MIRA INFORM REPORT

Report Date :

31.10.2011

IDENTIFICATION DETAILS

Name :	VIRGO VALVES AND CONTROLS LIMITED
Registered Office :	7 B, 3^rd Floor, Sambhava Chambers, Sir P. M. Road, Fort, Mumbai – 400001, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	11.06.2004
Com. Reg. No.:	11-146916
Capital Investment / Paid-up Capital :	Rs.10.000 Millions
CIN No.: [Company Identification No.]	U29120MH2004PLC146916
TAN No.: [Tax Deduction & Collection Account No.]	MUMV11688F
PAN No.: [Permanent Account No.]	AABCV8733H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Industrial Valves and Accessories for Power, Chemicals, Petrochemicals, Pharmaceutical, Oil and Gas Industries.
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (58)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 8600000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having fine track. Financial position of the company appears to be sound. 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.

INFORMATION PARTED BY

Name :	Mr. Sandeep
Designation :	Accounts Manager
Contact No.:	91-20-66744000
Date :	31.10.2011

LOCATIONS

Registered Office :	7 B, 3^rd Floor, Sambhava Chambers, Sir P. M. Road, Fort, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-27474481
E-Mail :	manoj.kohok@virgoengineers.com mkohok@virgoengineers.com sandeep.sawant@virgoengineers.com
Website :	http://www.virgoengineers.com
Location :	Owned
Head Office :	277, Hinjewadi Phase II, Maan (Mulshi), Pune - 411 057, Maharashtra, India
Tel. No.:	91-20-66744000/ 66744021
Fax No.:	91-20-66744021
E-Mail :	bhavesh.manek@virgoengineers.com
Branch Office :	Located at: · Mumbai   · Baroda · New Delhi · Chennai · Kolkata
Overseas Office :	Unit - Fzs1 Ah07, Jebel Ali Free Zone, P.O Box - 18748, Dubai – UAE Phone - +971-4-8860980 Fax - +971-4-8860981 Contact: Vijay Samaga Email: vijay.samaga@virgoengineers.com Suite 1904, 19^th Floor, Kenanga International, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia Phone: +60 3 2161 8260 Fax: + 60 3 2166 6489 Contact: Aashish Jagnade Email: aashish.jagnade@virgoengineers.com

DIRECTORS

AS ON 23.08.2011

Name :

Mr. V. Balasubramanian

Designation :

Chairman cum Managing Director

Address :

505, Ganga Estate Chembur, Ghatla Village Road, Mumbai – 400 071, Maharashtra, India

Date of Birth/Age :

12.09.1945

Date of Appointment :

11.06.2004

DIN No.:

00335644

Other Directorships :

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	U28939PN1987PLC043673	VIRGO ENGINEERS LIMITED	Director	27-04-10	08-06-87	-	Active	NO
2	U99999PN1991PTC063298	VIRGO CONTROL SYSTEMS PRIVATE LIMITED	Director	04-09-91	04-09-91	-	Strike off	NO
3	U29120TN2003PLC082465	STAFFORD CONTROLS LIMITED	Director	01-04-03	01-04-03	15-11-08	Active	NO
4	U29120MH2004PLC146916	VIRGO VALVES AND CONTROLS LIMITED	Director	11-06-04	11-06-04	-	Active	NO
5	U29299PN2004PLC019901	VINTROL INDIA LIMITED	Director	03-11-04	03-11-04	-	Amalgamated	NO
6	U72200PN2003PTC017850	TALENTICA SOFTWARE (INDIA) PRIVATE LIMITED	Director	30-09-09	09-10-08	-	Active	NO
7	U74990MH2008PTC188247	OASIS TECHNOCRATS PRIVATE LIMITED	Director	17-11-08	17-11-08	-	Active	NO

Name :

Mr. Mahesh Shivanand Desai

Designation :

Director

Address :

B-11/12 Chaitraban Residency, Aundh, Pune – 411 007, Maharashtra, India

Date of Birth/Age:

16.09.1956

Date of Appointment :

20.03.2006

DIN No.:

00335134

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	U28939PN1987PLC043673	VIRGO ENGINEERS LIMITED	Director	08-06-87	08-06-87	-	Active	NO
2	U99999PN1991PTC063298	VIRGO CONTROL SYSTEMS PRIVATE LIMITED	Director	04-09-91	04-09-91	-	Strike off	NO
3	U29262GJ1995PTC051872	PRECISION SPINDLES LIMITED	Director	13-07-95	13-07-95	26-04-11	Active	NO
4	U29299PN2004PLC019901	VINTROL INDIA LIMITED	Director	03-11-04	03-11-04	-	Amalgamated	NO
5	U29120TN2003PLC082465	STAFFORD CONTROLS LIMITED	Director	02-02-06	02-02-06	15-11-08	Active	NO
6	U29120MH2004PLC146916	VIRGO VALVES AND CONTROLS LIMITED	Director	20-03-06	20-03-06	-	Active	NO

Name :

Mr. Jagdish Shivanand Desai

Designation :

Director

Address :

F/2, Shanti Co-Operative Housing Society, Mogal Lane, Mahim, Mumbai – 400 016, Maharashtra, India

Date of Birth/Age:

21.01.1959

Date of Appointment :

29.07.2005

DIN No.:

00335436

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	U99999PN1991PTC063298	VIRGO CONTROL SYSTEMS PRIVATE LIMITED	Director	04-09-91	04-09-91	-	Strike off	NO
2	U28939PN1987PLC043673	VIRGO ENGINEERS LIMITED	Director	01-07-95	01-07-95	-	Active	NO
3	U29299PN2004PLC019901	VINTROL INDIA LIMITED	Director	17-01-05	17-01-05	-	Amalgamated	NO
4	U29120MH2004PLC146916	VIRGO VALVES AND CONTROLS LIMITED	Director	29-07-05	29-07-05	-	Active	NO
5	U29120TN2003PLC082465	STAFFORD CONTROLS LIMITED	Director	02-02-06	02-02-06	15-11-08	Active	NO

Name :

Mr. V.R. Jayaraman

Designation :

Director

Address :

Flat No.11, 6^th Floor, Exclusive 14, Pallod Farms, Phase III, Baner Road, Pune – 411045, Maharashtra, India

Date of Birth/Age :

22.06.1951

Date of Appointment :

11.06.2004

DIN No.:

00972096

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	U29120TN2003PLC082465	STAFFORD CONTROLS LIMITED	Director	11-06-04	11-06-04	07-06-10	Active	NO
2	U29120MH2004PLC146916	VIRGO VALVES AND CONTROLS LIMITED	Director	11-06-04	11-06-04	-	Active	NO
3	U29299PN2004PLC019901	VINTROL INDIA LIMITED	Director	03-11-04	03-11-04	-	Amalgamated	NO

Name :

Mr. Kishore Anant Kulkarni

Designation :

Director

Address :

34, ICICI Apartments, Spring Mills Compo, Naigaum, Dadar – 400014, Maharashtra, India

Date of Birth/Age :

06.07.1954

Date of Appointment :

17.09.2007

DIN No :

01572451

Other Directorships :

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	U28939PN1987PLC043673	VIRGO ENGINEERS IMITED	Director	18-06-04	18-06-04	-	Active	NO
2	U29120MH2004PLC146916	VIRGO VALVES AND CONTROLS LIMITED	Director	17-09-07	26-07-07	-	Active	NO

Name :

Mr. Paresh Jaisinh Rajda

Designation :

Director

Address :

F6/1, Gera Emerald City, Pancard Club Road, Baner, Pune – 411045, Maharashtra, India

Date of Birth/Age :

18.01.1957

Date of Appointment :

29.04.2011

DIN No :

00680340

Other Directorships :

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	U28939PN1987PLC043673	VIRGO ENGINEERS LIMITED	Whole-time director	23-09-09	10-02-09	-	Active	NO
2	U29120MH2004PLC146916	VIRGO VALVES AND CONTROLS LIMITED	Director	23-08-11	29-04-11	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Sandeep
Designation :	Accounts Manager
Name :	Ms. Aprajita Pundhir
Designation :	Secretary
Address :	Flat No.8/16, Chandraloknagari Dhanukar Colony, Kothrud, Pune – 411 038, Maharashtra, India.
Date of Birth/Age :	15.08.1981
Date of Appointment :	18.12.2006
Pan No :	AQCPP1478K
E-Mail :	apundhir@virgoengineers.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 23.08.2011)

