MIRA INFORM REPORT

Report Date :

19.12.2011

IDENTIFICATION DETAILS

Name :	S G STRIPS LIMITED
Registered Office :	178, Mahatma Gandhi Road, Kolkata – 700 007, West Bengal
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.06.1994
Com. Reg. No.:	21-52024
Capital Investment / Paid-up Capital :	Rs.26.898 millions
CIN No.: [Company Identification No.]	U27109WB1994PLC052024
TAN No.: [Tax Deduction & Collection Account No.]	CALS16898A
PAN No.: [Permanent Account No.]	AADCS8378R
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Importer and Exporter of all kinds of Iron and Steel Products, Rolling mill products alloy steel and cast iron products, brass aluminium and other metal products etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (32)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 510000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with slight caution.

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	A1	A1

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

LOCATIONS

Registered Office :	178, Mahatma Gandhi Road, Kolkata – 700 007, West Bengal, India
Tel. No.:	91-33-22111484 / 22105797 / 98
Fax No.:	91-33-22480366 / 0357
E-Mail :	sgstrips@hotmail.com
Head Office :	8, Bentinck Street, Taher Mansion, Kolkata – 700 001, West Bengal, India

DIRECTORS

As on 30.09.2011

Name :

Mr. Sanjay Banthia

Designation :

Director

Address :

3A, Notore Park, 2^nd Lane, Kolkata – 700 019, West Bengal, India

Date of Birth/Age :

14.06.1961

Date of Appointment :

31.10.1994

DIN No.:

02277125

Name :

Mr. Ramendranath Mondal

Designation :

Director

Address :

Part No. 71, Uttar Dum Dum North 24, Parganas Kolkata – 700 051, West Bengal, India

Date of Birth/Age :

15.03.1974

Date of Appointment :

14.11.2009

Election Commission Identity Card No.:

WB/20/138/210476

DIN No.:

00584707

Name :

Mr. Kailash Chandra Kedia

Designation :

Additional Director

Address :

Prantik-4, Thakur Nitya Gopal Road, P. O. Panihati, Kolkata – 700 114, West Bengal, India

Date of Birth/Age :

18.07.1949

Date of Appointment :

25.11.2011

DIN No.:

05132546

Name :

Mr. Kailash Sharma

Designation :

Director

Address :

29 M G, 24 Parganas (N), Titagarh – 700 119, West Bengal, India

Date of Birth/Age :

01.08.1965

Date of Appointment :

14.11.2009

Date of Ceasing :

29.11.2011

Election Commission Identity Card No.:

WB/19/133/339428

DIN No.:

02621305

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	U27109WB1988PLC044545	Tif (Castings) Limited	Director	30-05-00	30-05-00	-	Active	NO
2	U27109WB1994PLC052024	S G Strips Limited	Additional director	14-11-09	14-11-09	29-11-11	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Kailash Chand Saraf	25470
Taj Vincom Private Limited, India	50000
Way Link Suppliers Private Limited, India	50000
Virat Marketing Private Limited, India	50000
Baba Basuki Distributors Private Limited, India	150000
Vision Pracon Private Limited, India	100000
Pacific Management Private Limited, India	100000
Lonenier Marketing Private Limited, India	100000
Lords Tie Up Private Limited, India	100000
Ace Flora Tech Limited, India	120000
Eurolink Exports Limited, India	138000
Foresight Investors and Consultants Private Limited, India	94000
Chitrakoot Vintrade Private Limited, India	100000
Mansamata Tradelink Private Limited, India	100000
Alishan Exports Private Limited, India	100000
CRM System Private Limited, India	200000
Joyprit Plastic Dealers Private Limited, India	200000
Subhdrishti Complex Private Limited, India	200000

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	96.00
Directors or relatives of directors	0.06
Other top fifty shareholders	3.94
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Importer and Exporter of all kinds of Iron and Steel Products, Rolling mill products alloy steel and cast iron products, brass aluminium and other metal products etc.

Products :

Product Description	ITC Code
Iron and Steel Goods	732599.09

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Allahabad Bank

Kolkata Main Branch, 14, India Exchange Place, Kolkata – 700 001, West Bengal, India

Facilities :

Secured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
From Allahabad Bank in Cash credit Account (Secured against hypothecation of Stocks, Investment, Book debts, Plant and Machineries, Receivables	243.728	147.678
Term Loan (From Allahabad Bank Secured against hypothecation Factory Shed and Building and Plant and machineries)	0.513	2.028
Total	244.241	149.706

Unsecured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
From Others	0.228	0.222
Total	0.228	0.222

Banking Relations :	--
Auditors :
Name :	D N Gupta and Associates Chartered Accountants
Address :	10, Ganesh Chandra Avenue, 5^th Floor, Suit No. 32, Kolkata – 700 013, West Bengal, India
PAN No.:	ADLPG2924M

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2689840	Equity Shares	Rs.10/- each	Rs.26.898 millions

(Includes 86420 Equity Shares issued for other than 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		26.898	19.898	17.898
2] Share Application Money		15.000	7.000	9.003
3] Reserves & Surplus		84.775	55.980	47.988
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		126.673	82.878	74.889
LOAN FUNDS
1] Secured Loans		244.241	149.706	114.366
2] Unsecured Loans		0.228	0.222	0.412
TOTAL BORROWING		244.469	149.928	114.778
DEFERRED TAX LIABILITIES		2.733	3.004	3.314
TOTAL		373.875	235.810	192.981
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		20.473	23.627	26.965
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.406	0.405	0.405
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	376.981	165.473	133.632
	Sundry Debtors	44.102	84.774	81.336
	Cash & Bank Balances	4.148	1.630	0.965
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	10.712	3.805	4.323
Total Current Assets		435.943	255.682	220.256
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	42.469	41.240	47.059
	Other Current Liabilities	39.825	1.983	4.867
	Provisions	0.713	0.711	2.759
Total Current Liabilities		83.007	43.934	54.685
Net Current Assets		352.936	211.748	165.571
MISCELLANEOUS EXPENSES		0.060	0.030	0.040
TOTAL		373.875	235.810	192.981

