MIRA INFORM REPORT

()

Report Date :

05.08.2014

IDENTIFICATION DETAILS

Name :	FAIZ AND COMPANY
Registered Office :	75, Adbul Rehman Street, Masjid Bunder, Mumbai – 400 003, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Year of Establishment :	1928
Capital Investment / Paid-up Capital :	Rs. 167.927 millions
Legal Form :	Sole Proprietary Concern
Line of Business :	Trader, Importer and Exporter of Cobalt Scrap, Machine Tools, Hand Tools, Nickel Scrap and High Speed Steel.
No. of Employees :	Not Divulged

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

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established proprietary concern having satisfactory track record. The company possesses an acceptable financial profile marked by adequate networth base along with slow realization of debtors and increase in inventory resulting into working capital requirements. Management has witnessed a decent turnover but has reported a modest profile margin owing to the trading nature of the business. However, trade relations are fair. Business is active. Payment terms are reported as slow but correct. In view of long standing presence and experience of the promoters, the subject can be considered 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.

INDIAN ECONOMIC OVERVIEW

N E W S

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before. A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two. While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

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 31-03-2014.

INFORMATION DENIED BY

Name :	Mr. Lalit Joshi
Designation :	Finance Manager
Contact No.:	91-22-23421724
Date :	19.07.2014

LOCATIONS

Registered Office :	75, Adbul Rehman Street, Masjid Bunder, Mumbai – 400 003, Maharashtra, India
Tel. No.:	91-22-23421724
Fax No.:	Not Available
E-Mail :	ashraf@faizcoy.com
Website :	www.faizcoy.com
Location :	Owned
Warehouse :	Located at: · Bhiwandi

SOLE PROPRIETOR

Name :	Mr. Abdul Humayu Abdul Ali
Designation :	Proprietor
Address :	Mumbai
Date of Birth/Age :	50 Years

KEY EXECUTIVES

Name :	Mr. Lalit Joshi
Designation :	Finance Manager

BUSINESS DETAILS

Line of Business :

Trader, Importer and Exporter of Cobalt Scrap, Machine Tools, Hand Tools, Nickel Scrap and High Speed Steel.

GENERAL INFORMATION

No. of Employees :	Not Divulged
Bankers :	Union Bank of India, Mumbai Samachar Marg, Fort

Banking Relations :	--
Auditors :
Name :	N V Agarwal and Company Chartered Accountants

CAPITAL STRUCTURE

As on 31.03.2014

Capital Investment :
	Rs. 167.927 millions
Total :	Rs. 167.927 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014 (Provisional)	31.03.2013	31.03.2012
SHAREHOLDERS FUNDS
1] Capital Account		167.927	138.706	133.958
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		167.927	138.706	133.958
LOAN FUNDS
1] Secured Loans		442.245	421.269	324.486
2] Unsecured Loans		14.750	12.034	1.000
TOTAL BORROWING		456.995	433.303	325.486
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		624.922	572.009	459.444
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		70.241	72.659	29.390
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		28.070	28.474	28.126
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	314.251	266.229	249.761
	Sundry Debtors	189.276	178.098	200.950
	Cash & Bank Balances	30.281	27.924	59.939
	Other Current Assets	27.352	19.240	12.546
	Loans & Advances	2.990	14.123	11.811
Total Current Assets		564.150	505.614	535.007
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	33.860	29.791	126.630
	Other Current Liabilities	0.773	0.126	2.556
	Provisions	2.906	4.821	3.893
Total Current Liabilities		37.539	34.738	133.079
Net Current Assets		526.611	470.876	401.928
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		624.922	572.009	459.444

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014 (Provisional)	31.03.2013	31.03.2012
	SALES
		Income	581.976	588.002	548.325
		Other Income	6.709	5.037	6.795
		TOTAL	588.685	593.039	555.120
Less	EXPENSES
		Cost of material consumed	464.237	482.459	456.464
		Custom duty	16.887	19.321	8.051
		Trading Expenses	11.014	11.172	8.904
		Administrative Expenses	26.076	25.122	29.299
		Interest	20.900	20.714	25.331
		Foreign exchange loss	18.936	8.348	8.359
		Clearing and Forwarding	8.239	4.476	3.039
		Other Expenses	1.522	1.731	1.391
		TOTAL	567.811	573.343	540.838
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		20.874	19.696	14.282
Less/ Add	DEPRECIATION/ AMORTISATION		8.493	7.637	3.861
	NET PROFIT / (LOSS)		12.381	12.059	10.421

KEY RATIOS

PARTICULARS		31.03.2014 (Provisional)	31.03.2013	31.03.2012
PAT / Total Income	(%)	2.10	2.03	1.88
Net Profit Margin (PBT/Sales)	(%)	2.13	2.05	1.90
Return on Total Assets (PBT/Total Assets}	(%)	1.95	2.09	1.85
Return on Investment (ROI) (PBT/Networth)		0.07	0.09	0.08
Debt Equity Ratio (Total Debt/Networth)		2.72	3.12	2.43
Current Ratio (Current Asset/Current Liability)		15.03	14.56	4.02

The above information has been parted by Mr. Lalit Joshi

Note : Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	133.958	138.706	167.927
Reserves & Surplus	0.000	0.000	0.000
Net worth	133.958	138.706	167.927
Secured Loans	324.486	421.269	442.245
Unsecured Loans	1.000	12.034	14.750
Total borrowings	325.486	433.303	456.995
Debt/Equity ratio	2.430	3.124	2.721

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	548.325	588.002	581.976
		7.236	(1.025)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	548.325	588.002	581.976
Profit	10.421	12.059	12.381
	1.90%	2.05%	2.13%

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	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	No
25]	Conduct of the banking account	----
26]	Buyer visit details	----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
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

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 records 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. 61.01
UK Pound	1	Rs. 102.70
Euro	1	Rs. 81.91

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	SUB
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		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.