MIRA INFORM REPORT

Report Date :

25.06.2013

IDENTIFICATION DETAILS

Name :	PATEL FURNACE AND FORGING PRIVATE LIMITED
Registered Office :	4/B, Pravasi Estate, Veshweshwar Nagar, Goregaon (East), Mumbai-400063, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	25.08.1984
Com. Reg. No.:	11-033841
Capital Investment / Paid-up Capital :	Rs.2.100 Millions
CIN No.: [Company Identification No.]	U05000MH1984PTC033841
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture of Shot Blasting Machines, Shot Peening Machine, Shot Blast Room Plant, Surface Preparation Machine, etc.
No. of Employees :	200 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

B (35)

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

Maximum Credit Limit :	USD 121000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an old and established company having a satisfactory track record. Trade relations are reported as fair. Business is active. Payment terms are usually correct. The company can be considered for 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. Nilesh
Designation :	Sales Manager
Contact No.:	91-9737061333
Date :	18.06.2013

LOCATIONS

Registered Office :	4/B, Pravasi Estate Veshweshwar Nagar, Goregaon East, Mumbai 400063, Maharashtra, India
Tel. No.:	91-22-28745525
Mobile No.:	91-9737061333 [Mr. Nilesh]
Fax No.:	91-22-28741296
E-Mail :	patelf@dataone.in
Area:	10000 sq. ft.
Location :	Owned
Factory :	A/2-510, Makarpura, G.I.D.C., Vadodara-390010, Gujarat, India
Tel. No.:	91-265-2644864 / 2640406
Fax No.:	91-265-2643663

DIRECTORS

AS ON 20.09.2012

Name :	Mrs. Nandini Pravin Patel
Designation :	Director
Address :	205, Poonam Apartment, Shivnagar Estate, Mumbai-400018, Maharashtra, India
Date of Birth/Age :	18.05.1946
Date of Appointment :	25.08.1985
DIN No.:	00406307

OTHER DIRECTORSHIP

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U05000MH1984PTC033841	Patel Furnace And Forging Private Limited	Director	25/08/1985	25/08/1985	-	Active	NO

Name :	Mr. Pravin Ambalal Patel
Designation :	Director
Address :	205, Poonam Apartment, Shivnagar Estate, Mumbai-400018, Maharashtra, India
Date of Birth/Age :	08.12.1939
Date of Appointment :	01.10.2006
DIN No.:	00406247

OTHER DIRECTORSHIP

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U05000MH1984PTC033841	Patel Furnace And Forging Private Limited	Director	01/10/2006	01/10/2006	-	Active	NO

Name :	Mr. Nipun Pravin Patel
Designation :	Director
Address :	205, Poonam Apartment, Shivnagar Estate, Mumbai-400018, Maharashtra, India
Date of Birth/Age :	08.05.1974
Date of Appointment :	21.04.1996
DIN No.:	00406279

OTHER DIRECTORSHIP

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U05000MH1984PTC033841	Patel Furnace And Forging Private Limited	Director	21/04/1996	21/04/1996	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Nilesh
Designation :	Sales Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 20.09.2012

Names of Shareholders	No. of Equity Shares	No. of Preferences Shares
Pravin Ambalal Patel	5070	480
Nandini Pravin Patel	9230	520
Nipun Pravin Patel	5600	--
Kinnari Pravin Patel	100
TOTAL	20000	1000

AS ON 20.09.2012

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

BUSINESS DETAILS

Line of Business :	Manufacture of Shot Blasting Machines, Shot Peening Machine, Shot Blast Room Plant, Surface Preparation Machine, etc.
Products :	· Aluminum Casting Deburring Machine · Blast Rooms Plants · Ceramic Paver Blasting Equipments · Cylinder Shot Blast Machines · Door Hook Type Shot Blasting Machine · Pipe Blasting Equipment · Railway Shot Blasting Equipment Boogie · Rod Bar Shot Blasting Machines · Shot Blasting · Shot Peening Machines · Steel Mill Equipments Special Machines · Strip Cleaning Machine · Strip Shot Blast Machines · Structure Cleaning Machine · Swing Table Shot Blasting Machines
Exports :
Products :	Shot Blasting Machine and Other Machines
Countries :	· Africa · Middle East · Bangalore · UAE · Sri Lanka · Pakistan · Australia
Terms :
Selling :	L/C and Cheque
Purchasing :	L/C and Cheque

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Shot Blasting Machine	Nos.	N.A.	125	117

GENERAL INFORMATION

Customers :

End Users and Others

No. of Employees :

200 [Approximately]

Bankers :

Bank of India, Alkapuri Branch, 45, Gautam Nagar Society, Race Course Circle, Vadodara-390007, Gujarat, India

Facilities :

Long Term Borrowings	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings	6.157	4.511
TOTAL	6.157	4.511
Short Term Borrowing	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Short Term Borrowing	9.740	7.217
TOTAL	9.740	7.217

