MIRA INFORM REPORT

Report Date :

23.04.2013

IDENTIFICATION DETAILS

Name :	SADHU FORGING LIMITED
Registered Office :	3rd Floor, K C House, 5/66 Wea Padam Singh Road, Karol Bagh, New Delhi – 110005
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	05.08.1978
Com. Reg. No.:	55-009164
Capital Investment / Paid-up Capital :	Rs.56.450 Millions
CIN No.: [Company Identification No.]	U74899DL1978PLC009164
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Steel Forging.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 3050000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. 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.

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	ICRA
Rating	BBB (Term Loan)
Rating Explanation	Moderate degree of safety. It carry moderate credit risk.
Date	April 16, 2012

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.

LOCATIONS

Registered Office :	3rd Floor, K C House, 5/66 Wea Padam Singh Road, Karol Bagh, New Delhi – 110005, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	info@sadhugroup.com
Website :	www.sadhugroup.com
Gear Division/ Press Forging Unit :	Opposite Plot No. 84, Sector 25, Faridabad - 121004, Haryana, India
Tel. No.:	91-129-4283900 (30 Lines)
Fax No.:	91-129-4283999
Forging Unit I :	Plot No. 140, Sector 24, Faridabad - 121005, Haryana, India
Tel. No.:	91-129-4283200 (30 Lines)
Fax No.:	91-129-2233440
Forging Unit II :	Plot No. 84, Sector 25, Faridabad - 121004, Haryana, India
Tel. No.:	91-129-4180200 (30 Lines)
Fax No.:	91-129-4061848

DIRECTORS

As on: 29.09.2012

Name :	Mr. Sadhu Ram Gupta
Designation :	Whole Time Director
Address :	1266, Sector 15, Faridabad – 121007, Haryana, India
Date of Birth/Age :	26.06.1945
Qualification :	Graduate, LLB
Date of Appointment :	05.08.1978
PAN No.:	AAPPG8442B
DIN No.:	00042352
Name :	Mr. Satish Garg
Designation :	Whole Time Director
Address :	1174, Sector 15, Faridabad – 121007, Haryana, India
Date of Birth/Age :	30.04.1958
Qualification :	Graduate
Date of Appointment :	05.08.1978
PAN No.:	ABLPK1145L
DIN No.:	00490444
Name :	Mr. Hari Ram Gupta
Designation :	Managing Director
Address :	1178, Sector 15, Faridabad – 121007, Haryana, India
Date of Birth/Age :	04.02.1945
Qualification :	Graduate
Date of Appointment :	05.08.1978
PAN No.:	AFTPG8431M
DIN No.:	00163476
Name :	Mr. Lakhmi Chand
Designation :	Whole Time Director
Date of Birth/Age :	22.10.1932
Qualification :	Under Matric
Date of Appointment :	05.08.1978
PAN No.:	AAMPC4385Q
DIN No.:	00489711
Name :	Mr. Dhruva Kumar Gupta
Designation :	Director
Date of Birth/Age :	12.01.1962
Qualification :	Graduate
Date of Appointment :	11.03.1997
PAN No.:	ACEPK8561E
DIN No.:	00189094
Name :	Mr. Saket Garg
Designation :	Whole Time Director
Date of Birth/Age :	22.10.1986
Qualification :	B.E., MBA
Date of Appointment :	05.08.2008
PAN No.:	AITPG4629E
DIN No.:	02296230

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

SHAREHOLDING DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Directors or relatives of directors	93.75
Other top fifty shareholders	6.25
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Steel Forging

Products :

Product Description	ITC Code
Steel Billets Round and Ingots	72283029
Steel Forging	73261910
Transmission Gear	87089900

GENERAL INFORMATION

Customers :

· Arvin Meritor

· BRP

· Eicher

· EPT

· Escorts

· Hero

· JCB

· Mahindra

· Maruti Suzuki

· Royal Enfield

· SAME

· Swaraj

· Tata

· TAFE

· Valeo

· Yamaha

No. of Employees :

Not Available

Bankers :

· State Bank of Patiala, Plot No.7A, Sector-24, Faridabad - 121005, Haryana, India

· Standard Chartered Bank, Credit Risk Control, Narain Manzil, 23 Barakhamba Road, New Delhi - 110001, India

· Kotak Mahindra Bank

· ING Vysya Bank Limited

· Axis Bank

· HDFC Bank Limited

· State Bank of India

· The Catholic Syrian Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Rupee term loans from banks (secured by hypothecation of stock of raw material, WIP, finished goods, stores etc)	29.920	34.025
Loans taken for vehicles (Secured by charge on specific car)	5.274	0.908
Rupee term loans from banks (Secured by hypothecation of stock of raw material, WIP, finished goods, stores etc book debt , inward RR and GR and first charge on specific machinery)	479.991	463.574
Total	515.185	498.507

