MIRA INFORM REPORT

Report Date :

26.06.2013

IDENTIFICATION DETAILS

Name :	D P WIRES PRIVATE LIMITED
Registered Office :	16-18 A, Industrial Estate, Ratlam – 457001, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	26.02.1998
Com. Reg. No.:	11-029523
Capital Investment / Paid-up Capital :	Rs.24.960 Millions
CIN No.: [Company Identification No.]	U27100MP1998PTC029523
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Various kinds of Steel Wires and Plastic Sheets.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (36)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 650000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears continuous dip in sales and incurred loss during 2012. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Short Term Bank: A4
Rating Explanation	Having minimal degree of safety regardi8ng timely payment of financial obligation, it carry very high credit risk.
Date	February, 2013

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/ Head Office/ Factory :	16-18 A, Industrial Estate, Ratlam – 457001, Madhya Pradesh, India
Tel. No.:	91-7412-261134/ 260646/ 261141/ 261142/ 261151
Fax No.:	91-7412-261174/ 261154
E-Mail :	katariawires@rediffmail.com info@dpwires.com kataria_bom6@sancharnet.net
Website :	http://www.dpwires.com
Branch Office :	Mumbai 72, Gandhi Nagar, Drainage Channel Road Opposite Municipal Industrial Estate, Worli Mumbai – 400018, Maharashtra, India Tel No.:91-22-22492317/ 24926249/ 24924304 Fax No.: 91-22-24950453 Indore 304, Jhabua Tower, 170, RNT Marg, Indore – 452001, India Tel No.: 91-731-2522967/ 3043430 Fax No.: 91-731-2519573

DIRECTORS

(AS ON 30.09.2012)

Name :	Mr. Sanjay Kataria
Designation :	Whole-time Director
Address :	71, D P Villa, Bajaj Khana, Ratlam – 457001, Madhya Pradesh, India
Date of Birth/Age :	06.03.1973
Date of Appointment :	26.02.1998
DIN No.:	00088535
Name :	Mr. Pankaj Kataria
Designation :	Director
Address :	10, Ghass Bazar, Ratlam – 457001, Madhya Pradesh, India
Date of Birth/Age :	09.03.1977
Date of Appointment :	16.11.2000
DIN No.:	00088922
Name :	Mr. Hemant Kataria
Designation :	Director
Address :	63, Choumukhipul, Ratlam – 457001, Madhya Pradesh, India
Date of Birth/Age :	01.12.1977
Date of Appointment :	16.11.2000
Mobile No.:	91-9893994561/9827031861
Email :	hkataria@dpwires.com
DIN No.:	00088833
Name :	Mr. Ravi Kataria
Designation :	Director
Address :	44, Ghass Bazar, Ratlam – 457001, Madhya Pradesh, India
Date of Birth/Age :	15.05.1965
Date of Appointment :	26.02.1998
DIN No.:	00092633

KEY EXECUTIVES

Name :	Mr. Alok Banerjee
Designation :	President
Mobile No.:	91-9329326355/ 9933873912
Email :	abanerjee@dpwires.com
Name :	Mr. Pradeep Bhardwaj
Designation :	General Manager
Mobile No.:	91-9650606789/ 9311186513
Email :	pbhardwaj@dpwires.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2012)

Names of Shareholders	No. of Shares
Sanjay Kataria	74810
Ravi Kataria	1500
Nagina Devi Kataria	183992
Pankaj Kataria	68640
Suman Devi Kataria	105282
Sapna Kataria	82200
Asha Devi Kataria	84647
Chanda Devi Kataria	188171
San Industries Private Limited, India	434000
Kantilalji Kataria	195520
Nishitha Kataria	128545
Anoop Kataria	108835
Rani Kataria	146147
Praveen Kataria	37647
Renu Kataria	25882
Anokhilalji Kataria	110080
Manoharlalji Kataria	23320
Arvind Kataria	66990
Ashok Kataria	193225
Pankaj Madanlal Kataria HUF	147620
Rakhi Kataria	52800
Supriya Kataria	23980
Samta Kataria	7630
Sushila Devi Kataria	4537
Total	2496000

(AS ON 30.09.2012)

Equity Shares Break – up

Category	Percentage
Bodies corporate	17.00
Directors or relatives of directors	83.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Various kinds of Steel Wires and Plastic Sheets.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· UCO Bank

Chandni Chock, Ratlam – 457001, Madhya Pradesh, India

· State Bank of India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
SHORT TERM BORROWINGS
Loan Repayable on Demand
- From Bank (Cash Credit Limit)	82.471	67.331
- From Bank (Buyer's Credit)	0.000	55.075
Total	82.471	122.406
NOTE: Cash Credit Limit from bank is secured by first charge on stock of raw material, stock in process, finished goods, consumables stores and spares, book debts, E.M. of factory land, P and M existing and future and personal guarantee by all directors of the company. Buyer's Credit was availed from State Bank of India in previous year, on Raw Material Purchased from Overseas Suppliers against Foreign Letter of credit.

