MIRA INFORM REPORT

Report Date :

04.05.2013

IDENTIFICATION DETAILS

Name :	FUSION CHEMICALS AND PRODUCTS PRIVATE LIMITED
Registered Office :	Plot No. 8, I.D.A. Phase – I, Cherlapally, Hyderabad – 500051, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	17.01.1981
Com. Reg. No.:	01-002892
Capital Investment / Paid-up Capital :	Rs.1.600 Millions
CIN No.: [Company Identification No.]	U24110AP1981PTC002892
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Potassium Silicate, Lithium Silicate and Sodium Silicate.
No. of Employees :	60 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 110000
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 commitment. The company can be considered for normal 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

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 PARTED BY

Name :	Mr. Suryanarayan
Designation :	Finance Head
Contact No.:	91-9949057971
Date :	29.04.2013

LOCATIONS

Registered Office / Factory:	Plot No. 8, I.D.A. Phase – I, Cherlapally, Hyderabad – 500051, Andhra Pradesh, India
Tel. No.:	91-40-27261880 / 27261509
Mobile No.:	91-9949057971 (Mr. Suryanarayan)
Fax No.:	91-40-27262206
E-Mail :	fusion1001@yahoo.com
Area :	1 Acre
Location :	Owned

DIRECTORS

As on: 29.09.2012

Name :	Mr. Sangaraju Manihar Raju
Designation :	Managing Director
Address :	2-23, Road No.3, Kakatiyanagar, Habsiguda, Ranga Reddy, Hyderabad – 500007, Andhra Pradesh, India
Date of Birth/Age :	15.08.1956
Date of Appointment :	14.02.1981
DIN :	00188956
Name :	Mr. Sreedhar Chowdhary
Designation :	Director
Address :	8-2-680/A, Road No.12, Banjarahills, Ranga Reddy, Hyderabad – 500034, Andhra Pradesh, India
Date of Birth/Age :	12.05.1951
Date of Appointment :	26.12.1994
DIN :	00188924

KEY EXECUTIVES

Name :	Mr. Suryanarayan
Designation :	Finance Head

MAJOR SHAREHOLDERS

As on: 29.09.2012

Names of Shareholders	No. of Shares
Sangaraju Manihar Raju	80000
G. Sreedhar Chaowdhary	65800
G. Renuka Chaowdahry	5800
G. Jayadev Chaowdhary	8400
Total	160000

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Potassium Silicate, Lithium Silicate and Sodium Silicate.
Exports :
Products :	Finished Goods
Countries :	Malaysia Africa UAE
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

60 (Approximately)

Bankers :

State Bank of Hyderabad, Habsiguda Branch, Habsiguda, Hyderabad – 500007, Andhra Pradesh, India

Tel No.: 91-40-27172002

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
SHORT TERM BORROWINGS
Loans Repayable on demand	1.742	2.674
Total	1.742	2.674
Note: Working capital loan from State Bank of Hyderabad is secured by a first charge by hypothecation of all stocks of Raw-materials, stock in-process, finished goods, book debts/receivables present and future and also further secured by equitable mortgage of Plant and machinery, Factory land and buildings and guaranteed by all the Directors of the Company to the extent of Rs. 9.000 Millions.

Banking Relations :	--
Auditors :
Name :	Brahmayya and Company Chartered Accountants
Address :	403 and 404, Gloden Green Apartments,Irrum Manzil Colony, Hyderbad, Andhra Pradesh – 500082, India
Tel. No.:	91-40-23370002/ 4
E-Mail :	hydbrahmayya@gmail.com
PAN No.:	AADFB8032G
Associates :	Fusion Advanced Materials Private Limited Oxeeco Technologies Private Limited

