MIRA INFORM REPORT

Report No. :	306015
Report Date :	02.02.2015

IDENTIFICATION DETAILS

Name :	ADVANCE METAL POWDER
Registered Office :	84, Mittal Chambers, Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Year of Establishment :	1989
Capital Investment / Paid-up Capital :	Rs.105.382 Millions
IEC No.:	Not Available
TIN No.:	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Partnership Concern with an unlimited liability of the partners
Line of Business :	Trader and Exporter of SS Wires and Iron Powder.
No. of Employees :	35 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 300000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established partnership concern having moderate track record. The rating reflects AMP’s modest scale of operation with slender profitability margins, high working capital intensity and below-average financial risk profile marked by a small net worth. However, trade relations are fair. Business is active. Payments are slow but correct. In view of experienced partners, the concern 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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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

Rating Agency Name	CRISIL
Rating	BB- (Long Term Rating)
Rating Explanation	Inadequate credit quality and high credit risk.
Date	28.08.2014

Rating Agency Name	CRISIL
Rating	A4+ (Short Term Rating)
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 31-03-2014.

INFORMATION PARTED BY

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

LOCATIONS

Registered Office/ Head Office :	84, Mittal Chambers, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-22021472/ 22045731
Mobile No.:	91-9892584334 (Mr. Virchand)
Fax No.:	91-22-22851770
E-Mail :	admet@bom5.vsnl.net.in admet@amp.net.in
Area :	856 sq. ft.
Location :	Owned
Warehouse 1 :	Warehouse Prerna Complex, Bhiwandi, Village Va, Thane, Maharashtra, India
Warehouse 2 :	178, Ajay Compound, Behind Gosarani Compound, Godown No. 7, Rahnal, Bhiwandi, District 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

PARTNERS

Name :	Mr. M.P. Purohit
Designation :	Partner
Date of Birth/Age :	49 Years
Qualification :	B.E.(Mechanical)
Name :	Mr. Rakesh P. Purohit
Designation :	Partner
Date of Birth/Age :	45 Years
Qualification :	B.Com

KEY EXECUTIVES

Name :	Mr. Virchand Lodaya
Designation :	Accounts Manager

BUSINESS DETAILS

Line of Business :	Trader and Exporter of SS Wires and Iron Powder.
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :
Products :	Raw Material
Countries :	Germany France China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

Reference :

Viraj Profiles

Name of the Person :

Mr. Sanjay Choudhary, Purchase Manager

Contact No.:

91-7314229666

Since How Long Known :

30 Years

Maximum Limit Dealt :

Rs. 10.000 Millions (Monthly)

Experience :

Payment Behaviour	Market Goodwill	Overall
Excellent	Excellent	Excellent

Remark:

They gave us positive response about the subject company they are satisfied with their product quality and delivery behaviour.

Customers :

Wholesalers, Retailers

Reference :

D and H Secherson

Name of the Person :

Mr. Navin Patel, Marketing Manager

Contact No.:

91-9049991544

Since How Long Known :

15 Years

Maximum Limit Dealt :

Rs.130.000 Millions (Approx Yearly)

Experience :

Product Quality	Delivery Behaviour	Overall
Good	Good	Good

Remark:

They gave us positive response about the subject company they are satisfied with their payment Behaviour.

No. of Employees :

35 (Approximately)

Bankers :

Bank Name	Bank of Baroda
Branch	Marine Drive Branch, Giri Kunj, Nm S. Road, 71, Marine Drive, Mumbai - 400020, Maharashtra, India
Person Name (With Designation)	Mr. Das, Advance Senior Manager
Contact Number	91-22-22814177
Name of Account Holder	Advance Metal Powder
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	1997
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Cash Credit Rs. 150.000 Millions
Account Operation	Very Good
Remarks (If any)	Banker gave us positive response about the subject company. They are satisfied with their banking transaction.

