MIRA INFORM REPORT

Report Date :

06.06.2011

IDENTIFICATION DETAILS

Name :	NITON VALVE INDUSTRIES PRIVATE LIMITED
Registered Office :	D-115, Ghatkopar Industrial Estate, LBS Marg, Mumbai – 400080, Maharashtra
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	14.08.1985
Com. Reg. No.:	037156
Capital Investment / Paid-up Capital :	Rs.19.985 Millions
CIN No.: [Company Identification No.]	U27300MH1985PTC037156
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Valves
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 805824
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 n 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 PARTED BY

Name :	Mr. Pandit
Designation :	Finance Manager
Date :	04.06.2011

LOCATIONS

Registered Office :	D-115, Ghatkopar Industrial Estate, LBS Marg, Mumbai – 400080, Maharashtra, India
Tel. No.:	91-22-67969786/87/88
Fax No.:	91-22-67969790
E-Mail :	pandit@niton-valve.com
Website :	www.niton-valve.com
Location :	Owned
Factory 1 :	A-740, TTC Ind. 257, MIDC, Khairana, Mumbai
Factory 2 :	F-100, MIDC, Waluj, Aurangabad

DIRECTORS

AS ON 30.09.2009

Name :	Mr. Valiullah Rehman Shariff
Designation :	Director
Address :	91, Aashiana, Almeda Park, Waterfield Road, Bandra (West), Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	14.08.1947
Date of Appointment :	20.08.1985
Name :	Mrs. Nafisa Valiullah Shariff
Designation :	Director
Address :	92, Aashiana, Almeda Park, Waterfield Road, Bandra (West), Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	05.02.1956
Date of Appointment :	20.08.1985
Name :	Mr. Juned Valiullah Shariff
Designation :	Director
Address :	102, Aashiana, Almeda Park, Waterfield Road, Bandra (West), Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	21.01.1977
Date of Appointment :	06.03.1995
Name :	Mr. Naved Valiullah Shariff
Designation :	Director
Address :	101, Aashiana, Almeda Park, Waterfield Road, Bandra (West), Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	21.01.1977
Date of Appointment :	31.12.2006

KEY EXECUTIVES

Name :	Mr. Pandit
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2009

Names of Shareholders	No. of Shares
Valiullah Shariff	1138930
Nafisa Shariff	238000
Juned Valiullah Shariff	289820
Naved Valiullah Shariff	249850
Namira Shariff	8925
Nazish Shariff	8925
Zulekha Shariff	19000
Tarannum N Shariff	7600
Kirti Kasliwal	8225
Manisha Saarawgi	8225
Bharti Jain	8225
Vinodkumar Jain	1750
Sraddha Jain	1050
Arti Kasliwal	8225
Santosh Jain	1750
Total	1998500

AS ON 30.09.2009

Category	Percentage
Directors or relatives of Directors	98.13
Other top fifty shareholders	1.87
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Valves
Terms :
Selling :	Depends
Purchasing :	Depends

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Actual Production
Industrial Valves	Qty	52213

GENERAL INFORMATION

Customers :

Industries

No. of Employees :

300 (Approximately)

Bankers :

· Axis Bank Limited, Sai Heritage, Tilak Road, Near Balaji Mandir, Ghatkopar (E),, Mumbai - 400077, Maharashtra, India

· State Bank of India, Ghatkopar Branch, Mumbai, Maharashtra, India

Facilities :

SECURED LOAN	Rs. In Millions 31.03.2009	Rs. In Millions 31.03.2008
State Bank of India – Cash Credit	31.090	20.439
ICICI Bank - Mercedez Loan	0.000	0.196
ICICI Bank – Tata Indigo Loan	0.000	0.084
HDFC Bank – Escher Tempo Loan	0.000	0.191
ICICI Bank – A/C Toyota in nova	0.028	0.352
ICICI Bank – Mercedez Loan (New)	4.225	0.000
HDFC Bank – Scoda Loan	0.944	0.000
TOTAL	36.287	21.262
UNSECURED LOAN	Rs. In Millions 31.03.2009	Rs. In Millions 31.03.2008
Sales tax delecat loan from Maharashtra State Government	4.295	5.346
From Directors	3.597	2.084
From Others	0.787	0.868
TOTAL	8.679	8.298

