MIRA INFORM REPORT

Report Date :

23.03.2011

IDENTIFICATION DETAILS

Name :	INTERVALVE (INDIA) LIMITED
Formerly Known As :	EUREKA INVESTMENT PRIVATE LIMITED
Registered Office :	212/2 Off Solipoonawala Road, Hadpsar, Pune-411028, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.10.1987
Com. Reg. No.:	11-044960
CIN No.: [Company Identification No.]	U29120PN1987PLC044960
TAN No.: [Tax Deduction & Collection Account No.]	PNEI04181C
PAN No.: [Permanent Account No.]	AAACI3917P
Legal Form :	A closely held Public Limited Liability Company.
Line of Business :	Manufacturer of Industrial Valves.

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 1000000
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.

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 (GENERAL INFORMATION)

Name :	Mr. Kumar
Designation :	Accounts Department
Date :	22.03.2011

LOCATIONS

Registered Office/ Factory :	212/2 Off Solipoonawala Road, Hadpsar, Pune-411028, Maharashtra, India
Tel. No.:	91-20-26993900/26993904
Fax No.:	91-20-26993921
E-Mail :	Intervalve.india@gmail.com
Website :	www.poonawallagroup.com
Area :	Owned
Branch Office :	G-2 Presidential Plaza, Ground Floor, LBS Marg, Ghatkopar(W), Mumbai-400086, Maharashtra, India
Tel. No.:	91-22-25172262
Fax No.:	91-22-25172264
Branches:	Also Located At: Bangalore Chennai Hyderabad Mumbai Baroda Cochin Kolkata New Delhi
Domestic Dealers:	Located At: Ahmedabad Ahmednagar Bangalore Bhubneshwar Cochin Ankleshwar Aurangabad Bokaro Chennai New Delhi
International Dealers:	Located At: Indonesia Malaysia UK Kazakhstan Russia

DIRECTORS

As on 25.09.2010

Name :	Mr. Donald Ashok Patrick
Designation :	Director
Address :	315, Nalini Apts, Hadapsar, Pune-411028, Maharashtra, India
Date of Birth/Age :	22.08.1943
Date of Appointment :	09.02.2004
Name :	Mr. Michelle Yohan Poonawalla
Designation :	Director
Address :	Poonawalla House, 87, Koregaon Park, Pune-411001, Maharashtra, India
Date of Birth/Age :	23.08.1977
Date of Appointment :	03.10.2006
Name :	Mr. Mahalingam Venkatramshastry
Designation :	Director
Address :	Asha Park Housing Society, 584 Salisbury Park, Pune-411001, Maharashtra, India
Date of Birth/Age :	20.02.1952
Date of Appointment :	01.10.2009
Name :	Mr. Yohan Zavary Poonawalla
Designation :	Director
Address :	Poonawalla House, 87, Koregaon Park, Pune-411001, Maharashtra, India
Date of Birth/Age :	15.01.1972
Date of Appointment :	01.11.2008
Name :	Mr. Zavaray Soli Poonawalla
Designation :	Director
Address :	12 Poonawalla Park, Pune-411037, Maharashtra, India
Date of Birth/Age :	04.12.1973
Date of Appointment :	12.10.1987
Name :	Mr. Lalchand Saudagar Mal Jhamb
Designation :	Director
Address :	6 Mujumdar Apartments, FC Road, Deccan Gymkhana, Pune-411004, Maharashtra, India
Date of Birth/Age :	15.04.1946
Date of Appointment :	13.05.2010

KEY EXECUTIVES

Name :	Mr. Deepak Madhav Manerikar
Designation :	Secretary
Address :	B-3, Anandshree, Anandnagar, Off Sinhagad Road, Pune-411051, Maharashtra, India
Date of Birth/Age :	06.05.1976
Date of Appointment :	25.08.2008
Name :	Mr. Kumar
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.09.2010

