MIRA INFORM REPORT

Report Date :

09.03.2012

IDENTIFICATION DETAILS

Name :	SOUND CASTINGS PRIVATE LIMITED
Registered Office :	E-2 Shiroli Industrial Area, MIDC Shiye, Karveer, Kolhapur – 416022, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.10.1987
Com. Reg. No.:	11-045065
Capital Investment / Paid-up Capital :	Rs.100.000 Millions
CIN No.: [Company Identification No.]	U27310MH1987PTC045065
TAN No.: [Tax Deduction & Collection Account No.]	KLPS04566C
PAN No.: [Permanent Account No.]	AACCS5263N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Casting used for Automobile Industries.
No. of Employees :	500 (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 1600000
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.

INFORMATION PARTED BY

Name :	Mr. Shailesh
Designation :	Senior Manager
Contact No.:	91-230-2469762
Date :	06.03.2012

LOCATIONS

Registered Office/ Factory 1 :	E-2 Shiroli Industrial Area, MIDC Shiye, Karveer, Kolhapur – 416022, Maharashtra, India
Tel. No.:	91-230-2469762
Fax No.:	91-230-2468219
E-Mail :	info@soundscastings.com rk@soundcastings.com
Website :	www.soundscastings.com
Location :	Owned
Factory 2 :	C 10, Kagal-Hatkanangale, Five Star, MIDC, Kagal, Kolhapur – 416216, Maharashtra, India

DIRECTORS

As on 25.06.2011

Name :	Mr. Ravindra Krishnarao Kalkundri
Designation :	Whole-time director
Address :	Block No.2, Usha Enclave, Nimbalkar Colony, Kolhapur – 416003, Maharashtra, India
Date of Birth/Age :	10.03.1957
Date of Appointment :	03.01.1995
DIN No.:	00133285
Name :	Mr. Umesh Krishnaji Deshpande
Designation :	Whole-time director
Address :	Madhavi 821/2/5, Behind Circuit House, Tarabai Park, Kolhapur – 416003, Maharashtra, India
Date of Birth/Age :	14.06.1949
Date of Appointment :	10.11.1987
DIN No.:	00133293
Name :	Mr. Vilas Narayan Deshpande
Designation :	Whole-time director
Address :	Indira Narayan, Plot No. 8, Kasbekar Park, Kolhapur – 416003, Maharashtra, India
Date of Birth/Age :	02.01.1947
Date of Appointment :	20.10.1987
DIN No.:	00138127
Name :	Mr. Anand Vilas Deshpande
Designation :	Managing director
Address :	Indira Narayan, Plot No. 8, Kasbekar Park, Kolhapur – 416003, Maharashtra, India
Date of Birth/Age :	01.03.1972
Date of Appointment :	02.04.2003
DIN No.:	00138169
Name :	Mr. Nandkumar Shriram Wagh
Designation :	Director
Address :	1169/31, Eagle Residency, Row House No. 5, Kolapur – 416008, Maharashtra, India
Date of Birth/Age :	12.05.1944
Date of Appointment :	20.10.1987
DIN No.:	01439932
Name :	Mr. Abhijeet Vilas Deshpande
Designation :	Whole-time director
Address :	D-2, Suman Royal Green Filed, Behind Collector Office, Kolhapur – 416003, Maharashtra, India
Date of Birth/Age :	27.03.1976
Date of Appointment :	20.06.2007
DIN No.:	01472011

KEY EXECUTIVES

Name :	Mr. Shailesh
Designation :	Senior Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.06.2011

Names of Shareholders	No. of Shares
Nandkumar Shriram Wagh	1472800
Vilas Narayan Deshpande	1539960
Umesh Krishnaji Deshpande	2409800
Shubhada Vilas Deshpande	250000
Ravindra Krishnarao Kalkundri	766000
Sangeeta Ranganathrao Kanangalekar	12000
Shashank Suresh Wekhande	10000
Amruta Ravindra Kalkundri	24000
Mukund Rajaram Bhosekar	42800
Abhijeet Vilas Deshpande	1250000
Anand Vilas Deshpande	1500000
Anuradha Nandkumar Wagh joint with Makrand Nandkumar Wagh	196000
Archana Anand Deshpande	20000
Jayesh Umesh Deshpande	40000

Equity Share Break up (Percentage of Total Equity)

As on 25.06.2011

Category	Percentage
Directors or relatives of Directors	99.00
Other top fifty shareholders	1.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Casting used for Automobile Industries.

Products :

PRODUCT DESCRIPTION	ITC CODE NO.
73259910, 84099990, 84832000, 84836090, 87089900	Casting (Machined )

Exports :

Products :

Casting used for Automobile Industries

Countries :

Germany

Imports :

Products :

Raw Materials

Countries :

· Germany

· Japan

Terms :

Selling :

Cash/ Credit

Purchasing :

Cash/ Credit

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Actual Production
Unmachined Castings	Nos.	678698
	Nos.	7745
Machined Castings	Nos.	1289353
	Nos.	18857

1. The above production does not include any castings purchased from outside parties and processed in the factory

2. Licensed Capacity is not applicable.

3. Installed Capacity being technical matter is taken as certified by the Directors upon which the Auditors have relied.

4. Castings production of 7745 M. T. includes 6018 M. T. used as input for production of parts (previous year 4202 M. T.)