Banking Relations :	--
Auditors :
Name :	Mehra Goel and Company Chartered Accountants
Address :	505, Chiranjivi Tower, Nehru Place, New Delhi – 110019, India
PAN No.:	AABFM1488M
Associates :	· Sadhu Overseas · Sadhu Auto Parts Private Limited · Shivanshu Sintered Products Private Limited · SPL Industries Limited · D.P Engg Industries Private Limited · Elkay Telelink Limited

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
595000	Equity Shares	Rs.100/- each	Rs.59.500 Millions
5000	Preference Share	Rs.100/- each	Rs.0.500 Million
	Total		Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
564500	Equity Shares	Rs.100/- each	Rs.56.450 Millions

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		56.450	56.450	56.450
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		707.750	656.182	610.053
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		764.200	712.632	666.503
LOAN FUNDS
1] Secured Loans		515.185	498.507	509.502
2] Unsecured Loans		0.785	5.872	5.872
TOTAL BORROWING		515.970	504.379	515.374
DEFERRED TAX LIABILITIES		66.578	65.518	62.810
TOTAL		1346.748	1282.529	1244.687
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		592.303	557.083	524.256
Capital work-in-progress		5.374	23.362	6.038
INVESTMENT		0.271	0.271	0.271
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	672.979	563.581	534.183
	Sundry Debtors	483.364	493.043	367.366
	Cash & Bank Balances	3.621	2.033	3.594
	Other Current Assets	0.000	0.908	0.000
	Loans & Advances	107.635	66.420	57.995
Total Current Assets		1267.599	1125.985	963.138
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	401.977	326.022	174.127
	Other Current Liabilities	100.011	91.030	69.585
	Provisions	16.811	7.120	5.304
Total Current Liabilities		518.799	424.172	249.016
Net Current Assets		748.800	701.813	714.122
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1346.748	1282.529	1244.687

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2603.118	2221.217	1697.291
		Other Income	10.364	8.581	29.708
		TOTAL (A)	2613.482	2229.798	1726.999
Less	EXPENSES
		Cost of materials consumed	1442.918	1228.761
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(97.580)	(54.570)
		Employee benefit expense	246.312	205.285
		Other expenses	812.168	670.881
		TOTAL (B)	2403.818	2050.357	1577.492
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		209.664	179.441	149.507
Less	FINANCIAL EXPENSES (D)		76.451	54.622	61.752
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		133.213	124.819	87.755
Less/ Add	DEPRECIATION/ AMORTISATION (F)		63.491	58.712	53.058
	PROFIT BEFORE TAX (E-F) (G)		69.722	66.107	34.697
Less	TAX (H)		23.059	19.978	12.969
	PROFIT AFTER TAX (G-H) (I)		46.663	46.129	21.728
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	563.679	541.951
	BALANCE CARRIED TO THE B/S		NA	NA	563.679
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	304.497	223.682	126.704
	TOTAL EARNINGS		304.497	223.682	126.704
	IMPORTS
		Raw Materials	0.000	0.756	1.109
		Stores & Spares	1.869	2.172	1.320
		Capital Goods	9.639	9.617	0.000
		R & M Machinery	0.000	0.203	0.037
	TOTAL IMPORTS		11.508	12.748	2.466
	Earnings Per Share (Rs.)		82.66	81.72	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.79	2.07	1.26
Net Profit Margin (PBT/Sales)	(%)	2.68	2.98	2.04
Return on Total Assets (PBT/Total Assets}	(%)	3.75	3.93	2.33
Return on Investment (ROI) (PBT/Networth)		0.09	0.09	0.05
Debt Equity Ratio (Total Debt/Networth)		0.68	0.71	0.77
Current Ratio (Current Asset/Current Liability)		2.44	2.65	3.87

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	No
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	No
10]	Designation of contact person	No
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	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
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

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Rupee term loans from others	0.785	5.872
Total	0.785	5.872

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U74899DL1978PLC009164
Name of the company	SADHU FORGING LIMITED
Address of the registered office or of the principal place of business in India of the company	3rd Floor, K C House, 5/66 Wea Padam Singh Road, Karol Bagh, New Delhi – 110005, India E-mail: info@sadhugroup.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90040403
Type of charge	· Immovable property · Book debts
Particular of charge holder	State Bank of Patiala, Plot No.7A, Sector-24, Faridabad - 121005, Haryana, India E-mail: b5304@sbp.co.in
Nature of instrument creating charge	As per agreement of Hypothication and grant of individual limits with in the overall limits dated 28.09.2012
Date of instrument Creating the charge	28.09.2012
Amount secured by the charge	Rs.670.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per agreement dated 28.09.2012 Terms of Repayment As per agreement dated 28.09.2012 Margin As per agreement dated 28.09.2012 Extent and Operation of the charge As per agreement dated 28.09.2012
Short particulars of the property or asset(s) charged (including complete address and location of the property)	As per agreement dated 28.09.2012
Date of instrument modifying the charge	31.03.2011
Particulars of the present modification	As per agreement dated 28.09.2012

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Factory Equipments

· Furniture and Fixtures

· Vehicles

· Computer Equipments

Intangible Assets

· Computer Software

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.54.17
UK Pound	1	Rs.82.45
Euro	1	Rs.70.70

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.