MIRA INFORM REPORT

Report Date :

30.12.2011

IDENTIFICATION DETAILS

Name :	QUALITY FOILS (INDIA) PRIVATE LIMITED
Registered Office :	3 Industrial Development Colony, Hisar – 125 005, Haryana
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	08.05.1990
Com. Reg. No.:	05-030929
Capital Investment / Paid-up Capital :	Rs.13.600 Millions
CIN No.: [Company Identification No.]	U27107hr1990ptc030929
Legal Form :	Private Limited Liability Company
Line of Business :	manufacturers of Cold Rolled Stainless Steel Coils
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 440000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established 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.

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 :	3 Industrial Development Colony, Hisar – 125 005, Haryana, India
Tel. No.:	91-1662-220327 / 220328/220329
Fax No.:	91-1662-220330
E-Mail :	contactus@qualityfoils.com go_kukreja@rediffmail.com
Website :	www.qualityfoils.com
Branches :	R -32, 1^st Floor, South Extn., - II, New Delhi – 110 049, India
Tel. No.:	91-11-26254767/26258086
Fax No.:	91-11-26252633

DIRECTORS

As on 28.09.2011

Name :

Mr. Kudip Bhargava

Designation :

Director

Address :

Anand Bhavan Opposite Jat College Hisar – 125 001, Haryana, India

Date of Birth/Age :

22.04.1953

Date of Appointment :

08.05.1990

DIN No.:

00011103

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	U27107HR1990PTC030929	Quality Foils (India) Private Limited	Director	08-05-90	08-05-90	-	Active	NO
2	U36911HR1990PTC030969	Argentum Fashions Private Limited	Director	11-06-90	11-06-90	31-08-11	Active	NO
3	U27108HR1999PTC034387	Quality Stainless Private Limited	Director	01-12-99	01-12-99	-	Active	NO
4	L72900MH2000PLC124729	Orbit Corporation Limited	Director	29-09-06	16-02-06	-	Active	NO
5	U24291MH1953PLC139290	Satellite Developers Limited	Director	27-10-06	27-10-06	-	Active	NO
6	L27104UP1984PLC023979	Jindal Saw Limited	Director	13-02-07	13-02-07	-	Active	NO
7	U45400MH2007PTC176925	Orbit Highcity Private Limited	Director	07-08-08	26-02-08	-	Active	NO
8	U45202MH2008PTC177268	Ahinsa Buildtech Private Limited	Director	14-09-09	31-01-09	-	Active	NO
9	U45200MH2004PTC149147	Orbit Residency Private Limited	Director	14-09-09	31-01-09	-	Active	NO
10	U45400MH2007PTC172286	Anaya Infrastructure Private Limited	Additional director	29-05-10	29-05-10	18-06-10	Active	NO
11	U51101UP2010PLC042382	Hexa Tradex Limited	Additional director	01-10-11	01-10-11	-	Active	NO

Name :

Tejasavi Bhargava

Designation :

Director

Address :

Anand Bhavan Opposite Jat College Hisar – 125 001, Haryana, India

Date of Birth/Age :

15.11.1979

Date of Appointment :

29.09.2003

DIN No.:

00011205

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	U27108HR1999PTC034387	Quality Stainless Private Limited	Director	01-04-03	01-04-03	-	Active	NO
2	U27107HR1990PTC030929	Quality Foils (India) Private Limited	Director	29-09-03	29-09-03	-	Active	NO
3	U28113HR2011PTC041787	Quality Flexibles (India) Private Limited	Director	03-01-11	03-01-11	-	Active	NO
4	U12000DL2007PLC163469	Quality Iron and Steel Limited	Director	30-09-11	10-02-11	-	Active	NO

Name :

Mr. Yashvir Singh

Designation :

Director

Address :

520-B, Krishna Nagar, Hisar – 125 001, Haryana, India

Date of Birth/Age :

10.01.1971

Date of Appointment :

01.05.2004

DIN No.:

01166596

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	U27107HR1990PTC030929	Quality Foils (India) Private Limited	Director	01-05-04	01-05-04	-	Active	NO
2	U27108HR1999PTC034387	Quality Stainless Private Limited	Director	01-05-04	01-05-04	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2011

