MIRA INFORM REPORT

Report Date :

03.10.2013

IDENTIFICATION DETAILS

Name :	SUNSTAR PRECISION FORGE LIMITED
Registered Office :	278, Katra Pedan, Tilak Bazar, Khari Baoli, Delhi – 110006
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	27.09.2004
Com. Reg. No.:	55-129444
Capital Investment / Paid-up Capital :	Rs. 437.000 Millions
CIN No.: [Company Identification No.]	U28910DL2004PLC129444
TAN No.: [Tax Deduction & Collection Account No.]	DELS26626F
PAN No.: [Permanent Account No.]	AAICS4077L
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	The company is engaged in manufacturing of automobile components.
No. of Employees :	Not Available

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 2300000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profit of the company has sharply dipped. Reserves of the company appear to be low. However, trade relation are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing 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 – 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

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term loans : BB+
Rating Explanation	In adequate credit quality and high credit risk.
Date	August 2013.

Rating Agency Name	ICRA
Rating	Non fund based limits: A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	August 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.

LOCATIONS

Registered Office :	278, Katra Pedan, Tilak Bazar, Khari Baoli, Delhi – 110006, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	info@sunstarforge.com
Website :	http://www.sunstarforge.com
Factory :	Plot No. 12, Udyog Kendra, Ecotech III (Behind New Holland Tractors) Greater Noida - 201 306, Uttar Pradesh
Tel. No.:	91-120-6747070
Fax No.:	91-120-6747071/ 2350810
Email-Id:	sunstar@sunstarforge.com

DIRECTORS

As on: 15.06.2012

Name :	Mr. Mukesh Kumar Garg
Designation :	Director
Address :	C–1, Model Town [East], Ghaziabad – 201001, Uttar Pradesh, India
Date of Birth/Age :	30.09.1961
Qualification :	Commerce Graduate
Date of Appointment :	27.09.2004
PAN No.:	AAAPG2585Q
DIN No.:	00697445
Name :	Mr. Anuj Garg
Designation :	Director
Address :	C – I, Model Town [East], Ghaziabad – 201001, Uttar Pradesh, India
Date of Birth/Age :	20.02.1979
Qualification :	Graduate in Business Management
Date of Appointment :	27.09.2004
PAN No.:	AANPG4951F
DIN No.:	00370392
Name :	Mr. Radhe Shyam Goel
Designation :	Director
Address :	House No. 62, Sector – I, Rohtak – 124001, Haryana, India
Date of Birth/Age :	15.11.1942
Date of Appointment :	27.09.2004
DIN No.:	00370775
Name :	Mr. Ankur Garg
Designation :	Director
Address :	C – I, Model Town [East], Ghaziabad – 201001, Uttar Pradesh, India
Date of Birth/Age :	10.08.1979
Date of Appointment :	01.07.2008
DIN No.:	00245944
Name :	Mr. Raj Prakash Goel
Designation :	Whole-time director
Address :	A-102, Pearl Gateway Towers, Sector-44, Noida-201301, Uttar Pradesh, India
Date of Birth/Age :	05.05.1958
Date of Appointment :	27.09.2004
PAN No.:	ACVPG3190V
DIN No.:	00815756
Name :	Mr. Varun Garg
Designation :	Whole-time director
Address :	C – I, Model Town [East], Ghaziabad – 201001, Uttar Pradesh, India
Date of Birth/Age :	19.02.1984
Qualification :	Post Graduacte in Finance
Date of Appointment :	16.11.2006
PAN No.:	AHXPG1192P
DIN No.:	00245970
Name :	Mr. Pravesh Kumar Garg
Designation :	Director
Address :	House No.62, Sector-1, Rohtak, Haryana, India
Date of Birth/Age :	17.04.1968
Date of Appointment :	01.07.2008
DIN No.:	00245911

KEY EXECUTIVES

Name :	Mr. Bijendra Singh
Designation :	Secretary
Address :	Village : Dehtora, Agra-282007 Uttar Pradesh, India
Date of Birth/Age :	01.01.1971
Qualification :
Experience :
Date of Appointment :	07.05.2012
PAN No.:	AQMPS0577L

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 15.06.2012

Shareholders details file attached.

