MIRA INFORM REPORT

Report Date :

27.09.2012

IDENTIFICATION DETAILS

Name :	MUTUAL CRAFTS PRIVATE LIMITED
Registered Office :	36, Mangala Apartments, Block – G, Kalkaji, New Delhi-110019
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01-01-2004
Com. Reg. No.:	55-123815
Capital Investment / Paid-up Capital :	Rs.5.483 Millions
CIN No.: [Company Identification No.]	U51909DL2004PTC123815
TAN No.: [Tax Deduction & Collection Account No.]	DELM13632D
PAN No.: [Permanent Account No.]	AADCM8500F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Aaron Helmets, Bike Helmets
No. of Employees :	235 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 200000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

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.

INFORMATION PARTED BY

Name :	Mr. Subhash Roy
Designation :	General Manager Marketing
Contact No.:	91-9810727658
Date :	14.09.2012

LOCATIONS

Registered Office :	36, Mangala Apartments, Block – G, Kalkaji, New Delhi-110019, India
Tel. No.:	91-11-25330754 / 26257400
Mobile No.:	91-9810231594 (Mr. Sushil Kumar Aggarwal) 91-9810727658 (Mr. Subhash Roy)
Fax No.:	91-11-25330755 / 26251200
E-Mail :	mutualcraft@hotmail.com rsmodi@yahoo.com
Website :	http://www.mutualcraft.com http://www.aaronhelmet.com
Area :	2000 Sq. ft
Location :	Owned
Factory:	Plot No. A-1, Eldeco-Sidcul Industrial Park, P.O. Sitarganj-262405 District Udham Singh Nagar, Uttarakhand, India
Tel No.:	91-5948-260595
Fax No.:	91-5948-260595
Location :	Owned
Marketing Office :	A-53, Hari Vihar, Opposite Metro Pillar No. 816, Main Dwarka Metro Station, New Delhi-110078, Delhi, India
Location :	Rented

DIRECTORS

As on 30.09.2011

Name :

Ms. Tulika Agarwal

Designation :

Director

Address :

36, Mangla Apartments, Block G, Kalkaji, New Delhi, India

Date of Birth/Age :

12.12.1974

Date of Appointment :

13.04.2006

DIN No.:

01926556

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	U51909DL2004PTC123815	MUTUAL CRAFTS PRIVATE LIMITED	Director	5/4/2006	5/4/2006	-	Active	NO
2	U51909WB1995PTC069522	ASHAPURA MERCANTILES PRIVATE LIMITED	Director	14/12/2009	14/12/2009	-	Active	NO

Name :

Mr. Sushil Kumar Aggarwal

Designation :

Managing Director

Address :

36, Mangla Apartments, Block G, Kalkaji, New Delhi, India

Date of Birth/Age :

06.12.1954

Qualification :

B.E.

Date of Appointment :

13.04.2006

DIN No.:

00182607

KEY EXECUTIVES

Name :	Mr. Subhash Roy
Designation :	General Manager Marketing

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Tulika Agarwal	309990
Sushil Kumar Agarwal	33625
Hariram Dayani	33625
Pramod Kumar Mahansaria	10
Manjula Agarwal	122750
Total	500000

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Aaron Helmets, Bike Helmets
Products :	Bike Helmets Cruz Helmets Motorcycle Helmets Twister Décor Helmets Driving Helmets Jet Flyer Helmets Baby Full Helmets Vintage Plain Helmets Safety Helmets Designer Helmets Baby Open Helmets Vintage Décor Helmets Modular Helmets Motorbike Helmets Cruz Décor Helmets Two Wheeler Accessories
Exports :
Products :	Aaron Helmets, Bike Helmets
Countries :	Nepal Bhutan Bangladesh Sri Lanka
Imports :
Products :	Machine
Countries :	China
Terms :
Selling :	Cash / Credit
Purchasing :	Cash / Credit

GENERAL INFORMATION

Suppliers :

Balsani Plastics

Customers :

Wholesalers and Retailers

· Western Auto

No. of Employees :

235 (Approximately)

Bankers :

