MIRA INFORM REPORT

Report Date :

27.01.2014

IDENTIFICATION DETAILS

Name :	JAI PARVATI FORGE LIMITED
Registered Office :	5059/GF, MHC Manimajra Chandigarh, Chandigarh – 160 101
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	23.01.2004
Com. Reg. No.:	53-026751
Capital Investment / Paid-up Capital :	Rs.49.000 Millions
CIN No.: [Company Identification No.]	U28910CH2004PLC026751
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Automotive Parts.
No. of Employees :	402 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 890000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The management has seen a dip in its sales revenue during 2013. However, the financial profile appears to be decent. Trade relations are fair. Business is active. Payment terms are reported as usually correct. In view of extensive experience of the promoters, the subject 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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

India was ranked 94^th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating=BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	13.02.2013

Rating Agency Name	CRISIL
Rating	Short Term Rating=A3+
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	13.02.2013

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. Satish Choudhary
Designation :	Marketing Manager
Contact No.:	91-9216363609
Date :	23.01.2014

LOCATIONS

Registered Office :	5059/GF, MHC Manimajra Chandigarh, Chandigarh – 160 101, India
Tel. No.:	91-1762-285100 / 285101 / 285221
Mobile No.:	91-9216363609 (Mr. Satish Choudhary)
Fax No.:	91-1762-285100
E-Mail :	info@jaiparvatiforge.com ajaykcs@gmail.com
Website :	www.jaiparvatiforge.com
Location :	Owned
Factory :	Village Bhagwanpur, Barwala Road, Near Der Spinners, Derabassi, Patiyala – 134 112, District Mohali, Punjab, India
Location :	Owned

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Sahebder Singh Chauhan

Designation :

Managing Director

Address :

# 72, Sector 4, Panchkula, Haryana, India

Date of Birth/Age :

01.07.1965

Date of Appointment :

23.01.2004

DIN No.:

01723352

Name :

Mrs. Suman Chauhan

Designation :

Director

Address :

# 72, Sector 4, Panchkula, Haryana, India

Date of Birth/Age :

20.03.1969

Date of Appointment :

23.01.2004

DIN No.:

01611441

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	U55200CH2003PTC026355	JAI PARVATI RESTAURANTS PRIVATE LIMITED	Director	09/09/2003	09/09/2003	Active	NO
2	U28910CH2004PLC026751	JAI PARVATI FORGE LIMITED	Director	23/01/2004	23/01/2004	Active	NO

Name :

Mr. Vineet Chauhan

Designation :

Whole-time Director

Address :

# 72, Sector 4, Panchkula, Haryana, India

Date of Birth/Age :

08.09.1985

Date of Appointment :

16.03.2007

DIN No.:

01635995

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	U55200CH2003PTC026355	JAI PARVATI RESTAURANTS PRIVATE LIMITED	Director	09/09/2003	09/09/2003	Active	NO
2	U28910CH2004PLC026751	JAI PARVATI FORGE LIMITED	Whole-time director	01/04/2010	16/03/2007	Active	NO

KEY EXECUTIVES

Name :	Mr. Satish Choudhary
Designation :	Marketing Manager

MAJOR SHAREHOLDERS

AS ON 30.09.2013

Names of Shareholders	No. of Shares
S. S. Chauhan	2410820
Suman Chauhan	1551380
Amit Kumar	13000
Anuditya Kadiyan	20000
Bina Devi	16000
Jaivir Singh	80000
Murti Devi	24000
Om Pal Singh	30000
Parvendra Singh	70000
Raghubir Singh	80000
Ran Singh	30000
Ranbeer Singh	9000
Subey Singh	265000
Shyam Singh	100000
Vineet Chauhan	110800
Dharmender Singh	30000
Harendra Singh	60000
Total	4900000

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2013

Category	Percentage
Directors or relatives of Directors	96.49
Other top fifty shareholders	3.51
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Automotive Parts.
Exports :
Products :	Finished Goods
Countries :	Italy
Terms :
Selling :	L/C and Credit
Purchasing :	L/C and Credit

