MIRA INFORM REPORT

Report No. :	357465
Report Date :	31.12.2015

IDENTIFICATION DETAILS

Name :	ADVANCE METAL POWDER
Registered Office :	Plot No. 84, Mittal Chambers, Nariman Point, Mumbai - 400021, Maharashtra
Tel. No.:	91-22-22021472
Country :	India
Financials (as on) :	31.03.2015
Year of Establishment:	04.01.1988
Capital Investment / Paid-up Capital :	Rs.86.601 Million
TIN No.:	27120001434
IEC No.:	0388211113
TAN No.: [Tax Deduction & Collection Account No.]	MUMA09640B
PAN No.: [Permanent Account No.]	AAAFA3154D
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Trader and Importer of Stainless Steel Wire and Iron Powder. (Confirmed by management)
No. of Employees :	24 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (35)

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 :	Subject was established in 1988 as a partnership concern and it is having moderate track record. Subject is engaged in trading of stainless steel wires and iron powders. Rating constrained on modest scale of operation with low profit margin and below the average financial risk profile marked by improved networth position in FY-15. The rating takes into account of extensive experience of the firm’s partners in the business of trading in welding materials and improvement in partner’s capital leading to modest debt protection metrics during the year under review. Trade relations are fair. Business is active. Payment terms are slow but correct. In view of experienced partners in the industry, the concern can be considered for the business dealings with some caution. Note:- As claimed by Mr. Virchand Lodaya (Accountant Manager), that preciously the date of establishment was 1988 which was wrongly parted by him and further he also claimed that correct date of establishment is 1989.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term Rating = BB-
Rating Explanation	Inadequate credit quality and high credit risk.
Date	28.08.2014

Rating Agency Name	CRISIL
Rating	Short term Rating = A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	28.08.2014

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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Virchand Lodaya
Designation :	Accounts Manager
Contact No.:	91-9892584334
Date :	29.12.2015

LOCATIONS

Registered Office :	Plot No. 84, Mittal Chambers, Nariman Point, Mumbai - 400021, Maharashtra, India
Tel. No.:	91-22-22021472/ 22045731/ 40021472
Mobile No.:	91-9892584334 (Mr. Virchand Lodaya)
Fax No.:	91-22-22851770
E-Mail :	admet@amp.net.in
Area :	856 Sq. ft.
Location :	Owned
Warehouse 1 :	Prerna Complex, Bhiwandi Village, Thane, Maharashtra, India
Warehouse 2 :	178, Ajay Compound, Behind Gosarani Compound, Godown No. 7, Rahnal, Bhiwandi, Thane, Maharashtra, India
Area :	10000 Sq. ft.
Location :	Owned
Warehouse 3 :	61-C, Currey Road East, Near Godrej Compound, Mumbai – 400012, Maharashtra, India
Area :	5000 Sq. ft.
Location :	Owned
Branch Office:	Located at Chennai

PARTNERS

Name :	Mr. Mukesh Parasram Purohit
Designation :	Partner
Address :	7, Sadguru Sadan, Babulnath Road, Mumbai – 400007, Maharashtra, India
Name :	Mr. Rakesh P. Purohit
Designation :	Partner
Address :	7, Sadguru Sadan, Babulnath Road, Mumbai – 400007, Maharashtra, India

KEY EXECUTIVES

Name :	Mr. Virchand Lodaya
Designation :	Accounts Manager

BUSINESS DETAILS

Line of Business :	Trader and Importer of Stainless Steel Wire and Iron Powder. (Confirmed by management)
Products :	Stainless Steel Wire Iron Powder
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :
Products :	Finished Goods
Countries :	· France China Sweden
Terms :
Selling :	Cash, L/C and Advance Payment
Purchasing :	Cash, L/C and Advance Payment

GENERAL INFORMATION

Suppliers :

Reference:	Viraj Profiles
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

Wholesalers and Retailers

Reference:	D & H Secherson
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

24 (Approximately)

Bankers :

