MIRA INFORM REPORT

Report Date :

03.07.2013

IDENTIFICATION DETAILS

Name :	KHK PRESSING AND FORGING PRIVATE LIMITED
Registered Office :	Gram Panchderiya, Post Alwasa, Tehsil Sanwear, Indore-Ujjain Road, Indore-453331, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	22.10.2003
Com. Reg. No.:	10-016173
Capital Investment / Paid-up Capital :	Rs.5.100 Millions
CIN No.: [Company Identification No.]	U13100MP2003PTC016173
TAN No.: [Tax Deduction & Collection Account No.]	BPLK01948C
PAN No.: [Permanent Account No.]	AACCK2808H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Drop Forged Couplers, Pressed Couplers, Scaffolding Accessories, Grave Lock Coupler, Half Couplers, etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (11)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow and delayed
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appears huge accumulated losses recorded due to which the networth of the company has been completely eroded. However, business is active. Payment terms are reported as slow and delayed. The company can be considered for business dealings on a safe and secured 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 [GENERAL DETAILS]

Name :	Mr. Ajeet Kataria
Designation :	General Manager
Contact No.:	91-9993519179
Date :	26.06.2013

LOCATIONS

Registered Office/ Factory :	Gram Panchderiya, Post Alwasa, Tehsil Sanwear, Indore-Ujjain Road, Indore-453331, Madhya Pradesh, India
Tel. No.:	91-231-3296481
Mobile No.:	91-9993519179 [Mr. Ajeet Kataria]
Fax No.:	Not Available
E-Mail :	khkindore@yahoo.com
Location :	Owned

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Anilmunishkumar Arjan Taurani

Designation :

Director

Address :

Daz-A-2-41, Adipur, Kutch-370205, Gujarat, India

Date of Birth/Age :

12.11.1968

Date of Appointment :

22.10.2003

Din No.:

01724937

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	Company/ LLP Status	Defaulting status
1	U31104DL1992PTC050626	UNITHERM INDUCTOWELD (INDIA) PRIVATE LIMITED	Director	14/10/1992	14/10/1992	Active	NO
2	U13100MP2003PTC016173	KHK PRESSINGS AND FORGING PRIVATE LIMITED	Director	22/10/2003	22/10/2003	Active	NO
3	U45400MH2007PTC171139	KIPRA BUILD INDIA PRIVATE LIMITED	Director	24/05/2007	24/05/2007	Active	NO

Name :

Mr. Arjan Dolumal Taurani

Designation :

Director

Address :

Daz-A-2-41, Adipur, Kutch-370205, Gujarat, India

Date of Birth/Age :

02.02.1936

Date of Appointment :

22.10.2003

Din No.:

01711515

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	Company/ LLP Status	Defaulting status
1	U31104DL1992PTC050626	UNITHERM INDUCTOWELD (INDIA) PRIVATE LIMITED	Director	14/10/1992	14/10/1992	Active	NO
2	U13100MP2003PTC016173	KHK PRESSINGS AND FORGING PRIVATE LIMITED	Director	22/10/2003	22/10/2003	Active	NO
3	U45400MH2007PTC171139	KIPRA BUILD INDIA PRIVATE LIMITED	Director	24/05/2007	24/05/2007	Active	NO

Name :

Mr. Lalit Arjan Taurani

Designation :

Director

Address :

Daz-A-2-41, Adipur, Kutch-370205, Gujarat, India

Date of Birth/Age :

30.01.1974

Date of Appointment :

22.10.2003

Din No.:

01711330

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	Company/ LLP Status	Defaulting status
1	U13100MP2003PTC016173	KHK PRESSINGS AND FORGING PRIVATE LIMITED	Director	22/10/2003	22/10/2003	Active	NO
2	U45400MH2007PTC171139	KIPRA BUILD INDIA PRIVATE LIMITED	Director	24/05/2007	24/05/2007	Active	NO

Name :

Mervyn Savio Dcunha

Designation :

Director

Address :

52, Flower Nest, Off Pali Mala Road, Shepley Bandra, Mumbai-400050, Maharashtra, India

Date of Birth/Age :

11.04.1961

Date of Appointment :

31.12.2009

Din No.:

02897417

KEY EXECUTIVES

Name :	Mr. Ajeet Kataria
Designation :	General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Arjan Dolumal Taurani	2898
Anilmunishkumar Arjan Taurani	2800
Lalit Arjan Taurani	2800
Ghisalal Yadav	500
Pritesh Yadav	1000
A-Val Holding and Investments Limited, Mauritius	500000
Mervyn Dcunha	1
Gopal Mulani	1
TOTAL	510000

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	98.04
Bodies corporate	1.96
TOTAL	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Drop Forged Couplers, Pressed Couplers, Scaffolding Accessories, Grave Lock Coupler, Half Couplers, etc.
Exports :
Products :	Drop Forged Couplers, Pressed Couplers, Scaffolding Accessories, Grave Lock Coupler, Half Couplers, etc.
Countries :	Soudi Arabia
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Punjab National Bank

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Short Term Borrowings
ICICI Bank Limited [A/C 5462]	2.108	2.272
Indus-Ind Bank [A/C 53]	0.185	0.724
Indus-Ind Bank [A/C 52]	0.000	0.761
TOTAL	2.293	3.757
NOTES: 1. Short term borrowing from ICICI Bank and Indusind Bank is secured against FDRs with the respective banks and carries interest at 2% above the FDR Interest Rate. Further the loan is not secured by the personal guarantee of any of the directors of the company. 2. The unsecured loans under long term borrowing is taken from director of the company. The loan is interest free loan and is repayable on demand.

