MIRA INFORM REPORT

Report Date :

08.01.2013

IDENTIFICATION DETAILS

Name :	PRAYAS ENGINEERING LIMITED
Registered Office :	Post Box No.3, Anand -Sojitra Road , Vallabh Vidyanagar , Anand-388120, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	25.07.1963
Com. Reg. No.:	04-001222
Capital Investment / Paid-up Capital :	Rs. 8.346 millions
CIN No.: [Company Identification No.]	U27310GJ1963PLC001222
TAN No.: [Tax Deduction & Collection Account No.]	BRDP01281A
PAN No.: [Permanent Account No.]	AABCP5134E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Material Handling Equipment, Ferrous and Non-Ferrous Casting, etc.
No. of Employees :	1743 (Approximately) [In Office: 243 and In Factory:1500]

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 4280000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having a good track record. There appears slight dip in profitability. However, general financial position of the company seems to be strong. Performance capacity appears to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be regular 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.

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	CARE
Rating	A- (Long term bank facilities)
Rating Explanation	Having adequate degree of safety regarding timely servicing of financial obligation. It carry low credit risk.
Date	September, 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.

INFORMATION PARTED BY

Name :	Mr. Devraj
Designation :	Account Department
Contact No.:	91-2692-227576
Date :	07.01.2013

LOCATIONS

Registered Office / Head Office / Factory :	Post Box No.3, Anand -Sojitra Road , Vallabh Vidyanagar , Anand-388120, Gujarat, India
Tel. No.:	91- 2692-227533 / 230168
Fax No.:	91-2692-236538
E-Mail :	kdpatel@emtici.elecon.com
Website :	www.prayasengineering.com
Location :	Owned

DIRECTORS

As on 28.09.2012

Name :	Mr. Prayasvin Patel
Designation :	Director
Qualification :	BE, MBA (USA)
Date of Appointment :	25.06.1976
DIN No.:	00037394
Name :	Mr. Prashant Chandrakant Amin
Designation :	Director
Qualification :	MBA Finance,USA & M B A Engineering and Management
Date of Appointment :	01.10.2006
DIN No.:	01056652
Name :	Mrs. Sudha Sumantrai Desai
Designation :	Director
Qualification :	Graduate
Date of Appointment :	27.09.2002
DIN No.:	01216972

KEY EXECUTIVES

Name :	Mr. Devraj
Designation :	Account Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Note: Major Shareholders Details not available

Equity Share Break up (Percentage of Total Equity)

As on 28.09.2012

Category	Percentage
Bodies corporate	91.84
Directors or relatives of Directors	8.16
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Material Handling Equipment, Ferrous and Non-Ferrous Casting, etc.

Products :

Item Code No.	Product Description
74199940	Copper Base Castings (P.B.)
84839000	Parts Of Worm Gear (P.B.)
84835010	Pulley
73259920	Alloy steel Castings
84313990	Idler suitable for conveyor.
84282011	Components for belt Conveyor
84233000	Belt Weigher
85059000	Magnetic Separater

Exports :

Products :

Finished Good

Countries :

· UK

· Dubai

Imports :

Products :

· Raw Material

· Finished Good

Countries :

· Germany

· New Zealand

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

GENERAL INFORMATION

Suppliers :

Tri Alloys Limited, Mumbai

Customers :

· FL Smidth Private Limited

· Trapro System

· Bosch Rexroth (India) Limited

· Ispat Industries Limited

· Jindal Steel and Power Limited

· BGR Energy Systems Limited

· Arudra Engineers Private

· Thyssenkrupp Industries India Private Limited, Pune

· Bharat Earth Movers Limited, KGF

· L and T Limited, Mumbai

· Mcnally Sayaji Engineering Limited, Vadodara and Kumardhubi

· Tyco Valves and Controls India Private Limited, Halol

· Fouress Engineers – Banglore

· Anupam Industries Limited, V. V. Nagar

· ISGEC, Yamunanagar

· Mechtech Engineers, Vadodara

· Bharat Heavy Electrical Limited

· Essar Constructions (India) Limited

· Mcnally Bharat Engg. Company Limited

· N.M.D.C.

