MIRA INFORM REPORT

Report No. :	320207
Report Date :	29.04.2015

IDENTIFICATION DETAILS

Name :	PRECISION CAMSHAFTS LIMITED
Formerly Known As :	PRECISION CAMSHAFTS PRIVATE LIMITED
Registered Office :	E 102/103, MIDC, Akkalkot Road, Solapur – 413006, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	08.06.1992
Com. Reg. No.:	11-067126
Capital Investment / Paid-up Capital :	Rs. 40.921 Million
CIN No.: [Company Identification No.]	U24231PN1992PLC067126
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCP1086B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Seller of Camshaft Castings and Machined Camshafts to the Auto Industry and the Railways.
No. of Employees :	Not Divulged

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating reflects company sound financial risk profile marked by healthy reserves position and decent and profitability of the company. Trade relations are reported as fair. Business is active. Payments terms are reported to be usually correct. The company can be considered normal 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term Bank facilities = BBB+
Rating Explanation	Moderate degree of safety it carry moderate credit risk.
Date	December 22, 2014

Rating Agency Name	CARE
Rating	Short term Bank facilities = A3+
Rating Explanation	Moderate degree of safety it carry higher credit risk.
Date	December 22, 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 BY

MANAGEMENT NON CO-OPERATIVE

LOCATIONS

Registered Office :	E 102/103, MIDC, Akkalkot Road, Solapur – 413006, Maharashtra, India
Tel. No.:	91-217-3295433/ 34/ 35
Fax No.:	91-217-2653398
E-Mail :	info@pclindia.in
Website :	http://www.pclindia.in http://pclindia.dinpl.com
Export Oriented Unit :	D 5, MIDC, Chincholikati, District Solapur - 413255, Maharashtra, India
Tel. No.:	91-217-3295430/ 31/ 32
Fax No.:	91-217-2357641
E-Mail :	info@pclindia.dinpl.com
Factories :	1) E 90, M. I. D. C., Akkalkot Road, Solapur – 413006, Maharashtra, India 2) E 102/103, M. I. D. C., Akkalkot Road, Solapur – 413006, Maharashtra, India 3) D 5, MIDC Chincholi, Solapur – 413255, Maharashtra, India (EOU Division) 4) D 6, D 7, D 7-1 MIDC, Chincholi, Solapur – 413255, Maharashtra, India (EOU Division)

DIRECTORS

AS ON 30.09.2013

Name :	Mr. Yatin Subhash Shah
Designation :	Managing director
Address :	51, Sarvodaya Housing Society, Hotgi Road, Solapur - 413003, Maharashtra, India
Date of Birth/Age :	26.10.1961
Qualification :	B. Com and MBA
Date of Appointment :	01.04.2012
PAN No.:	ACJPS2375P
Voter ID No.:	MT/37/216/372439
DIN No.:	00318140
Name :	Mr. Jayant Vasudeo Aradhye
Designation :	Director
Address :	Omkar, 8389/2B, Railway Lines,, Solapur - 413001, Maharashtra, India
Date of Birth/Age :	07.06.1941
Date of Appointment :	09.12.2006
PAN No.:	AAPPA8903M
DIN No.:	00409341
Name :	Mr. Ravindra Rangnath Joshi
Designation :	Whole-time director
Address :	17 Model Colony, Jule Solapur, Solapur - 413004, Maharashtra, India
Date of Birth/Age :	04.10.1964
Qualification :	B. Com and MBA
Date of Appointment :	01.04.2014
PAN No.:	AAPPJ3714K
DIN No.:	03338134
Name :	Mrs. Suhasini Yatin Shah
Designation :	Whole-time director
Address :	51 Sarvodaya Housing Society, Hotgi Road, Solapur - 413003, Maharashtra, India
Date of Birth/Age :	17.08.1965
Qualification :	MBBS
Date of Appointment :	01.04.2014
PAN No.:	ADQPS7357B
DIN No.:	02168705
Name :	Mr. Sarvesh Nandlal Joshi
Designation :	Director
Address :	S. No.26. Flat No.12 Harinandan Bunglow, 9th Lane Dahanukar Colony Kothrud, Pune - 411029, Maharashtra, India
Date of Birth/Age :	15.06.1960
Date of Appointment :	30.09.2013
DIN No.:	03264981

