MIRA INFORM REPORT

Report Date :

22.11.2011

IDENTIFICATION DETAILS

Name :	BHALARIA METAL CRAFT PRIVATE LIMITED
Registered Office :	401, Soni House, 4^th Floor, 19 Suvarna Nagar Co-op Housing Society, 4^th Road, JVPD Scheme, Vile Parle (West), Mumbai – 400 056, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	02.09.1994
Com. Reg. No.:	11-80759
Capital Investment / Paid-up Capital :	Rs.24.300 Millions
CIN No.: [Company Identification No.]	U27200MH1994PTC080759
TAN No.: [Tax Deduction & Collection Account No.]	MUMB14015B / MUMB11201B
PAN No.: [Permanent Account No.]	AAACB1703A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Stainless Steel Products of Flatware and Hollow Ware
No. of Employees :	1000 + (Approximately)

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 180000
Status :	Good
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well – established and reputed company having satisfactory track. Financial position is very satisfactory. Trade relations are fair. Payments are correct and as per commitments. The company can be considered good for any normal 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

INFORMATION PARTED BY

Name :	Mr. Rama Krishnan
Designation :	Export Manager
Contact No.:	91-22-28198226
Date :	15.11.2011

LOCATIONS

Registered/ Corporate Office :	401, Soni House, 4^th Floor, 19 Suvarna Nagar Co-op Housing Society, 4^th Road, JVPD Scheme, Vile Parle (West), Mumbai – 400 056, Maharashtra, India
Tel. No.:	91-22-28198226/ 7/ 26256526
Mobile No.:	91-9920044722 (Mr. Vijay Bhalaria)
Fax No.:	91-22-28198227
E-Mail :	bhalaria@hotmail.com accounts@bulariametals.com
Website :	http://www.bhalaria.com http://www.bhalariametal.com
Area :	Owned
Administrative Office :	Plot K-J, Todi Industrial Estate, Radha Swami Road, Bhayander (West), Thane -401101, Maharashtra, India
Tel. No.:	91-22-28140913 / 28198234 / 26 / 28198226 / 34
Fax No.:	91-22-28198227 / 2625 6526
E-Mail :	exports@bhalariametal.com
Websites:	www.bhalriametal.com
Area :	10000 Sq.fts
Location :	Owned
Branch :	1, 2 Raj Asman, Ground Floor, Swami Shree Satyanandji Maharaj Marg, Near Vaikunth Bhoomu, Bhayander(W), Thane – 401101, Maharashtra, India
Tel. No.:	91-22-28198266/233
Fax No.:	91-22-28140914

DIRECTORS

AS ON 20.09.2010

Name :	Mr. Neel Hitendra Bhalaria
Designation :	Director
Address :	401, Soni House, 4^th Floor, 19 Suvarnanagar Co-op HSG Society Limited , 4^th Road, JVPD Scheme, Vile Parle West, Mumbai – 400 056, Maharashtra, India
Date of Birth/Age :	10.09.1986
Date of Appointment :	01.11.2007
Name :	Mr. Hitendra Bhalaria
Designation :	Chairman and Managing Director
Address :	401, Soni House, 4^th Floor, 19 Suvarnanagar Co-op HSG Society Limited , 4^th Road, JVPD Scheme, Vile Parle West, Mumbai – 400 056, Maharashtra, India
Date of Birth/Age :	23.07.1960
Date of Appointment :	02.09.1994
Name :	Mr. Janak Bhalaria
Designation :	Director
Address :	8, Madhu Parag 69 Swastik Society, Vile Parle West, Mumbai - 400 056, Maharashtra, India
Date of Birth/Age :	04.09.1965
Date of Appointment :	02.09.1994
Name :	Ms. Bhavana Hitendra Bhalaria
Designation :	Director
Address :	401, Soni House, 4^th Floor, 19 Suvarnanagar Co-op HSG Society Limited , 4^th Road, JVPD Scheme, Vile Parle West, Mumbai – 400 056, Maharashtra, India
Date of Birth/Age :	09.06.1963
Date of Appointment :	02.09.1994

KEY EXECUTIVES

Name :	Mr. Rama Krishnan
Designation :	Export Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 20.09.2010

Names of Shareholders	No. of Shares
Hitendra Bhalaria	411358
Janak Bhalaria	1135236
Bhavana Hitendra Bhalaria	799248
Neel Hitendra Bhalaria	42214
Hriday Bhalaria	42004
Total	2430060

AS ON 20.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Stainless Steel Products of Flatware and Hollow Ware
Products :	· Stainless Steel Kitchenware · Stainless Steel Cooking Utensils · Stainless Steel Tongs · Stainless Steel Bowls · Stainless Steel Goblets · Stainless Steel Platter Stand · Stainless Steel Jugs · Stainless Steel Ice Bucket · Stainless Steel Bathroom Accessories · Stainless Steel Office Accessories · Stainless Steel Fabrication Products
Exports :
Products :	Stainless Still Product
Countries :	· France · Germany · USA · UK
Terms :
Selling :	L/C, Cash and Credit (30-60 days)
Purchasing :	Cash and Credit (30-60 days)

