MIRA INFORM REPORT

Report No. :	353077
Report Date :	21.12.2015

IDENTIFICATION DETAILS

Name :	BHARAT FRITZ WERNER LIMITED
Registered Office :	Off Tumkur Road, Bangalore – 560022, Karnataka
Tel. No.:	91-80-28395745/39821100
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	17.10.1961
Com. Reg. No.:	08-001433
Capital Investment / Paid-up Capital :	Rs.61.782 Million
CIN No.: [Company Identification No.]	U85110KA1961PLC001433
IEC No.:	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	BLRB00311D
PAN No.: [Permanent Account No.]	AAACB5723A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacture of Metal Cutting including Grinding Machines Related Accessories Services. (Registered Activity)
No. of Employees :	Information denied by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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 popularly known as BFW, and is one of the flagship companies of the Kothari Group. It was incorporated in the year 1961. As per Registrar of Companies the date of balance sheet (i.e. financial field) is shown as 31.03.2015 but documents related to same for the financial year ending 2015 is not available from any other sources. As per available financials of the year 2014, the company has reported adequate networth base along with comfortable debt level. Further, the company has achieved significant increase in its profit level along with increase in profit margin in the year under consideration. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. In view of long track of business operations along with decent financial condition, the company 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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long Term Fund Based Limits=BBB
Rating Explanation	Have moderate degree of safety and carry moderate credit risk.
Date	April, 2015

Rating Agency Name	ICRA
Rating	Short Term Non Fund Based Limits=A3+
Rating Explanation	Have moderate degree of safety and carry higher credit risk.
Date	April, 2015

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 31-03-2015.

INFORMATION DENIED BY

Name :	Mr. Sargunan
Designation :	Account Department
Contact No.:	91-80-39821100
Date:	07.12.2015

LOCATIONS

Registered Office/ Head Office :	Off Tumkur Road, Bangalore – 560022, Karnataka, India
Tel. No.:	91-80-28395745/39821100
Mobile No.:	91-9342510359 (Mr. Chandrashekar Sajjan)
Fax No.:	91-80-28394816
E-Mail :	cs@bfw.co.in
Branch Office :	Located At: Bengalore Chennai Coimbatore Hyderabad Kolkata New Delhi Mumbai Rajkot Pune Belagavi

DIRECTORS

As on 31.03.2015

Name :

Ms. Prabhawati Devi Kothari

Designation :

Director

Address :

Kothari Niwas, 6B, Penn Road, Kolkata – 700027, West Bengal, India

Date of Birth/Age :

10.09.1957

Qualification :

B.com

PAN No.:

AFLPK3786R

Date of Appointment :

10.10.2003

DIN No.:

00051860

Name :

Mr. Shailesh Rajnikant Sheth

Designation :

Director

Address :

Shakuntala School Building, Flat No.2, First Floor, 38, Maharshi Karve Marg, Marine Lines, Mumbai – 400 020, Maharashtra, India

Date of Birth/Age :

29.12.1946

Qualification :

B.com, Post Graduate Diploma in Business Administration-Indian Institute of Management

Date of Appointment :

01.12.2003

PAN No.:

AAJPU4331R

DIN No.:

00041713

Name :

Mr. Ajit Khandelwal

Designation :

Director

Address :

4B, Ashok Towers, 11A, Palm Avenue, Kolkata – 700019, West Bengal, India

Date of Birth/Age :

10.11.1957

Qualification :

Bachelor of Engineering (Mechanical) Master of Technology- IIT, Chennai Post Graduate Diploma In International Management

Date of Appointment :

22.09.2014

DIN No.:

