MIRA INFORM REPORT

Report Date :

22.02.2013

IDENTIFICATION DETAILS

Name :	CHEEMA BOILERS LIMITED (w.e.f.08.09.1999)
Formerly Known As :	CHEEMA BOILERS PRIVATE LIMITED
Registered Office :	SCO 523-524, Sector - 70, Mohali - 160070, Punjab
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	18.05.1999
Com. Reg. No.:	16-022583
Capital Investment / Paid-up Capital :	Rs. 18.207 Millions
CIN No.: [Company Identification No.]	U29246PB1999PLC022583
PAN No.: [Permanent Account No.]	AABCC4031B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Boilers and Related Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 2620000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears slight dip in sales turnover and profitability during the current year. However, general financial position of the company seems to be strong. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments. 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.

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : (CRISIL) BBB
Rating Explanation	Having moderate degree of safety regarding timely servicing of finance obligation it carry moderate credit risk.
Date	February 2012

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/ Head Office :	SCO 523-524, Sector - 70, Mohali - 160070, Punjab, India
Tel. No.:	91-172-2271691/ 5091790/ 5090487/ 5055666
Fax No.:	91-172-5090486/ 5055667
E-Mail :	finance@cheemaboilers.com
Website :	www.cheemaboilers.com
Works :	Banmajra, Kurali District, Ropar – 140103, Punjab, India
Tel. No.:	91-160-5005801/ 02/ 03
Fax No.:	91-160-5005804
Branches :	Located at: Ø Delhi Ø Hyderabad Ø Kolkata Ø Mumbai

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Harjinder Singh Cheema
Designation :	Managing director
Address :	H. No. 2846, PH-7, Mohali, Punjab, India
Date of Birth/Age :	24.12.1949
Qualification :	BE
Date of Appointment :	18.05.1999
DIN No.:	00121171
Name :	Mr. Balwinder Singh Cheema
Designation :	Whole-time director
Address :	H. No. 22, Sector – 69, Mohali, Punjab, India
Date of Birth/Age :	15.09.1951
Qualification :	MA Economics
Date of Appointment :	18.05.1999
DIN No.:	00121093
Name :	Mr. Apjinder Singh Cheema
Designation :	Director
Address :	H. No. 22, Sector – 69, Mohali, Punjab, India
Date of Birth/Age :	22.12.1960
Qualification :	BSC
Date of Appointment :	18.05.1999
DIN No.:	00121155
Name :	Mr. Hardeep Singh Cheema
Designation :	Whole-time director
Address :	HIG 256, Sector 71, Mohali, Punjab, India
Date of Birth/Age :	10.06.1956
Qualification :	Graduate
Date of Appointment :	18.05.1999
DIN No.:	00283033

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Harjinder Singh Cheema	112623
Gurinder Kaur	133400
Sandeep Singh Cheema	25350
Guramrit Kaur	32400
Balwinder Singh Cheema	132897
Harsimran Singh	25575
Amandeep Kaur	1000
Sukhwant Kaur	144300
Apjinder Singh Cheema	150587
Palvinder Kaur	101660
Upneet Kaur	27525
Iqbal Singh	24000
Hardeep Singh Cheema	150506
Teginder Kaur	116866
Satnir Singh	36400
Amarjeet Kaur	52636
Cheema Engineering Services Private Limited, India	393375
CBL World Hotels Limited, India	119600
Creative Capital Services Limited, India	10000
RDP Finance Private Limited, India	20000
Aglow Financial Services Private Limited, India	10000
Total	1820700

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	30.38
Directors or relatives of directors	69.62
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Boilers and Related Products.

