MIRA INFORM REPORT

Report No. :	348713
Report Date :	09.11.2015

IDENTIFICATION DETAILS

Name :	ARUN FABRICATORS
Registered Office :	Bhattad Towers, 18, West Cott Road, Royapettah, Chennai – 600014, Tamilnadu
Tel. No.:	91-44-28410691/ 94
Country :	India
Financials (as on) :	31.03.2015 [Consolidated]
Year of Establishment :	1987
Capital Investment :	Rs. 13.253 Million
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Providing Fire Fighting Systems and also provide turnkey design and construction services.
No. of Employees :	25 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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 is a partnership firm established in 1987 with Mr. P. Suresh, Mr. P. Karthikeyan and Mr. A.M. Sundar as partners. The firm is primarily engaged in design, construction of vertical storage tank including floating roof tanks, laying od cross country pipelines, pump houses and other structural work connected with refinery, petroleum and chemical industries. The firm’s clientele includes major public sector and private sector oil marketing companies. For the financial year ended 2015, the firm has possesses moderate operational performance and it has incurred loss from its operational activities. Rating is constrained by the firm’s high working capital intensive nature of operations, leveraged capital structure, weak coverage indicators and capital withdrawal risk associated with the partnership nature of the firm. Trade relations are reported as fair. Payments are reported to be slow but correct. In view of aforesaid, 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 – 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

Rating Agency Name	CARE
Rating	Long term Bank facilities = BB
Rating Explanation	Inadequate credit quality and high credit risk.
Date	September 03, 2015

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. Sampath Kumar
Designation :	Vice President Finance
Contact No.:	91-44-28410691
Date :	07.11.2015

LOCATIONS

Registered/ Head Office :	Bhattad Towers, 18, West Cott Road, Royapettah, Chennai – 600014, Tamilnadu, India
Tel. No.:	91-44-28410691/ 94
Mobile No.:	91-9791042654 (Mr. Sampath Kumar)
Fax No.:	91-44-28555112
E-Mail :	ask@arunexcello.com
Website :	http://www.arunexcello.com
Area :	5000 Sq. ft.
Location :	Owned
Locality :	Commercial

PARTNERS

Name :	Mr. P. Suresh
Designation :	Partner
Name :	Mr. P. Karthikeyan
Designation :	Partner
Name :	Mr. A. M. Sunder
Designation :	Partner
Name :	Mrs. Shanti Suresh
Designation :	Partner
Name :	Mrs. Aarti Karthikeyan
Designation :	Partner
Name :	Mrs. Sukanya
Designation :	Partner

KEY EXECUTIVES

Name :	Mr. Sampath Kumar
Designation :	Vice President Finance

BUSINESS DETAILS

Line of Business :	Providing Fire Fighting Systems and also provide turnkey design and construction services.
Brand Names :	--
Agencies Held :	--
Exports :	--
Imports :	--
Terms :
Selling :	L/C and Credit
Purchasing :	L/C and Credit

GENERAL INFORMATION

Suppliers :

Reference:	Indian Oil Corporation Limited, Chennai, Tamilnadu, India
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 :

Others

Reference:	Madras Steels and Tubes, Chennai, Tamilnadu, India
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 :

25 (Approximately)

Bankers :

Bank Name:	Indian Overseas Bank
Branch:	Cathedral Branch, Chennai, Tamilnadu, India
Person Name (with Designation):	Mr. Prabhu [Chief Manager]
Contact Number:	91-44-28523833
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: Declined to part any information.

Auditors :
Name :	C. A. Patel Chartered Accountants
Address :	Chennai, Tamilnadu, India
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	· Arun Excello Homes Private Limited · Arun Excello Urban Infrastructure · Arun Excello Realty Private Limited · Arun Excello Construction LLP

CAPITAL STRUCTURE

AS ON 31.03.2015

Capital Investment :
Owned :	Rs. 13.253 Million
Borrowed :	--
Total :	Rs. 13.253 Million

FINANCIAL DATA

[all figures are in Rupees Million]

Expected Sales (2015-2016) : Rs.750.000 Million

The above information has been parted by Mr. Sampath Kumar (Vice President Finance)

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

CONSOLIDATED BALANCE SHEET

SOURCES OF FUNDS		31.03.2015	31.03.2014
SHAREHOLDERS FUNDS
1] Partners Capital		13.253	94.060
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		13.253	94.060
LOAN FUNDS
1] Secured Loans		368.661	340.423
2] Unsecured Loans		451.016	559.114
TOTAL BORROWING		819.677	899.537
DEFERRED TAX LIABILITIES		0.000	0.000
FOREIGN CURRENCY TRANSACTION RESERVE		0.000	0.700
TOTAL		832.930	994.297
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		44.543	100.913
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	37.871	70.721
	Sundry Debtors	157.490	20.168
	Cash & Bank Balances	7.691	30.217
	Other Current Assets	0.000	0.000
	Loans & Advances	623.261	791.840
Total Current Assets		826.313	912.946
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	40.111	19.448
	Other Current Liabilities	0.000	0.000
	Provisions	0.799	0.114
Total Current Liabilities		40.910	19.562
Net Current Assets		785.403	893.384
MISCELLANEOUS EXPENSES		0.000	0.000
FOREIGN CURRENCY TRANSACTION RESERVE		2.984	0.000
TOTAL		832.930	994.297

CONSOLIDATED PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014
	SALES
		Direct Income	549.001	322.077
		Other Income	96.070	70.706
		Work in Progress – Closing	37.871	70.721
		TOTAL	682.942	463.504
Less	EXPENSES
		Work in Progress – Opening	70.721	21.214
		Purchases and Direct Expenses	406.674	295.418
		Selling and Administrative Expenses	68.325	21.027
		Salary and Staff Expenses	19.765	13.043
		TOTAL	565.485	350.702
	PROFIT BEFORE INTEREST, DEPRECIATION AND AMORTISATION		117.457	112.802
Less	FINANCIAL EXPENSES		130.213	83.194
	PROFIT BEFORE DEPRECIATION AND AMORTISATION		(12.756)	29.608
Less/ Add	DEPRECIATION/ AMORTISATION		4.082	9.473
	NET PROFIT		(16.838)	20.135

CONSOLIDATED KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014
Net Profit Margin (PAT / Sales)	(%)	(3.07)	6.25
Operating Profit Margin (PBDIT/Sales)	(%)	21.39	35.02
Return on Total Assets (PBT/Total Assets}	(%)	1.93	1.99
Return on Investment (ROI) (PBT/Networth)		1.27	0.21
Debt Equity Ratio (Total Liability/Networth)		61.85	9.56
Current Ratio (Current Asset/Current Liability)		20.20	46.67

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particulars	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)
Partners Capital	94.060	13.253
Reserves & Surplus	0.000	0.000
Net worth	94.060	13.253
Secured Loans	340.423	368.661
Unsecured Loans	559.114	451.016
Total borrowings	899.537	819.677
Debt/Equity ratio	9.563	61.848

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)
Direct Income	322.077	549.001
		70.456

NET PROFIT MARGIN

Net Profit Margin	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)
Direct Income	322.077	549.001
Profit (Loss)	20.135	(16.838)
	6.25%	-3.07%

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)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
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 two 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	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. 65.79
UK Pound	1	Rs. 99.95
Euro	1	Rs. 71.55

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	KAR
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	--
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.