MIRA INFORM REPORT

Report Date :

30.01.2013

IDENTIFICATION DETAILS

Name :	STUMPP SCHUELE AND SOMAPPA SPRINGS PRIVATE LIMITED (w.e.f 06.12.2007)
Formerly Known As :	Allevard Springs (India) Private Limited
Registered Office :	139/2, Hosur Road, Koramangala, Bangalore – 560 095, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	12.08.1996
Com. Reg. No.:	08-038742
Capital Investment / Paid-up Capital :	Rs.30.100 Million
CIN No.: [Company Identification No.]	U29299KA1996PTC038742
TAN No.: [Tax Deduction & Collection Account No.]	BLRS28339D
PAN No.: [Permanent Account No.]	AALCS7347E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of Stabilizer Bars and all Varieties of Springs, all type of Automobile Components, Spare Parts and Accessories etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 1500000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a subsidiary of ‘Stumpp Schuele and Somappa Private Limited’. It is an established company having a moderate track record. There appear huge external borrowings recorded by the company. The profitability has dipped drastically during 2012. However, trade relations are reported as fair. Business is active. Payment terms are reported as slow but correct. The company can be considered for business dealings with some 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 – 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	CRISIL
Rating	A4+ (Bank Guarantee and letter of credit)
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	17.02.2012

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 :	139/2, Hosur Road, Koramangala, Bangalore – 560 095, Karnataka, India
Tel. No.:	91 80 25532335 (8 lines) / 40707400 / 25532858
Fax No.:	91 80 25530622 / 25532379
E-Mail :	mahesh@legalcliff.in csbmshenoy@rediffmail.com bmaheshshenoy@gmail.com mrramesh@sss-india.com ravi@ssssprings.com (International Sales – Ravi Machani) amarbabu@ssssprings.com (Domestic Sales – Amar Babu)
Website :	http://www.sss-india.com http://www.ssssprings.com
Sales Office :	PO Box 275, New Hudson, MI 48165-0275, USA
Tel. No.:	+1 (248) 4123367
Fax No.:	+1 (248) 2645000
E-Mail :	Derek@ssssprings.com
Regional Offices :	Located at : Pune : 91-20-5898956 / 656 Chennai : 91-4426810028 / 0727 Kolkata : 91-33-4222265 Delhi / Gurgaon : Plot No.131, Roz-Ka-Meo Industrial Area, Dist Mewat Sohna Gurgaon – 122103, India Tel. No. : 91 124 2210821/820

DIRECTORS

As on: 27.09.2012

Name :	Mr. Murali Ananthasivan
Designation :	Director
Address :	77 & 78, 6th Cross, Bhuvaneshwarinagar, Hebbal- Dasarahalli, Off Bellary Road, Bangalore,560024, Karnataka, India
Date of Birth/Age :	20.06.1959
Date of Appointment :	28.09.2011
DIN No.:	00009311
Name :	Mr. Ramanna Gangadhar Machani
Designation :	Director
Address :	M. G. Brothers Automobiles Private Limited, Dargamitta, Nellore, Bangalore- 524003, Karnataka , India
Date of Birth/Age :	18.09.1958
Date of Appointment :	04.06.2009
DIN No.:	00267779
Name :	Mr. Ramesh Ramanna Machani
Designation :	Whole-time Director
Address :	No.456, Kothanur Cross, Arekere Village, I I M Post Bangalore- 560076, India
Date of Birth/Age :	15.03.1946
Date of Appointment :	12.08.1996
DIN No.:	00319941
Name :	Mr. Satish Ramesh Machani
Designation :	Managing Director
Address :	No.456, Kothanur Cross, Arekere Village, I I M Post Bangalore- 560076, Karnataka, India
Date of Birth/Age :	01.10.1971
Date of Appointment :	04.06.2009
DIN No.:	00320532
Name :	Mr. Ravi Ramesh Machani
Designation :	Whole-time Director
Address :	No.456, Kothanur Cross, Arekere Village, I I M Post Bangalore- 560076, Karnataka, India
Date of Birth/Age :	08.08.1973
Date of Appointment :	04.06.2009
DIN No.:	00320603
Name :	Mr. Narsimhan Chakravarthi . Srinivasan
Designation :	Director
Address :	7C, Sukhi Apartments, 17 Rhenius Street, Richmond Town, Bangalore – 560025, Karnataka, India
Date of Birth/Age :	28.05.1945
Date of Appointment :	12.08.1996
DIN No.:	00471801
Name :	Mr. Machani Ramanna Ganganna
Designation :	Director
Address :	1/1400, HSB Colony, Yemmiganur, 518360, Andhra Pradesh, India
Date of Birth/Age :	03.02.1944
Date of Appointment :	04.06.2009
DIN :	02063513
Name :	Mrs. Deepa Anil Kumar
Designation :	Director
Address :	No.456, Kothanur Cross, Arekere Village, I I M Post Bangalore- 560076, Karnataka, India
Date of Birth/Age :	03.03.1976
Date of Appointment :	06.09.2010
DIN :	02741980

