MIRA INFORM REPORT

Report Date :

06.03.2013

IDENTIFICATION DETAILS

Name :	SRI KALISWARI METAL POWDERS PRIVATE LIMITED
Registered Office :	5 A, Chairman, A, Shanmuga Nadar Road, Sivakasi - 626123, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.12.1989
Com. Reg. No.:	18-018534
Capital Investment / Paid-up Capital :	Rs. 119.385 millions
CIN No.: [Company Identification No.]	U28991TN1989PTC018534
IEC No.:	3500001076
TAN No.: [Tax Deduction & Collection Account No.]	MRIS01611B
PAN No.: [Permanent Account No.]	AABC55354H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Lamellar Aliminium Power and Air Atomised Aluminium Power
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 344000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears some accumulated losses recorded by the company. However, trade relations are reported to be fair. Business is active. Payment terms are reported to be slow. 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 – 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	FITCH
Rating	BB+ (Long Term Rating)
Rating Explanation	Indicate an elevated vulnerabililty to default risk, particularly in the event of adverse changes in business or economic condition
Date	July 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/ Factory :	5 A, Chairman, A, Shanmuga Nadar Road, Sivakasi -626123, Tamilnadu, India
Tel. No.:	91-4562-656793/ 656791/ 227825
Mobile No.:	91-9842120602 (Mr. Anubuthayalan)
Fax No.:	91-4562-220478/ 233051
E-Mail :	admin@sri-kaliswari.in cs@sri-kaliswari.in srikaliswari@dataone.in vaidyaramank@yahoo.co.in smrajunaidu@rediffmail.com
Website :	http://www.srikaliswari.com http://www.sri-kaliswari.in
Factory / Administrative Office :	No. 1, Kariseri Village Road, Melamathur Village, Mepco Post, Virudhunagar, Tamil Nadu-626005, India
Tel. No.:	91-4562-656793/ 656791 / 234300 / 234304
Fax No.:	91-4562-220478/ 233501 / 234302
E-Mail :	admin@sri@kailswari.in cs@sri-kaliswari.in
Branch Office 1:	32, Duraisamy Road, First Floor, T Nagar, Chennai – 600017, Tamilnadu, India
Fax No.:	91-44-42123114
E-Mail :	chennai@sri-kaliawari.in
Branch Office 2 :	Lalji Punshi Building, Room No.27, Second Floor, 3, Keshavji Naik Road, Mumbai – 400009, Maharashtra, India
Fax No.:	91-22-24010145
E-Mail :	Mumbai@sri-kaliswari.in

DIRECTORS

As on 29.09.2012

Name :	Mr. Arumuganadar Shunmuganadar Rajappan
Designation :	Director
Address :	37/2, Chairman A, Shanmuga Nadar Road, Sivakasi – 626 123, Tamilnadu, India
Date of Appointment :	29.12.1989
DIN No.:	00765610
Name :	Mr. Arumuganadar Natarajanadar Annamalaisamy
Designation :	Director
Address :	37/3, Chairman A, Shanmuga Nadar Road, Sivakasi – 626 123, Tamilnadu, India
Date of Appointment :	29.12.1989
DIN No.:	00798327
Name :	Mr. Graham Shunmugaraj
Designation :	Director
Address :	133/2G, Kamrajar Road, Sivakasi, Tamilnadu, India
Date of Appointment :	29.12.1989
DIN No.:	01329213
Name :	Mr. Arumuga Nataraja Nadar Ramasamy
Designation :	Director
Address :	37/4, Chairman A, Shanmuga Nadar Road, Sivakasi – 626 123, Tamilnadu, India
Date of Appointment :	29.12.1989
DIN No.:	01726374
Name :	Mr. Arumuga Shenbagamurthi Nataraja Nadar
Designation :	Director
Address :	136, Kamrjar Road, Sivakasi, Tamilnadu, India
Date of Appointment :	29.12.1989
DIN No.:	02126176
Name :	Mr. Arumugaprakash Seemati
Designation :	Director
Address :	40A Chairman A, Shanmuga Nadar Road, Sivakasi – 626 123, Tamilnadu, India
Date of Appointment :	09.01.2003
DIN No.:	02126362
Name :	Mr. Arunachala Nadar Paulrajan Selvarajan
Designation :	Director
Address :	34A, Chairman A, Shanmuga Nadar Road, Sivakasi - 626 123, Tamilnadu, India
Date of Appointment :	29.12.1989
DIN No.:	02355299
Name :	Mr. Chinna Nadar Shunmuganathan
Designation :	Director
Address :	37/1, Chairman A, Shanmuga Nadar Road, Sivakasi – 626 123, Tamilnadu, India
Date of Appointment :	29.12.1989
DIN No.:	02355669

