MIRA INFORM REPORT

Report Date :

26.11.2012

IDENTIFICATION DETAILS

Name :	DUROVALVES INDIA PRIVATE LIMITED
Registered Office :	F-57-58, MIDC Industrial Area, Waluj, Aurangabad – 431136, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	30.01.1997
Com. Reg. No.:	11-105518
Capital Investment / Paid-up Capital :	Rs.35.970 Millions
CIN No.: [Company Identification No.]	U34300MH1997PTC105518
TAN No.: [Tax Deduction & Collection Account No.]	NSKD00927D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Engine Valves, Engine Parts, Auto Components Steel Forgings, Axle Shafts and Gears.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 1300000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of the Varroc Group. It is a well established company having good track. It has achieved better growth in its sales turnover during 2012. The financial position of the company appears to be sound. Trade relations are reported as trustworthy. Business is active. Payments are reported to be regular 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term Rating A+
Rating Explanation	Adequate degree of safety and low credit risk.
Date	20.11.2012

Rating Agency Name	CRISIL
Rating	Short term Rating A1
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	20.11.2012

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.

LOCATIONS

Registered Office/Factory :	F-57-58, MIDC Industrial Area, Waluj, Aurangabad – 431136, Maharashtra, India
Tel. No.:	91-240-2564161 / 2555293
Fax No.:	91-240-2555956
E-Mail :	ghatiya.anil@varrocgroup.com varroc.dipl@varrocgroup.com
Websites:	http://www.durovalves.com

DIRECTORS

As on: 12.07.2012

Name :

Mr. Naresh Chandra

Designation :

Director

Address :

Bhagwati Bhawan, 31-B, M L Dahanukar Marg, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

11.02.1935

Date of Appointment :

03.09.1997

DIN No.:

00027696

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	L45400MH1962PLC012385	HERCULES HOISTS LIMITED	Director	20/09/1972	20/09/1972	-	Active	NO
2	U28920MH1988PTC047335	VARROC ENGINEERING PRIVATE LIMITED	Director	11/05/1988	11/05/1988	-	Active	NO
3	U25209MH1995PTC090037	VARROC POLYMERS PRIVATE LIMITED	Director	28/06/1995	28/06/1995	-	Active	NO
4	U28113MH1995PTC092249	ENDURANCE SYSTEMS (INDIA) PRIVATE LIMITED	Director	28/08/1995	28/08/1995	-	Amalgamated	NO
5	U34300MH1997PTC105518	DUROVALVES INDIA PRIVATE LIMITED	Director	03/09/1997	03/09/1997	-	Active	NO
6	L24100GJ1983PLC006513	GHCL LIMITED	Director	28/11/1997	28/11/1997	03/11/2010	Active	NO
7	U34102MH1999PLC123296	ENDURANCE TECHNOLOGIES LIMITED (CN)	Director	27/12/1999	27/12/1999	-	Active	NO
8	U31506MH2000PTC129904	VARROC LIGHTING PRIVATE LIMITED	Director	06/12/2000	06/12/2000	-	Amalgamated	NO
9	U34300MH2002PTC134738	HIGH TECHNOLOGY TRANSMISSION SYSTEMS (INDIA) PRIVATE LIMITED	Director	29/07/2002	29/07/2002	-	Active	NO
10	U67120MH1982PTC026669	VARROC TRADING PRIVATE LIMITED	Director	21/11/2002	21/11/2002	-	Active	NO
11	U29100MH2005PTC151756	VARROC EXHAUST SYSTEMS PRIVATE LIMITED	Director	03/03/2005	03/03/2005	-	Active	NO
12	U29190MH2005PTC157474	VARROC ELASTOMERS PRIVATE LIMITED	Director	22/11/2005	22/11/2005	-	Active	NO

Name :

Mr. Tarang Jain

Designation :

Director

Address :

Halcyon Gut No.41 (P), Opposite Walmi Paithan Road, Aurangabad, Maharashtra, India

