MIRA INFORM REPORT

Report Date :

23.07.2013

Tel. No.:

91-79-2646 9609

IDENTIFICATION DETAILS

Name :	VARDHMAN STAMPINGS PRIVATE LIMITED
Registered Office :	S-2, Murlidhar Complex, Near Snehkunj Bus Stop, S M Road, Ambawadi, Ahmedabad – 380 015, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.04.1986
Com. Reg. No.:	04-008612
Capital Investment / Paid-up Capital :	Rs. 30.000 Millions
CIN No.: [Company Identification No.]	U51909GJ1986PTC008612
TAN No.: [Tax Deduction & Collection Account No.]	AHMV02077F
PAN No.: [Permanent Account No.]	AAACV7624G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Power Transformer Lamination.
No. of Employees :	125 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 620000
Status :	Satisfactory
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Management has failed to file the latest financials as on 2012. As per the available financial of 2011, the financial position of the company appears to be fine. However, trade relations are 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BBB+ (Long Term Rating)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	21.01.2013

Rating Agency Name	CRISIL
Rating	A2 (Short Term Rating)
Rating Explanation	Strong degree of safety and low credit risk.
Date	21.01.2013

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. Nakul Parikh
Designation :	Finance Manager
Contact No.:	91-79-26562689
Date :	22.07.2013

LOCATIONS

Registered Office :	S-2, Murlidhar Complex, Near Snehkunj Bus Stop, S M Road, Ambawadi, Ahmedabad – 380 015, Gujarat, India
Tel. No.:	91-79-26469609 / 2656 2689.
Fax No.:	91-79-26461108
E-Mail :	crgo@vspl.co.in vinod@vardhmanstampings.com
Website :	www.vspl.co.in
Area :	2500 sq.fts
Location :	Owned
Factory :	S N 132/C, Budasan Village, Irana Road, Via Kalol, Post Karan Nagar, District Mehsana – 382 721, Gujarat, India
Tel. No.:	91-2764-277866 – 867
Fax No.:	91-2764-277445

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Vinod Chinubhai Shah
Designation :	Director
Address :	19, Tapovan Society, Nehru Nagar, Ambawadi, Ahmedabad-380015, Gujarat, India
Date of Birth/Age :	09.04.1986
Date of Appointment :	09.04.1986
DIN No.:	01836654
Name :	Mr. Dipakkumar Chinubhai Shah
Designation :	Director
Address :	34, Mithia Scoiety, Ambawadi, Ahmedabad-380005, Gujarat, India
Date of Birth/Age :	03.11.1957
Date of Appointment :	01.04.2006
DIN No.:	01836659
Name :	Mr. Prashant Kamleshbhai Shah
Designation :	Director
Address :	257, Manekbag Society, Ellisbridge, Ambawadi, Ahmedabad-380015, Gujarat, India
Date of Birth/Age :	07.03.1977
Date of Appointment :	01.04.2006
DIN No.:	00233808

KEY EXECUTIVES

Name :	Mr. Nakul Parikh
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Vinodbhai C. Shah	150000
Pathik Vinodbhai Shah	200000
Krutarth V. Shah	200000
Ranjanben V. Shah	300000
Vinod C. Shah HUF 3	50000
Vinod C. Shah HUF	50000
Vinod C. Shah HUF	50000
Kamleshbhai C. Shah	150000
Parthiv K. Shah	200000
Prashant K. Shah	200000
Bhartiben K. Shah	300000
Kamleshbhai C. Shah HUF	50000
Kamleshbhai C. Shah HUF	50000
Kamleshbhai C. Shah HUF	50000
Dipakbhai C. Shah	150000
Hardik Dipakbhai Shah	200000
Samkit Dipakbhai Shah	200000
Ninaben D. Shah	300000
Dipak C. Shah HUF	50000
Dipak C. Shah HUF	50000
Dipak C. Shah HUF	50000
TOTAL	3000000

AS ON 30.09.2011

Equity Shares Break Up	Percentage of Holding
Directors or relatives of Directors	100.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Power Transformer Lamination.

