MIRA INFORM REPORT

Report Date :

15.10.2013

IDENTIFICATION DETAILS

Name :	VIJAY SABRE SAFETY PRIVATE LIMITED
Registered Office :	35, Chandivali Village, Off Sakivihar Road, Andheri [East], Mumbai – 400072, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	15.03.1988
Com. Reg. No.:	11-046552
Capital Investment / Paid-up Capital :	Rs. 3.000 Millions
CIN No.: [Company Identification No.]	U29193MH1988PTC046552
TAN No.: [Tax Deduction & Collection Account No.]	MUMV10012C
PAN No.: [Permanent Account No.]	AAACV4942P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Breathing Equipments, Safety Emergency and Rescue Equipments.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 659000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Rating takes into account stretched liquidity and consistently high utilization of bank limits. Sales of the company have remained stagnant in last two years due to high competitive intensity in the industry. However, trade relations are reported to be fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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

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	Fund based limit : Cash Credit B+
Rating Explanation	Risk prone credit quality and very high credit risk
Date	January 2013

Rating Agency Name	ICRA
Rating	Non Fund based limit : Line of Credit A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	January 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 PARTED BY

Name :	Mr. Prasad Prabhu
Designation :	Accounts Manager
Contact No.:	91-22-28474045
Date :	14.10.2013

LOCATIONS

Registered/ Head Office :	35, Chandivali Village, Off Sakivihar Road, Andheri [East], Mumbai – 400072, Maharashtra, India
Tel. No.:	91-22-28474045/ 28478780/ 28478785
Fax No.:	91-22-28470021
E-Mail :	vijaysabre@vsnl.net
Website :	http://www.vijaysabresafety.com
Factory 1 :	Plot No.11, Survey No. 46/1 P, Daman Ganga Industrial Estate, Athal, Silvassa - Bhilad Road, Silvassa – 396230, Dadra and Nagar Haveli, India
Tel. No.:	91-260-2632429/ 2644072
Factory 2 :	231-233, GIDC Umbergaon, District Valsad – 396171, Gujarat
Tel. No.:	91-260-2561373/ 2561374/ 2561375/ 3126514
Zonal Offices :	Located at: · New Delhi Bangalore Kolkata

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Dharmesh Jitendra Salot
Designation :	Director
Address :	18, Navyug CHS, N. S. Road No.3, Juhu Scheme, Vile Parle (West), Mumbai - 400056, Maharashtra, India
Date of Birth/Age :	29.03.1970
Date of Appointment :	19.09.2003
DIN No.:	00030272
Name :	Mr. Jitendra Ratilal Salot
Designation :	Director
Address :	66, Nirmal Building, R. S. Road No.6, Juhu Scheme, Vile Parle (West), Mumbai - 400056, Maharashtra, India
Date of Birth/Age :	08.10.1943
Date of Appointment :	15.08.1988
DIN No.:	00030336
Name :	Mr. Tilak Raj Bhanot
Designation :	Director
Address :	D-302, Powai Vihar Complex, Powai, Sakinaka, Mumbai - 400076, Maharashtra, India
Date of Birth/Age :	10.09.1944
Date of Appointment :	15.09.2003
DIN No.:	00040584

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Jitendra R Salot	29340
Jitednra R Salot (HUF)	12225
Yashomati J Salot	19560
Dharmesh J Salot	9780
Neepa D Salot	9780
Dharmesh J Salot (HUF)	7335
Shreya D Dalot	4890
Aayush D Salot	4890
Total	97800

AS ON 29.09.2012

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 Breathing Equipments, Safety Emergency and Rescue Equipments.
Exports :
Products :	Finished Goods
Countries :	· Asian Country
Imports :
Products :	Raw Material
Countries :	· Europe USA China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

100 (Approximately)

Bankers :

· State Bank of India, Sakinaka Branch, 1st Floor, Saki Vihar Road, Sakinaka, Andheri (East), Mumbai - 400072, Maharashtra, India

ICICI Bank Limited

Facilities :

Cash Credit – Rs. 100.000 Millions [From State Bank of India]

SECURED LOANS	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
LONG-TERM BORROWINGS
From Bank	0.777	0.970
From Others	0.590	1.430
Less: Current Maturities transferred to Other Current liabilities	0.800	1.033
SHORT TERM BORROWINGS
Working Capital Loans from Banks, repayable on demand	82.093	55.759
Total	82.660	57.126
LONG-TERM BORROWINGS i) Unsecured Loan from Directors carries rate ranging from 12 %to 15% and the company does not have intention to repay it within next three years. ii) Loan taken from ICICI bank (Skoda) Loan which is secured against specific movable Assets and repayable in 36 equated monthly installments of Rs. 0.018 Million. iii) Loan taken from Kotak Mahindra Prime Limited (Honda Accord) which is secured against specific movable Assets and repayable in 36 equated monthly installments of Rs. 0.025 Million. iv) Loan taken from Kotak Mahindra Prime Limited (Innova) which is secured against specific movable Assets and repayable in 36 equated monthly installments of Rs. 0.048 Million. v) Secured loans consists loan from LIC which is secured against Keyman insurance Policies of the Directors. vi) Unsecured Loan consists business loan from Tata Capital and repayable in 36 equated monthly installments of Rs. 0.069 Million. SHORT TERM BORROWINGS i) Working Capital Loan from Bank is hypothecation of Plant and Machinery, Stock of Raw Materials, Semi-finished goods, finished goods, deposits. Movable Assets, Factory Land and Buildings, Book Debts and by LIC Policies and personal guarantee of the Directors. ii) Working capital loans carry interest rate ranging from 3.5% to 4.5% above Bank’s base rate, payable on monthly rests.

