MIRA INFORM REPORT

Report Date :

05.12.2011

IDENTIFICATION DETAILS

Name :	KOTHARI METALS LIMITED

Registered Office :	Kothari Mansion, Ground Floor, 20/1, Belvedere Road, Kolkata - 700027, West Bengal

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	06.06.1977

Com. Reg. No.:	21 – 31033

Capital Investment / Paid-up Capital :	Rs. 27.597 Millions

CIN No.: [Company Identification No.]	U28113WB1977PTC031033

TAN No.: [Tax Deduction & Collection Account No.]	CALK01203G

Legal Form :	A Closely held Public Limited Liability Company

Line of Business :	Importer and Supplier of Non – Ferrous Metal and Ferro Alloys.

No. of Employees :	47 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 2290000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track. Trade relations are 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.

ECGC Country Risk Classification List – September 30, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office/ Head Office :	Kothari Mansion, Ground Floor, 20/1, Belvedere Road, Kolkata - 700027, West Bengal, India
Tel. No.:	91-33-24566921/ 22 / 40220700 (30 lines) / 22828532/ 22828534/ 22827949/ 22823808
Mobile No.:	91-9830106557/ 9830241394/ 9331012753
Fax No.:	91-33-24566923 / 22828462
E-Mail :	headoffice@kotharimetals.in vikashji@cal2vsnl.net.in mumbai@kotharimetals.in gurgaon@kotharimetals.in delhi@kotharimetals.in chennai@kotharimetals.in
Website :	http://www.kotharimetal.com
Area :	1200 Sq. ft
Location :	Owned

Ware House :	9, Transport Depot Road, Kolkata – 700 088, West Bengal, India
Area :	5000 Sq. ft. (Owned)
Location :	Industrial

Branch Office 1 :	S.C.O. No. F-81, Sector - 22, At Palam Vihar Road, Gurgaon – 122 001 Haryana, India
Tel. No.:	91-124-4010524 / 4010526 / 3296660
Mobile No.:	91-9350557254
Fax No.:	91-124-4010525
Area :	20000 Sq. ft.
Location :	Leased

Branch Office 2:	Shed No. S-8A, Telco Industrial Estate, Madhavaram, Chennai – 600 060, Tamilnadu, India
Tel. No.:	91-44-25590200 / 2559021
Fax No.:	91-44-25233129
Area :	18000 Sq. ft.
Location :	Leased

Branch Office 3:	1252, Pushpanjali apartment, 6th Floor, Suite no.602, Old Prabhadevi Road, Prabhadevi. Mumbai – 400 025, Maharashtra, India
Tel. No.:	91-22-24371957 / 24313104
Mobile No.:	91-9322260696
Fax No.:	91-22-66669302
Area :	16000 Sq. ft.
Location :	Leased

Branch Office 4 :	B 6/7, Okhla Industrial Area, Phase –II, New Delhi – 110 020, India
Tel. No.:	91-11-41707897 / 32564679 / 40502991 / 40502992
Mobile No.:	91-9810064679
Fax No.:	91-11-41001530
Area :	20000 Sq. ft.
Location :	Leased

Branch Office 5 :	Khasra No. 290, Chhaattarpur, (Dhanmill Compound) Opp. Dena Bank, New Delhi – 110 030, India
Tel. No.:	91-11-31029839

Branch Office 6 :	G. T. Road, Focal Point, Ludhiana -141 010, Punjab
Tel. No.:	91-161-2510240 / 3265196
Fax No.:	91-161-2510241
E-Mail :	ludhiana@kotharimetals.in

Branch Office 7 :	Plot No. 181, Sub Plot No. 20 & 21, Near Bhamaria Kunwa, Narol Aslali Highwa, NIDC, NAROL, Ahmedabad -382405
Tel. No.:	91-79-32408211
Fax No.:	91-79-25734378
E-Mail :	ahmedabad@kotharimetals.com

