MIRA INFORM REPORT

Report Date :

20.08.2011

IDENTIFICATION DETAILS

Name :	PRATIK HEAT PRODUCTS PRIVATE LIMITED
Registered Office :	11, Tankiwala Industrial Estate, Steel Made Compound, Marol, Andheri (East), Mumbai- 400059, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	10.05.1999
Com. Reg. No.:	11-119796
Capital Investment / Paid-up Capital :	Rs. 1.484 millions
CIN No.: [Company Identification No.]	U29300MH1999PTC119796
TAN No.: [Tax Deduction & Collection Account No.]	MUMP10752A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Industrial Electric Heaters.
No. of Employees :	60 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 190000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Manish
Designation :	Director
Contact No.:	91-9967188885
Date :	16.08.2011

LOCATIONS

Registered Office/ Factory :	11, Tankiwala Industrial Estate, Steel Made Compound, Marol, Andheri (East), Mumbai- 400059, Maharashtra, India
Tel. No.:	91-22-29200183/ 29200189/ 29204284 / 28503385
Fax No.:	91-22-29254309
E-Mail :	accounts@phpheat.com
Website :	www.phpheat.com
Area :	15000 sq. ft.
Location :	Rented

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Rajnikant Pravinchandra Shah
Designation :	Director
Address :	104, Manish Tower, 5/6, Manish Nagar, J.P Road, Andheri (East), Mumbai- 400053, Maharashtra, India
Date of Birth/Age :	23.03.1943
Date of Appointment :	10.05.1999
DIN No :	00271814
Name :	Mr. Premal Rameshchandra Shah
Designation :	Director
Address :	3, Kamal Building, 59, Presidency Society, N.S Road No.6, Juhu Scheme, Vile Parle (West), Mumbai- 400053, Maharashtra, India
Date of Birth/Age :	27.03.1967
Date of Appointment :	10.05.1999
DIN No :	00271836
Name :	Mr. Pratlk Rameshchandra Shah
Designation :	Director
Address :	5A, 5^th Floor, Chandravilla Apartment, Gulmohar Road, JVPD Scheme, Ville Parle (West), Mumbai- 400056, Maharashtra, India
Date of Birth/Age :	05.03.1969
Date of Appointment :	01.07.2004
DIN No :	01529094
Name :	Mr. Manish Rameshchandra Shah
Designation :	Director
Address :	104, Manish Tower, 5/6, Manish Nagar, J.P Road, Andheri (East), Mumbai- 400053, Maharashtra, India
Date of Birth/Age :	19.07.1969
Date of Appointment :	01.07.2004
DIN No :	01723393

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Premal Shah	44570
Rajnikant Shah	29680
Pratlk R. Shah	44520
Manish R. Shah	29680
Total	148450

AS ON 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Industrial Electric Heaters.
Products :	Coil Heaters Micro Tubular Coiled Heater High Watt Density Cartridge Ceramic Band Heaters Mica Nozzle Heaters Coil Heaters Cast in Brass Formed Tubular Heater Hi Performance Heater for Machine Nozzles Mica Band Heaters Cartridge Heaters
Exports :
Products :	· Industrial Electrics Heaters
Countries :	· USA · Canada · UK
Imports :
Products :	· Raw Material
Countries :	· USA · China · Japan
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

GENERAL INFORMATION

Customers :

· Wholesalers

· Retailers

No. of Employees :

60 (Approximately)

Bankers :

· Dena Bank, Marol Branch, Andheri(East), Mumbai, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Reliance Capital (Secured against car)	0.180	0.371
HDFC Bank 1-20 Car Loan	0.312	0.000
Total	0.492	0.371

Banking Relations :	--
Auditors :
Name :	C. C. Dalal and Company Chartered Accountant
Address :	Jeevan Udyog, 278, Dr. D.N Road, Mumbai- 400001, Maharashtra, India
PAN No.:	AAAFC0110F
Tel. No.:	91-22-22071332/ 22074687/ 220700674
Fax No.:	91-22-22073842
E-Mail :	ccdalal@bom5.vsnl.net.in
Sister Concern :	Vinman Industries

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
148450	Equity Shares	Rs.10/- each	Rs.1.484 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		1.484	1.484	1.484
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		46.245	34.604	24.923
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		47.729	36.088	26.407
LOAN FUNDS
1] Secured Loans		0.492	0.371	0.538
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.492	0.371	0.538
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		48.221	36.459	26.945
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.083	4.445	4.689
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		26.747	2.821	4.250
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	8.294	8.143	8.309
	Sundry Debtors	6.609	4.347	2.990
	Cash & Bank Balances	4.277	16.726	1.146
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	16.285	11.706	19.274
Total Current Assets		35.465	40.922	31.719
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2.655	1.158	0.704
	Other Current Liabilities	0.864	0.847	0.824
	Provisions	15.555	9.724	12.185
Total Current Liabilities		19.074	11.729	13.713
Net Current Assets		16.391	29.193	18.006
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		48.221	36.459	4.250

