MIRA INFORM REPORT

Report Date :

12.09.2012

IDENTIFICATION DETAILS

Name :	WESTERN REFRIGERATION PRIVATE LIMITED

Registered Office :	7-B, Pannalal Silk Mill Compound, 78 LBS Marg, Bhandup (West), Mumbai-400078, Maharashtra

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	09.08.1972

Com. Reg. No.:	11-015935

Capital Investment / Paid-up Capital :	Rs.9.981 Millions

CIN No.: [Company Identification No.]	U29191MH1972PTC015935

TAN No.: [Tax Deduction & Collection Account No.]	MUMW02349E

PAN No.: [Permanent Account No.]	AAACW0012H

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer and Exporter of Commercial Refrigeration, Hot and Cold Vending Machines and Ice Machines etc.

No. of Employees :	Information denied by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 2500000

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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BB- (Long term Loan)
Rating Explanation	The inadequate – credit – quality rating assigned by ICRA. The rated instrument carries high credit risk.
Date	16.09.2011

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 (GENERAL DETAILS)

Name :	Mr. Veer
Designation :	Export Executive
Contact No.:	91-22-67161242
Date :	11.09.2012

LOCATIONS

Registered Office / Factory 1 :	7-B, Pannalal Silk Mill compound, 78 LBS Marg, Bhandup (West), Mumbai-400078, Maharashtra, India
Tel. No.:	91-22-67161200/ 1201/ 67161215/ 67161330/ 25607610/ 25622241
Fax No.:	91-22-67161294/ 25962257/ 25962275
E-Mail :	raj@westernequipments.com western@bom5.vsnl.com sales@westernequipments.com veer.adabala@westernequipments.com export@westernequipments.com
Website :	http://www.westernequipments.com
Area :	7000 sq.ft
Location :	Owned

Head office :	Krishna Mills Compound , close to Asian paints, L B S Marg, Behind Sonapur, Bhandup, Mumbai – 400 078, Maharashtra, India
Tel. No.:	91-22-25964497 / 25662235
Fax No.:	91-22-67698108
E-Mail :	mumbai@westernequipments.com

Factory 2 :	Plot No. 288, Old Agra Road, Village Lahe, Atgaon shahpur, Taluka Thane, Maharashtra, India
Area:	5 Acre
Location :	Owned

Factory 3 :	Survey No. 174 / 1 Road, Naroli Village, Silvasa, Pune, Maharashtra, India
Location :	Owned

Branches :	Located at: · Jammu · Ludhiana · Chandigarh · New Delhi · Jaipur · Lucknow · Patna · Guwahati · Kolkata · Ahmedabad · Mumbai · Pune · Nasik · Hyderabad · Bangalore · Chennai · Coimbatore · Cochin

DIRECTORS

As on: 29.09.2011

Name :	Mr. Harmeet Singh Bhupender Singh Machre
Designation :	Managing Director
Address :	51 MICASA, Central Avenue, Santacruz (West), Mumbai - 400054, Maharashtra, India
Date of Birth/Age :	05.03.1972
Date of Appointment :	28.03.2009
DIN No.:	00084003

Name :	Mr. Parmeet Singh Bhupinder Singh Machre
Designation :	Whole time director
Address :	51, Micasa, Centrqal Avenue, Santacruz (West), Mumbai-400054, Maharashtra, India
Date of Birth/Age :	21.11.1973
Date of Appointment :	15.12.1993
DIN No.:	00114467

KEY EXECUTIVES

Name :	Mr. Veer
Designation :	Export Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2011

Names of Shareholders		No. of Shares
Machre Gopalsingh Bhupindersingh		1
Machre Bhupindersingh Harmeetsingh		76638
Machre Bhupindersingh Parmeetsingh		76638
Simran H. Singh		70047
Vineet P. Singh		70047
Parmeet Singh B. Machre HUF		65000
Harmeet Singh B. Machre HUF		65000
Master Aviraj H. Singh		132722
Master Paviraj P. Singh		132722
Rupa A. Sahani		79819
Gunveen A. Sahani		20000
Saneesha A. Sahani		20000
Master Rajveer H. Singh		94722
Master Paramraj P. Singh		94722

Total		998078

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2011

Category		Percentage

Directors or relatives of directors		100.00
Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Commercial Refrigeration, Hot and Cold Vending Machines and Ice Machines etc.