Branch Office 8 :	No. B-315, 9th Cross , 1st Stage, Peenya Industrial Area, Bengaluru - 560 058, Karnataka, India
Tel. No.:	91-80-32503777
E-Mail :	Bangalore@kotharimetals.com

Branch Office :	Located At v Bhiwadi v Jamshedpur v Raipur v Haridwar

DIRECTORS

As on 28.09.2011

Name :

Mr. Ranjit Singh Kothari

Designation :

Director

Address :

3, Alipore Road, Kolkata – 700 017, West Bengal

Date of Birth/Age :

07.10.1950

Qualification :

B. Com.

Date of Appointment :

06.06.1977

DIN No.:

00217182

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U28113WB1977PLC031033	Kothari Metals Limited	Director	06-06-77	06-06-77	-	Active	NO
2	U27109WB1986PTC041029	Kothari Metal Resourses Private Limited	Director	30-07-86	30-07-86	-	Active	NO
3	U70101WB1989PTC046918	Kothari Magnesium Industries Private Limited	Director	15-07-99	15-07-99	-	Active	NO
4	U70101WB2005PTC104368	B.K. Nirman Private Limited	Director	19-09-05	19-09-05	-	Active	NO

Name :

Mr. Vikash Kothari

Designation :

Director

Address :

3, Alipore Road, Kolkata – 700 027, West Bengal

Date of Birth/Age :

11.12.1973

Qualification :

M.Sc.

Date of Appointment :

28.09.1994

DIN No.:

00217327

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U28113WB1977PLC031033	Kothari Metals Limited	Director	28-09-94	28-09-94	-	Active	NO
2	U27109WB1986PTC041029	Kothari Metal Resourses Private Limited	Director	02-01-96	02-01-96	-	Active	NO
3	U70101WB2005PTC104368	B.K.Nirman Private Limited	Director	26-07-05	26-07-05	-	Active	NO
4	U70101WB1989PTC046918	Kothari Magnesium Industries Private Limited	Director	14-03-06	14-03-06	-	Active	NO
5	U70101WB1991PTC053034	Calcutta Multimax Private Limited	Additional director	19-08-08	19-08-08	-	Active	NO
6	U51909WB2006PTC112094	Agrasen Enterprises Private Limited	Director	02-01-09	02-01-09	-	Amalgamated	NO
7	U51109WB2007PTC112370	Fasten Tradecom Private Limited	Director	02-01-09	02-01-09	-	Amalgamated	NO

Name :

Mrs. Shalini Kothari

Designation :

Director

Address :

3, Alipore Road, Kolkata – 700 027, West Bengal

Date of Birth/Age :

27.08.1975

Qualification :

B.Com

Date of Appointment :

14.03.2006

DIN No.:

00217697

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2011

Names of Shareholders		No. of Shares
Ranjit Singh Kothari		620296
Kothari Devi Sayar		85010
Kothari Metal Resources Private Limited, West Bengal, India		162866
Vikash Kothari		125597
Calcutta Multimax Private Limited, West Bengal, India		274742
Kothari \ Surana Hansraj [shalini and Pragati]		3500
Ranjit Singh Kothari Vikash		17500
Kothari Devi Sayar Vikash		4010
Kothari Vikash		145500
Ranjit Singh Kothari		151100
Ranjit Singh Kothari sayar devi		170000
Kothari Shalini and vikash		40000
Ranjit Singh Kothari (HUF)		176566
Vikash Kothari (HUF)		39500
Surana Pragati		54000
Kothari Magnesium Industries Private Limited, West Bengal, India		340800
Kothari Commercial Corporation, West Bengal, India		98676
Kothari Unnati		40000
Kothari Vikash and shalini		5000
Kothari devi sayar and Shalini		5000
Kothari shalini		200000
TOTAL		2759663

Equity Share Break up (Percentage of Total Equity)

As on 28.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Importer and Supplier of Non – Ferrous Metal and Ferro Alloys.

