MIRA INFORM REPORT

Report Date :

30.08.2013

IDENTIFICATION DETAILS

Name :	S.K.ELITE INDUSTRIES (INDIA) LIMITED (w.e.f. 23.02.2011)
Formerly Known As :	S.K. AUTOMOTIVES LIMITED
Registered Office :	Plot No. D – 405, TTC Industrial Area, M.I.D.C., Turbhe, Navi Mumbai – 400705, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	23.02.1996
Com. Reg. No.:	11-118908
Capital Investment / Paid-up Capital :	Rs. 50.000 Millions
CIN No.: [Company Identification No.]	U74900MH1996PLC118908
PAN No.: [Permanent Account No.]	AAFCS8141Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	As per Memorandum of Association : To establish and carry on in India and aboard the business of laying out, erecting, building, constructing, developing, demolishing, re-erecting, altering, re-modeling, maintaining, improving, setting up, purchasing, marketing, selling, taking on lease or letting out of premises or property or to any other work in connection with any building, residences, hotels, resorts, motels, apartments from commercial purpose and IT parks and do such other or any other act that may be requisite thereof.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 639900
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears drastic dip in its profitability during 2012. The external borrowing seems to be huge. However, trade relations are reported to be fair. Payments are reported to be slow. The company can be considered for business dealings with great 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 – 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 DENIED BY

Name :	Mr. Mukund
Designation :	Manager
Contact No.:	91-22-27625000/27625025
Date :	14.08.2013

LOCATIONS

Registered Office :	Plot No. D – 405, TTC Industrial Area, M.I.D.C., Turbhe, Navi Mumbai – 400705, Maharashtra, India
Tel. No.:	91-22-27625000/27625025
Fax No.:	Not Available
E-Mail :	info@skwheels.net madhukars@skwheels.net

DIRECTORS

As on 29.09.2012

Name :	Mr. Anil Kumar Loraiya
Designation :	Managing Director
Address :	Flat No. 1201, Building No. 27, Seawood Estate Limited, NRI Complex, Nerul, Navi Mumbai, Maharashtra, India
Date of Birth/Age :	08.01.1959
Date of Appointment :	05.08.1996
DIN No.:	00339859
Name :	Mrs. Manjusha Anil Kumar
Designation :	Non Executive Director
Address :	Flat No. 1201, Building No. 27, Seawood Estate Limited, NRI Complex, Nerul, Navi Mumbai, Maharashtra, India
Date of Birth/Age :	21.09.1961
Date of Appointment :	01.01.1997
DIN No.:	00339827
Name :	Mr. Akshit Kumar Loraiya
Designation :	Director
Address :	Flat No. 1201, Building No. 27, Seawood Estate Limited, NRI Complex, Nerul, Navi Mumbai, Maharashtra, India
Date of Birth/Age :	02.02.1987
Date of Appointment :	30.09.2005
DIN No.:	00339783

KEY EXECUTIVES

Name :	Mr. Mukund
Designation :	Manager

MAJOR SHAREHOLDERS

As on 29.09.2012

Names of Shareholders	No. of Shares
Anil Kumar Loraiya	4272300
Manjusha Anil Kumar	524200
Akshit Kumar Loraiya	203100
Anil Kumar Loraiya (HUF)	100
Sheela Rani	100
S K Wheels Private Limited	100
A M Pictures Private Limited	100
Total	5000000

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Bodies corporate	0.01
Directors or relatives of Directors	99.99
Total	100.00

BUSINESS DETAILS

Line of Business :

As per Memorandum of Association : To establish and carry on in India and aboard the business of laying out, erecting, building, constructing, developing, demolishing, re-erecting, altering, re-modeling, maintaining, improving, setting up, purchasing, marketing, selling, taking on lease or letting out of premises or property or to any other work in connection with any building, residences, hotels, resorts, motels, apartments from commercial purpose and IT parks and do such other or any other act that may be requisite thereof.

GENERAL INFORMATION

No. of Employees :

Information denied by management

Bankers :

• Oriental Bank of Commerce Limited, Opera House Branch, Ground Floor, Shreeji Chambers, Tata Road, No. 1 , Opera House, Mumbai – 400004, Maharashtra, India
• The Cosmos Co-Operative Bank Limited, Vashi Branch, Plot No. 74, Persepolis Premises, Ground Floor, Sector 17, Vashi, Navi Mumbai – 400706, Maharashtra, India

Facilities :

Secured Loans	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
Term Loan
From Bank	145.632	92.786
From Other	5.491	0.000
Short Term Borrowings
Loan repayable on demand from bank	0.000	45.579
Total	151.123	138.365

Banking Relations :	--
Financial Institution :	HDB Financial Services Limited, Radhika, 2^nd Floor, Law Garden Road, Navrangpura, Ahmedabad – 380009, Gujarat, India
Auditors :
Name :	Lalit Surendra Chartered Accountants
Address :	Office No. 26, Second Floor, 47, Dr. MB Velkar Street, Mumbai – 400002, Maharashtra, India
PAN No.:	AAAFL0612P
Sister Concern :	S. K. Wheels (Confirmed by management)

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs. 10/- each	Rs. 150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs. 10/- each	Rs. 50.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	50.000	50.000
(b) Reserves & Surplus	12.375	12.319
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	97.600	0.000
Total Shareholders’ Funds (1) + (2)	159.975	62.319
(3) Non-Current Liabilities
(a) long-term borrowings	151.123	92.786
(b) Deferred tax liabilities (Net)	6.469	6.468
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	157.592	99.254
(4) Current Liabilities
(a) Short term borrowings	66.653	45.579
(b) Trade payables	12.739	0.264
(c) Other current liabilities	24.965	79.648
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	104.357	125.491
TOTAL	421.924	287.064
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	77.502	77.502
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	313.970	185.866
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	1.111	1.011
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	15.326	2.372
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	407.909	266.751
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	0.000	0.000
(c) Trade receivables	9.400	9.505
(d) Cash and cash equivalents	2.425	0.455
(e) Short-term loans and advances	0.700	4.344
(f) Other current assets	1.490	6.009
Total Current Assets	14.015	20.313
TOTAL	421.924	287.064

