MIRA INFORM REPORT

Report Date :

05.11.2012

IDENTIFICATION DETAILS

Name :	PRO-FLANGE LIMITED
Registered Office :	130 Vondrau Drive, Cambridge, Ontario N3E 1B8
Country :	Canada
Date of Incorporation :	18.03.2003
Legal Form :	Corporation – Profit
Line of Business :	Manufacturer and supplier of stainless steel, chrome, and large diameter carbon flanges and fittings for industries throughout Canada and the world.
No. of Employees :	25

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
Canada	A1	A1

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

CANADA - ECONOMIC OVERVIEW

As an affluent, high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and affluent living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its great natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economiccrisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada''s major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector''s tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010 and 2011 and plans to balance the budget by 2015. In addition, the country''s petroleum sector is rapidly becoming an even larger economic driver with Alberta''s oil sands significantly boosting Canada''s proven oil reserves, ranking the country third in the world behind Saudi Arabia and Venezuela.

Source : CIA

Company name and address

Company name: PRO-FLANGE LIMITED

Address: 130 Vondrau Drive, Cambridge, Ontario N3E 1B8 - Canada

Telephone: +1 519-653-4300

Fax: +1 519-740-0673

Website: www.proflange.com

Corporate ID#: ON-0002024117

State: Ontario

Judicial form: Corporation – Profit

Date incorporated: 03-18-2003

Stock: -

Value: -

Name of manager: Janak HANDA

ACTIVITIES & OPERATIONS

History:

Business started under the name of PRO-FLANGE INC. incorporated in Ontario on March 2nd, 1996 under ID#ON-0001175107, merged into PRO-FLANGE LIMITED on March 18, 2003.

IST

Business:

The Company is a licensed Canadian manufacturer and supplier of stainless steel, chrome, and large diameter carbon flanges and fittings for industries throughout Canada and the world. Pro-Flange is committed to providing customers with quality products and professional handling throughout the process.

The Company manufactures Stainless Steel & Chrome Alloy Flanges, Stainless Steel Fittings, Line Blank flanges, Carbon flanges, and related products.

The Company has experience on export to the U.S., Saudi Arabia, UAE,Turkey, and other countries.

Suppliers include:

SUPERLATIVE ENGINEERING PVT LTD

b-8/4, Sarvodaya co-op. hsg.soc Ltd n.i.b.m Road, Kondhwa, Pune 411 048 India

HILTON METAL FORGING LTD

701, Palm Spring, Link Road, Malad, Mumbai, 400064, India

Staff: 25

Operations & branches:

At the headquarters, we find a factory, warehouse and office, on 43,000

sq. feet, owned.

SHAREHOLDERS & MANAGERS

Shareholders:

This is a private company.

Management:

Janak HANDA is the COO.

He joined the Company in February 2007

Graduated from the University of Toronto with a Bachelor of Arts (B.A.), Economics, Political Science.

As far as we know, he is not involved in other local corporations.

Subsidiaries

And partnership: None

FINANCIALS

In Canada, privately held corporations are not required to publish any financials.

On a direct call, nobody was available to answer our questions.

We sent a fax but no answer received.

Outside sources (bank) gave estimate sales for year 2011 in the range of

CAD 6,500,000=

The business is said to be profitable.

Banks: Scotia Bank

Cambridge, Ontario

LEGAL FILINGS

Legal filings & complaints:

As of today date, there is no legal filing pending with the Courts.

Secured debts summary: None

COMPANY CREDIT HISTORY

Trade references:

Date reported: October 2012

High credit: CAD 15,000

Now owing: 0

Past due: 0

Last purchase: September 2012

Line of business: Office supply

Paying status: 2 days beyond terms

Date reported: October 2012

High credit: CAD 40,000+

Now owing: 0

Past due: 0

Last purchase: September 2012

Line of business: Payroll

Paying status: As agreed

Date reported: October 2012

High credit: CAD 800

Now owing: 0

Past due: 0

Last purchase: September 2012

Line of business: Telecommunications

Paying status: 2 days beyond terms

Domestic credit history:

Domestic credit history appears as follow:

Monthly Payment Trends - Recent Activity

Date	Balance	Current	Up to 30 DBT	31-60 DBT	61-90 DBT	>90 DBT
04/12	$5,800	96%	4%	0%	0%	0%
05/12	$5,900	95%	5%	0%	0%	0%
06/12	$5,400	95%	5%	0%	0%	0%
07/12	$5,700	94%	6%	0%	0%	0%
08/12	$5,100	95%	5%	0%	0%	0%
09/12	$5,200	94%	6%	0%	0%	0%

National Credit Bureaus gave a satisfying credit rating.

International credit history:

Payments of imports are currently made with an average of 2 days beyond terms.

Other comments:

The Company maintains a regular business.

The bank confirmed a regular account.

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

The risk is low.

Our opinion:

A business connection may be conducted.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.66
UK Pound	1	Rs.86.37
Euro	1	Rs.69.24

INFORMATION DETAILS

Report Prepared by :

PRL

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	--

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%)

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.