MIRA INFORM REPORT

Report Date :

20.04.2013

IDENTIFICATION DETAILS

Name :	AKSHAR PRECISION TUBES PRIVATE LIMITED
Registered Office :	Plot No. 38-41, Baroda Co-Operative Industrial Estate, Dharamsinh Desai Marg, Chhani Road, Vadodara – 390002, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	16.01.1998
Com. Reg. No.:	04-033576
Capital Investment / Paid-up Capital :	Rs. 105.000 Millions
CIN No.: [Company Identification No.]	U25110GJ1998PTC033576
PAN No.: [Permanent Account No.]	AACCA3975H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Studded Tubes, High Frequency Welded Fin Tubes, Aluminum Fin Tubes, etc
No. of Employees :	40 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 580000
Status :	Satisfactory
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears continuous dip in profits during 2012. It is found to have above - average financial risk profile, diversified product profile, and established customer relationships. Trade relations are reported as fair. Business is active. Payment terms are slow but correct. The company can be considered 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating = BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	26.03.2013

Rating Agency Name	CRISIL
Rating	Short Term Rating = A3
Rating Explanation	Moderate degree of safety and higher credit risk
Date	26.03.2013

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. Ashutosh Gupta
Designation :	Director
Contact No.:	91-9725499114
Date :	02.04.2013

LOCATIONS

Registered Office :	Plot No. 38-41, Baroda Co-Operative Industrial Estate, Dharamsinh Desai Marg, Chhani Road, Vadodara – 390002, Gujarat, India
Tel. No.:	91-265-2776350 / 6583348
Mobile No.:	91-9725499114 (Mr. Ashutosh Gupta)
Fax No.:	91-265-2774725
E-Mail :	Info@aksharfintubes.com a.gupta@aksharfintubes.com
Website :	http://www.aksharfintubes.com
Area :	1400 Sq.ft.
Location :	Owned
Factory :	Survey No. 369, Block No. 368/1/A, Bankarda – Bhadarva Road, Village Rania, Taluka Salvi, District Vadodara, Gujarat, India
Area :	45871 Sq.mt.
Location :	Owned

SOLE PROPRIETOR

As on 29.09.2012

Name :	Mr. Shukhmalchand Ajitprasad Jain
Designation :	Director
Address :	1, Haribhakti Expension, Old. Padra Road, Near Telephone Exchange, Vadodara – 390007, Gujarat, India
Date of Birth/Age :	22.09.1934
Date of Appointment :	17.01.1998
Pan No.:	ABPPJ8378L
DIN No.:	00164802
Name :	Mr. Kulbhushan Shukhmakchand Jain
Designation :	Director
Address :	1, Haribhakti Expension, Old. Padra Road, Near Telephone Exchange, Vadodara – 390007, Gujarat, India
Date of Birth/Age :	01.11.1963
Date of Appointment :	17.01.1998
Pan No.:	ABMPJ8188R
DIN No.:	00164848
Name :	Mr. Ashutosh Vedprakash Gupta
Designation :	Director
Address :	C/1, Kalindi Appts. Pashabhai Park, Near Race Cource Circle, Vadodra – 390007, Gujarat, India
Date of Birth/Age :	23.07.1972
Date of Appointment :	17.01.1998
Pan No.:	ACMOG4512H
DIN No.:	00164825
Name :	Mr. Shatrunjay Dhananjay Patel
Designation :	Director
Address :	A/21, Raliyatbanagar Society, Laxmipura Road, Baroda – 390023, Gujarat, India
Date of Birth/Age :	23.11.1974
Date of Appointment :	17.01.1998
Pan No.:	ACFPP9543A
DIN No.:	00164929
Name :	Mrs. Raney Kulbitusan Jain
Designation :	Director
Address :	1, Haribhakti Expension, Old. Padra Road, Near Telephone Exchange, Vadodara – 390007, Gujarat, India
Date of Birth/Age :	22.04.1966
Date of Appointment :	17.01.1998
Pan No.:	ABPPJ8379M
DIN No.:	00164896
Name :	Mrs. Sangeeta Ajay Garg
Designation :	Director
Address :	1, Haribhakti Expension, Old. Padra Road, Near Telephone Exchange, Vadodara – 390007, Gujarat, India
Date of Birth/Age :	12.11.1961
Date of Appointment :	17.01.1998
Pan No.:	ACCPG7531Q
DIN No.:	00164872

