MIRA INFORM REPORT

Report No. :	323476.3
Report Date :	29.05.2015

IDENTIFICATION DETAILS

Name :	WELDWELL SPECIALITY PRIVATE LIMITED

Registered Office :	133/134, Acharya Commercial Centre, Dr. C. Gidwani Road, Chembur, Mumbai – 400 074, Maharashtra
Tel. No.:	91-22-66462000/ 25582746/ 25515523/ 25503720

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	04.01.1991

Com. Reg. No.:	11-059670

Capital Investment / Paid-up Capital :	Rs.0.500 million

CIN No.: [Company Identification No.]	U29290MH1991PTC059670

TAN No.: [Tax Deduction & Collection Account No.]	MUMW01022A

PAN No.: [Permanent Account No.]	Not Available

Legal Form :	Private Limited Liability Company

Line of Business :	Trader of Welding Materials and Equipments.

No. of Employees :	14 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 45000

Status :	Satisfactory

Payment Behaviour :	Usually correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track record. General financial position of the company is normal and acceptable for business dealing. Trade relations are reported as fair. Business is active. Payments terms are reported to be usually correct. 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 – March 31, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

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	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	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 PARTED BY

Name :	Mr. Mahdev
Designation :	Account Executive
Contact No.:	91-22-66462000
Date :	19.05.2015

LOCATIONS

Registered Office :	133/134, Acharya Commercial Centre, Dr. C. Gidwani Road, Chembur, Mumbai – 400 074, Maharashtra, India
Tel. No.:	91-22-66462000/ 25582746/ 25515523/ 25503720
Fax No.:	91-22-25566789
E-Mail :	sales@weldwell.com ccg@weldwell.com accounts@weldwell.com
Website :	http://www.weldwell.com

Corporate Office :	401, Vikas Commercial Centre, Dr. C. Gidwani Road, Chembur, Mumbai – 400 074, Maharashtra, India
Tel. No.:	91-22-25203270/ 25212746/ 25205523
Fax No.:	91-22-25206789

Warehouse :	Located At: Vashi, Thane, Maharashtra, India

DIRECTORS

As on 30.09.2014

Name :	Mr. Chandrabhushan Charanjitlal Girotra
Designation :	Director
Address :	46, Green Garden, W.T. Patil Marg, Acharya Nagar, Deonar, Mumbai – 400088, Maharashtra, India
Date of Birth/Age :	01.11.1943
Date of Appointment :	04.01.1991
DIN No.:	01230432

Name :	Mr. Kulbhushan Premnath Jetly
Designation :	Director
Address :	44, Acharya Nagar, Deonar, Mumbai – 400 088, Maharashtra, India
Date of Birth/Age :	28.11.1948
Date of Appointment :	04.01.1991
DIN No.:	00941308

Name :	Mr. Kamlesh Chandrabhushan Girotra
Designation :	Director
Address :	46, Green Garden, W.T. Patil Marg, Acharya Nagar, Deonar, Mumbai – 400088, Maharashtra, India
Date of Birth/Age :	13.05.1948
Date of Appointment :	03.03.2007
DIN No.:	01093250

Name :	Mrs. Manju Kulbhushan Jetly
Designation :	Director
Address :	44, Acharya Nagar, Deonar, Mumbai – 400 088, Maharashtra, India
Date of Birth/Age :	03.10.1950
Date of Appointment :	04.01.1991
DIN No.:	01138881

KEY EXECUTIVES

Name :	Mr. Mahdev
Designation :	Account Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Names of Shareholders	No. of Shares	Percentage
Chandrabhushan Charanjitlal Girotra	12500	25.00
Kamlesh Chandrabhushan Girotra	12500	25.00
Kulbhushan Premnath Jetly	12500	25.00
Manju Kulbhushan Jetly	12500	25.00
Total	50000	100.00

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2014

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of Welding Materials and Equipments.

