MIRA INFORM REPORT

Report No. :	318228
Report Date :	24.04.2015

IDENTIFICATION DETAILS

Name :	PRECISION WELDARC LIMITED
Registered Office :	46C, Chowringhee Road, Flat 14G, Everest House, Kolkata-700071, West Bengal
Mobile No.:	91-33-30535008
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	31.03.2006
Com. Reg. No.:	21-108826
Capital Investment / Paid-up Capital :	Rs.39.320 Million
CIN No.: [Company Identification No.]	U27209WB2006PLC108826
IEC No.:	0206024398
TAN No.: [Tax Deduction & Collection Account No.]	CALP06587A
PAN No.: [Permanent Account No.]	AADCP8613N
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Submerged Arc Welding Wires, Welding Flux (SAW) and GMAW Welding Wires.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

B (31)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	The subject is an established company having a moderate track record. The company has reported low profitability during the financial year 2013-2014. Further reserves seem to be low during the year 2014. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

NOT AVAILABLE

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. Tanay Moosaddee
Designation :	Director
Contact No.:	91-9830088625
Date :	21.04.2015

LOCATIONS

Registered Office :	46C, Chowringhee Road, Flat 14G, Everest House, Kolkata-700071, West Bengal, India
Tel. No.:	91-33-30535008
Mobile No.:	91-9830088625 (Mr. Tanay Moosaddee)
Fax No.:	Not Available
E-Mail :	sandeep@sdpa.in

DIRECTORS

As on 30.09.2014

Name :

Mr. Umesh Kumar Goenka 

Designation :

Whole Time Director

Address :

FE-133, Salt Lake City,  Sector-III, Kolkata – 700006, West Bengal, India

Date of Birth/Age :

22.10.1966

Date of Appointment :

01.07.2007

DIN No.:

00352685

Other Directorship :

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51909WB1991PTC052306	PRECISION IMPEX PRIVATE LIMITED	Director	27/12/1994	27/12/1994	-	Active	NO
2	U27209WB2006PLC108826	PRECISION WELDARC LIMITED	Whole-time director	01/07/2007	31/03/2006	-	Active	NO
3	U74140WB1998PTC086278	PANORAMA ADVISORS PRIVATE LIMITED	Director	30/09/2011	21/06/2011	-	Active	NO
4	U28112WB2011PTC170779	JMD FABRICATORS PRIVATE LIMITED	Director	16/12/2011	16/12/2011	19/12/2011	Active	NO
5	U91990WB2007NPL116333	Mani Karn Owners Association	Director	07/12/2014	17/10/2014	-	Active	NO

Name :

Mr. Tanay Moosaddee

Designation :

Whole Time Director

Address :

7, Jatindra Mohan Avenue, Kolkata – 700006, West Bengal, India

Date of Birth/Age :

28.08.1971

Date of Appointment :

01.07.2007

DIN No.:

00352633

Other Directorship :

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51909WB1991PTC052306	PRECISION IMPEX PRIVATE LIMITED	Director	15/07/1991	15/07/1991	-	Active	NO
2	U23209WB1991PTC051771	JAIMATADI MACHINERY PRIVATE LIMITED	Director	17/05/1995	17/05/1995	18/08/2008	Active	NO
3	U51109WB1994PTC065676	WEST OVERSEAS TRADELINK PRIVATE LIMITED	Director	27/07/2000	27/07/2000	07/03/2009	Active	NO
4	U80134WB1996PTC080134	TIMER SOFTWARES PRIVATE LIMITED	Director	06/12/2001	06/12/2001	10/05/2013	Active	NO
5	U29299WB2006PLC108822	SANDEEP MECH. ENGINEERS LIMITED	Director	31/03/2006	31/03/2006	-	Active	NO
6	U27209WB2006PLC108826	PRECISION WELDARC LIMITED	Whole-time director	01/07/2007	31/03/2006	-	Active	NO
7	U28112WB2011PTC170779	JMD FABRICATORS PRIVATE LIMITED	Director	16/12/2011	16/12/2011	-	Active	NO

Name :

Mrs. Neelu Moosaddee 

Designation :

Director

Address :

7, Jatindra Mohan Avenue, Kolkata – 700006, West Bengal, India

Date of Birth/Age :

02.11.1972

Date of Appointment :

31.03.2006

DIN No.:

00352706

MAJOR SHAREHOLDERS

As on 30.09.2014

Names of Shareholders	No. of Shares
Umesh Kumar Goenka	600000
Tanay Moosaddee	600000
Neelu Moosaddee	3000
Shashi Goenka	213000
Sant Kumar Moosaddee	3000
Sarla Moosaddee	3000
Sushil Kumar Goenka	3000
Padma Devi Goenka	150000
Umesh Kumar Goenka HUF	510000
Harshita Goenka	30000
Precision Impex Private Limited, India	384000
Jaimatadi Machinery Private Limited, India	957000
Sandeep Mech. Engineers Limited, India	336000
Sthirlaxmi Mercantile Private Limited, India	15000
Trammel Trading Private Limited, India	15000
Mubarak Lubricant Private Limited, India	10000
Ziwani Barter Private Limited, India	25000
Critcare Marketing Private Limited, India	10000
Bachchi Finance Private Limited, India	25000
Aayushi Motor Finance Private Limited, India	15000
Keynesian Financial Services Limited, India	15000
Contship Commodities Private Limited, India	10000
Total	3932000

As on 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	46.21
Directors or relatives of Directors	53.79
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Submerged Arc Welding Wires, Welding Flux (SAW) and GMAW Welding Wires.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

Information declined by the management.