00416445

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	L34202WB1986PLC040542	BNK CAPITAL MARKETS LIMITED	Managing director	17/04/1986	17/04/1986	-	Active	NO
2	U17290WB1981PLC034375	RAKESH TEXTILES LIMITED	Director	06/06/1988	06/06/1988	-	Amalgamated	NO
3	U67120WB1995PTC071182	BNK SECURITIES PRIVATE LIMITED	Director	24/04/1995	24/04/1995	-	Active	NO
4	U67120WB1995PTC071843	ASIAN SECURITIES EXCHANGE PRIVATE LIMITED	Director	30/05/1995	30/05/1995	-	Active	NO
5	L15491WB1897PLC001365	KOTHARI PHYTOCHEMICALS AND INDUSTRIES LIMITED	Director	28/08/1996	28/08/1996	-	Active	NO
6	U72900WB2000PTC091231	GOPI VALLABH SOLUTIONS PRIVATE LIMITED	Managing director	29/02/2000	29/02/2000	25/03/2009	Active	NO
7	L24112WB1973PLC029102	ELLENBARRIE INDUSTRIAL GASES LIMITED	Director	15/12/2003	15/12/2003	28/07/2014	Active	NO
8	U74999WB2003PTC097491	BNK COMMODITIES PRIVATE LIMITED	Director	19/12/2003	19/12/2003	-	Active	NO
9	U72900WB2004PTC098653	NKB E SOLUTIONS PRIVATE LIMITED	Director	26/05/2004	26/05/2004	03/09/2011	Active	NO
10	U67190MH1996GAP101555	ASSOCIATION OF NATIONAL EXCHANGES MEMBERS OF INDIA	Director	08/04/2006	08/04/2006	29/03/2008	Active	NO
11	U67190AP2005PTC095955	ABACUS FUNDS SERVICES PRIVATE LIMITED	Director	10/04/2006	10/04/2006	-	Active	NO
12	U85110KA1961PLC001433	BHARAT FRITZ WERNER LIMITED	Director	22/09/2014	07/12/2006	-	Active	NO
13	L74140WB1983PLC036495	PRESSMAN ADVERTISING LIMITED	Director	21/02/2007	21/02/2007	-	Active	NO
14	U67120WB1923PLC004707	THE CALCUTTA STOCK EXCHANGE LIMITED	Director	24/12/2007	24/12/2007	18/09/2012	Active	NO
15	U51909WB2010PTC144596	RAKHI SUPPLIERS PRIVATE LIMITED	Director	24/05/2010	24/05/2010	31/08/2010	Active	NO
16	U45400WB2010PTC142350	MULTIPLE INFRA PRIVATE LIMITED	Director	24/05/2010	24/05/2010	-	Active	NO
17	U51109WB1995PLC068868	PATREX VYAPAAR LIMITED	Director	15/02/2011	15/02/2011	-	Active	NO
18	U91110WB1926GAP005483	BHARAT CHAMBER OF COMMERCE	Director	24/09/2011	24/09/2011	29/12/2014	Active	NO
19	AAA-0068	IN MEDIA COMPUTER SERVICES LLP	Designated Partner	15/07/2009	15/07/2009	-	Active	NO

Name :

Mr. Tadimalla Parabrahman

Designation :

Director

Address :

No. 154, 32 B Main, J.P. Nagar, I Phase, Bangalore - 560058, Karnataka, India

Date of Birth/Age :

13.09.1950

Date of Appointment :

22.09.2014

DIN No.:

01392252

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	U99999KA1995PTC018529	Kirloskar Toyota Textile Machinery Private Limited	Managing director	01/07/2007	24/09/1999	05/07/2012	Active	NO
2	U93000KA1964ULL001532	KARNATAKA STATE INDUSTRIAL AND INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED	Director	19/05/2009	19/05/2009	20/04/2010	Active	NO
3	U29253HR2010FTC048762	Toyota Material Handling India Private Limited	Director	01/12/2010	01/12/2010	27/09/2012	Active	NO
4	U74900KA2013PTC069235	TP&S Management Consultants Private Limited	Director	22/05/2013	22/05/2013	-	Active	NO
5	U85110KA1961PLC001433	BHARAT FRITZ WERNER LIMITED	Director	22/09/2014	25/11/2013	-	Active	NO

Name :

Mr. Rajiv Khaitan

Designation :

Additional director

Address :

203, Salarpuria Paradise, 31, Aga Abbas Ali Road, Bangalore - 560042, Karnataka, India

Date of Appointment :

23.12.2014

DIN No.:

