MIRA INFORM REPORT

Report Date :

03.09.2013

IDENTIFICATION DETAILS

Name :	YOGASHRI HEAVY ENGINEERING PRIVATE LIMITED
Registered Office :	B-17, 1^st Main Road, Hiruvangada Nagar, Ambattur, Chennai-600053, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	15.06.1994
Com. Reg. No.:	18-027799
Capital Investment / Paid-up Capital :	Rs.20.974 Millions
CIN No.: [Company Identification No.]	U28920TN1994PTC027799
IEC No.:	0495024830
Central Sales Tax :	448189 [Dated 27.06.1994]
Tin No.:	33093320546 [Dated 01.01.2007]
State Sales Tax :	3320546 [Area Code No. 173]
ECC. No.:	AAACY0929MXM002
PAN No.: [Permanent Account No.]	AAACY0929M
Service Tax No.:	AAACY0929MST001
Income Tax No. :	AAACY0929M
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the business of Manufacturing of Fabrication Heavy Vessels and Structural Works.
No. of Employees :	64 [In Office 10 and In Factory 54] Approximately

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The reserves of the company appear to be low. Trade relations are 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 – 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	CRISIL
Rating	BB – [Long Term]
Rating Explanation	Moderate risk of default.
Date	19.04.2012

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. K.R. Anandraj
Designation :	Director
Contact No.:	91-9443746645
Date :	02.09.2013

LOCATIONS

Registered / Corporate Office :	B-17, 1^st Main Road, Hiruvangada Nagar, Ambattur, Chennai-600053, Tamilnadu, India
Tel. No.:	Not Available
Mobile No.:	91-9443746645 [Mr. K.R. Anandraj]
Fax No.:	Not Available
E-Mail :	yogashri@sify.com
Website :	http://www.yogashri.net http://www.yogashri.com
Area :	252008 sq. ft.
Location :	Leased
Factory :	No. 90 and 91, SIPCOT Industrial Complex, Hosur-635126, Tamilnadu, India
Tel. No.:	91-4344-276202/275141
Fax No.:	91-4344-277208
Area :	252008 sq. ft.
Location :	Leased

DIRECTORS

AS ON 30.09.2012

Name :

Mr. Karttatipalayam Rangaswamy Ramaswamy

Designation :

Chairman

Address :

15/B-17, First Main Road, Thiruvenkada Nagar, Chennai-600053, Tamilnadu, India

Date of Birth/Age :

65 Years

Qualification :

DME

Experience :

47 Years

Date of Appointment :

15.06.1994

Din No.:

00369956

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	Company/ LLP Status	Defaulting status
1	U27200TN1985PTC012401	ADI SAKTHI FABRICATORS P LIMITED	Managing director	23/11/1985	23/11/1985	Active	NO
2	U29309TN1989PTC016852	K R R ENGINEERING PRIVATE LIMITED	Managing director	09/02/1989	09/02/1989	Active	NO
3	U28920TN1994PTC027799	YOGASHRI HEAVY ENGINEERING PRIVATE LIMITED	Director	15/06/1994	15/06/1994	Active	NO

Name :

Mr. Ramaswamy Pushparaj

Designation :

Managing Director

Address :

Plot No. 149, SIPCOT Housing Colony, Opposite Lal, Hosur-635126, Tamilnadu, India

Date of Birth/Age :

51 Years

Qualification :

DME

Experience :

32 Years

Date of Appointment :

30.09.1996

Din No.:

02382508

Name :

Mrs. Pushparaj Jayanthi

Designation :

Director

Address :

Plot No. 149, SIPCOT Housing Colony, Opposite Lal, Hosur-635126, Tamilnadu, India

Date of Birth/Age :

39 Years

Qualification :

DCA

Experience :

15 Years

Date of Appointment :

15.06.1994

Din No.:

02383279

Name :

Mr. K.R. Anandraj

Designation :

Whole Time Director

Address :

Plot No. 1, SIPCOT Housing Colony, Opposite Lal, Hosur-635126, Tamilnadu, India

Date of Birth/Age :

49 Years

Qualification :

B. Com

Experience :

28 Years

Date of Appointment :

30.09.1996

Din No.:

00530668

Name :

Mrs. A. Sasikalamani

Designation :

Whole Time Director

Address :

Plot No. 1, SIPCOT Housing Colony, Opposite Lal, Hosur-635126, Tamilnadu, India

Date of Birth/Age :

45 Years

Qualification :

B.A.

