MIRA INFORM REPORT

Report Date :

05.03.2012

IDENTIFICATION DETAILS

Name :	FLAWLESS CASTINGS PRIVATE LIMITED
Registered Office :	D-22, MIDC, Shiroli, Kolhapur – 416122, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.04.2010
Com. Reg. No.:	25-136130
Capital Investment / Paid-up Capital :	Rs.19.293 Millions
CIN No.: [Company Identification No.]	U27310PN2010PTC136130
TAN No.: [Tax Deduction & Collection Account No.]	KLPF00179E
PAN No.: [Permanent Account No.]	AABCF5105D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of C I Castings.
No. of Employees :	60 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 90000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject has been takenover the running business of Suri Foundry and Engineering Company, a proprietory concern started in the year 1983. It is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported 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.

INFORMATION PARTED BY

Name :	Mr. Bhosale
Designation :	Accounts Department
Contact No.:	91-230-2468319
Date :	03.03.2012

LOCATIONS

Registered Office/ Factory :	D-22, MIDC, Shiroli, Kolhapur – 416122, Maharashtra, India
Tel. No.:	91-230-2468319/ 9553/ 9554
Fax No.:	91-230-2469554
E-Mail :	snflawless@gmail.com pjoshi30@rediffmail.com ksnair@flawlesscastings.com joy@flawlesscastings.com saroj@flawlesscastings.com amrutparakh@rediffmail.com
Website :	http://www.falawlesscastings.com
Location :	Leased

DIRECTORS

(AS ON 20.10.2011)

Name :	Mr. Sethumadhavan Raman Nair
Designation :	Director
Address :	1156, Manik Chambers Sykes Extension, Kolhapur – 416001, Maharashtra, India
Date of Birth/Age :	10.04.1946
Date of Appointment :	21.04.2010
DIN No.:	03023170
Name :	Mr. Joy Sethu Nair
Designation :	Director
Address :	1156, Manik Chambers Sykes Extension, Kolhapur – 416001, Maharashtra, India
Date of Birth/Age :	13.01.1984
Date of Appointment :	21.04.2010
DIN No.:	03023194

KEY EXECUTIVES

Name :	Mr. Bhosale
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 20.10.2011)

Names of Shareholders	No. of Shares
Sethumadhavan Raman Nair	192528
Joy Sethu Nair	400
Total	192928

(AS ON 21.10.2011)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of C I Castings.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Qty.
Actual Production	Tons	1186.00 per annum

GENERAL INFORMATION

No. of Employees :

60 (Approximately)

Bankers :

· State Bank of India

Shiroli MIDC Branch, CFC Building, Shiroli MIDC, Kolhapur – 416122, Maharashtra, India

Facilities :

Secured Loans	31.03.2011 (Rs. In Millions)
A. Term Loans
State Bank of India Swift Car Loan (A/c No.30537966005) (Secured by Hypothecation of Vehicles)	0.259
State Bank of India Skoda Car Loan (A/c No.30858955554) (Secured by Hypothecation of Vehicles)	0.356
B. Cash Credit A/c No.31460867659 (Secured by equitable mortgage of Factory land and building at Plot No. D-22, MIDC, Shiroli owned by the company along with inventories, book debts and proposed, present and future set of Machineries.
Cash	2.215
Total	2.830
Unsecured Loans	31.03.2011 (Rs. In Millions)
Sethumadhavan Raman Nair	2.431
Total	2.431

Banking Relations :	--
Auditors :
Name :	S. S. Powar and Associates Chartered Accountant
Address :	596, E Parag Commercial Arcade, Bhaskarrao Jadhav Chowk, Shahupuri, Kolhapur – 416001, Maharashtra, India
PAN No.:	AAZPP6134F

CAPITAL STRUCTURE

(AS ON 20.10.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Share	Rs.100/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
192928	Equity Share	Rs.100/- each	Rs.19.293 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		19.293
2] Share Application Money		0.000
3] Reserves & Surplus		3.273
4] (Accumulated Losses)		0.000
NETWORTH		22.566
LOAN FUNDS
1] Secured Loans		2.830
2] Unsecured Loans		2.431
TOTAL BORROWING		5.261
DEFERRED TAX LIABILITIES		0.069
TOTAL		27.896
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9.632
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.001
	Sundry Debtors	17.224
	Cash & Bank Balances	0.104
	Other Current Assets	1.485
	Loans & Advances	2.540
Total Current Assets		25.354
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	3.886
	Other Current Liabilities	2.046
	Provisions	1.373
Total Current Liabilities		7.305
Net Current Assets		18.049
MISCELLANEOUS EXPENSES		0.215
TOTAL		27.896

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011
	SALES
		TOTAL (A)	61.137
Less	EXPENSES
		TOTAL (B)	53.899
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		7.238
Less	FINANCIAL EXPENSES (D)		1.172
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6.066
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.294
	PROFIT BEFORE TAX (E-F) (G)		4.772
Less	TAX (H)		1.499
	PROFIT AFTER TAX (G-H) (I)		3.273
	Earnings Per Share (Rs.)		16.96

KEY RATIOS

PARTICULARS		31.03.2011
PAT / Total Income	(%)	5.35
Return on Total Assets (PBT/Total Assets}	(%)	13.64
Return on Investment (ROI) (PBT/Networth)		0.21
Debt Equity Ratio (Total Liability/Networth)		0.56
Current Ratio (Current Asset/Current Liability)		3.47

LOCAL AGENCY FURTHER INFORMATION

SURI FOUNDRY AND ENGINEERING COMPANY

(PROPRIETORSHIP CONCERN)

Particulars	31.03.2010
Sales Turnover (Approximately)	80.000

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011 (Rs. In Millions)
Sundry Creditors	3.886
Total	3.886

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 three years	Yes
Profitability for last three years	No
Reasons for variation <> 20%	No
Estimation for coming financial year	No
Capital in the business	Yes
Details of sister concerns	No
Major Suppliers	No
Major Customers	No
Payments Terms	Yes
Export/ Imports Details (If applicable)	No
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	No
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	-----

RESULTS OF OPERATIONS:

The company was formed by taking over the proprietory concern M/s Suri Foundry and Engineering Company. This was the first financial year of the company and company achieved total income of Rs.61.137 Millions and Net profit after tax of Rs.3.273 Millions. The results were for the period 21^st April 2010 to 31^st March 2011, The results were as per the targets fixed by the Board. Directors are confident to achieve good results in future.

FIXED ASSETS:

· Factory and Other Building

· Office Building

· Plant and Machinery, Moulds, Premises etc.

· Vehicles

· Office Equipment

· Furniture and Fixture

· 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.49.35
UK Pound	1	Rs.78.68
Euro	1	Rs.65.63

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	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		43

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.