MIRA INFORM REPORT

Report Date :

16.10.2013

IDENTIFICATION DETAILS

Name :	FEIN POWER TOOLS INDIA PRIVATE LIMITED
Registered Office :	Old No. 40, New No. 69, Arcot Road, Kodambakkam, Chennai-600024, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.04.2009
Com. Reg. No.:	18-071478
Capital Investment / Paid-up Capital :	Rs.36.480 Millions
CIN No.: [Company Identification No.]	U51505TN2009FTC071478
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in Trading of Power Tools and Special Application Solutions in the Metal, Interior Work and Automotive Fields.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ca (13)

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 is an established company having moderate track record. There appear huge accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a 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 – 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.

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 [GENERAL DETAILS]

Name :	Mr. Sujatha
Designation :	Company Secretary
Contact No.:	91-44-43578681
Date :	15.10.2013

LOCATIONS

Registered Office :	Old No. 40, New No. 69, Arcot Road, Kodambakkam, Chennai-600024, Tamilnadu, India
Tel. No.:	91-44-43578680/43578681/43578682/43578383/43578684/43578650
Fax No.:	91-44-24837788
E-Mail :	r.sujatha@fein.in info@fein.in
Website :	http://www.fein.in

DIRECTORS

AS ON 29.09.2012

Name :

Richard Ernst Geitner

Designation :

Chairman cum Managing Director

Address :

Aalen Ziegelstrasze 38, Aalen-73431, Germany

Date of Birth/Age :

28.01.1957

Date of Appointment :

18.07.2011

Din No.:

02526203

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	U51505TN2009FTC071478	FEIN POWER TOOLS INDIA PRIVATE LIMITED	Director	18/07/2011	29/04/2009	Active	NO
2	U29199TZ2005PTC011582	JANDIA ENGINEERING PRIVATE LIMITED	Director	19/05/2011	31/01/2011	Active	NO

Name :

Mr. Ameer Ahamed Munaff

Designation :

Managing Director

Address :

A1, Halls Honarah, 54, Halls Road, Egmore, Chennai-600008, Tamilnadu, India

Date of Birth/Age :

31.03.1972

Date of Appointment :

18.07.2011

Din No.:

02719687

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	U51505TN2009FTC071478	FEIN POWER TOOLS INDIA PRIVATE LIMITED	Managing director	18/07/2011	16/08/2010	Active	NO

Name :

Klaus Gottfried Wartlik

Designation :

Director

Address :

Stuttgart Stadtbezirk, West Gutenbergstr 18, Germany

Date of Birth/Age :

14.10.1968

Date of Appointment :

29.04.2009

Din No.:

02526221

KEY EXECUTIVES

Name :	Mr. Sujatha
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
C&E Fein GmbH, Germany	3647999
Fein Verwaltungs GmbH, Germany	1
TOTAL	3648000

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in Trading of Power Tools and Special Application Solutions in the Metal, Interior Work and Automotive Fields.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Power Tools	8467

Imports :

Products :

Power Tools

Countries :

Germany

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit [Depend]

GENERAL INFORMATION

Customers :

End Users and Others

No. of Employees :

Not Divulged

Bankers :

Not Available

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings
Kotak Mahindra Vehicle Loan [The loan carries interest @ 11%. The loan is repayable in 36 monthly installments of Rs.39500/- each. The loan is secured by a hypothecation of vehicles purchase. Further, the loan has been guaranteed by the personal guarantee of the managing director of the company]	0.199	0.552
Term Loans From Financial Institution NPR Finance Limited [The loan carries interest @ 10%. The loan is repayable in 34 monthly installments of Rs.19000 each and a final installment of Rs.8000. the loan is secured by a hypothecation of Demo Bus.]	0.104	0.331
TOTAL	0.303	0.883

Banking Relations :	--
Auditors :
Name :	Manohar Chowdhry and Associates Chartered Accountants
Address :	No. 27, Subramaniam Street, Abhiramapuram, Chennai-600018, Tamilnadu, India
PAN No:	AAAFM9052A
Holding Company :	C&E Fein GmbH, Germany
Other Related Parties :	Jancy Engineering Inc., USA Fein Power Tools, Australia Fein Power Tools Inc., USA Fein Dubai Jandia Engineering Private Limited, India

