MIRA INFORM REPORT

Report Date :

12.06.2012

IDENTIFICATION DETAILS

Name :	K E C FORGINGS PRIVATE LIMITED
Registered Office :	G. T. Road, Khanna Side, Mandi Gobindgarh, District Fatehgarh Sahib, Sahib – 147301, Punjab
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	10.04.2003
Com. Reg. No.:	16-025920
Capital Investment / Paid-up Capital :	Rs.3.400 Millions
CIN No.: [Company Identification No.]	U28910PB2003PTC025920
TAN No.: [Tax Deduction & Collection Account No.]	PTLK11624E
PAN No.: [Permanent Account No.]	AACCK459J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Steel Forging.
No. of Employees :	30 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 30000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is established company having moderate track. Profitability of the company appears to be low. Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered poor business dealing with some caution.

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. Atul Kumar Agrawal
Designation :	Director
Contact No.:	91-1765-255269
Date :	28.05.2012

LOCATIONS

Registered Office/ Factory :	G. T. Road, Khanna Side, Mandi Gobindgarh, District Fatehgarh Sahib, Sahib – 147301, Punjab, India
Tel. No.:	91-1765-255264/ 255269/ 242485
Fax No.:	91-1765-255129
E-Mail :	vjg6700@yahoo.co.uk info@kecforging.com
Website :	http://www.kecforging.com
Location :	Owned
Head Office :	P.O-11, Model Town, G. T. Road, Mandi Gobindgarh - 147301, Punjab, India
Tel. No.:	91-1765-255129/ 255264
Fax No.:	91-1765-255129

DIRECTORS

(AS ON 30.09.2011)

Name :	Mr. Manoj Kumar Agrawal
Designation :	Director
Address :	Chander Lok Colony, Bank of India Roa, Mandi Gobindgarh, Fatehgarh Sahib – 147301, Punjab, India
Date of Birth/Age :	14.12.1953
Date of Appointment :	01.05.2007
DIN No.:	00266923
Other Directorship :	Saket Steels Limited U27109DL1986PLC023964 Kumar Hammer Private Limited U27201PB1996PTC019152
Name :	Mr. Atul Kumar Agrawal
Designation :	Director
Address :	Chander Lok Colony, Bank of India Roa, Mandi Gobindgarh, Fatehgarh Sahib – 147301, Punjab, India
Date of Birth/Age :	24.01.1979
Date of Appointment :	01.07.2006
DIN No.:	00267223

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Shashi Agrawal	57500
Manju Agrawal	67500
Atul Kumar Agrawal	4000
Atul Kumar, Atul Kumar (HUF)	11500
Manoj Kumar, Manoj Kumar (HUF)	12600
Anju Agrawal	10000
Manish Kumar	35500
Mukul Kumar	36500
Shivani Agrawal	17500
Atul Kumar Agrawal (HUF)	10000
Manoj Kumar	7100
Harish Kumar HUF	100
Satish Kumar, Harish Kumar (HUF)	100
Shakuntla Devi	100
Surja Narain Anil Kumar (HUF)	20000
Shalini Agrawal	50000
Total	340000

(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 :

Manufacturer of Steel Forging.

Products :

Products Description	Item Code No.
Rough Forgings	NA

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Forged Good/ Metal Rolls	M.T.	NA	2400	1238.495

GENERAL INFORMATION

Suppliers :

· Chaoudhary Steel (Private) Limited

Customers :

Wholesalers and Retailers

· Wheels India Limited

No. of Employees :

30 (Approximately)

Bankers :

· UCO Bank, Punjab, India

· Small Industries Development Bank of India

SIDBI Tower, 15 Ashok Marg, Lucknow – 226001, Uttar Pradesh, India

· Small Industries Development Bank of India

SCO 145-146, First and Second Floor, Sector 17-C, Chandigarh – 160017, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From SIDBI *
- Term Loan	2.605	3.645
- WCTL	2.367	3.000
From UCO Bank
- Cash Credit A/c	5.204	5.481
- Book Debts	1.999	2.018
Vehicles Loans
ICICI Bank Limited (Secured against Car)	0.000	0.162
HDFC Bank (secured against Car) (secured against Crane)	0.201 0.519	0.293 0.686
Total	12.895	15.285
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Directors and Share Holders	2.046	1.647
Total	2.046	1.647
NOTE: *Secured by First charge by way of hypothecation of all movable assets, present and future, of the company located at Mandi Gobindgarh in such from as may be required by SIDBI subject to prior charges to be created in favour of the company’s bankers on current assets of the company as may be agreed to by SIDBI for securing the borrowing for working capital requirement and further secured by first charge in favour of SIDBI by way of equitable mortgage of lease hold rights of the immovable properties situated at Village Mughal Majra, Tehsil Amloh, District Fatehgarh Sahib and personal Guarantee of the directors. **Secured against stocks and book debts of the company and personal guarantee of director. ***Amount of installments due within one year Rs.0.430 Millions (Previous year Rs.0.230 Million)

Banking Relations :	--
Auditors :
Name :	V. Gupta and Associates Chartered Accountant
Address :	D-14, Calibre Market, Rajpura - 140401, Punjab, India
Tel No.:	91-1765-222429/ 524722
Fax No.:	91-1765-222869
PAN No.:	ABGPG2975F
Associates/Subsidiaries :	· Kumar Engineering Corporations

