MIRA INFORM REPORT

Report Date :

13.05.2013

IDENTIFICATION DETAILS

Name :	HAWA VALVES (INDIA) PRIVATE LIMITED
Registered Office :	R-16/ R 954, TTC Industrial Area, Thane-Belapur Road, Rabale, Navi Mumbai – 400701, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	28.09.2001
Com. Reg. No.:	11-133511
Capital Investment / Paid-up Capital :	Rs.115.500 Millions
CIN No.: [Company Identification No.]	U32100MH2001PTC133511
TAN No.: [Tax Deduction & Collection Account No.]	MUMH06737D
PAN No.: [Permanent Account No.]	AABCH0359M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Industrial Valves.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (33)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 570000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Mr. Nisar Ahmed, from accounts department has denied to disclose any detail of the subject to us. The financial strength of the company appears to be moderate. It has earned some profit from its operations. Trade relations are reported as fair. Business is active. Payment terms are slow but correct. 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.

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BB (Long Term Bank Facilities)
Rating Explanation	Moderate risk of default.
Date	April 2012

Rating Agency Name	CARE
Rating	A4 (Short Term Bank Facilities)
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	April 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 DENIED BY

Name :	Mr. Nisar Ahmed
Designation :	Accounts Department
Contact No.:	91-22-67760001
Date :	13.05.2013

LOCATIONS

Registered Office/ Head Office/ Factory 1 :	R-16/ R 954, TTC Industrial Area, Thane-Belapur Road, Rabale, Navi Mumbai – 400701, Maharashtra, India
Tel. No.:	91-22-67760000 (200 lines)/ 27697766/ 67760170
Fax No.:	91-22-67760100/ 27642020
E-Mail :	vasi_165@yahoo.com info@hawavalves.com
Website :	http://hawavalves.com
Area :	3800 sq mt
Location :	Owned
Factory :	Also located at: Ahmedabad Hubli Mumbai

DIRECTORS

As on: 29.09.2012

Name :	Mr. Javed Anwar Hawa
Designation :	Managing Director
Address :	Navsonarbala Annexe, 4^th Floor, 28^th Road, Bandra (West), Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	03.02.1969
Qualification :	BE
Date of Appointment :	28.09.2001
DIN No.:	00560836
Name :	Mrs. Reshma Javed Hawa
Designation :	Director
Address :	Navsonarbala Annexe, 4^th Floor, 28^th Road, Bandra (West), Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	07.02.1971
Qualification :	BA
Date of Appointment :	28.09.2001
DIN No.:	00560515

KEY EXECUTIVES

Name :	Mr. Nisar Ahmed
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Javed Anwar Hawa	7759900
Reshma Javed Hawa	3776900
Anwar Afzal Hawa	13200
Total	11550000

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Industrial Valves.

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

• Union Bank of India, Vashi Turbhe Branch, Commodity Exchange Building, Plot No.2,3 and 4, Sector-19, Vashi, Navi Mumbai - 400705, Maharashtra, India
• State Bank of India
• ICICI Bank Limited
• HDFC Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Rupee term loans from banks	274.542	221.785
Total	274.542	221.785

Banking Relations :	--
Financial Institution :	L and T Finance Limited, L and T House, Ballard Estate, Mumbai – 400001, Maharashtra, India
Auditors :
Name :	Bhoira Associates Chartered Accountants
Address :	Mumbai, Maharashtra, India
PAN No.:	ADQPB8858C

