MIRA INFORM REPORT

Report Date :

12.11.2012

IDENTIFICATION DETAILS

Name :	WINCO VALVES PRIVATE LIMITED
Registered Office :	D/402, Amrapali, Apartment, Sankur Road, Naranpura, Ahmedabad – 380013, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.12.1996
Com. Reg. No.:	04-031395
Capital Investment / Paid-up Capital :	Rs. 3.500 millions
CIN No.: [Company Identification No.]	U29120GJ1996PTC031395
TAN No.: [Tax Deduction & Collection Account No.]	AHMW00019F
PAN No.: [Permanent Account No.]	AAACW1932A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Fire Fighting Hydrant Valves, Fire Hose Delivery Coupling, etc.
No. of Employees :	35 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 54000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The latest financials of the subject is not made available. As per previous year’s, there appear huge external borrowings recorded by the company and the profitability also appeared low. However, trade relations are reported as fair. Business is active. Payment terms are unknown. The company can be considered for business dealings with some caution.

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. Yash
Designation :	Director
Contact No.:	91-9824045170
Date :	10.11.2012

LOCATIONS

Registered Office :	D/402, Amrapali, Apartment, Sankur Road, Naranpura, Ahmedabad – 380013, Gujarat, India
Tel. No.:	91-2764-286093
Mobile No.:	91-9824045170 (Mr. Yash Majithia)
Fax No.:	91-2764-286092
E-Mail :	yash@wincofire.in pkmoffice@gmail.com
Website :	http://www.wincofire.in
Area :	500 sq. ft.
Location :	Owned
Factory :	Plot No. 542, Rakanpur, Taluka Kalol, Gandhinagar–382721, Gujarat, India
Area :	4000 Sq. yards
Location :	Owned

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Hemendra Harakhchand Mehta
Designation :	Director
Address :	D/402, Amrapali, Apartment, Sankur Road, Naranpura, Ahmedabad – 380013, Gujarat, India
Date of Birth/Age :	03.06.1957
Date of Appointment :	26.12.1996
DIN No.:	00147174
Name :	Mr. Prakashbhai Jivandas Majithia
Designation :	Director
Address :	D/402, Amrapali, Apartment, Sankur Road, Naranpura, Ahmedabad – 380013, Gujarat, India
Date of Birth/Age :	25.10.1954
Date of Appointment :	26.12.1996
DIN No.:	00147091
Name :	Mr. Yash Prakash Majithia
Designation :	Director
Address :	5, Hasmukhbhai Bunglow, Near Rajpath Club, Ahmedabad-380054, Gujarat, India
Date of Birth/Age :	27.03.1981
Date of Appointment :	01.10.2009
DIN No.:	02946705
Name :	Mr. Mehta Bhavik Hemendrabhai
Designation :	Director
Address :	D/402, Amrapali, Apartment, Sankur Road, Naranpura, Ahmedabad – 380013, Gujarat, India
Date of Birth/Age :	12.04.1985
Date of Appointment :	01.10.2009
DIN No.:	02946763

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Prakash Majithia	49649
Hemendra Mehta	99549
Shohaben Mehta	20100
Taraben Majithia	200
Yash Majithia	120150
Rukmaniben Mehta	100
Hemendra Mehta (HUF)	1
Bhavik Mehta	50250
Prakash Majithia (HUF)	1
Poonam Yash Majithia	5000
Sweta Bhavik Mehta	5000
Total	350000

AS ON 30.09.2011

Equity Shares Break Up	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Fire Fighting Hydrant Valves, Fire Hose Delivery Coupling, etc.
Products :	Couplings Nozzles and Valves
Exports :
Products :	Fire Fighting Hydrant Valves Fire Hose Delivery Coupling
Countries :	Kuwait Yaman
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

GENERAL INFORMATION

Supplier:

B.R. Metal Private Limited, Ahmedabad

Customers :

End Users

· Nitin Fire, Mumbai

No. of Employees :

35 (Approximately)

Bankers :

· Bank of Baroda, S.P. Colony, Naranpura, Ahmedabad-380013, Gujarat, India

· HDFC Bank Limited, Delhi

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Bank of Baroda
Loan against Stock Hypothecation and Book Debts – a/c No. 03410500001221	8.520	10.467
Term Loan – a/c No. 03410600001842	2.196	3.342
Term Loan – a/c No. 03410400000745	0.803	1.230
Term Loan – a/c No. 03410800000012	2.866	1.567
From Financial Institution
HDFC Bank Polo Car Loan	0.479	0.000
HDFC Bank Honda Civic Loan	0.000	0.362
Total	14.864	16.968
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
From Directors	0.957	0.507
From Shareholders	8.875	6.600
Total	9.832	7.107

Notes:

1. Secured by pledge of directors and their relatives personal securities

2. Cash credit is secured by hypothecation of Stocks, Book Debts and all tangible movable properties

3. Vehicles loan is secured by way of hypothecation of vehicles

Banking Relations :	--
Auditors :
Name :	P.K. Modi and Company Chartered Accountant
Address :	A-411, Sfal Pegasus, Anand Nagar Road, Near Prahalad Nagar Garden, Satellite, Ahmedabad-380051, Gujarat, India
Tel. No.:	91-79-40065204
Fax No.:	91-79-40067203
E-Mail :	pkmoffice@gmail.com pkmadvisory@yahoo.co.uk
PAN No.:	AAPPM5000R

