MIRA INFORM REPORT

Report Date :

06.09.2011

IDENTIFICATION DETAILS

Name :	PALCO RECYCLE EXCHANGE LIMITED (w.e.f. 07.02.2007)
Formerly Known As :	KALYANI SHARP ABRESIVE LIMITED
Registered Office :	604 – C, Sahajanand Shopping Centre, Shahibaug Road, Ahmedabad – 380004, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	06.01.1995
Com. Reg. No.:	04-024124
Capital Investment / Paid-up Capital :	Rs.50.000 Millions
CIN No.: [Company Identification No.]	U74999GJ1995PLC04124
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Trading of all types of Recycling Scrap and Wastes.
No. of Employees :	35 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 220000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for 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.

INFORMATION PARTED BY

Name :	Mr. Puneet
Designation :	Accounts Executive
Contact No.:	91-79-25850690
Date :	05.09.2011

LOCATIONS

Registered Office :	604 – C, Sahajanand Shopping Centre, Shahibaug Road, Ahmedabad – 380004, Gujarat , India
Tel. No.:	91-79-25850690
Fax No.:	91-79-25855338
E-Mail :	pramod@palcometals.com puneet@palcorecycle.com
Website :	www.prxglobal.com www.palcorecycle.com
Location :	Owned
Head Office :	Opp. Khanwadi, CTM-Ramol Road, Ahmedabad – 382449, Gujarat, India
Tel. No.:	91-79-25850690/ 65258207
Fax No.:	91-79-25855338
E-Mail :	contact@prxglobal.com
Branches :	Located at: Mumbai Delhi Hyderabad Jaipur Indore Jamshedpur Bhilai Samabalpur Rourkela

DIRECTORS

(AS ON 20.09.2010)

Name :	Mr. Kirankumar Babulal Agrawal
Designation :	Director
Address :	A/801, Spectrum Tower, Opp. Police Stadium, Shahibaug,Ahmedabad – 380004, Gujarat, India
Date of Birth/Age :	23.10.1964
Date of Appointment :	30.11.2006
DIN No.:	00395934
Other Directorship :	· Krishna Sharebroking Services Private Limited U67120GJ1996PTC029142 · Palco Metals Limited L27310GJ1960PTC000998
Name :	Mr. Pramod Ramanlal Agrawal
Designation :	Director
Address :	4, Tejendra Park Society, Part-I, Viratnagar, Odhav,Ahmedabad – 382415, Gujarat, India
Date of Birth/Age :	15.06.1976
Date of Appointment :	30.11.2006
DIN No.:	00596327
Name :	Mr. Kanaiyalal Babulal Agrawal
Designation :	Director
Address :	77, Tulsi Row House, Jodhpur Char Rasta, Satellite, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	13.03.1965
Date of Appointment :	30.11.2006
DIN No.:	00594240
Other Directorship :	· Regal Entertainment and Consultants Limited U65923MH1992PTC064689 · Palco Metals Limited L27310GJ1960PTC000998

KEY EXECUTIVES

Name :	Mr. Rashmikant
Designation :	Accounts Department
Name :	Mr. Sanlin
Designation :	Office Assistant
Name :	Mr. Rahul
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 20.09.2010)

