MIRA INFORM REPORT

Report Date :

26.11.2012

IDENTIFICATION DETAILS

Name :	CLAD METAL INDIA PRIVATE LIMITED
Registered Office :	Plot No. F 14, MIDC, Waluj, TQ Gangapur, Aurangabad-431001, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.08.2004
Com. Reg. No.:	11-147960
Capital Investment / Paid-up Capital :	Rs. 10.000 Millions
CIN No.: [Company Identification No.]	U31900MH2004PTC147960
TAN No.: [Tax Deduction & Collection Account No.]	NSKC01384F
PAN No.: [Permanent Account No.]	AACCC4213A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of press parts and rolling products used for various applications
No. of Employees :	Not Available

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 222000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	TERM LOAN : ICRA BB
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation
Date	March, 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	Plot No. F 14, MIDC, Waluj, TQ Gangapur, Aurangabad-431001, Maharashtra, India
Tel. No.:	91-240-2564434/ 2241334/ 35/ 36/ 2251618
Fax No.:	91-240-2564293/ 2251618
E-Mail :	devendraring@gmail.com info@kalegroup-india.com devendraing@gmail.com
Website :	http://www.lkalegroup-india.com

DIRECTORS

As on 25.09.2012

Name :

Mr. Gopal Pandurang Kale

Designation :

Additional Director

Address :

3, Gadiya Park, Jalna Road, Aurangabad-431001, Maharashtra, India

Date of Birth/Age :

15.01.1975

Date of Appointment :

01.04.2007

Din No.:

02857250

Name :

Mr. Ashok Pandurang Kale

Designation :

Director

Address :

3, Gadiya Park, Mahesh Nagar, Jalna Road, Aurangabad-431005, Maharashtra, India

Date of Birth/Age :

21.01.1966

Date of Appointment :

18.03.2005

Din No.:

00518897

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	U27108MH1995PTC092094	ELEGANT COATINGS PRIVATE LIMITED	Director	18/03/2005	18/03/2005	-	Active	NO
2	U31900MH2004PTC147960	CLAD METAL INDIA PRIVATE LIMITED	Director	18/03/2005	18/03/2005	-	Active	NO
3	U74990MH2009PTC192077	MASSIA AUTO COMPONENT CLUSTER PRIVATE LIMITED	Director	28/04/2009	28/04/2009	-	Active	NO

Name :

Ms. Kalpana Ashok Kale

Designation :

Director

Address :

3, Gadiya Park, Mahesh Nagar, Jalna Road, Aurangabad-431005, Maharashtra, India

Date of Birth/Age :

26.08.1973

Date of Appointment :

12.08.2005

Din No.:

00518840

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.09.2012

Names of Shareholders	No. of Shares
Ashok Pandurang Kale	620000
Kalpana Ashok Kale	95000
Elegant Coatings Private Limited, India	270000
Gopal Pandurang Kale	10000
Shilpa Gopal Kale	1000
Pandurang Jagnnath Kale	1000
Taramati Pandurang Kale	1000
Govind Pandurang Kale	1000
Shilpa Govind Kale	1000
Total	1000000

Equity Share Breakup (Percentage of Total Equtiy)

As on 25.09.2012

Category	Percentage of Holding
Bodies corporate (not mentioned above)	27.00
Directors or relatives of directors	73.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of press parts and rolling products used for various applications
Products :	Roll Bond Evaporators Bimetal Strips Pencil Driers Press Components

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Bank of Maharashtra, Station Road Branch, Station Road, Aurangabad-431005, Maharashtra, India
• ICICI Bank Limited
• IDBI Bank Limited

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
HSBC (Buyer’s Credit) (Undertaking given by Bank of Maharashtra against LC Limit )	18.009	--
Bank of Maharashtra (Secured by hypothecation of Stock and Debtors)	22.778	36.694
Bank of Maharashtra Car Loan (Secured by Hypothecation of Car)	0.000	0.082
Term Loan BOM (Secured by Mortgage of Building and Hypothecation of plant and machinery)	0.000	0.073
Term Loan BOM (Secured by Mortgage of Building and Hypothecation of plant and machinery)	0.000	2.352
Term Loan BOM (Secured by Mortgage of Building and Hypothecation of plant and machinery)	6.788	8.315
Total	47.576	47.517
Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Mr. Ashok Panduring Kale	10.897	1.069
Alpit Metal Works	8.712	0.229
Mr. Gopal Kale	0.050	0.000
Mr. K.A. Kale	1.983	0.000
Elegent Coating Private Limited	1.359	0.000
Total	23.002	1.299

