MIRA INFORM REPORT

Report Date :

25.09.2014

IDENTIFICATION DETAILS

Name :	HI-TECH ENGINEERING
Registered Office :	Plot No. B-62, Road No. 5, Nice Industrial Estate, MIDC, Satpur, Nashik – 422007, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Year of Establishment :	2005
Capital Investment :	Rs. 14.229 Millions
IEC No.:	3105004866
PAN No.: [Permanent Account No.]	AAHPC8589R
Legal Form :	Sole Proprietary Concern
Line of Business :	Manufacturer, Trader, Exporter and Importer of Fix Bed Reactor, Micro Reactor, etc.
No. of Employees :	10 (Approximately) [Office]

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 57000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established proprietary concern having satisfactory track record. Financial position of the company seems to be decent. Trade relations are fair. Business is active. Payment terms are usually correct. The concern can be considered normal 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

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. Nalin R. Chandak
Designation :	Proprietor
Contact No.:	91-9404571615
Date :	25.09.2014

LOCATIONS

Registered Office/ Factory :	Plot No. B-62, Road No. 5, Nice Industrial Estate, MIDC, Satpur, Nashik – 422007, Maharashtra, India
Tel. No.:	91-253-2352913
Mobile No.:	91-9404571615/ 9422764747 (Mr. Nalin R. Chandak)
Fax No.:	Not Available
E-Mail :	hitech.engineering1@gmail.com
Website :	www.hitech-engg.com
Area :	3000 Sq.ft. (Registered Office)
Location :	Leased (Registered Office)
Area :	3066 Sq.ft. (Factory)
Location :	Leased (Factory)

SOLE PROPRIETOR

Name :	Mr. Nalin R. Chandak
Designation :	Proprietor
Address :	3, Rajlaxmi Apartment, Mahatma Nagar, Nashik – 422005, Maharashtra, India
Date of Birth/Age :	08.06.1975
Qualification :	Graduation
Experience :	10 Years

BUSINESS DETAILS

Line of Business :	Manufacturer, Trader, Exporter and Importer of Fix Bed Reactor, Micro Reactor, etc.
Exports :
Products :	· Fixed Bed Reactor Micro Reactor
Countries :	· Middle East Gulf Countries
Imports :
Products :	Components
Countries :	· USA Germany
Terms :
Selling :	Cash and Credit (30 Days and 60 Days)
Purchasing :	Cash and Credit (30 Days and 60 Days)

GENERAL INFORMATION

Supplier :	Brooks Instruments (India) Private Limited
Customers :	End Users · National Chemical Laboratory, Pune IIT Madras, Chennai Indian Institute of Petroleum, Dehradun IIT Kanpur
No. of Employees :	10 (Approximately) [Office]
Bankers :	HDFC Bank Limited, Thatte Nagar, Nashik, Maharashtra, India

Banking Relations :	--
Auditors :
Name :	Zawar Somani and Company Chartered Accountants
Address :	Near Dwarka, Nashik, Maharashtra, India

CAPITAL STRUCTURE

As on 31.03.2013

Capital Investment :
Owned :	Rs. 14.229 Millions
Borrowed :	--
Total :	Rs. 14.229 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2014
Sales Turnover (Approximately)	50.000

Expected Sales (2014-2015) : Rs. 60.000 Millions

The above information has been parted by Mr. Nalin R. Chandak (Proprietor).

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

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2013	31.03.2012
SHAREHOLDERS FUNDS
1] Proprietors Capital		14.229	10.667
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		14.229	10.667
LOAN FUNDS
1] Secured Loans		0.602	0.979
2] Unsecured Loans		9.094	0.000
TOTAL BORROWING		9.696	0.979
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		23.925	11.646
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.892	4.941
Capital work-in-progress		0.000	0.000
INVESTMENT		6.484	5.079
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.980	7.515
	Sundry Debtors	4.991	6.191
	Cash & Bank Balances	6.178	12.804
	Other Current Assets	0.000	0.458
	Loans & Advances	5.532	10.143
Total Current Assets		21.681	37.111
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	10.128	21.834
	Other Current Liabilities	0.000	13.069
	Provisions	0.004	0.582
Total Current Liabilities		10.132	35.485
Net Current Assets		11.549	1.626
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		23.925	11.646

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012
	SALES
		Income	67.563	46.152
		Other Income	0.005	1.415
		TOTAL	67.568	47.567
Less	EXPENSES
		Cost of Goods Sold	46.877	29.091
		Freight and Octroi	0.006	0.000
		Ground Rent	0.720	0.000
		Labour Charges for Mnf Material	0.380	0.000
		Wages	1.328	0.000
		Power and Fuel (Light Bill)	0.207	0.000
		Car Hire Charges	0.300	0.000
		Professional Fees	1.041	0.000
		Water Bill	0.019	0.023
		Car Insurance	0.011	0.000
		Vehicle Insurance	0.013	0.000
		Staff Food/ Meeting Expenses	0.001	0.008
		Travelling Expenses	0.356	0.276
		Tender Fees	0.002	0.000
		Office Expenses	0.009	0.168
		Bank Interest	0.107	0.110
		Other Expenses	8.699	8.854
		TOTAL	60.076	38.530
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		7.492	9.037
Less/ Add	DEPRECIATION/ AMORTISATION		0.387	0.311
	NET PROFIT/ (LOSS)		7.105	8.726

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012
PAT / Total Income	(%)	10.52	18.34
Net Profit Margin (PBT/Sales)	(%)	10.52	18.91
Return on Total Assets (PBT/Total Assets}	(%)	25.77	20.75
Return on Investment (ROI) (PBT/Networth)		0.50	0.82
Debt Equity Ratio (Total Debt/Networth)		0.68	0.09
Current Ratio (Current Asset/Current Liability)		2.14	1.05

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	10.667	14.229
Reserves & Surplus	0.000	0.000
Net worth	10.667	14.229
long-term borrowings	0.979	0.602
Short term borrowings	0.000	9.094
Total borrowings	0.979	9.696
Debt/Equity ratio	0.092	0.681

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Sales	46.152	67.563
		46.392

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Sales	46.152	67.563
Profit	8.726	7.105
	18.91%	10.52%

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	No
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	No
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	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

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.61.03
UK Pound	1	Rs.99.99
Euro	1	Rs.78.37

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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		48

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.