MIRA INFORM REPORT

Report Date :

08.03.2013

IDENTIFICATION DETAILS

Name :	SAFLOW PRODUCTS PRIVATE LIMITED
Registered Office :	F – 301, Remi Bizcourt, Plot No. 9, Shah Industrial Estate, No. 3, Off Veera Desai Road, Andheri (West), Mumbai – 400053, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	02.06.1979
Com. Reg. No.:	11-021363
Capital Investment / Paid-up Capital :	Rs. 2.150 millions
CIN No.: [Company Identification No.]	U26100MH1979PTC021363
TAN No.: [Tax Deduction & Collection Account No.]	MUMS35678G
PAN No.: [Permanent Account No.]	AAACS8396P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Marketing of Burning Lances, Manually Operated Slide Gate System, etc.
No. of Employees :	55 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 43000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appear continuous losses recorded by the company. However, trade relations are reported to be 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.

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

Name :	Mr. Pravin Shah
Designation :	Accounts Department
Contact No.:	91-22-66926445
Date :	07.03.2013

LOCATIONS

Registered Office :	F – 301, Remi Bizcourt, Plot No. 9, Shah Industrial Estate, No. 3, Off Veera Desai Road, Andheri (West), Mumbai – 400053, Maharashtra, India
Tel. No.:	91-22-66926445 - 8
Fax No.:	91-22-26732746
E-Mail :	saflow@bom3.vsnl.net.in saflow1@yahoo.com saflow2@yahoo.com
Website :	http://www.saflow.com
Location :	Rented
Factory :	J-83, M.I.D.C., Tarapur Industrial Area, Post Office Boisar, District Thane, Maharashtra, India

DIRECTORS

As on 29.09.2012

Name :	Mr. Kailash C. Aggarwal
Designation :	Director
Address :	Cottage No. 2, Nazir Wadi, Juhu Beach, Santacruz (West), Mumbai – 400 049, Maharashtra, India
Date of Birth/Age :	02.09.1936
Date of Appointment :	02.06.1982
DIN No.:	00321793
Name :	Mr. Harish Kailash Aggarwal
Designation :	Director
Address :	Cottage No. 2, Nazir Wadi, Juhu Beach, Santacruz (West), Mumbai – 400 049, Maharashtra, India
Date of Birth/Age :	29.07.1965
Date of Appointment :	01.04.1997
DIN No.:	00321879

KEY EXECUTIVES

Name :	Mr. Pravin Shah
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Kailash C. Aggarwal	2180
Shardadevi K. Aggarwal	1500
Harish K. Aggarwal	6660
Sanjay K. Aggarwal	4980
Kailash Aggarwal Sons and HUF	3640
Sanjay Aggarwal HUF	1710
Savita S. Aggarwal	400
Avani H. Aggarwal	430
TOTAL	21500

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 :

Manufacturing and Marketing of Burning Lances, Manually Operated Slide Gate System, etc.

Products :

ITC Code	Product Descriptions
730690	Ceramic Coated and Burning Lance
--	Refractory Monolithics

Imports :

Products :

Raw Materials

Countries :

· Italy

· China

Terms :

Selling :

Cash / Credit

Purchasing :

Cash / Credit

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

55 (Approximately)

Bankers :

· State Bank of Mysore, Corporate Branch, 224, Mital Court, C Wing, Nariman Point, Mumbai – 400 021, Maharashtra, India [Tel. No.: 91-22-22790505]

· HDFC Bank Limited

· IClCI Bank Limited

Facilities :

Secured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
Other loans and advances
Loan from State Bank of Mysore
· Cash Credit	2.526	0.837
· Preshipment Credit (Secured by first legal mortgage of land and building and hypothecation of present and future plant and machinery and other fixed movable assets and hypothecation of stock and book debts and guaranteed by directors)	2.017	1.181
TATA Capital Loan (Against Vehicle)	0.465	0.625
HDFC Car Loan (Against Vehicle)	0.000	0.145
IClCl Bank Loan (Against Vehicle)	0.408	1.039
Total	5.416	3.827

Banking Relations :	--
Auditors :
Name :	Kamal Anil Kapadia and Company Chartered Accountants
Address :	817, Bombay Market Apartment, Tardeo Road, Mumbai – 400 034, Maharashtra, India
PAN No.:	AEOPK6110M

CAPITAL STRUCTURE

As on 29.09.2012

Authorized Capital:

No. of Shares	Type	Value	Amount
30000	Equity Shares	Rs. 100/- each	Rs. 3.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
21500	Equity Shares	Rs. 100/- each	Rs. 2.150 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		2.150	2.150	2.150
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		8.556	9.774	9.871
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		10.706	11.924	12.021
LOAN FUNDS
1] Secured Loans		5.416	3.827	7.890
2] Unsecured Loans		0.878	1.078	0.893
TOTAL BORROWING		6.294	4.905	8.783
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		17.000	16.829	20.804
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.632	9.692	9.764
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		2.700	4.773	0.246
DEFERRED TAX ASSETS		0.170	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	8.681	8.336	11.570
	Sundry Debtors	10.602	9.659	11.993
	Cash & Bank Balances	2.312	4.220	4.118
	Other Current Assets	0.075	0.000	0.000
	Loans & Advances	1.886	2.160	2.612
Total Current Assets		23.556	24.375	30.293
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	10.214	18.780	16.250
	Other Current Liabilities	3.926	2.515	2.288
	Provisions	0.918	0.716	0.961
Total Current Liabilities		15.058	22.011	19.499
Net Current Assets		8.498	2.364	10.794
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		17.000	16.829	20.804

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2877.300 (Approximately)	65.645	56.238
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	81.402	75.141
	PROFIT/(LOSS) BEFORE TAX		NA	0.138	(0.451)
Less	TAX		NA	0.235	(1.072)
	PROFIT/(LOSS) AFTER TAX		NA	(0.097)	(0.621)
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	6.329	NA	NA
	TOTAL EARNINGS		6.329	NA	NA
	Earnings/(Loss) Per Share (Rs.)		NA	(4.53)	(28.90)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Net Profit Margin (PBT/Sales)	(%)	NA	0.21	(0.80)
Return on Total Assets (PBT/Total Assets}	(%)	NA	0.40	(1.12)
Return on Investment (ROI) (PBT/Networth)		NA	0.01	(0.04)
Debt Equity Ratio (Total Debt/Networth)		0.59	0.41	0.73
Current Ratio (Current Asset/Current Liability)		1.56	1.10	1.55

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Sundry Creditors	10.214	18.780	16.250
TOTAL	10.214	18.780	16.250

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	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 two 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	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]	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

UNSECURED LOAN:

(Rs. in Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
Other loans
· from shareholders	0.878	0.878
· from others	0.000	0.200
·
TOTAL	0.878	1.078

FIXED ASSETS:

· Leasehold land

· Factory Shed

· Office Equipment

· Plant and Machinery

· Furniture and Fixtures

· Office Equipments

· 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.54.74
UK Pound	1	Rs.82.14
Euro	1	Rs.71.13

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	NID

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
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	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.