Banking Relations :	--
Auditors :
Name :	V S Rathi and Company Chartered Accountant
Address :	Office No. 2, Tulsi Chambers, Mahesh Nagar, Jalna Road, Aurangabad-431005, Maharashtra, India
Pan No.:	ABFPR8704C

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
1000000	Equity Shares	Rs. 10/- each	Rs. 10.000 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		10.000	10.000	10.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		45.526	27.936	15.562
4] (Accumulated Losses)		0.000	(0.164)	0.000
NETWORTH		55.526	37.772	25.562
LOAN FUNDS
1] Secured Loans		47.576	47.517	30.003
2] Unsecured Loans		23.002	1.299	8.087
TOTAL BORROWING		70.578	48.816	38.090
DEFERRED TAX LIABILITIES		0.131	0.426	0.000
TOTAL		126.235	87.014	63.652
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		37.198	33.392	21.578
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.004	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.072
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	63.805	20.941	9.141
	Sundry Debtors	80.807	44.507	31.490
	Cash & Bank Balances	0.769	0.371	14.345
	Other Current Assets	30.642	4.853	0.000
	Loans & Advances	0.000	0.000	4.577
Total Current Assets		176.023	70.672	59.553
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	4.489	3.131	2.814
	Sundry Creditors	80.816	10.941	14.061
	Provisions	1.685	2.978	1.004
Total Current Liabilities		86.990	17.050	17.879
Net Current Assets		89.033	53.622	41.674
MISCELLANEOUS EXPENSES		0.000	0.000	0.328
TOTAL		126.235	87.014	63.652

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	321.283	195.205	182.052
		Other Income	9.289	4.212	4.247
		TOTAL	330.572	199.417	186.299
Less	EXPENSES
		Office Expenses	330.572	185.120	173.906
		Administrative Expenses
		Advertising Expenses
		TOTAL	330.572	185.120	173.906
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		22.557	14.297	12.393
Less/ Add	DEPRECIATION/ AMORTISATION		4.511	3.350	3.219
	PROFIT BEFORE TAX		18.046	10.947	9.174
Less	TAX		6.172	3.902	2.939
	PROFIT AFTER TAX		11.874	7.045	6.235
	Earnings Per Share (Rs.)		11.87	7.04	6.23

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.59	3.53	4.24
Net Profit Margin (PBT/Sales)	(%)	5.61	5.60	6.77
Return on Total Assets (PBT/Total Assets}	(%)	8.46	10.51	13.49
Return on Investment (ROI) (PBT/Networth)		0.32	0.28	0.43
Debt Equity Ratio (Total Liability/Networth)		2.83	1.74	2.19
Current Ratio (Current Asset/Current Liability)		2.02	4.14	3.33

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	No
20]	Export / Import details (if applicable)	No
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	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

NOTE:

The register office address of the company has been shifted from “Lot No. F 14, MIDC, Waluj, TQ Gangapur, Aurangabad-431001, Maharashtra, India” to the present address w.e.f.21.01.2012.

OPERATIONS :

The turnover is increased by more than 87.70% as against previous year whereas the net profit after tax at increasing trend as compared to the previous year. The increase in turnover in turnover and profitability is mainly on account of cost cutting and increase in volume of orders in the financial year, considering the market conditions, the directors hope to continue with the same trend in the current financial year.

HUMAN RESOURCES MANAGEMENT REVIEW:

The company business context poses unique challenges to the human resources functions over the year, the company has fashioned human resource management and resource system and process, which aims to create a responsive, customer-centric and market –focused culture that enhances organizational capability and vitality. This systems and process, operating in an enabling and empowering work environment, support winning performance.

