MIRA INFORM REPORT

Report Date :

17.09.2014

IDENTIFICATION DETAILS

Name :	GEM FORGINGS PRIVATE LIMITED
Registered Office :	10/C, Middleton Row, 3rd Floor, Kolkata – 700071, West Bengal
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	05.01.1985
Com. Reg. No.:	21-038384
Capital Investment / Paid-up Capital :	Rs. 0.829 Million
CIN No.: [Company Identification No.]	U29252WB1985PTC038384
Legal Form :	Private Limited Liability Company
Line of Business :	Trader and Exporter of Industrial Forgings Precision CNC Medicines.
No. of Employees :	16 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Financial position of the company seems to be decent. Trade relations are reported to be 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

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 willfully 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.

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 PARTED BY

Name :	Mr. Mahavir Prasad Agrawal
Designation :	Accountant
Contact No.:	91-33-22177328
Date :	17.09.2014

LOCATIONS

Registered Office :	10/C, Middleton Row, 3rd Floor, Kolkata – 700071, West Bengal, India
Tel. No.:	91-33-22177328/ 29/ 30/ 31
Fax No.:	91-33-22177333/ 22469130
E-Mail :	gem.forgings@vsnl.com
Website :	http://www.gemforgings.com
Area :	4500 Sq. ft.
Location :	Owned

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Ajay Kumar Garg

Designation :

Director

Address :

1A, Outram Street, Kolkata – 700017, West Bengal, India

Date of Birth/Age :

28.02.1956

Date of Appointment :

15.11.1993

DIN No.:

00131362

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	U74899DL1983PTC015595	MANSAAROVER IRRIGATIONS PRIVATE LIMITED	Director	23/04/1983	23/04/1983	-	Active	NO
2	U29252WB1985PTC038384	GEM FORGINGS PRIVATE LIMITED	Director	15/11/1993	15/11/1993	-	Active	NO
3	U01409WB1996PTC077411	GEM ALLIED INDUSTRIES PRIVATE LIMITED	Director	19/02/1996	19/02/1996	01/10/2009	Active	NO
4	U74210WB1994PTC065024	VARDHAMAN GEARS PRIVATE LIMITED	Director	15/12/1998	15/12/1998	07/02/2011	Active	NO
5	U01132WB2001PLC162070	PARVATI TEA COMPANY LIMITED	Director	17/10/2001	17/10/2001	01/07/2010	Active	NO
6	U70101WB2006PTC109575	VISWAKARMA COMMERCIAL ENCLAVE PRIVATE LIMITED	Director	24/05/2006	24/05/2006	10/07/2008	Active	NO
7	U70101WB2006PTC110422	RAMNAGAR PROPERTIES PRIVATE LIMITED	Director	05/07/2006	05/07/2006	-	Active	NO
8	U74899DL1992PTC046956	SPLENDID BUILDERS PRIVATE LIMITED	Director	25/07/2006	25/07/2006	02/04/2009	Active	NO
9	U70102WB2010PTC153698	RAGHVI DEVELOPERS PRIVATE LIMITED	Director	30/09/2010	30/09/2010	-	Active	NO
10	U70109WB2012PTC180641	RAGHVI BUILDINGS PRIVATE LIMITED	Director	17/04/2012	17/04/2012	-	Active	NO

Name :

Mr. Shashi Garg

Designation :

Director

Address :

1A, Outram Street, Kolkata – 700017, West Bengal, India

Date of Birth/Age :

13.09.1956

Date of Appointment :

10.03.2001

DIN No.:

00131391

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	U65921WB1990PTC048190	PRASHANT LEASING & FINANCING PRIVATE LIMITED	Director	24/08/1992	24/08/1992	-	Active	NO
2	U29252WB1985PTC038384	GEM FORGINGS PRIVATE LIMITED	Director	10/03/2001	10/03/2001	-	Active	NO
3	L74899DL1994PLC059252	JINDAL LEASE FIN LIMITED	Director	25/07/2006	25/07/2006	-	Active	NO
4	U70102WB2010PTC153698	RAGHVI DEVELOPERS PRIVATE LIMITED	Director	30/09/2010	30/09/2010	-	Active	NO
5	U70109WB2012PTC180729	RAGHVI PROJECTS PRIVATE LIMITED	Director	18/04/2012	18/04/2012	-	Active	NO
6	U67120DL1996PTC079952	LUMAX CAPLEASE PRIVATE LIMITED	Additional director	30/10/2013	30/10/2013	28/03/2014	Active	NO

KEY EXECUTIVES

Name :	Mr. Mahavir Prasad Agrawal
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Names of Shareholders	No. of Shares	Percentage of Holding
Hari Charan Garg	10100	12.18
Sanjay Kumar Garg	3600	4.34
Shashi Garg	19000	22.92
Shalini Garg	4000	4.83
Ajay Kumar Garg	38500	46.44
Ajay Kumar Garg [HUF]	5000	6.03
Swati Garg	2700	3.26
Total	82900	100.00

AS ON 30.09.2013

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader and Exporter of Industrial Forgings Precision CNC Medicines.
Exports :
Products :	Industrial Forgings Precision CNC Medicines
Countries :	· UK Germany Vietnam Kenya Sri Lanka
Terms :
Selling :	Cash and Credit [30 Days]
Purchasing :	Cash and Credit [30 Days]

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

16 (Approximately)

Bankers :

