MIRA INFORM REPORT

Report Date :

03.03.2014

IDENTIFICATION DETAILS

Name :	ISGEC HITACHI ZOSEN LIMITED
Registered Office :	Radaur Road, Yamuna Nagar – 135001, Haryana
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	21.03.2012
Com. Reg. No.:	05-045430
Capital Investment / Paid-up Capital :	Rs.1000.000 Millions
CIN No.: [Company Identification No.]	U28123HR2012PLC045430
TAN No.: [Tax Deduction & Collection Account No.]	RTKI01650F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Heavy Engineering Items.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 4200000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has achieved a sizeable turnover from its first year of operations however the company is still progressing, reserves of the company’s are low. Trade relations are reported to be improving. Business is active. Payment terms are reported to be 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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 worst is over for India’s economy with gross domestic product likely to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s Analytics. Concerns over the rupee and current account deficit are under control, said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up from the estimated 4.8 % for 2013/14.  Total economic growth, infrastructure bottlenecks and lack of transparency and consistency in foreign direct investment policies seem to have taken a toll on India’s attractiveness as an investment destination, says an Ernst & Young survey.  Projects with FDI component fell 16.4 % across the globe in 2012 from the previous year.  The drop in India was steeper at 21 %. State run carrier Air India is doling out free tickets to its 24000 employees, even as it expects to incur a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn. 550000 number of jobs generated across India in 2013, a fall of 0.4 % as compared to with a year earlier. The National  Capital Region has a one-fourth share in total jobs created, according to a study by industry lobby group Assochem, Banks, real estate, automobile and telecommunications sectors are showing a rise of job creation. $ 805 mn investments by venture capital firms in India during 2013, registering a drop of about 18 % over the previous year. The Information Technology and IT-Enabled  Services Industry retained its status as the favourable venture capital investors in 2013. Pakistan has temporarily banned gold imports for the second time in six months, as it tries to stem smuggling into India. India’s import duty on gold is 10 % and curbs on purchases have dried up legal imports into what used to be the world’s biggest bullion buyers. The World Gold Council puts the amount smuggled into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed bank deposits estimated to be about Rs 35000 mn be used for education and awareness among depositors.  According to the plan, deposits that have not been claimed for at least 10 years will be transferred to the scheme.

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. Shailesh Kumar
Designation :	Head of Accounts
Contact No.:	91-2641-305530
Date :	27.02.2014

LOCATIONS

Registered Office :	Radaur Road, Yamuna Nagar – 135001, Haryana, India
Tel. No.:	91-1732-307614/ 307296 / 2641-305530 / 307228
Fax No.:	91-1732-250991
E-Mail :	jkchowdhery@isgec.com moriya@hitachizosen.co.jp takenaka@hitachizosen.co.jp matsuwake@hitachizosen.co.jp info@igechitachizosen.com gulati@isgec.com jaidka@isgec.com apuri@isgec.com yamunashish@rediffmail.com
Website :	www.isgec.com
Location :	Owned
Factory :	13-B, GIDC, Industrial Estate, Dahej Bharuch, Ahmedabad – 392130, Gujarat, India
Tel. No.:	91-2641-305507
Fax No.:	91-2641-305500
E-Mail :	info@isgechitachizosen.com

DIRECTORS

AS ON 18.09.2013

Name :

Mr. Sanjay Satya Pal Gulati

Designation :

Managing Director

Address :

H. No. 114/1, Sugar Mill Colony, Yamunanagar – 135 001, Haryana, India

Date of Birth/Age :

17.02.1968

Date of Appointment :

13.04.2012

DIN No.:

05201178

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	U28123HR2012PLC045430	ISGEC Hitachi Zosen Limited	Managing director	13/04/2012	21/03/2012	-	Active	NO

Name :

Mr. Aditya Ranjit Puri

Designation :

Director

Address :

D-860, New Friends Colony, New Delhi – 110 065, India

Date of Birth/Age :

04.12.1967

Date of Appointment :

21.03.2012

DIN No.:

