MIRA INFORM REPORT

Report Date :

19.07.2014

IDENTIFICATION DETAILS

Name :	DEV RAJ HI-TECH MACHINES LIMITED
Registered Office :	Industrial Area, Ferozpur – 152002, Punjab,
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	13.07.1995
Com. Reg. No.:	016774
Capital Investment / Paid-up Capital :	Rs.9.575 Millions
CIN No.: [Company Identification No.]	U17219PB1995PLC016774
TAN No.: [Tax Deduction & Collection Account No.]	AMRD11078E
Legal Form :	A closely held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Rice Machinery, Paddy Cleaners, Parboiling, Rice Dryers, Rice Whiteners, Rice Silky, Polishers, Floor Mills, Rice Mill Plant Moterised rice mill plants etc.
No. of Employees :	Information denied by management.

RATING & COMMENTS

MIRA’s Rating :

B ( 28)

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

Maximum Credit Limit :	USD 79000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The rating is constrained on account of company’s moderate financial risk profile and thin profitability levels of the company. However, trade relations are fair. Business is active. Payments terms are slow but correct. The company can be considered for business dealing 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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

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 PARTED BY (GENERAL DETAILS)

Name :	Mr. Rohit Gupta
Designation :	Director
Contact No.:	91-9814030800
Date :	16.07.2014

LOCATIONS

Registered Office/Factory/Head Office :	Industrial Development Colony Area, Ferozpur City, Ferozpur – 152002, Punjab, India
Tel. No.:	91-1632-220467
Mobile No.:	91-9814030800 (Mr. Rohit Gupta)
Fax No.:	91-1632-220567
E-Mail :	rohit@devrajgroup.com
Website :	www.devrajgroup.com
Location :	Owned

DIRECTORS

AS ON 23.08.2013

Name :	Mr. Ram Kumar Gupta
Designation :	Director
Address :	Housing Board Colony, Ferozpur – 152002, Punjab, India
Date of Appointment :	13.07.1995
DIN No:	01609455

Name :	Mrs. Asha Rani
Designation :	Director
Address :	Housing Board Colony, Ferozpur – 152002, Punjab, India
Date of Appointment :	13.07.1995
DIN No:	03007653

Name :

Mr. Rohit Gupta

Designation :

Director

Address :

Housing Board Colony, Ferozpur – 152002, Punjab, India

Date of Appointment :

01.06.1997

DIN No:

01609481

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	U17219PB1995PLC016774	DEV RAJ HI TECH MACHINES LIMITED	Director	01/06/1997	01/06/1997	-	Active	NO
2	U51101WB2008PTC128962	PANCHWATI VINIMAY PRIVATE LIMITED	Director	19/01/2010	19/01/2010	-	Active	NO

Name :	Ms. Anuradha Gupta
Designation :	Director
Address :	Housing Board Colony, Ferozpur – 152002, Punjab, India
Date of Appointment :	31.03.2006
DIN No:	03007671

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

EQUITY SHARE HOLDER AS ON 23.08.2013

Names of Shareholders	No. of Shares
Ravi Kant Gupta	332
Ram Kumar Gupta	151
Kaushlya Devi	151
Anuradha Gupta	61
Asha Rani	104
Rohit Gupta	201
Total	1000

7% NON-CUMULATIVE PREFERENCE SHARE HOLDER AS ON 23.08.2013

Names of Shareholders	No. of Shares
Ram Kumar Gupta	227500
Rohit Gupta	250000
Kaushlya Devi	40000
Anuradha Gupta	90000
Asha Rani	80000
Ravi Kant Gupta	170000
Total	857500

Equity Share Break up (Percentage of Total Equity)

AS ON 23.08.2013

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Rice Machinery, Paddy Cleaners, Parboiling, Rice Dryers, Rice Whiteners, Rice Silky, Polishers, Floor Mills, Rice Mill Plant Moterised rice mill plants etc.

GENERAL INFORMATION

Suppliers :

· Jindal Stainless Steel limited

Customers :

· BCC Infrastructure and Chemical Limited

No. of Employees :

Information denied by management.

Bankers :

· Punjab National Bank, Ferozepur City, Ferozepur City - 152001, Punjab, India

· State Bank of Patiala, Ferozpur City, Ferozpur, Punjab, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long term Borrowing:
Loan From directors	26.621	22.115
Short term Borrowing:
PB, national bank, cash Credit Limit Against Stock and Other movable and Immovable Property of Company	29.779	26.008
Total	56.400	48.123

Banking Relations :	---
Auditors :
Name :	Lal And Associates Chartered Accountant
Address :	Gandhi Road, Opposite Gopal Gaushala, Moga-142001, Punjab, India
Tel No:	91-1636-222788
Mob No:	91-1636-232688
PAN No.:	AADFL0653M