MAJOR SHAREHOLDERS

As on: 27.09.2012

Names of Shareholders	No. of Shares
Stumpp Schuele And Somappa Springs Private Limited, India	3009990
Mr. M R Ramesh	10
Total	3010000

Equity Share Break up (Percentage of Total Equity)

As on: 27.09.2012

Category	Percentage
Directors or relatives of Directors	0.10
Other top fifty shareholders	99.90
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier of Stabilizer Bars and all Varieties of Springs, all type of Automobile Components, Spare Parts and Accessories etc.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• State Bank of Travancore, Residency Road Branch, Aishwarya Castle, #10, Castle Street, Near Brigade Towers, Ashok Nagar, Bangalore – 560025, Karnataka, India
• State Bank of India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long Term Borrowing
Term loans from banks	131.300	83.700
Other loans and advances	4.441	3.178
Short Term Borrowing
Working capital loans from banks	687.960	645.748
Other loans and advances	178.650	178.148
Total	1002.351	910.774

Banking Relations :	--
Auditors :
Name :	Brahmayya and Company Chartered Accountants
Address :	Khivraj Mansion, 10/2, Kasturba Road, Bangalore – 560001, Karnataka, India
PAN.:	AAASB9147R
Associates/Subsidiaries :	· Stumpp Schuele and Somappa Private Limited CIN No. U31901KA1960PTC001378 · Mg Metallic Springs Private Limited CIN No. U28991AP1973PTC001666 · MGM Springs Private Limited · Machani Infra Development Corporation Private Limited CIN No. U70102KA2010PTC055397 · Nippon Electronics (Nel) Private Limited CIN No. U29120KA2011PTC057120 · SSS Springs and Wire · Indivillage Tech Solutions Private Limited CIN No. U72900KA1995PTC020932

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs.10/- each	Rs.75.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3010000	Equity Shares	Rs.10/- each	Rs.30.100 Million

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		30.100	30.100	30.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		345.492	313.837	240.856
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		375.592	343.937	270.956
LOAN FUNDS
1] Secured Loans		1002.351	910.774	777.503
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1002.351	910.774	777.503
DEFERRED TAX LIABILITIES		9.297	12.705	0.000
TOTAL		1387.240	1267.416	1048.459
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		586.489	468.669	327.509
Capital work-in-progress		30.593	12.465	15.089
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	5.614
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	460.955	374.145	294.949
	Sundry Debtors	588.444	513.288	395.647
	Cash & Bank Balances	66.300	83.958	89.507
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	349.147	328.433	250.775
Total Current Assets		1464.846	1299.824	1030.878
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	481.999	322.058	223.022
	Other Current Liabilities	180.318	148.174	62.888
	Provisions	32.371	43.310	44.721
Total Current Liabilities		694.688	513.542	330.631
Net Current Assets		770.158	786.282	700.247
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1387.240	1267.416	1048.459