Names of Shareholders	No. of Shares
Bhargava Kuldip	27180
Bhargava Jagdeep	900
Bhargava Krishana	4900
Bhargava Anshu	4730
Bhargava Tejasvi	7040
Bhargava Tapasvi	4460
A.P. Bhargava HUF	7490
Kuldip Bhargava HUF	8670
Vasudeva Manjula	1800
Kapil Kalia and Sons HUF	900
Kalia Rani Raksha	500
Kalia O.P	2400
Saran Seema	1350
Jain Kumar Tej	50
Jain Kumar Kuldeep	100
Devi Durga	530
Malik Anu	50
Kaur Satnaum	50
Soni Seema	50
Singh Amarjeet	50
Batura Pal Mahinder	50
Batura Rohit	50
Batura Deepika	50
Singh Kamaljeet	50
Singh Sharmila	50
Singh Tannya	50
Dikshit K. Prem	100
Singh Yashvir	50
Shinning Steels Private Limited, India	15370
Satellite Developers Limited, India	34550
Quality Stainless Private Limited, India	12280
Bhaktwar Real Estate Services, India	50
Kiran P Amin	50
Rachana Neil Parekh	50
TOTAL	136000

Equity Share Break up (Percentage of Total Equity)

As on 28.09.2011

Category	Percentage
Bodies corporate	46.00
Directors or relatives of Directors	48.00
Other top fifty shareholders	6.00
Total	100.00

BUSINESS DETAILS

Line of Business :

manufacturers of Cold Rolled Stainless Steel Coils

Products :

Item Code No. (Itc Code )	Product Description
7220.20	Cold Rolled Stainless Steel Strips

PRODUCTION STATUS

As on 31.03.2011

Installed Capacity & Production

Particulars	31.03.2011
Installed Capacity	10000.000 MT
Actual Production	6560.851 MT
Raw Material Consumed	6680.137 MT
Job Work Production	722.431 MT

Notes:

· Licensed capacity is not applicable in view of the company’s production having been de-licensed

· Installed Capacity is as certified by the management

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• State Bank of India, SCB Branch, Jindal Stainless Complex, Delhi Road, Hisar – 125005, Haryana, India
• ICICI Bank

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working Capital Loans	102.689	97.037
Loan Taken from Vehicle	3.913	0.989
Rupee Term Loans	0.000	1.108
Total	106.602	99.134
Notes : Vehicle loan is secured by hypothecation of vehicle and working capital loan is secured by mortgage of land and building and hypothecation of machinery, stock, book debts and other current assets
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee Term Loan Unsecured	84.236	55.855
Total	84.236	55.855

Banking Relations :	--
Auditors :
Name :	A S Jain and Associates Chartered Accountant
Address :	H.O 6, Green Park, Hissar – 125001, Haryana, India
Tel. No.:	91-1662-230229
Mobile No.:	94-9466556552
PAN.:	AACFV1017C
Associates/Subsidiaries :	· Quality Stainless Private Limited Cin No. U27108HR1999PTC034387 · Shinning Steels Private Limited Cin No. U65921DL1996PTC076778 · The East Punjab Manufacturing Company · Argentum Fashions Private Limited Cin No. U36911HR1990PTC030969

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs. 100/- Each	Rs. 20.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
136000	Equity Shares	Rs.10/- each	Rs. 13.600 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		13.600	13.600	13.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		96.334	83.118	73.014
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		109.934	96.718	86.614
LOAN FUNDS
1] Secured Loans		106.602	99.134	67.938
2] Unsecured Loans		84.236	55.855	15.213
TOTAL BORROWING		190.838	154.989	83.151
DEFERRED TAX LIABILITIES		12.823	12.586	11.738
TOTAL		313.595	264.293	181.503
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		81.962	78.624	76.857
Capital work-in-progress		18.737	0.000	0.000
INVESTMENT		7.373	6.880	5.609
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	72.631	142.977	38.646
	Sundry Debtors	240.141	142.381	74.273
	Cash & Bank Balances	4.345	3.316	0.246
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	61.325	67.083	35.910
Total Current Assets		378.442	355.757	149.075
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	160.972	164.904	3.854
	Other Current Liabilities	6.315	4.452	42.671
	Provisions	5.632	7.612	3.513
Total Current Liabilities		172.919	176.968	50.038
Net Current Assets		205.523	178.789	99.037
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		313.595	264.293	181.503

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1026.216	819.233	758.609
		Other Income		1.138	3.536
		TOTAL (A)	1026.216	820.371	762.145
Less	EXPENSES
		Material and Manufacturing Expenses	978.328	696.680	636.017
		Excise Duty		66.481	85.958
		Personnel		11.555	10.151
		Selling, Administration and Other		7.530	6.212
		TOTAL (B)	978.328	782.246	738.338
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		47.888	38.125	23.807
Less	FINANCIAL EXPENSES (D)		21.242	17.053	15.229
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		26.646	21.072	8.578
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.641	5.570	4.905
	PROFIT BEFORE TAX (E-F) (G)		20.005	15.502	3.672
Less	TAX (H)		6.789	5.398	1.375
	PROFIT AFTER TAX (G-H) (I)		13.216	10.104	2.297
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		54.408	44.304	42.007
	BALANCE CARRIED TO THE B/S		67.624	54.408	44.304
	F.O.B VALUE OF EXPORTS		NA	56.631	92.936
	C.I.F VALUE OF IMPORTS		NA	12.533	53.372
	Earnings Per Share (Rs.)		97.18	74.29	16.89

