MIRA INFORM REPORT

Report Date :

24.03.2011

IDENTIFICATION DETAILS

Name :	hi-fab engineers private limited
Registered Office :	D – 148, Bonanza Industrial Estate, A.C. Road, Kandivali (E), Mumbai – 400101, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	05.01.1982
Com. Reg. No.:	11-26049
CIN No.: [Company Identification No.]	U28125MH1982PTC026049
TAN No.: [Tax Deduction & Collection Account No.]	MUMH07564E
PAN No.: [Permanent Account No.]	AAACH1125L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Mechanical Seals.

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 140000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having fine track. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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

Name :	Mr. Kishore
Designation :	Accounts Department
Date :	23.03.2011

LOCATIONS

Registered Office/ Factory :	D – 148, Bonanza Industrial Estate, A.C. Road, Kandivali (E), Mumbai – 400101, Maharashtra, India
Tel. No.:	91-22-40766555 (30 Lines)
Fax No.:	91-22-40766556
E-Mail :	accounts@hi-fab.com info@hi-fab.com
Website :	www.hi-fab.com

DIRECTORS

As on 30.09.2010

Name :	Mr. Mahesh Vrajlal Shah
Designation :	Director
Address :	303, Meera Apt, Shanker Lane, Kandivali (W), Mumbai – 400067, Maharashtra, India
Date of Birth/Age :	01.08.1954
Date of Appointment :	05.01.1982
DIN No.:	00109196
Name :	Mr. Rajendra Krishanlal Damania
Designation :	Director
Address :	4^th Floor, Shreeji Bungalow Shantilal Mody Marg, Kandivali (W), Mumbai – 400067, Maharashtra, India
Date of Birth/Age :	09.10.1953
Date of Appointment :	05.01.1982
DIN No.:	00109183

KEY EXECUTIVES

Name :	Mr. Kishore
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Mahesh Vrajlal Shah	3500
Rajendra Krishanlal Damania	3500
Total	7000

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage of Holding
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Mechanical Seals.

Products :

Product Description	ITC Code
Mechanical Seals	84842000
Seal Support System	84799090

Exports :

Products :

Mechanical Seals

Countries :

• Australia
• USA

Imports :

Products :

Raw Materials

Countries :

China

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

PRODUCTION STATUS AS ON 31.03.2009

Particulars	Licensed Capacity	Installed Capacity	Actual Production
Mechanical Seals and Spares (for pumps and compressors)	--	50000 units	--
Circulation System	--	100 units	--

GENERAL INFORMATION

Customers :

End Users and OEM’s

No. of Employees :

Approximately 100 (Office 30, Factory 70)

Bankers :

• HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower W, Mumbai – 400013, Maharashtra, India
• Citi Bank
• The Bharat Co-operative Bank Limited, Mumbai
• State Bank of India
• Bank of Baroda

Facilities :

Secured Loans	31.03.2010 (Rs. in Millions)	31.03.2009 (Rs. In Millions)
HDFC Bank Limited Motor Car Loan	0.000	0.000
HDFC Bank Limited Secured against mortgage of office and factory address hypothecation of plant and machinery, stock and debtors	0.000	(0.147)
HDFC Bank Limited Term Loan Secured against mortgage of office and factory address hypothecation of plant and machinery, stock and debtors	0.281	1.337
HDFC Bank Limited Motor Car Loan Indigo	0.342	0.584
HDFC Bank Limited Motor Car Loan Jetta	1.589	2.445
Total	2.212	4.219

Unsecured Loans	31.03.2010 (Rs. in Millions)	31.03.2009 (Rs. In Millions)
Mrs. Jyoti R Damania	2.800	2.800
Mrs. Reka M Shah	2.800	2.800
Total	5.600	5.600

Banking Relations :

---

Auditors :

Name :

A. N. Parikh and Company

Chartered Accountant

Address :

203 / 204, Balaji Arcade, S.V. Road, Kandivali (W), Mumbai – 400067, Maharashtra, India

Associates/Subsidiaries :

• Hi – Fab Valve Automation
• Dess Enterprises

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	Equity Share	Rs. 100 /- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7000	Equity Share	Rs. 100 /- each	Rs. 0.700 Million

Note:

Out of above shares 5250 equity shares were allotted as fully paid up by way of Bonus Shares by capitalization of Revenue Reserve.