Bankers :

Banker Name	Bank of Baroda
Branch Address	India Exchange Branch, 4, India Exchange Place, Kolkata – 700001, West Bengal, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	00290200001225
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
SHORT TERM BORROWING
Cash Credit Facilities From Bank of Baroda	7.779	6.797
Total	7.779	6.797

Auditors :
Name :	Agrawal Singhania And Comnpany Chartered Accountants
Address :	Vinayak Chambers, 10a Hospital Street 2nd Floor Room No. 203a, Kolkata – 700072, West Bengal, India
PAN No.:	AAFFA1942E
Memberships :	Not Available
Collaborators :	Not Available
Enterprises Owned or significantly Influenced by KMP or their relatives :	Precision Impex Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs.45.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
3932000	Equity Shares	Rs.10/- each	Rs.39.320 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	39.320	39.320	39.320
(b) Reserves & Surplus	21.566	20.014	18.140
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	60.886	59.334	57.460
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.108
(b) Deferred tax liabilities (Net)	2.203	2.238	2.168
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	2.203	2.238	2.276
(4) Current Liabilities
(a) Short term borrowings	7.779	6.860	0.987
(b) Trade payables	3.322	2.925	1.689
(c) Other current liabilities	1.144	0.697	0.316
(d) Short-term provisions	0.249	0.448	0.260
Total Current Liabilities (4)	12.494	10.930	3.252
TOTAL	75.583	72.502	62.988
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	14.106	14.749	15.399
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.085	0.085	0.085
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	2.538	2.477	2.406
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	16.729	17.311	17.890
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	10.510	6.569	9.004
(c) Trade receivables	41.005	29.150	29.667
(d) Cash and cash equivalents	1.797	3.108	2.765
(e) Short-term loans and advances	5.449	16.122	3.662
(f) Other current assets	0.093	0.242	0.000
Total Current Assets	58.854	55.191	45.098
TOTAL	75.583	72.502	62.988

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	156.346	129.989	141.971
	Other Income	0.859	1.756	0.612
	TOTAL	157.205	131.745	142.583
Less	EXPENSES
	Cost of Materials Consumed	111.231	110.537	120.774
	Purchases of Stock-in-Trade	24.128	1.812	0.228
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(1.809)	0.094	3.350
	Employees benefits expense	5.603	4.795	4.339
	Other expenses	14.654	10.897	11.134
	TOTAL	153.807	128.135	139.825
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	3.398	3.610	2.758
Less	FINANCIAL EXPENSES	0.414	0.188	-0.033
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	2.984	3.422	2.791
Less/ Add	DEPRECIATION/ AMORTISATION	0.737	0.739	0.728
	PROFIT/ (LOSS) BEFORE TAX	2.247	2.683	2.063
Less	TAX	0.695	0.809	0.924
	PROFIT/ (LOSS) AFTER TAX	1.552	1.874	1.139
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	10.027	6.192	5.309
	TOTAL EARNINGS	10.027	6.192	5.309
	Earnings / (Loss) Per Share (Rs.)	0.39	0.48	0.29

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	0.99	1.44	0.80
Operating Profit Margin (PBDIT / Sales)	(%)	2.17	2.78	1.94
Return on Total Assets (PBT/Total Assets}	(%)	2.98	3.70	3.28
Return on Investment (ROI) (PBT/Networth)		0.04	0.05	0.04
Debt Equity Ratio (Total Debt /Networth)		0.13	0.12	0.02
Current Ratio (Current Asset/Current Liability)		4.71	5.05	13.87

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	39.320	39.320	39.320
Reserves & Surplus	18.140	20.014	21.566
Net worth	57.460	59.334	60.886
long-term borrowings	0.108	0.000	0.000
Short term borrowings	0.987	6.860	7.779
Total borrowings	1.095	6.860	7.779
Debt/Equity ratio	0.019	0.116	0.128

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	141.971	129.989	156.346
		(8.440)	20.276

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	141.971	129.989	156.346
Profit	1.139	1.874	1.552
	0.80%	1.44%	0.99%

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

OPERATION PERFORMANCE

The Company is aggressively pursuing various growth opportunities in Copper Coated Welding Wires. With the infrastructure and construction industry on boom, there is always a northward rise in the demand for the products of the Company. The management aims to cater to the rising demand leading to increase in sales and profit in spite of increase in raw material and other input costs.

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
SHORT TERM BORROWING
Other Loans and Advances	0.000	0.063
Total	0.000	0.063

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10531245	13/11/2014	10,000,000.00	ICICI BANK LIMITED	3A GURUSADAY ROAD, KOLKATA, West Bengal - 700019, INDIA	C33590498
2	10054998	25/08/2014 *	17,500,000.00	Bank of Baroda	India Exchange Branch, 4, India Exchange Place, Kolkata, West Bengal - 700001, INDIA	C18909010

* Date of charge modification

FIXED ASSETS

• Land
• Building
• Plant and Machinery
• Furniture and Fixture
• Office Equipment
• Vehicles

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.63.18
UK Pound	1	Rs.94.93
Euro	1	Rs.67.65

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	SUC
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		31

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.