MIRA INFORM REPORT

Report Date :

08.03.2013

IDENTIFICATION DETAILS

Name :	BRUSH INDIA MFG PRIVATE LIMITED
Registered Office :	31, Tirupati Estate, Near Mansa Masjid, Sarapur, Ahmedabad-380018, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	28.06.2006
Com. Reg. No.:	04-048585
Capital Investment / Paid-up Capital :	Rs.3.100 millions
CIN No.: [Company Identification No.]	U26960GJ2006PTC048585
TAN No.: [Tax Deduction & Collection Account No.]	AHMB03938E
PAN No.: [Permanent Account No.]	AACCB921F
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of Industrial Brushes
No. of Employees :	05 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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. Prakash
Designation :	Director
Contact No.:	91-079-22744110
Date :	15.02.2013

LOCATIONS

Registered Office / Factory :	31, Tirupati Estate, Near Mansa Masjid, Sarapur, Ahmedabad-380018, Gujarat, India
Tel. No.:	91-79-22744110 / 22749110 / 22743110
Mobile No.:	91-9824244110 / 982404110 / 9824144110 / 9824644412 (Mr. Kapil Prakash Sumariya)
Fax No.:	91-79-22745110
E-Mail :	info@indiabrush.com
Website :	www.indiabrush.com www.sweepingbrush.com
Area :	4500sq.fts
Location :	Owned

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Prakash Dolatram Sumariya

Designation :

Director

Address :

A-41, vijay Park, Gor No. Kuvo, Maninger (East), Ahmedabad-380008, Gujarat, India

Date of Birth/Age :

12.06.1956

Date of Appointment :

28.06.2006

DIN No.:

00133323

Name :

Mr. Kapil Prakash Sumariya

Designation :

Director

Address :

A-41, vijay Park, Gor No. Kuvo, Maninger (East), Ahmedabad-380008, Gujarat, India

Date of Birth/Age :

03.06.1984

Date of Appointment :

28.06.2006

DIN No.:

00133345

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	U26960GJ2006PTC048585	BRUSHINDIA MFG PRIVATE LIMITED	Director	28/06/2006	28/06/2006	-	Active	NO
2	U29267GJ2009PTC057062	NISSAN CLEAN INDIA PRIVATE LIMITED	Director	26/05/2009	26/05/2009	-	Active	NO

Name :

Mrs. Madhu Prakash Sumariya

Designation :

Director

Address :

A-41, vijay Park, Gor No. Kuvo, Maninger (East), Ahmedabad-380008, Gujarat, India

Date of Birth/Age :

01.10.1960

Date of Appointment :

28.06.2006

DIN No.:

00133357

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	U26960GJ2006PTC048585	BRUSHINDIA MFG PRIVATE LIMITED	Director	28/06/2006	28/06/2006	-	Active	NO
2	U29267GJ2009PTC057062	NISSAN CLEAN INDIA PRIVATE LIMITED	Director	26/05/2009	26/05/2009	-	Active	NO

SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Prakash Dolatram Sumariya	120000
Kapil Prakash Sumariya	57000
Madhu Prakash Sumariya	223000
Total	400000

AS ON 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Industrial Brushes
Products :	Textile Industry Brushes Sweeping Brushes Brush Rollers Strip Brushes Wire Brushes Automotive brushes Abrasive brushes Brush Roller for Paper Industry Textile – Stenter Brushes Bristle Material and Charecteristics Vehicle Washing Brushes Power Wire Brushes Stone Brushes Textile Peaching Brushes Floor Scrubbing Brushes Steel Industries Brush Segment Fruit / Vegetable Cleaning Company Infrastructure Staple Set Brushes
Exports :
Products :	Finish Goods
Countries :	· Sri Lanka · Dubai
Imports :
Products :	Raw Materials
Countries :	· Germany · Italy
Terms :
Selling :	Advanced
Purchasing :	Advanced

GENERAL INFORMATION

Suppliers :

National Brush Manufacturing Company, Mumbai

Customers :

Wholesalers and Retailers

• Arvind Mills Limited

No. of Employees :

05 (Approximately)

Bankers :

Bank of India, Bapunagar Branch, Sardar Patel Mall, “B” Wing, 1^st Floor, Near Diamond Mills, Bapunagar-Nikol Road, Ahmedabad-382350, Gujarat, India

Facilities :

SECURED LOAN	AS ON 31.03.2012 (RS. IN MILLIONS)	AS ON 31.03.2011 (RS. IN MILLIONS)
Term Loan From Scheduled bank (The above loan carries interest @15.50 p.a. The Loan is repayable in 84 Monthly installments of Rs.0.046 Millions Plus interest from the date of loan 01.03.2007. (The above loan is secured against Hypothecations of Machineries and other current assets, mortgage of factory land and building, personal guarantees	0.676	1.360
Bank of India Cash Credit A/c	0.000	0.977
Short Term Cash Credit facilities from a scheduled bank (Secured against hypothecation of present and future inventories and book debts of the Company and personal guarantee of directors. the same is re- payable on demand and carries interest @16% % p.a.)	0.946	0.000
Total	1.622	2.337
SECURED LOAN	AS ON 31.03.2012 (RS. IN MILLIONS)	AS ON 31.03.2011 (RS. IN MILLIONS)
From Directors	0.682	0.196
Total	0.682	0.196

