MIRA INFORM REPORT

Report Date :

23.04.2013

IDENTIFICATION DETAILS

Name :	H L E ENGINEERS PRIVATE LIMITED (w.e.f.2004)
Formerly Known As :	H L E Engineers
Registered Office :	Survey No. 60/1 Ground Floor, Plot-1 and 2, Near Shukan Bung, Opposite Maheshvari Bhavan, City Light Area, Surat – 395001, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	14.10.2004
Com. Reg. No.:	04-044905
Capital Investment / Paid-up Capital :	Rs. 0.900 Million
CIN No.: [Company Identification No.]	U29199GJ2004PTC044905
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Chemicals Plants and Machinery and also Job Working Income.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 156000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject was incorporated as a proprietary concern with the name H L E Engineers and got converted into private limited in the year 2004. It is an established company having satisfactory track record. There appears some dip in the profitability of the company during current year. However, networth of the company appears to be satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. 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.

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. Anil Trivedi
Designation :	Accounts Department
Contact No.:	91-9687611138
Date :	22.04.2013

LOCATIONS

Registered Office :	Survey No. 60/1 Ground Floor, Plot-1 and 2, Near Shukan Bung, Opposite Maheshvari Bhavan, City Light Area, Surat – 395001, Gujarat, India
Tel. No.:	Not Available
Mobile No.:	91-9687611138 [Mr. Anil Trivedi]
Fax No.:	Not Available
E-Mail :	info@hleengineer.com anil.trivedi@hleengineer.com
Website :	www.hleengineer.com
Location :	Owned
Factory :	A-6, Maroli Udyognagar, Maroli Bazar, Maroli, Navsari – 396436, Gujarat, India
Tel. No.:	91-2637-272240
Fax No.:	91-2637-272095

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Harsh Himanshubhai Patel
Designation :	Director
Address :	R-1, Somanth Mahadev Society, B/H Sargam Shopping Centre, Parle Point, Surat – 395002, Gujarat, India
Date of Appointment :	14.10.2004
DIN No.:	00141863
Name :	Mr. Himanshu Khushalbhai Patel
Designation :	Director
Address :	Bung-23, Sy. No. 61, Paiky 1-2/ 6465 Sarjan Co-operative Housing Society, Near Himson Bung, Near Old Jakai Naka, Athwa Lines, Surat – 395001, Gujarat, India
Date of Appointment :	14.10.2004
DIN No.:	00202312

KEY EXECUTIVES

Name :	Mr. Anil Trivedi
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Himanshu Khushalbhai Patel	58500
Harsh Himanshubhai Patel	18000
Sharad K. Patel	4500
Nilesh K. Patel	4500
Swara R. Patel	4500
Total	90000

AS ON 29.09.2012

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

BUSINESS DETAILS

Line of Business :	Manufacturer of Chemicals Plants and Machinery and also Job Working Income.
Exports :
Products :	Finished Goods
Countries :	Ø Germany
Imports :
Products :	Raw Material
Countries :	Ø USA Ø Germany
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Other [Manufacturing Company]

No. of Employees :

300 (Approximately)

Bankers :

HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term Loans
From Banks	2.717	2.570
HDFC Bank Cash Credit	16.765	16.366
HDFC Bank Buyers credit loan account	0.000	2.840
Total	19.482	21.776

Banking Relations :	--
Auditors :
Name :	Hiren M Diwan and Company Chartered Accountants
Address :	43, River Palace, Wing "A" Beside Navdi Ovara, Nanpura, Surat – 395001, Gujarat, India
Income-tax PAN of auditor or auditor's firm :	AACFH4310F
Related Parties :	Ø Yashashvi Rasayan Private Limited Ø H.L. Equipments Ø HL Indigos Private Limited Ø Heerasons Chemical Private Limited Ø Newpar Aromatics Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
100,000	Equity Shares	Rs. 10/- each	Rs. 1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
90,000	Equity Shares	Rs. 10/- each	Rs. 0.900 Million

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		0.900	0.900	0.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		38.145	31.757	21.108
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		39.045	32.657	22.008
LOAN FUNDS
1] Secured Loans		19.482	21.776	6.965
2] Unsecured Loans		94.324	66.209	74.283
TOTAL BORROWING		113.806	87.985	81.248
DEFERRED TAX LIABILITIES		8.899	5.489	1.658
TOTAL		161.750	126.131	104.914
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		72.353	51.609	46.059
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		9.276	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	126.166	110.491	55.639
	Sundry Debtors	7.097	14.640	7.930
	Cash & Bank Balances	6.245	3.578	0.279
	Other Current Assets	0.480	0.040	0.000
	Loans & Advances	65.005	29.009	26.868
Total Current Assets		204.993	157.758	90.716
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	38.773	45.759	21.555
	Other Current Liabilities	76.523	37.477	9.698
	Provisions	9.576	0.000	0.608
Total Current Liabilities		124.872	83.236	31.861
Net Current Assets		80.121	74.522	58.855
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		161.750	126.131	104.914

