MIRA INFORM REPORT

Report Date :

18.09.2012

IDENTIFICATION DETAILS

Name :	WESTERN INDIA FORGINGS PRIVATE LIMITED
Registered Office :	Plot No. J 2, “S” Block MIDC, Bhosari, Pune-411026, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.03.1981
Com. Reg. No.:	11-24155
Capital Investment / Paid-up Capital :	Rs.99.320 Millions
CIN No.: [Company Identification No.]	u28910PN1981PTC024155
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of an Open and Close Die Forgings. Importer of Machinery.
No. of Employees :	700 [150 Only two factory]

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 3594060
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well 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	CRISIL
Rating	A
Rating Explanation	Having adequate degree of safety regarding timely servicing of financial obligation. It carry low credit risk.
Date	March, 2011

RBI DEFAILTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAILTERS’ 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. U.G. Apte
Designation :	General Manager Finance
Contact No.:	91-9822790451
Date :	17.09.2012

LOCATIONS

Registered Office / Plant I :	Plot No. J 2, “S” Block MIDC, Bhosari, Pune-411026, Maharashtra, India
Tel. No.:	91-20-27120240 / 27122205 / 27122667
Mobile No.:	91-9822790451 [Mr. U.G. Apte] 91-9960261647 [Mr. Wilfred C.]
Fax No.:	91-20-27120410 / 27122202
E-Mail :	ugapte@westenindiaforgings.com wifl@westernindiaforgings.com
Website :	www.westernindiaforgings.com
PLANT II :	W - 195 - B M.I.D.C.| Bhosari, Pune-411026, Maharashtra, India
Tel. No.:	91-20-27120519
PLANT III :	Gat 163 Hissa No. 1 Sanaswadi, Taluka Shirur, Pune-412208, Maharashtra, India
Tel. No.:	91-2137-320202
PLANT IV :	29/1, Kharadi Village, Off Pune-Nagar Road, Kharada, Pune-400019, Maharashtra, India
Tel. No.:	91-20-3241 5135 / 3251 7323
Fax No.:	91-20-27011371

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Arun Krishankumar Jindal
Designation :	Director
Address :	Lane No. 4, Koregaon Park, Pune-411001, Maharashtra, India
Date of Birth/Age :	11.11.1960
Date of Appointment :	30.03.1981
Din No.:	00121523
Name :	Mr. Krishankumar Brijlal Jindal
Designation :	Director
Address :	Lane No. 4, Koregaon Park, Pune-411001, Maharashtra, India
Date of Birth/Age :	17.08.1930
Date of Appointment :	30.03.1981
Din No.:	00280819
Name :	Mr. Sanjay Krishankumar Jindal
Designation :	Director
Address :	301, Marvel, Grandeur, 12, Boat Club Road, Pune-411001, Maharashtra, India
Date of Birth/Age :	18.11.1962
Date of Appointment :	01.10.2006
Din No.:	01624895
Name :	Mr. Mukundan Madathil
Designation :	Director
Address :	Flat No. E-9, Bhau Patil Road, Khaki, Pune-411003, Maharashtra, India
Date of Birth/Age :	22.04.1957
Date of Appointment :	08.10.2008
Din No.:	02354113

KEY EXECUTIVES

Name :	Mr. U.G. Apte
Designation :	General Manager Finance
Name :	Mr. Wilfred C.
Designation :	Export Departments

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Krishankumar Brijlal Jindal	4939891
Arun Krishankumar Jindal	853237
Sanjay Krishankumar Jindal	1634246
Shruti Arun Jindal	3
Kiran Sanjay Jindal	3
Prashant Gupta	3
Arun Krishankumar Jindal	607361
Shubham Arun Jindal	516256
Arushi Arun Jindal	381000
Renu Vivek Agarwal	1000000
Total	9932000

AS ON 30.09.2011

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

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of an Open and Close Die Forgings. Importer of Machinery.