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11550000	Equity Shares	Rs.10/- each	Rs.115.500 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		115.500	40.200	40.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		27.823	50.386	30.558
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		143.323	90.586	70.758
LOAN FUNDS
1] Secured Loans		274.542	221.785	35.780
2] Unsecured Loans		15.981	44.774	38.528
TOTAL BORROWING		290.523	266.559	74.308
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
CREDITOR FOR CAPITAL GOODS		0.000	0.000	6.154
DEFERRED PAYMENT CREDIT		0.000	0.000	88.946
TOTAL		433.846	357.145	240.166
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		211.799	217.475	195.706
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		16.085	12.735	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	226.730	116.689	106.546
	Sundry Debtors	272.219	177.229	131.204
	Cash & Bank Balances	5.684	1.940	2.177
	Other Current Assets	0.000	0.000	8.541
	Other Non Current Assets	0.314	0.392	0.000
	Loans & Advances	2.065	1.342	0.188
Total Current Assets		507.012	297.592	248.656
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	216.419	113.002	73.496
	Other Current Liabilities	77.499	52.426	126.039
	Provisions	7.132	5.229	5.105
Total Current Liabilities		301.050	170.657	204.640
Net Current Assets		205.962	126.935	44.016
MISCELLANEOUS EXPENSES		0.000	0.000	0.444
TOTAL		433.846	357.145	240.166

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL	NA	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX		42.639	29.834	35.629
Less	TAX		13.955	9.793	7.600
	PROFIT AFTER TAX		28.684	20.041	28.029
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	427.426	341.285	462.867
	TOTAL EARNINGS		427.426	341.285	462.867
	Earnings Per Share (Rs.)		2.48	4.99	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Return on Total Assets (PBT/Total Assets}	(%)	5.93	5.79	8.02
Return on Investment (ROI) (PBT/Networth)		0.30	0.33	0.50
Debt Equity Ratio (Total Debt/Networth)		2.03	2.94	1.05
Current Ratio (Current Asset/Current Liability)		1.68	1.74	1.22

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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	No
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

Note:

The Registered Office of the company has been shifted from 13 Niyamat Building, 6th Floor, 82-D Almeida, Park Road, Bandra (West), Mumbai – 400050, Maharashtra, India to the present address w.e.f. 01.04.2006

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Rupee term loans from others	15.981	44.774
Total	15.981	44.774

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U32100MH2001PTC133511
Name of the company	HAWA VALVES (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	R-16, TTC Industrial Area, Thane-Belapur Road, Rabale, Navi Mumbai – 400701, Maharashtra, India E-mail: vasi_165@yahoo.com
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	L and T Finance Limited, L and T House, Ballard Estate, Mumbai – 400001, Maharashtra, India E-mail: mca21@ltfinance.com
Nature of instrument creating charge	Deed of hypothecation deal No. 966439.
Date of instrument Creating the charge	25.01.2013
Amount secured by the charge	Rs.7.750 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 7.35% flat per annum Terms of Repayment 23 months by equated monthly installment basis. Margin Rs.0.889 Million Extent and Operation of the charge First and exclusive charge by way of hypothecation as per clause nos. 2(i), 2(ii), 3, 4, 7, 8(vi), and 16 vide the deed of hypothecation dated 25.01.2013
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Description : EOT Crane Ganty Girder Manufactured by Reckon Engineers Located At Rabale Description : EOT Crane Ganty Girder Manufactured by Reckon Engineers Located At Rabale Description : EOT Crane Ganty Girder Manufactured by Reckon Engineers Located At Rabale Description : 1ot x 13.6 Mtrs EOT Crane Manufactured by Reckon Engineers Located at Rabale Description : 5t x 13.6 Mtrs EOT Crane Manufactured by Reckon Engineers Located at Rabale Description : Godrej Forklift Manufactured by Godrej and Boyce Mfg. Company Limited Located At Rabale Description : 1ot x 13.6 Mtrs EOT Crane Manufactured By Reckon Engineers Located at Rabale Description : Powerica D. G. Set Manufactured by Powerica Located at Rabale Description : Voltage Stabilizer Manufactured by Airkom Located at Rabale.

FIXED ASSETS:

Tangible Assets

• Land
• Buildings
• Factory Building
• Plant and Equipment
• Factory Equipments
• Furniture and Fixtures
• Vehicles
• Computer Equipments

Intangible Assets

• Brands
• Trade Marks

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.54.54
UK Pound	1	Rs.84.19
Euro	1	Rs.71.11

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		33

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.