Names of Shareholders	No. of Preferences Shares	No. of Equity Shares
Zavaray Soli Poonawalla	--	66649
Firdaus Jal Dastoor	--	1
Yohan Zavary Poonawalla	--	83800
Ashok Narhar Pande	--	200
Anantarayan Balasubramaniam	--	200
Ravi Swaminathan	--	200
Shubhangi Mukund Sathe	--	300
Mahalingam Venkatramshastry	--	300
Eureka Finvest Private Limited, India	--	750
Zavaray Soli Poonawalla	365020	--
Yohan Zavaray Poonawalla	365020	--
Total	730040	152400

As on 25.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	0.49
Directors or relatives of directors	98.72
Other top fifty shareholders	0.79
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Industrial Valves.

Products :

Product Description	Item Code
Industrial Valves (Excluding pressure reducing valves and thermostatically controlled valves.)	84818003

Exports :

Products :

Industrial Valves

Countries :

• Russia
• Germany

Terms :

Selling :

L/C / Cash / Credit

Purchasing :

Cash / Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Saleave Lined Wafer Designed Industrial Valves	NOS	150000	100262
Spares	NOS	Numerous	Numerous
Others	NOS	--	19351

GENERAL INFORMATION

Customers :

End Users and OEM’s

No. of Employees :

350 (Approximately)

Bankers :

• HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (W), Mumbai-400013, Maharashtra, India
• State Bank of India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Term Loan for vehicles (State Bank of India) (Secured by hypothecation of motor car)	0.117	0.212
Cash Credit HDFC Bank Limited (Secured by hypothecation of stock and book debts)	23.453	21.271
Packing credit foreign currency HDFC Bank Limited (Secured by hypothecation of stock and booked debts)	2.422	0.000
Total	25.992	21.483
Unsecured Loan
Loan form directors	90.979	104.479
Total	90.979	104.479

Banking Relations :
Auditors :
Name :	Patki And Soman Chartered Accountant
Address :	639, Sadashiv Peth, Kumthekar Road, Pune-411030, Maharashtra, India
Associates/Subsidiaries :	Elomatic India Private Limited Line of Business: Manufacturer of Necumatic Actuators.

CAPITAL STRUCTURE

As on 25.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 Millions
750000	Equity Shares	Rs.100/- each	Rs.75.000 Millions
	Total		Rs.95.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
152400	Equity Shares	Rs.100/- each	Rs.15.240 Millions
730040	Equity Shares	Rs.100/- each	Rs.73.004 Millions
			Rs.88.244 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		88.244	88.244	88.244
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		179.527	162.602	129.064
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		267.771	250.846	217.308
LOAN FUNDS
1] Secured Loans		25.992	21.483	0.329
2] Unsecured Loans		90.979	104.479	104.479
TOTAL BORROWING		116.971	125.962	104.808
DEFERRED TAX LIABILITIES		23.389	19.045	14.808
TOTAL		408.131	395.853	336.924
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		194.461	146.197	142.327
Capital work-in-progress		2.446	39.212	7.758
INVESTMENT		25.913	16.049	18.597
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	111.845	98.310	89.015
	Sundry Debtors	162.977	204.621	275.501
	Cash & Bank Balances	18.054	16.279	8.061
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	131.492	118.092	75.484
Total Current Assets		424.368	437.302	448.061
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	147.068	143.473	198.320
	Other Current Liabilities	23.853	21.197	21.087
	Provisions	68.136	78.237	60.412
Total Current Liabilities		239.057	242.907	279.819
Net Current Assets		185.311	194.395	168.242
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		408.131	395.853	336.924

