MIRA INFORM REPORT

Report Date :

06.03.2012

IDENTIFICATION DETAILS

Name :	GUJARAT FORGINGS LIMITED
Registered Office :	Aji Industrial Estate P.D.T/C Road, Near Edijay Industries, Rajkot – 360003, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	04.06.1974
Com. Reg. No.:	04-002539
Capital Investment / Paid-up Capital :	Rs.6.000 Millions
CIN No.: [Company Identification No.]	U27100GJ1974PLC002539
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Casting
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 680000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an old and well established company having satisfactory track records. 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 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 (General Details)

Name :	Mr. Dinesh
Designation :	Purchases Manager
Contact No.:	91-281-2384137
Date :	02.03.2012

LOCATIONS

Registered/ Head Office/ Manufacturing Unit :	Aji Industrial Estate P.D.T/C Road, Near Edijay Industries, Rajkot – 360003, Gujarat, India
Tel. No.:	91-281-2384137/ 2387750/ 2387752/ 2389348
Fax No.:	91-281-2387751
E-Mail :	info@fieldmarshalengine.com purchase1@gflfoundry.com info@fieldmarshalengine.com
Website :	http://www.gflfoundry.com http://www.fieldmarshalengine.com
Location :	Owned
Factory :	637/P, Behind Day Light Ceramics Old Ganjiwad, Rajkot – 360003, Gujarat, India
Tel. No.:	91-281-2384137
Company Division Office :	Spare Parts Division 10, Bhakti Nagar Station Plot, Rajkot – 360002, Gujarat, India Tel/ Fax No.: 91-281-2461744 Email : spares@fieldmarshalengine.com Centrifugal Pump Division “Sanjay” Commercial Complex, 1^st Floor, Shop No.107/108, Rajputpara Main Road, Rajkot – 360001, Gujarat, India Tel/ Fax No.: 91-281-2235397 Email : mc@fieldmarshalengine.com
Branch Offices :	Located at: · Bangalore · Secunderabad

DIRECTORS

(AS ON 23.09.2010)

Name :	Mr. Arvind Chhaganbhai Patel
Designation :	Managing Director
Address :	Flat No.42, AMI Apartment, Opposite Girnar Cinema, Rajkot – 360001, Gujarat, India
Date of Birth/Age :	20.05.1957
Date of Appointment :	05.07.1976
DIN No.:	00006083
Name :	Mr. Hemang Arvind Kansagara
Designation :	Whole Time Director
Address :	Flat No.42, AMI Apartment, Opposite Girnar Cinema, Rajkot – 360001, Gujarat, India
Date of Birth/Age :	17.11.1981
Date of Appointment :	20.11.1999
DIN No.:	00006035
Name :	Mr. Kina Arvind Patel
Designation :	Director
Address :	Flat No.42, AMI Apartment, Opposite Girnar Cinema, Rajkot – 360001, Gujarat, India
Date of Birth/Age :	30.08.1961
Date of Appointment :	01.09.1989
DIN No.:	00006092
Name :	Mr. Shikha Hemang Kansagara
Designation :	Director
Address :	Flat No.42, AMI Apartment, Opposite Girnar Cinema, Rajkot – 360001, Gujarat, India
Date of Birth/Age :	20.02.1985
Date of Appointment :	27.08.2009
DIN No.:	02112462

KEY EXECUTIVES

Name :	Mr. Dinesh
Designation :	Purchases Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 23.09.2010)

Names of Shareholders	No. of Shares
Arvind Chhaganbhai Patel	28940
Savitaben Chhaganlal Patel	1
Kina Arvind Patel	16962
Hemang Arvind Kansagara	10072
Arvind Chhaganbhai Patel (HUF)	4000
Shikha Hemang Kansagara	18
Jayantilal R. Patel	7
Total	60000

(AS ON 30.09.2010)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	93.33
Other top fifty shareholders	6.67
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Casting.

Products :

Products Description	Item code no
I.C. Engine	84089010
Diesel Generating Set	85021100
Power Driven Centrifugal Pump	84137010
Other article Iron Casting	73251000

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Suppliers :

· Shree Ganesh Enterprises

Customers :

Wholesalers and Retailers

· Power Build Limited

No. of Employees :

250 (Approximately)

Bankers :

· Corporation Bank

Main Branch, “Nijanand” Dhebar Road, Rajkot – 360001, Gujarat, India

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
(Including Interests accrued and due) From Corporation Bank
Cash Credit (Against Hypothecation of Stock and Book Debts)	36.084	59.152
Overdraft Account (Against Pledge of Fixed Deposits)	102.833	122.724
From Indusind Bank Limited
Overdraft Account (Against Pledge of Key Man LIC Policy)	69.691	78.578
Total	208.608	260.454
Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From Directors	20.000	21.000
Total	20.000	21.000

Banking Relations :	--
Auditors :
Name :	M J. Rindani and Associates Chartered Accountant
Address :	205, Trade Center, Sardar Nagar, Main road, Rajkot – 360001, Gujarat, India Rajkot, Gujarat, India
PAN No.:	AADFM6993K

CAPITAL STRUCTURE

(AS ON 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
60000	Equity Share	Rs.100/- each	Rs.6.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
60000	Equity Share	Rs.100/- each	Rs.6.000 Millions

NOTE:

