MIRA INFORM REPORT

Report No. :	325559
Report Date :	04.06.2015

IDENTIFICATION DETAILS

Name :	BHOLA ENGINEERS
Registered Office :	Plot No. 65, Apple Industries Hub, National Highway No. 8, Vasai, Thane – 401209, Maharashtra
Tel. No.:	91-250-6597333/222/444
Country :	India
Financials (as on) :	31.03.2014
Year of establishment :	1995
Capital Investment / Paid-up Capital :	Rs. Million
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Sole Proprietary Concern
Line of Business :	Manufacturer and Exporter of Valves and pipe fittings.
No. of Employees :	59 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	As claimed by Mr. Sohel Bhola. C.E.O, the subject is going to convert its business activities of proprietorship concern into private limited company. Further claimed by Mr. Sohel Bhola that proprietorship is not under existence and however it have stop working under proprietorship and its activities will be converted into private limited company in next month. As per the balance sheet of proprietorship concern 2014, the concern have reported decline in its sales turnover as well as low profitability from its business operations. In a view of closer down of business under proprietor concern, the concern can be considered for the 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, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

RBI DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ 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. Sohel Bhola
Designation :	CEO
Contact No.:	91-9820556902
Date :	01.06.2015

LOCATIONS

Registered Office :	Plot No. 65, Apple Industries Hub, National Highway No. 8, Vasai, Thane – 401209, Maharashtra, India
Tel. No.:	91-250-6597333/222/444
Mobile No.:	91-9820556902 (Mr. Sohel)
Fax No.:	Not Available
E-Mail :	sohelbhola@bholaengineers.com
Website :	http://www.bholaengineers.com
Factory :	Plot No. -53, Apple Industrial Hub, National Highway, Vasai, Thane – 401209, Maharashtra, India

SOLE PROPRIETOR

Name :	Mr. Mohammed Yasim Bhola
Designation :	Proprietor

KEY EXECUTIVES

Name :	Mr. Sohel Bhola
Designation :	CEO

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Valves and pipe fittings.
Products :	Valves Pipe fittings
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Finished Goods
Countries :	European Gulf Countries
Imports :
Products :	Raw Material
Countries :	Germany Italy USA England China
Terms :
Selling :	Cash and L/C
Purchasing :	Cash and L/C

GENERAL INFORMATION

Suppliers :

Reference :	Anand Metal India – Mumbai, Maharashtra, India
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	L and T Valves Limited, Chennai, Tamilnadu, India
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

59 (Approximately)

Bankers :

Banker Name	ICICI Bank Limited
Branch Address	Malad – West, Mumbai, Maharashtra, India
Person Name (With Designation)	Mr. Manish Kumar (R.M.)
Contact Number	91-8879770329
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Auditors :
Name :	D M Siddhiwala and Assocaites Chartered Accountant
Address :	Mumbai, Maharashtra, India
Memberships :	--
Collaborators :	--
Sister Concern :	--

CAPITAL STRUCTURE

AS ON 31.03.2014

Capital Investment :
Owned :	Rs. 18.649 Million
Borrowed :	--
Total :	Rs. 18.649 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013	31.03.2012
SHAREHOLDERS FUNDS
1] Share Capital		18.649	18.178	10.907
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		18.649	18.178	10.907
LOAN FUNDS
1] Secured Loans		0.349	0.639	0.000
2] Unsecured Loans		3.588	3.588	3.413
TOTAL BORROWING		3.937	4.227	3.413
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		22.586	22.405	14.320
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		21.895	22.916	12.259
Capital work-in-progress		4.184	4.169	0.000
INVESTMENT		0.000	0.000	0.109
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.156	0.226	5.691
	Sundry Debtors	31.865	51.339	36.927
	Cash & Bank Balances	0.774	1.598	0.568
	Other Current Assets	0.886	0.000	0.000
	Loans & Advances	2.190	2.388	1.743
Total Current Assets		35.871	55.551	44.929
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	38.670	55.868	41.147
	Other Current Liabilities (Creditors for Expenses)	0.694	4.363	1.830
	Provisions	0.000	0.000	0.000
Total Current Liabilities		39.364	60.231	42.977
Net Current Assets		(3.493)	(4.680)	1.952
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		22.586	22.405	14.320

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	42.128	95.683	90.647
		Other Income	0.245	0.533	0.013
		TOTAL	42.373	96.216	90.660
Less	EXPENSES
		Cost of goods sold	22.055	59.202	60.850
		Advertisement	0.002	0.021	0.026
		Air conditioner expenses	0.001	0.010	0.002
		Audit fees	0.050	0.084	0.050
		Bank charges	0.029	0.041	0.074
		Bonus	0.094	0.307	0.306
		Vehicle Expenses	0.236	0.047	0.098
		Commission	0.000	0.646	1.215
		Computer Expenses	0.032	0.033	0.039
		Conveyance	0.101	0.499	0.409
		Other Expenses	12.767	23.932	18.432
		TOTAL	35.367	84.822	81.501
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		7.006	11.394	9.159
Less/ Add	DEPRECIATION/ AMORTISATION		3.694	2.911	2.039
	NET PROFIT		3.312	8.483	7.120

Particulars	31.03.2015
Sales Turnover (Approximately)	45.200

Expected Sales (2015-16): Rs. 180.000 Million

The above information has been parted by Mr. Sohel (CEO).

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

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	7.86	8.87	7.85
Return on Total Assets (PBT/Total Assets}	(%)	9.23	15.27	15.85
Return on Investment (ROI) (PBT/Networth)		0.18	0.47	0.65
Debt Equity Ratio (Total Debt /Networth)		0.211	0.23	0.31
Current Ratio (Current Asset/Current Liability)		0.91	0.92	1.05

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	10.907	18.178	18.649
Reserves & Surplus	0.000	0.000	0.000
Net worth	10.907	18.178	18.649
Secured Loan	0.000	0.639	0.349
Unsecured Loan	3.413	3.588	3.588
Total borrowings	3.413	4.227	3.937
Debt/Equity ratio	0.313	0.233	0.211

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	90.647	95.683	42.128
		5.556	42.128

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	90.647	95.683	42.128
Profit	7.120	8.483	3.312
	7.85%	8.87%	7.86%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	-----
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	No
10	Date of Birth of Proprietor / Partners / Directors	No
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	No
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	-----
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	No
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	-----
28	Estimation for coming financial year	Yes
29	Profitability for last three years	Yes
30	Major shareholders, if available	No
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	-----
33	Market information	-----
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	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. 63.85
UK Pound	1	Rs. 98.12
Euro	1	Rs. 71.28

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	KAS
Report Prepared by :	JYO

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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		26

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.