MIRA INFORM REPORT

Report Date :

04.10.2011

IDENTIFICATION DETAILS

Name :	DEMBLA VALVES LIMITED
Formerly Known As :	DEMBLA VALVES PRIVATE LIMITED
Registered Office :	C-30, Jai Mata Di Compound, Thane Bhiwandi Agra Road, Kalher, Thane – 421302, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.05.1989
Com. Reg. No.:	11-051650
Capital Investment/ Paid-up Capital:	Rs. 50.000 Millions
CIN No.: [Company Identification No.]	U99999MH1989PLC051650
TAN No.: [Tax Deduction & Collection Account No.]	PNED03412D
PAN No.: [Permanent Account No.]	AAACD9909J
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Valves and Importer of Raw Material or Finished Goods.
No. of Employees:	100 (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 573000
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.

INFORMATION PARTED BY

Name :	Mr. Arun M
Designation :	Accounts Department
Contact No.:	91-9594439085
Date :	03.10.2011

LOCATIONS

Registered Office/ Factory :	C-30, Jai Mata Di Compound, Thane Bhiwandi Agra Road, Kalher, Thane – 421302, Maharashtra, India
Tel. No.:	91-2522-275131/ 241799/ 275104
Mobile No.:	91-9594439085 (Mr. Arun M)
Fax No:	91-2522-275132/ 241700
E-Mail :	info@dembla.com/ expo@dembla.com
Website :	www.dembla.com
Location :	Owned
Marketing Office :	11 Floor Adarsh Industrial Estate, Upuan Near Khandelwal Stop, Pokhran Road, No.1, Thane West, Thane – 400601, Maharashtra, India
Tel. No.:	91-22-25888234/25853957/25853899

DIRECTORS

As on 25.06.2011

Name :	Mr. Kanaiyalal Navalmal Dembla
Designation :	Chairman Cum Managing Director
Address :	1403, 14^th Floor. A- Wing, Golden Willows, Vasant Garden, LBS Marg, Mulund (West), Mumbai – 400080, Maharashtra, India
Date of Birth/Age :	01.02.1947
Date of Appointment :	09.05.1989
DIN No:	00966201
Name :	Mr. Jayprakash Navalmal Dembla
Designation :	Managing Director
Address :	Flat No. 402, 4^th Floor, Victoria Classic, Off P.K. Road, Opposite Asha Nagar, Mulund (West), Mumbai – 400080, Maharashtra, India
Date of Birth/Age :	13.04.1955
Date of Appointment :	09.05.1989
DIN No:	00966484
Name :	Mr. Kapil Kanaiyalal Dembla
Designation :	Director
Address :	A- 1604, Willows Twin Tower, Vasant Garden, Swapna Nagar, Mulund (West), Mumbai – 400080, Maharashtra, India
Date of Birth/Age :	05.10.1977
Date of Appointment :	01.01.1998
DIN No:	00966398
Name :	Mr. Mukund Narayan Katageri
Designation :	Director
Address :	A- 122, Anant Regency, 46 Malviya Road, Opposite Telephone Exchange, Mulund (West), Mumbai – 400080, Maharashtra, India
Date of Birth/Age :	30.12.1960
Date of Appointment :	01.01.1998
DIN No:	00966627
Name :	Mr. Harsha Vinod Suvarna
Designation :	Director
Address :	A-2501, Runwal Pride, Behind R-Mall, LBS Marg, Mulund (West), Mumbai – 400080, Maharashtra, India
Date of Birth/Age :	17.11.1981
Date of Appointment :	01.06.2007
DIN No:	01183675

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U18109MH2007PTC170168	SCORP EXPO APPARELS PRIVATE LIMITED	Director	20-04-07	20-04-07	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Arun M
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.06.2011

Names of Shareholders	No. of Shares
Kanaiyalal Navalmal Dembla	134788
Jayprakash Navalmal Dembla	177813
Kapil Kanaiyalal Dembla	75036
Manoj Jayprakash Dembla	32011
Mukund Narayan Katageri	75036
Pratap Kanaiyalal Dembla	2658
Harsha Vinod Suvarna	2658
Total	500000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011 Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Valves and Importer of Raw Material or Finished Goods.
Exports :
Products :	Valves
Countries :	Spain, Germany, Italy and USA
Imports :
Products :	Raw Material and Finished Goods
Countries :	Korea
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

