MIRA INFORM REPORT

Report Date :

23.09.2013

IDENTIFICATION DETAILS

Name :	MARIKAR ENGINEERS PRIVATE LIMITED
Formerly Known As :	MARIKAR ENGINEERS LIMITED
Registered Office :	T C 25/75, Marikar Buildings, M.G. Road, Trivandrum – 695001, Kerala
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	06.03.1945
Com. Reg. No.:	09-000718
Capital Investment / Paid-up Capital :	Rs.10.000 Millions
CIN No.: [Company Identification No.]	U29299KL1945PTC000718
Legal Form :	Private Limited Liability Company
Line of Business :	Subject engaged in the business of Automobile products consisting of passenger cars, its spares and service.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 198000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The financials of 2012 is not available. Due to the down turn in the auto industry, there was a drop in company’s turnover. The investment in new infrastructure also resulted in a huge increase in interest cost. External borrowing of the company appears to be huge. Hence, there has been a drop in profits. Trade relations are reported as fair. Business is active. Payments are reported to be unknown. The company can be considered for business dealings 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.

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 DENIED

Management Non-Cooperative (91-484-2556777/ 2556555)

LOCATIONS

Registered Office :	T C 25/75, Marikar Buildings, M.G. Road, Trivandrum – 695001, Kerala, India
Tel. No.:	91-471-2465882/ 2468294/ 2465095
Fax No.:	91-471-2462630/ 2468294
E-Mail :	oia@marikar.in marikarepl@yahoo.com

DIRECTORS

As on: 29.09.2012

Name :	Mr. Shamshudeen Marikar
Designation :	Director
Address :	MSA Bungalow, Munnar, Idukki – 685612, Kerala, India
Date of Birth/Age :	29.01.1933
Date of Appointment :	29.09.2007
DIN No.:	00552956
Name :	Mr. Abdul Sathar
Designation :	Whole Time Director
Address :	Poykayil, Sree Hills, Thirumala, Thiruvanathpuram – 695006, Kerala, India
Date of Birth/Age :	21.04.1935
Date of Appointment :	16.03.2009
Voter ID No.:	KL 20 136 135044
DIN No.:	00224970
Name :	Nazira Marikar
Designation :	Director
Address :	Vikramapuram Hill, Koravankonam, Kowdiar, Thiruvanathpuram – 695003, Kerala, India
Date of Birth/Age :	31.07.1937
Date of Appointment :	29.09.2007
Voter ID No.:	KL 20 134 123044
DIN No.:	00496059
Name :	Mr. Chulliparambil Abdul Kareem Salim
Designation :	Director
Address :	No. 37/1158, Kumarnasan Road, Kadavantra P.O., Ernakulam – 682020, Kerala, India
Date of Birth/Age :	14.09.1957
Date of Appointment :	01.04.2011
DIN No.:	00814148
Name :	Sabiha Marikar
Designation :	Director
Address :	TC/2395, Vikramapuram Hill, Koravankonam, Trivandrum – 695003, Kerala, India
Date of Birth/Age :	15.04.1970
Date of Appointment :	01.04.2011
DIN No.:	03474601
Name :	Rajwanth Ben
Designation :	Whole Time Director
Address :	Blessing, TTC Junction, Kowdiar PO, Trivandrum – 695003, Kerala, India
Date of Birth/Age :	23.05.1975
Date of Appointment :	01.04.2012
DIN No.:	03474607

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
A M Marikar	105
C J Luiz	50
Marikar and Company Limited, India	1500
Marikar (Motors) Limited, India	5000
HOL Marikar and Sons Private Limited, India	1105
Ayesha Mohammed	75
Shamshudeen Marikar	100
S Basheer Ahamed	60
P S Subhalekshmi Ammal	5
R Balu Alagannan	20
Zubeida Marikar	250
M R Narasimhan	15
Sherin Ashraf Hussain	65
M R Krishanan	15
Shamim Marikar	70
M M Abdul Aziz	25
S Kumar	75
B Suseelan	15
C Rama Iyer	15
Sabiha Marikar	5365
Yasmin Marikar	5365
M Abdul Sathar	75
Amaarah Marikar	6250
Zehra Marikar	6250
Saba Marikar	6250
Rajwanth Ben	25
R Devaki Antharajanam	50
S Madhavarayan Potti	5
Nazira Marikar	161685
Dr. Zulaiha Mohamed	110
C A Salim	5
Total	200000

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Bodies corporate	3.80
Directors or relatives of directors	96.02
Other top fifty shareholders	0.17
Others	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject engaged in the business of Automobile products consisting of passenger cars, its spares and service.