Products :	Manganese Metal Silicon Metal Magnesium Metal Antimony Metal Bismuth Metal Pure Nickel Copper Tin Ingot Ferro Molly Ferro Silicon Ferro Silico Magnesium Misch Metal Calcium Silicide Chromium

GENERAL INFORMATION

Customers :

Aluminium Industries/ Foundries
Stainless Steel and Alloy Steel Industries

No. of Employees :

47 (Approximately)

Bankers :

Bank of India, Kolkata MID Corporate Branch, 5, B.T.M. Sarani, Kolkata – 700001, West Bengal, India
Andhra Bank
Oriental Bank of Commerce
State Bank of Saurashtra

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Secured loan from bank – Buyers credit*	81.137	0.000
Total	81.137	0.000
Note : Buyers credit secured against hypothecation of stock and book debts and repayable within 1 year

Banking Relations :	--

Auditors :
Name :	S. M. Daga and Company Chartered Accountant
Address :	11, Clive Row, 2^nd Floor, Kolkata- 700001
PAN.:	AATFS3134N

Related Parties :	v Calcutta Multimax Private Limited Address: 7/1, lord Sinha Road, Kolkata- 700071 Line of Business: Trading v Kothari Commercial Corporation Address: 7/1, lord Sinha Road, Kolkata- 700071 Line of Business: Trading v Kothari Metal Resources Private Limited Address: 7/1, lord Sinha Road, Kolkata- 700071 Line of Business: Metal and Alloys v Kothari Magnesium Industries Private Limited v B.K. Nirman Private Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
56000000	Equity Shares	Rs.10/- each	Rs. 56.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2759663	Equity Shares	Rs.10/- each	Rs. 27.597 millions

Out of the above 248793 equity shares were issued as fully paid up pursuant to a contract without payment being received in cash.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		27.597	27.597	26.026
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		546.747	478.543	284.482
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		574.344	506.140	310.508
LOAN FUNDS
1] Secured Loans		81.137	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		81.137	0.000	0.000
DEFERRED TAX LIABILITIES		5.851	4.684	2.514

TOTAL		661.332	510.824	313.022

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		91.878	72.315	61.155
Capital work-in-progress		0.000	0.000	0.880

INVESTMENT		0.908	5.808	0.816
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	160.957	108.621	155.812
	Sundry Debtors	663.707	324.889	618.087
	Cash & Bank Balances	158.660	151.978	215.542
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	194.726	144.939	110.716
Total Current Assets		1178.050	730.427	1100.157
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	477.954	204.752	750.967
	Other Current Liabilities	17.450	13.725	24.119
	Provisions	114.100	79.249	74.900
Total Current Liabilities		609.504	297.726	849.986
Net Current Assets		568.546	432.701	250.171

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		661.332	510.824	313.022

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	4050.966	3892.659	5348.070
		Other Income	23.182	27.775	24.240
		TOTAL	4074.148	3920.434	5372.310

Less	EXPENSES
		Cost of goods sold	3863.505	3804.930	5141.251
		Administrative and general Expenses	98.831	59.589	77.858
		TOTAL	3962.336	3864.519	5219.109

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		111.812	55.915	153.201

Less/ Add	DEPRECIATION/ AMORTISATION		3.087	1.752	1.580

	PROFIT BEFORE TAX		108.725	54.163	151.621

Less	TAX		40.219	20.443	57.093

	PROFIT AFTER TAX		68.506	33.720	94.528

Less	Taxation For earlier year		(0.015)	0.092	0.244

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		186.207	152.679	58.495

Less	APPROPRIATIONS
		Transfer to General Reserve	0.100	0.100	0.100
	BALANCE CARRIED TO THE B/S		254.628	186.207	152.679

	IMPORTS		3093.596	3162.748	4399.067

	Earnings Per Share (Rs.)
	Basic		24.82	12.96	36.32
	Diluted		24.82	12.22	36.32

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.68	0.86	1.76

Net Profit Margin (PBT/Sales)	(%)	2.68	1.39	2.84

Return on Total Assets (PBT/Total Assets}	(%)	8.56	6.75	13.06

Return on Investment (ROI) (PBT/Networth)		0.19	0.11	0.49

Debt Equity Ratio (Total Liability/Networth)		1.20	0.59	2.74

Current Ratio (Current Asset/Current Liability)		1.93	2.45	1.29

LOCAL AGENCY FURTHER INFORMATION

Note: Registered office address of the company has been shifted from 7/1, Lord Sinha Road, Kolkata – 700071, West Bengal, India to the present address w.e.f. 27.02.2009