Banking Relations :	--
Auditors :
Name :	Arora Banthiya and Tulsiyan Chartered Accountants
Address :	6^th Floor, Silver Area Plaza, 20/1, New Palasia, Indore-452001, Madhya Pradesh, India
Mobile No.:	91-9406647771
PAN No:	AEOPJ2981H
Associates and Others :	· KHK Scaffolding and Formworks LLC (Rej Pipes) · KHK Scaffolding and Formworks LLC (Machinery) · KHK Scaffolding and Formworks LLC (Pipes) · KHK Scaffolding and Formworks LLC (Debtors) · Universal Tube and Plastic Industries Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
510000	Equity Shares	Rs.10/- each	Rs.5.100 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
510000	Equity Shares	Rs.10/- each	Rs.5.100 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	5.100	5.100
(b) Reserves & Surplus	(32.143)	(20.225)
(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)	(27.043)	(15.125)
(3) Non-Current Liabilities
(a) long-term borrowings	31.703	29.985
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	31.703	29.985
(4) Current Liabilities
(a) Short term borrowings	2.293	3.757
(b) Trade payables	25.527	22.320
(c) Other current liabilities	56.393	38.866
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	84.213	64.943
TOTAL	88.873	79.803
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	38.992	33.702
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	1.299	6.157
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	15.190	10.734
(d) Long-term Loan and Advances	5.435	7.146
(e) Other Non-current assets	0.115	0.000
Total Non-Current Assets	61.031	57.739
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	10.521	4.853
(c) Trade receivables	0.000	0.000
(d) Cash and cash equivalents	10.639	12.255
(e) Short-term loans and advances	6.396	4.689
(f) Other current assets	0.286	0.267
Total Current Assets	27.842	22.064
TOTAL	88.873	79.803

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		5.100
2] Share Application Money		5.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		(21.793)
NETWORTH		(11.693)
LOAN FUNDS
1] Secured Loans		0.273
2] Unsecured Loans		30.203
TOTAL BORROWING		30.476
DEFERRED TAX LIABILITIES		0.000
TOTAL		18.783
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		37.270
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		8.511
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.550
	Sundry Debtors	0.309
	Cash & Bank Balances	0.880
	Other Current Assets	11.377
	Loans & Advances	10.784
Total Current Assets		27.900
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	17.421
	Other Current Liabilities	36.402
	Provisions	1.089
Total Current Liabilities		54.912
Net Current Assets		(27.012)
MISCELLANEOUS EXPENSES		0.014
TOTAL		18.783

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	121.465	113.160	108.284
		Other Income	1.074	2.419	13.445
		TOTAL (A)	122.539	115.579	121.729
Less	EXPENSES
		Cost of Materials Consumed	100.827	89.575
		Purchase of Stock in Trade (Net)	0.507	2.784
		Manufacturing and Operating Costs	9.167	7.982	113.396
		Employee Benefits Expenses	17.738	15.699
		Other Expenses	10.695	5.911
		Changes in Inventories of Finished Goods, WIP and Stock in Trade	(4.384)	(0.234)
		TOTAL (B)	134.550	121.717	113.396
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(12.011)	(6.138)	8.333
Less	FINANCIAL EXPENSES (D)		0.180	0.114	0.029
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(12.191)	(6.252)	8.304
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.182	3.947	3.759
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(16.373)	(10.199)	4.545
Less	TAX (H)		(4.455)	(3.299)	1.078
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(11.918)	(6.900)	3.467
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	(21.793)
	BALANCE CARRIED TO THE B/S		NA	NA	(18.326)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	98.356	96.319	NA
	IMPORTS
		Raw Materials	0.985	0.000	NA
	Earnings / (Loss) Per Share (Rs.)		(22.56)	(13.06)	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(9.73)	(5.97)	2.85
Net Profit Margin (PBT/Sales)	(%)	(13.47)	(9.01)	4.20
Return on Total Assets (PBT/Total Assets}	(%)	(22.62)	(16.21)	6.97
Return on Investment (ROI) (PBT/Networth)		0.60	0.67	(0.39)
Debt Equity Ratio (Total Debt/Networth)		(1.25)	(2.23)	(2.61)
Current Ratio (Current Asset/Current Liability)		0.33	0.34	0.51

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

NOTE:

The registered office of the company has been shifted from Indore, Madhya Pradesh, India to the present address w.e.f.20.12.2006.

PERFORMANCE AND FUTURE PROSPECTS:

The general recession in the economy and industry has adverse effect on the profitability of the company. However, the company expects better results in the forth‐coming years.

Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings
From Directors and Shareholders	31.703	29.985
TOTAL	31.703	29.985

FIXED ASSETS:

· Land

· Factory Building

· Factory Shed

· Computer and Accessories

· Bicycle

· Telephone Instruments

· Electric Fitting and Installation

· Dies and Tools

· Furniture and Fixtures

· Plant and Machinery

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

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	1
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	1
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		11

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.