GENERAL INFORMATION

Suppliers :

Sesa Goa Limited

Customers :

Wholesalers and Retailers

· Mahindra and Mahindra

No. of Employees :

500 (Approximately)

Bankers :

State Bank of India, Shiroli, MIDC Branch, Kolhapur, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	380.213	352.825
Working capital loans banks secured	48.858	47.621
Loans taken for vehicles secured	0.276	1.002
Total	429.347	401.448
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans others unsecured	45.251	23.701
Total	45.251	23.701

Banking Relations :	--
Auditors :
Name :	Khadilkar Ranade and Limaye Chartered Accountants
Address :	Prabhakar Plaza, 333E, Station Road, Kolhapur – 416001, Maharashtra, India
PAN.:	AAGFK7705A
Sister Concerns :	Deshpande Automech Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 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		100.000	40.000	40.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		301.241	233.649	146.323
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		401.241	273.649	186.323
LOAN FUNDS
1] Secured Loans		429.347	401.448	186.023
2] Unsecured Loans		45.251	23.701	19.914
TOTAL BORROWING		474.598	425.149	205.937
DEFERRED TAX LIABILITIES		53.846	39.069	25.614
TOTAL		929.685	737.867	417.874
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		698.842	542.121	315.708
Capital work-in-progress		5.315	37.168	1.370
INVESTMENT		3.025	1.029	0.029
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	113.122	82.086	30.821
	Sundry Debtors	234.507	131.698	80.432
	Cash & Bank Balances	22.089	18.083	25.307
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	117.667	74.636	18.378
Total Current Assets		487.385	306.503	154.938
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	171.057	82.403	31.174
	Other Current Liabilities	30.477	23.143	13.778
	Provisions	63.348	43.408	9.219
Total Current Liabilities		264.882	148.954	54.171
Net Current Assets		222.503	157.549	100.767
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		929.685	737.867	417.874

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
SALES
	Income	1633.900	964.930	768.290
	Other Income	NA	10.206	NA
	TOTAL	NA	975.136	NA
PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		NA	201.782	161.272
PROFIT BEFORE TAX		188.245	139.232	94.628
TAX		61.937	47.226	35.049
PROFIT AFTER TAX		126.308	92.006	59.579
PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	134.787	81.218
APPROPRIATIONS
	Dividend with corporate tax thereon	NA	4.680	3.510
	Transfer to General Reserve	NA	4.000	2.500
BALANCE CARRIED TO THE B/S		NA	218.113	134.787
Earnings Per Share (Rs.)		14.17	11.50	14.89

Expected Sales (2011-12) : Rs.2000.000 Millions

The above information has been parted by Mr. Shailesh.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	9.43	NA
Net Profit Margin (PBT/Sales)	(%)	11.52	14.43	12.32
Return on Total Assets (PBT/Total Assets}	(%)	15.86	16.41	20.11
Return on Investment (ROI) (PBT/Networth)		0.47	0.51	0.51
Debt Equity Ratio (Total Liability/Networth)		1.84	2.09	1.39
Current Ratio (Current Asset/Current Liability)		1.84	2.06	2.86

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. in Millions)

PARTICULARS	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors	171.057	82.403	31.174
Total	171.057	82.403	31.174

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	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	No
12) Profitability for last three years	No
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	No
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

FINANCIALS

During the year, the Company achieved sales turnover of Rs.1633.900 Millions compared to Rs 964.900 Millions in the previous year - an increase of 69.32%. In quantitative terms also, the production during 2010-11 increased to 26599 MT from 18392 MT in the previous year - an increase of 45%. The balance increase in sales turnover is attributable to compensation given by customers towards increase in input costs and to value addition made by the company. The demand for the castings continued to be very good throughout the year from auto and tractor sectors. Overall the sales turnover was better than the early estimates of Rs.1300.000 Millions. In 2010-11 the profit after tax increased to Rs 126.300 Millions from Rs 92.000 Millions in the previous year. This is an increase of 37%. The increase in profit is mainly attributed to better capacity utilization. This being the first year of operation of High pressure moulding line (HPML, it’s capacity utilization was only 50% of installed capacity. New item development, initial training of workers and trials have led to increase in cost of production. Power charges continued to increase throughout the year and we could receive only partial compensation from the customers for the same.

TRADE REFERENCES

· Mahindra and Mahindra

· Sesa Goa Limited

FIXED ASSETS

· Land

· Building and Civil Construction

· Building Electrification

· Plant and Machinery

· Furniture and Fixtures

· Computers

· Office Equipments

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.50.57
UK Pound	1	Rs.79.57
Euro	1	Rs.66.50

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--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	YES
--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.