00071487

KEY EXECUTIVES

Name :	Mr. Arun Kumar Kothari
Designation :	Chairman
Address :	Kothari Niwas, 6B, Penn Road, Kolkata – 700027, West Bengal, India
Date of Birth/Age :	10.07.1953
Qualification :	B.com
Date of Appointment :	10.10.2003
DIN No.:	00051900
Name :	Mr. Narendra Nath Upadhaya
Designation :	Secretary
Address :	Flat B 102, Wellingtonpark Apartments, Wellington Street, Richmond Town, Bangalore-560025, Karnataka, India
Date of Birth/Age :	01.11.1946
Date of Appointment :	08.11.1978
Pan No.:	AAJPU4331R
Name :	Mr. Vivek Anand TN
Designation :	Secretary
Address :	No.16, 1st Main Road, Deshabandu Nagar, Doddabommasandra, Vidyaranyapura,, Bangalore - 560097, Karnataka, India
Date of Birth/Age :	29.10.1979
Date of Appointment :	19.06.2014
Pan No.:	ADPPT6283J
Name :	Mr. Sargunan
Designation :	Account Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2015

Names of Equity Shareholders	No. of Shares
Kothari and Company Private Limited, India	5787940
SYT G.D. Kothari	43000
Commercial House Private Limited, India	3608549
Kothari Investment and Industries Private Limited, India	6532661
S.M.D. Kothari and Company Limited, India	2393991
Vishnuhari Investment Properties Limited, India	2897537
SMT. Kothari Devi Prabhawati	4000000
Kothari Kumar Arun	18600
Gillanders Arbuthnot and Company Limited, India	2681811
Premier Suppliers Private Limited, India	321451
Kothari Phyto chemicals and Industries Limited, India	298504
Bhaktwatsal Investments Limited, India	251785
Kothari Capital and Securities Private Limited, India	14930
G. Das and Company Private Limited, India	398069
Albert David Limited, India	1642034
TOTAL	30890862

Equity Share Break up (Percentage of Total Equity)

As on 22.09.2014

Category	Percentage
Bodies corporate	86.85
Directors or relatives of Directors	13.15
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture of Metal Cutting including Grinding Machines Related Accessories Services. (Registered Activity)

Products :

Item Code No.	Product Description
84571020	Vertical Machining Centre

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

Information declined by the management

Bankers :

Bank Name	Axis Bank Limited
Branch	Corporate banking Branch, Express Building, 2^nd Floor, No.1, Queen’s Road, Bangalore – 560001, Karnataka, India
Person Name (With Designation)	Not Divulged
Contact Number	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

• Standard Chartered Bank, #112, Serenity, 3rd Floor, East wing, Koramangala  Industrial Area, 5th Blck, Koramangala, Bangalore -- 560095, Karnataka, India

• The Ratnakar Bank Limited, Shahupuri, Kolhapur -416001 Maharashtra, India

• Bank of India, Bangalore MID-Corporate Branch, 1st Floor, Bank 
  of India Building, No. 11, Kempegowda Road, Bangalore -560009, Karnataka, India

• Canara Bank, Industrial Finance Branch, Venkatadri Complex, No .83, Richmond Road, Bangalore - 560025, Karnataka, India

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Rupee Term Loans From Banks	697.600	502.600
Short-term borrowings
Term Loans From Banks	174.298	232.816
Total	871.898	735.416

Auditors :
Name :	S.R. Batliboi and Associates Chartered Accountants
Address :	12^th and 13^th Floor, "UB City" Canbera Block, No.24, Vittal Mallya Road, Bangalore – 560 001, Karnataka, India
Tel. No.:	91-80-40275000
Fax No.:	91-80-22106000
Income-tax PAN of auditor or auditor's firm :	AABFS3421N
Memberships :	--
Collaborators :	--
Subsidiaries :	Matec Maschinenbau GmbH, Germany Bharat Fritz Werner GmbH, Germany Bangalore Agrotech Limited, India (U85110KA1994PLC016420) Excel Precision Manufacturing Limited (U27101KA1978PLC003395)

