MIRA INFORM REPORT

Report Date :

01.06.2011

IDENTIFICATION DETAILS

Name :	DEE DEVELOPMENT ENGINEERS LIMITED
Registered Office :	1255, Sector-14, Faridabad-121007, Haryana
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	21.03.1988
Com. Reg. No.:	05-30225
Capital Investment / Paid-up Capital :	Rs.110.000 Millions
CIN No.: [Company Identification No.]	U74140HR1988PTC030225
IEC No.:	0597021163
PAN No.: [Permanent Account No.]	AACCD02074
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Piping Systems and Pipe Fittings.
No. of Employees :	1015 (Office 250, Factory 750, In Branches - 15)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 2120000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are 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.

ECGC Country Risk Classification List – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
India	A1	A1

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

LOCATIONS

Registered Office :	1255, Sector-14, Faridabad-121002, Haryana, India
Tel. No.:	91-1275-248200 / 260 / 205 / 207
Fax No.:	91-1275-262085
E-Mail :	info@addel.net customercare@addel.net akjha@ddel.net
Website :	http://www.deedevelopment.com
Area :	Owned
Corporate Office :	Plot No.5327 and 6412, Prithla, Tatarpur Road, Tatarpur Village, Tehsil Pal Wal-121002, Faridabad, India
Area :	Owned
Factory :	Village Tarapur, Tehsil Pal Wal, District Palwal-121102, Haryana, India
Tel. No.:	91-1275-248200
Fax No.:	91-1725-262085

DIRECTORS

As on 30.09.2010

Name :	Mr. Lajwant Rai
Designation :	Director
Address :	H. No. -531, Sector -28, Faridabad-121002, Haryana, India
Qualification :	B. Tech
Date of Appointment :	25.03.1988
DIN :	01050702
Name :	Mr. Krishan Lalit Bansal
Designation :	Director
Address :	H No. 1255, Sector- 14, Faridabad-121002, Haryana, India
Date of Birth/Age :	22.04.1955
Qualification :	B. Tech
Date of Appointment :	25.03.1988
DIN :	01125121
Name :	Ms. Ashima Bansal
Designation :	Director
Address :	H No. 1255, Sector- 14, Faridabad-121002, Haryana, India
Date of Birth/Age :	04.09.1954
Qualification :	BA, MA
Date of Appointment :	30.04.2007
DIN :	01928449
Name :	Ms. Jyoti Rai
Designation :	Director
Address :	H. No. 581, Secotr -28, Faridabad-121002, Haryana, India
Date of Birth/Age :	24.06.1958
Qualification :	BA, MA
Date of Appointment :	02.06.2008
DIN :	01050713
Name :	Mr. Atul Krishna Bansal.
Designation :	Director
Address :	1255, Sector-14, Faridabad-121007, Haryana, India
Date of Birth/Age :	26 Years
Qualification :	B. Tech
Date of Appointment :	02.06.2008
DIN :	02216008

KEY EXECUTIVES

Name :	Krishna Lal Agrawal
Designation :	Secretary
Date of Appointment :	01.02.2010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Krishan Lalit Bansal	8000229
Lajwant Rai	1532448
Ashima Bansal	880000
Jyoti Rai	293331
Atul Bansal	293332
Loomba K	660
Total	11000000

As on 30.09.2010

Category	Percentage
Directors or relatives of directors	86.42
Bodies Corporate	13.58

BUSINESS DETAILS

Line of Business :	Manufacturer of Piping Systems and Pipe Fittings.
Products :	· Pre Fabricated Piping Systems · Submerged Arc Welded Pipes · Pressure Vessels · Piping Manifolds and Steam Headers · Steam Separators · IBD, CBD Tanks · Desuper Heater Vessels · Boiler Components · Sample Coolers · Super Heater Coils · Boiler Tubes · Pipe Suppoerts

GENERAL INFORMATION

No. of Employees :

1015 (Office 250, Factory 750, In Branches - 15)

Bankers :

Bank of India, SCF – 8, DLF Market, Sector 11D, Faridabad-121006, Haryana, India

Facilities :

Secured Loan [Rs. in million]	31.03.2010	31.03.2009
Term loan from bank of India [secured against plant and machinery, factory building, vehicle and personal guarantee of directors]	604.688	338.016
Cash credit facilities from bank of India [secured against the plant and machinery , raw material finished and semi finished goods and personal guarantee of directors]	500.395	447.071
Total	1105.083	785.087
Unsecured Loan [Rs. in million]	31.03.2010	31.03.2009
From banks	66.486	55.475
From Directors / Members / others	90.762	73.437
Total	157.250	128.913

Banking Relations :	--
Auditors :
Name :	V Kumar And S Kumar Chartered Accountant
Address :	306, Neelgiri Apartments, 3^rd Floor, Bara KHamba Road, New Delhi-110001, India
Associates :	Malwa Power Private Limited Address : Village, Gulabewala, Muksar, India. Line of Business : Power Plant.

