MIRA INFORM REPORT

Report Date :

08.08.2011

IDENTIFICATION DETAILS

Name :	B. R. METAL AND ALLOYS (GUJ) PRIVATE LIMITED
Registered Office :	F-4, New Madhavpura, Near Police Commissioner Office, Shahibaug, Ahmedabad – 380 004, Gujarat
Country :	India
Financials (as on) :	31.03.2011 (Provisional)
Date of Incorporation :	10.12.1986
Com. Reg. No.:	04-009225
Capital Investment / Paid-up Capital :	Rs. 64.496 millions
CIN No.: [Company Identification No.]	U28999GJ1986PTC009225
Legal Form :	Private Limited Liability Company
Line of Business :	Trader and Importer of Ferrous and Non-ferrous Metals.
No. of Employees :	18 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 1400000
Status :	Good
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. 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.

INFORMATION PARTED BY

Name :	Mr. Gopal chechani
Designation :	Finance Controller
Contact No.:	91-9998039450
Date :	05.08.2011

LOCATIONS

Registered Office :	F-4, New Madhavpura Market, Near Police Commissioner Office, Shahibaug, Ahmedabad – 380 004, Gujarat, India
Tel. No.:	91-79-25633928/25631976
Fax No.:	91-79-25633960
E-Mail :	jethaliya@yahoo.com avimami99@yahoo.com
Area:	4500 sq.ft. (Owned)

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Babuprasad Ramdayal Shah
Designation :	Director
Address :	13, Bhimnath Society, Behind Circuit House, Shahibaug, Ahmedabad – 380004, Gujarat, India
Date of Birth/Age :	30.03.1942
Date of Appointment :	10.12.1986
DIN No :	00762219
Name :	Mr. Kailash Babuprasad Shah
Designation :	Managing Director
Address :	13, Bhimnath Society, Behind Circuit House, Shahibaug, Ahmedabad – 380004, Gujarat, India
Date of Birth/Age :	11.05.1966
Date of Appointment :	10.12.1986
DIN No :	00722503
Name :	Mr. Ghanshyam Babuprasad Shah
Designation :	Director
Address :	13, Bhimnath Society, Behind Circuit House, Shahibaug, Ahmedabad – 380004, Gujarat, India
Date of Birth/Age :	13.11.1969
Date of Appointment :	15.12.1986
DIN No :	00722472

KEY EXECUTIVES

Name :	Mr. Gopal
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Babuprasad Ramdayal Shah	2749975
Kailash Babuprasad Shah	874875
Ghanshyam Babuprasad Shah	805500
Kanchanben Babuprasad Shah	310500
Babuprasad Ramdayal Shah HUF	4500
Manjuben Kailashchandra Shah	258750
Chandaben Ghanshyam Shah	288000
Smit Kailash Shah	86250
Nishant Kailash Shah	86250
Riddhi Ghanshyam Shah	142500
Siddhi Ghanshyam Shah	142500
Adheswar Cotton Industries Limited, India	100000
Amarnath Securities Limited, India	150000
Frontline Financial Services Limited, India	250000
Ranakpur Securities Limited, India	200000
Total	6449600

AS ON 30.09.2010

Category	Percentage
Bodies corporate	10.85
Directors or relatives of Directors	89.15
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader and Importer of Ferrous and Non-ferrous Metals.
Products :	Ferrous and Non-Ferrous Products

GENERAL INFORMATION

No. of Employees :

18 (Approximately)

Bankers :

· UTI Bank Limited, 3^rd Floor, Trishul, Opposite Samartheshwar Temple, Ahmedabad-380006, Gujarat, India

• IDBI Bank Limited, Ahmedabad Branch, IDBI Complex, Opposite Muni Staff Quarters, Near Lal Bunglows, Ahmedabad – 380006, Gujarat, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011 [Provisional]	Rs. In Millions 31.03.2010
IDBI Bank (Secured by way of hypothecation of current assets of the company, equitable mortage of immovable property belonging to the company, associates, directors and their relatives and personal guarantee of Directors, their relatives and associates)	146.846	32.199
IDBI Bank Limited Shot Term Loans (Secured by way of hypothecation of current assets of the company, equitable mortage of immovable property belonging to the company, associates, directors and their relatives and personal guarantee of Directors, their relatives and associates)		20.066
Total	146.846	52.265

Banking Relations :	--
Auditors :
Name :	Gattani and Associates Chartered Accountants
Address :	1003-04, Samundra Annexure, Near Hostel Klassic Gold, C. G. Road, Ahmadabad – 380006, Gujarat, India
Pan No.:	ADKPG8045F
Associates:	BMJ Cables Limited

