MIRA INFORM REPORT

Report Date :

20.12.2012

IDENTIFICATION DETAILS

Name :	SUPERON SCHWEISSTECHNIK INDIA LIMITED
Registered Office :	A – 125 Okhla Industrial Area, Phase – II, New Delhi – 110 020
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	10.02.2004
Com. Reg. No.:	55-124558
Capital Investment / Paid-up Capital :	Rs.10.000 Millions
CIN No.: [Company Identification No.]	U27320DL2004PLC124558
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Welding Electrodes
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 480000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track record. Performance capacity of the company appears to be high. Financially seems to be strong. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Cash Credit = BBB-
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation it carry moderate credit risk
Date	May 2012

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 / Plant 1 :	A – 125 Okhla Industrial Area, Phase – II, New Delhi – 110 020, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	cshkbakshi2011@gmail.com
Website :	http://www.superonindia.com
Corporate Office / Export Office / Plant 2 :	552, Sector-37, Phase-II, Gurgaon - 122001, Haryana, India
Admin Office :	15-16, Old Sewa Nagar Market, P.O. Lodhi Road, New Delhi-110 003, India
Tel. No.:	91-11-24647199 / 24647252
Fax No.:	91-11-24633847 / 24623826
E-Mail :	sales@superonindia.com
Plant 3 :	191-D, Sector-4, Phase-II, IMT Manesar, Gurgaon -122050, Haryana, India
Plant 4 :	552, Sector-37, Pace City -II, Gurgaon – 122001, Haryana, India
Plant 5 :	35, Sector-35, Gurgaon - 122001, Haryana, India

DIRECTORS

As on 15.09.2012

Name :	Mr. Ram Rachhpal Sabherwal
Designation :	Director
Address :	K-54, B K Dutta Colony, Karbala, P.O. Lodhi Road, New Delhi – 110 003, India
Date of Birth/Age :	17.01.1929
Date of Appointment :	10.02.2004
DIN No.:	00375161
Name :	Mr. Sharad Mehra
Designation :	Director
Address :	N-90, Greater Kailash – I, New Delhi – 110 048, India
Date of Birth/Age :	11.07.1971
Date of Appointment :	10.02.2004
DIN No.:	00375213
Name :	Mr. Vinod Kumar Mehra
Designation :	Whole - Time Director
Address :	N-90, Greater Kailash – I, New Delhi – 110 048, India.
Date of Birth/Age :	24.10.1933
Date of Appointment :	01.04.2011
DIN No.:	01315669
Name :	Mr. Sanjay Mehra
Designation :	Director
Address :	N-90, Greater Kailash – I, New Delhi – 110 048, India
Date of Birth/Age :	25.02.1963
Date of Appointment :	10.02.2004
DIN No.:	01315712

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 15.09.2012

Names of Shareholders	No. of Shares
Sharad Mehra	82500
Sanjay Mehra	82500
Ram Rachhpal Sabherwal	10000
Gouri Mehra	405000
Vinod Kumar Mehra	10000
Archana Mehra	405000
Gaurav Mehra	5000
Total	1000000

As on 15.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Welding Electrodes

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Actual Production
Welding Electrodes and Industrial Maintenance Products	Kgs	6867890

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Kasturba Nagar Branch, D-31, South Extension Part – 1, New Delhi – 110 049, India.

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long Term Borrowings
Term Loans: Indian rupee loan from hanks	23.145	0.000
Short Term Borrowings
Cash Credit 1mm State Bank of India	35.021	42.277
From Financial Institution	17.885	0.000
Total	76.051	42.277
Unsecured Loan	As on 31.03.2012	As on 31.03.2011
Short Term Borrowings
Loans from Directors /Shareholders repayable on demand	4.328	3.710
Total	4.328	3.710

Banking Relations :	--
Auditors :
Name :	Arora Associates Chartered Accountants
Address :	705, Meghdoot, 94, Nehru Place, New Delhi – 110019, India
Tel. No.:	91-11-26432120 / 46561606
Fax No.:	91-11-26425745
E-Mail :	aroraassociates@airtelmail.in
PAN.:	AAAFA5178K
Enterprises over which KMP / relatives have significant influence or control	Safdarjang Motors Private Limited Safdarjang Service Station Stanvac Chemicals India Limited Superon Technik India Private Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1100000	Equity Shares	Rs.10/- each	Rs.11.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		10.000	10.000	10.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		112.212	74.731	65.122
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		122.212	84.731	75.122
LOAN FUNDS
1] Secured Loans		76.051	42.277	41.401
2] Unsecured Loans		4.328	3.710	9.248
TOTAL BORROWING		80.379	45.987	50.649
DEFERRED TAX LIABILITIES		12.986	7.338	5.726
TOTAL		215.577	138.056	131.497
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		214.121	138.261	131.669
Capital work-in-progress		4.420	3.234	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	62.430	54.808	38.265
	Sundry Debtors	7.972	9.107	8.512
	Cash & Bank Balances	13.502	14.569	13.731
	Other Current Assets	0.004	0.004	0.000
	Other Non- Current Assets	0.004	0.008	0.000
	Loans & Advances	60.996	60.864	30.194
Total Current Assets		144.908	139.360	90.702
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	69.514	53.480	38.527
	Other Current Liabilities	35.898	30.623	31.517
	Provisions	42.460	58.696	20.847
Total Current Liabilities		147.872	142.799	90.891
Net Current Assets		(2.964)	(3.439)	(0.189)
MISCELLANEOUS EXPENSES		0.000	0.000	0.017
TOTAL		215.577	138.056	131.497