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Names of Shareholders	No. of Shares
Yatin Subhash Shah	62972
Manjiri Vinayak Chitale	1460
Suhasini Yatin Shah	20966
Yatin Subhash Shah joint with Suhasini Yatin Shah	56000
Karan Yatin Shah	10
Tanvi Yatin Shah	10
Vinayak Chitale	200
Maneesh Jayant Aradhye	8179
Sunita Jayant Aradhye	4085
Jayant Vasudeo Aradhye	56010
Rama Maneesh Aradhye	3480
Arvind Ganesh Chitale	11520
Vijay Vasudeo Aradhye	1000
Cams Technology Limited, India	80394
Yashwant Shankar Kelkar	1000
Anil Wamanrao Mansabdar	1200
Kedar Vijay Aradhye	148
Mahendra Mohan Deosthali	287
Sudhanshu Gangadhar Joshi	287
Total	309208

AS ON 27.02.2014

Names of Allottees	No. of Shares
Yatin Subhash Shah	50000
Suhasini Yatin Shah	33600
Achyut Vasudeo Aradhye	1750
Ajitkumar Jugraj Jain	1750
Rajkumar Krishnath Kashid	1750
Madhav Ganpatrao Valase	1750
Deepak Prabhakar Kulkarni	1200
Kirti Raviprakash Mengar	900
Pradeep Madhukar Mahindraker	1000
Shivram Bhalchandra Ghamekar	900
Sanjeev Nagnath Malvadkar	900
Rajesh Ratankar Gade	900
Chindanand Shankar Mundodgi	800
Amol Pradeep Pansare	800
Satyavijay Dattatraya Baraskar	500
Sidharam Gurupaddapa Ujlambe	500
Maithali Mangesh Deshmukh	500
Aarohi Devendra Deosthali	500
Total	100000

AS ON 30.09.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	26.00
Directors or relatives of directors	73.00
Other top fifty shareholders	1.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Seller of Camshaft Castings and Machined Camshafts to the Auto Industry and the Railways.
Products:	Chilled Cast Iron Straight Hollow Profiled Hollow Trilobe Camshafts etc.
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :	Not Available

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Available
Name of the Person (Designation):	Not Available
Contact Number:	Not Available
Since how long known:	Not Available
Maximum limit dealt:	Not Available
Experience:	Not Available
Remark	Not Available

Customers :

Reference:	Not Available
Name of the Person (Designation):	Not Available
Contact Number:	Not Available
Since how long known:	Not Available
Maximum limit dealt:	Not Available
Experience:	Not Available
Remark	Not Available

· Ford

· BMW

· Hyundai

· Maruti Suzuki

· Escorts

· Tata

· Mahindra

· Eicher

· Force

No. of Employees :

Not Divulged

Bankers :

Bank Name:	Not Available
Branch:	Not Available
Person Name (with Designation):	Not Available
Contact Number:	Not Available
Name of Account Holder:	Not Available
Account Number:	Not Available
Account Since (Date/ Year of A/c Opening):	Not Available
Average Balance Maintained (Optional):	Not Available
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Available
Account Operation:	Not Available
Remarks: Not Available

· Bank of India

Pune Mid Corporate Branch, 1162/6 Shivaji Nagar Pune University Road, Pune - 411005, Maharashtra, India

· Bank of Baroda

Solapur Main Branch, Chati Galli, Branch, Solapur, Maharashtra, India

· Bank of India

Malad West Branch, S V Road, Opposite Nataraj Market, Malad West, Mumbai - 400064, Maharashtra, India

· Bank of India

Subhash Chowk Branch, 142, Murarji Peth, Solapur - 413001, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Rupee term loans from banks	0.000	103.384
Foreign currency term loans from banks	1244.242	1152.239
Deposits	3.100	32.900
SHORT TERM BORROWINGS
Rupee term loans from banks	475.908	196.715
Working capital loans from banks	46.204	46.887
Total	1769.454	1532.125

Auditors :
Name :	S R B C and Company LLP Chartered Accountants
Address :	C, 401, 4^Th Floor, Panchshil Tech, Park, Yerwada, Pune, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	ABSFS4151K
Subsidiary company :	PCL (Shanghai) Co. Limited
Joint venture :	Ningbo Shenglong PCL Camshaft Co Limited
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· Kimaya Constructions Private Limited [U45202PN2001PTC016493] · PCL Shenglong (huzhou) Specialized Casting Co Limited
Other Related Parties :	· Tata Capital Limited [U65990MH1991PLC060670] · Cams Technology Limited [U29253PN2013PLC147682]

