MIRA INFORM REPORT

Report Date :

01.07.2011

IDENTIFICATION DETAILS

Name :	JORD ENGINEERS INDIA LIMITED
Registered Office :	504/ 506, Vishwananak Apartment, Chakala Link Road, Chakala, Andheri (East), Mumbai- 400057, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	20.04.1989
Com. Reg. No.:	11-51449
Capital Investment / Paid-up Capital :	Rs.275.567 Millions
CIN No.: [Company Identification No.]	L28920MH1989PLC051449
TAN No.: [Tax Deduction & Collection Account No.]	MUMJ10869F
PAN No.: [Permanent Account No.]	AAACJ2871P
Legal Form :	Public limited liability company. Company’s Shares are listed on Stock Exchange.
Line of Business :	Manufacturer and Exporter of Heavy Engineering Equipments.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Sick Unit
Payment Behaviour :	Slow and Delayed
Litigation :	--
Comments :	Subject has been declared as sick by the board of industrial and financial restructuring (BIFR). Payments are reported to be slow and delayed. The company can be considered for business dealings on a safe and secured 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. Mukesh Chaturvedi
Designation :	Director

LOCATIONS

Registered Office :	504/506 Vishwananak Apartment, Chakala Link Road, Chakala, Andheri (East), Mumbai- 400057, Maharashtra, India
Tel. No.:	91-22-28376815
Fax No.:	91-22-28376816
E-Mail :	jord@jordindia.com
Website :	www.jordindia.com
Area :	Owned
Location :	550 Sq. Ft.
Factory :	Plot 541, Ishwarpura (ASOJ), Vadodara- Halol Highway, Vadodara- 391510, Gujarat, India
Tel. No.:	91-2668-281107/8/ 281106-10
Fax No.:	91-2668-281104/ 281109/ 304315
Area :	35 Acers
Location :	Owned
Factory 2 :	Located at Mumbai Delhi
Dubai Office (Agent) :	Trimac International, P.O. Box-43408, Dubai
Tel. No.:	+ 971-4-3551416
Fax No.:	+971-4-3551417
E-Mail :	jordind@emirates.net.ae jordindusteries@gmail.com

DIRECTORS

As on 31.03.2009

Name :	Mr. Mukesh Chaturvedi
Designation :	Director
Address :	B 25, Ashok Nagar Society, Building No.4, Race Course, Vadodara- 390007, Gujarat, India
Date of Birth/Age :	02.12.1965
Qualification :	CA
Date of Appointment :	10.01.2003
Name :	Mr. T.R. Ananthraman
Designation :	Director
Address :	4 Josal Apartment, Abhisekh Colony, Race Course, Vadodara- 390007, Gujarat, India
Date of Birth/Age :	31.10.1928
Qualification :	Mechanical Engineer Chemical Engineer
Date of Appointment :	21.03.1991
Name :	Mr. S.C Kochar
Designation :	Director
Address :	Shailesh Apartment, 6^th Floor, Khar (West), Mumbai- 400052, Maharashtra, India
Date of Birth/Age :	22.07.1942
Qualification :	Electrical Engineer
Date of Appointment :	20.04.1989
Name :	Mr. Adarsh Mohan
Designation :	Director
Address :	201 Nisarg Apartment, Diwalipura, J.P Road, Old Padra Road, Vadodara, Gujarat, India
Date of Birth/Age :	17.09.1947
Qualification :	Mechanical Engineer
Date of Appointment :	29.10.2003
Name :	Mr. Rakesh Chaturvedi
Designation :	Chairmen and Managing Director
Address :	257/7 Amarakunj Extension, Ellora Park, Vadodara- 390007, Gujarat, India
Date of Birth/Age :	15.12.1956
Qualification :	Industrial Engineer
Date of Appointment :	20.04.1989

KEY EXECUTIVES

Name :	Mr. Rakesh Chaturvedi
Designation :	Chief Executive Officer
Name :	Mr. T R Anantharaman
Designation :	Director Marketing

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2009

Category	Percentage
Public financial companies	1.37
Nationalised or other banks	25.99
Mutual funds	1.30
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	1.73
Bodies corporate	22.68
Directors or relatives of directors	23.08
Other top fifty shareholders	2.03
	21.82
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Heavy Engineering Equipments.
Exports :
Products :	Heavy Engineering Equipments
Countries :	Singapore China USA UK Europe Malaysia Switzerland New Zeland Nether land
Imports :
Products :	Raw Material
Countries :	Japan Europe China Korea
Terms :
Selling :	L/C / Advance Payments
Purchasing :	Cash on Delivery