Products :

Item Code No. (ITC Code)	Product Description
85049010	Transformer Lamination / Cut Core Made of Silicon electrical Steel

Exports :

Countries :

· Middle East Countries

· Africa

· North East Africa

Imports :

Products :

Raw Materials

Countries :

· USA

· Japan

· Korea

· Russia

· Germany

· UK

· France

· Brazil

Terms :

Selling :

Cash, Credit

Purchasing :

Cash, Credit

PRODUCTION STATUS (AS ON : 31.03.2010)

Particulars	Unit	Actual Production
CRGO Wound Core (Part of Transformer)	Kgs	59535.777
Electrical Lamination (Transformer Part Core)	Kgs	181591.300
CRGO Coil L 600 (Slit Coils)	Kgs	1671397.180
CRGO Stack / Assembly (Part of Induction Furnace)	Kgs	9348.000

GENERAL INFORMATION

Customers :

Retailers

No. of Employees :

125 (Approximately)

Bankers :

· Bank of Baroda, S M Road, Ambawadi, Ahmedabad-380006, Gujarat, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Rupee term loans secured
Rupee term loans banks secured	95.983	43.641
Working capital loans secured
Working capital loans banks secured	0.000	39.062
Deposits secured	9.306	29.499
TOTAL	105.289	112.202

Banking Relations :	--
Auditors :
Name :	Mukesh M Shah and Company Chartered Accountants
Address :	1^st Floor, H K house, Ashram Road, Ahmedabad – 380 009, Gujarat, India
PAN No.:	AAIFM0810A
Sister Concern :	· SPI Industries Private Limited · Nauka Trans Core · Veer Steel Processor

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs. 30.000 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		30.000	30.000	30.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		125.039	96.457	61.319
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		155.039	126.457	91.319
LOAN FUNDS
1] Secured Loans		105.289	112.202	90.698
2] Unsecured Loans		123.893	62.613	86.000
TOTAL BORROWING		229.182	174.815	176.698
DEFERRED TAX LIABILITIES		2.513	3.032	1.074
TOTAL		386.734	304.304	269.091
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		93.243	76.945	35.958
Capital work-in-progress		8.273	2.484	0.000
INVESTMENT		0.001	0.001	0.001
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	168.016	201.805	139.355
	Sundry Debtors	246.550	152.689	231.963
	Cash & Bank Balances	110.685	108.483	46.471
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	39.883	63.418	31.899
Total Current Assets		565.134	526.395	449.688
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	264.922	282.049	210.151
	Other Current Liabilities	4.413	4.270	4.650
	Provisions	10.582	15.202	1.755
Total Current Liabilities		279.917	301.521	216.556
Net Current Assets		285.217	224.874	233.132
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		386.734	304.304	269.091

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1275.467	1053.328	1130.711
		Other Income		15.139	17.063
		TOTAL (A)	1275.467	1068.467	1147.774
Less	EXPENSES
		Consumption of Material and Finished Goods	1217.914	922.816	1015.359
		Manufacturing Expenses		16.893	13.020
		Administrative Expenses		35.659	66.137
		TOTAL (B)	1217.914	975.368	1094.516
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		[Including Financial	93.099	53.258
			Expenses]
Less	FINANCIAL EXPENSES (D)			26.199	23.329
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		57.553	66.900	29.929
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.729	7.875	4.563
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		45.824	59.025	25.366
Less	TAX (H)		15.499	22.138	8.984
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		30.325	36.887	16.382
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		25.997	10.859	8.732
	APPROPRIATIONS
		Transfer to General Reserve	20.000	20.000	12.500
		Dividend	NA	1.500	1.500
		Tax on Dividend	NA	0.249	0.255
	BALANCE CARRIED TO THE B/S		34.580	25.997	10.859
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	58.277	56.663	223.029
	TOTAL EARNINGS		58.277	56.663	223.029
	IMPORTS
		Raw Materials	NA	840.049	685.492
		Capital Goods	NA	40.432	5.452
	TOTAL IMPORTS		NA	880.481	690.944
	Earnings / (Loss) Per Share (Rs.)		10.11	12.30	5.46

