MIRA INFORM REPORT

Report Date :

23.08.2014

IDENTIFICATION DETAILS

Name :	ASHOK IRON WORKS PRIVATE LIMITED
Registered Office :	689/1, Udyambag, Belgaum- 590008, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	12.11.1981
Com. Reg. No.:	08-004487
Capital Investment / Paid-up Capital :	Rs.41.878 Millions
CIN No.: [Company Identification No.]	U27104KA1981PTC004487
PAN No.: [Permanent Account No.]	AABCA0813L
Legal Form :	Private limited liability company
Line of Business :	Manufacturer, Importer and Exporter iron-foundry products and machined components for Diesel Engineers, Tractors, Automobiles and compressors.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 6900000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Sales turnover of the company has declined which resulting into dip in profit of the company during financial year 2013. However, the rating reflects Ashok Iron’s healthy business risk profile, marked by its established market position in auto-component sector, diverse product profile and decent liquidity position of the company. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

NEWS

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating = A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	June 12, 2014

Rating Agency Name	CRISIL
Rating	Short term rating = A2+
Rating Explanation	Strong degree of safety and low credit risk.
Date	June 12, 2014

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 31-03-2014.

INFORMATION DENIED

Management Non-Cooperative

Contact No.: 91-831-2442599

LOCATIONS

Registered Office / Factory 1 :	689/1, Udyambag, Belgaum - 590008, Karnataka, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	corporate@ashokiron.com marketing@ashokiron.com hr@ashokiron.co
Website :	www.ashokiron.com
Corporate Office :	Plot No.9 To 11, Mazagaon Road, Udyambag, Belgaum - 590008, Karnataka, India
Tel. No.:	91-831-2442599 (8 lines)
Fax No.:	91-831-2441899
Development Centre / Factory 2 :	Machhe Industrial Estate, Belgaum - 590 014 Karnataka, India
Cylinder Block Machining Division :	Plot No. N-1, S. No. 5/1, Industrial Estate, Udyambag, Belgaum - 590 008, Karnataka, India
Machining and Assembly Division :	608/1, Machhe Industrial Estate, Machhe, Belgaum - 590 014, Karnataka, India
Cylinder Head and Block Machining Division :	Navage Cross, Navage, Belgaum - 590 014, Karnataka, India
Wind Energy Division 1:	RS No. 409/1B , RS No. 409/1A/2 and RS No. 371/1B, at Village Nej Taluka : Chikodi, District : Belgaum – 591201, Karnataka, India
Wind Energy Division 2 :	Sadawaghapur District : Satara - 415206, Maharashtra, India

DIRECTORS

AS ON 28.09.2013

Name :

Mr. Ashok Shivlingappa Humbarwadi

Designation :

Chairmen and Managing Director

Address :

45 Sadashiv Nagar, Belgaum,- 590001, Karnataka, India

Date of Birth/Age :

17.03.1943

Qualification :

B.E

Date of Appointment :

31.12.1982

Experience :

45 Years

DIN No. :

00517388

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U27104KA1981PTC004487	ASHOK IRON WORKS PRIVATE LIMITED	Managing director	31/12/1982	31/12/1982	-	Active	NO
2	U29222KA1982PTC005016	FLUID DYNAMICS PRIVATE LIMITED	Director	15/02/1998	15/02/1998	-	Active	NO
3	U65993KA1984PTC005898	NUTAN INVESTMENTS AND TRADING PRIVATE LIMITED	Director	09/12/2004	09/12/2004	-	Active	NO
4	U27101KA1981ULT004568	JAIHIND TECHNO MACHINES PRIVATE LIMITED	Director	26/09/2006	26/09/2006	-	Active	NO

Name :

Mr. Jayant Ashok Humbarwadi

Designation :

Managing director and Executive Director

Address :

45 Sadashiv Nagar, Belgaum, Karnataka, India

Date of Birth/Age :

18.05.1974

Qualification :

B.E

Date of Appointment :

01.04.2014

Experience :

17 Years

DIN No. :