Bank Name:	Bank of Baroda
Branch:	Marine Drive Branch, Mumbai, Maharashtra, India
Person Name (with Designation):	Not Available
Contact Number:	91-22-22814177 (Ringing)
Name of Account Holder:	Not Available
Account Number:	Not Available
Account Since (Date/ Year of A/c Opening):	Not Available
Average Balance Maintained (Optional):	Not Available
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Available
Account Operation:	Not Available
Remarks: Not Divulged

Auditors :
Name :	Bangali and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Membership No.:	043998
Memberships :	Not Available
Collaborators :	Not Available
Sister Concern:	Not Available

CAPITAL STRUCTURE

As on 31.03.2015

Capital Investment :
Owned :	Rs.86.601 Million
Borrowed :	--
Total :	Rs.86.601 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2015	31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Partners Capital		86.601	58.088	74.461
2] Share Application Money		0.000	0.000	0.000
3] Profit and Loss Account		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		86.601	58.088	74.461
LOAN FUNDS
1] Secured Loans		130.028	164.198	107.041
2] Unsecured Loans		9.929	9.929	10.029
TOTAL BORROWING		139.957	174.127	117.070
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		226.558	232.215	191.531
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.825	9.866	10.832
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.923	0.923	0.923
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	221.229	165.892	139.426
	Sundry Debtors	276.128	279.676	256.736
	Cash & Bank Balances	0.394	9.301	0.449
	Other Current Assets	19.656	6.244	5.806
	Loans & Advances	12.065	10.613	16.496
Total Current Assets		529.472	471.726	418.913
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	301.635	236.496	220.251
	Other Current Liabilities	1.466	3.095	3.193
	Provisions	14.561	10.709	15.693
Total Current Liabilities		317.662	250.300	239.137
Net Current Assets		211.810	221.426	179.776
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		226.558	232.215	191.531

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Income	1332.930	1175.459	1082.918
		Other Income	13.971	0.744	0.808
		TOTAL	1346.901	1176.203	1083.726
Less	EXPENSES
		Cost of Goods sold	1269.729	1103.608	1017.393
		Administrative Expenses	16.046	14.283	11.730
		Other Expenses	23.836	20.227	18.010
		VAT and Central Sales Tax	4.132	4.222	4.665
		TOTAL	1313.743	1142.340	1051.798
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		33.158	33.863	31.928
Less	FINANCIAL EXPENSES		19.577	17.147	18.769
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		13.581	16.716	13.159
Less/ Add	DEPRECIATION/ AMORTISATION		1.113	1.238	1.396
	PROFIT BEFORE TAX		12.468	15.478	11.763
Less	TAX		3.853	5.496	3.634
	PROFIT AFTER TAX		8.615	9.982	8.129

Expected Sales ( 2015 - 2016 ) : Rs.1250.000 Million

The above information has been parted by Mr. Virchand Lodaya (Accounts Manager)

\

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

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	0.65	0.85	0.75
Operating Profit Margin (PBDIT/Sales)	(%)	2.49	2.88	2.95
Return on Total Assets (PBT/Total Assets}	(%)	2.35	3.21	2.74
Return on Investment (ROI) (PBT/Networth)		0.14	0.27	0.16
Debt Equity Ratio (Total Liability/Networth)		1.62	3.00	1.57
Current Ratio (Current Asset/Current Liability)		1.67	1.88	1.75

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	74.461	58.088	86.601
Reserves & Surplus	0.000	0.000	0.000
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	74.461	58.088	86.601
Secured Loans	107.041	164.198	130.028
Unsecured Loans	10.029	9.929	9.929
Total borrowings	117.070	174.127	139.957
Debt/Equity ratio	1.572	2.998	1.616

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1082.918	1175.459	1332.930
		8.546	13.397

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1082.918	1175.459	1332.930
Profit	8.129	9.983	8.615
	0.75%	0.85%	0.65%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	Yes
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	No
10	Date of Birth of Proprietor / Partners / Directors	No
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	No
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	No
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	Yes
29	Profitability for last three years	Yes
30	Major shareholders, if available	No
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	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 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.66.42
UK Pound	1	Rs.98.54
Euro	1	Rs.72.60

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	KSH
Report Prepared by :	SUD

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		35

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.