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	854.139	759.884	576.421
		Other Income	0.693	0.397	0.431
		TOTAL (A)	854.832	760.281	576.852
Less	EXPENSES
		Cos! of raw materials consumed	635.330	604.684
		Purchaser of Traded goods	4.068	4.868
		Increase / (Decrease) in Inventors of finished goods. work- in-progress and Traded goods	8.943	(18.569)	526.189
		Employee benefit expenses	78.925	61.319
		Other expenses	53.593	52.057
		TOTAL (B)	780.859	704.359	526.189
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		73.973	55.922	50.663
Less	FINANCIAL EXPENSES (D)		12.636	3.012	2.341
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		61.337	52.910	48.322
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.394	3.427	2.546
	PROFIT BEFORE TAX (E-F) (G)		55.943	49.483	45.776
Less	TAX (H)		18.462	16.552	15.939
	PROFIT AFTER TAX (G-H) (I)		37.481	32.931	29.837
Less/ Add	Earlier year tax adjustment		(0.002)	0.000	(0.053)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		71.231	65.122	35.338
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	3.500	0.000
		Interim Dividend	0.000	20.000	0.000
		Tax on Dividend	0.000	3.322	0.000
	BALANCE CARRIED TO THE B/S		108.712	71.231	65.122
	EARNINGS IN FOREIGN CURRENCY		0.572	1.450	NA
	IMPORTS
		Raw Materials	16.504	17.387	30.980
		Trade Goods	0.367	0.970
		Capital Goods	2.736	0.000	0.000
	TOTAL IMPORTS		19.607	18.357	30.980
	Earnings Per Share (Rs.)		37.48	32.93	29.84

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.38	4.33	5.17
Net Profit Margin (PBT/Sales)	(%)	6.55	6.51	7.94
Return on Total Assets (PBT/Total Assets}	(%)	15.58	17.82	20.59
Return on Investment (ROI) (PBT/Networth)		0.46	0.58	0.61
Debt Equity Ratio (Total Liability/Networth)		1.87	2.23	1.88
Current Ratio (Current Asset/Current Liability)		0.98	0.98	1.00

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	Yes
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	Yes

OPERATIONAL PERFORMANCE

The Company is engaged in manufacturing and selling of welding electrodes and industrial maintenance products.

The total revenue of the company was Rs. 854.832 Millions during the current year and Rs. 760.281 Millions during the last year marking an increase of 12.43% Profit before depreciation and finance cost was Rs.73.973 Millions during the current year and Rs.55.922 Millions during the test year showing a growth of 32.20%. Net profit from continuing operations was Rs.37.481 Millions this years where the same was Rs.32.931 Millions last year showing a rise of 13.98%.

PROSPECTS OF THE COMPANY

The company has made a dent in the market at home and abroad. Its increasing retail chain is the vibrant expectation of the company. The increasing competition from multinational and domestic brands has started fighting shy of the company products Yours directors are now confident to achieve higher growths in the coming year. Your company enjoys reputation for the brands owned by it as a contemporary quality manufacturer offering its products equivalent to latest international technology and standards. Your company is now in a position to fully exploit the spurt of the demand expected M the limes to come.

CONTINGENT LIABILITIES

Rs. In Millions

Particulars	31.03.2012	31.03.2011
Estimated amount of contract remaining to be executed on capital account	0.000	2.792
Bank Guarantees	26.350	0.000

FIXED ASSETS:

• Land
• Furniture
• Fire Fighting Equipments
• Machinery
• Microscope
• Water cooler
• Computer
• Electrical Fittings
• Dies and Cast
• Attendance Machine
• Building
• Air Cooler
• Air Conditioner
• Fax Machines
• Vaccum Cleaner
• Car
• Bicycle
• Generator
• Loading Camer
• EPABX/Telephone

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.54.74
UK Pound	1	Rs.89.02
Euro	1	Rs.72.48

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
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	6
--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
TOTAL		49

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.