MIRA INFORM REPORT

Report Date :

07.11.2012

IDENTIFICATION DETAILS

Name :	PRECISION ABRASIVES PRIVATE LIMITED
Registered Office :	C-28, Mayfair Garden, New Delhi – 110016
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.04.2003
Com. Reg. No.:	55-119653
Capital Investment / Paid-up Capital :	Rs. 0.500 Million
CIN No.: [Company Identification No.]	U74999DL2003PTC119653
TAN No.: [Tax Deduction & Collection Account No.]	DELP08317B
Legal Form :	Private Limited Liability Company
Line of Business :	Trader and Importer of Grinding Wheel.
No. of Employees :	25 (Approximately)

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 27000
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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Sandeep Jayal
Designation :	Senior Accountant
Contact No.:	91-11-42665151
Date :	06.11.2012

LOCATIONS

Registered Office :	C-28, Mayfair Garden, New Delhi – 110016, India
Tel. No.:	91-11-42665151 / 41655858
Mobile No.:	91-9312276555 (Mr. Narendra Mohan Gupta)
Fax No.:	91-11-26563695
E-Mail :	sales@preab.com sandeep@preab.com
Website :	http://www.preab.com
Area :	4000 Sq. ft.
Location :	Owned

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Narendra Mohan Gupta

Designation :

Director

Address :

C-28, Mayfair, Garden, New Delhi – 110016, India

Date of Birth/Age :

10.10.1959

Qualification :

Chartered Accountant

Date of Appointment :

01.04.2003

DIN No.:

00556897

Name :

Mr. Naman Gupta

Designation :

Additional director

Address :

K-9/15, DLF Phase, Gurgaon – 122002, Haryana, India

Date of Birth/Age :

15.11.1985

Qualification :

B.Com

Date of Appointment :

30.09.2011

DIN No.:

03482488

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U74999DL2003PTC119653	PRECISION ABRASIVES PRIVATE LIMITED	Director	30/09/2011	01/04/2011	Active	NO

KEY EXECUTIVES

Name :	Mr. Sandeep Jayal
Designation :	Senior Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Narendra Mohan Gupta	26000
Sangeeta Gupta	11980
Naman Gupta	10010
N M Gupta and Sons HUF	2010
Total	50000

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Trader and Importer of Grinding Wheel.

Products :

ITC Code	Product Descriptions
6804	Grinding Wheel and Abrasives Goods

Imports :

Products :

Grinding Wheel

Countries :

Ø China

Ø Korea

Ø Japan

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Customers :

End Users

Ø Eastern Medikit Limited, Gurgaon

No. of Employees :

25 (Approximately)

Bankers :

Corporation Bank, M-3-4, Greater Kailash-II, New Delhi, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Corporation Bank (Secured against hypothecation of Car)	0.931	0.910
From Tata Capital Limited (Secured against hypothecation of Car)	0.573	0.000
Total	1.504	0.910
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Directors and Others	13.705	11.060
Total	13.705	11.060

Banking Relations :	--
Auditors :
Name :	Ramesh Shah and Associates Chartered Accountants
Address :	D-51, Hauz Khas, New Delhi – 110016, India
Tel. No.:	91-11-26196284 / 26194021 / 26191394 / 26191403
Fax No.:	91-11-26164757
Income-tax PAN of auditor or auditor's firm :	AASPS9513Q

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50,000	Equity Shares	Rs. 10/- each	Rs. 0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50,000	Equity Shares	Rs.10/- each	Rs. 0.500 Million

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		0.500	0.500	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6.438	4.090	2.300
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6.938	4.590	2.800
LOAN FUNDS
1] Secured Loans		1.504	0.910	1.056
2] Unsecured Loans		13.705	11.060	8.992
TOTAL BORROWING		15.209	11.970	10.048
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		22.147	16.560	12.848
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.658	1.881	2.095
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.108	0.095	0.063
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	8.654	8.422	3.977
	Sundry Debtors	14.443	11.840	8.491
	Cash & Bank Balances	5.051	1.973	4.128
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.534	1.260	0.887
Total Current Assets		29.682	23.495	17.483
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.388	6.677	5.176
	Other Current Liabilities	1.767	1.384	1.084
	Provisions	1.146	0.850	0.533
Total Current Liabilities		10.301	8.911	6.793
Net Current Assets		19.391	14.584	10.690
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		22.147	16.560	12.848

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	76.659	52.787	39.006
		Other Income	0.000	0.000	0.000
		TOTAL	76.659	52.787	39.006
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	73.169	50.180	37.679
	PROFIT BEFORE TAX		3.490	2.607	1.327
Less	TAX		1.142	0.817	0.534
	PROFIT AFTER TAX		2.348	1.790	0.793
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		4.090	2.300	1.507
	BALANCE CARRIED TO THE B/S		6.438	4.090	2.300
	VALUE OF IMPORTS		35.332	22.810	N.A.
	Earnings Per Share (Rs.)		46.95	35.80	16.00

Particulars	31.03.2012
Sales Turnover (Approximately)	100.000

Expected Sales ( 2012-2013 ) : Rs. 130.000 Millions

The above information has been parted by Mr. Sandeep Jayal (Senior Accountant)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.06	3.39	2.03
Net Profit Margin (PBT/Sales)	(%)	4.55	4.94	3.40
Return on Total Assets (PBT/Total Assets}	(%)	10.79	10.27	6.78
Return on Investment (ROI) (PBT/Networth)		0.50	0.57	0.47
Debt Equity Ratio (Total Liability/Networth)		3.68	4.55	6.01
Current Ratio (Current Asset/Current Liability)		2.88	2.64	2.57

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	No
17]	Major suppliers	No
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

OPERATIONS:

During the year the Company has made a total sales of Rs. 76.657 Millions and earned pre-tax profit of Rs. 3.490 Millions. The progress of work of the Company is satisfactory

FUTURE PROSPECTUS:

The Directors are confident to achieve better growth in the next year.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U74999DL2003PTC119653
Name of the company	PRECISION ABRASIVES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	C-28, Mayfair Garden, New Delhi – 110016, India Email: sales@preab.com
This form is for	Creation of charge
Type of charge	Others (Agreement for Hypothecation of Vehicles)
Particular of charge holder	Corporation Bank, M-3-4, Greater Kailash-II, New Delhi, India Email: cb286@corpbank.co.in
Nature of description of the instrument creating or modifying the charge	Agreement For Hypothecation of Vehicles dated 13th day of March, 2012
Date of instrument Creating the charge	13.03.2012
Amount secured by the charge	Rs. 0.400 Million
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 11.50% p.a. (0.85% over and above Base Rate) Terms of Repayment To be repaid in 35 months in 35 EMI of Rs. 0.013 Million each Margin 21.46% Extent and Operation of the charge Hypothecation of a Brand New Chevrolet Beat 1.2 car (Registration No. DL 9CT 5091) costing Rs. 0.509 Million is to secure the loan of Rs. 0.400 Million sanctioned to the Company.

TRADE REFERENCES:

Ø Eastern Medikit Limited, Gurgaon

FIXED ASSETS:

Ø Computers

Ø Box Stamping Machine

Ø Inverter

Ø Office Equipments

Ø Plant and Machinery

Ø Shaff Grinder

Ø Fan

Ø Cycle

Ø Tacho Mater

Ø Vanier Capplipers

Ø Air Conditioner

Ø Vehicles

Ø Furniture and Fixture

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 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. 54.60
UK Pound	1	Rs. 87.31
Euro	1	Rs. 69.86

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--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	NO
--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.