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	341.374	259.278	99.415
		Other Income	1.752	1.036	1.935
		TOTAL	343.126	260.314	101.350
Less	EXPENSES
		Cost of material consumed	194.942	166.436
		Purchase of stock-in-trade	6.163	4.826
		Changes in inventories of finished goods, work in progress and stock-in-trade	(11.950)	(31.502)
		Employee benefit Expenses	56.331	36.134
		Other Expenses	75.889	64.949
		TOTAL	321.375	240.843	89.874
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		21.751	19.471	11.476
Less	FINANCIAL EXPENSES		5.545	1.874	1.189
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		16.206	17.597	10.287
Less/ Add	DEPRECIATION/ AMORTISATION		5.413	4.590	4.057
	EXCEPTIONAL ITEMS		0.432	0.000	0.000
	EXTRAORDINARY ITEMS		0.028	0.016	0.006
	PROFIT BEFORE TAX		10.333	12.991	6.224
Less	TAX		3.945	2.278	1.764
	PROFIT AFTER TAX		6.388	10.713	4.460
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		27.170	16.457	11.997
	BALANCE CARRIED TO THE B/S		33.558	27.170	16.457
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	19.563	2.861	1.938
	CIF VALUE OF IMPORTS		31.151	13.670	5.274
	Earnings Per Share (Rs.)		70.98	119.04	49.56

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.86	4.12	4.40
Net Profit Margin (PBT/Sales)	(%)	3.03	5.01	6.26
Return on Total Assets (PBT/Total Assets}	(%)	3.73	6.20	4.55
Return on Investment (ROI) (PBT/Networth)		0.26	0.40	0.28
Debt Equity Ratio (Total Debt/Networth)		2.91	2.69	3.69
Current Ratio (Current Asset/Current Liability)		1.64	1.90	2.85

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
Acceptances	(Rs. In Millions)
Sundry Creditors for Goods	26.467	40.408	14.927
Sundry Creditors for Expenses	12.306	5.351	6.628
Total	38.773	45.759	21.555

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	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	No
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 LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
From Director	76.742	48.277
From Shareholders	17.582	17.932
Total	94.324	66.209

CORPORATE INFORMATION:

Subject is engaged in the business of manufacturing and trading of Chemical Plant and Machinery and also job working income. The register office of the company is situated at Sy. No 60/1, Ground Floor, Plot No. 1&2_, Near Shukan Bungalow, Maheshawari Bbavan_, City Light Road, Surat- 395007 . Factory is situated at Maroli Udyog Nagar Post Maroli Bazar, District Navsari.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U29199GJ2004PTC044905
Name of the company	H L E ENGINEERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Survey No. 60/1 Ground Floor, Plot-1 and 2, Near Shukan Bung, Opposite Maheshvari Bhavan, City Light Area, Surat – 395001, Gujarat, India Email: info@hleengineer.com
This form is for	Modification of charge
Charge identification number of the modified	10086486
Type of charge	Immovable property
Particular of charge holder	HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India Email: RBBform8@hdfcbank.com CIN No.: L65920MH1994PLC080618
Nature of description of the instrument creating or modifying the charge	Rectification Memorandum of Equitable Mortgage.
Date of instrument Creating the charge	23.05.2012
Amount secured by the charge	Rs. 438.900 Millions
Brief particulars 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 Due to inadvertence in Annexure IV of Memorandum Recording Past Transaction of creation of Mortgage by Deposit of Title Deeds dt 27.02.2012, Existing Limit and Proposed Additional Limits of Borrower No.1: HLE Engineers Private Limited and Borrower No.5: H L Equipments, were wrongly shown which has since been rectified by virtue of the present Rectification Memorandum of Equitable Mortgage dated 23.05.2012. Others Facility granted by the Bank to the following Borrowers : HLE Engineers Private Limited of Rs.109.900 Millions Heerasons Chemicals Private Limited of Rs.2.500 Millions New Par Aromatics Private Limited of Rs.2.500 Millions Yashashvi Rasayan Private Limited of Rs.153.000 Millions H E Equipments of Rs.171.000 Millions
Short particulars of the property charged	All land & building with present and future structure thereon Plot No. A-6, admeasuring 1620 sq. meters situate at Revenue Survey No. 153 having New Block No.140 admeasuring 20640 sq meters of Village Nadod Tal and District Navsari.
Date of Modification	27.02.2012
Particulars of the present modification	Due to inadvertence in Annexure IV of Memorandum Recording Past Transaction of creation of Mortgage by Deposit of Title Deeds dt 27.02.2012, Existing Limit and Proposed Additional Limits of Borrower No.1: HLE Engineers Private Limited and Borrower No.5: H L Equipments, were wrongly shown which has since been rectified by virtue of the present Rectification Memorandum of Equitable Mortgage dated 23.5.2012. Except the above, the charge stands secured at Rs.438.900 Millions granted to the said Borrowers.

CONTINGENT LIABILITIES:

Particulars	31.03.2012	31.03.2011
	(Rs. in Millions)
Bank Guarantee	22.043	1.491
Bank Letter of Credit	37.920	24.811
Disputed Income Tax demand of AY 2009-10 created vide order passed U/s 143(3) of the Income tax Act, 1961	26.573	0.000

FIXED ASSETS:

Ø Land

Ø Buildings

Ø Plant and Equipments

Ø Electrical Installation

Ø Furniture and Fixture

Ø Vehicles

Ø Office Equipment

Ø Computers

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. 54.17
UK Pound	1	Rs. 82.45
Euro	1	Rs. 70.70

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.