Equity Share Break up (Percentage of Total Equity)

As on: 15.06.2012

Category	Percentage
Bodies corporate	56.50
Directors or relatives of directors	37.10
Other top fifty shareholders	6.40
Total	100.00

BUSINESS DETAILS

Line of Business :

The company is engaged in manufacturing of automobile components.

Products :

ITC Code	Products or Services
8708	Parts and Accessories

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Syndicate Bank, I.P. Estate, New Delhi - 110002, Delhi, India
• The Hongkong and Shanghai Banking Corporation Limited, 25, Barakhamba Road, Birla tower, New Delhi - 110001, Delhi, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long term borrowings
Rupee term loans from banks	256.746	235.211
Loans and advance from related parties	11.078	98.069
Other loans and advance	0.000	0.130
Short term borrowings
Working capital loans from banks	227.918	139.148
Total	495.742	472.558

Banking Relations :	--
Auditors :
Name :	Gupta Rustagi and Aggarwal Chartered Accountants
Address :	FF-2 and 3, Surya Arcade, U-110, Shakarpur, Main Vikas Marg, Delhi – 110092, India
PAN No.:	AAHFG6555H

CAPITAL STRUCTURE

As on: 15.06.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
45000000	Equity Shares	Rs.10/- each	Rs. 450.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
43700000	Equity Shares	Rs.10/- each	Rs. 437.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	437.000	428.000
(b) Reserves & Surplus	138.243	30.561
(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)	575.243	458.561
(3) Non-Current Liabilities
(a) long-term borrowings	267.823	333.410
(b) Deferred tax liabilities (Net)	17.246	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.783	0.000
Total Non-current Liabilities (3)	285.852	333.410
(4) Current Liabilities
(a) Short term borrowings	227.919	139.148
(b) Trade payables	103.764	97.579
(c) Other current liabilities	58.857	52.945
(d) Short-term provisions	18.056	20.538
Total Current Liabilities (4)	408.596	310.210
TOTAL	1269.691	1102.181
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	702.053	603.845
(ii) Intangible Assets	2.602	4.662
(iii) Capital work-in-progress	3.850	2.774
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	16.209
(d) Long-term Loan and Advances	7.896	4.863
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	716.401	632.353
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	191.192	171.665
(c) Trade receivables	245.526	219.534
(d) Cash and cash equivalents	40.633	8.268
(e) Short-term loans and advances	75.939	70.361
(f) Other current assets	0.000	0.000
Total Current Assets	553.290	469.828
TOTAL	1269.691	1102.181

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		428.000
2] Share Application Money		0.000
3] Reserves & Surplus		112.000
4] (Accumulated Losses)		(188.476)
NETWORTH		351.524
LOAN FUNDS
1] Secured Loans		385.462
2] Unsecured Loans		85.916
TOTAL BORROWING		471.378
DEFERRED TAX LIABILITIES		0.000
TOTAL		822.902
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		577.074
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	127.796
	Sundry Debtors	119.765
	Cash & Bank Balances	39.215
	Other Current Assets	0.000
	Loans & Advances	43.559
Total Current Assets		330.335
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	89.057
	Other Current Liabilities	0.000
	Provisions	1.891
Total Current Liabilities		90.948
Net Current Assets		239.387
MISCELLANEOUS EXPENSES		6.441
TOTAL		822.902

