MIRA INFORM REPORT

Report Date :

11.02.2013

IDENTIFICATION DETAILS

Name :	SOMI CONVEYOR BELTINGS LIMITED
Registered Office :	4F- 15, Oliver House, New Power House Road, Jodhpur - 342001, Rajasthan
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	16.06.2000
Com. Reg. No.:	17-016480
Capital Investment / Paid-up Capital :	Rs. 117.797 Millions
CIN No.: [Company Identification No.]	L25192RJ2000PLC016480
TAN No.: [Tax Deduction & Collection Account No.]	JDHS05097B
PAN No.: [Permanent Account No.]	AAFCS2085P
Legal Form :	A Public Limited Liability Company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Seller of Industrial Conveyor Belts
No. of Employees :	Not Available

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 1700000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered normal for 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.

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Short Term Bank Facility = A3
Rating Explanation	Moderate degree of safety it carry higher credit risk.
Date	14.12.2012

Rating Agency Name	CARE
Rating	Long Term Bank Facility = BBB-
Rating Explanation	Moderate degree of safety it carry moderate credit risk.
Date	14.12.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	4F- 15, Oliver House, New Power House Road, Jodhpur - 342001, Rajasthan, India
Tel. No.:	91-291-2610472, 2637080, 2637564
Fax No.:	91-291-2432307
E-Mail :	sales@somiconveyor.com info@somiconveyor.com info@ombhansali.com
Website :	http://www.somiconveyor.com
Factory 1 :	H-2, 463-466, Sangaria Industrial Area, Jodhpur, Rajasthan, India
Factory 2 :	K.No-58, 58/5, 58/6, Village Tanawara, Tehsil Luni, District Jodhpur, Rajasthan, India

DIRECTORS

As on 31.03.2012

Name :	Mr. O P Bhansali
Designation :	Chairman and Managing Director
Date of Birth/Age :	58 Years
Qualification :	Bachelor of Science
Experience :	36 years experience in rubber and conveyor belt manufacturing industry
Date of Appointment :	16.06.2000
Name :	Mr. Vimal Bhansali
Designation :	Whole Time Director
Date of Birth/Age :	33 Years
Qualification :	Bachelor of Business Management with specializatior in marketing
Experience :	12 years experience in Manufacturing and marketing of Conveyor Belts
Date of Appointment :	16.06.2000
Name :	Mr. Gaurav Bhansali
Designation :	Whole Time Director
Date of Birth/Age :	32 Years
Qualification :	Post Graduate in Commerce
Experience :	11 years experience in Manufacturing and marketing of Conveyor Belts and rubber prod.
Date of Appointment :	16.06.2000
Name :	Mr. Mahendra Rakecha
Designation :	Independent and Non-Executive Director
Name :	Mr. Yogesh Maheshwari
Designation :	Independent and Non-Executive Director
Name :	Mr. Ramesh Narayan Rathi
Designation :	Independent and Non-Executive Director
Date of Birth/Age :	66 Years
Qualification :	Diploma in Mechanical Engineering
Experience :	30 years of Experience in Cement and Rubber Industry
Date of Appointment :	10/01/2007

KEY EXECUTIVES

Name :	Mr. Amit Baxi
Designation :	Company Secretary and Compliance Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	6331829	53.75
Sub Total	6331829	53.75
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	6331829	53.75
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	2609613	22.15
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1714424	14.55
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1027539	8.72
Any Others (Specify)	96251	0.82
Clearing Members	33002	0.28
NRIs/OCBs	28503	0.24
Trusts	34746	0.29
Sub Total	5447827	46.25
Total Public shareholding (B)	5447827	46.25
Total (A)+(B)	11779656	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	11779656	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Seller of Industrial Conveyor Belts

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Actual Production
Conveyor Belts	Mtrs	126967.73

