MIRA INFORM REPORT

Report Date :

13.03.2012

IDENTIFICATION DETAILS

Name :	MPM PRIVATE LIMITED
Formerly Known As :	MINERAL PULVERISING MILLS PRIVATE LIMITED
Registered Office :	M-22,MIDC, Hingna Industrial Area, Nagpur – 440016, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.01.1996
Com. Reg. No.:	11-95899
Capital Investment / Paid-up Capital :	Rs.17.069 Millions
CIN No.: [Company Identification No.]	U24110MH1996PTC095899
TAN No.: [Tax Deduction & Collection Account No.]	NGPM03696A
PAN No.: [Permanent Account No.]	AACCM1261A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Foundry Chemicals and Lustron.
No. of Employees :	80 (Approximately) (Office + Contract basis Workers)

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 380000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are 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.

INFORMATION PARTED BY

Name :	Mr. Ashwin
Designation :	Finance and General Manager
Contact No.:	91-7104-232401
Date :	10.03.2012

LOCATIONS

Registered/ Head Office/ Factory :	M 22, MIDC, Hingnain Industrial Estate, Nagpur – 440016, Maharashtra, India
Tel. No.:	91-7104-232401/ 232402/ 237065
Fax No.:	91-7104-237223
E-Mail :	mpm@vsnl.com info@mpmindia.com deepak@mpmindia.com ashwin@mpmindia.com
Website :	http://www.mpmindia.com
Location :	Owned
Corporate Office	501, A/B, Niranjan, 99 Marine Drive, Mumbai – 400020, Maharashtra, India
Branch Office :	Located at : · Chennai · Navi Mumbai · Kolhapur · Coimbatore · Gurgaon · Pune · Kolkata · Hyderabad · Ahmedabad

DIRECTORS

(AS ON 16.09.2011)

Name :	Mr. Deepak Jugalkishore Chowdhary
Designation :	Managing Director
Address :	Plot No.2, Gandhi Nagar, Nagpur-440010, Maharashtra, India
Date of Birth/Age :	13.10.1958
Qualifications :	B. Com
Date of Appointment :	03.01.1996
DIN No.:	00332918
Name :	Mrs. Shakuntala Jugalkishore Chowdhary
Designation :	Director
Address :	Plot No.2, Gandhi Nagar, Nagpur-440010, Maharashtra, India
Date of Birth/Age :	09.10.1937
Qualification:	Graduate
Date of Appointment :	28.08.1996
DIN No.:	00584015
Name :	Mr. Diwakar Govind Shastri
Designation :	Director
Address :	87/B, Empress Mill Colony, Behind Medical College, Nagpur-440027, Maharashtra, India
Date of Birth/Age :	24.08.1965
Qualifications :	Diploma in Engineering
Date of Appointment :	30.06.2000
DIN No.:	00334006
Name :	Ms. Anushree Chowdhary
Designation :	Director
Address :	Plot No. 2, Gandhi Nagar, Nagpur-440010, Maharashtra, India
Date of Birth/Age :	22.09.1985
Date of Appointment :	30.09.2008
DIN No.:	01864859
Name :	Ms. Aditi Deepak Chowdhary
Designation :	Director
Address :	Plot No. 2, Gandhi Nagar, Nagpur-440010, Maharashtra, India
Date of Birth/Age :	04.09.1983
Date of Appointment :	30.09.2008
DIN No.:	00333637

KEY EXECUTIVES

Name :	Mr. Ashwin
Designation :	Finance and General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 16.09.2011)

Names of Shareholders	No. of Shares
Deepak Chowdhary	1545733
Shakuntala Chowdhary	91998
Neena Chowdhary	66168
Baluram Biliochpuria	2
Aditi Chowdhary	1000
Anushree Chowdhary	1000
Anirudh Chowdhary	1000
Total	1706901

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Foundry Chemicals and Lustron.

Products :

Products Description	Item Code No.
Lustron – F Lustron Mould – Aid	3824

Exports :

Products :

Foundry chemicals and Lustron

Countries :

· UK

· Malaysia

Imports :

Products :

Raw Materials

Countries :

· China

· UK

Terms :

Selling :

L/C, Cash and Credit (30-60 days)

Purchasing :

L/C, Cash and Credit (30-60 days)

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

No. of Employees :

80 (Approximately) (Office + Contract basis Workers)

Bankers :

· State Bank of India

Industrial Finance Branch, Bharat Nagar, Amravati Road, Nagpur – 440033, Maharashtra, India

· HDFC Bank

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
SBI Factor Bill Discounting (Secured against Book Debts)	14.485	6.946
State Bank of India
- Cash Credit (Secured against stock and book debts)	129.837	98.268
- Packing Credit	(0.002)	(0.002)
The Financial Services Limited (Car Loan)	0.000	0.031
HDFC Bank Limited (Car Loan)	2.234	3.501
Total	146.554	108.744
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Directors	11.420	11.213
From Directors Relatives	0.150	0.150
From Shareholders	0.350	0.350
From Others	15.240	8.508
Total	27.160	20.221

