MIRA INFORM REPORT

Report Date :

04.06.2012

IDENTIFICATION DETAILS

Name :	FUSION CHEMICALS AND PRODUCTS PRIVATE LIMITED
Registered Office :	Plot No. 8, I.D.A. Phase – I, Cherlapally, Hyderabad – 500051, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	17.01.1981
Com. Reg. No.:	01-002892
Capital Investment / Paid-up Capital :	Rs.1.600 Millions
CIN No.: [Company Identification No.]	U24110AP1981PTC002892
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Potassium Silicate, Lithium Silicate and Sodium Silicate
No. of Employees :	60 (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 110000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. There is some dip in the turnover and profitability of the company. However, 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. Suryanarayan
Designation :	Finance Head
Contact No.:	91-9949057971
Date :	05.05.2012

LOCATIONS

Registered Office / Factory:	Plot No. 8, I.D.A. Phase – I, Cherlapally, Hyderabad – 500051, Andhra Pradesh, India
Tel. No.:	91-40-27261880 / 27261509
Mobile No.:	91-9949057971 (Mr. Suryanarayan)
Fax No.:	91-40-27262206
E-Mail :	fusion1001@yahoo.com
Area :	1 Acre
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :

Mr. Sangaraju Manihar Raju

Designation :

Managing Director

Address :

2-23, Road No.3, Kakatiyanagar, Habsiguda, Ranga Reddy, Hyderabad – 500007, Andhra Pradesh, India

Date of Birth/Age :

15.08.1956

Date of Appointment :

14.02.1981

DIN :

00188956

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	U24110AP1981PTC002892	FUSION CHEMICAL AND PRODUCTS PRIVATE LIMITED	Managing director	14/02/1981	14/02/1981	-	Active	NO
2	L74210AP1970PLC001319	INCON ENGINEERS LIMITED	Director	15/03/1994	15/03/1994	-	Active	NO
3	U27320AP1992PTC013952	FUSION LASTEK TECHONOLOGIES PRIVATE LIMITED	Director	6/09/2001	6/09/2001	30/09/2009	Active	NO
4	U24239AP2004PTC042946	FUSION ADVANCED MATERIALS PRIVATE LIMITED	Director	2/09/2010	2/09/2010	-	Active	NO

Name :

Mr. Sreedhar Chowdhary

Designation :

Director

Address :

8-2-680/A, Road No.12, Banjarahills, Ranga Reddy, Hyderabad – 500034, Andhra Pradesh, India

Date of Birth/Age :

12.05.1951

Date of Appointment :

26.12.1994

DIN :

00188924

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	U29241AP1960PLC000861	OXYGEN EQUIPMENT AND ENGINEERING COMPANY LIMITED	Director	1/10/2009	5/04/1974	-	Active	NO
2	U27320AP1992PTC013952	FUSION LASTEK TECHONOLOGIES PRIVATE LIMITED	Director	6/03/1992	6/03/1992	-	Active	NO
3	U33100AP1991PTC013313	OXEECO MEDITEK PRIVATE LIMITED	Director	28/01/1994	28/01/1994	-	Active	NO
4	L74210AP1970PLC001319	INCON ENGINEERS LIMITED	Managing director	17/09/2010	17/09/1994	-	Active	NO
5	U24110AP1981PTC002892	FUSION CHEMICAL AND PRODUCTS PRIVATE LIMITED	Director	26/12/1994	26/12/1994	-	Active	NO
6	U29299AP2003PTC042151	OXEECO TECHNOLOGIES PRIVATE LIMITED	Director	27/12/2006	27/12/2006	-	Active	NO
7	U74900AP2008FTC059201	HARSCO INDIA PRIVATE LIMITED	Managing director	24/09/2009	20/06/2008	-	Active	NO
8	U27100AP2010PTC069079	HARSCO INDIA METALS PRIVATE LIMITED	Director	22/06/2010	22/06/2010	-	Active	NO
9	U72400AP2009PTC064745	HARSCO INDIA SERVICES PRIVATE LIMITED	Director	16/07/2010	16/07/2010	-	Active	NO
10	U24239AP2004PTC042946	FUSION ADVANCED MATERIALS PRIVATE LIMITED	Director	2/09/2010	2/09/2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Suryanarayan
Designation :	Finance Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Sangaraju Manihar Raju	10280
G. Sreedhar Chaowdhary	65800
G. Renuka Chaowdahry	5800
G. Jayadev Chaowdhary	8400
S Manohar Raju	69720
Total	160000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Potassium Silicate, Lithium Silicate and Sodium Silicate
Exports :
Products :	· Potassium Silicate · Lithium Silicate · Sodium Silicate
Countries :	· Malaysia · Africa · UAE
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS As on 31.03.2011

