MIRA INFORM REPORT

Report Date :

08.05.2012

IDENTIFICATION DETAILS

Name :	SHOEI FINISHING PRIVATE LIMITED (w.e.f. 30.10.1991)
Formerly Known As :	FINISHING FURNACE SYSTEMS (INDIA) PRIVATE LIMITED
Registered Office :	Gate No.118, Alandi-Markal Road, Village Dhangore, Tal-Khed, Khed – 412105, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.10.1991
Com. Reg. No.:	25- 063457
Capital Investment / Paid-up Capital :	Rs. 6.570 Millions
CIN No.: [Company Identification No.]	U29296MH1991PTC063457
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Industrial Furnaces
No. of Employees :	40 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 100000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company is under pressure. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
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. Samudra
Designation :	Marketing Manager
Contact No.:	91-9922947340
Date :	20.04.2012

LOCATIONS

Registered Office / Factory :	Gate No.118, Alandi-Markal Road, Village Dhangore, Tal-Khed, Khed – 412105, Maharashtra, India
Tel. No.:	91-2135-662900
Mobile No.:	91-9922947340 (Mr. Samudra)
Fax No.:	91-2135-232017
E-Mail :	accounts@shoeifinishing.com
Website :	http://www.shoefinising.com
Location :	Owned

DIRECTORS

As on 22.09.2011

Name :

Mr. Vijay Ambadas Sarode

Designation :

Director

Address :

Flat No.1, Sarala Camelia S.No. 132/1, Cosmopolitin Co - Op Soc. ITI Road, Aundh, Pune, 411007, Maharashtra, India

Date of Birth/Age :

11/03/1947

Date of Appointment :

03/10/1991

DIN No.:

00107838

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U29296MH1991PTC063457	SHOEI FINISHING PRIVATE LIMITED	Director	3/10/1991	3/10/1991	-	Active	NO
2	U29219PN2006PTC021973	ARCHIES EQUIPMENTS PRIVATE LIMITED	Director	7/02/2006	7/02/2006	-	Under Process of Striking off	NO
3	U29141PN2007PTC129715	SHOEI FURNACES (INDIA) PRIVATE LIMITED	Director	1/03/2007	1/03/2007	-	Under Process of Striking off	NO
4	U27320PN2007PTC129994	RISING SUN DIE CASTINGS PRIVATE LIMITED	Director	18/04/2007	18/04/2007	-	Active	NO

Name :

Mr. Chandrakant Sadashiv Kale

Designation :

Director

Address :

92, Sadashanti, Dhanukar Colony, Kothrud, Pune – 411029, Maharashtra, India

Date of Birth/Age :

04/09/1947

Date of Appointment :

21/12/1992

DIN No.:

01631281

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U29296MH1991PTC063457	SHOEI FINISHING PRIVATE LIMITED	Director	21/12/1992	21/12/1992	-	Active	NO
2	U29141PN2007PTC129715	SHOEI FURNACES (INDIA) PRIVATE LIMITED	Director	1/03/2007	1/03/2007	-	Under Process of Striking off	NO

Name :

Mr. Tsuyoshi Kajitani

Designation :

Director

Address :

C – 194, 3 Yamatehigashi 2 – Chome, Kayotanabe – Shi, Kyoto, Japan

Date of Birth/Age :

27/07/1945

Date of Appointment :

28/09/2005

Name :

Mr. Yashwant Shridhar Kulkarni

Designation :

Director

Address :

Hridhar Smruti 66 Ashok Nagar, Shivajinagar, Pune, 41100, Maharashtra, India

Date of Birth/Age :

10/09/1952

Date of Appointment :

20/06/2010

DIN No.:

02921756

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U27320PN2007PTC129994	RISING SUN DIE CASTINGS PRIVATE LIMITED	Director	30/09/2010	1/01/2010	-	Active	NO
2	U29296MH1991PTC063457	SHOEI FINISHING PRIVATE LIMITED	Director	30/09/2010	20/06/2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Samudra
Designation :	Marketing Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 22.09.2011

Names of Shareholders	No. of Shares
Vijay Ambadas Sarode	492750
Chandrakant Sadashiv Kal	32850
Shoei Mfg Company Limited, Japan	131400
Total	657000

Equity Share Break up (Percentage of Total Equity)

As on 22.09.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	22.00
Directors or relatives of Directors	80.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Industrial Furnaces

Products :

Particulars	Item Code No.:
Industrial Furnaces	841710

Imports :

Products :

Raw Material

Countries :

Germany, Japan

Terms :

Selling :

Cash and Credit (30-60 Days)

Purchasing :

L/C Cash and Credit (30-60 Days)

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Actual Production
Industrial Furnaces and its parts	Nos	282

Installed Capacity: Management is of the opinion that it is not feasible to ascertain the installed capacity

GENERAL INFORMATION

Customers :

· Wholesalers

· Retailers

· End Users

No. of Employees :

40 (Approximately )

Bankers :

The Cosmos Co-Operative Bank Limited ( Alandi Branch ), 269/270, Shaniwar Peth , Pune – 411030, Maharashtra, India

(Rs. in Millions)

Facilities :

Secured Loan	As on 31.03.2011	As on 31.03.2010
The Cosmos Co-operative Ban Limited
Term Loans	2.912	8.069
Working Capital Loan	0.00	16.700
Total	2.912	24.769
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Deposits from Shareholders	0.314	1.712
Deferred Sales Tax Loan (Interest Free)	4.295	5.086
Total	4.609	6.798
Note : 1. The term Loan is secured by mortgage of Company’s immovable property and first charge by way of hypothecation of all movable properties of the company including plant and machinery, machinery spares, tools and accessories both present and future. 2. Working Capital Loan is secured by first charge by way of hypothecation of whole of stock of raw materials, consumables, work in progress, finished goods, book debts. 3. The bank loans are guaranteed by the directors in their personal capacities.

