MIRA INFORM REPORT

Report Date :

15.03.2013

IDENTIFICATION DETAILS

Name :	THE ARASAN ALUMINIUM INDUSTRIES PRIVATE LIMITED
Registered Office :	Arasan Saraswathi Ganesan Complex, 18, Chairman A. Shunmugam Road, Sivakasi – 626123, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	28.05.1977
Com. Reg. No.:	18-007327
Capital Investment / Paid-up Capital :	Rs. 19.408 Millions
CIN No.: [Company Identification No.]	U27209TN1977PTC007327
TAN No.: [Tax Deduction & Collection Account No.]	MRIT00850D
PAN No.: [Permanent Account No.]	AAACT6771E
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of Aluminium Powder.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 480000
Status :	Good
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having a fine track record. Financial position of the company is sound. Trade relations are decent. Payments are usually correct and as per commitments. The company can be considered good for normal 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

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 :	Arasan Saraswathi Ganesan Complex, 18, Chairman A. Shunmugam Road, Sivakasi – 626123, Tamilnadu, India
Tel. No.:	91-4562-230916 / 289844
Fax No.:	91-4562-289844
E-Mail :	fireworks@arasanwetwo.com aluminium@arasanwetwo.com international@arasanwetwo.com matches@arasanwetwo.com textile@arasanwetwo.com wetwo@sancharnet.in
Website :	http://www.arasanaluminium.com
Head Office :	Post Box. No. 150, 1-C/4, Thirvthangal Road, Sivakasi – 626123, Tamilnadu, India

DIRECTORS

As on 28.09.2012

Name :	Mr. Ganesan Ashokan
Designation :	Managing Director
Address :	83/B2 , Ganagiri Road Sivakasi, Tamilnadu, India
Date of Birth/Age :	18.01.1959
Date of Appointment :	14.01.1988
DIN No.:	00154400
Name :	Mrs. Ashokan Nalini
Designation :	Director
Address :	83/B2 , Ganagiri Road Sivakasi, Tamilnadu, India
Date of Birth/Age :	25.04.1963
Date of Appointment :	01.12.1989
DIN No.:	00154418
Name :	Mr. Ashokan Ganesh Kumar
Designation :	Director
Address :	83/B2 , Ganagiri Road Sivakasi, Tamilnadu, India
Date of Birth/Age :	16.01.1986
Date of Appointment :	24.12.2006
DIN No.:	00154494
Name :	Mr. Vijayakumar Shyamsunder
Designation :	Director
Address :	176- A, Thiruthangal Road, Sivakasi, Tamilnadu, India
Date of Birth/Age :	21.06.1982
Date of Appointment :	01.10.2004
DIN No.:	00154595

MAJOR SHAREHOLDERS

As on 28.09.2012

Names of Shareholders	No. of Shares
G. Ashokan	21230
G. Ashokan (HUF)	8711
A. Nalini	43415
A. Ganesh Kumar	40000
G. Jeyagraham	11347
G. Jeyagraham (HUF)	2935
J. Sharmila	4020
J. Ganesh Aravind	4404
G. Vijayakumar	11958
G. Vijayakumar (HUF)	1663
V. Karthik	12803
V. Rajeswari	2840
V. Shyam Sundar	12202
V.Giridharan	12202
G. Vijayalakshmi	200
G. Kaiyana Sundari	350
A.M.S. Gurusamy	300
J. Renuga	250
G. Parthasarathy	300
G. Ramamoorthy	300
G. Jeyasankar	200
Hemant Devidas Seth	667
H. Prataprai Haridas Vora	666
J. Natwarlal Jaramdas Metha	667
R. Premlatha	100
A.S.N. Rajasankar	250
V.M. Jeyaraju	100
Total	194080

As on 28.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Aluminium Powder.
Products :	Aluminium Powder Aluminium paste

PRODUCTION STATUS (As on 31.03.2012)

