MIRA INFORM REPORT

Report Date :

25.02.2011

IDENTIFICATION DETAILS

Name :	NICOMET INDUSTRIES LIMITED
Registered Office :	14 Niraj Industrial Estate, Off Mahakali Caves Road, Andheri (East), Mumbai – 400093, Maharashtra
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	02.04.1993
Com. Reg. No.:	11-71450
CIN No.: [Company Identification No.]	U27200MH1993PLC071450
TAN No.: [Tax Deduction & Collection Account No.]	MUMM09552E
PAN No.: [Permanent Account No.]	AAACN1597Q
Legal Form :	Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Cobalt, Copper Nickel and their Derivatives

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 1500000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
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 :	14 Niraj Industrial Estate, Off Mahakali Caves Road, Andheri (East), Mumbai – 400093, Maharashtra
Tel. No.:	91-22-28203347/28203418 / 26938710-14
Fax No.:	91-22-28351982
E-Mail :	nicomet@bom3.vsnl.net.in / nico@nicomet.com
Website :	http://www.nicomet.com
Area :	2600 Sq. ft
Location :	Leased
Factory 1 :	Plot No. L-19/20, Cuncolim Industrial Estate, Cuncolim – 403 703, Goa
Tel. No.:	91-832-2763307/2764337
Fax No.:	91-832-2764327
E-Mail :	nicogoa@goa1.dot.net.in / nicogoa@goatelecom.com

DIRECTORS

As On : 26.09.2009

Name :	Mr. Rajendra D. Agarwal
Designation :	Managing Director
Address :	21, Krishna Kunj, G. Road, 94, Marine Drive, Mumbai – 400 020, Maharashtra
Date of Birth/Age :	21.05.1951
Date of Appointment :	02.04.1993
DIN No :	00605850
Name :	Mr. Vijay M. Porwal
Designation :	Director
Address :	201, Kusum Kunj, Junction of 9^th/10^th Road, Khar (West), Mumbai – 400 052
Date of Birth/Age :	06.12.1953
Date of Appointment :	30.05.2000
DIN No :	00606435
Name :	Mr. Bhupat K. Shah
Designation :	Director
Address :	101, Kusum Kunj, Junction of 8^th and 10^th Road, Khar (West), Mumbai – 400 032, Maharashtra
Date of Birth/Age :	01.12.1943
Date of Appointment :	30.05.2000
DIN No :	00606112
Name :	Mr. Ankit R Agarwal
Designation :	Director
Address :	21, Krishna Kunj, G. Road, 94, Marine Drive, Mumbai – 400 020, Maharashtra
Date of Birth/Age :	27.08.1980
Date of Appointment :	12.01.2004
DIN No :	00605952

KEY EXECUTIVES

Name :	Mr. Nitin M. Vaishnav
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 26.09.2009

Names of Shareholders	No. of Shares
A. AGARWAL
Mr. Rajendra D. Agarwal	1000000
Mrs. Usha R. Agarwal	1000000
Mr. Ankit R Agarwal	1000000
Mr. Atul R Agrawal	1000000
Ms. Bhavana Agrawal	227500
Mr. Murlidarji Agarwal	7500
Mr. Daudayal Agarwal HUF	1235000
Mrs. Angoori Devi	30000
Sub Total A	5500000
B. PORWAL
Ms. Nirmala V Porwal	356695
Ms. Ritu A Porwal	485100
Ms. Ruchi V Porwal	485100
Mr. Ambalal M Porwal	237660
Mr. Ambalal M Porwal HUF	313840
Ms. Manjula A Porwal	191400
Mr. Tushar A Porwal	464200
Mr. Vipul A Porwal	464200
Mr. Vijay M Porwal	99205
Mr. Vijay M Porwal HUF	245300
Mr. Aardhi Porwal	100
Sub Total B	3342800
C. SHAH
Mr. Nitul B Shah	941600
Mr. Vilas B Shah	563200
Mr. Bhupat K Shah	305290
Mr. Bhupat K Shah HUF	327110
M/s. Amar Ferro Metals Private Limited	20000
Sub Total C	2157200
Total A+B+C	11000000

AS ON 26.09.2009

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		91.38
Other top fifty shareholders		8.44
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cobalt, Copper Nickel and their Derivatives

Products :

Item Code No. (ITC Code)	283390
Product Description	Cobalt Nickel Sulphate
Item Code No. (ITC Code)	283400
Product Description	Cobalt Nitrate
Item Code No. (ITC Code)	810500
Product Description	Cobalt Metal

GENERAL INFORMATION

Bankers :

• Federal Bank Limited, 32, Bombay Samachar Marg, Fort, Mumbai – 400001, Maharashtra

Facilities :

SECURED LOAN	31.03.2009 Rs. In Millions	31.03.2008 Rs. In Millions
Vehicles Loans	2.358	3.479
Working Capital finance from banks	178.975	171.284
Total	181.333	174.763

Notes :

The working capital loans from the banks are secured by hypothecation of stocks and export bills. The loans are further secured by collateral security by way of equitable mortgage of immovable properties of the company situated at plot no.L-15, L-19 and L-20, Cuncolim Industrial Estate, Cuncolim, Goa and first charge on other fixed assets and current assets of the company. The said loans are further secured by personal guarantees of the directors.