GENERAL INFORMATION

Customers :

OEM’s and Industries

No. of Employees :

1000 + (Approximately)

Bankers :

· Citi Bank NA,

Citigroup Centre, Bandra Kurla Complex, G Block, Bandra East, Mumbai-400051, Maharashtra, India

· Canara Bank,

Overseas Branch, 211, Dalamal Tower, Nariman Point, Mumbai-400021, Maharashtra, India

Facilities :

Secured Loan	31.03.2010 (Rs. in Millions)	31.03.2009 (Rs. in Millions)
City Bank (Pre Shipment and Post Shipment)	25.454	25.421
Canara Bank Cash Credit (Pre Shipment and Post Shipment)	85.738	0.000
Citi Bank Cash Credit (Secured against mortagage of factory shed and hypothecation of stock and plant and machinery)	0.000	4.206
Citi Bank Term Loan (Secured against machinery)	0.000	4.215
ICICI Limited Term Loan	0.000	0.002
HDFC Car Loan	1.269	0.000
Total	112.461	33.844

Banking Relations :	--
Auditors :
Name :	C N Shah and Associates Chartered Accountants
Address :	131/133, Old Hanuman Lane Corner, Kalbadevi Road, 2^nd Floor, Room No.28, Mumbai – 400 002, Maharashtra, India
Tel. No.:	91-22-22071618
Mobile No.:	91-9820050880
Name :	Jay Mathuria and Associates Chartered Accountants
Memberships :	· Engineering Export Promotion Council (EEPC) · Export Promotion Council for Handicraft (EPCH) · Mira Bai Small Scale Industries Associates · All India Stainless Steel Industries Associates · Stainless Steel Merchants Associates, Mumbai · Audhyogik Aghadhi
Associates/Subsidiaries :	· Bhalaria Metal Forming, Surat, Gujarat, India

CAPITAL STRUCTURE

AS ON 20.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2430060	Equity Shares	Rs.10/- each	Rs.24.300 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		24.300	12.150	12.150
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		22.697	22.780	22.666
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		46.997	34.930	34.816
LOAN FUNDS
1] Secured Loans		112.461	33.844	38.871
2] Unsecured Loans		132.848	81.657	64.451
TOTAL BORROWING		245.309	115.501	103.322
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		292.306	150.431	138.138
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		102.421	45.472	35.571
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.039	0.039	0.034
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	158.528	98.303	88.534
	Sundry Debtors	45.257	33.812	29.247
	Cash & Bank Balances	10.395	0.534	2.388
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	43.489	22.587	23.195
Total Current Assets		257.669	155.236	143.364
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors and Other Current Liabilities	36.619	29.604	30.762
	Provisions	31.204	20.712	10.069
Total Current Liabilities		67.823	50.316	40.831
Net Current Assets		189.846	104.920	102.533
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		292.306	150.431	138.138

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	438.585	406.311	351.153
		Other Income	27.011	(3.976)	26.765
		TOTAL (A)	465.596	402.335	377.918
Less	EXPENSES
		Office Expenses
		Administrative Expenses	425.989	386.084	352.910
		Advertising Expenses
		TOTAL (B)	425.989	386.084	352.910
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		39.607	16.251	25.008
Less	FINANCIAL EXPENSES (D)		9.867	7.055	6.774
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		29.740	9.196	18.234
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.439	6.116	5.282
	PROFIT BEFORE TAX (E-F) (G)		21.301	3.080	12.952
Less	TAX (H)		8.006	1.695	4.878
	PROFIT AFTER TAX (G-H) (I)		13.295	1.385	8.074
	Earnings Per Share (Rs.)		10.85	1.14	NA

Particulars	31.03.2011
Sales Turnover (Approximately)	580.000 (Due to Expansion of Business

Expected Sales (2011-12): Rs.800.000 Millions.

The above information has been parted by Mr. Ramakrishnan.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.85	0.34	2.14
Net Profit Margin (PBT/Sales)	(%)	4.85	0.76	3.69
Return on Total Assets (PBT/Total Assets}	(%)	5.92	1.53	7.23
Return on Investment (ROI) (PBT/Networth)		0.45	0.09	0.37
Debt Equity Ratio (Total Liability/Networth)		6.66	4.75	4.14
Current Ratio (Current Asset/Current Liability)		3.80	3.08	3.51

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	------
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last two years	Yes
Profitability for last three years	No
Reasons for variation <> 20%	Yes
Estimation for coming financial year	Yes
Capital in the business	No
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payments Terms	Yes
Export/ Imports Details (If applicable)	Yes
Market Information	------
Litigations that the firm/ Promoters Involved in	------
Banking details	Yes
Banking Facility Details	No
Conduct of the Banking Account	------
Buyer visit details	------
Financials, if provided	No
Incorporation details is applicable	------
Last Accounts filed at ROC	------
Major Shareholders, if available	------

