MIRA INFORM REPORT

Report Date :

16.06.2012

IDENTIFICATION DETAILS

Name :	CLASSIC WELDING PRODUCTS PRIVATE LIMITED
Registered Office :	G -12 and G -13, 9^th Phase Sidco Industrial Estates, Krishnagiri DT. Hosur – 635126, Tamil Nadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.03.1994
Com. Reg. No.:	18-010547
Capital Investment / Paid-up Capital :	Rs.18.000 millions
CIN No.: [Company Identification No.]	U00289TZ1994PTC010547
TAN No.: [Tax Deduction & Collection Account No.]	CHEC04589E
PAN No.: [Permanent Account No.]	AABCC5578K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Plastic Packaging Material.
No. of Employees :	150 (Approximately)

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 246000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well 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. Prasanna Venkateshan
Designation :	Account Manager
Contact No.:	91-4344-277801
Date :	14.06.2012

LOCATIONS

Registered Office/ Factory.1 :	G -12 and G -13, 9^th Phase Sidco Industrial Estates, Krishnagiri DT. Hosur – 635126, Tamil Nadu, India
Tel. No.:	91-4344-277209/ 277801/ 400328/ 400329
Fax No.:	91-4344-277801
E-Mail :	cwp@eth.net www.classicwelding.in sales@cwp.co.in cwphsr@airtelmail.in
Website :	http://www.classicwelding.in
Area :	5000 Sq.ft
Location :	Owned
Factory.2 :	Plot no. K7 (2), Sipcot Industrial Park, Phase II, Sriperumbudur - 602105. Kancheepuram Dist.
Tel. No.:	91-44-27168072 / 73
Fax No.:	91-4344-277801
Area :	Owned
Location :	11000 Sq.ft

DIRECTORS

As on 26.09.2011

Name :	Mr. Nurani Chandrachudamani Ramakrishnan
Designation :	Director
Address :	Sivakmi Niketan, 24/345, Nurani Extn, Palakkad – 678004, Kerala, India
Date of Birth/Age :	24.08.1956
Date of Appointment :	08.04.2003
DIN No.:	00912819
Name :	Mr. Nurani Chandrachoodamani Krishnan
Designation :	Director
Address :	Sivakmi Niketan, 24/345, Nurani Extn, Palakkad – 678004, Kerala, India
Date of Birth/Age :	18.03.1960
Date of Appointment :	08.04.2003
DIN No.:	00995708
Name :	Mr. Nurani Chandrachudamani Jayaram
Designation :	Director
Address :	Sivakmi Niketan, 24/345, Nurani Extn, Palakkad – 678004, Kerala, India
Date of Birth/Age :	26.06.1966
Date of Appointment :	08.04.2003
DIN No.:	00913154

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.09.2011

Names of Shareholders	No. of Shares
N.C Ramakrishnan	64500
Sivakama Sundari	9000
N.C Krishan	15000
Lakshmi Krishan	9000
N.C Jayaram	67200
N.C Lakshmi Narayan	11700
N.R. Chandrachudamani	1800
N.V. Pattamal	1800
Total	180000

As on 26.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Plastic Packaging Material.
Products:	· Lamination film · Stretch film · PE shrink film · PE Foam film
Imports :
Products :	Raw Material
Countries :	· Singapore · Gulf Countries
Terms :
Selling :	Cash / Credit
Purchasing :	Cash / Credit

PRODUCTION STATUS(AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Hosur and Chennai	Tons	5000	5000	3296

GENERAL INFORMATION

Suppliers :

· Reliance Industries

· Haldia Petrochemicals

Customers :

Retailers

· T.T.K

No. of Employees :

150 (Approximately)

Bankers :

· Axis Bank Limited, Palaniappa Building No 10/77-28, Bye Pass Road, Hosur - 635109, Tamil Nadu, India

· HDFC Bank

· Small Industries Development Bank Of India, 643/1d, RKG Manor, First Floor, Nh-7 Bangalore Road, Hosur - 635109, Tamil Nadu, India

Facilities :

Cash and Credit Rs.87.500 millions/ LC – Rs.10.000 Millions/ TL – Rs.20.000 Millions (From Axis Bank) Hosur TL – Rs.10.000 Millions (From SIDBI Bank)

SECURED LOAN	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
TERM LOAN SIDBI - Hosur unit SIDBI	16.406	10.771
SIDBI - chennai unit	12.680	15.680
Sundaram Finance Limited	1.294	1.866
SIDCO	0.000	0.143
HDFC Bank	0.336	0.666
Total	30.716	29.126
UNSECURED LOAN	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Shareholders	5.093	3.924
Total	5.093	3.924

Banking Relations :	--
Financial Intuitions:	Sundaram Finance Limited, No.21, Patullos Road, Chennai – 600002, Tamil Nadu, India
Auditors :
Name :	Thanthoni And Krishna Chartered Accountant
Address :	No A 25, Gokul, Sipcot Housing Colony Phase 1, Hosur – 635126, Tamil Nadu, India
Tel. No.:	91-4344-276320/ 275000
Qualification:	B.Com. F.C.A
PAN.:	AACFT1538Q

