MIRA INFORM REPORT

Report No. :	320666
Report Date :	08.05.2015

IDENTIFICATION DETAILS

Name :	SECO TOOLS INDIA PRIVATE LIMITED
Registered Office :	Gat No. 582, Pune Nagar Road, Koregaon Bhima, Taluka Shirur, Pune – 412216, Maharashtra
Tel No :	91-2137-667430
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	27.05.1996
Com. Reg. No.:	11-016924
Capital Investment / Paid-up Capital :	Rs. 35.000 Million
CIN No.: [Company Identification No.]	U28932PN1996PTC016924
TAN No.: [Tax Deduction & Collection Account No.]	PNES17096C
PAN No.: [Permanent Account No.]	AAACS8793F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture, Trader and Exporter of a Wide Range of Metal Cutting Tools, VIZ Inserts, Holders, Cutters and Spares.
No. of Employees :	475 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1700000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Exist
Comments :	Subject is a subsidiary of Seco tools, AB Sweden. It is an established company having satisfactory track record. There seems some continuous dip in the profit of the company however net worth of the company is satisfactory. General financial position of the company is normal and acceptable for business dealing. 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.

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

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	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. Sachin Gole
Designation :	D. M. Finance
Contact No.:	91-2137-667300
Date :	30.04.2015

LOCATIONS

Registered Office/ Factory :	Gat No. 582, Pune Nagar Road, Koregaon Bhima, Taluka Shirur, Pune – 412216, Maharashtra, India
Tel. No.:	91-2137-667300
Fax No.:	91-2137-667430
E-Mail :	seco.india@secotools.com
Website :	http://www.secotools.com
Area :	15000 Sq. ft.
Location :	Owned

DIRECTORS

As on: 29.29.2014

Name :	Mr. Andreas Thomas Fritz
Designation :	Managing director
Address :	Flat No. 701, Manhattan, S. No. 270, Baner, Pune – 411045, Maharashtra, India
Date of Birth/Age :	20.07.1961 (53 Years)
Qualification :	Master Economy and Marketing and M.Sc.
Experience :	26 Years
Date of Appointment :	20.02.2013
DIN No.:	06503962
PAN No.:	ABXPF7415J
Name :	Mrs. Yogshna Sharma
Designation :	Director
Name :	Mr. Parag Satpute
Designation :	Director
Address :	Pastor Brohl Street 19, Dusseldorf, Dusseldorf – 40474, Germany
Date of Birth/Age :	30.08.1973
Date of Appointment :	27.03.2014
DIN No.:	06872200

KEY EXECUTIVES

Name :	Mr. Sachin Gode
Designation :	D. M. Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2014

Names of Shareholders	No. of Shares
Seco Tools AB (PUBL)	3499965
Pramet Scandinavia	35
Total	3500000

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companies(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture, Trader and Exporter of a Wide Range of Metal Cutting Tools, VIZ Inserts, Holders, Cutters and Spares.

Products :

ITC Code	Products or Services
82077001	Metal Tools
8207	Cutting Tools

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

• Wide Range of Metal Cutting Tools
• VIZ Inserts, Holders
• Cutters and Spares

Countries :

Switzerland

Imports :

Products :

• Wide Range of Metal Cutting Tools
• VIZ Inserts, Holders
• Cutters and Spares

Countries :

Switzerland

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Suppliers :	Linde India Limited, Mumbai, Maharashtra, India
Customers :	Ram Krishna Forging, Jamshedpur, India
No. of Employees :	475 (Approximately)
Bankers :	Not Available
Facilities :	-----

Auditors :
Name :	B S R and Associates LLP Chartered Accountant
Address :	Pune, Maharashtra, India
Memberships :	--
Collaborators :	--
Holding company:	Seco Tools, AB, Sweden
Ultimate Holding company:	Sandvik AB, Sweden
Fellow Subsidiary company:	Seco Tools Gmbh Jabro Tools b.v. Sandvik Asia Private Limited Seco Tool s -Shanghai Company Limited Seco Tools Malaysia Seco Tools Indonesia Seco Tools Japan Seco Tools Vietnam Seco Tools Korea Limited Seco Tools Taiwan Sandvik Treasury AB-USD Water Tools India Private Limited Walter Gmbh

