MIRA INFORM REPORT

Report Date :

11.12.2008

IDENTIFICATION DETAILS

Name :	RASHTRIYA METAL INDUSTRIES LIMITED
Registered Office :	Sir M V Road, J B Nagar, Andheri (East), Mumbai – 400 059, Maharashtra
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	28.11.1946
Com. Reg. No.:	11-5378
CIN No.: [Company Identification No.]	U99999MH1946PLC005378
TAN No.: [Tax Deduction & Collection Account No.]	MUMR14494E
Legal Form :	A closely held public limited liability company
Line of Business :	Manufacturer of Metal Alloys

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 1300000
Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Trade relations are fair. Business is active. No complaints have been heard. The company can be considered good for normal business dealings.

INFORMATION PARTED BY

Name :	Mr. Nilesh Sadghara
Designation :	Accountant
Date :	10.12.2008

LOCATIONS

Registered Office/Factory :	Sir M V Road, J B Nagar, Andheri (East), Mumbai – 400 059, Maharashtra, India
Tel. No.:	91-22-56923311 / 28323311 / 66923311 / 734-2584548
Fax No.:	91-22-28366366
E-Mail :	sales@rashtriyametal.com mail@rashtriyametal.com chhogmal@gmail.com nilesh@rashtriyametal.com
Website :	http://www.rashtriyametal.com
Area :	Above 1000 Sq. ft.
Location :	Owned

DIRECTORS

Name :	Mr. Premratan Damani
Designation :	Director
Address :	23, Moti Mahal, Churchgate Reclamation, Mumbai – 400 020, Maharashtra, India
Date of Birth/Age :	15.05.1936
Date of Appointment :	29.02.1982
Name :	Mr. Rameshwardas Binani
Designation :	Director
Address :	33 B, Rowland Road, Kolkata – 700 020, West Bengal, India
Date of Birth/Age :	04.11.1938
Date of Appointment :	25.09.1984
Name :	Mr. Shrikishan Fomra
Designation :	Director
Address :	Yadav Bhavan, 20 ft Sikar Ajmer Bipass Road, P. O. Hirapur, Jaipur – 306 001, Rajasthan, India
Date of Birth/Age :	06.02.1940
Date of Appointment :	25.09.1984
Name :	Mr. Chandrakant Bhula
Designation :	Director
Address :	72/74, Annapurna Sadan, V P Road, 2^nd Floor, Mumbai – 400 004, Maharashtra, India
Date of Birth/Age :	01.11.1941
Date of Appointment :	25.09.1984
Name :	Mr. Balkirshna Binani
Designation :	Managing Director
Address :	28/30, Anantwadi, Mumbai – 400 020, Maharashtra, India
Date of Birth/Age :	02.01.1951
Qualification :	Post Graduate
Date of Appointment :	01.07.2006
Directorship in other Companies :	· Pragdas Mathuradas (Bombay) Private Limited CIN No.: U27100MH1942PTC003729 · Binani Commercial Company Private Limited CIN No.: U51900MH1944PTC004177 · Santana Properties Private Limited CIN No.: U70101MH1989PTC050777 · Devpriya Developers Private Limited CIN No.: U45200MH1997PTC105861 · Pontiac Properties Private Limited CIN No.: U70101MH1989PTC050773 · Tarif Cine and Finance Limited CIN No.: U65990MH1985PLC035268 · The Nav Bharat Refrigeration and Industries Limited CIN No.: U99999MH1979PTC020987

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 25.09.2008)

Names of Shareholders	No. of Shares
The Binani Commercial Company Private Limited	543475
Balkrishna Binani B O Devpriya Enterprises	868350
Kashi Devi Binani B O Devpriya Enterprises	364414
Kirit Ratilal Gandhi Pravin Ratilal Gandhi	10000
Narsinghdas Daga	18000
Pragdas Mathuradas (BOM) Private Limited	347168
Ram Murti Benlprasad	1520
Shashi Binani	10000
Tariff Cine and Finance Limited	2124352
Balkrishna Binani Shalhsi Binani	111553
Altamount Holding and Trading Company Private Limited	1600
Shardadevi Lakhotia	36860

Equity share breakup (percentage of total equity)

(As on 30.09.2008)

