MIRA INFORM REPORT

Report Date :

06.10.2011

IDENTIFICATION DETAILS

Name :	SIKKIM FERRO ALLOYS LIMITED
Registered Office :	108/A, Anand Bhawan, 1^st Floor, ‘C’ Wing, 163/165, V.P. Road, Opposite Sikka Nagar, Mumbai – 400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	04.03.1998
Com. Reg. No.:	11-113802
Capital Investment / Paid-up Capital :	Rs.13.225 Millions
CIN No.: [Company Identification No.]	U28910MH1998PLC113802
TAN No.: [Tax Deduction & Collection Account No.]	MUMS43397E
PAN No.: [Permanent Account No.]	AAGC81158
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Importers, Stockists and Suppliers of Stainless Steel, Carbon Steel, Alloy Steel, Nickel, Monel, Inconel, Titanium, Hastelloy, Copper, Brass, Aluminium, Duplex Steel , Lead in the shape of Pipes, Tubes, Rods, Sheets, Plates, etc.
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 1500000
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 and as per commitments. 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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
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 :	108/A, Anand Bhawan, 1^st Floor, ‘C’ Wing, 163/165, V.P. Road, Opposite Sikka Nagar, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-66109926/66109922/66109900
Fax No.:	91-22-66109924
E-Mail :	info@sikkimferroalloys.com/ prascs@gmail.com/ prascs12@yahoo.co.in

DIRECTORS

As on 30.09.2010

Name :

Mr. Jitendra Champalal Kanungo

Designation :

Director

Address :

Shripati Arcade, 31^st Floor, Flat-1, August Kranti Maidan, Nana Chowk, Mumbai – 400036, Maharashtra, India

Date of Appointment :

26.09.2003

DIN No.:

00447436

Other Directorship :

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
U27200MH1989PTC054265	Shruti Re-Rollers Private Limited	Director	20/09/1997	20/09/1997	10/06/2011	Active	NO
U28910MH1998PLC113802	Sikkim Ferro Alloys Limited	Director	26/09/2003	26/09/2003	-	Active	NO
U45101AP2006PTC050660	Gorlas Infrastructure Private Limited	Additional director	18/08/2009	18/08/2009	-	Active	YES
U72200AP2005PLC048391	Gorlas Techno Space Limited	Additional director	18/08/2009	18/08/2009	-	Active	YES
U65994MH1991PTC064193	Mane Finance Private Limited	Additional director	28/06/2011	28/06/2011	-	Active	NO

Name :

Mr. Hiralal Nagraj Kanungo

Designation :

Director

Address :

Manchhabai Bahavan, 3^rd Floor, 14 Nanubhai Desai Road, Mumbai – 400004, Maharashta, India

Date of Appointment :

01.01.2002

DIN No.:

00426255

Other Directorship :

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
U27200MH1989PTC054265	Shruti Re-Rollers Private Limited	Director	20/09/1997	20/09/1997	10/06/2011	Active	NO
U28910MH1998PLC113802	Sikkim Ferro Alloys Limited	Director	1/01/2002	1/01/2002	-	Active	NO

Name :

Mr. Kamlesh Manohar Kanungo

Designation :

Director

Address :

56/64, Gainson Building, 1^st Floor, Nanubhai Desai Road, Mumbai – 400004, Maharashtra, India

Date of Appointment :

04.03.1998

DIN No.:

00223181

Other Directorship :

