MIRA INFORM REPORT

Report Date :

28.09.2011

IDENTIFICATION DETAILS

Name :	MTC BUSINESS PRIVATE LIMITED

Registered Office :	301-302, Vertex Vikas, A Wing, Opposite Railway Station, Andheri (East), Mumbai – 400069, Maharashtra

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	21.12.2000

Com. Reg. No.:	11-130172

Paid-up Capital :	Rs. 95.040 Millions

CIN No.: [Company Identification No.]	U51420MH2000PTC130172

TAN No.: [Tax Deduction & Collection Account No.]	MUMM14831F

PAN No.: [Permanent Account No.]	AACCM4795M

Legal Form :	Private Limited Liability Company

Line of Business :	Trader of Metal Scrap (Ferrous and Non Ferrous Metal Steel and Iron)

No. of Employees :	35 (approximately) [In Office]

RATING & COMMENTS

MIRA’s Rating :

A (64)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 2200000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is an established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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 – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

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. Digambar Majalikar
Designation :	Senior Accountant
Contact No.:	91-9769009113

LOCATIONS

Registered Office :	301-302, Vertex Vikas, A Wing, Opposite Railway Station, Andheri (East), Mumbai – 400 069, Maharashtra
Tel. No.:	91-22-67872916 / 26843624/ 67872900
Mobile:	91-9769009113 (Mr. Digambar)
Fax No.:	91-22-26844681/ 67410875
E-Mail :	mtcb@vsnl.net info@mtcgroup.in mehtaco@bom3.vsnl.net.in accounts@mtcgroup.in digambar@mtcgroup.in mtcimports@gmail.com
Website:	http://www.mtcgroup.in
Area :	2000 sq.ft
Location :	Rented [Note: As informed by Mr. Digambar, they are about to shift their office as the current premises is rented premises. New address is not disclose yet.]

Warehouse:	Plot No.44 to 47, Jawahar Co-op,. Industrial Estate, Village Kamothe, Kalamboli, District, Raigad, Maharashtra, India
Tel No.:	91-22-27420912/27423755
Fax No.:	91-22-27423855
Email :	yard@mtcgroup.in
Area :	40000 sq. ft.
Location :	Rented

Branch :	1, Tulsi Avenue, Taluka Daskori, Aslali, Ahmedabad, India
Tel No.:	91-2178-261401/ 261286
Fax No.:	91-2178-261401
Email :	mtcahd@mtcgroup.in
Area :	20000 sq. ft.
Location :	Rented

DIRECTORS

As On : 30.09.2010

Name :

Mr. Narendra Mehta

Designation :

Director

Address :

601-602, A Wing, Jay Shankar Krupa Housing Society Limited, Old Nagardas Road, Andheri (East), Mumbai – 400069, Maharashtra, India

Date of Birth/Age :

10.12.1965

Qualification :

B. Com

Experience :

25 years

Date of Appointment :

21.12.2000

DIN No :

00179992

Other Directorship:

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	U27320KA1992PTC013273	MEHTA INDUSTRIAL SUPPLIERS PRIVATE LIMITED	Director	22/06/1992	22/06/1992	-	Under Process of Striking off	NO
2	U51420MH2000PTC130172	MTC BUSINESS PRIVATE LIMITED	Director	21/12/2000	21/12/2000	-	Active	NO
3	U51502MH2004PTC146683	MADHUBAN MOTORS PRIVATE LIMITED	Managing director	01/06/2004	01/06/2004	-	Active	NO
4	U27320KA2004PTC034057	M S METALS AND STEELS PRIVATE LIMITED	Director	06/03/2006	06/03/2006	-	Active	NO

Name :

Mr. Sanjay Mehta

Designation :

Director

Address :

501-502, A Wing, Jay Shankar Krupa Housing Society Limited, Old Nagardas Road, Andheri (East), Mumbai – 400069, Maharashtra, India

Date of Birth/Age :

