MIRA INFORM REPORT

Report Date :

06.09.2012

IDENTIFICATION DETAILS

Name :	FINEPAC STRUCTURES PRIVATE LIMITED

Registered Office :	J-25, S Block, MIDC, Bhosari, Pune – 411026, Maharashtra

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	18.03.1994

Com. Reg. No.:	11-077167

Capital Investment / Paid-up Capital :	Rs. 3.954 Millions

CIN No.: [Company Identification No.]	U51909MH1994PTC077167

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer of Structure Packing and Column Internal for Chemical Distillation Pusher types continus Switch.

No. of Employees :	125 (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 140000

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.

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. Santosh
Designation :	Accounts Manager
Contact No.:	91-20-66120661
Date :	05.09.2012

LOCATIONS

Registered Office/ Factory :	J-25, S Block, MIDC, Bhosari, Pune – 411026, Maharashtra, India
Tel. No.:	91-20-66120661/ 66120665
Fax No.:	91-20-27119512
E-Mail :	santosh@finepacindia.in saichin@vsnl.com suhasnw@finepacindia.in sunilnaikwadi@finepacindia.in
Website :	www.finepacindia.in
Location :	Owned

Mumbai Office :	1, 2^nd Floor, Navjivan Society Building No. 3, Lamington Road, Mumbai – 400008, Maharashtra, India
Tel. No.:	91-22-32953180
Fax No.:	91-22-66648424
E-Mail :	shahpk@finepacindia.in

Factory 1 :	W-54, T Block, MIDC, Bhosari, Pune – 411026, Maharashtra, India
Location :	Owned

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Prafull Kantilal Shah
Designation :	Director
Address :	404, Atman, 94/C, Gowalia Tank Road, Gramdevi, Mumbai – 400036, Maharashtra, India
Date of Birth/Age :	10.02.1947
Qualification :	B.E.
Date of Appointment :	14.02.1998
DIN No.:	01130687

Name :	Mr. Suhas Nanasaheb Wakchaure
Designation :	Director
Address :	Shantiban Co-operative Housing Society, Plot No. 12, Near Mahatma, Society, Kothrud, Pune – 411029, Maharashtra, India
Date of Birth/Age :	28.07.1960
Qualification :	D.M.E.
Date of Appointment :	18.03.1994
DIN No.:	01130754

KEY EXECUTIVES

Name :	Mr. Santosh
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders		No. of Shares
Prafull Shah j/w Kiran Shah		197720
Suhas Wakchaure j/w Madhuri Wakchaure		197720
Total		395440

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 :	Manufacturer of Structure Packing and Column Internal for Chemical Distillation Pusher types continus Switch.

Products :	Ø Structured Packing Ø Structured Grid Packing Ø Pusher Centrifuge Ø Static Mixture Ø Random Packing Ø Distillation Trays Ø Column Internals Ø Internals for Oil and Gas Industries Ø Fabrication of Column and Other Equipments Ø Process Design Ø Distributor Testing

Exports :
Products :	Ø Structured Packing Ø Structured Grid Packing Ø Pusher Centrifuge Ø Static Mixture Ø Random Packing Ø Distillation Trays Ø Column Internals Ø Internals for Oil and Gas Industries Ø Fabrication of Column and Other Equipments Ø Process Design Ø Distributor Testing
Countries :	UK

Imports :
Products :	Raw Material
Countries :	Ø Sweden Ø German Ø UK

Terms :
Selling :	Cash and Credit

Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

Ø Phoenix Foils Private Limited

Ø Auto Pano

Customers :

Wholesalers and Retailers

Ø Thermax India Limited

Ø Jindal

No. of Employees :

125 (Approximately)

Bankers :

Dena Bank, Bhosari Industrial Estate Branch, Pune Nashik Road, Bhosari, Pune – 411026, Maharashtra, India

Facilities :

CC and TL – Rs. 97.000 Millions

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Cash Credit from Dena Bank, Bhosari Branch Pune(Secured by hypothecation of all movable assets including plant and machinery, stores and spares, packing material, debtors secured by personal guarantee of directors of the company and property offered by the directors of the company)	1.080	4.262
Packing Credit and Export Bill Discounting Loan from Dena Bank (Secured hypothecation of stock of raw material, semi-finished goods, finished goods and debtors for export purpose)	8.671	1.025
Term Loan - Dena Bank (Secured hypothecation of Plant and Machinery and Other movable assets and further mortagage of industrial plot at J 25 Bhosari and Construction thereon)	0.000	2.722
Dena Bank Bill Discounting (Secured by Book Debts)	4.080	0.000
Total	13.831	8.009

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Mr. M.V. Rao	0.000	1.235
Total	0.000	1.235


Banking Relations :	--

Auditors :
Name :	C. J. Kulkarni and Company Chartered Accountants
Address :	'Jai Deep', 810 Sadashiv Peth, Bar Gadgil street, Pune – 411030, Maharashtra, India
Tel. No.:	91-20-24478542/ 24430568
Mobile No.:	91-9422085517
E-Mail :	cjkulkarni@vsnl.net
PAN No.:	ACDPK7426K

Associates :	Narita Boutique

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount

500000	Equity Shares	Rs. 10/- each	Rs. 5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

395440	Equity Shares	Rs. 10/- each	Rs. 3.954 Millions

Note: Out of the above, 4000 Equity Shares have been issued pursuent to a contract for consideration otherwise than cash and 111006 Shares have been allotted as fully paid up Bonus shares by way of capitalization of reserves.

