MIRA INFORM REPORT

Report Date :

30.05.2012

IDENTIFICATION DETAILS

Name :	SAKAR INDUSTRIES LIMITED (w.e.f. 24.10.2011)
Formerly Known As :	SAKAR INDUSTRIES PRIVATE LIMITED (w.e.f. 19.09.2011) SAKAR FERRO ALLOYS PRIVATE LIMITED
Registered Office :	H 10, Madhavpura Market, Shahibaug Road, Ahmedabad – 380 004, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.07.1996
Com. Reg. No.:	04-030244
Capital Investment / Paid-up Capital :	Rs.13.950 Millions
CIN No.: [Company Identification No.]	U27100GJ1996PLC030244
TAN No.: [Tax Deduction & Collection Account No.]	AHMS08728G / AHMS06283E
PAN No.: [Permanent Account No.]	AADS3756P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Aluminium Ingots, Notch Bars, Shots, Zinc Ingots, Aluminium 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 509000
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 dealing 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

LOCATIONS

Registered Office :	H 10, Madhavpura Market, Shahibaug Road, Ahmedabad – 380 004, Gujarat, India
Tel. No.:	91-79-25622281/ 25624681
Mobile No.:	91-9898554414 (Mr. Jatin M. Shah)
Fax No.:	91-79-25620620
E-Mail :	info@sakarferro.com arfinad1@sancharnet.in mahendra@sakarferro.com
Website :	http://www.sakarferro.com
Area :	1500 sq. ft.
Location :	Owned
Factory :	140-141, Santej – Vadsar Road, Post Santej, Taluka – Kalol, District – Ghandhinagar – 382 721, Gujarat, India
Tel. No.:	91-2764-286177
Fax No.:	91-2764-286176
Sales Depot/ Branch Office :	Located at: v Faridabad v Hospet v Gubli

DIRECTORS

As on 17.09.2011

Name :

Mr. Jatin Mahendra Shah

Designation :

Director

Address :

Khandwala Bunglow, Near Post Office, Hirani Haveli, Dharam Nagar, Sabarmati, Ahmedabad- 380 005, Gujarat, India

Date of Birth/Age :

09.12.1983

Date of Appointment :

10.01.2002

DIN No.:

00182683

Name :

Mr. Rameshkumar Rikhavchand Shah

Designation :

Director

Address :

Khandwala Bunglow, Near Post Office, Hirani Haveli, Dharam Nagar, Sabarmati, Ahmedabad- 380 005, Gujarat, India

Date of Birth/Age :

23.05.1965

Date of Appointment :

25.09.2009

DIN No.:

00182764

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	U65910GJ1995PLC025589	Arfin Enterprises Limited	Director	25-04-95	25-04-95	Active	NO
2	U65910GJ1995PLC026735	Arfin Capital Limited	Director	17-07-95	17-07-95	Active	NO
3	U27100GJ1996PLC030244	Sakar Industries Limited	Director	25-09-09	25-09-09	Active	NO

Name :

Mr. Mahendrakumar Rikhavchand Shah

Designation :

Director

Address :

Khandwala Bunglow, Near Post Office, Dharam Nagar, Sabarmati, Ahmedabad – 380 005, Gujarat, India

Date of Birth/Age :

09.03.1963

Date of Appointment :

20.09.2011

DIN No.:

00182746

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	U65910GJ1995PLC025589	Arfin Enterprises Limited	Director	25-04-95	25-04-95	Active	NO
2	U65910GJ1995PLC026735	Arfin Capital Limited	Director	17-07-95	17-07-95	Active	NO
3	L65990GJ1992PLC017460	Arfin India Limited	Director	30-09-98	30-09-98	Active	NO
4	U27100GJ1996PLC030244	Sakar Industries Limited	Director	20-09-11	20-09-11	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 17.09.2011

Names of Shareholders	No. of Shares	Percentage of Holding
Vimalaben Rameshkumar shah	89700	6.43
Jatin Mahendrakumar Shah	66490	4.77
Reshmi Deepakkumar Shah	45100	3.23
Arfin India Limited, India	357000	25.59
Arfin Capital Limited, India	115000	8.24
Pushpa Mahendrakumar Shah	55120	3.95
Rohan Rameshkumar Shah	5000	0.36
Rani Jatin Shah	17000	1.22
Shobha Dilip Daga	15000	1.08
Dilip Daga	7500	0.54
Dilip Daga as Karta of Dilip Daga (HUF)	7500	0.54
Ghewarchand Basiram Nahta	5000	0.36
Sureshbhai Ghewarchand Nahta	10000	0.72
Jawerilal Ghewarchand Nahta	25000	1.79
Sushilaben Parasamal Nahta	10000	0.72
Seemaben Deepchand Shah	95000	6.81
Khushoo Mahendrabhai Shah	25000	1.79
Hardik Rameshbhai Shah	135000	9.68
Pooja Mahendrabhai Shah	110000	7.89
Rohan Rameshbhai Shah	34000	2.44
Manjuben Madanlal Bafna	75000	5.38
Mayank Madanlal Bafna	25000	1.79
Mahendra R. Shah	29590	2.12
Ramesh R. Shah	36000	2.58
Total	1395000	100.00

As on 17.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	33.84
Directors or relatives of directors	60.43
Other top fifty shareholders	5.73
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Aluminium Ingots, Notch Bars, Shots, Zinc Ingots, Aluminium Alloys.