Banking Relations :	--
Auditors :
Name :	Laxminiwas and Jain Chartered Accountant
Address :	201, Saurabh, Andheri Kurla Road, Above Andhra Bank, Chakala, Andheri (East), Mumbai – 400093, Maharashtra, India
Tel No.:	91-22-56945461/2
Fax No.:	91-22-56945462
Associates/Subsidiaries :	NA

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1998500	Equity Shares	Rs.10/- each	Rs.19.985 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2011	31.03.2010
Sales Turnover (Approximately)	630.000	520.000

The above information has been parted by Mr. Pandit (Finance Managaer)

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		19.985	19.985	19.985
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		181.471	131.784	100.293
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		201.456	151.769	120.278
LOAN FUNDS
1] Secured Loans		36.288	21.262	20.094
2] Unsecured Loans		8.679	8.298	9.434
TOTAL BORROWING		44.967	29.560	29.528
DEFERRED TAX LIABILITIES		12.166	11.888	10.604
TOTAL		258.589	193.217	160.410
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		85.473	71.083	69.799
Capital work-in-progress		30.417	13.003	6.137
INVESTMENT		0.170	0.170	0.170
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	26.026	25.239	20.206
	Sundry Debtors	152.170	84.503	75.165
	Cash & Bank Balances	29.050	42.355	19.506
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	72.627	71.447	43.421
Total Current Assets		279.873	223.544	158.298
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	101.259	81.503	46.885
	Other Current Liabilities	7.560	12.045	14.901
	Provisions	28.524	21.035	12.208
Total Current Liabilities		137.343	114.583	73.994
Net Current Assets		142.530	108.961	84.304
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		258.589	193.217	160.410

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Income	443.708	337.848	246.147
		Other Income	5.859	1.494	0.653
		TOTAL	449.567	339.342	246.800
Less	EXPENSES
		TOTAL	371.078	279.707	216.746
	PROFIT BEFORE TAX		78.489	59.635	30.054
Less	TAX		28.738	22.226	13.395
	PROFIT AFTER TAX		49.751	37.406	16.659

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	11.07	11.02	6.75
Net Profit Margin (PBT/Sales)	(%)	17.69	17.65	12.21
Return on Total Assets (PBT/Total Assets}	(%)	21.48	20.24	13.17
Return on Investment (ROI) (PBT/Networth)		0.39	0.39	0.25
Debt Equity Ratio (Total Liability/Networth)		0.90	0.95	0.86
Current Ratio (Current Asset/Current Liability)		2.04	1.95	2.14

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. In Millions)

Particulars	31.03.2009	31.03.2008	31.03.2007
Sundry Creditors	101.259	81.503	46.885

FORM 8:

Corporate identity number of the company	U27300MH1985PTC037156
Name of the company	NITON VALVE INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	D 115 Ghatkopar Industrial Estestate, L B S Marg, Mumbai – 400080, Maharashtra, India
This form is for	Creation of charge
Type of charge	Book Debts Others
Particular of charge holder	Axis Bank Limited
Nature of instrument creating charge	Deed of Hypothecation of Current Assets (Stock and Book Debts) dated 12.03.2011
Date of instrument Creating the charge	12/03/2011
Amount secured by the charge	Rs.140.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per Sanction letter or as stipulated by Bank from time to time Terms of Repayment ] As per Sanction letter or as stipulated by Bank from time to time Margin As per Sanction letter or as stipulated by Bank from time to time Extent and Operation of the charge The Bank granted Credit facility in the form of WC limits aggregating 140.000 Millions against security by way of hypothecation of present and future stocks of RM, SIP, FG, other Current Assets, lying at Co's premises or elsewhere or in transit, Book debts, O/s Monies, receivables, claims etc. due and owing to Co. in course of its business.
Short particulars of the property charged	Hypothecation of stocks of RM, SIP, FG, wheresoever situate or in transit and other current assets, both present and future. Hypo. of present and future outstanding, monies, receivable, claims, bills, etc. due and owing to the Co. in the course of its business.

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.44.85
UK Pound	1	Rs.73.29
Euro	1	Rs.64.89

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	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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.