MIRA INFORM REPORT

Report Date :

19.03.2012

Tel. No.:	91-20 66011009/66011001/66011002/66011003/66011004/66011005/24011001
Fax No.:	91-20-66011010 /24011010

IDENTIFICATION DETAILS

Name :	NICHROME INDIA LIMITED
Registered Office :	Safire Park Galleria, 2^nd Floor, 4, Mumbai-Pune Road, Wakdewadi, Shivaji Nagar, Pune-411 005, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.01.1960
Com. Reg. No.:	11-11575
Capital Investment / Paid-up Capital :	Rs.66.124 Millions
CIN No.: [Company Identification No.]	U28113MH1960PLC011575
TAN No.: [Tax Deduction & Collection Account No.]	PNEN00250F
PAN No.: [Permanent Account No.]	AAACT4161C
Legal Form :	A closely held public limited liability company.
Line of Business :	Manufacturer and Exporter of Packaging Machines.
No. of Employees :	200 (approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 632792
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an old and 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. Santosh Mahabaleshwar
Designation :	Accounts Manager
Contact No.:	91-20-32507082
Date :	24.02.2012

LOCATIONS

Registered Office/ Corporate Office :	Safire Park Galleria, 2^nd Floor, 4, Mumbai-Pune Road, Wakdewadi, Shivaji Nagar, Pune-411 005, Maharashtra, India
Tel. No.:	91-20-66011001
Fax No.:	91-20-4011001
E-Mail :	finance@nichrome.com
Website :	http://www.nichrome.com
Area :	6500 sq ft (Owned)
Factory :	Shrimal, at post wing, Khandala Gala No. 769 B, 772 B and 773 District-Satara, Maharashtra, India
Tel. No.:	91-2169-284063/64/65/67
Fax No.:	91-2169-284066
Offices and Dealers :	Located at :- India :- Ø Bangalore Ø Chennai Ø Indore Ø New Delhi Ø Kolkata Ø Mumbai Ø Hyderabad Worldwide :- v ASEAN v Middle East v SAARC v CIS v Africa

DIRECTORS

As on 30.07.2011

Name :	Mr. Shriniwas Vinayak Joshi
Designation :	Chairman
Address :	857, Savali Apartment, Bhandarkar Road, Pune-411004, Maharashtra
Date of Birth/Age :	07.03.1937
Date of Appointment :	03.04.1990
Din No.:	00227320
Name :	Mr. Harish Prabhakar Joshi
Designation :	Managing Director
Address :	857, Savali Apartment, Bhandarkar Road, Pune-411004, Maharashtra
Date of Birth/Age :	16.09.1964
Date of Appointment :	11.09.2000
Din No.:	00227288
Name :	Mr. Ashok Natwarlal Kothary
Designation :	Director
Address :	5D, 5/6, Himali Co-operative Housing Society 8+13/1/2 Erandwana Pune-411004
Date of Birth/Age :	13.09.1949
Date of Appointment :	22.10.1994
Din No.:	00811919
Name :	Mr. Mohanlal Chimanlal Gujarathi
Designation :	Director
Address :	Advait 1277, Shukrawar Peth, Subhash Nagar, Lane No- 6, Pune-411002
Date of Appointment :	16.10.2000
Din No.:	00988542
Name :	Mr. Pramod Madhukar Chaudhari
Designation :	Director
Address :	Kinnari, 6, Vee Nimbkar Co-operative Housing Society 80/A, off Baner Road, Pune-411007
Date of Appointment :	16^.04.2005
Din No.:	00196415

KEY EXECUTIVES

Name :	Mr. Santosh Mahabaleshwar
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.07.2011

Names of Shareholders	No. of Shares
Shriniwas Vinayak Joshi Jointly with Jayashree S. Joshi	3965472
Jayashree S. Joshi Jointly with Shriniwas Vinayak Joshi	322560
Harish P. Joshi	3360
Mrunalini H. Joshi	3360
Ashok Kothary	3360
Rita A. Kothary	3360
Jehan A. Kothari	3360
Harish P Hoshi Jointly with Mrunalini H. Joshi	1957648
Mrunalini H. Joshi Jointly with Harish P Hoshi	350000
Total	6612480

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 and Exporter of Packaging Machines.
Exports :
Products :	· Packaging Machines
Countries :	· Sri Lanka · UAE · Dubai · Australia
Imports :
Products :	· Raw Materials
Countries :	· Germany · Nepal · China
Terms :
Selling :	L/C, Advance
Purchasing :	L/C, Advance

