MIRA INFORM REPORT

Report Date :

12.12.2008

IDENTIFICATION DETAILS

Name :	PERFECT ENGINEERING PRODUCTS LIMITED
Registered Office :	31, Golden Beach Co-operative Housing Society, Ruia Park, Juhu, Mumbai – 400049, Maharashtra
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	26.03.1964
Com. Reg. No.:	11-12880
CIN No.: [Company Identification No.]	U28920MH1964PLC012880
TAN No.: [Tax Deduction & Collection Account No.]	PNEP00781E
PAN No.: [Permanent Account No.]	AABCP6180E
Legal Form :	A closely held public limited liability company
Line of Business :	Manufacturer of Performer Components.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 4000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. It manufactures C I Castings and Engine Components. Trade relations are fair. Financial position is good. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. C.M.Gadgil
Designation :	C.F.O
Contact No.:	91-9325117200
Date :	10.12.2008

LOCATIONS

Registered Office :	31, Golden Beach Co-operative Housing Society, Ruia Park, Juhu, India – 400049, Maharashtra, India
E-Mail :	pepp@pn2.vsnl.net.in padmini@perfectenginecomponent.com
Mobile No.:	91-9325117200
Area :	5000 sq.ft.
Location :	owned
Factory :	172 Tungarli, Lonavla, Pune – 411465, Maharashtra, India
Tel. No.:	91-2114-270673 / 4 / 5
Fax No.:	91-2114-273310 / 273401
Factory :	They have 2 factories at Lonavala and 2 factory’s at Kamshet 215/3 Chikali, Kamshet, Pune, Maharashtra, India.
Corporate Office :	550 B, Sindh Society, Aund Baner Road, Pune, Maharashtra, India.
Tel. No.:	91-20-25851586

DIRECTORS

Name :	Mr. Ambrish Vijay Shah
Designation :	Managing Director
Address :	Flat No. 29, 8^th and 9^th Floor, Nikas Sekies, Aundh, Pune – 411007, Maharashtra, India.
Date of Birth/Age :	01.12.1971
Date of Appointment :	01.01.2004
Name :	Mr. Siddarth Vijay Shah
Designation :	Managing Director
Address :	Marbel Arch, 6^th Floor, Flat 22, Green Society, Aundh, Pune – 411007, Maharashtra, India svshah@perfectenginecomponents.com
Date of Birth/Age :	29.12.1973
Date of Appointment :	01.05.1992
Name :	Mr. Vijay Shivlal Shah
Designation :	Chairman cum Managing Director
Address :	Bunglow No. 10, Near Citi Bank Holiday Home, Valval, Lonavla – 410401, Maharashtra, India.
Date of Birth/Age :	15.11.1939
Date of Appointment :	06.11.1964
Name :	Ms. Mangala Vijay Shah
Designation :	Director
Address :	Bunglow No. 10, Near Citi Bank Holiday Home, Valval, Lonavla – 410401, Maharashtra, India.
Date of Birth/Age :	17.03.1946
Date of Appointment :	08.03.1990

KEY EXECUTIVES

Name :	M R M Associates
Designation :	Company Secretaries
Address :	First Floor, Dnyan Sudha Apartments, 77, Vijaynagar Colony, 2147, Sadashiv Peth, Pune – 411030, Maharashtra, India
Tel No.:	91-20-24335075 / 24320368 / 24334288
Email :	mrmcs@mrmcs.com
Website :	http://www.mrmcs.com
Name :	Mr. C.M.Gadgil
Designation :	C.F.O

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2007

Names of Shareholders	No. of Shares
Mr. Ambrish Shah	2798010
Mr. Siddharth Shah	2799630
Ms. Mangala Shah	1252260
Mr. Chetana Shah	2160
Pivotal Securities Private Limited	612900
Pasha Finance Private Limited	548160
JDP Shares And Finance Private Limited	312120
Ambrish Shah Trust	108000
Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	21.00
Directors or relatives of directors	79.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Performer Components.
Products :	Product Description Valve Seat Insert Valve Guides Tappets Turbo Chargers Journal Push Road
Export :
Country :	USA
Import :
Country :	Japan (Hitachi)
Trade Terms :
Purchasing :	LC, Credit
Selling :	Credit (170-270 days)

PRODUCTION STATUS AS ON 31.03.2008

Particulars	Licensed Capacity	Installed Capacity	Actual Production
SGI and Graded C.I.Castings	1000	1000	970.41
Alloy S.S.Castings	400	400	345.49
Alloys C.I.Castings	600	600	545.01
Cobalt Basc Castings	40	40	32.71

GENERAL INFORMATION

No. of Employees :

In office 1100

Contract workers 700

Bankers :

Ø State Bank of India, Wagle Industrial Estate Branch, Road No. 22, Thane – 400604, Maharashtra, India

Ø SBI Factors and Commercial Services Private Limited

2^nd Floor, Tara Chambers, Pune Mumbai Highway, Wakdewadi, Pune –

411003, Maharashtra, India.

