MIRA INFORM REPORT

Report Date :

30.01.2012

IDENTIFICATION DETAILS

Name :	MORAKHIA METAL AND ALLOYS PRIVATE LIMITED
Registered Office :	12, 2^nd Floor, “B” Wing, Mardia Plaza, Near Panchwati Petrol Pump, Ellisbridge, C.G. Road, Ahmedabad – 380 006, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	05.01.1990
Com. Reg. No.:	04-013215
Capital Investment / Paid-up Capital :	Rs.67.550 Millions
CIN No.: [Company Identification No.]	U27101GJ1990PTC013215
TAN No.: [Tax Deduction & Collection Account No.]	AHMM00030C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Ferrous and Non-Ferrous Metal.
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 571440
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. Shrenikbhai Ashokbhai Morakhia
Designation :	Director
Contact No.:	91-9825005529

LOCATIONS

Registered Office :	12, 2^nd Floor, “B” Wing, Mardia Plaza, Near Panchwati Petrol Pump, Ellisbridge, C.G. Road, Ahmedabad – 380 006, Gujarat, India
Tel. No.:	91-79-26401873 / 26400695
Mobile No.:	91-9825005529 (Mr. Shrenikbhai Ashokbhai Morakhia)
Fax No.:	91-79-26464148 / 26426558
E-Mail :	morakhia@vsnl.net Sales and Marketing : morakhia@copperzone.com Purchases : mtrm@copperzone.com
Website :	http://www.copperzone.com
Area:	2000 sq ft
Location:	Owned
Corporate Office :	145, Kika Street, Gulal Wadi, Mumbai - 400 004, Maharashtra, India
Tel. No.:	91-22-23461732 / 23462263
Fax No.:	91-22-23472288
Factory 1 :	3429-3434 and 3341 GIDC, Phase VI, Chhatral – 382 729, District Gandhinagar, Gujarat, India
Tel No. :	91-2764-233236 / 233426 / 233427
Fax No. :	91-2764-233235
Factory 2 :	3464-3466, GIDC, Phase VI, Chhatral – 382 729, District Gandhinagar, Gujarat, India

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Prakashbhai Sevantilal Morakhia
Designation :	Whole Time Director
Address :	289, S.V.P. Road, Shree Bhuwan, 5^th Floor, Mumbai – 400 004, Maharashtra, India
Date of Birth/Age :	19.04.1965
Qualification:	Graduate
Date of Appointment :	05.01.1990
DIN No.:	00151256
Name :	Mr. Pankajbhai Kantilal Morakhia
Designation :	Whole Time Director
Address :	289, S.V.P. Road, Shree Bhuwan, 5^th Floor, Mumbai – 400 004, Maharashtra, India
Date of Birth/Age :	14.12.1968
Qualification:	Graduate
Date of Appointment :	05.01.1990
DIN No.:	00151305
Name :	Mr. Shrenikbhai Ashokbhai Morakhia
Designation :	Whole Time Director
Address :	5, Kalyan Society, Opposite Nagari Hospital, Mithakhali, Ellisbridge, Ahmedabad – 380 006, Gujarat, India
Date of Birth/Age :	26.01.1973
Qualification:	Graduate
Date of Appointment :	25.11.1998
DIN No.:	00151197

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Bharat Rasiklal Morakhia HUF	270000
Ashok Manilal Morakhia HUF	640200
Shripal Rasiklal Morakhia HUF	320400
Shardaben Kantilal Morakhia	105000
Shilpa Prakash Morakhia	45000
Alpa Kantilal Morakhia	21000
Pruvi Sevantilal Morakhia	36000
Tushar Ashok Morakhia	446500
Chirag Ashok Morakhia	146200
Roopal Rasiklal Morakhia	20400
Kantilal Maniklal Morakhia HUF	204000
Metal Tubes and Rolling Mills, India	6000
Pooja Prakash Morakhia	10800
Shrenik Ashok Morakhia	516700
Prakash Sevantilal Morakhia HUF	340050
Sevantilal Manilal Morakhia HUF	441000
Pankaj Kantilal Morakhia	150000
Rasiklal Manilal Morakhia	519000
Sejal Shripal Morakhia	60000
Mukesh Sevantilal Morakhia	157100
Manilal Premchand Morakhia HUF	325500
Prakash Sevantilal Morakhia	265400
Kantilal M. Morakhia Jointly with Bharat Rasiklal Morakhia	805000
Seventilal Manilal Morakhia	168000
Manjulaben S. Morakhia	45000
Bharat Rasiklal Morakhia	82500
Shripal Rasiklal Morakhia	194500
Ashokkumar Manilal Morakhia	209500
Sonal Tushar Morakhia	53400
Kantilal Manilal Morakhia	54000
Pankaj Kantilal Morakhia HUF	42850
Bhartiben Manilal Morakhia	54000
Total	6755000

