MIRA INFORM REPORT

Report Date :

07.06.2013

IDENTIFICATION DETAILS

Name :	HAWA ENGINEERS LIMITED
Formerly Known As :	HAWA ENGINEERS PRIVATE LIMITED
Registered Office :	307, Behind Chandola Police Chowki, Opposite F K Texttile, Ahmedabad-380 028, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	26.03.1993
Com. Reg. No.:	04-19199
Capital Investment / Paid-up Capital :	Rs. 35.264 Millions
CIN No.: [Company Identification No.]	L29120GJ1993PLC019199
TAN No.: [Tax Deduction & Collection Account No.]	AHMH00483A
PAN No.: [Permanent Account No.]	AAACH3878G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Industrial Valves.
No. of Employees :	400 (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 300000
Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. It has recorded better growth in its income and profits during 2012. Trade relations are reported as decent. Business is active. Payments are reported to be slow but correct. The company can be considered normal for business dealing 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.

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. Riyaz
Designation :	Account Head
Contact No.:	91-9925007502
Date :	06.06.2013

LOCATIONS

Registered Office/ Factory :	307, Behind Chandola Police Chowki, Opposite F K Texttile, Ahmedabad-380 028, Gujarat, India
Tel. No.:	91-79-25320781/82/83/86
Mobile No.:	91-9925007502 (Mr. Riyaz)
Fax No.:	91-79-25320785
E-Mail :	riyaz@hawaengltd.com helho@hawaenglts.com rkshaikh90@yahoo.com
Website :	www.hawaengltd.com
Area :	35000 sq. yard
Location :	Owned
Regional Offices:	Located At: · Ahmedabad · Amritsar · Ankleshwar · Aurangabad · Baroda · Delhi · Kolkata · Mumbai · Pune · Rajkot · Secunderabad · Surat · Vapi
International Office:	Dubai (UAE)

DIRECTORS

As on 29.09.2012

Name :	Mr. Aslam F. Kagdi
Designation :	Chairman cum Managing Director
Address :	46, Prachina Society, Sarkhej Road, Ahmedabad-380 055, Gujarat, India
Date of Birth/Age :	21.01.1961
Qualification :	B.E.
Date of Appointment :	01.06.2000
PAN No.:	AGBPK2131K
DIN No.:	00006879
Name :	Mr. Asad F. Kagdi
Designation :	Managing Director
Address :	35, 36, Prachina Society, Juhapura Sarkhej Road Ahmedabad-380 055, Gujarat, India
Date of Birth/Age :	28.06.1962
Date of Appointment :	26.03.1999
PAN No.:	AFYPK1166L
DIN No.:	00006898
Name :	Mr. Khalik Hawa
Designation :	Director
Address :	A/5, New Amber Tower, Sarkhej Road, Ahmedabad-380 055, Gujarat, India
Date of Birth/Age :	22.12.1969
Date of Appointment :	31.07.2003
DIN No.:	00006911
Name :	Mr. Wasim M. Shaikh
Designation :	Director
Address :	7/67, Husseni Park, Juhapura, Ahmedabad-380 055, Gujarat, India
Date of Birth/Age :	04.09.1980
Date of Appointment :	28.09.2005
DIN No.:	00006922
Name :	Mr. Mohammedkhan N. Pathan
Designation :	Director
Address :	B-73, 8^th Floor, New Amber Tower, Sarkhej Road, Ahmedabad-380 055, Gujarat, India
Date of Birth/Age :	16.07.1976
Date of Appointment :	30.04.2004
DIN No.:	00006940
Name :	Mr. Shad Mdafzal Ranginwala
Designation :	Director
Address :	341, Dabaliya Pole Near Kalupur Tower, Kalupr, Ahmedabad – 380001, Gujarat, India
Date of Birth/Age :	18.11.1984
Date of Appointment :	31.01.2008
DIN No.:	01989939
Name :	Mr. Anwarahmed Mohammed Javid Daruwala
Designation :	Director
Address :	B19, Bage-Nishat Society, Opposite Sonal Cinema Vejalpur Raod, Sarkhej, Ahmedabad – 380055, Gujarat, India
Date of Birth/Age :	31.03.1987
Date of Appointment :	15.02.2013
DIN No.:	06487724
Name :	Mr. Anas Habib Puthawala
Designation :	Additional Director
Address :	16, Menagurjari Society, AT Colleger Road, P{aldi, Ahmedabad -380007, Gujarat, India
Date of Birth/Age :	06.12.1985
Date of Appointment :	15.02.2013
DIN No.:	06487616
Name :	Mr. Mohamedzakari Asad Kagdi
Designation :	Additional Director
Address :	35, Prachina Society, Juhapura Sarkhej Road Ahmedabad-380 055, Gujarat, India
Date of Birth/Age :	16.01.1987
Date of Appointment :	15.02.2013
DIN No.:	05199634
Name :	Mr. Zakaria Asad Kagdi
Designation :	Director
Name :	Mr. Sajid M Sancha
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Riyaz
Designation :	Account Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

