MIRA INFORM REPORT

Report Date :

20.05.2008

IDENTIFICATION DETAILS

Name :	NEW BOMBAY ENGINEERING COMPANY
Registered Office :	31, Nutan Gangotri, B/2, Veer Desai Road, Andheri, Mumbai – 400058, Maharashtra
Country :	India
Financials (as on) :	31.03.2008 [Provisional]
Date of Incorporation :	22.03.1993
Com. Reg. No.:	11-24-82243-PMT-SSI
PAN No.: [Permanent Account No.]	AAEFN6556A
Legal Form :	Partnership concern with an unlimited liability of the partners.
Line of Business :	Manufacturer of Equipments and Fabricated 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

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear
Comments :	Subject is a well established and reputed concern having satisfactory track. Trade relations are fair. Business is active. No complaints have been heard about the payments from market sources. The concern can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	31, Nutan Gangotri, B/2, Veer Desai Road, Andheri, Mumbai – 400058, Maharashtra, India
Mobile No.:	91-9323112120
Area :	Lease – For 95 Years Rs. 1/- P.A.
Factory :	Plot No. R – 461, T. T. C., M.I.D.C. Industrial Area, Opposite B. M. K. Lab, Rabale, New Mumbai – 400701
Tel. No.:	91-22-27694922
E-Mail :	wtinbec@yahoo.com-hotmail.com

PARTNERS

Name :	Mr. Pravin Bhogilal Vakharia
Designation :	Partner
Address :	Flat No. 12, 2^nd Floor, ‘A’ Wing, Navavidyut Co-operative Housing Society Limited, Near Black Smith Tower on Plot No. 19, Sector 6, Airoli, Navi Mumbai – 400708, Thane
Name :	Mr. Ketan Pravinchandra Vakharia
Designation :	Partner
Address :	Shop No. 14, Ground Floor, “Sagar Vihar” behind School, Plot No. 58, Sector – 19, Airoli, Navi Mumbai – 400708, Thane

BUSINESS DETAILS

Line of Business :	Manufacturer of Equipments and Fabricated Goods
Products :	Environmental Plant Equipments Chemical Plant Equipments Structural Platforms Tanks and Vessels Manifolds Spray Risers Spray Headers etc.

PRODUCTION STATUS

Particulars	Unit	Installed Capacity
Heavy Fabrication in S.S. and M.S.	Tons	360 P.A.

GENERAL INFORMATION

Suppliers :	Monallika Metals [India] Sangpriya Steels N. R. Steel Corporation Deeplaxmi Steels Montex Metals [India] Maharashtra Ind. Marketing Company Burhani Tools Tatyasaheb Enterprises Aamir Trading Company Alpha Steel Tubes Private Limited Anil Engineering Works Bharat Traders Burhani Commercial Corporation Dairy Pharma Chem Liners Hanuman Security Services Harikrishna Nut Boil Center Jayko Fab Montex Metals Motor Care P. M. Entrepreneur Pooja Engineering Works Pragari Engineering Works Super Max Tubes Corporation The Motor Trade Supply Company Westend Foundry Private Limited Xmas Steels Private Limited Yadav Steel Brizing
Customers :	Hindustan Dorr Oliver Limited Batliboi Environmental Equipments Limited Associated Environmental Engineering Private Limited PhotoKina Private Limited Chromoline Screens Private Limited Chembond Chemicals Private Limited Mayora Mechanical and Electricals Private Limited Sterlite Industries Limited Delta Engineering AV Equipment Private Limited Chromoine Screen Products Limited GL and V India Private Limited Haden International group India Private Limited Henabh Equipments Private Limited Oriental Fabritech Private Limited Win Tech Industries Alps Environment Services Private Limited Logion Engineers Private Limited Photo Kina
No. of Employees :	10
Bankers :	Corporation Bank, Pansheel Commercial Complex – I Floor, Plot No. 87, Sector – IV, Airoli, Navi Mumbai

Banking Relations :

--

Auditors :

Name :

Pankaj Parekh and Company

Chartered Accountants

Address :

101, Monica, Near Hari Niwas Circle, L.B. S. Marg, Naupada, Thane – 400602

Tel. No.:

91-22-25433439 / 25360617

Fax No.:

91-22-25360617

Associates/Subsidiaries :

Name of Associate / Group Concerns	Nature of Activity	Bankers
Wintech Industries	Manufacturing of Industrial Noizies	Corporation Bank, Airoli

CAPITAL STRUCTURE

CAPITAL ACCOUNT [As on 31.03.2007]