Vehicle loans are secured by hypothecation of specific vehicles.

UNSECURED LOAN	31.03.2009 Rs. In Millions	31.03.2008 Rs. In Millions
From Directors	8.656	2.620
From shareholders	3.416	9.452
From Banks	6.583	0.000
From Companies	50.000	0.000
Total	68.655	12.072

Banking Relations :	--
Auditors :
Name :	Chaturvedi S. K. and Fellow Chartered Accountants
Address :	B-133, Mittal Tower, Nariman Point, Mumbai – 400 021
Tel. No.:	91-22-22845343
Associates :	· Ankit Associates Private Limited, Kaatyaayini · Exports, Ampex Trading Company

CAPITAL STRUCTURE

As On : 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs. 10/- each	Rs. 110.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs. 10/- each	Rs. 110.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		110.000	110.000	110.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		285.194	272.561	125.063
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		395.194	382.561	235.063
LOAN FUNDS
1] Secured Loans		181.333	174.763	147.667
2] Unsecured Loans		68.655	12.072	63.572
TOTAL BORROWING		249.988	186.835	211.239
DEFERRED TAX LIABILITIES		79.180	44.755	33.255
TOTAL		724.362	614.151	479.557
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		402.027	371.514	280.571
Capital work-in-progress		71.255	22.559	53.917
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	587.771	235.444	365.056
	Sundry Debtors	119.157	475.365	76.194
	Cash & Bank Balances	113.593	99.712	36.368
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	88.652	49.235	54.493
Total Current Assets		909.173	859.756	532.111
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	447.327	530.987	335.867
	Other Current Liabilities	174.949	34.260	27.395
	Provisions	35.817	74.431	23.780
Total Current Liabilities		658.093	639.678	387.042
Net Current Assets		251.080	220.078	145.069
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		724.362	614.151	479.557

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Income	1897.051	2103.947	1069.901
		Other Income	65.658	51.575	29.137
		TOTAL (A)	1962.709	2155.522	1099.038
Less	EXPENSES
		Cost of Materials	1605.975	1563.860	875.570
		Manufacturing Expenses	343.257	191.367	152.600
		Excise Duty Paid	123.969	95.759	55.670
		Increase/(Decrease) in Finished Goods	(181.029)	26.146	(122.528)
		TOTAL (B)	1892.172	1877.132	961.312
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		70.537	278.390	137.726
Less	FINANCIAL EXPENSES (D)		26.807	22.103	15.163
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		43.730	256.287	122.563
Less/ Add	DEPRECIATION/ AMORTISATION (F)		24.752	20.988	17.478
Add	EXCESS PROVISION FOR INTEREST LIABILITY WRITTEN BACK IN TERMS OF SETTLEMENT WITH A FINANCIAL INSTITUTION		0.000	0.000	16.810
Less	PART REVERSAL OF BENEFIT UNDER TARGET PLUS SCHEME OF THE GOVERNMENT ON ITS RETROSPECTIVE MODIFICATION		0.000	0.000	(32.044)
	PROFIT BEFORE TAX (E-F) (G)		18.978	235.299	89.850
Less	TAX (H)		6.345	87.801	31.251
	PROFIT AFTER TAX (G-H) (I)		12.633	147.498	58.599
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		257.122	109.624	51.025
	BALANCE CARRIED TO THE B/S		269.755	257.122	109.624
	EXPORT VALUE		863.623	1105.343	457.999
	IMPORTS
		Raw Materials	1522.867	1544.537	964.077
	TOTAL IMPORTS		1522.867	3067.404	2508.614
	Earnings Per Share (Rs.)		1.15	13.41	6.71

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	0.64	6.84	5.33
Net Profit Margin (PBT/Sales)	(%)	1.00	11.18	8.40
Return on Total Assets (PBT/Total Assets}	(%)	1.45	19.11	11.06
Return on Investment (ROI) (PBT/Networth)		0.05	0.62	0.38
Debt Equity Ratio (Total Liability/Networth)		2.50	2.28	2.69
Current Ratio (Current Asset/Current Liability)		1.38	1.34	1.37

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS and FINANCIAL RESULTS

During the year under review, Company's performance was suffered heavily during the later part of the year due to Global Financial Crisis and resultant Economic Slow Down. The Company preferred to go slow in its business activities in view of high volatility in commodity prices and payment risk.

There are substantial sign of improvement in the Economy during the current year and the management expects to do better and show improved profitability.

