MIRA INFORM REPORT

Report Date :

09.05.2012

IDENTIFICATION DETAILS

Name :	RSM AUTOKAST LIMITED
Registered Office :	603 C Blockpioneer Complex, 1075 Avanashi Road, Coimbatore – 641018, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.01.1996
Com. Reg. No.:	18-006844
Capital Investment / Paid-up Capital :	Rs. 12.273 Millions
CIN No.: [Company Identification No.]	U02899TZ1996PLC006844
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacture of automotive components including Brake Drums, Hubs, Spring and Equalizer Brackets and Shackles, clutch Pressure Plates, Flywheels etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 570000
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.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	603 C Blockpioneer Complex, 1075 Avanashi Road, Coimbatore – 641018, Tamilnadu, India
Tel. No.:	91-422-6585908/6586908
Fax No.:	91-422-2248408
E-Mail :	office@rsmautokast.com marketing@rsmautokast.com rsmauto@vsnl.com
Website:	http://www.rsmautokast.com
Factory:	S.F.141, Kuppepalayam, S.S. Kulam (VIA) Coimbatore – 641107, Tamilnadu, India

DIRECTORS

As on 30.09.2011

Name :

Mrs. Kasturirangaian K

Designation :

Director

Address :

8-Post Office Road, Krishnasamy Nagar, Coimbatore – 641045, Tamilnadu, India

Date of Birth/Age :

10.07.1930

Date of Appointment :

12.01.1996

DIN No.:

00134212

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	U02899TZ1996PLC006844	RSM AUTOKAST LIMITED	Director	1/04/2011	12/01/1996	-	Active	NO

Name :

Mr. Ilango K

Designation :

Director

Address :

8-Post Office Road, Krishnasamy Nagar, Coimbatore – 641045, Tamilnadu, India

Date of Birth/Age :

23.08.1964

Date of Appointment :

12.01.1996

DIN No.:

00124115

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	U67120TZ1995PTC006215	KKR SECURITIES PRIVATE LIMITED	Director	14/06/1995	14/06/1995	-	Active	NO
2	U02899TZ1996PLC006844	RSM AUTOKAST LIMITED	Whole-time director	1/04/2011	12/01/1996	-	Active	NO
3	U37102TZ1998GAP008524	TAMILNADU ELECTRICITY CONSUMERS ASSOCIATION	Director	7/08/1998	7/08/1998	-	Active	NO
4	U45208TZ2004NPL010963	CODISSIA INDUSTRIAL INFRASTRUCTURE UPGRADATION SERVICES	Director	12/01/2005	12/01/2005	-	Under Process of Striking off	NO

Name :

Mrs. Kasthuri Rajinikanth

Designation :

Director

Address :

8-Post Office Road, Krishnasamy Nagar, Coimbatore – 641045, Tamilnadu, India

Date of Birth/Age :

12.05.1967

Date of Appointment :

12.01.1996

DIN No.:

00128232

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	U02899TZ1996PLC006844	RSM AUTOKAST LIMITED	Whole-time director	1/04/2011	12/01/1996	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
K. Kasturirangaian	100
K. Ilango	573550
K. Rajinikanth	573550
Manjula Ilango	30000
R. Chandini Subashree	30000
K. Nirmala	100
R. Rajeshwari	20000
Total	1227300

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacture of automotive components including Brake Drums, Hubs, Spring and Equalizer Brackets and Shackles, clutch Pressure Plates, Flywheels etc.
Product:	Automobile Spare Parts – Brake Drums

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	31.03.2011
Installed Capacity	Nos	200000
Actual Production	Nos	190005

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Small Industries Development Bank of India, Gowtham Centre, 1055/7, Avanashi Road, Coimbatore – 641018, Tamilnadu, India

Facilities :

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
SIDBI Term Loan (Furnace)	0.000	0.900
SIDBI Loan Under PCS Scheme	0.000	2.400
SIDBI Loand Foundry (ECTL)	56.349	80.153
SIDBI Loan- Bills Discounting	21.268	0.000
SIDBI Term Loan (Garanses Wind Turbine)	37.800	0.000
Total	115.417	83.453
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
K. Ilango	28.900	28.900
K. Kasturirangaian – HUF	7.635	14.635
K. Rajinikanth	69.630	63.230
K. Nirmala	1.000	0.400
Total	107.165	107.165

Banking Relations :	--
Auditors :
Name :	R Selvakumar Chartered Accountants
Address :	222, Avinashi Road, Coimbatore – 641018, Tamilnadu, India
PAN.:	ALWPS8480R
Associates :	Rangamma Steels and Malleable
	Rajinikanth Foundation

