MIRA INFORM REPORT

Report Date :

18.08.2012

IDENTIFICATION DETAILS

Name :	ARFIN INDIA LIMITED
Registered Office :	B 302, 3^RD Floor, Pelican House, Near Natraj Cinema, Gujarat Chamber of Commerce Building, Ashram Road, Ahmedabad – 380009, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	10.04.1992
Com. Reg. No.:	04-017460
Capital Investment / Paid-up Capital :	Rs. 18.677 Millions
CIN No.: [Company Identification No.]	L65990GJ1992PLC017460
TAN No.: [Tax Deduction & Collection Account No.]	AHMA05982E
PAN No.: [Permanent Account No.]	AAECA1211A
Legal Form :	A Public Limited Liability Company. The company’s shares are listed on the stock exchanges.
Line of Business :	Manufacturer of Aluminium Tubes and Aluminium Wire Rods.
No. of Employees :	110 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (14)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Very Small Company
Payment Behaviour :	Slow and Delayed
Litigation :	Clear
Comments :	Subject is a very small company in its field. Its scale of activities are limited. It has earned very minimal profits during 2011. Business is active. Payments are reported to be slow and delayed. The company can be considered for small business dealings on a safe and secured 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.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Ashit
Designation :	Head in Finance
Contact No.:	91-79-26583792
Date :	17.08.2012

LOCATIONS

Registered Office :	B 302, 3^rd Floor, Pelican House, Near Natraj Cinema, Gujarat Chamber of Commerce Building, Ashram Road, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-26583791/ 26583792
Fax No.:	91-79-26583791
E-Mail :	mahendra@arfin.co.in rinkesh_1983@yahoo.co.in ashit@arfin.co.in
Website :	http://www.arfin.co.in
Location :	Owned
Factory 1 :	118/ 1 Ravi Estate, Near Restige Hotel, Chatral, Gujarat, India
Tel. No.:	91-2764-232620
E-Mail :	jatin@arfin.co.in info@arfin.co.in

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Mahendrakumar Rikhavchand Shah

Designation :

Director

Address :

Khandwala Bunglow, Near Post Office, Dharam Nagar, Sabarmati Ahmedabad - 380 005, Gujarat, India

Date of Birth/Age :

09.03.1963

Qualification :

Graduate

Date of Appointment :

30.09.1998

DIN No.:

00182746

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U65910GJ1995PLC025589	ARFIN ENTERPRISES LIMITED	Director	25/04/1995	25/04/1995	-	Active	NO
2	U65910GJ1995PLC026735	ARFIN CAPITAL LIMITED	Director	17/07/1995	17/07/1995	-	Active	NO
3	L65990GJ1992PLC017460	ARFIN INDIA LIMITED	Director	30/09/1998	30/09/1998	-	Active	NO
4	U27100GJ1996PLC030244	SAKAR INDUSTRIES LIMITED	Director	20/09/2011	20/09/2011	28/07/2012	Active	NO

Name :

Ms. Pushpa Mahendra Shah

Designation :

Director

Address :

Khandwala Bunglow, Near Post Office, Dharam Nagar, Sabarmati Ahmedabad - 380 005, Gujarat, India

Date of Birth/Age :

30.05.1963

Date of Appointment :

01.04.2000

DIN No.:

00182754

Name :

Mr. Jatin Shah

Designation :

Director

KEY EXECUTIVES

Name :	Dharmendra Ganatra
Designation :	Company Secretary
Address :	513, Star Plaza, Phulchhab Chowk, Rajkot – 360001, Gujarat, India
Email ID :	pcs.dganatra@gamil.com
Qualification :	B.com, F.C.S.