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
12,000,000	Equity Shares	Rs. 10/- each	Rs, 120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,000,000	Equity Shares	Rs. 10/- each	Rs. 20.000 Millions
9,000,000	Equity Shares	Rs. 10/- each	Rs. 90.000 Millions
	Total		Rs.110.000 millions

As on 30.09.2010

Authorised Capital : Rs.250.000 millions

Issued, Subscribed & Paid-up Capital : Rs. 172.502 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		110.000	110.000	20.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		420.822	264.025	274.534
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		530.822	374.025	294.534
LOAN FUNDS
1] Secured Loans		1105.083	785.087	401.228
2] Unsecured Loans		157.250	128.913	52.923
TOTAL BORROWING		1262.332	914.000	454.151
DEFERRED TAX LIABILITIES		25.293	36.664	0.000
TOTAL		1818.448	1324.689	748.685
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1165.842	721.897	315.482
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		26.629	26.629	19.728
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	384.577	360.954	288.661
	Sundry Debtors	516.608	424.845	251.232
	Cash & Bank Balances	34.677	32.079	30.329
	Other Current Assets	2.923	2.131	0.875
	Loans & Advances	78.986	55.907	63.172
Total Current Assets		1017.771	875.916	634.269
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	82.913	75.230	86.285
	Sundry creditors	287.846	211.426	70.152
	Provisions	21.440	13.552	64.357
Total Current Liabilities		392.199	300.208	220.794
Net Current Assets		625.572	575.708	413.475
MISCELLANEOUS EXPENSES		0.405	0.455	0.000
TOTAL		1818.448	1324.689	748.685

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1930.449	1521.188	1505.692
		Other Income	4.012	3.463	1.786
		TOTAL (A)	1934.461	1524.651	1507.478
Less	EXPENSES
		Raw Material and other material Consumed	1212.975	1044.719	1057.072
		Personnel Expenses	106.708	64.011	41.629
		Operating and Other Expenses	291.049	221.447	200.692
		Increase decrease in inventories	(12.464)	(38.453)	(40.626)
		Directors Remuneration	19.750	12.913	3.482
		TOTAL (B)	1618.018	1304.637	1262.249
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		316.443	220.014	245.229
Less	FINANCIAL EXPENSES (D)		105.189	65.229	39.019
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		211.254	154.785	206.210
Less/ Add	DEPRECIATION/ AMORTISATION (F)		44.965	26.529	17.960
	PROFIT BEFORE TAX (E-F) (G)		166.289	128.256	188.250
Less	TAX (I)		8.629	52.664	65.000
	PROFIT AFTER TAX (G-I) (J)		157.660	75.592	123.250
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5.454	5.963	2.117
	Income Tax Paid of Earlier Year		0.863	0.000	0.000
	Excess Income tax Provision of Earlier year written back		0.000	3.899	0.596
Less	APPROPRIATIONS
		Transfer to General Reserve	160.000	80.000	120.000
		Dividend
		Tax on Dividend
	BALANCE CARRIED TO THE B/S		2.251	5.454	5.963
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	565.147	377.846	501.397
	TOTAL EARNINGS		565.147	377.846	501.397
	IMPORTS
		Raw Materials	173.688	216.556	503.251
		Stores & Spares	1.986	1.753	13.860
		Capital Goods	20.691	47.774	15.633
	TOTAL IMPORTS		196.365	266.083	532.744
	Earnings Per Share (Rs.)		14.33	6.87	61.62

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	8.15	4.96	8.18
Net Profit Margin (PBT/Sales)	(%)	8.61	8.43	12.50
Return on Total Assets (PBT/Total Assets}	(%)	7.62	8.03	19.82
Return on Investment (ROI) (PBT/Networth)		0.31	0.34	0.64
Debt Equity Ratio (Total Liability/Networth)		3.12	3.25	2.29
Current Ratio (Current Asset/Current Liability)		2.59	2.92	2.87

LOCAL AGENCY FURTHER INFORMATION

Conversion of Energy:

In spite of the company’s state-of-the-art equipments having in built energy efficient features, the company continues to give highest priority for conversion of energy by using a mix of technology changes, process optimization methods and other conventional methods.

