MIRA INFORM REPORT

Report Date :

30.11.2012

IDENTIFICATION DETAILS

Name :	ADVANCE METAL POWDER
Registered Office :	84, Mittal Chambers, Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Year of Establishment :	1989
Capital Investment / Paid-up Capital :	Rs.70.000 Millions
Legal Form :	Partnership Concern with an unlimited liability of the partners
Line of Business :	Trader of SS Wires and Iron Powder.
No. of Employees :	30 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 280000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established partnership concern having good track. Partners are reported as well experienced and knowledgeable businessmen. It has achieved good growth in its sales turnover during 2012. Trade relations are reported as trustworthy. Business is active. Payments terms are regular and as per commitments. The concern can be considered good 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.

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

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.

INFORMATION PARTED BY

Name :	Mr. Virchand
Designation :	Accounts Manager
Contact No.:	91-22-22045731/ 9892584334
Date :	29.11.2012

LOCATIONS

Registered Office/ Head Office :	84, Mittal Chambers, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-22021472/ 22045731
Mobile No.:	91-9892584334 (Mr. Virchand)
Fax No.:	91-22-22851770
E-Mail :	admet@bom5.vsnl.net.in
Area :	830 sq ft
Location :	Owned
Warehouse :	Near Godrej Compound, Curry Road, Mumbai, Maharashtra, India
Godown 1:	178, Ajay Compound, Behind Gosarani Compound, Godown No. 7, Rahnal, Bhiwandi, District Thane, Maharashtra, India
Area :	1200 sq ft
Godown 2:	61-C, Currey Road East, Mumbai – 400012, Maharashtra, India
Area :	1600 sq ft

PARTNERS

Name :	Mr. M.P. Purohit
Designation :	Partner
Date of Birth/Age :	47 Years
Qualification :	B.E.(Mechanical)
Name :	Mr. Rakesh P. Purohit
Designation :	Partner
Date of Birth/Age :	43 Years
Qualification :	B.Com

KEY EXECUTIVES

Name :	Mr. Virchand
Designation :	Accounts Manager

BUSINESS DETAILS

Line of Business :	Trader of SS Wires and Iron Powder.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :	Manufacturer · Eash India Limited · D and H India Limited · Ador Fontech Limited · Mailam India Limited · Ador Welding Limited · Honavar Electrodes Private Limited · Diffusion Engineers Limited · Weldcraft Private Limited · D and H Secheron Electrodes Private Limited · Modi Arc Electrodes · Superon Schweisstechnik India Limited · Gee Limited · Maruti Weld Limited
No. of Employees :	30 (Approximately)
Bankers :	Bank of Baroda, Marine Drive Branch, Giri Kunj, Nm S. Road, 71, Marine Drive, Mumbai - 400020, Maharashtra, India
Facilities :	Cash Credit Rs.100.000 Millions (From Bank of Baroda)

Banking Relations :	--
Auditors :
Name :	Bangala and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Group Companies (As on 31.03.2010):	Name: Advance Chemical Private Limited Address: 71, Mittal Chambers, Nariman Point, Mumbai – 400021, Maharashtra, India Line of Business: Manufacturer of Potassium Silicate Name: Britelite Carbons Limited Address: 71, Mittal Chambers, Nariman Point, Mumbai – 400021, Maharashtra, India Line of Business: Manufacturer of Cinema Carbons · PG Group of Companies · Unique Trading Company

CAPITAL STRUCTURE

As on: 31.03.2012

Capital Investment :
Owned :	Rs.70.000 Millions
Borrowed :	--
Total :	Rs.70.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2012
Sales Turnover (Approximately)	1210.000

The above information has been parted by Mr. Virchand

Note : Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Partner’s Capital		64.507	56.646	50.254
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		64.507	56.646	50.254
LOAN FUNDS
1] Secured Loans		70.892	39.103	9.418
2] Unsecured Loans		5.079	5.729	25.556
TOTAL BORROWING		75.971	44.832	34.974
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		140.478	101.478	85.228
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		12.082	8.385	9.127
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.922	0.923	0.943
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	141.708	63.478	35.830
	Sundry Debtors	204.610	186.706	149.838
	Cash & Bank Balances	15.698	20.786	6.137
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	21.342	17.441	0.876
	Deposits	0.430	0.265	12.764
Total Current Assets		383.788	288.676	205.445
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	231.811	177.735	115.102
	Other Current Liabilities	2.204	0.459	15.185
	Advances	0.009	0.000	0.000
	Provisions	22.290	18.312	0.000
Total Current Liabilities		256.314	196.506	130.287
Net Current Assets		127.474	92.170	75.158
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		140.478	101.478	85.228

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1161.330	854.305	797.210
		Other Income	0.519	1.143	0.458
		TOTAL (A)	1161.849	855.448	797.668
Less	EXPENSES
		Cost of Goods Sold	1114.822	816.277	761.515
		Administrative Expenses	9.524	8.255	6.095
		Other Expenses	16.581	11.974	10.154
		VAT & Central Sales Tax	0.000	0.000	1.902
		TOTAL (B)	1140.927	836.506	779.666
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		20.922	18.942	18.002
Less	FINANCIAL EXPENSES (D)		6.368	4.866	5.348
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		14.554	14.076	12.654
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.167	1.037	1.150
	PROFIT BEFORE TAX (E-F) (G)		13.387	13.039	11.504
Less	TAX (H)		9.251	4.029	4.093
	PROFIT AFTER TAX (G-H) (I)		4.136	9.010	7.411

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.35	1.05	0.93
Net Profit Margin (PBT/Sales)	(%)	1.15	1.53	1.44
Return on Total Assets (PBT/Total Assets}	(%)	3.38	4.39	5.36
Return on Investment (ROI) (PBT/Networth)		0.20	0.23	0.23
Debt Equity Ratio (Total Liability/Networth)		5.15	4.26	3.29
Current Ratio (Current Asset/Current Liability)		1.49	1.47	1.58

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

(Rs. In Millions)

PARTICULARS	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors	231.811	177.735	115.102
Total	231.811	177.735	115.102

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	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 four years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	Yes
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	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
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	No

TRADE REFERENCES:

· Eash India Limited

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.55.20
UK Pound	1	Rs.88.38
Euro	1	Rs.71.47

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

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.