MIRA INFORM REPORT

Report Date :

12.06.2008

IDENTIFICATION DETAILS

Name :	SHREE GANESH METALICS LIMITED

Registered Office :	A1, 2^nd Floor, Commercial Complex, Civil Township, Rourkela, Orissa 769004

Country :	India

Financials (as on) :	31.03.2006

Date of Incorporation :	22.01.2003

Com. Reg. No.:	007040

CIN No.: [Company Identification No.]	U27102OR2003PLC007040

TAN No.: [Tax Deduction & Collection Account No.]	BBNS00700A

PAN No.: [Permanent Account No.]	AAHCS1277R

Legal Form :	Closely held Public Limited Liability Company

Line of Business :	Manufacturer of Sponge Iron

RATING & COMMENTS

MIRA’s Rating :

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

Maximum Credit Limit :	USD 1173000

Status :	Satisfactory

Payment Behaviour :	Usually correct

Litigation :	Clear

Comments :	Mr. Tarini [Manager Administration] confirmed the details in the report. Subject is a well established company having satisfactory track records. Trade relations are fair. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Tarini
Designation :	Manager Administrative
Contact No.:	91-9438426627
Date :	09.06.2008

LOCATIONS

Registered Office :	A1, 2^nd Floor, Commercial Complex, Civil Township, Rourkela, Orissa 769004, India
Tel. No.:	91-661-2400025 / 2514450
Fax No.:	91-661-2400054 / 2514454
Mobile No.:	91-9438426627 / 9437045249
E-Mail :	shreeganeshmeta@rediffmail.com
Area :	2000 Sq. fts.
Location :	Rented

Corporate Office :	265, B. B. Ganguly Street, 1^st Floor, Kolkata 700012, West Bengal, India

Factory :	Located at Kuarmunda, Sunderghad

DIRECTORS

Name :	Mr. Ashok Agarwal
Designation :	Director
Address :	P – 26, Civil Township, Rourkela, Orissa 769004, India
Date of Birth/Age :	05.05.1970
Date of Appointment :	30.06.2003

Name :	Mr. Sandeep Agarwal
Designation :	Director
Address :	C/O. Agarwal Spices and Food Processors Private Limited, Jawalia Patti, Cuttack, Orissa 754009, India
Date of Birth/Age :	14.08.1964

Name :	Mr. Ravi Kumar Agarwal
Designation :	Director
Address :	1/10, , Civil Township, Rourkela, Orissa 769004, India
Date of Birth/Age :	06.10.1967
Date of Appointment :	22.01.2003
Date of Ceasing:	30.06.2003

Name :	Mr. Manoj Kumar Agarwal
Designation :	Director
Address :	1/10, , Civil Township, Rourkela, Orissa 769004, India
Date of Birth/Age :	06.09.1965
Qualification :	B. Com
Date of Appointment :	22.01.2003

Name :	Mr. Laxmichang Agarwal
Designation :	Director
Address :	R-3, , Civil Township, Rourkela, Sundergarh, Orissa 769004, India
Date of Birth/Age :	06.09.1965
Date of Appointment :	30.06.2003

Name :	Mr. Pawan Kumar Agarwal
Designation :	Director
Address :	Uditnagar, Rourkela, Sundergarh, Orissa 769012
Date of Birth/Age :	06.09.1965
Date of Appointment :	30.06.2003

Name :	Mr. Madanlal Agarwal
Designation :	Director
Date of Birth/Age :	53 Years
Qualification:	B.E. Civil

Name :	Mr. Kailash Chandra Agarwal
Designation :	Director
Date of Birth/Age :	47 Years
Qualification:	B.Com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

[As on 30.09.2005]

Names of Shareholders		No. of Shares
Laxmichand Agarwal		16100
Manoj Ku Agarwal		17870
Sandeep Agarwal		33000
Allworth Commodities Private Limited		15000
Anurodh Trading Private Limited		15000
Castrol Credit [Private] Limited		15000
Clarity Mercantile Private Limited		20000
Concert Tradelink [Private] Limited		35000
Deepraj Vinimay [Private] Limited		15000
Dempo Fiscal Services Private Limited		10000
Inchook Tracon Private Limited		60000
Maxxon Impex and Credit [Private] Limited		35000
Klopp Vyapaar [Private] Limited		35000
Mahadhan Finance [Private] Limited		20000
Mahima Credit [Private] Limited		20000
Majestic Dealcomm [Private] Limited		20000
Monika Marketing [Private] Limited		20000
Mrigaya India Limited		20000

Equity Share Break-up [As on 31.03.2006]		Percentage of Holding
Bodies Corporate		5.00
Directors or relatives of the Directors		88.00
Other top fifty shareholders		7.00
Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Sponge Iron

