INFORM REPORT

Report Date :

08.09.2012

IDENTIFICATION DETAILS

Name :	BESMAK COMPONENTS PRIVATE LIMITED
Registered Office :	No. 21, Mangali Nagar, IInd Street, S Arumbakkam, Chennai – 600106, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	18.10.1994
Com. Reg. No.:	18-28942
Capital Investment / Paid-up Capital :	Rs.19.500 Millions
CIN No.: [Company Identification No.]	U33112TN1994PTC028942
TAN No.: [Tax Deduction & Collection Account No.]	CHEB04179A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Automotive Plastic Components.
No. of Employees :	100 ( In Office – 15, In Factory – 85) (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 250000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The profitability of the company appears to be good. Trade relations are reported as decent. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealing 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.

LOCATIONS

Registered/ Corporate Office :	No.21, Mangali Nagar, IInd Street, S Arumbakkam, Chennai – 600106, Tamilnadu, India
Tel. No.:	91-44-24752776/ 24751597
Fax No.:	91-44-24759782
E-Mail :	accounts@besmakindia.com besmak@vsnl.com rajeshr@besmakindia.com md@besmakindia.com
Website :	www.besmakindia.com
Area :	1000 Sq. ft.
Location :	Rented
Factory/Administrative Office :	241, Avadi – Poonamallee Main Road, K Veeraragavavapuram, Chennai – 600077, Tamilnadu, India.
Tel. No.:	91-44-26802210
Fax No.:	91-44-26802210
Area :	21000 Sq. ft.
Location :	Rented
Warehouse :	Haryana Plot No.2, Basement, Pataudi Road, Gurgaon – 122001, India Tel No: 91-124-2220318 Maharashtra Gut No.134/2, Sho No.3, Chakantalegaon Road, Mahalunge, Chakan (Near Jindal), Pune – 410501, Maharashtra, India

DIRECTORS

AS ON: 30.09.2011

Name :

Mrs. Hema Hari

Designation :

Managing Director and Chairman

Address :

134, Sundaram Street, Sree Raag Apartments, Chinmaya Nagar, Stage I, Chennai – 600111, Tamilnadu, India

Date of Birth/Age :

12.12.1974

Qualification :

Post Graduate

Date of Appointment :

19.03.2005

Din No.:

00920335

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	U33112TN1994PTC028942	BESMAK COMPONENTS PRIVATE LIMITED	Managing director	19/09/2005	19/03/2005	Active	NO
2	U25194TN2012PTC086932	CNH MOULDS PRIVATE LIMITED	Director	25/07/2012	25/07/2012	Active	NO

Name :

Mr. Rajesh Ramannambesan

Designation :

Director

Address :

134, Sundaram Street, Sree Raag Apartments, Chinmaya Nagar, Stage I, Chennai – 600111, Tamilnadu, India

Date of Birth :

14.11.1976

Date of Appointment :

20.06.2005

Qualification :

Engineer

Din No.:

00630328

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	U33112TN1994PTC028942	BESMAK COMPONENTS PRIVATE LIMITED	Director	20/06/2005	20/06/2005	Active	NO
2	U25194TN2012PTC086932	CNH MOULDS PRIVATE LIMITED	Director	25/07/2012	25/07/2012	Active	NO

Name :

Mrs. Devi Narayan

Designation :

Director

Address :

Royal Towers, Flat No.403, A Wing, Sector 8A, Airoli, Navi Mumbai – 400 708, Maharashtra, India

Qualification :

Graduate

Date of Birth :

21.02.1971

Date of Appointment :

20.06.2005

Din No.:

00728624

Name :

Mrs. Ambika Chullixie

Designation :

Additional Director

Address :

134, Sundaram Street, Sree Raag Apartments, Chinmaya Nagar, Stage I, Chennai – 600111, Tamilnadu, India

Date of Birth :

27.11.1939

Date of Appointment :

20.06.2005

Din no.:

00920358

KEY EXECUTIVES

Name :	Mr. Murlidaran
Designation :	Accounts Manager
Name :	Mr. K.V. Vasudevan
Designation :	Senior Commercial Manager
Mobile No :	91-9940090255
E-Mail :	vasudevan.v@besmakindia.com
Name :	Mr. V.O. Hari Narayan
Designation :	Sr. Manager – Sales and Customer Support
Mobile No :	91-9940091786
E-Mail :	hari.vo@besmakindia.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Hema Hari	1949415
Ambika Chulliyie	195
R. Rajesh	195
Devi Narayan Nambiar	195
Total	1950000

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 Automotive Plastic Components.

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Connectors and Terminals	Nos	1000 HP	585 HP	187697654

GENERAL INFORMATION

No. of Employees :

100 ( In Office – 15, In Factory – 85) (Approximately)

Bankers :

· The South Indian Bank Limited

Nungambakkam Branch, Sterling Road, Chennai – 600034, Tamilnadu, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Term Loans The South Indian Bank Limited - CCOL	14.920 53.244	20.751 26.862
Total	68.164	47.613
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Banks and Financial Institution	7.840	5.099
Total	7.840	5.099

Banking Relations :	--
Auditors :
Name :	Krishnan and Natarajan Chartered Accountant
Address :	9/5, First Floor, First Street, Nandanam Extension, Nandanam, Chennai – 600035, Tamilnadu, India
Tel. No.:	91-461-2331690
E-Mail :	knaudit@vsnl.com
PAN No.:	AEHPK7883A

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
1950000	Equity Shares	Rs.10/- Each	Rs.19.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1950000	Equity Shares	Rs.10/- Each	Rs.19.500 Millions

