MIRA INFORM REPORT

Report Date :

07.12.2011

IDENTIFICATION DETAILS

Name :	FLAMAGAS INDIA PRIVATE LIMITED (w.e.f 14.12.1999)
Formerly Known As :	IMCO LIGHTERS PRIVATE LIMITED
Registered Office :	121/2C, Mambakkam Post, Chennai – 600 048, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	05.10.1995
Com. Reg. No.:	18-033144
Capital Investment / Paid-up Capital :	Rs.35.000 Millions
CIN No.: [Company Identification No.]	U93090TN1995PTC033144
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporters of Cigarette Lighters (Refillable and Non-Refillable) and Kitchen Gas Lighters.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 442000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Rahmata
Designation :	Accounts Department
Contact No.:	91-44-27479054
Date :	06.12.2011

LOCATIONS

Registered Office/ Factory :	121/2C, Mambakkam Post, Chennai – 600 048, Tamilnadu, India
Tel. No.:	91-44-27479054/ 32910019
Fax No.:	91-44-27479065
E-Mail :	flamages@vsnl.net
Website :	www.flamagasindia.com
Location :	Owned

DIRECTORS

As on 05.08.2011

Name :

Mr. Jose Maria Puig Planas

Designation :

Director

Address :

P. Bonanova, 63 BIS – 08017, Barcelona, Spain

Date of Birth/Age :

13.03.1931

Date of Appointment :

26.11.1999

DIN No.:

00484113

Name :

Mr. Xavier Puig Alsina

Designation :

Director

Address :

C/ Angli, 36, Bajos – 08017, Barcelona, Spain

Date of Birth/Age :

16.01.1957

Date of Appointment :

26.11.1999

DIN No.:

00484170

Name :

Mr. Pedro Puig Alsina

Designation :

Director

Address :

C/Sor Eulalia De Anzizu 51-53, 08034, Barcelona, Spain

Date of Birth/Age :

29.05.1961

Date of Appointment :

26.11.1999

DIN No.:

00742180

Name :

Mr. Markandan Kilpauk Sivasankaran

Designation :

Director

Address :

No. 46, Mandapam Road, Kilpauk, Chennai – 600 010, Tamilnadu, India

Date of Birth/Age :

03.10.1935

Date of Appointment :

02.07.1999

DIN No.:

00505217

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L65191TN1981PLC008555	Mahaveer Finance India Limited	Director	20-11-96	20-11-96	-	Active	NO
2	U93090TN1995PTC033144	Flamagas India Private Limited	Director	02-07-99	02-07-99	-	Active	NO

Name :

Mrs. Shamini Mahendran

Designation :

Director

Address :

Post Box No. 52474, Dubai, UAE

Date of Birth/Age :

24.04.1962

Date of Appointment :

02.07.1999

DIN No.:

00315008

Name :

Mr. Ganapathi Krishnamurthy

Designation :

Alternate Director to act for Mrs. Shamini Mahendran

Address :

F-5, Phase II, Jains Aashiana, Vembuliamman Koil Street, Virugambakkam, Chennai – 600078, Tamilnadu, India

Date of Birth/Age :

15.11.1961

Date of Appointment :

01.09.2008

DIN No.:

00396277

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U36991TN1995PTC042089	Saber Pens Private Limited	Director	12-12-01	12-12-01	-	Amalgamated	NO
2	U25209TN1998PTC040790	Saber Office and School Products Private Limited	Director	27-09-08	25-07-08	31-10-08	Active	NO
3	U93090TN1995PTC033144	Flamagas India Private Limited	Alternate director	01-09-08	01-09-08	-	Active	NO

Name :

Mr. Mohideen Thiwan Syed Muhammad Abubucker

Designation :

Alternate Director to act for Mr. Jose M. Puig

Address :

A – Block, Flat No. F-1, Lakshmipriya Apartments, No. 12 – A, Dandeswaram, 3^rd Cross Street, 6^th Main Road, Velachery, Chennai – 600 042, Tamilnadu, India