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Net Sales	3531.940	1612.537	527.536
		Other Income	0.089	0.350	0.071
		TOTAL (A)	3532.029	1612.887	527.607
Less	EXPENSES
		Cost of Goods Sold	3480.398	1561.331	483.425
		Manufacturing and Other Expenses	24.477	24.424	20.315
		Administrative Expenses	2.917	2.783	2.667
		Preliminary Expenses W/off	0.020	0.010	0.010
		TOTAL (B)	3507.812	1588.548	506.417
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		24.217	24.339	21.190
Less	INTEREST D)		19.746	19.537	14.394
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.471	4.802	6.796
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.125	3.591	4.009
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		1.346	1.211	2.787
Less	TAX (H)		0.792	1.497	1.102
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		0.554	(0.286)	1.685
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		14.592	14.568	12.659
Less	APPROPRIATIONS
		Deferred Tax (Net)	(0.271)	(0.310)	(0.224)
	BALANCE CARRIED TO THE B/S		15.417	14.592	14.568
	Earnings Per Share (Rs.)		0.21	(0.14)	0.94

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.02	(0.02)	0.32
Net Profit Margin (PBT/Sales)	(%)	0.04	0.08	0.53
Return on Total Assets (PBT/Total Assets}	(%)	0.29	0.43	1.13
Return on Investment (ROI) (PBT/Networth)		0.01	0.01	0.04
Debt Equity Ratio (Total Liability/Networth)		2.59	2.34	2.26
Current Ratio (Current Asset/Current Liability)		5.25	5.82	4.03

LOCAL AGENCY FURTHER INFORMATION

CONTINGENT LIABILITY (As on 31.03.2010)

There is a liability of contingent nature for Corporate Guarantee given by the Company in favour of Banks amounting to Rs. NIL.

FORM 8

Corporate identity number of the company	U27109WB1994PLC052024
Name of the company	S G STRIPS LIMITED
Address of the registered office or of the principal place of business in India of the company	178, Mahatma Gandhi Road, Kolkata – 700 007, West Bengal, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90251812
Type of charge	· Immovable property · Book debts · Movable property (not being pledge) · Others o Stock, P and M and Other Fixed and Current Assets
Particular of charge holder	Allahabad Bank Kolkata Main Branch, 14, India Exchange Place, Kolkata – 700 001, West Bengal, India E-mail : albcalm@vsnl.net.in
Nature of instrument creating charge	General Letter of Hypothecation Supplemental Letter of Mortgagor Confirming Deposit of Title Deeds through constructive delivery
Date of instrument Creating the charge	25.01.2010
Amount secured by the charge	Rs.281.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest and other charges will be paid as per terms of Sanction Letter of bank - presently for CC - 1% below @PLR i.e. 11.00%, TL-@PLR i.e. 12% p.a.w.m.r, however the same is subject to change. Terms of Repayment The Working Capital (Rs.280.000 millions) shall be repayable on demand and Rs.1.000 million by way of Term Loan shall be repaid as per existing terms and conditions. Margin The borrower shall maintain appropriate margin as stipulated in the sanction terms, however the same is subject to change from time to time. Presently Cash Credit - 25% on Paid Stock and Book-debts up to 90 days Letter of Credit - 10% by Cash/ FDR Extent and Operation of the charge The security created under said hypothecation/Mortgage shall operate as continuing security and by way of first charge. The charged assets property be kept at the Company risk and expense in good condition and fully insured against loss or damage by fire, lighting or explosion or theft and also against loss or damage by riot and civil commotion etc. as may be required by the Bank in the joint names of the Bank and the Company. Others The Company hereby declares that all the charged property now existing are absolute property of and at the sole disposal of the Company and free from any prior charge or encumbrance and undertakes that all future property shall like wise be the unencumbered and absolute and disposable property of the Company. Other terms and conditions are as per terms and conditions of above referred hypothecation/mortgage agreement and Sanction Letter of the banks.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	The Co. hereby hypo and charges by way of pari passu 1st charge over a) all stocks of RM, WIP, FG, such as Crusted Irons etc and also stores and spares and other current assets b) all book-debts and other receivables c) All the Fixed Assets of the Co. whether movable / immovable such as P and M, Equipments, motor lorries , cars etc now being and lying at factory or any where else both present and future Further the company created EMTD over d) Land measuring 2 Bighas 4 Cottahs 2 Chitaks and 30 Sq. Ft. more or less together with structure and boundary walls situated at Mouza - Liluah , Thana - Liluah , Sub Registry Office - Howrah in the District - Howrah, Municipal Holding No. 58/1 , Netaji Subhas Road (Formerly Ghoshala Road) Liluah .
Particulars of the present modification	By present modification the overall limit has been enhanced from Rs.177.500 millions to Rs.281.000 millions. The revised credit facilities are as follows:- Cash Credit Rs.250.000 millions Letter of Credit Rs.30.000 millions TL Rs.1.000 million Other terms and condition save as modified above remain unchanged.

FIXED ASSETS

· Tubewell

· Factory Shed and Building

· Plant and Machinery

· Electrical Equipment

· Laboratory Equipments

· Furnace

· Motor Car

· Furniture and Fixture

· Office Equipment

· Cycle

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.52.81
UK Pound	1	Rs.82.00
Euro	1	Rs.68.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		32

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.