MIRA INFORM REPORT

Report Date :

14.05.2012

IDENTIFICATION DETAILS

Name :	HARSHA ENGINEERS LIMITED
Registered Office :	Changodar, Sarkhej-Bavla Road, P.O. Changodar, Ahmedabad – 382 213, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.03.1986
Com. Reg. No.:	04-008520
Capital Investment / Paid-up Capital :	Rs.120.414 Millions
CIN No.: [Company Identification No.]	U29259GJ1986PLC008520
TAN No.: [Tax Deduction & Collection Account No.]	AHMH00485C
PAN No.: [Permanent Account No.]	AAACH4828C
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Roller and Ball Bearing Cages.
No. of Employees :	2000 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 5400000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established 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. Paresh Shah
Designation :	Finance Manager
Contact No.:	91-2717-391268
Date :	12.05.2012

LOCATIONS

Registered Office/ Factory 1 :	Changodar, Sarkhej-Bavla Road, P.O. Changodar, Ahmedabad – 382 213, Gujarat, India
Tel. No.:	91-2717-391200 / 251204 to 9 / 391263 / 391374
Fax No.:	91-2717-250259 / 391259
E-Mail :	marketing@harshaengineers.com harsha@harshaengineers.com harsha@vsnl.com adm.04038@sbi.co.in
Website :	www.harshaengineers.com
Area :	20000 sq. ft.
Location :	Owned
Factory 2 :	217, GVMM Industrial Estate, Odhav, Ahmedabad – 382 415, Gujarat, India
Area :	928.79 sq. mtrs
Factory 3 :	Changodar, Sarkhej-Bavla Road, P. O. Changodar, District Ahmedabad – 382 210, Gujarat, India
Area :	24807 sq. mtrs
Factory 4:	Moraiya Farm, Sarkhej-Bavla Road, Moraiya, P. O. Changodar, District Ahmedabad - 382 213, Gujarat, India
Area :	28000 sq. ft.
Location:	Owned

DIRECTORS

As on 20.06.2011

Name :	Mr. Rajendra Shantilal Shah
Designation :	Managing Director
Address :	289 C, Manekbaug Society, Behind Manekbaug Hall, Ambawadi, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	01.02.1948
Qualification :	B. E. (Mech.)
Experience :	39 Years
Date of Appointment :	04.03.1986
DIN No. :	00061922
Name :	Mr. Harishbhai Ranjit Rangwala
Designation :	Joint Managing Director
Address :	10, Nishant Bungalow, Satellite Road, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	01.08.1948
Qualification :	B. E. (Mech.)
Experience :	39 Years
Date of Appointment :	04.03.1986
DIN No. :	00278062
Name :	Mr. Pilak Rajendra Shah
Designation :	Whole Time Director
Address :	289-C, Manekbaug Society, Ambawadi, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	18.12.1981
Date of Appointment :	02.02.2009
DIN No. :	00407960
Name :	Mr. Vishal H. Rangwala
Designation :	Whole Time Director
Address :	10, Nishant II, 132 Feet Ring Road, Satellite Road, Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	27.11.1977
Date of Appointment :	02.02.2009
DIN No. :	02452416
Name :	Mr. Dhirajlal Chunilal Bhatt
Designation :	Director
Address :	5, Nishant Bunglows, Satellite Road, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	05.08.1925
Date of Appointment :	02.02.1987
DIN No. :	01231828
Name :	Mr. Jitendra Ujamshi Mamtora
Designation :	Director
Address :	95, Basant Nahar Bunglow, Bopal, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	25.04.1948
Qualification :	B. E. (Ele.)
Date of Appointment :	02.02.1987
DIN No. :	00139911
Name :	Mr. Munjal H. Rangwala
Designation :	Whole Time Director
Address :	10, Nishant II, 132 Feet Ring Road, Satellite Road, Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	26.09.1981
Date of Appointment :	01.04.2010
DIN No. :	03033699

KEY EXECUTIVES

Name :	Mr. Amit K. Patel
Designation :	Company Secretary
Address :	A/ 19, Pulin Park – 1, Naroda, Ahmedabad, Gujarat, India
Date of Birth/Age :	17.05.1977
Date of Appointment :	01.09.2008
Pan No.:	ANNPP5438M
Name :	Mr. Paresh Shah
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 20.06.2011

Names of Shareholders	No. of Shares
Rajendra Shantilal Shah	1802700
Nirmala R. Shah	1800000
Pilak Rajendra Shah	1200000
Krina R. Shah	300000
Hetal B Ukani Jointly with Nirmala R. Shah	300000
Mily R. Shah	300000
Harishbhai Ranjit Rangwala	1800000
Charusheela H Rangwala	1800000
Munjal H. Rangwala	1200000
Vaishali P Shah	300000
Vishal H. Rangwala	840000
Tanvi V Rangwala	360000
Dhirajlal C. Bhatt	36000
Harishbhai Ranjit Rangwala jointly with Charusheela Rangwala	2700
Total	12041400

As on 20.06.2011

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

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Roller and Ball Bearing Cages.

