MIRA INFORM REPORT

Report Date :

01.08.2013

IDENTIFICATION DETAILS

Name :	PROMINENT FORGINGS PRIVATE LIMITED
Formerly Known As :	PUNJRATH FINANCE AND DEPOSITS PRIVATE LIMITED
Registered Office :	SCO No.22, 1^st Floor, G S Complex, Partap Nagar, Basant Road, Ludhiana - 141003, Punjab
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	09.03.1995
Com. Reg. No.:	16-016004
Capital Investment / Paid-up Capital :	Rs. 6.792 millions
CIN No.: [Company Identification No.]	U28910PB1995PTC016004
TAN No.: [Tax Deduction & Collection Account No.]	JLDP01607E
PAN No.: [Permanent Account No.]	AABCP0756C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Garden Accessories.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 92000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported as fair. Business is active. Payment terms are slow but correct. The company can be considered good 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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 DECLINED BY

Name :	Mr. Harpal
Designation :	Export Documentation Manager
Contact No.:	91-161-2512696
Date :	29.07.2013

LOCATIONS

Registered Office :	SCO No.22, 1^st Floor, G S Complex, Partap Nagar, Basant Road, Ludhiana - 141003, Punjab, India
Tel. No.:	91-161-2511396 / 2512796
Fax No.:	91-161-2512345
E-Mail :	my.client123@gmail.com
Factory :	V. P. O. Jospal Banger, Kanganwal Road, Ludhiana, Maharashtra, India
Tel. No.:	91-161-2512696 / 2512796
Fax No.:	91-161-2512345 / 346
E-Mail :	sunit@prominent-exports.com

DIRECTORS

As on 29.09.2012

Name :

Mr. Bikramjit Singh

Designation :

Whole-time director

Address :

H. No. 290, Model Gram, Ludhiana – 141002, Punjab, India

Date of Birth/Age :

26.09.1976

Date of Appointment :

01.04.2008

DIN No. :

00775092

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	U28910PB1995PTC016004	PROMINENT FORGINGS PRIVATE LIMITED	Whole-time director	01/04/2008	09/03/1995	-	Active	NO

Name :

Mr. Gurcharan Singh

Designation :

Managing director

Address :

H. No. 290, Model Gram, Ludhiana – 141002, Punjab, India

Date of Birth/Age :

15.02.1950

Date of Appointment :

01.04.2008

DIN No. :

00775205

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	U28910PB1995PTC016004	PROMINENT FORGINGS PRIVATE LIMITED	Managing director	01/04/2008	09/03/1995	-	Active	NO
2	U25113PB2007PTC030824	GEE DEE TYRES PRIVATE LIMITED	Director	17/01/2007	17/01/2007	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Harpal
Designation :	Export Documentation Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Gurcharan Singh	141700
Bikramjit Singh	178000
Harvinder Kaur	87500
Gurpeer Kaur	140000
Kelly Financial Services Limited, India	132000
Total	679200

Allottees as on 15.10.2012

Names of Allottees	No. of Shares
Kelly Financial Services Limited, India	300000
Total	300000

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	19.44
Directors or relatives of Directors*	80.56
Total	100.00

*Certificates to be given by a director and Manager/Secretary or by two Directors where is no manager of secretary. In the case of a company whose shares are listed on a recognized stock exchange, the certificates shall also be signed by a secretary in whole time practice.

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Garden Accessories.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· HDFC Bank Limited, HDFC bank housesenapati bapat marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India

Axis Bank Limited,SME Centre, 5-A, IInd Floor, Surya Tower, Mall Road, Ludiana - 141001, Punjab, India

Central Bank of India

Corporation Bank

Punjab National Bank

State Bank of India

ICICI Bank Limited

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long term borrowings
Term loans against property	7.183	7.840
Vehicle Loan
Tempo (TATA ACE) Loan	0.036	0.103
Tempo (TATA 407) Loan	0.000	0.000
Two Wheeler Loan	0.000	0.011
Short term borrowings
Loans repayable on Demand From Bank – Due to HDFC Bank Limited
Against Packing Credit Limit	13.757	20.968
Total	20.976	28.923

Note:

Long term borrowings

Property Loan is secured by hypothecation against the property at 290, Model Gram, Ludhiana

Vehicle Loans are secured by hypothecation of the vehicles purchased there against.

Short term borrowings

Packing Credit Limit is secured against Hypothecation of Present and Future current assets of Company i.e. Book Debts and Stock of Raw material, Finished Goods and EM of Factory Land and Building situated at Village Jaspal Bangar.