Particulars	Unit	Installed Capacity	Actual Production
Potassium and Sodium Silicate	Tonnes	2400	2642.202
Zirconium Frit	Tonnes	180	100.000
Lacquer	Litres	60,000	107.215

GENERAL INFORMATION

Suppliers :

· Andhra Sugars Limited

Customers :

Wholesalers and Retailers

· Nalco

· Malos Electro

No. of Employees :

60 (Approximately)

Bankers :

State Bank of Hyderabad, Habsiguda Branch, Habsiguda, Hyderabad – 500007, Andhra Pradesh, India

Facilities :

CC Rs.9.000 Millions

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
From State Bank of Hyderabad
Working capital Loans	2.321	3.645
Vehicle loan from profit and loss account	0.353	0.904
Total	2.674	4.549

Banking Relations :	--
Auditors :
Name :	Brahmayya and Company Chartered Accountant
Address :	403 and 404, Gloden Green Apartments,Irrum Manzil Colony, Hyderbad, Andhra Pradesh – 500082, India
PAN.:	AADFB8032G
Associates :	Fusion Advanced Materials Private Limited

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
160000	Equity Shares	Rs.10/-each	Rs.1.600 Millions

Note: Of the above shares 120,000 equity shares are allotted as fully paid up by way of bonus shares by capitalizing general reserve

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		1.600	1.600	1.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		26.300	26.427	26.020
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		27.900	28.027	27.620
LOAN FUNDS
1] Secured Loans		2.674	4.549	4.819
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		2.674	4.549	4.819
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		30.574	32.576	32.439
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.554	6.460	6.211
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		1.072	1.396	1.340
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.377	5.080	5.304
	Sundry Debtors	9.935	11.054	10.864
	Cash & Bank Balances	13.211	12.264	12.249
	Other Current Assets	0.963	1.220	1.206
	Loans & Advances	3.904	4.891	7.610
Total Current Assets		32.390	34.509	37.233
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.083	5.683	4.664
	Other Current Liabilities	0.164	0.185	0.353
	Provisions	4.195	3.921	7.328
Total Current Liabilities		8.442	9.789	12.345
Net Current Assets		23.948	24.720	24.888
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		30.574	32.576	32.439

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	49.306	58.580	45.959
		Other Income	1.684	2.149	1.584
		TOTAL (A)	50.990	60.729	47.543
Less	EXPENSES
		Raw material Consumed	23.798	33.826	26.981
		Rates and taxes	0.113	0.132	1.435
		Power and Fuel	7.596	6.039	3.797
		Staff Cost	8.602	7.072	5.699
		Other Expenses	6.175	8.043	5.261
		Increase/ Decrease in Stocks	(0.300)	0.225	(0.938)
		Diminution in the value of Investments	0.325	(0.056)	0.047
		TOTAL (B)	46.309	55.281	42.282
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4.681	5.448	5.261
Less	FINANCIAL EXPENSES (D)		0.329	0.411	0.288
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.352	5.037	4.973
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.628	1.510	1.189
	PROFIT BEFORE TAX (E-F) (G)		2.724	3.527	3.784
Less	TAX (H)		0.992	1.254	1.275
	PROFIT AFTER TAX (G-H) (I)		1.732	2.273	2.509
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		10.927	11.520	10.947
Less	APPROPRIATIONS
		Transfer to General Reserve	1.000	1.000	1.000
		Dividend	1.600	1.600	0.800
		Tax on Dividend	0.259	0.266	0.136
	BALANCE CARRIED TO THE B/S		9.800	10.927	11.520
	EARNINGS IN FOREIGN CURRENCY		0.264	2.462	2.831
	Earnings Per Share (Rs.)		10.83	14.21	15.68

Particulars	31.03.2012
Sales Turnover (Approximately)	45.000 (High Cost of Raw Material)