14.05.1968

Qualification :

B. Com

Experience :

20 years

Date of Appointment :

02.04.2001

DIN No :

00541528

Other Directorship:

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	U51420MH2000PTC130172	MTC BUSINESS PRIVATE LIMITED	Director	02/04/2001	02/04/2001	-	Active	NO
2	U51502MH2004PTC146683	MADHUBAN MOTORS PRIVATE LIMITED	Director	01/06/2004	01/06/2004	-	Active	NO
3	U27320KA2004PTC034057	M S METALS AND STEELS PRIVATE LIMITED	Director	01/06/2004	01/06/2004	-	Active	NO
4	U27320KA1992PTC013273	MEHTA INDUSTRIAL SUPPLIERS PRIVATE LIMITED	Director	21/04/2006	21/04/2006	-	Under Process of Striking off	NO

Name :

Mr. Lalit Baliya

Designation :

Director

Address :

C-302, Gajalaxmi Apartment, Kolsawala Compound, Old Nagardas Road, Andheri (East), Mumbai – 400069, Maharashtra, India

Date of Birth/Age :

26.10.1967

Qualification :

B.Com

Experience :

16 years

Date of Appointment :

03.03.2007

DIN No :

00282727

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	U51420MH2000PTC130172	MTC BUSINESS PRIVATE LIMITED	Director	03/03/2007	03/03/2007	-	Active	NO
2	U99999PN1997PTC109372	MADHUBAN TRADE-STEELS PRIVATE LIMITED	Additional director	01/08/2007	01/08/2007	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Digambar Majalikar
Designation :	Senior Accountant

Name :	Mr. Anil
Designation :	Chief Financial Officer

Name :	Mr. Mihir Doshi and Associates
Designation :	Company Secretary
Address :	B / 11, Ground Floor, Seagull C.H.S.L, Dadiseth Road, Malad (West), Mumbai – 400 064, Maharashtra, India

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON : 30.09.2010

Names of Shareholders		No. of Shares
Maganlal Mehta		3202000
Narendra Mehta		802000
Sanjay Mehta		800000
Manoj Mehta		4700000

Total		9504000

AS ON : 30.09.2010

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

BUSINESS DETAILS

Line of Business :

Trader of Metal Scrap (Ferrous and Non Ferrous Metal Steel and Iron)

Products :

Iron
Steel
Other Scrap Products

ITC CODE	Product Description
NA	Ferrous and Non Ferrous Metals and Scraps

Imports :

Products :

Metal Scrap

Countries :

UK
USA
Dubai
Some African Countries

Terms :

Selling :

Cash, Credit

Purchasing :

L/C, Cash, Credit (90% - Import, 10% - Location Cash)

GENERAL INFORMATION

Customers :

Retailers
OEM’s
End Users

No. of Employees :

35 (approximately) [In Office]

Bankers :

Union Bank of India

Andheri (East) Branch, Mayani Manor, Sir M V Road, Andheri (East), Mumbai – 400069, Maharashtra, India

The Cosmos Co-Operative Bank Limited

Vile Parle Branch, 45, Saraswati Niwas, Hanuman Road, Vile Parle (E), Mumbai-400057, Maharashtra, India

HDFC Bank Limited

Facilities :

Non Fund – Rs. 2000.000 Millions, Fund – Rs. 500.000 Millions (Union Bank of India)

SECURED LOANS	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Borrowings for Working Capital (from Banks, including interest Accrued and Due)	320.878	346.863
Other Loans Liability for Vehicles purchased under Hire purchased Agreement.
a) HDFC Bank Limited - Mercedez Car loan A/c no.15942986 (Installment due within one year - 1305153/-, Previous yr- NIL/-)	3.862	0.000
b) HDFC Bank Limited - Toyota Corolla Car loan A/c no.13881714 (Installment due within one year - 374409.52/-, Previous yr- 330404.49)	0.615	0.946
TOTAL	325.355	347.809