Particulars	Unit	Installed Capacity	Actual Production
Pyrotechnic Alu.Powder	M/T	1700	1541
Atomised Alu.Powder	M/T	2000	498
Alu.Powder and Paste	M/T	800	224

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, 11, Velayutham Road, Sivakasi - 626123, Tamilnadu, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long - Term Borrowings
State Bank of India Term Loans	4.168	2.793
SME Car Loan – Bank	1.076	0.878
Short - Term Borrowings
SBI Open Cash Credit	62.449	47.772
Total	67.693	51.443

Banking Relations :	--
Auditors :
Name :	K. V. Raman Chartered Accountants
Address :	42,Seval Patti South Street, Rajapalayam - 626117, Tamilnadu, India
Tel. No.:	91-4562-222974
Fax No.:	91-4562-223473
PAN.:	AASPR3952L

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
194080	Equity Shares	Rs.100/- each	Rs.19.408 Millions

Number of Shares held by Shareholders, cash holding more than 5% shares

Name	No. of Shares held	%
Mr. G. Ashokan	21,230.00	10.94
Mrs. A. Nalini	43,415.00	22.37
Mr. A. Ganeshkumar	40,000.00	20.61
Mr. G. Jeyagraham (Indl)	11,347.00	5.86
Mr. G. Vijayakumar	11,98.00	6.16
Mr. V. Karthik	12,803.00	6.60
Mr. V. Shyamsundar	12,202.00	6.29
Mr. V. Giridharan	12,202.00	6.26

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		19.408	19.408	19.408
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		100.668	92.851	86.401
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		120.076	112.259	105.809
LOAN FUNDS
1] Secured Loans		67.693	51.443	75.213
2] Unsecured Loans		22.595	21.988	12.268
TOTAL BORROWING		90.288	73.431	87.481
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		210.364	185.690	193.290
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		100.816	100.752	91.462
Capital work-in-progress		5.280	0.000	0.000
INVESTMENT		0.630	0.630	0.630
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	40.972	27.575	42.764
	Sundry Debtors	26.884	46.904	34.804
	Cash & Bank Balances	22.495	16.551	11.114
	Other Current Assets	12.423	20.327	0.000
	Loans & Advances	5.621	4.399	19.343
Total Current Assets		108.395	115.756	108.025
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.570	28.035	0.000
	Other Current Liabilities	0.787	1.413	3.827
	Provisions	3.400	2.000	3.000
Total Current Liabilities		4.757	31.448	6.827
Net Current Assets		103.638	84.308	101.198
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		210.364	185.690	193.290

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income		342.210	298.510
		Other Income		13.750	18.369
		TOTAL (A)	NA	355.960	316.879
Less	EXPENSES
		Raw materials consumed		194.012	195.945
		Stores consumed		15.067	12.416
		Power and fuel		27.086	20.865
		Salaries, Wages and Allowance		6.206	5.105
		Other Manufacturing expenses	NA	25.885	25.018
		Central excise duty and cess		26.640	20.849
		Administrative Expenses		14.990	12.250
		Selling and distribution expenses		9.979	9.034
		Donation		0.600	1.100
		Accretion / Decretion in stock		16.449	-9.480
		TOTAL (B)	NA	336.914	302.582
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		20.015	19.046	14.297
Less	FINANCIAL EXPENSES (D)		5.673	7.786	8.555
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		14.342	11.260	5.742
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.126	2.810	2.375
	PROFIT BEFORE TAX (E-F) (G)		11.216	8.450	12.848
Less	TAX (H)		0.000	0.000	0.000
	PROFIT AFTER TAX (G-H) (I)		11.216	8.450	12.848
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.851	0.401	0.553
Less	APPROPRIATIONS
		Transfer to General Reserve	7.000	6.000	10.000
		Provision for Taxation	3.400	2.000	3.000
	BALANCE CARRIED TO THE B/S		1.667	0.851	0.401
	Earnings Per Share (Rs.)		57.79	NA	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	2.37	4.05
Net Profit Margin (PBT/Sales)	(%)	NA	2.47	4.30
Return on Total Assets (PBT/Total Assets}	(%)	5.36	3.90	6.44
Return on Investment (ROI) (PBT/Networth)		0.09	0.08	0.12
Debt Equity Ratio (Total Debt /Networth)		0.75	0.65	0.83
Current Ratio (Current Asset/Current Liability)		22.78	3.68	15.82