AS ON 30.09.2011

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

BUSINESS DETAILS

Line of Business :

Manufacturing of Ferrous and Non-Ferrous Metal.

Product :

ITC Code No.	Product Description
74110	Copper Tube
740711	Copper Brass
740910	Copper Strips

Exports :

Products :

v Copper and Brass Castings

Countries :

v Gulf Countries

v Taiwan

v UK

v USA

v Africa

v Spain

Imports :

Products :

v Raw Materials

v Plant and Chemical

Countries :

v China

v Middle East

v Germany

Terms :

Selling :

L/C and Cash

Purchasing :

L/C and Cash

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	2009-10
Licensed Capacity	M.T.	N.A.
Installed Capacity	M.T.	8000
Actual Production	M.T.	6014

Notes:
installed capacity has been accepted as certified by the directors and not verified by auditor being the technical matter.

GENERAL INFORMATION

Customers :

End Users and OEM’s

No. of Employees :

250 (Approximately)

Bankers :

v Dena Bank, Mumbai Main Office, Horniman Circle, Mumbai – 400 023, Maharashtra, India

v Dena Bank, Industrial Finance Branch, 9^th Floor, Makers Towers “E”, Cuffe Parade, Mumbai – 400 005, Maharashtra, India

v Kotak Mahindra Bank

v Bank of Maharashtra, 4, Riddhi Siddhi Apartment, 10^th Lane, Khetwadi Back Road, S.P. Road Branch, Girgaum, Mumbai – 400 004, Maharashtra, India

v ICICI Bank

Facilities :

SECURED LOANS	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee Term Loans Banks Secured	56.640	82.955
Working Capital Loans Banks Secured	145.949	51.251
Other Debt Secured	70.787	0.000
Loans Taken for Vehicles Secured	0.000	0.152
Total	273.376	134.358
UNSECURED LOANS	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Deposits Related Parties Unsecured	5.406	21.169
Other Debt Unsecured	150.793	40.002
Total	156.199	61.171

Banking Relations :	--
Auditors :
Name :	RRS and Associates Chartered Accountants
Address :	211, Kamal Complex, Near Stadium Circle, C.G. Road, Navrangpura, Ahmedabad – 380 009, Gujarat, India
Income-tax PAN of auditor or auditor's firm :	ACBPS8901R
Memberships :	v Confederation of Indian Industry (CII) v Federation of Indian Chambers of Commerce and Industry (FICCI)

CAPITAL STRUCTURE

As on 30.09.2011

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
6755000	Equity Shares	Rs. 10/- each	Rs.67.550 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		67.550	67.550	67.550
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		75.310	70.414	57.467
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		142.860	137.964	125.017
LOAN FUNDS
1] Secured Loans		273.376	134.358	177.439
2] Unsecured Loans		156.199	61.171	61.147
TOTAL BORROWING		429.575	195.529	238.586
DEFERRED TAX LIABILITIES		28.909	27.137	25.476
TOTAL		601.344	360.630	389.079
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		185.310	191.389	197.030
Capital work-in-progress		0.000	0.000	5.986
INVESTMENT		7.263	7.263	7.263
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	125.773	46.625	60.355
	Sundry Debtors	437.301	152.609	143.754
	Cash & Bank Balances	54.799	51.679	55.643
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	89.798	62.101	58.600
Total Current Assets		707.671	313.014	318.352
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	280.592	123.012	105.387
	Current Liabilities	13.777	19.943	24.078
	Provisions	4.672	8.257	10.299
Total Current Liabilities		299.041	151.212	139.764
Net Current Assets		408.630	161.802	178.588
MISCELLANEOUS EXPENSES		0.141	0.176	0.212
TOTAL		601.344	360.630	389.079