Products :

Product Description	ITC Code
Refrigeration and freezing Equipment and display cabinets	84185000
Oven and Fries	84171000
Tea/Coffe vending machine	84186930

Exports :

Products :

· Commercial Refrigeration

· Hot and Cold Vending Machines

· Ice Machines

Countries :

· Gulf Countries

Imports :

Products :

· Raw Material

Countries :

· China

Terms :

Selling :

Credit (30 days)/ Depends

Purchasing :

Credit (30 days)/ Depends

PRODUCTION STATUS: (As on: 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity
Refrigeration and Freezing Equipments and Display Cabinet	Nos	219000	168000
Ovens and Friers	Nos	1000	1000
Hot/Cold Tea/Coffee Vending Machine	Nos	6000	6000
Refrigeration Equipments Parts	Nos	2500	2500
Vending Machine Parts	Nos	500	500
Stabilizers	Nos	60000	60000

Particulars	Unit	Actual Production
Refrigeration and Freezing Equipments and Display Cabinet	Nos	93887
Hot/Cold Tea/Coffee Vending Machine	Nos	56
Scrap	M Tonnes	411

GENERAL INFORMATION

Customers :

Manufacturer

· Coco Cola

No. of Employees :

Information denied by the management

Bankers :

Canara Bank, Worli Branch, Marthand Building, Dr. A B Road, Worli, Mumbai-400018, Maharashtra, India
Industrial Development Bank of India, IDBI Tower, WTC Complex, Colaba, Mumbai-400005, Maharashtra, India
HDFC Bank Limited
IDBI Bank, Cuffe Parade Branch, Mumbai, Maharashtra, India
ICICI Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	79.811	82.224
Working capital loans banks secured	506.426	405.773
Loans taken for vehicles secured	5.500	3.474

Total	591.737	491.471

Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Loans directors unsecured	50.582	15.859

Total	50.582	15.859


Banking Relations :	--

Auditors :
Name :	Sunderlal Desai and Kanodia Chartered Accountants
Address :	903, Arcadia, 195 NCPA Road, Nariman Point, Mumbai-400021, Maharashtra, India

Associates :	· Western Farm Fresh Private Limited (WFFPL) · Western Air Conditioning and Refrigeration Private Limited (WARPL) · Western Super Fresh Stores Private Limited (WSFPL) · Industrial Metals and Refrigeration Stores (IMRS) · Uni Air Refrigeration Corporation(UARC) · Enta Western Asia Private Limited (EWAPL)

Subsidiary Company :	Haikawa Industries Private Limited

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount

6000000	Equity Shares	Rs.10/- each	Rs.60.000 Millions
10000	Preference Shares	Rs.10/- each	Rs.0.100 Million

	Total		Rs.60.100 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

998078	Equity Shares	Rs.10/- each	Rs.9.981 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		9.981	9.981	9.981
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		623.375	590.462	541.917
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		633.356	600.443	551.898
LOAN FUNDS
1] Secured Loans		591.737	491.471	480.585
2] Unsecured Loans		50.582	15.859	151.711
TOTAL BORROWING		642.319	507.330	632.296
DEFERRED TAX LIABILITIES		46.547	44.493	42.274

TOTAL		1322.222	1152.266	1226.468

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		349.388	304.909	294.354
Capital work-in-progress		16.905	18.991	0.000

INVESTMENT		63.817	65.986	65.986
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	847.873	742.994	617.144
	Sundry Debtors	764.939	701.441	723.751
	Cash & Bank Balances	40.273	35.558	34.809
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	121.750	102.968	109.417
Total Current Assets		1774.835	1582.961	1485.121
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	781.833	736.223	571.686
	Other Current Liabilities	94.873	78.664	45.403
	Provisions	7.497	7.914	4.864
Total Current Liabilities		884.203	822.801	621.953
Net Current Assets		890.632	760.160	863.168

MISCELLANEOUS EXPENSES		0.000	0.000	0.000
Other Assets		1.480	2.220	2.960

TOTAL		1322.222	1152.266	1226.468

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income
		Other Income
		TOTAL	2268.120	2010.042	1959.260

Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	2221.593	1992.730	1944.357

	PROFIT BEFORE TAX		46.527	17.312	14.903

Less	TAX		13.614	6.490	7.360

	PROFIT AFTER TAX		32.913	10.822	7.543

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		520.264	509.442	501.899

	BALANCE CARRIED TO THE B/S		553.177	520.264	509.442

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	439.078	234.943	221.290
	TOTAL EARNINGS		439.078	234.943	221.290