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1011.608	768.405	403.323
		Other Income	7.191	1.634	13.555
		TOTAL (A)	1018.799	770.039	416.878
Less	EXPENSES
		Cost of material consumed	530.025	411.202
		Changes in inventories of finished goods, work-in-progress and stock in trade	(16.221)	(33.725)
		Employee benefit expenses	47.117	29.807
		Other expense	246.884	182.741
		TOTAL (B)	807.805	590.025	322.515
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		210.994	180.014	94.363
Less	FINANCIAL EXPENSES (D)		72.092	57.750	56.201
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		138.902	122.264	38.162
Less/ Add	DEPRECIATION/ AMORTISATION (F)		33.035	29.253	27.033
	PROFIT BEFORE TAX (E-F) (G)		105.867	93.011	11.129
Less	TAX (H)		34.185	(14.026)	0.000
	PROFIT AFTER TAX (G-H) (I)		71.682	107.037	11.129
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(81.439)	(188.476)	(199.605)
	BALANCE CARRIED TO THE B/S		(9.757)	(81.439)	(188.476)
	EARNINGS IN FOREIGN CURRENCY		169.483	210.947	NA
	IMPORTS		53.054	17.165	NA
	Earnings Per Share (Rs.)		24.00	21.00	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	7.04	13.91	2.66
Net Profit Margin (PBT/Sales)	(%)	10.47	12.11	2.76
Return on Total Assets (PBT/Total Assets}	(%)	8.36	8.59	1.22
Return on Investment (ROI) (PBT/Networth)		0.19	0.21	0.03
Debt Equity Ratio (Total Debt/Networth)		0.86	1.03	1.35
Current Ratio (Current Asset/Current Liability)		1.36	1.51	3.63

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	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	No
10]	Designation of contact person	No
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	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	No

Note:

The Registered Office of the company has been shifted from 170 / 1^st Floor, Bhera Enclave, Delhi – 110087, India to the present address w.e.f. 01.05.2006

PERFORMANCE

This was the Eighth year of operation of the company after 'Company Incorporation' and 'Commencement of Business'. The Company started commercial production on 1st February 2007.

This was the fifth complete year of commercial operations, production and sales. FY 2011-12 was a challenging year. The global economy, barely a year after recession, witnessed lower economic growth, resulting primarily from the Euro Zone Debt crises and high oil prices. Fuel prices have direct impact on Automobile Industry and Automobile Component Industry. The Directors are happy to inform that, even under bad economic climate, the company was able to achieve growth of 32% in Net Sales and Other Incomes as compared with previous year. The board is happy to inform that the company has earned profit before tax of Rs. 105.867 millions during the current financial year as against profit before tax of Rs. 93.011 millions during the previous financial year.

FUTURE PROSPECTS

For the last five years we have been supplying automobile components to our customers. We are getting repeat orders from existing customers. We are likely to fetch some new and potential customers for our products as marketing experts informed. Looking at future prospectus and growth potential, the company has invested Rs. 133.161 millions in Fixed Assets during the FY 2011-12, orders for sonic of the equipments arc placed and delivery are pending and negotiation for some of the equipments are in advance stage of placing the orders. With addition of new presses, the forging production capacity has gone up by 30 To 35 % In this competitive world market, the company is spending a lot on Scientific Research and development thru Development of dies etc for more and more components which will ultimately lead to indigenization in Indian Automobile Industry. The boards of directors expect far better results in years to come.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10382808	25/10/2012	100,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	25, BARAKHAMBA ROAD, BIRLA TOWER, NEW DELHI, DELHI  - 110001, INDIA	B60582558
2	10105106	30/11/2012 *	748,000,000.00	SYNDICATE BANK	I.P. ESTATE, NEW DELHI, DELHI - 110002, INDIA	B64704869
3	10020689	30/11/2012 *	748,000,000.00	SYNDICATE BANK	I.P. ESTATE, NEW DELHI, DELHI - 110002, INDIA	B64704265
4	90369731	31/01/2006	77,961,397.00	SYNDICATE BANK	NEW DELHI, NEW DELHI, DELHI, INDIA	-

* Date of charge modification

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. 62.36
UK Pound	1	Rs. 101.20
Euro	1	Rs. 84.53

INFORMATION DETAILS

Report Prepared by :

DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--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		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.