(Of which 40000 Equity shares of Rs.100/- have been issued as fully paid up Bonus shares by Capitalisation of General Reserve)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		6.000	6.000	6.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		164.062	138.281	147.625
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		170.062	144.281	153.625
LOAN FUNDS
1] Secured Loans		208.608	260.454	234.162
2] Unsecured Loans		20.000	21.000	24.400
TOTAL BORROWING		228.608	281.454	258.562
DEFERRED TAX LIABILITIES		5.084	5.745	6.364
TOTAL		403.754	431.480	418.551
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		94.743	101.293	104.982
Capital work-in-progress		0.334	0.334	0.334
INVESTMENT		29.440	15.240	6.500
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	102.971	97.184	89.719
	Sundry Debtors	61.400	51.034	37.566
	Cash & Bank Balances	229.834	216.678	216.029
	Other Current Assets	4.063	3.911	3.467
	Loans & Advances	73.748	87.080	59.030
Total Current Assets		472.016	455.887	405.811
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	113.744	72.679	60.165
	Other Current Liabilities	40.948	23.553	26.424
	Provisions	38.087	45.042	12.487
Total Current Liabilities		192.779	141.274	99.076
Net Current Assets		279.237	314.613	306.735
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		403.754	431.480	418.551

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	858.981	570.086	454.939
		Other Income	27.960	23.252	16.468
		TOTAL (A)	886.941	593.338	471.407
Less	EXPENSES
		Increase/(Decrease) in Stock	(8.173)	(1.895)	(1.909)
		Material Consumed	650.758	423.821	334.761
		Cost of Traded Goods sold	3.700	2.481	3.599
		Manufacturing Expenses	62.603	41.503	28.014
		Administrative and other Expenses	49.325	42.053	41.256
		Selling and Distribution Expenses	26.844	14.945	15.353
		TOTAL (B)	785.057	522.908	421.074
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		101.884	70.430	50.333
Less	FINANCIAL EXPENSES (D)		22.904	33.909	22.328
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		78.980	36.521	28.005
Less/ Add	DEPRECIATION/ AMORTISATION (F)		12.996	13.930	14.169
	PROFIT BEFORE TAX (E-F) (G)		65.984	22.591	13.836
Less	TAX (H)		22.339	8.731	8.217
	PROFIT AFTER TAX (G-H) (I)		43.645	13.860	5.619
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		116.930	127.661	122.095
Less	APPROPRIATIONS
		Transfer to General Reserve	4.364	1.386	0.000
		Interim Dividend Paid	15.000	20.100	0.000
		Corporate Tax on Dividend	2.863	3.105	0.053
	BALANCE CARRIED TO THE B/S		138.348	116.930	127.661
	EARNINGS IN FOREIGN CURRENCY		NA	NA	29.222
	Earnings Per Share (Rs.)		727.42	231.00	93.65

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.92	2.34	1.19
Net Profit Margin (PBT/Sales)	(%)	7.68	3.96	3.04
Return on Total Assets (PBT/Total Assets}	(%)	11.64	4.05	2.71
Return on Investment (ROI) (PBT/Networth)		0.39	0.16	0.09
Debt Equity Ratio (Total Liability/Networth)		2.48	2.93	2.33
Current Ratio (Current Asset/Current Liability)		2.45	3.23	4.10

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2010	31.03.2009	31.03.2008
	(Rs. In Millions)
Sundry Creditors
- For Manufactured Goods	107.882	72.679	58.343
- For Capital Goods and Expenses	5.862	0.000	1.822
Total	113.744	72.679	60.165

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	No
Profitability for last three years	No
Reasons for variation <> 20%	No
Estimation for coming financial year	No
Capital in the business	No
Details of sister concerns	-----
Major Suppliers	Yes
Major Customers	Yes
Payments Terms	Yes
Export/ Imports Details (If applicable)	-----
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	-----

OPERATION OF THE COMPANY:

FOUNDRY DIVISION:

The company are to report that the foundry division of the Company has improved Its financial performance in terms of turnover of the Company. The sale of the foundry division during the year 2008-09 was Rs.59.244 Millions as compared to the previous year's sale of Rs. 51.816 Millions. It shows the increase in turnover of around 15% in the foundry division. However due to the reasons beyond the control of the management, the Company has suffered the loss during the year under report in foundry division.

DIESEL ENGINES DIVISION

The core division of the Company being the diesel engine manufacturing continued to perform well The turnover of Company of high speed diesel engines and centrifugal pumping sets was Rs. 739.700 Millions as against the sale of Rs. 419.300 Millions during the in the previous year. Thus there was the growth of around increase of around 50% in turnover of the division. This division has also generated the higher profit as compared to previous year's profits.

OVERALL PERFORMANCE

The Company are of the opinion that the Company's overall performance remained quiet satisfactory in view of the figures of sales and profits of the Company as highlighted under the head financial results. The necessary quantitative details are given in Note No, 12 of the Notes on Accounts which Form integral pan of the financial statements,

FUTURE OUTLOOK

The Company entered into an agreement with The Automotive Research Association of India (ARAI), Pune for the design, development and optimization of a bank diesel genset engines to meet stipulated Euro II emission norms. Over a period of time the Company would improve the quality of the gensets to meet the stipulated norms from which the management expects the higher turnover In future. The directors have taken a serious note of the loss suffered by the foundry division and assure you that they will take remedial measures. The core area of business for the Company is diesel engines division for which the management will take all the necessary actions to increase its turnover and profitability. Thus the management of the company expects to achieve the better financial results in the current year 2010-11.

TRADE REFERENCE:

· Shree Ganesh Enterprises

· Power Build Limited

FIXED ASSETS:

· Building

· Factory Land

· Plant and Machinery

· Electric Fittings

· Office Equipment

· Vehicles

· Computers

· MISC Assets

· Pattern

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] 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	7
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	6
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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.