GENERAL INFORMATION

Customers :	OEM’s · Abb alstom, U.K. · Jord balcke-duerr, Australia · Merichem company, U.S.A · Abb, indonesia / Vietnam · Stork ketels, Netherlands / Indonesia · Petrofac, U.A.E. · Austrian energy, Vienna · Abb, Vietnam · Everest, Nepal · Al reem veedal Company Limited., Abu Dhabhi · Abb lummus, Netherlands · Fletcher smith, U.K. · Deutsche Babcock Power Sys Limited · Bangladesh gas fields company · Forges tardieu, Mauritius · Foster wheeler Canada / Usa · Humphreys and Glassgow., U.K. · Nagarjuna International, Vietnam · Kti, Netherlands · Born heaters Limited, U.K. · Reunion Islands · Mitsubishi heavy industries, Japan  · Iso-octane company, U.A.E. · Tcec, Taiwan · Meritime, Sharjah  · Rolls Royce, Australia · Sugar Corporation Of Uganda · Nem, Netherlands · Linde, Germany
No. of Employees :	452
Bankers :	State Bank of Mysore, Vadodara Branch State Bank of India, Vadodara Branch Central Bank of India, 346, Standard Building, 1^st Floor, D. N. Road, Mumbai-400021, Maharashtra, India
Facilities:	--

Banking Relations :	--
Financial Institutional :	Development Credit Bank Limited
Auditors :
Name :	N.S Bhatt and Company Chartered Accountant
Address :	A-4, Bharat Baug, Lancelot Compound, S.V Road, Borivali (East), Mumbai- 400092, Maharashtra, India
Tel. No.:	91-22-28635016
Fax No.:	91-22-66972417
E-Mail :	bhattns@rediffmail.com
Pan No.:	AACPB7602B
Collaborators :	Fintube Technologies Inc., Tulsa, USA Jord balcke-duerr Pty. Limited, Singapore Merichem, USA Jord Engineers Pty. Limited, Australia Trimac International Dubai

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Share	Rs.10/- Each	Rs.500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
27574551	Equity Share	Rs.10/- Each	Rs.275.746 millions
	Less: Calls in Arrears		Rs.0.179 million
			Rs.275.567 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		275.567	275.567	275.567
2] Share Application Money		50.000	29.500	29.500
3] Reserves & Surplus		276.353	276.353	276.353
4] (Accumulated Losses)		(4045.796)	(3931.192)	(4012.142)
NETWORTH		(3443.876)	(3349.772)	(3430.722)
LOAN FUNDS
1] Secured Loans		4045.734	4053.165	4095.325
2] Unsecured Loans		30.710	65.766	89.342
TOTAL BORROWING		4076.444	4118.931	4184.667
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		632.568	769.159	753.945
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		593.431	653.219	714.953
Capital work-in-progress		1.728	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	791.826	227.843	225.115
	Sundry Debtors	254.174	288.901	128.814
	Cash & Bank Balances	12.089	8.263	1.019
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	167.316	94.642	36.774
Total Current Assets		1225.405	619.649	391.722
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	339.359	277.567	514.509
	Other Current Liabilities	839.617	218.484	165.685
	Provisions	9.020	7.658	3.906
Total Current Liabilities		1187.996	503.709	352.730
Net Current Assets		37.409	115.940	38.992
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		632.568	769.159	753.945

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	532.999	729.900	608.537
		Other Income		92.000	1.258
		TOTAL	532.999	821.900	609.795
Less	EXPENSES
		Raw Materials		409.400	368.453
		Power and Fuel Cost		17.400	0.000
		Employee Cost		73.400	63.377
		Other Manufacturing Expenses		45.100	49.537
		Selling and Administration Expenses	NA	36.000	0.000
		Miscellaneous Expenses		15.000	0.000
		Stock Adjustment		79.100	0.000
		Administrative Expenses		0.000	31.447
		TOTAL	NA	675.4	512.814
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(41.525)	146.500	96.981
Less	FINANCIAL EXPENSES/ INTEREST		11.695	1.100	0.959
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		(53.220)	145.400	96.022
Less/ Add	DEPRECIATION/ AMORTISATION		64.265	64.000	63.525
	PROFIT / (LOSS) FROM PROVISION		(117.485)	0.000	0.000
Add	EXTRA ORDINARY ITEMS		2.832	0.000	0.000
	PROFIT BEFORE TAX		(114.653)	81.400	32.497
Less	TAX		4.700	91.200	0.600
	PROFIT AFTER TAX		(114.606)	(9.800)	31.897
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		4.70	(4012.100)	NA
	BALANCE CARRIED TO THE B/S		NA	(4021.900)	NA
	Earnings Per Share (Rs.)		4.16	2.94	1.16

