MIRA INFORM REPORT

Report Date :

28.05.2011

IDENTIFICATION DETAILS

Name :	CMG DUCTILES LIMITED
Registered Office :	8, Bentick Street, Kolkata – 700001, West Bengal
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	06.10.1982
Com. Reg. No.:	21-035314
Capital Investment / Paid-up Capital :	Rs.44.245 Millions
CIN No.: [Company Identification No.]	U27101WB1982PLC035314
Legal Form :	A Closely held public limited liability company
Line of Business :	Manufacturer of Iron and Steel Goods.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 580000
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. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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

INFORMATION PARTED BY

Name :	Mr. Vionod Maheshwari
Designation :	Finance Manager
Contact No.:	91-33-22480236
Date :	24.05.2011

LOCATIONS

Registered Office / Factory :	8, Bentick Street, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-22480236
Fax No.:	91-33-22480323
E-Mail :	cmguctiles@rediffmail.com
Area :	5000 sq. ft.
Location :	Owned

DIRECTORS

AS ON 29.09.2010

Name :	Mr. Kailash Chand Saraf
Designation :	Director
Address :	31, G.T. Road, North, Howrah – 711101, West Bengal, India
Date of Birth/Age :	20.11.1949
Date of Appointment :	31.03.2006
Name :	Mr. Biswanath Surexa
Designation :	Director
Address :	19/D, Muktharam Basu Street, Kolkata – 700007, West Bengal, India
Date of Birth/Age :	14.05.1945
Date of Appointment :	09.06.2008
Name :	Mr. Vijay Kumar Roy
Designation :	Director
Address :	P3/1, Kalpur Kancha Road, Thakurpukur, Kolkata – 700032, West Bengal, India
Date of Birth/Age :	01.02.1975
Date of Appointment :	28.03.2008

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2010

Names of Shareholders	No. of Shares
Kailash Chand Sureka	8110
Bhyagwati Pradas Chaoudhary	600
Banwari Lal Agarwal	850
Deoki Nandan Koyal	650
Kailash Chand Kedia	500
Atma Ram Kanodia	650
Bimla Devi Sureka	400
Sandeep Kumar Agarwal	850
Raj Kumar Agarwal	700
Ved Prakash Khaitan	550
Shanti Devi Goyal	700
Chandra Prava Saraf	700
Kusum Saraf	800
Pushpa Devi Saraf	840
Jully Agarwal	1500
Seema Agarwal	1900

AS ON 29.09.2010

Category	Percentage
Bodies corporate	93.57
Directors or relatives of Directors	0.37
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Iron and Steel Goods.

Products :

Item Code No.	Product Description
732599.09	Iron and Steel goods

Terms :

Selling :

Cash, Credit (30 days, 60 days, 90 days)

Purchasing :

Cash, Credit (30 days, 60 days, 90 days)

GENERAL INFORMATION

Customers :

· End Users

· OEM’s

· Other

· Manufacturer

No. of Employees :

500 (Approximately)

Bankers :

· Allahabad Bank, Kolkata Main Branch, 14, India Exchange Place, Kolkata – 700001, West Bengal, India

· State Bank of Hyderabad

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Schedule Banks in Cash Credit Account
Secured against hypothecation of Stock and Book Debts
Allahabad Bank	243.740	151.200
State Bank of Hyderabad	29.814	29.885
Total	273.555	181.086

Banking Relations :	--
Auditors :
Name :	D N Gupta and Associates Chartered Accountant
Address :	10, Ganesh Chandra Avenue, 5^th Floor, Kolkata – 700013, West Bengal, India

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
450000	Equity Shares	Rs.100/- each	Rs.45.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
442450	Equity Shares	Rs.100/- each	Rs.44.245 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		44.245	37.345	35.345
2] Share Application Money		0.000	0.000	3.400
3] Reserves & Surplus		99.916	71.385	63.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		144.161	108.730	101.745
LOAN FUNDS
1] Secured Loans		273.555	181.086	133.090
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		273.555	181.086	133.090
DEFERRED TAX LIABILITIES		3.677	3.944	0.000
TOTAL		421.393	293.760	234.835
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		24.221	26.799	30.775
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.016	0.014	0.014
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	272.527	192.163	161.450
	Sundry Debtors	192.273	119.960	99.727
	Cash & Bank Balances	10.624	6.739	8.145
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	18.141	10.949	13.218
Total Current Assets		493.565	329.811	282.540
Less : CURRENT LIABILITIES & PROVISIONS
	Other Current Liabilities	95.585	61.997	75.466
	Provisions	0.844	0.897	3.068
Total Current Liabilities		96.429	62.894	78.534
Net Current Assets		397.136	266.917	204.006
MISCELLANEOUS EXPENSES		0.020	0.030	0.040
TOTAL		421.389	293.760	234.835