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Punjab National Bank, Ratanada Colony Branch, Near Bhati Chowrah, Ratanada, Jodhpur, Rajasthan, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
Term Loans from Bank	10.691	41.835
Foreign Currency Loans-Buyer's Credit	59.920	51.586
SHORT TERM BORROWINGS
Working Capital Loan	54.968	73.290
Packing Credit	43.450	0.000
Total	169.029	166.711
3.1 Term loans from bank are secured by way of Hypothecation of Land, Building, Plant and Machinery. 3.2 Buyers Credit is secured by way of Hypothecation of Plant and Machinery. Buyer's Credit will be paid by converting Buyer's credit into. Term Loan and will be paid in Instalments. 3.3. Maturity Profile of Term Loan from Bank are set out below. Rs. In Millions Rate of Interest 2013-14 14.25 10.691 Maturity Profile Buyer's Credit are set out below: Rs. In Millions Rate of Interest 2013-14 2014-15 1.75% 24.888 35.032 Working Capital Loan is secured by way of Hypothecation of Current Assets present and future including entire stocks, raw materials, consumable stores and spares, finished goods and book debts.

Banking Relations :	--
Auditors :
Name :	P. Singhvi and Associates Chartered Accountants
Address :	Jodhpur, Rajasthan, India
KMP / RKMP exercise significant influence :	· Oliver Micon Inc. · Earth Movers Enterprises · Om Prakash Bhansali HUF · Vimal Bhansali HUF · Gaurav Bhansali HUF · Ghunguru Hotels and Resorts Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11779656	Equity Shares	Rs.10/- each	Rs.117.797 Millions

The details of shareholders holding more than 5% shares :

Name of Shareholders	Current Year
	No. of Shares	% held
Om Kumari Bhansali	989394	8.40
Om Prakash Bhansali	4162658	35.34

The reconciliation of the number of shares outstanding is set out below

Particulars	Current Year No. of Shares
Equity shares at the beginning of the year	11779656
Add : Shares issued	--
Less : shares buy back	--
Equity Shares at the end of the year	11779656

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		117.797	117.797	117.797
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		323.979	304.252	291.912
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		441.776	422.049	409.709
LOAN FUNDS
1] Secured Loans		169.029	166.711	146.860
2] Unsecured Loans		16.744	33.603	2.200
TOTAL BORROWING		185.773	200.314	149.060
DEFERRED TAX LIABILITIES		7.261	7.451	5.675
TOTAL		634.810	629.814	564.444
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		373.161	269.229	237.662
Capital work-in-progress		26.982	160.675	112.338
INVESTMENT		0.003	0.003	9.340
DEFERREX TAX ASSETS		0.000	0.000	0.000
Other Non-Current Assets		13.793	12.903	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	198.398	174.226	151.524
	Sundry Debtors	59.191	32.356	63.934
	Cash & Bank Balances	37.870	28.067	5.303
	Other Current Assets	67.932	10.177	0.000
	Loans, Advances and Deposits	23.224	22.506	28.974
Total Current Assets		386.615	267.332	249.735
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	23.235	21.585	46.350
	Other Current Liabilities	140.931	58.038	1.855
	Provisions	1.578	0.705	8.265
Total Current Liabilities		165.744	80.328	56.470
Net Current Assets		220.871	187.004	193.265
MISCELLANEOUS EXPENSES		0.000	0.000	11.839
TOTAL		634.810	629.814	564.444

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	363.034	250.022	233.975
		Other Income	10.573	3.478	6.662
		TOTAL (A)	373.607	253.500	240.637
Less	EXPENSES
		Cost of Material Consumed	240.537	180.395
		Changes in Inventories of Finished Goods. Work-in-Progress and Stock-in-Trade	(27.989)	(20.258)	195.143
		Employee benefit expenses	10.405	7.417
		Other expenses	45.689	28.169
		TOTAL (B)	268.642	195.723	195.143
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		104.965	57.777	45.494
Less	FINANCIAL EXPENSES (D)		29.528	14.458	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		75.437	43.319	45.494
Less/ Add	DEPRECIATION/ AMORTISATION (F)		45.573	24.208	25.735
	PROFIT BEFORE TAX (E-F) (G)		29.864	19.111	19.759
Less	TAX (H)		10.137	6.771	4.219
	PROFIT AFTER TAX (G-H) (I)		19.727	12.340	15.540
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		67.979	55.639	40.099
	BALANCE CARRIED TO THE B/S		87.706	67.979	55.639
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	37.308	11.183	25.880
	TOTAL EARNINGS		37.308	11.183	25.880
	IMPORTS
		Raw Materials	NA	33.289	31.532
		Capital Goods	NA	53.106	15.402
	TOTAL IMPORTS		NA	86.395	46.934
	Earnings Per Share (Rs.)		1.67	1.05	1.32

