MIRA INFORM REPORT

Report Date :

24.04.2008

IDENTIFICATION DETAILS

Name :	MAITHAN ALLOYS LIMITED
Formerly Known As :	MAITHAN STEEL AND CASTINGS LIMITED
Registered Office :	3F East India, House 20 British Indian Street, Kolkata – 700069, West Bengal
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	19.09.1985
Com. Reg. No.:	039503
CIN No.: [Company Identification No.]	L27101WB1985PLC039503
TAN No.: [Tax Deduction & Collection Account No.]	CALM01139F
PAN No.: [Permanent Account No.]	AABCM7758B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Ferro Manganese and Silico Manganese.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 2312008
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a part of Maithan Group, a medium sized growing industrial house. Available information indicates high financial responsibility of the company. Trade relations are fair. Financial position is good. Payments are usually correct and as per commitments. The company is doing well. It can be considered good for any normal for any business dealing at usual trade terms and conditions.

LOCATIONS

Registered Office/ Factory:	3F East India House, 20 British Indian Street, Kolkata – 700069, West Bengal, India
Tel. No.:	91-33-2430759/ 2430760/ 2430761/ 22430759 /228110589
Fax No.:	91-33-2430585/ 22404353
E-Mail :	mal@snacharnet.in office@maithanalloys.com

DIRECTORS

Name :	Mr. Basant Kumar Agarwal
Designation :	Chairman cum Managing Director
Address :	P O Chirkunda, Dhanbas, Jharkhand – 828202, India
Date of Birth/Age :	16.02.1946
Date of Appointment :	19.09.1985
Name :	Mr. Subhas Chandra Agarwal
Designation :	Managing Director
Address :	P O Salanpur, Burdwan – 713357, West Bengal, India
Date of Birth/Age :	27.11.1951
Date of Appointment :	15.04.1992
Name :	Mr. Prahlad Rai Agarwal
Designation :	Whole Tine Director
Address :	P O Salanpur, Burdwan – 713357, West Bengal, India
Date of Birth/Age :	25.02.1951
Date of Appointment :	04.10.1999
Name :	Mr. Vishal Agarwal
Designation :	Whole Time Director
Address :	P O Chirkunda, Dhanbas, Jharkhand – 828202, India
Date of Birth/Age :	16.09.1971
Date of Appointment :	22.07.1995
Name :	Mr. Nand Kishore Agarwal
Designation :	Director
Address :	303, N S Road, P O Asansol, Burdwan – 713301, West Bengal, India
Date of Birth/Age :	11.02.1949
Date of Appointment :	17.08.2001
Name :	Mr. Raj Kumar Agarwal
Designation :	Director
Address :	Akash Ganga Complex, 2^nd Floor, Purulia Road, Mango, Jamshedpur, Jharkhand, India
Date of Birth/Age :	16.10.1945
Date of Appointment :	17.08.2001
Name :	Mr. Makhanlal Satnaliwala
Designation :	Director
Address :	62 Bentinck Street, Kolkata – 700069, West Bengal, India
Date of Birth/Age :	03.10.1936
Date of Appointment :	18.03.1996
Name :	Mr. Shrigopal Jhunjhunwala
Designation :	Director
Address :	Mangalam Apartments, 12/C Chakraberia Road (North), Kolkata – 700020, west Bengal, India
Date of Birth/Age :	30.04.1943
Date of Appointment :	17.08.2001

KEY EXECUTIVES

Name :	Mrs. Kavita Bhavsar
Designation :	Company Secretary
Address :	17 Ezara Street, 2^nd Floor, Kolkata – 700001, West Bengal, India
Date of Birth/Age :	11.02.1968
Date of Appointment :	01.08.2005
Name :	Mr. Charan Das Jhunjhunwala
Designation :	Company Secretary
Address :	84-B, Chandi Ghosh Road, Ganga Jamuna Apartments, Flat No.13, Tollygung, Kolkata – 700040, West Bengal, India
Date of Birth/Age :	08.03.1973
Date of Appointment :	31.05.2007
Name :	Mr. Sourish Kumat Paul
Designation :	Company Secretary
Address :	Joyaboti Abasan, 4/P-11 Ho-Chi-Minh Sarani, Flat No.-HF-2/15, Kolkata – 700061, West Bengal, India
Date of Birth/Age :	27.07.1978
Date of Appointment :	01.06.2007
Email :	sourishoffice@gmail.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 23.09.2005)

Names of Shareholders	No. of Shares
Mr. Jagdish Prasad Agarwal	100
Mr. Binod Kumar Agarwal	100
Mr. Basant Kumar Agarwal	100
Mrs. Sunita Agarwal	100
Mr. Shyam Sunder Agarwal	100
Mrs. Karuna Agarwal	100
Mr. Sila Agarwal	100
Total	700

(As on 31.03.2007)

Category	Percentage
Public Financial Companies	5.15
Bodies Corporate (not mentioned above)	41.95
Directors or relatives of directors	44.31
Other top fifty Shareholders (Other than listed above)	5.43
Others	3.16
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Ferro Manganese and Silico Manganese.

