MIRA INFORM REPORT

Report No. :	332443
Report Date :	18.07.2015

IDENTIFICATION DETAILS

Name :	PHOOLCHAND BHAGATSINGH
Registered Office :	Shop No. 15, HT Life Mall, P. M. Road, Santacruz, Mumbai – 400054, Maharashtra
Tel. No.:	91-22-61120500
Country :	India
Financials (as on) :	31.03.2014
Year of Establishment :	1957
Capital Investment :	Rs. 262.155 Million
IEC No.:	0388064501
TAN No.:	MUMP00964F
PAN No.: [Permanent Account No.]	AAAFP1146J
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Trader of Ferro Alloys and Metal, Non Ferrous Metal.
No. of Employees :	30 (Approximately)

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 partnership concern having satisfactory track record. General financial position of the subject seems to be fair. However rating also takes into consideration low profitability. As claimed by Mr. Rajesh Khandelwal (Account Manager) the subject has achieved sales turnover of Rs. 4050.000 Million during FY 2014-2015, which is not verified. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. In the view of experienced promoters and long track record of operations, 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.

ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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 DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2013.

INFORMATION PARTED BY

Name :	Mr. Rajesh Khandelwal
Designation :	Accounts Manager
Contact No.:	91-22-61120500
Date :	15.07.2015

LOCATIONS

Registered Office :	Shop No. 15, HT Life Mall, P. M. Road, Santacruz, Mumbai – 400054, Maharashtra, India
Tel. No.:	91-22-61120500
Mobile No.:	91-9323160250 (Mr. Sanjeev Khandelwal)
Fax No.:	91-22-61120505
E-Mail :	phoolchand@gmail.com
Website :	http://phoolchand.co.in
Warehouse :	Located At: · Ahmedabad  · Delhi  · Faridabad  · Mandi Gobindgarh · Chennai

PARTNERS

Name :	Mr. Bhagat Singh Khandelwal
Designation :	Partner
Name :	Mr. Rajeev Khandelwal
Designation :	Partner
Name :	Mr. Sanjeev Khandelwal
Designation :	Partner

KEY EXECUTIVES

Name :	Mr. Rajesh Khandelwal
Designation :	Accounts Manager

BUSINESS DETAILS

Line of Business :	Trader and Importer of Ferro Alloys and Metal, Non Ferrous Metal.
Brand Names :	--
Agencies Held :	--
Exports :	--
Imports :
Products :	Raw Materials
Countries :	· UK · China · Russia · South Africa · Brazil · Malaysia
Terms :
Selling :	Cash, L/C and Credit
Purchasing :	Cash, L/C and Credit

GENERAL INFORMATION

Suppliers :

Reference:	Metal Alloys India – Mumbai
Name of the Person (Designation):	Mr. Sugandh (Partner)
Contact Number:	91-22-26608070/ 91-9820055133
Since how long known:	20 Years
Maximum limit dealt:	Not Divulged
Experience:	Payment Behaviour = Good Market Goodwill = Good Overall = Good
Remark	They gave us positive response about subject company they are satisfied with their payment behavior and market goodwill.

Customers :

Wholesalers, Retailers and End Users

Reference:	Asia Metal and Ferrow Alloys
Name of the Person (Designation):	Mr. Suresh Bafna (Proprietor)
Contact Number:	91-22-23829916/ 91-9820199502
Since how long known:	20 Years
Maximum limit dealt:	Not Divulged
Experience:	Product Quality = Good Delivery Behaviour = Good Overall = Good
Remark	They gave us positive response about subject company they are satisfied with their product quality and delivery behavior.

No. of Employees :

30 (Approximately)

Bankers :

Bank Name:	HDFC Bank Limited
Branch:	Crawford Market, Mumbai – 400001, Maharashtra, India
Person Name (with Designation):	Mr. Dhruv Agarwal
Contact Number:	91-8767850007 (Not Responding)
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks: Not Divulged

· Citi Bank Limited

Auditors :
Name :	Mahendra Jain and Associates Chartered Accountants
Address :	Surat, Gujarat, India
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON 31.03.2014

Capital Investment :
Owned :	Rs. 262.155 Million
Borrowed :	--
Total :	Rs. 262.155 Million

FINANCIAL DATA

[all figures are in Rupees Million]

PARTICULARS	31.03.2015
Sales Turnover (Approximately)	4050.000

The above information has been parted by Mr. Rajesh Khandelwal (Accounts Manager).

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

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Partners Capital		262.155	262.555
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		262.155	262.555
LOAN FUNDS
1] Secured Loans		438.841	327.143
2] Unsecured Loans		125.931	96.466
TOTAL BORROWING		564.772	423.609
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		826.927	686.163
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		25.479	25.774
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	170.943	174.830
	Sundry Debtors	582.568	481.564
	Cash & Bank Balances	20.676	6.986
	Other Current Assets	91.493	61.626
Total Current Assets		865.680	725.006
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	40.758	52.880
	Other Liabilities	13.209	10.606
	Provisions	10.265	1.131
Total Current Liabilities		64.232	64.617
Net Current Assets		801.448	660.389
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		826.927	686.163

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013
	SALES
		Income	3211.181	2884.297
		Commission From Sale of Consignments	5.055	5.263
		Other Income	2.717	3.296
		TOTAL	3218.953	2892.856
Less	EXPENSES
		Cost of Goods Sold	3069.723	2756.283
		Direct Expenses	19.670	20.494
		Payment to Employees	14.231	12.735
		Office and Admin. Expenses	9.908	8.550
		Selling and Distribution Expenses	17.226	14.479
		Bad Debts	2.320	0.000
		Auditors Fees	0.163	0.163
		Interest to partners	3.911	2.830
		Remuneration to Partner	4.200	3.000
		TOTAL	3141.352	2818.534
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		77.601	74.322
Less	FINANCIAL EXPENSES		65.681	62.307
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		11.920	12.015
Less/ Add	DEPRECIATION/ AMORTISATION		2.538	2.531
	NET SURPLUS TRANSFER TO PROFIT AND LOSS ACCOUNT		9.382	9.484

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	0.29	0.33
Operating Profit Margin (PBDIT/Sales)	(%)	2.41	2.57
Return on Total Assets (PBT/Total Assets}	(%)	1.08	0.01
Return on Investment (ROI) (PBT/Networth)		0.04	0.04
Debt Equity Ratio (Total Liability/Networth)		0.25	0.25
Current Ratio (Current Asset/Current Liability)		13.48	11.22

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Partners Capital	262.555	262.155
Reserves & Surplus	0.000	0.000
Money received against share warrants	0.000	0.000
Share Application money pending allotment	0.000	0.000
Net worth	262.555	262.155
Secured Loans	327.143	438.841
Unsecured Loans	96.466	125.931
Total borrowings	423.609	564.772
Debt/Equity ratio	1.613	2.154

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	2884.297	3211.181
		11.333

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	2884.297	3211.181
Profit	9.484	9.382
	0.33%	0.29%

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	No
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	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
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	No
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	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last two years	Yes
30	Major shareholders, if available	No
31	External Agency Rating, if available	No
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.63.49
UK Pound	1	Rs.99.43
Euro	1	Rs.69.14

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	SAN
Report Prepared by :	ARC

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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.