Banking Relations :	--
Auditors :
Name :	Aurangabadkar and Company Chartered Accountants
Address :	Plot No. 2, Indradhanush, SBI Colony, Amravati Road, Nagpur – 440033, Maharashtra, India
PAN No.:	AACFA2752M
Subsidiary Companies:	· MPM – Durrans Refracoat Private Limited U27106MH2007PTC169690 · MPM-GTP Foundry Technologies Private Limited U28112MH2011PTC213008

CAPITAL STRUCTURE

(AFTER - 16.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs.25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1956901	Equity Shares	Rs.10/- each	Rs.19.569 Millions

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1706901	Equity Shares	Rs.10/- each	Rs.17.069 Millions

NOTE:

Of the above, 72700 equity shares of Rs.10/- each are allotted as fully paid up by way of bonus shares by capitalisation of surplus in profit and loss account.

Of the above, 106901 equity shares of Rs.10/- each are allotted as fully paid up shares for consideration other than cash

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		17.069	12.069	9.569
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		77.614	75.549	70.968
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		94.683	87.618	80.537
LOAN FUNDS
1] Secured Loans		146.554	108.744	83.526
2] Unsecured Loans		27.160	20.221	34.222
TOTAL BORROWING		173.714	128.965	117.748
DEFERRED TAX LIABILITIES		5.923	4.578	0.000
TOTAL		274.320	221.161	198.285
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		58.551	61.547	52.740
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		17.716	10.413	7.984
DEFERREX TAX ASSETS		0.000	0.000	1.375
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	111.454	53.237	53.150
	Sundry Debtors	223.434	167.434	134.755
	Cash & Bank Balances	27.811	13.390	7.735
	Other Current Assets	8.392	3.020	3.044
	Loans & Advances	22.357	16.051	15.471
Total Current Assets		393.448	253.132	214.155
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	147.712	66.579	56.711
	Other Current Liabilities	47.683	35.945	20.180
	Provisions	0.000	1.407	1.078
Total Current Liabilities		195.395	103.931	77.969
Net Current Assets		198.053	149.201	136.186
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		274.320	221.161	198.285

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	841.669	581.186	517.567
		Other Income	4.891	5.036
		TOTAL (A)	846.560	586.222	517.567
Less	EXPENSES
		Cost of Goods Sold	122.532	104.454
		Raw Materials Consumed	526.069	312.067
		Manufacturing Expenses	34.088	23.805
		Administrative Expenses	63.677	53.782
		Selling and Distribution Expenses	66.096	52.286
		TOTAL (B)	812.462	546.394	525.649
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		34.098	39.828	(Including Financial Expenses)
Less	FINANCIAL EXPENSES (D)		25.069	20.875
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.029	18.953	(8.082)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.840	4.567	3.492
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		4.189	14.386	(11.574)
Less	TAX (H)		2.125	8.398	(4.487)
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		2.064	5.988	(7.087)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	56.984	64.071
Less	APPROPRIATIONS
		Proposed Dividend	NA	1.207	0.000
		Tax on Dividend	NA	0.200	0.000
	BALANCE CARRIED TO THE B/S		NA	61.565	56.984
	EARNINGS IN FOREIGN CURRENCY		54.196	25.926	49.909
	IMPORTS VALUE		274.943	193.836	225.120
	Earnings Per Share (Rs.)		1.21	NA	NA

Expected Sales (2011-12): Rs.930.000 Millions

The above information has been parted by Mr. Ashwin

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.24	1.02	(1.37)
Net Profit Margin (PBT/Sales)	(%)	0.50	2.48	NA
Return on Total Assets (PBT/Total Assets}	(%)	0.93	4.57	(4.34)
Return on Investment (ROI) (PBT/Networth)		0.04	0.16	(0.14)
Debt Equity Ratio (Total Liability/Networth)		3.90	2.66	2.43
Current Ratio (Current Asset/Current Liability)		2.01	2.44	2.75

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Sundry Creditors	147.712	66.579	56.711
Total	147.712	66.579	56.711

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	-----
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last two years	Yes
Profitability for last three years	No
Reasons for variation <> 20%	-----
Estimation for coming financial year	Yes
Capital in the business	No
Details of sister concerns	-----
Major Suppliers	No
Major Customers	No
Payments Terms	Yes
Export/ Imports Details (If applicable)	Yes
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	-----
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	No
Incorporation details is applicable	-----
Last Accounts filed at ROC	-----
Major Shareholders, if available	-----

FINANCIAL PERFORMANCE:

The Sales of performance of the company recorded an impressive Increase of 44%. However, profits have declined due to increased costs incurred to support the increased sales volumes. Additionally,

Additionally, there were unexpected increases in the costs of raw-material inputs over which the company supply chain logistic has no control since they are related to bulk supplies like coal. While suppliers are bulk and increase prices on short notice, the customer base of the company involves auto component manufacturers like foundries who resist price hikes very severely. The need to strike a balance between the raw material input Increase and corresponding movement with customers for sales price increases therefore has a gestation period which is significant

Two advantages have emerged from the above scenario:

· The increase in the sales volume has resulted in the widening of the company's business base which can be very beneficial in terms of securing increased profits once the price increases are received.

