MIRA INFORM REPORT

Report Date :

26.12.2011

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) :	31.03.2010
Date of Incorporation :	14.02.1992
Com. Reg. No.:	11-65411
Capital Investment / Paid-up Capital :	Rs.5.000 Millions
CIN No.: [Company Identification No.]	U29299MH1992PTC065411
TAN No.: [Tax Deduction & Collection Account No.]	MUMP06718F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of Pressure Vessels, Heat Exchangers, Boiler Equipments, Hazardous Chemicals Spheres, Tools and Equipment.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 440000
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 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.

INFORMATION DECLINED BY

Name :	Mr. Pradeep Kamtekar
Designation :	Accounts Manager
Date :	23.12.2011

LOCATIONS

Registered Office :	Harichand Textile Mill Complal Bahadur Sastry Marg, Vikhroli (West), Mumbai-400078, Maharashtra, India
Tel. No.:	91-22-25783093/ 25782890/ 25648352/ 67974537/ 38
Fax No.:	91-22-25787975
E-Mail :	nitin@philsengg.com pec@philsengg.com accounts@philisengg.com pradeep@philsengg.com phel@philsengg.com
Website :	http://www.philsengg.com
Area :	1900 sq. ft.
Location :	Rented
Factory :	Plot No. 3-6, Mumbai Nashik Road, Vahali Village, P. O. Padgha, Tal., 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 phel@philsengg.com
Area :	7000 sq. ft.
Location :	Owned

DIRECTORS

(AS ON 29.09.2010)

Name :

Mr. Philip Varughese Panavelil

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

DIN No.:

01038625

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U29299MH1992PTC065411	PHILS HEAVY ENGINEERING PRIVATE LIMITED	Director	14/02/1992	14/02/1992	Active	NO
2	U28112TN1999PTC042750	SOUTHERN HEAVY ENGINEERING PRIVATE LIMITED	Director	1/7/1999	1/7/1999	Active	NO

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

DIN No.:

01040926

Name :

Mr. Ajay Kurian Philip

Designation :

Director

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

DIN No.:

02121662

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U29197MH1986PTC039528	FINE FILTERS PRIVATE LIMITED	Director	1/11/1994	1/11/1994	Active	NO
2	U29299MH1992PTC065411	PHILS HEAVY ENGINEERING PRIVATE LIMITED	Director	6/5/2008	6/5/2008	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 29.09.2010)

Names of Shareholders	No. of Shares
Philip Varughese Panavelil	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

(AS ON 30.09.2010)

Equity Shares Break – Up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Pressure Vessels, Heat Exchangers, Boiler Equipments, Hazardous
Chemicals Spheres, Tools and Equipment.

Products :

Products Description	Item Code No.
Tanks and Pressure Vessels	8479

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Heat Exchanger	Nos.	NA	NA	2
Tanks and Pressure Vessels	Nos.	NA	NA	37
Parts of Equipment etc	Nos.	NA	NA	47 (Includes 34 Boxes, 11 Nos and 2 Lots)

GENERAL INFORMATION

No. of Employees :

50 (Approximately)

Bankers :

· Canara Bank

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

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From Bank
Term Loan	23.974	33.911
Against Fixed Deposits with Bank	1.800	0.000
Other	51.626	29.519
Interests Accured on Loan	0.146	0.215
From Other
Term Loan	0.765	1.339
Total	78.311	64.984
NOTE: · Term Loans are secured by hypothecation of Vehicles and Machinery Purchased against them. · Other loans from bank are secured by hypothecation of plant and machinery, stock, semi-finished goods and debts and equitable mortgage of land and building of company at Village Vahuli. · Other loans from bank are secured by personal guarantee of directors Mr. P. V. Philip and Mr. V. Philip. · Other Loans from bank are secured by second charge on residential property of Mr. P. V. Philip, directors at Mulund. · Loans from bank against fixed deposits with bank are secured by fixed deposits with bank.
Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From Directors	0.126	0.276
From Shareholders	0.190	0.190
Interests Accured on Loans	0.042	0.141
Total	0.358	0.607

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
PAN No.:	AABPT1632J
Other Related Parties :	· Phils Engineering Corporation Address: Vikhroli-West, Harichand Textile Mill Compound, LBS Marg, Mumbai-400079, Maharashtra, India · Philcost India · Phils Hoist and Cranes Inc. · Phils Biotech Corporation · Southern Heavy Engineering and Fabrication Private Limited · Fine Fiters Private Limited

CAPITAL STRUCTURE

(AS ON 29.09.2010)

