MIRA INFORM REPORT

Report No. :	337541
Report Date :	19.08.2015

IDENTIFICATION DETAILS

Name :	EXAL CORPORATION
Registered Office :	462 G.I.D.C. Industrial Estate, P.B. No.725,Makarpura, Vadodara-390010, Gujarat
Tel. No.:	91-265-2640970/263469
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation/ Year of Establishment :	1998
Capital Investment / Paid-up Capital :	Rs.0.200 Million
IEC No.:	Not Available
TIN No.:	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Partnership Concern with an unlimited liability of the partners
Line of Business :	Manufacturer and Exporter of Air Dryer Compressor
No. of Employees :	42 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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 partnership concern established in the year 1998, having satisfactory track record. Rating takes into consideration sound operational profile of the company marked by acceptable growth in revenue and decent profitability level of the company in FY 15. Further, trade relations are fair. Business is active. Payment terms are reported to be usually correct. In view of long track record of operations along with experienced management, the concern can be considered for business dealings with 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

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 31-03-2013.

INFORMATION PARTED BY

Name :	Mr. Rajendra Shah
Designation :	General manager
Contact No.:	91-265-2632469
Date :	19.08.2015

LOCATIONS

Registered Office/ / Factory :	462 G.I.D.C. Industrial Estate, P.B. No.725,Makarpura, Vadodara-390010, Gujarat, India
Tel. No.:	91-265-2640970/263469
Mobile No.:	91-9328251242 (Mr. Rajendra)
Fax No.:	Not Available
E-Mail :	sales@exalcorp.com info@exalcorp.com
Website :	www.exalcorp.com
Location :	Owned
Locality :	Industrial

PARTNERS

Name :	Mr. Jaykumar Ramanad (Karta-HUF)
Designation :	Partner
Name :	Mrs. Jayshree Jay Kumar
Designation :	Partner

KEY EXECUTIVES

Name :	Mr. Rajendra Shah
Designation :	General manager

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Air Dryer Compressor
Products :	Not Available
Brand Names :	---
Agencies Held :	---
Exports :
Products :	Finished good
Countries :	· Nigeria · Dubai · Canada
Imports :	Not Available
Terms :
Selling :	Cash, L/C, Credit
Purchasing :	Cash, L/C, Credit

GENERAL INFORMATION

Suppliers :

Reference :	Arvind Pipes and Tubes Limited, Vadodara
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Wholesalers, Retailers

Reference :	Arvind Mills Limited, Ahmedabad
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

42 (Approximately)

Bankers :

Banker Name :	HDFC Bank
Branch Address :	Makarpura, Vadodara, Gujarat, India
Facilities :	Not Divulged
Person Name :	Not Divulged
Contact No.:	Not Divulged
Report :	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Auditors :
Name :	Y. Ayur and Company Chartered Accountants
Memberships :	Not Available
Collaborators :	Not Available
Sister Concern :	Not Available

CAPITAL STRUCTURE

As on: 31.03.2015

Capital Investment :
Owned :	Rs. 0.200 Million
Borrowed :	--
Total :	Rs. 0.200 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2015	31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Partner’s Capital		0.200	0.200	0.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		0.200	0.200	0.200
LOAN FUNDS
1] Secured Loans		11.929	11.820	13.684
2] Unsecured Loans		5.322	6.479	6.079
TOTAL BORROWING		17.251	18.499	19.963
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
PARTNERS CURRENT A/C		16.657	14.280	13.087
TOTAL		34.108	32.779	33.050
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.880	9.493	10.517
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.250	0.250	0.250
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	21.999	16.460	14.610
	Sundry Debtors	4.321	7.131	8.258
	Cash & Bank Balances	2.201	2.286	1.511
	Other Current Assets	0.003	0.008	0.011
	Loans & Advances	1.490	2.312	2.817
Total Current Assets		30.014	28.197	27.207
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.521	4.053	3.648
	Other Current Liabilities & Provisions	1.515	1.108	1.276
Total Current Liabilities		5.036	5.161	4.924
Net Current Assets		24.978	23.036	22.283
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		34.108	32.779	33.050

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Income	41.343	40.604	63.523
		Other Income	1.791	1.154	2.024
		TOTAL	43.134	41.758	65.547
Less	EXPENSES
		Cost of goods sold	(3.874)	(2.592)	(0.342)
		Cost of Materials Consumed	23.693	22.413	38.174
		Manufacturing & Other Expenses	4.740	4.216	6.150
		Administrative & Selling Expenses	10.439	9.038	7.037
		Excise Duty	3.433	3.842	6.368
		TOTAL	38.431	36.917	57.387
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		4.702	4.841	8.160
Less	FINANCIAL EXPENSES		1.525	1.544	3.799
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		3.177	3.297	4.361
Less/ Add	DEPRECIATION/ AMORTISATION		1.059	1.139	1.120
	PROFIT BEFORE TAX		2.118	2.158	3.241
Less	TAX		0.000	0.000	0.851
	PROFIT AFTER TAX		2.118	2.158	2.390

Expected Sales (2015-2016): Rs. 65.000 Million

The above information has been parted by Mr. Rajendra Shah (General Manager)

Note : Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	5.12	5.31	3.76
Operating Profit Margin (PBIDT/Sales)	(%)	11.37	11.92	12.85
Return on Total Assets (PBT/Total Assets}	(%)	5.41	5.69	8.53
Return on Investment (ROI) (PBT/Networth)		10.59	10.79	16.21
Debt Equity Ratio (Total Debt /Networth)		86.26	91.50	98.82
Current Ratio (Current Asset/Current Liability)		1.38	1.37	1.43

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	0.200	0.200	0.200
Reserves & Surplus	0.000	0.000	0.000
Net worth	0.200	0.200	0.200
Secured Loans	13.684	11.820	11.929
Unsecured Loans	6.079	6.479	5.322
Total borrowings	19.763	18.299	17.251
Debt/Equity ratio	98.815	91.495	86.255

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	63.523	40.604	41.343
		(36.080)	1.820

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	63.523	40.604	41.343
Profit	2.390	2.158	2.118
	3.76%	5.31%	5.12%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	No
10	Date of Birth of Proprietor / Partners / Directors	No
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	No
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	No
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	No
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	Yes
29	Profitability for last three years	Yes
30	Major shareholders, if available	No
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.22
UK Pound	1	Rs.102.23
Euro	1	Rs.72.39

INFORMATION DETAILS

Information Gathered by :	DPA
Analysis Done by :	KIN
Report Prepared by :	JYTK

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	5
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.