MIRA INFORM REPORT

Report Date :

10.03.2011

IDENTIFICATION DETAILS

Name :	MACRO BARS AND WIRES (INDIA) PRIVATE LIMITED
Registered Office :	304, Bombay Market Building, Tardeo Road, Mumbai- 400034, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	31.07.1991
Com. Reg. No.:	11- 062752
CIN No.: [Company Identification No.]	U27200MH1991PTC062752
TAN No.: [Tax Deduction & Collection Account No.]	MUMM09774C
PAN No.: [Permanent Account No.]	AAACM3526C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Stainless Steel Wires

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 1560000
Status :	Good
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are fair. Payments are usually correct and as per commitment, nothing adverse reported. The company can be considered normal for business dealing 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

INFORMATION PARTED BY

Name :	Mr T.V. Chacko
Designation :	Senior Accountant
Contact No.:	91-9224371393
Date :	09.03.2011

LOCATIONS

Registered Office/ Factory :	304, Bombay Market Building, Tardeo Road, Mumbai- 400034, Maharashtra, India
Tel. No.:	91-22-23523757
Fax No.:	91-22-23524758 / 66627393
E-Mail :	mbw@mbwindia.com / rajivbengali@rediffmail.com
Website :	www.mbwindia.com
Area :	1000 Sq. Ft
Location :	Owned

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Dhawalchand C. Kanugo
Designation :	Director
Address :	102/A, Sanidhya Building, 1^st Floor, Near Sankalp Building, Walkeshwar Road, Mumbai- 400006, Maharashtra, India
Date of Birth/Age :	17.07.1950
Date of Appointment :	31.07.1991
Name :	Mr. Jitendra D. Kanugo
Designation :	Director
Address :	102/A, Sanidhya Building, 1^st Floor, Near Sankalp Building, Walkeshwar Road, Mumbai- 400006, Maharashtra, India
Qualification :	Post Graduate
Date of Birth/Age :	08.04.1969
Date of Appointment :	10.10.1995
Name :	Mr. Amritesh Kanugo
Designation :	Director
Address :	21, Bhagwan Mansion, Cinema Road, Dhobi Talao, Mumbai- 400020, Maharashtra, India
Qualification :	Graduate and Technically Educated
Date of Birth/Age :	06.04.1975
Date of Appointment :	31.07.1991
Name :	Mr. Parikshit K. Vaid
Designation :	Director
Address :	21, Bhagwan Mansion, Cinema Road, Dhobi Talao, Mumbai- 400020, Maharashtra, India
Date of Birth/Age :	27.09.1973
Qualification :	Post Graduate
Date of Appointment :	10.10.1995

KEY EXECUTIVES

Name :	Mr T.V. Chacko
Designation :	Sr. Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Dhawalchand C. Kanugo	200000
Jitendra D. Kanugo	200000
Amritesh Vaid	200000
Parikshit Vaid	200000
Total	800000

AS ON 30.09.2010

Equity Share Breakup
Category	Percentage
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Stainless Steel Wires

Products:

ITC Code	Sub Code	Products Description
72	7223	Stainless Steel Wires
72	72.22	Stainless Steel Bright Bars
72	72.04	S S Scrap

Exports :

Products:

• Stainless Steel Wires

Countries :

• Germany
• France

Imports :

Products :

• Raw Material

Countries :

• France

Terms :

Selling :

L/C, Cash, Credit

Purchasing :

L/C, Cash, Credit

PRODUCTION STATUS

AS ON 31.03.2010

Particulars	Unit	Installed Capacity	Actual Production
S S Steel Wire and Bright Bars	M. Tonnes	5000	3808.657
M S Scrap	M. Tonnes	0.000	17.145
S S Scrap	M. Tonnes	0.000	37.510
Production on job work basis	M. Tonnes	0.000	214.059

GENERAL INFORMATION

Customers :

• End Users
• OEM’s

No. of Employees :

112 Approximately

Bankers :

• ABN Amro Bank N.V, Sakhar Bhavan, 7^th Floor, Nariman Point, Mumbai- 400021, Maharashtra, India

· State Bank of India, Fort, Mumbai

Facilities :

Rs. In Millions

SECURED LOAN	31.03.2010	31.03.2009
Bank
Bills Discounted with Schduled Bank	39.062	0.000
UNSECURED LOAN	31.03.2010	31.03.2009
Short Term Loans and Advances
From Scheduled Bank -Temporory Overdrawn Balance	9.860	0.000

Banking Relations :	--
Auditors :	M. C. Doshi and Company Chartered Accountant
Address :	307, Vaishali Apartments, 30/31, Parekh Street, Prathana Samaj, Mumbai- 400004, Maharashtra, India
Tel. No.:	91-22-67437416 / 17
Fax No.:	91-22-23824232
Email:	mcdoshi@vsnl.com
PAN No.:	AACPD4437A
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

AS ON 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Share	Rs.10/- Each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
800000	Equity Share	Rs.10/- Each	Rs.8.000 Millions