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

MAJOR SHAREHOLDERS NOT AVAILABLE

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	24.68
Directors or relatives of directors	35.92
Other top fifty shareholders	2.69
Others	36.71
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Aluminium Tubes and Aluminium Wire Rods.
Exports :
Products :	· Aluminium Tubes · Aluminium Wire Rods
Countries :	Saudi Arabia
Imports :
Products :	Raw Material
Countries :	· Europe · China · Russia · UAE
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

Tom Martin and Company Limited

Customers :

Wholesalers and Retailers

· Jindal Steel Power Limited

· Sabic

· Sunbeam Auto Limited

· Alicon Castalloy Limited

· JSL Stainless Limited

· Glencore International AG

· RICO Auto Limited

· JSW Limited

· Essar Steel Limited

· NatSteel, Singapore

· Hindustan Aeronautics Limited

· TISCO Limited

· Shah Alloys Limited

· Viswesaria Iron and Steel Limited

No. of Employees :

110 (Approximately)

Bankers :

· State Bank of India, Overseas Branch, 3^rd Floor, Navjivan Trust Complex, Amrut – Jayanti Bhavan, Ahmedabad – 380014, Gujarat, India

· Punjab National Bank, Ambawadi Branch, Harikrupa Tower, Ellisbrigde, Ahmedabad – 380006, Gujarat, India

· Axis Bank Limited, Credit Management Centre, 2nd Floor, 3rd Eye One, Near Panchavati Crossing, C. G. Road, Ahmedabad – 380009, Gujarat, India

Facilities :

Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans others unsecured	9.700	0.000
Total	9.700	0.000

Banking Relations :	--
Auditors :
Name :	Raman M. Jain and Company Chartered Accountants
Address :	B-31-33, Ganshyam Avenue, Opposite C. U. Shah College, Navjivan, Income Tax, Ahemdabad – 380014, Gujarat, India
Income-tax PAN of auditor or auditor's firm :	ABHPJ8145K
Enterprises significantly influenced by Directors and or their relatives :	· Arfin Enterprise Limited · Arfin Capital Limited · Mahendra Corporation · Sakar Ferro Alloys Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3,500,000	Equity Shares	Rs. 10/- each	Rs. 35.000 Millions

Issued, Subscribed :

No. of Shares	Type	Value	Amount
3,018,300	Equity Shares	Rs. 10/- each	Rs. 30.183 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
1,867,725	Equity Shares	Rs. 10/- each	Rs. 18.677 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		18.677	18.677	18.677
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		10.126	10.051	10.178
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		28.803	28.728	28.855
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		9.700	0.000	0.000
TOTAL BORROWING		9.700	0.000	0.000
DEFERRED TAX LIABILITIES		1.853	1.853	1.853
TOTAL		40.356	30.581	30.708
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		21.059	9.913	9.913
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		17.211	17.211	17.211
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.196	0.196	0.196
	Sundry Debtors	0.242	0.000	0.000
	Cash & Bank Balances	0.095	0.236	0.088
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.016	3.529	4.049
Total Current Assets		2.549	3.961	4.333
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.154	0.195	0.365
	Other Current Liabilities	0.000	0.000	0.078
	Provisions	0.309	0.309	0.306
Total Current Liabilities		0.463	0.504	0.749
Net Current Assets		2.086	3.457	3.584
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		40.356	30.581	30.708

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	0.000	0.000	0.000
		Other Income	0.377	0.333	1.362
		TOTAL (A)	0.377	0.333	1.362
Less	EXPENSES
		Salary cost	0.000	0.000	0.383
		Administrative Selling other Expenses	0.301	0.460	0.237
		TOTAL (B)	0.301	0.460	0.620
Less	PROFIT/ LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.076	(0.127)	0.742
Less	FINANCIAL EXPENSES (D)		0.000	0.000	0.002
	PROFIT/ LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.076	(0.127)	0.740
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.000	0.000	0.226
	PROFIT/ LOSS BEFORE TAX (E-F) (G)		0.076	(0.127)	0.514
Less	TAX (H)		0.000	0.000	0.144
	PROFIT/ LOSS AFTER TAX (G-H) (I)		0.076	(0.127)	0.370
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(1.745)	(1.618)	(1.988)
	BALANCE CARRIED TO THE B/S		(1.669)	(1.745)	(1.618)
	Earnings/ Loss Per Share (Rs.)		0.04	(0.07)	0.20

