MIRA INFORM REPORT

Report Date :

19.12.2008

IDENTIFICATION DETAILS

Name :	PHILS HEAVY ENGINEERING PRIVATE LIMITED
Registered Office :	Harichand Textile Mill Complal Bahadur Sastry Marg, Vikhroli (West), Mumbai-400078, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	14.02.1992
Com. Reg. No.:	11-65411
CIN No.: [Company Identification No.]	U29299MH1992PTC065411
TAN No.: [Tax Deduction & Collection Account No.]	MUMP06718F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Heavy Engineering Goods

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 170000
Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear
Comments :	Subject is an established and reputed company having satisfactory track. Trade relations are fair. Business is active. No complaints have been heard. The company can be considered good for normal business dealings.

INFORMATION PARTED BY

Name :	Mr. Pradeep Chaudary
Designation :	Accounts Executive
Date :	18.12.2008

LOCATIONS

Registered Office :	Harichand Textile Mill Complal Bahadur Sastry Marg, Vikhroli (West), Mumbai-400078, Maharashtra, India
Tel. No.:	91-22-25783093/ 25782890/ 25648352
Fax No.:	91-22-25787975
E-Mail :	Nitin@philsengg.com pec@philsengg.com accounts@philisengg.com
Website :	http://www.phils.engg.com
Area :	Rented
Factory :	Survery 77 1/75 Plot No. 3-6, Vahali Village, Agra Road, Taluka Bhiwandi, Padgha District, Thane, Maharashtra, India
Tel. No.:	91-52522-68052/ 68453/ 68454
Fax No.:	91-52522-68453/ 68051
E Mail:	phelworks@philsengg.com

DIRECTORS

Name :	Mr. P V Philip
Designation :	Director
Address :	B, Yamuna, Nahur, Mulund (West), Mumbai-400080, Maharashtra, India
Date of Birth/Age :	02.01.1940
Date of Appointment :	14.02.1992
Name :	Mr. Varghese Philip
Designation :	Director
Address :	B, Yamuna, Nahur, Mulund (West), Mumbai-400080, Maharashtra, India
Date of Birth/Age :	10.10.1971
Date of Appointment :	14.02.1992
Name :	Mr. Ajay Kurian Philip
Designation :	Dirctor
Address :	3,4, Yamuna, Opposite St. Mary’s Convernt, Nahur Road, Mulund (West), Mumbai-400080, Maharashtra, India
Date of Birth/Age :	31.10.1975
Date of Appointment :	06.05.2008

KEY EXECUTIVES

Name :	Mr. Pradeep Chaudary
Designation :	Accounts Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.07.2007

Names of Shareholders	No. of Shares
P V Philip	100
Varghese Philip	90
V K Ambujakshi Amma	5
Achamma Philip	5
P.V Philip and A philip	437300
A Philip and P.V. Philip	62500
Total	500000

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2007

Category	Percentage
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Heavy Engineering Goods
Exports :
Countries :	· Saudi Arabia · Malaysia
Imports :
Products :	Plates
Countries :	· Germany · Korea
Terms :
Selling :	Credit, Advance
Purchasing :	L/C, Credit ( 30 Days)

GENERAL INFORMATION

Customers :

OEM’s

No. of Employees :

50

Bankers :

Canara Bank, Vikhroli (West) Branch, Hazari Bagh, Vikhroli, Mumbai-400083, Maharashtra, India

Facilities :

SECURED LOAN	31.03.2007 Rs. In Millions
From Bank
Term Loan	0.061
Other (Against Fixed Deposits with Bank)	10.441
Interest Accrued on Loan	0.002
From Others
Term Loan	0.214
Total	10.718
Term Loan: Term Loan are secured by hypothecation of cars Loans form Bank are secured by hypothecation of Plant and Machinery, Stocks, semi-finished goods and debts and equitable mortgage of land and building or company at village vahuli Loans from bank are secured by personal Guarantee of directors Mr. P V Philip and Mr. V Philip Loans from Bank are secured by second charge on residential property of Mr. P V Philip, Director at Mulund
Secured Loan	31.03.2007 Rs. In Millions
From Directors	5.926
From Shareholdes	0.190
Interest Accrued on Loans	2.032
Total	8.148
Interest Accrued on Loans from Directors is Rs. 2.004 Millions (Previous Years Rs. 1.373 Millions)

Banking Relations :	--
Auditors :
Name :	S.D Tamhankar and Company Chartered Accountant
Address :	6/138, Vijaynagar, S.N. Marg, Andheri (East) Mumbai-400069, Maharashtra, India
Tel. No.:	91-22-26821303
Associates/Subsidiaries :	· Phils Engineering Corporation Address: Vikhroli-West, Harichand Textile Mill Compound, LBS Marg, Mumbai-400079, Maharashtra, India · Phils Heavy Engineering Address: Vikhroli-West, Harichand Textile Mill Compound, LBS Marg, Mumbai-400079, Maharashtra, India · Fine Fiters Private Limited