CAPITAL STRUCTURE

AS ON 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs.10/- each	Rs. 70.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6449600	Equity Shares	Rs.10/- each	Rs. 64.496 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011 [Provisional]	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		64.496	64.496	64.496
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		304.188	298.401	265.949
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		368.684	362.897	330.445
LOAN FUNDS
1] Secured Loans		146.846	52.265	0.159
2] Unsecured Loans		20.275	5.450	4.012
TOTAL BORROWING		167.121	57.715	4.171
DEFERRED TAX LIABILITIES		0.654	0.654	0.250
TOTAL		536.459	421.266	334.866
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.990	10.007	8.906
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	70.588
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	111.885	120.745	53.669
	Sundry Debtors	237.794	203.062	77.695
	Cash & Bank Balances	4.647	5.910	2.758
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	266.000	155.957	146.479
Total Current Assets		620.326	485.674	280.601
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors		29.215	2.855
	Other Current Liabilities	90.857	45.199	22.374
	Provisions		0.000	0.000
Total Current Liabilities		90.857	74.415	25.229
Net Current Assets		529.469	411.259	255.372
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		536.459	421.266	334.866

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011 [Provisional]	31.03.2010	31.03.2009
	SALES
		Income	3143.673	2057.064	1330.909
		Other Income	4.080	9.249	NA
		TOTAL (A)	3147.753	2066.313	NA
Less	EXPENSES
		Purchase	3034.377	2049.390
		Trading Expenses	8.089	7.695	NA
		Administrative Expenses	24.591	19.586
		Increase / (Decrease) in Inventory	8.859	(67.075)
		TOTAL (B)	3075.916	2009.596	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		71.837	56.717	NA
Less	FINANCIAL EXPENSES (D)		15.234	5.775	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		56.603	50.942	25.207
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.817	1.904	0.963
	PROFIT BEFORE TAX (E-F) (G)		54.786	49.038	24.207
Less	TAX (I)		17.000	16.586	8.806
	PRIOR PERIOD ITEMS		0.000	0.000	0.988
	PROFIT AFTER TAX (G-I) (J)		37.786	32.452	16.389
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		298.401	18.449	NA
	BALANCE CARRIED TO THE B/S		336.187	50.901	NA
	IMPORTS VALUE		NA	904.450	254.331
	Earnings Per Share (Rs.)		5.86	5.03	6.33

KEY RATIOS

PARTICULARS		31.03.2011 [Provisional]	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.20	1.57	NA
Net Profit Margin (PBT/Sales)	(%)	1.74	2.38	1.82
Return on Total Assets (PBT/Total Assets}	(%)	8.73	9.89	8.36
Return on Investment (ROI) (PBT/Networth)		0.15	0.13	0.07
Debt Equity Ratio (Total Liability/Networth)		0.70	0.36	0.09
Current Ratio (Current Asset/Current Liability)		6.83	6.53	11.12

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

SOURCES OF FUNDS	31.03.2011 [Provisional]	31.03.2010	31.03.2009
Sundry Creditors
(a) For Goods	NA	28.944	2.715
(b) For Expenses	NA	0.271	0.140
Total	NA	29.215	2.855

FORM 8

Corporate identity number of the company	U28999GJ1986PTC009225
Name of the company	B. R. METAL AND ALLOYS (GUJ) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	F/4 New Madhavpura Market, Near Police Commisioner Office , Shahibaug, Ahmedabad-380004, Gujarat, India
This form is for	Modification of charge
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	IDBI Bank Limited, Ahmadabad Branch, IDBI Complex, Opposite Muni Staff Quarters, Near Lal Bunglows, Ahmadabad – 380006, Gujarat, India
Nature of instrument creating charge	Supplemental deed of hypothecation dated 21/03/2011
Date of instrument Creating the charge	21.03.2011
Amount secured by the charge	Rs. 100.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest @BPLR -1.75% P.A Payable Monthly Terms of repayment On Demand/ Due Date Margin 25% On Stock And 25% On Book Debts Up to 120 Days Extent and operation of the charge First charge on the current assets of the company viz. Stocks and book debts both present and future.
Short particulars of the property charged (Including location of the property)	Primary Security:- First Charge on Current Assets of the Company viz. stocks Book debts both present and future.
Charge identification number of the charge to be modified	10204051
Particulars of the present modification	The bank has agreed to decrease the aggregate limit of the loan / facilities from Rs.150.000 millions to Rs.100.000 millions

FIXED ASSETS:

• Land and Building

- Land

- Office Building

- Godown

· Plant and Machinery

- Machinery

- Refrigerator

- Scale

- Air Conditioner

- Paper Shredar

- Cooler

• Furniture and Fixtures

- Furniture and Fixtures

- Electric Fittings

- Fax

- Fan

- Pager

- Mobile Phone

• Computer
• Motor Care and Scooters

- Corolis

- Tata – 709

- Santro Xing

- BMW

- Scooter

- Honda Accord

- Eicher Truck

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. 44.80
UK Pound	1	Rs. 72.85
Euro	1	Rs. 63.11

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		53

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.