GENERAL INFORMATION

Customers :

· Manufacturer

No. of Employees :

200 (in office + in factory) (approximately)

Bankers :

Ø The Shamrao Vithal Co-operative Bank Limited, Deccan Gymkhana Branch, Pune – 411 004, Maharashtra, India

Ø Bank of Baroda, Laxmi Road Branch, Hari Vithal Chambers, Budhawar Peth, Pune – 411 002, Pune, Maharashtra, India

Ø Bank of Baroda, Camp Branch, Pune – 411 001, Maharashtra, India

Ø ICICI Bank, ICICI Towers, Bandra Kurla Complex, Mumbai – 400051, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in millions)	As on 31.03.2009 (Rs. in millions)
From Banks
Bank of Baroda
Working capital facilities	5.784	17.992
Term loan (Repayable within 1 year Rs.3.000 millions previous year Rs.3.000 millions)	4.964	7.964
Shamrao Vithal Co-Operative Bank Limited
Term loan building furniture and fixtures (secured by way of charge on office building, furniture and fixture at Safire park)	1.142	2.940
ICICI Bank Limited Vehicle (Repayable within 1 year Rs.0.548 millions previous year Rs.0.529 millions) (Secured by hypothecation of specific vehicle)	0.695	1.225
HDFC Bank Limited Vehicles (Repayable within 1 year Rs. Nil, Previous year Rs.0.133 millions) (Secured by hypothecation of specific vehicle)	0.000	0.132
Kotak Mahindra Prime Limited Vehicle (Repayable within 1 year Rs.0.439 millions previous year Rs. nil) (Secured by hypothecation of specific vehicle)	1.712	0.000
Total	14.297	30.253
Unsecured Loan
Deposit form directors (Due to managing director Rs.0.900 millions previous year Rs.1.400 millions)	1.000	1.500
Fixed Deposit
From Public	0.670	1.875
From Share Holders	1.700	0.500
From Employee	0.050	0.050
Sales tax loan	7.793	8.618
Total	11.213	12.543

Secured Loan	Rs. In Millions 31.03.2011
Rupee Term Loans from Banks	8.133
Rupee Term Loans from Financial Institutions	1.273
Working Capital Loans from Banks	32.644
Total	42.050
Unsecured Loan	Rs. In Millions 31.03.2011
Loans From Directors	0.900
Public Deposits Unsecured	1.930
Deferred Sales Tax Loan Unsecured	6.059
Other Debt Unsecured	0.650
Total	9.539

Banking Relations :	--
Auditors :
Name :	Naniwadekar and Company Chartered Accountants
Address :	1, Janaki Apartments, 47/5A, Erandwane, Pune – 411004, Maharashtra, India
Tel. No.:	91-20-25439238 / 25448641
Fax No.:	91-20-25439238
E-Mail :	nanico@vsnl.com

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1,00,00,000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
66,12,480	Equity Shares	Rs.10/- each	Rs.66.124 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		66.125	37.785	37.786
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		92.073	92.224	68.514
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		158.198	130.009	106.300
LOAN FUNDS
1] Secured Loans		42.051	14.297	30.253
2] Unsecured Loans		9.539	11.213	12.543
TOTAL BORROWING		51.590	25.510	42.796
DEFERRED TAX LIABILITIES		10.506	10.643	10.673
TOTAL		220.294	166.162	159.769
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		75.160	73.793	78.797
Capital work-in-progress		16.523	3.718	3.718
INVESTMENT		0.186	0.186	0.186
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	78.640	73.707	75.104
	Sundry Debtors	115.497	83.748	71.223
	Cash & Bank Balances	11.681	11.270	8.472
	Other Current Assets	28.401	0.000	0.000
	Loans & Advances	15.227	31.819	31.413
Total Current Assets		249.446	200.544	186.212
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	61.556	46.538	55.793
	Other Current Liabilities	53.566	55.728	49.679
	Provisions	6.194	9.813	8.935
Total Current Liabilities		121.316	112.079	114.407
Net Current Assets		128.130	88.465	71.805
MISCELLANEOUS EXPENSES		0.295	0.000	5.263
TOTAL		220.294	166.162	159.769