GENERAL INFORMATION

Suppliers :

Youngtech - Korea

Customers :

• Manufacturing Company
• ONGC
• L and T
• Reliance

No. of Employees :

100 (Approximately)

Bankers :

• Union Bank of India, Kapurbavdi Branch, Dhanlaxmi Industrial Estate, Lal Bahadur Shastri Marg, Kapurbavdi, Thane (West), Thane – 400601, Maharashtra, India

Facilities :

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Loan from ICICI Bank against hypothecation of cars and two wheelers	0.409	1.160
Loan from ICICI Bank against hypothecation of Generator and Computer	0.000	0.510
From Union Bank of India against:
Hypothecation of plant and machinery and vehicles	6.069	6.776
Packing Credit	8.108	7.500
Term Loan against mortgage of property at Arham	10.010	0.000
Cash credit against hypothecation of stock and book debts	50.201	45.680
Total	74.797	61.626
Unsecured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Loan from Directors and Shareholders and Other Financial Institutions	6.970	13.137
Total	6.970	13.137

Banking Relations :	--
Auditors :
Name :	R.G Muley and Company Chartered Accountant
Address :	221/222, Swastik Plaza, Pokhran Road No.2, Thane – 400601, Maharashtra, India
PAN No :	AAPPM4897C

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs. 100/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value		Amount
500000	Equity Shares	Rs. 100/- each	Rs. 50.000 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		42.020	32.015	29.515
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		101.462	58.868	24.010
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		143.482	90.883	53.525
LOAN FUNDS
1] Secured Loans		74.797	61.626	64.945
2] Unsecured Loans		6.970	13.137	21.571
TOTAL BORROWING		81.767	74.763	86.516
DEFERRED TAX LIABILITIES		6.767	5.533	0.000
TOTAL		232.016	171.179	140.041
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		73.424	68.769	62.998
Capital work-in-progress		19.291	0.000	0.000
INVESTMENT		0.025	0.025	0.025
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	125.323	90.956	86.752
	Sundry Debtors	147.934	144.545	99.686
	Cash & Bank Balances	19.616	19.267	9.268
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	43.928	21.603	23.375
Total Current Assets		336.801	276.371	219.081
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	162.642	156.289	115.033
	Other Current Liabilities	1.630	4.558	2.587
	Provisions	33.427	13.274	24.623
Total Current Liabilities		197.699	174.121	142.243
Net Current Assets		139.102	102.250	76.838
MISCELLANEOUS EXPENSES		0.174	0.135	0.180
TOTAL		232.016	171.179	140.041

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	594.853	579.872	389.192
		Other Income	6.942	9.691	1.464
		TOTAL	601.795	589.563	390.656
Less	EXPENSES
		Material Consumed	296.224	299.279	188.079
		Processing charge	57.856	52.910	32.894
		Manufacturing expenses	63.465	76.835	70.205
		Payments to and provision for employees	30.985	23.578	16.658
		Other Expenses	76.587	69.285	51.364
		Variation in Stock	4.565	6.054	[5.903]
		TOTAL	529.682	527.941	353.297
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		72.113	61.622	37.359
Less/ Add	DEPRECIATION/ AMORTISATION		6.785	5.847	4.326
	PROFIT BEFORE TAX		65.328	55.775	33.033
Less	TAX		22.733	20.422	12.52
	PROFIT AFTER TAX		42.595	35.353	20.513
	BALANCE CARRIED TO THE B/S		9.695	7.100	2.243
	EARNINGS IN FOREIGN CURRENCY
		F.O.B Value of Exports	204.498	196.839	76.749
	TOTAL EARNINGS		204.498	196.839	76.749
	Earnings Per Share (Rs.)		133.05	119.78

Particulars	31.03.2011
Sales Turnover (Approximately)	670.000

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	7.07	5.99	5.25
Net Profit Margin (PBT/Sales)	(%)	10.98	9.61	8.48
Return on Total Assets (PBT/Total Assets}	(%)	15.20	16.16	11.71
Return on Investment (ROI) (PBT/Networth)		0.45	0.61	0.61
Debt Equity Ratio (Total Liability/Networth)		1.94	2.73	4.27
Current Ratio (Current Asset/Current Liability)		1.70	1.58	1.54

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. in Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors
Sundry Creditors for goods	127.143	108.905	86.324
Sundry Creditors for Labour Charges	17.990	20.067	11.639
Sundry Creditors for Expenses	13.868	24.426	15.178
Other Creditors	3.641	2.891	1.892
Total	162.642	156.289	115.033

Performance of the Company:

There is marginal growth in top line due to recessionary conditions prevailing in the global markets throughout the year. The Directors are confident to improve upon the same during the current year on the basis of enquiries/ orders received by the company.