FIXED ASSETS

v Lease hold Land

v Buildings

v Plant and Machinery

v Solvents

v Electrical Installations

v Factory Equipments

v Laboratory Equipments

v Air Conditioners

v Furniture and Fixtures

v Office Equipments

v Computers

v Vehicles

WEB SIDE DETAILS

PROFILE

Sensing the potential on the global front, Subject was conceived in year 1993 to meet the need for high purity Cobalt and Nickel products.

The founders with over 25 years of experience in trade of metals and industries in their drive for excellence, have today succeeded in establishing Nicomet as a reliable source for specialty products of Nickel and Cobalt Metals. Manufacturing unit at Goa, 600 kms South of Mumbai was set up for Commercial production of cobalt metal and started production since 1997.Nicomet is the first of this kind to produce Cobalt and nickel metals in India.

Start with Cobalt manufacturing, the company now produces Cobalt, Nickel, Copper metals and their salts as well as Sodium Sulphate as bye product.

Latest development in non ferrous extractive metallurgy field are on the account of solvent extraction technology. This technology was fully developed and adopted in Nicomet for extraction of Cobalt, further it was applied to Nickel extraction and thus as on today Nicomet industries produces high quality Nickel and Cobalt metals by Electro winning process.

MANAGEMENT TEAM

Corporate Office of Nicomet is located in India's business city of Mumbai. The development of the Company is planned and executed from its committed management team which consists of handful personnel in their respective field of specialization.

The operative management team comprises of Managing Director Shri Rajendra Agarwal, Executive Director Shri Vakil Singh, Chief Executive Officer Shri Vipul Porwal and Chief Financial Officer Shri Kamal Nayan Chaturvedi, and are assisted by different disciplined personnel from their respective field.

Shri Rajendra Agarwal - Chairman and Managing Director

Shri Rajendra Prasad Agrawal, aged 57 years accredited over an experience of more than 35 years comprising in the field of bullion market, gillet ornaments and trading of non ferrous metals. He has set up a Zinc manufacturing plant at Pithampur in Madhya Pradesh & worked as a Chairman and Managing Director of the Company. Further he got engaged with the business of Import/export of non ferrous metals. His continuous hard work, spirit, dedication & desire to lead the market served him with various recognitions and elected as President of Bombay Non Ferrous Metals and scrap Merchants association. He has traveled extensively world over to gain expertise in business of metals and has a good exposure of international markets.

He was instrumental in setting up subject. during 1997 and takes keen interest in in-house development of the solvent extraction technology being used at the plant. Today he is having expertise over the technology and process used for production of Cobalt, Copper, Nickel and their derivatives.

He is presently Chairman and Managing Director of the Company.

Shri Vipul Porwal - Chief Executive Officer

Vipul Porwal, basically a commerce graduate and having more than 12 years of rich experience in metal business. He is well versed with Commercial operation and has got command over financial management with a profound aptitude in marketing and sales.

He is associated with the company since the beginning of his carrier and contributed in multifold growth of the company.

He has traveled extensively world over to gain expertise in business of metals and has a good exposure of international marketing.

He is holding the position of CEO of the Company.

Kamal Nayan Chaturvedi - Chief Financial Officer

Mr. Kamal Nayan Chaturvedi, aged 48 years, is a Chartered Accountant having more than 20 years of experience in accounts, auditing, finance and taxation. He is working as Chief Financial Officer "CFO" and is over all in-charge of finance.

Having extensive experience in the area of project finance, corporate restructuring and working capital management apart from accounting, auditing and taxation during his career as practicing chartered accountant and as partner of Chaturvedi SK and Fellows, Chartered Accountants.

Worked for five years as "Finance Controller" with Ecoboard Industries Limited. engaged in the manufacture of Particle Board and a company of more than Rs. 100 Cr. assets with two plants and 20 branches all over the Country.

Main achievements to his credit are

• Implementation of financial restructuring and turnaround of the company.
• Introduced MIS and budgetary control systems in the Company.
• Arranging of fund for repayment of restructured term liabilities.
• Making the Company a Debt free company.

Worked as "Chief Financial Officer" with Kanoria Group of Industries, having varied interest in Cement, Industrial Gases and Real Estate in 2007-08.

NEWS AND TENDERS

Nicomet is well aware of its social responsibility and maintains eco friendly environment around the unit. It maintains zero water discharge and presently constructing a captive waste disposal site with a cost of around Rs.40.000 millions which has been designed and constructed by M/s Ramky Enviro Engineering Limited.

The project is expected to be commissioned by end of this year 2008.

Recently the Company has commissioned a residue treatment facility which recovers Cobalt, Nickel, Copper Metals to lowest level and finally residue is stabilized to dispose off to landfill site.

Nicomet is expanding Nickel metal manufacturing and constructing a new Nickel plant of capacity 2500 MT at Goa unit which is likely to be commissioned by end of 2008.

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.45.37
UK Pound	1	Rs.73.54
Euro	1	Rs.62.39

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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.