MIRA INFORM REPORT

Report Date :

15.02.2013

IDENTIFICATION DETAILS

Name :	PARASON MACHINERY (INDIA) PRIVATE LIMITED
Registered Office :	Anukrupa, 28, Venkatesh Nagar, Jalna Road, Aurangabad - 431001 Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	04.03.1991
Com. Reg. No.:	11-060587
Capital Investment / Paid-up Capital :	Rs.54.700 Millions
CIN No.: [Company Identification No.]	U29290MH1991PTC060587
PAN No.: [Permanent Account No.]	AABCP5078K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of Pulp and Paper Machinery.
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 630000
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 commitments. The company can be considered normal 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 – 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	ICRA
Rating	BBB- Bank Lines (Fund Based)
Rating Explanation	Moderate degree of safety. It carry higher than average credit risk.
Date	June 22, 2011

Rating Agency Name	ICRA
Rating	A3 Bank Lines (Non Fund Based)
Rating Explanation	The moderate credit quality. It carry higher credit risk.
Date	June 22, 2011

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/ Corporate Office :	Anukrupa, 28, Venkatesh Nagar, Jalna Road, Aurangabad - 431001 Maharashtra, India
Tel. No.:	91-240-6644444/ 2339234-37
Fax No.:	91-240-2332944
E-Mail :	info@parasonglobal.com nsmalpani@hotmail.com parason@eth.net
Website :	http://www.parasonmachinery.com
Factory :	85, MIDC Industrial Area, Chikalthana, Aurangabad – 431210, Maharashtra, India
R and D Centre:	EL-39, MIDC Industrial Area, Chikalthana, Aurangabad – 431210, Maharashtra, India
Branch Office :	Located at : · Secunderabad · Vapi · Ghaziabad · Kolkata · Nagpur · Ahmedabad

DIRECTORS

As on: 19.09.2012

Name :

Mr. Champalal Phulchand Desarda

Designation :

Director

Address :

Paras 32, Vidyaniketan Colony, Aurangabad – 431001, Maharashtra, India

Date of Birth/Age :

07.06.1939

Date of Appointment :

27.09.1996

PAN No.:

ACCPD2443G

Voter ID No.:

MT/39/193/0948151

DIN No.:

00526969

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	U28920MH1991PTC063105	SUNMOON SLEEVES PRIVATE LIMITED	Director	22/01/1996	29/09/1994	-	Active	NO
2	U27200MH1984PTC033989	S S UTENSILS MANUFACTURING COMPANY PRIVATE LIMITED	Director	27/09/1996	26/09/1996	-	Active	NO
3	U99999MH1991PTC063104	PRATISHTHAN ALLOYS PRIVATE LIMITED	Director	27/09/1996	26/09/1996	-	Active	NO
4	U34300MH1984PTC032610	SABHARWAL AUTOMOBILES PRIVATE LIMITED	Director	26/09/1996	26/09/1996	-	Active	NO
5	U29290MH1991PTC060587	PARASON MACHINERY(INDIA) PRIVATE LIMITED	Director	27/09/1996	27/09/1996	-	Active	NO
6	U45206MH2011PTC218155	PARASON VENTURES PRIVATE LIMITED	Director	01/06/2011	01/06/2011	-	Active	NO
7	U72300MH2012PLC234237	GAZON COMMUNICATIONS INDIA LIMITED	Director	07/08/2012	07/08/2012	-	Active	NO

Name :

Mr. Shekhar Champalal Dessarda

Designation :

Director

Address :

Paras 32, Vidyaniketan Colony, Aurangabad – 431001, Maharashtra, India

Date of Birth/Age :

06.03.1965

Date of Appointment :

04.03.1991

PAN No.:

ADUPD1209M

Voter ID No.:

MT/39/193/0948152

DIN No.:

00527675

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	U29290MH1991PTC060587	PARASON MACHINERY(INDIA) PRIVATE LIMITED	Director	04/03/1991	04/03/1991	-	Active	NO
2	U99999MH1991PTC063104	PRATISHTHAN ALLOYS PRIVATE LIMITED	Director	22/11/1995	22/11/1995	-	Active	NO
3	U28920MH1991PTC063105	SUNMOON SLEEVES PRIVATE LIMITED	Director	22/01/1996	22/01/1996	-	Active	NO
4	U34300MH1984PTC032610	SABHARWAL AUTOMOBILES PVT LTD	Director	26/09/1996	26/09/1996	-	Active	NO
5	U45206MH2011PTC218155	PARASON VENTURES PRIVATE LIMITED	Director	01/06/2011	01/06/2011	-	Active	NO
6	U72300MH2012PLC234237	GAZON COMMUNICATIONS INDIA LIMITED	Director	07/08/2012	07/08/2012	-	Active	NO

Name :

Mrs. Prabha Champalal Dessarda

Designation :

Director

Address :

Paras 32, Vidyaniketan Colony, Aurangabad – 431001, Maharashtra, India

Date of Birth/Age :

16.05.1945

Date of Appointment :

04.03.1991

PAN No.:

ADYPD1112F

Voter ID No.:

MT/39/193/0948150

DIN No.:

00527075

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	U27200MH1984PTC033989	S S UTENSILS MANUFACTURING COMPANY PRIVATE LIMITED	Director	04/03/1991	04/03/1991	-	Active	NO
2	U29290MH1991PTC060587	PARASON MACHINERY(INDIA) PRIVATE LIMITED	Director	04/03/1991	04/03/1991	-	Active	NO
3	U72300MH2012PLC234237	GAZON COMMUNICATIONS INDIA LIMITED	Director	07/08/2012	07/08/2012	-	Active	NO

