MIRA INFORM REPORT

Report Date :

18.08.2014

IDENTIFICATION DETAILS

Name :	HARJI ENGINEERING WORKS PRIVATE LIMITED
Registered Office :	7, Aravali Shoping And Office Complex, Alaknanda, New Delhi - 110019
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	27.12.1982
Com. Reg. No.:	11-014899
Capital Investment / Paid-up Capital :	Rs.4.423 Millions
CIN No.: [Company Identification No.]	U74899DL1982PTC014899
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in Developing Infrastructure Projects.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 372000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well-established company having satisfactory track record. The company possesses an acceptable financial profile marked by adequate net worth base along with slightly stretched working capital cycle. Management has witnessed a healthy revenue profile and margins during FY13, resulting into comfortable cash balance. Trade relations are fair. Business is active. Payment terms are reported as usually correct. In view of experienced management and reputed clientele, 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

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 31-03-2014.

INFORMATION DENIED BY

Name :	Mr. Anil Kumar
Designation :	Account Manager
Contact No.:	91-11-26187385
Date :	14.08.2014

LOCATIONS

Registered Office :	7, Aravali Shoping And Office Complex, Alaknanda, New Delhi – 110019, India
Tel. No. :	91-11-26187385 / 26026636 / 26035226
Fax No. :	91-11-26187385
E-Mail :	praikhy@rprpca.com vcan@rprpca.com mail@harji.in hewpl@yahoo.com
Website :	www.harji.in
Factory :	A-17, DLF Industrial Area, Faridabad, Haryana, India

DIRECTORS

As on 30.09.2013

Name :

Mr. Gian Singh

Designation :

Managing Director

Address :

S-569, Greater Kailash II, New Delhi, India

Date of Birth/Age :

01.01.1942

Date of Appointment :

29.12.1982

DIN No. :

00116121

Name :

Ms. Jasleen Kaur

Designation :

Director

Address :

S-569, Greater Kailash II, New Delhi, India

Date of Birth/Age :

10.02.1975

Date of Appointment :

01.03.2001

DIN No. :

00116320

Name :

Mr. Harbhej Singh

Designation :

Director

Address :

S-569, Greater Kailash II, New Delhi, India

Date of Birth/Age :

20.10.1977

Date of Appointment :

15.11.2008

DIN No. :

02226264

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	U74899DL1982PTC014899	HARJI ENGINEERING WORKS PRIVATE LIMITED	Director	15/11/2008	15/11/2008	-	Active	NO
2	U45203DL2012PTC243810	NaturalCrete Infrastructure India Private Limited	Director	18/10/2012	18/10/2012	-	Active	NO

Name :

Mr. Ravinderjit Singh Gill

Designation :

Director

Address :

S-569, Greater Kailash II, New Delhi, India

Date of Birth/Age :

10.01.1975

Date of Appointment :

01.03.2001

DIN No. :

02389680

Name :

Mr. Amardeep Kaur

Designation :

Director

Address :

S-569, Greater Kailash II, New Delhi, India

Date of Birth/Age :

21.01.1978

Date of Appointment :

01.05.2012

DIN No. :

05315142

KEY EXECUTIVES

Name :	Mr. Anil Kumar
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares	%age
Gian Singh	6690	15.13
Hardeep Kaur	25675	58.06
Ravinderjit Singh Gill	1250	2.83
Harbhej Singh	210	0.47
Gian Singh And Sons (HUF), India	6400	14.47
VIP Loasing and Finance, India	1000	2.26
Excel Infortech Limited, India	3000	6.78
Total	44225	100.00

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	9.00
Directors or relatives of Directors	18.00
Other top fifty shareholders	73.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in Developing Infrastructure Projects.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

Punjab and Sind Bank, Guru Nanak Market, Hemkunt Colony, New Delhi – 110048, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Mobilisation Advance (Secured against Bank Guarantee)	17.500
SHORT TERM BORROWINGS
Punjab and Sind Bank current account overdraft	47.346
Punjab and Sind Bank – Cash Credit	10.891
Punjab and Sind Bank Overdraft	2.041
Total	77.778

Banking Relations :	--
Financial Institution :	Bajaj Finance Limited, Akurdi, Pune – 411035, Maharashtra, India
Auditors :
Name :	RPRP and Associates Chartered Accountants
Address :	327 Anshal Chamber-II, 6, Bhikaji Cama Place, New Delhi – 110066, India
Tel. No. :	91-11-26187385 / 26187635
Fax No. :	91-11-6187385
PAN No. :	AAAFR6215L