CAPITAL STRUCTURE

As on 30.09.2007

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs. 10/- each	Rs. 5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs. 10/- each	Rs. 5.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		5.000	5.000	5.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		30.847	22.422	15.220
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		35.847	27.422	20.220
LOAN FUNDS
1] Secured Loans		10.718	4.121	4.260
2] Unsecured Loans		8.148	7.531	2.216
TOTAL BORROWING		18.866	11.652	6.476
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		54.713	39.074	26.696
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14.915	13.378	13.842
Capital work-in-progress		0.904	1.376	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	64.084	25.052	21.836
	Sundry Debtors	8.493	13.338	15.627
	Cash & Bank Balances	53.402	26.420	11.756
	Other Current Assets	2.195	0.769	0.415
	Loans & Advances	19.572	11.132	7.195
Total Current Assets		147.746	76.711	56.829
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	102.942	47.599	42.445
	Provisions	5.910	4.792	1.530
Total Current Liabilities		108.852	52.391	43.975
Net Current Assets		385.894	24.320	12.854
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		54.713	39.074	26.696

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		116.168	83.089	64.393
Other Income		8.182	4.688	0.000
Total Income		124.350	87.777	64.393
Profit/(Loss) Before Tax		14.544	12.023	4.138
Provision for Taxation		5.801	4.728	1.540
Profit/(Loss) After Tax		8.743	7.295	2.598
Expenditures :
	Manufacturing Expenses	105.843	73.348	0.000
	Interest	2.461	1.135	0.000
	Depreciation & Amortization	1.502	1.271	60.255
Total Expenditure		109.806	75.754	60.255

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	7.03	8.31	4.03
Net Profit Margin (PBT/Sales)	(%)	12.52	14.47	6.43
Return on Total Assets (PBT/Total Assets}	(%)	8.94	13.35	5.86
Return on Investment (ROI) (PBT/Networth)		0.41	0.44	0.20
Debt Equity Ratio (Total Liability/Networth)		3.56	2.34	2.49
Current Ratio (Current Asset/Current Liability)		1.36	1.46	1.29

LOCAL AGENCY FURTHER INFORMATION

Trade References:

· Larson and Turbo

· Toyo Engineering India Private Limited, Kanjurmarg, Mumbai

Fixed Assets:

· Land

· Plant and Machinery

· Computer

· Vehicles

· Building

· Furniture and Fixtrues

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	80004111
Corporate identity number of the company	U29299MH1992PTC065411
Name of the company	PHILS HEAVY ENGINEERING PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Harichand Textile Mill Complal Bahadur Sastry Marg, Vikhroli (West), Mumbai-400078, Maharashtra, India
Type of charge	Book Debts Movable Property
Particular of charge holder	Canara Bank, Vikhroli (West) Branch, Hazari Bagh, Vikhroli, Mumbai-400083, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Supplemental Common Hypothecation Agreement
Date of instrument Creating the charge	20.12.2007
Amount secured by the charge	Rs. 165.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As Per Sanctioned Terms and Conditions. Terms of Repayment As per Sanctioned terms and Conditions Margin As per Sanctioned terms and conditions. Extent and Operation of the charge Cash credit Rs. 30.000 Millions L/C Rs. 15.000 Millions ST Rs. 45.000 Millions ILC Rs. 20.000 Millions ST Rs. 20.000 Millions Guarantee Rs. 25.000 Millions ST Rs. 10.000 Millions
Short particulars of the property charged	Primary Security – Hypothecation of Book debts Collateral Security – Plant and Machinery EMT of Plot No. 3 and 6 Vahul (District Thane) EMT of Plot No. 1 and 2 Vahuli Bhiwandi
Date of latest modification prior to the present modification	22.11.2007

Name of the company

PHILS HEAVY ENGINEERING PRIVATE LIMITED

Presented By

Canara Bank, Vikhroli (West) Branch, Hazari Bagh, Vikhroli, Mumbai-400083, Maharashtra, India

1) Date and description of instrument creating the change

Hypothecation of Goods and bookdebts (For DALC/ DPG/ Guarantees) dated 26.03.1998

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 10.000 Millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

All the goods and commodities such as B Q Plates now or lying or hereafter stored at the godowns, yards and premises plot no. 3 to 6 Mumbai, Nashik Road, Vahuli Village, P.O. Padgha. Taluka Bhiwandi, District Thane

All the book debts, olutstanding moneys, receivabels, claims and bills arisisng out of the said credit facilities which are now due and owing and of this security becomes due and owing to the borrower in the course of its business by any persons, firm, company or by the Government or any local body or authority

4) Gist of the terms and conditions and extent and operation of the charge.

R.O.I : 20.40% p.a.

5) Name and Address and description of the person entitled to the charge.

Canara Bank, Vikhroli (West) Branch, Hazari Bagh, Vikhroli, Mumbai-400083, Maharashtra, India

6) Date and brief description of instrument modifying the charge

Common Hypothecation Agreement dated 07.10.2005

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

The Original charge was created on 26.03.1998 for Rs. 10.000 Millions 1stly modified on 26.03.1998 by giving and additional collateral security. Now by the present modification dated 07.10.2005 the limit has been increased to Rs. 25.000 Millions The Limits are as follows.

(Rs. In Millions)

Nature of Facility	Existing Limits	Modified/ Enhanced Limits
Overdraft (Book Debts) Fresh	--	4.000
Letter of Credit FLC/ ILC	4.000	8.500
Guarantee	6.000	12.500
	Total	25.000

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.47.28
UK Pound	1	Rs.73.43
Euro	1	Rs.68.22

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
--PROFITABILIRY	1~10	4
--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
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 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