MIRA INFORM REPORT

Report Date :

05.11.2011

IDENTIFICATION DETAILS

Name :	GARGI STEELCHEM PRIVATE LIMITED
Registered Office :	207, Vasant Vihar Complex, Near Basant Cinema, Chembur, Mumbai – 400074, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.04.1981
Com. Reg. No.:	11-024307
Capital Investment/ Paid-up Capital:	Rs.1.800 millions
CIN No.: [Company Identification No.]	U27106MH1981PTC024307
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturers of Metal Feeding Aids, Exothermic / Insulating sleeves and Hot Tops
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 20000
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. 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 :	207, Vasant Vihar Complex, Mercantile Apartments, Near Basant Cinema, Chembur, Mumbai – 400074, Maharashtra
Tel. No.:	91-22-25201596 / 7
Fax No.:	91-22-25202706 / 25203080
E-Mail :	gargi@bom2.vsnl.net.in vidhiconsultants@gmail.com
Factory 1 :	Plot No. 17/5, MIDC, Taloja, Raigadh District, Maharashtra, India.

DIRECTORS

(AS ON 30.09.2010)

Name :

Mrs. Geeta Vinod Kapur

Designation :

Director

Address :

18, Union Park, Chembur, Mumbai – 400071, Maharashtra, India

Date of Birth/Age :

11.02.1951

Date of Appointment :

01.08.1986

DIN No :

00976884

Name :

Mr. Jaspal Singh Dhariwal

Designation :

Whole time Director

Address :

201, ‘D’ Wing, Tolaram Apartments, Tolaram Nagar, Chembur, Mumbai – 400074, Maharashtra, India

Date of Birth/Age :

02.09.1951

Date of Appointment :

01.10.1989

DIN No :

00487000

Other Directorship :

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	U27106MH1981PTC024307	Gargi Steelchem Private Limited	Whole-time director	########	########	-	Active	NO
2	U51103CH1996PTC017973	Nova Shell Sands Private Limited	Director	4/4/1996	4/4/1996	-	Active	NO

Name :

Mr. Gaurav Vinod Kapur

Designation :

Chairman cum Managing Director

Address :

18, Union Park, Chembur, Mumbai – 400071, Maharashtra, India

Date of Birth/Age :

16.05.1979

Date of Appointment :

01-09-2004

DIN No :

00034397

Other Directorship :

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	U24110MH1977PTC019480	Gargi Chemicals Private Limited	Whole-time director	28/10/2003	28/10/2003	-	Active	NO
2	U27106MH1981PTC024307	Gargi Steelchem Private Limited	Director	1/9/2004	1/9/2004	-	Active	NO
3	U27310GJ2006PTC048174	Gargi Crystal Steel Chem Private Limited	Director	25/04/2006	25/04/2006	-	Active	NO
4	U24100MH1984PTC034540	Gaurav Infrabuild Private Limited	Director	20/11/2007	20/11/2007	-	Active	NO
5	U27107PN2007PTC131045	Gargi Magna Steelchem Private Limited	Director	29/11/2007	29/11/2007	-	Active	NO
6	U74999MH1988PTC046413	Gargi Huttenes Albertus Private Limited	Whole-time director	########	########	-	Active	NO
7	U65990MH1983PTC029733	Gargi Holdings Private Limited	Whole-time director	5/8/2011	5/8/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Vinod Kapur Geeta Vinod Kapur	1200
Vicky Kapur Namita Kapur	1200
Geeta Vinod Kapur Vinod Kapur	3600
Gaurav Vinod Kapur Vinod Kapur	3200
Namita Kapur Vicky Kapur	3600
Jagjit Singh Dhariwal Gargi Ahuwalia	200
Varun Kapur Vicky Kapur	3200
Vishwamitra Kapur – HUF Thro Karta Vinod Kapur	200
Vicky Kapur – HUF Thro Karta Vicky Kapur	800
Vinod Kapur – HUF Thro Karta Vinod Kapur	800
Total	18000

Equity Share Breakup

(AS ON 30.09.2010)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Exothermic / Insulating sleeves and Hot Tops

Products :

· Metal Feeding Aids

Product Description	Item Code No.
Foundry chemical Products namely Insulating and Exothermic Sleeves Shapes.	3824.9090

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	· Canara Bank, Chembur Main Branch, 70-A, Maharshi Dayanand Sawati Marg, Chembur, Mumbai – 400071 · HDFC Bank Limited · The Cosmos Co-Operative Bank Limited · Bank of Baroda , Vashi · Bank of Maharashtra
Facilities :	--