Rs in Millions

MR. KETAN WAKHRIA
To Balance b/d	0.016	By Remuneration	0.107
To Firm Adv Tax [A.Y. 07-08]	0.006	By Share of Net Profit	0.135
To Firm Tax [A.Y. 06-07]	0.006
To F B T [A.Y. 07-08]	0.001
To Balance c/d	0.213
Total	0.242	Total	0.242

MR. PRAVIN WAKHRIA
To Drawings	0.010	By Balance b/d	0.351
To Firm Adv Tax [A.Y. 07-08]	0.024	By Remuneration	0.429
To Firm Tax [A.Y. 06-07]	0.022	By Share of Net Profit	0.538
To F B T [A.Y. 07-08]	0.004
To LIC	0.033
To Balance c/d	1.225
Total	1.318	Total	1.318

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008 [Provisional]	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Partners Capital		1.937	1.438	0.335
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1.937	1.438	0.335
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.568	0.768	0.768
TOTAL BORROWING		0.568	0.768	0.768
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2.505	2.206	1.103
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.881	0.929	0.972
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.005	0.005	0.005
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.550	0.218	0.022
	Sundry Debtors	2.560	1.424	0.159
	Cash & Bank Balances	1.004	1.172	0.074
	Other Current Assets	0.050	0.055	0.054
	Loans & Advances	0.000	0.000	0.000
Total Current Assets		4.164	2.869	0.309
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2.460	1.035	0.183
	Provisions	0.085	0.562	0.000
Total Current Liabilities		2.545	1.597	0.183
Net Current Assets		1.619	1.272	0.126
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2.505	2.206	1.103

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008 [Provisional]	31.03.2007	31.03.2006
Sales Turnover		7.660	6.911	0.084
Other Income		0.000	0.000	0.886
Total Income		7.660	6.911	0.970
Profit/(Loss) Before Tax		1.151	1.210	0.200
Provision for Taxation		0.000	0.000	0.000
Profit/(Loss) After Tax		1.151	1.210	0.200
Expenditures :
	Purchases	5.320	4.943	0.142
	Accounting Charges	0.010	0.008	0.005
	Audit Fees	0.017	0.008	0.000
	Bank Charges	0.002	0.003	0.002
	Staff Welfare Expenses	0.080	0.022	0.012
	Membership and Subscription	0.004	0.002	0.002
	Motor Car Expenses	0.005	0.000	0.000
	Professional Fees	0.038	0.018	0.010
	Salary	0.038	0.053	0.039
	Depreciation	0.069	0.077	0.078
	Other Expenditure	0.926	0.567	0.480
Total Expenditure		6.509	5.701	0.770

KEY RATIOS

PARTICULARS		31.03.2008 [Provisional]	31.03.2007	31.03.2006
PAT / Total Income	(%)	15.03	17.51	20.62
Net Profit Margin (PBT/Sales)	(%)	15.03	17.51	238.10
Return on Total Assets (PBT/Total Assets}	(%)	22.81	31.86	15.61
Return on Investment (ROI) (PBT/Networth)		0.59	0.84	0.60
Debt Equity Ratio (Total Liability/Networth)		1.61	1.64	2.84
Current Ratio (Current Asset/Current Liability)		1.64	1.80	1.69

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL ANALYSIS

Last Available financial statement

31.03.2008 [Unaudited]

Recent summary

Upto 31.03.2008

Advance Taxes Paid

Rs. 0.200 Million

Change in borrowings

Nil

Debtors Position

[At last month end 31.03.2008 specify amount > 90 days]

Rs. 1.863 Millions

Creditors Position

[At last month end 31.03.2008 specify all suppliers not paid for more than 90 days]

Rs. 0.521 Million

Stock Position [at last month end]

Rs. 0.550 Million

Whether the critical ratios conforms to the bench mark stipulation

All the Ratio conforms to the Bench Mark stipulation

Current Ratio	1.25
Debt-Equity Ratio	2.00:1
DSCR	1.50
TOL/TNW	4:1
Promoter’s Contribution	25%

FOR MANUFACTURING ENTITIES / FACTORY SITE [S]

Location of Plot, accessibility, proximity to other units	In the hart of TTC Industrial BLT well connected by Road and Trains
Principal raw material and sources	Local
Manufacturing Process	As per drawings supplied by client
Pollution Control : Any pollutants being generated and their disposal	Nil
Power : Connected load and back up availability	Connected 32 HP + Inverter sanctioned Load 72 HP
Inventory / WIP / Finished Goods at the Site	Rs. 0.600 Million approximately
Strong / Security / Perishability / Susceptibility to fire and weather	Non perishable SS and M.S. Material storage and security provided
Quality Certification	Yes for Testing Requirement
Workers / Split of temporary and permanent / any unions	8 to 12 Nos.
History of any strikes / any child labour / working conditions	No