UNSECURED LOANS	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Promoters, Their Relatives and Friends	14.989	20.857
Inter Corporate Deposits	27.500	135.000
TOTAL	42.489	155.857


Banking Relations :	--

Auditors :
Name :	A.T. Jain and Company S. T. Jain - Partner Chartered Accountant
Address :	212, Rewa Chambers, 31 New Marine Lines, Mumbai – 400020, Maharashtra
Tel. No.:	91-22-22035151/ 22035252
Fax No.:	91-22-22083820
E-Mail :	atjain@vsnl.com

Partnership Firm :	Mehta Trading Corporation M M Ceramics and Ferro Alloys Madhuban Industries

Group Company :	Madhuban Motors Private Limited M M Ceramics and Ferro Alloys M S Metals and Steel Private Limited

Subsidiaries :	Multi Metals Link SZE, UAE MGK International Inc, US Multi Trade Links (UK) Limited Metals Links Private Limited

CAPITAL STRUCTURE

As On : 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount

10000000	Equity Shares	Rs. 10/- each	Rs. 100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

9504000	Equity Shares	Rs. 10/- each	Rs. 95.040 millions

Note:

(Of the above 90,28,800 no of equity shares were allotted as fully paid up Bonus Shares by Capitalisation of Profits of Earlier Years)

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		95.040	47.520	4.752
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		475.968	380.456	204.752
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		571.008	427.976	209.504
LOAN FUNDS
1] Secured Loans		325.355	347.809	328.653
2] Unsecured Loans		42.489	155.857	325.330
TOTAL BORROWING		367.844	503.666	653.983
DEFERRED TAX LIABILITIES		0.784	0.593	0.740

TOTAL		939.636	932.235	864.227

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		42.005	33.608	27.915
Capital work-in-progress		7.951	4.724	0.000

INVESTMENT		3.084	5.329	3.216
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	247.435	138.145	150.313
	Sundry Debtors	540.992	375.804	405.543
	Cash & Bank Balances	435.481	382.341	94.271
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	681.163	563.466	579.857
Total Current Assets		1905.071	1459.756	1229.984
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	907.398	391.209	256.094
	Other Current Liabilities	29.044	65.089	71.615
	Provisions	82.033	114.883	69.179
Total Current Liabilities		1018.475	571.181	396.888
Net Current Assets		886.596	888.575	833.096

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		939.636	932.235	864.227

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	6872.900	7688.600	4729.200
		Other Income	90.200
		TOTAL	6963.100	7688.600	4729.200

Less	EXPENSES
		Office Expenses
		Administrative Expenses	6734.800	7353.500	4537.700
		Advertising Expenses
		TOTAL	6734.800	7353.500	4537.700

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		228.300	335.200	191.500

Less	FINANCIAL EXPENSES		NA	NA	NA

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		NA	NA	NA

Less/ Add	DEPRECIATION/ AMORTISATION		2.900	2.400	2.300

	PROFIT BEFORE TAX		225.400	332.800	189.200

	TAX		82.191	113.200	68.900

	PROFIT AFTER TAX		143.200	219.600	120.300

	IMPORTS VALUE		50809.995	4590.488	2271.030

	Earnings Per Share (Rs.)		16.42	227.06	253.20

Particulars

31.03.2011

Sales Turnover (approximately)

8000.000

The above information has been parted by Mr. Digambar Majalikar

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.06	2.98	2.54

Net Profit Margin (PBT/Sales)	(%)	0.37	NA	NA

Return on Total Assets (PBT/Total Assets}	(%)	11.58	22.29	21.97

Return on Investment (ROI) (PBT/Networth)		0.39	0.78	0.90

Debt Equity Ratio (Total Liability/Networth)		2.43	2.51	5.02

Current Ratio (Current Asset/Current Liability)		1.87	2.56	3.10

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE REVIEW :-

Sales of the Company for the year ended 31.03.2010 were Rs 6872.900 millions, decreased by 10.13 % due to deep fall in prices. However, volume wise sales had been increased from 3, 44,087 MTS to 4, 18,315 MTS i.e. by 21.52 % as compared to previous year.