Banking Relations :	--
Auditors :
Name :	J. V. Sanghvi and Company Chartered Accountant
Address :	Office No.1, ‘A’ Wing, ‘Namrata’, 90 Feet Road, Building No.4, Pant Nagar, Ghatkopar (East), Mumbai-400075, Maharashtra, India.
Tel. No.:	91-22-32449541 / 25146937
E-Mail :	jvsanghviandco@yahoo.co.in
	AAGPS0434E

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
24500	Equity Shares	Rs. 100/- each	Rs. 2.450 millions
500	11% Non-cumulative Preference Shares	Rs. 100/- each	Rs. 0.050 Millions
	Total		Rs. 2.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18000	Equity Shares	Rs. 100/- each	Rs. 1.800 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		1.800	1.800	1.800
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5.115	9.727	9.941
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6.915	11.527	11.741
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.432	0.464	0.479
TOTAL		7.347	11.991	12.220
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.527	7.360	8.214
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.012	0.000	0.000
	Sundry Debtors	1.917	6.098	4.447
	Cash & Bank Balances	0.183	0.464	0.352
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.044	1.099	1.152
Total Current Assets		3.156	7.661	5.951
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.323	0.218	0.184
	Other Current Liabilities	0.723	0.701	0.708
	Provisions	1.290	2.111	1.053
Total Current Liabilities		2.336	3.030	1.945
Net Current Assets		0.820	4.631	4.006
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		7.347	11.991	12.220

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales and Processing Charges	11.967	12.368	12.584
		Other Income	0.014	0.016	0.016
		TOTAL	11.981	12.384	12.600
Less	EXPENSES
		Processing and Other Expenses	8.390	8.696	9.312
		Material Consumed	0.000	0.096	0.157
		TOTAL	8.390	8.792	9.469
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		3.591	3.592	3.131
Less/ Add	DEPRECIATION/ AMORTISATION		0.811	0.868	0.962
	PROFIT BEFORE TAX		2.780	2.724	2.169
Less	TAX		0.892	0.855	0.729
	PROFIT AFTER TAX		1.888	1.869	1.440
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.527	0.941	4.849
Add	Prior years Adjustments		0.002	0.015	0.005
Add	Transfer from General Reserve		4.500	0.000	0.000
Less	APPROPRIATIONS
		Transfer to General Reserve	0.200	0.200	4.300
		Interim / Final Dividend	5.580	1.800	0.900
		Corporate Tax on Dividend	0.922	0.298	0.153
	BALANCE CARRIED TO THE B/S		0.215	0.527	0.941
	Earnings Per Share (Rs.)		105	104	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	15.76	15.09	11.43
Net Profit Margin (PBT/Sales)	(%)	23.23	22.02	17.24
Return on Total Assets (PBT/Total Assets}	(%)	28.71	18.13	15.31
Return on Investment (ROI) (PBT/Networth)		0.40	0.24	0.18
Debt Equity Ratio (Total Liability/Networth)		0.34	0.26	0.17
Current Ratio (Current Asset/Current Liability)		1.35	2.53	3.06

LOCAL AGENCY FURTHER INFORMATION

OPERATION:

The Company continued to earn processing charges income, however there was reduction in quantum of processing work due to short supply of labour resulting in lower processing.

FROM 8:

Name of the company	GARGI STEELCHEM PRIVATE LIMITED 207, Vasant Vihar Complex, Opposite Mercantile Apartments, Chembur, Mumbai-400071, Maharashtra, India.
Presented By	GARGI STEELCHEM PRIVATE LIMITED
1) Date and description of instrument creating the change	Deed of Hypothecation dated 28.04.2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs.3.200 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	Hypothecation of: 1. Various items of machinery to be purchased 2. 32 nos. of various machineries as per list attached to the aforesaid deed Stoed at factory premises at 17/45, MIDC, Village Navade, Taloja, Raigad District, Maharashtra, India.
4) Gist of the terms and conditions and extent and operation of the charge.	The aforesaid amount is towards Term Loan and repayable in 60 months installments of which 59 EMIs are of Rs.0.053 million each and the 60^th installment of Rs.0.073 million commencing from 28.01.2001 Interest – 10.5% p.a.
5) Name and Address and description of the person entitled to the charge.	Canara Bank, Chembur (Main Branch), 70-A, Maharashi Dayanand Saraswati MArg, Chembur. Mumbai-400071, Maharashtra, India.
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not applicable

FIXED ASSETS:

· M.I.D.C. Lease Land

· Factory Building

· Residential Flat

· Plant and Machinery

· Electric Installation

· Office Equipment

· Factory Equipment

· Laboratory Equipment

· Furniture and Fixture

· Bicycle

· Motor Car

· Computer

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.49.08
UK Pound	1	Rs.78.65
Euro	1	Rs.67.79

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	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	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.