Particulars	31.03.2013	31.03.2012
Sales Turnover (Approximately)	1405.300	1430.000

Expected Sales (2013-2014) : Rs. 1400.000 Millions

The above information has been parted by Mr. Nakul Parikh.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.38	3.45	1.43
Net Profit Margin (PBT/Sales)	(%)	NA	5.60	2.24
Return on Total Assets (PBT/Total Assets}	(%)	6.96	9.78	5.22
Return on Investment (ROI) (PBT/Networth)		0.30	0.47	0.28
Debt Equity Ratio (Total Debt /Networth)		1.48	1.38	1.93
Current Ratio (Current Asset/Current Liability)		2.02	1.75	2.08

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 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	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	Yes

CURRENT MATURITIES OF LONG TERM DEBT

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Current Maturities of Long Term Debt	NA	NA	NA
TOTAL	NA	NA	NA

Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Loans directors unsecured	74.469	44.379
Other debt unsecured	49.424	18.234
TOTAL	123.893	62.613

REVIEW OF BUSINESS

The turnover and registering profit after tax of Rs. 30.325 Millions which was made possible through the inserting capital equipment last year and better production planning Directors are exploring various other opportunities to further improve the working result during the current year.

FORM 8

Corporate identity number of the company	U51909GJ1986PTC008612
Name of the company	VARDHMAN STAMPINGS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	S-2, Murlidhar Complex, Near Snehkunj Bus Stop, S M Road, Ambawadi, Ahmedabad – 380 015, Gujarat, India
This form is for	Modification of charge
Charge identification number of the charge to be modified	90104448
Type of charge	· Book debts · Movable property (not being pledge) · Others
Particular of charge holder	Bank of Baroda, S M Road, Ambawadi, Ahmedabad-380006, Gujarat, India
Nature of instrument creating charge	Supplemental Composite Instrument of Hypothecation of Goods, Book-Debts, Movable Machinery And Vehicles And Pledge of Government Securities, Shares, Documents of Title of Goods Others Securities For Movable Property
Date of instrument Creating the charge	21.04.2012
Amount secured by the charge	Rs. 900.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 3.75% over base rate i.e. 14.50 p.a.(including 0.50% additional for line of credit with monthly rests (present bank's rate being 10.75% p.a. Terms of repayment 12 Months and subject to annual review or demand. Margin Stock on RM, SIP, and FG-25%, BD-50%, BD/LC-NIL, CM on Inland/Import L/C-15% Extent and operation of the charge The amount of charge increased from original amount of Rs.700.000 Millions (out of total limit of Rs.860.000 Millions) to Rs. 900.000 Millions (out of total limit of Rs.1295.000 Millions) by way of cash credit limit upon hypothecation of stock cum book debts cum inland bills purchased cum inland/foreign letter a credit DP/DA (usance 180 days).
Short particulars of the property charged (Including location of the property)	The Whole of The Borrower's Stock, Both Present and Future All Stock of RM, WIP, SFG, FG of The Company. All Present and Future Book Debts of The Company All the tangible movable machinery and plat and crenes, boats and crafts and the vehicles of the borrower.
Particulars of the present modification	The amount of charge increased from original amount of Rs.700.000 Millions (out of total limit of Rs.860.000 Millions) to Rs. 900.000 Millions by way of cash credit limit upon hypothecation of stock cum book debts cum inland bills purchased cum inland/foreign letter a credit DP/DA (usance 180 days).

FIXED ASSETS

· Land

· Buildings

· Plant and Machinery

· Vehicles

· Furniture

· Office Equipments

· Electrical Installation

· Air Conditioners

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 records 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. 59.40
UK Pound	1	Rs. 90.73
Euro	1	Rs. 78.11

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
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	NO
--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		47

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.