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	644.733	671.201	619.202
		Other Income	39.378	49.554	33.702
		TOTAL (A)	684.111	720.755	652.904
Less	EXPENSES
		Cost of goods sold	434.627	457.067	414.308
		Employee cost	97.669	81.076	76.742
		Other expenses	104.012	108.207	92.944
		TOTAL (B)	636.308	646.350	583.994
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		47.803	74.405	68.910
Less	FINANCIAL EXPENSES (D)		3.342	2.980	1.702
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		44.461	71.425	67.208
Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.699	15.824	12.386
	PROFIT BEFORE TAX (E-F) (G)		25.762	55.601	54.822
Less	TAX (H)		9.569	22.063	20.205
	PROFIT AFTER TAX (G-H) (I)		16.193	33.538	34.617
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		156.444	122.906	88.289
	EXCESS PROVISION MADE IN FY 2007-08 WRITTEN BACK		0.732	0.000	0.000
	BALANCE CARRIED TO THE B/S		173.369	156.444	122.906
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	192.382	197.229	223.628
	IMPORTS
		Components	9.866	13.760	3.554
		Capital Goods	0.000	2.578	1.630
	TOTAL IMPORTS		9.866	16.338	5.184
	Earnings Per Share (Rs.)		106	220	227

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.37	4.65	5.30
Net Profit Margin (PBT/Sales)	(%)	4.00	8.28	8.85
Return on Total Assets (PBT/Total Assets}	(%)	4.16	9.53	9.29
Return on Investment (ROI) (PBT/Networth)		0.10	0.22	0.25
Debt Equity Ratio (Total Liability/Networth)		1.33	1.47	1.77
Current Ratio (Current Asset/Current Liability)		1.77	1.80	1.60

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors
Micro enterprises and small enterprises	14.528	15.992	29.416
Other	91.370	107.960	156.089
Creditors Others	41.170	19.521	12.815
Total	147.068	143.473	198.320

Financial Results:

Turnover of the company has decreased marginally by 5% consequent to the effects of global recessions. The directors have decided to plough back the profit in the business of the company, hence no dividend is recommended for the year.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	10113920
Corporate identity number of the company	U29120PN1987PLC044960
Name of the company	INTERVALVE (INDIA) LIMITED
Address of the registered office or of the principal place of business in India of the company	212/2 Off Solipoonawala Road, Hadpsar, Pune-411028, Maharashtra, India
Type of charge	Book Debts Movable Property (not being pledge) Floating Charge
Particular of charge holder	HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (W), Mumbai-400013, Maharashtra, India
Email	abhishek.sahay@hdfcbank.com
Nature of description of the instrument creating or modifying the charge	Supplemental letter of hypothecation of stock, book debts and machinery
Date of instrument Creating the charge	12.05.2010
Amount secured by the charge	Rs.90.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Rate of interest as communicated by the Bank from time to time Terms of Repayment 1. For Cash Credit, On demand 2. For Working Capital Demand Loan, Principal amount to be repaid as bullet payment on the maturity date Margin As stipulated by the bank from time to time Extent and Operation of the charge 1. First charge by way of hypothecation of Company’s entire current assets including stocks of raw materials, semi-finished and finished goods, consumable stores and spares and such other movables, book debts, bills whether documentary or clean, outstanding monies, receivables, both present and future 2. First charge on Plant and Machinery of the company all present and future
Short particulars of the property charged	1. First charge by way of hypothecation of Company's entire current assets, both present and future. 2. First charge on all Plant and Machinery of the Company, both present and future. Current Assets include raw material, semi-finished and finished goods, consumable stores and spares and such other movables, book debts, bills whether documentary or clean, outstanding monies and receivables.
Particulars of the present modification	By this modification, the present charge on Company's stock, book debts and machinery, both present and future, has been extended for enhancement in credit facilities from Rs. 80.00 million to Rs. 90.00 million.

Fixed Assets:

• Land
• Building
• Research And Development Equipments
• Plant And Machinery
• Factory Equipments
• Furniture Fixture and Office Equipments
• Data Processing Machines
• Vehicles
• Aircraft

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.44.97
UK Pound	1	Rs.73.25
Euro	1	Rs.63.98

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	YES
--AFFILIATION	YES/NO	YES
--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.