MIRA INFORM REPORT

Report Date :

19.05.2014

IDENTIFICATION DETAILS

Name :	AJAY VALVES PRIVATE LIMITED
Registered Office :	Survey No. 257/ 258, Bhavnagar – Rajkot Road, Sihor - 364240, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	22.08.1980
Com. Reg. No.:	04-003884
Capital Investment / Paid-up Capital :	Rs. 1.644 Millions
CIN No.: [Company Identification No.]	U29120GJ1980PTC003884
TAN No.: [Tax Deduction & Collection Account No.]	AHMA08455G
PAN No.: [Permanent Account No.]	AABCA8191L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Trading of Industrial and Marine Valves in various sizes.
No. of Employees :	30 (Approximately)

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 35000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a small company in its field having moderate track. Its scale of activities are limited. The company possesses a moderate financial profile marked by low networth base. Management has seen a significant dip in its sales volume as well as net profitability during 2013. However, trade relations seems to be fair. Business is active. Payment terms are reported as slow but correct. In view of long standing presence, the subject 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, 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

US investment bank Goldman Sachs has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

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. Paresh Waghela
Designation :	Accounts Manager
Contact No.:	91-278-2425577
Date :	19.05.2014

LOCATIONS

Registered Office/ Factory :	Survey No. 257/ 258, Bhavnagar – Rajkot Road, Sihor - 364240, Gujarat, India
Tel. No.:	91-278-2425577
Fax No.:	91-278-2425577
E-Mail :	info@ajayvalves.in ajayvalves@gmail.com
Website :	http://www.ajayvalves.in
Correspondence Office:	7, Sumtinath Shopping Center, Opposite Jain Derasar, Shastrinagar, Bhavnagar – 364003, Gujarat, India

DIRECTORS

As on: 30.09.2013

Name :

Mr. Laherchand Chhotalal Mehta

Designation :

Director

Address :

89/90, MIG, Shstri Nagar, Bhavnagar – 364003, Gujarat, India

Date of Appointment :

22.08.1980

DIN No.:

02576753

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	U29120GJ1980PTC003884	AJAY VALVES PRIVATE LIMITED	Director	22/08/1980	22/08/1980	-	Active	NO
2	U28112GJ2011PTC065303	AJAY GALVANIZING PRIVATE LIMITED	Director	05/05/2011	05/05/2011	-	Active	NO

Name :

Mr. Pritish Kaileshbhai Mehta

Designation :

Director

Address :

89/90, MIG, Shstri Nagar, Bhavnagar – 364003, Gujarat, India

Date of Birth/Age :

01.11.1986

Date of Appointment :

01.09.2012

DIN No.:

03514339

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	U28112GJ2011PTC065303	AJAY GALVANIZING PRIVATE LIMITED	Director	05/05/2011	05/05/2011	-	Active	NO
2	U29120GJ1980PTC003884	AJAY VALVES PRIVATE LIMITED	Director	29/09/2012	01/09/2012	-	Active	NO

Name :

Mr. Kailesh Laherchand Mehta

Designation :

Director

Address :

89/90, MIG, Shstri Nagar, Bhavnagar – 364003, Gujarat, India

Date of Appointment :

30.09.1992

DIN No.:

01103458

Other Directorship :

.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	U29120GJ1980PTC003884	AJAY VALVES PRIVATE LIMITED	Director	30/09/1992	30/09/1992	-	Active	NO
2	U28112GJ2011PTC065303	AJAY GALVANIZING PRIVATE LIMITED	Director	05/05/2011	05/05/2011	-	Active	NO

Name :

Ms. Swatiben Kaileshkumar Mehta

Designation :

Director

Address :

89/90, MIG, Shstri Nagar, Bhavnagar – 364003, Gujarat, India

Date of Appointment :

11.05.2000

DIN No.:

01103471

KEY EXECUTIVES

Name :	Mr. Paresh Waghela
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2013

Names of Shareholders	No. of Shares
Laherchand C. Mehta	5229
Laherchand C. Mehta – HUF	1402
Indumati Laherchand Mehta	2173
Kailesh Laherchand Mehta	3374
Swati Kailesh Mehta	1772
Kailesh L. Mehta – HUF	890
Pritish Kailesh Mehta	1600
Total	16440

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2013

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing and Trading of Industrial and Marine Valves in various sizes.
Terms :
Selling :	Cash, Cheque, Credit
Purchasing :	Cash, Cheque, Credit

GENERAL INFORMATION

Customers :

Wholesalesr and Retailers

No. of Employees :

30 (Approximately)

Bankers :

· Bank of Baroda, S.S.I. Branch, Madhav Hill, Waghawadi Road, Bhavnagar - 364001, Gujarat, India