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
Type	1^st Quarter	2^nd Quarter
Net Sales	151.000	170.900
Total Expenditure	126.700	142.800
PBIDT (Excl OI)	24.300	28.100
Other Income	0.500	0.400
Operating Profit	24.800	28.600
Interest	6.300	08.200
Exceptional Items	0.000	0.000
PBDT	18.500	20.400
Depreciation	10.300	11.300
Profit Before Tax	8.100	09.100
Tax	1.600	04.000
Provisions and contingencies	0.000	0.000
Profit After Tax	6.500	5.100
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	6.500	5.100

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.28	4.87	6.46
Net Profit Margin (PBT/Sales)	(%)	8.23	7.64	8.44
Return on Total Assets (PBT/Total Assets}	(%)	3.93	3.56	4.05
Return on Investment (ROI) (PBT/Networth)		0.07	0.05	0.05
Debt Equity Ratio (Total Debt /Networth)		0.42	0.47	0.36
Current Ratio (Current Asset/Current Liability)		2.33	3.33	4.42

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

OPERATIONS

The company has achieved sales of Rs. 361.707 Millions in year 2011-12 and recorded a net profit of Rs.19.727 Millions during the year. The Board is confident of higher growth in the current year.

MANAGEMENT DISCUSSION AND ANALYSIS

FINANCIAL OVERVIEW

Net sales for this year was Rs, 361.707 Millions, which was a 45.14 percent increase from previous year. Earning before taxes were Rs. 29.864 Millions, which were 56.26 percent high from previous year earnings. Earning After Taxes were Rs. 19.727 Millions which were 59.85 percent high from previous year earning.

INDUSTRY SCENARIO

The Conveyor beltings form an integral part of material handling system.lt serves as a chain right from the stage of conveying raw material from far off and scarttered locations till final rolling out of finished goods. Hence. It could be safely said. "CONVEYOR BELTS ARE THE NERVE OF ANY PRODUCTION ACTIVITY IN AN INDUSTRY."

Apart from providing easy and uninterrupted logistics support for material handling system it reduce the cost and other head expense thereby enabling the user to stay in the market at most competitive rates. Hence, the industries have woken to the reality that it is next to impossible to sustain production activity and ensure cost effectiveness without the help of the conveyor belts.

The markets are expanding. Globalization has brought the world very close and time is ripe now to enhance country's share in the International Trade in the Sphere of conveyor belts exports. The company has already entered in export market with a big response.

The main thrust areas of their specialization are the conveyor Belts for heavy Industries, Tea Estate, fertilizer and Food Grade Belts for sugar Mills. They Visualize substantial opportunities waiting for them in coming times.

CONTINGENT LIABILITIES AND COMMITMENTS

Rs. In Millions

Particular	31.03.2012	31.03.2011
(i) Claims against company disputed liabilities
Entry Tax Demand	0.266	0.266
(ii) Guarantees
Performance Guarantees	18.204	74.264
Financial Guarantee	5.488	-
Guarantee against Buyer's	53.107	-
(iii) Letter of credit	12.773	15.596

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
Loan from Related Party	16.744	17.223
SHORT TERM BORROWINGS
Loans and Advances	0.000	16.380
Total	16.744	33.603
Maturity Profile of Unsecured Loan from related party are set put below: Rs. In Millions Rate of Interest 2015-16 2016-17 2017-18 5% 5.581 5.581 5.581 Other Loans and Advances comprises of loan from directors and other firms which is repayable on demand.

FIXED ASSETS

· Land

· Building

· Computer

· Plants Machinery

· Furniture and Fixtures

· Vehicles

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.53.57
UK Pound	1	Rs.84.25
Euro	1	Rs.71.79

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

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