MIRA INFORM REPORT

Report Date :

10.10.2014

IDENTIFICATION DETAILS

Name :	SHREE ENGINEERING WORKS
Registered Office :	G-522, C, Road No.6, VKI Area, Jaipur – 302013, Rajasthan
Country :	India
Financials (as on) :	31.03.2014
Year of Establishment :	1988
Capital Investment / Paid-up Capital :	Rs.13.102 Millions
TIN No.:	08631652504
Legal Form :	Sole Proprietary Concern
Line of Business :	Manufacturer, exporter and trader of hyper steel grinding media balls, Hi-chrome grinding media balls, manganese steel casting, HRCS casting, hammers, jaw plates, liner plates steel casting.
No. of Employees :	100 (Approximately)

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

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established proprietary concern having a satisfactory track record. The rating takes into consideration concern’s sound financial risk profile and fair profitability levels of the concern. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The concern 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 – 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

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

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

Name :	Mr. Dharmendra Sharma
Designation :	Chief Executive Officer
Contact No.:	91-8045136945
Date :	06.10.2014

LOCATIONS

Registered Office / Factory :	G-522, C, Road No.6, VKI Area, Jaipur – 302013, Rajasthan, India
Tel. No.:	91-141-4021309
Mobile :	91-8045136945 (Mr. Dharmendra Sharma)
Fax No.:	91-141-2332663
E-Mail :	sewrajasthan@gmail.com shreeengineeringworks@gmail.com
Area :	1800Sq.m.
Location :	Owned

SOLE PROPRIETOR

Name :	Mr. L. C. Sharma
Designation :	Proprietor
Qualification :	Graduate
Address :	Jaipur – 302013, Rajasthan, India

KEY EXECUTIVES

Name :	Mr. Dharmendra Sharma
Designation :	Chief Executive Officer

BUSINESS DETAILS

Line of Business :	Manufacturer, exporter and trader of hyper steel grinding media balls, Hi-chrome grinding media balls, manganese steel casting, HRCS casting, hammers, jaw plates, liner plates steel casting.
Exports :
Products :	Hyper Steel Grinding Media Balls
Countries :	South Africa Nepal
Imports :
Products :	Raw Material
Countries :	South Africa
Terms :
Selling :	Cash and Credit and Bank
Purchasing :	Cash and Credit and DP

GENERAL INFORMATION

Supplier:	Laul Limited
Customers :	Retailers, Others BMM Ispat
No. of Employees :	100 (Approximately)
Bankers :	· Canara Bank, Jaipur – 302013, Rajasthan, India · IndusInd Bank, Jaipur – 302013, Rajasthan, India
Facilities :	Over Draft = Rs. 20.000 Millions

Banking Relations :	--
Auditors :
Name :	Arvind Mathur and Company Chartered Accountants

CAPITAL STRUCTURE

AS ON 31.03.2014

CAPITAL ACCOUNT

Particulars	Amount [Rs. In Millions]
Opening Balance	11.776
Add: Introduced	0.375
Add: Income Tax Refund	0.001
Add: Net profit	1.426
Less: Donation @80G	0.025
Less: Income Tax	0.001
Less: LIC of India	0.112
Less: Mediclaim Policy	0.024
Less: Drawings	0.314
Total	13.102

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Partner's Capital	13.102	11.776
2] Share Application Money	0.000	0.000
3] Reserves & Surplus	0.000	0.000
4] (Accumulated Losses)	0.000	0.000
NETWORTH	13.102	11.776
LOAN FUNDS
1] Secured Loans	25.161	23.444
2] Unsecured Loans	3.597	3.383
TOTAL BORROWING	28.758	26.827
DEFERRED TAX LIABILITIES	0.000	0.000
TOTAL	41.860	38.603
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	19.347	19.296
Capital work-in-progress	0.000	0.000
INVESTMENT	0.000	0.000
DEFERRED TAX ASSETS	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
Inventories	5.535	12.058
Sundry Debtors	20.696	8.119
Cash & Bank Balances	6.390	0.052
Other Current Assets	0.000	0.000
Loans & Advances and Deposits	11.037	8.266
Total Current Assets	43.658	28.495
Less : CURRENT LIABILITIES & PROVISIONS
Sundry Creditors	17.699	6.187
Other Current Liabilities / Duty and Taxes	2.175	2.573
Provisions	1.271	0.428
Total Current Liabilities	21.145	9.188
Net Current Assets	22.513	19.307
MISCELLANEOUS EXPENSES	0.000	0.000
TOTAL	41.860	38.603

	PARTICULARS	31.03.2014	31.03.2013
	SALES
	Income	140.754	85.302
	Other Income	0.276	0.125
	TOTAL	141.030	85.427
Less	EXPENSES
	Cost of Goods Sold	107.685	62.890
	Manufacturing Expenses	23.648	16.700
	Advertisement	0.022	0.000
	Service Tax	0.160	0.052
	Audit Fees	0.045	0.045
	Insurance Premium	0.107	0.045
	Rebate and Discount	0.246	0.001
	Repairs and Maintenance	0.153	0.070
	Printing and Stationary Charges	0.005	0.006
	Legal and Professional Fees	0.006	0.011
	Salary to Staff	0.503	0.284
	Telephone Expenses	0.047	0.000
	Travelling / Conveyance Expenses	0.494	0.074
	Other Expenses	0.107	0.256
	TOTAL	133.228	80.434
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	7.802	4.993
Less	FINANCIAL EXPENSES	3.678	2.459
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	4.124	2.534
Less/ Add	DEPRECIATION/ AMORTISATION	2.698	2.091
	NET PROFIT	1.426	0.443

Expected Sales ( 2014-2015 ) : Rs.Rs.240.000 Millions

The above information has been parted by Mr. Dharmendra Sharma.

Note: Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

KEY RATIO

PARTICULARS		31.03.2014	31.03.2013
PAT / Total Income	(%)	1.01	0.52
Net Profit Margin (PBT/Sales)	(%)	1.01	0.52
Return on Total Assets (PBT/Total Assets}	(%)	2.26	0.93
Return on Investment (ROI) (PBT/Networth)		0.11	0.04
Debt Equity Ratio (Total Debt /Networth)		2.19	2.28
Current Ratio (Current Asset/Current Liability)		2.06	3.10

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	11.776	13.102
Reserves & Surplus	0.000	0.000
Net worth	11.776	13.102
Secured Loans	23.444	25.161
Unsecured Loans	3.383	3.597
Total borrowings	26.827	28.758
Debt/Equity ratio	2.278	2.195

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Sales	85.302	140.754
		65.007

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Sales	85.302	140.754
Profit	0.443	1.426
	0.52%	1.01%

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 two 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	No
17]	Major suppliers	Yes
18]	Major customers	Yes
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	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	No
30]	Major Shareholders, if available	No
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

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.61.04
UK Pound	1	Rs.98.64
Euro	1	Rs.77.74

INFORMATION DETAILS

Analysis Done by :	HNA
Analysis done by :	KAR
Report Prepared by :	SNT

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	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	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		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.