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Sukhmalchand Jain	3677100
Kulbhushan S. Jain	2522100
Falguni D. Patel	21000
Shatrunjay D. Patel	693000
Ashutosh V. Gupta	525000
Raney K. Jain	1168650
Sangita A. Garg	811650
Dinesh G. Patel	126000
Nirmala V. Garg	52500
Manisha A. Gupta	31500
Chaula D. Patel	52500
Chaula D. Patel (With Shatrunjay Patel)	105000
Nikita K. Jain	210000
Nirmita K. Jain	210000
Jaymini S. Patel	42000
Mayur S. Patel	126000
Harikrushna S. Patel	126000
Total	10500000

As on 29.09.2012

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 Studded Tubes, High Frequency Welded Fin Tubes, Aluminum Fin Tubes, etc
Products :	· Studded Tubes · High Frequency Welded Fin Tubes · Aluminum Fin Tubes · Welded Square Fin Tubes · Extruded Aluminum Fin Tubes · Oval Stud / Welded Elliptical Stud Tubes · Air Cooled Heat Exchanger / Surface Condensers · Convection Modules And Economizers / Colls / Stacks · Heat Recovery Steam Generation (HRSG) Modules / Waste Heat Recovery Units · Heat Exchangers and Pressure Parts · Non Pressure Parts · Boiler Elements
Exports :
Products :	Studded Tubes, High Frequency Welded Fin Tubes, Aluminum Fin Tubes
Countries :	Gulf County
Terms :
Selling :	Cash / Credit
Purchasing :	Cash / Credit

GENERAL INFORMATION

Customers :

Retailers and End Users

No. of Employees :

40 (Approximately)

Bankers :

HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long Term Borrowing
Rupee term loans from banks	27.015	30.402
Total	27.015	30.402

Banking Relations :	--
Auditors :
Name :	M. V. Shah and Company Chartered Accountants
Address :	202, mangal Ashish Apartment 31, Sampat Rao Colony, R. C. Dutt Road, Vadodara – 390007, Gujarat, India
PAN.:	AATFM3525D

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs.10/- each	Rs.110.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10500000	Equity Shares	Rs.10/- each	Rs.105.000 Millions

Disclosure of shareholding more than five per cent in company

Name of shareholder	Number of shares held in company	Percentage of shareholding in company
Mr. Sukhmalchand Jain	36,77,100	3502.00%
Mr. Kulbhushan Jain	25,22,100	2402.00%
Mr. Shatrunjay Patel	99,000	660.00%
Mr. Ashutosh Gupta	6,30,000	600.00%
Mr. Raney Jain	11,68,650	1113.00%
Mr. Sangita Garg	8,11,650	773.00%

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		105.000	15.000	15.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		41.984	125.560	105.632
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		146.984	140.560	120.632
LOAN FUNDS
1] Secured Loans		27.015	30.402	55.856
2] Unsecured Loans		159.247	142.960	88.031
TOTAL BORROWING		186.262	173.362	143.887
DEFERRED TAX LIABILITIES		0.478	0.000	0.000
TOTAL		333.724	313.922	264.519
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		123.829	108.104	91.546
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.256	0.320
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	77.321	83.320	42.129
	Trade Receivable	116.353	103.024	119.440
	Cash & Bank Balances	8.715	8.095	9.713
	Other Current Assets	71.568	72.422	2.730
	Loans & Advances	2.260	3.556	48.355
Total Current Assets		276.217	270.417	222.367
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	11.233	21.522	18.254
	Other Current Liabilities	0.127	0.128	0.276
	Provisions	54.962	43.205	32.250
Total Current Liabilities		66.322	64.855	50.780
Net Current Assets		209.895	205.562	171.587
MISCELLANEOUS EXPENSES		0.000	0.000	1.066
TOTAL		333.724	313.922	264.519

