MIRA INFORM REPORT

Report Date :

28.09.2012

IDENTIFICATION DETAILS

Name :	ATAM VALVES PRIVATE LIMITED
Registered Office :	Plot No.1050-51 Industrial Area, Jalandhar - 144 001, Punjab
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.09.1985
Com. Reg. No.:	16-6476
Capital Investment / Paid-up Capital :	Rs. 8.000 Millions
CIN No.: [Company Identification No.]	U27109PB1985PTC006476
IEC No.:	3003013572
TIN No.:	03101017043
TAN No.: [Tax Deduction & Collection Account No.]	JLDA00576C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporter of Valves, Cocks and Boiler Mountings
No. of Employees :	300 (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 59000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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. Amit Jain
Designation :	Director
Contact No.:	91-9815185311
Date :	21.09.2012

LOCATIONS

Registered Office / Factory :	Plot No.1050-51 Industrial Area, Jalandhar-144001, Punjab, India
Tel. No.:	91-181-5019611//50631111/5019615/2490112/2490113/2490114
Mobile No.:	91-9815185311 (Mr. Amit Jain)
Fax No.:	91-181-2290611
E-Mail :	atamfebi@jla.vsnl.net.in jca_25375@yahoo.co.in amit@atamfebi.com atamfebi@atamfebi.com ca.corporate@gmail.com
Website :	http://www.atamfebi.com
Area :	1.5 Acres
Location :	Owned
Branch Offices :	Sarkhej, Ahmedabad, Gujarat, India.

DIRECTORS

As on 30.09.2011

Name :

Mrs. Vimal Prakash Jain

Designation :

Managing Director

Address :

95, S.U.S Nagar, Jalandhar-144001, Punjab, India

Date of Birth/Age :

18.03.1948

Date of Appointment :

01.08.2011

DIN No.:

01063027

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	U27109PB1985PTC006476	ATAM VALVES PRIVATE LIMITED	Director	1/8/2011	30/09/1995	-	Active	NO
2	U29120PB1999PTC022367	ATAM AND FEBI VALVES PRIVATE LIMITED	Director	19/03/1999	19/03/1999	-	Active	NO

Name :

Mr. Amit Jain

Designation :

Director

Address :

95, S.U.S Nagar, Jalandhar-144001, Punjab, India

Date of Birth/Age :

06.10.1977

Date of Appointment :

06.10.1998

DIN No.:

01063087

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	U27109PB1985PTC006476	ATAM VALVES PRIVATE LIMITED	Managing director	1/8/2011	6/10/1998	-	Active	NO
2	U29120PB1999PTC022367	ATAM AND FEBI VALVES PRIVATE LIMITED	Managing director	19/03/1999	19/03/1999	-	Active	NO
3	U31103PB1993PTC014058	FEBI VALVES PRIVATE LIMITED	Managing director	28/05/1999	28/05/1999	-	Active	NO

Name :

Mrs. Pramila Jain

Designation :

Director

Address :

95, S.U.S Nagar, Jalandhar-144001, Punjab, India

Date of Birth/Age :

10.04.1978

Date of Appointment :

01.04.2004

DIN No.:

01063136

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
A.K. Malhotra	1000
S.K. Malhotra	800
Kailash Rani	800
Amandeep	1000
Savita Rani	1000
Rajni Bala	1000
Kavita Rani	1000
Suruchi Bala	1000
Anu Bala	1000
Ripty Tuteja	1000
Manisha Malhotra	400
Total	10000

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers and Exporter of Valves, Cocks and Boiler Mountings
Products :	Brass Bronze Cast Iron Cast Steel Forge Steel Investment Casting S. S. Valves Cocks Boiler’s Mounting
Exports :
Products :	Valves, Cocks and Boiler Mountings
Countries :	South Africa Australia America Australia Middle East
Imports :
Products :	Raw Material
Countries :	· America · China
Terms :
Selling :	Cash / Credit
Purchasing :	Cash / Credit

GENERAL INFORMATION

Suppliers :

Satish Metal Company

Customers :

Wholesalers and Retailers

· Thermax Limited

No. of Employees :

300 (Approximately)

Bankers :

• State Bank of India, Main Branch, Civil Lines, Jalandhar-144001, Punjab, India
• HDFC Bank Limited, HDFC Bank House Senapati Bapat, Marg, Lower Parel West, Mumbai-400013, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	31.03.2011	31.03.2010
State Bank of India – (E.P.C.) (Secured against hypothecation of goods)	0.000	2.378
State Bank of India (C/C) (Secured against hypothecation of stock)	0.000	16.834
State Bank of India (B/D) (Secured against hypothecation of debtors)	0.000	7.006
State Bank of India (T/L) (Secured against hypothecation of plant and machinery)	0.000	0.000
State Bank of India SME (Secured against hypothecation of Stock)	0.000	2.496
Small Industries Development Bank of India (Secured against hypothecation of plant and machinery)	0.771	1.535
HDFC CC A/C	28.842	0.000
Small Industries Development Bank of India (Secured against hypothecation of plant and machinery)	0.538	1.455
HDFC Bank Limited (Secured against hypothecation of Property)	4.139	0.000
HDFC Bank Limited (Secured against hypothecation of Car)	0.477	1.523
Total	34.767	33.227
Unsecured Loan	31.03.2011	31.03.210
Director	8.270	19.091
Share Holder	3.241	4.864
Total	11.511	23.955

