MIRA INFORM REPORT

Report No. :	309051
Report Date :	23.02.2015

IDENTIFICATION DETAILS

Name :	ARAPAN INTERNATIONAL LIMITED
Registered Office :	536/12-D, Station Road, Dhandhari Kalan, Opposite Dhandhari Railway Station, Ludhiana – 141014, Punjab
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	03.06.2013
Com. Reg. No.:	16-037564
Capital Investment / Paid-up Capital :	Rs. 47.635 Millions
CIN No.: [Company Identification No.]	U35929PB2013PLC037564
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of bicycles, frames, forks and mudguard.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was established as a partnership concern in 1983, but later it got converted into public limited company on 03.06.2013. It is an established company having moderate track record. The company has achieved minimal sales turnover from its first year of operation during financial year 2014 as a public limited company. However, trade relations seems to be fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings with some caution.

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

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. Umesh Narang
Designation :	Director
Contact No.:	91-9872607047
Date :	20.02.2015

LOCATIONS

Registered Office/ Factory :	536/12-D, Station Road, Dhandhari Kalan, Opposite Dhandhari Railway Station, Ludhiana – 141014, Punjab, India
Tel. No.:	91-161-2501674/ 2510328
Mobile No.:	91-9872607047
Fax No.:	91-161-2511987
E-Mail :	info@arpan.com
Website :	http://www.arpan.com
Location :	Owned

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Umesh Kumar Narang

Designation :

Director

Address :

H. No. 536/12, Station Road, Industrial. Area-C, Ludhiana, 141010, Punjab, India

Date of Birth/Age :

02.08.1964

Date of Appointment :

03.06.2013

DIN No.:

02773739

Name :

Mr. Bharat Narang

Designation :

Director

Address :

H. No. 100, Atam Nagar, Ward No. 34, Ludhiana - 141002, Punjab, India

Date of Birth/Age :

21.09.1988

Date of Appointment :

03.06.2013

DIN No.:

05205670

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	U35921PB2012PTC036590	GATI CYCLES PRIVATE LIMITED	Director	24/08/2012	24/08/2012	-	Active	NO
2	U35929PB2013PLC037564	ARPAN INTERNATIONAL LIMITED	Director	03/06/2013	03/06/2013	-	Active	NO

Name :

Mr. Manav Narang

Designation :

Director

Address :

H. No. 3201, Phase 2, Urban Estate, Dugri, Ludhiana - 141002, Punjab, India

Date of Birth/Age :

21.09.1988

Date of Appointment :

03.06.2013

PAN No.:

05356824

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares
Bharat Narang	5000
Umesh Narang	4124050
Manav Narang	629250
Renu Narang	2500
Sant Parkash Pahwa	100
Prerna Narang	2500
Rajesh Arya	100
Total	4763500

AS ON 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of bicycles, frames, forks and mudguard.
Products :	Bicycles Frames Forks Mudguard
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Finished Goods
Countries :	West Africa Turkey Bangladesh
Imports :	Not Available
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

Reference :	Ralson India Limited – Ludhiana, Punjab, India
Name of the Person :	Not Divulged
Contact No.:	91-161-3044501
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Remark :	Constantly Ringing

Customers :

Reference :	Hiro Exports – Ludhiana, Punjab, India
Name of the Person :	Mr. P.K. Sidana (A.V.P. Materials)
Contact No.:	91-161-5039696
Since How Long Known :	13 Years
Experience :	Good
Maximum Limit Dealt :	Not Divulged
Remark :	As claimed by Mr. P.K. Sidana that the payment behavior is on time, good company.

No. of Employees :

200 (Approximately)

Bankers :

Banker Name	Bank of India
Branch Address	Industrial Area, Ludhiana, Punjab, India
Person Name (With Designation)	Not Divulged
Contact Number	91-161-2510345
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)	Number Busy

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Millions)
LONG TERM BORROWINGS
From Bank	0.445
SHORT TERM BORROWINGS
Bank of India CC	18.499
Bank of India CC	38.913
Bank of India EPC	0.673
Total	58.530

Auditors :
Name :	Goyal Sanjay and Associates Chartered Accuntants
Address :	11, Gian Market, G.T.Road, Miller Ganj, Ludhiana – 141003, Punjab, India
PAN No.:	AAAFG6668G
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs. 10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4763500	Equity Shares	Rs. 10/- each	Rs. 47.635 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	47.635
(b) Reserves & Surplus	0.887
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	48.522
(3) Non-Current Liabilities
(a) long-term borrowings	25.499
(b) Deferred tax liabilities (Net)	0.000
(c) Other long term liabilities	0.000
(d) long-term provisions	0.000
Total Non-current Liabilities (3)	25.499
(4) Current Liabilities
(a) Short term borrowings	58.085
(b) Trade payables	80.180
(c) Other current liabilities	25.189
(d) Short-term provisions	1.000
Total Current Liabilities (4)	164.454
TOTAL	238.475
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	82.550
(ii) Intangible Assets	7.908
(iii) Capital work-in-progress	0.000
(iv) Intangible assets under development	0.000
(b) Non-current Investments	0.000
(c) Deferred tax assets (net)	0.000
(d) Long-term Loan and Advances	0.587
(e) Other Non-current assets	0.309
Total Non-Current Assets	91.354
(2) Current assets
(a) Current investments	0.000
(b) Inventories	61.173
(c) Trade receivables	68.259
(d) Cash and cash equivalents	5.819
(e) Short-term loans and advances	11.870
(f) Other current assets	0.000
Total Current Assets	147.121
TOTAL	238.475

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014
	SALES
		Revenue from operations	299.994
		Other Income	0.000
		TOTAL (A)	299.994
Less	EXPENSES
		Cost of material consumed	269.038
		Employees benefits expenses	7.290
		Other expenses	12.247
		TOTAL (B)	288.575
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		11.419
Less	FINANCIAL EXPENSES (D)		7.809
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.610
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.393
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		1.217
Less	TAX (H)		0.330
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		0.887
	Earnings / (Loss) Per Share (Rs.)		0.19

KEY RATIOS

PARTICULARS		31.03.2014
Net Profit Margin PAT / Sales	(%)	0.30
Operating Profit Margin (PBDIT/Sales)	(%)	3.81
Return on Total Assets (PBT/Total Assets}	(%)	0.51
Return on Investment (ROI) (PBT/Networth)		0.03
Debt Equity Ratio (Total Debt/Networth)		1.72
Current Ratio (Current Asset/Current Liability)		0.89

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	No
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 one years	Yes
12]	Profitability for last one 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	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	10447786	26/09/2014 *	81,600,000.00	Bank of India	INDUSTRIAL AREA, DHANDARI KALAN, LUDHIANA, Punjab - 141010, INDIA	C26526244

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Millions)
LONG TERM BORROWINGS
From Bank	0.210
Loans and advances from others	24.844
Total	25.054

FIXED ASSETS

• Land
• Buildings
• Office Equipments
• Machinery
• Computer

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. 62.25
UK Pound	1	Rs. 96.01
Euro	1	Rs. 70.72

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	SUB
Report Prepared by :	JYO

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--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		28

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.