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	297.311	212.614	297.834
		Other Income	2.077	12.876
		TOTAL	299.388	225.490	297.834
Less	EXPENSES
		Office Expenses
		Administrative Expenses	267.743	186.142	290.663
		Advertising Expenses
		TOTAL	267.743	186.142	290.663
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		31.645	39.348	7.171
Less/ Add	DEPRECIATION/ AMORTISATION		15.141	9.556	8.434
	PROFIT BEFORE TAX		16.504	29.792	15.605
Less	TAX		10.080	9.903	18.570
	PROFIT AFTER TAX		6.424	19.889	34.175
	Earnings Per Share (Rs.)		1.57	NA	NA

Expected Sales (2012-13) : Rs. 380.000 Millions

The above information has been parted by Mr. Ashutosh Gupta

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.15	8.82	11.48
Net Profit Margin (PBT/Sales)	(%)	5.55	14.01	NA
Return on Total Assets (PBT/Total Assets}	(%)	4.13	7.87	4.97
Return on Investment (ROI) (PBT/Networth)		0.11	0.21	0.12
Debt Equity Ratio (Total Debt /Networth)		1.27	1.23	1.19
Current Ratio (Current Asset/Current Liability)		4.16	4.17	4.38

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	No
18]	Major customers	No
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

Note:

The registered office of the company has been shifted from 217/219, Race Coursetower, Race Course Circle, Vadodara – 390007, Gujarat, India to present address w.e.f. 09.09.2006

COMPANY’S PERFORMANCE:

The Company has reported Profit after Tax of Rs.6.423 Millions during the year as against the previous year’s profit was Rs.19.889 Millions and the Income from Operation during the year is Rs.297.311 Millions as against the last year was Rs.212.614 Millions. In order to conserve resources during the year, Directors do not recommend any dividend for the financial year ended, March 31, 2012.

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2012	As on 31.03.2011
Long Term Borrowing
Loans and advances from related parties	69.582	56.048
Rupee term loans from banks	89.665	86.912
Total	159.247	142.960

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U25110GJ1998PTC033576
Name of the company	AKSHAR PRECISION TUBES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 38-41, Baroda Co-Operative Industrial Estate, Dharamsinh Desai Marg, Chhani Road, Vadodara – 390002, Gujarat, India info@aksharfintubes.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80027907
Type of charge	· Book debts · Movable property (not being pledge) Floating charge
Particular of charge holder	HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India RBBform8@hdfcbank.com
Nature of instrument creating charge	Supplementary Letter of Hypothecation
Date of instrument Creating the charge	07.09.2012
Amount secured by the charge	Rs. 244.501 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest at the rate as may be communicated by the Bank from time to time. Terms of Repayment Working capital facility shall be payable on demand. Term loan facility shall be repayable in suitable installments. Margin As may be stipulated by the Bank from time to time. Extent and Operation of the charge Hypothecation by way of First Charge on Company's Stocks, Book Debts, Plant and Machinery and Vehicles to secure as a continuing security for the repayment of Rs.244.501 Millions together with interest, costs, charges, expenses and other moneys due and payable by the Company to the Bank.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Stock-in-Trade, consisting of raw materials, goods in process of manufacturing finished goods, and other merchandise whatsoever being movable properties All the debts, that is, all the book debts, outstandings, monies receivables, claims, bills, invoice documents, contracts, guarantees, and rights The movable plant and machinery and vehicles, which may now or at any time hereafter belong to the Borrower or come to
Date of instrument modifying the charge	10.10.2011
Particulars of the present modification	The Charge shall now stand increased from to Rs.215.883 Millions to Rs. 244.501 Millions against the security of Stocks and Book Debts, Plant and machinery and vehicles of the Company.

FIXED ASSETS

· Land

· Factory Building

· Plant and Machinery

· Tools and Equipments

· Electrical Installation

· Furniture and Fixture

· Office Equipment

· Computer

· Vehicles

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 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.54.03
UK Pound	1	Rs.82.43
Euro	1	Rs.70.49

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		44

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.