Banking Relations :	--
Auditors :
Name :	Chaturvedi Sohan and Company Chartered Accountants
Address :	320, Tulsiani Chamber, 212, Nariman Point, Mumbai – 400021, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AABPC8158C
Group Companies :	· Vijay Latex Products Private Limited · Vijay Technologies India Private Limited

CAPITAL STRUCTURE

AS ON 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
100,000	Equity Shares	Rs. 100/- each	Rs. 10.000 Millions
2,000	Preference Shares	Rs. 100/- each	Rs. 0.200 Million
	Total		Rs. 10.200 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
97,800	Equity Shares	Rs. 100/- each	Rs. 9.780 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50,000	Equity Shares	Rs. 100/- each	Rs. 5.000 Millions
2,000	Preference Shares	Rs. 100/- each	Rs. 0.200 Million
	Total		Rs. 5.200 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
30,000	Equity Shares	Rs. 100/- each	Rs. 3.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	3.000	3.000
(b) Reserves & Surplus	161.789	158.382
(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)	164.789	161.382
(3) Non-Current Liabilities
(a) long-term borrowings	7.642	2.259
(b) Deferred tax liabilities (Net)	0.741	1.300
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	2.094	1.543
Total Non-current Liabilities (3)	10.477	5.102
(4) Current Liabilities
(a) Short term borrowings	82.093	55.759
(b) Trade payables	85.017	84.258
(c) Other current liabilities	0.782	0.516
(d) Short-term provisions	27.258	14.020
Total Current Liabilities (4)	195.150	154.553
TOTAL	370.416	321.037
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	47.473	47.576
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	11.588	17.978
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	8.322	10.766
(e) Other Non-current assets	13.948	12.550
Total Non-Current Assets	81.331	88.870
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	120.313	82.348
(c) Trade receivables	150.838	138.684
(d) Cash and cash equivalents	0.880	1.284
(e) Short-term loans and advances	17.054	9.851
(f) Other current assets	0.000	0.000
Total Current Assets	289.085	232.167
TOTAL	370.416	321.037

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		3.000
2] Share Application Money		0.000
3] Reserves & Surplus		150.904
4] (Accumulated Losses)		0.000
NETWORTH		153.904
LOAN FUNDS
1] Secured Loans		35.305
2] Unsecured Loans		5.713
TOTAL BORROWING		41.018
DEFERRED TAX LIABILITIES		0.894
TOTAL		195.816
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		40.453
Capital work-in-progress		4.853
INVESTMENT		16.547
EFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	78.666
	Sundry Debtors	81.972
	Cash & Bank Balances	13.505
	Other Current Assets	0.882
	Loans & Advances	21.754
Total Current Assets		196.779
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	34.173
	Other Current Liabilities	23.387
	Provisions	5.256
Total Current Liabilities		62.816
Net Current Assets		133.963
MISCELLANEOUS EXPENSES		0.000
TOTAL		195.816

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		TOTAL	315.463	311.969	NA
Less	EXPENSES
		TOTAL	304.595	302.041	NA
	PROFIT BEFORE TAX		10.868	9.928	9.008
Less	TAX		2.338	2.271	1.563
	PROFIT AFTER TAX		8.530	7.657	7.445
	IMPORTS
		Raw Materials	NA	76.901	36.288
	Earnings Per Share (Rs.)		284.33	255.00	281.00

Particulars	31.03.2013
Sales Turnover (Approximately)	340.000

Expected Sales (2013-2014): Rs. 400.000 Millions

The above information has been parted by Mr. Prasad Prabhu (Accounts Manager)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.70	2.45	NA
Return on Total Assets (PBT/Total Assets}	(%)	3.03	3.28	3.80
Return on Investment (ROI) (PBT/Networth)		0.07	0.06	0.06
Debt Equity Ratio (Total Debt/Networth)		0.54	0.36	0.27
Current Ratio (Current Asset/Current Liability)		1.48	1.50	3.13

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBT

Particulars	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Current Maturities of Long term debts	1.626	1.033	NA

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 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	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	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90240309	26/06/2012 *	195,000,000.00	STATE BANK OF INDIA	SAKINAKA BRANCH, 1ST FLOOR, SAKI VIHAR ROAD, SAKINAKA, ANDHERI (EAST), MUMBAI - 400072, MAHARASHTRA, INDIA	B43208263
2	90242126	14/03/1997	18,500,000.00	STATE BANK OF INDIA	SAKINAKA BRANCH, MUMBAI, MAHARASHTRA, INDIA	-
3	90241899	24/02/1994 *	7,100,000.00	STATE BANK OF INDIA	SAKINAKA BRANCH, MUMBAI, MAHARASHTRA, INDIA	-

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
LONG-TERM BORROWINGS
Loans and Advances from Directors
Yashomati J. Salot	1.251	0.000
Dharmesh J. Salot	2.383	0.000
Others	4.266	0.892
Less: Current Maturities transferred to Other Current liabilities	0.825	0.000
Total	7.075	0.892

FIXED ASSETS:

· Land

Building

Plant and Machinery

Furniture and Fixture

Office Equipments

Vehicles

Patents and Rights

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. 61.30
UK Pound	1	Rs. 97.99
Euro	1	Rs. 83.15

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
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	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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		31

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.