MIRA INFORM REPORT

Report Date :

09.08.2012

IDENTIFICATION DETAILS

Name :	SWELORE ENGINEERING PRIVATE LIMITED
Registered Office :	2109, Phase III, GIDC, Vatwa, Ahmedabad-382445, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.03.1981
Com. Reg. No.:	04-004202
Capital Investment / Paid-up Capital :	Rs.10.000 Millions
CIN No.: [Company Identification No.]	U29199GJ1981PTC004202
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Metering Pumps, Dosing Pumps, Plunger Pumps and Diaphragm Type Pumps.
No. of Employees :	150 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 171000
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.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Nirav Parekh
Designation :	Finance Head
Contact No.:	91-79-40237158
Date :	08.08.2012

LOCATIONS

Registered Office/Factory :	2109, Phase III, GIDC, Vatwa, Ahmedabad-382445, Gujarat, India
Tel. No.:	91-79-25833003 / 25891732 / 25896131
Fax No.:	91-79-25833337 / 25892449
E-Mail :	info@swelore.com accounts@swelore.com sales@swelore.com sweloengineering@yahoo.com
Website :	http://www.swelore.com
Area :	10,000 sq. ft
Location :	Leased
Sales and Marketing Office :	Vishwesh Bhuvan, D.L. Vaidya Road, Dadar (West), Mumbai-400028, Maharashtra, India
Tel No.:	91-22-24306293 / 24304311
Fax No.:	91-22-24226330

DIRECTORS

As on 22.09.2011

Name :	Mr. Hiren Rasiklal Gajjar
Designation :	Director
Address :	16, Sanidya Bungalow, Krupesh CHS.Limited, On The Way To Jodhpur Gam, Vejalpur, Ahmedabad-380015, Gujarat, India
Date of Birth/Age :	28.11.1961
Qualification :	B Com
Date of Appointment :	20.03.1981
DIN :	00257186
Voter ID No.:	LBR5838610
Name :	Mr. Chirantan Rohit Gajjar
Designation :	Director
Address :	16, Satelite Society, Jodhpur, Ahmedabad-380015, Gujarat, India
Date of Birth/Age :	28.03.1979
Qualification :	B E Mechanical Engineer
Date of Appointment :	20.03.1981
DIN :	00295126
Voter ID No.:	LPZ4101051
Name :	Mr. Rohit Rasiklal Gajjar
Designation :	Director
Address :	S7 – 42, Kalhaar Bungalow, Shilaj, Ahmedabad-380058, Gujarat, India
Date of Birth/Age :	22.10.1952
Date of Appointment :	15.10.1986
DIN :	01569391
Voter ID No.:	LBR3381381

KEY EXECUTIVES

Name :	Mr. Nirav Parekh
Designation :	Finance Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Preferences Shares	No. of Equity Shares
Rohit Rasiklal Gajjar	750	15075
Hiren Rasiklal Gajjar	750	19575
Chirantan Rohit Gajjar	--	5025
Sanyuktaben R Gajjar	--	16275
Varsha R Gajjar	500	18975
Rira H Gajjar	500	19050
Jeenal C Gajjar	--	1500
Royal H Gajjar	--	2025
Total	2500	97500

As on 22.09.2011

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

BUSINESS DETAILS

Line of Business :	Manufacturer of Metering Pumps, Dosing Pumps, Plunger Pumps and Diaphragm Type Pumps.
Exports :
Products :	Pumps
Countries :	Gulf Countries
Imports :
Products :	Raw Materials
Countries :	UK
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Actual Production
Metering Pump Simplex Pump and other Pump	Nos.	18381

GENERAL INFORMATION

Suppliers :

· Bombay Engineer Group

Customers :

Wholesalers and Retailers

· Indian Oil Corporation

· Indian Oil Corporation

· Reliance Petroleum Limited

· Bharat Petroleum Corporation Limited

· Bongaigaon Refinery and Petrochemical Limited

· Madras Refinery Limited, Madras

· Cochin Refinery Limited, Ernakulam

· Mangalore Refineries and Petrochemicals Limited

· Khammam Chemical Refinery (A.P.)