Products :	Welding Materials

Brand Names :	Not Divulged

Agencies Held :	Not Divulged

Exports :	Not Available

Imports :
Products :	Welding Wires
Countries :	Japan USA

Terms :
Selling :	Cash and Credit

Purchasing :	Cash and Credit

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers (As on 31.03.2015) :

Advance Metal Powder
Confo Agencies
Creative Engineers
Eastwest Engineering and Electronics Private Limited
Elemech Engineers
Fairdeal Agencies
Imperial Weld Ring Corporation
JLC Electromet Private Limited
Kanematsu Trading Corporation
Mehtasanghvi and Company
Nivek Agencies
SKM Enterprises Private Limited
Shree Kailaji Alloys Private Limited
Venus Wire Industries Private Limited
Ashish Telephone Cleaning and Computer Service
AFL Dachser Private Limited
Bharat Xerox Copy Centre
C.C. Girotra (Remuneration)
Contech Services
DHL Express (India) Private Limited
First Flight Courier Limited
Hindustan Cargo Limited
Jagdamba Electric and Hardware
K.B. Jetly (Remuneration)
Reliance Communication
Reliance Infrastructure (Electric Charges)

Customers (As on 31.03.2015) :

Alok Equipments Private Limited
AMPCO Metal Incorporated
Arabian Industries LLC
Adani Power Limited
Advance Metal Powder
AE and E Chennai Works Limited
ATE Wera Private Limited
Blacksmith Equipments (India) Private Limited
Brodweld -Baroda
Christe Agency
Creative Engineers
DCMS Engg Company
Dept. of Atomic Energy - Mumbai
Dipas Industries
Deepak Fert. and Petro. Corporation Limited
East West Engg and Electronics Company
EDAC Industrial Services Limited
ELEME Petrochemicals Company Limited
Fairdeal Agencies
Flomatic Engineers
L & T Limited
Reliance Industries Limited

No. of Employees :

14 (Approximately)

Bankers :

Bank Name	Canara Bank
Branch	Nirankari Mandal Building, Mahul Road, Chembur Camp, Mumbai - 400074, Maharashtra, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
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 :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Short-term borrowings
Loans repayable on demand
Overdraft from Bank Secured by stocks bank fixed deposits (renewed every year) and personal guarantee of the directors)	0.000	0.796
Total	0.000	0.796

Auditors :
Name :	N.K. Kalra and Associates Chartered Accountants
Address :	Shiv Kripa Building, 1^st Floor, Bhakti Bhavan Lane, Sindhi Society, Chembur, Mumbai – 400 071, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAAPK9845K

Memberships :	--

Collaborators :	--

Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

100,000	Equity Shares	Rs.10/- each	Rs.1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

50,000	Equity Shares	Rs.10/- each	Rs. 0.500 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	0.500	0.500	0.500
(b) Reserves & Surplus	15.311	14.708	14.466
(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)	15.811	15.208	14.966

(3) Non-Current Liabilities
(a) long-term borrowings	1.528	1.402	1.265
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(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)	1.528	1.402	1.265

(4) Current Liabilities
(a) Short term borrowings	0.000	0.796	0.807
(b) Trade payables	10.426	7.332	3.451
(c) Other current liabilities	1.258	1.006	0.944
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	11.684	9.134	5.202

TOTAL	29.023	25.744	21.433

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	0.687	0.802	0.774
(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	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.004	0.000	0.003
(d) Long-term Loan and Advances	0.227	0.532	0.608
(e) Other Non-current assets	0.010	0.010	0.010
Total Non-Current Assets	0.928	1.344	1.395

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	7.674	5.784	9.451
(c) Trade receivables	8.594	15.212	7.415
(d) Cash and cash equivalents	10.320	2.710	2.165
(e) Short-term loans and advances	1.507	0.694	1.007
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	28.095	24.400	20.038

TOTAL	29.023	25.744	21.433

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	39.055	44.036	26.642
	Other Income	0.972	0.201	0.312
	TOTAL (A)	40.027	44.237	26.954