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
U28910MH1998PLC113802	Sikkim Ferro Alloys Limited	Director	4/03/1998	4/03/1998	-	Active	NO
U74899DL2001PTC109665	Aarshabh Ferro Alloys Private Limited	Director	1/10/2001	1/10/2001	-	Active	NO
U51410MH2004PTC145350	Trisons Metalex Private Limited	Director	26/03/2004	26/03/2004	-	Active	NO
U45201MH2006PTC164873	Royal Bunglows Private Limited	Managing director	23/09/2006	23/09/2006	-	Active	YES
U45200MH1979PTC021090	Sanjay Construction And Finance Private Limited	Director	15/07/2008	15/07/2008	-	Active	YES
U45200MH2008PTC185624	Aahana Infrastructure Private Limited	Director	15/09/2008	15/09/2008	-	Active	YES
U45101AP2006PTC050660	Gorlas Infrastructure Private Limited	Additional director	18/08/2009	18/08/2009	-	Active	YES
U72200AP2005PLC048391	Gorlas Techno Space Limited	Additional director	18/08/2009	18/08/2009	-	Active	YES
L26940BR1991PLC007980	Lakshmi Cement & Ceramics Industries Limited	Director	25/09/2010	8/09/2010	-	Active	YES
U74120MH2010PTC209157	D3 Fashions Private Limited	Director	19/10/2010	19/10/2010	-	Active	NO
U67120MH1984PTC034339	Bikrampur Investments And Trading Private Limited	Additional director	1/11/2010	1/11/2010	-	Active	YES
U45202MH2010PTC204144	Buzzactive Infraprojects Private Limited	Director	1/06/2011	1/06/2011	-	Active	NO
U31109MH2008PTC178288	Kpc Hi-Tech Private Limited	Director	8/06/2011	8/06/2011	30/08/2011	Active	NO
U65994MH1991PTC064193	Mane Finance Private Limited	Additional director	28/06/2011	28/06/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Manohar P Kanungo	250100
Kamlesh M. Kanungo	499400
Rajendra K Mehta	100
Prakash M Sanghvi	100
Sunil N Parikh	100
Jamnalal S dokwal	100
Sudhir S Talati	100
Manohar Manak Alloys Private Limited, India	750000
Kanhaiyalal Sharma	347600
Priya Sharma	173800
Emrald Commercial Limited, India	120000
Global Capital Markets Limited, India	160000
Kaivwal Nain Saheny	120000
Dimple Kanungo	1100000
Javda India Impex Limited, India	700000
Alka Diamond Industries Limited	300000
Hema Trading company Private Limited, India	600000
Jai Shelters Private Limited	1818180
Wescon Finance and Leasing Private Limited, India	2428560
Megh Leasing and Investment Limited, India	3857130
Total	1322527

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	1.31
Bodies corporate	18.84
Directors or relatives of Directors	79.85
Total	100.00

BUSINESS DETAILS

Line of Business :

Importers, Stockists and Suppliers of Stainless Steel, Carbon Steel, Alloy Steel, Nickel, Monel, Inconel, Titanium, Hastelloy, Copper, Brass, Aluminium, Duplex Steel , Lead in the shape of Pipes, Tubes, Rods, Sheets, Plates, etc.

Products :

Item Code No.	Product Description
I.T.C. Chapter 72	Iron and Steel

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, Small and Medium Enterprises, Shivsagar Estate Branch, Annie Besant Road, worli, Mumbai – 400018, Maharashtra, India

· Union Bank of India, Mumbai Samachar Marg Branch, 66/80, Mumbai Samachar Marg, Fort, Mumbai – 400023, Maharashtra, India

· The South Indian Bank Limited, Nariman Point Branch, 8, Ground Floor, Embassy Centre, 207, Nariman Point, Mumbai – 400021, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Working Capital loan with Union Bank of India O/D	0.000	0.352
The South Indian Bank Limited (CC A/c)	85.023	0.000
Union Bank (Cash Credit Account) (Both these loans are Primarily Secured by hypothecation of stock and book debts and collaterally secured by equitable mortgage of personal immovable property of director and personal guarantee of all directors)	32.072	175.437
Total	117.095	175.789
Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Unsecured loans from Corporates	114.820	25.664
Total	114.820	25.664

Banking Relations :	--
Auditors :
Name :	Batliboit and Purohit Chartered Accountant
Address :	National Insurance Building, 204, Databhoy Naoraoji Road, Fort, Mumbai – 400001, Maharashtra, India
PAN.:	AAAFB0915F
Enterprises where the key management personnel/ and or their relatives are able to exercise significant influence :	· Trisons Impex · Reliance Stainless Steel · Liberty Trading Company · Movies N More India Private Limited · Aarshab Ferro Alloys Private Limited · Manohar Meta and Alloys · Manohar Manek Alloys Private Limited · Trisons Agencies

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1322527	Equity Shares	Rs.10/- each	Rs.13.225 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		13.225	6.940	5.121
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		367.493	139.102	81.474
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		380.718	146.042	86.595
LOAN FUNDS
1] Secured Loans		117.095	175.789	79.626
2] Unsecured Loans		114.820	25.664	403.066
TOTAL BORROWING		231.915	201.453	482.692
DEFERRED TAX LIABILITIES		0.065	0.023	0.000
TOTAL		612.698	347.518	569.287
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7.067	0.815	1.010
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.007
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	239.151	191.097	213.177
	Sundry Debtors	490.431	320.933	326.778
	Cash & Bank Balances	6.882	16.941	24.561
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	32.226	19.853	292.999
Total Current Assets		768.690	548.824	857.515
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	139.147	169.872	228.424
	Other Current Liabilities	0.000	15.888	49.431
	Provisions	23.932	16.391	11.430
Total Current Liabilities		163.079	202.151	289.285
Net Current Assets		605.611	346.673	568.230
MISCELLANEOUS EXPENSES		0.020	0.030	0.040
TOTAL		612.698	347.518	569.287

