MIRA INFORM REPORT

Report Date :

07.03.2013

IDENTIFICATION DETAILS

Name :	PRO-ARC WELDING AND CUTTING SYSTEMS PRIVATE LIMITED
Registered Office :	A-21, Ground Floor, Pavana Industrial Premises, T 204 Bhosari, Pune – 411026, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	11.07.1996
Com. Reg. No.:	11-100934
Capital Investment / Paid-up Capital :	Rs. 0.100 Million
CIN No.: [Company Identification No.]	U29299MH1996PTC100934
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Welding Machines and Cutting Machines like Air Plasma Cutting Machine, CNC Profile Cutting Machine, Tracer Type Profile Cutting Machine, MIG Welding Machines, etc.
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 101000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for business dealings at usual trade terms and condition.

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

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 DECLINED BY

Name :	Mr. Kamlesh Udhavadas Thakur
Designation :	Director
Contact No.:	91-20-66354900
Date :	14.02.2013

LOCATIONS

Registered Office :	A-21, Ground Floor, Pavana Industrial Premises, T 204 Bhosari, Pune – 411026, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	iut@eth.net
Website :	www.proarcwelding.com
Factory :	Plot No. 312/2, Sector-7, P.C.N.T.D.A. Industrial Area, Near Ultra Engineers, Bhosari, Pune – 411026, Maharashtra, India
Tel. No.:	91-20-66354900/ 66354901/ 66354902
Fax No.:	91-20-27121234/ 66354908

DIRECTORS

AS ON 28.09.2012

Name :	Mr. Purshottam Gobindram Peswani
Designation :	Director
Address :	H B 33/4, Near Durgamata Mandir, Pimpri, Pune – 411017, Maharashtra, India
Date of Birth/Age :	02.06.1958
Date of Appointment :	11.07.1996
DIN No.:	01744912
Name :	Mr. Kamlesh Udhavadas Thakur
Designation :	Director
Address :	Flat No. 43, Hemu Kalani Society, Phase 3, Pimpri, Pune – 411017, Maharashtra, India
Date of Birth/Age :	26.05.1958
Date of Appointment :	11.07.1996
DIN No.:	01766429
Name :	Mr. Krishna Gopakumar
Designation :	Director
Address :	Flat No. 218, Raviraj Heritage, BP Road, Bopodi, Pune – 411020, Maharashtra, India
Date of Appointment :	11.07.1996
DIN No.:	01769569

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Shareholders	No. of Shares
Purshottam Gobindram Peswani	3300
Krishna Gopakumar	3300
Kamlesh Udhavadas Thakur	3300
Peekay Control, India	100
Total	10000

AS ON 28.09.2012

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

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Welding Machines and Cutting Machines like Air Plasma Cutting Machine, CNC Profile Cutting Machine, Tracer Type Profile Cutting Machine, MIG Welding Machines, etc.

Products :

ITC Code	Product Descriptions
851500	MIG Welding Machine
851500	Plasma Cutting Machine
853400	PCB Assembly

GENERAL INFORMATION

Customers :

Ø BEML

Ø HMT

Ø Thermax

Ø Indian Railway

Ø Siemens India

Ø Naval Dockyard, Vizag

Ø Shipyard Like Dempo Shipbuilding

Ø Tata Motors

Ø Isgec Yamunagar etc.

Ø TLT Engineering

Ø BG Shirke (Potain India)

Ø Mukund Iron and Steel

No. of Employees :

Not Available

Bankers :

Ø Oriental Bank of Commerce, Pimpri Branch, Pimpri, Pune – 411018, Maharashtra, India

Ø The Seva Vikas Co-operative Bank Limited

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Oriental Bank of Commerce	6.163	4.771
The Seva Vikas Co-operative Bank Limited (Secured against hypothecation of stock and book-debts and personal guarantee of Directors)	2.705	1.671
Secured Loan - Oriental Bank of Commerce	10.048	0.000
Total	18.916	6.442

Banking Relations :	--
Auditors :
Name :	Harish K. Lalwani and Associates Chartered Accountants
Address :	C-18, Green Park, Opposite Dr. Beck and Company, Mumbai-Pune Road, Pimpri, Pune – 411018, Maharashtra, India
Tel. No.:	91-20-27421402
Fax No.:	91-20-27421973
E-Mail :	harish@harishlalwani.com
Income-tax PAN of auditor or auditor's firm :	AAEPL5394E

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
200,000	Equity Shares	Rs. 10/- each	Rs. 2.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10,000	Equity Shares	Rs. 10/- each	Rs. 0.100 Million

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		0.100	0.100	0.100
2] Share Application Money		0.729	0.729	0.729
3] Reserves & Surplus		24.367	16.454	9.702
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		25.196	17.283	10.531
LOAN FUNDS
1] Secured Loans		18.916	6.442	2.230
2] Unsecured Loans		20.067	3.381	1.741
TOTAL BORROWING		38.983	9.823	3.971
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		64.179	27.106	14.502
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9.426	2.479	0.882
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.256	0.170	0.053
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3.362	3.895	6.051
	Sundry Debtors	0.000	0.000	29.004
	Cash & Bank Balances	24.278	13.557	0.245
	Other Current Assets	7.654	5.762	0.000
	Loans & Advances	85.820	36.213	16.097
Total Current Assets		121.114	59.427	51.397
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	46.259	28.494	27.876
	Other Current Liabilities	17.463	3.360	5.603
	Provisions	2.895	3.116	4.351
Total Current Liabilities		66.617	34.970	37.830
Net Current Assets		54.497	24.457	13.567
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		64.179	27.106	14.502

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL	246.256	149.742	104.102
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	234.128	138.693	99.779
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		(Including Depreciation)	11.049	4.323
Less/ Add	DEPRECIATION/ AMORTISATION			0.197	0.238
	PROFIT BEFORE TAX		12.128	10.852	4.085
Less	TAX		4.214	4.101	1.335
	PROFIT AFTER TAX		7.914	6.751	2.750
	Earnings Per Share (Rs.)		791.40	675.10	275.00

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.21	4.51	2.64
Return on Total Assets (PBT/Total Assets}	(%)	9.29	17.53	7.81
Return on Investment (ROI) (PBT/Networth)		0.48	0.63	0.39
Debt Equity Ratio (Total Debt/Networth)		1.55	0.57	0.38
Current Ratio (Current Asset/Current Liability)		1.82	1.70	1.36

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	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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	Yes
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	No

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Unsecured Loan	5.680	0.844
Unsecured Loan	9.357	2.537
From Directors	4.965	0.000
Statutory Dues-Long term	0.065	0.000
Total	20.067	3.381

OPERATIONS:

During the year ended on 31.03.2012 sales and other income was amounted to Rs. 246.256 Millions in comparison to Rs. 149.742 Millions in the previous year. Company has made net profit of Rs. 7.914 Millions in comparison to net profit of Rs. 6.751 Millions in the previous year. Company is taking necessary steps to increase its profitability by improving strict control over overheads.

CONTINGENT LIABILITIES:

Contingent liability is not provided for: Bank Guarantee as on 31^st March 2012 is Rs. 25.100 Millions.

FIXED ASSETS:

Ø Factory Premises

Ø Factory Land

Ø Plant and Machinery

Ø Office Equipment

Ø Furniture

Ø Vehicles

Ø Computer Peripherals

Ø Digital Camera

Ø Crane

Ø Manual Hydraulic. Stacker

Ø Software

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. 54.71
UK Pound	1	Rs. 82.79
Euro	1	Rs. 71.43

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	BVA

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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.