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		50.000
2] Share Application Money		0.000
3] Reserves & Surplus		21.474
4] (Accumulated Losses)		0.000
NETWORTH		71.474
LOAN FUNDS
1] Secured Loans		148.829
2] Unsecured Loans		6.069
TOTAL BORROWING		154.898
DEFERRED TAX LIABILITIES		6.469
TOTAL		232.841
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		100.436
Capital work-in-progress		63.063
INVESTMENT		1.011
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	80.471
	Sundry Debtors	0.356
	Cash & Bank Balances	1.837
	Other Current Assets	6.912
	Loans & Advances	20.646
Total Current Assets		110.222
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.784
	Other Current Liabilities	32.397
	Provisions	4.710
Total Current Liabilities		41.891
Net Current Assets		68.311
MISCELLANEOUS EXPENSES		0.000
TOTAL		232.841

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	4.012	41.593	515.041
		Other Income	0.712	0.112	7.820
		TOTAL (A)	4.724	41.705	522.861
Less	EXPENSES
		Purchase of stock-in-trade	0.000	30.499
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	0.000	0.000
		Employee benefit expenses	0.000	1.755
		Other expenses	0.000	4.254
		TOTAL (B)	0.000	36.508	484.246
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4.724	5.197	38.615
Less	FINANCIAL EXPENSES (D)		0.000	10.831	24.999
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.724	(5.634)	13.616
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.000	3.522	3.887
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		4.724	(9.156)	9.729
Less	TAX (H)		4.668	0.000	2.102
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		0.056	(9.156)	7.627
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		12.319	21.474	NA
	BALANCE CARRIED TO THE B/S		12.375	12.318	NA
	Earnings/(Loss) Per Share (Rs.)		0.01	(1.83)	1.53

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.18	(21.95)	1.46
Net Profit Margin (PBT/Sales)	(%)	117.75	(22.01)	1.89
Return on Total Assets (PBT/Total Assets}	(%)	4.42	(9.14)	4.62
Return on Investment (ROI) (PBT/Networth)		0.03	(0.15)	0.14
Debt Equity Ratio (Total Debt /Networth)		1.36	2.22	2.17
Current Ratio (Current Asset/Current Liability)		0.13	0.16	2.63

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

UNSECURED LOANS:

Particulars	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Short Term Borrowings
Loans repayable on demand from other	0.130	0.000
Loans and advances from related parties	66.523	0.000
Total	66.653	0.000

INDEX OF CHARGE:

Sr .No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10359644	22/05/2012	13,400,000.00	HDB FINANCIAL SERVICES LIMITED	Radhika, 2nd Floor, Law Garden Road, Navrangpura, Ahmedabad, Gujarat - 380009, INDIA	B41219742
2	10323185	25/11/2011	20,000,000.00	HDB FINANCIAL SERVICES LIMITED	Radhika, 2nd Floor, Law Garden Road, Navrangpura , Ahmedabad, Gujarat - 380009, INDIA	B27884774
3	10296794	21/06/2012 *	591,395,000.00	The Cosmos Co-op Bank Ltd	Vashi Branch, Plot no 74 Persepolis Premises, Gr floor Sector 17 Vashi, Navi Mumbai, Maharashtra - 400706, INDIA	B43690007
4	10187056	18/02/2011 *	160,000,000.00	Oriental Bank of Commerce	Opera House Branch, Ground Floor, Shreeji Chambers , TATA Road No. 2, Opera House, Mumbai, Maharashtra - 400004, INDIA	B07893100
5	10187307	18/02/2011 *	160,000,000.00	Oriental Bank of Commerce	Opera House Branch, Ground Floor, Shreeji Chambers , TATA Road No. 2, Opera House, Mumbai, Maharashtra - 400004, INDIA	B07892227
6	10155737	21/04/2009	40,000,000.00	PUNJAB AND SIND BANK	PLOT NO. 14, SECTOR 26A, PALM BEACH ROAD,, KOPRI, VASHI, NAVI MUMBAI, Maharashtra - 400705, INDIA	A61656062
7	10013045	03/08/2006	20,000,000.00	STATE BANK OF INDIA	THANE MAIN BRANCH, THANE, Maharashtra - 400601, INDIA	A03217114
8	90387618	13/05/2003	3,735,000.00	ORIENTAL BANK OF COMMERCE	NAVI MUMBAI, NAVI MUMBAI, Maharashtra, INDIA	-
9	90387596	22/10/2002	1,300,000.00	ORIENTAL BANK OF COMMERCE	APMC MARKET, VASHI NAVI, MUMBAI, Maharashtra, INDIA	-
10	90387586	24/10/2002 *	2,500,000.00	ORIENTAL BANK OF COMMERCE	VATHI, NAVI MUMBAI, Maharashtra, INDIA	-

* Date of charge modification

FIXED ASSETS:

• Office Building
• Furniture and Fixtures
• Motor Vehicles
• Office Equipment
• Computer Equipments

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. 67.67
UK Pound	1	Rs. 105.14
Euro	1	Rs. 90.03

INFORMATION DETAILS

Information Gathered by :	PLV
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
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	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.