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
A S Rajappan (HUF)	93863
A S R Sarojini Ammal	3150
C. Shunmugana Nathan	83550
A N Palanichamy	42300
P Amarjothi	1050
A N Shenbagmurthi HUF	21675
S Ranee	1050
A Ramasamy	28550
R Usharani	1050
A N Annmalaisamy	42300
A Vijaya	1050
C. Shunmugana Nathan (HUF)	45450
S Subha	1050
A S G Pavoon Thilagam	1050
G Selvaa Shunmugam	45737
S. Anuja	2100
G. Shunmgaraj (HUF)	49175
S Shabina	2100
A S P Arumugaa Selvan HUF	21675
A Shyamala	1050
A Seematti, Manageress of the Estate of P Arumuga Prakash HUF	42300
R Gopal HUF	28550
R Shenbagarjan HUF	28550
A Natarja Prabhu	42300
S Shanmuga Natraj	62925
R Niraimathi	1050
A P Selvarajan	69800
S Mallika	1050
S Rajesh (HUF)	43350
Kaliswari Fire Works, Sivakasi	215000
Kaliswari Fireworks Private Limited, Sivakasi	160000
Taj Fireworks Industries, Sivakasi	10000
TOTAL	1193850

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	32.25
Directors or relatives of Directors	67.75
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Lamellar Aliminium Power and Air Atomised Aluminium Power

GENERAL INFORMATION

No. of Employees :

200 (Approximately)

Bankers :

State Bank of India, SME – Sivakasi, Velayuham Road,m Sivaksi – 626 123, Tamilnadu, India

Facilities :

Secured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
Term Loans from others	15.194	21.241
Deposits from others	12.850	14.957
Other Loans and Advances	113.848	91.229
Total	141.892	127.427

Banking Relations :	--
Auditors :
Name :	K.V. Raman Chartered Accountants
Address :	42, Seval Patti South Street, Rajapalayam – 626117, Tamilnadu, India
PAN No.:	AAIFK1859P

CAPITAL STRUCTURE

As on 29.09.2012

Authorized Capital:

No. of Shares	Type	Value	Amount
1200000	Equity Shares	Rs. 100/- each	Rs. 120.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
1193850	Equity Shares	Rs. 100/- each	Rs. 119.385 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		119.385	39.795	39.795
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		(33.377)	(31.799)	0.000
4] (Accumulated Losses)		0.000	0.000	(32.408)
NETWORTH		86.008	7.996	7.387
LOAN FUNDS
1] Secured Loans		141.892	127.428	117.137
2] Unsecured Loans		0.000	0.000	12.500
TOTAL BORROWING		141.892	127.428	129.637
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		227.900	135.424	137.024
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		147.570	148.936	152.166
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	19.233
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	51.418	43.285	66.322
	Sundry Debtors	42.400	36.275	25.347
	Cash & Bank Balances	23.429	19.080	1.154
	Other Current Assets	0.987	2.404	0.000
	Loans & Advances	22.421	20.354	22.416
Total Current Assets		140.655	121.398	115.239
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.639	1.448	149.544
	Other Current Liabilities	58.616	133.392	0.000
	Provisions	0.070	0.070	0.070
Total Current Liabilities		60.325	134.910	149.614
Net Current Assets		80.330	(13.512)	(34.375)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		227.900	135.424	137.024

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	339.275 (Gross)	266.466	202.025
		Other Income	NA
		TOTAL	NA	266.466	202.025
Less	EXPENSES
		Cost of Good Sold		265.856	199.812
		Administrative Expenses	NA
		Advertising Expenses
		TOTAL	NA	265.856	199.812
Less	Depreciation		10.055	0.000	0.000
	PROFIT BEFORE TAX		NA	0.610	2.213
Less	TAX		NA	0.000	0.000
	PROFIT AFTER TAX		(1.578)	0.610	2.213
	IMPORTS
		Aluminium Ingots	226.965	NA	NA
		Pyro Aluminium Powder	1.787	NA	NA
	TOTAL IMPORTS		228.752	NA	NA
	Earnings Per Share (Rs.)		1.32	1.53	5.56

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	0.23	1.09
Return on Total Assets (PBT/Total Assets}	(%)	NA	0.24	0.83
Return on Investment (ROI) (PBT/Networth)		NA	0.08	0.30
Debt Equity Ratio (Total Debt/Networth)		1.65	15.93	17.54
Current Ratio (Current Asset/Current Liability)		2.33	0.89	0.77

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	Yes
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	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	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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

FIXED ASSETS:

· Freehold Land

· Plant and Machinery

· Mela Amatur Buildings

· Generator

· Electrical Installation

· Laboratory Equipment

· Pipe Line and Water Supply

· Chemical Equipments

· Furniture and Fittings

· Scooter

· Fax Machine

· Platform Scale

· Computer

· Air Conditioner

· Tata 407 Van

· Wind Mill

· Xerox Machine

· Maruthi Car – Swift

· Tata Ace Ht Chasis

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.54.65
UK Pound	1	Rs.82.66
Euro	1	Rs.71.21

INFORMATION DETAILS

Report Prepared by :

NID

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.