MIRA INFORM REPORT

Report Date :

13.12.2012

IDENTIFICATION DETAILS

Name :	MAHAKOSHAL REFRACTORIES PRIVATE LIMITED
Registered Office :	B-801, Eternia, Hiranandani Garden, Powai, Mumbai - 400076, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.12.2005
Com. Reg. No.:	11-158200
Capital Investment / Paid-up Capital :	Rs.51.847 Millions
CIN No.: [Company Identification No.]	U74999MH2005PTC158200
IEC No.:	0305079590
TAN No.: [Tax Deduction & Collection Account No.]	MUMM28489G
PAN No.: [Permanent Account No.]	AAECM4903B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Supplier and Exporter of Refractory.
No. of Employees :	114 (Approximately) (In Office-56, In Factory-58)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 640000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track record. The latest financials of the company are not made available. As per previous year’s, the subject is found to be performing well. Mr. Anurag Singhai, from the Accounts Department has provided us with all information. However, financial details are not verified. Trade relations are reported as decent. Business is active. Payment terms are usually correct. The company can be considered normal for business dealings at usual trade terms and condition.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	SE 1B
Rating Explanation	Highest performance capability and moderate financial strength.
Date	29.12.2012

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.

INFORMATION PARTED BY

Name :	Mr. Anurag Singhai
Designation :	Account Department
Contact No.:	91-7622-222682
Date :	12.12.2012

LOCATIONS

Registered Office :	B-801, Eternia, Hiranandani Garden, Powai, Mumbai - 400076, Maharashtra, India
Tel. No.:	91-22-25707216
Fax No.:	Not Available
E-Mail :	gugalia@gmail.com marketing@mahakoshalrefractories.com
Website :	http://www.mahakoshalrefractories.com
Location :	Owned
Factory :	Industrial Area, Katey Ghat, Katni - 4835021, Madhya Pradesh, India
Tel. No.:	91-7622-222682 / 223212 / 406394
Fax No.:	91-7622-222733 / 406051

DIRECTORS

As on 29.09.2012

Name :	Mr. Chand Kunwarbai Gugalia
Designation :	Director
Address :	986, Gol Bazar, Wright Town, Jabalpur-482002, Madhya Pradesh, India
Date of Birth/Age :	29.07.1928
Date of Appointment :	20.12.2005
DIN No.:	00708340
Name :	Mr. Shantilal Gugalia
Designation :	Director
Address :	986, Gol Bazar, Wright Town, Jabalpur-482002, Madhya Pradesh, India
Date of Birth/Age :	10.08.1938
Date of Appointment :	20.12.2005
DIN No.:	00708414
Name :	Mr. Kantilal Gugalia
Designation :	Director
Address :	Ward No. 29, H-17, Housing Board Colony, Katni-483501, Madhya Pradesh, India
Date of Birth/Age :	27.09.1940
Date of Appointment :	20.12.2005
DIN No.:	00009398
Name :	Mr. Sharad Chand Gugalia
Designation :	Director
Address :	Ward No. 29, H-17, Housing Board Colony, Katni-483501, Madhya Pradesh, India
Date of Birth/Age :	24.10.1942
Date of Appointment :	20.12.2005
DIN No.:	00531430

KEY EXECUTIVES

Name :	Mr. Anurag Singhai
Designation :	Account Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Chandkuwar Bai Gugalia	1300790
Shantilal Gugalia	1415748
Leela Gugalia	1030
Kantilal Gugalia	1283028
Kanta Gugalia	1030
Sharad Chandra Gugalia	1178707
Akila Gugalia	1030
Jashwant Singh Gugalia	1287
Arun Kumar Jain	1030
Vinay Kumar Jain	1030
Total	5184710

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Supplier and Exporter of Refractory.
Exports :
Products :	Refractory
Countries :	China South Africa Saudi Arabia
Imports :
Products :	Raw Materials
Countries :	China
Terms :
Selling :	Cash
Purchasing :	Cash

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity
Refractory Castables, Motor and Monolithic	MT	24000
Refractory Binders, Cement	MT	6000

GENERAL INFORMATION

Customers :

Steel Plant

No. of Employees :

114 (Approximately) (In Office-56, In Factory-58)

Bankers :

• HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India
• ICICI Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	42.034	12.395
Working capital loans banks secured	90.090	70.850
Total	132.124	83.245
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Loans directors unsecured	6.933	5.652
Public deposits unsecured	3.997	2.950
Total	10.930	8.602