Products :

PRODUCT DESCRIPTION	ITC NO.
Ball or Roller Bearing Cages	848299
Bearing Housing	848299
Taper Roller Bearing Cages	848299

Exports :

Products :

Roller and Ball Bearing Cages

Countries :

· China

· Italy

· US

· Germany

· Europe

Imports :

Products :

Spare Parts

Countries :

· Japan

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Suppliers :

· Ahmedabad Strips Limited

Customers :

Wholesaler and Retailers

· National Engineering Company

No. of Employees :

2000 [Approximately]

Bankers :

· State Bank of India, Overseas Branch, Navjivan Trust Building, Ahmedabad - 380014, Gujarat, India

· ICICI Bank Limited, JMC House, Opposite Piramal Garden, Ahmedabad, Gujarat, India

· Citi Bank N.A., Rembrandt, C.G. Road, Ground Floor, Near Panchvati Circle, Ahmedabad – 380006, Gujarat, India

Facilities :

SECURED LOAN	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loans banks	132.458	106.920
Foreign currency loans banks	41.808	70.156
Working capital loans banks	438.393	98.097
Total	612.659	275.173
UNSECURED LOAN
Loans directors	188.500	116.950
Public deposits	38.375	30.000
Deposits related parties	130.865	130.315
Total	357.740	277.265

Banking Relations :	--
Auditors :
Name :	Chetan P. Shah and Company Chartered Accountants
Address :	403, Ashwamegh House, 5, Smruti Kunj Society, Choice Restaurant’s Lane, Navrangpura, Ahmedabad – 380 009, Gujarat, India
Pan No.:	ACBPS8919F
Subsidiaries :	·Harsha Engineers (India) Private Limited [U35303GJ2008PTC054503] ·Aastha Tools Private Limited [U29199GJ2002PTC041072] ·Harsha Abakus Solar Private Limited [U29307GJ2010PTC063233] ·Harsha Engineers Inc.

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12041400	Equity Shares	Rs.10/- each	Rs.120.414 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		120.414	120.414	120.414
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1252.835	1131.766	1074.933
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1373.249	1252.180	1195.347
LOAN FUNDS
1] Secured Loans		612.659	275.173	460.841
2] Unsecured Loans		357.740	277.265	217.708
TOTAL BORROWING		970.399	552.438	678.549
DEFERRED TAX LIABILITIES		84.890	82.539	72.370
TOTAL		2428.538	1887.157	1946.266
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		976.219	966.809	999.630
Capital work-in-progress		26.852	12.074	14.569
INVESTMENT		164.479	75.995	81.037
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	745.700	543.782	449.987
	Sundry Debtors	777.241	410.868	340.920
	Cash & Bank Balances	53.867	79.625	62.838
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	335.295	200.912	265.646
Total Current Assets		1912.103	1235.187	1119.391
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	309.250	215.439	119.769
	Other Current Liabilities	69.110	54.144	49.957
	Provisions	272.755	133.325	98.635
Total Current Liabilities		651.115	402.908	268.361
Net Current Assets		1260.988	832.279	851.030
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2428.538	1887.157	1946.266

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2852.155	1523.224	2295.332
		Other Income	77.511	7.876	92.723
		TOTAL (A)	2929.666	1531.100	2388.055
Less	EXPENSES
		Consumption Materials Changes Inventories	1702.259	833.096
		Manufacturing Services Cost	136.739	78.240	2030.677
		Employee Related Expenses	225.090	154.871
		Administrative Selling Other Expenses	299.653	136.436
		TOTAL (B)	2363.741	1202.643	2030.677
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		565.925	328.457	357.378
Less	FINANCIAL EXPENSES (D)		58.567	47.454	64.899
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		507.358	281.003	292.479
Less/ Add	DEPRECIATION/ AMORTISATION (F)		117.425	89.692	106.670
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		389.933	191.311	185.809
Less	TAX (H)		128.451	64.272	62.128
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		261.482	127.039	123.681
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		909.864	865.832	NA
Less	APPROPRIATIONS
		Transfer to General Reserve	26.200	12.800	30.000
		Proposed Dividend and Tax Thereon	140.413	70.207	30.103
		Dividend Tax	0.000	0.000	5.116
	BALANCE CARRIED TO THE B/S		1004.733	909.864	58.462
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1326.562	655.958	1680.357
	IMPORTS
		Raw Materials	35.560	14.567	22.480
		Capital Goods	12.280	24.901	46.193
	TOTAL IMPORTS		47.840	39.468	68.673
	Earnings / (Loss) Per Share (Rs.)		21.72	10.55	10.27

Particulars	31.03.2012
Sales Turnover [Approximately]	3300.000

Expected Sales (2012-13) : Rs.3500.000 Millions.

