MIRA INFORM REPORT

Report Date :

29.09.2012

IDENTIFICATION DETAILS

Name :	KAY HI-TECH ENGINEERS PRIVATE LIMITED
Registered Office :	BXXIX-2345/2-C/7, UCO Bank Street, G. T. Road, Jugiana, Ludhiana – 141 010, Punjab
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	25.09.2007
Com. Reg. No.:	16-31387
Capital Investment/ Paid-up Capital:	Rs.1.964 Millions
CIN No.: [Company Identification No.]	U51103PB2007PTC031387
TAN No.: [Tax Deduction & Collection Account No.]	JLDK02134G
PAN No.: [Permanent Account No.]	AADCK2449M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Fasteners, etc.
No. of Employees:	90 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 62000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However trade relations are reported as 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. Tehal Singh
Designation :	Accountant
Contact No.:	91-9915503182
Date :	20.09.2012

LOCATIONS

Registered Office/Factory :	BXXIX-2345/2-C/7, UCO Bank Street, G. T. Road, Jugiana, Ludhiana – 141 010, Punjab, India
Tel. No.:	91-161-2512476 / 3295003
Fax No.:	91-161-2512657
E-Mail :	engineers@nutandbolts.com ca.rgarg@gmail.com
Website :	http://www.nutandbolts.com
Area :	72000 sq. fts.
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :	Mr. Kuldeep Singh
Designation :	Director
Address :	H. No. 298-L , Model Town, Ludhiana – 141 001, Punjab, India
Date of Birth/Age :	07.03.1966
Qualification :	Graduate
Date of Appointment :	25.09.2007
Din No.:	01489000
Name :	Mrs. Saran Kaur
Designation :	Director
Address :	H. No. 298-L , Model Town, Ludhiana – 141 001, Punjab, India
Date of Birth/Age :	25.08.1930
Date of Appointment :	25.09.2007
Din No.:	01489026
Name :	Mrs. Jagjit Kaur
Designation :	Director
Address :	H. No. 298-L , Model Town, Ludhiana – 141 001, Punjab, India
Date of Birth/Age :	29.11.1973
Date of Appointment :	25.09.2007
Din No.:	01735273

KEY EXECUTIVES

Name :	Mr. Tehal Singh
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Kuldeep Singh	55200
Jagjeet Kaur	8000
Saran Kaur	3000
Punya Stock Brokers (Private) Limited, India	20000
Vibhuti Shares and Stocks (Private) Limited, India	21500
Big Bull Commodities (Private) Limited, India	8000
Best Buy Commodities (Private) Limited, India	5000
Best Trader Commodities (Private) Limited, India	2000
City Commodities and Trading Services (Private) Limited, India	3000
Vision Commodities and Derivatives (Private) Limited, India	12000
Shivani Gupta	3000
Sandeep Gupta	5500
Sushul Kumar Gupta	5400
Kamlesh Devi	2800
Ashok Makkar	5000
Seema Makkar	5000
Ashok Makkra	3000
Tanvi	4000
Suman	5000
Chok Raj	5000
Paramvir Singh	3000
Mauank Financial Services (Private) Limited, India	5000
Pankaj Goyal	3500
Nisha Goyal	3500
Total	196400

As on 30.09.2011

Category	Percentage
Directors or relatives of directors	33.70
Other top fifty shareholders	66.30
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Fasteners, etc.
Products :	· Nuts · Bolts · Washers · Special Fasteners
Exports :
Products :	Fasteners
Countries :	· UAE · USA · China
Imports :
Products :	Raw Materials
Countries :	· China · Taiwan
Terms :
Selling :	Credit 30 Days
Purchasing :	Credit 20 Days

GENERAL INFORMATION

Suppliers :

· Aggarwal Iron Industries

· Allied Recycling Limited

· Anuj Chemicals

· Associated Road Carriers Limited

· Bansal Steel Udyog

· D. K. Alloys (Private) Limited

· Fair Telecom Company

· H R Chemicals

· Joshi Electric Trading Company

· Puja sales corporation

· Mukesh Steel (India)

Customers :

· APS Associates (Private) Limited

· Abhijeet Iron and Steel Company

· Bharat Sanchar Nigam Limited

· Bhushan Steel Limited

· BRG Energy Limited

· BRK Industries

· GEI Industrial Systems Limited

· Godrej and Boyce Manufacturing Limited

· Anand Bolts

· Anand Metal Traders

· Deccan Engineering Industries

No. of Employees :

90 (Approximately)

Bankers :

· Union Bank of India G. T. Road, Miller Ganj, Ludhiana – 141 003, Punjab, India

· Axis Bank, 105 The Boulevard, The Mall, Ludhiana – 141 001, Punjab, India

Facilities :

· CC – 37.000 Millions (Axis Bank)

Rs. In Millions

Secured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
HDFC Bank – Car Loan Honda City		0.471
HDFC Bank – Car Loan Maruti		0.095
HDFC Bank – Car Loan I-20		0.371
NSIC _B/G		0.000
Reliance Capital – Loan (Secured against Guarantee of Directors)		11.067
Union Bank of India C/C (Secured against hypothecation of Stock and Book Debts) (Car Loans secured against Hypothecation of respective cars)		19.523
Term Loan for Machinery (C/C Limits secured against Hyp. Of stock and book debts) (C/C Limits secured against Hyp. Of respective cars)		0.000
Total	36.434	31.527

Unsecured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
From Directors	0.590	0.559
From Others	9.792	10.423
Total	10.382	10.982