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	1399.186	939.903	674.840
		Other Income		20.214	40.187
		TOTAL	1399.186	960.117	715.027
Less	EXPENSES
		Office Expenses	1373.141	923.461	696.134
		Administrative Expenses
		Advertising Expenses
		TOTAL	1373.141	923.461	696.134
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		26.045	36.656	18.893
Less/ Add	DEPRECIATION/ AMORTISATION		15.576	15.249	12.542
	PROFIT BEFORE TAX		10.469	21.407	6.351
Less	TAX		5.573	8.460	2.095
	PROFIT AFTER TAX		4.896	12.947	4.256
Less	Prior Period Expenses		0.000	0.000	0.730
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	72.517	68.991
	BALANCE CARRIED TO THE B/S		NA	NA	72.517
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	83.144	58.626	67.195
	TOTAL EARNINGS		83.144	58.626	67.195
	CIF Value of Imports		3.840	2.074	18.670
	Earnings Per Share (Rs.)		0.72	1.92	0.63

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.34	1.35	0.60
Net Profit Margin (PBT/Sales)	(%)	0.74	2.28	0.94
Return on Total Assets (PBT/Total Assets}	(%)	1.17	4.24	1.23
Return on Investment (ROI) (PBT/Networth)		0.07	0.16	0.05
Debt Equity Ratio (Total Liability/Networth)		5.30	2.51	3.03
Current Ratio (Current Asset/Current Liability)		2.36	2.07	2.28

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

During the year the company has achieved turnover of Rs.1399.200 millions as against turnover of Rs.939.000 millions for the year 2009-10. The company has earned profit before tax Rs.10.469 millions as compare to profit before tax of Rs.21.407 for the year 2009-10.

FORM 8:

Corporate identity number of the company	U27101GJ1990PTC013215
Name of the company	MORAKHIA METAL AND ALLOYS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	12, 2^nd Floor, “B” Wing, Mardia Plaza, Near Panchwati Petrol Pump, C.G. Road, Ahmedabad – 380 006, Gujarat, India
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Bank of Maharashtra, 4, Riddhi Siddhi Apartment, 10^th Lane, Khetwadi Back Road, S.P. Road Branch, Girgaum, Mumbai – 400 004, Maharashtra, India E-Mail: bom67@mahabank.co.in
Nature of instrument creating charge	Composite Deep of Hypothecation
Date of instrument Creating the charge	22.10.2010
Amount secured by the charge	Rs. 50.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Cash Credit - Base Rate + 3.5% presently @11.75%. For Pre and Post Shipment - Card Rate from time to time. Currently 7.5% upto 180 days and 7.75% upto 270 days Terms of repayment Review within 12 months. Margin In case of Cash Credit and Pre and post shipment export finance - 25% Margin on paid inventory and receivables upto 90 days. In case of Letter of Credit - upfront 10% on DP basis and 20% on DA basis by way of Term Deposits. Extent and operation of the charge 1st Pari-passu charge by way of hypothecation of Inventory and Receivables and goods under Letter of Credit.
Short particulars of the property charged (Including location of the property)	1st Pari-passu charge by way of hypothecation of Inventory and Receivables and goods under Letter of Credit.

FIXED ASSETS:

v Land

v Factory Building

v Office Building

v Office Equipment

v Plant and Machinery

v Motor Car

v Computer

v Furniture and Fixture

v Godown

v Refrigerator

v Borwell

v Cellular

v Wind Mill

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	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	--
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	--
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	Yes
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

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.49.64
UK Pound	1	Rs.77.79
Euro	1	Rs.65.05

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--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		43

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.