Products :

Product Description	ITC Code
Motor Cars – Diesel	87033291
Motor Cars – Petrol	87032391
Parts and Accessories of Vehicles	87080000

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Canara Bank, Puthenchanthai Branch, Devaswom Board Building, M.G. Road, Trivandrum - 695001, Kerala, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Canara Bank
Cash Credit (Secured by hypothecation of specific movable assets being stock-in-trade, book debts, machinery and by equitable mortgage of certain immovable properties)	167.751	145.837
Long Term Loan	147.351	140.549
Total	315.102	286.386

Banking Relations :	--
Auditors :
Name :	Issac and Sudhakar Chartered Accountants
Address :	No. 41, T.C. 2/2527, Provident Fund Office Road, Pattom Palace P.O, Trivandrum – 695004, Kerala, India
PAN No.:	AAAFI6592F
Following companies / associates are related to the Company on account of common control through Constitution of Board / Shareholdings:	H.O.L. Marikar and Sons Private Limited Msrikar and Company Limited Marikar (Motors) Limited Marikar Marketing Corporation Marikar Industries Moon Financial Services Marikar Apparel Incorporated Marikar Automobiles and Services Private Limited

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.50/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.50/- each	Rs.10.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		10.000	0.564	0.564
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		39.659	45.620	44.650
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		49.659	46.184	45.214
LOAN FUNDS
1] Secured Loans		315.102	286.386	152.712
2] Unsecured Loans		84.919	131.758	35.984
TOTAL BORROWING		400.021	418.144	188.696
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		449.680	464.328	233.910
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		173.066	133.028	125.176
Capital work-in-progress		173.488	180.559	58.619
INVESTMENT		14.453	13.995	10.763
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	153.370	134.989	63.796
	Sundry Debtors	19.208	23.457	8.290
	Cash & Bank Balances	38.138	12.136	12.552
	Other Current Assets	1.274	1.604	1.261
	Loans & Advances	50.269	73.094	65.404
Total Current Assets		262.259	245.280	151.303
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	79.988	65.162	63.429
	Other Current Liabilities	60.574	11.353	16.704
	Provisions	33.024	32.019	31.818
Total Current Liabilities		173.586	108.534	111.951
Net Current Assets		88.673	134.746	39.352
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		449.680	464.328	233.910

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income
		Other Income
		TOTAL (A)	725.516	671.730	923.943
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	658.389	641.310	882.667
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		67.127	30.420	41.276
Less	FINANCIAL EXPENSES (D)		55.249	23.394	22.611
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		11.878	7.026	18.665
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.375	5.525	4.844
	PROFIT BEFORE TAX (E-F) (G)		2.503	1.501	13.821
Less	TAX (H)		0.465	0.398	5.200
	PROFIT AFTER TAX (G-H) (I)		2.038	1.103	8.621
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		23.370	22.399	19.107
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	5.000
		Proposed Dividend on Equity Shares	0.000	0.113	0.282
		Provision for tax on Dividend	0.000	0.019	0.048
	BALANCE CARRIED TO THE B/S		25.408	23.370	22.398
	Earnings Per Share (Rs.)		10.00	98.00	765.00

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.28	0.16	0.93
Return on Total Assets (PBT/Total Assets}	(%)	0.57	0.40	5.00
Return on Investment (ROI) (PBT/Networth)		0.05	0.03	0.31
Debt Equity Ratio (Total Debt/Networth)		8.06	9.05	4.17
Current Ratio (Current Asset/Current Liability)		1.51	2.26	1.35

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	Yes
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	No
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	Yes
34]	External Agency Rating, if available	No

PERFORMANCE

Due to the down turn in the Auto Industry, there was a drop in the company's turnover. The Investments in new infrastructure also resulted in a huge increase in interest cost. Hence, there has been a drop in profits.

OUTLOOK FOR CURRENT YEAR

While the slow down continued in the first half of the current year, there are signs of recovery now. The Directors are working towards improving facilities and finding means to reduce interest costs to ensure that the results improve in the coming year.

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2011	As on 31.03.2010
From Banks and Financial Institutions	54.919	51.758
From others	30.000	80.000
Total	84.919	131.758

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10305279	13/07/2011	69,500,000.00	CANARA BANK	PUTHENCHANTHAI BRANCH, DEVASWOM BOARD BUILDING, M.G. ROAD, TRIVANDRUM, KERALA - 695001, INDIA	B20062980
2	10200431	04/05/2011 *	45,000,000.00	CANARA BANK	PUTHENCHANTHAI BRANCH, DEVASWOM BOARD BUILDING, M.G. ROAD, TRIVANDRUM, KERALA - 695001, INDIA	B12687232
3	10200434	04/05/2011 *	50,000,000.00	CANARA BANK	PUTHENCHANTHAI BRANCH, DEVASWOM BOARD BUILDING, M.G. ROAD, TRIVANDRUM, KERALA - 695001, INDIA	B12687448
4	10200426	04/05/2011 *	168,000,000.00	CANARA BANK	PUTHENCHANTHAI BRANCH, DEVASWOM BOARD BUILDING, M.G. ROAD, TRIVANDRUM, KERALA - 695001, INDIA	B12687497

* Date of charge modification

FIXED ASSETS

• Land
• Buildings
• Machinery
• Vehicles
• Furniture and Fixture

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.62.24
UK Pound	1	Rs.99.90
Euro	1	Rs.84.23

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.