MIRA INFORM REPORT

Report Date :

08.03.2013

IDENTIFICATION DETAILS

Name :	SINTERCOM INDIA PRIVATE LIMITED (w.e.f. 26.04.2012)
Formerly Known As :	MAXTECH SINTERED PRODUCT PRIVATE LIMITED
Registered Office :	Gat No.127, At Post Mangru, Taluka Maval (Talegaon Dabhade), Pune – 410507, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	22.02.2007
Com. Reg. No.:	11-129627
Capital Investment / Paid-up Capital :	Rs.191.868 Millions
CIN No.: [Company Identification No.]	U29299PN2007PTC129627
PAN No.: [Permanent Account No.]	AAFCM0090E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Auto Parts
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 1800000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company is continuously incurring losses from its operations. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	LETTER OF CREDIT : CRISIL A4 (DOWNGRADED FROM A4+)
Rating Explanation	Minimal degree of safety it carry very high credit risk
Date	15.02.2013

Rating Agency Name	CRISIL
Rating	CASH CREDIT : CRISIL B+ (DOWNGRADED FROM BB-)
Rating Explanation	High risk of default
Date	15.02.2013

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 DECLINED BY

Name :	Mr. Bhatawadekar
Designation :	Finance Manager
Contact No.:	91-211-4661200
Date :	06.03.2013

LOCATIONS

Registered Office :	Gat No.127, At Post Mangru, Taluka Maval (Talegaon Dabhade), Pune – 410507, Maharashtra, India
Tel. No.:	91-211-4661200
Fax No.:	91-211-4661202
E-Mail :	pbhatawadekar@sintercom.co.in

DIRECTORS

As on 28.09.2012

Name :	Mr. Neeraj Bajaj
Designation :	Director
Address :	House No.559, Sector 16A, Faridabad – 121002, Haryana, India
Date of Birth/Age :	17.09.1969
Date of Appointment :	05.06.2012
DIN No.:	00035778
Name :	Mr. Hardeep Singh Banga
Designation :	Director
Address :	1189, Sector 15, Faridabad – 121007, Haryana, India
Date of Birth/Age :	29.08.1964
Date of Appointment :	22.01.2008
DIN No.:	00393643
Name :	Mr. Jignesh Vasantrai Raval
Designation :	Managing Director
Address :	A/802, Mantri Lawns, Anand Park, Aundh, Pune – 411007, Maharashtra, India
Date of Birth/Age :	06.02.1970
Qualification :	B.E.
Experience :	17 Years
Date of Appointment :	23.06.2007
PAN No.:	AAQPR5876D
DIN No.:	01591000
Name :	Mr. Michael Anton Karl Niedersuss
Designation :	Director
Address :	Alois-Auer Strasse 14A, Weis, Austria 4600
Date of Birth/Age :	03.01.1971
Date of Appointment :	20.01.2012
DIN No.:	05174583
Name :	Mr. Markus Hofer
Designation :	Director
Address :	Hofmuehlgasse 19/24, Vienna, Austria 1060
Date of Birth/Age :	26.09.1971
Date of Appointment :	20.01.2012
DIN No.:	05177562

KEY EXECUTIVES

Name :	Mr. Bhatawadekar
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2012

Names of Shareholders	No. of Shares
BRN Industries Limited, Mauritius	9552700
Jignesh Vasantrai Raval	1115000
Maurill Industries Limited, Mauritius	2498787
Jalsagar Dealers Private Limited, India	1031250
Miba Sinter Holdings GmbH and Co Kg	4989085
Total	19186822

Equity Share Break up (Percentage of Total Equity)

As on 28.09.2012

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	88.81
Bodies corporate	5.38
Directors or relatives of directors	5.81
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Auto Parts.

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

· Oriental Bank of Commerce, 917 - 20/20A, OBC Tower, Fergusson College Road, Pune – 411004, Maharashtra, India

· Oriental Bank of Commerce, F. C. Road Branch, Pune - 411005, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term Loans from Banks (Hypothecation of plant and Machinery of the company and mortgage of factory Land and Building.)	134.870	166.113
Working capital loans from banks (Hypothecation of Inventories, Book debts and receivables.)	189.942	150.633
Total	324.812	316.746

Banking Relations :	--
Auditors :
Name :	Kishor B. Phadke and Company Chartered Accountants
Address :	Office No. 1 and 2, Lunawat Court, Hotel Shiv Sagar, Lane, Off. Jangali Maharaj Road, Shivaji Nagar, Pune-411004, Maharashtra, India
PAN No.:	ABQPP0552P
Associates :	· Miba Sinter Slovakia · Victora Stock-Invest Private Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
19186822	Equity Shares	Rs.10/- each	Rs.191.868 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		191.868	191.868	81.287
2] Share Application Money		0.000	0.000	36.927
3] Reserves & Surplus		260.135	270.669	131.025
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		452.003	462.537	249.239
LOAN FUNDS
1] Secured Loans		324.812	316.746	249.043
2] Unsecured Loans		27.010	0.200	2.350
TOTAL BORROWING		351.822	316.946	251.393
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		803.824	779.483	500.632
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		585.815	532.032	491.668
Capital work-in-progress		0.000	30.208	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		5.725	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	63.227	53.420	29.079
	Sundry Debtors	159.852	104.384	59.510
	Cash & Bank Balances	7.509	70.264	6.028
	Other Current Assets	92.633	80.053	32.307
	Loans & Advances	9.563	8.457	0.603
Total Current Assets		332.784	316.578	127.527
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	49.556	19.700	114.262
	Other Current Liabilities	65.077	76.459	1.043
	Provisions	5.867	3.176	3.258
Total Current Liabilities		120.500	99.335	118.563
Net Current Assets		212.284	217.243	8.964
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		803.824	779.483	500.632