Products :

Products Description	Item Code No.
Ferro Alloys	7202300
Wind Power	-

GENERAL INFORMATION

No. of Employees :	500
Bankers :	· IDBI IDBI Tower, Cuffe Parade, Mumbai – 400005, Maharashtra, India · Axis Bank Limited Kolkata Main Branch, 7 Shakespear Sarani, Kolkata – 700071, West Bengal, India

Banking Relations :	Satisfactory
Auditors :
Name :	D K Chhajer and Company Chartered Accountant
Address :	5 Old Court House Street, Kolkata – 700001, West Bengal, India
Associates/Subsidiaries :	Axl- Exploration Private Limited U14292OR1999PTC005643

CAPITAL STRUCTURE

Authorised Capital:

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions
5000000	Preference Shares	Rs.10/- each	Rs.50.000 Millions
	Total		Rs.150.000 Millions

Issued, Subscribed Capital:

No. of Shares	Type	Value	Amount
9711450	Equity Shares	Rs.10/- each	Rs.97.114 Millions
360000	Preference Shares	Rs.100/- each	Rs.36.000 Millions
	Total		Rs.133.114 Millions

Paid-up Capital:

No. of Shares	Type	Value	Amount
9703850	Equity Shares	Rs.10/- each	Rs. 97.069 Millions
360000	Preference Shares	Rs.100/- each	Rs.36.000 Millions
	Total		Rs.133.069 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		133.070	133.070	133.070
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		444.932	321.112	286.566
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		578.002	454.182	419.636
LOAN FUNDS
1] Secured Loans		377.612	153.851	81.253
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		377.612	153.851	81.253
DEFERRED TAX LIABILITIES		27.603	0.000	35.159
TOTAL		983.217	608.033	536.048
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		551.071	301.582	264.718
Capital work-in-progress		99.799	0.988	0.000
INVESTMENT		32.994	32.994	28.094
DEFERREX TAX ASSETS		0.000	2.434	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	307.703	159.244	370.380
	Sundry Debtors	94.558	60.675	109.584
	Cash & Bank Balances	35.781	231.663	21.829
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	73.302	68.698	78.933
Total Current Assets		511.344	520.280	580.726
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	195.761	239.831	311.009
	Provisions	16.230	10.510	26.673
Total Current Liabilities		211.991	250.341	337.682
Net Current Assets		299.353	269.939	243.044
MISCELLANEOUS EXPENSES		0.000	0.096	0.192
TOTAL		983.217	608.033	536.048

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		1526.606	1446.295	1675.496
Other Income		15.502	21.337	13.559
Total Income		1542.108	1467.632	1689.055
Profit/(Loss) Before Tax		168.792	11.831	308.827
Provision for Taxation		49.146	(36.360)	108.929
Profit/(Loss) After Tax		119.646	(48.191)	199.898
Export Value		385.639	61.979	NA
Expenditures :
	Raw Material Consumed	575.684	665.838	662.595
	Purchases made for re-sale	116.435	191.643	105.798
	Consumption of stores and spares parts	54.203	44.160	63.660
	Increase/(Decrease) in Finished Goods	(28.940)	5.344	5.433
	Salaries, Wages, Bonus, etc.	7.245	6.331	5.876
	Managerial Remuneration	8.130	3.960	9.525
	Payment to Auditors	0.105	0.067	0.050
	Interest	27.499	26.606	19.041
	Insurance Expenses	1.164	1.287	1.747
	Power & Fuel	467.819	412.047	398.741
	Depreciation & Amortization	31.101	31.515	23.085
	Other Expenditure	112.871	67.003	84.677
Total Expenditure		1373.316	1455.801	1380.228

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	7.76	(3.28)	11.83
Net Profit Margin (PBT/Sales)	(%)	11.06	0.82	18.43
Return on Total Assets (PBT/Total Assets}	(%)	15.88	1.44	36.53
Return on Investment (ROI) (PBT/Networth)		0.29	0.03	0.73
Debt Equity Ratio (Total Liability/Networth)		1.02	0.89	0.99
Current Ratio (Current Asset/Current Liability)		2.41	2.08	1.72

LOCAL AGENCY FURTHER INFORMATION

Form 8:

Corporate identity number (CIN) Foreign company registration number	L99999WB1985PLC039503
Name of the Company	MAITHAN ALLOYS LIMITED
Address	3F East India, House 20 British Indian Street, Kolkata – 700069, West Bengal, India
This form is for	Creation of charge
Type of Charge	Book Debts Movable Property (not being pledge) Plant and Machinery, Term Loan
Particulars of the charge holder	Axis Bank Limited Kolkata Main Branch, 7 Shakespear Sarani, Kolkata – 700071, West Bengal, India cacuttaopertinhead@utibank.co.in
Nature or description of the instrument(s) creating or modifying the charge	Term Loan Agreement Deed of Hypothecation of Current Assets Deed of Hypothecation of Book Debts Deed of Hypothecation of Machinery and Other Movable Fixed Assets
Date of the instrument creating or modifying the charge	02.03.2007
Amount secured by the charge	Rs.170.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interests: Interests will be charge: below BPLR – 3.60% i.e. 9.90% p.a. with monthly rests or at such as other rates as may specified by bank from time to time. Term of Repayment: Term Loan Repayment in 78 months from the date of distribursement in 20 equal quarterly installments of Rs.8.500 Millions each after 18 months the date of repayment. Margin: Term Loan 33.94% Extent and operation of the charge: Paripassu 1^st charge on movable and immovable assets of the proposed expansion projects, 1^st Paripassu charge on the cash flows/ receivables of company arising from the sale of power to Maithan Smelters Limited, The company shall entire in to an Escrow arrangement with Axis Bank for routing at leased 50% of its operating cash flows arising from proposed power project, 2^nd paripasu charge on other current assets of the both present and future, 3^rd paripasu charge on other fixed assets of the company both present and future.
Short particulars of the property charged (including location of the property)	2^nd Pari Passu charge on the other current assets of the company both present and future. 1^st Pari Passu charge on the cash flows/receivables of the company arising from the sale to Maithan Smelters Limited 3^rd Pari Passu charge on the other fixed assets of the company both present and future. 1^st Pari Passu charge on the moveable and immovable assets of the proposed project
Particular of the present modification	NA

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.39.95
UK Pound	1	Rs.79.46
Euro	1	Rs.63.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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