MIRA INFORM REPORT

Report Date :

27.08.2013

IDENTIFICATION DETAILS

Name :	FLASH FORGE PRIVATE LIMITED
Registered Office :	11, R.K. Industry House, Walbhot Road, Goregaon (East), Mumbai – 400 063, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	05.07.1991
Com. Reg. No.:	11-187895
Capital Investment / Paid-up Capital :	Rs. 59.800 millions
CIN No.: [Company Identification No.]	U99999MH1991PTC187895
PAN No.: [Permanent Account No.]	AAACF7428E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Forgings
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 890000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. The latest financials are not made available. As per previous year’s record, the financial position of the company seems to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal business dealings at usual trade terms and condition.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	SME2
Rating Explanation	Having high credit worthiness.
Date	November, 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.

INFORMATION PARTED BY

Name :	Mr. A V Prasad
Designation :	Finance Head
Contact No.:	91-9397307310
Date :	26.08.2013

LOCATIONS

Registered Office :	11, R.K. Industry House, Walbhot Road, Goregaon (East), Mumbai – 400 063, Maharashtra, India
Tel. No.:	91-22-42769656
Mobile No.:	91-9397307310 (Mr. A V Prasad)
Fax No.:	Not Available
E-Mail :	accounts@flashforge.co.in
Website :	www.flashforge.co.in
Head Office / Factory:	Plot 237, D-Block, Autonagar Industrial Area, Visakhapatnam – 530 012, Andhra Pradesh, India
Tel. No.:	91-891-3292232 / 2709373
Fax No.:	91-891-2768281
E-Mail :	sales@flashforge.co.in
Overseas Office:	Located at: Mexico Colombia Brazil

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Gautam Makkar
Designation :	Managing Director
Address :	101, Jasti Square Apartments, Beach Road, Vishkhapatnam – 530023, Andhra Pradesh, India
Date of Birth/Age :	24.09.1969
Date of Appointment :	01.10.1999
PAN No.:	AGQPM2281D
Passport No.:	F109140
DIN No.:	00354956
Name :	Mr. Sunil Menon
Designation :	Whole-time Director
Address :	303, RK Duplex Apartments, Beach Road, Vishakapatnam – 530023, Andhra Pradesh, India
Date of Birth/Age :	15.07.1967
Date of Appointment :	01.10.1999
PAN No.:	AERPM5344Q
Passport No.:	E6990247
DIN No.:	00409485

KEY EXECUTIVES

Name :	Mr. A V Prasad
Designation :	Finance Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Equity Shareholders	No. of Shares
Gautam Makker	1814300
Shalini Menon	970190
Sunil Menon	1024110
Navigating Sales Private Limited, India	750000
Pushpak Advisory Private Limited, India	1250000
Diplok Advisory Private Limited, India	180000
Aay Aar Consultancy Services Private Limited, India	500000
TOTAL	6488600

Names of Equity Shareholders with Differential Voting Rights	No. of Shares
Aay Aar Consultancy Services Private Limited, India	100000
Laiima Tie-Up Private Limited, India	100000
Navigating Sales Private Limited, India	100000
Pushpak Advisory Private Limited, India	200000
Pagaria Holding Private Limited, India	214000
TOTAL	714000

AS ON 29.09.2012

Equity Shares Break Up	Percentage of Holding
Bodies corporate	47.00
Directors or relatives of Directors	53.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Forgings
Exports :
Products :	Finished Goods
Countries :	Venezuela
Imports :
Products :	Raw Material
Countries :	European Countries
Terms :
Selling :	Cash, Credit (Depend)
Purchasing :	Cash, Credit (Depend)

GENERAL INFORMATION

Customers :

End Users and Others

• ALSTOM
• BHEL
• ESSAR
• HPCL
• IFFCO
• Indian Navy
• Indian Oil
• MDL
• Reliance Industries
• TEIL
• Thermax

No. of Employees :

300 (Approximately)

Bankers :

• IDBI Bank Limited, IDBI Tower WTC complex, Cuffe Parade, Mumbai-400005, Maharashtra, India
• Oriental Bank of Commerce
• State Bank of India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Rupee term loans banks	24.425	0.000
Working capital loans banks	119.658	86.686
Loans taken for vehicles	3.916	2.177
TOTAL	147.999	88.863

