MIRA INFORM REPORT

Report Date :

18.09.2012

IDENTIFICATION DETAILS

Name :	SURAT METALLICS LIMITED (w.e.f. 05.10.2009)
Formerly Known As :	SURAT METALLICS PRIVATE LIMITED
Registered Office :	Road No.3, Plot No.815, Sachin G.I.D.C., Surat – 394 230, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	05.07.2002
Com. Reg. No.:	04-040936
Capital Investment / Paid-up Capital :	Rs.40.048 Millions
CIN No.: [Company Identification No.]	U24119GJ2002PLC040936
TAN No.: [Tax Deduction & Collection Account No.]	SRTS02191A
PAN No.: [Permanent Account No.]	AAGCS6017G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Metallised Films
No. of Employees :	Approximately

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 2490000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Financially company is doing well. Trade relations are reported to be fair. Business is active. Payment are reported to be usually correct and as per commitment The company can be considered 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

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	CARE
Rating	BB (Long term Bank Facilities)
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation
Date	April, 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.

LOCATIONS

Registered Office/ Factory 1 :	Road No.3, Plot No.815, Sachin G.I.D.C., Surat – 394230, Gujarat, India
Tel. No.:	91-261-2398494/ 2398493
Fax No.:	Not Available
E-Mail :	dmsvilkiassociates@yahoo.com
Factory 2 :	Plot No. 8204, Sachin Industrial Estate, Talangpur, G.I.D.C., Surat
Factory 3 :	Plot No. A-17/1, Ichchapore Industrial Estate, Bhatpore, G.I.D.C., Surat
Corporate Office :	6/1183 Mahidharpura, Dalia Sheri, Surat-395003, Gujarat, India
Tel. No.:	91-261-2411917/ 2411918
E-Mail :	contact@suratmetallics.com

DIRECTORS

As on 30.09.2011

Name :

Mr. Pragneshbhai Ishverlal Jariwala

Designation :

Director

Address :

G-2, Somnath Mahadev Society, Old Umra Jakatnaka, Surat – 395 007, Gujarat, India

Date of Birth/Age :

26.04.1972

Date of Appointment :

05.07.2002

DIN No.:

00274721

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17297GJ2000PTC039004	SURAT METLON PRIVATE LIMITED	Director	01/12/2000	01/12/2000	-	Active	NO
2	U24119GJ2002PLC040936	SURAT METALLICS LIMITED	Director	05/07/2002	05/07/2002	-	Active	NO
3	U34103GJ2006PTC048500	GUJARAT MOTORS PRIVATE LIMITED	Director	19/06/2006	19/06/2006	-	Active	NO
4	U74300WB1987PTC042677	NIRVAN RESOURCES PVT LTD	Director	30/09/2009	30/09/2009	-	Active	NO
5	U51109WB2008PTC122303	SIMPLEX VINIMAY PRIVATE LIMITED	Director	01/04/2011	01/04/2011	-	Active	NO

Name :

Mr. Ishverlal Shivlal Jariwala

Designation :

Director

Address :

G-2, Somnath Mahadev Society, Old Umra Jakatnaka, Surat – 395 007, Gujarat, India

Date of Birth/Age :

12.11.1943

Date of Appointment :

10.09.2002

DIN No.:

00340935

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24119GJ2002PLC040936	SURAT METALLICS LIMITED	Director	10/09/2002	10/09/2002	-	Active	NO
2	U74300WB1987PTC042677	NIRVAN RESOURCES PVT LTD	Director	30/09/2009	30/09/2009	-	Active	NO

Name :

Mr. Dharmesh Harishkumar Jariwala

Designation :

Director

Address :

G-2, Somnath Mahadev Society, Old Umra Jakatnaka, Surat – 395 007, Gujarat, India

Date of Birth/Age :

07.10.1970

Date of Appointment :

30.09.2009

DIN No.:

02809908

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Pragneshbhai Ishverlal Jariwala	328480
Nilisha Pragnesh Jariwala	521920
Sheelaben Ishverlal Jariwala	532530
Ishwerlal S Jariwala	311080
Ishwerlal S Jariwala HUF	343100
Pragnesh I Jariwala HUF	277100
Surat Metlon Private Limited, India	8920
Shefali I Jariwala	13495
Jyoti Kailashkumar Jariwala	1
Minaxi Harishkumar Jariwala	1
Reshma Maheshkumar Jariwala	1
Dahyabhai L Jariwala	1
Dahyabhai L Jariwala and Sons	1
Harishkumar D Jariwala HUF	1
Satyanarayan Badla Works, India	1
Maheshkumar D Jariwala HUF	1
Rashmi Traders, India	1
Kailashkumar D Jariwala HUF	1
Kalindi Traders, India	1
Gujarat Motors Private Limited, India	12500
Nirvan Resources Private Limited, India	202670
Puja Chemicals Private Limited, India	1450506
Sohanlal Phalore	2500
Total	4004812

List Allottees as on 31.03.2012

Names of Shareholders	No. of Shares
Puja Chemicals Private Limited, India	73950
Total	73950

List of Allottees as on 03.03.2012

Names of Shareholders	No. of Shares
Puja Chemicals Private Limited, India	113000
Total	113000

List of Allottees as on 31.03.2011

Names of Shareholders	No. of Shares
Puja Chemicals Private Limited, India	226000
Total	226000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Bodies corporate	41.58
Directors or relatives of Directors	58.36
Other top fifty shareholders	0.06
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Metallised Films

Products :

ITC number of product	Description of product or services
502	Metallized Polyfilms and Metallized Yarn

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Bank of Baroda, Bhagatalav, Kanpith, Surat-39500, Gujarat, India

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	238.436	98.787
Total	238.436	98.787
Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Loans directors unsecured	0.000	6.914
Total	0.000	6.914

Banking Relations :	--
Auditors :
Name :	Pradeep Kumar Singhi Chartered Accountant
Address :	President Plaza, Near RTO Office, Ring Road, Surat, Gujarat, India
Tel. No.:	91-261-2474714/ 2471428
Fax No.:	91-261-2474954
PAN No.:	AAHFP8463D
Related Parties:	Surat Metlon Private Limited, India CIN No.: U17297GJ2000PTC039004 I S Jariwala HUF, India PAN No.: AAAHI2673H Surya Industres, India PAN No.: AADHP4095B

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4004812	Equity Shares	Rs.10/- each	Rs.40.048 Millions

As on 30.09.2011

Authorised Capital : Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.49.188 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		40.048	27.598	21.983
2] Share Capital Pending Allotment		0.000	0.000	0.000
3] Reserves & Surplus		584.130	283.548	145.751
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		624.178	311.146	167.734
LOAN FUNDS
1] Secured Loans		238.436	98.787	53.222
2] Unsecured Loans		0.000	6.914	7.311
TOTAL BORROWING		238.436	105.701	60.533
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		862.614	416.847	228.267
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		202.455	184.491	92.540
Capital work-in-progress		267.494	6.742	0.000
INVESTMENT		45.954	45.017	52.160
DEFERREX TAX ASSETS		28.014	4.605	3.182
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	127.368	81.653	29.260
	Sundry Debtors	166.427	158.310	44.834
	Cash & Bank Balances	102.760	8.746	0.315
	Other Current Assets	10.852	16.123	0.000
	Loans & Advances	177.091	37.911	39.205
Total Current Assets		584.498	302.743	113.614
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	36.298	34.887	12.980
	Other Current Liabilities	209.000	75.970	10.563
	Provisions	20.503	15.894	9.686
Total Current Liabilities		265.801	126.751	33.229
Net Current Assets		318.697	175.992	80.385
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		862.614	416.847	228.267