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		19.500	19.500	19.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		42.744	17.015	6.627
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		62.244	36.515	26.127
LOAN FUNDS
1] Secured Loans		68.164	47.613	46.175
2] Unsecured Loans		7.840	5.099	15.216
TOTAL BORROWING		76.004	52.712	61.391
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		138.248	89.227	87.518
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		63.553	48.202	45.742
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.270	0.271	0.270
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	28.114	23.134	18.473
	Sundry Debtors	87.140	58.546	46.955
	Cash & Bank Balances	6.744	1.912	1.360
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	17.852	65.600	57.751
Total Current Assets		139.850	149.192	124.539
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	31.923	39.228	24.950
	Other Current Liabilities	33.502	69.210	0.049
	Provisions	0.000	0.000	58.034
Total Current Liabilities		65.425	108.438	83.033
Net Current Assets		74.425	40.754	41.506
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		138.248	89.227	87.518

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	273.353	215.552	143.982
		Other Income	17.226	1.682	1.692
		TOTAL (A)	290.579	217.234	145.674
Less	EXPENSES
		Office Expenses
		Administrative Expenses	240.638	186.501	128.139
		Advertising Expenses
		TOTAL (B)	240.638	186.501	128.139
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		49.941	30.733	17.535
Less	FINANCIAL EXPENSES (D)		10.201	9.231	10.486
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		39.740	21.502	7.049
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.127	4.505	4.958
	PROFIT BEFORE TAX (E-F) (G)		34.613	16.997	2.091
Less	TAX (H)		(4.631)	0.000	0.000
	PROFIT AFTER TAX (G-H) (I)		39.244	16.997	2.091
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		13.515	3.227	2.914
Less	APPROPRIATIONS
		Tax related to earlier Years	8.500	7.010	1.323
		Income Tax Related to Earlier Year	0.340	0.000	0.000
	BALANCE CARRIED TO THE B/S		39.244	13.515	3.227
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1.461	2.932	1.530
	TOTAL EARNINGS		1.461	2.932	1.530
	IMPORTS
		Raw Materials	23.451	1.286	0.000
		Capital Goods	4.733	1.462	0.000
		Spare Parts	0.321	0.579	0.496
	TOTAL IMPORTS		28.505	3.327	0.496
	Earnings Per Share (Rs.)		20.12	8.72	0.02

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	13.50	7.82	0.35
Net Profit Margin (PBT/Sales)	(%)	12.66	7.88	1.47
Return on Total Assets (PBT/Total Assets}	(%)	17.01	8.41	1.23
Return on Investment (ROI) (PBT/Networth)		0.55	0.46	0.08
Debt Equity Ratio (Total Liability/Networth)		2.27	4.41	5.53
Current Ratio (Current Asset/Current Liability)		2.13	1.37	1.50

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	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	No
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	No

PERFORMANCE:

The Sales for the financial year 2010-11 were Rs. 273.353 Millions against Rs. 215.552 Millions for the previous year, registering a growth of 27%.

BUSINESS PROSPECTUS

The present industrial trends on the sector of automobiles are totally depends two and four wheelers and dominated by Multinational giant companies. The growth rate of the four wheelers as compared to previous year has a significant market. Likewise the two wheelers has a tremendous potential in the Indian Market and the liberal policies of the Government of India has made a scope on other Nations (Export) market. The trend on the two wheeler market make a vast scope on the business potential for the industries like them. Also the quality standard TS 16949: 2009 obtained by them has remarkable way of business scope in the sector of automobiles.

FUTURE DEVELOPMENTS:

The company got an allotment of 2 Acres of Land from SIPCOT at Industrial Growth Centre, Oragadam, Chennai on a 99 years lease and the company has started to plan to operate from the new location from April 2013 and has in the process sold off the existing scrap yard and loading centre at Ambattur Industrial Estate and the sale proceeds have beer1 utilized to acquire the new area. By this measure, the company has also contributed it might to decongest the urban locality of Chennai. The construction of the own factory and thereby moving the entire activities of Manufacturing from Urban Area to Rural Area is expected to be completed by next year end.

FORM: 8

Corporate identity number of the company	U33112TN1994PTC028942
Name of the company	BESMAK COMPONENTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No.21, Mangali Nagar, IInd Street, S. Arumbakkam, Chennai – 600 106, Tamilnadu, India.
This form is for	Modification of charge Creation of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	The South Indian Bank Limited, Nungambakkam Branch, Sterling Road, Chennai – 600034, Tamil Nadu, India
Nature of instrument creating charge	Supplemental deed of hypothecation. Supplemental memorandum of Deposit of title deeds. Memorandum of Deposit of title deeds. Letter by the Bank address to the company for Release of Property.
Date of instrument Creating the charge	18/12/2010
Amount secured by the charge	Rs. 105.625 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest CCOL: Base rate + 5.40% i.e. 13.70%(Base rate at present 8.30%) Terms of repayment As per sanction letter and as determined by the banker from time to time. Margin CCOL : 25% for stock and 40% for debtors Extent and operation of the charge As per sanction letter and instruments executed and as mentioned in the column No 15 of this e-form Other Nature of Facilities Limit (Rupees in millions) CCOL 55.000 Import / Inland LC 10.000 WCTL 10.000 FSL I 7.500 FSL II 7.000 FSL III 5.675 Bank Guarantee 0.450 Forward Contract 10.000 Total 105.625 All other terms and conditions as per the sanction letter and instruments executed.
Date of instrument modifying the charge	13/12/2010
Particulars of the present modification	a) The amount secured by the charge has been modified to Rs.105.625 millions. b) All other terms and conditions of the original charge and subsequent modification remains unchanged.

FIXED ASSETS:

· Land

· Plant and Machinery

· Furniture and Fittings

· Office Equipments

· Office Equipments – Computers

· Vehicle

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.55.97
UK Pound	1	Rs.89.02
Euro	1	Rs.70.61

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION		0
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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.