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
1227300	Equity Shares	Rs.10/- each	Rs. 12.273 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		12.273	12.273	12.273
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		132.152	81.962	56.318
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		144.425	94.235	68.591
LOAN FUNDS
1] Secured Loans		115.417	83.453	97.988
2] Unsecured Loans		107.165	107.165	105.485
TOTAL BORROWING		222.582	190.618	203.473
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		367.007	284.853	272.064
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		243.674	207.327	222.350
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	50.144	32.506	23.667
	Sundry Debtors	80.243	46.441	37.340
	Cash & Bank Balances	10.270	5.134	0.907
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	65.834	27.142	26.778
Total Current Assets		206.491	111.223	88.692
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	30.786	20.954	12.390
	Other Current Liabilities	13.890	2.099	20.871
	Provisions	38.482	10.644	5.717
Total Current Liabilities		83.158	33.697	38.978
Net Current Assets		123.333	77.526	49.714
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		367.007	284.853	272.064

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	456.167	326.851	228.321
		Other Income	54.388	30.860	20.967
		TOTAL (A)	510.555	357.711	249.288
Less	EXPENSES
		Raw Material Consumed	202.538	143.481	125.133
		Direct Expenses	128.571	99.615	82.225
		Administrative Expenses	60.748	40.129	19.265
		Selling and Distribution Expenses	11.240	9.962	11.937
		TOTAL (B)	403.097	293.187	238.560
Less	PROFIT/LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		107.458	64.524	10.728
Less	FINANCIAL EXPENSES (D)		8.571	8.698	8.508
	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		98.887	55.826	2.220
Less/ Add	DEPRECIATION/ AMORTISATION (F)		23.245	23.387	16.490
	PROFIT/LOSS BEFORE TAX (E-F) G)		75.642	32.439	(14.270)
Less	TAX (H)		33.017	10.039	(5.431)
	PROFIT/LOSS AFTER TAX (G-H) (I)		42.625	22.400	(8.839)
	Earnings/Loss Per Share (Rs.)		34.73	18.25	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	8.34	6.26	(3.54)
Net Profit Margin (PBT/Sales)	(%)	16.58	9.92	(6.25)
Return on Total Assets (PBT/Total Assets}	(%)	36.63	29.16	(16.08)
Return on Investment (ROI) (PBT/Networth)		0.52	0.34	(0.20)
Debt Equity Ratio (Total Liability/Networth)		0.57	0.35	0.56
Current Ratio (Current Asset/Current Liability)		2.48	3.30	2.27

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	No
9) Name of person contacted	No
10) Designation of contact person	No
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	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
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

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U02899TZ1996PLC006844
Name of the company	RSM AUTOKAST LIMITED
Address of the registered office or of the principal place of business in India of the company	603 C Blockpioneer Complex, 1075 Avanashi Road, Coimbatore – 641018, Tamilnadu, India Email: rsmauto@vsnl.com
This form is for	Creation of charge
Type of charge	· Immovable property · Movable property (not being pledge)
Particular of charge holder	Small Industries Development Bank of India, Gowtham Centre, 1055/7, Avanashi Road, Coimbatore – 641018, Tamilnadu, India Email: balachandran@sidbi.in
Nature of instrument creating charge	Declaration and Undertaking of mortgage.
Date of instrument Creating the charge	13.07.2011
Amount secured by the charge	Rs. 42.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 10% Terms of Repayment The loan shall be repaid in 42 monthly installments after moratorium of six months from the date of first disbursement. Margin Margin money is Rs.14.000 Millions Extent and Operation of the charge First charge by Hypothecation of all movables and creation of equitable mortgage of immovables in favour of SIDBI for Rs. 42.000 Millions under Direct Credit Scheme for installing and commissioning of one number 850 KW Wind turbine.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First charge by way of Hypothecation of all the movables and creation of equitable mortgage of Company property situated at SF.No.659, Sirukinaru Village, Dharapuram Taluk First charge by way of Hypothecation of all the movables and creation of equitable mortgage of Company property situated at SF.No.659, Sirukinaru Village, Dharapuram Taluk

FIXED ASSETS

· Land

· Plant and Machinery

· Air Compressor

· Air Conditioner

· Furniture

· Vehicle

· Currency Scanner

· Generator

· Office Equipments

· Printer

· Cycle

· Cell Phone

WEBSITE DETAILS

PROFILE

The is the flagship company of RSM Group, based in the Industrial City of Coimbatore, Tamilnadu, India, with diversified interests in Auto Components, Castings, Sheet metal components, Horticulture and Wind Power generation.

The core competency however lies in the capability to design and manufacture Brake Drums for a wide range of applications - a specialty, mastered over four decades of experience.

Almost its entire Power requirements for its manufacturing activities are met by its Windmills located in Tamil Nadu and Karnataka. The total installed generating capacity is over 6 MW.

The success of the group is its commitment to provide the best products and services at all times.

Improving standards in quality, technology and operating efficiency is RSM's continuous endeavor. Setting new standards and adopting innovative strategies are its focus for the future.

The buy-out of leading Brake Drum manufacturers - American Wheel Engineering Co., (AWECO) in the USA, augmented the production capacity to over 1000 MT of Brake Drums every month. Its products evince sustained interest in International and National exhibitions.

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.52.85
UK Pound	1	Rs.85.44
Euro	1	Rs.68.80

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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		48

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.