NOT AVAILABLE

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Bodies corporate	12.22
Directors or relatives of Directors	50.61
Other top fifty shareholders	37.17
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Industrial Valves.

Products :

Item Code No.	Product Description
84818000	Industrial Valves

Exports :

Products :

Industrial Valves

Countries :

UAE

Imports :

Products :

Raw Material

Countries :

China

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Suppliers :

Luft Techno Cast Limited, Ahmedabad

Customers :

End Users

· Indian Oil

No. of Employees :

400 (Approximately)

Bankers :

• Canara Bank, Navrangpura Branch, Ahmedabad-380 009, Gujarat India
• The Karur Vysya Bank Limited, Ashram Road, Ahmedabad, Gujarat, India
• Bank of Baroda, Gita Mandir Road, Ahmedabad, Gujarat, India

Facilities :

Cash Credit: Rs.20.000 Millions (Canara Bank)

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Term loans from banks	1.205	3.656
Term loans from banks	20.048	20.349
Total	21.253	24.005

Banking Relations :	--
Auditors :
Name :	Nawab Memon and Associates Chartered Accountants
Address :	4195, Kothi Mohalla, Near Electicity House, Lal Darwaja, Ahmedabad-380001, Gujarat, India
PAN No.:	APPPM1726F
Partnership Firms / Proprietary Concern /Associates Companies:	· Hydint Valve Automation, India · Orbit Engineers, India · Aira Controls, Marck and Care Engineers · Hawa Control Enterprises, India · Hawa Control International, India · Hawa and Marck Engineers, India · Steel-Mac Controls · Care Alloy Cast, India · Luft Techno Cast Limited, India · Aira Automation Engineers · Airmax Controls · Marck and Aira Engineers, India · Hydint Pneumatics, India · Flange-N-Flange · A. S. Engineers, India · Aira Euro Automation Private Limited, India (CIN: U29120GJ2005PTC045398) · Care Engineers, India · Marck and Aira Trading · Suzhik Techno Cast Private Limited, India (CIN: U27100GJ2005PTC047407) · Steel Mac Controls Private Limited, India (CIN: U52100GJ2009PTC057900)

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs. 40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3526400	Equity Shares	Rs.10/- each	Rs. 35.264 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		35.264	35.264	35.264
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		38.961	27.868	19.242
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		74.225	63.132	54.506
LOAN FUNDS
1] Secured Loans		21.253	24.005	16.436
2] Unsecured Loans		2.876	1.759	2.999
TOTAL BORROWING		24.129	25.764	19.435
DEFERRED TAX LIABILITIES		5.592	4.842	3.620
TOTAL		103.946	93.738	77.561
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		57.338	51.133	39.918
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.001
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	47.031	23.095	22.259
	Sundry Debtors	147.872	113.403	89.522
	Cash & Bank Balances	13.564	18.148	8.587
	Other Current Assets	7.046	4.248	0.000
	Loans & Advances	12.850	13.546	12.088
Total Current Assets		228.363	172.440	132.456
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	87.894	58.848	33.308
	Other Current Liabilities	82.223	62.710	56.174
	Provisions	11.638	8.277	5.332
Total Current Liabilities		181.755	129.835	94.814
Net Current Assets		46.608	42.605	37.642
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		103.946	93.738	77.561