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2779.796	2491.293	1415.584
		Other Income	8.983	6.462	11.851
		TOTAL (A)	2788.779	2497.755	1427.435
Less	EXPENSES
		Cost of Materials consumed	1625.341	1393.500	1225.604
		Change In inventories	(30.622)	(22.052)
		Employee benefit expenses	356.786	305.139
		Other expenses	529.930	484.842
		TOTAL (B)	2481.435	2161.429	1225.604
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		307.344	336.326	201.831
Less	FINANCIAL EXPENSES (D)		150.050	106.118	66.297
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		157.294	230.208	135.534
Less/ Add	DEPRECIATION/ AMORTISATION (F)		128.270	106.931	54.533
	PROFIT BEFORE TAX (E-F) (G)		29.024	123.277	81.001
Less	TAX (H)		NA	NA	18.524
	PROFIT AFTER TAX (G-H) (I)		NA	NA	62.477
	BALANCE CARRIED TO THE B/S		29.024	123.277	62.477
	EARNINGS IN FOREIGN CURRENCY
		Export on FOB Basis	38.002	26.154	21.542
	TOTAL EARNINGS		38.002	26.154	21.542
	IMPORTS
		Raw Materials	NA	NA	272.876
		Stores & Spares	NA	NA	20.357
	TOTAL IMPORTS		NA	NA	293.233
	Earnings Per Share (Rs.)		--	29.50	29.79

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.04	4.94	4.43
Net Profit Margin (PBT/Sales)	(%)	1.04	4.95	5.72
Return on Total Assets (PBT/Total Assets}	(%)	1.41	6.97	5.96
Return on Investment (ROI) (PBT/Networth)		0.08	0.36	0.30
Debt Equity Ratio (Total Liability/Networth)		4.52	4.14	4.09
Current Ratio (Current Asset/Current Liability)		2.11	2.53	3.12

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

PERFORMANCE AND FUTURE OUTLOOK:

During the year the Company recorded a turnover of Rs 2788.700 Millions as against 2497.700 Millions in 2010-2011, growth of 11.25% compared to the previous. However, the profit has declined due to sharp depreciation of rupee against the dollar and also increases in other input costs.

Future Outlook:

The Company expecting a good growth during the current year. Due to stabilization of dollar the profit margins are also expected to be higher than the previous year.

BANKERS CHARGES REPORT AS PER REGISTRY:

Corporate identity number of the company	U29299KA1996PTC038742
Name of the company	STUMPP SCHUELE AND SOMAPPA SPRINGS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	139/2, Hosur Road, Koramangala, Bangalore – 560 095, Karnataka, India sbmshenoy@rediffmail.com
This form is for	Creation of charge
Type of charge	· Movable property (not being pledge) · Floating charge
Particular of charge holder	State Bank Of Hyderabad, Industrial Finance Branch, Sheriff House, Bangalore - 560025, Karnataka, India ifb_bng@sbhyd.co.in
Nature of instrument creating charge	Agreement of Hypothecation of Goods and Assets
Date of instrument Creating the charge	08.11.2011
Amount secured by the charge	Rs.80.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 4% above Base Rate (floating) Terms of Repayment TL - Repayable in 16 equal quarterly installments of each of Rs.5.000 Millions after moratorium/draw down period of six months from the date of first disbursement of term loan. Interest to be paid as and when debited. FLC - Usance 90 days Margin TL - 36.31% FLC - As applicable to term loan Extent and Operation of the charge The charge shall operate to the extent of the loan amount plus interest commission costs expenses and other charges thereon Others Term Loan Rs.80.000 Millions (with a LC (Capex) sublimit of Rs.80.000 Millions)
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Pari passu first charge on the movable fixed assets of the company including proposed fixed assets to be acquired

FIXED ASSETS:

• Plant and Machinery
• Computers
• Electrical Installations
• Furniture and Fixture
• Vehicles
• Know-how

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.53.70
UK Pound	1	Rs.84.35
Euro	1	Rs.72.21

INFORMATION DETAILS

Report Prepared by :

RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--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	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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		33

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.