MIRA INFORM REPORT

Report Date :

10.03.2012

IDENTIFICATION DETAILS

Name :	PARANJAPE AUTOCAST PRIVATE LIMITED
Registered Office :	T – 141, Bhosari Industrial Area, Post Box No. 89, Pune – 411026, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	27.10.1980
Com. Reg. No.:	11-023353
Capital Investment / Paid-up Capital :	Rs.8.400 Millions
CIN No.: [Company Identification No.]	U27310PN1980PTC023353
TAN No.: [Tax Deduction & Collection Account No.]	PNEP07638B
PAN No.: [Permanent Account No.]	AABCP0318G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Raw Iron Cylinder Blocks, Fully Machined Cylinder Blocks, Aluminium Castings.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 1000000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well 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 DENIED BY

Name :	Mr. Birje
Designation :	Finance Manager
Date :	06.03.2012

LOCATIONS

Registered Office :	T – 141, Bhosari Industrial Area, Post Box No. 89, Pune – 411026, Maharashtra, India
Tel. No.:	91-20-27129170/ 27122358/ 27120187/ 27120188
Fax No.:	91-20-27120108
E-Mail :	info@paranjapeautocast.com corp.info@paranjapemetalshapers.com
Website :	http://www.paranjapeautocast.com
Factory 1 :	Plot No. H-19, MIDC, Satara - 415004, India
Tel. No.:	91-2162-244436 / 244438
Fax No.:	91-2162-244494
Factory 2 :	Plot No. J-15, Additional MIDC, Satara - 415004, India
Tel. No.:	91-2162-240351 / 240532 /240380
Fax No.:	91-2162-240350
Branches :	A/P Shirwal, Tal. Khandala, District Satara - 412801, India
Tel. No.:	91-2169-244393 / 244247
Fax No.:	91-02169-244226

DIRECTORS

As on 28.09.2011

Name :	Mr. Prasanna Narayan Paranjape
Designation :	Managing director
Address :	18.09.1959
Date of Birth/Age :	“Nirdhar” 41/19, Karve Nagar Society, Navsahyadri Chowk, Pune – 411052, Maharashtra, India
Date of Appointment :	08.11.1982
DIN No.:	00114889
Name :	Mr. Narayan Ganesh Paranjape
Designation :	Director
Address :	“Nirdhar” 41/19, Karve Nagar Society, Navsahyadri Chowk, Pune – 411052, Maharashtra, India
Date of Birth/Age :	21.10.1929
Date of Appointment :	04.03.1996
DIN No.:	00350969
Name :	Ms. Neha Prasanna Paranjape
Designation :	Whole-time director
Address :	“Nirdhar” 41/19, Karve Nagar Society, Navsahyadri Chowk, Pune – 411052, Maharashtra, India
Date of Birth/Age :	10.10.1963
Date of Appointment :	01.04.2011
DIN No.:	00115083

KEY EXECUTIVES

Name :	Mr. Birje
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2011

Names of Shareholders	No. of Shares
Narayan Ganesh Paranjape (HUF)	9652
Narayan Ganesh Paranjape	16478
Narayan Ganesh Paranjape joint with Prasanna Narayan Paranjape	16784
Meenal Sadanand Barwe	19427
Smita Shrikant Bhagwat	19421
Prasanna Narayan Paranjape joint with Neha Prasanna Paranjape	45810
Prasanna Narayan Paranjape (HUF)	7287
Neha Prasanna Paranjape	19598
Neeti Prasanna Paranjape	1801
Chinar Prasanna Paranjape	2402
Hipac Auto Cylinders Private Limited, India	340
Total	159000

Equity Share Break up (Percentage of Total Equity)

As on 28.09.2011

Category	Percentage
Bodies corporate	0.21
Directors or relatives of Directors	99.79
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Raw Iron Cylinder Blocks, Fully Machined Cylinder Blocks, Aluminium Castings.

Products :

PRODUCT DESCRIPTION	ITC CODE NO.
Raw Iron Cylinder Blocks	7325 99 10
Fully Machined Cylinder Blocks	8409 91 91
Aluminium Castings	7616 99 90

PRODUCTION STATUS AS ON 31.03.2011

CI Foundry :

Particulars	Unit	*Licensed capacity	*Installed Capacity	Actual good Production
Alloy iron castings & components	M.T.	12000	12000	8235

Aluminium Foundry:

Particulars	Unit	*Licensed Capacity	*Installed Capacity	Actual Production
Aluminium components such as cylinder heads, cylinder blocks I.C. engine parts, compressor parts, electric motor parts etc.	TONS NOS.	3100	2830	2724
Other aluminium castings and components manufactured by either LPDC or GDC or GSC process.	TONS NOS.	3100	2830	1837