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	457.483	366.187	262.039
		Other Income	1.369	1.090	0.356
		TOTAL (A)	458.852	367.278	262.395
Less	EXPENSES
		Cost of materials consumed	345.079	270.316
		Purchases of stock-in-trade	13.933	16.547
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(0.918)	0.781
		Employee benefit expense	13.008	10.512
		Other expenses	62.414	47.820
		TOTAL (B)	433.516	345.976	251.268
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		25.336	21.301	11.127
Less	FINANCIAL EXPENSES (D)		4.490	4.686	2.412
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		20.846	16.615	8.715
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.917	2.994	2.411
	PROFIT BEFORE TAX (E-F) (G)		16.929	13.621	6.304
Less	TAX (H)		6.249	4.972	2.207
	PROFIT AFTER TAX (G-H) (I)		10.680	8.649	4.097
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.478	0.852	0.755
	APPROPRIATIONS		NA	9.000	4.000
	BALANCE CARRIED TO THE B/S		NA	0.478	0.852
	EARNINGS IN FOREIGN CURRENCY
		Export of own products FOB	15.111	9.513	22.613
	Earnings Per Share (Rs.)		3.03	2.45	1.16

Particulars	31.03.2013
Sales Turnover (Approximately)	590.000

Expected Sales (2013-2014): Rs.600.000 Millions

The above information has been parted / denied by Mr. Riyaz Shaikh (Account Head)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.33	2.35	1.56
Net Profit Margin (PBT/Sales)	(%)	3.70	3.72	2.41
Return on Total Assets (PBT/Total Assets}	(%)	7.41	7.90	4.76
Return on Investment (ROI) (PBT/Networth)		0.23	0.22	0.12
Debt Equity Ratio (Total Debt /Networth)		0.33	0.41	0.36
Current Ratio (Current Asset/Current Liability)		1.26	1.33	1.40

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Sundry Creditors	87.894	58.848	33.308
Total	87.894	58.848	33.308

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 five 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	No
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	No

OPERATIONAL REVIEW:

Profit before interest Depreciation and Taxation has reached to the 16.900 Millions mark. This achievement is nothing but the dedicated effort of the management for always aiming the newer heights. The Directors are hopeful of continuing the same performance in the coming year also

BUSINESS OUT LOOK:

The Order book position of the company is very encouraging and looking to this scenario the company has undergone the expansion mode and increased its capacity to produce quality valves. The coming year is also encouraging and The Directors are planning to purchase new factory land so that imported machinery division can be put up there which will create a niche market for its products.

CORPORATE INFORMATION:

Subject is in business of Manufacturing of Industrial Valves. The Company was incorporated in 1993 and it is situated a Ahmedabad, Gujarat.

UNSECURED LOAN

PARTICULARS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Other loans and advances	1.184	0.925
Other loans and advances	1.692	0.834
Total	2.876	1.759

CONTINGENT LIABILITIES NOT PROVIDED FOR: (As on 31.03.2012)

Counter Guarantees, against Bank Guarantees given by the bankers Rs. 13.617 Millions

TRADE REFERENCES

· Luft Techno Cast Limited, Ahmedabad

· Indian Oil

FIXED ASSETS

· Land

· Buildings

· Plant and equipment

· Furniture and fixtures

· 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.56.87
UK Pound	1	Rs.87.65
Euro	1	Rs.74.52

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	KVT

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	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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--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.