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	356.000	276.000	123.515
		Other Income	20.720	24.130
		TOTAL (A)	376.720	300.130	123.515
Less	EXPENSES
		Material Consumption	136.440	123.370	103.244
		Employee Benefit Costs	32.200	24.400
		Other expenses	131.240	93.080
		TOTAL (B)	299.880	240.850	103.244
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		76.840	59.280	20.271
Less	FINANCIAL EXPENSES (D)		58.170	40.750	9.359
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		18.670	18.530	10.912
Less/ Add	DEPRECIATION/ AMORTISATION (F)		34.930	24.410	8.300
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(16.260)	(5.880)	2.612
Less	TAX (H)		(5.730)	0.000	0.300
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(10.530)	(5.880)	2.312
	EARNINGS IN FOREIGN CURRENCY		169.732	NA	101.929
	IMPORTS
		Raw Materials	NA	NA	1.853
		Capital Goods	NA	NA	13.820
	TOTAL IMPORTS		NA	NA	15.673
	Earnings / (Loss) Per Share (Rs.)		(0.55)	NA	0.28

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(2.80)	(1.96)	1.87
Net Profit Margin (PBT/Sales)	(%)	(4.57)	(2.13)	NA
Return on Total Assets (PBT/Total Assets}	(%)	(1.77)	(0.69)	0.42
Return on Investment (ROI) (PBT/Networth)		(0.04)	(0.01)	0.01
Debt Equity Ratio (Total Debt/Networth)		0.78	0.69	1.09
Current Ratio (Current Asset/Current Liability)		2.76	3.19	1.08

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011	31.03.2010
Sundry Creditors	49.556	19.700	114.262

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	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	Yes
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]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN 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

DETAILS OF UNSECURED LOAN

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011
Loans repayable on demand from others	27.010	0.200
Total	27.010	0.200

PERFORMANCE

The company recorded net sales of Rs.356.000 Millions as against Rs.276.000 Millions in the previous year. The company was able to record 29% growth in the net sales but the profitability was affected severely. The company reported a net loss of Rs.16.250 Million before tax.

This loss was mainly on account of account of depreciation due to the underutilization of the capacity as most of the time was utilized on development of new components which are under validation at customer end. However, since February 2012, most of these parts have received approval from customer and the supplies have commenced. Also, the profitability of the company was stressed during the year due to the increase in the interest rates by the banks. During the year, the interest rates increased by 300 basis points. Further, the high depreciation in the value of rupee lead to increase in the prices of powders which is the basic raw material. However, the company could not pass on this impact to the customers fully and was passed on from last quarter of FY 2011-12.

During the year, the domestic sales have increased considerably as compared to the previous year. This is mainly due to approvals received from OEM’s for the under development components. Also, the ratio of sintered sales has increased since the last quarter of FY 2011-12 which will help in improving the overall profitability

The name of the company has been changed from Maxtech Sintered Product Private Limited to Sintercom India Private Limited. The company has received the approval from the Registrar of Companies on 26th April 2012.

FUTURE OUTLOOK

With inflation showing a declining trend and with the expected further reduction in the interest rates there should be an overall buoyancy and, the future growth prospects should be positive. The high growth rates achieved by the Automotive Industry in March 2012 are expected to continue, at least with some moderations. As stated earlier, the automotive industry is estimated on an average to have a double digit growth annually in next five years. The rapidly increasing middle class with higher disposable incomes and an appetite for aspirational life styles would lead to higher demand, where technologically superior products would be more sought after than cheaper alternatives.

Big automobile giants like Maruti Suzuki, Daimler, Bajaj have awarded business to us.

Looking at the overall feedback from customers the directors are confident of achieving substantial increase in the turnover of the company in the near future. Same can be seen from the graph below.

Breakup of the export sales and domestic sales for the projected sales are given as under. The graph clearly indicates increase in the demand from the domestic customers. The focus of the company going forward is to support the domestic OEM’s by providing high end sintered applications with the support of the MIBA technology.

FIXED ASSETS:

· Land and Buildings

· Plant and equipment

· Factory equipments

· Furniture and fixtures

· Vehicles

· Office Equipment

· Computer Equipments

· Leasehold Improvements

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 :	PDT
Report Prepared by :	BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--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	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		26

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.