MIRA INFORM REPORT

Report Date :

25.08.2012

IDENTIFICATION DETAILS

Name :	SARGAM METALS PRIVATE LIMITED
Registered Office :	No. 2, Ramavaram Road, Manapakkam, Chennai - 600 089, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.05.1970
Com. Reg. No.:	18-005846
Capital Investment/ Paid-up Capital:	Rs.20.000 Millions
CIN No.: [Company Identification No.]	U281000TN1970PTC005846
TAN No.: [Tax Deduction & Collection Account No.]	CHES16554G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Aluminium Ingots Alloys, Zinc Casting Alloys.
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 354000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory. 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, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	B+(Long Term)
Rating Explanation	The inadequate credit quality rating assigned by ICRA. The rated instruments carries high credit risk.
Date	June 2012

Rating Agency Name	ICRA
Rating	A4 (Short Term)
Rating Explanation	The risk – prone-credit quality rating assigned by ICRA to short term debt instruments. Instruments rated in this category high credit risk
Date	June 2012

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.

LOCATIONS

Registered Office/Factory :	No. 2, Ramavaram Road, Manapakkam, Chennai - 600 089, Tamilnadu, India
Tel. No.:	91-44-22342885/22491796 91-44-22492216 (Sales Department) 91-44-22491547 (Purchase Department)
Fax No.:	91-44-22491651
E-Mail :	sargam@md2.vsnl.net.in sales@sargammetals.com (Sales Department) purchase@sargammetals.com (Purchase Department)
Area :	2 Acre
Location :	Owned

DIRECTORS

As on 29.09.2011

Name :

Mr. Sarathi Arun

Designation :

Managing Director

Address :

189, ST. Mary’s Road, Chennai – 600 018, Tamilnadu, India

Date of Birth/Age :

15.10.1959

Date of Appointment :

24.10.1988

Din No.:

00069367

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	U35999TN1986PTC013156	CONGRUENT SOLUTIONS PRIVATE LIMITED	Director	02/07/1986	02/07/1986	-	Active	NO
2	U28100TN1970PTC005846	SARGAM METALS PRIVATE LIMITED	Managing director	24/10/1988	24/10/1988	-	Active	NO
3	U65191TN1991PLC020173	NEW LINK OVERSEAS FINANCE LIMITED	Director	23/01/1991	23/01/1991	-	Active	NO
4	U45209TN2008PTC066992	SARGAM LABORATORY PRIVATE LIMITED	Director	25/03/2008	25/03/2008	31/10/2011	Active	NO
5	U29230TN2008PTC066985	SARGAM DIECASTINGS PRIVATE LIMITED	Director	25/03/2008	25/03/2008	-	Active	NO
6	U65923TN2010PTC075780	SARGAM HOLDING COMPANY PRIVATE LIMITED	Managing director	21/05/2010	21/05/2010	-	Active	NO

Name :

Vijaya Arun

Designation :

Director

Address :

189, ST. Mary’s Road, Chennai – 600 018, Tamilnadu, India

Date of Birth/Age :

11.04.1963

Date of Appointment :

16.03.2011

Din No.:

01343692

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	U22110TN1940PLC001091	KASTURI & SONS LIMITED	Whole-time director	01/10/2007	24/02/2007	-	Active	NO
2	U65923TN2010PTC075780	SARGAM HOLDING COMPANY PRIVATE LIMITED	Director	21/05/2010	21/05/2010	-	Active	NO
3	U28100TN1970PTC005846	SARGAM METALS PRIVATE LIMITED	Director	16/03/2011	16/03/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Equity Shareholders	No. of Shares
S Arun	29406
Congruent Solutions Private Limited, India	80
Padma Sarathi and Pranav Arun	3253
Padma Sarathi and Prithvi Arun	3413
Padma Sarathi and Sudha Ravi	3840
Prithvi Arun	4750
Pranav Arun	4750
Vijaya Arun	3880
Sargam holding company private Limited, India	46598
Malathy Kannan and Mr. A.V.kannan	1
Vasantha and Mr. M.K.. Sridharan	1
Swetha . S and Mr. M.K. Sridharan	1
Radha. V and Mr. R. Venkatesan	1
Jeya Thanaseelan	1
Vasantha. V and Mr. V. Ganesh	1
S.M. Meenakshisundaram	1
Parvathi. M	1
Bhooma L.N.	1
Jayashree S	1
Kalyani D	1
R. Srinivasagopalan	1
Vasantha S	1
S. Ravi	1
K. Naganathan	1
Visalakshi	1
E. Veeraraghavan	1
Sakunthala Narasimhamurthi	1
R. Kousalya	1
Theivanai. M	1
Meenakshi Subramaniam	1
vidya venkatesan	1
Sripriya Ganesh	1
Master P. Ashwi BalajI (Minor)	1
Ramdas. B	1
Shanthakumari	1
Chandrasekaran. N	1
Sushila Ramdas	1
Arunachalam. M	1
Kulanthaivel. T	1
Total	100000

