MIRA INFORM REPORT

Report Date :

28.05.2012

IDENTIFICATION DETAILS

Name :	RAHUL ION-TECH LIMITED
Registered Office :	A-46/1, Naraina Vihar, New Delhi – 110028, Delhi
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.08.2002
Com. Reg. No.:	116759
Capital Investment / Paid-up Capital :	Rs.14.250 Millions
CIN No.: [Company Identification No.]	U74999DL2002PLC116759
TAN No.: [Tax Deduction & Collection Account No.]	DELR09196F
PAN No.: [Permanent Account No.]	AACCR1993C
Legal Form :	A closely held Public Limited Liability Company
Line of Business :	Manufacturer and Trader of Leather Strap, Stainless Steel Strap, PVD Coating Buckles, Ion Coating Buckles, etc.
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 276476
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

INFORMATION PARTED BY

Name :	Mr. Satish Kumar
Designation :	Finance Manager
Contact No.:	91-9873156342
Date :	07.05.2012

LOCATIONS

Registered Office :	A-46/1, Naraina Vihar, New Delhi – 110028, Delhi, India
Mobile No.:	91-9873156305 (Mr. Manoj - Accoutant)
E-Mail :	Accounts.ritl@rahulindia.com
Website :	www.rahulindia.com
Location :	Owned
Factory 1 :	143, Udyog Kendra-1, Greater Noida, Noida – 201306, Uttar Pradesh, India
Factory 2 :	G-9, Sector 6, Noida, Uttar Pradesh, India
Factory 3 :	A/1, 68/2, Phase I, GIDC Estate, Bharuch, Gujarat, India

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Rajveer Singh Madhiyan
Designation :	Director
Address :	A-46/1, Naraina Vihar, New Delhi – 110028, Delhi, India
Date of Birth/Age :	13.01.1956
Date of Appointment :	20.08.2004

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	U74999DL2002PLC116759	RAHUL ION-TECH LIMITED	Managing director	31/03/2009	20/08/2004	-	Active	NO
2	U51909DL2008PTC175760	RAHUL CHAINS PRIVATE LIMITED	Director	24/03/2008	24/03/2008	-	Active	NO

Name :	Ms. Kaushalya Devi
Designation :	Director
Address :	A-46/1, Naraina Vihar, New Delhi – 110028, Delhi, India
Date of Birth/Age :	20.12.1958
Date of Appointment :	20.08.2004

Other Directorship:

Top of Form

Bottom of Form

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	U74999DL2002PLC116759	RAHUL ION-TECH LIMITED	Whole-time director	31/03/2009	20/08/2004	-	Active	NO
2	U51909DL2008PTC175760	RAHUL CHAINS PRIVATE LIMITED	Director	24/03/2008	24/03/2008	-	Active	NO

Name :	Mr. Robin Madhiyan
Designation :	Director
Address :	C-34, Sector33, Noida - – 201301, Uttar Pradesh, India
Date of Birth/Age :	10.09.1983
Date of Appointment :	20.08.2004

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	U74999DL2002PLC116759	RAHUL ION-TECH LIMITED	Whole-time director	01/01/2006	20/08/2004	-	Active	NO
2	U51909DL2008PTC175760	RAHUL CHAINS PRIVATE LIMITED	Director	24/03/2008	24/03/2008	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Satish Kumar
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Rajveer Singh Madhiyan	880500
Kaushalya Devi	261250
Robin Madhiyan	278250
Ram Prasad	2000
Charan Singh	1000
Pranveer Singh	1000
	1000
Total	1425000

AS ON 30.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Trader of Leather Strap, Stainless Steel Strap, PVD Coating Buckles, Ion Coating Buckles, etc.
Terms :
Selling :	Credit (30 days, 60 days)
Purchasing :	Credit (30 days, 60 days)

GENERAL INFORMATION

Suppliers :

Ajmani Chemicals

Customers :

· Timex Group India Limited

· Titan Industries

No. of Employees :

250 (Approximately)

Bankers :

Bank of Baroda, Noida

Facilities :

Cash Credit – Rs.50.000 Millions

SECURED LOAN	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Cash Credit Limit From Bank of Baroda (Against Hypothecation of Stocks and Personal Guarantee of the Directors)	41.540	35.671
HDFC Bank Car Loan	0.391	0.741
LIC Loan Against Policy No.253323644	5.458	5.458
LIC Loan Against Policy No.253759370	5.458	5.458
TOTAL	52.847	47.328
UNSECURED LOAN	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
From Directors	2.079	1.579
TOTAL	2.079	1.579

Banking Relations :	--
Auditors :
Name :	Jai Umesh Associates Chartered Accountant
Address :	D2/202, Krishna Apra, Royal Plaza, Commercial Belt, Alpha- I, Greater Noida, Noida – 201308, Uttar Pradesh, India
Control By Key Management Personel :	Rahul Chains Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Shares	Rs.10/- each	Rs.12.500 Millions
175000	Equity Shares Issued at a Premium	Rs.10/- each	Rs.1.750 Millions
	Share Application Money		Rs.2.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2012
Sales Turnover (Approximately)	200.000

Expected Sales (2012-2013) : Rs.250.000 Millions

The above information has been parted by Mr. Satish Kumar (Manager)