00517389

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U29222KA1982PTC005016	FLUID DYNAMICS PRIVATE LIMITED	Managing director	15/12/1998	15/12/1998	-	Active	NO
2	U27104KA1981PTC004487	ASHOK IRON WORKS PRIVATE LIMITED	Managing director	01/04/2014	29/09/1999	-	Active	NO
3	U65993KA1984PTC005898	NUTAN INVESTMENTS AND TRADING PRIVATE LIMITED	Director	09/12/2004	09/12/2004	-	Active	NO
4	U27101KA1981ULT004568	JAIHIND TECHNO MACHINES PRIVATE LIMITED	Director	26/09/2006	26/09/2006	-	Active	NO

Name :

Mr. Sadanand Dundappa Humbarwadi

Designation :

Director

Address :

Aditya Apartments, 277 Agarkar Road, Tilakwadi, Belgaum - 590006, Karnataka, India

Date of Birth/Age :

31.01.1964

Date of Appointment :

29.09.1999

DIN No. :

00517384

Name :

Mr. Ashok Basappa Kanguri

Designation :

Director

Address :

241 Ranade Road, Tilakwadi, Belgaum- 590006, Karnataka, India

Date of Birth/Age :

05.05.1944

Date of Appointment :

09.09.1993

DIN No. :

00522022

Name :

Mr. Nandkumar Venkatrao Bhonsle

Designation :

Director

Address :

Plot No.32, Jadhav Nagar, Belgaum- 590001, Karnataka, India

Date of Birth/Age :

12.05.1944

Date of Appointment :

03.09.1993

DIN No. :

00517392

Name :

Mr. Vijay Siddojirao Katkar

Designation :

Director

Address :

A-1, Spring Apartments, Maratha Colony, Tilakwadi, Belgaum- 590006, Karnataka, India

Date of Birth/Age :

03.06.1952

Date of Appointment :

09.12.1996

DIN No. :

00517377

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U27104KA1981PTC004487	ASHOK IRON WORKS PRIVATE LIMITED	Director	09/12/1996	09/12/1996	-	Active	NO
2	U65993KA1984PTC005898	NUTAN INVESTMENTS AND TRADING PRIVATE LIMITED	Director	09/12/2004	09/12/2004	-	Active	NO
3	U27101KA1981ULT004568	JAIHIND TECHNO MACHINES PRIVATE LIMITED	Director	26/09/2006	26/09/2006	-	Active	NO

Name :

Mr. Ramaiah Gedipudi

Designation :

Director

Address :

Bhaskar Enclave, Nagarjuna Nagar, Coly Yguda, Hyderabad- 500073, India

Date of Birth/Age :

01.07.1955

Date of Appointment :

09.12.1996

DIN No. :

01828369

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U27104KA1981PTC004487	ASHOK IRON WORKS PRIVATE LIMITED	Director	09/12/1996	09/12/1996	-	Active	NO
2	U24231TG2002PTC040136	BRUNDAVAN LABORATORIES PRIVATE LIMITED	Managing director	19/12/2002	19/12/2002	-	Active	NO

Name :

Mr. Shivakumar Dundappa Humbarwadi

Designation :

Director

Address :

Amrutkunj 714 Angol Extension, Hindunagar, Tilakwadi, Belgaum- 590006, Karnataka, India

Date of Birth/Age :

22.08.1961

Date of Appointment :

24.10.1988

Date of Cessation :

01.01.2014

DIN No. :

00517381

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2013

SHAREHOLDERS FILES ARE ATTACHED

AS ON 28.09.2013

Equity share breakup (percentage of total equity)

Category	Percentage
Bodies corporate	5.21
Directors or relatives of directors	69.79
Other top fifty (50) shareholders	25.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Importer and Exporter iron-foundry products and machined components for Diesel Engineers, Tractors, Automobiles and compressors.

Products :

Products Description	ITC Code
C I Casting	73251000

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

· ICICI Bank Limited, Sobha Pearl, No.1, Commissariat Road, Bangalore - 560025, Karnataka, India

· State Bank of India, SME Branch, Halgekar Building, Opp Mahaveer Bhavan, Goaves, Hindwadi, Belgaum - 590011, Karnataka, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	290.352	323.221
SHORT TERM BORROWINGS
Working capital loans from banks	206.858	336.508
Total	497.210	659.729
PARTICULAR	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Deposits from directors	153.516	48.889
Other loans and advances	0.000	84.684
Total	153.516	133.573

NOTE :

LONG TERM BORROWINGS

Against import of Machinery secured against hypothecation of Assets, Book debts, 2nd charge on fixed assets, and Directors Mr. A.S. Humbarwadi and Mr. J.A. Humbarwadi and Mr Shivkumar D. Humbarwadi have given their personal guarantees for the same.

