MIRA INFORM REPORT

Report Date :

11.05.2012

IDENTIFICATION DETAILS

Name :	NEWARK ENGINEERS PRIVATE LIMITED
Registered Office :	S-5, Pramukh Swami Park, Atladra Padra Road, Opp. Sterling Flats, Vadidara – 390012, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.03.2007
Com. Reg. No.:	04-050402
Capital Investment / Paid-up Capital :	Rs. 0.200 Million
CIN No.: [Company Identification No.]	U29100GJ2007PTC050402
TAN No.: [Tax Deduction & Collection Account No.]	BRDN01260A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Trader and Exporters of Industrial Fasteners.
No. of Employees :	30 (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 4000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company is progressing. Trade relations are reported as fair. Business is active. Payments are reported to be 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

Name :	Mr. Vicky Shah
Designation :	Director
Contact No.:	91-9824030687
Date :	21.04.2012

LOCATIONS

Registered Office :	S-5, Pramukh Swami Park, Atladra Padra Road, Opp. Sterling Flats, Vadidara – 390012, Gujarat, India
Tel. No.:	91-265-6542211
Mobile No.:	91-9824030687 (Mr. Nikhil)
Fax No.:	Not Available
E-Mail :	newark.engineers@hotmail.com viky.shsh@hotmail.com
Website :	http://www.newarkengineers.in
Location :	Owned
Corporate Office:	323/A/1, GIDC Industrial Estate, Opposite Lucky Restaurant, Vadidara – 390010, Gujarat, India
Tel. No.:	91-265-6533844/2635405
Fax No.:	91-265-2635405
Factory:	200/A/1, GIDC Industrial Estate, Gujarat, India

DIRECTORS

As on 29.07.2011

Name :

Mr. Viky Nikhilbhai Shah

Designation :

Director

Address :

S-5, Pramukh Swami Park, Atladra-Padra Road, opp. Sterling flats, Vadodara - 390012, Gujarat, India

Date of Birth/Age :

23.05.1982

Date of Appointment :

30.03.2007

DIN No.:

01387540

Name :

Mr. Nikhil Pravinchandra Shah

Designation :

Director

Address :

S-5, Pramukh Swami Park, Atladra-Padra Road, opp. Sterling flats, Vadodara - 390012, Gujarat, India

Date of Birth/Age :

30.06.1956

Date of Appointment :

30.03.2007

DIN No.:

01387545

Name :

Mrs. Beenaben Nikhilbhai Shah

Designation :

Director

Address :

A-25, Citizen Socien, Nr. Atma Jyotl Ashram, Ellora Park, Vadodara - 390007, Gujarat, India

Date of Birth/Age :

16.11.1984

Date of Appointment :

30.03.2007

DIN No.:

01387552

Name :

Mr. Harsil Nikhilbhai Shah

Designation :

Director

Address :

S-5, Pramukh Swami Park, Atladra-Padra Road, opp. Sterling flats, Vadodara - 390012, Gujarat, India

Date of Birth/Age :

16.11.1984

Date of Appointment :

30.03.2007

DIN No.:

01387554

Name :

Mr. Bharatbhai Mulibhai Modi

Designation :

Director

Address :

304-0, Meha Flats, Gadapura, Near Lions Hall, Race Course, Vadodara - 390007, Gujarat, India

Date of Birth/Age :

16.10.1947

Date of Appointment :

12.01.2008

DIN No.:

02489096

Name :

Mr. Vijay Martadeshwar Pandya

Designation :

Director

Address :

A-66, Pramukhswami Vlhar Society, Old Padra Road, Vadodara - 390020, Gujarat, India

Date of Birth/Age :

20.11.1974

Date of Appointment :

01.08.2010

DIN No.:

03175349

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	U29100GJ2007PTC050402	NEWARK ENGINEERS PRIVATE LIMITED	Director	23/09/2010	1/08/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.07.2011

Names of Shareholders	No. of Shares
Viky Nikhilbhai Shah	8000
Beenaben Nikhilbhai Shah	4000
Harsil Nikhilbhai Shah	4000
Nikhil Pravinchandra Shah	4000
Total	20000

Equity Share Break up (Percentage of Total Equity)

As on 29.07.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Trader and Exporters of Industrial Fasteners.
Product:	Machinery Parts and Fastener Items and Sand Blasting, Matalising and Painting of Civil Structures.
Exports :
Products :	Industrial Fasteners
Countries :	UK, Europe, US, South Africa
Imports :
Products :	Raw Material
Countries :	China, Taiwan
Terms :
Selling :	L/C
Purchasing :	L/C

GENERAL INFORMATION

Customers :

· Suzlon

· Alstamp

· Voltamp

No. of Employees :

30 (Approximately)

Bankers :

Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227,D, Nariman Point, Mumbai – 400021, Maharashtra, India

Facilities :

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
HDFC Bank (Secured by the personal property of Directors)	0.000	0.398
Kotak Mahindra Bank Cash Credit (Secured by the personal property of Directors)	5.792	0.000
Total	5.792	0.398
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
From Directors	0.192	0.038
From Friends and Relatives	0.250	0.116
From Financial Institution	0.656	1.294
Total	1.098	1.448
C C

Banking Relations :	--
Auditor 1 :
Name :	Viral K Shah and Associates Chartered Accountants
Address :	104, Antrix Complex, Opp. World Trade Center, Sayajigunj, Vadodara – 390005, Gujarat, India
PAN.:	AFGPS7070F
Auditor 2 :	K B Shah and Associates Chartered Accountants