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		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		5.000	5.000	5.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		105.618	73.833	52.490
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		110.618	78.833	57.490
LOAN FUNDS
1] Secured Loans		78.311	64.984	59.312
2] Unsecured Loans		0.358	0.607	2.221
TOTAL BORROWING		78.669	65.591	61.533
DEFERRED TAX LIABILITIES		5.431	3.892	0.000
TOTAL		194.718	148.316	119.023
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		128.495	78.192	19.282
Capital work-in-progress		1.089	30.966	9.550
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	81.816	74.362	88.833
	Sundry Debtors	13.557	10.935	66.417
	Cash & Bank Balances	78.316	53.987	39.102
	Other Current Assets	4.106	2.518	1.034
	Loans & Advances	37.216	34.405	36.774
Total Current Assets		215.011	176.207	232.160
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	95.040	84.442	103.930
	Other Current Liabilities	37.709	42.167	25.229
	Provisions	17.128	10.440	12.810
Total Current Liabilities		149.877	137.049	141.969
Net Current Assets		65.134	39.158	90.191
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		194.718	148.316	119.023

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	267.324	229.297	237.215
		Labour and Service Charges	11.821	15.409	23.251
		Other Income	4.012	6.011	4.060
		TOTAL (A)	283.157	250.717	264.526
Less	EXPENSES
		Manufacturing the Other Expenses	211.940	207.051	221.208
		TOTAL (B)	211.940	207.051	221.208
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		71.217	43.666	43.318
Less	FINANCIAL EXPENSES (D)		8.600	6.353	6.737
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		62.617	37.313	36.581
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.414	3.287	1.916
	PROFIT BEFORE TAX (E-F) (G)		49.203	34.026	34.665
Less	TAX (H)		17.529	13.593	12.810
	PROFIT AFTER TAX (G-H) (I)		31.674	20.433	21.855
Less/ Add	PREVIOUS PERIOD ITEMS		0.110	0.910	(0.212)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		73.833	52.490	30.847
	BALANCE CARRIED TO THE B/S		105.617	73.833	52.490
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	3.290	1.694	0.000
		Other Earnings	0.068	0.000	0.000
	TOTAL EARNINGS		3.358	1.694	0.000
	IMPORTS
		Raw Materials	26.533	32.117	59.551
		Stores & Spares	0.000	0.000	0.000
		Capital Goods	0.012	13.313	0.000
	TOTAL IMPORTS		26.545	45.430	59.551
	Earnings Per Share (Rs.)		63.35	40.87	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	11.19	8.15	8.27
Net Profit Margin (PBT/Sales)	(%)	18.41	14.84	14.61
Return on Total Assets (PBT/Total Assets}	(%)	14.32	13.38	13.79
Return on Investment (ROI) (PBT/Networth)		0.44	0.43	0.60
Debt Equity Ratio (Total Liability/Networth)		2.07	2.57	3.54
Current Ratio (Current Asset/Current Liability)		1.43	1.29	1.64

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2010	31.03.2009	31.03.2008
	(Rs. In Millions)
Sundry Creditors
- Micro, Small and Medium Enterprises	0.994	0.000	0.000
- Others	94.046	84.442	103.930
Total	95.040	84.442	103.930

BUSINESS:

Considering the prevailing general business conditions the performance of the company has been reasonably good during the year. Both turnover and profit have increased as compared to last year.

Bankers Charges Report as per Registry

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 phel@philsengg.com
This form is for	Modification of charge
Charge identification number of the modified	80004111
Type of charge	Immovable Property
Particular of charge holder	Canara Bank, Vikhroli (West) Branch, Hazari Bagh, Vikhroli, Mumbai-400083, Maharashtra, India kamalax_saraf@hotmail.com
Nature of description of the instrument creating or modifying the charge	No Instrument. Ledtd to be used where additional limit is granted on the very security (Inclusive of third party property already given to the Bank)
Date of instrument Creating the charge	12.09.2011
Amount secured by the charge	Rs.524.241 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As Per Sanctioned Terms. Terms of Repayment As Per Sanctioned Terms. Margin As Per Sanctioned Terms. Extent and Operation of the charge As Per Sanctioned Terms. Others: Not Applicable.
Short particulars of the property charged	All the goods and Commodities such as B.Q. Plates at Plot No.3 to 6 Mumbai Nasik Road, Vahuli Village, P.O. Padgha, Tal. Bhivandi, District Thane.
Particulars of the present modifications	Now by the present Modfn. dt. 12.09.2011 the company created an extension of charge by way of an equitable mortgage by deposit of title deeds over the immovable properties to secure the extended credit facilities of Rs.524.241 Millions

FIXED ASSETS:

· Land

· Plant and Machinery

· Computer

· Vehicles

· Building

· Furniture and Fixtures

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.52.72
UK Pound	1	Rs.82.71
Euro	1	Rs.68.90

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	6
--LIQUIDITY	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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.