SHORT TERM BORROWINGS

Cash Credit Secured against hypothecation of Stocks, book debts , 2nd charge on fixed assets, and Directors Mr. A.S. Humbarwadi, Mr. J.A. Humbarwadi and Mr. Shivkumar D. Humbarwadi have given their personal guarantees for the same.

Banking Relations :	--
Auditors :
Name :	Paranjapee Phadnis and Company Chartered Accountant
Address :	22 Khanapur Road, Tilakwadi, Belgaum,- 590006, Karnataka, India
Pan No.:	AHPPP0719F
Relatives of Key Management personnel :	· Jayhind Engineering · Jayant Alloys Private Limited · Jaihind Techno Machines Private Limited · Progressive Engineering · Standard Engineering · Fluid Dynamics Private Limited

CAPITAL STRUCTURE

AS ON 28.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
98,000	Equity Share	Rs.1000/- Each	Rs.98.000 Millions
2,000	4% Non Cum Preference Shares	Rs.1000/- Each	Rs.2.000 Millions
			Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
41878	Equity Share	Rs.1000 /- Each	Rs.41.878 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital		41.878	41.878
(b) Reserves & Surplus		1,674.462	1,393.849
(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)		1,716.340	1,435.727
(3) Non-Current Liabilities
(a) long-term borrowings		443.868	456.794
(b) Deferred tax liabilities (Net)		118.573	132.405
(c) Other long term liabilities		156.923	240.662
(d) long-term provisions		39.613	35.797
Total Non-current Liabilities (3)		758.977	865.658
(4) Current Liabilities	153.516	133.573
(a) Short term borrowings		206.858	336.508
(b) Trade payables		193.901	283.840
(c) Other current liabilities		49.263	52.619
(d) Short-term provisions		91.723	105.333
Total Current Liabilities (4)		541.745	778.300
TOTAL		3,017.062	3,079.685
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets		1,433.253	1,538.488
(ii) Intangible Assets		0.450	0.450
(iii) Capital work-in-progress		92.794	19.365
(iv) Intangible assets under development		0.000	0.000
(b) Non-current Investments		0.372	0.372
(c) Deferred tax assets (net)		0.000	0.000
(d) Long-term Loan and Advances		85.198	67.273
(e) Other Non-current assets		0.379	0.505
Total Non-Current Assets		1,612.446	1,626.453
(2) Current assets
(a) Current investments		0.000	0.000
(b) Inventories		453.152	531.932
(c) Trade receivables		629.115	788.892
(d) Cash and cash equivalents		275.371	76.766
(e) Short-term loans and advances		46.978	55.642
(f) Other current assets		0.000	0.000
Total Current Assets		1,404.616	1,453.232
TOTAL		3,017.062	3,079.685

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		41.878
2] Share Application Money		0.000
3] Reserves & Surplus		1069.477
4] (Accumulated Losses)		0.000
NETWORTH		1111.355
LOAN FUNDS
1] Secured Loans		115.040
2] Unsecured Loans		474.665
TOTAL BORROWING		589.705
DEFERRED TAX LIABILITIES		82.805
TOTAL		1783.865
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1353.123
Capital work-in-progress		26.797
INVESTMENT		0.372
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	429.708
	Sundry Debtors	661.426
	Cash & Bank Balances	73.254
	Other Current Assets	0.000
	Loans & Advances	109.056
Total Current Assets		1273.444
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	553.948
	Sundry Creditors	274.665
	Provisions	41.258
Total Current Liabilities		869.871
Net Current Assets		403.573
MISCELLANEOUS EXPENSES		0.000
TOTAL		1783.865