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	20.16	(38.14)	27.17
Return on Total Assets (PBT/Total Assets}	(%)	0.32	(0.92)	3.61
Return on Investment (ROI) (PBT/Networth)		0.00	(0.00)	0.02
Debt Equity Ratio (Total Liability/Networth)		0.35	0.02	0.03
Current Ratio (Current Asset/Current Liability)		5.51	7.86	5.79

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Creditors due small micro enterprises	0.000	0.000	0.000
Creditors due others	0.154	0.195	0.365
Sundry creditors	0.154	0.195	0.365

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	L65990GJ1992PLC017460
Name of the company	ARFIN INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	H - 10, Madhavpura Market, Shahi Baug Road, Ahmedabad – 380001, Gujarat, India
This form is for	Modification of charge
Charge identification number of the modified	10335497
Type of charge	Immovable property Book Debts Movable Property Floating Charge Others (Plant and Machinery)
Particular of charge holder	Axis Bank Limited, Credit Management Centre, 2nd Floor, 3rd Eye One, Near Panchavati Crossing, C. G. Road, Ahmedabad – 380009, Gujarat, India Email ID: udit.desai@axisbank.com
Nature of description of the instrument creating or modifying the charge	Memorandum of Entry - Equitable Mortgage by deposit of title deeds
Date of instrument Creating the charge	24.01.2012
Amount secured by the charge	Rs. 47.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest For Cash Credit : Base Rate + 3.25% i.e. 13.25% p. a. (present base rate 10.00%) For Term Loan: Base Rate + 3.25% i.e. 13.25% p. a. (present base rate 10.00%) Terms of Repayment - Cash Credit Repayable on Demand. - Term Loan is repayable on 48 months tenor including 3 months moratorium period and in the course of these period interest will be served and 45 monthly installments of Rs. 0.378 Million Margin Cash Credit Limit : Stocks :25% and Receivables : 40% (Receivables up to 90 days will be eligible for drawing power calculation) Term Loan : 43.31% of the Total Cost. Extent and Operation of the charge 1st Charge by way of Hypothecation on Current Assets , Movables and Plant and Machinery and by way of equitable mortgage on immovable assets extends to secure the aggregate credit facility under the MSE Power Scheme of Rs. 47.000 Millions together with interest, cost and charges etc. Others As per the Sanction letter no. WZ/SME/NR/2011-12/644 dated 19.12.2011.
Short particulars of the property charged	All tangible movable, machinery, plant and machinery, fixures, fittings, other installation, cranes, furniture, computers and other accessories lying in premises or in godown of borrower or in course of transit or in the custody of any person who is mercantile agent of the borrower Whole of the borrower's movable goods and assets both present and future including stock of raw materials, work in progress, semi finished and finished goods such as aluminium ingots aluminium cubes, aluminium shots, wire rods, ferrous and non ferrous products, packing materials, consumables, stores, spares etc. where ever situated or in course of transit All the present and future book-debts, outstanding monies, receivables claims bills, contracts, engagements and securities which are due and owing to borrower in the course of business of the borrower Equitable Mortgage of land being sub plot no. 118/1 of Ravi Ind. Estate on land of block no. 118, Village: Bileshwarpura, Taluka-Kalol of Gujarat having adm. 5124.50 Sq. Mtrs. with construction thereon More particulars the assets as per the description given in Schedule II of the Composite Hypothecation Deed dated 11.01.2012 and MOE dated 24.01.2012
Particulars of the present modification	The limit of Rs. 47.000 Millions secured earlier by hypothecation of movable assets and book debts on 11.01.2012, is now further secured by equitable mortgage of immovable property. Accordingly the limit of Rs. 47.000 Millions (CC Rs. 30.000 Millions and Term Loan Rs. 17.000 Millions) is secured by all assets. {Hypothecation charge filed with ROC on 15/02/2012}

FIXED ASSETS

· Freehold Land

· Building

· Office – Building

· Office Equipments

· Furniture

· Electrical Installation

·

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 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 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. 55.70
UK Pound	1	Rs. 87.55
Euro	1	Rs. 68.85

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	1
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	1
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	1
--RESERVES	1~10	2
--CREDIT LINES	1~10	1
--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	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		14

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

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.