MIRA INFORM REPORT

Report Date :

22.04.2013

IDENTIFICATION DETAILS

Name :	TENOVA HYPERTHERM PRIVATE LIMITED (w.e.f 14.07.2008)
Formerly Known As :	TECHINT HYPERTHERM PRIVATE LIMITED
Registered Office :	2093, Oberoi Garden Estates, Chandivili, Andheri (East), Mumbai – 400072, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	01.02.2006
Com. Reg. No.:	11-159394
Capital Investment / Paid-up Capital :	Rs.45.000 Millions
CIN No.: [Company Identification No.]	U28900MH2006PTC159394
TAN No.: [Tax Deduction & Collection Account No.]	MUMT13004F
PAN No.: [Permanent Account No.]	AADCT1393H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Importer and Exporter of Reheating Furnaces.
No. of Employees :	120 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 1300000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a subsidiary of “Tenova Spa”, Italy. It is an established company having a satisfactory track record. There appears drastic fall in profitability during 2011-2012. However, general financial position of the company appears to be strong. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal business dealings at usual trade terms and condition.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

EXTERNAL AGENCY RATING

(October 2012) Long Term Rating: CRISIL has suspended its rating A1+ due to lack of information.

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. Vikas Mandavkar
Designation :	Accounts Department
Contact No.:	91-22-66810200
Date :	19.04.2013

LOCATIONS

Registered Office :	2093, Oberoi Garden Estates, Chandivili, Andheri (East), Mumbai – 400072, Maharashtra, India
Tel. No.:	91-22-66810200/ 28477702
Mobile No.:	91-9324186705 (Mr. Abhijeet) 91-9322725125 (Mr. Deepak)
Fax No.:	91-22-28477703
E-Mail :	hbhakti@vsnl.com info@hyperthermgroup.com tehnovahypertherm@hyperthermgroup.com kulkarni.md@hyperthermgroup.com
Website :	http://www.tenovagroup.com
Area :	2000 sq. ft.
Location :	Owned
Factory :	Located at Rebale, Navi Mumbai, Maharashtra, India

Note: The Company has shifted factory from Shed No.1, Nilima Enterprises, Opposite Saili Petrol Pump, Vasai (East), Mumbai, Maharashtra, India to the present factory address.

DIRECTORS

As on: 28.09.2012

Name :	Mr. Gope Hassanand Sajnani
Designation :	Chairman
Address :	18, 2^nd Nav Nirman, 16^th Road, Santacruz (West), Mumbai – 400 054, Maharashtra, India
Date of Birth/Age :	21.10.1941
Qualification :	Engineer
Date of Appointment :	01.02.2006
PAN No.:	ABRPS7395A
DIN No.:	01828735
Name :	Mr. Vijay Raghunath Joshi
Designation :	Managing Director
Address :	Bhagyashree, 2^nd Floor, Anandnagar, Nityanand Marg, Andheri (East), Mumbai – 400069, Maharashtra, India
Date of Birth/Age :	12.02.1954
Qualification :	Engineer
Date of Appointment :	31.07.2006
PAN No.:	ACTPJ6412C
DIN No.:	00208455
Name :	Mr. Suresh Kishinchand Sajnani
Designation :	Director (Commercial)
Address :	602, Acme Harmony Building No.1, Behind Poonam Nagar, Off Mahakali Caves Road, Andheri, (East), Mumbai – 400093, Maharashtra, India
Date of Birth/Age :	07.10.1964
Date of Appointment :	31.07.2006
PAN No.:	AKJPS5463N
DIN No.:	00480942
Name :	Mr. Nicola Bettion Cavero
Designation :	Director
Address :	VIA Umberto 1, 32, Isola Del Giglio, Italy, 58013
Date of Birth/Age :	23.09.1958
Date of Appointment :	31.07.2006
DIN No.:	01225162
Name :	Mr. Maurizio Emilo Parodi
Designation :	Director
Address :	VIA Piaggio, 24, Genova, Italy, 16100
Date of Birth/Age :	21.08.1959
Date of Appointment :	31.07.2006
DIN No.:	01225212
Name :	Mr. Gianluigi Nova
Designation :	Director
Address :	VIA A Volta 63, Cassina, Rizzardi, Itlay, 22070
Date of Birth/Age :	14.01.1947
Date of Appointment :	12.05.2008
DIN No.:	05250410

KEY EXECUTIVES

Name :	Mr. Vikas Mandavkar
Designation :	Accounts Department

MAJOR SHAREHOLDERS

As on: 28.09.2012

Names of Shareholders	No. of Shares
Sajnani Thermal Technologies Private Limited (India)	1170000
HEPL Engineers Private Limited (India)	1035000
Tenova SpA, Italy	2295000
TOTAL	4500000

