MIRA INFORM REPORT

Report No. :	308501
Report Date :	18.02.2015

IDENTIFICATION DETAILS

Name :	SIMPLEX ENGINEERING COMPANY
Registered Office :	Marshall House, 3^rd Floor, Room No.322, 33/ 1, N.S. Road, Kolkata – 700 001, West Bengal
Country :	India
Financials (as on) :	31.03.2014
Year of Establishment :	1967
Capital Investment :	Rs.350.978 millions
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Partnership Concern with an unlimited liability of the Partners
Line of Business :	Trader and Merchant Exporter of Fasteners and Welded Parts, Casting and Forging etc.
No. of Employees :	25 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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 partnership concern having satisfactory track. Trade relations are fair. Business is active. Payment terms are reported as usually correct. The concern 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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

NOT AVAILABLE

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. Vishal
Designation :	Accounts Department
Contact No.:	91-9830016319
Date :	16.02.2015

LOCATIONS

Registered Office :	Marshall House, 3^rd Floor, Room No.322, 33/ 1, N.S. Road, Kolkata – 700 001, West Bengal, India
Tel. No.:	91-33-22434035/ 36
Mobile No.:	91-9830016319 (Mr. Vishal)
Fax No.:	91-33-22305688
E-Mail :	simplex@vsnl.com vishal@simplex.net
Website :	http://www.simplexengineeringco.com
Area :	500 sq. ft.
Location :	Owned
Locality :	Commercial

PARTNERS

Name :	Mr. Subhash C. Shah
Designation :	Partner
Date of Birth/Age :	44 Years
Qualification :	Graduate
Name :	Mr. Sunil Kumar Gupta
Designation :	Partner
Address :	322, Marshal House, 3^rd Floor, 3/1, N.S. Road, Kolkata – 700 001, West Bengal, India
Date of Birth/Age :	60 Years
Qualification :	Graduate

KEY EXECUTIVES

Name :	Mr. Vishal
Designation :	Accounts Department

BUSINESS DETAILS

Line of Business :	Trader and Merchant Exporter of Fasteners and Welded Parts, Casting and Forging etc.
Products :	Fasteners Welded Parts Casting Forging etc.
Brand Names :	“SIMPLEX”
Agencies Held :	Not Available
Exports :
Products :	Finished Goods
Countries :	Japan Korea African Countries Middle East France USA
Imports :	Not Available
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

Reference :	Sterling Bolts Private Limited, Kolkata
Name of the Person :	Mr. Shah (Manager)
Contact No.:	91-33-22429068
Since How Long Known :	28 Years
Experience :	Payment Behaviour: Excellent Market Goodwill: Excellent Overall: Excellent
Maximum Limit Dealt :	Rs.50.000 millions monthly
Remark :	Mr. Shah informed that the subject is having excellent track record with supplier.

Customers :

Wholesalers and Retailers

Reference :	Jyoti Structures Limited
Name of the Person :	Mr. Sudhir (Accounts Department)
Contact No.:	91-22-40915000
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Remark :	Mr. Sudhir has denied to provide his opinion report.

No. of Employees :

25 (Approximately)

Bankers :

Banker Name	The Hong Kong and Shanghai Banking Corporation Limited
Branch Address	31, B.B.D. Bag, Kolkata – 700 001, West Bengal, 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

Banking Relations :	--
Auditors :
Name :	M. Jain and Associates Chartered Accountants
Address :	Kolkata, West Bengal, India
Memberships :	Not Available
Collaborators :	Not Available
Sister Concerns:	Not Available

CAPITAL STRUCTURE

AS ON 31.03.2014

Capital Investment :
Owned :	Rs.350.978 millions
Borrowed :	--
Total :	Rs.350.978 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

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

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Partner’s Capital		350.978	290.266
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		350.978	290.266
LOAN FUNDS
1] Secured Loans		47.169	24.284
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		47.169	24.284
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		398.147	314.550
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14.550	11.179
Capital work-in-progress		0.000	0.000
INVESTMENT		13.694	13.694
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1.677	11.607
	Sundry Debtors	338.630	318.702
	Cash & Bank Balances	164.891	98.217
	Other Current Assets	0.000	0.000
	Loans, Advances & Deposits	2.439	2.988
Total Current Assets		507.637	431.514
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	130.642	141.575
	Other Current Liabilities	4.958	0.249
	Provisions	2.134	0.013
Total Current Liabilities		137.734	141.837
Net Current Assets		369.903	289.677
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		398.147	314.550

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013
	SALES
		Income	858.468	861.897
		Other Income	88.115	60.608
		TOTAL	946.583	922.505
Less	EXPENSES
		Cost of goods sold	715.934	702.858
		Duties and Taxes Paid on Purchases	22.514	18.269
		Freight, Transportation and Packing Expenses	36.303	42.352
		Salaries and Bonus	4.851	4.196
		Remuneration to whole time Partners	34.800	34.800
		Staff Welfare Expenses	0.301	0.286
		Legal and Professional Fees	5.856	3.340
		Rent	0.936	0.896
		Rates and Taxes	0.635	0.124
		Insurance	0.419	0.182
		Loss on Forward Contracts Booking	0.889	3.199
		Repairs and Maintenance	0.453	0.514
		Entertainment Expenses	0.557	2.167
		Sales Promotion Expenses	1.456	1.196
		Traveling Expenses	9.962	8.193
		Conveyance Expenses	2.653	2.244
		Telephone Expenses	1.098	1.104
		Charity and Donation	0.051	0.066
		Postage and Courier Charges	0.869	0.776
		Bank Commission and Charges	0.753	1.024
		Claims and Discounts (Net)	2.833	0.000
		Audit Fee	0.028	0.028
		Miscellaneous Expenses	2.444	2.518
		TOTAL	846.595	830.332
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		99.988	92.173
Less	INTEREST		29.419	18.894
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		70.569	73.279
Less/ Add	DEPRECIATION/ AMORTISATION		2.789	2.013
	PROFIT/ (LOSS) BEFORE TAX		67.780	71.266
Less	TAX		23.678	20.977
	PROFIT/ (LOSS) AFTER TAX		44.102	50.289

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Net Profit Margin (PAT/Sales)	(%)	5.14	5.83
Operating Profit Margin (PBDIT/ Sales)	(%)	11.65	10.69
Return on Total Assets (PBT/Total Assets}	(%)	12.98	16.10
Return on Investment (ROI) (PBT/Networth)		0.19	0.25
Debt Equity Ratio (Total Debt/Networth)		0.13	0.08
Current Ratio (Current Asset/Current Liability)		3.69	3.04

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	(INR in Mlns.)	(INR in Mlns.)
Partner’s Capital	290.266	350.978
Reserves & Surplus	0.000	0.000
Net worth	290.266	350.978
Secured Loans	24.284	47.169
Unsecured Loans	0.000	0.000
Total borrowings	24.284	47.169
Debt/Equity ratio	0.084	0.134

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(INR in Mlns)	(INR in Mlns)
Income	861.897	858.468
		(0.398)

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(INR in Mlns)	(INR in Mlns)
Income	861.897	858.468
Profit	50.289	44.102
	5.83%	5.14%

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 two years	Yes
12]	Profitability for last two 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	No
17]	Major suppliers	Yes
18]	Major customers	Yes
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	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
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

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 records 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.62.20
UK Pound	1	Rs.95.99
Euro	1	Rs.71.00

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	SUB
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
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	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		47

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.