. Maninder Singh		630000
S. Gurdeep Singh		754878
Mohinder Kaur		196266
Harjinder Kaur		48000
Surinder Kaur		75000
Lovleen Kaur		75000
Amarjeet Kaur		75000
Jasleen Kaur		75000
Mohinder Kaur and S. Gursaran Singh		345000
Harjinder Kaur and S. Rachhpall Singh		345000
S. Rachhpall Singh and Harjinder Kaur		270000
S. Gursaran Singh and Mohinder Kaur		240000
S. Rachhpall Singh and Sons		259872
GNA Duraparts Private Limited		2482500
Total		9540000

As on 20.09.2010

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		26.00
Directors or relatives of directors		74.00
Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Propeller Shafts, Steering Components, Front Wheel Hub, Pivot Pins and Pitman Arms.

Products :

v Propeller Shaft Assemblies

v Steering column Assemblies

v Intermediate Drive Shaft Assemblies

v Tie Rod

v Front Axle Assemblies and Components

v Pitman Arm

v Off Highway Products

GENERAL INFORMATION

Customers :

v Ashok Leyland Nissan

v Ashok Leyland Limited (Heavy Commercial Vehicles)

v Asia Motor Works

v Case New Holland

v Tata Motors Limited (Medium and Heavy Commercial Vehicles)

v Swaraj Mazda Limited (Light Commercial Vehicles)

v Maruti Udyog Limited (Passenger Vans/MUV’s)

v Mahindra and Mahindra Limited

v New Holland Fiat India Private Limited

v JCB

v Caterpillar

v Preet Tractors Limited

v Action Construction Equipments Limited (Tractor Division)

v Piaggio Commercial Vehicles

v Indo Farm Tractors Limited

v International Tractors Limited

v John Deere

v Renault

v Graziano Transmissions

v Arvin Meritor

v Automotive Axles Limited (Tier I Supplier)

No. of Employees :

Not Available

Bankers :

v Canara Bank, BMC Chowk, Phagwara – 144 001, Punjab, India

v Punjab National Bank, G.T. Road, Goraya, Jalandhar – 144 409, Punjab, India

v Punjab and Sind Bank

v HDFC Bank Limited

v Axis Bank Limited

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Rupee term loans banks secured	179.295	76.886
Working capital loans banks secured	355.341	286.669
Total	534.636	363.555

Unsecured Loans

31.03.2011

Rs. In Millions

31.03.2010

Rs. In Millions

Other debt unsecured

105.436

72.886

Total

105.436

72.886


Banking Relations :	--

Auditors :
Name :	G.S. Syal and Company Chartered Accountants
Address :	Syal House, Lajpat Nagar, Jalandhar – 144 001, Punjab, India
Income-tax PAN of auditor or auditor's firm :	ABNPS2310K

Group Companies :	v GNA-IMT (GNA Institute of Management and Technology) v GNA Duraparts Limited v GNA Axles Limited

CAPITAL STRUCTURE

As on 12.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9540000	Equity Shares	Rs.10/- each	Rs.95.400 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		95.400	95.400	95.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		100.214	57.509	43.281
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		195.614	152.909	138.681
LOAN FUNDS
1] Secured Loans		534.636	363.555	308.513
2] Unsecured Loans		105.436	72.886	53.965
TOTAL BORROWING		640.072	436.441	362.478
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		835.686	589.350	501.159

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		303.926	273.540	236.637
Capital work-in-progress		112.925	0.000	0.000

INVESTMENT		0.006	0.006	0.006
DEFERRED TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	509.512	380.535	338.230
	Sundry Debtors	224.240	166.464	135.574
	Cash & Bank Balances	6.038	4.637	24.450
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	51.626	30.062	27.122
Total Current Assets		791.416	581.698	525.376
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	354.322	252.867	250.194
	Other Current Liabilities	18.265	13.027	10.666
	Provisions	0.000	0.000	0.000
Total Current Liabilities		372.587	265.894	260.860
Net Current Assets		418.829	315.804	264.516