Date of Birth/Age :

25.07.1965

Date of Appointment :

17.07.2009

DIN No.:

00456413

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U25209TN1990PTC018766	M I G Extrusions Private Limited	Director	19-02-96	19-02-96	-	Amalgamated	NO
2	U93090TN1995PTC033144	Flamagas India Private Limited	Alternate director	17-07-09	17-07-09	-	Active	NO
3	U92200TN1997PTC037840	Hunter Marketing (India) Private Limited	Director	30-09-09	02-09-09	-	Active	NO

Name :

Mr. Jayaram Vediyara Chandroth

Designation :

Alternate Director to act for Mr. Xavier Puig Alsina

Address :

Flat No G 6, Prime Terrece 150, L.B. Road, Adyar, Chennai – 600 041, Tamilnadu, India

Date of Birth/ Age :

11.10.1961

Date of Appointment :

21.05.2010

DIN No.:

02029575

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U93090TN1995PTC033144	Flamagas India Private Limited	Alternate director	21-05-10	15-02-08	-	Active	NO

KEY EXECUTIVES

Name :	JM and Associates
Designation :	Company Secretaries
Address :	Indiradevi Complex, II Floor, # 20, Gopalakrishna Street, Pondy Bazaar, T. Nagar, Chennai – 600 017, Tamilnadu, India
Tel. No.:	91-44-42070906/ 28152670
E-Mail :	mail@saspartners.com
Name :	Mr. Rahmata
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 05.08.2011

Names of Shareholders	No. of Shares
Peacock Chennai Finvest Private Limited, India	857500
Flamagas SA, Spain	1785000
Asadi Holdings Limited, U.A.E.	857500
Total	3500000

As on 05.08.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	75.50
Bodies corporate	24.50
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Cigarette Lighters (Refillable and Non-Refillable) and Kitchen Gas Lighters.

Products :

Item Code No.	Product Description
9613.10	Cigarette Gas Lighters
9613.90	Lighters Parts

Exports :

Products :

Kitchen Gas

Countries :

Spain

Imports :

Products :

Raw Materials

Countries :

v China

v Taiwan

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

PRODUCTION STATUS (As On 31.03.2011)

Particulars	Unit	Installed Capacity
Cigarette Gas Lighter – Clipper	Nos.	24,000,000
Cigarette Gas Lighter – Mini Brio	Nos.	30,000,000
Flint System – Assembly	Nos.	150,000,000

Particulars	Production (Qty. Nos.)
Clipper Lighter	8,964,680
Kitchen Lighter	746,381
Brio Lighter	153,520
Micro Brio Lighter	4,635,800
Clipper Decorated Lighter	-
Lighter Parts - Flint System	95,956,000
Lighter Parts - R.V.Bottom	-

GENERAL INFORMATION

No. of Employees :	300 (Approximately)
Bankers :	Not Available

Banking Relations :	--
Auditors :
Name :	K.S. Aiyer and Company Chartered Accountants
Address :	54/2, Paulwells Road, St. Thomas Mount, Chennai – 600 016, Tamilnadu, India
Tel. No.:	91-44-22330206
Fax No.:	91-44-22330207
E-Mail :	Chennai@KSAiyar.com Chennaiaudit@KSAiyar.com
PAN No.:	AAAFK6843P
Holding Company :	Flamagas SA, Spain

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs.35.000 Millions

(Flamagas SA Holding 1,785,000 Equity Shares of Rs.10/-)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		35.000	35.000	35.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		75.536	69.291	63.911
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		110.536	104.291	98.911
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		2.191	2.211	2.167
TOTAL		112.727	106.502	101.078
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		45.210	48.250	43.584
Capital work-in-progress		0.061	0.000	0.090
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	53.174	48.930	65.513
	Sundry Debtors	34.635	37.343	37.236
	Cash & Bank Balances	17.786	11.166	7.608
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	5.985	6.427	7.026
Total Current Assets		111.580	103.866	117.383
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	41.611	33.354	40.493
	Other Current Liabilities	3.719	2.835	15.717
	Provisions	0.794	9.425	3.769
Total Current Liabilities		46.124	45.614	59.979
Net Current Assets		65.456	58.252	57.404
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		110.727	106.502	101.078

