MIRA INFORM REPORT

Report Date :

09.01.2013

IDENTIFICATION DETAILS

Name :	RUSHAS ENGINEERING COMPANY PRIVATE LIMITED (w.e.f. 12.12.2011)
Formerly Known As :	RUSHAS ENGINEERING COMPANY LIMITED
Registered Office :	B-6, MIDC, Ahmednagar – 414 111, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	11.09.1978
Com. Reg. No.:	11-020628
Capital Investment / Paid-up Capital :	Rs.5.000 Millions
CIN No.: [Company Identification No.]	U29199MH1978PTC020628
TAN No.: [Tax Deduction & Collection Account No.]	PNER07435B
PAN No.: [Permanent Account No.]	AABCR0900N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of all type of Valves Bronze Gate Valves, Bronze Globe Valves, Bronze Steam Valves, Cast Steel Valves, Cast Steel Blow Down Valves, Bronze Fusible Plug and Ferrous Casting.
No. of Employees :	45 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 71000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Trade relations are 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

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. Satish Dattatraya Salvekar
Designation :	Director
Contact No.:	91-9225320720
Date :	31.12.2012

LOCATIONS

Registered Office/ Factory 1 :	B-6, MIDC, Ahmednagar – 414 111, Maharashtra, India
Tel. No.:	91-241-2777380/ 6610380
Fax No.:	91-241-2778211
E-Mail :	rushas@vsnl.com satish@rushas.com nsss@rocketmail.com marketing@rushas.com pawarsudhkar@yahoo.com shbank_anr@sancharnet.in
Website :	http://www.rushasvalves.com
Area :	12000 sq. ft
Factory 2 :	D-85, MIDC Area, Ahmednagar – 414 111, Maharashtra, India
Tel. No.:	91-241-6603896/ 2419861
Branches :	Shree Consultancies- Mumbai 218, Central Facility Building No.2, APMC Market, Sector 19, Vashi, New Mumbai – 400 705, Maharashtra, India Tel. No.: 91-22-65146081/ 65156486 E-Mail.: shreeconsultancies@rediffmail.com Hrishikesh Technocom – Indore (Madhya Pradesh) G-1, Harsh Avenue, 139-B, Vaishali Nagar, Annapurna Road, Indore, Madhya Pradesh, India Fax No.: 91-731-2797710 E-Mail.: hrishicom@gmail.com Global Flow Controls – Coimbatore – Trichy (Tamilnadu) G1-B, Shree Complex, Ranga Konar Street, Kattoor, Coimbatore – 641 009, Tamilnadu, India Fax No.: 91-422-2237752 E-Mail.: globalflowcontrols@in.com

DIRECTORS

As on 12.09.2011

Name :

Mr. Satish Dattatraya Salvekar

Designation :

Director

Address :

Sagar Bunglow, Miskin Road, Ahmednagar – 414 111, Maharashtra , India

Date of Birth/Age :

15.12.1968

Date of Appointment :

25.09.1998

DIN No.:

00452834

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	U29199MH1978PTC020628	RUSHAS ENGINEERING COMPANY PRIVATE LIMITED	Director	25/09/1998	25/09/1998	-	Active	NO
2	U91920PN2010NPL135837	AHMEDNAGAR AUTO AND ENGINEERING ASSOCIATION	Director	18/03/2010	18/03/2010	-	Active	NO

Name :

Mrs. Vasudha Girish Salvekar

Designation :

Director

Address :

Sagar Bunglow, Miskin Road, Ahmednagar – 414 111, Maharashtra , India

Date of Birth/Age :

24.04.1969

Date of Appointment :

18.02.2002

DIN No.:

00453044

Name :

Mr. Girish Dattatraya Salvekar

Designation :

Additional Director

Address :

Sagar Bunglow, Miskin Road, Ahmednagar – 414 111, Maharashtra , India

Date of Birth/Age :

07.11.1963

Date of Appointment :

12.09.2011

DIN No.:

