MIRA INFORM REPORT

Report Date :

19.03.2013

IDENTIFICATION DETAILS

Name :	MMP INDUSTRIES LIMITED (w.e.f. 19.06.2012)
Formerly Known As:	MAHARASHTRA METAL POWDERS LIMITED SEMI CONDUCTOR PACKAGES PRIVATE LIMITED
Registered Office :	211, Shrimohini, 345, Kingsway, Nagpur – 440001, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	08.10.1973
Com. Reg. No.:	11-030813
Capital Investment / Paid-up Capital :	Rs.82.901 Millions
CIN No.: [Company Identification No.]	U32300MH1973PLC030813
IEC No.	0388199091
TAN No.: [Tax Deduction & Collection Account No.]	NGPM00276D
PAN No.: [Permanent Account No.]	AAACM8955H
Legal Form :	A closely held public limited liability company
Line of Business :	Manufacturer of Importer of Aluminum Powder, Aluminum Paste, Magnese Oxide.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 620000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal 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.

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 :	211, Shrimohini, 345, Kingsway, Nagpur – 440001, Maharashtra, India
Tel No.:	91-712-2533585
Fax No.:	91-172-2530461
E-Mail :	sales@mmpowders.net mmp_1@satyam.net.in vkmassociates@gmail.com
Website :	http://www.mmpowders.com
Factory 1 :	Village, Naregaon Post, Shahpur, District – Bhandara – 441906, Maharashtra, India
Tel. No.:	91-7784-281126
Area :	26 acres
Location:	Owned

DIRECTORS

As on 29.09.2012

Name :	Mr. Arun Bhandari
Designation :	Managing Director
Address :	83, Shivagi Nagar, Nagpur – 440 010, Maharashtra, India
Date of Birth/Age :	18.09.1955
PAN No.:	ABBPB1120A
Date of Appointment:	05.02.1981
DIN No.:	00008901
Name :	Mr. Shivram Vasudeo Bhagwat
Designation :	Director
Address :	“Sadicha”, 80, Vidya Vihar, Pratap Nagar, Nagpur – 440 022, Maharashtra, India
Date of Birth/Age :	08.11.1926
Date of Appointment:	11.02.1991
DIN No.:	02370691
Name :	Mr. Maganmal Kewalchand Jain
Designation :	Director
Address :	Gokul , Behind Labour Court, Civil Lines, Nagpur- 440 001, Maharashtra, India
Date of Birth/Age :	20.06.1934
Date of Appointment:	06.01.1995
DIN No.:	00474847
Name :	Mr. Madanmohan Agrawal
Designation :	Whole Time Director
Address :	C/O Manohar Shende, Chhindwada Road, Krishnakunj, Opposite Achraj Tower, Chhaoni Nagpur – 440013, Maharashtra, India
Date of Birth/Age :	04.08.1964
Date of Appointment:	01.08.2008
DIN No.:	02281318
Name :	Mr. Lalit Bhandari
Designation :	Director
Address :	Flat No – 7, Laxmi Apartments, R.N.T. Road, Civil Lines, Nagpur – 440 001, Maharashtra, India
Date of Birth/Age :	24.02.1956
Date of Appointment:	01.08.2008
DIN No.:	00010934

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

SHAREHOLDING DETAILS FILE ATTACHED

As on 29.09.2012

Category	Percentage
Bodies corporate	16.69
Directors or relatives of directors	48.52
Other top fifty shareholders	16.52
Others	18.27
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Importer of Aluminum Powder, Aluminum Paste, Magnese Oxide.

Products :

Item Code No.	Product Description
76032000	Aluminium Powders
32129000	Aluminium Paste
28209000	Manganese Oxide and Manganese Dioxide
28211000	Iron Oxide Powder and Red Oxide Powder
27011902	Steam Coal Powder
74062000	Bronze Powder

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Flake Alu. Powder	M.T.	NA	3000	2951.198
Atomized Alu. Powder	M.T.	NA	6500	4185.714
Aluminium Paste	M.T.	NA	1100	538.640
Manganese / Magnetite	M.T.	NA	--	2489.570

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Bank of India, Dharampeth Branch, West High Court Road, Dharampeth, Nagpur – 440010, Maharashtra, India
• State Bank of India
• Bank of Baroda
• UCO Bank
• Andhra Bank, M. I Road, Jaipur, Maharashtra, India

Facilities :

Secured Loans	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
Term Loans from Banks (Hypothecation of Plant and Machinery Equipment etc)	50.433	13.192
Loans Repayable on demand From Banks (Hypothecation of Inventories, book Debts and also Personal Guarantee of Directors and Secured by Second charge on all fixed Assets)	160.413	150.525
Total	210.846	163.717

