MIRA INFORM REPORT

Report Date :

04.02.2013

IDENTIFICATION DETAILS

Name :	VISHVA VISHAL ENGINEERING LIMITED
Registered Office :	31, Maker Chambers III, 3^rd Floor, Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	24.10.1985
Com. Reg. No.:	11-035656
Capital Investment / Paid-up Capital :	Rs.25.000 millions
CIN No.: [Company Identification No.]	L28920MH1985PLC035656
TAN No.: [Tax Deduction & Collection Account No.]	MUMV11365E
PAN No.: [Permanent Account No.]	AAACV1290N
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Refractories.
No. of Employees :	205 (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 1190000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Trade relations are reported as decent. Business is active. Payment terms are reported as slow but correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES :

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

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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	A3 (Non fund based limit)
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	19.12.2011

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 (GENERAL DETAILS)

Name :	Mr. Salil Verma
Designation :	AGM Finance
Contact No.:	91-788-4088633
Date :	30.01.2013

LOCATIONS

Registered Office :	31, Maker Chambers III, 3rd Floor, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-22831724 / 22844208 / 22043647 / 22871331
Fax No.:	91-22-22873611
E-Mail :	dokwalsushil@hotmail.com vvel@bec-group.com bec@bec-group.com bec_bhilai@rediffmail.com dhruv@bec-group.com salil.verma@bec-group.com
Website :	http://www.bec-group.com/vvel.htm
Location :	Rented
Corporate/ Head Office/ Factory :	4/5 Industrial Estate, Nandini Road, Bhilai – 490026, Chhattisgarh, India
Tel. No.:	91-788-285101 /02 / 91-788-4088600 / 400 / 633 / 4082922
Fax No.:	91-788-285103 / 381141
E-Mail :	vvel@sancharnet.in
Location :	Leased
Regional Offices :	Located at New Delhi Mumbai Kolkata Chennai

DIRECTORS

As on 29.09.2012

Name :	Mr. Arvind Kumar Jain
Designation :	Director
Address :	43, Nehru Nagar, Bhilai – 490020, Chhattisgarh, India
Date of Birth/Age :	31.10.1946
Qualification :	B.E. (CIVIL)
Date of Appointment :	14.01.1994
DIN No.:	00207106
Name :	Mr. Rajeev Jain
Designation :	Director
Address :	14/3, Nehru Nagar (East), Durg Bhilai-490020, Chhattisgarh, India
Date of Birth/Age :	23.02.1960
Qualification :	B.E., M.B.A.
Date of Appointment :	14.02.1987
DIN No.:	00327831
Name :	Mr. Ashish Jain
Designation :	Director
Address :	43, Nehru Nagar, Bhilai – 490020, Chhattisgarh, India
Date of Birth/Age :	27.02.1976
Qualification :	MBA from USA
Date of Appointment :	16.07.2001
DIN No.:	00207048

KEY EXECUTIVES

Name :	Mr. Salil Verma
Designation :	AGM Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2011

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	2208320	88.33
Any Others (Specify)	291680	11.67
Trusts	291680	11.67
Sub Total	2500000	100.00
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	2500000	100.00
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Total (A)+(B)	2500000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	2500000	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Refractories.

Products :

Item Code No.	Product Description
381600000	Refractory Mass
271600000	Electrical Energy
730890000	Structures

Exports :

Products :

Finished goods

Countries :

• South Africa
• USA
• Dubai

Imports :

Products :

Raw Material

Countries :

South Africa

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Installed Capacity *	Actual Production
Refractory Mass	MT	11800	11336.522
Structural Fabrication	MT	2000	1795.589
Wind Turbine Generator	Kw	1250	1800079.40 (Units)

*Installed capacity being technical matter, has been accepted by us, as certified by the Management.

GENERAL INFORMATION

Customers :

OEM’s

No. of Employees :

205 (Approximately)

Bankers :

• Syndicate Bank, Maurya Cinema Complex, G E Road, Bhillai – 490023, Chattisgarh , India

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	0.000	6.582
Working capital loans banks secured	25.768	29.350
Loans taken for vehicles secured	1.297	1.249
Total	27.065	37.181

Banking Relations :	--
Auditors :
Name :	Taunk and Srikanth Chartered Accountant
Address :	11, Commercial Complex, Nehru Nagar (EAST), Bhilai - 490020, Chattisgarh, India
Tel. No.:	91-788-2393298
PAN No.:	AABFN9360K
Company controlled by Directors or relatives are	Bhilai Engg Corporation Limited BEC Strips Limited BEC Impex International Private Limited
Associate concerns :	Dreams (proprietary concern)