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
950000	Equity Shares	Rs.10/- each	Rs. 9.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
350000	Equity Shares	Rs.10/- each	Rs. 3.500 Millions
	560000 Partly Paid up Equity Shares	Rs. 2.5/- each	Rs. 1.400 Millions
Less	Forfeited During the Year		Rs. 1.400 Millions
	Total		Rs. 3.500 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		3.500	4.500	4.500
2] Share Application Money		0.000	2.000	0.000
3] Reserves & Surplus		10.086	6.553	5.981
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		13.586	13.053	10.481
LOAN FUNDS
1] Secured Loans		14.864	16.968	12.756
2] Unsecured Loans		9.832	7.107	9.327
TOTAL BORROWING		24.696	24.075	22.083
DEFERRED TAX LIABILITIES		0.117	0.189	0.240
TOTAL		38.399	37.317	32.804
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.465	11.099	11.484
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.030	0.030	0.030
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	10.803	8.500	8.192
	Sundry Debtors	22.789	23.946	18.783
	Cash & Bank Balances	3.149	2.008	1.257
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	4.269	3.387	2.633
Total Current Assets		41.010	37.841	30.865
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	12.825	10.909	9.243
	Other Current Liabilities	0.665	0.415	0.232
	Provisions	0.743	0.443	0.227
Total Current Liabilities		14.233	11.767	9.702
Net Current Assets		26.777	26.074	21.163
MISCELLANEOUS EXPENSES		0.127	0.114	0.127
TOTAL		38.399	37.317	32.804

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	92.420	82.829	49.505
		Other Income	0.153	0.076	0.115
		TOTAL (A)	92.573	82.905	49.620
Less	EXPENSES
		Purchase	78.762	71.242	43.508
		Manufacturing Expenses	4.020	1.852	1.101
		Administrative Expenses	5.091	3.912	2.501
		Selling and Distribution Expenses	1.136	1.207	0.344
		Preliminary Expenses W/Off	0.017	0.013	0.015
		Increase (Decrease) in Stock	(2.303)	(0.307)	(2.938)
		TOTAL (B)	86.723	77.919	44.531
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5.850	4.986	5.089
Less	FINANCIAL EXPENSES (D)		3.130	2.415	2.794
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.720	2.571	2.295
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.959	1.791	1.827
	PROFIT BEFORE TAX (E-F) (G)		0.761	0.780	0.468
Less	TAX (H)		0.227	0.209	0.117
	PROFIT AFTER TAX (G-H) (I)		0.534	0.571	0.351
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.000	0.027	0.000
	TOTAL EARNINGS		0.000	0.027	0.000
	Earnings Per Share (Rs.)		1.52	0.76	0.78

Particulars	31.03.2012
Sales Turnover (Approximately)	95.000

Expected Sales (2012-2013) : Rs. 100.000 Millions

The above information has been parted by Mr. Yash Majithia

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.58	0.69	0.71
Net Profit Margin (PBT/Sales)	(%)	0.82	0.94	0.95
Return on Total Assets (PBT/Total Assets}	(%)	1.45	1.59	1.11
Return on Investment (ROI) (PBT/Networth)		0.06	0.06	0.04
Debt Equity Ratio (Total Liability/Networth)		2.87	2.75	3.03
Current Ratio (Current Asset/Current Liability)		2.88	3.22	3.18

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 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 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]	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

REVIEW OF PERFORMANCE

During the year, the performance of the company was quite satisfactorily. The total sales and Operating income during the year has increased to Rs. 92.420 millions as compared to Rs. 82.829 millions during the previous year. The Profit after tax (Excluding Differed fax) during the year has decreased to Rs. 0.460 million as compared to 0.520 million during the previous year due to higher interest cost and depreciation.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10115466
Corporate identity number of the company	U29120GJ1996PTC031395
Name of the company	WINCO VALVES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	D/402, Amrapali, Apartment, Sankur Road, Naranpura, Ahmedabad – 380013, Gujarat, India
Type of charge	Immovable Property
Particular of charge holder	Bank of Baroda Branch S.P. Colony, Ahmedabad, Gujarat, India
Nature of description of the instrument creating or modifying the charge	Extension of mortgage and legal mortgage deed as on 26.11.2009. Charge created on 30/07/2008 is to be further extended from Rs. 15.000 Millions to Rs. 21.515 Millions.
Date of instrument Creating the charge	26.11.2009
Amount secured by the charge	Rs. 21.515 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest : Cash credit: 11.50% p.a. With monthly rest, term loan : 12.00% p.a. With monthly rest, letter of credit : as per RBI rules and bank's rule from time to time, bank guarantee: as per extent guidelines. Terms of Repayment : Cash credit : 12 months - subject to annual review, Letter of credit : 12 months - subject to annual review, Term loan: the loan to be repaid in 60 monthly equal installments each. Interest to be paid separately as and when becomes due. Repayment already started from October, 2008. Margin : Cash credit (a) stocks of RM and FG 25%, (b) book debts 25%, debtors for more than 90 days will not be considered for calculating drawing power. Letter of credit Nil. Term loan: 30% on plant and machinery, 43% in erection / electrification. Bank guarantee: 25% in the form of F.D.R. Extent and Operation of the charge : Bank of Baroda has first and exclusive charge over the property charged. Charge created on 30.07.2008 is to be further extended from Rs. 15.000 Millions to Rs. 21.515 Millions.
Short particulars of the property charged	As Per Attachment-1 (Extension of mortgage And Legal Mortgage Dated 26.11.2009)
Date of latest modification prior to the present modification	NA
Particulars of the present modification	Total limits revised from Rs. 15.000 Millions to Rs. 21.515 Millions

TRADE REFERENCE:

· Kidde India Limited

FIXED ASSETS:

• Factory Land
• Factory Land Development
• Factory Building,
• Plant and Machinery
• Furniture and Fixtures
• Vehicles Computers
• Website Designning and Software

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.54.34
UK Pound	1	Rs.86.97
Euro	1	Rs.69.43

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		33

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.