· Vijaya Bank

Overseas Branch, 125/1 Park Street, Kolkata – 700017, West Bengal, India

· Deutsche Bank

Axis Bank Limited

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Term Loans from Bank From Deutsche Bank	12.825	11.749
From Axis Bank	0.226	1.301
SHORT TERM BORROWINGS
Packing Credit From Vijaya Bank	10.000	9.255
Total	23.051	22.305

Banking Relations :	--
Auditors :
Name :	Rustagi and Company Chartered Accountants
Address :	19, R.N. Mukherjee Road, Eastern Building,1st Floor, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-22480823/ 0856
Fax No.:	91-33-22430746
Enterprises owned or significantly influenced by key management personnel or their relatives :	· Gorang Engineers and Fabricators Private Limited Prashant Leasing and Finance Private Limited Raghvi Buildings Private Limited Raghvi Realtys Private Limited Raghvi Developers Private Limited Gem Allied and Industries Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
100,000	Equity Shares	Rs. 10/- each	Rs. 1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
82,900	Equity Shares	Rs. 10/- each	Rs. 0.829 Million

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	0.829	0.829	0.829
(b) Reserves & Surplus	57.993	55.073	52.090
(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)	58.822	55.902	52.919
(3) Non-Current Liabilities
(a) long-term borrowings	131.887	152.564	12.405
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	81.631
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	131.887	152.564	94.036
(4) Current Liabilities
(a) Short term borrowings	10.000	9.255	9.500
(b) Trade payables	32.768	35.575	38.321
(c) Other current liabilities	4.325	10.009	8.560
(d) Short-term provisions	0.644	0.599	1.472
Total Current Liabilities (4)	47.737	55.438	57.853
TOTAL	238.446	263.904	204.808
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	7.664	8.833	5.760
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	54.192	53.049	51.074
(c) Deferred tax assets (net)	0.689	0.558	0.413
(d) Long-term Loan and Advances	3.760	41.676	6.263
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	66.305	104.116	63.510
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	0.714	0.275	2.919
(c) Trade receivables	111.484	108.926	89.245
(d) Cash and cash equivalents	56.495	43.694	41.452
(e) Short-term loans and advances	3.448	6.893	7.682
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	172.141	159.788	141.298
TOTAL	238.446	263.904	204.808

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from Operations [Gross]	243.511	278.955	327.593
		Other Income	6.215	4.849	2.114
		TOTAL (A)	249.726	283.804	329.707
Less	EXPENSES
		Purchases of Traded goods	150.193	192.337	272.520
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(0.439)	2.644	(1.654)
		Direct expense	3.263	2.151	5.659
		Employees benefits expense	4.804	3.959	3.335
		Other expenses	70.795	58.838	35.590
		TOTAL (B)	228.616	259.929	315.450
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		21.110	23.875	14.257
Less	FINANCIAL EXPENSES (D)		15.132	17.684	8.509
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5.978	6.191	5.748
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.175	1.383	0.462
	PROFIT BEFORE TAX (E-F) (G)		4.803	4.808	5.286
Less	TAX (H)		1.689	1.632	2.072
	PROFIT AFTER TAX (G-H) (I)		3.114	3.176	3.214
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	229.946	251.900	255.202
	Earnings Per Share (Rs.)		37.56	38.31	38.77

Particulars	31.03.2014
Sales Turnover (Approximately)	150.000 [Due to less orders]

Expected Sales (2014-2015): Rs. 200.000 Millions

The above information has been parted by Mr. Mahavir Prasad Agrawal [Accountant]

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.25	1.12	0.97
Net Profit Margin (PBT/Sales)	(%)	1.97	1.72	1.61
Return on Total Assets (PBT/Total Assets}	(%)	2.62	2.29	3.45
Return on Investment (ROI) (PBT/Networth)		0.08	0.09	0.10
Debt Equity Ratio (Total Debt/Networth)		2.41	2.89	0.41
Current Ratio (Current Asset/Current Liability)		3.61	2.88	2.44

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particulars	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	0.829	0.829	0.829
Reserves & Surplus	52.090	55.073	57.993
Net worth	52.919	55.902	58.822
Long-term borrowings	12.405	152.564	131.887
Short term borrowings	9.500	9.255	10.000
Total borrowings	21.905	161.819	141.887
Debt/Equity ratio	0.414	2.895	2.412

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)
Revenue from operations [Gross]	327.593	278.955	243.511
		(14.847)	(12.706)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from operations [Gross]	327.593	278.955	243.511
Profit	3.214	3.176	3.114
	0.98%	1.14%	1.28%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
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	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10142446	01/12/2008	17,150,000.00	DEUTSCHE BANK AG	9, SHAKESPEARE SARANI, KOLKATA, WEST BENGAL - 700071, INDIA	A54154588
2	90255936	13/08/2014 *	18,500,000.00	VIJAYA BANK	OVERSEAS BRANCH, 125/1 PARK STREET, KOLKATA, WEST BENGAL - 700017, INDIA	C19998632

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
From Related parties	12.770	83.676
From Others	106.066	55.838
Total	118.836	139.514

CHANGE OF ADDRESS:

The Registered Office of the company has been shifted from 13, Brabourine Road, Kolkata – 700001, West Bengal, India to the present address w.e.f.01.11.2008.

FIXED ASSETS:

· Land

Computer

Fax Machine

Furniture and Fixture

Office Equipment

Franking Machine

Attendance machine

Water Cooler

Vehicle

Office Space

Air Conditioner

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. 99.05
Euro	1	Rs. 79.03

INFORMATION DETAILS

Information Gathered by :	JML
Analysis Done by :	RAS
Report Prepared by :	BVA

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	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		51

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.