Products :

Item Code No. (ITC Code)	271271127110
Product Description	Non Ferrous Metals and Ferrous Metals

v Aluminum Deox Products

v Aluminum Alloys Ingots

v Ferro Alloys

v Aluminum Wire Rods

GENERAL INFORMATION

Customers :

v JSW Limited

v Essar Steel Limited

v NatSteel, Singapore

v Hindustan Aeronautics Limited

v TISCO Limited

v Visw esaria Iron and Steel Limited

v Shah Alloys Limited

v SABIC

v Sunbeam Auto Limited

v Alicon Castalloy Limited

v JSL Stainless Limited

v Glencore

v RICO Auto Limited

No. of Employees :

Not Available

Bankers :

v Axis Bank Limited, Credit Management Center, 2^nd Floor, 3^rd Eye One, Near Panchavati Crossing, C.G. Road, Ahmedabad - 380 009, Gujarat, India

v Punjab National Bank

v Vijaya Bank, Ahmedabad, Gujarat, India

v State Bank of Mysore, Ahmedabad, Gujarat, India

v State Bank of India, Overseas Branch, Ahmedabad, Gujarat, India

v State Bank of India, MID Corporate Branch, Zodiac Avenue, Opposite Commissioner’s Bunglows, Law Garden, Ahmedabad – 380 006, Gujarat, India

v HDFC Bank Limited

v Standard Chartered Bank

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Rupee Term Loans banks secured	380.453	170.856
Rupee Term Loans financial institutions secured	1.696	0.948
Total	382.149	171.804

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Other debt unsecured	93.564	8.812
Total	93.564	8.812

Banking Relations :	--
Financial Institutions :	v Citi Corporation Finance (India) Limited v Reliance Capital Limited
Auditors :
Name :	Nalin K. Thakkar and Company Chartered Accountants
Address :	602, Samudra Annexe, Opposite C.G. Road, Near Hotel Classic Gold, Navarangpura, Ahmedabad – 380 006, Gujarat, India
Tel. No.:	91-79-26568526
Mobile No.:	91-9825047487
Fax No.:	91-79-28568598
E-Mail :	nalinkth@yahoo.co.in
PAN No.:	AAKPT0207G
Associates :	v Arfin India Limited, India (CIN No.: L65990GJ1992PLC017460) v Arfin Enterprises Limited, India (CIN No.: U65910GJ1995PLC025589) v Arfin Capital Limited, India (CIN No.: U65910GJ1995PLC026735) v Mahendra Corporation, India

CAPITAL STRUCTURE

As on 17.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1395000	Equity Shares	Rs.10/- each	Rs.13.950 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		13.950	12.450	11.950
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		113.224	80.970	69.102
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		127.174	93.420	81.052
LOAN FUNDS
1] Secured Loans		382.149	171.804	18.635
2] Unsecured Loans		93.564	8.812	10.493
TOTAL BORROWING		475.713	180.616	29.128
DEFERRED TAX LIABILITIES		4.342	2.624	1.541
TOTAL		607.229	276.660	111.721
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		82.764	67.878	22.881
Capital work-in-progress		2.272	0.000	4.168
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	287.944	127.587	62.955
	Sundry Debtors	401.320	198.304	58.284
	Cash & Bank Balances	2.906	30.006	10.061
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	22.957	15.470	18.746
Total Current Assets		715.127	371.367	150.046
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	172.255	67.639	12.881
	Other Current Liabilities	1.200	85.318	51.699
	Provisions	19.491	9.667	0.862
Total Current Liabilities		192.946	162.624	65.442
Net Current Assets		522.181	208.743	84.604
MISCELLANEOUS EXPENSES		0.012	0.039	0.068
TOTAL		607.229	276.660	111.721

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net	1858.673	1021.838	791.427
		Other Income	2.028	1.528
		TOTAL (A)	1860.701	1023.366	791.427
Less	EXPENSES
		Consumption materials changes inventories	1642.454	894.157
		Manufacturing service costs	21.494	9.370
		Employee related expenses	11.853	4.579
		Administrative selling other expenses	30.837	20.785
		TOTAL (B)	1706.638	928.891	789.282 (including interest and depreciation)
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		154.063	94.475
Less	INTEREST FINANCIAL EXPENSES (D)		0.000	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		154.063	94.475
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.003	2.013
	PROFIT BEFORE TAX (E-F) (G)		150.060	92.462	2.145
Less	TAX (H)		9.214	3.326	0.707
	PROFIT AFTER TAX (G-H) (I)		140.846	89.136	1.438
	Earnings Per Share (Rs.)		100.96	71.60	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.57	8.71	0.18
Net Profit Margin (PBT/Sales)	(%)	8.07	9.05	NA
Return on Total Assets (PBT/Total Assets}	(%)	18.81	21.05	1.24
Return on Investment (ROI) (PBT/Networth)		1.18	0.99	0.03
Debt Equity Ratio (Total Liability/Networth)		5.26	3.67	1.17
Current Ratio (Current Asset/Current Liability)		3.71	2.28	2.29

LOCAL AGENCY FURTHER INFORMATION

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	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
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	Yes
19) Payments terms	No
20) Export / Import details (if applicable)	No
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	Yes
30) Major Shareholders, if available	Yes

Note:

The registered office of the company has been shifted from 715, Sahajanand Complex, Shahibaug Road, Ahmedabad – 380 004, Gujarat to the present address w.e.f. 16.08.2010.