CAPITAL STRUCTURE

AFTER 30.09.2014

Authorised Capital : Rs. 1000.000 Million

Issued, Subscribed & Paid-up Capital : Rs. 818.416 Million

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
775,000	Equity Shares	Rs. 100/- each	Rs. 77.500 Million
2,125,000	Preference Shares	Rs. 100/- each	Rs. 212.500 Million
	Total		Rs. 290.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
409,208	Equity Shares	Rs. 100/- each	Rs. 40.921 Million

FINANCIAL DATA

[all figures are in Rupees Million]

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	40.921	30.921	30.921
(b) Reserves & Surplus	1711.450	1073.370	828.341
(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)	1752.371	1104.291	859.262
(3) Non-Current Liabilities
(a) Long-term borrowings	1247.342	1288.523	1422.419
(b) Deferred tax liabilities (Net)	149.140	115.661	66.924
(c) Other long term liabilities	0.000	7.378	0.000
(d) long-term provisions	0.000	3.241	8.774
Total Non-current Liabilities (3)	1396.482	1414.803	1498.117
(4) Current Liabilities
(a) Short term borrowings	522.112	243.602	154.224
(b) Trade payables	588.132	559.368	338.935
(c) Other current liabilities	645.980	567.978	497.775
(d) Short-term provisions	101.299	47.469	20.507
Total Current Liabilities (4)	1857.523	1418.417	1011.441
TOTAL	5006.376	3937.511	3368.820
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2224.163	1984.183	1035.330
(ii) Intangible Assets	2.002	4.930	0.425
(iii) Capital work-in-progress	3.485	222.804	517.795
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	733.479	31.391	6.988
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	59.093	93.299	159.972
(e) Other Non-current assets	27.909	27.706	49.809
Total Non-Current Assets	3050.131	2364.313	1770.319
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	411.349	362.851	201.347
(c) Trade receivables	1124.661	836.766	561.495
(d) Cash and cash equivalents	267.162	249.763	774.086
(e) Short-term loans and advances	135.641	103.646	46.020
(f) Other current assets	17.432	20.172	15.553
Total Current Assets	1956.245	1573.198	1598.501
TOTAL	5006.376	3937.511	3368.820

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from Operations	4594.694	3566.952	3029.476
		Other Income	123.596	88.994	85.140
		TOTAL (A)	4718.290	3655.946	3114.616
Less	EXPENSES
		Cost of Materials Consumed	1520.023	1487.841	1224.981
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(29.403)	(140.149)	(4.680)
		Employees benefits expense	971.558	387.833	304.127
		Other expenses	1349.445	1250.435	1078.723
		TOTAL (B)	3811.623	2985.960	2603.151
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		906.667	669.986	511.465
Less	FINANCIAL EXPENSES (D)		120.941	105.221	105.120
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		785.726	564.765	406.345
Less/ Add	DEPRECIATION/ AMORTISATION (F)		272.608	189.352	120.441
	PROFIT BEFORE TAX (E-F) (G)		513.118	375.413	285.904
Less	TAX (H)		214.315	126.767	93.808
	PROFIT AFTER TAX (G-H) (I)		298.803	248.646	192.096
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		746.954	501.925	313.423
Less	APPROPRIATIONS
		Proposed Dividend	3.182	3.092	3.092
		Tax on Dividend	0.541	0.525	0.502
	BALANCE CARRIED TO THE B/S		1042.034	746.954	501.925
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. value of exports	3334.996	2442.213	2007.516
	IMPORTS
		Raw Materials	17.503	9.219	12.513
		Components and spare parts	33.110	29.015	10.623
		Capital Goods	22.704	328.105	158.517
	TOTAL IMPORTS		73.317	366.339	181.653
	Earnings Per Share (Rs.)		730.20	804.14	621.25