Banking Relations :	--
Auditors :
Name :	Suryakant M Shah and Company Chartered Accountant
Address :	39-40, Chitrashala Bhavan 354 Narayan Peth, Laxmi Road, Pune – 411030, Maharashtra, India
PAN No.:	ADWPS9205Q
Associate Cancers:	Shoei Mfg company limited Rising Sun Die Castings Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Share	Rs.10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
657000	Equity Share	Rs.10/- each	Rs. 6.570 Millions

Note :

1. During the financial year 2006-07 the company subdivided the equity shares of Rs. 100 each into ten shares of Rs. 10 each.

2. 328500 Equity Shares of Rs. 10 each issued as bonus shares during the financial year 2006-07 by capitalization of accumulated profits.

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		6.570	6.570	6.570
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		20.314	22.493	45.935
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		26.884	29.063	52.505
LOAN FUNDS
1] Secured Loans		2.912	24.769	46.127
2] Unsecured Loans		4.609	6.798	7.601
TOTAL BORROWING		7.521	31.567	53.728
DEFERRED TAX LIABILITIES		2.331	3.806	4.066
TOTAL		36.736	64.436	110.299
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		23.053	36.492	63.602
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.100	0.100	0.100
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9.154	23.395	17.000
	Sundry Debtors	16.619	16.635	34.033
	Cash & Bank Balances	10.836	5.044	12.415
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.880	15.476	18.800
Total Current Assets		40.489	60.550	82.248
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	7.488	9.730	14.338
	Other Current Liabilities	19.418	10.653	9.006
	Provisions	0.000	12.340	12.340
Total Current Liabilities		26.906	32.723	35.684
Net Current Assets		13.583	27.827	46.564
MISCELLANEOUS EXPENSES		0.000	0.017	0.033
TOTAL		36.736	64.436	110.299

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	80.885	50.038	184.989
		Other Income	2.300	4.663	5.249
		TOTAL	83.185	54.701	190.238
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	86.988 (Including Depreciation)	55.721	178.420
	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION
Less/ Add	DEPRECIATION/ AMORTISATION
	PROFIT/LOSS BEFORE TAX		(3.803)	(1.020)	11.818
Less	TAX		(1.474)	(0.260)	4.826
	PROFIT/LOSS AFTER TAX		(2.329)	(0.760)	6.992
	EARNINGS IN FOREIGN CURRENCY		1.402	0.000	0.000
	Earnings/Loss Per Share (Rs.)		3.54	NA	NA

Particulars	31.03.2012
Sales Turnover (Approximately )	130.000

Expected Sales (2012.2013 ) : Rs. 200.000 Millions

The above information has been parted by Mr. Samudra – Marketing Manager

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(2.80)	(1.38)	3.67
Net Profit Margin (PBT/Sales)	(%)	(4.70)	(2.04)	6.38
Return on Total Assets (PBT/Total Assets}	(%)	(9.39)	(1.68)	14.36
Return on Investment (ROI) (PBT/Networth)		(0.14)	(0.03)	0.22
Debt Equity Ratio (Total Liability/Networth)		1.00	1.12	0.67
Current Ratio (Current Asset/Current Liability)		1.50	1.85	2.30

LOCAL AGENCY FURTHER INFORMATION

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	No
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	Yes
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	Yes
12) Profitability for last three years	Yes
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	No
18) Major customers	No
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	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

CONTINGENT LIABILITIES

1. Guarantees given by the bankers of the company for various purposes Rs. 18.289 Millions (Previous Year Rs. 2.044 Millions)

2. Company has given corporate guarantee and also created additional charge on its freehold land and building by way of mortgage as a security to the loans raised by the company in which directors are interested. Total loan outstanding as on 31^st March, 2011 for which company has given corporate guarantee and security is Rs. 18.234 Millions (Previous Year Rs. 7.202 Millions)

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U29296MH1991PTC063457
Name of the company	SHOEI FINISHING PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Gate No.118, Alandi-Markel Road, Village Dhangore, Tal-Khed, Khed – 412105, Maharashtra, India Email: devendracs@gmail.com
This form is for	Creation of charge
Type of charge	Immovable property
Particular of charge holder	Scheduled Co-Operative Bank, 269/270, Shaniwar Peth , Pune – 411030, Maharashtra, India Email: mandevazecs@vsnl.net
Nature of instrument creating charge	Composite Deed of Further Charge and Hypothecation Dated 09.08.2010
Date of instrument Creating the charge	09.08.2010
Amount secured by the charge	Rs. 10.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Composite Deed of Further Charge and Hypothecation Dated 09.08.2010 Terms of Repayment Period- 60 Months Margin 25% In Banks Favour Extent and Operation of the charge The charge shall continue to operate until the full repayment of loan by the company Others Facilty- term loan (machinery): Rs. 10.500 Millions given to rising sun die castings private limited
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Gat No. 118 Hissa No. 2A village Dhanore Tal. Khed Dist Pune and As More Particularly Described in Schedule I of The Composite deed

FIXED ASSETS :

· Land

· Building

· Plant and Machinery

· Electrical Installation

· Office Equipments

· Computers

· Vehicles

· Furniture and Fixtures

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.53.34
UK Pound	1	Rs.86.09
Euro	1	Rs.69.36

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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		30

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.