Names of Shareholders	No. of Shares
Virgo Engineers Limited, India	99994
V. Balasubramanian (Nominee of Virgo Engineers Limited, India)	1
Jagdish Desai (Nominee of Virgo Engineers Limited, India)	1
D.K. Vatsayan ((Nominee of Virgo Engineers Limited, India)	1
Sandeep Sawant (Nominee of Virgo Engineers Limited, India)	1
Prakash Kokane ((Nominee of Virgo Engineers Limited, India)	1
Durgesh Devnally (Nominee of Virgo Engineers Limited, India)	1
Total	100000

(AS ON 23.08.2011)

Equity shares Break-up

Category	Percentage
Bodies corporate	100.00
Total

BUSINESS DETAILS

Line of Business :

Manufacturer of Industrial Valves and Accessories for Power, Chemicals, Petrochemicals, Pharmaceutical, Oil and Gas Industries.

Products :

Item Code No. (ITC Code)	848180
Product Description	Ball Valve

v Floating Ball Valves

v Trunnion Mounted Ball Valves

v Valve Automation Services

v Butterfly Valves

v Rack and Pinion Actuator

v Skotch – Yoke Actuator

Exports :

Products :

Industrial Valves

Countries :

· Middle East

· USA

· Europe

· Far East

Imports :

Products :

Valves

Countries :

· Italy

· Germany

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Actual Production
Valves	Nos.	41200

GENERAL INFORMATION

Suppliers :

· Shaha Premises Private Limited

Customers :

End Users

· Saitem

· Tatar Shell

· Petrofac International

No. of Employees :

400 (Approximately)

Bankers :

· State Bank of India

Factors and Commercial Services Private Limited, 903-906, Raheja Chambers, 9^th Floor, Free Press, Journal Marg, Nariman Point, Mumbai – 400 021, Maharashtra, India

· State Bank of India,

Industrial Finance Branch, Tata Chambers, 2^nd Floor, Near Mariaai Police Chowky, Mumbai Pune (Old) Highway, Wakdewadi, Pune – 411003, Maharashtra, India

· The Hongkong and Shanghai Banking Corporation Limited,

52/60 Mahatma Gandhi Road, Fort, Mumbai – 400 001, Maharashtra, India

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
A. Term Loans Finance lease obligation	3.204	3.669
B. Working capital facilities from banks and financial institutions From Banks
1. Cash credit [Secured by a first pari passu charge by way of hypothecation of present and future stocks and receivables and first, second exclusive charge by way of hypothecation of present and future fixed assets.]	31.391	1.529
2. Packing credit [Secured by a first pari passu charge by way of hypothecation of present and future stocks and receivables and first, second exclusive charge by way of hypothecation of present and future fixed assets.]	135.511	176.881
3. Buyer's credit [Secured by a first pari passu charge by way of hypothecation of present and future stocks and receivables and first, second exclusive charge by way of hypothecation of present and future fixed assets.]	64.335	14.978
Total	234.441	197.057
Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From Subsidiary	3.300	0.000
Total	3.300	0.000

