MIRA INFORM REPORT

Report Date :

21.10.2013

IDENTIFICATION DETAILS

Name :	MICON VALVES (INDIA) PRIVATE LIMITED
Registered Office :	Wadee Manzil, Room No. 7, Lady Jamshedji Road, Mahim, Mumbai - 400 016, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	09.06.1998
Com. Reg. No.:	11-115287
Capital Investment / Paid-up Capital :	Rs. 5.000 Millions
CIN No.: [Company Identification No.]	U29120MH1998PTC115287
TAN No.: [Tax Deduction & Collection Account No.]	MUMM29807B
PAN No.: [Permanent Account No.]	AADCM6210C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Industrial Valves.
No. of Employees :	15 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 42000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The rating takes into consideration the weak financial risk and small scale operations. However, trade relations are reported as fair. Business is active. Payment are reported to be slow. The company can be considered normal for business dealing on a safe and secured 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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term ratings: “B –“
Rating Explanation	Have high risk of default.
Date	April 2013.

Rating Agency Name	ICRA
Rating	Short term ratings: “A4“
Rating Explanation	Have minimal degree of safety and carry very high credit risk.
Date	April 2013.

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. Arjun
Designation :	Accounts Departments
Contact No.:	91-22-24460712
Date :	14.10.2013

LOCATIONS

Registered Office/ Head & Sales Office :	Wadee Manzil, Room No. 7, Lady Jamshedji Road, Mahim, Mumbai - 400 016, Maharashtra, India
Tel. No.:	91-22-24460711/12
Fax No.:	91-22-24465755
E-Mail :	miconvalves@gmial.com sales@miconvalves.com
Website :	www.miconvalves.com
Factory :	R-862, Rabale MIDC, Industrial Area, Navi Mumbai-406 701, Maharashtra, India
Tel. No.:	91-22-27699674

DIRECTORS

As on: 28.09.2012

Name :	Mr. Mohmd Ilyas Yusuf Sheikh
Designation :	Director
Address :	Room No. 42, Rich Apartment, 4^th Floor, Wanza Wadi, Mahim, Mumbai-400 016, Maharashtra, India
Date of Birth/Age :	11.01.1955
Date of Appointment :	09.06.1998
DIN No.:	00420616
Name :	Mr. Ishrat Khatoon Sheikh
Designation :	Director
Address :	Room No. 42, Rich Apartment, 4^th Floor, Wanza Wadi, Mahim, Mumbai-400 016, Maharashtra, India
Date of Birth/Age :	12.03.1962
Date of Appointment :	09.06.1998
DIN No.:	02978573

KEY EXECUTIVES

Name :	Mr. Arjun
Designation :	Accounts Departments

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 28.09.2012

Names of Shareholders	No. of Shares
Mohd Ilyas Yusuf Sheikh	25000
Ishrat Khatoon Sheikh	25000
Total	50000

As on: 15.10.2012

Names of Shareholders	No. of Shares
Mohd Ilyas Yusuf Sheikh	12500
Ishrat Khatoon Sheikh	12500
Total	25000

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2012

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Industrial Valves.
Products :	Valve Globe Valve Check Valve Ball Valve Butterfly Valve Hammer Valve Strainer Valve   Industrial Valves Forged Steel Valves
Exports :
Products :	Industrial Valves
Countries :	Gulf Countries
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

· Indian Oil Corporation Limited, Panipat and Baroda Refinery

· Gujrat State Fertilizers Limited, Baroda

· Hemi Petro-Products Limited, Baroda

· Rieco, Pune

· Borosil Glass Works Limited, Mumbai

· RCF Limited, Mumbai

· Dee Greans Limited, Mumbai

· Grasim Industries Limited, Mumbai

· Artson Engineering Limited, Mumbai

· Indo-Gulf Fertilisers Corporation Limited, Sultanpur

· Iffco, Phulpur

· Synthetic and Chemical Limited, Barielly

· Relieance Industries Limited, Hazira and Patalganga

· Essar Steel, Hazira

· Kalyani Steel Limited, Pune

· Oswal Pertrochemicals Limited, Mumbai

· Raj Prakash Chemicals Limited, Mumbai

· Kesar Petroproducts Limited, Chiplun

· Indian Oxylate Limited, Chiplun

· ONGC, Mumbai

· Modern Petrofils, Baroda

· Hindustan Fertilizers Corporation Limited, Assam

· Kirloskar Pneumatic Limited, Pune

· G.R. Engineers Works Limited, Mumbai

· Gail, Mumbai

· H.R.Johnson, Mumbai

· Fedo, Cochin

· Western Bio-System, Pune

· Indian Polyfiber, Barabanki

· NRC Limited, Ambivali

No. of Employees :

15 (Approximately)

Bankers :

State Bank of Mysore, Mahim Branch, Behind Station Michael Church, Near Mahim Bus Depot, Mori Road, Mahim, Mumbai - 400016, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2012

As on

31.03.2011

Long term borrowings

Term loans (Building)

0.750

0.999

Term loans (Machinery)

2.687

3.553

Term loans (Machinery New)

6.085

0.000

Short term borrowings

From banks working capital facility

12.367

7.034

Total

21.889

11.586

Note:

Term Loan for Building @ 16.75 % is secured by exclusive first charge against Factory Building

Term Loan for Machinery @ 17.25 % is secured by exclusive first charge against Machinery.

