MIRA INFORM REPORT

Report No. :	310126
Report Date :	04.03.2015

IDENTIFICATION DETAILS

Name :	PERMA –PIPE INDIA PRIVATE LIMITED
Registered Office :	C/O. Kalyaniwalla Mistry and Associates, Plant No. 13, Extent Off, Eastern Express Highway, Pirojsha Nagar, Vikhroli (East), Mumbai - 400079, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	31.12.2007
Com. Reg. No.:	11-177170
Capital Investment / Paid-up Capital :	Rs. 1.950 Million
CIN No.: [Company Identification No.]	U27109MH2007PTC177170
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
IEC No.:	0307098133
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Pre – Insulated Piping Systems.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 750000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has incurred a loss from its operations during January, 2014. However, Trade relation is improving. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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 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. Prakash T. Bhojwani
Designation :	Director
Contact No.:	91-9967774939
Date :	28.02.2015

LOCATIONS

Registered Office :	C/O. Kalyaniwalla Mistry and Associates, Plant No. 13, Extent Off, Eastern Express Highway, Pirojsha Nagar, Vikhroli (East), Mumbai - 400079, Maharashtra, India
Tel. No.:	91-22-40036007
Mobile No.:	91-9967774939 (Mr. Prakash T. Bhojwani)
Fax No.:	91-22-40036008
E-Mail :	pbhojwani@permapipe.in
Website :	http://www.permapipe.com
Factory :	Unit No. 305, 3^rd floor, B – Wing, KNOX Plaza, off Malad Link Road, Mind Space Area, Malad (West), Mumbai – 400 064, Maharashtra, India
Tel. No.:	91-22-40036007
Fax No.:	91-22-40036008
E-Mail :	contact@permapipe.in
Area :	http://www.permapipe.in
Factory 2 :	Gandhidham, Gujarat, India

DIRECTORS

As on 25.07.2014

Name :

Mr. Bahadur Sam Dastoor

Designation :

Director

Address :

Fairy Manor, 2^nd Floor, 13, Rustom Sidhwa Marg, Fort, Mumbai – 400 001, Maharashtra, India

Date of Birth/Age :

15.11.1970

Date of Appointment :

31.12.2007

DIN No.:

00019496

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	U29141MH2005PTC224526	ARUP INDIA PRIVATE LIMITED	Director	15-12-2005	15-12-2005	31-10-2011	Active	NO
2	U27109MH2007PTC177170	PERMA-PIPE INDIA PRIVATE LIMITED	Director	31-12-2007	31-12-2007	-	Active	NO

Name :

Mr. David Unger

Designation :

Director

Address :

330, Thornmeadow Road, Riverwoods, Illinois 600 69

Date of Birth/Age :

22.10.1934

Date of Appointment :

15.04.2008

DIN No.:

01950543

Name :

Mr. Fati Ahmed Elgendy

Designation :

Director

Address :

76, Lincolnshire, Dr. Lincolnshire. IL 60069

Date of Birth/Age :

20.01.1949

Date of Appointment :

15.04.2008

DIN No.:

02139898

Name :

Mr. Robert Angelo Maffei

Designation :

Director

Address :

1696, Casasolana, Dr. Wheaton, IL 60187

Date of Birth/Age :

04.02.1948

Date of Appointment :

20.05.2008

DIN No.:

02139918

Name :

Mr. Prakash Tekchand Bhojwani

Designation :

Director

Address :

Panchratan, Flat No. 1, Professor Almeda Road, bandra – West, Mumbai – 4000 50, Maharashtra, India

Date of Birth/Age :

03.01.1948

Date of Appointment :

20.05.2008

DIN No.:

02165309

Name :

Mr. Avin Chandru Gidwani

Designation :

Director

Address :

34 – 1336, Capricon Tower, Sh Zayed Road, Dubai

Date of Birth/Age :

11.07.1979

Date of Appointment :