Technology Absorption:

The company continues to lay emphasis on development and innovation of in-house-technological and technical skills. Efforts are also being made to upgrade the existing standards and to keep pace with the advances in technological innovations.

Contingent Liabilities not Provided for:

a. The Hank guarantees given by the Banks for and on behalf of the Company amounts to Rs.148.054 million and is secured against hypothecation of tangible movable assets including stocks, stores and book debts of the Company and against equitable mortgage of the Company's immovable properties comprising of land, building and other structures and fittings, fixed plant and machinery and other fixtures and fittings erected or installed at Tatarpur.Tehsiland district PaIwa),Haryana and is guaranteed by the Directors (Last year Rs. 70.464 million).

b. Guarantee given by the Company to the Bank of india Faridabad SME Branch for and on behalf of Malwa Power Private Limited for RS.75.000 millions in which directors are interested (Last year Rs.75.000 millions

c. Claims against the Company not acknowledged as debts amounts to Rs.152.367. millions

Bankers Charges Report as per Registry

Corporate identity number of the company	U74140HR1988PLC030225
Name of the company	DEE DEVELOPMENT ENGINEERS LIMITED
Address of the registered office or of the principal place of business in India of the company	1255, Sec-14, Faridabad, Haryana - 121002, Haryana India
This form is for	Creation of Charge
Type of charge	Movable Property
Particular of charge holder	Bank of India, SCF – 8, DLF Market, Sector 11D, Faridabad-121006, Haryana, India
Nature of instrument creating charge	Agreement of Hypothecation for Consumer Loan in respect of Vehicles Dt.14/03/2011
Date of instrument Creating the charge	14.03.2011
Amount secured by the charge	Rs.1.122 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest - Rate of Interest : @ 3% over base rate with minimum @ 12.50% p.a on monthly rests subject to change linked with base rate/ RBI Guidelines Penal Interest : @ 2% over and above the normal rate. Terms of Repayment - Repayable in 36 monthly installments of Rs 0.037 million w.e.f 14/04/2011 and till the loan is adjusted in full. Margin - As per Agreement Extent and Operation of the charge - Hypothecation of New Toyota Altis VL Car.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of New Toyota Altis VL Car.

Fixed Assets:

· Plant and Machinery

· Testing Machines

· Furniture and Fixture

· Office Equipments

· Vehicles

· Electrical Installation Fittings

· Computer and Software

· Cooling Systems

· Photocopier

· FTY. Building

· Generator

· Crane and Hydra

· Tatarpur Land Land Power Division Tatarpur Building

· Dye Forging

· Hydraulic Press

· Pipe Bending machine

AS PER WEBSITE

Profile:

Dee Development Engineers Limited was founded by Chairman and Managing Director Mr. K.L. Bansal along with a team of three technocrats in the year 1983, with a simple yet powerful mission statement – “Make every customer a repeat customer”.

DDEL, in the past two decades, driven by leaders with a bold and strong entrepreneurial vision, has evolved in the diverse field of Piping engineering, fabrication and erection services.

DDEL manufacturing range includes variety of high pressure pipe fittings, pressure vessels, boiler components and accessories like boiler headers, boiler super heaters and economizer coils, de-super heaters and other taylor made fabricated components.

DDEL primarily caters to Multinational OEMs of power generation equipments, Engineering, Procurement and Construction (EPC) contractors serving power generation, oil and gas and petrochemicals sector.

DDEL is an ISO 9001:2008 and OHSAS 18001:1999 certified company along with certified manufacturer of pipe spools and pipe fittings under the purview of Pressure Equipment Directive (PED) norms and ASME Code Stamp

Piping.

DDEL has also established itself in the power EPC space by installing two Bio Mass based power plants of 7.5 MW and 8 MW, both in the State of Punjab in India.

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.45.03
UK Pound	1	Rs.74.43
Euro	1	Rs.64.75

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	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.