Banking Relations :	--
Auditors :
Name :	S R Batliboi and Associates Chartered Accountants
Address :	C-401, Fourth Floor, Panchshil Tech Park, Pune – 411 006, Maharashtra, India.
Holding Company :	Virgo Engineers Limited CIN No: U28939PN1987PLC043673
Subsidiaries :	Virgo Europe S.p.A., Italy Via Delle Orchidee 7, 20020 Vanzaghello – Milano (Italy) Phone: +39 0331 308 211 Fax: +39 0331 306299 Contact: Carlo Santi Email: csanti@virgoeurope.com Rifox Hans Richter GMBH Spezialarmaturen, Germany Spezialarmaturen, Bertha-Von-Suttner-Str.9, 28207 Bremen, Germany Phone: +49 421 49975 16 Fax: 49 421 49975 40 Contact: Rolf Roessler Email: contact@rifox.de Vintrol India Limited CIN No.: U29299PN2004PLC019901 Virgo Engineers Inc., USA 2900, Wilcrest Drive # 490, Houston, TX 77042, USA Phone: +1 713 554 3143 Fax: +1 713 554 3147 Contact: Mike Malkarnekar Email: m.malkarnekar@virgoengineers.com Virgo Valves and Controls (UK) Limited Virgo Valves and Controls (ME) FZE Vintrol Inc. USA 5325 S.W. 36th St. Oklahoma City, OK 73179 Phone: +1 405-261-0770 Fax: +1 405-261-0774 Email: sales@vintrol.com
Fellow Subsidiaries :	EVS Valves Inc., USA 10225 Mula Roda # 130, Stafford, TX 77479, USA Phone: +1 281 933 3100 Fax: +1 281 933 3110 Contact: Ronda Espinoza Email:sales@evsvalves.com

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Millions
100000	Preference Shares	Rs.100/- each	Rs.10.000 Millions
	Total		Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Millions

[The entire share capital is held by the holding company, Virgo Engineers Limited and its nominees.]

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		10.000	10.000	10.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2130.450	1700.884	1106.088
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2140.450	1710.884	1116.088
LOAN FUNDS
1] Secured Loans		234.441	197.057	205.176
2] Unsecured Loans		3.300	0.000	0.000
TOTAL BORROWING		237.741	197.057	205.176
DEFERRED TAX LIABILITIES		3.349	3.253	2.122
TOTAL		2381.540	1911.194	1323.386
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		177.119	174.150	151.445
Capital work-in-progress		21.131	2.093	0.099
INVESTMENT		832.434	481.096	230.476
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	480.127	523.376	450.373
	Sundry Debtors	917.239	1020.562	734.251
	Cash & Bank Balances	74.959	88.233	85.877
	Other Current Assets	47.026	46.476	22.094
	Loans & Advances	460.787	351.581	192.159
Total Current Assets		1980.138	2030.228	1484.754
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	403.476	504.675	272.934
	Other Current Liabilities	144.907	200.975	198.269
	Provisions	80.899	70.723	72.185
Total Current Liabilities		629.282	776.373	543.388
Net Current Assets		1350.856	1253.855	941.366
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2381.540	1911.194	1323.386

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	2383.638	2720.187	2019.858
		Other Income	34.196	16.900	23.302
		TOTAL (A)	2417.834	2737.087	2043.160
Less	EXPENSES
		Raw Material Consumed (including job work)	1058.158	1367.366	1227.041
		Purchase of traded goods	290.123	150.467	35.347
		Increase/Decrease in Inventories	60.250	(45.418)	(114.744)
		Employees remuneration and benefits	116.555	104.283	72.941
		Operating and other expenses	247.732	355.873	190.881
		TOTAL (B)	1772.818	1932.571	1411.466
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		645.016	804.516	631.694
Less	FINANCIAL EXPENSES (D)		42.133	53.462	40.243
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		602.883	751.054	591.451
Less/ Add	DEPRECIATION/ AMORTISATION (F)		23.991	20.470	17.421
	PROFIT BEFORE TAX (E-F) (G)		578.892	730.584	574.030
Less	TAX (H)		13.506	8.263	2.997
	PROFIT AFTER TAX (G-H) (I)		565.386	722.321	571.033
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1505.884	991.087	600.140
	Adjustment for Employee benefit provisions (net of tax Nil)		0.000	0.000	(0.739)
Less	APPROPRIATIONS
		Proposed final dividend on equity shares	63.500	11.500	55.000
		Interim dividend on equity shares	52.800	97.500	0.000
		Tax on dividend	19.520	18.524	9.348
		Transfer to General Reserve	57.000	80.000	115.000
	BALANCE CARRIED TO THE B/S		1878.450	1505.884	991.087
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. value of exports	2037.295	2429.824	1891.952
		Sales of foreign branch	74.688	175.511	125.299
		Interest Received	4.058	6.438	2.858
		Miscellaneous income	0.000	0.000	1.960
	TOTAL EARNINGS		2116.041	2611.773	2022.069
	IMPORTS
		Raw materials and components	541.201	746.960	633.964
		Capital assets	5.065	13.504	0.679
	TOTAL IMPORTS		546.266	760.464	634.643
	Earnings Per Share (Rs.)		5653.86	7223.21	5710.34