CAPITAL STRUCTURE

As on 02.09.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
90000000	Equity Shares	Rs.2/- each	Rs.180.000 Million
10000000	Preference Shares	Rs.2/- each	Rs.20.000 Million
	Total		Rs.200.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
30890862	Equity Shares	Rs.2/- each	Rs.61.782 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	61.782	71.792	71.792
(b) Reserves & Surplus	760.539	1200.527	1192.359
(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)	822.321	1272.319	1264.151
(3) Non-Current Liabilities
(a) long-term borrowings	697.600	502.600	630.000
(b) Deferred tax liabilities (Net)	48.662	51.867	45.013
(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)	746.262	554.467	675.013
(4) Current Liabilities
(a) Short term borrowings	174.298	232.816	32.852
(b) Trade payables	722.651	572.943	1371.234
(c) Other current liabilities	628.359	453.303	689.097
(d) Short-term provisions	111.125	123.242	120.032
Total Current Liabilities (4)	1636.433	1382.304	2213.215
TOTAL	3205.016	3209.090	4152.379
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	632.422	686.509	722.457
(ii) Intangible Assets	12.237	17.642	23.356
(iii) Capital work-in-progress	5.124	0.000	7.387
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	941.600	957.934	1057.838
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	209.519	335.819	406.984
(e) Other Non-current assets	1.017	1.105	0.000
Total Non-Current Assets	1801.919	1999.009	2218.022
(2) Current assets
(a) Current investments	25.729	17.836	60.536
(b) Inventories	641.229	769.658	1115.449
(c) Trade receivables	307.203	122.282	368.544
(d) Cash and cash equivalents	132.465	174.130	69.626
(e) Short-term loans and advances	294.360	124.682	317.320
(f) Other current assets	2.111	1.493	2.882
Total Current Assets	1403.097	1210.081	1934.357
TOTAL	3205.016	3209.090	4152.379

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	3471.867	3641.046	4477.355
	Other Income	55.135	32.007	33.329
	TOTAL (A)	3527.002	3673.053	4510.684
Less	EXPENSES
	Cost of Materials Consumed	2169.431	2219.107	3020.508
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(4.675)	79.323	(266.778)
	Employees benefits expense	557.010	662.352	690.211
	Other expenses	490.311	515.717	681.166
	TOTAL (B)	3212.077	3476.499	4125.107
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	314.925	196.554	385.577
Less	FINANCIAL EXPENSES (D)	136.113	103.121	75.242
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	178.812	93.433	310.335
Less/ Add	DEPRECIATION/ AMORTISATION (F)	70.009	71.927	68.972
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	108.803	21.506	241.363
Less	TAX (H)	44.344	13.338	85.745
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	64.459	8.168	155.618
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD (K)	269.114	260.946	141.749
Less	APPROPRIATIONS
	Transfer to General Reserve	6.696	0.000	15.562
	Dividend	12.356	0.000	17.948
	Tax on Dividend	2.100	0.000	2.911
	Total (M)	21.152	0.000	36.421
	Balance Carried to the B/S (J+K+L-M)	312.421	269.114	260.946
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	72.940	139.960	260.946
	TOTAL EARNINGS	72.940	139.960	260.946
	Earnings / (Loss) Per Share (Rs.)	2.42	0.31	5.76

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	155.000	22.000	70.000
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	306.715	(134.177)	566.907
Net cash flow from operating activity	278.421	(138.960)	509.090

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	1.86	0.22	3.48
Operating Profit Margin (PBIDT/Sales)	(%)	9.07	5.40	8.61
Return on Total Assets (PBT/Total Assets}	(%)	4.82	0.96	7.82
Return on Investment (ROI) (PBT/Networth)		0.13	0.02	0.19
Debt Equity Ratio (Total Debt /Networth)		1.25	0.60	0.58
Current Ratio (Current Asset/Current Liability)		0.86	0.88	0.87

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	71.792	71.792	61.782
Reserves & Surplus	1192.359	1200.527	760.539
Net worth	1264.151	1272.319	822.321
long-term borrowings	630.000	502.600	697.600
Short term borrowings	32.852	232.816	174.298
Current Maturities of Long-Term Debts	70.000	22.000	155.000
Total borrowings	732.852	757.416	1026.898
Debt/Equity ratio	0.580	0.595	1.249

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	4477.355	3641.046	3471.867
		(18.679)	(4.646)

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	4477.355	3641.046	3471.867
Profit	155.618	8.168	64.459
	3.48%	0.22%	1.86%

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	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	Yes
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)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
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	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	No
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

NOTE: Registered office of the company has been shifted from Peenya, Yeshwantapur PO, Bangalore – 560022, Karnataka, India to the present address w.e.f.23.12.2014

Turnover and Profits

The Financial Year 2013-14 was yet another challenging year for the industry. Sluggish economic trends continued to impact growth on margins. Despite the second continuous year of slow down, in both domestic and international markets, your company performed satisfactorily in order bookings, sales and profits. The company registered a turnover of Rs.3471.870 million, as compared to Rs.3641.050 million in the previous year. The profit after tax (PAT) for the period under review stood at Rs.64.460 million, as compared to a profit after tax (PAT) of Rs.8.170 million in the previous year.