GENERAL INFORMATION

Suppliers :

Aarti Steel Limited

Customers :

Others, Manufacturer

· Bharat Gear Limited

· Dana Spicer

· Indian Railway

· Defence India

· Ashok Leyland

· Mahindra and Mahindra

· Mahindra Sar Transmissions

· New Holland Tractors

· New Allenberry Works

· Graziano Transmissioni SPA

· Swaraj Enterprises

· Mahindra Gujarat Tractors

· International Tractors Limited

No. of Employees :

402 (Approximately)

Bankers :

· Punjab National Bank, Chandigarh, India

· Canara Bank, SCO 255-256, Sector 44-C, Chandigarh – 160 047, Chandigarh, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
From Banks Indian Rupee Loan (I)	25.256	26.410
Loans from others (II and III)	14.435	25.773
Short Term Borrowings
Working Capital Loans
From Banks
Rupee Loans	143.492	101.866
Total	183.183	154.049

NOTES:

Long Term Borrowings:

· Term loan from Canara Bank is secured by way of equitable mortgage of land and building, hypothecation of plant and machinery and other fixed assets of the company. The same is further secured by personal guarantee of Directors.

· Term loan from Tata Capital Limited is secured by machinery financed under their equipment finance scheme. The same is further secured by personal guarantee of Directors.

· Vehicle loans are secured by way of hypothecation of respective vehicles.

Maturity profile of secured term loans are =set out as below:

Maturity Profile	1-2 Years	2-3 Years	3-4 Years	Beyond 4 Years
Term loans From Banks	15.100	4.680	4.680	0.796
Term loans From others	8.294	6.059	0.082	0.000
Total	23.394	10.739	4.762	0.796

Short Term Borrowings

Working capital facilities are secured by way of first charge on current assets both present and future and additionally secured by second s=charge on all fixed assets and also by personal guarantee of directors.

Banking Relations :	--
Financial Institutions :	Tata Capital Limited, One Forbes, Dr. V B Gandhi Marg, Fort, Mumbai – 400 001, Maharashtra, India
Auditors :
Name :	Ravinder K. Sharma and Company Chartered Accountants
Associate :	D. S. Engineers

CAPITAL STRUCTURE

AS ON 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs. 10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4900000	Equity Shares	Rs. 10/- each	Rs.49.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	49.000	49.000	49.000
(b) Reserves & Surplus	173.811	139.402	96.211
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	222.811	188.402	145.211
(3) Non-Current Liabilities
(a) long-term borrowings	76.691	89.183	77.004
(b) Deferred tax liabilities (Net)	17.885	13.430	8.329
(c) Other long term liabilities	1.571	0.870	0.716
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	96.147	103.483	86.049
(4) Current Liabilities
(a) Short term borrowings	143.492	101.866	103.920
(b) Trade payables	138.679	112.312	69.384
(c) Other current liabilities	35.259	36.982	32.365
(d) Short-term provisions	9.394	5.298	7.383
Total Current Liabilities (4)	326.824	256.458	213.052
TOTAL	645.782	548.343	444.312
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	274.050	240.596	186.477
(ii) Intangible Assets	0.085	0.107	0.069
(iii) Capital work-in-progress	0.964	2.317	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.100	0.100	0.100
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	3.870	4.980	3.870
(e) Other Non-current assets	0.000	0.000	0.018
Total Non-Current Assets	279.069	248.100	190.534
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	172.368	129.467	98.655
(c) Trade receivables	180.468	155.556	130.540
(d) Cash and cash equivalents	2.155	2.057	8.682
(e) Short-term loans and advances	11.722	13.163	15.901
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	366.713	300.243	253.778
TOTAL	645.782	548.343	444.312

