MIRA INFORM REPORT

Report Date :

30.03.2012

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 refractories, fire bricks, high alumina bricks, high alumina cement, refractory castable, mortar, acid resistant bricks.
No. of Employees :	114 (In Office-56, In Factory-58) (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 640000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The company is progressing well. 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 :	Ms. Swati Rao
Designation :	Executive Manager
Contact No.:	91-7622-405741

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
Factory :	Industrial Area, Katey Ghat, Katni-4835021, Madhya Pradesh, India
Tel. No.:	91-7622-222682 / 223212 / 406394
Fax No.:	91-7622-222733 / 406051
Location :	Owned

DIRECTORS

AS ON 30.09.2011

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 :	Mrs. Vandana
Designation :	Export Manager
Name :	Ms. Swati Rao
Designation :	Executive Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2011

Names of Shareholders	No. of Shares
Bidam Bai Gugalia	1030
Chandkuwar Bai Gugalia	1300790
Shantilal Gugalia	1415490
Leela Gugalia	1030
Kantilal Gugalia	1282770
Kanta Gugalia	1030
Sharad Chandra Gugalia	1178450
Akila Gugalia	1030
Jashwant Singh Gugalia	1030
Arun Kumar Jain	1030
Vinay Kumar Jain	1030
Total	5184710

AS ON 30.09.2011

Equity Shares Break Up	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Supplier and Exporter of refractories, fire bricks, high alumina bricks, high alumina cement, refractory castable, mortar, acid resistant bricks.
Terms :
Selling :	L/C
Purchasing :	CAD Through Bank

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 :

Wholesalers and End Users

· Agarwal Commercial Services, Katni

· Ajay Food Products, Katni

· Ankur Trading Company, Muzaffar Nagar

· B.M. Enterprises, Faridabad

· Bharat Heavy Electricals Limited, Malleswaram

· Bharti Drilling Company, Katni

· C.G.lspat (Private) Limited, Raipur

· Cement Corporation of India Limited, Tandur

· Cethar Vessels Limited, Tiruchirapalli

· Arora Steel Udyog Private Limited, Allahabad

No. of Employees :

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

Bankers :

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

· ICICI Bank

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
ICICI Bank Wagon-R Car Loan		0.139
With Allahabad Bank S. O. D. A/c Jabalpur (Against FDR)		(0.107)
State Bank of India, Katni
SME Care	132.124	11.421
SME (Adhoc A/c)		2.499
Cash Credit A/c (Against Debtors and hypothecation of Stocks)		56.898
Term Loan A/c (Against Plant and Machinery)		12.395
Total	132.124	83.245
Secured loan are guaranteed jointly and severally by two directors of the company

HDFC Bank Cash Credit Limit Rs. 95.500 Millions

Banking Relations :	--
Auditors :
Name :	Agrawal Gupta and Company Chartered Accountant
Address :	23/24, Panchsheel Cinema Building, Sitabaldi, Nagpur-440012, Maharashtra, India
Tel No.:	91-712-22525541
Email :	agarwalandgupta@gmail.com
Pan No.:	AASSA0552L

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	29.560	22.286	12.488
	Other Current Liabilities			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

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

PROSPECTS AND OUTLOOK (AS ON 31.03.2010)

The company was facing acute shortage of open and covered space and on account of it further expansion plans mere held up. The company, this year, has purchased nearly 60 acres of land, at village Gudri, about 14 kilometers from the present location and civil works for erection of boundary walls and also of foundations of some machinery have commenced from 2^nd March of this year. It is expected that production of high alumina cement and some other products will start from March 2011 from the new plant. Applications have been made to the banks for sanctioning of term and working capital loans and work would be expedited after receipt of bank finance.

Emphasis would be laid on modernizing the new plant and increasing the productivity of labour so as to save in cost of production.

The company would be able to start manufacturing some new products in the new plant, which it has not been able to do so far on account of shortage of covered and open space. The turnover and profitability is therefore likely to increase in the coming years. The Company is having a team of dedicated professionals who are dedicated to the mission of the company. The company has all-India marketing / sales network to cater to the needs of the domestic market.

Considering all parameters and Indian market scenario directors of the company are quite confident and hopeful that results of the coming year will be bright and promising. Directors are cautiously optimistic about prospects for 2010-2011.

FORM 8

Corporate identity number of the company	U74999MH2005PTC158200
Name of the company	MAHAKOSHAL REFRACTORIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	B-801, Eternia, Hiranandani Garden, Powai, Mumbai-400076, Maharashtra, India
This form is for	Modification of charge
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India
Nature of instrument creating charge	Supplementary Letter of Hypothecation.
Date of instrument Creating the charge	29.04.2011
Amount secured by the charge	Rs. 169.200 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest at the rate as may be communicated by the Bank from time to time. Terms of repayment Working capital facility shall be payable on demand. Term loan facility shall be repayable in suitable installments. Margin As may be stipulated by the Bank from time to time. Extent and operation of the charge Hypothecation by way of First Charge on Company's Stocks, Book Debts, Plant and Machinery and Vehicles etc, for the repayment of Rs. 169.200 millions together with interest, costs, charges, expenses and other moneys due and payable by the Company to the Bank.
Short particulars of the property charged (Including location of the property)	Stock in Trade, consisting of raw materials, goods in process of manufacturing finished goods, and other merchandise whatsoever being movable properties All the debts, that is, all the book debts, out standings, monies receivables, claims, bills, invoice documents, contracts, guarantees, and rights The movable plant and machinery and vehicles, which may now or at any time hereafter belong to the Borrower or come to the
Charge identification number of the charge to be modified	10258288
Particulars of the present modification	The Charge shall now stand increased from to Rs. 159.600 millions to Rs. 169.200 millions against the security of Stocks, Book Debts, Plant and Machinery and Vehicles of the Company.

TRADE REFERENCES:

· Katni Minerals Private Limited

· Allied Minerals Industries Private Limited

· Agarwal Commercials

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 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.50.92
UK Pound	1	Rs.81.21
Euro	1	Rs.67.85

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	NO
--AFFILIATION	YES/NO	NO
--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.