Date of Birth/Age :

21.03.1962

Date of Appointment :

30.01.1997

DIN No.:

00027505

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U67120MH1982PTC026669	VARROC TRADING PRIVATE LIMITED	Director	22/11/1985	22/11/1985	-	Active	NO
2	U28920MH1988PTC047335	VARROC ENGINEERING PRIVATE LIMITED	Managing director	11/05/1988	11/05/1988	-	Active	NO
3	U25209MH1995PTC090037	VARROC POLYMERS PRIVATE LIMITED	Managing director	01/04/2007	28/06/1995	-	Active	NO
4	U34300MH1997PTC105518	DUROVALVES INDIA PRIVATE LIMITED	Managing director	30/01/1997	30/01/1997	-	Active	NO
5	U31506MH2000PTC129904	VARROC LIGHTING PRIVATE LIMITED	Director	06/12/2000	06/12/2000	-	Amalgamated	NO
6	U29100MH2005PTC151756	VARROC EXHAUST SYSTEMS PRIVATE LIMITED	Director	03/03/2005	03/03/2005	-	Active	NO
7	U29190MH2005PTC157474	VARROC ELASTOMERS PRIVATE LIMITED	Director	22/11/2005	22/11/2005	-	Active	NO
8	U34300PN2007PTC131148	PLASTIC OMNIUM VARROC PRIVATE LIMITED	Director	17/12/2007	17/12/2007	14/08/2012	Active	NO
9	U70102MH2010PTC208318	RUDRITARA PROPERTIES PRIVATE LIMITED	Director	27/09/2010	27/09/2010	-	Active	NO
10	U91120MH2005NPL158483	MARATHWADA AUTO CLUSTER	Director	27/09/2012	18/10/2011	-	Active	NO
11	U31401PN2012PTC142539	VARROC LIGHTING SYSTEMS (INDIA) PRIVATE LIMITED	Director	13/03/2012	13/03/2012	-	Active	NO

Name :

Mr. Albertina Scarpa

Designation :

Director

Address :

Via Galvani luigi n 105-20025, Legnano 20025, Legnano, Italy

Date of Birth/Age :

01.05.1951

Date of Appointment :

26.08.1999

DIN No.:

00761226

Name :

Mr. Muralidharan Kalyanasundaram

Designation :

Director

Address :

25^th Main Road, T.N.H.B. Colony, Kotturpuram, Chennai – 600085, Tamil Nadu , India

Date of Birth/Age :

17.02.1955

Date of Appointment :

15.12.2011

DIN No.:

05119127

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U34300MH1997PTC105518	DUROVALVES INDIA PRIVATE LIMITED	Director	12/07/2012	15/12/2011	-	Active	NO
2	U28920MH1988PTC047335	VARROC ENGINEERING PRIVATE LIMITED	Whole-time director	06/08/2012	20/01/2012	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Sachidanandan Rengachari Thirukkonda
Designation :	Secretary
Address :	Flat No.30, Nirala Apartment Govind Nagar, Station Road, Aurangabad – 431005, Maharashtra, India
Date of Birth/Age :	01.07.1955
Date of Appointment :	01.04.2001
PAN No.:	AMHPS3080M

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 12.07.2012

Names of Shareholders	No. of Shares
Bajaj Auto Limited, India	565000
Scarpa and Colombo SRL, Italy	754000
Varroc Engineering Private Limited, India	2052920
Tarang Jain	10
Naresh Chandra	10
Freccia International SRL, Italy	225074
Total	3597014

Equity Share Break up (Percentage of Total Equity)

As on: 12.07.2012

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	27.22
Bodies corporate	72.78
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Engine Valves, Engine Parts, Auto Components Steel Forgings, Axle Shafts and Gears.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· The Saraswat Co-Operative Bank Limited, Khadkeshwar Branch, Khadkeshwar, Aurangabad - 431001, Maharashtra, India

