MIRA INFORM REPORT

Report Date :

03.04.2013

IDENTIFICATION DETAILS

Name :	HITECH ENGINEERING CORPORATION INDIA PRIVATE LIMITED
Registered Office :	G-17, MIDC, Baramati, Pune-413102, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.06.2008
Com. Reg. No.:	25-132311
Capital Investment / Paid-up Capital :	Rs.40.175 Millions
CIN No.: [Company Identification No.]	U74200PN2008PTC132311
TAN No.: [Tax Deduction & Collection Account No.]	PNEH05900G
PAN No.: [Permanent Account No.]	AACCH0688N
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer, Exporter and Importer of cane handling systems, cane feeding systems, cane mills, and providing services of turnkey sugar plants.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (35)

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

Maximum Credit Limit :	USD 490000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The management has failed to file its latest financials with the government department. From the previous year financials it seems that the company is performing well and it can be considered normal for business dealing. In absence of latest financials payment terms are unknown. Business is active. 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 – 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.

LOCATIONS

Registered Office/ Factory :	G-17, MIDC, Baramati, Pune-413102, Maharashtra, India
Tel No.:	91-2112-244252/ 244488/ 243646
Mobile No.:	91-9922985800 (Mr. Rajendra Ingawale)
Fax No.:	91-2112-243229
E-Mail :	cagandhidb@gmail.com info@hitecheng.com mail@hitecheng.in marketing@hitecheng.in enquiry@hitecheng.in
Website:	http://www.hitecheng.in

DIRECTORS

As on: 02.02.2012

Name :	Mr. Rajendra Chandrakant Ingawale
Designation :	Director
Address :	At Post Khandaj, Taluka Baramati, Pune-413102, Maharashtra, India
Date of Birth/Age :	12.07.1969
Qualification :	Engineer
Date of Appointment :	25.06.2008
DIN No.:	02054682
Name :	Mr. Sanjay Jyotiram Awate
Designation :	Director
Address :	Flat No. 9, Sai Park, Ozarde Estate, T.C. Coll Road, Baramati, Pune-413402, Maharashtra, India
Date of Birth/Age :	15.04.1969
Qualification :	Engineer
Date of Appointment :	25.06.2008
DIN No.:	02054762
Name :	Mr. Srilakshmi Narasimha Patrudu Kantreddi
Designation :	Director
Address :	1-51-5/2/1, Plot No. 86/1, Sector – I, MVP Colony, Vishakhapattanam, Andhra Pradesh, India
Date of Birth/Age :	18.11.1968
Date of Appointment :	01.05.2011
DIN No.:	03431058

MAJOR SHAREHOLDERS

As on: 02.02.2012

Names of Shareholders	No. of Shares (Class A)
Rajendra Ingawale	1052138
Sanjay Awate	947862
Narasimha Patrudu KSL	191700
Total	2191700

Names of Shareholders	No. of Shares (Class B)
Rajendra Ingawale	10648
Sanjay Awate	9527
Narasimha Patrudu KSL	9000
Total	29175

Equity Share Break up (Percentage of Total Equity)

As on: 02.02.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of cane handling systems, cane feeding systems, cane mills, and providing services of turnkey sugar plants.

Products :

Product Description	ITC Code
Machinery for Sugar Manufacturer	8438.30

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Lokseva Sahakari Bank Limited, 430, Narpatgiri Chowk, Mangalwar Peth, Narpatgiri, Corner, Pune – 411011, Maharashtra, India
• Bank of Maharashtra, Nagar Parishad Building, Bhigwan Chowk, Baramati, Baramati Branch, Pune-413102, Maharashtra, India
• HDFC Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	83.856	19.817
Loans taken for vehicles secured	1.375	2.186
Loans taken for other fixed assets secured	2.668	0.472
Deposits secured	78.996	16.829
Total	166.895	39.304

Banking Relations :	--
Auditors :
Name :	Dinesh B Gandhi and Associates Chartered Accountants
Address :	1, Gauri Apartments, 250/A, Shaniwar Peth, Pune-411030, Maharashtra, India
Tel. No.:	91-24477603/ 24494240
E-Mail :	cagandhidb@gmail.com
PAN No.:	AMBPG3585D

CAPITAL STRUCTURE

As on: 02.02.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Class A Equity Shares	Rs.10/- each	Rs.50.000 Millions
40000	Class B Equity Shares	Rs.1000/- each	Rs.40.000 Millions
	Total		Rs.90.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2191700	Class A Equity Shares	Rs.10/- each	Rs.21.917 Millions
29175	Class B Equity Shares	Rs.1000/- each	Rs.29.175 Millions
	Total		Rs.51.092 Millions