CONTINGENT LIABILITIES

Particulars	2009 – 2010 (Rs in Millions)	2008-2009 (Rs. in Millions)
Bank Guarantee	3.075	1.331
Sales Tax (Pending appear)	14.261	8.592
Call Money payable in respect of Investment	0.000	12.125

FORM 8

Corporate identity number of the company	U28113WB1977PLC031033
Name of the company	KOTHARI METALS LIMITED
Address of the registered office or of the principal place of business in India of the company	Kothari Mansion, Ground Floor, 20/1, Belvedere Road, Kolkata - 700027, West Bengal, India Email : vikashji@cal2vsnl.net.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10050100
Type of charge	Book Debts Movable Property (not being pledge)
Particular of charge holder	Bank of India, Kolkata MID Corporate Branch, 5, B.T.M. Sarani, Kolkata – 700001, West Bengal, India Email : MCB.Kolkata@bankofindia.co.in
Nature of instrument creating charge	Supplemental deed of hypothecation of tangible movable property Supplemental deed of charge and hypothecation of book debts
Date of instrument Creating the charge	06.09.2011
Amount secured by the charge	Rs. 240.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest : Commission 50% of applicable charges + S.T. Terms of Repayment: On Demand Margin: Letter of credit (F) DP/DA- 90 Days 10% Extent and operation of charge: First charge on all the company’s tangible movable property including all stocks, book debts, stock and trade etc.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First charge on all the company’s tangible movable property including all stocks, book debts, stock in trade etc.
Date of instrument modifying the charge	03.03.2011
Particulars of the present modification	By this modification, overall limit has been decreased revised / realigned from Rs. 249.000 Millions. The details of credit facility are as under : Facilities Amount Non Fund Based Latter of Credit (F) DP/DA- 90 Days Rs. 240.000 Millions Credit Exposure for forward contract Rs. 4.000 Millions Aggregate limit Rs. 240.000 Millions

FIXED ASSETS:

Leasehold Land
Land and Building
Plant and Machinery
Computer
Electric Installation
Office Equipments
Furniture and Fixture
Vehicles
Air Conditioner
Typewriter
ERP Software License

WEBSITES DETAILS

Since its inception in 1977, Subject has steadily emerged as a leading leader in the import and supply of non-ferrous metals. Over the years, the Group has consistently given thrust in key areas of growth within the economy.

With a paid up capital of Rs.26.000 Million and reserves of Rs.284.000 Million as on date, the company has been able to achieve a turnover of Rs.5916.000 Million as on 31.03.2011. The main business of Subject is import and trading of products like Silicon Metal, Magnesium Metal, Manganese Metal, Pure Nickel, Ferro Molly, Ferro Silicon,L/C Ferro Chrome, Antimony Metal, Calcium Silicide, Copper, Bismuth, Ferro Silico magnesium, Chromium and Misch Metal etc. Subject has also established offices in Mumbai, Gurgaon ,New Delhi, Ludhiana, Bhiwadi, Chennai, Bangalore, Haridwar, Ahmedabad, Raipur and Jamshedpur.

Subject will continue to play a leading role in the economic well being of India, providing momentum, direction and support wherever the need arises, throwing up thousands of employment opportunities and providing a spurt in the industrial and economic growth of the entire nation.

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.51.35
UK Pound	1	Rs.80.51
Euro	1	Rs.69.14

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	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.

MIRA INFORM REPORT

160.957

663.707

158.660

194.726

1178.050

477.954

17.450

114.100

609.504

568.546

1.68

2.68

8.56

0.19

1.20

1.93

Unit