CAPITAL STRUCTURE

As on: 29.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs. 300.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs. 35.000 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	35.000	35.000	35.000
(b) Reserves & Surplus	589.872	522.259	448.547
(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)	624.872	557.259	483.547
(3) Non-Current Liabilities
(a) long-term borrowings	10.466	11.865	17.053
(b) Deferred tax liabilities (Net)	10.555	30.997	30.824
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	59.779	55.445	51.114
Total Non-current Liabilities (3)	80.800	98.307	98.991
(4) Current Liabilities
(a) Short term borrowings	755.547	847.337	664.695
(b) Trade payables	646.503	573.394	851.088
(c) Other current liabilities	82.068	203.617	28.014
(d) Short-term provisions	129.324	27.016	15.594
Total Current Liabilities (4)	1613.442	1651.364	1559.391
TOTAL	2319.114	2306.930	2141.929
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1267.650	1277.270	1183.893
(ii) Intangible Assets	0.243	0.404	0.674
(iii) Capital work-in-progress	118.661	72.887	76.556
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.093	0.093	0.093
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	78.675	74.496	52.173
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1465.322	1425.150	1313.389
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	183.947	203.879	223.771
(c) Trade receivables	631.366	614.796	574.910
(d) Cash and cash equivalents	2.294	33.118	1.790
(e) Short-term loans and advances	24.993	29.987	28.069
(f) Other current assets	11.192	0.000	0.000
Total Current Assets	853.792	881.780	828.540
TOTAL	2319.114	2306.930	2141.929

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		TOTAL INCOME	2647.547	2383.143	2358.410
Less	EXPENSES
	TOTAL EXPENSES		2348.891	2112.415	2069.103
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		298.656	270.728	289.307
Less/ Add	DEPRECIATION/ AMORTISATION		174.986	160.704	128.999
	PROFIT BEFORE TAX		123.670	110.024	160.308
Less	TAX		56.058	36.312	50.826
	PROFIT AFTER TAX		67.612	73.712	109.482
	Earnings Per Share (Rs.)		19.32	21.06	31.28

Expected Sales (2014-15) : Rs. 2500.000 Million

The above information has been parted by Mr. Sachin Gole (D. M. Finance)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	2.55	3.09	4.64
Return on Total Assets (PBT/Total Assets}	(%)	5.33	4.93	7.76
Return on Investment (ROI) (PBT/Networth)		0.20	0.20	0.33
Debt Equity Ratio (Total Debt /Networth)		1.23	1.54	1.41
Current Ratio (Current Asset/Current Liability)		0.53	0.53	0.53

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	35.000	35.000	35.000
Reserves & Surplus	448.547	522.259	589.872
Net worth	483.547	557.259	624.872
long-term borrowings	17.053	11.865	10.466
Short term borrowings	664.695	847.337	755.547
Total borrowings	681.748	859.202	766.013
Debt/Equity ratio	1.410	1.542	1.226

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	2358.410	2383.143	2647.547
		1.049	11.095

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	2358.410	2383.143	2647.547
Profit	109.482	73.712	67.612
	4.64%	3.09%	2.55%

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	No
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
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	Yes
23]	Banking Details	No
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	No
34]	External Agency Rating, if available	No

FUTURE OUTLOOK:

The local economic indicates are showing signs of recovery. After the new government coming into power, the atmosphere in the India is also charged with hope. These factors may have positive impact on the domestic turnover of the Company in coming years.

However, since major production capacity is planned for exports, its utilization would solely depend on the recovery and growth in the Global market.

The Company is any way committed to control its costs.

The retiring auditors of the Company M/s. B B S R and Company, Chartered Accountants, Pune have expresses their unwillingness to continue. The Board proposes to appoint M/s. B S R and Associates, LLP in their place. They have conveyed their willingness for the appointment if made. They will hold office from the conclusion of the ensuing meeting until the conclusion of the 23^rd Annual General Meeting of the Company, subject to ratification of the appointment by members at every Annual General Meeting.

LITIGATION DETAILS:

HIGH COURT OF BOMBAY

Bench:- Bombay
Presentation Date:- 21/02/2014
Lodging No:-	ITXAL/490/2014	Filing Date:-	21/02/2014	Reg. No.:-	ITXA/476/2014	Reg. Date:-	05/03/2014
Petitioner:-	THE COMMISSIONER OF INCOME TAX – III, PUNE		Respondent:-	SECO TOOLS INDIA PRIVATE LIMITED
Petn. Adv.:	TEJVEER SINGH (0)
District:-	PUNE
Bench:-	DIVISION
Status:-	Pre-Admission		Category:-	TAX APPEALS
Next Date:	02/07/2015		Stage:
Coram:-	ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST
Act:-	Income Tax Act, 1961		Under Section:-	260A

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Deferred sales tax loan	10.466	11.865
SHORT TERM BORROWING
Loans repayable on Demand	755.547	847.337
Total	766.013	859.202

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90084716	10/10/1997	495,000.00	THE ZOROASTRIAN CO-OP. BANK LTD.	PUNE BRANCH, MODERN HOUSE; 634; SACHAPIR STREET;  PUNE CAMP, PUNE, Maharashtra - 411001, INDIA	-

* Date of charge modification

FIXED ASSETS

• Land (Freehold)
• Building
• Plant and Machinery
• Furniture and Office Equipment
• Computers
• Vehicles
• Goodwill

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.63.88
UK Pound	1	Rs.97.20
Euro	1	Rs.72.51

INFORMATION DETAILS

Information Gathered by :	RKH
Analysis Done by :	DIV
Report Prepared by :	DDD

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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 unfavorable 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.