MIRA INFORM REPORT

Report No. :	304470
Report Date :	19.02.2015

IDENTIFICATION DETAILS

Name :	MALU ELECTRODES PRIVATE LIMITED
Registered Office :	S-111, Ramkrishna Apartment, Schaprunagare, Square, Nagpur - 440008, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	05.09.1990
Com. Reg. No.:	11-058024
Capital Investment / Paid-up Capital :	Rs. 105.000 Millions
CIN No.: [Company Identification No.]	U31200MH1990PTC058024
IEC No.:	0395058091
TAN No.: [Tax Deduction & Collection Account No.]	NGPM00629G
PAN No.: [Permanent Account No.]	AABCM2306H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Mangalam and Hight – Tide Welding Electrodes
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 3700000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having satisfactory track record. Trade relations are reported as fair. Business is active. Payment are reported to be regular and as per commitments. The company can be considered normal 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.

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	Long term rating : A
Rating Explanation	Adequate degree of safety and carry low credit risk.
Date	10.10.2014

Rating Agency Name	CRISIL
Rating	Short term rating : A1+
Rating Explanation	Very strong degree of safety and low credit risk.
Date	10.10.2014

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.

LOCATIONS

Registered Office :	S-111, Ramkrishna Apartment, Schaprunagare, Square, Nagpur - 440008, Maharashtra, India
Tel. No.:	91-712-2730399 / 2734895
Fax No.:	91-712-2730719
E-Mail :	pramalu@satym.net.in info@prmalugroup.com meploffice@vsnl.net
Website :	http://www.prmalugroup.com www.maluelectrodes.com
Head Office :	Neelkamal, 1249, Central Avenue, Nagpur - 440 002, Maharashtra, India
Tel. No.:	91-712-2760873/2767121
Fax No.:	91-712 2761315
E-Mail :	info@prmalugroup.com
Website :	http://www.prmalugroup.com
Factory 1 :	Plot No. S-3/S-4, MIDC Hingana, Nagpur - 440 016 Maharashtra, India
Tel. No.:	91-712-2730399/2734895
Fax No.:	91-712-2730719
E-Mail :	info@prmalugroup.com
Factory 2 :	Plot No. 21-22, Sector 3-A SIDCUl, IIE, Haridwar – 249 401, Uttarakhand, India
Tel. No.:	91-1334-239398/323109
Fax No.:	91-1334-239414
E-Mail :	haridwar@maluelectrodes.com

DIRECTORS

As on 30.09.2014

Name :

Mr. Shrawankumar Ramlal Malu

Designation :

Director

Address :

1249, Neelkamal, Central Avenue, Nagpur – 440002, Maharashtra, India

Date of Birth/Age :

18.01.1960

Date of Appointment :

09.09.1990

DIN No.:

00301141

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	U31200MH1990PTC058024	MALU ELECTRODES PRIVATE LIMITED	Director	09-09-1990	09-09-1990	-	Active	NO
2	U10100MH1991PTC064029	SUNFLAME FUELS PVT LTD	Whole-time director	03-01-1992	03-01-1992	-	Active	NO
3	U99999MH1991PTC061427	MARIGOLD FARMS PRIVATE LIMITED	Director	01-02-1997	01-02-1997	-	Active	NO
4	U27100MH2004PTC148222	SALASAR ALLOY AND STEEL INDUSTRIES PRIVATE LIMITED	Director	25-08-2004	25-08-2004	-	Active	NO

Name :

Mr. Venugopal Punamchand Malu

Designation :

Director

Address :

1249, Neelkamal, Central Avenue, Nagpur – 440002, Maharashtra, India

Date of Birth/Age :

25.10.1980

Date of Appointment :

01.07.2010

DIN No.:

00301177

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	U10100MH1991PTC064029	SUNFLAME FUELS PVT LTD	Whole-time director	10-06-2004	10-06-2004	-	Active	NO
2	U67190MH2006PTC160766	NEELKAMAL FINANCIAL SERVICES PRIVATE LIMITED	Director	27-03-2006	27-03-2006	-	Active	NO
3	U74990MH2009PTC194042	NEELKAMAL GLOBAL RESOURCES PRIVATE LIMITED	Director	14-07-2009	14-07-2009	-	Active	NO
4	U31200MH1990PTC058024	MALU ELECTRODES PRIVATE LIMITED	Director	01-07-2010	01-07-2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Names of Shareholders	No. of Shares
Shawankumar Malu	875000
Punamchand Malu	910000
Kaushalya Malu	770000
Sushila Malu	812000
Anita Malu	745500
Pushpa .D. Malu	805000
Ganpati Malu	17500
Damodharlal Malu	910000
Purushottam Malu	945000
Purushottam Malu, HUF	59500
Shrawankumar Malu HUF	59500
Punamchand Malu HUF	56000
Damodharlal Malu HUF	56000
Marigold Farms Private Limited, India	910000
Venu Gopal Malu	700000
Radheshyam P Malu	770000
Bharat S. Malu	689500
Shalini V. Malu	409500
TOTAL	10500000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2014

Category	Percentage
Bodies corporate	91.33
Directors or relatives of Directors	8.67
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Mangalam and Hight – Tide Welding Electrodes
Products :	Not Divulged
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	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
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

· Bhel

· Aarti Industries Limited

· ABG Shipyard Limited

· Aditya Birla Group

· Bharat Earth Movers Limited

· Bajaj Electricals Limited

· Grasim Industries Limited

· Jain Irrigation Inc.