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(21.50)	(1.19)	5.23
Net Profit Margin (PBT/Sales)	(%)	NA	11.16	5.33
Return on Total Assets (PBT/Total Assets}	(%)	(6.30)	6.39	(4.55)
Return on Investment (ROI) (PBT/Networth)		(3.33)	(0.02)	(0.01)
Debt Equity Ratio (Total Liability/Networth)		(1.53)	(1.38)	(0.10)
Current Ratio (Current Asset/Current Liability)		1.03	1.27	1.11

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

Promoted by Rakesh Chaturvedi and Rajendra Prasad Chaturvedi in technical collaboration with Jord Engineers Pty Limited, Australia, Jord Engineers India (JEIL) is a process engineering and equipment manufacturing company. The hi-tech process equipment -- rotary drum vacuum filters, clarifiers, thickeners, brown and bleach washers for solid / liquid separation, industrial effluent and sewage treatment plants -- manufactured by the company find application in process industries like petrochemicals, sugar, paper, pharmaceuticals, etc. In 1993, JEIL ventured into the manufacture of high-value capital equipment, such as sugarcane harvesters, air-cooled heat exchangers and pulp washers among others. It was the first company in the country to develop the smallest, self-propelled sugarcane harvester, in technical collaboration with W E Moller and Sons (Private) Limited, Australia. The fintube division was launched to cater to the domestic and overseas demand for high-frequency welded helically-wound fintubes and HSRG systems. Fintube, US, was the technical collaborator for this project. Other technical collaborations entered into by the company are with A S Sanmec, Norway, to the manufacture disc filters, and with Krauss Mauffei Verfahrenstechnik, Germany, for brown stock and bleach washers. The company's domestic clients include reputed organisations like Essar Gujarat, ACC, Walchandnagar Industries, Larsen and Toubro, Indian Oil Corporation, etc. Reunion Islands (a French state), Phillipines, Singapore, Australia are some of the countries to which JEIL has exported its products. The Export Promotion Council, Bombay, awarded it the Regional Special Shield for 1992-93 and Certificate of Export Excellence for 1991-92. Jord plans to expand the installed capacity of fintubes in technical collaboration with Fintubes, US, as well as to add facilities to manufacture HSRG systems which also find applications in refineries and power plants. The Company has attained the ISO 9001 certification for manufacturing, services and design for the entire unit located at Baroda. The Company has successfully completed discussions with Sterling, UK for Fired Heater and with Mitsui Babcock, UK / New Holland for HRSG Manufacturing.

Performance Review:

During the year, the company has suffered major set-back in its operation which is mainly due to erratic business scenario in the capital goods sector. This is a major reversal as compared to last few years. Till last year, the company has been significant growth in the business for its products during proceeding 2-3 years. This has been reflected the sales, which is down by almost 27% as compared to the previous year growth of 44% consequently, the company has incurred net loss of Rs.114.600 Millions as compared to the previous year net profit Rs.80.900 Millions.

The trend of improvement in the business scenario experienced during last 2-3 years is gaining momentum. The quantum of current Order Book position and the flow of inquiries are the evidence. The Order Book Position of the current year has shown significant - improvement over the last year's order book, which is having a positive impact on the working results of the Company as well. Although the Company continues to struggle to meet its working capital requirements, in absence of a practical system in place, the company is forced to find alternative methods of meeting the customer needs. Under the given circumstances, the Company is forced to manage its operation with its own earned resources and internal accruals. The Directors have pride in mentioning that the Company attaches highest importance to customer satisfaction above all other priorities. This philosophy is paying in the long run.

In the Business Scenario in the country for the next year, the Power sector seems to be recovering. This augurs well with the revival of the Company. Similarly, the Refinery Sector is also showing good prospects. Most of the old projects were the work was not moving due to the recession, have resumed. These projects include expansion of various Refineries as well as Green Field Refineries like, Bhatinda, Paradip and Nagarjuna Refinery. These Refineries will generate significant business for Air Cooled Heat Exchangers for the Company for next one or two years.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

The cost effective measures taken by the Company have resulted in improved performance and quality of equipment supplied. Because of the improved performance the installed capacity has been better utilised and the management is confident of having improved margins from the orders on hand.

While the overall concern on view environment in the country in grain, the company is conflict that with the steps taken in the past, the company can survive their phase, however the factors such as spiralling steel and energy prices, higher inflationary pressures, etc. could affect the business environment.

The Company is fully committed to ensuring an effective internal control systems and it periodically checks the adequacy and effectiveness of the internal control systems.

The Company is a manufacturing company and the risk of the Company consists principally of fluctuating steel price, power charges and trade recoverable. The periodical monitoring and evaluation has been implemented to minimise the above inheritant risks.

Fixed Assets

• Land
• Building
• Plant and Machinery
• Office Equipments
• Vehicles
• Furniture and fixture
• Computer

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.44.72
UK Pound	1	Rs.71.95
Euro	1	Rs.64.79

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.