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.29	1.23	0.30
Net Profit Margin (PBT/Sales)	(%)	NA	1.89	0.48
Return on Total Assets (PBT/Total Assets}	(%)	4.35	3.57	1.63
Return on Investment (ROI) (PBT/Networth)		0.18	0.16	0.04
Debt Equity Ratio (Total Liability/Networth)		3.31	2.60	1.54
Current Ratio (Current Asset/Current Liability)		2.19	2.01	2.98

LOCAL AGENCY FURTHER INFORMATION

OPERATIONAL RESULTS

Total production of CRSS Strips (inclusive of job production) during the year was 7283.282 MT against 6563.718 MT during the previous year. The total income was Rs.1026.216 millions during the year as compared to Rs.820.371 millions during the previous year and the gross profit (before interest and depreciation) during the year was Rs.47.888 millions against Rs.38.125 millions during the previous year.

CONTINGENT LIABILITIES

Particulars	31.03.2011	31.03.2010
Letter of credit	0.000	0.640
Inland Bills discounted	2.108	2.679
Foreign Bills discounted	2.584	0.000
TOTAL	4.692	3.319

FORM 8

Corporate identity number of the company	U27107HR1990PTC030929
Name of the company	QUALITY FOILS (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	3 Industrial Development Colony, Hisar – 125 005, Haryana, India Email : contactus@qualityfoils.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80006613
Type of charge	Immovable Property Any Interest in Immovable Property Book Debts Movable Property (not being pledge) Floating Charge
Particular of charge holder	State Bank of India, SCB Branch, Jindal Stainless Complex, Delhi Road, Hisar – 125005, Haryana, India Email : sbi.04048@sbi.co.in
Nature of instrument creating charge	1.letter of arrangement 2.Aggrement of loan cum hypothecation 3.List of property
Date of instrument Creating the charge	14.12.2011
Amount secured by the charge	Rs.231.800 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: As per the terms and conditions of letter of arrangement attached or as per the bank's scheme from time to time. Terms of Repayment: Working Capital Limit : Repayable on Demand Term Loan : As Per Existing Repayment Schedule Flc, Car Loan,Fbp(Non-Lc) and Forward Purchase Limit : As Per Arrangement Letter Margin: RM : 25% SIP : 25% FG : 25% BOOK DEBT: 40% LC 15% Extent and Operation of the charge: First charge on all assets of the company
Date of instrument modifying the charge	25.11.2010
Particulars of the present modification	Total fund and non fund based credit limit modified to Rs.231.800 millions as under:- 1. CC hypothecation limit Rs.90.000 millions, CC (BD) RS. 70.000 millions CC (EPC):17.000 millions (WITHIN CC), FBP(NON-LC):10.000 millions 2. SME Car Loan 0.400 millions 3.ILC/FLC Rs.70.000 millions 4.forward purchase limit @ RS.0.14

FIXED ASSETS:-

· Land

· Building

· Plant and Machinery

· Electrical

· Office Equipments

· Furniture and Fixtures

· Vehicles

· Generators

WEBSITE DETAILS:-

The company is a Cold-rolling plant for Stainless and Mild Steel set-up in 1982 at Hisar, Haryana started with a precision Four Hi-Mill to process 510 mm wide strips, and soon grew manifold in capacity by adopting state-of-the-art technology in the shape of another mill to roll wider material. The huge production capacity enabled the company to carve a place for itself as the major supplier of raw-material to the stainless and tubing industry in the country.

With quality as the attitude, a team of professional engineers cater to the customers' needs. The two Cold-rolling mills with associated processing strength and modern testing and measuring discipline offer a complete package.

They are one of the leading manufacturers of Cold Rolled Stainless Steel coils producing approx. 800 MT of material per month.

Since their inception in 1978, they are contributing approximately 80% of production to the Tube manufacturing industry. Apart from the two Modern Cold Rolling Mills their factory is equipped with Three Annealing Lines and Three Pickling Lines applying the latest technology. Two fine C.R. Slitters have been set up to cater to the needs of Specific Widths anywhere between 25mm to 700mm.

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.53.36
UK Pound	1	Rs.82.51
Euro	1	Rs.68.99

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	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		45

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.