• State Bank of India, Rudrapur Branch, Udham Singh Nagar - 263153, Uttaranchal, India
• ICICI Bank Limited, New Delhi, India
• HDFC Bank Limited, New Delhi, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Term Loan
From State Bank of India	22.539	14.412
Working Capital Loan
ICICI Bank OD a/c	13.174	1.341
From State Bank of India	11.253	11.686
Total	46.966	27.439
NOTE: TERM LOAN Rupees Term loan from SBI are secured by parri-passu charge on company's immoveable & moveable assets located in Factory at Sitarjung The Term Loan is repayable within next one year WORKING CAPITAL LOAN The Working Capital Loan from SBI(Rudarpur) is secured by hypothecation of Raw Material, Work in Process, Packing material, Finished Goods and Book Debt and second Charge over Fixed Assets located in Factory Sitarjung, Rudarpur.
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Nepal Trade and Service Link	18.408	16.607
Morang Auto Works	8.330	8.331
Sushil Kumar Aggarwal	20.365	19.100
Shivang Agarwal	0.310	0.000
Tulika Agrawal	0.267	0.266
Shanty Devi Aggarwal	0.670	0.675
Total	48.350	44.979

Banking Relations :	--
Auditors :
Name :	R S Modi and Company Chartered Accountants
Address :	13/29, Rachgna Building, 2^nd Floor, Ajmal Khan Road, Karol Bagh, Delhi, India
PAN.:	AACFR7748A

CAPITAL STRUCTURE

As on 30.09.2011

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

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs. 10/- each	Rs. 7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
548258	Equity Shares	Rs. 10/- each	Rs. 5.483 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		5.483	5.000	5.000
2] Share Application Money		0.000	9.652	2.652
3] Reserves & Surplus		49.769	40.600	40.600
4] (Accumulated Losses)		(4.373)	(17.879)	(17.929)
NETWORTH		50.879	37.373	30.323
LOAN FUNDS
1] Secured Loans		46.966	27.439	33.602
2] Unsecured Loans		48.350	44.979	35.724
TOTAL BORROWING		95.316	72.418	69.326
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		146.195	109.791	99.649
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		99.516	80.334	77.587
Capital work-in-progress		0.000	3.865	0.682
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		17.290	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	13.483	9.610	9.208
	Sundry Debtors	24.844	19.678	14.848
	Cash & Bank Balances	6.199	3.787	3.784
	Other Current Assets	0.264	1.215	1.279
	Loans & Advances	4.221	2.646	0.810
Total Current Assets		49.011	36.936	29.929
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	19.570	11.306	8.380
	Other Current Liabilities	0.057	0.044	0.038
	Provisions	0.000	0.000	0.139
Total Current Liabilities		19.627	11.350	8.557
Net Current Assets		29.384	25.586	21.372
MISCELLANEOUS EXPENSES		0.005	0.006	0.008
Preoperative Expenses
TOTAL		146.195	109.791	99.649

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	85.671	79.966	32.940
		Other Income	1.987	0.695	0.281
		TOTAL (A)	87.658	80.661	33.221
Less	EXPENSES
		Material Consumed	53.553	44.102	20.338
		Manufacturing, Administrative and Selling Expenses	30.762	26.850	22.227
		Increase/(Decrease) in Finished Goods	(1.987)	1.476	(0.287)
		TOTAL (B)	82.328	72.428	42.278
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5.330	8.233	(9.057)
Less	FINANCIAL EXPENSES (D)		3.532	4.452	4.678
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.798	3.781	(13.735)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.929	3.731	3.711
	PROFIT BEFORE TAX (E-F) (G)		(3.784)	0.050	(17.446)
Less	TAX (H)		(17.290)	0.000	0.138
	PROFIT AFTER TAX (G-H) (I)		13.506	0.050	(17.584)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(17.897)	(17.929)	(0.345)
	BALANCE CARRIED TO THE B/S		(4.373)	(17.879)	(17.929)
	Earnings Per Share (Rs.)		0.70	0.90	NA

