MIRA INFORM REPORT

Report Date :

30.04.2013

IDENTIFICATION DETAILS

Name :	HIM TEKNOFORGE LIMITED (w.e.f. 26.11.1993)
Formerly Known As :	HIM TEKNOFORGE PRIVATE LIMITED
Registered Office :	Village Billanwali, Labana, Sai Road, Baddi – 173 205, Himachal Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	11.01.1989
Com. Reg. No.:	06-008963
Capital Investment / Paid-up Capital :	Rs.232.500 millions
CIN No.: [Company Identification No.]	U28910HP1989PLC008963
TAN No.: [Tax Deduction & Collection Account No.]	PTLH10802B PTLH10721E
PAN No.: [Permanent Account No.]	AAACH3906R
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Rough Forgings, Finished Axles and Finished Gears.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 2472000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The external borrowing of the company seems to be increasing over years. Profit margin of the company is also low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Cash Credit: BB (Suspended)
Rating Explanation	Moderate risk of default.
Date	19.04.2013

Rating Agency Name	CRISIL
Rating	Bank Guarantee: A4+ (Suspended)
Rating Explanation	Minimal degree of safety it carry high credit risk.
Date	19.04.2013

Note: Reason for suspension is not available.

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/ Factory 1 :	Village Billanwali, Labana, Sai Road, Baddi – 173 205, Himachal Pradesh, India
Tel. No.:	91-1795-245466/ 246351/ 654025
Fax No.:	91-1795-245467
E-Mail :	himbaddi@himgroup.net teknoforge@himgroup.net
Website :	http://tekno.himgroup.net
Corporate Office :	# 39, Sector 28A, Chandigarh – 160 002, India
Tel. No.:	91-172-2651654/ 2657681/ 2657871
Fax No.:	91-172-2651550
E-Mail :	teknoforge@himgroup.net
Factory 2 :	Sai Road, Baddi, District Solan, Himachal Pradesh, India.
Tel. No.:	91-1795-244020, 246352
Fax No.:	91-1795-244020, 246352
E-Mail :	himbaddi@himgroup.net
Factory 3 :	Plot No.264-268A, MPKVAN Industrial Area I, Pithampur, Indore, Madhya Pradesh, India
Tel. No.:	91-7292-253451, 253452, 503194
Fax No.:	91-7292-253215
E-Mail :	bhatnagarm@himgroup.net
Marketing Office:	Located at: Faridabad Pune Mumbai

DIRECTORS

As on 28.09.2012

Name :

Mr. Vijay Aggarwal

Designation :

Managing Director

Address :

# 203, Sector 6, Panchkula – 134 109, Haryana, India

Date of Birth/Age :

18.10.1949

Qualification :

B.E.(Mechanical Engineering)

Date of Appointment :

01.07.2009

PAN No.:

AAZPA6148A

DIN No.:

00094141

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	U28910HP1989PLC008963	HIM TEKNOFORGE LIMITED	Managing director	01/07/2009	11/01/1989	-	Active	NO
2	U28910CH1990PTC010730	H D FORGE PRIVATE LIMITED	Director	08/10/1990	08/10/1990	-	Active	NO
3	U27106CH1990PTC010828	P C ALLOYS PRIVATE LIMITED	Director	12/11/1990	12/11/1990	-	Active	NO

Name :

Mr. Rajiv Aggarwal

Designation :

Whole Time Director

Address :

# 73, Sector 28A, Chandigarh – 160 002, India

Date of Birth/Age :

23.03.1958

Qualification :

C.A., C.S.

Date of Appointment :

01.04.2009

PAN No.:

AAZPA6146Q

DIN No.:

00094198

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	U27200HP1986PTC006829	METALCHEM INDIA PRIVATE LIMITED	Director	12/03/1990	12/03/1990	-	Active	NO
2	U28910CH1990PTC010730	H D FORGE PRIVATE LIMITED	Director	30/12/1991	30/12/1991	-	Active	NO
3	U28910HP1989PLC008963	HIM TEKNOFORGE LIMITED	Whole-time director	01/04/2009	01/10/1993	-	Active	NO
4	U72200CH1997PTC020207	R V NETSOFT PRIVATE LIMITED	Director	09/07/1997	09/07/1997	-	Active	NO
5	U67200CH2003PTC025864	HUDSON INSURANCE BROKERS PRIVATE LIMITED	Director	21/03/2003	21/03/2003	-	Active	NO
6	U19119CH1993PTC013406	OASIS LEATHERS PRIVATE LIMITED	Director	29/11/2004	29/11/2004	23/08/2010	Active	NO
7	U20211CH1987PLC007836	SAMRAT PLYWOOD LIMITED	Additional director	01/06/2010	03/10/2009	02/07/2010	Active	NO
8	U17115CH1991PLC011127	FERTICHEM COTSPIN LIMITED	Additional director	06/10/2009	06/10/2009	10/12/2009	Active	NO
9	U80903HP2008PTC030941	HIMACHAL TOOLS AND TRAINING PRIVATE LIMITED	Director	29/09/2012	13/12/2011	-	Active	NO

Name :

Mr. Ravikant Tilakraj Dhawan

Designation :

Director

Address :

301-A, Jyot Apartments, Shere Punjab Society, Andheri (East), Mumbai – 400 093, Maharashtra, India

Date of Birth/Age :

05.01.1950

Qualification :

B.E., MBA

Date of Appointment :

01.11.2002

DIN No.:

00101878

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	U28910HP1989PLC008963	HIM TEKNOFORGE LIMITED	Director	01/11/2002	01/11/2002	-	Active	NO
2	U34103MH2006PTC165758	SPICE MOTORS PRIVATE LIMITED	Director	23/11/2006	23/11/2006	-	Active	NO
3	U67120MH2006PTC158968	PUKKA MERCANTILE COMPANY PRIVATE LIMITED	Director	01/03/2007	01/03/2007	-	Active	NO
4	U51909MH2004PTC144982	KIMMI TRADING PRIVATE LIMITED	Director appointed in casual vacancy	10/02/2009	10/02/2009	-	Active	NO
5	U29224MH1984PTC032175	VEE VEE ROLLER FLOUR MILLS PRIVATE LIMITED	Additional director	28/02/2013	28/02/2013	-	Active	NO

Name :

Mr. Purshotam Lal Sharma

Designation :

Director

Address :

H. No. 511, Sector 15 A, Chandigarh – 160 015, India

Date of Birth/Age :

28.04.1951

Qualification :

B.E.(Metallurgical Engineering), Diploma in HR and Labour Welfare

Date of Appointment :

30.09.2011

DIN No.:

03509280

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	U29219CH1994PLC015132	INDO FARM EQUIPMENT LIMITED	Whole-time director	01/04/2011	01/04/2011	31/03/2012	Active	NO
2	U28910HP1989PLC008963	HIM TEKNOFORGE LIMITED	Director	30/09/2011	06/06/2011	-	Active	NO
3	U28113CH2012PLC034147	TAYAL TECHNOLOGIES LIMITED	Director	15/10/2012	15/10/2012	-	Active	NO

Name :

Mr. Pradeep Kumar

Designation :

Director

Address :

H.No.604, GHS No.28, Sector-20, Ward No.30, Panchkula – 134 109, Haryana, India

Date of Birth/Age :

15.08.1949

Qualification :

B.Sc., CAIIB

Date of Appointment :

28.09.2012

DIN No.:

03052477

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	L24232CH1995PLC015553	IND SWIFT LABORATORIES LIMITED	Additional director	23/03/2009	23/03/2009	-	Active	NO
2	U28910HP1989PLC008963	HIM TEKNOFORGE LIMITED	Director	28/09/2012	28/03/2012	-	Active	NO

Name :

Ms. Bhavana Sharma

Designation :

Nominee Director

Address :

50, Vaishali Apartments, IIT Campus, New Delhi – 110 016, India

Date of Birth/Age :

07.12.1967

Date of Appointment :

22.05.2012

DIN No.:

00956209

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	U74999DL2000PLC103253	FOUR C PLUS (INTERNET) COMPANY LIMITED	Nominee director	02/12/2005	02/12/2005	23/06/2007	Active	NO
2	L17120MH1981PLC025388	POLYGENTA TECHNOLOGIES LIMITED	Nominee director	16/01/2007	16/01/2007	14/05/2007	Active	NO
3	U25111KL1986PLC004449	RADO TYRES LIMITED	Nominee director	08/09/2008	08/09/2008	14/12/2011	Active	NO
4	L74899DL1995PLC064215	MOHINDRA FASTENERS LIMITED	Nominee director	17/02/2009	17/02/2009	11/05/2011	Active	NO
5	L74999MH1975PLC018397	ELECTRONICA MACHINE TOOLS LIMITED	Nominee director	30/10/2010	30/10/2010	-	Active	NO
6	U34200DL2008PTC172214	CARNATION AUTO INDIA PRIVATE LIMITED	Nominee director	04/05/2011	04/05/2011	-	Active	NO
7	U74999DL2000PLC106206	SATYAM CINEPLEXES LIMITED	Nominee director	23/09/2011	17/06/2011	-	Active	NO
8	L29219AP1983PLC004319	LOKESH MACHINES LIMITED	Nominee director	30/09/2011	02/07/2011	-	Active	NO
9	U40200GJ2006PLC048397	SABARMATI GAS LIMITED	Director	29/09/2011	18/07/2011	11/02/2013	Active	NO
10	U74899DL1994PTC060453	CENTURY METAL RECYCLING PRIVATE LIMITED.	Nominee director	20/10/2011	24/08/2011	18/05/2012	Active	NO
11	U24139GJ1994PLC023944	MARCK BIOSCIENCES LIMITED	Nominee director	03/05/2012	03/05/2012	-	Active	NO
12	U28910HP1989PLC008963	HIM TEKNOFORGE LIMITED	Nominee director	22/05/2012	22/05/2012	-	Active	NO
13	U45201WB2007PTC162847	PALOGIX INFRASTRUCTURE PRIVATE LIMITED	Nominee director	13/12/2012	13/12/2012	-	Active	NO
14	U40300AP2006PLC050927	ARANI POWER SYSTEMS LIMITED	Nominee director	30/03/2013	30/03/2013	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Rajni Charaya
Designation :	Secretary
Address :	HL-418, Phase 9, Mohali – 160 062, Punjab, India
Date of Birth/Age :	01.02.1986
Date of Appointment :	01.02.2010
Pan no.:	ATXPR0119F

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2012

Names of Shareholders	No. of Shares	Percentage of Holding
Rajiv Aggarwal	4203453	18.07%
Vijay Aggarwal	3167288	13.62%
Vinod Aggarwal	2205313	9.49%
Asha Aggarwal	1769459	7.61%
Globe Precision Industries Private Limited, India	1400000	6.02%
India Automotive Components Manufacturer Private Equity Fund (IACM-1-D), India	6250000	26.88%

As on 28.09.2012

Equity Share Breakup	Percentage of Holding
Category
Venture Capital	26.88
Bodies corporate	10.92
Directors or relatives of directors	61.87
Other top fifty shareholders	0.33
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Rough Forgings, Finished Axles and Finished Gears.

Products :

Product Description	Item Code
Rough Forgings, Finished Axles and Finished Gears	7326

PRODUCTION STATUS [AS ON 31.03.2010]

Particulars	Unit	Installed Capacity	Actual Production
Rough Forgings	MTs	28200	11625.818
Finished Components # (Gears / Shafts / Axles) [# Includes assembles / sub assembles]	Nos.	1500000	834139

GENERAL INFORMATION

Bankers :

State Bank of Patiala, Commercial Branch, SCO 103-107, Sector 8-C, Chandigarh – 160 008, India

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG-TERM BORROWINGS
Debentures (Secured by pledge of 6250000 shares of the company held by the promoters and relatives)	50.000	0.000
Term loans from banks	267.582	179.608
Term loans from others	15.238	48.564
SHORT-TERM BORROWINGS
Working capital loans from banks (Working Capital borrowings are secured by 1^st pari passu charge on all the current assets, 2^nd pari passu charge on the fixed assets of the company and by the personal guarantee of two directors.)	479.924	386.998
Total	812.744	615.170