· IDBI Bank Limited, IDBI Tower WTC Complex, Cuffe Parade, Mumbai - 400005,

· Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2012

As on

31.03.2011

Term Loans from Hanks Unsecured

26.118

9.256

Working Capital loans from banks

Cash Credit

55.189

40.647

PCFC loan from Banks

13.768

34.043

Buyers Credit

4.487

60.564

Total

99.562

144.510

Note:

1. Term Loan from IDBI Bank Limited is secured by first pari passu charge by way of hypothecation of entire movable fixed assets of the Company both present and future located at Plot No. F-57-58, MIDC, Waluj, Aurangabad and equitable mortgage on entire immovable assets of the Company located at F-57-58, MIDC, Waluj, Aurangabad.

2. Term loans from Bank are repayable in equated monthly installment, the remaining installment as on 31st March and the rate of interest are as follows:

Particulars	As at March 31,2012		As at March 31,2011
Term Loan	Number of Installments	Rate of Interest	Number of Installments	Rate of Interest
	28	13.50%	40	12.50%

Unsecured Loan

As on

31.03.2012

As on

31.03.2011

Deferred Sales Tax Liability

54.918

58.210

Loan from relatives of Directors

17.100

17.100

Total

72.018

75.310

Note:

Secured- Working capital facilities availed from the Banks are secured by pari passu first charge by way of hypothecation of stocks of Raw Materials, Stock in Process, Finished Goods, Consumables Stores and Spares, Packing Materials and Receivables of the Company both present and future and are further secured by Joint Mortgage of Immovable Properties of the Company situated at Plot No. F-57-58 MIDC, Waluj, Aurangabad.

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	252 Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai – 400028, Maharashtra, India
PAN No.:	AAHFP0187A
Holding Company :	Varroc Engineering Private Limited CIN No:U28920MH1988PTC047335
Subsidiaries :	· Varroc Exhaust Systems Private Limited · Varroc European Holding BV · Industrial Mechanical E Stampaggio s.p.a., ITALY · Industrial Mechanical E Stampaggio Sp. Z.o.o., POLAND
Enterprises Owned or controlled by/or over which parties described:	Varroc Polymers Private Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3700000	Equity Shares	Rs.10/- each	Rs.37.000 Millions
5800000	Preference Shares	Rs.10/- each	Rs.58.000 Millions
	Total		Rs.95.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3597014	Equity Shares	Rs.10/- each	Rs.35.970 Millions

a) Reconciliation of the shares

Particular		As at 31.03.2012
		Numbers		Rs. in millions
Equity shares
Balance as at the beginning of the year		3597014		35.970
Add: Equity share issued on conversion of preference shares		--		--
Balance as at the end of the year		3597014		35.970
Preference shares
Balance as at beginning of the year		-
Less: Conversion into equity shares		-
Less: Redeemed during the year
Balance as at the end of the year		-
b) Rights, Preferences and restrictions attached to Shares Equity Shares: The company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity share is entitled to one vote per share held .The dividend proposed by the Board of Directors is subject to the approval of the shareholders in ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding. c) Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company
	As at 31.03.2012
Equity Shares	Percentage		Numbers
Varroc Engineering Private Limited.	57.07		2,052,920
Scarpa and Colombo Sri	20.96		754,000
Bajaj Auto Limited	15.71		565,000
Freccia International Sri	6.26		225,074

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		35.970	35.970	87.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		302.334	231.397	146.426
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		338.304	267.367	233.426
LOAN FUNDS
1] Secured Loans		99.562	144.510	145.664
2] Unsecured Loans		72.018	75.310	76.742
TOTAL BORROWING		171.580	219.820	222.406
DEFERRED TAX LIABILITIES		14.665	13.689	14.357
TOTAL		524.549	500.876	470.189
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		292.429	291.502	276.384
Capital work-in-progress		13.686	15.913	6.150
INVESTMENT		0.025	0.050	0.050
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	159.560	138.730	138.565
	Sundry Debtors	141.366	109.683	90.672
	Cash & Bank Balances	41.018	38.006	34.625
	Other Non Current Assets	19.320	11.084	0.000
	Other Current Assets	1.709	0.843	0.000
	Loans & Advances	24.817	20.730	26.059
Total Current Assets		387.790	319.076	289.921
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	93.806	60.038	59.448
	Other Current Liabilities	56.005	43.497	6.919
	Provisions	19.570	22.130	35.949
Total Current Liabilities		169.381	125.665	102.316
Net Current Assets		218.409	193.411	187.605
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		524.549	500.876	470.189