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	2073.410	1372.207	1257.025
		Other Income	1.180	0.364
		TOTAL (A)	2074.599	1372.571	1257.025
Less	EXPENSES
		Cost of Sales and Services	2012.090	1337.253	1221.318
		Administrative and Other Expenses	8.889	5.310	3.012
		Selling and Distribution Expenses	2.753	3.746	3.070
		TOTAL (B)	2023.732	1346.309	1227.400
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		50.867	26.262	29.625
Less	FINANCIAL EXPENSES (D)		28.569	11.749	15.793
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		22.298	14.513	13.832
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.000	0.000	0.000
	PROFIT BEFORE TAX (E-F) (G)		22.298	11.749	13.832
Less	TAX (I)		7.621	2.302	4.926
	PROFIT AFTER TAX (G-I) (J)		14.677	9.447	8.906
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		30.407	20.960	12.054
	BALANCE CARRIED TO THE B/S		45.084	30.407	20.960
	IMPORTS
	TOTAL IMPORTS		3.466	1.418	359.771
	Earnings Per Share (Rs.)		19.54	16.49	17.81

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.70	0.68	0.71
PAT / Sales	(%)	0.71	0.69	NA
Return on Total Assets (PBT/Total Assets}	(%)	2.87	2.14	1.611
Return on Investment (ROI) (PBT/Networth)		0.05	0.08	0.16
Debt Equity Ratio (Total Liability/Networth)		1.03	2.76	8.91
Current Ratio (Current Asset/Current Liability)		4.71	2.71	2.96

LOCAL AGENCY FURTHER INFORMATION

Note : The address of the registered office has shift from 65/773, Habib Building Room No.18, 1^st Floor, C P Tank Road, Mumbai – 400004, Maharashtra, India to present address 108 A, Anand Bhawan, 1^st Floor, ‘C’ Wing, 163/165, V.P. Road, Opposite Sikka Nagar, Mumbai – 400004, Maharashtra, India with effect from 06.12.2006

FORM 8

Corporate identity number of the company	U28910MH1998PLC113802
Name of the company	SIKKIM FERRO ALLOYS LIMITED
Address of the registered office or of the principal place of business in India of the company	108 A, Anand Bhawan, 1^st Floor, ‘C’ Wing, 163/165, V.P. Road, Opposite Sikka Nagar, Mumbai – 400004, Maharashtra, India Email Id : prascs12@yahoo.co.in
This form is for	Creation of charge
Type of charge	Book debts
Particular of charge holder	State Bank of India, Small and Medium Enterprises, Shivsagar Estate Branch, Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India Email Id : kamalax_saraf@hotmail.com
Nature of instrument creating charge	Agreement of Loan – Cum – Hypothecation (SME – 2)
Date of instrument Creating the charge	14.02.2011
Amount secured by the charge	Rs.200.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Working Capital: 5% Margin above the Base rate which is presently 7.60% p.a. present effective rate 12.60% p.a. calculated on daily products at monthly rests. Terms of repayment Repayable on demand Margin Finished Goods 25% Domestic receivables (120 days) 25% Letters of Credit 15% Extent and operation of the charge FBWC Rs.200.000 Millions LC (Rs.200.000 Millions) Total Limits Rs.200.000 Millions Other N.A.
Short particulars of the property charged (Including location of the property)	Hypothecation of Stock of Iron Scrap, SS Sheets, SS Coils, Iron Billets, Rods, Short and Long of Ferrous and Non Ferrous Metals and Bookdebts and other current assets
Charge identification number of the charge to be modified	10119331

FIXED ASSETS

· Air Conditioner

· Camera

· Chairs

· Computers

· Cutting Machine

· Fax Machine

· Hero Honda Two Wheeler

· Hp Printer

· HP Laser Jet 3055

· Laptop

· LG Monitors

· Merecedes Car

· Mobile Hand Set

· Office Equipments

· Panasonic – EPBX

· Panasonic – Plasma

· Sony LCD

· Computer Software

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.49.22
UK Pound	1	Rs.76.06
Euro	1	Rs.65.06

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	YES
--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.