Banking Relations :	--
Financial Institution:	Religare Finvest Limited, D3, P3B, District Centre, Saket, New Delhi – 110 017, India The Himachal Pradesh Financial Corporation (HPFC)
Auditors :
Name :	PRA Associates Chartered Accountants
Address :	SCO 124-125, IInd Floor, Sector 34A, Chandigarh – 160 002, India
PAN No.:	AACFA2775J
Associates:	Globe Precision Industries Private Limited, India (CIN No.: U29211HP1986PTC007017) Himachal Shots and Metals Private Limited, India (CIN No.: U28119HP1987PTC007230) Gee Ess Precision Engineering Private Limited, India (CIN No.: U29200DL2010PTC206685) Him Chemicals and Fertilizers Private Limited

CAPITAL STRUCTURE

After 28.09.2012

Authorised Capital : Rs.300.000 millions

Issued, Subscribed & Paid-up Capital : Rs.232.600 millions

As on 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 millions
500000	Preference Shares	Rs.100/- each	Rs.50.000 millions
	Total		Rs.300.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
23250000	Equity Shares	Rs.10/- each	Rs.232.500 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		232.500	166.000	150.000
2] Share Application Money pending Allotment		0.000	0.000	10.000
3] Reserves & Surplus		385.573	259.592	206.665
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		618.073	425.592	366.665
LOAN FUNDS
1] Secured Loans		812.744	615.170	568.633
2] Unsecured Loans		15.362	12.000	11.261
TOTAL BORROWING		828.106	627.170	579.894
DEFERRED TAX LIABILITIES		10.257	9.654	12.139
TOTAL		1456.436	1062.416	958.698
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		676.627	488.524	438.885
Capital work-in-progress		81.295	29.912	0.000
INVESTMENT		6.305	1.305	1.299
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	655.437	598.031	442.770
	Sundry Debtors	345.810	329.522	275.400
	Cash & Bank Balances	34.596	29.109	26.310
	Other Current Assets	2.713	0.805	0.000
	Loans & Advances	111.443	85.884	65.234
Total Current Assets		1149.999	1043.351	809.714
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	334.709	381.590	259.889
	Other Current Liabilities	103.283	100.409	20.687
	Provisions	19.798	18.677	10.624
Total Current Liabilities		457.790	500.676	291.200
Net Current Assets		692.209	542.675	518.514
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1456.436	1062.416	958.698

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	1827.665	1339.547	1065.611
		Other Income	2.296	1.733	3.365
		TOTAL (A)	1829.961	1341.280	1068.976
Less	EXPENSES
		Cost of materials consumed	1062.127	847.729	948.086
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	0.657	(110.629)
		Employee benefit expense	118.648	97.408
		Other expenses	399.246	337.619
		Extraordinary items	(20.100)	0.000
		TOTAL (B)	1560.578	1172.127	948.086
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		269.383	169.153	120.890
Less	FINANCIAL EXPENSES (D)		129.593	86.536	57.893
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		139.790	82.617	62.997
Less/ Add	DEPRECIATION/ AMORTISATION (F)		39.921	35.175	26.488
	PROFIT BEFORE TAX (E-F) (G)		99.869	47.442	36.509
Less	TAX (H)		3.948	(2.485)	(3.550)
	PROFIT AFTER TAX (G-H) (I)		95.921	49.927	40.059
	EARNINGS IN FOREIGN CURRENCY		17.899	20.815	28.360
	Earnings Per Share (Rs.)
	- Basic		4.44	3.08	3.05
	- Diluted		4.44	3.08	2.50

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.24	3.72	3.75
Net Profit Margin (PBT/Sales)	(%)	5.46	3.54	3.43
Return on Total Assets (PBT/Total Assets}	(%)	5.47	3.10	2.92
Return on Investment (ROI) (PBT/Networth)		0.16	0.11	0.10
Debt Equity Ratio (Total Debt/Networth)		1.34	1.47	1.58
Current Ratio (Current Asset/Current Liability)		2.51	2.08	2.78

LOCAL AGENCY FURTHER INFORMATION

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 Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG-TERM BORROWINGS
Inter-corporate borrowings	5.000	5.000
Loans and advances from others	10.362	7.000
Total	15.362	12.000

Note:

The registered office of the company has been shifted from Sai Road, Baddi, Solan, Himachal Pradesh, India to the present address w.e.f. 06.09.2011.