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2012

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	51.00
Bodies corporate	49.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Importer and Exporter of Reheating Furnaces.
Exports :
Products :	Finished Goods
Countries :	African Countries
Imports :
Products :	Raw Materials
Countries :	· Italy · Germany
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

End Users and Industries

No. of Employees :

120 (Approximately)

Bankers :

Yes Bank, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
SHORT TERM BORROWING
Loans repayable on demand	200.497	0.000
Total	200.497	0.000

Banking Relations :	--
Auditors :
Name :	Haribhakti and Company Chartered Accountants
Address :	42, Free Press House, 4^th Floor, 215, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-86391101-4/ 2287 1099
Fax No.:	91-22-22856237
E-Mail :	hbhakti@vsnl.com
Website :	www.haribhaktigroup.com
PAN No.:	AAAFH2010F
Holding Company :	Tenova Spa, Italy
Fellow Subsidiary company :	Tenova Multiform Private Limited
Others :	· Sajnani Thermal Technologies Private Limited · HEPL Engineers Private Limited · HEPL Technicon Private Limited

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs.45.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		45.000	45.000	20.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		290.349	252.676	188.523
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		335.349	297.676	208.523
LOAN FUNDS
1] Secured Loans		200.497	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		200.497	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		535.846	297.676	208.523
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		21.019	22.570	23.681
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.001	0.000	0.000
DEFERREX TAX ASSETS		2.083	2.849	4.084
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6.456	3.656	3.368
	Sundry Debtors	764.354	481.938	221.917
	Cash & Bank Balances	19.990	54.088	218.027
	Other Current Assets	450.034	484.964	352.776
	Loans & Advances	249.426	227.112	173.074
Total Current Assets		1490.260	1251.758	969.162
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	173.280	198.666	206.946
	Other Current Liabilities	511.175	455.713	429.887
	Provisions	293.062	325.122	151.571
Total Current Liabilities		977.517	979.501	788.404
Net Current Assets		512.743	272.257	180.758
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		535.846	297.676	208.523

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operation	1404.610	1089.870	1014.060
		Other Income	27.950	27.430	31.980
		TOTAL	1432.560	1117.300	1046.040
Less	EXPENSES
		Office Expenses	1375.680	973.100	867.150
		Administrative Expenses
		Advertising Expenses
		TOTAL	1375.680	973.100	867.150
	PROFIT BEFORE EXCEPTIONAL AND EXTRAORDINARY ITEMS AND TAX		56.880	144.200	178.890
Less/ Add	PRIOR PERIOD INCOME		0.000	31.430	NA
	PROFIT BEFORE TAX		NA	NA	NA
Less	TAX		NA	NA	NA
	PROFIT AFTER TAX		37.670	115.290	104.640
	Earnings Per Share (Rs.)		8.37	25.62	38.39

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.63	10.32	10.00
Debt Equity Ratio (Total Debt /Networth)		0.60	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.52	1.28	1.22

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Particulars	31.03.2012	31.03.2011	31.03.2010
Sundry Creditors
Creditors due others	173.280	198.666	206.946
Total	173.280	198.666	206.946

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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

OPERATIONS:-

The Company has shown an increase in the revenue by 28.88% as compare to the previous year. However, heavy pressure on the costs of large projects has brought down the net profits substantially.

Market Outlook

Outlook during year 2011-2012 was positive. At the beginning of the year, we received a large export order from Tenova Core for engineering and supply of major parts for 140 t/h Walking Beam Furnace. This was followed by an order from Viraj Profiles, a domestic stainless steel producer, for a 60 t/h Walking Beam Furnace.

In addition, in the month of January, we received a very large and prestigious order from Tata Steel for their Kalinganagar Project for 2 Nos 350 t/h Walking Beam Furnaces with option for additional furnace of same capacity.

The business for spares and engineering services also picked up to over Rs 40.000 Millions.

The outlook for next year looks satisfactory considering Tata Steel exercising their option for additional furnace for Kalinganagar Project and some major projects expected to be finalized though there are signs of global slowdown. The situation in India is also somewhat uncertain on account of policy paralysis.

FIXED ASSETS:

• Goodwill
• Air Conditioner
• Office Premises
• Furniture and Fixture
• Computers
• Electrical Installation
• Plant and Machine

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.54.03
UK Pound	1	Rs.82.43
Euro	1	Rs.70.49

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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
--DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.