Banking Relations :	--
Financial Institutions:	Reliance Capital Limited, “H” Block 1^st Floor, Dhirubhai Ambani Knowledge City, Koparkhairne, Navi Mumbai – 400 710, Maharashtra, India
Auditors :
Name :	V. Jagannadham and Associates Chartered Accountants
Address :	52-8-12/2, 1^st Floor, Niharika Enclave, Beside Satyam Computers, Resapuvanipalem, Vishakhapatnam – 530 013, Andhra Pradesh, India
PAN No.:	AAIPV3081C
Associates :	Airotech Profiles (India) Private Limited [CIN: U72200AP2007PTC052863]

CAPITAL STRUCTURE

AFTER 29.09.2012

Authorized Capital:

No. of Shares	Type	Value	Amount
7280000	Normal Equity Shares	Rs. 10/- each	Rs. 72.800 Millions
720000	Differential Voting Rights	Rs. 10/- each	Rs. 7.200 Millions
	TOTAL		Rs. 80.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
6488600	Normal Equity Shares	Rs. 10/- each	Rs. 64.886 Millions
714000	Differential Voting Rights	Rs. 10/- each	Rs. 7.140 Millions
	TOTAL		Rs. 72.026 Millions

AS ON 31.03.2011

Authorized Capital:

No. of Shares	Type	Value	Amount
7280000	Normal Equity Shares	Rs. 10/- each	Rs. 72.800 Millions
720000	Differential Voting Rights	Rs. 10/- each	Rs. 7.200 Millions
	TOTAL		Rs. 80.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
5266000	Normal Equity Shares	Rs. 10/- each	Rs. 52.660 Millions
714000	Differential Voting Rights	Rs. 10/- each	Rs. 7.140 Millions
	TOTAL		Rs. 59.800 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		59.800	40.574	33.434
2] Share Application Money		64.260	64.260	15.000
3] Reserves & Surplus		100.322	68.674	44.423
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		224.382	173.508	92.857
LOAN FUNDS
1] Secured Loans		147.999	88.863	50.952
2] Unsecured Loans		21.761	1.440	3.553
TOTAL BORROWING		169.760	90.303	54.505
DEFERRED TAX LIABILITIES		10.343	7.528	5.638
TOTAL		404.485	271.339	153.000
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		132.180	102.358	57.159
Capital work-in-progress		23.969	5.858	0.000
INVESTMENT		0.500	0.500	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	115.909	79.028	52.845
	Sundry Debtors	311.242	163.207	94.174
	Cash & Bank Balances	55.538	57.322	49.057
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	34.121	23.473	18.561
Total Current Assets		516.810	323.030	214.637
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	214.728	131.966	98.908
	Other Current Liabilities	38.644	15.191	9.187
	Provisions	15.602	13.250	10.701
Total Current Liabilities		268.974	160.407	118.796
Net Current Assets		247.836	162.623	95.841
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		404.485	271.339	153.000

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2011	31.03.2010	31.03.2009
	Gross Income (Incl. Stock)	546.811	465.205	283.189
Less	Expenditure (Incl. Stock)	490.162	419.500	250.752
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION	56.649	45.705	32.437
Less/ Add	DEPRECIATION/ AMORTISATION	6.464	4.591	3.142
	PROFIT BEFORE TAX	50.185	41.114	29.295
Less	TAX	18.536	16.863	12.438
	PROFIT AFTER TAX	31.649	24.251	16.857
	Earnings Per Share (Rs.)	5.29	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.79	5.21	5.95
Return on Total Assets (PBT/Total Assets}	(%)	7.73	9.67	13.45
Return on Investment (ROI) (PBT/Networth)		0.22	0.23	0.32
Debt Equity Ratio (Total Debt/Networth)		0.76	0.52	0.59
Current Ratio (Current Asset/Current Liability)		1.92	2.01	1.81

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	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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	Yes
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	No
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	Yes

Unsecured Loan	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Other debt unsecured	21.761	1.440
TOTAL	21.761	1.440