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs. 10 each	Rs.30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs. 10 each	Rs.25.000 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		25.000	25.000	25.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		274.235	216.741	154.911
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		299.235	241.741	179.911
LOAN FUNDS
1] Secured Loans		27.065	37.181	67.036
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		27.065	37.181	67.036
DEFERRED TAX LIABILITIES		17.669	16.994	16.137
TOTAL		343.969	295.916	263.084
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		192.035	160.445	115.628
Capital work-in-progress		0.081	15.089	10.035
INVESTMENT		9.162	8.257	8.257
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	41.490	47.204	51.722
	Sundry Debtors	155.688	125.920	72.411
	Cash & Bank Balances	1.272	3.469	21.459
	Other Current Assets	0.062	0.052	0.013
	Loans & Advances	48.221	89.580	71.932
Total Current Assets		246.733	266.225	217.537
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	37.833	50.449	42.845
	Other Current Liabilities	37.032	30.313	0.000
	Provisions	29.177	73.338	45.528
Total Current Liabilities		104.042	154.100	88.373
Net Current Assets		142.691	112.125	129.164
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		343.969	295.916	263.084

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	504.470	479.046	405.615
		Other Income	14.171	9.115	0.000
		TOTAL (A)	518.641	488.161	405.615
Less	EXPENSES
		Consumption materials changes inventories	319.121	289.962
		Manufacturing service costs	39.682	33.022	332.184
		Employee related expenses	23.270	19.200
		Administrative selling other expenses	25.122	29.552
		TOTAL (B)	407.195	371.736	332.184
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		111.446	116.425	73.431
Less	FINANCIAL EXPENSES (D)		0.717	1.900	4.927
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		110.729	114.525	68.504
Less/ Add	DEPRECIATION/ AMORTISATION (F)		23.747	18.838	17.286
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		86.982	95.687	51.218
Less	TAX (H)		29.853	33.701	18.449
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		57.129	61.986	32.769
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		16.741	4.911	5.069
Add	CREDIT OF EARLIER YEAR/EXCESS PROVISION WRITTEN BACK		--	--	2.822
Less	Earlier Year Excess / Short Provisions		(0.365)	0.156	--
Less	APPROPRIATIONS
		Transfer to General Reserve	50.000	50.000	35.750
	BALANCE CARRIED TO THE B/S		24.235	16.741	4.910
	EARNINGS IN FOREIGN CURRENCY
		Export Sales	1.658	0.026	0.935
		Dividend from JV	9.832	3.724
	TOTAL EARNINGS		11.490	3.750	0.935
	IMPORTS
		Raw Materials	33.794	24.663	12.962
	TOTAL IMPORTS		33.794	24.663	12.962
	Earnings / (Loss) Per Share (Rs.)		22.85	24.79	13.11

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	11.02	12.70	8.07
Net Profit Margin (PBT/Sales)	(%)	17.24	19.97	12.63
Return on Total Assets (PBT/Total Assets}	(%)	19.82	22.43	15.37
Return on Investment (ROI) (PBT/Networth)		0.29	0.40	0.28
Debt Equity Ratio (Total Debt/Networth)		0.09	0.15	0.37
Current Ratio (Current Asset/Current Liability)		2.37	1.73	2.46

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Creditors due small micro enterprises	4.030	0.000	42.845
Creditors due others	33.803	50.449
Total	37.833	50.449	42.845

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	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	Yes

THE YEAR IN RETROSPECT

Companys turnover during the year is more by Rs. 21.475 millions as compared to last year. Although turnover has improved but due to stiff competition, the profit before tax is slightly down to Rs. 86.982 millions as compared to Rs. 95.687 millions in the last year.

CONTINGENT LIABILITIES:

Contingent Liabilities not provided for:

(Rs. in millions)

PARTICULARS	31.03.2011
A. Guarantee & L/C outstanding	4.345
A. (i) Against which FDR pledged with bank	0.552
B. ESI	3.681
C. Sale Tax demand disputed	0.664
D. Service Tax and Excise Duty demand disputed	1.000
E Terminal Tax (Net of amount paid)	1.403

FIXED ASSETS

• Freehold Land
• Leasehold Land
• Office Building
• Factory Building
• Plant and Machinery
• Office Equipment
• Computer Equipments
• Furniture and Fixture
• Motor Vehicles

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.53.32
UK Pound	1	Rs.84.60
Euro	1	Rs.72.63

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
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.