MIRA INFORM REPORT

Report Date :

30.06.2011

IDENTIFICATION DETAILS

Name :	NETA VALVES PRIVATE LIMITED
Registered Office :	11 A, Industrial Focal Point, Jalandhar-144004, Punjab.
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	17.03.1983
Com. Reg. No.:	16-005344
Capital Investment / Paid-up Capital :	Rs.7.000 Millions
CIN No.: [Company Identification No.]	U29120PB1983PTC005344
TAN No.: [Tax Deduction & Collection Account No.]	JLDN00017D
PAN No.: [Permanent Account No.]	AAACN5080G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Industrial Valves
No. of Employees :	More than 180 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 62000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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. Surinder Singh
Designation :	Director
Contact No.:	91-9814189483/9888888093
Date :	28.06.2011

LOCATIONS

Registered Office :	11 A, Industrial Focal Point, Jalandhar-144004, Punjab, India
Tel. No.:	91-181-2602047
Fax No.:	91-181-2602458
Area :	7000 Sq. ft
Location :	Owned
Factory :	Industrial Focal Point, Jalandhar, Punjab, India
Area :	7000 Sq, ft
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :	Mr. Amandeep Singh
Designation :	Director
Address :	66,Hukam Chand Colony, Jalandhar-144001, Punjab, India
Date of Birth/Age :	24 Years
Qualification :	B.com
Date of Appointment :	01.01.2005
Din No.:	01646353
Name :	Mr. Surinder Singh
Designation :	Director
Address :	68,Seth Hukam Chand Colony, Jalandhar-144001, Punjab, India
Date of Birth/Age :	50 Years
Qualification :	B.A
Date of Appointment :	17.03.1983
Din No.:	01935737
Name :	Mr. Jagjiwan Kaur
Designation :	Director
Address :	68,Seth Hukam Chand Colony, Jalandhar-144001, Punjab, India
Date of Birth/Age :	49 Years
Qualification :	M.A
Date of Appointment :	15.01.1994
Din No.:	02532725
Name :	Mr. Pawnadeep Singh
Designation :	Director
Address :	68,Seth Hukam Chand Colony, Jalandhar-144001, Punjab, India
Date of Birth/Age :	24 Years
Qualification :	M.D Pharma
Date of Appointment :	01.10.2006
Din No.:	01935790

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Amandeep Singh	10000
Surinder Singh	30004
Pawnadeep Singh	10000
Jagjiwan Kaur	20000
Amrit Pal Kaur	500
Total	70504

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Industrial Valves
Exports :
Products :	Industrial Valves
Countries :	African Countries
Terms :
Selling :	L/C / Cash / Credit
Purchasing :	Cash / Credit

GENERAL INFORMATION

No. of Employees :

More than 180 (Approximately)

Bankers :

• Oriental Bank of Commerce, Bhagat Singh Chowk, Jalandhar, Punjab, India
• Small Industrial Development Bank of India, Upper Ground Floor, Hotel Center Point, BMC Chowk, Jalandhar-144001, Punjab, India
• ICICI Bank Limited
• HDFC Bank Limited

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
From Banks
Secured Against CC	7.363	7.896
Secured Against Book Debt	2.997	2.963
ICICI Bank Limited	0.000	2.283
From HDFC Bank Limited (Secured against cars)	3.817	2.775
Total	14.177	15.917
Unsecured Loan
Sundry Deposits
From Director	1.888	2.539
From Shareholders	1.670	1.670
Total	3.558	4.209

Banking Relations :	--
Auditors :
Name :	Chopra Malhotra and Associates Chartered Accountant
Address :	7, Ladowali Road, Opposite Punjab Technical University, Jalandhar-144001, Punjab, India
Tel. No.:	91-181-4622059/2222059
E-Mail :	cma@sity.com