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3650000	Equity Shares	Rs.10/- each	Rs.36.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3648000	Equity Shares	Rs.10/- each	Rs.36.480 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	36.480	28.500
(b) Reserves & Surplus	(30.219)	(19.957)
(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)	6.261	8.543
(3) Non-Current Liabilities
(a) long-term borrowings	0.303	0.883
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	25.612	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	25.915	0.883
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	39.600	46.152
(c) Other current liabilities	1.460	1.260
(d) Short-term provisions	3.806	2.569
Total Current Liabilities (4)	44.866	49.981
TOTAL	77.042	59.407
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	10.921	13.012
(ii) Intangible Assets	0.024	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.042	0.003
(d) Long-term Loan and Advances	2.623	1.775
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	13.610	14.790
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	38.506	29.483
(c) Trade receivables	13.583	7.074
(d) Cash and cash equivalents	7.638	5.501
(e) Short-term loans and advances	3.647	2.552
(f) Other current assets	0.058	0.007
Total Current Assets	63.432	44.617
TOTAL	77.042	59.407

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		20.790
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		(4.715)
NETWORTH		16.075
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		0.000
TOTAL		16.075
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.205
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	19.980
	Sundry Debtors	3.245
	Cash & Bank Balances	2.840
	Other Current Assets	6.362
	Loans & Advances	0.000
Total Current Assets		32.427
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	26.609
	Provisions	0.948
Total Current Liabilities		27.557
Net Current Assets		4.870
MISCELLANEOUS EXPENSES		0.000
TOTAL		16.075

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	NA	NA	11.234
		Other Income	NA	NA	4.137
		TOTAL	NA	NA	15.371
Less	EXPENSES
		Direct Cost	NA	NA	7.044
		Employee Cost	NA	NA	5.396
		Administration Cost	NA	NA	6.531
		Amortization of Deferred Premium	NA	NA	0.044
		TOTAL	NA	NA	19.015
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		NA	NA	(3.644)
Less/ Add	DEPRECIATION/ AMORTISATION		NA	NA	1.071
	PROFIT / (LOSS) BEFORE TAX		(10.300)	(15.245)	(4.715)
Less	TAX		(0.039)	(0.003)	0.000
	PROFIT / (LOSS) AFTER TAX		(10.261)	(15.242)	(4.715)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(19.957)	(4.715)	NA
	BALANCE CARRIED TO THE B/S		(30.218)	(19.957)	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	11.522	0.052	NA
	IMPORTS
		Capital Goods	0.277	0.694	6.338
		Finished Goods	39.985	31.923	27.417
	TOTAL IMPORTS		40.262	32.617	33.755
	Earnings / (Loss) Per Share (Rs.)		(3.15)	(6.59)	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	(30.67)
Net Profit Margin (PBT/Sales)	(%)	NA	NA	(41.97)
Return on Total Assets (PBT/Total Assets}	(%)	(13.37)	(25.66)	(10.81)
Return on Investment (ROI) (PBT/Networth)		(1.65)	(1.78)	(0.29)
Debt Equity Ratio (Total Debt/Networth)		0.05	0.10	0.00
Current Ratio (Current Asset/Current Liability)		1.41	0.89	1.17

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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for one year	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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

NOTE:

The registered office of the company has been shifted from Karpagam, No. 9, Venkatesapuram Colony, Vadapalani, Chennai-600026, Tamilnadu, India to the present address w.e.f. 01.05.2009.

OPERATIONS:

The company has it full accounting year of operation for the first time. The company improved its top line almost three times compared to the year particularly in metal and automotives business. There was also a wide acceptance for Fein Brand across the country in the year 2010-2011 which the company converted it to its advantage.

FUTURE OUTLOOK:

Demand for Fein Brand is on the increase particularly in Surface Processing and Core Drilling Business. The directors are hopeful of capturing better market share in the following year. Export to SAARC countries will also assume priority in the following year.

FIXED ASSETS:

• Plant and Machinery
• Furniture Fittings and Fixtures
• Office Equipments
• IT Equipments
• Vehicles
• Capitalized Software

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.61.69
UK Pound	1	Rs.98.59
Euro	1	Rs.83.67

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	--
--CREDIT LINES	1~10	--
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		13

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.