MIRA INFORM REPORT

Report Date :

15.05.2013

IDENTIFICATION DETAILS

Name :	PARAS GEARS PRIVATE LIMITED
Formerly Known As :	PARAS GEARS
Registered Office :	122, Maheshwari Industrial Estate, Tavdipura, Shahibaug, Ahmedabad – 380004, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	31.07.1998
Com. Reg. No.:	04-034479
Capital Investment / Paid-up Capital :	Rs. 0.476 Million
CIN No.: [Company Identification No.]	U28999GJ1998PTC034479
TAN No.: [Tax Deduction & Collection Account No.]	AHMP00657G
PAN No.: [Permanent Account No.]	AABCP6611L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Textile Machinery and Spare Parts, Spinning and Weaving Units and Spare Parts etc.
No. of Employees :	10 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (18)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject was started as a proprietary concern in 1981 with the name “Paras Gears” and later in the year 1998 it got converted into Private Limited. It is having a moderate track record. The company recorded small scale of operation and incurred some loss. The external borrowing seems to be huge. However, business is active. Payments are slow. The company can be considered for business dealings on a safe and secured 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 – 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

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. Rahul Modi
Designation :	Director
Contact No.:	91-9925955004
Date :	13.05.2013

LOCATIONS

Registered Office/ Factory :	122, Maheshwari Industrial Estate, Tavdipura, Shahibaug, Ahmedabad – 380004, Gujarat, India
Tel. No.:	91-79-25621781/ 65251781
Mobile No.:	91-9925955004 (Mr. Rahul Modi)
Fax No.:	91-79-25621781
E-Mail :	paras_gears@yahoo.com jjchaudhari_ca@yahoo.com
Area :	10,000 Sq. ft.
Location :	Owned

DIRECTORS

AS ON 26.09.2012

Name :

Mrs. Varshaben Natvarlal Modi

Designation :

Director

Address :

303, Shantirath Apartment, 28 Patel Colony, Shahibaug, Ahmedabad – 380004, Gujarat, India

Date of Appointment :

31.07.1998

DIN No.:

00360756

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U28999GJ1998PTC034479	PARAS GEARS PRIVATE LIMITED	Director	31-07-98	31-07-98	Active	NO

Name :

Mr. Natvarlal Sonaji Modi

Designation :

Director

Address :

303, Shantirath Apartment, 28 Patel Colony, Shahibaug, Ahmedabad – 380004, Gujarat, India

Date of Appointment :

31.07.1998

DIN No.:

00360739

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U28999GJ1998PTC034479	PARAS GEARS PRIVATE LIMITED	Director	31-07-98	31-07-98	Active	NO

Name :

Mr. Rahul Natvarbhai Modi

Designation :

Director

Address :

303, Shantirath Apartment, 28 Patel Colony, Shahibaug, Ahmedabad – 380004, Gujarat, India

Date of Appointment :

16.09.2008

DIN No.:

02331410

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U28999GJ1998PTC034479	PARAS GEARS PRIVATE LIMITED	Director	16-09-08	16-09-08	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 26.09.2012

Names of Shareholders	No. of Shares
Varshaben Natvarlal Modi	23800
Natvarlal Sonaji Modi	23800
Total	47600

AS ON 26.09.2012

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

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Textile Machinery and Spare Parts, Spinning and Weaving Units and Spare Parts etc.

Products :

ITC Code	Product Descriptions
0124	Machinery Spare Parts

Exports :

Products :

Ø Engineering Products

Ø Textile Machinery

Ø Textile Spare Parts

Ø Spinning

Ø Weaving Units and Spare Parts

Ø Gears

Ø Industrial Automation Products

Ø Sensors

Ø Controllers

Ø Motion Devices, etc.

Countries :

Tanzania

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Suppliers :

Ø P.L. Textiles

Ø A.V. Texttles Industries

Ø Alpesh Industries

Ø Ambica Corporation

Ø Ambica Industries

Ø Amee Industries

Ø Chamunda Plastic Moulding Works

Ø Chirac Industries

Ø Control Systems

Ø Famous Fibre Gear

Ø Gurukrupa Engineering Works

Ø Girish Spring Works

Ø Golden Industries

Ø Harikrupa Industries

Ø Hariom Engineering Works

Ø High Tech Engineers

Ø J.B. Industries

Ø J.D. Tool Corporation

Ø Jaymataji Textiles

Ø Jignesh Industries

Customers :

Wholesalers, Retailers and End Users

Ø Krishna Enterprises

Ø Aseptic Technology Inc.