Banking Relations :	--
Auditors :
Name :	Agrawal Gupta and Company Chartered Accountants
Address :	23/24, Panchsheel Cinema Building, Sitabaldi, Nagpur-440012, Maharashtra, India
Tel. No.:	91-712-22525541
E-Mail :	agarwalandgupta@gmail.com
PAN.:	AASSA0552L
Group Companies :	Mahakoshal Refractories Private Limited Mahakoshal Potteries Katni Tile Works Private Limited Refracare Engineers Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5250000	Equity Shares	Rs.10/- each	Rs. 52.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5184710	Equity Shares	Rs.10/- each	Rs.51.847 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		51.847	51.847	51.847
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		109.507	81.161	43.972
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		161.354	133.008	95.819
LOAN FUNDS
1] Secured Loans		132.124	83.245	82.583
2] Unsecured Loans		10.930	8.602	6.781
TOTAL BORROWING		143.054	91.847	89.364
DEFERRED TAX LIABILITIES		9.675	3.234	1.923
TOTAL		314.083	228.089	187.106
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		144.364	95.614	78.847
Capital work-in-progress		9.252	0.519	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	82.330	75.151	38.466
	Sundry Debtors	80.596	69.885	73.405
	Cash & Bank Balances	5.296	5.935	4.567
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	49.372	38.809	28.971
Total Current Assets		217.594	189.780	145.409
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	21.617	21.435	12.488
	Other Current Liabilities	7.943	0.851	1.369
	Provisions	27.567	35.538	23.391
Total Current Liabilities		57.127	57.824	37.248
Net Current Assets		160.467	131.956	108.161
MISCELLANEOUS EXPENSES		0.00	0.000	0.098
TOTAL		314.083	228.089	187.106

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Revenue from Operations	415.632	377.613	337.659
		Other Income	0.379	0.492	0.000
		TOTAL (A)	416.011	378.105	337.659
Less	EXPENSES
		Raw Material, Coal and Fuel Consumed	258.547	259.974
		Purchase cost of Trading Goods	27.839	23.845
		Manufacturing Expenses	25.949	22.507	288.356
		Employee Benefits Expenses	1.620	1.446
		Repairs and Maintenance	13.617	12.473
		Administrative Expenses	7.636	7.082
		Selling and Distribution Expenses	10.290	7.338
		(Profit) / Loss on Sale of Fixed Assets	0.147	0.000
		(Increase) / Decrease in Stock	13.372	(26.909)
		TOTAL (B)	359.017	307.756	288.356
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		56.994	70.349	[Including Financial
					Expenses
Less	FINANCIAL EXPENSES (D)		9.638	9.122	And
					Depreciation]
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		47.356	61.227
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.912	4.414
	PROFIT BEFORE TAX (E-F) (G)		42.444	56.813	49.303
Less	TAX (H)		14.099	19.311	16.861
	PROFIT AFTER TAX (G-H) (I)		28.345	37.502	32.442
	Income Tax and FBT Transfer to Profit & Loss Account of Prior Period		0.000	(0.313)	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		81.161	43.972	11.530
	BALANCE CARRIED TO THE B/S		109.506	81.161	43.972
	Earnings Per Share (Rs.)		5.47	7.23	6.26

Particulars	31.03.2012
Sales Turnover (Approximately)	490.000

The above information has been parted by Mr. Anurag Singhai

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.81	9.92	9.61
Net Profit Margin (PBT/Sales)	(%)	10.21	15.05	14.60
Return on Total Assets (PBT/Total Assets}	(%)	11.73	19.91	21.99
Return on Investment (ROI) (PBT/Networth)		0.26	0.43	0.51
Debt Equity Ratio (Total Liability/Networth)		1.30	1.15	1.34
Current Ratio (Current Asset/Current Liability)		3.81	3.28	3.90

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Rs. In Millions

PARTICULARS	31.03.2011	31.03.2010	31.03.2009
Creditors due small micro enterprises	21.617	21.435	12.488
Total	21.617	21.435	12.488

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	No
18]	Major customers	No
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	No
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	Yes

Note:

The registered office of the company has been shifted from B-604, Glen Gatehiranandani Complex, Powai, Mumbai- 400076, Maharashtra, India to present address w.e.f. 29.04.2011

FIXED ASSETS

• Land
• Building
• Plant and Machinery
• Office Equipments
• Air Conditioner
• Ball Mill
• Electrical Equipments
• Vehicles
• Furniture and Fixtures
• Computer

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 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.54.27
UK Pound	1	Rs.87.43
Euro	1	Rs.70.55

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		44

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.