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Class A Equity Shares	Rs.10/- each	Rs.20.000 Millions
30000	Class B Equity Shares	Rs.1000/- each	Rs.30.000 Millions
	Total		Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2000000	Class A Equity Shares	Rs.10/- each	Rs.20.000 Millions
20175	Class B Equity Shares	Rs.1000/- each	Rs.20.175 Millions
	Total		Rs.40.175 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		40.175	8.054	0.100
2] Share Application Money		0.000	0.000	7.954
3] Reserves & Surplus		83.929	32.085	10.299
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		124.104	40.139	18.353
LOAN FUNDS
1] Secured Loans		166.895	39.304	0.113
2] Unsecured Loans		0.114	0.114	1.308
TOTAL BORROWING		167.009	39.418	1.421
DEFERRED TAX LIABILITIES		0.000	0.873	0.000
TOTAL		291.113	80.430	19.774
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		131.871	67.798	22.440
Capital work-in-progress		36.441	30.662	2.743
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		31.691	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	284.842	116.700	113.085
	Sundry Debtors	231.635	69.140	12.194
	Cash & Bank Balances	298.986	176.939	129.378
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	578.417	732.677	314.852
Total Current Assets		1393.880	1095.456	569.509
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	341.712	51.275	92.114
	Other Current Liabilities	671.630	976.892	426.400
	Provisions	289.620	85.607	56.788
Total Current Liabilities		1302.962	1113.774	575.302
Net Current Assets		90.918	(18.318)	(5.793)
MISCELLANEOUS EXPENSES		0.192	0.288	0.384
TOTAL		291.113	80.430	19.774

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	NA	896.348	559.805
		Other Income		7.652	2.327
		TOTAL	NA	904.000	562.132
Less	EXPENSES
		Office Expenses	NA	871.524	546.152
		Administrative Expenses
		Advertising Expenses
		Depreciation
		Financial Charges
		TOTAL	NA	871.524	546.152
	PROFIT BEFORE TAX		NA	32.476	15.980
Less	TAX		NA	11.221	5.681
	PROFIT AFTER TAX		83.929	21.255	10.299
	EARNINGS IN FOREIGN CURRENCY
		F.O.B.Value of Export Sale	2.289	71.690	0.000
		Export Sale Against Local Expenses at Ethiopia	1.297	5.381	0.000
		Export-Labour charges	0.000	40.214	0.000
	TOTAL EARNINGS		3.586	117.285	0.000
	IMPORTS
		Purchases	28.199	32.925	0.000
		Import Value	0.000	0.000	4.519
		Capital Goods	15.731	27.989	0.000
	TOTAL IMPORTS		43.930	60.914	4.519
	Earnings Per Share (Rs.)		41.55	52.13	1029.90

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	2.35	1.83
Net Profit Margin (PBT/Sales)	(%)	NA	3.62	2.85
Return on Total Assets (PBT/Total Assets}	(%)	NA	2.79	2.70
Return on Investment (ROI) (PBT/Networth)		NA	0.81	0.87
Debt Equity Ratio (Total Debt /Networth)		1.35	0.98	0.08
Current Ratio (Current Asset/Current Liability)		1.07	0.98	0.99

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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last two years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
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	No
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

UNSECURED LOAN:

(Rs. In Millions)

Particulars	As on 31.03.2011	As on 31.03.2010
Rupee term loans others	0.114	0.114
Total	0.114	0.114

CONTINGENT LIABILITIES:

a) Un-expired Bank Guarantees 12586200040550000

b) Letter of credit issued to third parties 29602000 NIL

c) Contingent liabilities in respect of Warranty given by the company for the performance of machinery/equipment supplied to the customer during the warranty period is not provided for.

BANKERS CHARGES REPORT AS PER REGISTRY:

Corporate identity number of the company	U74200PN2008PTC132311
Name of the company	HITECH ENGINEERING CORPORATION INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	G-17, MIDC, Baramati -413102, Maharashtra, India cagandhidb@gmail.com
This form is for	Creation of charge
Type of charge	Immovable property
Particular of charge holder	Lokseva Sahakari Bank Limited, 430, Narpatgiri Chowk, Mangalwar Peth, Narpatgiri, Corner, Pune – 411011, Maharashtra, India loksevabank@gmail.com
Nature of instrument creating charge	Hypothication agreement dated 7th january 2013
Date of instrument Creating the charge	07.01.2013
Amount secured by the charge	Rs.5.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 15% Terms of Repayment 84 Monthly Instalments Margin 30% Extent and Operation of the charge Up to full satisfaction of charge
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All the piece and parcel of shop no.14215 in the shivraj complex building total ad-measuring area 560 sq ft. constructed on CTS no 784 of Baramati Taluka Dist. Pune valuing Rs 8.400 Millions

FIXED ASSETS:

· Factory Shed At Plot No. G-17

· Office Building

· Office Premises at Baramati

· Air Conditiner

· Borewell

· Computer

· Electrification

· Furniture and Fixture

· Machinery

· Office Equipments

· Mobile Handset

· Tools and Equipments

· Innova Car

· Honda City

· Swift Car

· Tuckson Car

· Hydra Crane

· Vehicle- Platina

· Vehicle - Platina

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 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.54.33
UK Pound	1	Rs.82.72
Euro	1	Rs.69.82

INFORMATION DETAILS

Report Prepared by :

RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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
--DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		35

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.