Name :

Mrs. Shilpa Amitkumar Dugar

Designation :

Director

Address :

C001, Deffodil, Rajeha Enclave, Coimbatore – 641018, Tamilnadu, India

Date of Birth/Age :

31.01.1974

Date of Appointment :

25.08.1994

Voter ID No.:

MT/39/139/0948173

DIN No.:

00317971

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	U99999MH1991PTC063104	PRATISHTHAN ALLOYS PRIVATE LIMITED	Director	28/08/1991	28/08/1991	-	Active	NO
2	U27200MH1984PTC033989	S S UTENSILS MANUFACTURING COMPANY PRIVATE LIMITED	Director	25/08/1994	25/08/1994	-	Active	NO
3	U29290MH1991PTC060587	PARASON MACHINERY(INDIA) PRIVATE LIMITED	Director	25/08/1994	25/08/1994	-	Active	NO
4	U28920MH1991PTC063105	SUNMOON SLEEVES PRIVATE LIMITED	Director	25/08/1997	25/08/1997	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.03.2012

Names of Shareholders	No. of Shares
C P Desarada	1538375
P C Desarada	460125
S C Desarada	1846675
Sunita S Desarada	774250
Shilpa Dugad	750
Shekhar Desarada (HUF)	261875
Champalal Desarada (HUF)	176700
Madhur Desarada	50000
Kishore Desarada	50000
Sapna A Dugad	11250
Sunmoon Sleeves Private Limited, India	300000
Total	5470000

Equity Share Break up (Percentage of Total Equity)

As on: 19.09.2012

Category	Percentage
Bodies corporate	5.48
Directors or relatives of directors	94.52
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier of Pulp and Paper Machinery.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Union Bank of India, Aurangabad Main Branch,11, Krupa, Jijamata Colony Road, Paithan Gate, Aurangabad - 431005, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term loans from banks	37.472	17.183
(Hypothecation of stock of raw materials, semi-finished, finished goods, Stocks and Spares and pledge of book debts and receivables pertaining to exports.)
Total	37.472	17.183

Banking Relations :	--
Auditors :
Name :	Khandelwal Jain and Company Chartered Accountants
Address :	1st Floor, City Pride Building,, Jalna Road, Near Mondha Naka Signal,, Aurangabad – 431001, Maharashtra, India
PAN No.:	AAAFK0985C
Related Parties :	· Pratishthan Alloys Casting · Sunmoon Sleeves Private Limited CIN No.: U28920MH1991PTC063105 · Pratishthan Alloys Private Limited CIN No.: U99999MH1991PTC063104

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5470000	Equity Shares	Rs.10/- each	Rs.54.700 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		54.700	45.000	45.000
2] Share Application Money		20.340	23.740	0.000
3] Reserves & Surplus		83.091	45.444	32.664
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		158.131	114.184	77.664
LOAN FUNDS
1] Secured Loans		37.472	17.183	0.000
2] Unsecured Loans		0.012	1.681	0.000
TOTAL BORROWING		37.484	18.864	0.000
DEFERRED TAX LIABILITIES		11.808	10.866	10.668
TOTAL		207.423	143.914	88.332
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		86.183	69.116	67.639
Capital work-in-progress		0.648	2.009	0.859
INVESTMENT		0.860	0.862	0.862
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	113.897	95.113	40.323
	Sundry Debtors	60.233	69.341	49.512
	Cash & Bank Balances	40.208	12.757	14.219
	Other Current Assets	5.078	7.679	1.150
	Loans & Advances	42.838	58.880	35.388
Total Current Assets		262.254	243.770	140.592
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	126.817	159.490	47.691
	Other Current Liabilities	1.606	1.927	73.929
	Provisions	14.099	10.426	0.000
Total Current Liabilities		142.522	171.843	121.620
Net Current Assets		119.732	71.927	18.972
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		207.423	143.914	88.332

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Turnover	699.542	600.530	468.792
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		63.493	24.617	13.292
	DEPRECIATION/ AMORTISATION		5.873	5.439	5.316
	PROFIT BEFORE TAX		57.590	19.178	7.976
	TAX		19.944	6.398	1.811
	PROFIT AFTER TAX		37.646	12.780	6.165
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.444	0.165	0.802
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	12.500	6.000
	BALANCE CARRIED TO THE B/S		NA	0.444	0.165
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	258.644	184.352	NA
	TOTAL EARNINGS		258.644	184.352	NA
	Earnings Per Share (Rs.)		6.88	NA	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Return on Total Assets (PBT/Total Assets}	(%)	16.53	6.13	3.83
Return on Investment (ROI) (PBT/Networth)		0.36	0.17	0.10
Debt Equity Ratio (Total Debt/Networth)		0.24	0.17	0.000
Current Ratio (Current Asset/Current Liability)		1.84	1.42	1.16

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

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Loans and advances from related parties	0.012	1.681
Total	0.012	1.681

OPERATIONS:

Turnover of the company has been increased to Rs.699.542 Millions during the year as compared to Rs.600.530 Millions of previous year. The export sales of the company have increased to Rs. 258.644 Millions as compared to last years export sale of Rs.184.353 Millions.

FIXED ASSETS:

· Land

· Buildings

· Residential Building

· Factory Building

· Plant and Equipment

· Factory Equipments

· 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.53.87
UK Pound	1	Rs.83.59
Euro	1	Rs.72.38

INFORMATION DETAILS

Report Prepared by :

VRN

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	NO
--LISTED	YES/NO	NO
--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.