A number of initiatives have been taken by the company to perform better during the economic slowdown and also to prepare the organization for the future. A determined focus was made on cost cutting through wastage elimination, inventory reductions, increased focus on working capital and creating a lean organization. The initiatives started this year and would continue at a much faster rate in the coming years. The steps are continuing and a determined thrust is being given to application of strategic and innovative measures.

Future Prospects

In April, 2014, index of industrial production (IIP) clocked a growth of 3.4% and in May higher growth of 4.7%. The

performance of the index of industrial production in the first two months of 2014-15 indicates the improvement in the industry’s performance compared to last three years. The growth was spread across all segments of the industry during April May, 2014. M and HCV (trucks) sales growth turns positive (up by 2.5%) after nine quarters during June, 2014. It is also foreseen a good demand for machine tools in the financial year 2014-15 due to positive outlook by all major manufacturers in various sectors for investment to meet future demands. Our initiatives and plans of increasing our participation in non auto sectors like Pumps, Valves, Die and Moulds, Defence, etc. has helped the company during the year and we believe that these initiatives will help the company derisk its growth. We have also increased our focus on international business with focus on markets like South East Asia, Middle East and Europe.

Exhibitions

During the year, the Company’s products VTL BVL 550H and VMC Chandra+ exhibited at INTEC, Coimbatore, VMC TCV300, VTL BVL 550H, Milling Machine UVF1 at ACMEE, Chennai and VMC Gaurav exhibited at Metaloobrabotka, Moscow and participated in Bangladesh International Industrial and Engineering Technology Trade Show and ITM, Poland. The exhibits received wide acclaim and interest.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10559514	24/03/2015	200,000,000.00	Standard Chartered Bank	#112, Serenity, 3rd Floor, East wing, Koramangala  Industrial Area, 5th Blck, Koramangala, Bangalore,  Karnataka - 560095, INDIA	C49259526
2	10559511	22/04/2015 *	120,000,000.00	Standard Chartered Bank	#112, Serenity, 3rd Floor, East wing, Koramangala  Industrial Area, 5th Blck, Koramangala, Bangalore  , Karnataka - 560095, INDIA	C50739978
3	10532144	14/11/2014	90,000,000.00	THE RATNAKAR BANK LIMITED	SHAHUPURI,KOLHAPUR,, KOLHAPUR, Maharashtra - 416001, INDIA	C34086801
4	10532146	14/11/2014	110,000,000.00	THE RATNAKAR BANK LIMITED	SHAHUPURI,KOLHAPUR, KOLHAPUR, Maharashtra - 416001, INDIA	C34087601
5	10437999	11/07/2013 *	350,000,000.00	STATE BANK OF INDIA	Commercial Branch(07502) Mid Corporate Group, 24  Parkstreet, KOLKATA, West Bengal - 700016, INDIA	B80851611
6	10360743	10/06/2015 *	400,000,000.00	Bank of India	Bangalore Mid-Corporate Branch, 1st Floor,, Bank  of India building,No. 11 Kempegowda Road, Bangalore, Karnataka - 560009, INDIA	C60644507
7	10309052	11/07/2013 *	700,000,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH, EXPRESS BUILDING, 2ND F  LOOR, NO.1, QUEEN'S ROAD, BANGALORE, Karnataka - 560001, INDIA	B81013971
8	80007544	24/02/2015 *	555,000,000.00	CANARA BANK	INDUSTRIAL FINANCE BRANCH, VENKATADRI COMPLEX, NO  .83, RICHMOND ROAD, BANGALORE, Karnataka - 560025, INDIA	C44381101

FIXED ASSETS

• Land
• Buildings
• Factory building
• Other plant and equipment
• Furniture and fixtures
• Plant and equipment
• Vehicles
• Motor vehicles
• Office equipment
• Computer equipments

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.66.42
UK Pound	1	Rs.99.17
Euro	1	Rs.72.13

INFORMATION DETAILS

Information Gathered by :	KMN
Analysis Done by :	KIN
Report Prepared by :	SUD

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	5
--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	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		49

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.