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		3.954	3.954	1.850
2] Share Application Money		0.000	0.966	0.139
3] Reserves & Surplus		31.702	26.575	22.835
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		35.656	31.495	24.824
LOAN FUNDS
1] Secured Loans		13.831	8.009	11.532
2] Unsecured Loans		0.000	1.235	3.435
TOTAL BORROWING		13.831	9.244	14.967
DEFERRED TAX LIABILITIES		4.722	4.806	3.143

TOTAL		54.209	45.545	42.934

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		32.634	33.897	34.980
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.027	0.027	0.027
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	18.666	9.120	9.055
	Sundry Debtors	18.114	9.711	10.296
	Cash & Bank Balances	6.021	4.444	2.800
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	6.092	7.785	8.488
Total Current Assets		48.893	31.060	30.639
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	13.464	9.771	14.862
	Other Current Liabilities	11.302	7.062	5.811
	Provisions	2.579	2.606	2.039
Total Current Liabilities		27.345	19.439	22.712
Net Current Assets		21.548	11.621	7.927

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		54.209	45.545	42.934

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income
		Other Income
		TOTAL	141.578	125.995	131.423

Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	130.995	114.541	120.788

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		10.583	11.454	10.635

Less/ Add	DEPRECIATION/ AMORTISATION		2.783	2.929	2.757

	PROFIT BEFORE TAX		7.800	8.525	7.878

Less	TAX		2.495	2.670	2.405

	PROFIT AFTER TAX		5.305	5.855	5.473

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		24.972	21.232	15.985

Less	APPROPRIATIONS
		Proposed Dividend	0.277	0.237	0.092
		Tax on Dividend	0.043	0.036	0.014
		Tax in respect of previous years	(0.103)	0.155	0.120
		Extra ordinary items	0.000	0.088	0.000
		Excess provision of Dividend	(0.039)	0.000	0.000
		Deferred Tax Provision reversed	0.000	1.599	0.000
	BALANCE CARRIED TO THE B/S		30.099	24.972	21.232

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	30.839	37.175	15.473

	Earnings Per Share (Rs.)		13.42	14.81	13.84

Particulars

31.03.2012

Sales Turnover (Approximately)

184.400

Expected Sales ( 2012-2013 ) : Rs. 350.000 Millions

The above information has been parted by Mr. Santosh (Accounts Manager)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.75	4.65	4.16

Return on Total Assets (PBT/Total Assets}	(%)	9.57	13.12	12.01

Return on Investment (ROI) (PBT/Networth)		0.22	0.27	0.32

Debt Equity Ratio (Total Liability/Networth)		1.15	0.91	1.52

Current Ratio (Current Asset/Current Liability)		1.79	1.60	1.35

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS

(Rs. in Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009

Due to Creditors other than small scale industries undertaking	13.464	9.771	14.862
Small scale industries undertaking	0.000	0.000	0.000
Sundry Creditors	13.464	9.771	14.862

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	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
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

Note: The registered address of the company has been shifted from 22, Gauri Shankar Shrishivaji Housing Society, Pune – 411016, Maharashtra, India to the present w.e.f. 05.03.2007

Form 8

Corporate identity number of the company	U51909MH1994PTC077167
Name of the company	FINEPAC STRUCTURES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	J-25, S Block, MIDC, Bhosari, Pune - 411026, Maharashtra, India Email ID: saichin@vsnl.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10181892
Type of charge	Book debts Movable property (not being pledge) Others [raw material, goods in process and finished goods]
Particular of charge holder	Dena Bank, Bhosari Branch, Dr. Mangudkar building, National High way, Bhosari, Pune – 411039, Maharashtra, India Email ID: bhosar@denabank.co.in
Nature of instrument creating charge	Unattested Memorandum of Modification of Hypothecation Agreement From Companies dated 12 March 2012. Mortgage of Entry for extension of existing mortgage for limited companies dated 12 March, 2012.
Date of instrument Creating the charge	12.03.2012
Amount secured by the charge	Rs. 29.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Bank Guarantee commission as per Banks circular/RBI Guidelines. Terms of repayment Not applicable being Non fund based facilities. Margin 10% Extent and operation of the charge The charge of the Bank to remain in force during the continuation of the Credit facilities
Short particulars of the property charged (Including location of the property)	All stock of raw materials, goods in process and finished goods such as SS Coils, Locating grids, etc. , All tangible moveable Properties & assets of the borrower of whatsoever nature including Plant and Machinery, tools, accessories, stores , spares, furniture , articles at the factory Bhosari , Pune, All present and future Book debts, receivables, outstanding ,moneys, claims, bills, rights to or in moveable properties and moveable assets, etc.
Date of instrument modifying the charge	20.09.2011
Particulars of the present modification	By this modification the Bank Guarantee limit stands increased to Rs. 29.000 Millions from existing limit of Rs. 9.000 Millions

TRADE REFERENCES:

Ø Thermax India Limited

Ø Jindal

Ø Phoenix Foils Private Limited

Ø Auto Pano

CONTINGENT LIABILITIES:

(Rs. in Millions)

Particulars	31.03.2011	31.03.2010
Bank Guarantees Outstanding	4.504	3.216
Sales tax Liability
FY 2005-06	1.948	1.948
FY 2006-07	1.560	1.560
FY 2007-08	5.298	5.298
Total	13.310	12.022

The company has filed appeal for the above liability to Commissioner of Sales Tax (Appeal) and is deposited Rs. 1.130 Millions in FY 2009-10.

FIXED ASSETS:

Leasehold land
Factory Building
Plant and Machinery
Tools
Office Equipment
Computers and Software
Vehicles
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 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. 55.54
UK Pound	1	Rs. 88.23
Euro	1	Rs. 70.02

INFORMATION DETAILS

Information Gathered by :	PJA

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	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		45

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

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.

MIRA INFORM REPORT

18.666

18.114

6.021

0.000

6.092

48.893

13.464

11.302

2.579

27.345

21.548

3.75

9.57

0.22

1.15

1.79

Unit