Products :

ITC Code	Product Description
7203.90	Sponge Iron

Exports :

Countries :

Nepal

Terms :

Selling :

L/C, Cheque

Purchasing :

L/C

GENERAL INFORMATION

No. of Employees :	295 [ In Office 45 + In Factory 250]

Bankers :	State Bank of India, Commercial Branch, Bisra Chowk, Rourkela, Orissa 769001, India


Banking Relations :	Satisfactory

Auditors :
Name :	SRB and Associates Chartered Accountants
Address :	5^th Floor, IDCO Tower, Janpath, Bhubaneswar, Orissa 751022

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
2100000	Equity Shares	Rs. 100/- each	Rs. 210.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2027714	Equity Shares	Rs. 100/- each	Rs. 202.771 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		202.771	150.000
2] Share Application Money		0.370	12.211
3] Reserves & Surplus		31.583	8.778
4] (Accumulated Losses)		0.000	0.000
NETWORTH		234.724	170.989
LOAN FUNDS
1] Secured Loans		210.840	174.197
2] Unsecured Loans		0.000	6.452
TOTAL BORROWING		210.840	180.649
DEFERRED TAX LIABILITIES		34.102	23.557

TOTAL		479.666	375.195

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		311.355	255.076
Capital work-in-progress		0.000	32.869

INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	105.599	44.652
	Sundry Debtors	79.157	34.692
	Cash & Bank Balances	9.989	4.846
	Other Current Assets	3.033	1.573
	Loans & Advances	36.899	36.154
Total Current Assets		234.677	121.917
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	60.949	31.950
	Provisions	5.680	2.750
Total Current Liabilities		66.629	34.700
Net Current Assets		168.048	87.217

MISCELLANEOUS EXPENSES		0.023	0.033

Share issue Expenses		0.240	0.000

TOTAL		479.666	375.195

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005
Sales Turnover		428.706	344.216
Other Income		0.652	0.177
Total Income		429.358	344.393

Profit/(Loss) Before Tax		36.280	34.586
Provision for Taxation		13.475	26.307
Profit/(Loss) After Tax		22.805	8.279

Expenditures :
	Raw Material Consumed	225.796	210.334
	Consumption of stores and spares parts	8.160	6.762
	Increase/(Decrease) in Finished Goods	[0.968]	[11.390]
	Salaries, wages and bonus	6.526	3.340
	Payment to Auditors	0.242	0.198
	Interest	22.998	14.527
	Insurance Expenses	0.698	0.407
	Power & Fuel	30.915	18.150
	Depreciation & Amortization	15.644	8.592
	Other Expenditure	83.067	58.887
Total Expenditure		393.078	309.807

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005
PAT / Total Income	(%)	5.31	2.40

Net Profit Margin (PBT/Sales)	(%)	8.46	10.05

Return on Total Assets (PBT/Total Assets}	(%)	6.65	9.17

Return on Investment (ROI) (PBT/Networth)		0.15	0.20

Debt Equity Ratio (Total Liability/Networth)		1.18	1.26

Current Ratio (Current Asset/Current Liability)		3.52	3.51

LOCAL AGENCY FURTHER INFORMATION

Note:

The Registered office of the company has been shifted from Shree Complex, Udit Nagar, Rourkela, Sundergarh, Orissa 769012, India to A1, 2^nd Floor, Commercial Complex, Civil Township, Rourkela, Orissa 769004, India w.e.f. 16.07.2007.

Trade References:

S. R. Multimetal Private Limited, Gujarat
Amrit Steel
Avadh Alloys Private Limited

Form 8

Bankers Charges Report as per Registry

Name of the company

SHREE GANESH METALICS LIMITED

Presented By

State Bank of India, Commercial Branch, Bisra Chowk, Rourkela, Orissa 769001, India

And

Mr. Manoj Kumar Agarwal

1) Date and description of instrument creating the change

Agreement for hypothecation of goods and assets for Rs. 187.000 Millions dated 22.12.2003

Arrangement letter no. Cr/7/547 dated 22.12.2003

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

Cash Credit Rs. 37.000 Millions

Term Loan Rs. 150.000 Millions

Total Rs. 187.000 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

I] hypothecation of stocks of raw material, semi finished goods, book debts and other current assets both present and future

Ii] first charge by way of hypothecation of plant and machinery, fixed assets

Iii] Equitable mortgage of factory land as stated below :

Land in the name of the company
Mouza	Khata No.	Plot No.	Area
Chadri, Hariharpur	30/2	i. 112/1 ii. 114	A 0.81 Decs. A.1.19 Decs.
	3	i. 115 ii. 116 iii. 116/165	A.3.51 Decs. A.10.42 Decs. A. 4.30 Decs.
	33	i. 35 ii. 36	A. 0.13 Decs. A. 1.64 Decs.
Total			A.22.00 Decs.