Banking Relations :	---
Auditors :
Name :	S.C.K.Shah and Company Chartered Accountants
Address :	12 /A. 4^th Floor, K.B. Commercial Center, Near Dinbai Tower, Lal Darwaja, Khanpur, Ahmedabad – 380001, Gujarat, India
PAN.:	ACAPS7097M
Memberships :	PEPC (Plastic Export Promotion Council) PLEXPO

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs.10/- each	Rs.4.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs.10/- each	Rs.4.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		4.000	3.100	3.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1.256	1.175	0.948
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5.256	4.275	4.048
LOAN FUNDS
1] Secured Loans		1.622	2.337	2.530
2] Unsecured Loans		0.682	0.196	0.000
TOTAL BORROWING		2.304	2.533	2.530
DEFERRED TAX LIABILITIES		0.330	0.232	0.207
TOTAL		7.890	7.040	6.785
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.906	6.021	5.838
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.015	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2.242	1.271	1.032
	Sundry Debtors	3.726	2.935	2.532
	Cash & Bank Balances	0.168	0.002	0.008
	Other Current Assets	0.000	0.147	0.026
	Loans & Advances	0.041	0.682	0.005
Total Current Assets		6.177	5.037	3.603
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.662	3.623	2.303
	Other Current Liabilities	1.307	0.000	0.000
	Provisions	0.239	0.396	0.353
Total Current Liabilities		5.208	4.018	2.656
Net Current Assets		0.969	1.019	0.947
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		7.890	7.040	6.785

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	Turnover		13.190	16.622	13.425
Less	EXPENSES
		Office Expenses	NA	NA	11.967
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA	11.967
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		1.569	1.375	1.458
Less/ Add	DEPRECIATION/ AMORTISATION		1.117	1.044	1.059
	PROFIT BEFORE TAX (E-F)		0.452	0.331	0.399
Less	TAX		0.370	0.104	0.133
	PROFIT AFTER TAX		0.082	0.227	0.266

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.62	1.37	1.98
Return on Total Assets (PBT/Total Assets}	(%)	3.45	2.99	4.23
Return on Investment (ROI) (PBT/Networth)		0.08	0.08	0.08
Debt Equity Ratio (Debt/Networth)		0.44	0.59	0.62
Current Ratio (Current Asset/Current Liability)		1.18	1.25	1.35

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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	Yes
18]	Major customers	Yes
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	No
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

Form 8

Corporate identity number of the company	U26960GJ2006PTC048585
Name of the company	BRUSH INDIA MFG PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	31, Tirupati Estate, Near Mansa Masjid, Sarapur, Ahmedabad-380018, Gujarat, India
This form is for	Modification of Charge
Charge identification (ID) number of the charge to be modified	10042406
Type of charge	Book Debts Movable Property (not being pledge)
Particular of charge holder	Bank of India, Bapunagar Branch, Sardar Patel Mall, “B” Wing, 1^st Floor, Near Diamond Mills, Bapunagar-Nikol Road, Ahmedabad-382350, Gujarat, India zoahmedabad@bankofindia.co.in
Nature of instrument creating charge	Supplemental Deed of Hypothecation
Date of instrument Creating the charge	29.08.2008
Amount secured by the charge	Rs.3.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per Bank’s Sanction letter Terms of Repayment Cash Credit – on Demand Term Loan – 84 EMI of Rs.0.046 Million Margin 25% Extent and Operation of the Charge All the securities described in annexure attached herewith have been charged to the bank to secure its:- 1) Cash Credit (Stocks and Book-Debts) of Rs.1.00 Million 2) Term Loan of Rs.2.500 Millions Making aggregate limit of Rs.3.500 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	As per Annexure attached
Particulars of the present modification	By virtue of said modification, the charge originally created on 01.03.2007 is extended for additional CC (Hypothecation of stock and book debts) Limit of Rs.0.700 Million making aggregate limit of Rs.3.500 Millions (CC limit Rs.1.000 Million and Term loan Rs.2.500 Million)

Fixed Assets:

• Computer
• Fax
• Furniture
• Building
• Plant and Machinery
• Office Equipment
• Tools and Equipment
• Vehicles
• Store Equipments
• Dies and Pattern
• Car

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.54.74
UK Pound	1	Rs.82.14
Euro	1	Rs.71.12

INFORMATION DETAILS

Information Gathered by :	NYN
Report Prepared by :	SDA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.