Products :

Product Description	Item Code
Forgings	8205

Exports :

Products :

Open and Close Die Forgings

Countries :

• South Asia
• European countries
• United States of America

Imports :

Products :

Machinery

Countries :

• Japan
• Russia
• China

Terms :

Selling :

Credit (60 days)

Purchasing :

L/C

GENERAL INFORMATION

Customers :

· Wind Engineering

· Manufacturer

No. of Employees :

700 [150 Only two factory]

Bankers :

· State Bank of India, Industrial Financial branch, Lead Bank, Tara Chambers, 2^nd Floor, Near Mariaai Police Chowky, Pune-Mumbai Old Highway, Wakdewadi, Pune-411003, Maharashtra, India

· Citi Bank, Branch M G Road, Pune, Maharashtra, India

· Standard Chartered Bank, Branch M G Road, Pune, Maharashtra, India

· Standard Chartered Bank, 90, M.G. Road, Fort, Mumbai-400001, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Term Loan [Personally guaranteed by the directors against hypothecation of plant and machinery]
State Bank of India	93.435	128.546
Standard Chartered Bank – Buyers Credit [Against hypothecation of vehicles]	19.820	28.200
Kotak Mahindra Primus Limited	0.000	0.000
Reliance Capital Limited	3.499	2.908
ICICI Bank	0.187	1.213
Working Capital Limited [Against hypothecation of stocks and debts]
State Bank of India	294.666	244.347
Citi Bank	90.453	68.950
Standard Chartered Bank	78.901	21.515
Total	580.960	495.679
Unsecured Loan
Form Directors	129.670	91.249
Total	129.670	91.249

Banking Relations :	--
Auditors :
Name :	Gokhale Tansale and Ghatpande Chartered Accountants
Address :	102, R.K. Classic New D.P. Road, Opposite Ashish Garden, Kothud, Pune-411029, Maharashtra, India
Tel. No.:	91-20-30224518/22
Fax No.:	91-20-30228978
E-Mail :	suneel@gtgca.com
Companies / Other Organisation under the control of KMP of their relatives where transaction are entered into and / or outstanding balance exists as at the balance sheet:	Karan Rader Private Limited Western Heat and Forge Private Limited
Companies / Other Organisation under the control of KMP of their relatives where transaction are entered into and / or no outstanding balance exists as at the balance sheet:	Arya Associates

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
19980000	Equity Shares	Rs.10/- each	Rs.199.800 Millions
20000	Preferences Shares	Rs.10/- each	Rs.0.200 Million
	Total		Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9932000	Equity Shares	Rs.10/- each	Rs.99.320 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		99.320	99.320	99.320
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		799.195	736.930	690.208
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		898.515	836.250	789.528
LOAN FUNDS
1] Secured Loans		580.960	495.679	520.873
2] Unsecured Loans		129.670	91.249	89.688
TOTAL BORROWING		710.630	586.928	610.561
DEFERRED TAX LIABILITIES		115.042	97.526	72.492
TOTAL		1724.187	1520.704	1472.581
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		926.206	904.658	810.439
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.056	9.979	0.056
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	530.931	319.333	247.883
	Sundry Debtors	828.442	410.597	497.428
	Cash & Bank Balances	3.098	3.629	9.509
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	298.606	415.229	464.902
Total Current Assets		1661.077	1148.788	1219.722
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	687.137	234.710	220.941
	Other Current Liabilities	24.198	23.605	18.271
	Provisions	153.566	286.155	320.173
Total Current Liabilities		864.901	544.470	559.385
Net Current Assets		796.176	604.318	660.337
MISCELLANEOUS EXPENSES		1.749	1.749	1.749
TOTAL		1724.187	1520.704	1472.581

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income			2529.438
		Operating Income			49.717
		Other Income			3.033
		Book Profit on Sale Investments			0.000
		TOTAL (A)	2487.899	1789.650	2582.188
Less	EXPENSES
		Raw Material Consumed			1617.553
		Labour			134.321
		Manufacturing Expenses			338.475
		Administration Expenses			35.688
		Selling Expenses			38.221
		Preliminary Expenses Written Off			0.999
		Merger Expenses Written Off			0.989
		Loss on Sale of Fixed Assets			1.137
		Increase in Stock			(5.874)
		TOTAL (B)	2337.611 [Including Depreciation and Financial Expenses]	1671.928 [Including Depreciation and Financial Expenses]	2161.509
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)				420.679
Less	FINANCIAL EXPENSES (D)				95.883
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)				324.796
Less/ Add	DEPRECIATION/ AMORTISATION (F)				43.078
	PROFIT BEFORE TAX (E-F) (G)		150.288	117.722	281.718
Less	TAX (H)		66.449	45.037	83.286
	PROFIT AFTER TAX (G-H) (I)		83.839	72.685	198.432
	APPROPRIATIONS
		Transfer to General Reserve	8.564	7.251	19.843
		Proposed Dividend	19.864	19.864	19.864
		Tax on Dividend	3.376	3.376	3.376
	BALANCE CARRIED TO THE B/S		53.836	42.018	155.349
	EARNINGS IN FOREIGN CURRENCY		404.448	391.127	858.431
	Earnings Per Share (Rs.)		8.62	7.32	19.98