Names of Shareholders	No. of Shares
Genus Commu – Trade Limited, Ahmedabad	50000
Nexus Software Limited, Vadodara	50000
Vishal Construction Services Private Limited, Ahmedabad	50000
Ken Securities Limited, Ahmedabad	50000
Jay Adhyashakti Marketing Private Limited, Ahmedabad	600000
Bagrecha Marketing Private Limited, Ahmedabad	600000
Saharshi Securities Private Limited, Ahmedabad	125000
Steps Securities Private Limited, Ahmedabad	200000
Asopalav Trades Private Limited, Ahmedabad	175000
Anil Thakore	2000
Meena B. Agrawal	2000
Narendra Agrawal	2000
Jayesh Kanogia	2000
Manish Thakore	2000
Yogesh Thakore	4500
Khushi Traders (Sharad Agrawal)	3000
Jitendra Agrawal	2500
Palco Metals Limited, Ahmedabad	834400
Pramod R. Agrawal	70100
Nandkishore Agrawal	17100
Ramanbhai Shambhulal Agrawal	8000
Marrot Stock Holdings Private Limited, Ahmedabad	150000
Kanaiyalal Babulal Agrawal	100
Kirankumar Babulal Agrawal	100
Ashokkumar Babulal Agrawal	100
Lalitkumar Gupta	100
Jai Durga Tradelink Private Limited, Ahmedabad	500000
Bagrecha Marketing Private Limited, Ahmedabad	100000
Aqua Water Filtech Limited, Ahmedabad	50000
Manidhari Strips Private Limited, Ahmedabad	50000
Ankush Finstock Limited, Ahmedabad	50000
Praveen Mauji Mange	50000
Ideal Fertilizers Private Limited, West Bengal	290000
Thakkar Financial Services Private Limited, Ahmedabad	230000
Vital Marketing and Finance Private Limited, Ahmedabad	230000

(AS ON 20.09.2010)

Category	Percentage
Bodies corporate	96.79
Directors or relatives of Directors	3.21
Total	100.00

BUSINESS DETAILS

Line of Business :	Trading of all types of Recycling Scrap and Wastes.
Terms :
Purchasing :	Depend

GENERAL INFORMATION

Suppliers :

· Bagwati Offset

· D H Printers

· Remetal Traders

· Shree Rama Krishna Freight Carrier

· Sonia Kakani and Freight Carrier

· Sugan Express Private Limited

· Unique Forwarders

· Unique Marketing Company

Customers :

· Industries

No. of Employees :

35 (Approximately)

Bankers :

· State Bank of India

Sahibaug Road Branch, India

· Axis Bank

· ICICI Bank

Facilities :

Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Krishna Capital Securities Limited	31.171	23.488
Krishna Worldwide Private Limited (Loan)	0.000	5.144
Pramod Agarwal (Loan A/c)	0.769	0.000
Palco Recycle Industries Limited	4.989	0.000
Thakkar Financial Services Private Limited	0.746	0.000
Vital Marketing and Finance Private Limited	0.542	0.000
Total	38.217	28.632

Banking Relations :	--
Auditors :
Name :	Gattani and Associates Chartered Accountant
Address :	1003-4, Samudra Annexe, Near Hotel Klassic Gold, Ellisbridge, Ahmedabad – 38006, Gujarat, India

CAPITAL STRUCTURE

AS ON 31.03.2010

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
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		50.000	25.500	25.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4.089	1.643	1.394
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		54.089	27.143	26.894
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		38.217	28.632	0.100
TOTAL BORROWING		38.217	28.632	0.100
DEFERRED TAX LIABILITIES		0.001	0.003	0.000
TOTAL		92.307	55.778	26.994
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.021	0.021	0.021
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.913
	Sundry Debtors	10.578	0.116	0.479
	Cash & Bank Balances	18.627	12.695	0.519
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	71.825	69.304	25.962
Total Current Assets		101.030	82.115	27.873
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.290	1.501	0.557
	Other Current Liabilities	4.259	24.919	0.017
	Provisions	1.347	0.243	0.784
Total Current Liabilities		8.896	26.663	1.358
Net Current Assets		92.134	55.452	26.515
MISCELLANEOUS EXPENSES		0.152	0.305	0.458
TOTAL		92.307	55.778	26.994