OTHER PARTICULARS

Months [during the current year]	Purchases	Sales
As per B/S and P/L A/c for the year 2007-08	Rs. 5.320 Millions	Rs. 7.660 Millions

SWOT ANALYSIS OF THE UNIT

Strengths	Weakness
Both Partners are professionally qualified technocrats and having an average experience of about 30 years in this Line of Business	Require funds for capital investment and working capital
Opportunities	Threats
Ample across the globe, apart from local business export order from Italy are to be executed confirmed order Worth Rs. 1.200 to 1.500 Millions are in had and industries.	Constant increase in the cost of steel since past six months may lead pressure on working capital.

PROFIT SHARING RATIO

Mr. Pravin B. Vakharia	80 %
Mr. Ketan P. Vakharia	20 %

FIXED ASSETS

• Bajaj Spirit
• Computer
• Cycle
• Electrical Installation
• Factory Building
• Furniture and Fixture
• Land
• Machinery

PARTICULARS OF LOAN OR DEPOSIT IN AN AMOUNT EXCEEDING THE LIMIT SPECIFIED

Name	Maximum amount outstanding [Rs in Millions]
Chandra Vakharia	0.020
Kinnari Vakharia	0.119
Pravin Vakharia – HUF	0.043
Tushar Vakharia	0.280
P R V	0.306

OPERATING STATEMENT

Rs in Millions

ITEM	PROJECTED
	31.03.2009	31.03.2010	31.03.2011	31.03.2012	31.03.2013
Ross Sales	9.000	10.800	12.600	14.400	16.200
Domestic Sales / Receipts	9.000	10.800	12.600	14.400	16.200
Export Sales / Receipts	0.000	0.000	0.000	0.000	0.000
Less Excise Duty	0.000	0.000	0.000	0.000	0.000
Net Sales / Receipts	9.000	10.800	12.600	14.400	16.200
% Rise or fall in net sales as compared to previous year		2.000	1.667	1.429	1.250
Raw Material [ Inducing Spares and Other terms used in Manufacturing Process]	4.950	5.940	6.930	7.920	8.910
- Imported	4.950	5.940	6.930	7.920	8.910
- Indigenous	0.450	0.540	0.630	0.720	0.810
Other Spares
- Imported	--	--	--	--	--
- Indigenous	0.450	0.540	0.630	0.720	0.810
Power and Fuel	0.125	0.150	0.175	0.200	0.225
Direct Labour	0.570	0.684	0.810	0.950	1.108
Other Manufacturing Expenses	0.045	0.054	0.063	0.072	0.081
Depreciation	0.689	0.620	0.558	0.502	0.452
Sub Total	6.829	7.988	9.166	10.364	11.586
Add : Opening of Stock in Process
Less Closing Stock in Process
Cost of Production	6.829	7.988	9.166	10.364	11.586
Add Opening Stock in Finished goods
Less Closing Stock of Finished Goods
Less Closing Stock of Finished Goods
Cost of Sales	6.829	7.988	9.166	10.364	11.586
Selling, General and Administrative Expenses	0.322	0.358	0.421	0.489	0.561
Sub Total	7.151	8.346	9.587	10.853	12.147
Operating Profit Before Interest	1.849	2.454	3.013	3.547	4.053
Interest	0.898	0.864	0.810	0.744	0.665
Operating Profit After Interest	0.951	1.590	2.203	2.803	3.388
Add Other Non Operating Income	0.000	0.000	0.000	0.000	0.000
Sales Tax Refund
Other Income Including interest and Dividend
Trading Sales
Less other Non Operating Expenses	0.000	0.000	0.000	0.000	0.000
Purchases for Trading
Previous Years Expenses
Other Expenses
Other Non Operating Expenses	0.000	0.000	0.000	0.000	0.000
Profit / Loss Before Tax	0.951	1.590	2.203	2.803	3.388
Provision for Taxes
Net Profit / Loss	0.951	1.590	2.203	2.803	3.388
Equity Dividend paid
Retained Profit	0.951	1.590	2.203	2.803	3.388
Retained Profit to Net Profit %	100.00	100.00	100.00	100.00	100.00
Net Profit Sales	1.057	1.472	1.748	1.947	2.091