CURRENT MATURITIES OF LONG TERM DEBT

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Current maturities of long term debt	NA	NA	NA
TOTAL	NA	NA	NA

VIEW INDEX OF CHARGES

S. No	Charge ID	Date of Charge Creation /Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN
1	10378809	31/08/2012	12,300,000.00	RELIANCE CAPITAL LIMITED	"H" BLOCK 1ST FLOOR, DHIRUBHAI AMBANI KNOWLEDGE CITY, KOPARKHAIRNE, NAVI MUMBAI, MAHARASHTRA - 400710, INDIA	B58998436
2	10378794	31/08/2012	12,700,000.00	RELIANCE CAPITAL LIMITED	"H" BLOCK 1ST FLOOR, DHIRUBHAI AMBANI KNOWLEDGE CITY, KOPARKHAIRNE, NAVI MUMBAI, MAHARASHTRA - 400710, INDIA	B58992553
3	10363566	26/05/2012	9,423,104.00	RELIANCE CAPITAL LIMITED	"H" BLOCK 1ST FLOOR, DHIRUBHAI AMBANI KNOWLEDGE CITY, KOPARKHAIRNE, NAVI MUMBAI, MAHARASHTRA - 400710, INDIA	B42842328
4	10336354	31/01/2012	1,809,900.00	RELIANCE CAPITAL LIMITED	"H" BLOCK 1ST FLOOR, DHIRUBHAI AMBANI KNOWLEDGE CITY, KOPARKHAIRNE, NAVI MUMBAI, MAHARASHTRA - 400710, INDIA	B32465007
5	10333734	31/12/2011	1,308,332.00	RELIANCE CAPITAL LIMITED	"H" BLOCK 1ST FLOOR, DHIRUBHAI AMBANI KNOWLEDGE CITY, KOPARKHAIRNE, NAVI MUMBAI, MAHARASHTRA - 400710, INDIA	B31330046
6	10247758	29/09/2010	40,000,000.00	IDBI BANK LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	A97368385
7	90263068	28/02/2013 *	770,000,000.00	IDBI BANK LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B72621519
8	90134407	23/11/2000	33,300,000.00	STATE BANK OF INDIA	B. H. P. V. BRANCH, VISAKHAPATNAM, ANDHRA PRADESH - 530012, INDIA	-
9	90133909	19/03/1998 *	6,828,000.00	ORIENTAL BANK OF COMMERCE	ASILMETTA JUNCTION, OPP. R. T. C. COMPLEX, VISAKHAPATNAM, ANDHRA PRADESH - 530016, INDIA	-
10	90135527	01/06/1996 *	5,000,000.00	ORIENTAL BANK OF COMMERCE	ASILMETTU JUNCTION, VISAKHAPATNAM, ANDHRA PRADESH - 530016, INDIA	-
11	90135393	14/11/1995 *	2,000,000.00	ORIENTAL BANK OF COMMERCE	ASILMETTA JUNCTION, VISAKHAPATNAM, ANDHRA PRADESH - 530016, INDIA	-
* Date of charge modification

NOTE

Registered address of the company has been changed from IDA 237, D Block, Auto Naggar, Visakhapatnam, Andhra Pradesh, India to the present address w.e.f 09.10.2008

REVIEW OF OPERATIONS

During the year, the Company has earned an income of Rs. 546.811 millions as compared to Rs. 465.205 millions during the previous year and incurred expenditure amounted to Rs. 490.162 millions as against Rs. 419.500 millions during the previous year. The Depreciation provided during the year was Rs. 6.464 millions as compared to Rs. 4.591 millions during the same period in the last year. As a result, the Company has earned a Net Profit of Rs. 31.648 millions as compared to Rs. 24.250 millions during the previous year.

During the year the Company has increased its turnover. The Company has identified viable customer and also taken all required steps for effective operations and for increasing the business of the company. Hence, the Company expects more business and profits in the years to come.

FIXED ASSETS

• Building
• Plant and Machinery
• Equipments
• Computer equipments
• Furniture fixtures
• Vehicles
• Leasehold properties

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. 64.23
UK Pound	1	Rs. 100.00
Euro	1	Rs. 85.93

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--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	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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		43

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.