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1788.521	1041.918	545.769
		Other Income	3.359	4.162	0.880
		TOTAL (A)	1791.880	1046.080	546.649
Less	EXPENSES
		Raw Material Consumed	1592.637	897.966	518.776
		Employees Related Expenses	14.254	8.357
		Manufacturing Expenses	77.535	58.604
		Administrative & General Expenses	9.018	8.076
		TOTAL (B)	1693.444	973.003	518.776
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		98.436	73.077	27.873
Less	FINANCIAL EXPENSES (D)		21.573	8.511	11.989
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		76.863	64.566	15.884
Less/ Add	DEPRECIATION/ AMORTISATION (F)		26.604	19.911	14.365
	PROFIT BEFORE TAX (E-F) (G)		50.259	44.655	1.519
Less	TAX (H)		(13.774)	13.543	(0.206)
	PROFIT AFTER TAX (G-H) (I)		64.033	31.112	1.725
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		38.515	7.403	5.678
	BALANCE CARRIED TO THE B/S		102.548	38.515	7.403
	Earnings Per Share (Rs.)		15.99	0.00	0.00

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.57	2.97	0.32
Net Profit Margin (PBT/Sales)	(%)	2.81	4.29	0.28
Return on Total Assets (PBT/Total Assets}	(%)	6.39	9.17	0.74
Return on Investment (ROI) (PBT/Networth)		0.08	0.14	0.01
Debt Equity Ratio (Total Liability/Networth)		0.81	0.75	0.56
Current Ratio (Current Asset/Current Liability)		2.20	2.39	3.42

LOCAL AGENCY FURTHER INFORMATION

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	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	No
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	No
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
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

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24119GJ2002PLC040936
Name of the company	SURAT METALLICS LIMITED
Address of the registered office or of the principal place of business in India of the company	Road No.3, Plot No.815, Sachin G.I.D.C., Surat – 394230, Gujarat, India Email: dmsvilkiassociates@yahoo.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10270417
Type of charge	· Book debts · Stock · Plant and Machineries
Particular of charge holder	Bank of Baroda, Bhagatalav, Kanpith, Surat-39500, Gujarat, India Email: bhagat@bankofbaroda.co.in
Nature of instrument creating charge	Instrument of Extension Relating to Deposit of Title Deeds
Date of instrument Creating the charge	07.06.2012
Amount secured by the charge	Rs.2420.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Extent and Operation of the charge Charge shall last till the currency of consortium loan/limit granted to company Rs. 1496.100 Millions by Bank of Baroda and Rs. 924.400 Millions by State Bank of India total aggregating of Rs. 2420.500 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First Pari Passu charge on Borrower's Property situated at Plot No 815, Revenue Block No 337/P + 340/P, G.I.D.C., Sachin Industrial Estate, Gabheni, Surat Plot No 8204, Sachin Industrial Estate, Talangpur, G.I.D.C., Surat Plot No A-17/1, Ichchapore Industrial Estate, Bhatpore, G.I.D.C. Surat
Date of instrument modifying the charge	18.04.2012
Particulars of the present modification	Charge is modified to register the deed of Instrument of Extension relating to deposit of Tittle Deed executed by consortium lending agencies (Bank of Baroda and State Bank of India) for aggregating amount of Rs. 2420.500 Millions on 7/6/2012.

FIXED ASSETS:

· Building (Coating)

· Building (Metallise)

· Computer System

· Electrifications (Coating)

· Electrifications (Comman)

· Electrifications (Metallise)

· Office Equipments

· Industrial Shed

· Plant and Machinery (Coating)

· Plant and Machinery (Metallise)

· Plant and Machinery (Common)

· Plant and machinery (Glitter)

· Furniture, Fixtures and Fittings

· Vehicles (Motor Car)

· Vehicles (Commercial)

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.53.97
UK Pound	1	Rs.87.52
Euro	1	Rs.70.84

INFORMATION DETAILS

Report Prepared by :

MRI

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	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		47

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.