NOTE:

The registered office of the company has been shifted 8 Madhum Parag, 69 Swastikwastik Society, Vile Pale West, Mumbai, Maharashtra, India from to the present address w.e.f. 30.03.2009

FINANCIAL ANALYSIS:

During the year the company has registered sale of Rs. 438.585 Millions (Previous Year Rs. 406.311 millions) thereby recording an increase in sales by about 7.20% as compared to previous year. The Gross Profit for the year was at Rs. 39.608 Laos compared to Rs. 16.251 Millions during the previous year. On account of increase in the volume of business the interest cost on working capital has increased to Rs. 9.867 Millions as against Rs. 7.055 millions in the previous year. The company has earned net Profit of Rs.13.295 millions (Previous year Rs. 1.385 Millions) after providing Rs.8.439 Millions for Depreciation (previous year Rs. 6.116 Millions) and Rs.8.006 Millions for taxation (previous year Rs. 1.695 Millions).

The gratifying part of the performance was the accomplishment in a year which saw recessionary conditions in several countries, where the Company has presence, at a time of high volatility in raw material prices and exchange rate.

PROSPECTS FOR THE YEAR 2010-11:

The Company will continue to focus on expansion of its production facilities at the newly set up Plant at Tembhi, Umbergaon Taluka, Gujarat and augmenting the product lines. The Company is well-positioned for the long term, with its proven business strategy that has withstood the challenges of global economic environment. However, in the recent past, raw material prices have tended to rise leading to cost escalation.

The company has so far managed to sustain the difficult conditions arising out of the inflationary pressures by taking prudent decisions at appropriate times. The company continues to endeavour developing new products which has helped to create new customers overseas. The directors are confident that during the current year also the company will be able to sustain the adverse conditions.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	10203613
Corporate identity number of the company	U27200MH1994PTC080759
Name of the company	BHALARIA METAL CRAFT PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	401, Soni House, 4^th Floor, 19 Suvarna Nagar Co-op Housing Society, 4^th Road, JVPD Scheme, Vile Parle (West), Mumbai – 400 056, Maharashtra, India
Type of charge	Movable Property (not being pledge)
Particular of charge holder	Canara Bank, Overseas Branch, 211, Dalamal Tower, Nariman Point, Mumbai-400021, Maharashtra, India
Email	mcity1589@canbank.co.in
Nature of description of the instrument creating or modifying the charge	a) Supplemental Common Hypothecation Agreement. b) Term Loan Agreement.
Date of instrument Creating the charge	29.06.2010
Amount secured by the charge	Rs.167.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest PC/PCFC/FDB/BRD: As applicable to export finance. Term Loan : @ 14% p.a. floating. Terms of Repayment PC/PCFC/FDB/BRD: Repayable on Demand. Term Loan : To commence from January'2011 in 28 stepped up quarterly installments as under: a) 5 quarterly installments of Rs.2.000 millions each. b) 4 quarterly installments of Rs.2.500 millions each. c) 8 quarterly installments of Rs.3.500 millions each. d) 4 quarterly installments of Rs.4.000 millions each. e) 4 quarterly installments of Rs.4.500 millions each. f) 3 quarterly installments of Rs.6.000 millions each. Margin PC/PCFC : 10% FDB/BRD : Nil Term Loan : 29.38% (upfront) Extent and Operation of the charge The charge is to operate as security, by way of first exclusive charge, for the due repayment of aggregate credit facilities of Rs.167.500 Millions together with interests, additional interests, costs, charges, expenses and all other moneys payable by the Company to the Bank from time to time in terms of sanction. Others Facility Limits (Rs. in Millions ) Existing Revised ---------- ----------- ----------- PC/PCFC/FDB/BRD (Sight) 100.000 67.500 Term Loan --- 100.000 ----------- ---------- Total 100.000 167.500
Short particulars of the property charged	Hypothecation of entire stocks and receivables of the Company. Hypothecation of other fixed assets of the Company viz: Plant / machinery, dies and tools, furniture and fixture, office equipments and computers lying at Mumbai.
Particulars of the present modification	The amount secured by the charge has been enhanced from Rs.100.000 millions to Rs.167.500 millions. Facility Existing Revised [Limits (Rs. in Millions )] ---------- ----------- ----------- PC/PCFC/FDB/BRD(Sight) 100.000 67.500 Term Loan --- 100.000 ----------- ---------- Total 100.000 167.500

FIXED ASSETS:-

· Factory Building/ Office Premises

· Plant and Machinery, Dies Tools

· Furniture and Fixtures

· Office Equipment

· Computer

· Vehicle Transport

· Motor Car

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.51.35
UK Pound	1	Rs.80.97
Euro	1	Rs.69.26

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	NO
--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.