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
180000	Equity Shares	Rs.100/- each	Rs.18.000 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		18.000	18.000	9.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		43.697	31.693	29.345
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		61.697	49.693	38.345
LOAN FUNDS
1] Secured Loans		30.716	29.126	20.839
2] Unsecured Loans		5.093	3.924	5.007
TOTAL BORROWING		35.809	33.050	25.846
DEFERRED TAX LIABILITIES		0.512	0.512	0.358
TOTAL		98.018	83.255	64.549
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		59.111	52.861	30.236
Capital work-in-progress		0.000	4.232	20.359
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.551	0.423	0.423
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	33.702	20.640	7.119
	Sundry Debtors	61.382	55.065	41.016
	Cash & Bank Balances	3.661	1.903	3.638
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	7.206	5.035	5.192
Total Current Assets		105.951	82.643	56.965
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	10.175	12.097	11.042
	Other Current Liabilities	51.600	41.308	27.293
	Provisions	5.820	3.499	5.099
Total Current Liabilities		67.595	56.904	43.434
Net Current Assets		38.356	25.739	13.531
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		98.018	83.255	64.549

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Turnover	445.612	336.098	260.227
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		26.169	24.312	21.912
Less/ Add	DEPRECIATION/ AMORTISATION		8.194	7.938	2.771
	PROFIT BEFORE TAX		17.975	16.374	19.141
Less	TAX		6.099	3.894	6.661
	PROFIT AFTER TAX		11.876	11.503	12.480
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		30.844	28.495	16.015
	Bonus share Issued		0.000	9.000	0.000
	BALANCE CARRIED TO THE B/S		42.848	30.844	28.495
	IMPORTS
		Plastic Granules	95.418	51.997	0.000
	TOTAL IMPORTS
	Earnings Per Share (Rs.)		66.69	1335.16	1468.28

(Rs. In millions)

Particulars	31.03.2012
Sales Turnover (Approximately)	540.000

Expected Sales (2012-2013): Rs.Rs.700.000 millions

The above information has been parted by Mr. Prasanna Venkateshan.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Return on Total Assets (PBT/Total Assets}	(%)	10.89	12.08	21.95
Return on Investment (ROI) (PBT/Networth)		0.29	0.33	0.50
Debt Equity Ratio (Total Liability/Networth)		1.68	1.81	1.81
Current Ratio (Current Asset/Current Liability)		1.57	1.45	1.31

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%	--
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

Bankers Charges Report as per Registry

Corporate identity number of the company	U00289TZ1994PTC010547
Name of the company	CLASSIC WELDING PRODUCTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	G 12 D 7 9th Phase Sidco Industrial Estates, Krishnagiri DT. Hosur – 635126, Tamil Nadu, India cwp@eth.net
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10177309
Type of charge	Immovable property
Particular of charge holder	Axis Bank Limited, Palaniappa Building No 10/77-28, Bye Pass Road, Hosur - 635109, Tamil Nadu, India hosur.branchhead@axisbank.com
Nature of instrument creating charge	Declaration cum confirmation deed
Date of instrument Creating the charge	05.01.2012
Amount secured by the charge	Rs.150.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit- 3.50 % p.a. above Axis Bank Rate. Term Loan- Base Rate plus 3.70 % p.a . i.e. presently 13.70 % p.a. Terms of Repayment Cash Credit- On Demand Term Loan- Commencing from 29th February 2012. First 12 installments Rs. 0.400 millions each, next 12 Installments Rs. 0.600 millions each, next 47 installments Rs. 0.800 millions each and last installment Rs. 0.400 millions. Total 72 installments. Margin Cash Credit- Raw Material, Stock- in- Process, Finished Good and Packing Material, Stores and Spares, Book Debts (Cover period 90 days)-25 % Letter of Credit (Inland/ Import)- 10% Cash Margin Bank Guarantee-(Inland/ Foreign)- 10 % Term Loan- (Own Contribution)- 26 % Extent and Operation of the charge Equitable Mortgage of leasehold KIADB land at Plot No. 42-P2 and 41 (P) in Sy. No. 42 at Bommasandra, Jigani Link Road, Bangalore Urban District measuring 3904 Sq. Mt standing in the name of the company extended to the overall total limit of Rs. 150.000 millions.
Short particulars of the property charged	EM of leasehold KIADB land at Plot No. 42-P2 and 41(P)in Sy.No. 42 at Bommasandra,Jigani Link Rd. Bangalore Urban Dt. measuring 3904 Sq.Mt.in the name of the Co.extend to the overall limit Rs.150.000 millions
Particulars of the present modification	Equitable Mortgage of leasehold KIADB land at Plot No. 42 P2 and 41 (P) in Sy. No. 42 at Bommasandra, Jigani Link Road, Bangalore Urban District measuring 3904 Sq. Mt. standing the name of the Company extended to the overall total limit of Rs.150.000 millions

FIXED ASSETS

· Land

· Building

· Machinery

· Furniture and fixture

· Electrical Installation

· Computer

· Motor Vehicles

· Fax

· Generator

· Telephone

TRADE REFERENCE

· T.T.K

· Reliance Industries

· haldia petrochemicals

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.55.76
UK Pound	1	Rs.86.69
Euro	1	Rs.70.44

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	DPK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--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	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	NO
--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.