00452710

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	U28910PN1995PTC094979	ONKAR FOUNDRY AND ENGINEERING COMPANY PRIVATE LIMITED	Director	04/12/1995	04/12/1995	-	Active	NO
2	U29199MH1978PTC020628	RUSHAS ENGINEERING COMPANY PRIVATE LIMITED	Director	12/09/2011	10/07/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 12.09.2011

Names of Shareholders	No. of Shares
S.V. Kulkarni	8500
A.R. Salvekar	4250
D.J.S. Deshpande	9900
Girish Dattatraya Salvekar	160000
R.V. Salvekar	5800
R.S. Deshpande	17000
V.V. Salvekar	4500
M.J. Deshpande	6900
D.B. Kulkarni	7500
V.S. Gosavi	3890
Arun Nawathe	1000
Arvind Navathe	1000
V.B. Kulkarni	10100
Hemant Mukund Kale	5960
Satish Dattatraya Salvekar	131800
Vasudha Girish Salvekar	114700
M.D. Salvekar	100000
Vrinda Satish Salvekar	94800
Mandar Lele	30000
Vasant S. Tambe	10000
Shamala V. Tambe	8700
Mandar R. Deshpande	15000
Total	751300

As on 12.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	83.00
Other top fifty shareholders	17.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of all type of Valves Bronze Gate Valves, Bronze Globe Valves, Bronze Steam Valves, Cast Steel Valves, Cast Steel Blow Down Valves, Bronze Fusible Plug and Ferrous Casting.
Products :	Gate and Globe Valves Bronze Globe Valves Bronze Gate Valves Bronze Non Return Valves (Check Valves) Steam Valves Used on Boilers and Steam Lines Bronze Steam Stop Valves Bronze Non Return Valves (Steam) Cast Iron Steam Valves Cast Iron Non Return Valves (Steam) Cast Steel Globe Valves Cast Steel Blow Down Valves Boiler Mountings Bronze Gauge Glass Valves Bronze Relief Safety Valves Bronze Strainers Stop Valves Non Return Valves Cast Iron Castings Castings and Assemblies: Fire Doors, Ash Doors, Traveling Grates, Dumping Grates and Pulsating Grates for Boilers Alloy Steel Castings S.G. Iron Castings Gun Metal Castings Aluminium Castings All Types of Machining to Supply Finish Components and Sub-Assemblies Ferrous Castings For Boiler Industry:  Complete Castings for Solid Fuel Boilers, viz., Fire Doors, Ash Doors, Grates, Grate Bars, etc. For Electrical Motor Industry: - Terminal Boxes, Stator Bodies, etc. Other Castings:- Pumps, Strainers, Any Type of Castings as per requirement Non Ferrous Castings Gun Metal, Aluminum, Lead, and various Copper Alloy castings. Fusible Plugs
Brand Names :	RUSHAS

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity
Non Ferrous Alloys	Tons	750	300
Non Ferrous Castings	Tons	600	250
Special Purpose Valves	Tons	25000	5000
Grey Iron Castings	Tons	1200	1200

The Installed capacity of production during the year is as certified by Directors and is accepted by the auditors without verification being a technical matter.

GENERAL INFORMATION

Customers :

v Bharat Bijlee Limited

v Schrader Duncan Limited

v Cummins Generator Technologies Limited

v Spirax Marshall Limited

v Fuelpack Boilers

v Thermax Limited

v J.N. Marshall Limited

v Lucy Switch Gear FZE (Dubai)

v Maxitherm  Boilers Private Limited

v Neotech Systems

v Walchandnagar Industries Limited

v Thermodyne Technologies Private Limited

v Thermax Babcock and Wilcox Limited

No. of Employees :

45 (Approximately)

