MIRA INFORM REPORT

Report Date :

03.07.2013

IDENTIFICATION DETAILS

Name :	DECCAN FARM EQUIPMENT PRIVATE LIMITED
Registered Office :	F 10/2, MIDC, Shiroli, Kolhapur – 416122, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	26.02.1991
Com. Reg. No.:	11-060480
Capital Investment / Paid-up Capital :	Rs.1.087 Millions
CIN No.: [Company Identification No.]	U29211MH1991PTC060480
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Agricultural Equipments.
No. of Employees :	70 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 124000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears slight dip in its sales and profitability during 2012. However, networth of the company is good. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

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 PARTED BY

Name :	Mr. Bharat D. Patil
Designation :	Director
Contact No.:	91-9923147700
Date :	01.07.2013

LOCATIONS

Registered Office :	F 10/2, MIDC, Shiroli, Kolhapur – 416122, Maharashtra, India
Tel. No.:	91-231-2468904
Mobile No.:	91-9923147700 (Mr. Bharat D. Patil)
Fax No.:	91-231-2468905
E-Mail :	bharat@deccanequipments.com
Area :	25000 Sq. ft
Location :	Owned
Factory :	C-35, MIDC, Shiroli, Kolhapur – 416112, Maharashtra, India
Area :	25000 Sq. ft
Location :	Owned

DIRECTORS

As on: 29.09.2012

Name :	Mr. Bharat Devgonda Patil
Designation :	Managing Director
Address :	Kusum 209A/7D/91, Tarabai Park, Kolhapur – 416003, Maharashtra, India
Date of Birth/Age :	16.08.1964
Date of Appointment :	25.03.1991
DIN No.:	00458372
Name :	Mr. Devgonda Sidgonda Patil
Designation :	Whole Time Director
Address :	Kusum 209A/7D/91, Tarabai Park, Kolhapur – 416003, Maharashtra, India
Date of Birth/Age :	05.08.1925
Date of Appointment :	25.03.1991
DIN No.:	00531752
Name :	Ms. Kavita Bharat Patil
Designation :	Whole Time Director
Address :	Kusum 209A/7D/91, Tarabai Park, Kolhapur – 416003, Maharashtra, India
Date of Birth/Age :	09.02.1972
Date of Appointment :	30.09.1997
DIN No.:	00844209

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Devgonda Sidgonda Patil	4525
Bharat Devgonda Patil	5343
Kavita Bharat Patil	1000
Total	10868

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Agricultural Equipments.
Products :	· Pushpak Rotary Tillers (1 M to 2.4 M) · Mini Rotary Tiller · Pushpak Hydraulic Reversible Ploughs (2 MB and 3 MB) · Ratoon Manager (Basic Model and with Fertilizer Unit) · Pushpak Palakutti Machine / Pushpak Trash Shredder (For 540 and 1000 RPM tractors).
Exports :
Products :	Agricultural Equipments
Countries :	African Countries
Terms :
Selling :	L/C, Cash and Credit (30 days/ 60 days)
Purchasing :	Cash and Credit (30 days/ 60 days)

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

70 (Approximately)

Bankers :

· Bank of Maharashtra, MID Corporate Branch, P-40, M.I.D.C., Gokul Shirgaon Branch, Kolhapur - 416234, Maharashtra, India

· Saraswat Co-Operative Bank, C.T.S. No. 1716, E Ward, Rajarampuri, 7th Lane, Kolhapur - 416008, Maharashtra, India

· State Bank of India, Kolhapur Branch, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long Term Borrowing
Term Loan from Banks
From the Saraswat Co-Operative Bank Limited (Machinery Term Loan No. 3504)	0.023	0.921
Less: Current Maturities	(0.023)	(0.898)
From the Saraswat Co-Operative Bank Limited (Car Loan No. 4227)	3.351	4.002
Less: Current Maturities	(0.684)	(0.669)
From the Saraswat Co-Operative Bank Limited (Machinery Term Loan No. 3972)	0.000	0.909
Less: Current Maturities	0.000	(0.905)
Loans repayable on Demand - From Banks
Cash credit From The Saraswat Co-Operative Bank Limited A/c 931	15.242	2.483
Total	17.909	5.843

Banking Relations :	--
Auditors :
Name :	Dipali G Gawali Chartered Accountants
Address :	Hill View, B-3, Chattrapati Park, New Palace Area, Kolhapur – 416003, Maharashtra, India
PAN No.:	AMSPG7928D
Memberships :	· Shiroli Manufacturers Association Kolhapur (SMAK) · Engineering Export Promotion Council (EEPC) · Industrial Product Finder · Agricultural Implement Manufacturing Association · Indo German Chamber of Commerce
Proprietorship/Partnership Concerns over which Key Management Personnel or their relatives have control or significant influence:	Hindustan Engineering Industries
Companies over which Key Management Personnel or their relatives have control or significant influence:	Annapuma Machinefabrik Private Limited

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs.100/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10868	Equity Shares	Rs.100/- each	Rs.1.087 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1.087	1.087
(b) Reserves & Surplus	30.081	29.234
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	31.168	30.321
(3) Non-Current Liabilities
(a) long-term borrowings	7.250	3.790
(b) Deferred tax liabilities (Net)	0.529	0.794
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	7.779	4.584
(4) Current Liabilities
(a) Short term borrowings	15.242	2.483
(b) Trade payables	20.879	21.323
(c) Other current liabilities	2.999	5.810
(d) Short-term provisions	0.360	0.987
Total Current Liabilities (4)	39.480	30.603
TOTAL	78.427	65.508
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	35.984	28.686
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	3.461	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.002	0.002
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.197	0.177
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	39.644	28.865
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	27.017	16.596
(c) Trade receivables	4.135	10.745
(d) Cash and cash equivalents	3.488	6.528
(e) Short-term loans and advances	0.841	0.797
(f) Other current assets	3.302	1.977
Total Current Assets	38.783	36.643
TOTAL	78.427	65.508