Products :

ITC Code	Product Descriptions
840212	Water Tube Boiler

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

HDFC Bank Limited, HDFC Bank House, Senapti 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	41.001	42.906
Working Capital Limits	257.442	234.289
Total	298.443	277.195

Banking Relations :	--
Auditors :
Name :	Datta Singla and Company Chartered Accountants
Address :	SCO 2935-36, Sector 22C, Chandigarh - 160022, India
Tel. No.:	91-172-2707065/ 5086551/ 5086552
Fax No.:	91-172-5019550
Income-tax PAN of auditor or auditor's firm :	AAAFD8577H

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10,000,000	Equity Shares	Rs. 10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,820,700	Equity Shares	Rs. 10/- each	Rs. 18.207 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		18.207	18.207	18.207
2] Share Application Money		0.000	50.000	50.000
3] Reserves & Surplus		637.297	574.668	478.848
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		655.504	642.875	547.055
LOAN FUNDS
1] Secured Loans		298.443	277.195	217.428
2] Unsecured Loans		307.304	229.940	224.790
TOTAL BORROWING		605.747	507.135	442.218
DEFERRED TAX LIABILITIES		31.931	28.342	24.863
TOTAL		1293.182	1178.352	1014.136
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		554.808	332.250	328.938
Capital work-in-progress		0.000	89.568	5.917
INVESTMENT		0.000	2.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	693.425	717.662	591.920
	Sundry Debtors	271.972	406.407	536.808
	Cash & Bank Balances	14.944	38.441	30.509
	Other Current Assets	0.200	0.246	7.473
	Loans & Advances	75.796	84.682	73.881
Total Current Assets		1056.337	1247.438	1240.591
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	128.281	300.705	310.658
	Other Current Liabilities	180.705	174.016	239.576
	Provisions	8.977	18.183	11.368
Total Current Liabilities		317.963	492.904	561.602
Net Current Assets		738.374	754.534	678.989
MISCELLANEOUS EXPENSES		0.000	0.000	0.292
TOTAL		1293.182	1178.352	1014.136

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1440.988	1882.528	1762.213
		Other Income	18.542	6.036	7.110
		TOTAL (A)	1459.530	1888.564	1769.323
Less	EXPENSES
		Cost of material consumed	924.737	1356.833
		Purchase of stock in trade	102.587	0.000
		Changes in inventories of finished goods and work in progress	(37.149)	(99.660)
		Employee benefit expenses	109.914	125.315
		Other Expenses	223.822	304.662
		TOTAL (B)	1323.911	1687.150	1579.901
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		135.619	201.414	189.422
Less	FINANCIAL EXPENSES (D)		41.318	40.083	29.176
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		94.301	161.331	160.246
Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.391	15.781	10.902
	PROFIT BEFORE TAX (E-F) (G)		75.910	145.550	149.344
Less	TAX (H)		11.995	44.900	21.913
	PROFIT AFTER TAX (G-H) (I)		63.915	100.650	127.431
	EARNINGS IN FOREIGN CURRENCY
		Sales Proceeds		3.573	3.276
		Advance from Customers		0.00	0.550
	TOTAL EARNINGS		N.A.	3.573	3.826
	IMPORTS
		Raw Materials		2.691	3.394
		Capital Goods		0.000	4.846
	TOTAL IMPORTS		N.A.	2.691	8.240
	Earnings Per Share (Rs.)		35.10	55.28	70.07

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.38	5.33	8.44
Net Profit Margin (PBT/Sales)	(%)	5.27	7.73	8.47
Return on Total Assets (PBT/Total Assets}	(%)	4.71	9.21	9.52
Return on Investment (ROI) (PBT/Networth)		0.12	0.23	0.27
Debt Equity Ratio (Total Debt/Networth)		0.92	0.79	0.81
Current Ratio (Current Asset/Current Liability)		3.32	2.53	2.21

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 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	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	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

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term loans
From Others	95.551	26.004
From Banks	2.741	3.843
From Others	207.562	199.928
From Directors and Related Parties	1.450	0.165
Total	307.304	229.940

FIXED ASSETS:

Ø Land building

Ø Plant and Machinery

Ø Vehicles

Ø Office Equipment

Ø Computer

Ø Electric Installation

Ø Furniture and Fixture

Ø Furnace

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. 54.48
UK Pound	1	Rs. 82.71
Euro	1	Rs. 72.23

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.