MIRA INFORM REPORT

Report Date :

31.08.2012

IDENTIFICATION DETAILS

Name :	ANAND ARC LIMITED
Formerly Known As :	ANAND ARC PRIVATE LIMITED (w.e.f.15.09.2007) ANAND ARC ELECTRODES PRIVATE LIMITED (w.e.f.06.07.2007)
Registered Office :	701 Trade Centre, Bandra Kurla Complex, Bandra (East), Mumbai – 400052, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.10.1987
Com. Reg. No.:	11-045076
Capital Investment / Paid-up Capital :	Rs.2.500 Millions
CIN No.: [Company Identification No.]	U32109MH1987PLC045076
TAN No.: [Tax Deduction & Collection Account No.]	MUMA20607G
PAN No.: [Permanent Account No.]	AAACA3242M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Stainless, Steel wires, Welding, Consumables.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 390000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Even thought the company has recorded an increase in its sales during 2011, there appears slight dip in the profits. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct. 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
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

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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 31-03-2012.

LOCATIONS

Registered Office :	701 Trade Centre, Bandra Kurla Complex, Bandra (East), Mumbai – 400052, Maharashtra, India
Tel. No.:	91-22-42688484/26508282/26508383/42688470
Fax No.:	91-22-42688400
E-Mail :	ghpurcwani@yahoo.co.in anand@anandarc.com
Website :	http://www.anandarc.com
Corporate Office:	30 Kala Udyog Premisesl, L B S Marg, Bhandup (West), Mumbai – 400078, Maharashtra, India
Tel. No.:	91-22-25681853/25601088/25654320/21
Fax No.:	91-22-25672830
E-Mail :	anand@bom5.vsnl.net.in

DIRECTORS

As on 30.09.2011

Name :

Mr. Murlidhar Hargundas Purswani

Designation :

Managing Director

Address :

1301 Vrindavan, 32 Mount Mary Road, Bandra (West), Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

07.09.1949

Date of Appointment :

21.10.1987

DIN No.:

00395182

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	U32109MH1987PLC045076	ANAND ARC LIMITED	Managing director	21/10/1987	21/10/1987	-	Active	NO
2	U31300MH1996PTC097204	AUTOMIG PRIVATE LIMITED	Director	13/02/1996	13/02/1996	-	Strike off	NO
3	U92110MH1985PLC035269	A N GLOBAL LIMITED	Director	23/09/1997	23/09/1997	-	Active	NO

Name :

Ms. Rekha Murlidhar Purswani

Designation :

Director

Address :

1301 Vrindavan, 32 Mount Mary Road, Bandra (West), Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

14.11.1951

Date of Appointment :

21.10.1987

DIN No.:

00395267

Name :

Mr. Anand Murlidhar Purswani

Designation :

Director

Address :

1301 Vrindavan, 32 Mount Mary Road, Bandra (West), Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

05.07.1975

Date of Appointment :

25.09.2001

DIN No.:

00395232

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Murlidhar Hargundas Purswani	122450
Rekha Murlidhar Purswani	53700
Anand Murlidhar Purswani	33700

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Stainless, Steel wires, Welding, Consumables.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Ashok Silk Compound, LBS Marg, Ghatkopar (West) Branch, Mumbai – 400086, Maharashtra, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Cash credit facility from State Bank of India against hypothecation of stock and debtors (sanctioned limit Rs.65.000 Million last year Rs.65.000 Millions)	25.939	15.510
Loan from ICICI Bank against hypothecation of Farklift	0.000	0.081
Loan from Bank against hypothecation of Vehicle	4.187	1.452
Total	30.126	17.043
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Members aand Directors	45.857	21.897
Sales tax loan under deferral scheme for backward area	4.000	4.000
Total	49.857	25.897

Banking Relations :	--
Auditors :
Name :	GHP and Associates Chartered Accountants
Address :	195, Laxmi Nivas, 1^st Floor, Thakurdwar Road, Mumbai – 400002, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	ABTPP0394E

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs. 10/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
250000	Equity Share	Rs.10/- each	Rs.2.500 Millions

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		2.500	2.500	2.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		95.038	84.158	68.925
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		97.538	86.658	71.425
LOAN FUNDS
1] Secured Loans		30.126	17.043	12.979
2] Unsecured Loans		49.857	25.897	53.450
TOTAL BORROWING		79.983	42.940	66.429
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		177.521	129.598	137.854
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		59.264	33.306	24.404
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		1.022	0.706	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	43.051	41.866	47.668
	Sundry Debtors	61.907	56.320	53.053
	Cash & Bank Balances	7.107	5.692	7.179
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	34.772	34.327	46.373
Total Current Assets		146.837	138.205	154.273
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	22.596	36.716	15.398
	Other Current Liabilities	6.126	5.020	6.404
	Provisions	0.880	0.883	19.502
Total Current Liabilities		29.602	42.619	41.304
Net Current Assets		117.235	95.586	112.969
MISCELLANEOUS EXPENSES		0.000	0.000	0.481
TOTAL		177.521	129.598	137.854

