MIRA INFORM REPORT

Report Date :

05.01.2012

IDENTIFICATION DETAILS

Name :	PRECISE ALLOYS PRIVATE LIMITED
Registered Office :	G-20/2, MIDC, Tarapur, District Thane – 401 506, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	08.11.1989
Com. Reg. No.:	11-54184
Capital Investment / Paid-up Capital :	Rs.3.721 Millions
CIN No.: [Company Identification No.]	U28991MH1989PTC054184
TAN No.: [Tax Deduction & Collection Account No.]	MUMP15773C
PAN No.: [Permanent Account No.]	AAACP9548B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Steel Wires.
No. of Employees :	50 (Approximately)

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 69000
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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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. Sharad Jain
Designation :	Director
Contact No.:	91-9821233381
Date :	04.01.2012

LOCATIONS

Registered Office/ Factory :	G-20/2, MIDC, Tarapur, District Thane – 401 506, Maharashtra, India
Tel. No.:	91-2525-656589 / 645477 / 273222
Mobile No.:	91-9821233381 (Mr. Sharad Jain)
Fax No.:	91-2525-261906 / 273222
E-Mail :	sales@precisesteelwires.com precise_alloys@sancharnet.in accounts@precisesteelwires.com
Website :	http://www.precisesteelwires.com
Location :	Leased
Sales Office :	301, Siddhachal, Above Sabkuch Supermarket Link Road, Malad (West), Mumbai-400064, Maharashtra, India
Tel. No.:	91-22-32542181 / 28785599 / 28768081
Fax No.:	91-22-28768081
Location :	Rented

DIRECTORS

As on 30.08.2011

Name :

Mr. Sharad Jainendra Jain

Designation :

Director

Address :

17/201, Shakti Nagar, Dahisar (East), Mumbai – 400 068, Maharashtra, India

Date of Birth/Age :

14.11.1965

Date of Appointment :

15.02.1996

DIN No.:

00908174

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U28991MH1989PTC054184	Precise Alloys Private Limited	Director	08-11-89	08-11-89	Active	NO

Name :

Mrs. Deepa Dinesh Jain

Designation :

Director

Address :

B/2/132, Ahinsa Kutir, Jawahar Nagar, Goregaon (West), Mumbai – 400 062, Maharashtra, India

Date of Birth/Age :

01.06.1959

Date of Appointment :

08.11.1989

DIN No.:

00908206

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.08.2011

Names of Shareholders	No. of Shares
Sardarilal Munshilal Jain	25600
Deepa Dinesh Jain	26900
Dinesh Sardarilal Jain	7000
Ushadevi Sardarilal Jain	4000
Pradeep Sardarlilal Jain	4000
Sangeeta Pradeep Jain	2500
Dushyant Dinesh Jain	1000
Yogendra Kishan Agrawal	5000
Mohan Kishan Agrawal	3000
Sharad Jainendra Jain	241100
Rita Pradeep Jain	1000
Kishan B Agarwal	1000
Ashu Sharad Jain	50000
Total	372100

As on 30.08.2011

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

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Steel Wires.
Products :	· Mild Steel Wires · Electrodes Wires · Medium Carbon Steel Wires · High Carbon Steel Wires · Ball Bearing Steel Wires · Alloy Steel Wire for Fasteners Industries · Wires for Electro Galvanizing · Copper Coating · Shape Wires · MS Black Annealed Wires etc.
Exports :
Products :	Steel Wires
Countries :	· Dubai · Bangladesh · Europe
Imports :
Products :	Steel Wire Rod
Countries :	China
Terms :
Selling :	Credit (30 days)
Purchasing :	Credit (30 days / 60 days)

GENERAL INFORMATION

Suppliers :

· Hu Fit Fastener Private Limited

· Bombay Supply Agency

· D C Gupta Investments Private Limited

· Mandar K Patil and Company

· Sms Air and Sea Logistics Limited

· Bharat Industries

· Manisha Enterprises

· Pamarox Private Limited

· Premiar Roadways

Customers :

Industries and Industries Automobile

· Jindal Steel Private Limited

· Darbari Industries

· Kundan Industries Limited

· Om Sai Fasteners

· Mahalaxmi Fasteners Private Limited

· Ideal and Engineering Works

· Gargi Enterprises

· H K Industries

No. of Employees :

50 (Approximately)

Bankers :

· Citi Bank N.A.

Trent House, 2^nd Floor, G Block, Plot No. C60, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India

· State Bank of India

· The Saraswat Co operative Bank Limited

SME Vileparle Branch, Bholanath Co-Operative Housing Society, Subhash Road, Vileparle (East), Mumbai-400057, Maharashtra, India

· The Saraswat Co-Operative Bank Limited

Plot No. CIS, 383-A, Junction of S V Road and Jamnadas Road, Kandivili (West)l, Mumbai-400067, Maharashtra, India

Facilities :

Cash Credit Rs.45.000 millions (Citi Bank)

Secured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Cash Credit from Saraswat Co-Operative Bank (Against Hypothecation of Stock and Book Debts)	0.000	31.111
Cash Credit from Citi Bank Limited (Against Hypothecation of Stock and Book Debts)	41.094	0.000
Kotak Mahindra Prime Limited (Against Hypothecation of Vehicle)	0.150	0.222
Tata Capital Term Loan A/c (Against Hypothecation of Vehicles)	1.062	0.000
Saraswat Co-Operative Bank Term Loan A/c (Against Hypothecation of Machinery)	0.000	0.749
Saraswat Co-Operative Bank Vehicle Loan A/c (Against Hypothecation of Goods Vehicle)	0.000	0.393
Total	42.306	32.475