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		0.700	0.700	0.700
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		34.203	25.486	14.529
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		34.903	26.186	15.229
LOAN FUNDS
1] Secured Loans		2.212	4.219	4.783
2] Unsecured Loans		5.600	5.600	4.600
TOTAL BORROWING		7.812	9.819	9.383
DEFERRED TAX LIABILITIES		0.701	0.989	0.854
TOTAL		43.416	36.994	25.466
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		21.052	24.362	15.331
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.998	1.137	2.107
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	17.209	14.792	16.799
	Sundry Debtors	24.755	16.494	17.715
	Cash & Bank Balances	5.566	2.563	0.424
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	20.041	13.077	5.660
Total Current Assets		67.571	46.926	40.598
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	27.909	16.337	23.277
	Other Current Liabilities	4.240	6.634	3.789
	Provisions	14.056	12.460	5.504
Total Current Liabilities		46.205	35.431	32.570
Net Current Assets		21.366	11.495	8.028
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		43.416	36.994	25.466

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	NA	NA	106.678
		Other Income	NA	NA	1.047
		TOTAL (A)	NA	NA	107.725
Less	EXPENSES
		Cost of Goods Sold			45.052
		Import (Including Duty)			5.907
		Manufacturing Expenses	NA	NA	20.868
		Selling and Administrative Expenses			24.726
		Auditors Remuneration			0.140
		TOTAL (B)	NA	NA	96.693
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	NA	11.032
Less	FINANCIAL EXPENSES (D)		NA	NA	1.377
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		17.411	18.851	9.655
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.241	4.062	1.965
	PROFIT BEFORE TAX (E-F) (G)		13.170	14.789	7.690
Less	TAX (H)		4.452	7.091	2.544
	PROFIT AFTER TAX (G-H) (I)		8.717	7.698	5.146
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		19.524	12.026	7.080
Less	APPROPRIATIONS
		Transfer to General Reserve	0.200	0.200	0.200
	BALANCE CARRIED TO THE B/S		28.041	19.524	12.026
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	23.089	9.828
	TOTAL EARNINGS		NA	23.089	9.828
	IMPORTS
		Raw Materials	NA	6.425	5.403
		Plant and Machinery	NA	10.384	0.723
		Others	NA	0.188	0.454
	TOTAL IMPORTS		NA	16.997	6.580
	Earnings Per Share (Rs.)		1245.29	--	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	NA	NA	4.78
Net Profit Margin (PBT/Sales)	(%)	NA	NA	7.21
Return on Total Assets (PBT/Total Assets)	(%)	14.86	20.75	13.75
Return on Investment (ROI) (PBT/Networth)		0.38	0.56	0.50
Debt Equity Ratio (Total Liability/Networth)		1.55	1.73	2.75
Current Ratio (Current Asset/Current Liability)		1.46	1.32	1.25

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. in Millions)

Particulars	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions	31.03.2008 Rs. in Millions
Sundry Creditors	27.909	16.337	23.277
Total	27.909	16.337	23.277

Operations:

Due to revival of economy and investments in new projects / modernization of exiting projects by various customers, the company could achieve a decent growth in sales. But due to severe competition, the margins are still under pressure. The company by keeping control on the overheads could achieve better profit.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	80031035
Corporate identity number of the company	U28125MH1982PTC026049
Name of the company	hi-fab engineers private limited
Address of the registered office or of the principal place of business in India of the company	D – 148, Bonanza Industrial Estate, A.C. Road, Kandivali (E), Mumbai – 400101, Maharashtra, India
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower W, Mumbai – 400013, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Supplemental Memorandum relating to Hypothecation of stocks, book debts and machinery.
Date of instrument Creating the charge	20.02.2008
Amount secured by the charge	Rs. 17.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest at the rate as may be communicated by the Bank from time to time. Terms of Repayment On demand Margin Company shall at all times during the continuous of this security maintain the said debts of a sufficient amount to provide the margin of security as may from time to time advised by the bank. Extent and Operation of the charge Hypothecation by way of 1^st charge on stocks, book debts and machinery to secure as a continuing security for repayment of monies dues and payable by the company to the bank.
Short particulars of the property charged	Hypothecation 1^st charge over the stocks, book debts and machinery
Date of latest modification prior to the present modification	19.02.2008

Fixed Assets:

• Owner Ship Office
• Factory Shed
• Plant and Machinery
• Typewriter
• Electronic Typewriter
• Franking Machine
• Office Equipment
• Motor Cars
• Furniture and Fixture
• Electrical Installation
• Telephone
• Air Conditioner
• Fax
• Computers
• Water Filter
• Xerox Machine
• Refrigerator

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.44.96
UK Pound	1	Rs.73.57
Euro	1	Rs.63.68

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	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		51

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.