· N.T.P.C.

· Vasavadatta Cement

· Madras Cement

No. of Employees :

1743 (Approximately) [In Office: 243 and In Factory:1500]

Bankers :

State Bank of India, Specialised Commercial Branch, Jay Laxmi Plaza, Ganesh Crossing, Anand - 388001, Gujarat, India

Facilities :

CC – Rs. 300.000 millions

LT – Rs. 150.000 millions

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Term loans from banks	273.603	126.795
Other loans and advances	3.350	1.325
Working capital loans from banks	461.978	423.224
Total	738.931	551.344

Banking Relations :	--
Auditors :
Name :	Thacker butala desai Chartered Accountants
Address :	Thacker Butala Desai, Chartered Accountants, G 21-22, Tanariri Apartment, Ashabaug Society, Navsari, Gujarat, India
PAN No.:	AAAFT2158E
Associated and Joint Venture:	K.B. Investments Private Limited CIN No.: U67120OR1983PTC001163
Enterprises over which have significant influence. :	· Elecon Engineering Company Limited CIN No.: L29259GJ1960PLC001082 · Eimco Elecon (India) Limited CIN No.: L29199GJ1974PLC002574 · Power Build Limited CIN No.: U32201GJ1972PLC002065 · Elecon Peripheral Limited CIN No.: U29224GJ1998PLC034233 · Emtici Engineering Limited CIN No.: U29259GJ1956PLC001509 · Devkishan Investments Private Limited CIN No.: U65910GJ1982PTC005586 · Akaaish Mechatronics Limited CIN No.: U65910GJ1978PLC003215 · Elecon Information Technology Limited CIN No.: U65910GJ1984PLC007066 · Bipra Investments and Trust Private Limited CIN No.: U65910GJ1979PTC003283 · Elecon Middle East Private Limited · Speciality Wood Pack Private Limited CIN No.: U20100GJ1984PTC007065 · Madhuban Prayas Resorts Limited CIN No.: U55101GJ2005PLC047198 · Kirloskar Power Build Gear Limited CIN No.: U31103KA1999PLC025872 · Eimco Elecon Electricals Limited CIN No.: U31900GJ2005PLC046661 · Elecon Singapore Pte. Limited · Elecon Engineering (suzhou) Company Limited · Elecon Africa Pty. Limited · Elecon Australia Pty. Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs. 20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
834640	Equity Shares	Rs.10/- each	Rs. 8.346 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		8.346	8.346	8.346
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1062.848	913.089	723.417
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1071.194	921.435	731.763
LOAN FUNDS
1] Secured Loans		738.931	551.344	656.995
2] Unsecured Loans		0.000	50.000	59.749
TOTAL BORROWING		738.931	601.344	716.744
DEFERRED TAX LIABILITIES		27.329	4.135	(2.026)
TOTAL		1837.454	1526.914	1446.481
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		644.835	435.076	394.092
Capital work-in-progress		6.053	0.000	0.000
INVESTMENT		96.196	89.284	88.884
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	519.783	424.595	290.373
	Sundry Debtors	1179.281	1104.419	961.907
	Cash & Bank Balances	13.837	12.919	18.617
	Other Current Assets	6.569	5.225	0.000
	Loans & Advances	105.950	99.322	77.516
Total Current Assets		1825.420	1646.480	1348.413
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	512.677	414.676	331.068
	Other Current Liabilities	187.163	200.626	41.378
	Provisions	35.210	28.624	12.462
Total Current Liabilities		735.050	643.926	384.908
Net Current Assets		1090.370	1002.554	963.505
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1837.454	1526.914	1446.481