Particulars	31.03.2011
Sales Turnover (Approximately)	2210.000 (Order shifted to 2011)

The above information has been parted by Mr. Sandeep.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	23.72	26.39	27.95
Net Profit Margin (PBT/Sales)	(%)	24.29	26.86	28.42
Return on Total Assets (PBT/Total Assets}	(%)	27.05	33.14	35.08
Return on Investment (ROI) (PBT/Networth)		0.27	0.43	0.51
Debt Equity Ratio (Total Liability/Networth)		0.41	0.57	0.67
Current Ratio (Current Asset/Current Liability)		3.15	2.62	2.73

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2010	31.03.2009	31.03.2008
	(Rs. In Millions)
Sundry Creditors for goods and expenses
- Dues to Micro, small and medium enterprises	19.546	7.938	19.153
- Dues to subsidiaries	138.693	120.436	8.337
- Dues to others	245.237	376.301	245.444
Total	403.476	504.675	272.934

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	----------
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last two years	Yes
Profitability for last three years	----------
Reasons for variation <> 20%	Yes
Estimation for coming financial year	No
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	Yes
Major Customers	Yes
Payments Terms	Yes
Export/ Imports Details (If applicable)	Yes
Market Information	----------
Litigations that the firm/ Promoters Involved in	----------
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	----------
Buyer visit details	----------
Financials, if provided	No
Incorporation details is applicable	----------
Last Accounts filed at ROC	----------
Major Shareholders, if available	----------

THE YEAR IN RETROSPECT:

During the year the company has achieved total Revenue of Rs.2417.83 Million. This is against the revenue of Rs.2737.09 Million achieved during the previous year. The PAT decreased by 21.73% from Rs.722.32 Million to Rs.565.39 Million. The drop in the total revenues and PAT was mainly on account of a decline in the USD and European markets, partially compensated by a growth in the Far Eastern market.

AMALGAMATION OF VINTROL INDIA LIMITED:

The company is in the process of amalgamation of its wholly owned subsidiary Vintrol India Limited with the company. The company has filed an application dated March 07, 2010 with the Hon’ble High court of Bombay for the amalgamation under Section 391 to Section 394 of the Companies Act, 1956 and consequently filed a petition dated April 19, 2010 for confirmation of amalgamation. The amalgamation has been proposed to enable optimum

Utilization of existing resources.

TRADE REFERENCE:

· Saitem

· Tatar Shell

· Petrofac International

· Shaha Premises Private Limited

Bankers Charges Report as per Registry

Name of the company

VIRGO VALVES AND CONTROLS LIMITED

Presented By

State Bank of India, Industrial Finance Branch, Pimpri, Pune, Maharashtra, India

1) Date and description of instrument creating the change

a) Agreement of Loan for overall limit (Form C.1)

b) Agreement of Hypothecation of Goods (Form C.2)

c) Deed of Guarantee for overall limit (Form C.4)

d) Letter regarding grant of individual limit with overall limit (Form C.5)

All the above Agreements dated 12.10.2004 and executed for creation of a single charge.

2) Amount secured by the charge/amount owing on the securities of charge

Rs.72.500 Millions

Nature of Facility	Limit (Rs. In Millions)
1) Export Packing Credit/ Export Bill Discounting	30.000
2) Term Loan	15.000
3) Letter of credit/Bank Guarantee	20.000
4) Stand by Line of Credit	7.500
Total	72.500

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

A first charge by way of hypothecation and/or pledge of the Borrower’s entire goods, movables and other assets present and future including document of title to the goods and other assets such as book debts, outstanding moneys, receivables including receivables by way of cash assistance and/or cash includes under the cash incentive scheme or any other scheme, claims, including claims by way of refund of customs/excise duties under the Duty Drawback Credit Scheme or any other scheme, bills, invoices, documents, contracts, insurance policies, guarantees, voices, documents, contracts, insurance policies, guarantees, engagements, securities, investments and rights uncalled capital and all machinery present and future of such form satisfactory to the Bank.