As on 11.11.2010

List of Allottees

Names of 12 % Cumulative Redeemable Preference Shareholders	No. of Shares
S. Rajeshwari	25000
Total	25000

As on 11.11.2010

Names of 13 % Cumulative Redeemable Preference Shareholders	No. of Shares
Lalitha Subramanian	25000
Sampathi Exim Private Limited, India	25000
Total	50000

As on 24.12.2010

Names of 12 % Cumulative Redeemable Preference Shareholders	No. of Shares
Senthil Kumar	25000
Total	25000

As on 29.09.2011

Category	Percentage
Bodies corporate	46.70
Directors or relatives of directors	53.27
Others	0.03
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Aluminium Ingots Alloys, Zinc Casting Alloys.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, SME Guindly Branch, No.65-A, G.S.T Road, Chennai – 600032, Tamilnadu, India

· State Bank of India, Commercial Branch, 1/65A, G S T Road, Guindy, Chennai – 600 032, Tamilnadu, India

Facilities :

Rs. In Millions

Secured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Working capital loans banks secured	177.827	154.429
Total	177.827	154.429

Unsecured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Working capital loans unsecured	21.789	27.172
Loans taken for vehicles unsecured	2.058	1.619
Other debt unsecured	10.613	11.097
	34.460	39.888

Financial Institutions:	Esayaccess Financial Services Limited, SPL Guindy House, 95, Mount Road, Guindy, Chennai – 600032, Tamilnadu, India
Banking Relations :	--
Auditors :
Name :	Jagannathan and Sarabeswaran Chartered Accountants
Address :	No. 35, Luz Avenue, Mylapore, Chennai – 600 004, Tamilnadu, India
Pan No.:	AABFJ6143N
Subsidiaries :	Cuproban Systems ( Singapore ), Pte Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
125000	Equity Shares	Rs.100/- each	Rs.12.500 Millions
100000	Preference Shares	Rs.100/- each	Rs.10.000 Millions
	Total		Rs.22.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Millions
100000	Preference Shares	Rs.100/- each	Rs.10.000 Millions
			Rs. 20.000 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		20.000	10.000	10.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		68.710	65.751	60.875
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		88.710	75.751	70.875
LOAN FUNDS
1] Secured Loans		177.827	154.429	139.214
2] Unsecured Loans		34.460	39.888	25.308
TOTAL BORROWING		212.287	194.317	164.522
DEFERRED TAX LIABILITIES		1.193	0.521	0.860
TOTAL		302.190	270.589	236.527
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		40.553	26.638	27.508
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		22.412	31.422	31.424
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	95.239	72.949	71.472
	Sundry Debtors	220.778	177.402	134.655
	Cash & Bank Balances	17.230	14.252	13.189
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	151.805	110.995	117.766
Total Current Assets		485.052	375.598	337.082
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	117.760	71.131	148.126
	Other Current Liabilities	132.636	91.938	11.632
	Provisions	0.522	0.000	0.000
Total Current Liabilities		250.918	163.069	159.758
Net Current Assets		234.134	212.529	177.325
MISCELLANEOUS EXPENSES		5.091	0.000	0.0000
TOTAL		302.190	270.589	236.527

