MIRA INFORM REPORT

Report Date :

05.07.2013

IDENTIFICATION DETAILS

Name :	ESGI TOOLS PRIVATE LIMITED
Registered Office :	D-58, Industrial Area, Phase – V, Mohali-160061, Punjab
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	28.01.1998
Com. Reg. No.:	16-021017
Capital Investment / Paid-up Capital :	Rs.8.353 Millions
CIN No.: [Company Identification No.]	U28939PB1998PTC021017
TAN No.: [Tax Deduction & Collection Account No.]	PTLE10274E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of Gear Hobs, Gear Shaper Cutters, Shaving Cutters, Milling Cutters, Master Gears, Bevel Gear Blades Cutting Tools, Broaches and Cutters, etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (37)

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

Maximum Credit Limit :	USD 135000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The performance capability of the company appears to be good. However, the financial strength is below average due to huge external borrowings. Trade relations are fair. Business is active. Payment terms are 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 – 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	SE2B
Rating Explanation	Moderate financial strength and high performance capability.
Date	27.07.2012

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 :	D-58, Industrial Area, Phase – V, Mohali – 160061, Punjab, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	ca.manish.g@gmail.com
Website :	http://www.esgitools.com
Factory :	B-6, Focal Point, Patiala-147004, Punjab, India
Tel. No.:	91-175-2233991-94
Fax No.:	91-175-2233990
E-Mail :	esgi@esgitools.com

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Sushil Gupta

Designation :

Director

Address :

H No.146-S, Punjabi Bagh, Patiala, Punjab, India

Date of Birth/Age :

25.01.1959

Date of Appointment :

28.01.1998

Din No.:

00092559

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	U28939PB1998PTC021017	ESGI TOOLS PRIVATE LIMITED	Director	28/01/1998	28/01/1998	-	Active	NO
2	U27100CH2004PTC027306	SHUBHAM ALLOYS AND ROLLS PRIVATE LIMITED	Director	16/07/2004	16/07/2004	25/03/2011	Active	NO
3	U45201HR2006PLC036045	ADD MORE PROMOTERS AND DEVELOPERS LIMITED	Director	14/02/2006	14/02/2006	-	Active	NO

Name :

Mr. Naresh Gupta

Designation :

Director

Address :

H No.162-A, Punjabi Bagh, Patiala, Punjab, India

Date of Birth/Age :

10.08.1962

Date of Appointment :

28.01.1998

Din No.:

00229708

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	U28939PB1998PTC021017	ESGI TOOLS PRIVATE LIMITED	Director	28/01/1998	28/01/1998	-	Active	NO
2	U45201HR2006PLC036045	ADD MORE PROMOTERS AND DEVELOPERS LIMITED	Director	14/02/2006	14/02/2006	-	Active	NO
3	U31102CH2001PLC024409	BANSAL GENERATIONS LIMITED	Additional director	01/04/2009	01/04/2009	27/03/2012	Active	NO

Name :

Mr. Sanjay Gupta

Designation :

Director

Address :

H No.85-S, Punjabi Bagh, Patiala, Punjab, India

Date of Birth/Age :

23.05.1974

Date of Appointment :

16.05.2001

Din No.:

01236069

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	U28939PB1998PTC021017	ESGI TOOLS PRIVATE LIMITED	Director	16/05/2001	16/05/2001	-	Active	NO
2	U27100CH2004PTC027306	SHUBHAM ALLOYS AND ROLLS PRIVATE LIMITED	Director	16/07/2004	16/07/2004	17/12/2010	Active	NO

Name :

Ms. Veena Gupta

Designation :

Director

Address :

H. No. 162-A, Punjabi Bagh, Patiala, Punjab, India

Experience :

18.05.1964

Date of Appointment :

10.11.2010

Din No.:

02924265

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

NOTE: SHAREHOLDING DETAILS FILE ATTACHED.

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier of Gear Hobs, Gear Shaper Cutters, Shaving Cutters, Milling Cutters, Master Gears, Bevel Gear Blades Cutting Tools, Broaches and Cutters, etc.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Oriental Bank of Commerce, New Anaj Mandi, Patiala - 147001, Punjab, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings
OBC Cash Credit	23.450	6.863
OBC Term Loan Against Machinery	9.889	11.560
OBC Car Loan	0.000	0.125
Axis Bank Car Loan	0.479	1.142
HSBC Mauritius Buyers Credit	19.911	19.911
TOTAL	53.729	39.601

Banking Relations :	--
Auditors :
Name :	Bhushan Gupta and Company Chartered Accountants
Address :	3-Ajit Nagar, Patiala-147001, Punjab, India
Tel No.:	91-175-2211768 / 2211328 [Office] 91-175-2213814 [Residential]
PAN No:	AAOPG4825H