4) Gist of the terms and conditions and extent and operation of the charge.

Rate of interest: As per RBI Guidelines from time to time with monthly rest.

1.25% above SBAR min.11.50%p.a. with monthly rests.

5) Name and Address and description of the person entitled to the charge.

State Bank of India, Industrial Finance Branch, Pimpri, Pune – 411 034, Maharashtra, India

6) Date and brief description of instrument modifying the charge

N.A.

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

N.A.

This form is for	Modification of charge
Charge identification number of the modified	90148904
Corporate identity number of the company	U29120MH2004PLC146916
Name of the company	VIRGO VALVES AND CONTROLS LIMITED
Address of the registered office or of the principal place of business in India of the company	7B, 3^rd Floor, Sambhava Chambers, Sir P.M. Road, Fort, Mumbai – 400 001, Maharashtra, India Manoj.Kohok@virgoengineers.com
Type of charge	Book Debts Movable Property Others: Stock in all Its Elements
Particular of charge holder	State Bank of India Industrial Finance Branch, 2nd Floor, Tara Chambers,Near Mariaai Policechowky, Pune Mumbai Old Highway, Wakdewadi, Pune – 411003, Maharashtra, India p.praveen@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Supplemental Agreement of Hypothecation of Goods and Assets for increase in the overall limit, Supplementary Agreement of Loan for increase in the Overall Limit, Letter regarding the Grant of Individual limits within the Overall Limit, all these documents were executed to create first pari passu charge to be shared with HSBC on all the present and future current assets inclusive of Book Debts of the Borrower Company.
Date of instrument Creating the charge	04.10.2011
Amount secured by the charge	Rs.1700.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: For DCC: 3.50% above Base Rate effective rate:13.50% For EPC/PCFC and EBD/EBR Limit: As per RBI'/Bank's Policy time to time presently applicable to SBI Gold Card Scheme. LC/BG: 1% pa Commission. Terms of Repayment: DCC: On Demand. Penal interest on any of the default of Terms and Conditions as per RBI's Norms. Margin: RM: 25% Stock in Process: 40% Finished Goods: 33.33% Book Debts (Cover Period 90 days): 40% Consumable stores and spares: 40% Extent and Operation of the charge: SBI IFB Pune will have first pari passu charge (Sharing along with HSBC) over all the present and future current assets inclusive of Book debts generated through the commercial transactions and records thereof and the assets that would come into existence through the credit facilities extended by the Bank to the Borrower Company. The Charge will be in continuous mode till the repayment of entire loan with interest thereon. Company has provided the Corporate Guarantee of Virgo Engineers Limited Others: The Company, by virtue of the Board Resolution passed on28/06/2011, has given assent to all the Terms and Conditions, Covenants, and have executed the related loan document(s)/ Agreement(s) through the Director(s),who have received and signed the documents in physical form and who have been authorized to file eform-8 for modifications in the existing limits and in the nature and scope of the charge on agreed terms.
Short particulars of the property charged	First Pari Passu Charge on entire Stocks, Receivables and other current assets of the Company at 277 Hinjewadi Phase II, Maan (Mulshi), Pune and at Plot No 6 and 7,SEZ Marg, Kancheepuram First Pari Passu Charge on entire fixed assets of the Company ( Excluding the leasehold land) situated '277', Hinjewadi Phase II, Maan (Mulshi), Pune-411057
Particulars of the present modification	By this present modification, the existing limit of various credit facilities amounting Rs.1350.000 Millions has been enhanced up to Rs.1700.000 Millions

FIXED ASSETS:

v Leasehold Improvements

v Furniture and Fixtures

v Plant and Machinery

v Dies and Patterns

v Jigs and Fixtures

v Electrical Installations

v Computers

v Office Equipments

v Vehicle

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.48.82
UK Pound	1	Rs.78.57
Euro	1	Rs.69.29

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		58

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.