Experience :

24 Years

Date of Appointment :

30.09.1996

Din No.:

00530678

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2012

Names of Shareholders	No. of Shares
Karttatipalayam Rangaswamy Ramaswamy	524337
K.R. Anandraj	524337
A. Sasikalamani	262169
Ramaswamy Pushparaj	524337
Pushparaj Jayanthi	262170
TOTAL	2097350

AS ON 30.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in the business of Manufacturing of Fabrication Heavy Vessels and Structural Works.
Terms :
Selling :	Credit [60 Days] / Others
Purchasing :	L/C / Cash and Credit / Others

PRODUCTION STATUS [AS ON 31.03.2013]

Installed capacity

1000 Ton to 1500 Ton/Year

GENERAL INFORMATION

Customers :

End Users

• Eid Parry (India) Limited
• Tanfac Industries Limited
• Nepc Micon Limited
• Manali Petrochemical Limited
• Titanium Equipment And Anode Manufacturing Company Limited
• Penta Four Products Limited
• Ion Exchange (India) Limited
• Carborundum Universal Limited
• Southern Structurals Limited
• S And S Industries And Enterprises
• Beardsell Satec Limited
• John Fowler India Limited
• Larsen and Toubro Limited
• Krupp Industries (India) Limited
• Bharat Heavy Electricals Limited
• Webb India Limited

No. of Employees :

64 [In Office 10 and In Factory 54] Approximately

Bankers :

State Bank of Mysore, MM Reddy Complex, Hosur-635109, Tamilnadu, India

Facilities :

Secured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Long Term Borrowings
From Banks - Term Loan - I - SBM Indian Rupee Term Loans From Banks	0.000	1.800
From Banks - Term Loan - II -SBM Indian Rupee Term Loans From Banks	1.182	3.184
From Banks - SIDBI - I - Term Loan Indian Rupee Term Loans From Banks	0.000	0.645
From Banks - SIDBI - III - Term Loan Indian Rupee Term Loans From Banks	0.719	1.140
From Banks - Vehicle Loan - SBM Indian Rupee Term Loans From Banks	0.000	0.191
Short Term Borrowings
Form Banks	43.455	49.267
TOTAL	45.356	56.227

Banking Relations :	--
Auditors :
Name :	M. Krishna Rao and Company Chartered Accountants
Address :	No. A41/12, TNHB, Bagalur Road, Hosur-635109, Tamilnadu, India
Tel. No.:	91-4344-244536/244753
Mobile No.:	91-9362310022
E-Mail :	mkrao.co@gmail.com
PAN No:	ADKPK9483E

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs.25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2097350	Equity Shares	Rs.10/- each	Rs.20.974 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	20.974	20.974	20.974
(b) Reserves & Surplus	13.227	11.423	9.596
(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)	34.201	32.397	30.570
(3) Non-Current Liabilities
(a) long-term borrowings	1.901	6.960	6.082
(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)	1.901	6.960	6.082
(4) Current Liabilities
(a) Short term borrowings	60.292	66.666	31.474
(b) Trade payables	26.865	21.530	24.637
(c) Other current liabilities	18.058	20.948	10.559
(d) Short-term provisions	0.435	0.435	0.395
Total Current Liabilities (4)	105.650	109.579	67.065
TOTAL	141.752	148.936	103.717
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	49.631	51.861	39.945
(ii) Intangible Assets	0.000	0.000	0.000
(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	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.290	0.157	0.150
(e) Other Non-current assets	0.005	0.006	0.007
Total Non-Current Assets	49.926	52.024	40.102
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	48.086	54.925	49.200
(c) Trade receivables	36.585	36.292	7.393
(d) Cash and cash equivalents	0.385	0.068	0.092
(e) Short-term loans and advances	6.770	5.627	6.930
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	91.826	96.912	63.615
TOTAL	141.752	148.936	103.717