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	558.269	495.107	485.472
		Other Income	4.047	3.866	4.783
		TOTAL (A)	562.316	498.973	490.255
Less	EXPENSES
		Material Consumed and Manufacturing Expenses	312.656	277.234	275.166
		Manufacturing Service Costs	13.973	0.000	0.000
		Employee Cost	100.634	93.638	80.049
		Selling and Distribution Expenses		39.268	42.487
		Administrative Expenses	61.562	17.029	16.881
		Miscellaneous Expenditure written off during the year	0.000	5.263	1.945
		Increase/(Decrease) in Finished Goods		0.156	16.838
		TOTAL (B)	488.825	432.588	433.366
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		73.491	66.385	56.889
Less	FINANCIAL EXPENSES (D)		4.621	4.545	7.816
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		68.870	61.840	49.073
Less/ Add	DEPRECIATION/ AMORTISATION (F)		7.812	7.391	7.529
	PROFIT BEFORE TAX (E-F) (G)		61.058	54.449	41.544
Less	TAX (H)		21.577	19.671	12.813
	PROFIT AFTER TAX (G-H) (I)		39.481	34.778	28.731
Add	SHORT PROVISION FOR EARLIER YEARS (TAXATION)		NA	(0.017)	0.000
	PRIOR PERIOD EXPENSES			0.000	0.031
	TRANSFERRED FROM DEFERRED SPECIAL CAPITAL		NA	0.079	0.079
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	28.492	9.248
Less	APPROPRIATIONS
		Transfer to General Reserve	--	5.228	0.756
		Interim Dividend	--	2.267	1.889
		Tax on Dividend	--	1.220	0.963
		Tax on Interim Dividend	--	0.385	0.321
		Proposed Dividend	--	7.179	5.668
	BALANCE CARRIED TO THE B/S		--	47.053	28.492
	Earnings Per Share (Rs.)		5.85	9.20	7.60

Expected Sales (2011-2012) : Rs. 600.000 Millions

The above information has been parted by (Mr. Santosh Mahabaleshwar - Accounts Manager)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.02	6.97	5.86
Net Profit Margin (PBT/Sales)	(%)	10.93	11.00	8.55
Return on Total Assets (PBT/Total Assets}	(%)	18.80	19.85	15.68
Return on Investment (ROI) (PBT/Networth)		0.38	0.42	0.39
Debt Equity Ratio (Total Liability/Networth)		1.09	1.06	1.48
Current Ratio (Current Asset/Current Liability)		2.05	1.79	1.63

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	----------------------
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%	No
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
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	----------------------
29) Last accounts filed at ROC	----------------------
30) Major Shareholders, if available	----------------------

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	90085301
Corporate identity number of the company	U28113MH1960PLC011575
Name of the company	NICHROME INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	Safire Park Galleria, 2^nd Floor, 4, Mumbai-Pune Road, Wakdewadi, Shivaji Nagar, Pune-411 005, Maharashtra, India
Type of charge	Book Debts Movable Property (not being pledge)
Particular of charge holder	Bank of Baroda, Camp Branch, Pune – 411 001, Maharashtra, India
Email	rm.pune@bankofbaroda.com
Nature of description of the instrument creating or modifying the charge	Supplemental composite agreement of hypothecation of goods , books debts, movable machinery & vehicles
Date of instrument Creating the charge	14.09.2010
Amount secured by the charge	Rs.114.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash credit limit at the rate of .75% below prime lending rate of the bank Terms of Repayment On Demand Margin 25% On Stocks ,Book Debts, Movable Machinery And Cash Margin of 20% In respect of Bg/Lc Extent and Operation of the charge First And Original Charge
Short particulars of the property charged	I) All The Borrower's Stocks of Raw materials , Stock -In-Process, Finished Goods Consumable Spares And Packing Materials, All Book Debts II) All The Movable Machinery of The Borrower, Including All Stores And Spare Parts ,Both Present And Future, Belonging To The Borrower Being And Lying In The Borrower's Premises or Godowns of or Rented III) And Lying In The Borrower's Premises or Godowns of or Rentedall The Vehicles.
Date of latest modification prior to the present modification	24.08.2007
Particulars of the present modification	Cash credit facilities and term loan increased from Rs.112.500 millions to Rs. 114.000 millions.

Fixed Assets:

Ø Building – office

Ø Building – Factory

Ø Land – Factory

Ø Well

Ø Road

Ø Plant and Machinery

Ø Electrical Installation

Ø Furniture and Fixture

Ø Office Equipments

Ø Computer

Ø Canteen Equipments

Ø Vehicles

Ø Patterns

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.50.31
UK Pound	1	Rs.79.04
Euro	1	Rs.65.82

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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		48

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.