Particulars	31.03.2012
Sales Turnover [Approximately]	3300.000

Expected Sales (2012-13) : Rs.3500.000 Millions

The above information has been parted by Mr. U.G. Apte (General Manager Finance).

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.37	4.06	7.68
Net Profit Margin (PBT/Sales)	(%)	NA	NA	11.14
Return on Total Assets (PBT/Total Assets}	(%)	3.24	5.73	13.88
Return on Investment (ROI) (PBT/Networth)		0.17	0.14	0.36
Debt Equity Ratio (Total Liability/Networth)		1.75	1.35	1.48
Current Ratio (Current Asset/Current Liability)		1.92	2.11	2.18

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditors	687.137	234.710	220.941

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--------
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	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	No
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

Bankers Charges Report as per Registry

Corporate identity number of the company	U28910PN1981PTC024155
Name of the company	WESTERN INDIA FORGINGS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No J 2 Block Industrialarea Pimpri Midc, Pune – 411026, Maharashtra, India
This form is for	Modification of charge
Type of charge	Immovable Property
Particular of charge holder	Standard Chartered Bank
Nature of instrument creating charge	Deed of Mortgage dated 20th June 2012 executed to create charge on immovable properties of Borrower ie Western India Forgings Private Limited.
Date of instrument Creating the charge	20.06.2012
Amount secured by the charge	Rs.252.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 16 equal installments starting at the end of 15th month from date of first drawdown. Terms of repayment 16 equal installments starting at the end of 15th month from date of first drawdown. Extent and Operation of the charge Pari passu charge on the immovable properties of the Company. The security by way of mortgage has been created in favour of Standard Chartered Bank for the purpose of securing the ECB facility to the extent of USD 4.50 Mn granted / to be granted to the Borrower. Others The security by way of hyp./mortg. has been created in f/o the Bank for securing the ECB credit facility to the extent of USD 4.5 Mn granted to the Company. For the purpose of filing Form 8, it is clarified that Facility Amount is repayable in USD, hence any repayment from sale/enforcement proceeds of abovesaid assets shall be made at prevailing foreign currency exchange rate, for conversion from Indian Rupees to USD at the time of repayment to ensure full repayment of the Facility Amount.
Short particulars of the property charged	First pari passu charge on 1)all that piece or parcel of land bearing Gat No. 163, Hissa no.1 admeasuring 3 Hectares-84 ares (aakar Rs. 3.98 ps) situate, lying and being at village Sanaswadi, Taluka Shirur, district Pune and in the registration sub district of sub registrar Shirur.2) All that piece and parcel of land bearing Plot No. J-2 admeasuring 4050 sq. mtrs or thereabout in S Block of Pimpri Industrial Area, within the village limits of Bhosari and within the limits of Pimpri Chinchwad Municipal Corporation, Taluka and Registration Sub district Haveli and District and Registration district Pune. 3) All that piece and parcel of land bearing Plot No. J-3 admeasuring 3600 sq. mtrs or thereabout together with built up shed admeasuring 931.42 sq. mtrs in Pimpri Industrial Area, within the village limits of Bhosari and within the limits of Pimpri Chinchwad Municipal Corporation, Taluka and Registration Sub district Haveli and District and Registration district Pune. 4) First pari passu charge on All piece and parcel of half undivided share of S.N. 29, Hissa No.1 situate, lying and being at village Kharadi,district of Pune. (Property owned by Kran Rader Private Limited)
Particulars of the present modification	By present modification, additional security is provided by creating first pari passu charge on the immovable properties of the Company to secure ECB loan of USD 4.5 Mn.

Fixed Assets:

· Land

· Buildings

· Plant and Machinery

· Vehicles

· Furniture

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.54.73
UK Pound	1	Rs.88.61
Euro	1	Rs.71.34

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	SDA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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.