00052534

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	U52109DL1986PLC025908	ISGEC COVEMA LIMITED.	Director	23/01/1993	23/01/1993	-	Active	NO
2	U51909DL1996PLC076750	ISGEC EXPORTS LIMITED.	Director	30/04/1996	30/04/1996	-	Active	NO
3	L23423HR1933PLC000097	ISGEC HEAVY ENGINEERING LIMITED	Managing director	01/05/2011	30/04/1996	-	Active	NO
4	L24101HR1954PLC001837	YAMUNA SYNDICATE LIMITED	Director	23/11/1996	23/11/1996	-	Active	NO
5	U01115HR2000PLC034519	SARASWATI SUGAR MILLS LIMITED	Managing director	01/12/2008	20/07/2000	-	Active	NO
6	L35999HR1998PLC033943	JULLUNDUR MOTOR AGENCY (DELHI) LTD (TRS. CO.-DELHI TO HARANA)	Director	28/05/2005	28/05/2005	-	Active	NO
7	U51909DL1991PLC042645	JMA RANE MARKETING LIMITED	Director	24/06/2005	24/06/2005	-	Active	NO
8	U29299HR2006PTC035983	HACO MACHINERY PRIVATE LIMITED	Director	02/01/2006	02/01/2006	24/11/2010	Active	NO
9	U29248HR2007PLC036695	ISGEC ENGINEERING AND PROJECTS LIMITED	Director	22/03/2007	22/03/2007	-	Active	NO
10	U28123HR2012PLC045430	ISGEC Hitachi Zosen Limited	Director	21/03/2012	21/03/2012	-	Active	NO

Name :

Mr. Ravi Rattan Chand Jaidka

Designation :

Director

Address :

119/2, Sugar Mills Colony , Yamunanagar – 135 001, Haryana, India

Date of Birth/Age :

15.08.1946

Date of Appointment :

21.03.2012

DIN No.:

00322627

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	U29299HR2006PTC035983	HACO MACHINERY PRIVATE LIMITED	Director	18/01/2006	18/01/2006	24/11/2010	Active	NO
2	U28123HR2012PLC045430	ISGEC Hitachi Zosen Limited	Director	21/03/2012	21/03/2012	-	Active	NO

Name :

Mr. Hisao Tomisauro Matsuwake

Designation :

Director

Address :

30-30-2302, Nanko-Kita 1-chome, Suminoe-ku, Osaka pref. Osaka city 5590034

Date of Birth/Age :

16.07.1949

Date of Appointment :

21.03.2012

DIN No.:

05200900

Name :

Mr. Toshiya Shunsuke Takenaka

Designation :

Director

Address :

3-7-2, Higashiyakata Kumamoto Pref Arao City 8640042

Date of Birth/Age :

20.01.1973

Date of Appointment :

21.03.2012

DIN No.:

05200914

Name :

Mr. Eiji Masumi Moriya

Designation :

Director

Address :

D-173, Westend Heights, DLF City, Phase – IV, Gurgaon – 122002, Haryana, India

Date of Birth/Age :

25.09.1958

Date of Appointment :

21.03.2012

DIN No.:

03536027

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	U74900HR2011FTC042841	Hitachi Zosen India Private Limited	Managing director	27/09/2012	11/05/2011	-	Active	NO
2	U28123HR2012PLC045430	ISGEC Hitachi Zosen Limited	Director	21/03/2012	21/03/2012	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Ashish Kumar Satya
Designation :	Secretary
Address :	1512-B, Modern Colony, Yamuna Nagar – 135 001, Haryana, India
Date of Birth/Age :	21.08.1976
Date of Appointment :	13.04.2012
PAN No.:	ARCPK7571P

Name :	Mr. Shailesh Kumar
Designation :	Head of Accounts

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 18.09.2013

Names of Shareholders	No. of Shares
Isgec Heavy Engineering Limited, India	50999997
Aditya Ranjit Puri	1
Ravi Rattan Chand Jaidka	1
Sanjay Satya Pal Gulati	1
Hitachi Zosen Corporation, Japan	48999997
Hisao Tomisauro Matsuwake	1
Toshiya Shunsuke Takenaka	1
Eiji Masumi Moriya	1
Total	100000000

AS ON 18.09.2013

Equity Share Breakup

Category	Percentage
Bodies corporate	99.99
Directors or relatives of Directors	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Heavy Engineering Items.
Exports :
Products :	Finished Goods
Countries :	· Japan · Gulf Countries · Marico · USA · Kazakhstan · Uzbekistan
Imports :
Products :	Raw Material
Countries :	· Korea · Belgium · China · Italy
Terms :
Selling :	L/C and Credit
Purchasing :	L/C and Credit

GENERAL INFORMATION

No. of Employees :	500 (Approximately)
Bankers :	· State Bank of India · HDFC Bank, Janpath, New Delhi – 110001, India · Standard Chartered Bank, (Acting as an Security Agent) C D U, Narain Manzil, 23 Barakhamba Road, New Delhi - 110001,Delhi, India

Banking Relations :	--
Auditors :	S.S. Kathani and Mehta Company Chartered Accountants
Address :	Delhi
Holding Company:	Isgec Heavy Engineering Limited, India CIN No.: L23423HR1933PLC000097
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives:	Hitachi Zosen Corporation