Facilities :

· Fund and Non Fund = Rs. 150.000 Millions

Secured Loan	31.03.2014 [Rs. in Millions]
Bank of Baroda Cash Credit A/C 20	152.345
Bank of Baroda – Car Loans	0.134
Citi Bank – Bus Finance A/C 355	6.247
Citi Bank – Mortgaged Loans	5.781
Total	164.507

Banking Relations :	--
Auditors :
Name :	Bangali and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India

CAPITAL STRUCTURE

As on: 31.03.2014

Capital Investment :
Owned :	Rs.105.382 Millions
Borrowed :	--
Total :	Rs.105.382 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013	31.03.2012
SHAREHOLDERS FUNDS
1] Partner’s Capital		105.382	74.460	72.087
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		105.382	74.460	72.087
LOAN FUNDS
1] Secured Loans		164.507	107.041	115.098
2] Unsecured Loans		14.929	10.029	10.029
TOTAL BORROWING		179.436	117.070	125.127
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		284.818	191.530	197.214
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9.827	10.832	12.397
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.923	0.923	0.923
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	143.804	139.426	148.814
	Sundry Debtors	344.614	256.736	213.353
	Cash & Bank Balances	8.881	0.449	1.338
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	24.616	16.495	14.457
	Deposits	5.495	5.805	12.420
Total Current Assets		527.410	418.911	390.382
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	228.358	220.251	191.591
	Other Current Liabilities	0333	3.193	2.840
	Provisions	24.651	15.692	12.057
Total Current Liabilities		253.342	239.136	206.488
Net Current Assets		274.068	179.775	183.894
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		284.818	191.530	197.214

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Sales	1164.436	1082.918	1219.218
		Other Income	0.298	0.808	1.510
		Closing Stock	143.804	139.426	148.814
		TOTAL (A)	1308.538	1223.152	1369.542
Less	EXPENSES
		Opening Stock	139.426	148.814	141.708
		Purchase	1103.735	1008.005	1167.979
		Administrative Expenses	11.621	11.730	10.558
		Other Expenses	19.135	18.010	18.430
		VAT & Central Sales Tax	0.000	4.665	4.931
		TOTAL (B)	1273.917	1191.224	1343.606
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		34.621	31.928	25.936
Less	FINANCIAL EXPENSES (D)		17.403	18.768	12.440
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		17.218	13.160	13.496
Less	DEPRECIATION/ AMORTISATION (F)		1.228	1.396	1.495
	PROFIT BEFORE TAX (E-F) (G)		15.990	11.764	12.001
Less	TAX (H)		4.941	3.635	3.708
	PROFIT AFTER TAX (G-H) (I)		11.049	8.129	8.293

Expected Sales (2014-2015): Rs.1200.000 Millions

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

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	0.84	0.66	0.61
Net Profit Margin (PBT/Sales)	(%)	1.37	1.09	0.98
Return on Total Assets (PBT/Total Assets}	(%)	2.98	2.74	2.98
Return on Investment (ROI) (PBT/Networth)		0.15	0.16	0.17
Debt Equity Ratio (Total Debt/Networth)		1.70	1.57	1.74
Current Ratio (Current Asset/Current Liability)		2.08	1.75	1.89

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Partner's Capital	72.087	74.460	105.382
Reserves & Surplus	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	72.087	74.460	105.382
Secured Loans	115.098	107.041	164.507
Unsecured Loans	10.029	10.029	14.929
Total borrowings	125.127	117.070	179.436
Debt/Equity ratio	1.736	1.572	1.703

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Sales	1219.218	1082.918	1164.436
		(11.179)	7.528

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Sales	1219.218	1082.918	1164.436
Profit After Tax	8.293	8.129	11.049
	0.68%	0.75%	0.95%

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	Yes
18]	Major customers	Yes
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	Yes
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	Yes

FIXED ASSETS:

· Furniture

· Software

· Machinery

· Electronic Weight Machines

· Bhiwandi Godown

· Computer

· Printer

· Office Equipment

· Electricity Installation

· Mobile

· Fax Machines

· Telephone Instruments

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.61.76
UK Pound	1	Rs.93.13
Euro	1	Rs.70.03

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	SUB
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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		34

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.