· Numaligarh Refinery Limited  

· Gujarat State Fertilizers Company Limited

· Indian Farmers and Fertilizers Co Operative Limited

· Gujarat Narmada Valley Fertilizers Company Limited

· Fertilizers and Chemicals Travancore Limited

· Madras Fertilizers Limited

· Zuari Agro Chemicals Limited

· Shriram Chemicals and Fertilizers

· Chambal Fertilizer and Chemicals

No. of Employees :

150 [Approximately]

Bankers :

• State Bank of India, Laghu Udhyog Branch, Opposite Gandhigram Railway Station, Gandhigram, Ahmedabad-380009, Gujarat, India
• HDFC Bank, Vatwa, Ahmedabad, Gujarat, India
• Bank of Baroda
• Citi Bank

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
From State Bank of India
Cash Credit Account	9.009	15.187
Overdraft Account [Above loans are secured by equitable mortgage of land and building and hypothecation of movable assets and inventories, like Raw Materials, Stock-in Process, Finished Goods, Book Debts and Other Assets and also personally guaranteed by directors of the company and also corporate guarantee of Hiro-Nisha Systems Private Limited and pledge of fixed deposits]	12.750	10.007
From HDFC Bank Limited [Against hypothecation of motor car]	1.800	3.522
Total	23.559	28.716
Unsecured Loan
From Directors	4.570	6.262
From Shareholders	20.946	13.918
From Relatives and Friends	4.076	2.595
Total	29.592	22.775

Banking Relations :	--
Auditors :
Name :	B A Pavagadhi and Company Chartered Accountant
Address :	304-305, Sagun Complex, 93/B, Swastic Society, Near Xavier’s Ladies Hostel, Navarangpura, Ahmedabad-380009, Gujarat, India
Pan No.:	AAKPJ5048H
Associates/Subsidiaries :	· Hiro Nisha Systems Private Limited Address: 2112, Phase III, GIDC, Vatva, Ahmedabad 382445, Gujarat, India Activity: Manufacturer of High Pressure Positive Displacment Triplex Plunger Pumps.

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
297500	Equity Shares	Rs.100/- each	Rs.29.750 Millions
2500	Preferences Shares	Rs.100/- each	Rs.0.250 Million
	Total		Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
97500	Equity Shares	Rs.100/- each	Rs.9.750 Millions
2500	Preferences Shares	Rs.100/- each	Rs.0.250 Million
	Total		Rs.10.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		10.000	10.000	10.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		32.888	25.381	13.758
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		42.888	35.381	23.758
LOAN FUNDS
1] Secured Loans		23.559	28.716	2.123
2] Unsecured Loans		29.592	22.775	13.007
TOTAL BORROWING		53.151	51.491	15.130
DEFERRED TAX LIABILITIES		0.269	0.225	0.287
TOTAL		96.308	87.097	39.175
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		50.835	32.530	22.234
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	20.889	9.993	8.988
	Sundry Debtors	158.937	97.962	89.950
	Cash & Bank Balances	41.649	60.735	26.575
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	20.057	23.866	15.672
Total Current Assets		241.532	192.556	141.185
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	169.187	110.687	82.238
	Other Current Liabilities	4.652	3.553	22.474
	Provisions	23.366	23.943	19.532
Total Current Liabilities		197.205	138.183	124.244
Net Current Assets		44.327	54.373	16.941
MISCELLANEOUS EXPENSES		0.146	0.194	0.000
TOTAL		95.308	87.097	39.175

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	399.100	415.600	257.974
		Other Income	20.653	15.163	11.507
		Deferred Tax Assets Provided	0.000	0.062	0.107
		TOTAL (A)	419.753	430.825	269.588
Less	EXPENSES
		Raw Material and Other Manufacturing Expenses	292.081	303.938	186.958
		Salary, Wages and Other Benefits	12.014	9.209	7.211
		Administrative and Operative Expenses	53.375	49.918	34.389
		Remuneration to Directors	22.170	22.930	11.833
		Decrease in Stocks	0.000	0.601	1.668
		Increase / Decrease in Closing Stocks	(2.186)	0.000	0.000
		TOTAL (B)	377.454	386.596	242.059
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		42.299	44.229	27.529
Less	FINANCIAL EXPENSES (D)		7.657	5.386	3.489
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		34.642	38.843	24.040
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.042	2.970	2.434
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		30.600	35.873	21.606
Less	TAX (H)		11.727	12.807	8.386
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		18.873	23.066	13.220
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		7.239	0.116	0.988
	BALANCE CARRIED TO THE B/S		26.112	23.182	14.208
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	5.234	5.054	7.445
	IMPORTS
		Raw Materials	6.691	1.323	1.709
	Earnings / (Loss) Per Share (Rs.)		193.21	236.21	202.85

Particulars	31.03.2012
Sales Turnover [Approximately]	500.000

Expected Sales (2012-13) : Rs.