Particulars	31.03.2012
Sales Turnover (Approximately)	133.900

Expected Sales (2012-13) : Rs.180.000 Millions

The above information has been parted by Mr. Subhash Roy

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	15.41	0.06	(52.93)
Net Profit Margin (PBT/Sales)	(%)	(4.42)	0.06	(52.96)
Return on Total Assets (PBT/Total Assets}	(%)	(2.55)	0.04	(16.23)
Return on Investment (ROI) (PBT/Networth)		0.07	0.00	(0.58)
Debt Equity Ratio (Total Liability/Networth)		2.26	2.24	2.57
Current Ratio (Current Asset/Current Liability)		2.50	3.25	3.50

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	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	No
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

OPERATION

During the Financial Year ended 31.03.2011 The company has earned Profit of Rs 0.145 Millions before Depreciation as against the Profit of Rs 3.781 Millions in the preceeding year. The turnover of the company has remain constant and shown increase of just 6% but due to competition and increase in raw material cost the margin could not increase as expected. The directors are confident to make turnaround during the current financial year since the new product mix has been shown better profitability in the current year. The company inspite the recession has targeted a Turnover of 150.000 Millions during the Current financial Year.

TRADE REFERENCES:

· Western Auto

· Balsani Plastics

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U51909DL2004PTC123815
Name of the company	MUTUAL CRAFTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	36, Mangala Apartments, Block – G, Kalkaji, New Delhi-110019, India mutualcraft@hotmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10061829
Type of charge	· Immovable property · Book debts · Movable property (not being pledge)
Particular of charge holder	State Bank of India, Rudrapur Branch, Udham Singh Nagar - 263153, Uttaranchal, India jkscoknp@gmail.com
Nature of instrument creating charge	1. Supplemental Agreement of Loan cum Hypothecation 2. Letter of Arrangement and Link Letter 3. Memorandum for recording extension of mortgage by deposit of title deeds
Date of instrument Creating the charge	25.03.2011
Amount secured by the charge	Rs.66.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest WC-@5.25% over Base Rate, Currently 13.50% p.a. with monthly rests TL-I @6% over Base Rate, Currently 14.25% p.a. with monthly rests TL-II @1.50% over Base Rate, Currently 9.75% p.a. with monthly rests Terms of Repayment (i) Cash Credit - Repayable on demand. (ii)Term Loan-I-Repayable as per existing repayment schedule. Margin 25% on raw materials: Domestic 25% on stock in process 25% on finished goods 30% on domestic receivables(cover period 90 days) Extent and Operation of the charge The Company's movable and immovable properties as mentioned hereunder (as per Column No.15) are hypothecated and mortgaged to secure following credit facilities aggregating to Rs.66.500 Millions granted by the Bank to the Borrower:- Rs. in Millions 1.CC(Hypo. of Stocks) Rs.40.000 (Sub Limit CC (Book Debts) Rs.25.000 Millions) 2.Term Loan-I Rs.12.600 3.Term Loan-II Rs.13.900 Total Rs.66.500
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of all present and future stock of raw material, semi finished goods, finished goods, stock in process, stores and spares, goods lying in shops, godown or elsewhere including goods in transit. Hypothecation of all present and future book debts, receivables as also the clean or documentary bills, domestic or export whether accepted or otherwise and the cheques / drafts / instruments etc. Hypothecation of Company's entire fixed assets present and future movable and immovable plant and machinery and other misc. fixed assets located at the factory site or where ever else or in transit. Equitable mortgage of Company's immovable properties situated at Plot No.1 Block -A, Phase-I, ELDECO -SIDCUL Industrial Park, Sitarganj, Udham Singh Nagar admeasuring 7221.68 square meters.
Date of instrument modifying the charge	14.06.2010
Particulars of the present modification	The aggregate amount of various credit facilities granted by the Bank has now been enhanced form Rs.48.700 Millions to Rs.66.500 Millions. Therefore, total amount of charge secured against hypothecation of entire fixed assets, stocks, book debts, plant and machinery etc. and equitable mortgage of immovable properties etc. as per details mentioned in column No.15 above has now been enhanced from Rs.48.700 Millions to Rs.66.500 Millions

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.53.58
UK Pound	1	Rs.86.60
Euro	1	Rs.68.94

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	1
--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		26

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.