· Union Bank, Bhavnagar, Gujarat, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long term borrowings
Bank term loan	2.782	0.000
Short term borrowings
Bank term loan	0.756	0.000
Bank C.C. A/C.	(0.060)	0.000
Total	3.478	0.000

Banking Relations :	--
Auditors :
Name :	P. G. Hemani and Company Chartered Accountants
Address :	Aristo Complex, 2^nd Floor, Near Radha Mandir, Waghawadi Road, Bhavnagar – 364001, Gujarat, India
Tel. No.:	91-278-2423379 / 2426080 / 3001428
Fax No.:	91-278-2423379 / 2426080 / 3001428
E-Mail :	cakrshah@gmail.com
PAN No.:	AAEFP1906A

CAPITAL STRUCTURE

As on: 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs.100/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
16440	Equity Shares	Rs.100/- each	Rs. 1.644 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	1.644	1.644	1.644
(b) Reserves & Surplus	7.172	6.706	5.686
(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)	8.816	8.350	7.330
(3) Non-Current Liabilities
(a) long-term borrowings	5.537	2.244	1.930
(b) Deferred tax liabilities (Net)	0.000	0.000	0.012
(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)	5.537	2.244	1.942
(4) Current Liabilities
(a) Short term borrowings	0.695	0.000	0.000
(b) Trade payables	7.496	11.498	6.593
(c) Other current liabilities	0.769	0.227	0.242
(d) Short-term provisions	0.248	0.483	0.346
Total Current Liabilities (4)	9.208	12.208	7.181
TOTAL	23.561	22.802	16.453
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1.947	2.163	2.273
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	6.671	3.175	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.111	0.111	0.111
(c) Deferred tax assets (net)	0.080	0.071	0.000
(d) Long-term Loan and Advances	0.006	0.024	0.007
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	8.815	5.544	2.391
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1.530	0.551	2.100
(c) Trade receivables	10.372	11.924	9.789
(d) Cash and cash equivalents	1.463	2.505	1.691
(e) Short-term loans and advances	0.935	1.530	0.042
(f) Other current assets	0.446	0.748	0.440
Total Current Assets	14.746	17.258	14.062
TOTAL	23.561	22.802	16.453

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income
		Other Income
		TOTAL (A)	14.316	34.841	NA
Less	EXPENSES
		TOTAL (B)	13.053	32.852	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.263	1.989	NA
Less	FINANCIAL EXPENSES (D)		0.054	0.043	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.209	1.946	1.550
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.448	0.530	0.530
	PROFIT BEFORE TAX (E-F) (G)		0.761	1.416	1.020
Less	TAX (H)		0.294	0.396	0.396
	PROFIT AFTER TAX (G-H) (I)		0.467	1.020	0.624
	Earnings Per Share (Rs.)		28.41	62.04	NA

Particulars	31.03.2014
Sales Turnover (Approximately)	15.000

The above information has been parted by Mr. Paresh Waghela

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	3.26	2.93	NA
Return on Total Assets (PBT/Total Assets}	(%)	4.56	7.28	6.24
Return on Investment (ROI) (PBT/Networth)		0.09	0.17	0.14
Debt Equity Ratio (Total Debt/Networth)		0.71	0.27	0.26
Current Ratio (Current Asset/Current Liability)		1.60	1.41	1.96

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	1.644	1.644	1.644
Reserves & Surplus	5.686	6.706	7.172
Net worth	7.330	8.350	8.816
long-term borrowings	1.930	2.244	5.537
Short term borrowings	0.000	0.000	0.695
Total borrowings	1.930	2.244	6.232
Debt/Equity ratio	0.263	0.269	0.707

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Sales	34.841	14.316
	0.000	(58.910)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Sales	34.841	14.316
Profit	1.020	0.467
	2.93%	3.26%

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	No
18]	Major customers	No
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]	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

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
Long term borrowings
From directors and relatives	1.281	1.071
From share holders	1.473	1.173
Total	2.754	2.244

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10418172	28/03/2013	9,900,000.00	BANK OF BARODA	S.S.I. BRANCH, MADHAV HILL, WAGHAWADI ROAD, BHAVNAGAR, GUJARAT - 364001, INDIA	B72725898

FIXED ASSETS

· Leasehold Land

· Building

· Water Works Plant

· Air Conditioner

· Plant and Machinery

· Electrical Installation

· Laboratory Equipments

· Office Equipments

· Furniture and Dead Stock

· Innova DLX

· Honda Activa

· Ford Endeavour

· 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 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. 58.86
UK Pound	1	Rs. 98.82
Euro	1	Rs. 80.71

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	SUB
Report Prepared by :	DPH

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	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		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.