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	6.50	6.97	6.34
Operating Profit Margin (PBDIT/Sales)	(%)	19.73	18.78	16.88
Return on Total Assets (PBT/Total Assets}	(%)	12.02	10.19	10.05
Return on Investment (ROI) (PBT/Networth)		0.29	0.34	0.33
Debt Equity Ratio (Total Debt/Networth)		1.01	1.39	1.83
Current Ratio (Current Asset/Current Liability)		1.05	1.11	1.58

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	30.921	30.921	40.921
Reserves & Surplus	828.341	1073.37	1711.45
Net worth	859.262	1104.291	1752.371
long-term borrowings	1422.419	1288.523	1247.342
Short term borrowings	154.224	243.602	522.112
Total borrowings	1576.643	1532.125	1769.454
Debt/Equity ratio	1.835	1.387	1.010

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	3029.476	3566.952	4594.694
		17.742	28.813

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	3029.476	3566.952	4594.694
Profit	192.096	248.646	298.803
	6.34%	6.97%	6.50%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS:

Particulars	31.03.2014	31.03.2013	31.03.2012
	(Rs. In Million)
Current maturities of long-term debt	374.288	234.570	220.494
Total	374.288	234.570	220.494

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	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	Yes
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10313835	05/10/2011	7,990,000.00	BANK OF BARODA	CHATTI GALLI, P. O. BOX NO. 101, SOLAPUR, MAHARAS  HTRA - 413002, INDIA	B23790090
2	10308368	26/09/2013 *	1,200,000,000.00	BANK OF INDIA AND BANK OF BARODA	PUNE MID CORPORATE BRANCH, 1162/6 SHIVAJI NAGAR P  UNE UNIVERSITY ROAD, PUNE, MAHARASHTRA - 411005, INDIA	B87766952
3	10280772	29/03/2011	25,100,000.00	BANK OF BARODA	CHATTI GALLI, P. O. BOX NO. 101, SOLAPUR, MAHARAS  HTRA - 413002, INDIA	B10752905
4	10248311	01/11/2010	19,500,000.00	BANK OF BARODA	CHATI GALLI, POST BOX NO. 101, SOLAPUR, MAHARASHTRA - 413002, INDIA	A97945489
5	10242672	08/09/2010	16,000,000.00	BANK OF BADODA	CHATTI GALLI,, P. O. BOX NO.101,, SOLAPUR, MAHARA  SHTRA - 413002, INDIA	A95444758
6	10227356	14/06/2010	29,100,000.00	BANK OF BARODA	SOLAPUR MAIN BRANCH, CHATTI GALI,, P.O.BOX NO. 101,, SOLAPUR, MAHARASHTRA - 413002, INDIA	A88998992
7	10227404	14/06/2010	92,600,000.00	BANK OF INDIA	MALAD (WEST) BRANCH, SWAMI VIVEKANAND ROAD,, POST  BOX NO. 7603,, MUMBAI, MAHARASHTRA - 400064, INDIA	A89000210
8	10227407	14/06/2010	150,000,000.00	BANK OF INDIA	MALAD (WEST) BRANCH, SWAMI VIVEKANAND ROAD,, POST  BOX NO. 7603,, MUMBAI, MAHARASHTRA - 400064, INDIA	A89000988

* Date of charge modification

CORPORATE INFORMATION

The company is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company is primarily engaged in the manufacture and sale of camshaft castings and machined camshafts to the Auto industry and the Railways.

FINANCIAL RESULTS

The turnover of the company grew by 29.06% over the last financial year and the profitability before tax as percentage of turnover increased from 10.26 % for the last financial year to 10.87 % for the current year.

This increased profitability was mainly due to better utilization of capacity in the new foundry and machine shop, improved operational controls, strict control on raw material cost and also because of the depreciating Rupee.

Purchase of raw material saw upward trend in some materials including electricity while downward in some. There was an overall saving due to proper inventory management.

OPERATIONS

PCL EOU Division

The productivity was increased in the foundry division due to improved operational controls. Better utilization of plant capacity in the newly started Foundry No. 4 resulted in higher production of camshafts, from about 54000 castings per month in 2012-13 to 180000 castings per month in the year 2013-14.

Foundry No. 2 is being modified and will be used for manufacturing Ductile Iron induction hardened camshafts. The trial production of this variety of camshafts has been approved by Toyota and Ford. The serial production of camshafts using the said technology will start in 2016.

