MIRA INFORM REPORT

Report Date :

12.01.2011

IDENTIFICATION DETAILS

Name :	SHREY INDUSTRIES LIMITED
Registered Office :	138-139, Main Road, Near Bharat Petrol Pump, Shahdara, Ghazipur, Delhi – 110096
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	28.08.1996
Com. Reg. No.:	55-148276
CIN No.: [Company Identification No.]	U74100DL1996PLC148276
TAN No.: [Tax Deduction & Collection Account No.]	DELS30966F
PAN No.: [Permanent Account No.]	AAICS5988G
Legal Form :	Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of aluminium extruded products and aluminium alloy ingots.

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 1444856
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some losses being incurred by the company. Trade relations are reported as fair. Business is active. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some 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 – 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

INFORMATION PARTED BY

Name :	Mr. Raman Gupta
Designation :	Director
Date :	07.01.2011

LOCATIONS

Registered Office/Factory :	138-139, Main Road, Near Bharat Petrol Pump, Shahdara, Ghazipur, Delhi – 110096, India
Tel. No.:	91-11-22248890
Fax No.:	91-11-22248898
E-Mail :	finance@mtil.in pratibha.sharma@mtil.in
Website :	www.shreyindia.com
Area :	3000 Sq. ft.
Location :	Owned

DIRECTORS

AS ON 29.09.2010

Name :	Mr. Raman Gupta
Designation :	Director
Address :	F-73, Preet vihar, Delhi – 110092, India
Date of Birth/Age :	29.12.1959
Qualification :	Graduate
Date of Appointment :	25.10.1999
Name :	Mrs. Kiran Gupta
Designation :	Director
Address :	F-73, Preet vihar, Delhi – 110092, India
Date of Birth/Age :	30.03.1961
Qualification :	Graduate
Date of Appointment :	25.10.1999
Name :	Mr. Shrey Gupta
Designation :	Director
Address :	F-73, Preet vihar, Delhi – 110092, India
Date of Birth/Age :	30.04.1989
Qualification :	Graduate
Date of Appointment :	15.02.2010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2010

Names of Shareholders	No. of Shares
Met Trade (India) Limited	12379400
Mr. Raman Gupta	100
Mr. Raman Gupta	100
Mrs. Kiran Gupta	100
Mr. Raman Gupta	100
Mr. Shrey Gupta	100
Mr. Shrey Gupta	100
Total	12380000

AS ON 29.09.2010

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of aluminium extruded products and aluminium alloy ingots.
Terms :
Selling :	Cash
Purchasing :	Cash

PRODUCTION STATUS AS ON 31.03.2009

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Aluminum Alloys and Extrusions	NA	NA	18000	8577
Total	NA	NA	18000	8577

GENERAL INFORMATION

Customers :

• End Users
• OEM’s

No. of Employees :

50 (Approximately)

Bankers :

Yes Bank Limited, 9^th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Wori, Mumbai – 400018, Maharashtra, India

Facilities :

Cash Credit 150.000 Millions

Secured Loan *	Rs. In Millions 31.03.2009	Rs. In Millions 31.03.2008
Long Term
Open cash credit facility
-Standard Chartered Bank	17.632	(13.317)
-HSBC Bank	69.740	2.085
-Yes Bank	132.640	0.000
-Barclays Bank	64.900	0.000
Short Term* *
Buyer’s Credit Facility
-Standard Chartered Bank	118.513	137.647
-Barclays Bank	34.570	0.000
HSBC Bank	0.000	70.577
Bill Under Discounting	0.000	10.274
Total	437.995	207.266
Unsecured Loan	Rs. In Millions 31.03.2009	Rs. In Millions 31.03.2008
From Directors	2.182	2.238
Total	2.182	2.238

Note:

* Secured by; First pari – passu charge on entire current assets of the company, pari passu – Equitable Mortage (EM) First charge on entire moveable fixed assets of the company , pari passu EM on land and buildings of the work of the company at Kathua, J and K and personal guarantee by Directors Mr. Raman Gupta and Mrs. Kiran Gupta.

** Amount due against Short Term Loan represents the amount due for payments within six months.

Auditors :
Name :	Lochan and Company Chartered Accountant
Address :	B 1 Dharma Apartment, Inderprastha extension, Delhi – 110092, India
Holding Company :	Met Trade India Limited
Associates :	Gupta Pigments and chemical Private Limited India Met Chemical Private Limited Gupta Pigments Private Limited MET Trade (India) Limited Metal Extrusions National Metal

CAPITAL STRUCTURE

AS ON 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs. 200.000Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000Millions