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Net Sales	197.850	240.748	214.260
		Other Income	NA	3.305	4.570
		TOTAL	NA	244.053	218.830
	EXPENSES
		Office Expenses	189.049	226.122	210.879
		Administrative Expenses
		Advertising Expenses
		TOTAL	189.049	226.122	210.879
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		8.549	17.931	7.951
Less/ Add	DEPRECIATION/ AMORTISATION		4.266	3.708	2.869
	PROFIT BEFORE TAX		4.283	14.223	5.082
Less	TAX		0.786	2.600	0.452
	PROFIT AFTER TAX		3.497	11.623	4.630
	MAT Credit Entitlements		0.848	0.000	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		30.258	25.359	20.729
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.582	0.000
		Proposed Dividend	0.000	5.250	0.000
		Tax on Distributed Profits	0.000	0.892	0.000
	BALANCE CARRIED TO THE B/S		34.603	30.258	25.359
	EARNINGS IN FOREIGN CURRENCY		131.149	156.955	152.177
	IMPORTS
		Raw Materials and Components	101.892	122.518	141.203
		Capital Goods	0.349	7.742	2.461
	TOTAL IMPORTS		102.241	130.260	143.664
	Earnings Per Share (Rs.)		1.00	3.32	1.32

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	4.76	2.12
Net Profit Margin (PBT/Sales)	(%)	2.16	5.91	2.37
Return on Total Assets (PBT/Total Assets}	(%)	2.73	9.35	3.16
Return on Investment (ROI) (PBT/Networth)		0.04	0.14	0.05
Debt Equity Ratio (Total Liability/Networth)		0.42	0.44	0.61
Current Ratio (Current Asset/Current Liability)		2.42	2.28	1.96

LOCAL AGENCY FURTHER INFORMATION

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	--
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	--
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)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	No
24) Banking facility details	No
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

FUTURE OUTLOOK:

As a market leader in pocket and utility lighters, the company has established regular business tieup with reputed oil marketing companies. To further explore the market the company is planning to introduce new variety of both utility lighters and pocket lighters. In pocket lighters also new designs are introduced to improve the revenue.

The company has introduced new designs like soft lighters, crystal, pouch packing, blister packing in the export market to test the markets. Such seed marketing has yielded positive response from the global customers. With these new products, the company is confident of improving its revenue in the coming year.

CONTINGENT LIABILITIES:

Particulars	31.03.2011 (Rs. in millions)
a. Claims against the company not acknowledged as debt	0.798
The Central Excise Department has raised a demand for INR 1.706 millions on the Company towards Excise / Customs duty and penalty thereon on the shortage of Stocks identified on physical verification during F.Y 2002-2003.The Company is of the opinion that the claim has not been justified and had filed an Appeal before Commissioner (Appeal) Central Excise - Chennai. The commissioner (Appeal) has concluded that only duty can be levied on shortages and the claim has been reduced to INR 0.798 million. The Company has filed an appeal before the Tribunal to set aside this claim by depositing INR 0.200 million and the same is pending.
b. Claims against the company not acknowledged as debt	0.533
The Central Excise department has raised a demand for INR 0.533 million towards removal of capital goods for job works to it’s the vendors. As capital goods are moved with proper approvals, the company has went on appeal against the demand raised by the department. The appeal is pending to heard by the CESTAT (Customs, Excise and service tax Appellate tribunals

FIXED ASSETS:

v Land

v Building

v Plant and machinery

v Moulds

v Furniture and Fittings

v Office Equipments

v Computers

v Electrical Installations

v Vehicles

v Work – in – Progress

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 records 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.51.39
UK Pound	1	Rs.80.20
Euro	1	Rs.68.92

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	4
--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	NO
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.