The above information has been parted by Mr. Paresh Shah.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	8.93	8.30	5.18
Net Profit Margin (PBT/Sales)	(%)	13.67	12.55	8.10
Return on Total Assets (PBT/Total Assets}	(%)	13.50	8.69	8.77
Return on Investment (ROI) (PBT/Networth)		0.28	0.15	0.16
Debt Equity Ratio (Total Liability/Networth)		1.18	0.76	0.79
Current Ratio (Current Asset/Current Liability)		2.94	3.07	4.17

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	309.250	215.439	119.769

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

REVIEW OF OPERATIONS:

During the year, the Company achieved gross sales turnover of Rs. 2983.397 millions compared to previous year figure of Rs. 1593.974 millions. The profit before depreciation and tax has increased to Rs. 507.358 millions from Rs. 281.003 millions. The net profit after tax has increased to Rs. 261.482 millions from Rs. 127.039 millions. At the end of the year, Company’s reserves stood at Rs. 1252.835 millions (Previous Year Rs. 1131.766 millions) and Book Value of Share stood at Rs. 114.04 per Share (Previous Year Rs. 103.99 per share).

SUBSIDIARY COMPANIES:

The Company has total five subsidiaries in India and abroad. Harsha Engineers (India) Private Limited (India), Harsha Engineering Components (Changshu) Company Limited (China), and Harsha Engineers Inc. (USA) are the wholly owned subsidiaries of the Company while Company has the majority stake in the Aastha Tools Private Limited (India) and Harsha Abakus Solar Private Limited (India).

CONTINGENT LIABILITIES NOT PROVIDED FOR:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
Letter of Credit / Letter of comfort and Bank Guarantee	109.278	3.891
Corporate guarantee on behalf of Aastha Tools Private Limited (Subsidiary Company) in favor of State Bank of India	0.000	7.500
Disputes pending under Excise Act	1.101	1.505
Custom duty benefits towards duty free imports under EPCG license scheme in respect of which export obligation are yet to be discharged	1.364	0.000
Total	111.743	12.896

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	80038607
Corporate identity number of the company	U29259GJ1986PLC008520
Name of the company	HARSHA ENGINEERS LIMITED
Address of the registered office or of the principal place of business in India of the company	Changodar, Sarkhej-Bavla Road, P.O. Changodar, Ahmedabad – 382 213, Gujarat, India
Type of charge	Movable Property [not being pledge] Floating Charge
Particular of charge holder	Citi Bank N.A., Rembrandt, C.G. Road, Ground Floor, Near Panchvati Circle, Ahmedabad – 380006, Gujarat, India
Email:	harsha.sarin@citi.com
Nature of description of the instrument creating or modifying the charge	Deed of modification.
Date of instrument Creating the charge	24.11.2011
Amount secured by the charge	Rs.230.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As may be stipulated by the bank from time to time. Terms of Repayment On Demand. Margin As may be stipulated by the bank from time to time. Extent and Operation of the charge First pari passu charge on the current assets (Including stock and book debts) of the borrower both present and future ranking pari passu with the charge created or to be created in favour of the State Bank of India.
Short particulars of the property charged	First pari passu charge on the current assets (Including stock and book debts) of the borrower both present and future ranking pari passu with the charge created or to be created in favour of the SBI.
Date of latest modification prior to the present modification	03.09.2007
Particulars of the present modification	The credit facilities enhanced to Rs. 230.000 Millions and has offered security for the repayment of the entire loan amount of Rs. 230.000 Millions by way of first pari passu charge on the current assets of the Company, both present and future ranking pari passu with the charge created or to be created in favour of the State Bank of India.

FIXED ASSETS

· Land

· Factory Building

· Factory Building (Leasehold)

· Administrative Building

· Furniture and Fittings

· Plant and Machinery

· Plant and Machinery (Leasehold)

· Office Equipments

· Electrical Fittings

· Vehicles

· Tools and Equipments

· Computer and Peripherals

· Wind Mill

· AC Plant and ACs

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.53.64
UK Pound	1	Rs.86.42
Euro	1	Rs.69.30

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	4
--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		53

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.