Bankers :

v Small Industries Development Bank of India, Kamada House, 1^st Floor, Next to Hotel Shradha, Nagar Manmad Road, Savedi, Ahmednagar – 414 003, Maharashtra, India

v Ahmednagar Shahar Sahakari Bank Maryadit, H.O: 'Sarvarth' Navi Peth, Ahmednagar Through, MIDC Branch, 'Arthkam' Dr. Chavan Hospital Compound, Ahmednagar – 414 001, Maharashtra, India

Facilities :

Secured Loans	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
From ASSB By Mortgage of fixed assets in addition to Hypothecation of stocks of raw material, finished goods and work in progress	19.104	16.014
ASSB - Term Loan on Machinery A/c no.75/20	1.313	1.812
ASSB - Term Loan on Machinery A/c no.37	1.675	1.918
ASSB – Term Loan on Machinery A/c No. 30	3.538	4.218
c) HDFC – Car Loan (On hypothecation of Car)	0.589	0.000
Total	26.219	23.962

Unsecured Loans	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Unsecured Interest Free Loan in the form of Special Incentive form Government of Maharashtra	0.320	0.320
Interest Free Sales Tax Loan (SICOM)	0.157	0.157
Sundry Deposits From Others	0.245	0.245
Advance From Party	1.272	0.000
Total	1.994	0.722

Banking Relations :	--
Auditors :
Name :	R.S. Bora and Company Chartered Accountants
Address :	Sancheti Corner, Above Canara Bank, Vasant Talkies Road, Ahmednagar – 414 001, Maharashtra, India
Tel. No.:	91-241-2346711 (O)/ 2357314 (R)
Mobile No.:	91-9850601100/ 9420347478
Income-tax PAN of auditor or auditor's firm :	AEHPB8592H
Memberships :	Small Scale Industries (SSI)

CAPITAL STRUCTURE

As on 12.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
805000	Equity Shares	Rs.10/- each	Rs.8.050 Millions
45000	Preference Shares	Rs.10/- each	Rs.0.450 Million
	Total		Rs.8.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
751300	Equity Shares	Rs. 10/- each	Rs.7.513 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
805000	Equity Shares	Rs.10/- each	Rs.8.050 Millions
45000	1% Cumulative Preference Shares	Rs.10/- each	Rs.0.450 Million
	Total		Rs.8.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs. 10/- each	Rs.5.000 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		5.000	5.000	2.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		12.804	10.718	9.709
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		17.804	15.718	11.709
LOAN FUNDS
1] Secured Loans		26.219	23.962	17.406
2] Unsecured Loans		1.994	0.722	0.730
TOTAL BORROWING		28.213	24.684	18.136
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		46.017	40.402	29.845
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16.589	14.908	14.780
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		1.072	1.490	0.771
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	24.028	15.438	8.930
	Sundry Debtors	21.895	19.897	14.576
	Cash & Bank Balances	1.300	1.078	1.048
	Other Current Assets	1.182	0.699	0.010
	Loans & Advances	4.435	4.095	2.373
Total Current Assets		52.840	41.207	26.937
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	22.727	16.158	11.362
	Current Liabilities	1.818	1.126	1.281
	Provisions	0.000	0.000	0.000
Total Current Liabilities		24.545	17.284	12.643
Net Current Assets		28.295	23.923	14.294
MISCELLANEOUS EXPENSES		0.061	0.081	0.000
TOTAL		46.017	40.402	29.845

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sale of Products (Net less Returns)	120.018	83.724	83.414
		Other Income		0.164	0.064
		Increase/ Decrease in Stock		2.710	0.170
		TOTAL (A)	120.018	86.598	83.648
Less	EXPENSES
		Manufacturing & Other Expenses	113.816	82.107	78.709
		TOTAL (B)	113.816	82.107	78.709
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6.202	4.491	4.939
Less	INTEREST (D)		2.716	2.374	1.947
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.486	2.117	2.992
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.400	1.109	1.128
	PROFIT BEFORE TAX (E-F) (G)		2.086	1.008	1.864
Less	TAX (H)		NA	0.322	0.377
	PROFIT AFTER TAX (G-H) (I)		NA	0.686	1.487
	EARNINGS IN FOREIGN CURRENCY		0.449	0.000	0.000
	Earnings Per Share (Rs.)		NA	2.02	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	0.79	1.78
Net Profit Margin (PBT/Sales)	(%)	NA	1.20	2.23
Return on Total Assets (PBT/Total Assets}	(%)	3.00	1.80	4.47
Return on Investment (ROI) (PBT/Networth)		0.12	0.06	0.16
Debt Equity Ratio (Total Liability/Networth)		2.96	2.67	2.63
Current Ratio (Current Asset/Current Liability)		2.15	2.38	2.13