Land in the name of the company
	Khata No.	Plot No.	Area
Rugudihi, Guali,	66/34	586/649	Ac. 2.00 Decs. .
Total			Ac. 2.00 Decs.

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

As per sanction letter no. Cr/7/547 dated 22.12.2003

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

State Bank of India, Commercial Branch, Bisra Chowk, Rourkela, Orissa 769001, India

6) Date and brief description of instrument modifying the charge

Form No. C10, Memorandum of deposit of title deeds for creation of the further charge for overall limit for Rs. 253.500 Millions dated 09.08.2005 in respect of following property

Land in the name of the company
Mouza	Khata No.	Plot No.	Area
Chadri, Hariharpur	30/2	iii. 112/1 iv. 114	A 0.81 Decs. A.1.19 Decs.
	3	iv. 115 v. 116 vi. 116/165	A.3.51 Decs. A.10.42 Decs. A. 4.30 Decs.
	33	iii. 35 iv. 36	A. 0.13 Decs. A. 1.64 Decs.
Total			A.22.00 Decs.

Land in the name of the company
Mouza	Khata No.	Plot No.	Area
Rugudihi, Guali,	66/34	586/649	Ac. 2.00 Decs.
Total			Ac. 2.00 Decs.

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.

As per the term and conditions mentioned in the arrangement letter as under:

Cr/7/547 dated 22.12.2003 of SBI, CB, Rourkela

Cr/9/133 dated 27.07.2005 of SBI, CB, Rourkela

First charge by way of equitable mortgage of land and building and pledge of entire plant and machinery of the company for the term loans.
Hypothecation of company’s entire stocks, book debts and other current assets for the working capital loan.
Extension of charge over the plant and machinery of the crusher unit of the company for the working capital loan.
Extension of charge over all securities taken as primary security for the term loan for working capital loan.
Extension of charge over the primary security of fund based working capital limits for the term loan.

Rate of interest for demand cash credit will be 2% above SBAR rising and failing therewith the present effective rate being 12.25% p.a. at the monthly rest. Rate of interest for the stand by line of credit will be 1% more than the demand cash credit interest rate.

This form is for

Modification of charge

Charge identification number of the charge to be modified

10023721

Corporate identity number of the company

U27102OR2003PLC007040

Name of the company

SHREE GANESH METALICS LIMITED

Address of the registered office or of the principal place of business in India of the company

A1, 2^nd Floor, Commercial Complex, Civil Township, Rourkela, Orissa 769004, India

Type of charge

Immovable property
Book debts
Others

Particular of charge holder

State Bank of India

Commercial Branch, Bisra Chowk, Rourkela, Orissa 769001, India

Nature of description of the instrument creating or modifying the charge

CR/11/852 : Sanction of credit facilities

FORM C-5 : Letter regarding the grant of individual limits within the overall limit

FORM C1-A : Supplemental agreement of loan for increase in the overall limit.

FORM C2-A : Supplemental agreement of hypothecation of goods and assets for increase in the overall limit.

FORM C4-A: Supplemental deed of guarantee for increase in overall limit.

FORM C10 : Extension of mortgage

Date of instrument Creating the charge

19.03.2008

Amount secured by the charge

Rs. 597.200 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

[a] Rate of interest

As per Form C-5 letter regarding the grant of individual limits within the overall limit.

[b] Terms of repayment

As per form C-5 letter regarding the grant of individual limits within the overall limit.

[c] Margin

Cash Credit

Raw Materials stock in process, finished goods and stores and spares 25%

Book Debts / Receivables 40%

Term Loan : 30.56%

Letter of Credit/Bank Guarantee 20%

[d] Extent and operation of the charge

As per Form C-5, Sanction of credit facilities

Short particulars of the property charged

Sanction of credit facilities

Date of latest modification

10.10.2006

Particulars of the present modification

Limits [FB]	Existing	New
WCCC	8.00	11.30
DDP/Clean	0.00	2.50
SLC	1.80	2.40
T Loan – I	7.00	7.00
T Loan – II	0.00	30.00
Corp. Loan	1.52	1.52
Total FBL	18.32	54.72
LC	2.60	3.60
BG	1.40	1.40

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. 42.89
UK Pound	1	Rs. 83.80
Euro	1	Rs. 66.45

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	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	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		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	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

MIRA INFORM REPORT

Unit