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013	31.03.2012	31.03.2011
	SALES
		Income		793.342	869.477	622.042
		Other Income		2.853	2.530	1.105
		TOTAL (A)		796.195	872.007	623.147
Less	EXPENSES
		Cost of Materials Consumed		504.857	558.399	393.177
		Changes in Inventories of finished goods, Semi-Finished Goods and stock-in-trade		(49.009)	(26.185)	(22.615)
		Employee Benefits Expenses		37.937	32.238	20.488
		Other Expenses		192.637	188.979	137.542
		TOTAL (B)		686.422	753.431	528.592
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			109.773	118.576	94.555
Less	FINANCIAL EXPENSES (D)			36.101	35.346	26.132
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			73.672	83.230	68.423
Less	DEPRECIATION/ AMORTISATION (F)			22.266	18.785	20.446
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			51.406	64.445	47.977
Less	TAX (H)			16.997	21.255	15.599
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			34.409	43.190	32.378
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			39.401	21.211	3.833
Less	APPROPRIATIONS
			General Reserve	NA	25.000	15.000
	BALANCE CARRIED TO THE B/S			NA	39.401	21.211
	EARNINGS IN FOREIGN CURRENCY			9.154	13.292	2.422
	IMPORTS
			Capital Goods	17.087	13.610	NIL
	TOTAL IMPORTS			17.087	13.610	NIL
	Earnings Per Share (Rs.)			7.02	8.81	6.61

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	4.32	4.95	5.20
Net Profit Margin (PBT/Sales)	(%)	6.48	7.41	7.71
Return on Total Assets (PBT/Total Assets}	(%)	7.97	11.80	10.80
Return on Investment (ROI) (PBT/Networth)		0.23	0.34	0.33
Debt Equity Ratio (Total Debt /Networth)		0.99	1.01	1.25
Current Ratio (Current Asset/Current Liability)		1.12	1.17	1.19

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	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	Yes
18]	Major customers	Yes
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

NOTE: Registered office address of the company has been shifted from SCO 42-43, Sector 9-D, Chandigarh – 160 017, India to the present address w.e.f. 19.06.2010

PERFORMANCE REVIEW:

During the year, subject has achieved total income of Rs.796.195 Millions. Due to slow down mainly in automobile sector, there is decline in turnover by 8.69%. However despite sluggishness in the market, subject has improved, its operating margins due to better realization on account of higher value addition. The performance of subject is better than the average performance of the industry. During the year, subject has further added state of the art CNC machines to strengthen its machining division. In the current challenging scenario subject have taken many initiatives to control costs in major areas i.e. raw material and energy consumption to gain competitive edge over its competitors.

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Loans from Directors	37.000	37.000
Total	37.000	37.000

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10436075	16/05/2013	20,000,000.00	CANARA BANK	SCO 255-256, SECTOR 44-C, CHANDIGARH, CHANDIGARH - 160047, INDIA	B79284857
2	10321710	19/10/2011	27,673,445.00	TATA CAPITAL LIMITED	ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI - 400001, MAHARASHTRA, INDIA	B27173590
3	10195229	17/12/2009	5,000,000.00	TATA CAPITAL LIMITED	ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI - 400001, MAHARASHTRA, INDIA	A77015253
4	10180221	10/10/2009	334,000.00	CANARA BANK	SECTOR 44C, CHANDIGARH, CHANDIGARH - 160047, INDIA	A71307961
5	80009941	18/02/2013 *	339,500,000.00	CANARA BANK	SCO 255-256, SECTOR-44C, CHANDIGARH, CHANDIGARH - 160047, INDIA	B72058084

* Date of charge modification

FIXED ASSETS:

· Land

· Factory Building

· Administrative Building

· Plant and Machinery

· Die Blocks

· Lab Equipments

· Electrical Fittings

· Office Equipments

· Furniture and Fixture

· Motor Cars

· Motor Busses / Trucks

· Computers

· 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.62.18
UK Pound	1	Rs.103.38
Euro	1	Rs.85.09

INFORMATION DETAILS

Information Gathered by :	HTL
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
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	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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.