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	127.272	126.635	81.566
		Other Income	0.563	0.291	0.000
		TOTAL (A)	127.835	126.926	81.566
Less	EXPENSES
		Cost of Material Consumed	78.306	85.261	77.376
		Employee Benefits Expenses	4.377	4.463	2.871
		Other Expenses	31.225	28.529	14.948
		Changes in Inventories of Finished Goods and Traded Goods	0.310	(5.800)	(23.225)
		TOTAL (B)	114.218	112.453	71.970
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		13.617	14.473	9.596
Less	FINANCIAL EXPENSES (D)		7.840	8.679	4.540
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5.777	5.794	5.056
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.537	3.533	3.001
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		2.240	2.261	2.055
Less	TAX (H)		0.435	0.435	0.395
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		1.805	1.826	1.660
	EARNINGS IN FOREIGN CURRENCY		0.000	0.000	0.000
	IMPORTS		0.000	0.000	0.000
	Earnings / (Loss) Per Share (Rs.)		0.86	0.87	0.79

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.41	1.44	2.04
Net Profit Margin (PBT/Sales)	(%)	1.76	1.79	2.52
Return on Total Assets (PBT/Total Assets}	(%)	1.58	1.52	1.98
Return on Investment (ROI) (PBT/Networth)		0.07	0.07	0.07
Debt Equity Ratio (Total Debt/Networth)		1.82	2.27	1.23
Current Ratio (Current Asset/Current Liability)		0.87	0.88	0.95

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	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	No
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)	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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10274795	24/03/2011	2,000,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	643/1D, RKG MANOR, FIRST FLOOR, NH-7, BANGALORE ROAD, HOSUR - 635109, TAMILNADU, INDIA	B08945412
2	10267203	21/10/2009	520,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	643/1D, RKG MANOR, FIRST FLOOR, NH-7, BANGALORE ROAD, HOSUR - 635109, TAMILNADU, INDIA	A90677980
3	10200013	28/08/2008	3,225,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	643/1D, RKG MANOR, FIRST FLOOR, NH-7, BANGALORE ROAD, HOSUR - 635109, TAMILNADU, INDIA	A49129646
4	10016442	14/07/2006	15,000,000.00	STATE BANK OF MYSORE	MM REDDY COMPLEX, OLD BANGALORE ROAD, HOSUR, HOSUR TAMILNADU - 635109, INDIA	A02879401
5	90295078	18/07/2012 *	64,900,000.00	STATE BANK OF MYSORE	MM REDDY COMPLEX, OLD BANGALORE ROAD, HOSUR, HOSUR TAMILNADU - 635109, INDIA	B44774685
* Date of charge modification

Unsecured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Short Term Borrowings
From Others
Loans From Related Parties Cash Credit From Bank Carry Interest @ 14.40% p.a. and it is secured by way of hypothecation of land, building, plant and machinery and receivables	16.837	17.399
TOTAL	16.837	17.399

PROFILE:

Subject is situated in 5.78 acres in the heart of SIPCOT Industrial Complex, Hosur-635126. This Company was registered in the year 1984 in the name of Fabline Industries and it has been taken over by them in the year 1994 and named as 'YOGASHRI HEAVY ENGINEERING PRIVATE LIMITED'.

COMPANY OVERVIEW:

Subject was incorporated on 15^th June 1994 as a private limited company with its registered office at Hosur. The company is a 9001:2008 ISO certified and is engaged in the business of manufacturing fabrication heavy vessels and structural works.

FIXED ASSETS:

• Land
• Building
• Plant and Machinery
• Electrical Installation
• Computer Software
• Tools and Installments
• Furniture and Fixtures
• Office Equipments
• 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.65.86
UK Pound	1	Rs.102.52
Euro	1	Rs.87.05

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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	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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		36

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.