MIRA INFORM REPORT

Report Date :

14.12.2012

IDENTIFICATION DETAILS

Name :	BHARAT ENGINEERING WORKS
Registered Office :	Office No. 33-34, Chittaranjan Avenue, 4^th Floor, Kolkata – 700012, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Year of Establishment :	1978
Capital Investment / Paid-up Capital :	Rs.15.000 Millions
IEC No.:	0288009151
TIN No.:	19710866086V
PAN No.: [Permanent Account No.]	AADFB2635D
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer of Cast Iron Ingot Moulds, Slagpots, Centre Columns and Bottom Plates.
No. of Employees :	200 (Approximately)

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 60000
Status :	Good
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established partnership concern having fine track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The concern 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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. Shard Chandra Dugar
Designation :	Partner
Contact No.:	91-9331079289
Date :	12.12.2012

LOCATIONS

Registered Office :	Office No. 33-34, Chittaranjan Avenue, 4^th Floor, Kolkata – 700012, West Bengal, India
Tel. No.:	91-33-22123662 / 22123663
Mobile No.:	91-9331079289 (Mr. Shard Chandra Dugar)
Fax No.:	91-33-22121077
E-Mail :	info@bharatengg.in
Website :	www.bharatengg.in
Area :	460 Sq. ft.
Location :	Owned
Factory :	National Highway-6, Village Khaua, P O Chamrail, Howrah-711114, West Bengal, India
Tel. No.:	91-33-26515582/26515583/32583696
Fax No.:	91-33-26515583
E-Mail :	bhar3662@dataone.in
Location :	Owned

PARTNERS

Name :	Mr. Sharad Chandra Dugar
Designation :	Partner
Address :	12/A Lord Sinha Road, Flat No. 504 and 505, Kolkata-700071, West Bengal, India
Date of Birth/Age :	62 Years
Name :	Mrs. Alka Dugar
Designation :	Partner
Address :	9, Princep Street, Kolkata-700072, West Bengal, India
Date of Birth/Age :	60 Years
Name :	Mrs. Rosy Dugar
Designation :	Partner
Address :	9, Princep Street, Kolkata-700072, West Bengal, India
Date of Birth/Age :	43 Years
Name :	Mr. Pramod Kumar Garodia
Designation :	Partner
Address :	14/110, Golf Club Road, Kolkata-700033, West Bengal, India
Date of Birth/Age :	59 Years
Name :	Mrs. Sushila Garodia
Designation :	Partner
Address :	52/1 Hazra Road, Kolkata-700019, West Bengal, India
Date of Birth/Age :	65 Years

BUSINESS DETAILS

Line of Business :	Manufacturer of Cast Iron Ingot Moulds, Slagpots, Centre Columns and Bottom Plates.
Exports :
Products :	Cast Iron Ingot Moulds, Slagpots, Centre Columns and Bottom Plates
Countries :	South Africa Italy Canada
Terms :
Selling :	Cash / Credit
Purchasing :	Cash / Credit

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Installed Capacity	Actual Production
Cast Iron Products	8400 MT/ANNOM	7786 MT/ANOM

GENERAL INFORMATION

Suppliers :

• A K Duggar And Company
• Agarwal Industrial Products
• All India Mineral Company
• Amar Iron Udyog Private Limited
• Asit Dutta And Company
• CESC Limited
• MMU Metaliks Udyog Private Limited

Customers :

Wholesalers and Retailers

• Steel Authority of India
• Tata Steel Limited
• Jindal Power Limited
• Essar Steel Limited

No. of Employees :

200 (Approximately)

Bankers :

Bank of India, Mission Row Branch, 15 Ganesh Chandra Avenue, Kolkata-700013, West Bengal, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011
Cash Credit	23.516
Term Loan (Cash Credit, Term Loan are secured against hypothecation of raw materials stock in process, finished goods, book debts and personal guarantee of all the partners.)	3.000
Total	26.516
Unsecured Loan	As on 31.03.2011
From Relatives a Associates	10.359
From Others	7.934
Total	18.293

Banking Relations :	--
Auditors :
Name :	A K Dugar and Company Chartered Accountants
Address :	33/1, N S Road, Marshall House, Room No. 507, Kolkata-700001, West Bengal, India
Tel. No.:	91-33-22306238
Fax No.:	91-33-22303485
E-Mail :	akduggar_co@rediffmail.com

CAPITAL STRUCTURE

As on 31.03.2012

Capital Investment :
Owned :	Rs.15.000 Millions (Estimated)
Borrowed :	--
Total :	Rs.15.000 Millions (Estimated)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Partner’s Capital		14.856
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		14.856
LOAN FUNDS
1] Secured Loans		26.516
2] Unsecured Loans		18.293
TOTAL BORROWING		44.809
DEFERRED TAX LIABILITIES		0.000
TOTAL		59.665
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.858
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	19.012
	Sundry Debtors	46.916
	Cash & Bank Balances	0.565
	Other Current Assets	0.000
	Loans & Advances	16.995
Total Current Assets		83.488
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	17.851
	Other Current Liabilities	17.801
	Provisions	0.029
Total Current Liabilities		35.681
Net Current Assets		47.807
MISCELLANEOUS EXPENSES		0.000
TOTAL		59.665

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011
	SALES
		Income	391.214	275.890
		Other Income	10.549	6.989
		TOTAL	401.763	282.879
Less	EXPENSES
		Cost of Good Sold	45.451	(4.429)
		Consumption of Raw Materials	231.091	198.758
		Consumption of Stores and Spares	16.990	14.523
		Salaries. Wages and Bonus	2.840	2.593
		Central Excise Duty	27.879	17.757
		Remuneration to Whole Time Partners	0.240	0.240
		Interest Paid to Partners of the Firm	1.856	1.336
		Office Expenses	68.117	45.959
		TOTAL	394.464	276.737
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		7.299	6.142
Less/ Add	DEPRECIATION/ AMORTISATION		1.684	1.761
	PROFIT BEFORE TAX		5.615	4.381
Less	TAX		1.768	1.373
	PROFIT AFTER TAX		3.847	3.008

Expected Sales (2012-13) : Rs.300.000 Millions

The above information has been parted by Mr. Shard Chandra Dugar

Note : Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011
PAT / Total Income	(%)	0.96	1.06
Net Profit Margin (PBT/Sales)	(%)	1.44	1.59
Return on Total Assets (PBT/Total Assets}	(%)	NA	4.59
Return on Investment (ROI) (PBT/Networth)		NA	0.29
Debt Equity Ratio (Total Liability/Networth)		NA	5.42
Current Ratio (Current Asset/Current Liability)		NA	2.34

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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 two years	Yes
12]	Profitability for last two 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	No
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	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

TRADE REFERENCES

• Steel Authority of India
• Tata Steel Limited
• Jindal Power Limited
• Essar Steel Limited

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.54.23
UK Pound	1	Rs.87.53
Euro	1	Rs.70.94

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

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