Bankers Charges Report as per Registry

Corporate identity number of the company	U27100GJ1996PTC030244
Name of the company	SAKAR FERRO ALLOYS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	H 10, Madhavpura Market, Shahibaug Road, Ahmedabad - 380 004, Gujarat , India E-Mail: info@sakarferro.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10194139
Type of charge	Immovable Property Book Debts Movable Property (not being pledge) Floating Charge Others (Movable Plant and Machinery)
Particular of charge holder	Axis Bank Limited, Credit Management Center, 2^nd Floor, 3^rd Eye One, Near Panchavati Crossing, C.G. Road, Ahmedabad - 380 009, Gujarat, India E-Mail: nilesh.kumar@axisbank.com
Nature of description of the instrument creating or modifying the charge	- Supplemental Deed of Hypothecation. - Supplemental of Simple Mortgage.
Date of instrument Creating the charge	30.11.2010
Amount secured by the charge	Rs.398.558 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: For CC and Term Loan: BPLR - 3.75% i.e. 11.00% p. a. (presently BPRL @ 14.75%) For LC (Inland/Import): 65% of Bank's standard Schedule of Charges. Terms of Repayment: Cash Credit Repayable on Demand and Term Loan is repayable in 53 monthly installments of Rs.0.463 million each and last installment of Rs.0.464 million. Repayment to commence tentatively from July 2010. Margin: Cash Credit Limit : Stocks :25%, Book Debts(not older than 120 days) : 35% Term Loan : 34.21% LC (Inland/Foreign) : 15% Extent and Operation of the charge: The Charge by way of Hypothecation on Current Assets, Movables, Plant and Machinery and Equitable Mortgage on immovable properties being non agricultural freehold land as prescribed in instrument of charge attached herewith extends to secure the aggregate credit facility of Rs.398.500 millions together with interest, cost and charges etc. Others: As per documents executed in favour of bank from time to time by borrower company.
Short particulars of the property charged	NA freehold land adm. about 3814.38 sq. mtrs. and NA land adm. about 430 sq. mtrs. located at Block No.140 of old RS No.113, 134 and 136 of Village Santej, Taluka Kalol with construction standing thereon Non agri. freehold land adm. about 2378 sq.mtrs. of Block No.141 alongwith construction standing thereon situate, lying and being at Mouje: Santej, Taluka: Kalol in the registrtion district of Gandhinagar. All the present and future book-debts, outstanding monies, receivables claims bills, contracts, engagements and securities which are due and owing to borrower in present and future. For working capital limits: Hypothecation of entire current assets of Company (Both current and Future) Collateral: Extension of charge over Plant and Machinery (including other movable fixed assets) acquired out of term loan. For Term Loan: First charge over Plant and Machinery (including other movable fixed assets) acquired out of term loan. Collateral: Extension of charge over entire current assets of the co. (Both current and Future) All tangible movable, machinery, plant and machinery, fixtures, fittings other installation, cranes, furniture, computers and other accessories lying in premises or in godowns of borrower. Hypothecation of all the stock in trade both present and future consisting of stock including raw material, stock in process, finished goods such as packing materials, consumable stores and spares etc.
Particulars of the present modification	The Original Limit secured by Hypothecation and Mortgage is enhanced from Rs.250.000 millions to 398.500 millions and charge on book debts and movable and immovable assets stands extended to secure the enhanced limit of Rs.398.500 millions as under. C.C.: Rs.145.000 millions, Term Loan: Rs.23.558 millions and L.C. Rs.230.000 millions with sub limit as under: WCDL in FCNR Rs.75.000 millions and LER Rs.10.000 millions (sub limit of CC), Buyers Credit Rs. 230.000 millions and BG Limit Rs.10.000 millions (sub limit of LC)

FIXED ASSETS:

v Land

v Building

v Electrical Installation

v Plant and Machinery

v EPABX and Phone

v Air Conditioner

v Furniture and Fixtures

v Scooters

v Computer and Printers

v Weighing Scale

v Trucks

v Loading Tempo

v Telephone

v Car – Verna

v Forklift

v Bikes

v Lorry

v Motorcar – Civic

v Motorcar - BMW

v Motorcar – Van

v Gas Connection Charges

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.55.58
UK Pound	1	Rs.87.14
Euro	1	Rs.69.73

INFORMATION DETAILS

Report Prepared by :

SMN

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	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.