Banking Relations :	--
Auditors :
Name :	Y K Sud and Company Chartered Accountants
Address :	Durga Niwas, Opposite Friends Cinema, Civil Lines, Jalandhar-144001, Punjab, India
Tel. No.:	91-181-2220220 / 2224174
Fax No.:	91-181-2230214
PAN No. :	ABNPS7871D
Memberships :	EEPC
Sister Concern :	Amco Industries

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
80000	Equity Shares	Rs.100/- each	Rs. 8.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
80000	Equity Shares	Rs.100/- each	Rs. 8.000 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		8.000	8.000	8.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6.985	3.403	2.097
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		14.985	11.403	10.097
LOAN FUNDS
1] Secured Loans		34.767	33.227	37.693
2] Unsecured Loans		11.511	23.955	30.112
TOTAL BORROWING		46.278	57.182	67.805
DEFERRED TAX LIABILITIES		0.098	0.454	0.279
TOTAL		61.361	69.039	78.181
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		17.271	21.237	23.887
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.361
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	20.628	24.109	36.761
	Sundry Debtors	32.626	29.844	21.901
	Cash & Bank Balances	0.820	1.103	0.809
	Other Current Assets	0.000	0.000	0.295
	Loans & Advances	3.789	4.203	2.110
Total Current Assets		57.863	59.259	61.876
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.104	5.121	2.925
	Other Current Liabilities	8.165	3.008	4.155
	Provisions	1.504	3.328	0.863
Total Current Liabilities		13.773	11.457	7.943
Net Current Assets		44.090	47.802	53.933
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		61.361	69.039	78.181

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
SALES
	Income	135.284	119.588	110.846
	Other Income	1.711	3.893	NA
	TOTAL	136.995	123.481	NA
EXPENSES
	Office Expenses
	Administrative Expenses	132.198	121.142	27.359
	Advertising Expenses
	TOTAL	132.198	121.142	27.359
PROFIT BEFORE TAX		4.737	2.339	NA
TAX		1.503	1.084	NA
PROFIT AFTER TAX		3.234	1.255	2.220
Earnings Per Share (Rs.)		40.43	0.02	27.75

Particulars	31.03.2012
Sales Turnover (Approximately)	350.000
	AS they have launch more new products

Expected Sales ( 2012-13) : Rs.500.000 Millions

The above information has been parted by They have larch more new products

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.36	1.02	NA
Net Profit Margin (PBT/Sales)	(%)	3.50	1.96	NA
Return on Total Assets (PBT/Total Assets}	(%)	6.30	2.91	NA
Return on Investment (ROI) (PBT/Networth)		0.32	0.21	NA
Debt Equity Ratio (Total Liability/Networth)		4.00	6.02	7.50
Current Ratio (Current Asset/Current Liability)		4.20	5.17	7.79

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%	Yes
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
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

BUISNESS OF THE COMPANY

During the year the company achieved a gross turnover less sale returns of Rs. 135.284 Millions and earned a net profit of Rs.4.737 Millions after providing for salary to staff and directors, repair and maintenance, interest to banks and depositors, deprecation, commission and other expenses. The Company has not declared any dividend during the year and Company hopes to do better in the coming years.

TRADE REFERENCES

· Satish Metal Company

· Thermax Limited

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U27109PB1985PTC006476
Name of the company	ATAM VALVES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	1050-51 Industrial Area, Jalandhar-144001, Punjab, India jca_25375@yahoo.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10230066
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	HDFC Bank Limited, HDFC Bank House Senapati Bapat, Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India RBBform8@hdfcbank.com
Nature of instrument creating charge	Supplementary Letter of Hypothecation.
Date of instrument Creating the charge	25.11.2011
Amount secured by the charge	Rs.40.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest at the rate as may be communicated by the Bank from time to time. Terms of Repayment Working Capital facility shall be repayable On Demand Term loan shall be repayable in suitable instalments Margin As may be stipulated by the Bank from time to time. Extent and Operation of the charge Hypothecation by way of First Charge on Company's Stocks and Book Debts, movable plant and machinery and vehicles etc, as a continuing security as mentioned in Column No.15 to secure below for the repayment of Rs.400 Lacs together with interest, costs, charges, expenses and other moneys due and payable by the Company to the Bank
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Stock in Trade, consisting of raw materials, goods in process of manufacturing finished goods, and other merchandise whatsoever being movable properties, All the debts, that is, all the book debts, outstandings, monies receivables, claims, bills, invoice documents, contracts, guarantees The movable plant and machinery and vehicles, which may now or at any time hereafter belong to the Borrower or come to the Borrower's disposal
Particulars of the present modification	The Charge shall now stand increased from Rs.35.000 Millions to Rs.40.000 Millions against the security of Stocks and Book Debts, movable plant and machinery and vehicles of the Company.

FIXED ASSETS

• Furniture and Fixture
• Machinery
• Tools
• Generator Set
• Typewriter
• Scooter
• Cycle
• Computer
• Lable Machine
• Pager
• Camera
• Fans
• Fax Machine
• Water Cooler
• Motor Cycle
• Fire Extingtor

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.53.26
UK Pound	1	Rs.86.23
Euro	1	Rs.68.64

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--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	YES
--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.