· JCO Gas Pipe Limited

· KEC International Limited

· Lanco Inspiring Growth

· NCC Nagarjuna Construction Company

· NECO Group of Industries

· SESA Group Vedanta

· Simplex Infrastructures Limited

· Sunil Hi Tech Engineers Limited, etc

No. of Employees :

Not Divulged

Bankers :

· Axis Bank Limited, M G House, Rabindranath Tagore Road, Beside Board Office, Civil Lines, Nagpur - 440001, Maharashtra, India

Facilities :

Secured Loan	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long-term Borrowings
Term loans from banks	2.677	0.127
Short-term borrowings
Rupee term loans from banks	65.351	112.060
Loans repayable on demand from banks	0.000	16.086
Total	68.028	128.273

Auditors :
Name :	Kothari and Mehta Chartered Accountants
Address :	201, Sona Chambers, 507/509, JSS Road, Chirabazar, Marine Lines, Mumbai – 400002, Maharashtra, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAGFK3465M
Memberships :	Not Divulged
Collaborators :	Not Divulged
Associates :	· Shree Sales Corporation Private Limited, India (U51909MH2003PTC143273) · Sunflame Fuels Private Limited, India (U10100MH1991PTC064029) · Marigold Farms Private Limited, India · Frontline Commercial Private Limited, India (U65990MH1995PTC091706) · Salasar Alloy And Steel Industries Private Limited (U27100MH2004PTC148222) · Neelkamal Global Resources Private Limited (U74990MH2009PTC194042) · Malu Paper Mills Limited (L15142MH1994PLC076009) · Vindhya Transport Co.

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10500000	Equity Shares	Rs.10/- each	Rs.105.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

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	105.000	105.000	105.000
(b) Reserves & Surplus	1183.716	823.870	571.896
(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)	1288.716	928.870	676.896
(3) Non-Current Liabilities
(a) long-term borrowings	2.677	0.277	2.607
(b) Deferred tax liabilities (Net)	15.190	14.789	14.544
(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)	17.867	15.066	17.151
(4) Current Liabilities
(a) Short term borrowings	65.351	128.146	273.756
(b) Trade payables	223.788	389.324	300.375
(c) Other current liabilities	4.980	8.834	-2.557
(d) Short-term provisions	26.020	9.653	9.436
Total Current Liabilities (4)	320.139	535.957	581.010
TOTAL	1626.722	1479.893	1275.057
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	168.907	166.003	168.705
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	71.703	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	17.609	12.888	12.388
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	452.059	311.095	226.879
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	710.278	489.986	407.972
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	147.717	249.946	223.128
(c) Trade receivables	671.679	581.516	463.120
(d) Cash and cash equivalents	32.920	86.320	115.337
(e) Short-term loans and advances	64.128	72.125	65.365
(f) Other current assets	0.000	0.000	0.135
Total Current Assets	916.444	989.907	867.085
TOTAL	1626.722	1479.893	1275.057

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2014	31.03.2013	31.03.2012
PROFIT/ (LOSS) AFTER TAX (G-I) (J)	359.800	252.300	0.000
Earnings / (Loss) Per Share (Rs.)	34.27	24.03	NA

KEY RATIOS

PARTICULARS	31.03.2014	31.03.2013	31.03.2012
Debt Equity Ratio (Total Debt /Networth)	0.05	0.14	0.41
Current Ratio (Current Asset/Current Liability)	2.86	1.85	1.49

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	105.000	105.000	105.000
Reserves & Surplus	571.896	823.870	1183.716
Net worth	676.896	928.870	1288.716
long-term borrowings	2.607	0.277	2.677
Short term borrowings	273.756	128.146	65.351
Total borrowings	276.363	128.423	68.028
Debt/Equity ratio	0.408	0.138	0.053

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	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	No
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	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10117690	03/05/2012 *	712,132,000.00	Axis Bank Limited	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW G ARDEN ELLISBRIDGE, AHMEDABAD, Gujarat - 380006, INDIA	B39190178
2	10005642	23/02/2013 *	712,132,000.00	Axis Bank Limited	M G HOUSE, RABINDRANATH TAGORE ROAD, BESIDE BOARD OFFICE, CIVIL LINES, NAGPUR, Maharashtra - 440001, INDIA	B6896092

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long-term Borrowings
Loans and advances from related parties	0.000	0.150
Total	0.000	0.150

FIXED ASSETS

· Computers

· Electrical Equipment’s

· Furniture and Fit

· Land

· Machinery and plant

· Car

· Buildings

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.62.25
UK Pound	1	Rs.95.57
Euro	1	Rs.71.01

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	RCH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	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		50

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.