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		8.000	8.000	8.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		384.474	363.921	321.968
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		392.474	371.921	329.968
LOAN FUNDS
1] Secured Loans		39.062	0.000	0.000
2] Unsecured Loans		9.860	0.000	14.759
TOTAL BORROWING		48.922	0.000	14.759
DEFERRED TAX LIABILITIES		9.133	9.185	8.931
TOTAL		450.529	381.106	353.658
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		70.482	71.545	89.654
Capital work-in-progress		0.000	0.000	0.000
ADVANCE AGAINST CAPITAL		0.200	17.500	0.000
INVESTMENT		0.634	83.924	0.010
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	170.401	77.115	127.694
	Sundry Debtors	101.198	61.609	103.095
	Cash & Bank Balances	19.949	71.685	17.423
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	157.611	45.067	74.323
Total Current Assets		449.159	255.476	322.535
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.027	0.094
	Current Liabilities	69.925	41.575	58.060
	Provisions	0.021	5.737	0.481
Total Current Liabilities		69.946	47.339	58.541
Net Current Assets		379.213	208.137	263.994
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		450.529	381.106	353.658

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Sales	596.031	844.343
		Other Income
		TOTAL (A)	596.031	844.343
Less	EXPENSES
		Office Expenses
		Administrative Expenses	566.877	780.548
		Advertising Expenses
		TOTAL (B)	566.877	780.548
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		29.154	63.795
Less	FINANCIAL EXPENSES (D)		NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		29.154	63.795
Less/ Add	DEPRECIATION/ AMORTISATION (F)		NA	NA
	PROFIT BEFORE TAX (E-F) (G)		29.154	63.795
Less	TAX (H)		8.601	21.840
	PROFIT AFTER TAX (G-H) (I)		20.553	41.954
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	466.778	731.438
	IMPORTS
		Raw Materials	31.068	22.029
		Stores & Spares	1.568	2.470
		Machinery	1.332	0.943
	TOTAL IMPORTS		33.968	25.442
	Earnings Per Share (Rs.)		25.69	52.44

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.44	4.96	NA
Net Profit Margin (PBT/Sales)	(%)	NA	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	5.61	19.50	NA
Return on Investment (ROI) (PBT/Networth)		0.07	0.17	NA
Debt Equity Ratio (Total Liability/Networth)		0.32	0.15	0.24
Current Ratio (Current Asset/Current Liability)		6.42	5.39	5.50

LOCAL AGENCY FURTHER INFORMATION

Details Sundry Creditors

Rs. In Millions

Particular	31.03.2010	31.03.2009	31.03.2008
Dues to Micro, Small and Medium Enterprises	0.000	0.027	0.094
Sundry Creditors	0.000	0.027	0.094

NOTE:

The registered office of the company has been shifted from 702 Bombay Market Bldgtradeo Road, Mumbai - 400034, Maharashtra, India to the present address w.e.f. 01.04.2007

TRADE REFERENCE

• S K M steel Limited – Mumbai
• Viraj profiles Limited – Tarapur (Thane)

FIXED ASSETS

• Freehold Land
• Factory Building
• Office Building
• Residential Premises
• Plant and Machinery
• L.P.G Supply Systems
• Furniture and Fixture
• Electrical Installation
• Factory Equipments
• Motor Cars
• Computer and Printer

FORM 8

Name of the company	MACRO BARS AND WIRES INDIA PRIVATE LIMITED
Presented By	AMN Amro Bank N.V. and Macro Bars and Wires India Private Limited
1) Date and description of instrument creating the change	Dated : 10.02.2005 Facility Cum Hypothecation Agreement
2) Amount secured by the charge/amount owing on the securities of charge	Rs.25.000 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Exclusive charge over stock and book debts of the company to the extent of INR 10 million.
4) Gist of the terms and conditions and extent and operation of the charge.	The above stock and book debts hypothecated by way of charge, as security for the payment to the bank of all monies at any time due and payable by the company to the bank in respect of the above facility. Interest: as per RBI guidelines.
5) Name and Address and description of the person entitled to the charge.	ABN Amro Bank N.V., Sakhar Bhavan, Nariman Point, Mumbai – 400021
6) Date and brief description of instrument modifying the charge	NA
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	NA

This form is for	Modification of charge
Charge identification number of the modified	90365567
Corporate identity number of the company	U27200MH1991PTC062752
Name of the company	MACRO BARS AND WIRES INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	304, Bombay Market Building, Tardeo Road, Mumbai- 400034, Maharashtra, India
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	ABN Amro Bank N.V, sakhar bhavan, 7^th Floor, Nariman Point, Mumbai- 400021, Maharashtra, India E-mail: reenabang@rediffmail.com
Nature of description of the instrument creating or modifying the charge	Supplemental facility cum Hypothecation Agreement
Date of instrument Creating the charge	09.06.2007
Amount secured by the charge	Rs.45.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest OD / WCDL – At negotiated rates. LCs – At standard triff Terms of Repayment OD/ WCDL / LCs – as agreed by and with the Bank Margin 25% Extent and Operation of the charge The Bank is having exclusive charge on current assets (stock and book debts), both present and future
Short particulars of the property charged	Hypothecation by way exclusive charge on all the book debts of the borrower, stock in trade both present and future consisting of raw material, finished goods, goods in process of manufacturing and other merchandise.
Date of latest modification prior to the present modification	24.05.2005

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.45.02
UK Pound	1	Rs.72.70
Euro	1	Rs.62.54

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
TOTAL		54

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.