25.07.2014

DIN No.:

06796247

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	U27109MH2007PTC177170	PERMA-PIPE INDIA PRIVATE LIMITED	Director	25-07-2014	01-02-2014	-	Active	NO

Name :

Mr. Bradley Edward Mautner

Designation :

Director

Address :

Mautner 4114, Russet Way, Northbrook, Il 60062

Date of Birth/Age :

06.08.1955

Date of Appointment :

15.02.2008

DIN No.:

02139902

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.07.2014

Names of Shareholders	No. of Shares
MFRI Holdings (B.V.I) Limited	194999
Perma – Pipe International Company (Nominee of MFRI Holdings (B.V.I) Limited)	1
Total	195000

Equity Share Break up (Percentage of Total Equity)

As on 25.07.2014

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Pre – Insulated Piping Systems.
Products :	Pre – Insulated Piping Systems
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :
Products :	Raw Material
Countries :	UAE
Terms :
Selling :	Cash and Credit (30,60,90 Days)
Purchasing :	Cash and Credit (30,60,90 Days)

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

• Ends Users
• OEMs

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

Not Divulged

Bankers :

• The Hong Kong and Shanghai Banking Corporation Limited, 52/60, Mahatma Gandhi Road, Fort, Mumbai - 400001, Maharashtra, India
• HDFC BANK LIMITED, HDFC Bank House senapati Bapat Marg, Lower Parel (West), MUMBAI - 400013, Maharashtra, India

Bank Name	The HSBC Bank
Branch	Fort Branch, Mumbai – 400 001
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
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)	Cash/Credit Rs. 300.000 Million
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Term Loans from Bank	0.279	0.455
Total	0.279	0.455

Note :

Nature of security and terms of repayment of secured borrowing :

Term loan outstanding aggregating to Rs. 0.724 Million (Previous Year Rs. 1.227 Million) are secured by hypothecation of motor vehicles financed under the loan. The loans are repayable in 35 / 36 monthly instalments. As of January 31, 2014, approximately 4 – 8 installments remain payable for the loan balance brought forward and 30 installments remain payable from the new loan taken during the year.

The company does not have any continuing defaults in repayment of loans and interest as at the reporting date.

The company’s bankers have sanctioned facilities by way of working capital and other banking facilities including letter of credit, guarantees, performance bonds, etc. up to a maximum drawing limit of Rs. 300.000 Million against the hypothecation of tangible movable assets including stocks and debts and hypothecation of the plant and machinery.

Auditors :
Name :	Kalyaniwalla and Mistry Chartered Accountants
Address :	Kalpataru Heritage, 127 Mahatma Gandhi Road, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-61587200
Fax No.:	91-22-22673964
PAN N Income-tax PAN of auditor or auditor's firm :	AAAFK7554R
Memberships :	Not Divulged
Collaborators :	Not Divulged
Fellow subsidiaries of the Ultimate Holding Company :	Perma – Pipe Middle East FZE Perma – Pipe Saudi Arabia, LLC Perma – Pipe Inc.
Ultimate Holding Company:	MFRI Inc.
Holding Company :	MFRI Holding (BVI) Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
195000	Equity Shares	Rs.10/- each	Rs.1.950 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1.950	1.950	1.950
(b) Reserves & Surplus	259.975	319.539	255.022
(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)	261.925	321.489	256.972
(3) Non-Current Liabilities
(a) long-term borrowings	0.279	0.455	1.821
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.865	1.031	1.020
Total Non-current Liabilities (3)	1.144	1.486	2.841
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	7.258	5.720	3.935
(c) Other current liabilities	3.212	2.264	2.411
(d) Short-term provisions	49.029	50.256	41.327
Total Current Liabilities (4)	59.499	58.240	47.673
TOTAL	322.568	381.215	307.486
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	68.297	81.508	101.540
(ii) Intangible Assets	0.223	0.310	3.110
(iii) Capital work-in-progress	0.000	3.591	5.321
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.055	0.055	0.055
(c) Deferred tax assets (net)	23.180	23.400	25.100
(d) Long-term Loan and Advances	0.795	1.148	2.127
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	92.550	110.012	137.253
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	46.317	47.757	50.477
(c) Trade receivables	41.488	137.215	23.936
(d) Cash and cash equivalents	131.959	78.715	82.792
(e) Short-term loans and advances	8.708	6.634	12.256
(f) Other current assets	1.546	0.882	0.772
Total Current Assets	230.018	271.203	170.233
TOTAL	322.568	381.215	307.486