Ø Baimswara Syntex Limited

Ø Ashima Limited

Ø Bhasker Industries Limited

Ø Birla Cotsyn India Limited

Ø Chamunda Standard Mills

Ø Core Consultancy Services

Ø Creative Textile Mills Private Limited

Ø D N Sales Corporation

Ø Damodar Threades Limited

Ø Eshan Corporation

Ø Eskay Knit India Limited

Ø Fertichem Cotspin Limited

Ø Fitex Engineers

Ø G R Textiles Traders

Ø Gems Engineering Works

Ø H P Enterprise

Ø Hardik Engineer Works

Ø Harekrishna Machinetech Private Limited

No. of Employees :

10 (Approximately)

Bankers :

Ø HDFC Bank Limited, Chandlodia, Ahmedabad, Gujarat, India

Ø Bank of Baroda, Dudheshwar Road Branch, Chinibag Estate, Ahmedabad – 380004, Gujarat, India

Facilities :

Overdraft: Rs. 2.000 Million [HDFC Bank Limited]

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Bank of Baroda CC	0.308	1.254
Bank of Baroda FD	0.590	0.000
Total	0.898	1.254

Banking Relations :	--
Auditors :
Name :	J.J Chaudhari and Company Chartered Accountants
Address :	7 and 8, 3rd Floor Purneshwar Chambers, Opposite Dinesh Hall, Ashram Road, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-27546668/ 30020077
Mobile No.:	91-9825030611
E-Mail :	Jjchaudhari_ca@yahoo.com
Income-tax PAN of auditor or auditor's firm :	AAPPC4434K
Related Parties :	Ø D N Sales Corporation Ø Sangeeta Enterprises Ø Shiv Engineering Works Ø E. Sales Ø Hariom Industries Ø Hariom Engineering Works Ø Hariom Sales Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50,000	Equity Shares	Rs. 10/- each	Rs. 0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
47,600	Equity Shares	Rs. 10/- each	Rs. 0.476 Million

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		0.476	0.476	0.476
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.034	0.062	0.071
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		0.510	0.538	0.547
LOAN FUNDS
1] Secured Loans		0.898	1.254	0.000
2] Unsecured Loans		2.399	2.536	0.700
TOTAL BORROWING		3.297	3.790	0.700
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		3.807	4.328	1.247
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.195	0.223	0.236
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.113
DEFERRED TAX ASSETS		0.029	0.035	0.025
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.672	0.466	0.554
	Sundry Debtors	3.087	2.628	2.119
	Cash & Bank Balances	0.506	1.296	0.078
	Other Current Assets	0.000	0.000	0.116
	Loans & Advances	0.256	0.286	0.110
Total Current Assets		4.521	4.676	2.977
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.879	0.527	2.051
	Other Current Liabilities	0.044	0.056	0.000
	Provisions	0.015	0.023	0.053
Total Current Liabilities		0.938	0.606	2.104
Net Current Assets		3.583	4.070	0.873
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3.807	4.328	1.247

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL	5.642	4.834	5.522
	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	5.740	4.846	5.514
	PROFIT/ (LOSS) BEFORE TAX		(0.022)	(0.012)	0.008
Less	TAX		0.050	(0.003)	0.008
	PROFIT/ (LOSS) AFTER TAX		(0.028)	(0.009)	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.062	0.071	0.071
	BALANCE CARRIED TO THE B/S		0.037	0.062	0.071
	Earnings/ (Loss) Per Share (Rs.)		(0.59)	(0.19)	(0.00)

Particulars	31.03.2013
Sales Turnover (Approximately)	8.000

Expected Sales (2013-2014): Rs. 13.800 Millions

The above information has been parted by Mr. Rahul Modi [Director]

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(0.50)	(0.19)	(0.00)
Return on Total Assets (PBT/Total Assets}	(%)	(0.47)	(0.24)	(0.25)
Return on Investment (ROI) (PBT/Networth)		(0.04)	(0.02)	(0.01)
Debt Equity Ratio (Total Debt/Networth)		6.46	7.04	1.28
Current Ratio (Current Asset/Current Liability)		4.82	7.72	1.41

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	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	--
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	No
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 LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Natvarlal Sonaji Modi	0.881	0.697
Rahul Natvarbhai Modi	0.659	0.810
Varshaben Natvarlal Modi	0.709	0.879
From Others	0.150	0.150
Total	2.399	2.536

TRADE REFERENCES:

Ø P.L. Textiles

Ø Krishna Enterprises

FIXED ASSETS:

Ø Electronic Weight Scale

Ø Mobile

Ø Plant and Machinery

Ø Furniture

Ø Air Conditioner

Ø 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. 54.63
UK Pound	1	Rs. 83.67
Euro	1	Rs. 71.02

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		18

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.