Banking Relations :	--
Auditors :
Name :	V R Shah and Associates Chartered Accountant
Address :	12-Dhayber Colony, B/H Baroda High School, Near Polo Ground, Vadodara 390001, Gujarat, India
PAN No:	AFMPS4252H
Sister Concern :	· Nipun Alloy Industries · N K Industries · Pranan Engineering Industries

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
47500	Equity Shares	Rs.100/- each	Rs.4.750 Millions
2500	Preferences Shares	Rs.100/- each	Rs.0.250 Million
	TOTAL		Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000	Equity Shares	Rs.100/- each	Rs.2.000 Millions
1000	Preferences Shares	Rs.100/- each	Rs.0.100 Million
	TOTAL		Rs.2.100 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	2.100	2.100
(b) Reserves & Surplus	28.206	23.120
(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)	30.306	25.220
(3) Non-Current Liabilities
(a) long-term borrowings	6.157	4.511
(b) Deferred tax liabilities (Net)	0.857	0.881
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	7.014	5.392
(4) Current Liabilities
(a) Short term borrowings	9.740	7.217
(b) Trade payables	29.266	21.086
(c) Other current liabilities	13.163	11.256
(d) Short-term provisions	2.069	1.983
Total Current Liabilities (4)	54.238	41.542
TOTAL	91.558	72.154
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	11.463	12.386
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	4.594	0.151
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.061	0.061
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.055	0.045
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	16.173	12.643
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	12.791	9.001
(c) Trade receivables	12.929	5.647
(d) Cash and cash equivalents	41.609	39.605
(e) Short-term loans and advances	3.884	3.307
(f) Other current assets	4.172	1.951
Total Current Assets	75.385	59.511
TOTAL	91.558	72.154

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		2.100
2] Share Application Money		0.000
3] Reserves & Surplus		17.395
4] (Accumulated Losses)		0.000
NETWORTH		19.495
LOAN FUNDS
1] Secured Loans		10.158
2] Unsecured Loans		0.000
TOTAL BORROWING		10.158
DEFERRED TAX LIABILITIES		0.808
TOTAL		30.461
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.607
Capital work-in-progress		0.000
INVESTMENT		0.210
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6.925
	Sundry Debtors	5.824
	Cash & Bank Balances	30.429
	Other Current Assets	0.000
	Loans & Advances	4.875
Total Current Assets		48.053
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	26.086
	Provisions	3.323
Total Current Liabilities		29.409
Net Current Assets		18.644
MISCELLANEOUS EXPENSES		0.000
TOTAL		30.461

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL (A)	143.127	115.293	90.942
Less	EXPENSES
		Office Expenses
		Administrative Expenses	133.251	104.794	82.215
		Advertising Expenses
		TOTAL (B)	133.251	104.794	82.215
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		9.876	10.499	8.727
Less	FINANCIAL EXPENSES (D)		1.564	1.094	0.400
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.312	9.405	8.327
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.788	0.860	0.735
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		7.524	8.545	7.592
Less	TAX (H)		2.425	2.808	2.437
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		5.099	5.737	5.155
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		11.120	6.395	6.253
Less	APPROPRIATIONS
		Transfer to General Reserve	1.000	1.000	5.000
		Dividend and Tax on Dividend on Preferences/Equity Shares	0.013	0.013	0.013
	BALANCE CARRIED TO THE B/S		15.206	11.119	6.395
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings		17.259	9.070
	Earnings / (Loss) Per Share (Rs.)		242.81	273.19	245.47

Particulars	31.03.2013
Sales Turnover [Approximately]	180.000

Expected Sales (2013-14) : Rs.250.000 Millions.

The above information has been parted by Mr. Nilesh.

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.56	4.97	5.67
Return on Total Assets (PBT/Total Assets}	(%)	8.65	11.87	12.72
Return on Investment (ROI) (PBT/Networth)		0.25	0.34	0.38
Debt Equity Ratio (Total Debt/Networth)		0.52	0.47	0.52
Current Ratio (Current Asset/Current Liability)		1.39	1.43	1.63

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	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

FINANCIAL RESULTS:

The year was continued to be good for the company. Sales and other income has increase by 24.14% as compared the previous year. However, due to recession in domestic as well as export market, the sales prices of company’s product were remained under pressure. Moreover, the increase in steel price, a basic raw material has affected the profitability of the company. In spite of various odds, the management efforts for cost control in various cost centers have resulted in maintaining profitability of the company.

FUTURE PROSPECTS:

The buoyancy and upward trend witnessed in the forging industries continues unabated in the year too. The industry observed significant upswing in both domestic as well as international market. The company has been securing numbers of orders from various giant companies. Marketing team is well strengthen with all types of data bank. They are fetching good amount of business from market. The company has secured orders from Ordnance Factory (Defense) and expect of the order from COFMOW (Railway). Company is also looking for exports possibilities of marketing shot blasting machines in Middle East Countries, Sri Lanka, Dubai, etc. Considering good future market of products of the company and barring unforeseen circumstances, result of current year will be good.

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.59.73
UK Pound	1	Rs.91.82
Euro	1	Rs.78.23

INFORMATION DETAILS

Information Gathered by :	PLV
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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		35

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.