BALANCE SHEET

Rs in Millions

ITEM	PROJECTED
LIABILITIES	31.03.2009	31.03.2010	31.03.2011	31.03.2012	31.03.2013
Short Term Borrowing From Banks [Including Bills Purchased / Discounted]	1.287	1.544	1.802	2.062	2.322
From Corporation Bank	1.287	1.544	1.802	2.062	2.322
From Other Banks
Bills Discounted / Purchased
Loan Against Deposit
Sundry Creditors	0.450	0.540	0.630	0.720	0.810
Current Liabilities Excluding Bank Borrowing	0.450	0.540	0.630	0.720	0.810
Total Current Liabilities	1.737	2.084	2.432	2.782	3.132
Term Loan from Corporation Bank	5.389	4.755	4.033	3.211	2.277
Term Loan from Other Banks
Deferred Tax Liabilities
Unsecured Loans
Other Term Loans
Total Term Liabilities	5.389	4.755	4.033	3.211	2.277
Total Outside Liabilities	7.126	6.839	6.465	5.993	5.409
Ordinary Share Capital	1.848	1.934	2.020	2.107	2.194
General Reserves
Subsidy Account
Surplus / Deficit in Profit / Loss	0.951	2.541	4.744	7.546	10.934
Net Worth	2.799	4.475	6.764	9.653	13.128
Total Liabilities	9.925	11.314	13.229	15.646	18.537
TOL / NET WORTH	0.255	0.153	0.096	0.062	0.041
Total Debt	6.676	6.299	5.835	5.273	4.599
Debt / Equity	0.239	0.141	0.086	0.055	0.035
Cash and Bank Balance	1.353	2.928	4.967	7.450	10.355
Investments Excluding Loan Term Invest	0.000	0.000	0.000	0.000	0.000
Investments in Government Securities
Investments in Bank Deposits
Other Investments
Receivables Excluding Deferred and Export [including purchased / discounted by Banks]	0.750	0.900	1.050	1.200	1.350
Export Receivables / Associate Firm [Including purchased / discounted by Banks]
Total Receivables
Deferred Receivables due in One Year	0.750	0.900	1.050	1.200	1.350
Inventory	1.415	1.699	1.983	2.269	2.557
Raw Material [Including Stores and Spares]	0.000	0.000	0.000	0.000	0.000
Imported
Indigenous
Stock in Process	1.415	1.699	1.983	2.269	2.557
Finished Goods
Other Consumable Stores	0.000	0.000	0.000	0.000	0.000
Imported
Indigenous
Advances to Suppliers of Raw Materials and Stores and Spares
Advances payment of Taxes – Net Provision
Other Current Assets
Total Current Assets	3.518	5.527	8.000	10.919	14.262
Gross Block	6.890	6.201	5.581	5.023	4.521
Depreciation to Date	0.689	0.620	0.558	0.502	0.452
Net Block	6.201	5.581	5.023	4.521	4.069
Investments / Book Debts / Advances / Deposits which are not Current Assets	0.000	0.000	0.000	0.000	0.000
Investments in Subsidiaries Companies
Other Investments
Capital Work in Process
Deferred Receivables
Non Consumables Stores and Spares
Other Non Current Assets	0.206	0.206	0.206	0.206	0.206
Total Non Current Assets	0.206	0.206	0.206	0.206	0.206
Intangible Assets
Total Assets	9.925	11.314	13.229	15.646	18.537
Tangible Net Worth	2.799	4.475	6.764	9.653	13.128
Net Working Capital	1.781	3.443	5.568	8.137	11.130
To tally with
Current Ratio	2.03	2.65	3.29	3.92	4.55
Total Outside Liabilities / Tangible Net Worth	0.255	0.153	0.096	0.062	0.041

COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE FOR WORKING CAPITAL

Rs in Millions

ITEM	PROJECTED
	31.03.2009	31.03.2010	31.03.2011	31.03.2012	31.03.2013
1 Total Current Assets	3.518	5.527	8.000	10.919	14.262
2 Other Current Liabilities Excluding Bank Borrowings for Working Capital	0.450	0.540	0.630	0.720	0.810
3 Working Capital	3.068	4.987	7.370	10.199	13.452
4 Min Stipulated Working	0.880	1.382	2.000	2.730	3.566
[25 % of Current assets excluding export Receivables]
5 Actual / Projected Net Working Capital	1.781	3.443	5.568	8.132	11.130
6 Item 3 Minus Item 4	2.189	3.605	5.370	7.469	9.887
7 Item 3 Minus item 5	1.287	1.544	1.802	2.062	2.322
8 Maximum Permissible Bank Finance
9 Excess Borrowing Representing / Shortfall in Working Capital	0.901	2.061	3.568	5.407	7.565

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.42.72
UK Pound	1	Rs.83.96
Euro	1	Rs.66.90

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	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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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