OPERATIONAL HIGHLIGHTS

During the year, the company made operational income of Rs.1827.664 millions as against Rs.1339.547 millions in the previous year thereby registering an increase of 36.44 %. The company achieved a net profit of Rs.95.921 millions, as against Rs.49.927 millions in the previous year. The company produced 16150 MT. of forgings and 2356870 Nos. of finished components during the year. The company also made exports of Rs.17.899 millions during the year.

THE MARKET AND FUTURE PROSPECTS

The growth of the Indian economy in the financial year was slower at around 6.5% as compared to the growth of around 8.4% recorded in the previous financial year The slowdown in domestic economy, mainly on account of hikes in borrowing rates and high cost of inputs i.e. steel, furnace oil, power, labour and consumables have put lot of pressure on the company’s margin. To overcome the same the company has expanded its installed capacity by adding some new machines and equipments and also undertaken technology upgradation. It remains a challenge for the company to overcome these bottlenecks, however the company is making continuous efforts for cost reduction and also for increased value addition.

SHARE CAPITAL

The company has increased its paid up capital by allotting and issuing 2062500 equity shares of Rs.10/- . The paid up capital of the company now stands increased to Rs.232.500 millions divided into 23250000 equity shares of Rs.10/- each.

Bankers Charges Report as per Registry

Corporate identity number of the company	U28910HP1989PLC008963
Name of the company	HIM TEKNOFORGE LIMITED
Address of the registered office or of the principal place of business in India of the company	Village Billanwali, Labana, Sai Road, Baddi – 173 205, Himachal Pradesh, India E-Mail: teknoforge@himgroup.net
This form is for	Creation of charge
Type of charge	Immovable Property Book Debts Movable Property (not being pledge)
Particular of charge holder	State Bank of Patiala, Commercial Branch, SCO 103-107, Sector 8-C, Chandigarh – 160 008, India E-Mail: cbchd2008@yahoo.com
Nature of description of the instrument creating or modifying the charge	1. Agreement of hypothecation of goods and assets 2. Letter regarding the grant of individual limits within the overall limit 3. Sanction Letter
Date of instrument Creating the charge	22.03.2013
Amount secured by the charge	Rs.115.000 millions
Brief particulars of the principal terms a conditions and extent and operation of the charge	Rate of Interest: 2.50% above base rate i.e. 12.75% p.a. (floating) Terms of Repayment: The Term loan of Rs.115.000 millions will be repaid in 8 quarterly installments of Rs.2.500 millions each, 4 quarterly installments of Rs.2.750 millions each and 16 quarterly installment of Rs.5.250 millions each. The interest will be paid immediately after disbursement of loan as and when it is applied to the account. Margin: N.A. Extent and Operation of the charge: 100%
Short particulars of the property charged	1^st pari-passu charge on fixed assets of the company both present and future. Land measuring 27 bigha 19 biswa and building constructed thereon situated at village Manpura, Teh Baddi, Solan (HP) Land measuring 15 bigha 14 biswa and building constructed thereon situated at village Billanwali Labana Baddi (HP) Industrial Plot No.264-268A of 13760 sq mts amd building constructed thereon situated at industrial area Pithampur, District Dhar (MP) and industrial plot located at Plot No.95-100,Sector 3, Pithampur 2^nd pari passu charge on current assets of the company. 2^nd exclusive charge by way of extension of scope on equitable mortgage on the under noted property. 1st parri passu charge with working capital Banks. 1. Land measuring 5 Bighas 2 Biswas and building constructed thereon in the name of Metal Chem India Private Limited situated at Billanwali Labana Baddi (HP) Personal Guarantee of Mr. Vijay Aggarwal, Mr. Rajiv Aggarwal, Mr. Vinod Aggarwal, Smt Anju Aggarwal, Smt Daya Rani, Smt Sukesh Kumari, Smt Monika Raghuvanshi and Corporate Guarantee of Metal Chem (India) Private Limited. FDR under Bank's Lien Rs.3.000 millions

FIXED ASSETS:

· Land

· Factory Building

· Furniture and Fixtures

· Vehicles

· Office Equipments

· Product Design and Developments

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.54.27
UK Pound	1	Rs.84.23
Euro	1	Rs.70.90

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
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	2
--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		29

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.