CAPITAL STRUCTURE

AS ON 23.08.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1400	Equity Shares	Rs.1000/- each	Rs.1.400 Millions
860000	Preference Shares	Rs.10/- each	Rs.8.600 Millions
	Total		Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000	Equity Shares	Rs.1000/- each	Rs.1.000 Millions
857500	Preference Shares	Rs.10/- each	Rs.8.575 Millions
	Total		Rs.9.575 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	9.575	9.575
(b) Reserves & Surplus	10.203	9.245
(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)	19.778	18.820
(3) Non-Current Liabilities
(a) long-term borrowings	26.621	22.115
(b) Deferred tax liabilities (Net)	1.459	1.318
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	28.080	23.433
(4) Current Liabilities
(a) Short term borrowings	29.779	26.008
(b) Trade payables	5.203	6.482
(c) Other current liabilities	0.736	0.608
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	35.718	33.098
TOTAL	83.576	75.351
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	20.845	20.449
(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	0.749	0.749
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	21.594	21.198
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	53.413	46.207
(c) Trade receivables	5.701	6.793
(d) Cash and cash equivalents	1.313	0.534
(e) Short-term loans and advances	0.000	0.000
(f) Other current assets	1.555	0.619
Total Current Assets	61.982	54.153
TOTAL	83.576	75.351

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		9.575
2] Share Application Money		0.000
3] Reserves & Surplus		9.030
4] (Accumulated Losses)		0.000
NETWORTH		18.605
LOAN FUNDS
1] Secured Loans		27.353
2] Unsecured Loans		19.609
TOTAL BORROWING		46.962
DEFERRED TAX LIABILITIES		1.445
TOTAL		67.012
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		23.488
Capital work-in-progress		0.000
INVESTMENT		0.749
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	45.832
	Sundry Debtors	7.455
	Cash & Bank Balances	0.818
	Other Current Assets	2.033
	Loans & Advances	0.000
Total Current Assets		56.138
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	12.732
	Other Current Liabilities	0.631
	Provisions	0.000
Total Current Liabilities		13.363
Net Current Assets		42.775
MISCELLANEOUS EXPENSES		0.000
TOTAL		67.012

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	236.994	167.904	131.442
		Other Income	0.354	0.204	0.417
		TOTAL (A)	237.348	168.108	131.859
Less	EXPENSES
		Cost of Materials Consumed	212.877	144.920	117.084
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(1.253)	3.400	(2.629)
		Employees benefits expense	6.983	4.646	3.231
		Power and other factory expenses	0.534	0.479	3.445
		Repair and renewal	4.412	2.725	0.274
		Administrative Expenses	2.137	2.092	1.265
		Miscellaneous Expenses	0.579	0.258	0.119
		TOTAL (B)	226.269	158.520	122.789
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		11.079	9.588	9.070
Less	FINANCIAL EXPENSES (D)		6.589	6.188	5.276
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.490	3.400	3.794
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.056	3.077	3.587
	PROFIT BEFORE TAX (E-F) (G)		1.434	0.323	0.207
Less	TAX (H)		0.477	0.107	0.068
	PROFIT AFTER TAX (G-H) (I)		0.957	0.216	0.139
	Earnings Per Share (Rs.)		957.25	215.69	138.88

Particulars	31.03.2014
Sales Turnover (Approximately)	300.000

The above information has been parted by Mr. Rohit Gupta

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.40	0.13	0.11
Net Profit Margin (PBT/Sales)	(%)	0.61	0.19	0.16
Return on Total Assets (PBT/Total Assets}	(%)	1.72	0.43	0.000
Return on Investment (ROI) (PBT/Networth)		0.07	0.02	0.01
Debt Equity Ratio (Total Debt /Networth)		2.85	2.56	2.52
Current Ratio (Current Asset/Current Liability)		1.74	1.64	4.20

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	9.575	9.575	9.575
Reserves & Surplus	9.030	9.245	10.203
Net worth	18.605	18.820	19.778
long-term borrowings	27.353	22.115	26.621
Short term borrowings	19.609	26.008	29.779
Total borrowings	46.962	48.123	56.400
Debt/Equity ratio	2.524	2.557	2.852

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	131.442	167.904	236.994
		27.740	41.149

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	131.442	167.904	236.994
Profit	0.139	0.216	0.957
	0.11%	0.13%	0.40%

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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	Yes
18]	Major customers	Yes
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	No
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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	No

FINANCIAL RESULT:

The profit and Loss Account of the Company shown a Net Profit amounting to Rs. 0.957 Million as compared to Rs. 0.216 Million in the previous year.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10509021	24/05/2014	935,000.00	PUNJAB NATIONAL BANK	PUNJAB NATIONAL BANK, FEROZEPUR CITY, FEROZEPUR C  ITY, Punjab - 152001, INDIA	C11295862
2	10099891	02/04/2011 *	30,000,000.00	PUNJAB NATIONAL BANK	FEROZEPUR CITY, FEROZEPUR CITY, Punjab - 152001, I  NDIA	B10646016

* Date of charge modification

FIXED ASSETS

· Plant and Machinery

· Computer Software

· Furniture

· Plant

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 records 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.60.33
UK Pound	1	Rs.103.18
Euro	1	Rs.81.58

INFORMATION DETAILS

Information Gathered by :	PDT
Analysis Done by :	KAR
Report Prepared by :	JGT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--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		28

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.