CAPITAL STRUCTURE

As On 18.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
110000000	Equity Shares	Rs.10/- each	Rs.1100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100000000	Equity Shares	Rs.10/- each	Rs.1000.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1000.000
(b) Reserves & Surplus	33.182
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	1033.182
(3) Non-Current Liabilities
(a) long-term borrowings	0.000
(b) Deferred tax liabilities (Net)	0.000
(c) Other long term liabilities	18.053
(d) long-term provisions	13.382
Total Non-current Liabilities (3)	31.435
(4) Current Liabilities
(a) Short term borrowings	0.000
(b) Trade payables	42.835
(c) Other current liabilities	258.141
(d) Short-term provisions	6.349
Total Current Liabilities (4)	307.325
TOTAL	1371.942
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	6.834
(ii) Intangible Assets	1.150
(iii) Capital work-in-progress	2.598
(iv) Intangible assets under development	0.000
(b) Non-current Investments	0.000
(c) Deferred tax assets (net)	3.107
(d) Long-term Loan and Advances	1.691
(e) Other Non-current assets	3.410
Total Non-Current Assets	18.790
(2) Current assets
(a) Current investments	0.000
(b) Inventories	293.676
(c) Trade receivables	74.076
(d) Cash and cash equivalents	873.686
(e) Short-term loans and advances	92.894
(f) Other current assets	18.820
Total Current Assets	1353.152
TOTAL	1371.942

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013
	SALES
		TOTAL (Approximately)	700.000
	EXPENSES
		TOTAL	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		50.464
Less/ Add	DEPRECIATION/ AMORTISATION		1.345
	PROFIT BEFORE TAX		49.119
Less	TAX		15.937
	PROFIT AFTER TAX		33.182
	APPROPRIATIONS
	Transfer to General Reserve		Nil
	BALANCE CARRIED TO THE B/S		33.182
	EARNINGS IN FOREIGN CURRENCY		Nil

Expected Sales (2013-2014): Rs.1000.000 Millions

The above information has been parted by Mr. Shailesh Kumar (Head of Accounts)

KEY RATIOS

PARTICULARS		31.03.2013
Return on Total Assets (PBT/Total Assets}	(%)	3.62
Return on Investment (ROI) (PBT/Networth)		0.05
Debt Equity Ratio (Total Debt/Networth)		NA
Current Ratio (Current Asset/Current Liability)		4.40

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 one years	Yes
12]	Profitability for last one 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	Yes
17]	Major suppliers	No
18]	Major customers	No
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	No
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	No

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10476747	16/01/2014	375,000,000.00	Standard Chartered Bank	(Acting as an Security Agent) C D U, NARAIN MANZI  L, 23 BARAKHAMBA ROAD, NEW DELHI, Delhi - 110001,  INDIA	B96008032
2	10471046	10/01/2014	250,000,000.00	Standard Chartered Bank	CREDIT DOCUMENTATION UNIT, NARAIN MANZIL, 23 BARA  KHAMBA ROAD, NEW DELHI, Delhi - 110001, INDIA	B93836203
3	10471090	10/01/2014	375,000,000.00	Standard Chartered Bank	(Acting as an Security Agent) C D U, NARAIN MANZI  L, 23 BARAKHAMBA ROAD, NEW DELHI, Delhi - 110001,  INDIA	B93850063
4	10424828	30/04/2013	600,000,000.00	STATE BANK OF PATIALA	COMMERCIAL BRANCH,, CHANDRALOK BUILDING, 36, JANP  ATH ,, NEW DELHI, Delhi - 110001, INDIA	B74812363

OPERATIONS:

This was the Company’s first year of operations. As jobs manufactured by the company have a long cycle, the revenue was lower on account of sale of equipments.

The Company, however, was busy in doing job work for the orders booked by ISGEC Heavy Engineering Limited before incorporation of the Joint Venture Company. One notable order was for an Ethylene Oxide Reactor from Reliance Industries which was manufactured and dispatched successfully during the year under report.

During the first year of its operations the Company had been able to book a lot of large value orders for sophisticated equipments from prestigious customers. These orders are under execution.

Many important customers visited the Plant of the Company at Dahej and approved it for the manufacture of their Equipments.

Under the guidance of Isgec Heavy Engineering Limited and Hitachi Zosen Corporation, Japan, the Company has implemented various improvement initiatives in the Shops and also in Procurement and Project Management activities.

The business prospects for the current year ending March 31, 2014 are good and the Company is expected to book good orders both from Indian and foreign customers.

In view of good business prospects, the Company has formulated an expansion scheme for addition of various equipments which will increase the production capacity of the Plant from 8,000 M.T. per year to 13,000 M.T. per year. The expansion plan is likely to be operational by June 2014.

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.61.94
UK Pound	1	Rs.103.31
Euro	1	Rs.85.11

INFORMATION DETAILS

Information Gathered by :	PRT
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		31

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.