	IMPORTS
		Raw Materials, Spares and Tools Consumables and Trading Goods		567.307	603.315
		Capital Goods		10.147	3.068
	TOTAL IMPORTS		NA	577.454	606.383

	Earnings Per Share (Rs.)		32.98	10.84	12.56

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.45	0.54	0.38

Return on Total Assets (PBT/Total Assets}	(%)	2.19	0.92	0.84

Return on Investment (ROI) (PBT/Networth)		0.07	0.03	0.03

Debt Equity Ratio (Total Liability/Networth)		2.41	2.22	2.27

Current Ratio (Current Asset/Current Liability)		1.33	1.92	2.39

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. In millions)

PARTICULARS	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
Due to Micro and Small Medium Enterprises	0.000	0.000	23.560
Others	781.833	736.223	548.126

Total	781.833	736.223	571.686

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	No
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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
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	Yes

FINANCIAL HIGHLIGHTS:

The Company’s performance in the year 2010-11 was marked with good sales. The total revenue of the company has risen to Rs. 2268.120 Millions as against the corresponding figure of Rs. 2010.042 Millions in earlier year.

The Company has been able to earn Profit after Tax of Rs. 46.527 Millions as against the last year figure of Rs.17.312 Millions.

TRADE REFERENCES:

· Coco Cola

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U29191MH1972PTC015935
Name of the company	WESTERN REFRIGERATION PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	7-B, Pannalal Silk Mill Compound, 78 LBS Marg, Bhandup (West), Mumbai-400078, Maharashtra, India E-mail: western@bom5.vsnl.com
This form is for	Creation of charge
Type of charge	· Book debts · Movable property (not being pledge)
Particular of charge holder	IDBI Bank Limited, Cuffe Parade Branch, Mumbai - 400005, Maharashtra, India E-mail: hk.thakur@idbi.co.in
Nature of instrument creating charge	Joint Deed of Hypothecation dated 29.8.2011 executed by the company in favour of IDBI Consortium for securing the aggregate WC facility of Rs.1020.000 Millions sanctioned to the co by IDBI Bank Limited. - Rs.600.000 Millions and Canara Bank - Rs.420.000 Millions by way of hypothecation on whole of the movable properties of the co including all stock book debts and receivables together with movable Plant and Machinery etc. and other movable fixed assets (more particularly described in Column No.15)
Date of instrument Creating the charge	29.08.2011
Amount secured by the charge	Rs.1020.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per the Working Capital Consortium Agreement dated August 29, 2011 executed between the Company and IDBI Consortium and as amended from time to time Terms of Repayment As per the Working Capital Consortium Agreement dated August 29, 2011 executed between the Company and IDBI Consortium and as amended from time to time Margin As per the Working Capital Consortium Agreement dated August 29, 2011 executed between the Company and IDBI Consortium and as amended from time to time Extent and Operation of the charge The charge operates, inter alia, as i) 1st charge on all current assets of the company ii) 1st charge on the movable fixed assets of the co 's Atgaon unit; and Naroli unit, both present and future on pari passu basis in favour of IDBI Consortium for WC facility of Rs.1020.000 Millions together with Int,, addl.int., premia on prepayment, costs, charges, expenses., and all other monies payable by the co in terms of the said Working Capital Consortium Agreement dated August 29, 2011 and as amended from time to time.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	The whole of the movable properties of the Borrower viz. movable machinery, machinery spares, tools and accessories, entire stocks of raw materials, semi-finished and finished goods consumable stores and spares and such other movables including book-debts, bills whether documentary or clean, outstanding monies receivables situated within i) the Village limits of Lahe, Taluka and Registration Sub-District, District and Registration District Thane, in the State of Maharashtra and ii) the village limits of Naroli, Union Territory of Dadra and Nagar Haveli

Fixed Assets:

· Freehold Land

· Factory Building

· Office Premises

· Shop Premises

· Residential Flats

· Plant and Machinery

· Dies Moulds and Tools

· Office Equipments

· Weight and Scales

· Vehicles

· Furniture and Fittings

· Air Conditioners

· Cycle

· Computers

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.55.52
UK Pound	1	Rs.88.85
Euro	1	Rs.70.85

INFORMATION DETAILS

Information Gathered by :	SBA

Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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	-