The Directors nevertheless are pleased to inform that there is improvement in margin which has ultimately resulted into bottomline growth of above 22% evident the profit after tax going up to from Rs. 34.858 Millions to Rs. 42.595 Millions.

Trade Reference:

• ONGC
• L and T
• Reliance

Bankers Charges Report as per Registry

Corporate identity number of the company	U99999MH1989PLC051650
Name of the company	DEMBLA VALVES LIMITED
Address of the registered office or of the principal place of business in India of the company	C-30, Jai Mata Di Compound, Thane Bhiwandi Agra Road, Kalher, Thane – 421302, Maharashtra, India E mail: expo@dembla.com
This form is for	Modification of charge
Charge identification number of the charge to be modified	10062574
Type of charge	Book Debts Movable Property
Particular of charge holder	Union Bank of India, Kapurbavdi Branch, Dhanlaxmi Industrial Estate, Lal Bahadur Shastri Marg, Kapurbavdi, Thane (West), Thane – 400601, Maharashtra, India Email: CBSKAPURBAVDE@unionbankofindia.com
Nature of instrument creating charge	Supplementary Agreement to SD – 06 Hypothecation Agreement [SD – 06(S)]
Date of instrument Creating the charge	10.08.2011
Amount secured by the charge	Rs. 80.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest BR + 6.25% per Annum with monthly rest Terms of Repayment Being cash credit facility this is not required Margin 25% against stock 40% against book debts Extent and Operation of the charge Hypothecation over entire stock and book debt is subject to maximum sum of Rs. 80.000 Millions
Short particulars of the property charged	Paid up stock of raw material (RM), work in process (WIP), finished goods (FG) and bookdebts not older than 90 days.
Date of last modification prior to the present modification	06.03.2010
Particulars of the present modification	Original charge created on 01.08.2007 for Rs. 47.500 Millions First modification the charge has been enchanced from Rs. 47.500 Millions to Rs. 60.000 Millions By this present and second modification the charge has been enhanced from Rs. 60.000 millions to Rs. 80.000 Millions

Check List:

Check List by info Agents	Available in Report (Yes/ No)
1) Year of Establishment	Yes
2)Locality of the Firm	Yes
3)Constitution of the Firm	Yes
4)Premises Details	Yes
5)Type of Business	Yes
6)Line of Business	Yes
7)Promoter’s Background	------------------
8)No. of Employees	Yes
9)Name of Person Contacted	Yes
10)Designation of Contact person	Yes
11)Turnover of Firm for last three years	Yes
12)Profitability for last three years	No
13)Reason for variation <> 20%	No
14)Estimated for coming financial year	No
15)Capital in the Business	Yes
16)Details of Sister Concern	-----------------
17)Major Suppliers	Yes
18)Major Customer	Yes
19)Payment Terms	Yes
20)Export/ Import Details (if Applicable)	Yes
21)Market Information	------------------
22)Litigation that the Firm / Promoter	------------------
23)Banking Details	Yes
24)Banking facility details	Yes
25)Conduct of the Banking	-------------------
26)Buyer visit details	-------------------
27)Financials, if provided	Yes
28)Incorporation details, if applicable	-------------------
29)Last account filed at ROC	-------------------
30)Major Shareholders, if applicable	-------------------

Fixed Assets:

• Plant and Machinery
• Factory Building
• Furniture and Fixtures
• Flow- Test Lab
• Patterns
• Electrical Fixtures
• Computers
• Office Equipments
• Vehicles
• Fan
• Air Conditioners
• Intercom
• Fax – Machine
• Water – Cooler
• Mobile Phones

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.49.42
UK Pound	1	Rs.76.72
Euro	1	Rs.65.84

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	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.