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

State Bank of India, M.I.D.C. Satara Branch, Plot No. 52/3, Ganesh Chowk, Rahimatpur Road, Satara – 415004, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Cash Credit From State Bank of India, Satara Branch, Secured by hypothecation of stocks, debtors and personal security of directors	93.966	57.874
Cash Credit from State Bank of India, Pune secured by hypothecation of stocks, debtors and personal security of directors	(2.115)	4.730
SBI Term Loan Secured by hypothecation of plant and machinery and equipments and personal security of directors	51.300	62.502
SBI Term Loan -FCNB Secured by Hypothecation of Plant and Machinery and equipments and personal security of directors	52.235	0.000
Total	195.386	125.106
Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Sales Tax Defferal Loan Under Packages Scheme of Incentive 1993	34.266	34.266
Total	34.266	34.266

Banking Relations :	--
Auditors :
Name :	P. G. Bhagwat Chartered Accountants
Address :	Suit No. 102, Orchard, Dr. Pai Marg, Baner, Pune – 411045, Maharashtra, India
PAN.:	AAAGB0762E
Associates :	· Paranjape Metal Shapers Private Limited · Hipac Auto Cylinders Private Limited · P.D.Parkhi and Company
Relative of Key Management Personnel Related Party Transactions :	· Amol Cylinders

CAPITAL STRUCTURE

As on 28.09.2011

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
159000	Equity Shares	Rs.100/- each	Rs.15.900 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
90000	Equity Shares	Rs.100/- each	Rs.9.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
84000	Equity Shares	Rs.100/- each	Rs.8.400 Millions

NOTE:-

Out of the above 84,000 Equity Shares 46750 Equity Shares are issued as fully paid up bonus shares by way of 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		8.400	8.400	8.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		257.248	247.872	214.971
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		265.648	256.272	223.371
LOAN FUNDS
1] Secured Loans		195.386	125.106	81.573
2] Unsecured Loans		34.266	34.266	34.266
TOTAL BORROWING		229.652	159.372	115.839
DEFERRED TAX LIABILITIES		62.548	28.797	18.263
TOTAL		557.848	444.441	357.473
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		341.242	265.542	166.240
Capital work-in-progress		1.753	0.075	0.000
INVESTMENT		79.082	55.472	62.940
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	49.351	38.797	47.745
	Sundry Debtors	199.149	155.280	149.416
	Cash & Bank Balances	0.524	0.169	0.433
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	63.172	37.542	36.074
Total Current Assets		312.196	231.788	233.668
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	160.785	90.260	84.379
	Other Current Liabilities	0.496	0.446	0.403
	Provisions	16.906	19.624	20.663
Total Current Liabilities		178.187	110.330	105.445
Net Current Assets		134.009	121.458	128.223
MISCELLANEOUS EXPENSES		1.762	1.894	0.070
TOTAL		557.848	444.441	357.473

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1106.588	1020.309
		Other Income	23.302	8.668
		TOTAL (A)	1129.890	1028.977	908.995
Less	EXPENSES
		Materials	685.050	654.974
		Machining and Labour Charges	96.331	66.322
		Payment to Employees	92.582	90.137
		Power	82.405	74.121
		Other Expenses	52.367	43.170
		TOTAL (B)	1008.735	928.724	801.494
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		121.155	100.253	107.501
Less	FINANCIAL EXPENSES (D)		13.898	3.557	4.633
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		107.257	96.696	102.868
Less/ Add	DEPRECIATION/ AMORTISATION (F)		43.302	26.126	23.552
	PROFIT BEFORE TAX (E-F) (G)		63.955	70.570	79.316
Less	TAX (H)		44.751	24.385	27.839
	PROFIT AFTER TAX (G-H) (I)		19.204	46.185	51.477
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		44.361	40.460	29.767
Less	APPROPRIATIONS
		Proposed Dividend	8.400	10.500	10.500
		Dividend tax on Proposed Dividend	1.428	1.784	1.784
		General Reserve	21.500	30.000	28.500
	BALANCE CARRIED TO THE B/S		32.237	44.361	40.460
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods on FOB basis	9.188	18.391	13.505
	TOTAL EARNINGS		9.188	18.391	13.505
	IMPORTS
		Raw Materials	0.000	31.698	0.166
		Capital Goods	3.900	66.161	0.000
	TOTAL IMPORTS		3.900	97.859	0.166
	Earnings Per Share (Rs.)		228.62	550.00	613.00

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.69	4.49	5.66
Net Profit Margin (PBT/Sales)	(%)	5.78	6.92	NA
Return on Total Assets (PBT/Total Assets}	(%)	9.79	14.19	19.83
Return on Investment (ROI) (PBT/Networth)		0.24	0.28	0.35
Debt Equity Ratio (Total Liability/Networth)		1.53	1.05	0.99
Current Ratio (Current Asset/Current Liability)		1.75	2.10	2.22

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. in Millions)

PARTICULARS	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors for Goods supplied	121.174	52.770	43.859
Sundry Creditors for expenses and other items	39.611	37.490	40.520
Total	160.785	90.260	84.379

Performance for the year 2009-10

C.I. Foundry

i)

	2009-2010	2008-2009	% change
Production - In tons - In nos.	8,235 3,888,292	7,928 3,264,784	4 19
Sales - In tons - In nos.	8,232 3,887,132	7,937 3,265,904	4 19

ii) The 2W market improved substantially from around August 2009. This has resulted in overall growth of the 2W Industry. The growth % has been higher for Bajaj Auto with the successful launch of new Discover motorcycle. This motorcycle and new scooters launched by Yamaha and Suzuki require aluminium cylinder blocks which are outside the scope of supply of the Company.

iii) Demand from Concentric Pumps, Cummins India and Cummins UK substantially reduced during 2009-10 as compared to the previous year. The demand from Cummins India has started to revive and they expect increase in the current year.

iv) Certain new products for Transmission parts and Hydraulic components for automobile industry were introduced during the year.