· Marginally increasing the borrowing power of your company's prices in our negotiation with suppliers.

· The company has also undertaken a campaign to control costs and rationalize its business in order to improve profitability.

MARKET SCENARIO

The Car and Commercial vehicle segment continues to remain steady and foundries have been producing upto capacity through out the year However there are signs of slow down on account of higher financing costs due to Increased Interest rates as a result of the RBI measure to control the rapid increase in inflation that has remained double digit throughout the fiscal year

Foundries are implementing capacity expansion programs initiated earlier during the last fiscal due to high lead times in orders and delivery of machinery. Whether this capacity will be now excess remains to be seen in view of the reduced spending on cars and commercial vehicles.

The company therefore continues to operate in a very dynamic business eco-system which in the final reckoning is dictated by the passenger car and commercial vehicle manufacturers who give business to the customers who are manufacturing the auto components.

ECONOMIC SCENARIO:

The high rate of inflation and significant increase in the Interest rates by SBI from a starting Base Rate of 7.50% at the beginning of the financial year and ending with 8.25% as on date has also dampened the business of-take of the customers due to increased costs of purchase by the ultimate consumer: "The Common Man".

The growing challenges to the international economies which are still in worrisome territory by uncontrolled U.S. debt expansion coupled with the fragility of the Euro Zone, which now sees Italy also on the brink of economic crisis, makes the entire business environment very turbulent and hazy. The company is doing its best to predict next six months business profitability and trying to fashion its business model as conservatively as possible

The management reserves its projections on the economy but assures that an eye will be maintained on the possible fluctuations and in their ability to react decisively on any given circumstances.

FORM 8:

Corporate identity number of the company	U24110MH1996PTC095899
Name of the company	MPM PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	M-22, 501, A/B, Niranjan, 99, Marindrive, Mumbai-400020, Maharashtra, India deepak@mpmindia.com
This form is for	Modification of charge
Charge identification number of the modified	10065622
Type of charge	Book Debts Movable property (Not being pledge) Floating Charge
Particular of charge holder	· State Bank of India Industrial Finance Branch, Bharat Nagar, Amravati Road, Nagpur – 440033, Maharashtra, India tushar.manikkuwar@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Supplemental Agreement of loan for increase in the overall limit Supplemental Agreement of hypothecation of goods and assets for increase in the overall limit Letter regarding the grant of individual limits within the overall limits
Date of instrument Creating the charge	25.11.2010
Amount secured by the charge	Rs.265.400 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest CC: at 5.00% above base rate, present effective rate 12.60% p.a. EPC/FBD: 1.50% above base rate, present effective rate 9.10% p.a. L/C and B/G: commission as per rates in force from time to time. Terms of Repayment Cash Credit: On Demand Margin Raw Material: 25% Finished Goods: 25% Received (Domestic): 40% Receivables (Exports): 10% EPC: 10% Bank Guarantee: 15% Letter of credit: 15% Extent and Operation of the charge Hypothecation of entire stocks, comprising raw materials, stock in process, finished goods, consumable stores and spares, book debts, outstanding moneys, receivables, claims and bills at the factory of the company at Nagpur, or at such places as may be approved by the bank from time to time including goods in transit / shipment, outstanding moneys, book debts, receivables etc. and hypothecation of all movable machinery, excluding vehicles financed by private banks.
Short particulars of the property charged	Hypothecation of entire stocks, comprising raw materials, stock in process, finished goods, consumable stores and spares, book debts, outstanding moneys, receivables, claims and bills at the factory of the company at Nagpur, or at such places as may be approved by the bank from time to time including goods in transit / shipment, outstanding moneys, book debts, receivables etc. and hypothecation of all movable machinery, excluding vehicles financed by private banks
Date of last modification prior to the present modification	20/02/2010
Particulars of the present modification	By the present modification the CC Limit was increased from Rs.102.500 Millions to Rs.145.000 Millions, LC Limit was increased from Rs.70.000 Millions to Rs. 115.000 Millions and a new derivative limit for forward contracts of Rs.5.400 Millions was sanctioned. Thus the total credit facilities stand at Rs.265.400 Millions. Bifurcation of facilities are as under: CC: Rs.145.000 Millions (CC TR.: Rs.30.000 Millions EPC/FBD: Rs.30.000 Millions both within CC) L/C: Rs. 115.000 Millions (BG: Rs.5.000 Millions within L/C) FC: 5.400 Millions Total Rs. 265.400 Millions

FIXED ASSETS:

· Land Leasehold

· Building

· Plant and Machinery

· Electrical Installation

· Generator

· Computer and Peripherals

· Furniture and Fixtures

· Office Equipments

· Vehicle

· Truck

· Lab Equipments

· Technical Knowhow

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.49.94
UK Pound	1	Rs.78.25
Euro	1	Rs.65.40

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	YES
--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.