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		1.087
2] Share Application Money		0.000
3] Reserves & Surplus		27.830
4] (Accumulated Losses)		0.000
NETWORTH		28.917
LOAN FUNDS
1] Secured Loans		7.829
2] Unsecured Loans		0.466
TOTAL BORROWING		8.295
DEFERRED TAX LIABILITIES		0.330
TOTAL		37.542
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.339
Capital work-in-progress		5.106
INVESTMENT		2.002
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.721
	Sundry Debtors	4.485
	Cash & Bank Balances	7.743
	Other Current Assets	0.104
	Loans & Advances	25.319
Total Current Assets		49.372
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	15.796
	Other Current Liabilities	1.281
	Provisions	10.200
Total Current Liabilities		27.277
Net Current Assets		22.095
MISCELLANEOUS EXPENSES		0.000
TOTAL		37.542

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	73.776	75.620	51.753
		Other Income	6.413	2.946	28.601
		TOTAL (A)	80.189	78.566	80.354
Less	EXPENSES
		Operating Expenses	72.483	72.966	48.805
		TOTAL (B)	72.483	72.966	48.805
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		7.706	5.600	31.549
Less	FINANCIAL EXPENSES (D)		2.114	1.142	0.964
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5.592	4.458	30.585
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.650	1.512	1.499
	PROFIT BEFORE TAX (E-F) (G)		0.942	2.946	29.086
Less	TAX (H)		0.095	1.542	10.184
	PROFIT AFTER TAX (G-H) (I)		0.847	1.404	18.902
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.947	NA	NA
	TOTAL EARNINGS		0.947	NA	NA
	TOTAL IMPORTS		4.028	10.761	NA
	Earnings Per Share (Rs.)		77.94	129.16	NA

Particulars	31.03.2013
Sales Turnover (Approximately)	85.000

Expected Sales (2013-2014): Rs.40.000 Millions

The above information has been parted by Mr. Bharat D. Patil

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.06	1.79	23.53
Net Profit Margin (PBT/Sales)	(%)	1.28	3.90	56.20
Return on Total Assets (PBT/Total Assets}	(%)	1.26	4.50	50.40
Return on Investment (ROI) (PBT/Networth)		0.03	0.10	1.01
Debt Equity Ratio (Total Debt/Networth)		0.72	0.21	0.29
Current Ratio (Current Asset/Current Liability)		0.98	1.27	1.81

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	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 four years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Long Term Borrowing
From Related Parties	4.332	0.189
From Dealers	0.251	0.241
Total	4.583	0.430

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U29211MH1991PTC060480
Name of the company	DECCAN FARM EQUIPMENT PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	F 10/2, MIDC, Shiroli, Kolhapur – 416122, Maharashtra, India E-mail: bharat@deccanequipments.com
This form is for	Creation of charge
Type of charge	· Book debts · Movable property (not being pledge)
Particular of charge holder	Bank of Maharashtra, MID Corporate Branch, P-40, M.I.D.C., Gokul Shirgaon Branch, Kolhapur - 416234, Maharashtra, India E-mail: bom1575@mahabank.co.in
Nature of instrument creating charge	Composit Deed of Hypothecation For All Facilities
Date of instrument Creating the charge	11.09.2012
Amount secured by the charge	Rs.35.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Base Rate + 3.25%. Presently @ 13.75% p.a. at Monthly Rest. Terms of Repayment 1) Cash Credit : Annually renewable 2) Term Loan 1 and 2 : a) Period : 77 months b) Moratorium Period of 7 Months from the date of disbursement c) Repayment : Monthly installment of Rs. 0.130 Million plus interest Margin 40% for all limits Extent and Operation of the charge Charge to Secure Total Credit limit of Rs. 35.000 Millions as follows : 1) Cash Credit of Rs. 15.000 Millions 2)Term Loan 1 of Rs. 10.000 Millions and 3)Term Loan 2 of Rs. 10.000 Millions. Others Personal Guarantee of Two Directors : 1) Mr. Bharat Patil, 2) Mr. Devgonda Patil
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of present and future movable plants, Machineries, Goods, Stocks of Raw Materials, items, inventories, Stock in Process, semi finished and Finished Goods Stock in trade, Stores and Spares, Present and Future tangible and Intangible Assets, Goodwill, Trademark, Copyright, Patent and all rights and benefits thereof, All outstanding Monies, Claims, Bills, Receivables, Book Debts Articles, Installations, Equipments, Tools, Implements ,Vehicles such as : 1) Horizontal Machining Centre 2) Vertical Machining Centre 3) CMM for measuring Parts 4) Powder Coating Plants. 5) Radial Drilling Machine 6) Hydrolic Press 7) Other machineries such as welding, Bandsaw, Grinder, Jigs and Fixture etc.

FIXED ASSETS

· Land

· Building

· Plant and machinery

· Vehicles

· Furniture and Fitting

· Office Equipments

· Electrical Installations

· Jigs and Fixture

· Patterns

· Technical Know How

· Dies

· Software

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.59.41
UK Pound	1	Rs.90.38
Euro	1	Rs.77.61

INFORMATION DETAILS

Information Gathered by :	JML
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	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.