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	548.657	164.177	37.963
		Other Income	5.944	1.978	2.301
		TOTAL (A)	554.601	166.155	40.264
Less	EXPENSES
		Purchased of Finished Goods	546.157	161.894	36.563
		Administrative Expenses	3.964	2.113	1.949
		Salary and Wages	0.783	0.666	0.849
		Misc. Expenses W/off	0.152	0.152	0.152
		Increased/(Decreased) in stock	0.000	0.913	(0.913)
		TOTAL (B)	551.056	165.738	38.600
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3.545	0.417	1.664
Less	FINANCIAL EXPENSES (D)		0.000	0.000	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.545	0.417	1.664
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.004	0.006	0.007
	PROFIT BEFORE TAX (E-F) (G)		3.541	0.411	1.657
Less	TAX (H)		1.095	0.162	0.522
	PROFIT AFTER TAX (G-H) (I)		2.446	0.249	1.135
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.643	1.394	0.259
	BALANCE CARRIED TO THE B/S		4.089	1.643	1.394
	Earnings Per Share (Rs.)		0.61	0.10	--

Particulars	31.03.2011
Sales Turnover (Approximately)	600.000

The above information has been parted by Mr. Puneet.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.44	0.15	2.82
Net Profit Margin (PBT/Sales)	(%)	0.64	0.25	4.36
Return on Total Assets (PBT/Total Assets}	(%)	3.50	0.50	0.59
Return on Investment (ROI) (PBT/Networth)		0.06	0.02	0.06
Debt Equity Ratio (Total Liability/Networth)		0.87	2.04	0.05
Current Ratio (Current Asset/Current Liability)		11.36	3.08	20.52

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009	Rs. In Millions 31.03.2008
Agarwal Kothari and Agrawal	0.000	0.000	0.006
Bhagwati Offset	0.035	0.000	0.077
D H Printers	0.002	0.000	0.000
Garima Communication	0.000	0.000	0.196
Grace Image	0.000	0.000	0.006
Kalpataru Infosoft Private Limited	0.000	0.000	0.010
Macro World Softwares	0.000	0.000	0.001
Mahashakti Freight Carrier	0.000	0.000	0.029
Mukeshbhai K Patel	0.000	0.008	0.000
Remetal Traders	0.341	0.269	0.000
Sai Krupa Photo Offset Private Limited	0.000	0.000	0.001
Shree Maruti Courier Services private Limited	0.000	0.000	0.015
Shree Rama Krishna Fright Carrier	0.836	0.408	0.000
Shree Shyam Fright Carrier	0.000	0.000	0.022
Sonia Kakani and Associates	0.001	0.000	0.000
Sugan Express Private Limited	0.002	0.005	0.005
Super Express Couriers	0.000	0.00	0.001
Umiya Plastic	0.000	0.000	0.089
Unique Forwarders	2.073	0.792	0.099
Unique Marketing Company	0.000	0.019	0.000
Total	3.290	1.501	0.557

NOTE:

The registered address of the company has been shifted from 2-A, Manek Avenue Flatsopp D K Patel Hall Naranpura, Ahmedabad – 380013, Gujarat, India to Opposite Khanwadi, CTM-Ramol Road, Ahmedabad – 382449, Gujarat, India w.e.f. 30.12.2006

The registered address of the company has been shifted from Opposite Khanwadi, CTM-Ramol Road, Ahmedabad – 382449, Gujarat, India to present address w.e.f. 11.08.2010

FINANCIAL RESULTS:

The Directors feels pleasure in presenting before the financial results for the ending year. The sales of the company stood at Rs.548.657 Millions as compared to the last year of Rs.164.177 Millions. Sales of the company rise to the 3 fold this year. Other income also shows the same results stood at Rs.5.944 Millions from the last year Rs.1.978 Millions Net profit of the company rose to Rs.2.446 Millions approximately ten times higher than the last fiscal year.

FINANCE:

During the Year the company raised the funds by issuing 24, 50,000 new Equity Shares of Rs.10/- each. The Paid-up capital of the company stood at Rs.5.000 Millions

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.45.94
UK Pound	1	Rs.74.28
Euro	1	Rs.64.97

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.