Expected Sales (2012-2013): Rs.60.000 Millions

The above information has been parted by Mr. Suryanarayan - Finance Head

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.40	3.74	5.28
Net Profit Margin (PBT/Sales)	(%)	5.52	6.02	8.23
Return on Total Assets (PBT/Total Assets}	(%)	8.41	10.22	8.71
Return on Investment (ROI) (PBT/Networth)		0.11	0.12	0.14
Debt Equity Ratio (Total Liability/Networth)		0.30	0.35	0.62
Current Ratio (Current Asset/Current Liability)		3.84	3.52	3.02

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	Yes
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	Yes
13) Reasons for variation <> 20%	Yes
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
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

Review Operations:

This year they are able to achieve the sales of Potassium Silicate, Sodium Silicate and Zirconium Frit to the extent of Rs.50.778 millions [Potassium Silicate and Sodium Silicate Quantity 2618.386 MT’s and Zirconium Frit 100.665 MT’s] there is an increase in sales to the extent of Rs.9.545 millions than previous year.

Contingent liabilities

Contingent Liabilities not provided for in the books of account on account of:

a. Disputed sales tax and excise duty liabilities are estimated at Rs.0.164 million (previous year Rs. 0.164 million).

b. Guarantees given by the bankers to the extent of Rs. 0.972 millions (previous year Rs.1.498 million).

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	90135258
Corporate identity number of the company	U24110AP1981PTC002892
Name of the company	FUSION CHEMICAL AND PRODUCTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.8IDA Phase-I, Cherlapally, Hyderabad – 500051, Andhra Pradesh, India
Type of charge	· Book Debts · Movable Property · Floating Charge · Immovable Property
Particular of charge holder	State Bank of Hyderabad, Habsiguda Branch, Habsiguda, Hyderabad – 500007, Andhra Pradesh, India Email: habsiguda@sbhyd.co.in
Nature of description of the instrument creating or modifying the charge	1.Agreement Of Hypothecation Of Goods And Assets, C.2 2.Letter Regarding The Grant Of Individual Limits Within The Overall Limit, C.5
Date of instrument Creating the charge	05.03.2008
Amount secured by the charge	Rs.9.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest ROI ON Cash Credit: 12.5% p.a, Further the rate will be subject to change as per the directives of the RBI and at the discretion of the bank from time to time. Terms of Repayment Working capital limits repayable on demand. Margin Margin on stocks: 25%, 50% on book debts (cover period 90 days), Margin on FLC 25%, tenor 90 days. Extent and Operation of the charge 1st Charge on and Hypothecation of stocks, book debts and other current assets of the company both present and future. 1st Charge on fixed assets of land and buildings, plant and machinery and other movable fixed assets of the company both present and future. Equitable mortgage of Factory land and buildings, situated at Plot # 8, IDA, Cherlapally, Hyderabad 500051 standing in the name of the company. Personal guarantee of the directors. Others Nature of facilities existing revised Cash Credit : 30.00 40.00 ODBCC : 10.00 -- IUBD : 10.00 -- D.P : 15.00 10.00 B G : 25.00 25.00 FLC : -- 15.00 Total : 90.00 90.00
Short particulars of the property charged	1st Charge on and Hypothecation of stocks, book debts and other current assets of the company both present & future. 1st Charge on fixed assets of land and buildings, plant and machinery and other movable fixed assets of the company both present and future. Equitable mortgage of Factory land and buildings, situated at Plot # 8, IDA, Cherlapally, Hyderabad 500051 standing in the name of the company. Personal guarantee of the directors.
Date of latest modification prior to the present modification	11.12.2006
Particulars of the present modification	No change WCL of Rs. 9.000 millions (CC: Rs 4.000 millions + D.P:Rs 1.000 million + BG:Rs. 2.500 millions + FLC:Rs. 1.500 millions ). 1st Charge on current assets of the company both present and future. 1st Charge on fixed assets of land and buildings, plant and machinery and other movable fixed assets of the company both present and future. Equitable mortgage of Factory land and buildings, situated at Plot # 8, IDA, Cherlapally, Hyderabad standing in the name of the company. Personal guarantee of the directors.

TRADE REFERENCE

· Andhra Sugars Limited

· Nalco

· Malos Electro

FIXED ASSETS:

• Land
• Factory - Building
• Plant and Machinery
• Furniture
• Vehicles
• Lab Equipments
• Computer
• Office Equipments
• Water Works

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.55.91
UK Pound	1	Rs.86.03
Euro	1	Rs.69.12

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--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	YES
--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	NO
--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.