Unsecured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Loan from Directors and Relatives	1.721	1.721
Interest free loan from D C K Limited	2.956	2.956
Total	4.677	4.677

Banking Relations :	--
Financial Institute:	Kotak Mahindra Prime Limited
Auditors :
Name :	R G Muley and Company Chartered Accountants
Address :	221/222, Swastik Plaza, Pokharan Road No. 2, Thane (West), Thane – 400 601, Maharashtra, India
Tel. No.:	91-22-21731574
PAN No.:	AAPPM4897C
Memberships :	Small Scale Wire Drawing Units Association

CAPITAL STRUCTURE

As on 30.08.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
372100	Equity Shares	Rs.10/- each	Rs.3.721 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		3.721	3.721	1.221
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		13.503	9.507	6.108
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		17.224	13.228	7.329
LOAN FUNDS
1] Secured Loans		42.306	32.475	31.334
2] Unsecured Loans		4.677	4.677	4.827
TOTAL BORROWING		46.983	37.152	36.161
DEFERRED TAX LIABILITIES		1.033	0.701	0.416
TOTAL		65.240	51.081	43.906
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		12.252	9.642	7.402
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.025	0.025	0.025
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	22.870	17.429	15.767
	Sundry Debtors	48.044	40.215	27.961
	Cash & Bank Balances	2.315	1.151	0.669
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	13.928	8.590	8.063
Total Current Assets		87.157	67.385	52.460
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	27.859	18.916	9.926
	Other Current Liabilities	3.712	4.625	4.846
	Provisions	2.700	2.486	1.236
Total Current Liabilities		34.271	26.027	16.008
Net Current Assets		52.886	41.358	36.452
MISCELLANEOUS EXPENSES		0.077	0.056	0.027
TOTAL		65.240	51.081	43.906

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Turnover	238.150	220.549	178.589
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		Office Expenses	NA	NA	NA
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		6.669	5.614	2.613
Less/ Add	DEPRECIATION/ AMORTISATION		0.927	0.679	0.461
	PROFIT/(LOSS) BEFORE TAX		5.742	4.935	2.152
Less	TAX		1.747	1.536	0.882
	PROFIT/(LOSS) AFTER TAX		3.995	3.399	1.270
	Earnings Per Share (Rs.)		10.74	9.13	10.40

Expected Sales (2011-2012) : Rs.300.000 millions

The above information has been parted by Mr. Sharad Jain

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	2.41	2.24	1.21
Return on Total Assets (PBT/Total Assets}	(%)	5.78	6.41	3.59
Return on Investment (ROI) (PBT/Networth)		0.33	0.37	0.29
Debt Equity Ratio (Total Liability/Networth)		4.72	4.78	7.12
Current Ratio (Current Asset/Current Liability)		2.54	2.59	3.28

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents
1.	Year of Establishment	YES
2.	Locality of the firm	YES
3.	Constitutions of the firm	YES
4.	Premises details	YES
5.	Type of Business	YES
6.	Line of Business	YES
7.	Promoter’s background	--
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	NO
13.	Reasons for variations <> 20%	NO
14.	Estimation for coming financial year	YES
15.	Capital in the business	YES
16.	Details of sister concerns	--
17.	Major Suppliers	YES
18.	Major Customers	YES
19.	Payment terms	YES
20.	Export / Import details (is applicable)	YES
21.	Market information	--
22.	Litigation 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	NO
28.	Incorporation details, if applicable	--
29.	Last accounts filed at ROC	--
30.	Major Shareholders, is available	--

FINANCIAL RESULTS

During the year, the Turnover of the Company has been increased from Rs.220.549 millions to Rs.238.150 millions, indicating an increase by 7.98%. However Profit before tax increased from 4.935 millions to Rs.5.742 millions showing an increase by 16.35% and Net Profit After Tax increased from Rs.3.399 millions to Rs.3.995 millions recording an increase by 17.53%.

CURRENT SCENARIO

The directors are of the strong opinion and confidence that during the current year the company shall perform very well. The current year trend indicates encouragement to the company.

FORM 8

Corporate identity number of the company	U28991MH1989PTC054184
Name of the company	PRECISE ALLOYS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	G-20/2, MIDC, Tarapur, District Thane – 401 506, Maharashtra, India
This form is for	Creation of charge
Type of charge	Immovable property
Particular of charge holder	Citi Bank N.A. Trent House, 2^nd Floor, G Block, Plot No. C60, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India E-Mail : vlaxman@vsnl.com
Nature of instrument creating charge	Memorandum of Entry
Date of instrument Creating the charge	15.02.2011
Amount secured by the charge	Rs.42.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest to be charged at such rate/s as may be determined by the Bank from time to time. Terms of repayment On Demand Margin As may be stipulated by the Bank from time to time. Extent and operation of the charge The Company created mortgage by deposit of title deeds with the Bank, in respect of immovable properties for repayment of its Rs.42.500 millions, together with interest, additional interest, liquidated damages, commitment charges, premia on repayment or on redemption, costs, expenses and other monies due and payable by the Borrower to the Bank. Others NIL
Short particulars of the property charged	Equitable Mortgage on property including land and building situated at Plot No.G.20/2, Precise Alloys Private Limited, MIDC, Opp Viraj Industry, Tarapur, Thane - 401506.

TRADE REFERENCE

· Jindal Steel Private Limited

· Hu Fit Fastener Private Limited

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Laboratory Equipments

· Energy Saving Devices

· Furnace

· Transformer

· Electric Installation

· Weighting Scale

· Furniture and Fixture

· Water Tank

· Office Equipments

· Vehicles

· Scooter

· Computer

· Flat

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.53.14
UK Pound	1	Rs.83.08
Euro	1	Rs.69.25

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	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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.