Category	Percentage
Bodies corporate	66.88
Directors or relatives of directors	30.61
Other top fifty (50) shareholders	2.51
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Metal Alloys

Products :

Product Description	ITC Code
Non – Ferrous Semis Copper and Copper Alloys	7409

Exports :

Countries :

· Israel

· Indonesia

· Australia

· Sri Lanka

Imports :

Countries :

· Germany

· UK

Terms :

Selling :

L/C and Credit (30 days / 60 days / 90 days)

Purchasing :

L/C and Credit (30 days / 60 days / 90 days)

GENERAL INFORMATION

Customers :

· Dealer

· Manufacturer

No. of Employees :

300 (Contract Workers + 50)

Bankers :

Bank of India and Bank of Baroda and Punjab National Bank

Chakala Branch, Opp. Sangam Cinema, Sir M V Road, Andheri (East), Mumbai – 400 093, Maharashtra, India

Facilities :

Secured Loans	(As on 31.03.2008) Rs. in millions
a Term Loan from bank secured by first charge on plant and machinery and personal guarantee of Managing Director	8.424
b Overdraft from Banks*	248.137
c Short term borrowing from bank*	117.398
d Loan against hypothecation of Vehicle	3.223
* b and c above are secured against the security of hypothecation of stock in trade and book debts and first charge of factory land and building, plant and Machinery and personal guarantee by the Managing Director
Total	377.182

Banking Relations :	-
Auditors :
Name :	Chintan Shah-Chhogmal and Company Chartered Accountants
Address :	206, Apollo Chambers, Mogra Road, Andheri (East), Mumbai – 400 069, Maharashtra, India
Associates/Subsidiaries :	· Tarif Cine and Finance Limited · Pragdas Mathuradas (Bom) Private Limited · The Binani Commercial Company Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
5350000	Equity Shares	Rs.10/- each	Rs.53.500 millions
15000	Preference Shares	Rs.100/- each	Rs.1.500 millions
	Total		Rs.55.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4513012	Equity Shares	Rs.10/- each	Rs.45.130 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		45.130	45.130	45.130
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		220.035	195.310	134.320
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		265.165	240.440	179.450
LOAN FUNDS
1] Secured Loans		377.182	226.609	183.223
2] Unsecured Loans		66.168	17.180	14.822
TOTAL BORROWING		443.350	243.789	198.045
DEFERRED TAX LIABILITIES		16.597	17.797	19.292
TOTAL		725.112	502.026	396.787
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		85.812	93.228	97.705
Capital work-in-progress		209.352	44.918	6.005
INVESTMENT		64.574	57.986	0.266
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	208.115	138.270	132.707
	Sundry Debtors	202.600	210.424	149.547
	Cash & Bank Balances	114.010	41.661	57.043
	Other Current Assets	0.000	0.000	0.300
	Loans & Advances	76.830	111.941	78.988
Total Current Assets		601.555	502.296	418.585
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	213.723	121.585	95.799
	Provisions	22.458	74.817	29.975
Total Current Liabilities		236.181	196.402	125.774
Net Current Assets		365.374	305.894	292.811
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		725.112	502.026	396.787

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		908.671	910.383	531.533
Other Income		15.472	16.021	1.277
Total Income		924.143	926.404	532.810
Profit/(Loss) Before Tax		29.765	68.109	34.582
Provision for Taxation		2.400	3.423	(17.995)
Profit/(Loss) After Tax		27.365	64.686	52.577
Earnings in Foreign Currency :		213.861	228.179	NA
Imports :
	Raw Materials	141.109	94.047	NA
	Stores & Spares	1.573	1.553	NA
	Capital Goods	91.543	2.940	NA
Total Imports		234.225	98.540	NA
Expenditures :
	Raw Material Consumed	674.804	648.658	0.000
	Consumption of stores and spares parts	17.245	16.617	307.727
	Salaries, Wages, Bonus, etc.	50.000	45.183	47.169
	Managerial Remuneration	2.580	3.502	1.459
	Payment to Auditors	0.000	0.000	0.112
	Interest	26.184	31.656	18.098
	Insurance Expenses	0.594	1.021	0.808
	Power & Fuel	62.167	42.563	40.993
	Depreciation & Amortization	12.507	12.165	11.501
	Other Expenditure	48.297	56.930	70.361
Total Expenditure		894.378	858.295	498.228