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
83525	Equity Shares	Rs.100/- each	Rs.8.353 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	8.353	6.943
(b) Reserves & Surplus	13.145	5.035
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	12.500	13.910
Total Shareholders’ Funds (1) + (2)	33.998	25.888
(3) Non-Current Liabilities
(a) long-term borrowings	104.674	85.012
(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)	104.674	85.012
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	6.905	19.435
(c) Other current liabilities	0.000	0.000
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	6.905	19.435
TOTAL	145.577	130.335
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	54.108	56.439
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	1.900	1.770
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.417	0.417
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	56.425	58.626
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	19.965	16.243
(c) Trade receivables	0.000	0.000
(d) Cash and cash equivalents	2.109	1.756
(e) Short-term loans and advances	0.000	0.000
(f) Other current assets	67.078	53.710
Total Current Assets	89.152	71.709
TOTAL	145.577	130.335

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		6.822
2] Share Application Money		0.000
3] Reserves & Surplus		12.580
4] (Accumulated Losses)		(1.714)
NETWORTH		17.688
LOAN FUNDS
1] Secured Loans		27.161
2] Unsecured Loans		29.264
TOTAL BORROWING		56.425
DEFERRED TAX LIABILITIES		0.000
TOTAL		74.113
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		28.910
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.030
	Sundry Debtors	29.600
	Cash & Bank Balances	3.453
	Other Current Assets	0.000
	Loans & Advances	3.353
Total Current Assets		47.436
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.171
	Other Current Liabilities	1.062
	Provisions	0.000
Total Current Liabilities		2.233
Net Current Assets		45.203
MISCELLANEOUS EXPENSES		0.000
TOTAL		74.113

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income		NA	NA
		Other Income		NA	NA
		TOTAL	206.041	NA	NA
Less	EXPENSES
		TOTAL	194.011	NA	NA
	PROFIT / (LOSS) BEFORE TAX		12.030	9.835	5.447
Less	TAX		3.920	NA	0.000
	PROFIT / (LOSS) AFTER TAX		8.110	NA	5.447
	Earnings / (Loss) Per Share (Rs.)		97.10	--	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.94	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	8.37	7.65	7.13
Return on Investment (ROI) (PBT/Networth)		0.35	0.37	0.31
Debt Equity Ratio (Total Debt/Networth)		3.08	3.28	3.19
Current Ratio (Current Asset/Current Liability)		12.91	3.69	21.24

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 one year	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	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]	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	Yes

NOTE:

The registered office of the company has been shifted from H. No. HM 11, Phase I, Mohali, Punjab, India to the present address w.e.f. 01.07.2010.

FINANCIAL RESULTS:

During the year the company has earned profit before tax of Rs.12.030 Millions as compared to previous year’s net profit of Rs.9.835 Millions. The directors are hopeful to continue with same zeal in the times to come in the ensuing years.

Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings
Directors and Relatives	49.143	44.074
Others	10.802	1.337
TOTAL	59.945	45.411

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Creation of charge
Corporate identity number of the company	U28939PB1998PTC021017
Name of the company	ESGI TOOLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	D-58, Industrial Area, Phase – V, Mohali – 160061, Punjab, India
Type of charge	Immovable Property Movable Property [not being pledge]
Particular of charge holder	Oriental Bank of Commerce, New Anaj Mandi, Patiala - 147001, Punjab, India Email: bm0319@obc.co.in
Nature of description of the instrument creating or modifying the charge	Agreement of term loan
Date of instrument Creating the charge	24.12.2012
Amount secured by the charge	Rs.29.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest BR + 2.75% (present BR of the bank is 10.40% w.e.f. 16.08.2012) which works out at 13.15% at present with monthly rests Terms of Repayment Repayable in 60 monthly after a moratorium of 39 month and on payment of letter of comfort or April 2016, whichever is ear lier. However interest shall be paid as and when due during moratorium. Margin 25.64 Extent and Operation of the charge 100%
Short particulars of the property charged	Primary Security: Hypothecation of S400 GS shaving cutter grinding machine to be imported from Italy, with total cost of Rs. 39.000 millions including duties and taxes collateral security : 1. Industrial land and building, B-6, Focal Point, Patiala in the name of the company. 2. residential property, 162, Punjabi Bagh, Patiala in the name of Mr. Naresh Gupta and Veena Gupta

FIXED ASSETS:

• Plant and Machinery
• Building
• Computers

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.60.09
UK Pound	1	Rs.91.57
Euro	1	Rs.78.07

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		37

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.