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		16.250	14.250	14.250
2] Share Application Money		0.000	0.000	1.000
3] Reserves & Surplus		52.869	32.080	25.123
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		69.119	46.330	40.373
LOAN FUNDS
1] Secured Loans		52.847	47.328	36.727
2] Unsecured Loans		2.079	1.579	2.000
TOTAL BORROWING		54.926	48.907	38.727
DEFERRED TAX LIABILITIES		7.244	6.769	6.339
TOTAL		131.289	102.006	85.439
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		65.680	54.927	51.597
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	1.500	1.500
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	35.924	24.450	14.893
	Sundry Debtors	24.515	27.948	15.211
	Cash & Bank Balances	16.797	5.308	1.022
	Other Current Assets	0.254	0.000	0.000
	Loans & Advances	20.622	10.072	10.307
Total Current Assets		98.112	67.778	41.433
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	20.427	16.091	5.458
	Other Current Liabilities	2.229	1.254	1.221
	Provisions	9.847	4.854	2.420
Total Current Liabilities		32.503	22.199	9.099
Net Current Assets		65.609	45.579	32.334
MISCELLANEOUS EXPENSES		0.000	0.000	0.008
TOTAL		131.289	102.006	85.439

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	206.824	120.401	89.041
		Other Income	0.000	0.000	0.000
		TOTAL (A)	206.824	120.401	89.041
Less	EXPENSES
		Purchase of Goods Traded in Raw Material Consumed	67.063	28.145	7.224
		Cost of Goods Sold	70.855	41.137	39.534
		Manufacturing Overheads	17.609	10.643	8.813
		Cost of Production / Goods Traded in Establishment Expenses	8.018	6.004	4.499
		Administrative Overheads	9.718	12.002	12.364
		Selling and Distribution Expenses	1.318	1.025	0.900
		Audit Remuneration	0.045	0.048	0.047
				99.004	73.381
		Increased / (Decreased) In Stock	(7.570)	(2.315)	(1.307)
		TOTAL (B)	167.056	96.689	72.074
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		39.768	23.712	16.967
Less	FINANCIAL EXPENSES (D)		5.089	4.839	4.617
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		34.679	18.873	12.350
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.566	3.297	3.027
	PROFIT BEFORE TAX (E-F) (G)		31.113	15.576	9.323
Less	TAX (I)		9.849	4.854	3.000
	PROFIT AFTER TAX (G-I) (J)		21.264	10.722	6.833
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		22.280	16.922	15.024
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	1.600	0.950
		Interim Final Dividend	0.000	3.334	3.334
		Differed Tax Assets / Liabilities	0.475	0.430	0.588
		Earlier Year Provision	0.000	0.000	0.061
	BALANCE CARRIED TO THE B/S		43.069	22.280	16.924
	Earnings Per Share (Rs.)		14.92	7.52	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	10.28	8.90	7.67
Net Profit Margin (PBT/Sales)	(%)	15.04	12.94	10.47
Return on Total Assets (PBT/Total Assets}	(%)	18.99	12.69	10.02
Return on Investment (ROI) (PBT/Networth)		0.45	0.34	0.23
Debt Equity Ratio (Total Liability/Networth)		1.26	1.53	1.18
Current Ratio (Current Asset/Current Liability)		3.02	3.05	4.55

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	Yes
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	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 involved in	--
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

FINANCIAL RESULTS

During the year the company has achieved a total turnover of Rs.206.823 Millions (Previous Year- Rs.120.400 Millions) with a net profit of Rs.21.263 Millions (Previous Year-Rs.10.721 Millions). The performance of the company is satisfactory as evident from the financial results.

FORM 8:

Corporate identity number of the company	U74999DL2002PLC116759
Name of the company	RAHUL ION-TECH LIMITED
Address of the registered office or of the principal place of business in India of the company	A-46/1, Naraina Vihar, New Delhi – 110028, Delhi, India
This form is for	Modification of charge
Type of charge	Book Debts Immovable Property Movable Property Floating Charge
Particular of charge holder	Bank of Baroda
Nature of instrument creating charge	Composite Hypothecation Agreement and Memorandum of Entry dated 31.05.2011 (2 Nos.)
Date of instrument Creating the charge	31/05/2011
Amount secured by the charge	Rs.75.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit - @ 3.50% above Base Rate i.e. 13.50% p.a. with monthly rests. Term Loan - I and II - @ 4.00% above Base Rate i.e. 14% p.a. with monthly rests. Terms of Repayment Cash Credit - Payable on demand. Term Loan - I - Repayable in 66 months including moratorium period of 6 months, subject to annual review. Term Loan - II - Term Loan is to be repaid in 60 monthly instalments of Rs. 0.225 Million each after completion of moratorium period of 6 months from the date of first disbursement. Interest charged in the account during the moratorium period and repayment period will be serviced separately. Margin Cash Credit - 25% for raw materials, stock in process, finished goods, stores and spares and packing materials and book debts upto 90 days. Term Loan - I - 38.17% Term Loan - II - 25.00% Extent and Operation of the charge 100% Others To secure all amounts payable under Cash Credit Limit of Rs. 50.000 Millions, Term Loan - I of Rs. 12.000 Millions, Term Loan -II of Rs. 13.500 Millions (with sub limit of FLC DA as sub limit of TL - II of Rs. 4.000 Millions) aggregating Rs. 75.500 Millions granted to the Company together with all interests, costs, charges, expenses etc.

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.
UK Pound	1	Rs.
Euro	1	Rs.

INFORMATION DETAILS

Information Gathered by :

Report Prepared by :

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10
PAID-UP CAPITAL	1~10
OPERATING SCALE	1~10
FINANCIAL CONDITION
--BUSINESS SCALE	1~10
--PROFITABILIRY	1~10
--LIQUIDITY	1~10
--LEVERAGE	1~10
--RESERVES	1~10
--CREDIT LINES	1~10
--MARGINS	-5~5
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL

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.