MIRA INFORM REPORT

Report Date :

23.05.2012

IDENTIFICATION DETAILS

Name :	PARAS WIRES PRIVATE LIMITED
Registered Office :	Plot No. 6-B I Phase, First Cross, Kumbalgodu Industrial Estate, Mysore Road, Bangalore 560074, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.03.1987
Com. Reg. No.:	008265
Capital Investment / Paid-up Capital :	Rs.3.808 millions
CIN No.: [Company Identification No.]	U27104KA1987PTC008265
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Electrical and Electronic Wires and Cables.
No. of Employees :	50 Approximately

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 129136
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Businesses active. Payments are reported to be usually correct and as per commitments. The concern 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 :	Ms. Christina
Designation :	Office Assistant
Contact No.:	91-80-28437205
Date :	05.05.2012

LOCATIONS

Registered Office /Factory :	Plot No. 6-B I Phase, First Cross, Kumbalgodu Industrial Estate, Mysore Road, Bangalore 560074, Karnataka, India
Tel. No.:	91-80-28437205
Fax No.:	91-80-28437831
E-Mail :	parasw@vsnl.net
Location :	Owned

DIRECTORS

Name :	Mrs. Usha Surana
Designation :	Director
Date of Birth/Age :	29.08.1964
Date of Appointment :	27.11.1987
Name :	Mr. Anil Surana
Designation :	Director
Date of Birth/Age :	11.03.1957
Date of Appointment :	11.05.1996

KEY EXECUTIVES

Name :	Ms. Christina
Designation :	Office Assistant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 12.08.2011

Names of Shareholders	No. of Shares
R M Surana	1000
Anil Surana	152825
Usha Surana	174000
Suraj Surana	1000
Minu Surana	7800
Rupin Surana	44175
Total	380800

AS ON 12.08.2011

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Electrical and Electronic Wires and Cables.

Products :

ITC Code	Product Description
74.13	PVC Cables / Copper Wires Telecommunication Cables Electric Cables

· PVC Insulated Electrical Wires

· Automotive Wires

· Co-Axial Cables

· Communication Cables

· Sensor Cables

· Load Cell Cables

· Robot Cables

· Signal Cables

· UL Approved Cables

· Coiled Cords.

Exports :

Products :

Wires and Cables

Countries :

Sri Lanka, Dubai, Sweden

Imports :

Products :

Raw Materials

Countries :

China

Terms :

Selling :

Cash, Credit

Purchasing :

Cash, Credit

PRODUCTION STATUS

AS ON 31.03.2010

Particulars	Unit	Installed Capacity	Actual Production
PVC Wires	Mtrs.	8.000 millions	3.361 millions
Copper Wires	Tons	50	45.40

GENERAL INFORMATION

Customers :

Wholesaler, Retailers

No. of Employees :

50 Approximately

Bankers :

· Citi Bank, 163, Anna Salai, 2^nd Floor, Chennai 600002, Tamil Nadu, India

· Indian Overseas Bank, Bangalore Cantonment Branch, Central Street, Bangalore 560001, Karnataka, India

· Kotak Mahindra Bank

Facilities :

Rs. In Millions

SECURED LOAN	31.03.2011	31.03.2010
Citi Bank – Overdraft	18.225	15.012
Karnataka State Financial Corporation – Term Loan	6.283	1.267
(secured by hypothecation of stock –in –trade, book debts, land and building, machinery and guaranteed by the directors)
Total	24.508	16.279
UNSECURED LOAN
From Directors and Shareholders	11.550	11.436
Reliance Commercial Finance	0.000	0.138
Kotak Mahindra Bank	0.000	0.817
Total	11.550	12.391

Banking Relations :	--
Auditors :
Name :	H R Venkatesh Prasad Chartered Accountant
Address :	Seshamma Nilaya, No 578, 1A Main, 43^rd Cross, Jayanagar 8^th Block, Bangalore 560070, Karnataka, India
Associates/Subsidiaries :	--

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs. 10 each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
380800	Equity Shares (of which 285600 equity shares are issued as Bonus Shares in the ratio of 1:3)	Rs. 10 each	Rs.3.808 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		3.808	3.808	3.808
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		28.476	24.451	23.591
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		32.284	28.259	27.399
LOAN FUNDS
1] Secured Loans		24.508	16.279	8.439
2] Unsecured Loans		11.550	12.391	11.629
TOTAL BORROWING		36.058	28.670	20.068
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		68.342	56.929	47.467
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		29.393	31.476	27.648
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.003	0.003	0.002
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	12.616	8.257	7.594
	Sundry Debtors	17.390	14.052	11.911
	Cash & Bank Balances	0.550	0.513	0.384
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	18.034	9.969	9.136
Total Current Assets		48.590	32.791	29.025
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.216	5.951	6.442
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	2.503	1.478	2.867
Total Current Liabilities		9.719	7.429	9.309
Net Current Assets		38.871	25.362	19.716
MISCELLANEOUS EXPENSES		0.075	0.088	0.101
TOTAL		68.342	56.929	47.467