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	2.96	6.98	9.87
Net Profit Margin (PBT/Sales)	(%)	3.28	7.48	6.51
Return on Total Assets (PBT/Total Assets}	(%)	4.33	11.44	6.70
Return on Investment (ROI) (PBT/Networth)		0.11	0.28	0.19
Debt Equity Ratio (Total Liability/Networth)		2.56	1.83	1.80
Current Ratio (Current Asset/Current Liability)		2.55	2.56	3.33

LOCAL AGENCY FURTHER INFORMATION

Trade References

· Sterlite Industries – Andheri, Chakala

· Sunrise Metal Private Limited, Bhuleshwar

Form No. 8

Name of the company

RASHTRIYA METAL INDUSTRIES LIMITED

Presented By

Bank of India, Chakala Branch, Mumbai 400 093

1) Date and description of instrument creating the change

24^th December, 2002

No Instrument equitable Mortgage of company’s property.

2) Amount secured by the charge/amount owing on the securities of charge

1. Bank of India

Fund Based working capital limits of Rs.73.200 millions

Non- Fund Based working capital limits of Rs.105.000 millions

Total Rs.178.200 millions

2. Bank of Baroda

Fund Based working capital limits of Rs.27.500 millions

Non- Fund Based working capital limits of Rs.30.000 millions

Total 57.500 millions

Total 1+2 = Rs.235.700 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Equitable Mortgage of all that piece or parcel of lands/properties bearing

1. Survey No. 62-D, Admn. 40 sq. yds. and No. 65A Admn. 94 sq. yds. Hissa No. 5 situated at Kondivita Taluka, Andheri

2. Survey Nos. 12 and 75, Hissa No. 1 and 4 situate at Village Kondivita Taluka, Andheri

3. Survey Nos. 64, 65A and 66, Hissa Nos. 4(Pt) 5 and 8 admn. 4415 sq. yds. Situate at Village Kondivita Taluka, Andheri

4. Survey Nos. 72 and 74, Hissa No. 3 and 4 admn. 1361 sq. yds. Situate at Village Kondivita Taluka, Andheri

5. Survey No. 64 and 66 Admn. 10635 sq. yds. Situate at Village Kondivita Taluka, Andheri

6. Survey Nos. 64, Hissa No. 4 (Pt) admn. 1121 sq. yds. Situate at Village Kondivita Taluka, Andheri

7. Survey Nos. 64, Hissa No. 5 and 7 Situate at Village Kondivita Taluka, Andheri

8. Survey Nos. 62 and 64, Hissa No. 2, 3 and 5 (pt) Situate at Village Kondivita Taluka, Andheri

9. Survey No. 64, 72 and 74 Admn. 7850sq. yds. Situate at Village Kondivita Taluka, Andheri

10. Survey No. 12, New Hissa No. 2 Admn. 6534 sq. yds. Situate at Village Mulgaon in Ghanichi Baug.

Taluka Andheri together with all buildings, structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth both present and future in the Revenue Village of Andheri (East) Mumbai registration sub-district Bandra Mumbai and abandoned as follows

On and towards the North by MIDC Area

On and towards the South by Andheri Kurla Road

On and towards the East by Trade Globe Towers

On and towards the West by Sahar Plaza

4) Gist of the terms and conditions and extent and operation of the charge.

The charge for securing the due repayment, discharge and redemption by the company to Bank of India and Bank of Baroda their respective facilities mentioned in column No. 2 hereinabove on pari passu basis together with all interest, liquidated damages, front and fees / commitment charges, premia on prepayment, costs, charges, expenses and other monies including any increase as a result of devaluation / revaluation / fluctuation in the rate of exchange of the foreign currencies involved, payable under respective loan agreements letters of sanction as amended from time to time.

5) Name and Address and description of the person entitled to the charge.