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
20000	Equity Shares	Rs.10/- each	Rs.0.200 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000	Equity Shares	Rs.10/- each	Rs.0.200 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		0.200	0.200	0.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.883	0.218	0.045
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1.083	0.418	0.245
LOAN FUNDS
1] Secured Loans		5.792	3.977	0.000
2] Unsecured Loans		1.098	1.448	2.273
TOTAL BORROWING		6.890	5.425	2.273
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		7.973	5.843	2.518
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.623	0.542	0.102
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.002	0.003	0.004
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.361	4.041	0.432
	Sundry Debtors	9.969	4.428	2.209
	Cash & Bank Balances	0.551	0.225	0.240
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.476	0.249	0.112
Total Current Assets		16.357	8.943	2.993
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.000	0.000
	Other Current Liabilities	9.357	3.427	0.398
	Provisions	0.652	0.224	0.191
Total Current Liabilities		10.009	3.651	0.589
Net Current Assets		6.348	5.292	2.404
MISCELLANEOUS EXPENSES		0.000	0.006	0.008
TOTAL		7.973	5.843	2.518

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	30.930	11.777	9.427
		Other Income	0.002	0.002	0.058
		TOTAL (A)	30.932	11.779	9.485
Less	EXPENSES
		Material Consumed	16.763	8.029	7.181
		Operational Expenses	5.383	4.270	0.662
		Employee Remuneration and Benefits	1.377	1.012	0.787
		Administrative Expenses	1.822	0.649	0.520
		Preliminary Expense Written off	0.006	0.003	0.003
		Increase/(Decrease in stock)	3.210	(3.210)	0.000
		TOTAL (B)	28.561	10.753	9.153
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.371	1.026	0.332
Less	FINANCIAL EXPENSES (D)		1.106	0.689	0.168
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.265	0.337	0.164
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.250	0.085	0.022
	PROFIT BEFORE TAX (E-F) (G)		1.015	0.252	0.142
Less	TAX (I)		0.316	0.078	0.053
	PROFIT AFTER TAX (G-I) (J)		0.699	0.174	0.089
Less	PRIOR PERIOD EXPENSES		0.048	0.000	0.000
Add	EXCESS PROVISION FOR PREVIOUS YEAR		0.014	0.000	0.000
	BALANCE CARRIED TO THE B/S		0.665	0.174	0.089
	Earnings Per Share (Rs.)		33.24	8.69	4.45

Particulars	31.03.2012
Sales Turnover (Approximately)	39.500

Expected Sales ( 2012.2013 ) : Rs. 50.000 Millions

The above information has been parted by Mr. Vicky - Director

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.26	1.48	1.49
Net Profit Margin (PBT/Sales)	(%)	3.28	2.14	1.51
Return on Total Assets (PBT/Total Assets}	(%)	6.20	2.81	4.47
Return on Investment (ROI) (PBT/Networth)		0.93	0.60	0.58
Debt Equity Ratio (Total Liability/Networth)		9.24	8.73	9.81
Current Ratio (Current Asset/Current Liability)		1.63	2.45	1.24

LOCAL AGENCY FURTHER INFORMATION

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	No
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	No
17) Major suppliers	No
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
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

FINANCIAL RESULTS

They are happy to report excellent working results for the year. After Providing for Depreciation, the Profit for the year is 1.015 millions. Both Turnover and Profit are the highest achieved so far any year from the inception of the Company. This has been possible because of efficient management of various functions leading to increase in productivity and volume of operations. The Directors consider these results to be satisfactory and they are working out a plan of action to reorient the operations of the company by diversifying into thrust areas and they are hopeful that the current year would witness still better results.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U29100GJ2007PTC050402
Name of the company	NEWARK ENGINEERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	S-5, Pramukh Swami Park, Atladra Padra Road, Opp. Sterling Flats, Vadidara – 390012, Gujarat, India Email: viky.shah@hotmail.com
This form is for	Creation of charge
Type of charge	· Book debts · Movable property (not being pledge)
Particular of charge holder	Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227,D, Nariman Point, Mumbai – 400021, Maharashtra, India Email: john.fernandes@kotak.com
Nature of instrument creating charge	Deed of Hypothecation.
Date of instrument Creating the charge	29.3.2011
Amount secured by the charge	Rs. 9.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As may be specified by the Bank from time to time. Terms of Repayment As may be specified by the Bank from time to time. Margin As may be specified by the Bank from time to time. Extent and Operation of the charge First and exclusive charge by way of Hypothecation of Current assets and Movable fixed assets present and future of the Borrower, in favour of Kotak Mahindra bank as security for repayment of financial facilities granted by the Bank to the Borrower. Others
Short particulars of the property or asset(s) charged (including complete address and location of the property)	The whole of Borrower's Current assets and Movable fixed assets both present and future as described in Schedule to the Deed of Hypothecation.

TRADE REFERENCES

· Suzlon

· Alstamp

· Voltamp

FIXED ASSETS

· Air Conditioner

· Car

· Computer

· Electrical Installation

· Furniture and Fixture

· Mobile

· Office Equipment

· Plant and Machinery

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.53.33
UK Pound	1	Rs.86.10
Euro	1	Rs.69.06

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	KVT

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	YES
--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.