MIRA INFORM REPORT

Report Date :

17.09.2013

IDENTIFICATION DETAILS

Name :	FINE TOOLS (INDIA) PRIVATE LIMITED
Registered Office :	No.449-P, 4^th Phase, KIADB Industrial Area, Peenya, Bangalore – 560 058, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	28.06.2006
Com. Reg. No.:	08-039835
Capital Investment / Paid-up Capital :	Rs.7.600 Millions
CIN No.: [Company Identification No.]	U25209KA2006PTC039835
TAN No.: [Tax Deduction & Collection Account No.]	BLRF01382D
PAN No.: [Permanent Account No.]	AABCF0583F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Moulds and Components.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 136000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual 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.

LOCATIONS

Registered Office/ Factory :	No.449-P, 4^th Phase, KIADB Industrial Area, Peenya, Bangalore – 560 058, Karnataka, India
Tel. No.:	91-80-28360453/ 28363666
Fax No.:	91-80-41170471
E-Mail :	hnarao@gmail.com info@finetoolsindia.com
Website :	http://www.finetoolsindia.com

DIRECTORS

As on 29.09.2012

Name :	Mr. T.P. Kallesh
Designation :	Managing Director
Address :	No.431, 1^st Cross, 4^th Block, 3^rd Stage, Basaveshwarnagar, Bangalore – 560 079, Karnataka, India
Date of Birth/Age :	01.06.1957
Date of Appointment :	28.06.2006
DIN No.:	00222750
Name :	Mrs. Shailaja Kallesh
Designation :	Director
Address :	No.431, 1^st Cross, 4^th Block, 3^rd Stage, Basaveshwarnagar, Bangalore – 560 079, Karnataka, India
Date of Birth/Age :	21.11.1963
Date of Appointment :	28.06.2006
DIN No.:	00222465

MAJOR SHAREHOLDERS

As on 29.09.2012

Names of Shareholders	No. of Shares
T.P. Kallesh	505000
Shailaja Kallesh	255000
Total	760000

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Moulds and Components.
Products :	Plastic Moulded Components Automobiles – Parts for Safety Seat Belts, Window Regulator, Door Trims etc. Electrical – Parts for Electrical Application Appliances – Parts for Washing Machines Electronics and Communication

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Canara Bank, Specialised SME Branch, No.473D, 13^th Cross, 4^th Phase, Peenya Industrial Area, Bangalore – 560 058 Karnataka, India

Facilities :

Secured Loans	31.03.2012 Rs. in Millions	31.03.2011 Rs. in Millions
Long Term Borrowings
(On Hypothecation of Machinery, mortgage of Industrial Land and Building and personal guarantee of Directors)
- Canara Bank	5.441	7.373
Short Term Borrowings
Loans repayable on Demand From
(On Hypothecation of Book Debts, Stock in Trade)
i) Canara Bank OD	(0.003)	(0.004)
ii) Canara Bank OD	16.170	25.143
Total	21.608	32.512

Banking Relations :	--
Auditors :
Name :	ABS and Company Chartered Accountants
Address :	No.32, G-3, Rukmini Apartments, 15^th Cross, 11^th Main Road, Malleswaram, Bangalore – 560 055, Karnataka, India
Tel. No.:	91-80-23448727/ 23561653
Income-tax PAN of auditor or auditor's firm :	ADRPR2313R

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
760000	Equity Shares	Rs.10/- each	Rs.7.600 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		7.600	7.600	7.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		26.504	19.583	11.885
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		34.104	27.183	19.485
LOAN FUNDS
1] Secured Loans		21.608	32.512	10.323
2] Unsecured Loans		5.814	11.942	8.575
TOTAL BORROWING		27.422	44.454	18.898
DEFERRED TAX LIABILITIES		0.529	0.516	0.091
TOTAL		62.055	72.153	38.474
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		27.305	30.984	15.146
Capital work-in-progress		3.467	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	21.024	27.781	20.737
	Sundry Debtors	24.934	18.278	11.940
	Cash & Bank Balances	1.514	10.515	0.482
	Other Current Assets	7.926	4.700	0.000
	Loans & Advances	3.814	4.449	8.379
Total Current Assets		59.212	65.723	41.538
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	19.885	14.160	9.451
	Other Current Liabilities	2.182	2.321	6.146
	Provisions	5.862	8.073	2.646
Total Current Liabilities		27.929	24.554	18.243
Net Current Assets		31.283	41.169	23.295
MISCELLANEOUS EXPENSES		0.000	0.000	0.033
TOTAL		62.055	72.153	38.474

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	165.210	133.643	107.843
		Other Income	NA	0.020	0.149
		TOTAL	NA	133.663	107.992
Less	EXPENSES
		Office Expenses	NA	118.727	97.889
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	118.727	97.889
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		15.239	14.936	10.103
Less/ Add	DEPRECIATION/ AMORTISATION		4.703	3.267	2.019
	PROFIT BEFORE TAX		10.536	11.669	8.084
Less	TAX		NA	3.971	2.696
	PROFIT AFTER TAX		NA	7.698	5.388
	EARNINGS IN FOREIGN CURRENCY		2.321	1.377	1.190
	Earnings Per Share (Rs.)		NA	10.13	7.09

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	5.76	4.99
Net Profit Margin (PBT/Sales)	(%)	6.38	8.73	7.50
Return on Total Assets (PBT/Total Assets}	(%)	12.18	12.07	14.26
Return on Investment (ROI) (PBT/Networth)		0.31	0.43	0.41
Debt Equity Ratio (Total Debt/Networth)		0.80	1.64	0.97
Current Ratio (Current Asset/Current Liability)		2.12	2.68	2.28

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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOANS:

Particulars	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Short Term Borrowings
From Directors	5.814	11.942
Total	5.814	11.942

INDEX OF CHARGE:

Sr .No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10112201	02/04/2013 *	36,397,000.00	CANARA BANK	SME BRANCH, 473D, 13TH CROSS, IV PHASE, PEENYA INDUSTRIAL AREA, BANGALORE, Karnataka - 560058, INDIA	B72435829

* Date of charge modification

OPERATIONS OF THE COMPANY AND FINANCIAL RESULTS:

The Company has made a turnover of Rs.165.210 millions resulting in a Profit of Rs.10.536 millions after making depreciation of Rs.4.703 millions for the year 2011-12. The directors are hopeful of showing substantial growth in the coming years. Prospects for the company during 2012-13 are quite encouraging.

FIXED ASSETS:

· Computer

· Office Equipments

· Plant and Machinery

· Diesel Generator

· Electrical Installation

· Energy Saving Devices

· Factory Building

· Moulds and Tools

· Motor Car

· Motor Bike

· Projector

· KIADB Land

· Furniture and Fixtures

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. 62.48
UK Pound	1	Rs. 99.66
Euro	1	Rs. 83.50

INFORMATION DETAILS

Report Prepared by :

VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		45

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.