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		50.000	50.000	10.000
2] Share Application Money		129.270	129.270	220.570
3] Reserves & Surplus		181.944	209.337	27.087
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		361.214	388.607	257.657
LOAN FUNDS
1] Secured Loans		437.995	207.266	207.962
2] Unsecured Loans		2.182	2.238	7.415
TOTAL BORROWING		440.177	209.504	215.377
DEFERRED TAX LIABILITIES		0.018	0.243	0.900
TOTAL		801.409	598.354	473.934
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		49.111	47.441	39.960
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	38.610	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	343.420	335.104	271.087
	Sundry Debtors	221.283	136.582	127.058
	Cash & Bank Balances	12.386	36.578	9.212
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	193.197	48.084	41.347
Total Current Assets		770.286	556.348	448.704
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6.001	4.845	0.000
	Other Current Liabilities	3.297	26.500	3.939
	Provisions	10.047	14.398	10.790
Total Current Liabilities		19.345	45.743	14.730
Net Current Assets		750.941	510.605	433.974
MISCELLANEOUS EXPENSES		1.357	1.698	0.000
TOTAL		801.409	598.354	473.934

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Sales and other income	916.946	778.781	562.451
		TOTAL (A)	916.946	778.781	562.451
Less	EXPENSES
		Office Expenses
		Administrative Expenses	943.709	510.094	521.081
		Advertising Expenses
		TOTAL (B)	943.709	510.094	521.081
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(26.762)	268.687	41.370
Less	FINANCIAL EXPENSES (D)		NA	17.406	11.969
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(26.762)	251.281	29.401
Less/ Add	DEPRECIATION/ AMORTISATION (F)		NA	6.820	4.630
	PROFIT BEFORE TAX (E-F) (G)		(26.762)	244.461	24.771
Less	TAX (I)		0.632	222.211	3.779
	PROFIT AFTER TAX (G-I) (J)		(27.394)	22.250	20.992
	BALANCE CARRIED TO THE B/S		12.677	40.070	17.820
	EARNINGS IN FOREIGN CURRENCY		NA	0.017	NA
	IMPORTS
	Aluminium Scraps		717.854	543.397	406.060
	Earnings Per Share (Rs.)		(5.47)	NA	NA

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	(2.98)	2.85	3.73
Net Profit Margin (PBT/Sales)	(%)	(2.91)	31.39	4.40
Return on Total Assets (PBT/Total Assets}	(%)	(0.03)	43.94	5.52
Return on Investment (ROI) (PBT/Networth)		(0.07)	0.62	0.09
Debt Equity Ratio (Total Liability/Networth)		0.02	0.11	0.05
Current Ratio (Current Asset/Current Liability)		39.81	12.16	30.46

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors:

PARTICULARS	31.03.2009	31.03.2008	31.03.2007
Sundry Creditors	6.001	4.845	0.000
Total	6.001	4.845	0.000

Note: Registered office address of the company has been sifted from Vakil Building 1^st Floor, Model Town Road Jalandhar, Delhi – 110096, India to present w.e.f 06.07.2006

Fixed Assets:

• Land
• Building
• Air Conditions
• Computer
• Dies
• Plant and Machinery
• Furniture
• D.G. Set
• Equipment
• Vehicles

Trade Refernaces:

• NF Thermal Solutions Private Limited
• Brite Proofing Private Limited

Form 8:

Corporate identity number of the company	U74100DL1996PLC148276
Name of the company	SHREY INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	138-139, MAIN ROAD, NEAR BHARAT PETROL PUMPSHAHDARA, GHAZIPUR Delhi – 110096, INDIA pratibha.sharma@mtil.in
This form is for	Modification of charge
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	YES BANK LIMITED, 9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA, DR. ANNIE BESANT ROAD, WORLI, MUMBAI - 400018, Maharashtra,India shareholders@yesbank.in
Nature of instrument creating charge	Deed of Hypothecation dated 28.06.2010
Date of instrument Creating the charge	28.06.2010
Amount secured by the charge	150.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest : Working Capital Demand Loan: 10.50%p.a. Cash Credit: Yes Bank PLR minus 2% Buyers Credit/Letter of Credit Bill Discounting: To be decided Terms of Repayment : 1 Working Capital Demand Loan: payable on demand Sub limit of 1 1a Cash Credit: payable on demand 1b Buyers Credit: NA 1c Letter of Credit Bill Discounting: NA Margin : 1 Working Capital Demand Loan: 25% on (Book debts < 90 days + stocks - creditors) Sub limit of 1 1a Cash Credit: 25% on (Book debts < 90 days + stocks - creditors) 1b Buyers Credit: NA 1c Letter of Credit Bill Discounting: NA Extent and Operation of the charge : First Pari Passu charge on all Current Assets and First Pari passu charge on all movable fixed assets (both present and future)
Short particulars of the property charged	1) First Pari Passu charge on all Current Assets including stocks of raw material, semi-finished and finished goods, stores and spares, Bills Receivable and Book Debt (both present and future). 2) First Pari Passu charge on all movable Fixed Assets including plant and machinery located at 153 Sicop Industrial Area, Kathua, Jammu & Kashmir both present and future.
Particulars of the property charged	Modification is pursuant to addition of following security:- First Pari Passu charge on all movable Fixed Assets including plant and machinery located at 153 Sicop Industrial Area, Kathua, Jammu & Kashmir both present and future.

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.45.32
UK Pound	1	Rs.70.54
Euro	1	Rs.58.70

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	NO
TOTAL		29

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.