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
75000	Equity Shares	Rs.100/- each	Rs.7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
70504	Equity Shares	Rs.100/- each	Rs.7.050 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
75000	Equity Shares	Rs.100/- each	Rs.7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
70004	Equity Shares	Rs.100/- each	Rs.7.000 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		7.000	7.000	7.000
2] Share Application Money		2.000	2.000	0.000
3] Reserves & Surplus		6.615	3.812	3.556
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		15.615	12.812	10.556
LOAN FUNDS
1] Secured Loans		14.177	15.917	13.505
2] Unsecured Loans		3.558	4.209	10.353
TOTAL BORROWING		17.735	20.126	23.858
DEFERRED TAX LIABILITIES		0.109	0.381	0.586
TOTAL		33.459	33.319	35.000
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		18.315	15.235	16.846
Capital work-in-progress		0.000	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	17.310	19.185	17.064
	Sundry Debtors	14.858	12.854	11.511
	Cash & Bank Balances	0.149	0.381	0.383
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.949	1.831	3.777
Total Current Assets		35.266	34.251	32.735
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	16.480	11.457
	Other Current Liabilities	2.102	4.155	13.746
	Provisions	1.540	0.555	0.835
Total Current Liabilities		20.122	16.167	14.581
Net Current Assets		15.144	18.084	18.154
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		33.459	33.319	35.000

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Gross Income	117.107	24.416	1151.118
	PROFIT BEFORE TAX		4.071	NA	1.751
Less	TAX		(1.104)	NA	0.364
	PROFIT AFTER TAX		5.175	0.632	2.115
	Earnings Per Share (Rs.)		73.40	NA	NA

Particulars	31.03.2011
Sales Turnover (Approximately)	150.000

Expected Sales (2011-12) : Rs.180.000 Millions

The above information has been parted by Mr. Surinder Singh.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
Return on Total Assets (PBT/Total Assets}	(%)	7.60	NA	3.53
Return on Investment (ROI) (PBT/Networth)		0.26	NA	0.17
Debt Equity Ratio (Total Liability/Networth)		2.42	2.83	3.64
Current Ratio (Current Asset/Current Liability)		1.75	2.12	2.25

LOCAL AGENCY FURTHER INFORMATION

WORKING RESULTS:

During the year company has earned a gross income Rs.117.107 millions after defraying the expenses of the business there has been a net profit of Rs.4.071 millions before making provision for taxation after madding provision for taxation, there is net profit of Rs.5.175 millions.

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U29120PB1983PTC005344
Name of the company	NETA VALVES PVT LTD
Address of the registered office or of the principal place of business in India of the company	11 A, Industrial Focal Point, Jalandhar-144004, Punjab, India
Type of charge	Movable Property (not being pledge)
Particular of charge holder	Small Industrial Development Bank of India, Upper Ground Floor, Hotel Center Point, BMC Chowk, Jalandhar-144001, Punjab, India
Email	rcraina@sidbi.in
Nature of description of the instrument creating or modifying the charge	Deed of hypothecation
Date of instrument Creating the charge	24.05.2010
Amount secured by the charge	Rs.2.644 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 9.75% p.a. (fixed) with monthly rests Terms of Repayment Repayable In 60 Monthly Installments Margin 25.40% Extent and Operation of the charge 100%.First charge by way of hypothecation on all movables acquired/to be acquired under the project/scheme
Short particulars of the property charged	All the movables properties of the borrower pertaining to the project of the borrower situated at A-11,Industrial Focal Point, Jalandhar-144004, Punjab, India

FIXED ASSETS

• Land (Lease Hold)
• Building
• Plant and Machinery
• Pattern and Dies
• Intercom Set
• Cycle
• Refrigerator
• Furniture and Fixture
• Typewriter / Calculator
• Mopeo / Motorcycle
• Fan
• Car
• Water Pump
• Electric Transformer
• Electric Sirfn
• Pick Up Van

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.44.94
UK Pound	1	Rs.71.91
Euro	1	Rs.64.60

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		30

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.