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL (A)	811.130	697.480	628.310
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	617.840	549.120	514.640
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		193.290	148.360	113.670
Less	FINANCIAL EXPENSES (D)		18.590	16.610	18.520
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		174.700	131.750	95.150
Less/ Add	DEPRECIATION/ AMORTISATION (F)		49.930	45.850	42.600
	PROFIT BEFORE TAX (E-F) (G)		124.770	85.900	52.550
Less	TAX (H)		42.96	2.663	17.700
	PROFIT AFTER TAX (G-H) (I)		81.810	5.927	34.850
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		88.730	49.420	4.181
Less	APPROPRIATIONS
		Transfer to General Reserve	8.200	5.930	3.490
		Proposed Dividend	1.520	1.330	14.500
		Proposed Dividend on Equity	9.350	8.040	2.460
		Proposed Dividend on Preference shares	0.000	3.990	5.800
		Tax on Proposed Dividend Preference share	0.000	0.660	0.990
	BALANCE CARRIED TO THE B/S		151.460	88.730	49.420
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Export Earnings	186.188	147.792	184.168
	TOTAL EARNINGS		186.188	147.792	184.168
	IMPORTS
		Raw Materials	146.745	134.407	146.878
		Stores & Spares	0.262	0.768	0.569
		Capital Goods	8.486	10.747	2.145
	TOTAL IMPORTS		155.493	145.922	149.592
	Earnings Per Share (Rs.)		22.74	17.00	9.09

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	10.08	0.85	5.55
Return on Total Assets (PBT/Total Assets}	(%)	18.34	14.68	9.28
Return on Investment (ROI) (PBT/Networth)		0.36	0.32	0.23
Debt Equity Ratio (Total Liability/Networth)		1.01	612.85	1.39
Current Ratio (Current Asset/Current Liability)		2.29	2.53	2.83

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	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	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 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	Yes

PERFORMANCE

Million from INR 528 Million in the last year. Exports increased by 23% to INR 201 Million from INR 163 Million during the previous year. Net Sales and Other Income was higher by 16.3% at INR 811.130 Million as compared to INR 697.480 Million in the previous year. Profit After Tax increased by 38% to INR 81.810 Million from INR 59.270 Million. Appreciable growth in domestic demand as well as exports has led to satisfactory working results.

FUTURE OUTLOOK

The emerging news of economic slow down from Europe is not positive and is a cause for concern. Even China's once-booming factories are faltering as per business surveys. However, the data emerging from U.S.A. is comparatively better with unemployment rate falling, GDP gradually improving and consumers beginning to spend more. Nevertheless, the effects of the global slow down continue to linger and hence the related concerns still remain unabated.

On the domestic front, the headline inflation continues to be the major concern. RBI, while reducing interest rates in April for the first time in three years, has cautioned that upside risks to inflation persist. The IMF's annual economic health-check of India's economy has stressed that the biggest challenge for authorities is to bring growth back to its potential and lower inflation for which economic reforms and fiscal consolidation are crucial. According to analysts, while GDP is expected to grow about 6% in the current fiscal, it would translate to a single digit growth in four wheeler and HCV segment; with supply side constraints continuing to persist owing to slowdown in capital investments by industry, it would be a struggle to build adequate incremental sale volumes to overcome increases in input costs.