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
160000	Equity Shares	Rs.10/- each	Rs.1.600 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		1.600	1.600	1.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		27.760	26.300	26.427
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		29.360	27.900	28.027
LOAN FUNDS
1] Secured Loans		1.742	2.674	4.549
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1.742	2.674	4.549
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		31.102	30.574	32.576
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.713	5.554	6.460
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.883	1.072	1.396
DEFERREX TAX ASSETS		1.698	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3.663	4.377	5.080
	Sundry Debtors	9.154	9.935	11.054
	Cash & Bank Balances	14.150	13.211	12.264
	Other Current Assets	1.260	0.963	1.220
	Loans & Advances	1.343	3.904	4.891
Total Current Assets		29.570	32.390	34.509
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.623	4.083	5.683
	Other Current Liabilities	0.590	0.164	0.185
	Provisions	2.549	4.195	3.921
Total Current Liabilities		6.762	8.442	9.789
Net Current Assets		22.808	23.948	24.720
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		31.102	30.574	32.576

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	55.175	49.306	58.580
		Other Income	1.304	1.684	2.149
		TOTAL (A)	56.479	50.990	60.729
Less	EXPENSES
		Raw material Consumed	55.359	23.798	33.826
		Rates and taxes		0.113	0.132
		Power and Fuel		7.596	6.039
		Staff Cost		8.602	7.072
		Other Expenses		6.175	8.043
		Increase/ Decrease in Stocks		(0.300)	0.225
		Diminution in the value of Investments		0.325	(0.056)
		TOTAL (B)	55.359	46.309	55.281
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.120	4.681	5.448
Less	FINANCIAL EXPENSES (D)		0.422	0.329	0.411
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.698	4.352	5.037
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.357	1.628	1.510
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(0.659)	2.724	3.527
Less	TAX (H)		(2.119)	0.992	1.254
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		1.460	1.732	2.273
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		9.800	10.927	11.520
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	1.000	1.000
		Dividend	0.000	1.600	1.600
		Tax on Dividend	0.000	0.259	0.266
	BALANCE CARRIED TO THE B/S		11.260	9.800	10.927
	EARNINGS IN FOREIGN CURRENCY		0.791	0.264	2.462
	Earnings/ (Loss) Per Share (Rs.)		9.125	10.83	14.21

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.58	3.40	3.74
Net Profit Margin (PBT/Sales)	(%)	(1.19)	5.52	6.02
Return on Total Assets (PBT/Total Assets}	(%)	(1.87)	8.41	10.22
Return on Investment (ROI) (PBT/Networth)		0.02	0.11	0.12
Debt Equity Ratio (Total Debt /Networth)		0.06	0.10	0.16
Current Ratio (Current Asset/Current Liability)		4.37	3.84	3.52

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	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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

REVIEW OF OPERATIONS:

This year we are able to achieve the sales (Gross) of Potassium Silicate, Sodium Silicate and Zirconium Frit to the extent of Rs.55.175 Millions (Potassium Silicate and Sodium Silicate Quantity 2529. J 76 M.T's and Zirconium Frit 116.700 MTs). There is increase in gross sales to the extent of Rs 4.397 Millions than previous year. During the year there are steep hike on raw material prices and also shortage of raw materials for some time. They could not increase our prices due to tough competition in the market. So the company has incurred loss during the year. The company is planning to reduce the cost of production by way of introducing new equipment and alternate fuel to recover from josses and get profit during the next year.

FUTURE OUTLOOK:

The Company hopes to improve and achieve the sales about Rs 60.000 Millions during the year 2012-2013 by increasing the sale of Potassium Silicate, Sodium Silicate and Zirconium Frit.

CONTINGENT LIABILITY IS NOT PROVIDED FOR IN THE BOOKS OF ACCOUNT ON ACCOUNT OF

i. Disputed sales tax liability estimated at Rs.0.164 Million.

ii. Guarantees given by the bankers to the extent of Rs.0.237 Millions.

FIXED ASSETS:

• Land
• Factory - Building
• Plant and Machinery
• Furniture
• Vehicles
• Lab Equipments
• Computer
• Office Equipments
• Water Works

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.53.95
UK Pound	1	Rs.83.81
Euro	1	Rs.70.50

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		44

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.