Total sales from EOU division increased by 23 % from Rs. 305.01 Crores in 2012-13 to Rs. 3941.500 Million in the year2013-14. Export sales increased by 26% while domestic sales increased by 8 %.

Total Camshafts sold in 2012-13 were 70, 88, 803 in numbers while that in 2013-14 were 78, 31, 699 in numbers.

About 13new varieties of Camshafts were developed during the year 2013-2014 for Mahindra, Ford India, Ford VEP, VM Motori, Maruti Suzuki and Toyota. These would translate into sizeable addition to the annual sales from next financial year onwards.

Machine shop at the EOU

The production capacity at the machine shop was further increased from 125000 per month to 137500 per month by adding a machining line for GM Korea. The total number of camshafts sold during the year from EOU machine shop decreased by about 1% due to reduced demand of some products. However the sale value increased due to more value added parts under export and as an effect of piece price compensation. Sales from Machine shop increase d by about 19 % from Rs. 787.500 Million in 2012-13 to Rs. 942.400 Million in the year 2013-14. This sale forms part of the sales from the EOU division.

PCL Unit I and Unit II at MIDC Akkalkot Road, Solapur

There was a marginal decrease in the sales in the foundry division (PCL Unit II) as compared to the last financial year. Sales to Machine shop decreased due to shifting of production of certain parts to the EOU division. Total sale from PCL unit I and II amounted to Rs. 587.100 Million in the year under consideration

PCL unit 1 Machine shop won a Performance Award from Escorts and Ford New Holland.

AWARDS / RECOGNITION

Third Surveillance Audit of Environmental, Health and Safety related ISO 14001:2004 and OHSAS 18001:2007 Audit is successfully completed during 13 to 15th Feb 2014 and recommended certification valid up to 25/02/2016 by TUV.

Seventh Surveillance Audit of Quality Management System related ISO/TS 16949: 2009 is successfully completed during 9 to 10th Jun 2014 and recommended certification valid up to 15/07/2016 by TUV.

CONTINGENT LIABILITIES (AS ON 31.03.2014):

a) The Collector of Stamps, Solapur has demanded payment of stamp duty of Rs. 3.178 Million (Previous Year: Rs. 3.178 Millions) for cancellation and issue of equity shares after amalgamation of Precision Valvetrain Components Limited (PVPL) with the Company in year 2007-2008. The Company has filed an appeal against demand made by the Collector of Stamps, Solapur with Controlling Revenue Authority, Pune

b) The Company is in appeal and the application is pending with ‘Hon’ble High Court of Judicature Appellate’ against the claim made under Employees provident Funds and Miscellaneous Provision Act, 1952 for Rs. 2.423 Million (Previous Year Rs. 2.423 Million). The Company has deposited an amount of Rs. 1.212 Million (Previous Year 1.212 Million) under protest which has been shown under Loans and Advances.

c) The Company has received an order from Commissioner of Central Excise Pune for the year 2002-03, 2003-04 and 2004-05 demanding excise duty amounting to Rs. 2.076 Million on sales tax retained under sales tax deferral scheme.

d) During the year the Company has received an order from Commissioner, Central Excise Nagpur disallowing cenvat credit amounting to Rs. 0.070 Million on account of duty not charged on goods cleared by its dealer.

e) The Company has received an order from the Joint Commissioner Income Tax (Transfer Pricing Officer II) for assessment years 2003-04 and 2005-06 making additions of Rs. 28.800 Million on account of transfer pricing adjustments. The Company has filed its objections with Dispute Resolution Panel-II (DRP), Mumbai against the said adjustments. The total tax liability that may arise on account of this and other matters is Rs. 6.013 Million. The Assistant Commissioner of Income Tax, Solapur has raised demand against the Company for the same (Previous Year Rs. Nil) vide order dated December 28, 2011 for the AY 2006-07. The Company had made an appeal with the Commissioner of Income Tax (Appeals) Pune. Out of the total demand, the Company has deposited Rs. 3.007 Million (Previous Year Rs. Nil) with the Income tax authorities.

FIXED ASSETS:

· Land

· Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Office equipment

· 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. 63.33
UK Pound	1	Rs. 96.52
Euro	1	Rs. 68.93

INFORMATION DETAILS

Information Gathered by :	DIV
Analysis Done by :	SUV
Report Prepared by :	GTA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--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.