Less	EXPENSES
	Purchases of Stock-in-Trade	33.341	31.289	20.486
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(1.890)	3.667	0.718
	Employees benefits expense	4.490	4.166	2.727
	Other expenses	2.519	4.145	2.318
	TOTAL (B)	38.460	43.267	26.249

Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	1.567	0.970	0.705

Less	FINANCIAL EXPENSES (D)	0.455	0.416	0.374

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	1.112	0.554	0.331

Less/ Add	DEPRECIATION/ AMORTISATION (F)	0.163	0.129	0.154

	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	0.949	0.425	0.177

Less	TAX (H)	0.346	0.183	0.027

	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	0.603	0.242	0.150

	IMPORTS C.I.F	14.044	10.474	0.000

	Earnings / (Loss) Per Share (Rs.)	12.07	4.84	3.01

Particulars

31.03.2015

Sales Turnover (Approximately)

30.000

Expected Sales (2015-2016) : Rs.35.000 Million

The above information has been parted by Mr. Mahadev (Account executive)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

Cash generated from operations

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	1.54	0.55	0.56

Operating Profit Margin (PBIDT/Sales)	(%)	4.01	2.20	2.65

Return on Total Assets (PBT/Total Assets}	(%)	3.27	1.65	0.83

Return on Investment (ROI) (PBT/Networth)		0.06	0.03	0.01

Debt Equity Ratio (Total Debt /Networth)		0.10	0.14	0.14

Current Ratio (Current Asset/Current Liability)		2.40	2.67	3.85

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	0.500	0.500	0.500
Reserves & Surplus	14.466	14.708	15.311
Net worth	14.966	15.208	15.811

long-term borrowings	1.265	1.402	1.528
Short term borrowings	0.807	0.796	0.000
Total borrowings	2.072	2.198	1.528
Debt/Equity ratio	0.138	0.145	0.097

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	26.642	44.036	39.055
		65.288	(11.311)

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	26.642	44.036	39.055
Profit	0.150	0.242	0.603
	0.56%	0.55%	1.54%

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	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	Yes
26	Turnover of firm for last Four 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	Yes
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

OPERATIONS:

During the year the turnover of the company decreased to Rs.39.000 Million (Rs. 44.000 Million in P.Y.). However, in the current year profit before taxes and depreciation has increased to Rs. 1.112 Million (Rs. 0.553 Million in P.Y) although the turnover has reduced. Despite rapidly growing competition the future outlook appears to be bright, the directors are expecting growth of business.

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Loans and Advances from Related Parties**
Mr. C. C. Girotra	0.721	0.661
Mr. K. B. Jetly	0.807	0.741
Total	1.529	1.402

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90164381	06/06/2006 *	1,000,000.00	CANARA BANK	CHEMBUR CAMP BRANCH, NIRANKARI MANDAL BUILDING, MAHUL ROAD,, MUMBAI, Maharashtra - 400074, INDIA	-
2	90164007	23/03/2000	500,000.00	CANARA BANK HAVING REGISTERD OF. AT122	J.C. ROAD, BANGLORE, BANGLORE, Karnataka, INDIA	-
3	90165029	25/06/2007 *	2,600,000.00	CANARA BANK	NIRANKARI MANDAL BUILDING, MAHUL ROAD,, CHEMBUR C AMP, MUMBAI, Maharashtra - 400074, INDIA	A18449306

FIXED ASSETS

Computer
Fax Machine
Gala Account
Furniture and Fixtures
Air Conditioner
Weighing Scale
Voltage Stabiliser
Telephone Equipment
Tools and Equipment
Office EquipmentRefrigerator

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.63.90
UK Pound	1	Rs.98.16
Euro	1	Rs.69.73

INFORMATION DETAILS

Information Gathered by :	RKH

Analysis Done by :	DIV

Report Prepared by :	JYTK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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		43

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.

MIRA INFORM REPORT

INDEX OF CHARGES

Unit