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		835.686	589.350	501.159

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net	1080.422	841.126	738.130
		Other Income	55.225	0.711	0.684
		TOTAL (A)	1135.647	841.837	738.814

Less	EXPENSES
		Consumption materials changes inventories	592.111	456.639	660.670
		Manufacturing service costs	197.094	158.013
		Employee related expenses	51.786	42.065
		Administrative selling other expenses	130.851	101.967
		TOTAL (B)	971.842	758.684	660.670

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		163.805	83.153	78.144

Less	INTEREST FINANCIAL CHARGES (D)		64.771	39.902	43.490

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		99.034	43.251	34.654

Less/ Add	DEPRECIATION/ AMORTISATION (F)		29.330	22.923	19.250

	PROFIT BEFORE TAX (E-F) (G)		69.704	20.328	15.404

Less	TAX (H)		27.000	6.100	4.078

	PROFIT AFTER TAX (G-H) (I)		42.704	14.228	11.326

	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	1.805	2.452	0.707
	TOTAL EARNINGS		1.805	2.452	0.707

	Earnings Per Share (Rs.)		4.48	1.49	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.76	1.69	1.53

Net Profit Margin (PBT/Sales)	(%)	6.45	2.42	2.09

Return on Total Assets (PBT/Total Assets}	(%)	6.36	2.38	2.02

Return on Investment (ROI) (PBT/Networth)		0.36	0.13	0.11

Debt Equity Ratio (Total Liability/Networth)		5.18	4.59	4.49

Current Ratio (Current Asset/Current Liability)		2.12	2.19	2.01

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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
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]	PAN of Proprietor/Partner/Director, if available	No
32]	Passport No of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No

Note:

The registered office of the company has been shifted from 311, Prestige Chamber, IInd Floor, GT Road, Jalandhar, Punjab to the present address w.e.f. 01.04.2011.

SALES TURNOVER:

During the year, the company has registered a turnover of Rs.1080.422 millions as compared to Rs.841.126 millions showing an increase of 28.45% over the previous year turnover.

PROFITS

The Company earned profit before depreciation, interest and tax of Rs.163.805 millions as against Rs.83.153 millions in the previous year. After providing for depreciation of Rs.29.330 millions, (Previous year Rs.22.923 millions), provision for current tax Rs.27.000 millions (Previous year Rs.6.100 millions), the net profit worked out to Rs.42.704 millions as compared to Rs.14.228 millions in the previous year.

Bankers Charges Report as per Registry

Corporate identity number of the company	U51909PB1990PLC010607
Name of the company	GNA UDYOG LIMITED
Address of the registered office or of the principal place of business in India of the company	GNA House, 1-C, Chhoti Baradari, Part - II, Garha Road, Opposite Medical College, Jalandhar – 144 001, Punjab, India E-Mail: gjain@gnagroup.com
This form is for	Creation of charge
Type of charge	Immovable Property Movable Property (not being pledge)
Particular of charge holder	Canara Bank, BMC Chowk, Phagwara – 144 001, Punjab, India E-Mail: managercb0165@canarabank.com
Nature of description of the instrument creating or modifying the charge	Sanction Memorandum dated 13.09.2011
Date of instrument Creating the charge	13.09.2011
Amount secured by the charge	Rs.40.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: BR+6% with a minimum of 16.75% Terms of Repayment: Repayable on or before 12.12.2011 Margin: 25% Extent and Operation of the charge: 100%
Short particulars of the property charged	Hypothecation of stock of raw material, WIP, and finished goods as primary security Continuation of existing collaterals in the name of GNA Udyog Limited

FIXED ASSETS:

v Freehold Land

v Factory Building

v Other Building

v Plant and Machinery

v Office Equipments

v Computer Equipments

v Furniture and Fixtures

v Motor Vehicles

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.56.37
UK Pound	1	Rs.87.44
Euro	1	Rs.68.05

INFORMATION DETAILS

Report Prepared by :

SMN

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	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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		46

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.

MIRA INFORM REPORT

509.512

224.240

6.038

0.000

51.626

791.416

354.322

18.265

0.000

372.587

418.829

3.76

6.45

6.36

0.36

5.18

2.12

Unit