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	3276.767	1498.720	510.747
		Other Income	0.536	1.052	0.129
		TOTAL (A)	3277.303	1499.772	510.876
Less	EXPENSES
		Cost of Goods Sold	3213.662	1439.867	460.154
		Manufacturing Expenses	26.496	25.919	23.528
		Administrative Expenses	4.080	4.066	3.828
		Preliminary Expenses W/Off	0.010	0.010	0.010
		TOTAL (B)	3244.248	1469.862	487.520
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		33.055	29.910	23.356
Less	FINANCIAL EXPENSES (D)		3.408	3.892	4.370
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		29.647	26.018	18.986
Less/ Add	DEPRECIATION/ AMORTISATION (F)		27.964	24.360	15.597
	PROFIT BEFORE TAX (E-F) (G)		1.683	1.658	3.389
Less	TAX (I)		0.946	1.509	1.424
	PROFIT AFTER TAX (G-I) (J)		0.737	0.149	1.965
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		18.252	17.782	15.470
	BALANCE CARRIED TO THE B/S		19.256	18.252	17.782
	Earnings Per Share (Rs.)		1.67	0.40	--

Particulars	31.03.2011
Sales Turnover (Approximately)	4000.000

Expected Sales (2011-2012 ) : Rs. 5000.000 millions

The above information has been parted by Mr. Vinod Maheshwari.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.02	0.00	0.38
Net Profit Margin (PBT/Sales)	(%)	0.05	0.11	0.66
Return on Total Assets (PBT/Total Assets}	(%)	0.32	0.46	1.08
Return on Investment (ROI) (PBT/Networth)		0.01	0.01	0.03
Debt Equity Ratio (Total Liability/Networth)		2.56	2.24	2.07
Current Ratio (Current Asset/Current Liability)		5.11	5.24	3.59

LOCAL AGENCY FURTHER INFORMATION

Form : 8

Corporate identity number of the company	U27101WB1982PLC035314
Name of the company	CMG DUCTILES LIMITED
Address of the registered office or of the principal place of business in India of the company	8 Bentick ST, Kolkata - 700001, West Bengal, INDIA
This form is for	Modification of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Others
Particular of charge holder	Allahabad Bank, Kolkata Main Branch, 14, India Exchange Place, Kolkata – 700001, West Bengal, INDIA
Nature of instrument creating charge	General Letter of Hypothecation Supplemental Letter of Mortgagor Confirming Deposit of Title Deeds
Date of instrument Creating the charge	29/12/2009
Amount secured by the charge	Rs. 298.500 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 and conditions of Sanction Letter of bank - presently for CC and WCDL- 2% below @PLR i.e. 10.00% p.a.w.m.r, however the same is subject to change. Terms of repayment The Working Capital shall be repayable on demand. 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 Bank Guarantee - 20% 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 pari passu 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. Other 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 charged (Including location of the property)	1. The Co. hereby hypo and charges by way of pari passu 1st charge over a) all stocks of RM, WIP, FG, such as C.I Casting, Manhole Covers , Pipe etc and also stores and spares and other current assets 2. b) all book-debts and other receivables c) All the Fixed Assets of the Company. whether movable / immovable such as P and M, Equipments, motor lorries , cars etc now being and lying at factory or any where 3. else both present and future Further the company created EMTD over d) Land measuring 107 satak be the same a little more or less situate and lying at Mouza - Kewta comprised in R.S 4. dag No. 5314/5994, L.R. Dag No.1222 under R.S. Khatian No.341 and R.S. dag no 5315,L.R. Dag No.1238,R.S. Khatian No. 366, 1967, 1968, L R Khatian No. 415 within the limits of Bandel Gram Panchayet, 5. J.L. No.7,Touzi No. 418 , 419 , P.S. Chinsura in the Dist. of Hooghly with superstructure
Date of instrument modifying the charge	13/08/2008
Particulars of the present modification	By present modification the overall limit has been enhanced from Rs. 195.000 millions to Rs. 298.500 millions The revised credit facilities are as follows:- Cash Credit Rs.249.500 millions Letter of Credit Rs.48.000 millions BG Rs.1.000 millions Other terms and condition save as modified above remain unchanged.

FIXED ASSETS :

· Land

· Tubewell

· Shed and Building

· Machineries

· Lab Equipments

· Electric Equipments

· Transformer

· Furnace

· Motor Car

· Dies and Pattern

· Furniture and Fixture

· Office Equipment

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. 45.21
UK Pound	1	Rs. 74.30
Euro	1	Rs. 64.40

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	3
--LIQUIDITY	1~10	4
--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		34

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.