Banking Relations :	--
Auditors :
Name :	Vinay and Associates Chartered Accountants
Address :	SCO-30, 2^nd Floor, Feroze Gandhi Market, Ludhiana – 141001, Punjab, India
PAN No. :	AACFV0520C

CAPITAL STRUCTURE

After 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs. 15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
979200	Equity Shares	Rs.10/- each	Rs. 9.792 Millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs. 15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
679200	Equity Shares	Rs.10/- each	Rs. 6.792 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	6.792	6.792
(b) Reserves & Surplus	16.353	15.619
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	23.145	22.411
(3) Non-Current Liabilities
(a) long-term borrowings	10.062	10.083
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.0000
Total Non-current Liabilities (3)	10.062	10.083
(4) Current Liabilities
(a) Short term borrowings	13.757	20.968
(b) Trade payables	6.383	19.683
(c) Other current liabilities	1.842	5.412
(d) Short-term provisions	2.543	1.939
Total Current Liabilities (4)	24.525	48.002
TOTAL	57.732	80.496
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	10.553	11.126
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.477	0.487
(e) Other Non-current assets	0.018	0.027
Total Non-Current Assets	11.048	11.640
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	17.297	19.128
(c) Trade receivables	6.151	27.002
(d) Cash and cash equivalents	10.644	8.910
(e) Short-term loans and advances	0.000	0.000
(f) Other current assets	12.592	13.816
Total Current Assets	46.684	68.856
TOTAL	57.732	80.496

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		6.792
2] Share Application Money		0.000
3] Reserves & Surplus		14.427
4] (Accumulated Losses)		0.000
NETWORTH		21.219
LOAN FUNDS
1] Secured Loans		22.502
2] Unsecured Loans		5.680
TOTAL BORROWING		28.182
DEFERRED TAX LIABILITIES		0.000
TOTAL		49.401
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.968
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	16.015
	Sundry Debtors	24.082
	Cash & Bank Balances	13.169
	Other Current Assets	0.000
	Loans & Advances	12.838
Total Current Assets		66.104
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.746
	Other Current Liabilities	25.247
	Provisions	1.714
Total Current Liabilities		28.707
Net Current Assets		37.397
MISCELLANEOUS EXPENSES		0.036
TOTAL		49.401

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	99.760	118.480	86.803
		Other Income	10.582	16.004	NA
		TOTAL (A)	110.342	134.484	NA
Less	EXPENSES
		Material consumed	69.842	93.783
		Employee Benefit Expenses	4.579	5.525
		Other expenses	30.685	32.402
		Preliminary Exp. W/Off	0.009	0.009
		Increase in Stock	(0.143)	(3.037)
		TOTAL (B)	104.972	128.682	NA
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5.370	5.802	6.929
Less	FINANCIAL EXPENSES (D)		2.122	1.917	1.770
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.248	3.885	5.159
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.910	1.908	2.202
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		1.338	1.977	2.957
Less	TAX (H)		0.604	0.762	NA
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		0.734	1.215	NA
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	94.022	111.242	NA
	TOTAL EARNINGS		94.022	111.242	NA
	IMPORTS		10.277	14.094	NA
	Earnings / (Loss) Per Share (Rs.)		1.08	1.79	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.67	0.90	NA
Net Profit Margin (PBT/Sales)	(%)	1.34	1.67	3.41
Return on Total Assets (PBT/Total Assets}	(%)	2.32	2.46	3.79
Return on Investment (ROI) (PBT/Networth)		0.06	0.09	0.14
Debt Equity Ratio (Total Debt/Networth)		1.03	1.39	1.33
Current Ratio (Current Asset/Current Liability)		1.90	1.43	2.30

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	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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10421211	26/02/2013	40,000,000.00	AXIS BANK	SME CENTRE, 5-A, IIND FLOOR, SURYA TOWER, MALL ROAD, LUDIANA - 141001, PUNJAB, INDIA	B73613416
2	10184157	15/12/2011 *	50,272,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	B27738921
3	90173894	25/08/2007 *	14,500,000.00	CENTRAL BANK OF INDIA	IBD MILLER GANJ, LUDHIANA - 141003, PUNJAB, INDIA	A21847967
4	90175171	30/10/2004 *	3,000,000.00	CENTRAL BANK OF INDIA	MILLER GANJ BRANCH, LUDHIANA, PUNJAB, INDIA	-
5	90311524	03/01/2001	3,000,000.00	CENTRAL BANK OF INDIA	MILLER GANJ BRANCH, LUDHIANA, PUNJAB, INDIA	-

* Date of charge modification

UNSECURED LOANS

Particulars	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. In Millions)
Long term borrowings
Loans and Advances from related Parties	2.843	2.128
Total	2.843	2.128

FIXED ASSETS

· Air Conditioner

Bin Tools and Fixture

Building

Car

Computer and Printer

Camera

Cycle

Elec. Fitting Building

Elec. Fitting Machinery

EPBAX

Fan

Fax Machine

Fire Extinguisher

Furniture and Fixture

Generator

Inverter and Battery

Land

Machinery

Photostate Machine

Pump Set

Scooter and Motor Cycle

Television

Tempo (Three Wheeler)

Tools and Dies

Truck (Fork Lifter)

Water Tank

Weighing Scale

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.61.12
UK Pound	1	Rs.92.97
Euro	1	Rs.80.95

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	MRI

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	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.