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2754.772	2243.315	1740.412
		Other Income	23.341	18.080	42.080
		TOTAL (A)	2778.113	2261.395	1782.492
Less	EXPENSES
		Cost of materials consumed	1447.079	1158.789
		Employee benefit expense	144.958	110.417	1408.391
		Other expenses	732.893	636.437
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(0.487)	(98.183)
		TOTAL (B)	2324.443	1807.460	1408.391
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		453.670	453.935	374.101
Less	FINANCIAL EXPENSES (D)		101.693	75.469	89.008
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		351.977	378.466	285.093
Less/ Add	DEPRECIATION/ AMORTISATION (F)		136.359	98.840	126.483
	PROFIT BEFORE TAX (E-F) (G)		215.618	279.626	158.610
Less	TAX (H)		64.647	88.741	49.967
	PROFIT AFTER TAX (G-H) (I)		150.971	190.885	108.643
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.751	1.078	1.152
Less	APPROPRIATIONS		150.712	191.212	108.717
	BALANCE CARRIED TO THE B/S		1.010	0.751	1.078
	EARNINGS IN FOREIGN CURRENCY		38.642	43.740	20.072
	Earnings Per Share (Rs.)		180.88	228.70	129.38

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.43	8.44	6.10
Net Profit Margin (PBT/Sales)	(%)	7.83	12.46	9.11
Return on Total Assets (PBT/Total Assets}	(%)	8.73	13.43	9.10
Return on Investment (ROI) (PBT/Networth)		0.20	0.30	0.22
Debt Equity Ratio (Total Liability/Networth)		1.38	1.35	1.51
Current Ratio (Current Asset/Current Liability)		2.48	2.56	3.50

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Sundry Creditor	512.677	414.676	331.068
Total	512.677	414.676	331.068

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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
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	Yes

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U27310GJ1963PLC001222
Name of the company	PRAYAS ENGINEERING LIMITED
Address of the registered office or of the principal place of business in India of the company	Post Box No.3, Anand -Sojitra Road , Vallabh Vidyanagar , Anand-388120, Gujarat, India Email: kdpatel@emtici.elecon.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90099213
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	Thacker Butala Desai, Chartered Accountants, G 21-22, Tanariri Apartment, Ashabaug Society, Navsari, Gujarat, India Email: santoshsuman@sbi.co.in
Nature of instrument creating charge	Supplemental deed of Hypothecation.
Date of instrument Creating the charge	26/12/2011
Amount secured by the charge	Rs. 701.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC -3.25% above Base rate, Present effective rate 13.25% p. a at monthly rests. Terms of Repayment CC- repayable on demand. Margin Raw Materials/ SIP/ Finished goods- 35% Book debts- 40% Bank Guarantee & Letter of credit- 5% Extent and Operation of the charge As per sanction letter dated 30.08.2011.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of Current assets in pari passu with Axis Bank and BOB. Hypothecation of assets/windmill purchased out of Bank Finance. Extension of hypothecation charge on all unencumbered Plant and machinery. Corporate guarantee of Emtici Engineering Limited. Pledge of 34150 shares of Rs. 10/- each of Eimco Elecon (I) Limited and 157850 shares of Rs. 2/- each of Elecon Engineering Company Limited
Date of instrument modifying the charge	15.03.2011
Particulars of the present modification	Availing New Term Loan of Rs. 30.000 millions and Bank Guarantee of Rs. 100.000 millions within the overall credit limit of Rs. 701.500 millions

CONTINGENT LIABILITIES:

(Rs. in millions)

PARTICULARS	31.03.2012
(A) Claims against the company not acknowledged as debt
(a) Income Tax demand disputed by company.	Nil
(b) Various demand for payment of Central Excise Duty and Service Tax	3.404
(B) Guarantees
(a) Counter guarantee given by the Company to the bankers for obtaining the Bank guarantee in the form of Earnest Money Deposits / Security Deposits / Performance Guarantee.	141.292
(b) Corporate Guarantee given by the company For Performance/Advance Payment.	35.038

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.54.98
UK Pound	1	Rs.88.11
Euro	1	Rs.71.67

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	MRI

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	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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
TOTAL		52

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.