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Revenue from operations	4,410.400	4,811.400	3,937.400
	Other Income
	TOTAL	4,410.400	4,811.400	3,937.400
Less	EXPENSES
	TOTAL	3,685.600	4,029.200	3,323.000
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	724.800	782.200	614.400
Less	FINANCIAL EXPENSES	68.000	62.700	74.800
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	656.800	719.500	539.600
Less/ Add	DEPRECIATION/ AMORTISATION	247.500	223.900	201.700
	PROFIT/ (LOSS) BEFORE TAX	409.300	495.600	337.900
Less	TAX	128.700	171.200	118.500
	PROFIT/ (LOSS) AFTER TAX	280.600	324.400	219.400
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	1,322.300	997.900	778.500
	BALANCE CARRIED TO THE B/S	1,602.900	1,322.300	997.900
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	76.532	NA	82.400
	TOTAL EARNINGS	76.532	NA	0.000
	Earnings / (Loss) Per Share (Rs.)	6700.42	7746.31	5239.03

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	6.36	6.74	5.57
Return on Total Assets (PBT/Total Assets)	(%)	14.00	16.20	12.86
Return on Investment (ROI) (PBT/Networth)		0.24	0.35	0.30
Debt Equity Ratio (Total Debt /Networth)		0.38	0.55	0.53
Current Ratio (Current Asset/Current Liability)		2.59	1.87	1.46

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	41.878	41.878
Reserves & Surplus	1,393.849	1,674.462
Net worth	1,435.727	1,716.340
long-term borrowings	456.794	443.868
Short term borrowings	336.508	206.858
Total borrowings	793.302	650.726
Debt/Equity ratio	0.553	0.379

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	3,937.400	4,811.400	4,410.400
		22.197	(8.334)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	3,937.400	4,811.400	4,410.400
Profit/(Loss) After Tax	219.400	324.400	280.600
	5.57%	6.74%	6.36%

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	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

VIEW INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10478216	11/02/2014	350,000,000.00	ICICI BANK LIMITED	SOBHA PEARL, NO.1, COMMISSARIAT ROAD, BANGALORE , KARNATAKA - 560025, INDIA	B96652193
2	10313541	14/08/2012 *	180,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	B59357178
3	10048854	13/03/2007	237,160,000.00	UTI BANK LTD.	"ESQUIRE", NO.9, M G ROAD, BANGALORE, KARNATAKA -  560001, INDIA	A14204044
4	90192914	10/12/2004	221,200,000.00	UTI BANK LIMITED	NO. 9; MG ROAD, BANGALORE, KARNATAKA - 560001, INDIA	-
5	90192521	20/03/2002 *	26,000,000.00	KARNATAKA STATE INDUSTRIAL INVESTMENT AND DEVLOPMENT CORPORT	MSIL 36; CUNNIGHAM ROAD, BANGALORE, KARNATAKA - 560052, INDIA	-
6	90192469	21/12/2001 *	10,000,000.00	KARNATAKA STATE INDUSTRIAL INVESTMENT DEVLOPMENT COROPORTION	MSIL; 36; CUNNUNGHAM ROAD, BANGALORE, KARNATAKA -  560052, INDIA	-
7	90192259	11/05/2000	19,000,000.00	KARNATAKA STATE INDUSTRIAL INVESTMENT AND DEVLOPMENT CORPORT	MSIL 36; CUNNIGHAM ROAD, BANGALORE, KARNATAKA - 560052, INDIA	-
8	80027604	16/09/2013 *	825,000,000.00	STATE BANK OF INDIA	SME BRANCH, HALGEKAR BUILDING, OPP MAHAVEER BHAVAN, GOAVES, HINDWADI, BELGAUM, KARNATAKA - 590011,  INDIA	B86850419

* Date of charge modification

OPERATIONS

The overall economy and in particular the manufacturing sector witnessed a slowdown. The sales of the Company decreased by 7.5% due to market conditions. The profit before tax decreased by 17% due to lower sales.

OUTLOOK

The economy is expected to grow at around 5% and the market conditions are tough in which the Company operates. The Company is taking steps to counter the adverse market situation and will do well subject to unforeseen conditions.

FIXED ASSETS

• Goodwill
• Land
• Building
• Plant and Machinery
• Office Equipments
• Furniture
• Vehicles

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 records 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.60.44
UK Pound	1	Rs.100.24
Euro	1	Rs.80.35

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	KAR
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.