CAPITAL STRUCTURE

(AS ON 30.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs.10/- each	Rs.4.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
340000	Equity Shares	Rs.10/- each	Rs.3.400 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		3.400	3.400	2.400
2] Share Application Money		1.000	1.000	0.000
3] Reserves & Surplus		3.099	2.344	1.147
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		7.499	6.744	3.547
LOAN FUNDS
1] Secured Loans		12.895	15.285	12.532
2] Unsecured Loans		2.046	1.647	2.784
TOTAL BORROWING		14.941	16.932	15.316
DEFERRED TAX LIABILITIES		0.392	0.277	0.226
TOTAL		22.832	23.953	19.089
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.712	10.604	9.028
Capital work-in-progress		0.000	0.000	1.077
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9.934	11.022	15.214
	Sundry Debtors	14.047	13.618	11.012
	Cash & Bank Balances	0.428	1.748	1.264
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.846	1.241	1.976
Total Current Assets		26.255	27.629	29.466
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	12.145	11.761	17.447
	Other Current Liabilities	2.008	2.545	3.040
	Provisions	0.000	0.000	0.000
Total Current Liabilities		14.153	14.306	20.487
Net Current Assets		12.102	13.323	8.979
MISCELLANEOUS EXPENSES		0.018	0.026	0.005
TOTAL		22.832	23.953	19.089

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Turnover	88.368	55.785	66.417
		Other Income	NA	5.575	NA
		TOTAL	NA	61.360	NA
	EXPENSES
		TOTAL	NA	59.615	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		2.725	1.745	1.967
Less/ Add	DEPRECIATION/ AMORTISATION		1.602	1.455	1.394
	PROFIT BEFORE TAX		1.123	0.290	0.573
Less	TAX		NA	0.093	NA
	PROFIT AFTER TAX		NA	0.197	NA
	Earnings Per Share (Rs.)		NA	0.58	NA

Particulars	31.03.2012
Sales Turnover (Approximately)	72.500

Expected Sales (2012-13): Rs.100.000 Millions

The above information has been parted by Mr. Atul.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	0.32	NA
Net Profit Margin (PBT/Sales)	(%)	1.27	0.52	0.86
Return on Total Assets (PBT/Total Assets}	(%)	3.04	0.76	1.49
Return on Investment (ROI) (PBT/Networth)		0.15	0.04	0.16
Debt Equity Ratio (Total Liability/Networth)		3.88	4.63	10.09
Current Ratio (Current Asset/Current Liability)		1.86	1.93	1.44

LOCAL AGENCY FURTHER INFORMATION

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

WORKING RESULTS

The company has done exceedingly well during the year. The company earned a net profit (before tax) of Rs.1.123 Million as against Rs.0.290 Million in the previous year. The turnover of the company also increased to Rs.88.368 Millions as against Rs.55.785 million in the previous year. The directors are hopeful that the company will do even better in the current year.

TRADE REFERENCE:

· Chaoudhary Steel (Private) Limited

· Wheels India Limited

This form is for	Creation of charge
Corporate identity number of the company	U28910PB2003PTC025920
Name of the company	K E C FORGINGS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	G. T. Road, Khanna Side, Mandi Gobindgarh, District Fatehgarh Sahib, Sahib – 147301, Punjab, India vjg6700@yahoo.co.uk
Type of charge	Immovable Property Movable Property
Particular of charge holder	· Small Industries Development Bank of India SCO 145-146, First and Second Floor, Sector 17-C, Chandigarh – 160017, India vivekm@sidbi.in
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation, Declaration and Undertaking
Date of instrument Creating the charge	28.10.2009
Amount secured by the charge	Rs.3.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest Interests will be payable @ 11.5% pa with monthly rests, on the amount of the outstanding from time to time. Terms of Repayment Repayment in 54 monthly installments, First 53 installments of Rs.5.500 Millions each and last 54th installment of Rs.8.500 Millions commencing after 6 months from the date of first disbursement. Margin Nil Extent and Operation of the charge The charges as a first charge on the properties mentioned in item No.15. Others N.A.
Short particulars of the property charged	Extension of the first charge by way of hypothecation on all Company's movables (save and except stocks/book debts), present and future located at GT Road, Khanna Side, Mandi Gobindgarh, Punjab Extension of first charge in f/o SIDBI by way of equitable mortgage of lease hold rights of all immovable properties bearing (i) Khata No. 115/165, 7, 17/2, 18/1 Arji 7 Kanal 1 Marla (1/2 share) (ii) Khata No. 115/165, 7 Kittas 17/2(0-1), 18/1(7-0), Arji 7 Kanal 1 Marla (1/2 share) situated at Village Mughal Majra, Tehsil Amloh, District Fatehgarh Sahib, Punjab

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Electric Fittings

· Air Conditioner

· Pollution Control Equipment

· Furniture and Fixture

· Office Equipment

· Laboratory Equipment

· Car

· Computer

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.55.36
UK Pound	1	Rs.85.64
Euro	1	Rs.69.21

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		29

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.