The competitive context has made Talent Management a strategic priority. The company’s conscious strategy of developing and supporting distributing leadership has insured that each of the company’s business are managed by team of competent and passionate leaders, capable of enhancing the company’s standing in competitive market. The enduring success of the company rests on unique culture that bends “Accountability” with “Care and concern”

ENVIRONMENTAL MANAGEMENT:

The directors are deeply conscious of preserving the environment and are making all out efforts to prevent any sort of pollution in it. Technical devices, wherever required, are in place in the plants to prevent/ eliminate the adverse impact of industrial effluents/ discharges. It has also been the constant endeavor to improve the surrounding in the factory by improving greenery, planting more trees and creates awareness about clean water, air and vegetation. Environment related laws are complied with. The employees are being made conscious of their responsibilities toward protection the environmental and add to the beauty of surroundings. These responsibilities have been entrusted to senior level manager and are being reviews by the senior management periodically.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Creation of charge
Corporate identity number of the company	U31900MH2004PTC147960
Name of the company	CLAD METAL INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. F 14, MIDC, Waluj, TQ Gangapur, Aurangabad-431001, Maharashtra, India E-mail Id : devenfraring@gmail.com
Type of charge	Immovable property Any interest in immovable property Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	Bank of Maharashtra, Station Road Branch, Station Road, Aurangabad-431005, Maharashtra, India E-mail Id : bomo301@sancharnet.in
Nature of description of the instrument creating or modifying the charge	Letter issued by bank and company confirming creation of charge
Date of instrument Creating the charge	17.10.2012
Amount secured by the charge	Rs.145.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC - base rate + 5.25 % presently 14.25 % pa BD - as per central office guidelines issued from time to time LC - as per central office guidelines TL - base rate + 5.25 % presently 14.25 % pa Terms of Repayment CC - within one year BD - as per agreement LC - (FLC) - 180 days (ILC) - 90 days TL - as per agreement Margin CC - 25 % on stocks and receivables BD - as per agreement LC - as per agreement TL - 21.03 % Extent and Operation of the charge The charge will be operative till the total amount of loan alongwith interest, commission, charges, expenses are repaid by the company.
Short particulars of the property charged	All type of stocks, book debts, plant and machinery and all other movable assets of the company All piece and parcel of land at plot no f - 13, admn 3010 sq mtrs situated at Waluj, Village Ranjangoan, Taluka Gangapur, Aurangabad together with building & structure thereon or to be constructed thereon All piece and parcel of land at Plot No F - 14, admn 2904 sq mtrs situated at Waluj, Village Ranjangoan, Taluka Gangapur, Aurangabad together with building & structure thereon or to be constructed thereon All that piece and parcel of land at Plot Gut No. 937, admn 1 Hectare 73 R, within the village limits of Bidkin, Taluka Paithan, District Aurangabad.

FIXED ASSETS:

· Land

· Site Development

· Building

· Electrical Installation

· Tools, Dies and Equipments

· Furniture and Fixtures

· Office Equipments

· Plant and Machinery

· Vehicle – Hero Honda

· Computer

AS PER WEBSITE

Profile:

They, Kale Group of Industries, commenced its activities in 1996. They started with Elegant Coatings Private Limited with a press division and surface coating division. The group was established in 1996 employing more than 500 skilled personnel manufacturing of Roll Bond Evaporators, Pencil Driers, Bimetal and Press Components. Internationally acknowledged for excellence borne out of intensive research, careful market analysis and close association with our customers.

They in the last six years have grown to become one of the most trusted names in the fields of manufacturing Roll Bond Evaporators, Pencil Driers, Bimetal and Press Components. Today with strong foundations and access to world class technology they are becoming more and more competitive world over. The group firmly believes in delivering total customer satisfaction from concept to commissioning to after sales service

The highly competent project management capabilities are a result of its tradition of anticipating and fulfilling specific customer requirements. A highly qualified team of engineers and technicians, supported by the most modern IT infrastructure ensures the brand of quality.

Growth:

1996: Started Elegant Coatings Private Limited Plant - 1

1998: Started Production of Press Components in Elegant Coatings Private Limited Plant - 2

2001: State of the art Powder Coating Plant - Tejal Industries

2002: Manufacturing of Press Components in - Alpit Metal Works

2004: State of the art plant for Manufacturing of Roll Bond Evaporator

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 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.55.34
UK Pound	1	Rs.88.30
Euro	1	Rs.71.37

INFORMATION DETAILS

Report Prepared by :

BSN

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	NO
--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.