Banking Relations :	--
Auditors :
Name :	Rajesh K Garg and Associates Chartered Accountants
Address :	Ist Floor, Panesar Market, Overlock Road, Ludhiana – 141 003, Punjab, India
Tel. No.:	19-161-2544839(O)/ 91-161-2444839 ®

CAPITAL STRUCTURE

As on 31.03.2011

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
196400	Equity Shares	Rs.10/- each	Rs.1.964 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		1.964	1.964	1.200
2] Share Application Money		0.604	1.400	3.440
3] Reserves & Surplus		12.861	12.516	5.507
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		15.429	15.880	10.147
LOAN FUNDS
1] Secured Loans		36.434	31.527	0.812
2] Unsecured Loans		10.382	10.982	0.000
TOTAL BORROWING		46.816	42.509	0.812
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		62.245	58.389	10.959
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		17.620	13.492	5.230
Capital work-in-progress		1.468	1.027	0.851
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	47.894	28.780	11.941
	Sundry Debtors	33.272	34.859	3.287
	Cash & Bank Balances	2.210	0.593	0.035
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	8.780	7.056	5.832
Total Current Assets		92.156	71.288	21.095
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	46.062	25.470	16.261
	Other Current Liabilities	2.874	1.953	0.034
	Provisions	0.150	0.095	0.035
Total Current Liabilities		49.086	27.518	16.33
Net Current Assets		43.070	43.770	4.765
MISCELLANEOUS EXPENSES		0.087	0.100	0.113
TOTAL		62.245	58.389	10.959

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income			3.709
		Other Income			0.203
		TOTAL (A)	116.645	88.270	3.912
Less	EXPENSES
		Cost of Goods Sold			3.333
		Personal Overheads			0.007
		Administrative Overheads			0.079
		TOTAL (B)	113.567	86.186	3.419
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3.078	2.084	0.493
Less	FINANCIAL EXPENSES (D)		0.000	0.000	0.007
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.078	2.084	0.486
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.586	1.851	0.378
	PROFIT BEFORE TAX (E-F) (G)		0.492	0.233	0.108
Less	TAX (H)		0.150	0.095	0.001
	PROFIT AFTER TAX (G-H) (I)		0.342	0.138	0.107
	Earnings Per Share (Rs.)		1.74	0.70	-

Particulars	31.03.2012
Sales Turnover(Approximately)	202.500

Expected Sales (2012-2013): Rs.250.000 Millions

The above information has been parted by Mr. Tehal Singh

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.29	0.16	2.74
Net Profit Margin (PBT/Sales)	(%)	NA	NA	2.91
Return on Total Assets (PBT/Total Assets}	(%)	0.45	0.27	0.41
Return on Investment (ROI) (PBT/Networth)		0.03	0.01	0.01
Debt Equity Ratio (Total Liability/Networth)		6.22	4.41	1.69
Current Ratio (Current Asset/Current Liability)		1.88	2.59	1.29

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of contact person	Yes
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	Yes
Capital the business	Yes
Details of sister concerns	No
Major Suppliers	Yes
Major Customers	Yes
Payment Terms	Yes
Export / Import Details [If Applicable]	Yes
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes
Date of Birth of Proprietor/Partner/Director, if available	Yes
PAN of Proprietor/Partner/Director, if available	No
Voter ID No of Proprietor/Partner/Director, if available	No
External Agency Rating, if available	No

FORM 8

Corporate identity number of the company	U51103PB2007PTC031387
Name of the company	KAY HI-TECH ENGINEERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	UCO Bank Street, G. T. Road, Jugiana, Ludhiana – 141 010, Punjab, India Email: engineers@nutandbolts.com
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge) Others
Particular of charge holder	Axis Bank, 105 The Boulevard, The Mall, Ludhiana – 141 001, Punjab, India Email: yitesh.gupta@axisbank.com
Nature of instrument creating charge	Composite Hypothecation Deed of Axis Bank Ltd. stating -Cash Credit Limits -Rs.37.000 Millions of which WCDL as Sub-Limit Rs.25.000 Millions -Term Loan -Rs.0.771 Millions
Date of instrument Creating the charge	26.11.2011
Amount secured by the charge	Rs. 37.771 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest: on C/C Limit & T/L-3.50% above base rate i.e.13.5% PA subject to change from time to time on WCDL-2.75% above base rate i.e.12.75% PA subject to change from time to time Term of Payment: For Term Loan 43 Installments of Rs.17543/+Intt. and 44th of Rs.16651/- +Intt. For C/C Limit - On Demand For WCDL- Bullet Repayment on maturity. Margin 25% on Stock,40% on Receivables Extent and operation of the charge 100% Others:
Short particulars of the property charged (Including location of the property)	Hypothecation of unit's all kind of RM, WIP, FG, Book debts and other current assets. Hyp.of present and future Plant and Machinery, Movable Assets

FIXED ASSETS

· Factory Building

· Electric Fitting

· Fans

· Furniture and Fixtures

· Car

· Cooling Tower

· Cycle

· Electric Transformers

· Fire Extinguisher

· Generator

· Mobile

· Machinery

· Office Equipments

· Scooter

· Tools and Dies

· Water Tank

· Water Treatment Plant

· Weighing Scale

· Xerox Machine

· Computer and Printer

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.52.70
UK Pound	1	Rs.85.72
Euro	1	Rs.68.15

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	BYI

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	3
--CREDIT LINES	1~10	3
--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		27

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.