PROFIT & LOSS ACCOUNT

	31.03.2014	31.03.2013	31.03.2012
SALES
Income
Other Income
TOTAL	36.346	255.602	34.479
TOTAL EXPENSES	NA	NA	NA
PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	NA	NA	NA
DEPRECIATION/ AMORTISATION	13.222	20.587	25.291
PROFIT/ (LOSS) BEFORE TAX	NA	NA	NA
PROVISION FOR TAX	NA	NA	NA
PROVISION FOR DEFERRED TAX	0.220	1.700	8.100
PRIOR YEAR'S TAX ADJUSTMENT	0.024	8.185	NA
PROFIT/ (LOSS) AFTER TAX	30.101	64.517	(91.696)
EARNINGS IN FOREIGN CURRENCY
sales of goods	0.000	0.497	0.000
Sales of Fixed Assets	0.000	0.000	13.163
Engineering Services rendered	0.000	0.000	0.363
TOTAL EARNINGS	0.000	0.497	13.526
IMPORTS
Raw Materials	6.534	60.233	6.407
Components and Stores parts	0.000	0.125	0.222
Capital Goods	0.000	1.919	3.052
TOTAL IMPORTS	6.534	62.277	9.681
Earnings / (Loss) Per Share (Rs.)	154.36	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	82.82	25.24	(265.95)
Operating Profit Margin (PBIDT/Sales)	(%)	100.00	100.00	100.00
Current Ratio (Current Asset/Current Liability)		3.87	4.66	3.57

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	1.950	1.950	1.950
Reserves & Surplus	255.022	319.539	259.975
Net worth	256.972	321.489	261.925
long-term borrowings	1.821	0.455	0.279
Short term borrowings	0.000	0.000	0.000
Total borrowings	1.821	0.455	0.279
Debt/Equity ratio	0.007	0.001	0.001

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	34.479	255.602	36.346
		641.327	-85.780

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	34.479	255.602	36.346
Profit	(91.696)	64.517	30.101
	(265.95)%	25.24%	82.82%

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	No
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	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	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

GENERAL INFORMATION

The company is engaged in the business of providing insulation processing of pipe for the oil and gas industry and also set up a small manufacturing unit at Gandhidham in Gujarat for manufacture of insulated pipes, whose operations have commenced in February, 2011. The company caters to both Domestic and International markets.

The financial year of the company as determined by the Board of Directors is for the period February 1 to January 31. These financial statements for the fiscal years ending March 31, 2012 have been prepared for the income tax purposes, in accordance with the Income tax Act, 1961.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10240306	12/06/2012 *	300,000,000.00	The Hong Kong and Shanghai Banking Corporation Limited	52/60, Mahatma Gandhi Road, Fort, Mumbai, Maharashtra - 400001, INDIA	B41393208

FIXED ASSETS

Tangible Assets

• Plant and Machinery
• Lease Hold Improvements
• Computer
• Office Equipment’s
• Furniture and Fixtures
• Motor Cars
• Tractor

Intangible Assets

• Computer Software
• Technology Transfer Fees

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.61.84
UK Pound	1	Rs.95.14
Euro	1	Rs.69.25

INFORMATION DETAILS

Information Gathered by :	PAT
Analysis Done by :	RAS
Report Prepared by :	RCH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.