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	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	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

Note:

The registered office of the company has been shifted from 72, Javuli Kadai Street, Sivakasi – 626123, Tamilnadu, India to present address w.e.f. 07.03.2008

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2012	As on 31.03.2011
Long - Term Borrowings
LOAN FROM DIRECTORS
Mr. G. Ashokan - Managing Director	9.700	0.871
Mr. V. Shyam Sundar - Director	2.258	2.258
Mr. A. Nalini - Director	7.026	7.026
Mr. A. Ganeshkumar - Director	2.891	2.891
LOAN FROM SHAREHOLDERS:
Mr. V. Karthik (HUF)	0.000	0.198
Mr. V. Karthik	0.000	1.332
Mrs. K. Archana	0.000	0.216
Mrs. S. Vidyt	0.000	0.358
Mr. V. Giridharan	0.000	1.435
Mr. V. Giridharan (HUF)	0.000	0.280
Mrs. G. NandaNila	0.000	0.352
Miss. A. Kayalvizhi	0.000	2.476
Mr. G. Vijayakumar	0.000	1.268
Other Term Liabilities	0.720	1.027
Total	22.595	21.988

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U27209TN1977PTC007327
Name of the company	THE ARASAN ALUMINIUM INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Arasan Saraswathi Ganesan Complex, 18, Chairman A. Shunmugam Road, Sivakasi – 626123, Tamilnadu, India wetwo@sancharnet.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10082324
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	State Bank of India, 11, Velayutham Road, Sivakasi - 626123, Tamilnadu, India sbi.00975@sbi.co.in
Nature of instrument creating charge	Agreement of Loan-Cum-Hypothecation Date. 27.03.2012. Memorandum of Deposit of Title Deeds.
Date of instrument Creating the charge	27.03.2012
Amount secured by the charge	Rs.98.700 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Working Capital : 13.40% p.a. Open Term Loan: 17.25% p.a. Terms of Repayment Working Capital: Repayable on Demand subject to review every 12 months. Open Term Loan: 60 Monthly installments of Rs.3,25,000/- each Margin A) Fund Based Limits a. Raw materials : Indigenous 25% b. Work-in-process 25% c. Finished Goods 25% d. Receivables (Cover Period 60 days) 40% e.Term Loan 25% B)Non Fund Based Limits a. Letters of Credit 25% b. Bank Guarantees 25% Extent and Operation of the charge Exclusive charge to the charge holders.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Charges Over the entire current assets viz. Raw Materials, Stocks in process, Finished Goods, Consumables, Stores, Spares, Receivables etc. Hypothecation of P and M and other movable assets Merchandise covered under LC and extension of first charge on current assets. Counter Guarantee and extension of charges on other current assets Factory Land and Building measuring 26.78 acres in Survey No. 558/1 to 4, 559, 560/1 and 2, 561/1A & 1B, 561/2, 562, 565/1, 565/2 and 566 at Melamathur Village, Sivakasi Panchayat Union. EM Over the Land to the extent of 2 acres in the South West portion out of total extent of 10 acres and 10 cents emprised inn Sr. No: 1238/3 in Irrkanthurai Village Radhapuram Taluk, Thirunelveli District
Date of instrument modifying the charge	15.10.2010
Particulars of the present modification	Loan amount modified from Rs.105.700 Millions to Rs.98.700 Millions.

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.54.44
UK Pound	1	Rs.81.33
Euro	1	Rs.70.50

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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		50

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.