LOCAL AGENCY FURTHER INFORMATION

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	Yes
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	No
17) Major suppliers	No
18) Major customers	Yes
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	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	No

FINANCIAL RESULTS:

The financial year 2010-2011 ended with a marginal increase in the turnover over the preceding financial year. The Financial recession all over the world disturbed the working of the company In the last year, but in this year, the company could build up on he sales , as their was good demand for the products. This year their Valves and castings sales have picked up and have been able to enter the market successfully as such the company could scale some good progress on the safes of their own products i.e. valves

During the year there has been a lot of pressure on the working capital, Continuous negotiations have been going on with the customers, and they hope that this trend of increase will soon be settled down, and the prices will be fixed at least for a sufficient period.

Further, the year passed can be said as the year of expansion. As the Company has started development of Valves and boiler mountings, new customers will be developed with the help of these new products, in the coming years.

With this background they would like to conclude that the current prospectus has been very hard for the company. However, they have been able to steer successfully, thru the rough waters. But with proper management and faster recovery of funds, they can hope for better prospects In the corning years Somehow they have been able to steer the Company thru the rough waters.

FUTURE PROSPECTS

Valves Activity

For last few years, the Company has found a good response for its own products i.e. "RUSHAS" brand Bronze Valves. Themax Limited are using their valves as original equipment for their bailers. Various steps have been taken to create Brand awareness of their products.

They have developed many good customers who are using their products i.e. G.M., Valves as original equipment of their products. They are very happy with the performance of their products. Also this year their products have been able to secure the confidence of the Boiler Industry, which is reflected by increase in the typical type of clients.

In continuation to the laid down strategies for the growth of the company, the company has invested in Induction furnace this will help for the horizontal growth by entering into high pressure valves. This valve is made of cast steel, and has big potential in domestic as well as international market. A team for new developments has been created and with the formation of this team, they intend to launch new products in the next year. Further the Company hopes to grow in both directions i.e. vertically by developing valves of the higher ranges and horizontally by developing new products especially for the boiler industry.

Ferrous Castings Activity:

In this area, they can say that, the company has good orders, The Company is renowned for quality castings but the expectations of the customers are known more prone to cost consciousness then quality standards. In the long run, they hope to get over this tide. Due to the goodwill of quality castings, the company has secured good orders for cast iron castings. With induction furnace under the belt, they have started Alloy steel castings as well as S.G. iron castings. They project a high growth in the near future on this account. However, in the coming period, Cast iron castings will be under pressure for rates which may hamper the profitability of the growth of the company.

On the other side, the management has taken various steps to tackle this problem and have made a direct attack on the loose points. They hope to lower their rejections in the near future which will help them in reduced hidden costs and ultimately hope for a increased earning from their products. Further, the rates of the raw material viz. scrap and pig iron are beyond their control, as they form a very small sector of the industry. The changes in these rates have affected the profitability of the company in this year.

This has been possible due to support from their existing customers and due to development of new customers for their products. Further on the order front, they hope for a very bright future as they intend in diversifying into new areas such as owned packaged products, which can fetch, more earnings.

It is hoped that barring the unforeseen circumstances and if present trend continues during the remaining period of the year; it would be possible to achieve a 35% increase in the sales during the current year.