Banking Relations :	--
Auditors :
Name :	N. S. Rathore and Company Chartered Accountants
Address :	59, Sardar Patel Marg, Jaipur- 302 001, Rajasthan, India
Tel. No.:	91-941-2361830
Fax No.:	91-941-2372919
PAN No.	AACFN7614D
Related Parties :	Star Circlips and Engineering Limited CIN No.: U24110MH1974PLC017301 Website : http://www.starcirclips.com Line of Business: Manufacturer of Auto Parts

CAPITAL STRUCTURE

As on 31.03.2012

Authorized Capital:

No. of Shares	Type	Value	Amount
8500000	Equity Shares	Rs. 10 each	Rs. 85.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
8290050	Equity Shares	Rs. 10 each	Rs.82.900 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		82.900	82.900	82.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		72.966	63.567	55.391
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		155.866	146.467	138.291
LOAN FUNDS
1] Secured Loans		210.846	163.717	117.850
2] Unsecured Loans		54.565	34.139	26.281
TOTAL BORROWING		265.411	197.856	144.131
DEFERRED TAX LIABILITIES		20.431	19.480	19.251
TOTAL		441.708	363.803	301.673
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		185.644	130.186	110.839
Capital work-in-progress		22.365	8.208	11.326
INVESTMENT		10.355	16.802	17.087
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	164.999	120.675	102.233
	Sundry Debtors	147.305	133.677	85.760
	Cash & Bank Balances	3.254	2.003	3.191
	Other Current Assets	11.821	24.608	2.678
	Loans & Advances	6.266	6.055	17.310
Total Current Assets		333.645	287.018	211.172
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	69.964	58.819	36.207
	Other Current Liabilities	38.088	19.082	7.034
	Provisions	2.249	0.510	5.510
Total Current Liabilities		110.301	78.411	48.751
Net Current Assets		223.344	208.607	162.421
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		441.708	363.803	301.673

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	702.768	581.377	502.262
		Other Income	1.196	0.893	0.247
		TOTAL (A)	703.964	582.270	502.509
Less	EXPENSES
		Cost of materials consumed	499.601	396.770	455.835
		Purchases of stock-in-trade	5.253	25.187
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(30.519)	(26.735)
		Employee benefit expense	62.741	57.955
		Other expenses	112.857	87.636
		TOTAL (B)	649.933	540.813	455.835
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		54.031	41.457	46.674
Less	FINANCIAL EXPENSES (D)		24.487	17.200	12.914
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		29.544	24.257	33.760
Less/ Add	DEPRECIATION/ AMORTISATION (F)		15.010	10.933	10.627
	PROFIT BEFORE TAX (E-F) (G)		14.534	13.324	16.880
Less	TAX (I)		5.135	5.148	5.833
	PROFIT AFTER TAX (G-I) (J)		9.399	8.176	11.047
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	78.673	82.354	67.508
	TOTAL EARNINGS		78.673	82.354	67.508
	IMPORTS
		Raw Materials	NA	NA	0.371
	TOTAL IMPORTS		NA	NA	0.371
	Earnings Per Share (Rs.)		1.13	0.99	1.33

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.34	1.40	2.20
Net Profit Margin (PBT/Sales)	(%)	2.07	2.29	3.36
Return on Total Assets (PBT/Total Assets}	(%)	2.80	3.19	5.24
Return on Investment (ROI) (PBT/Networth)		0.09	0.09	0.12
Debt Equity Ratio (Total Debt/Networth)		1.70	1.35	1.04
Current Ratio (Current Asset/Current Liability)		3.02	3.66	4.33

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	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

DETAILS OF UNSECURED LOANS

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011
Term Loans from Others	13.573	2.780
Deferred Sales Tax Loan	19.767	21.246
Loans Repayable on demand From Others	21.225	10.113
Total	54.565	34.139

REVIEW OF OPERATIONS

The company during the year achieved consolidated revenue of Rs.767.040 Millions as against Rs.633.182 Millions in the previous year, an increase by 21.13%.

In the global competitive market, the company could maintain a decent export performance. It continues to explore opportunities for further growth in exports. During the period the company achieved the export turnover of Rs.86.117 Millions as against Rs.82.993 Millions in the previous year.

FIXED ASSETS

• Freehold Land/ Leasehold Land

• Factory Building

• Non-Factory Building

• Furniture and Fixtures

• Plant and Machinery

• Electric Installation

• Vehicles

• Office and Laboratory Equipments

• Computers

• Holiday Resort

• Live Stock

• Goodwill

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 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.54.29
UK Pound	1	Rs.81.94
Euro	1	Rs.70.02

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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.