PROFIT & LOSS ACCOUNT

Particulars	31.03.2012
Sales Turnover (Approximately)	90.000

Expected Sales (2012-2013) : Rs.100.000 millions

The above information has been parted by Ms. Christina

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales and Other Income	84.497	75.662	87.092
		TOTAL (A)	84.497	75.662	87.092
Less	EXPENSES
		Cost of Materials
		Selling and Distribution Expenses
		Office Expenses	72.057	68.947	79.344
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	72.057	68.947	79.344
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		12.440	6.715	7.748
Less	FINANCIAL EXPENSES (D)		3.322	3.007	2.667
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.118	3.708	5.081
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.392	2.446	1.888
	PROFIT BEFORE TAX (E-F) (G)		6.726	1.262	3.193
Less	TAX (H)		2.100	0.403	1.150
	PROFIT AFTER TAX (G-H) (I)		4.626	0.859	2.043
	Earnings Per Share (Rs.)		12.15	2.25	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.47	1.13	2.34
Net Profit Margin (PBT/Sales)	(%)	7.96	1.66	3.66
Return on Total Assets (PBT/Total Assets}	(%)	8.62	1.96	5.63
Return on Investment (ROI) (PBT/Networth)		0.20	0.04	0.11
Debt Equity Ratio (Total Liability/Networth)		1.41	1.27	1.07
Current Ratio (Current Asset/Current Liability)		4.99	4.41	3.11

LOCAL AGENCY FURTHER INFORMATION

WORKING :

During the year the Export Sales continues to be sluggish and the Directors have concentrated on Local Sales. The total sales during the year is Rs 78.693 millions as against the sales of Rs 74.995 millions in the previous year. In the absence of the export incentives the Other Income has substantially decreased during the year. The net profit from the manufacturing activities during the year is Rs 1.268 millions before taxes as against Rs 1.262 millions in the previous year. In view of continuing bleak export market your Directors are concentrating on the local sales and hope to achieve a higher turnover and profits in the coming years

OPERATION & WORKING RESULTS :

During the year the Company has acquired fixed assets totaling to Rs 4.671 millions including Machineries and Equipments of Rs 4.461 millions. During the year the Company has sold a Factory Shed for Rs 9.250 millions (Book Value Rs 4.270 millions) since the same was not required for the present activities and to augment cash resources.

FIXED ASSETS:

· Land

· Building

· Borewell

· Machinery

· Electrical Installation

· Diesel Generator

· Testing Equipments

· Tools and Dyes

· Weighing Scale

· Office Equipments

· Verna Car

· Computer

· Furniture

FORM 8

Corporate identity number of the company	U27104KA1987PTC008265
Name of the company	PARAS WIRES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 6-B I Phase, First Cross, Kumbalgodu Industrial Estate, Mysore Road, Bangalore 560074, Karnataka, India
This form is for	Modification of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Others
Particular of charge holder	Citi Bank, 163, Anna Salai, 2^nd Floor, Chennai 600002, Tamil Nadu, India Email: ramachandran.c@citi.com
Nature of instrument creating charge	Goods Security Agreement cum Loan Agreement
Date of instrument Creating the charge	24.01.2012
Amount secured by the charge	Rs. 22.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest At the rate of 13.5% per annum outstanding from time to time. Terms of repayment All facilities are repayable on demand. Margin As agreed from time to time. Extent and operation of the charge First exclusive charge on hypothecation of all the Borrower's moveable (including stocks and book debts) forming part of its current assets both present and future. First exclusive charge on Immovable Property located at Plot No.6B, I Phase, 1 cross, Kumbalgodu Industrial Estate, Mysore Road, Bangalore 560074.
Short particulars of the property charged (Including location of the property)	First exclusive charge on hypothecation of all the Borrower's moveable (including stocks and book debts) forming part of its current assets both present and future. First exclusive charge on Immovable Property located at Plot No.6B, I Phase, 1 cross, Kumbalgodu Industrial Estate, Mysore Road, Bangalore 560074.
Particulars of the present modification	Agreement is renewed, there is no change in the credit limit of Rs.22.000 millions and security by way of current assets and immovable property of the Borrower both present and future.

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	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	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

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.54.88
UK Pound	1	Rs.86.84
Euro	1	Rs.70.21

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	PRL

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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.