Aluminium Foundry

i)

	2009-2010	2008-2009	% change
Production - in tons	2,724	1,837	48
Production - in nos.
Cylinder Heads	1,054,134	846,219	25
Others	1,332,543	324,453	311
Total	2,386,677	1,170,672	104
Sales - in tons	2,724	1,837	48
Sales - in nos.
Cylinder Heads	1,054,134	846,219	25
Others	1,332,543	324,453	311
Total	2,386,677	1,170,672	104

ii) Supplies of cylinder heads to both Bajaj Auto and especially Honda Motorcycle and Scooter India have increased during the year.

iii) New product of Pipe Inlet was successfully developed and commercial supplies to HMSI are being made since April 2009.

Wind Energy Project.

(i) The total generation of Wind energy at Matrewadi, Taluka Patan, Dist. Satara. During 2009-10 was 424,325 kwh as compared to 455,203 kwh during the previous year.

(ii) The first two machines, each of 800 KW, totalling 1.6 MW were installed at Jodhpur in Rajasthan in Marchf09. These machines were not working to full capacity during April - July'09 since various trial runs and development initiatives were in progress.

Balance 2 machines, each of 800 KW, totalling 1.6 MW were installed at Jodhpur in Rajasthan in Sept/09. Various trials and settings were done in Ocf09 and these machines have been running successfully since Nov'09.

The generation from the above 4 machines was 3,378,920 kwh during 2009¬10. This generation is expected to be 6,000,000 kwh during 2010-11.

Prospects for the year 2010-11

During April and May'10, sales in the Cast Iron business have been 1440 tons as compared to 1,088 tons in the corresponding period of the previous year.

During April and May'10, Sales in the Aluminium business has been 481 tons compared to 313 tons in the corresponding period of the previous year.

The figures in the first 2 months of the current year are not strictly comparable to the previous year since there was a planned production stoppage for nearly one week in April 2009 to facilitate switch over to new ERP system of SAP.

Bankers Charges Report as per Registry

Corporate identity number of the company	U27310PN1980PTC023353
Name of the company	PARANJAPE AUTOCAST PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	T – 141, Bhosari Industrial Area, Post Box No. 89, Pune – 411026, Maharashtra, India Email : info@paranjapeautocast.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90088965
Type of charge	Immovable property
Particular of charge holder	State Bank of India, M.I.D.C. Satara Branch, Plot No. 52/3, Ganesh Chowk, Rahimatpur Road, Satara – 415004, Maharashtra, India Email : kamalax_saraf@hotmail.com
Nature of instrument creating charge	Memorandum for recording extension of mortgage by deposit of title deeds covering enhanced limits and/or creation of equitable mortgage on additional properties for existing limits and enhanced limit and additional facilities
Date of instrument Creating the charge	03.03.2010
Amount secured by the charge	Rs.162.900 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per sanction terms Terms of repayment As per sanction terms Margin As per sanction terms Extent and operation of the charge As per sanction terms
Short particulars of the property or asset(s) charged (including complete address and location of the property)	A first charge by way of hypothecation of the borrowers entire goods, movables and other assets present and future including documents of title to goods and other assets, such as book-debts, outstanding moneys, receivables, including receivables by way of cash assistance and/or cash incentives under the cash incentive scheme or any other scheme, claims, including claims by way of refund of customs/excise duties under the duty drawback credit scheme, or any other scheme bills, invoices, documents, contracts, insurance policies, guarantees, engagements, securities, investments and rights uncalled capital and all machinery present and future of such form satisfactory to the bank. Machinery such as : shell moulding machine, shell core shooter, short blasting machine, hack sand machine, carbide impriation machine, slam less induction furnace, dg set-1380kva, dual track furnace, spectometer machine etc.
Date of instrument modifying the charge	30.03.2009
Particulars of the present modification	Now by the present modification dated 3.3.2010 the company created an extension of charge by way of an equitable mortgage by deposit of title deeds over the immovable properties created earlier on 24.11.2005 term loan facility of Rs. 42.500 Millions extended to secure the additional term loan facility of Rs. 120.400 Millions thus the total aggregate to Rs. 162.900 Millions the details of the immovable properties situated at J-15 and J-16, Additional Satara Industrial Area, Satara, Maharashtra, India

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Intangible Assets (Software)

· Furniture and Fixture and Dead Stock

· Vehicles

· Electrical Installation

· 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.50.02
UK Pound	1	Rs.79.01
Euro	1	Rs.66.18

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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.