MIRA INFORM REPORT

Report Date :

17.10.2014

IDENTIFICATION DETAILS

Name :	LANCER LASER TECH LIMITED (w.e.f. 29.04.2008)
Formerly Known As :	LANCER LASER TECH PRIVATE LIMITED
Registered Office :	Survey No. 143/P/2, Chhatral – Mehsana Highway Opposite. Sandek Laminations, Village Rajpur, Taluka Kadi – 382740, Gujarat
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	20.08.1999
Com. Reg. No.:	04-036446
Capital Investment / Paid-up Capital :	Rs. 49.900 Millions
CIN No.: [Company Identification No.]	U28930GL1999PLC036446
TAN No.: [Tax Deduction & Collection Account No.]	AHML00400B/ AHML00150D
PAN No.: [Permanent Account No.]	AAACL5061F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Machinery Parts and Sheet Metal Components.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 200000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating is constrained on account of company’s moderate financial risk profile and weak liquidity position of the company. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. 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 – 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

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating B
Rating Explanation	Risk Prone Credit Quality and Very High Credit Risk
Date	31.10.2013

Rating Agency Name	CRISIL
Rating	Short Term Rating A 4
Rating Explanation	Minimal Degree of Safety and Very High Credit Risk
Date	31.10.2013

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 31-03-2014.

INFORMATION DENIED BY

MANAGEMENT NON CO – OPRATIVE (02764-278801/ 02764-278802)

LOCATIONS

Registered Office/ Factory :	Survey No. 1434P/2, Chhatral-Mehsana, National Highway, Opposite Sandek Laminations, Village Rajpur, Taluka Kadi-382740, Gujarat, India
Tel. No.:	Not Available
Mobile No.:	91-9825065253 (Mr. Dhirajkumar Narshibhai Patel)
Fax No.:	Not Available
E-Mail :	info@lancerlaser.com bjt_asso@yahoo.co.in

DIRECTORS

As on 26.06.2014

Name :

Mr. Dhirajkumar Narshibhai Patel

Designation :

Director

Address :

20, Samruddhi 1 Bunglow, Opposite Saij Anand Bunglow, Shilaj Road, Thaltej, Ahmedabad-380054, Gujarat, India

Date of Birth/Age :

08.12.1973

Date of Appointment :

28.08.1999

DIN No.:

02136948

Name :

Mr. Dhyabhai Bechrdas Patel

Designation :

Director

Address :

66, Alok Bunglow, Drive in Road, Thaltej, Ahmedabad, Gujarat, India

Date of Birth/Age :

10.06.1952

Date of Appointment :

01.04.2009

DIN No.:

02558924

Name :

Mr. Harshadbhai Narsihbahi Patel

Designation :

Director

Address :

20, Samruddhi 1 Bunglow, Opposite Saij Anand Bunglow, Shilaj Road, Thaltej, Ahmedabad-380054, Gujarat, India

Date of Birth/Age :

02.10.1972

Date of Appointment :

03.02.2012

DIN No.:

02976597

Others 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	U74994GJ2006PTC048973	GEOMETRY METAL TECH PRIVATE LIMITED	Director	20/03/2010	20/03/2010	-	Active	NO
2	U28930GJ1999PLC036446	LANCER LASER TECH LIMITED	Director	3/2/2012	3/2/2012	-	Active	NO

Name :

Mr. Narshihbhai Bechardas Patel

Designation :

Director

Address :

20, Samruddhi 1 Bunglow, Opposite Saij Anand Bunglow, Shilaj Road, Thaltej, Ahmedabad-380054, Gujarat, India

Date of Birth/Age :

04.05.1948

Date of Appointment :

01.06.2012

DIN No.:

05291250

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.06.2014

Names of Shareholders	No. of Shares
Jashodaben N Patel	104000
Bhavanben N Patel	34544
Dhiraj N Patel	878056
Jagrutiben Patel	329743
Narshibhai B Patel	646796
Kailashben N Patel	98700
Sarojben D Patel	238303
Dahyabhai B Patel	335800
Hitesh D Patel	130000
Rashmiben D Patel	51000
Shubhadraben D Patel	456500
Mittal M Patel	30000
Dahyabhai B Patel HUF	475500
Dipesh D Patel	140000
Nitin M Patel HUF	49371
Dhiraj N Patel HUF	266820
Harshad N Patel	545867
Krishna H Patel	54500
Geometry Metal Tech Private Limited, India	60000
Narshibhai B Patel HUF	49000
Harshad N Patel HUF	15500
Total	4990000

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	01
Directors or relatives of Directors	99
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Machinery Parts and Sheet Metal Components.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

• Corporation Bank, Navrangpura Branch, Ahmedabad-380009, Gujarat, India
• Dena Bank, High Way Road Branch, Vijay Compound, Highway Road, Mehsana - 384002, Gujarat, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
From Bank	55.524	67.239
Loans and Advances From Related Parties and Others	13.201	14.520
SHORT TERM BORROWING
Cash Credit
From Bank Secured By Hypothecation of Stock Book Debts etc.	43.092	45.532
Loans and Advances From Related Parties and Others	14.313	14.049
Total	126.130	141.340

Banking Relations :	---
Auditors :
Name :	Bharat J.Trivedi and Associates Chartered Accountants
Address :	34, Raj Ratna Complex, Opposite Municipal School, Navrangpura, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-26426317
Fax No.	91-79-26445640
Email :	Bij_asso@yahoo.co.in
PAN No.:	AAKPT5888P
Associate concerns :	Geometry Metal Tech Private Limited Umiya Agro Industries