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	636.571	540.612	595.804
		Other Income	1.305	3.102	4.338
		TOTAL (A)	637.876	543.714	600.142
Less	EXPENSES
		Material Consumed	488.930	400.176
		Manufacturer Expenses	50.724	42.374
		Employees Remuneration and Benefits	32.710	30.444
		Administrative and Other Expenses	19.340	18.642
		Selling and Distribution Expenses	8.707	7.773
		Duties and Taxes	6.365	2.931
		Increases / (Decreases) in stock	(1.448)	6.476
		TOTAL (B)	605.328	508.816	571.898
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		32.548	34.898	28.244
Less	FINANCIAL EXPENSES (D)		6.758	5.060	6.583
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		25.790	29.838	21.661
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.081	5.342	3.334
	PROFIT BEFORE TAX (E-F) (G)		17.709	24.496	24.995
Less	TAX (H)		5.955	8.385	8.047
	PROFIT AFTER TAX (G-H) (I)		11.754	16.111	16.948
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		77.159	64.425	50.854
Less	APPROPRIATIONS
		Transfer to General Reserve	2.500	2.500	2.500
		Dividend	0.750	0.750	0.750
		Tax on Dividend	0.125	0.127	0.127
	BALANCE CARRIED TO THE B/S		85.538	77.159	64.425
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	12.232	12.232	NA
	TOTAL EARNINGS		12.232	12.232	NA
	IMPORTS
		Raw Materials	7.014	3.090	NA
		Plant and Machinery	15.362	0.946	NA
		Advance to good suppliers	1.632	1.124	NA
	TOTAL IMPORTS		24.008	5.160	NA
	Earnings Per Share (Rs.)		47.02	64.45	67.79

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.84	2.96	2.82
Net Profit Margin (PBT/Sales)	(%)	2.78	4.53	4.20
Return on Total Assets (PBT/Total Assets}	(%)	12.06	17.72	16.20
Return on Investment (ROI) (PBT/Networth)		0.18	0.28	0.35
Debt Equity Ratio (Total Liability/Networth)		1.12	0.99	1.51
Current Ratio (Current Asset/Current Liability)		4.96	3.24	3.74

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	No
10]	Designation of contact person	No
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	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
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

Note: Registered office of the company has been shifted from 30 Kala Udyog Premisesl, L B S Marg, Bhandup (West), Mumbai – 400078, Maharashtra, India to present address w.e.f.01.11.2011

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U32109MH1987PLC045076
Name of the company	ANAND ARC LIMITED
Address of the registered office or of the principal place of business in India of the company	701 Trade Centre, Bandra Kurla Complex, Bandra (East), Mumbai – 400052, Maharashtra, India Email: ghpurswani@yahoo.co.in
This form is for	Modification of charge
Charge identification number of the modified	ghpurswani@yahoo.co.in
Type of charge	Immovable property
Particular of charge holder	State Bank of India, Ashok Silk Compound, LBS Marg, Ghatkopar (West) Branch, Mumbai – 400086, Maharashtra, India Email: s.s.mishra@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Memorandum for recording extension of mortgage by deposit of title deeds covering enhanced limits and/or creation of equitable mortgage on additional properties for existing limit and enhanced limits and additional facilities.
Date of instrument Creating the charge	30.06.2012
Amount secured by the charge	Rs.115.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest WC CC - Improved pricing for the proposed enhanced CC Limit at 5.5% above SBAR Pre effective rate 15.50% above SBAR Pre eff rate 16.50% Terms of Repayment The Term Loan repayment will commence from the Month of October 2012 after a moratorium period of 2 Months Commencing from 1st August 2012 and will end on 31st March 2017. The repayment will be as indicated below on third column along with whatever interest applied to the account of this Term Loan. Margin Raw Materials Imported - 25%, Raw Materials Indigenous - 25%, Semi Finished Goods - 25%, Finished Goods - 25%, Components / Consumable / Spares - 100%, Receivables (Cover Period 105 days) - 40%, Export Packing Credit - 10% of FOB Value, Term Loan (Max Project cost Rs. 2.18 Cr) - 51.72%, Letter of Credit / Buyers Credit - 25%, Bank Guarantees - 25%. Extent and Operation of the charge Security to cover principal amount together with interest, costs, charges and expenses etc. Others Cash Credit - Rs. 80.000 Millions, EPC/EBD/EBP - (Rs. 10.000 Millions), Term Loan – 10.500 Millions, SLOC - Rs. 7.500 Millions, LC/Buyer's Credit – 15.000* Millions, BG - Rs. 2.500* Millions, Total Limits - Rs. 115.500 Millions. **100% Interchangeability between LC and BG Limit. All other terms and conditions as per the sanctioned letter and loan agreement.
Short particulars of the property charged	Extension of EM Charge on factory L and B at Plot 23, 24, 29 &30 at Gut No. 984 (P) at Shirgaon, Tal Palghar, Dist Thane.
Date of latest modification prior to the present modification	30.06.2012
Particulars of the present modification	The Borrowers by way of equitable mortgage by deposit of title deeds of Immovable properties at factory L and B at Plot 23, 24, 29 and 30 at Gut No. 984 (P) at Shirgaon, Tal Palghar, Dist Thane has provided further security to secure the Facility Rs. 54.500 Millions now increased to Rs. 115.500 Millions

FIXED ASSETS

· Land

· Building Construction

· Computer

· Dyes

· Electrical Installation

· Furniturer and Fixture

· Office Equipments

· Plant and Machinery

· Telephone Systems

· Vehicles

· Motor Car

· Pager

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.55.64
UK Pound	1	Rs.88.10
Euro	1	Rs.69.83

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
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	6
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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

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.