Expansion Plan:

Considering the demand for its products and for the better management and internal control on the production the company has decided to expand its operations. They intend to augment the production facilities in Unit II and also start a new unit especially for High Grade steel castings. The modalities of the expansion are been worked out and the company will soon table the expansion plan in detail before the shareholders. The detailed feasibility report, and in-depth project report of the expansion project is been undertaken.

FINANCIAL PROSPECT:

The company has not been able to collect funds in time from the customers. This was the result of the Global Financial crisis. To maintain the cash and work flow sometimes the company had to get the bills discounted from the customers. This increased the interest burden of the company. But the same was felt necessary to manage the working capital of the company. They plan to work in tight budgetary controls and more effective realization from debts to ensure lesser interest burden.

Bankers Charges Report as per Registry

Corporate identity number of the company	U29199MH1978PTC020628
Name of the company	RUSHAS ENGINEERING COMPANY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	B-6, MIDC, Ahmednagar – 414 111, Maharashtra, India E-Mail: satish@rushas.com
This form is for	Creation of charge
Type of charge	Immovable Property Movable Property (not being pledge)
Particular of charge holder	Small Industries Development Bank of India, Kamada House, 1^st Floor, Next to Hotel Shradha, Nagar Manmad Road, Savedi, Ahmednagar – 414 003, Maharashtra, India E-Mail: yadarkar@sidbi.in
Nature of description of the instrument creating or modifying the charge	1) Deed of Hypothecation 2) Entry No.02 3) Declaration and Undertaking (All the documents executed for creation of a single charge)
Date of instrument Creating the charge	20.01.2012
Amount secured by the charge	Rs.40.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest will be payable at 0.50% over SIDBI's Prime Lending Rate (PLR) rising or falling therewith, with monthly rests. The current SIDBI PLR being 12.75% and current effective rate of 13.25% p.a. Terms of Repayment: The term loan of Rs.40.000 millions shall be repayable in 72 monthly installments comprising of first 12 installments of Rs.0.425 million each. Followed by next 12 installments of Rs.0.475 million each, followed by next 12 installments of Rs.0.575 million each, followed by next 24 installments of Rs.0.600 million each followed by next 11 installments of Rs.0.650 million and last installment of Rs.0.750 million commencing after moratorium of 12 months from the date of first disbursement. Margin: 26.67% Total cost of the Project is Rs.54.550 millions. Margin money by the Company is Rs.14.550 millions. Extent and Operation of the charge: Facility of Rs.40.000 millions under DCS-TL. First charge of SIDBI. Charge on hypothecated and mortgaged property bearing Plot No.B-6, Ahmednagar MIDC Area, Village Nagapur, Taluka Nagapur, District Ahmednagar continues till full repayment of Loan.
Short particulars of the property charged	First Charge by way of hypothecation on all the movables of the Borrower including plant and machinery, equipment, machinery spares, tools and accessories, Office Equipment, Computers, Furniture and Fixtures, miscellaneous Fixed Assets acquired/to be acquired under the Project. First Charge by way of Equitable Mortgage of all the immovable properties of the borrower - All that piece and parcel of the property bearing Plot No.B-6,Ahmednagar MIDC Area, Village Nagapur, Taluka Nagapur, District Ahmednagar within the limits of the Nagapur Taluka adm.12000 Sq. mtrs. together with the industrial shed constructed thereon having built up area adm.1001.74 Sq. Mtrs. together with all buildings and structures thereon and plant and machinery attached to earth or permanently fastened to anything attached to earth.

FIXED ASSETS:

v Land

v Factory Building

v Office Building

v Plant and Machinery

v Electrical Installation

v CNC m/c

v Lab Installation

v Pattern

v Dies and Moulds

v Generator 27 KVA

v Oil Fired Heat Furnace

v Induction Furnace Furniture

v Office Equipment

v Furniture

v Computer

v Fax

v CC TV

v Vehicles

v Building Under Construction

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.55.33
UK Pound	1	Rs.89.05
Euro	1	Rs.72.57

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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		46

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.