CAPITAL STRUCTURE

As on 31.03.2014

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
4990000	Equity Shares	Rs.10/- each	Rs.49.900 Millions

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
4990000	Equity Shares	Rs.10/- each	Rs.49.900 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4990000	Equity Shares	Rs.10/- each	Rs.49.900 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	49.900	49.900	49.900
(b) Reserves & Surplus	(0.481)	(5.456)	14.436
(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)	49.419	44.444	64.336
(3) Non-Current Liabilities
(a) long-term borrowings	103.257	108.271	101.761
(b) Deferred tax liabilities (Net)	21.709	20.259	12.381
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	124.966	128.530	114.142
(4) Current Liabilities
(a) Short term borrowings	57.404	59.594	44.092
(b) Trade payables	83.089	77.137	75.793
(c) Other current liabilities	0.000	0.000	0.000
(d) Short-term provisions	4.325	2.178	2.292
Total Current Liabilities (4)	144.818	138.909	122.177
TOTAL	319.203	311.883	300.655
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	181.255	203.928	201.414
(ii) Intangible Assets	3.419	4.174	3.955
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.839	1.677	0.000
(b) Non-current Investments	0.010	0.010	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	185.523	209.789	205.369
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	72.690	62.330	46.456
(c) Trade receivables	56.849	29.383	36.207
(d) Cash and cash equivalents	1.016	6.338	1.271
(e) Short-term loans and advances	2.614	3.508	8.918
(f) Other current assets	0.511	0.535	2.434
Total Current Assets	133.680	102.094	95.286
TOTAL	319.203	311.883	300.655

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	263.659	191.686	158.165
		Other Income	7.437	5.916	0.762
		TOTAL (A)	271.096	197.601	158.927
Less	EXPENSES
		Cost of Materials Consumed	186.889	140.586	105.236
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	8.960	(2.316)	(7.314)
		Employees benefits expense	13.976	13.970	18.876
		Other expenses	22.662	18.124	16.218
		Exceptional Items - Preliminary Expenses	0.000	0.074	0.048
		Exceptional Items
		Reverse Of Services Tax Credit Of P.Y	0.000	1.006	0.000
		Previous Year Adjustment	0.447	0.193	0.595
		Previous Year Loss On Sale Of assets	0.314	4.375	3.527
		TOTAL (B)	233.248	176.012	137.186
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		37.848	21.589	21.741
Less	FINANCIAL EXPENSES (D)		20.911	23.353	27.266
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		16.937	(1.763)	(5.525)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.514	10.180	9.276
	PROFIT BEFORE TAX (E-F) (G)		6.423	(11.943)	(14.801)
Less	TAX (H)		1.449	7.948	(1.467)
	PROFIT AFTER TAX (G-H) (I)		4.974	(19.891)	(13.334)
	EARNINGS IN FOREIGN CURRENCY
	Export Earnings		1.743	0.338	1.078
	TOTAL EARNINGS		1.743	0.338	1.078
	C I F VALUE OF IMPORTS		3.241	19.965	4.775
	Earnings Per Share (Rs.)		0.100	3.99	2.67

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	1.83	(10.07)	(8.39)
Net Profit Margin (PBT/Sales)	(%)	2.44	(6.23)	(9.36)
Return on Total Assets (PBT/Total Assets}	(%)	2.02	(3.85)	(4.92)
Return on Investment (ROI) (PBT/Networth)		0.13	(0.27)	(0.23)
Debt Equity Ratio (Total Debt /Networth)		3.25	3.78	2.27
Current Ratio (Current Asset/Current Liability)		0.92	0.73	0.78

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	49.900	49.900	49.900
Reserves & Surplus	14.436	(5.456)	(0.481)
Net worth	64.336	44.444	49.419
long-term borrowings	101.761	108.271	103.257
Short term borrowings	44.092	59.594	57.404
Total borrowings	145.853	167.865	160.661
Debt/Equity ratio	2.267	3.777	3.251

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	158.165	191.686	263.659
		21.194	37.547

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	158.165	191.686	263.659
Profit	(13.334)	(19.891)	4.974
	(8.43%)	(10.38%)	1.89%

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 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

Unsecured Loan	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWING
Loans and Advances From Related Parties and Others	29.531	21.511
Deposits for business	5.000	5.000
SHORT TERM BORROWING
Loans and Advances From Related Parties and Others	-	0.012
Total	34.531	26.523

FUTURE OUTLOOK

The company expects very good business in future with establishment of our newly product i.e. Agricultural Implants which got very good response from the market and acceptability of our product by end users with quality and competency.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10339455	02/06/2012 *	212,300,000.00	DENA BANK	HIGH WAY ROAD BRANCH, VIJAY COMPOUND, HIGHWAY ROAD, MEHSANA, GUJARAT - 384002, INDIA	B41565672
2	10311975	29/09/2011	212,300,000.00	DENA BANK	HIGH WAY ROAD BRANCH, VIJAY COMPOUND, HIGHWAY ROAD, MEHSANA, GUJARAT - 384002, INDIA	B23210552

* Date of charge modification

FIXED ASSETS

• Land
• Factory Building
• Plant and Machinery
• Electric Equipments
• Furniture and Fixture
• Computers
• Office Equipments
• Vehicles
• Computer 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.61.10
UK Pound	1	Rs.98.15
Euro	1	Rs.77.68

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	KRN
Report Prepared by :	ANU

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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		30

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.