Facilities :

Secured Loans As On 31.03.2008

Particulars	Rs. In Millions
Term Loan
State Bank Of India, Thane	166.477
Cash Credit And Other Advances From Banks
State Bank Of India, Thane (Cash Credit A/C)	172.158
State Bank Of India, Thane (Export Packing Credit)	124.599
From Financial Institutions
Sundaram Finance Limited (Vehicle Finance)	1.473
Total	464.707

Unsecured Loans As On 31.03.2008

Particulars	Rs. In Millions
Sales Tax Deferred Loan From SICOM	16.211
Deposits From Directors And Others	3.588
Total	19.799

Banking Relations :	Satisfactory
Auditors :
Name :	R. A. Jagtap and Company Chartered Accountants
Address :	427, Parekh Market, 39, Kennedy Bridge, Opera House, Mumbai – 400004, Maharashtra, India
Associates/Subsidiaries :	Kerla Engine Components Private Limited CIN No.: U35999MH2005PTC151387 Sales Turnover (2008):- Rs.690.000 Millions Expected (2008-09) :- 860.000 Millions Perfect Engine Components Private Limited CIN No.: U29120MH2005PTC150632 Sales Turnover (2008): Rs. 140.000 Millions Expected (2008-09) :- Rs. 260.000 Millions A.V.Transport

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
5250000	Equity Shares	Rs. 10/- each	Rs. 52.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5220800	Equity Shares	Rs. 10/- each	Rs. 52.208 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		52.208	16.315	16.315
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		596.985	403.230	165.982
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		649.193	419.545	182.297
LOAN FUNDS
1] Secured Loans		464.709	306.827	168.822
2] Unsecured Loans		19.800	16.995	16.303
TOTAL BORROWING		484.509	323.822	185.125
DEFERRED TAX LIABILITIES		10.392	0.000	0.000
TOTAL		1144.094	743.367	367.422
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		467.097	293.974	196.170
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		25.300	15.499	0.000
DEFERREX TAX ASSETS		0.000	0.000	7.499
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	363.852	269.853	123.948
	Sundry Debtors	350.623	294.908	94.602
	Cash & Bank Balances	20.402	9.995	4.087
	Other Current Assets	0.092	0.000	0.000
	Loans & Advances	164.757	48.073	23.323
Total Current Assets		899.726	622.829	245.960
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	191.989	179.565	68.754
	Provisions	56.041	9.370	13.453
Total Current Liabilities		248.030	188.935	82.207
Net Current Assets		651.697	433.894	163.753
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1144.094	743.367	367.422

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		1113.088	840.546	389.876
Other Income		16.428	10.550	1.667
Total Income		1129.516	851.096	391.543
Profit/(Loss) Before Tax		278.160	246.619	89.824
Provision for Taxation		38.435	7.510	7.771
Profit/(Loss) After Tax		239.725	239.109	82.053
Expenditures :
	Raw Material Consumed	648.893	468.211	180.686
	Consumption of stores and spares parts	NA	NA	15.951
	Increase/(Decrease) in Finished Goods	(89.323)	(110.278)	[48.336]
	Salaries, Wages, Bonus, etc.	NA	NA	28.698
	Managerial Remuneration	NA	NA	4.050
	Payment to Auditors	NA	NA	0.102
	Interest	52.775	41.075	16.304
	Insurance Expenses	NA	NA	1.858
	Power & Fuel	NA	NA	10.271
	Depreciation & Amortization	46.816	43.644	19.522
	Other Expenditure	192.195	161.825	72.612
Total Expenditure		851.356	604.477	301.718

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	21.22	28.09	20.96
Net Profit Margin (PBT/Sales)	(%)	24.98	29.34	23.04
Return on Total Assets (PBT/Total Assets}	(%)	19.98	26.45	20.32
Return on Investment (ROI) (PBT/Networth)		0.24	0.28	0.49
Debt Equity Ratio (Total Liability/Networth)		1.12	1.22	1.47
Current Ratio (Current Asset/Current Liability)		3.62	3.29	2.99

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets

• Building
• Plant and Machinery
• Foundry Equipments
• Fire Extinguisher
• Factory Equipments
• Office Equipments
• Telephone Equipments
• Furniture and Fixture
• Vehicles
• Fax
• Water Equipments
• Computers

This form is for	Modification of charge
Charge identification number of the charge to be modified	10096205
Corporate identity number of the company	U28920MH1964PLC012880
Name of the company	PERFECT ENGINEERING PRODUCTS LIMITED
Address of the registered office or of the principal place of business in India of the company	31, Golden Beach Co-operative Housing Society, Ruia Park, Juhu, Mumbai – 400049, Maharashtra, India.
Type of charge	Book Debts Others
Particular of charge holder	SBI Factors and Commercial Services Private Limited 2^nd Floor, Tara Chambers, Pune Mumbai Highway, Wakdewadi, Pune – 411003, Maharashtra, India.] sbifactor@eth.net
Nature of description of the instrument creating or modifying the charge	Supplemental agreement for increase in export factoring facilities (hypothecation agreement) executed on 16.10.2008 to create single charge on the book debts more particularly export receivables.
Date of instrument Creating the charge	16.10.2008
Amount secured by the charge	Rs. 266.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest An additional 0.50 bps over and above the extant of LIBOR+350 bps for the enhanced limit. Terms of repayment As factoring is based on whole turnover concept, all credit invoices on the approved customers namely M/s Eaton Corporation, general electric and GE Transportation system which are meant to avail the export factoring facility and which are integral part of these agreements, should be routed through SBI factors and commercial services private limited. Margin As per mutual agreed terms on the execution of bills. Extent and operation of the charge Entire single charge on the book debts and export receivables meant for the companies agreed for and for which the export factoring facility is being availed by these supplemental agreements, should be assigned in favour of SBI factors and commercial services private limited.
Short particulars of the property charged	Entire single charge on the book debts and export receivables meant for the companies agreed for and for which the factoring facility is being availed by these supplemental agreement should be assigned in favour of SBI factors and commercial services private limited and for which the records have been maintained at the works and at the Registered office of the borrower company.

Contingent Liabilities As On 31.03.2008

Particulars	Rs. In Million
Sales Bill Discounted	134.845
Bank Guarantee Issued Against Export Obligations For EOU Units.	2.800
Total	137.645

TRADE REFERENCES

Ø General Electric

Ø Tata Motors

Ø Cummins India.

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.48.52
UK Pound	1	Rs.72.62
Euro	1	Rs.63.76

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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
TOTAL		63

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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