MIRA INFORM REPORT

Report Date :

22.11.2013

IDENTIFICATION DETAILS

Name :	MECTECH PROCESS ENGINEERS PRIVATE LIMITED
Registered Office :	708, Shakuntla Apartments, 59, Nehru Place, New Delhi – 110019
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	22.04.1983
Com. Reg. No.:	55-015592
Capital Investment / Paid-up Capital :	Rs.5.000 Millions
CIN No.: [Company Identification No.]	U74899DL1983PTC015592
TAN No.: [Tax Deduction & Collection Account No.]	DELM09400G
PAN No.: [Permanent Account No.]	AAACM2302E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Water Treatment Plants and Chemical Plants Machinery.
No. of Employees :	Not Available

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 77000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track record. The company has seen a significant increase in its net profitability during 2013. Trade relations are fair. Business is active. Payment terms are reported as usually 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.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

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 Office :	708, Shakuntla Apartments, 59, Nehru Place, New Delhi – 110019, India
Tel. No.:	91-11-41607186
Fax No.:	91-11-41607318
E-Mail :	info@mectech.co.in
Website :	http://www.mectech.co.in
Corporate Office :	366, Phase-II, Udyog Vihar, Gurgaon – 122016, Haryana, India
Tel. No.:	91-124-4700800
Fax No.:	91-124-4700801/ 02

DIRECTORS

As on: 30.09.2013

Name :

Mr. Ishwar Sahai

Designation :

Director

Address :

G-118, Saket, New Delhi – 110017, India

Date of Birth/Age :

14.04.1946

Date of Appointment :

26.04.1983

DIN No.:

00241422

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1983PTC015592	MECTECH PROCESS ENGINEERS PRIVATE LIMITED	Director	26/04/1983	26/04/1983	-	Active	NO
2	U70100DL1985PTC020686	MECTECH SYSTEMS PRIVATE LIMITED	Director	15/04/1985	15/04/1985	-	Active	NO
3	U74899DL1993PTC055145	MECTECH KNITFABS PRIVATE LIMITED	Director	09/09/1993	09/09/1993	-	Active	NO
4	U01118DL2006PTC154387	MECTECH GREEN FUELS PRIVATE LIMITED	Director	27/09/2006	27/09/2006	-	Active	NO

Name :

Mr. Neera Sahai

Designation :

Director

Address :

G-118, Saket, New Delhi – 110017, India

Date of Birth/Age :

08.10.1951

Date of Appointment :

26.04.1983

DIN No.:

00242743

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1983PTC015592	MECTECH PROCESS ENGINEERS PRIVATE LIMITED	Director	26/04/1983	26/04/1983	-	Active	NO
2	U70100DL1985PTC020686	MECTECH SYSTEMS PRIVATE LIMITED	Director	15/04/1985	15/04/1985	-	Active	NO
3	U74899DL1993PTC055145	MECTECH KNITFABS PRIVATE LIMITED	Director	09/09/1993	09/09/1993	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2013

Names of Shareholders	No. of Shares
Ishwar Sahai	243600
Neera Sahai	96096
Ankur Sahai	43400
Ishwar Sahai (HUF)	116900
Total	499996

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2013

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Water Treatment Plants and Chemical Plants Machinery.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

ICICI Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
SHORT TERM BORROWING
Bill Purchase A/c	28.475	0.000
PCL A/c IOB	19.143	0.000
Total	47.618	0.000

Banking Relations :	--
Auditors :
Name :	R C Kapoor and Associates Chartered Accountant
Address :	Y-14B, First Floor, Green Park Main, New Delhi – 110016, India
Tel. No.:	91-11-46021716
Mobile No.:	91-9810208519
Fax No.:	91-11-26853854
E-Mail :	rckapoor15@yahoo.co.in
Enterprises owned or significant influence key management personal or their relative :	· Raghunath Equipments Private Limited · Mectech Knitfabs Private Limited · Echo Tech Private Limited

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
499996	Equity Shares	Rs.10/- each	Rs.5.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	5.000	5.000	5.000
(b) Reserves & Surplus	14.334	10.257	7.494
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	19.334	15.257	12.494
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	0.000	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	52.618	5.000	1.014
(b) Trade payables	36.679	12.110	4.395
(c) Other current liabilities	73.390	81.977	105.565
(d) Short-term provisions	0.000	0.000	0.034
Total Current Liabilities (4)	162.687	99.087	111.008
TOTAL	182.021	114.344	123.502
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	16.408	17.710	19.598
(ii) Intangible Assets	0.417	0.566	0.444
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.112	0.112	0.112
(c) Deferred tax assets (net)	0.893	0.719	0.447
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	17.830	19.107	20.601
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	30.195	18.132	36.196
(c) Trade receivables	81.581	45.594	38.025
(d) Cash and cash equivalents	16.631	20.959	16.969
(e) Short-term loans and advances	34.244	10.421	11.580
(f) Other current assets	1.540	0.131	0.131
Total Current Assets	164.191	95.237	102.901
TOTAL	182.021	114.344	123.502

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	282.876	313.664	188.410
		Other Income	6.700	1.358	17.775
		TOTAL	289.576	315.022	206.185
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	283.539	311.036	204.171
	PROFIT BEFORE TAX		6.037	3.986	2.014
Less	TAX		1.960	1.223	0.654
	PROFIT AFTER TAX		4.077	2.763	1.360
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		8.618	5.855	4.495
	BALANCE CARRIED TO THE B/S		12.695	8.618	5.855
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	198.499	91.887	17.371
		Purchase import	3.136	0.000	0.000
		Consultancy/ Service Income	5.345	0.000	0.000
	TOTAL EARNINGS		206.980	91.887	17.371
	Earnings Per Share (Rs.)		8.15	5.53	2.72

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.41	0.88	0.66
Net Profit Margin (PBT/Sales)	(%)	2.13	1.27	1.07
Return on Total Assets (PBT/Total Assets}	(%)	3.34	3.51	1.64
Return on Investment (ROI) (PBT/Networth)		0.31	0.26	0.16
Debt Equity Ratio (Total Debt/Networth)		2.72	0.33	0.08
Current Ratio (Current Asset/Current Liability)		1.01	0.96	0.93

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	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	Yes
34]	External Agency Rating, if available	No

Note:

The Registered office address of the company has been shifted from 704-705, Shakuntala Apartments, 59, Nehru Place, New Delhi, India to present address w.e.f. 25.03.2008

BUSINESS

For the year ended 31st March 2013, the Company’s total sales were Rs. 282.876 Millions over previous year’s Rs. 313.664 Millions

The Net profit of the (before tax) Company for the year is Rs.6.038 Millions as against Rs.3.986 Millions in the previous year.

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2013	As on 31.03.2012
SHORT TERM BORROWING
From Other	5.000	5.000
Total	5.000	5.000

Notes: No Charges Exist for Company

FIXED ASSETS

Tangible Assets

· Water Purifier

· Machinery

· Office Equipment

· Furniture and Fixture

· Air Conditioner

· Fans

· Coolers

· Computer

· Fax Machine

· Invertor

· Projector

· Locker

· Car

· Building

· Land

· Laptop

Intangible Assets

· Computer Software

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.62.89
UK Pound	1	Rs.101.14
Euro	1	Rs.84.42

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

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