Banking Relations :	--
Auditors :
Name :	P. D. Nagar and Company Chartered Accountants
Address :	403, City Plaza, 564, M. G. Road, Indore – 452001, Madhya Pradesh, India
PAN No.:	AASPN6728J
Other Related Parties :	· D. P. Plastic · D. P. Industries · Kataria Industries Private Limited · Ratlam Wires Private Limited · Kataria Wires Private Limited · Sonic Overseas India Private Limited · AMKAM Industries Private Limited

CAPITAL STRUCTURE

(AS ON 30.09.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs.35.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2496000	Equity Shares	Rs.10/- each	Rs.24.960 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	24.960	24.960
(b) Reserves & Surplus	137.831	138.938
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1)+(2)	162.791	163.898
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	7.784	9.852
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.998	0.000
Total Non-current Liabilities (3)	8.782	9.852
(4) Current Liabilities
(a) Short term borrowings	128.217	214.592
(b) Trade payables	26.750	2.157
(c) Other current liabilities	73.668	69.992
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	228.635	286.741
TOTAL	400.208	460.491
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	62.820	71.803
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.037
Total Non-Current Assets	62.820	71.840
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	71.584	69.648
(c) Trade receivables	130.196	112.924
(d) Cash and cash equivalents	18.730	16.814
(e) Short-term loans and advances	116.016	188.618
(f) Other current assets	0.862	0.647
Total Current Assets	337.388	388.651
TOTAL	400.208	460.491

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		23.870
2] Share Application Money		0.000
3] Reserves & Surplus		131.587
4] (Accumulated Losses)		0.000
NETWORTH		155.457
LOAN FUNDS
1] Secured Loans		116.363
2] Unsecured Loans		150.067
TOTAL BORROWING		266.430
DEFERRED TAX LIABILITIES		12.303
TOTAL		434.190
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		84.930
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	61.326
	Sundry Debtors	220.746
	Cash & Bank Balances	17.969
	Other Current Assets	0.000
	Loans & Advances	124.039
Total Current Assets		424.080
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	50.004
	Other Current Liabilities	23.374
	Provisions	1.510
Total Current Liabilities		74.888
Net Current Assets		349.192
MISCELLANEOUS EXPENSES		0.068
TOTAL		434.190

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from Operations	762.452	921.159	1123.978
		Other Income	16.680	15.018	NA
		TOTAL (A)	779.132	936.177	NA
Less	EXPENSES
		Cost of Materials Consumed	621.771	700.374	NA
		Cost of Traded Goods sold	10.249	57.878	NA
		Changes in Inventories	3.691	(6.564)	NA
		Employee benefits expenses	23.973	33.281	NA
		Other Expenses	84.681	109.615	NA
		Prior Period Income/ (Expenses)	0.659	0.000	NA
		TOTAL (B)	745.024	894.584	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		34.108	41.593	68.236
Less	FINANCIAL EXPENSES (D)		22.217	25.641	27.395
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		11.891	15.952	40.841
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.112	14.945	18.486
	PROFIT BEFORE TAX (E-F) (G)		(1.221)	1.007	22.355
Less	TAX (H)		(0.114)	0.196	4.443
	PROFIT AFTER TAX (G-H) (I)		(1.107)	0.811	17.912
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		74.998	74.187	68.295
	Deferred tax (Assets)/ liabilities		--	--	(11.916)
	Prior period Income/ Expenses		--	--	(0.047)
	BALANCE CARRIED TO THE B/S		73.891	74.998	74.187
	IMPORT VALUE		0.000	69.119	0.000
	Earnings Per Share (Rs.)		(0.44)	0.32	7.48

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(0.14)	0.09	NA
Net Profit Margin (PBT/Sales)	(%)	(0.16)	0.11	1.99
Return on Total Assets (PBT/Total Assets}	(%)	(0.28)	(0.22)	4.39
Return on Investment (ROI) (PBT/Networth)		0.01	0.01	0.14
Debt Equity Ratio (Total Debt/Networth)		0.79	1.31	1.71
Current Ratio (Current Asset/Current Liability)		1.48	1.36	5.66

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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
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	Yes
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

UNSECURED LOANS

Particulars	31.03.2012	31.03.2011
	(Rs. In Millions)
SHORT TERM BORROWINGS
Loans From Related Parties	9.940	52.704
Loans From Others Intercorporate Deposits	35.806	39.483
Total	45.746	92.187

REVIEW OF THE WORKING

Besides over Industrial recession resulting into cut throat competition, the company also faced power problem. However the turnover crossed to Rs.779.132 Millions against the previous year Rs.1011.570 Millions and Loss after tax Rs. 2.767 Millions against previous year Loss after tax of Rs.1.743 Millions.

OVERVIEW

The Company is engaged in the business of manufacturing and sale of Steel wires, Plastic Film Sheets, and the Company has been trading in Fuel Oil, Furnace Oil, It also acted as consignment acgent of Gold Bulion and Zinc. In addition, the Company has Wind Mills located in India for generation and supply of electricity.

FIXED ASSETS:

· Land

· Land development

· Factory Building

· Plant and Machinery

· Electric Equipment

· Office Equipment and Furniture

· Vehicle

· Computer

· Wind Energy Generator Plant

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 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.59.72
UK Pound	1	Rs.92.25
Euro	1	Rs.78.38

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		36

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.