CAPITAL STRUCTURE

As on 31.03.2013

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
44225	Equity Shares	Rs.100/- each	Rs.4.423 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	4.423	4.423	4.423
(b) Reserves & Surplus	87.296	69.299	58.781
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	1.300	1.300	0.200
Total Shareholders’ Funds (1) + (2)	93.019	75.022	63.404
(3) Non-Current Liabilities
(a) long-term borrowings	33.469	21.890	74.338
(b) Deferred tax liabilities (Net)	0.937	0.859	0.752
(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)	34.406	22.749	75.090
(4) Current Liabilities
(a) Short term borrowings	60.278	45.411	64.954
(b) Trade payables	132.561	72.924	45.346
(c) Other current liabilities	43.484	82.700	36.495
(d) Short-term provisions	21.051	7.741	10.385
Total Current Liabilities (4)	257.374	208.776	157.180
TOTAL	384.799	306.547	295.674
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	59.544	59.375	62.047
(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	0.000	0.000	0.000
(e) Other Non-current assets	2.893	3.027	1.965
Total Non-Current Assets	62.437	62.402	64.012
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	10.711	7.873	12.646
(c) Trade receivables	191.609	134.725	131.357
(d) Cash and cash equivalents	89.977	78.506	66.340
(e) Short-term loans and advances	30.065	23.041	21.319
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	322.362	244.145	231.662
TOTAL	384.799	306.547	295.674

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	666.504	644.831
		Other Income	7.822	10.038
		TOTAL	674.326	654.869	445.188
Less	EXPENSES
		Direct Expenses	482.524	490.082
		Establishement Expenses	53.736	56.063
		Administrative Expenses	21.365	19.936
		Sales Tax	8.907	5.566
		Auditors Remunaration	0.000	0.193
		Services Tax	53.576	27.054
		Fines and Penalty Services Tax	0.000	0.120
		Increases / (Decrease) in Material in Hand	(0.744)	(0.673)
		Increases / (Decrease) in Work Done	(2.094)	5.446
		TOTAL	617.270	603.787	429.722
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		57.056	51.082	(Including Financial and Depreciation)
Less	FINANCIAL EXPENSES		19.316	15.295
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		37.740	35.787
Less/ Add	DEPRECIATION/ AMORTISATION		10.215	11.763
	PROFIT/ (LOSS) BEFORE TAX		27.525	24.024	15.466
Less	TAX		9.451	7.742	5.322
	PROFIT/ (LOSS) AFTER TAX		18.074	16.282	10.144
	Earnings / (Loss) Per Share (Rs.)		408.68	368.16	229.37

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	2.68	2.49	2.28
Net Profit Margin (PBT/Sales)	(%)	4.13	3.73	NA
Return on Total Assets (PBT/Total Assets}	(%)	7.15	7.84	5.23
Return on Investment (ROI) (PBT/Networth)		0.30	0.32	0.24
Debt Equity Ratio (Total Debt/Networth)		1.01	0.90	2.20
Current Ratio (Current Asset/Current Liability)		1.25	1.17	1.47

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	4.423	4.423	4.423
Reserves & Surplus	58.781	69.299	87.296
Share Application money pending allotment	0.200	1.300	1.300
Net worth	63.404	75.022	93.019
long-term borrowings	74.338	21.890	33.469
Short term borrowings	64.954	45.411	60.278
Total borrowings	139.292	67.301	93.747
Debt/Equity ratio	2.197	0.897	1.008

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	445.188	654.869	674.326
		47.099	2.971

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	445.188	654.869	674.326
Profit	10.144	16.282	18.074
	2.28%	2.49%	2.68%

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	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	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	No
34]	External Agency Rating, if available	No

NOTE:

The registered address of the company has been shifted from S-185, Greater Kailash, Part – II, New Delhi – 110048, India to the present address w.e.f 03.10.2009

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Bajaj Finance Limited	2.103
ICICI Bank Loans	0.073
ICICI Bank Limited	0.913
ICICI Bank Limited	0.380
ICICI Bank - 815	12.500
Total	15.969

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10369811	20/06/2012	1,544,768.00	BAJAJ FINANCE LIMITED	AKURDI PUNE-, Pune, Maharashtra - 411035, INDIA	B45412616
2	10271666	21/02/2011	2,823,000.00	BAJAJ FINANCE LIMITED	AKURDI PUNE-, Pune, Maharashtra - 411035, INDIA	B07886856
3	10128965	24/10/2008	728,840.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	A50319995
4	80051205	19/01/2013 *	660,100,000.00	punjab and sind bank	GURU NANAK MARKET, HEMKUNT COLONY, NEW DELHI, Delhi - 110048, INDIA	B68429984

* Date of charge modification

FIXED ASSETS

œ Land

œ Building

œ Plant and Machinery

œ Office Equipment

œ Furniture and Fixture

œ Vehicles

œ Computer

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.61.06
UK Pound	1	Rs.101.84
Euro	1	Rs.81.56

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	SUB
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--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	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		46

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.