MIRA INFORM REPORT

Report Date :

19.07.2012

IDENTIFICATION DETAILS

Name :	MEMBRANE ENGINEERING PRIVATE LIMITED
Registered Office :	C-5/5 Safdarjung Development Area, New Delhi - 110016
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.03.1999
Com. Reg. No.:	55-098917
Capital Investment/ Paid-up Capital:	Rs.0.530 Million
CIN No.: [Company Identification No.]	U29255DL1999PTC098917
TAN No.: [Tax Deduction & Collection Account No.]	DELM08308G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporters of Water Treatment Systems and Equipments, Waste Water Treatment Systems, Distillation Plants, R.O. Plants for Domestic, Commercial and Industrial Application.
No. of Employees:	60 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 12000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profitability of the company appears to be low. However, trade relations are reported to be fair. Business is active. Payments are reported slow but correct. The company can be considered for business dealings with some cautions.

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 (GENERAL DETAILS)

Name :	Mr. M. M. Narang
Designation :	Director
Contact No.:	91-9810132937
Date :	14.07.2011

LOCATIONS

Registered Office :	C-5/5 Safdarjung Development Area, New Delhi - 110016, India
Tel. No.:	91-11-26953719
Mobile No.:	91-9810132937 (Mr. M. M. Narang )
Fax No.:	91-11-26961300
E-Mail :	membrane@vsnl.com mt@airtelmail.in info@membranegroup.com
Website :	http://www.membranegroup.com
Location :	Owned
Factory :	56, Functional Industrial Estate, Patparganj, New Delhi - 110092, India
Tel. No.:	91-11-22143673/ 22143857/ 22144077/ 22159360
Fax No.:	91-11-22143857/ 22143673
E-Mail :	membrane@vsnl.com
Location :	Owned

DIRECTORS

As on: 29.09.2011

Name :

Mr. Man Mohan Narang

Designation :

Director

Address :

C-5/5, Safdarjung, Development Area, New Delhi-110016, India

Date of Birth/Age :

02.01.1956

Date of Appointment :

19.03.1999

DIN No.:

00106624

Other Directorships :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1993PTC051562	MEMBRANE TYRES PRIVATE LIMITED	Director	04/01/1993	04/01/1993	-	Active	NO
2	U29255DL1999PTC098917	MEMBRANE ENGINEERING PRIVATE LIMITED	Director	19/03/1999	19/03/1999	-	Active	NO

Name :

Mr. Bhupinder Narang

Designation :

Director

Address :

C-5/5, Safdarjung, Development Area, New Delhi-110016, India

Date of Birth/Age :

20.12.1960

Date of Appointment :

19.03.1999

DIN No.:

00106474

Other Directorships :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1989PTC036790	MEMBRANE FILTRATION SYSTEMS PRIVATE LIMITED	Director	03/07/1989	03/07/1989	-	Active	NO
2	U74899DL1993PTC051562	MEMBRANE TYRES PRIVATE LIMITED	Managing director	04/01/1993	04/01/1993	-	Active	NO
3	U29255DL1999PTC098917	MEMBRANE ENGINEERING PRIVATE LIMITED	Director	19/03/1999	19/03/1999	-	Active	NO

Name :

Mrs. Suman Narang

Designation :

Director

Address :

C-5/5, Safdarjung, Development Area, New Delhi-110016, India

Date of Birth/Age :

21.04.1958

Date of Appointment :

19.03.1999

Name :

Mr. Peeyush Narang

Designation :

Director

Address :

C-5/5, Safdarjung, Development Area, New Delhi-110016, India

Date of Birth/Age :

06.10.1986

Date of Appointment :

25.05.2011

DIN No.:

02941703

Other Directorships :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1989PTC036790	MEMBRANE FILTRATION SYSTEMS PRIVATE LIMITED	Director	01/02/2010	01/02/2010	-	Active	NO
2	U29255DL1999PTC098917	MEMBRANE ENGINEERING PRIVATE LIMITED	Director	25/05/2011	25/05/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2011

Names of Shareholders	No. of Shares
Man Mohan Narang	4290
Bhupinder Narang	1010
Total	5300

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2011

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Water Treatment Systems and Equipments, Waste Water Treatment Systems, Distillation Plants, R.O. Plants for Domestic, Commercial and Industrial Application.

Products :

Product Description	ITC Code
Trading of Water Treatment Components and Plants	84.198904

· Water Treatment Systems and Equipments

· Wastewater Treatment Systems

· Zero Liquid discharge Schemes for Industries

· Oil water separators

· Motor Fuel Grade Ethanol Plants

· Alcohol Distilleries on multi feed stocks

· Chemical Process Equipment

· Edible Oil Refineries

· Solvent Extraction Plants

· Filtration Equipment and Systems

Imports :

Products :

· Components

Countries :

· USA

· Europe

Terms :

Selling :

L/C

Purchasing :

L/C

GENERAL INFORMATION

Suppliers :

· Anu Advance Composite Products Private Limited

· Aventure Components Private Limited

· B I Computers

· Chemical Liners And Descalers

· Compact Freight International

· C R I Pumps Private Limited

· Ea Water Private Limited

· Hiller Decanter India Private Limited

· Hussain Agro Engg Company

· Impel Marketing India Private Limited

· Kanuj Envirotech Private Limited

· Kitten Enterprises Private Limited

· Madan Singh Anand And Sons

· Membrane Filtrations Sys Private Limited

· Nanda Manufacturing Company

· Nanfang Pumps India Private Limited

· Northern Cooling Towers Private Limited

· Pentair Water India Private Limited

· Pentair Water Treatment Private Limited

Customers :