The company is focusing to get new platforms coming up with our customers like Bajaj, Tata and Yamaha. The company plans to meet additional demand by further increasing capacity utilization level, thereby avoiding further capex. In the current year, the Company is aiming to increase its topiine by about 10% to Rs.890.000 millions. Since Technology and Quality are paramount factors in the manufacture of IC Valves, the Company is planning setting up a separate R and D Division to expedite its R and D activities. As a first step in this direction, the Company is planning to apply to DSIR, New Delhi in the current year for obtaining recognition- of its R and D Division.

The Company is committed to the improvement of environment, safety, health and society and the same has been incorporated in the Company's Mission Statement and Quality Policy. By way of reinforcing its commitment, the Company has already obtained ISO/TS 16949 / ISO-14001 / OHSAS-18001 Certifications.

Bankers Charges Report as per Registry

Corporate identity number of the company	U34300MH1997PTC105518
Name of the company	DUROVALVES INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Durovalves India Pvt Ltdf-57-58 Midc Indl Area Waluj, Aurangabad – 431136, Maharashtra, India ghatiya.anil@varrocgroup.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90213345
Type of charge	· Book debts · Movable property (not being pledge)
Particular of charge holder	The Saraswat Co-Operative Bank Limited, Khadkeshwar Branch, Khadkeshwar, Aurangabad - 431001, Maharashtra, India sr_malandkar@saraswatbank.com
Nature of instrument creating charge	Agreement of Inter chargeability of limits and Agreement of Hypothecation of Movable Property both dated 03.05.2011
Date of instrument Creating the charge	03.05.2011
Amount secured by the charge	Rs. 100.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest ROI - As may be decided by the Bank from time to time Terms of Repayment As per Bank rules Margin Margin 30% for packing credit and 10% for post shipment finance Extent and Operation of the charge The Bank has sanctioned Packing Credit cum postshipment facility of Rs. 200 Lacs which is inner limit to Cash Credit facility of Rs. 10 Crore. Now the said facility is also secured by way of Hypothecation of Movable property including current assets, stocks, book debts etc. on pari-passu charge basis alongwith other financing bank lying and being at Borrowers place of business at F-57-58, MIDC, Waluj, Aurangabad - 431 136
Short particulars of the property or asset(s) charged (including complete address and location of the property)	The Bank has sanctioned Packing Credit cum postshipment facility of Rs. 20.000 millions which is inner limit to Cash Credit facility of Rs. 100.000 millions. Now the said facility is also secured by way of Hypo. of Movable property including current assets, stocks, book debts etc. on pari-passu charge basis alongwith other financing bank lying and being at Borrowers place of business at F-57-58, MIDC, Waluj, Aurangabad - 431 136, India
Date of instrument modifying the charge	03.05.2011
Particulars of the present modification	The Bank has sanctioned Packing Credit cum postshipment facility of Rs. 20.000 millions which is inner limit to Cash Credit facility of Rs. 100.000 millions. Now the said facility is also secured by way of Hypo. of Movable property including current assets, stocks, book debts etc. on pari-passu charge basis alongwith other financing bank lying and being at Borrowers place of business at F-57-58, MIDC, Waluj, Aurangabad - 431 136, India

CONTINGENT LIABILITIES

(Rs. In millions)

Contingent liabilities not provided for in respect of	31.03.2012	31.03.2011
Guarantees given by Company's Bankers	2.626	2.226
ESIC	1.009	1.009
Excise and Service Tax Matters	0.189	0.189
Sales Tax Matters	21.488	21.488
Labour Matters	16.761	11.334
Sales bills discounted with Bank	62.323	--
Total	104.396	36.246

FIXED ASSETS:

· Lease Hold Land

· Free holds Land

· Building

· Plant and Machinery

· Factory Equipment

· Electrical Installation

· Dies and moulds

· Computer

· Vehicles

· Furniture and Fixture

· Office Equipment

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.55.34
UK Pound	1	Rs.88.30
Euro	1	Rs.71.37

INFORMATION DETAILS

Report Prepared by :

DPK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		52

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.