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1069.023	790.456	827.698
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES		NA	NA	NA
	PROFIT BEFORE TAX		6.022	7.412	7.608
Less	TAX		1.869	2.535	(0.268)
	PROFIT AFTER TAX		4.153	4.877	7.876
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		12.595	7.718	5.842
Less	APPROPRIATIONS
		Preference dividend proposed	0.448	0.000	0.000
		Dividend Tax	0.074	0.000	0.000
		Differed Tax provision	0.672	0.000	0.000
		Transfer to General Reserve	0.000	0.000	6.000
	BALANCE CARRIED TO THE B/S		15.554	12.595	7.718
	Earnings Per Share (Rs.)		20.765	NA	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	0.56	0.94	0.92
Return on Total Assets (PBT/Total Assets}	(%)	1.15	1.84	2.09
Return on Investment (ROI) (PBT/Networth)		0.07	0.10	0.11
Debt Equity Ratio (Total Liability/Networth)		5.22	4.72	4.58
Current Ratio (Current Asset/Current Liability)		1.93	2.30	2.10

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
Promoters background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of contact person	No
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payment Terms	No
Export / Import Details [If Applicable]	No
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes
Date of Birth of Proprietor/Partner/Director, if available	Yes
PAN of Proprietor/Partner/Director, if available	No
Voter ID No of Proprietor/Partner/Director, if available	No
External Agency Rating, if available	Yes

FINANCIAL HIGHLIGHTS:

There was a healthy increase in sales for the year and the company’s revenues crossed Rs.1000.000 Millions for the first time after the hiving off of the Laboratory and Die Casting Divisions in April 2008. The increase in sales overall was off the order of 35% from 790.000 Millions to 1069.00 Millions. Export sales (of Cathodic Protection products) increased by 40% from 45.000 Millions to 63.000 Millions. This increase must however be viewed with the perspective that the average LME Cash Settlement Price for the period 1st April 2010 to 31st March 2011 was US$2256/MT compared to US$1866 for the previous year, an increase of 20%. Even factoring this, however there is a significant increase in sales.

Unfortunately, the company continued to face tight liquidity especially with raw material price increases to be factored in, with the result that due to high demurrages and other costs the operating margins suffered. The company’s EBIDTA was flat and adding significantly higher interest outflow, the company’s profit before appropriations was down from 7.4 Millions to 6.02 Millions

FORM 8

Corporate identity number of the company	U281000TN1970PTC005846
Name of the company	SARGAM METALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No. 2, Ramavaram Road, Manapakkam, Chennai - 600 089, Tamilnadu, India Email: sargam@md2.vsnl.net.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10357077
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	Esayaccess Financial Services Limited, SPL Guindy House, 95, Mount Road, Guindy, Chennai – 600032, Tamilnadu, India Email: secretarial@easyaccess.co.in
Nature of instrument creating charge	Supplemental letter of hypothecation of current assets including inventory and book debts of the company.
Date of instrument Creating the charge	09.05.2012
Amount secured by the charge	Rs. 70.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest As per the Agreement. Term of Payment: As per the Agreement. Margin As per the Agreement. Extent and operation of the charge Hypothecation by way of Second charge on all Current Assets both present and future such as book debts, receivables, loans, advances, inventory, stock-in-trade, finished goods and work-in-progress whether moveable or immovable - first charge being held by State Bank of India, Guindy.
Short particulars of the property charged (Including location of the property)	Hypothecation by way of Second charge on all Current Assets such as book debts, receivables, loans, advances, inventory, stock-in-trade, finished goods and work-in-progress whether moveable or immovable First Charge being held by State Bank of India, Guindy, Chennai
Particulars of the present modification	By the present modification, the credit limit has been enhanced from Rs.20.000 Millions to Rs. 70.000 Millions Other terms and conditions remain unchanged.

FIXED ASSETS:

· Building – Factory

· Building Others

· Computer

· Electrical Equipment

· Fax Machine

· Four Wheelers

· Generator

· Goodwill

· Land

· Machine Tools

· Motor Cycles

· Testing Equipment

· Motor Cycle

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.55.19
UK Pound	1	Rs.87.65
Euro	1	Rs.69.16

INFORMATION DETAILS

Report Prepared by :

BYI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	4
--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.