End Users

· Purificadora Glacial, USA

· Crown Foods, Sudan

· Hassani Foods, Dubai

· Crown Foods, Sudan

· Marble Arts, Dubai

· Avrora Capital, Finland

· Phoenix Oil Corporation, USA

· Himalayan Distillery, Nepal

· 50 TPD Deodorizers to Libya, Sudan

· Suzuki Motors, India

· Maruti Diesel Plant, India

· Tihar Jail, India

· Mahagun India Limited

· Milton Cycle Industries, India

· Nuclear Science Center, India

· IIT Delhi, India

· North Eastern Railway, India

· Central Research Institute, India

· Bihar Caustic and Chemicals Limited, India

No. of Employees :

60 (Approximately)

Bankers :

· Union Bank of India, Safdarjang Development Area Branch

· Oriental Bank of Commerce, Safdarjang Development Area Branch

· United Bank of India, Safdarjang Development Area Branch, New Delhi-110016, India

· ICICI Bank Limited, Safdarjang Development Area Branch

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
United Bank of India	3.907	1.960
Total	3.907	1.960
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Unsecured Loan	6.867	0.000
Total	6.867	0.000

Banking Relations :	--
Auditors :
Name :	Vivek Agarwal Chartered Accountant
Address :	18B, Ansari Road, Darya Ganj, New Delhi - 110002, India
PAN No.:	AAKPA0766D
Memberships :	PHDCC

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.100/- each	Rs.1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5300	Equity Shares	Rs.100/- each	Rs.0.530 Million

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		0.530	0.530	0.530
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2.634	1.786	1.044
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3.164	2.316	1.574
LOAN FUNDS
1] Secured Loans		3.907	1.960	2.747
2] Unsecured Loans		6.867	0.000	0.145
TOTAL BORROWING		10.774	1.960	2.892
DEFERRED TAX LIABILITIES		0.000	0.000	0.004
TOTAL		13.938	4.276	4.470
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.258	0.321	0.403
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		2.200	1.583	1.522
DEFERREX TAX ASSETS		0.008	0.003	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2.548	1.036	3.844
	Sundry Debtors	11.213	11.519	1.607
	Cash & Bank Balances	0.258	0.086	0.056
	Other Current Assets	0.043	0.147	0.000
	Loans & Advances	13.764	13.824	3.343
Total Current Assets		27.826	26.612	8.850
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	11.280	20.866	4.459
	Other Current Liabilities	4.690	3.032	1.764
	Provisions	0.384	0.345	0.082
Total Current Liabilities		16.354	24.243	6.305
Net Current Assets		11.472	2.369	2.545
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		13.938	4.276	4.470

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2011	31.03.2010	31.03.2009
Total (Including Other Income)	57.726	55.300	13.183
Total Expenses	59.084	54.197	16.944
PROFIT BEFORE TAX	1.231	1.103	0.191
TAX	0.385	NA	0.060
PROFIT AFTER TAX	0.846	NA	0.131
Earnings Per Share (Rs.)	160.00	NA	25.00

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.47	NA	0.99
Return on Total Assets (PBT/Total Assets}	(%)	4.38	4.10	2.06
Return on Investment (ROI) (PBT/Networth)		0.39	0.48	0.12
Debt Equity Ratio (Total Liability/Networth)		8.57	11.31	5.84
Current Ratio (Current Asset/Current Liability)		1.70	1.10	1.40

LOCAL AGENCY FURTHER INFORMATION

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	No
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of contact person	Yes
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	Yes
Details of sister concerns	No
Major Suppliers	Yes
Major Customers	Yes
Payment Terms	Yes
Export / Import Details [If Applicable]	Yes
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes

FINANCIAL RESULTS:

During the year, the company recorded turnover of Rs.57.700 Millions with a net profit of Rs.1.231 Millions before depreciation and taxation. The directors are hopeful of further increase in the turnover next year with higher margins.

Fixed Assets:

• Computer
• Generator
• Motor Vehicles
• Furniture and Fixtures

AS PER WEBSITE DETAILS:

PROFILE

Subject Group is amongst the India's leading manufacturers and exporters of wide range of water purification systems, ro water purification systems, industrial water purification systems effluent treatment plants, membrane systems and components. The company has also close association with Multinational Corporation like Hydranautics (USA) for Water and Waste water treatment plants and Dehydrators (USA) for Ethanol projects. Over a period of time, the company has become one-stop-shop for all the needs related to water purification systems and effluent treatment plant. The product profile fulfills the varied requirements of industrial, commercial and residential needs. All these products are in conformation with international quality standards, consequently resulting into cost-saving and down time minimization.

Subject Group is Serving industry verticals for over 2 decades, and has strengthened its equity in the Indian and overseas markets by reaching out to innumerable multinational corporations and SMEs across industries. The company adopts aggressive marketing strategies and outstanding customer services. With sheer determination to grow, Subject seeks to diversify its product line and service ambit to exceed the customers' aspirations.

And with the passage of time, Membrane Group becomes the name to reckon with when it comes to quality and commitment. Subject has also won accolades from its customers for superior and consistent quality as well as competitive pricing and timeliness in delivery schedules. With customers delight as its prime objective, the company consistently incorporates the newest market trends and patterns to ensure value to the customers. A team of well qualified professionals, those having years of expertise, helps them in achieving the clients' satisfaction to the highest standards.

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 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.55.34
UK Pound	1	Rs.86.55
Euro	1	Rs.67.95

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.