Contingent Liabilities not provided for:

Rs. In Millions

	Particulars	2009-10	2008-09

1)	Guarantee given in favour of Commissioner of	1.000	1.000
	Sales Tax (Ahmedabad)
2)	Disputed liability in respect of income tax.	-	0.247
3)	L/C received from Customer Discounted	175.307	799.555

FORM 8

Corporate identity number of the company	U51420MH2000PTC130172
Name of the company	MTC BUSINESS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	301-3012, Vertex Vikas, A Wing, Opposite Railway Station, Andheri (East), Mumbai – 400 069, Maharashtra, India
This form is for	Modification of charge
Type of charge	Book Debts Movable Property
Particular of charge holder	Union Bank of India Andheri (East) Branch, Mayani Manor, Sir M V Road, Andheri (East), Mumbai – 400069, Maharashtra, India
Nature of instrument creating charge	Supplementary Agreement to hypothecation agreement of goods and debts
Date of instrument Creating the charge	10.09.2009
Amount secured by the charge	Rs. 1550.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Usual Terms of repayment On Demand Margin As per sanction terms Extent and operation of the charge To secure import/ inland (DP/ DA 120 Days) facility of Rs 1550.000 Millions W/W buyers credit 90 days facility of (Rs 1550.000 Millions) granted by the bank to the company.
Short particulars of the property charged (Including location of the property)	That the hypothecated goods, book debts and movable property covered by the principal hypothecation agreement shall continue to be a security for the enhanced import/ land (DP/ DA 120 Days) Facility of Rs 1550.000 Millions W/W buyers credit 90 days facility of Rs (1550.000 Millions) granted by the bank to the company on Pari Passu basis with other lenders
Charge identification number of the charge to be modified	80018324
Date of instrument modifying the charge	19.02.2009
Particulars of the present modification	Vide this modification an additional sum of Rs 900.000 Millions has been granted by the bank thereby enhancing the import/land (DP/ DA 120 Days) facility from Rs 1550.000 Millions and that the hypothecated goods, book debts, and movable property covered by the principal hypothecation agreement shall continue to be a security for the enhanced import/land (DP/ DA 120 Days) facility of Rs 1550.000 Millions granted by the bank to the company on Pari Passu basis with other lenders.

FIXED ASSETS

Buildings
Computers
Electrical Installation
Furniture and Fixtures
Land
Motor Vehicles
Office Equipments
Plant and Machinery
Trucks and Trolly

TRADE REFERENCE:

Mahindra and Mahindra
Crompton Greaves Limited

WEB SIDE DETAILS

OVER VIEW

Subject engages in the trade and import of ferrous and non-ferrous scarps and metals, and ferro alloys. It offers pure nickel, bulk alloys, noble alloys, cathodes, ferro silicone, ferro vanadium, ferro molybdenum, HMS scrap, shredded scrap, cast iron scrap, CRCA scrap, M.S. scrap, and silicon scrap. The company serves automobile, general engineering, wind power equipments, cement, forging, bearing, and tube industries. Subject was founded in 2000 and is based in Mumbai, India.

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.49.18
UK Pound	1	Rs.76.65
Euro	1	Rs.66.63

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		64

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.

MIRA INFORM REPORT

247.435

138.145

150.313

540.992

375.804

405.543

435.481

382.341

94.271

0.000

0.000

0.000

681.163

563.466

579.857

1905.071

907.398

29.044

65.089

71.615

82.033

114.883

69.179

1018.475

571.181

396.888

886.596

888.575

833.096

2.06

2.98

0.37

11.58

22.29

0.39

0.78

2.43

2.51

5.02

1.87

2.56

3.10

Unit