Term Loan for Machinery New @ 17,25 % is secured by exclusive first charge against Machinery.

Maturity Profile of Long Term Borrowings are as set out below:

	1 Year	2 to 3 Years	3 to 4 Years	Beyond 5 years
Term loans (Building)	147,695	147,695	147,695	307.698
Term loans (Machinery)	1,151,370	1,151,370	383,790	-
Term loans (Machinery New)	1,538,462	1,538,462	1,538,462	1,470,049
Total	2,837,527	2,837,527	2,069,947	1,777,748

Working Capital Borrowing from Banks is secured by hypothecation of stocks of raw materials, Finished Goods and book-debts, both present and future by the Company. The Said facilities are further secured by personal guarantee of two directors.

Banking Relations :	--
Auditors :
Name :	Ashok Keshavlal Kesaria Chartered Accountant
Address :	04, Pawan Palace Building, Sitladevi Temple Road, Mahim (West), Mumbai – 400016, Maharashtra, India
Tel. No.:	91-22-24370221
PAN No.:	AFGPK7211N

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs. 5.000 Millions

As on: 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs. 10.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	5.000	4.200
(b) Reserves & Surplus	5.593	3.205
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	10.593	7.405
(3) Non-Current Liabilities
(a) long-term borrowings	9.522	4.552
(b) Deferred tax liabilities (Net)	0.401	0.212
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	9.923	4.764
(4) Current Liabilities
(a) Short term borrowings	14.492	7.045
(b) Trade payables	53.296	31.704
(c) Other current liabilities	1.485	2.044
(d) Short-term provisions	0.253	0.253
Total Current Liabilities (4)	69.526	41.046
TOTAL	90.042	53.215
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	17.628	10.303
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	3.652	1.379
Total Non-Current Assets	21.280	11.682
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	17.707	5.401
(c) Trade receivables	47.084	30.395
(d) Cash and cash equivalents	3.971	5.737
(e) Short-term loans and advances	0.000	0.000
(f) Other current assets	0.000	0.000
Total Current Assets	68.762	41.533
TOTAL	90.042	53.215

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		3.000
2] Share Application Money		0.000
3] Reserves & Surplus		1.619
4] (Accumulated Losses)		0.000
NETWORTH		4.619
LOAN FUNDS
1] Secured Loans		13.112
2] Unsecured Loans		0.591
TOTAL BORROWING		13.703
DEFERRED TAX LIABILITIES		0.169
TOTAL		18.491
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.039
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.906
	Sundry Debtors	21.624
	Cash & Bank Balances	8.497
	Other Current Assets	0.000
	Loans & Advances	0.290
Total Current Assets		35.317
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	22.961
	Other Current Liabilities	3.632
	Provisions	0.272
Total Current Liabilities		26.865
Net Current Assets		8.452
MISCELLANEOUS EXPENSES		0.000
TOTAL		18.491

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL	102.479	78.617	71.309
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	98.971	76.252	69.908
	PROFIT BEFORE TAX		3.508	2.365	1.401
Less	TAX		1.120	0.779	0.447
	PROFIT AFTER TAX		2.388	1.586	0.954
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3.205	1.619	0.665
	BALANCE CARRIED TO THE B/S		5.593	3.205	1.619
	Earnings Per Share (Rs.)		47.76	31.72	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.33	2.01	1.33
Return on Total Assets (PBT/Total Assets}	(%)	3.90	4.45	3.09
Return on Investment (ROI) (PBT/Networth)		0.33	0.31	0.30
Debt Equity Ratio (Total Debt/Networth)		2.27	1.57	2.97
Current Ratio (Current Asset/Current Liability)		0.99	1.01	1.31

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	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	No
17]	Major suppliers	No
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	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 LOAN

(Rs. In Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
Short term borrowings
From directors	0.516	0.011
From related parties	1.609	0.000
Total	2.125	0.011

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10168221	31/10/2008	1,500,000.00	STATE BANK OF MYSORE	MAHIM BRANCH.6, 7 KARMABHOMI, MORI ROAD, MAHIM WEST, MUMBAI, MAHARASHTRA - 400016, INDIA	A54603527
2	90160278	31/12/2012 *	60,000,000.00	STATE BANK OF MYSORE	MAHIM BRANCH 6, 7 KARMABHOMI, MORI ROAD, MAHIM WEST, MUMBAI, MAHARASHTRA - 400016, INDIA	B68716935

* Date of charge modification

Fixed Assets:

· Land

· Factory Building

· Delivery Van

· Computer

· Printer

· Furniture and Fixture

· Machinery

· Motor Van

· Office Equipment

· Air Conditioner

· Telephone

· Typewriter

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. 61.28
UK Pound	1	Rs. 99.02
Euro	1	Rs. 83.80

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		26

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.