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	48.743	38.631	42.418
		Other Income	3.651	3.251	1.250
		TOTAL (A)	52.394	41.882	43.668
Less	EXPENSES
		Cost of Materials		15.918	17.881
		Manufacturing Expenses		1.061	0.891
		Employees Remuneration		5.365	5.088
		Marketing Expenses		2.318	1.899
		Administrative Expenses		2.931	2.595
		Advertising Expenses		(1.016)	0.011
		TOTAL (B)	34.924	26.577	28.365
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		Including Financial	15.305	15.303
			Expenses
Less	FINANCIAL EXPENSES (D)		And	0.215	0.118
			Depreciation
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			15.090	15.185
Less/ Add	DEPRECIATION/ AMORTISATION (F)			0.753	0.809
	PROFIT BEFORE TAX (E-F) (G)		17.470	14.337	14.376
Less	TAX (H)		5.830	4.858	4.995
	PROFIT AFTER TAX (G-H) (I)		11.640	9.479	9.381
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	9.501	9.300
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	27.459	24.403	22.178
	TOTAL EARNINGS		27.459	24.403	22.178
	IMPORTS
		Raw Materials	3.050	3.152	5.086
	TOTAL IMPORTS		3.050	3.152	5.086
	Earnings Per Share (Rs.)		78.41	64.01	--

Particulars	31.03.2011
Sales Turnover (Approximately)	50.000

The above information has been parted by Mr. Manish.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	22.22	22.63	21.48
Net Profit Margin (PBT/Sales)	(%)	35.84	37.11	33.89
Return on Total Assets (PBT/Total Assets}	(%)	43.08	31.60	39.48
Return on Investment (ROI) (PBT/Networth)		0.37	0.39	0.54
Debt Equity Ratio (Total Liability/Networth)		0.41	0.33	0.53
Current Ratio (Current Asset/Current Liability)		1.86	3.49	2.31

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

For the year ended March 31, 2010 the company has reported net profit of Rs. 11.640 (after tax) with turnover of Rs.48.743 millions. As compared to previous years figures, turnover increased by 26.17% but net profit is up by 22.79% because of increase in other income and foreign exchange rate difference.

In spite of above, company is able to operate with stable growth rate and efficiency.

FORM 8

Name of the company	PRATIK HEAT PRODUCTS PRIVATE LIMITED
Presented By	Dena Bank, Marol Branch, Andheri(East), Mumbai, Maharashtra, India
1) Date and description of instrument creating the change	Unattested agreements of hypothecation of goods, book debts and other movable assets dated the 06.11.1999, and made between Pratik Heat Products Private Limited (therein and hereinafter referred to as “the borrowing”) of the one part and Dena Bank (therein and hereinafter referred to as “the bank of the other part.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.0.500 million
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	Hypothecation by the borrower, in favour of the bank, by way of first charge, of all the present and future stock in trade consisting of Nichrome wires, S.S Tubings, high temprature insulting materials, M.G powder etc. goods in process, semi-finished goods, finished goods, such as industrial electrical heater other heating equipments etc, stores, spares at the factory premises of the borrower at 11, Tankiwala Industries Estate, Marol Maroshi Road, Andheri (East), Mumbai- 400059 or elsewhere and stored in any Godown Jatha, storage place or elsewhere and in the possession and occupation of the borrower and in transit to of all the present and future vbook debts money, outstanding, receivables, bills, claims, contractor, engagements, chits funds etc. and belonging to the borrower and which are now due and owing by the borrower and which may hereafter during the continuance of the security become due and owing by the borrower by way person, firm, company, the government of India, any state government, Indian Railways. Body Corporates, Mumncipal, Local and Civic authorities, industries concerns, Institutional. Public sector undertake and projects etc, and hypothecation by the borrower, in favour movable fixed assets including plant and machinery and tools stores ,spares, accessories, equipments etc. relating to such plant and machinery and furniture fixture, typewriters, vehicles office equipments etc, belonging to the borrower at marol, Andheri, Mumbai, or elsewhere and whether installed or not, lying loose or in case and in the possession and occupation of the borrower and in transit to marol, Andheri (East), Mumbai or wheresoever’s and of whatsoever nature.
4) Gist of the terms and conditions and extent and operation of the charge.	a) Hypothecation by the borrower in favour of the, of all the present and future, stock in trade etc. book debts etc. plant and machinery etc. stated in detail above as security for payments by the borrower to the bank of all the amount due, payables and outstanding in respect of cash credit hypothecation (stock) arrangement granted by the bank to the borrower to the extent of Rs.0.500 million with interests, costs, charge, expenses etc. interest : 8.83% over the bank rate with a minimum of 16.83% p.a or at such other rate or rates as may be decided by the bank from time to time. Margin 25% b) Power to inspect, to sell, to insure, to take possession, to appoint received etc.
5) Name and Address and description of the person entitled to the charge.	Dena Bank Marol Branch, Andheri (East), Mumbai- 400059, Maharashtra, India
6) Date and brief description of instrument modifying the charge	NA
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.	NA

FIXED ASSETS

• Goodwill
• Furniture and Fixture
• Computer Software
• Motor Car
• Fax Machine
• Plant and Machinery
• Typewriter
• Tools and Dies
• Air Conditioner
• Office Equipments
• Building

AS PER WEBSITE DETAILS

INTORDUCTION

From a modest beginning in the year 1969, formed by Late Shri. Rameshchandra Shah and Mr. Rajanikant Shah, with a vision to providing quality heating elements, PHP started catering to a limited number of conglomerates in Indian state of Maharashtra.

Today, subject has grown to become a Leading Manufacturer and Exporter providing Total Heating Solutions to the plastic processing and other vertical industries in India & across the globe.

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. 45.61
UK Pound	1	Rs. 75.32
Euro	1	Rs. 65.68

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
--PROFITABILIRY	1~10	5
--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	YES
--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	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.