Bank of India, Chakala Branch, Opp. Sangam Theatre, Andheri Kurla Road, Andheri (East), Mumbai – 400 093

Bank of Baroda, Saki Naka Branch, Andheri (East), Mumbai – 400 072

6) Date and brief description of instrument modifying the charge

28^th September, 2004’

Record of continuing oral assent of mortgage by deposit of title deeds

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

By this modification dated 28.09.2004 Punjab National Bank has been induced into the Consortium and the mortgage by deposit of title deeds created by the company in favour of Bank of India and Bank of Baroda on 24.12.2002 as stated above shall continue to be in force and effect as security by way of extension of mortgage over the said immovable properties to secure the due repayment discharge and redemption by the company to Bank of India Consortium comprising Bank of India, Bank of Baroda and Punjab National Bank for the revised / enhanced credit limits as under

Bank	Fund Based limits	Non Fund Based limits	Total Limits
(Rs. in millions)
Bank of India	66.000	182.000	248.000
Bank of India – Existing Term Loan	17.500	0.000	17.500
Bank of India – New Term Loan	30.000	0.000	30.000
Bank of Baroda	42.800	65.200	108.000
Punjab National Bank	11.200	32.800	44.000
Total	167.500	280.000	447.500

Together with interest and all costs between attorney and clients) charges, expenses paid or incurred by Bank of India Consortium.

The equitable mortgage charge on the said immovable properties will be shared on pari passu basis by Bank of India, Bank of Baroda and Punjab National Bank.

Corporate identity number of the company	U99999MH1946PLC005378
Name of the company	RASHTRIYA METAL INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	Sir M V Road, J B Nagar, Andheri (East), Mumbai – 400 059, Maharashtra, India
This form is for	Modification of charge
Type of charge	Immovable property
Particular of charge holder	Bank of India and Bank of Baroda and Punjab National Bank Chakala Branch, Opp. Sangam Cinema, Sir M V Road, Andheri (East), Mumbai – 400 093, Maharashtra, India
Nature of instrument creating charge	Letter Ref. No. CKL/PKD/CR/2008-09 dated 16.08.2008 of Bank of India (Consortium leader)
Date of instrument Creating the charge	16.08.2008
Amount secured by the charge	Rs.472.300 millions
Brief of the principal terms an conditions and extent and operation of the charge	· Rate of interest Particulars of Interest / commission etc. · Terms of repayment On Demand · Extent and operation of the charge The charge is for securing the due repayment, discharge and redemption by the company to Bank of India, Bank of Baroda, Punjab National Bank their respective facilities mentioned in the attached oral assent on pari passu basis together with all interest, liquidated damages, front end fees / commitment charges, premia on prepayment, costs, charges, expenses and other monies including any increase as a result of devaluation / revaluation / fluctuation in the rate of exchange. · Others The foreign currencies involved, payable under respective loan agreements / letters of sanction, as mentioned from time to time.
Particulars of the property charged	Factory and Land and Building situated on land admeasuring 12342.30 sq. meters bearing CTS Nos. 243B, 243/1 to 9 and 243 C as per the plan out of the total land area of 23613 Sq. Mtrs. Covered under indenture by Survey No. 62 and 64 Hissa No. 2,3 and 5 situated at Village Kondivita, Taluka Andheri. (All other property under charge is released from the Charge)

Contingent Liabilities Not Provided For

	(As on 31.03.2008) Rs. in millions
Outstanding Bank Guarantee	31.315
Outstanding Letters of Credit	12.917
Capital contract to be executed not provided (Net of advances)	6.075

Web Details

Profile

Subject, established in 1947 by late Mr. Bhawanidas Binani, is in the manufacturing of Copper and Copper alloy strips. The current product range includes Brass, Phosphor Bronze and Cupro Nickel.

With continous investment in equipment and technology, the company has emerged as a leader in speciality Copper alloys strips. Knowledge coupled with skill and resources has led them to achieve and maintain the position. The superior and high performance products cater to worldwide customers in automotive, electronics, communications, electrical, decorative, ammunition, coinage and other engineering industries.

They believe in 'Quality means clearly understanding the customers' requirement.' Control of essential characteristics at key operations enables them to obtain the desired properties such as malleability, ductility and conductivity. In a nutshell, the excellent quality, competitive prices, short lead period, prompt attention, timely delivery and warm customer service has helped them in establishing lasting partnership with the customers.

Facilities

Subject's production process has helped the company build its reputation as an ingenious industry leader, who produces high quality products, satisfying precise customer requirement.

· Casting

· Cold Rolling

· Annealing and Pickling

· Slitting and Packing

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 records 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.49.12
UK Pound	1	Rs.72.59
Euro	1	Rs.63.52

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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