The above information has been parted by Mr. Nirav Parekh.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.50	5.35	4.90
Net Profit Margin (PBT/Sales)	(%)	7.67	8.63	8.37
Return on Total Assets (PBT/Total Assets}	(%)	10.47	15.94	13.22
Return on Investment (ROI) (PBT/Networth)		0.71	1.01	0.91
Debt Equity Ratio (Total Liability/Networth)		5.84	5.36	5.87
Current Ratio (Current Asset/Current Liability)		1.22	1.39	1.14

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditors
For Goods	114.242	71.747	56.456
For Labour Job	10.792	6.123	5.467
For Expenses	44.153	32.817	20.315
Total	169.187	110.687	82.238

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
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	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes
31) PAN of Proprietor/Partner/Director, if available	No
32) Date of Birth of Proprietor/Partner/Director, if available	Yes
33) Voter ID No of Proprietor/Partner/Director, if available	Yes
34) External Agency Rating, if available	No

OPERATIONAL RESULTS:

During the year, the company achieved sales of Rs.399.100 Millions (excluding excise duty) as against the sales of Rs.415.600 Millions for the year 2009-10. During the year the company has opened Prelam Division at Sanad to manufacture Pre-Laminated Sheets by incurred Capital Expenditure of Rs.8.507 Millions. The company has achieved sales of Rs.229.535 Millions upto August, 2011. The directors of the company put their all efforts to increase the sales during the current year.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U29199GJ1981PTC004202
Name of the company	SWELORE ENGINEERING PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Ahmedabad, Gujarat, India
This form is for	Modification of Charge
Charge identification (ID) number of the charge to be modified	90103688
Type of charge	Immovable Property Others
Particular of charge holder	State Bank of India, Laghu Udhyog Branch, Opposite Gandhigram Railway Station, Gandhigram, Ahmedabad 380009, Gujarat, India
Nature of instrument creating charge	Memorandum relating to deposit of title deeds for creation of further charge for term loan/overall limit where the initial charge is created by way of mortgage by deposit of title deeds,dated 30.10.2010.
Date of instrument Creating the charge	30.10.2010
Amount secured by the charge	Rs.100.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest - Interest @0.75% above SBAR, (SBAR=11.75%, wef 29.06.09) rising or falling therewith on daily products with monthly rests. Present effective rate 12.50% p.a. Terms of Repayment - Working capital : Repayable on Demand. Margin – Raw materials (Imported) - 25% Raw materials (Indigenous) - 25% Stocks in process - 40% Finished goods - 40% Receivables (75 days) - 50% Bank Guarantee - 25% Extent and Operation of the charge - All immovable Assets mortgaged with the Bank shall stand charged in favour of the Bank as a continuing security by way of First Charge for the due repayment of all monies including enhanced limits. Others - Individual limits within overall limit as under : (i) Demand cash credit (stks) -Rs.20.000 Millions (ii) DDP (Bills/cheque within DCC) -Rs.(4.000) Millions (iii) Standby line of credit - Rs.3.000 Millions (iv) Bank Guarantee-Rs.77.000 Millions making overall aggregate total credit facilities of Rs.100.000 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Leasehold land bearing P.No.2109 (PH-III) together with factory building/shed standing thereon situated in the GIDC Vatva Industrial Estate consisting of R.S.No.139,p within village limit Ghodasar, District A'bad Land bearing P.No.2013 (PH-III) together with factory building/shed standing thereon situated in the GIDC Vatva Industrial Estate consisting of R.S.No.139,p within village limit Ghodasar, District A'bad Leasehold land bearing P.No.2010 (PH-III) together with factory building/shed standing thereon situated in the GIDC Vatva Industrial Estate consisting of R.S.No.139,p within village limit Ghodasar, District A'bad
Date of instrument modifying the charge	25.07.2010
Particulars of the present modification	The Company has mortgaged immovable properties belonging to the Company in favour of the Bank to secure the credit facilities of Rs.100.000 Millions as under (i) Demand cash credit (stks)-Rs.20.000 Millions (ii) DDP (Bills/cheque within DCC) - Rs.(4.000) Millions (iii) Standby line of credit - Rs.3.000 Millions (iv) Bank Guarantee-Rs.77.000 Millions, Now the amount of charge on immovable properties/assets extend to aggregate of Rs.100.000 Millions

CONTINGENT LIABILITIES: [AS ON 31.03.2011]

(a) The Company has given Guarantees to State Bank of India, Specialized Commercial Branch - Ahmedabad to cover the limit of Rs.14.000 Millions availed by Hiro Wisha systems Private Limited.

(b) There may be a contingent liability In respect of the guarantee given by the Bank to third parties on behalf of the Company Rs. 65.325 Millions which is net of Margin with the bank in the form of Term Deposits (previous year Rs. 50.872 Millions).

FIXED ASSETS:

• Leasehold land
• Factory buildings
• Plant and Machinery
• Furniture and Fixtures
• Computer
• Vehicles
• Books and Periodical
• Cycle
• Vehicles
• Electrical Installations

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.55.15
UK Pound	1	Rs.86.00
Euro	1	Rs.68.31

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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		45

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.