MIRA INFORM REPORT

Report Date :

05.04.2013

IDENTIFICATION DETAILS

Name :	METALFAB HIGHTECH PRIVATE LIMITED
Registered Office :	E-23-25, M.I.D.C. Industrial Area, Hingna Road, Nagpur - 440 028, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	17.04.1996
Com. Reg. No.:	11-162306
Capital Investment / Paid-up Capital :	Rs.28.750 Millions
CIN No.: [Company Identification No.]	U65921MH1996PTC162306
PAN No.: [Permanent Account No.]	AABCM0271D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Tubular Towers for generation of Electricity through Wind Mill
No. of Employees :	35 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 1200000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported as fair. Business is active. Payment terms are usually correct and as per commitment. The company can be considered 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.

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	ICRA
Rating	Short Term Rating = A3
Rating Explanation	Moderate degree of safety and higher credit risk
Date	19.10.2012

Rating Agency Name	ICRA
Rating	Long Term Rating = BBB -
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	19.10.2012

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.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Nandkumar Nair
Designation :	Account Department
Contact No.:	91-7104-237998
Date :	05.05.2013

LOCATIONS

Registered Office / Factory :	E-23-25, M.I.D.C. Industrial Area, Hingna Road, Nagpur - 440 028, Maharashtra, India
Tel. No.:	91-7104-237998 / 234240
Fax No.:	91-7104-236713
E-Mail :	info@metalfabhightech.com purchase@metalfabhightech.com marketing@metalfabhightech.com finance@metalfabhightech.com metalfab@rediffmail.com nknairgp@gmail.com
Website :	http://metalfabhightech.com
Location :	Rented

DIRECTORS

As on 29.09.2012

Name :	Mr. Pramod Kumar Jain
Designation :	Director
Address :	533, New Colony, Nagpur, Maharashtra, India
Date of Birth/Age :	31.07.1947
Date of Appointment :	17.04.1996
Pan No. :	ACGPJ0882R
DIN No.:	00207660
Name :	Mr. Sandeep Satish Jain
Designation :	Director
Address :	5-C, New Colony Nagpur, Manarashtra, India
Date of Birth/Age :	02.02.1965
Date of Appointment :	17.04.1996
Pan No. :	ABGPJ8280Q
DIN No.:	01678192
Name :	Mr. Sahil Jain
Designation :	Director
Address :	41/1, Nehru Nagar (East), Bhilai Durg Chhattisgarh – 490020, India
Date of Birth/Age :	11.12.1983
Date of Appointment :	05.07.2011
DIN No.:	01696874
Name :	Mr. Hukamchand Jain
Designation :	Director
Address :	Jain House, Khapri, Wardha Road, Nagpur, Maharashtra, India
Date of Birth/Age :	27.10.1930
Date of Appointment :	17.04.1996
DIN No.:	01736278
Name :	Mr. Nitin Jalandar Shendge
Designation :	Nominee Director
Address :	202, 2^nd Floor, Silver Lsle off Caesar Road, Mahhatarpada, Amboli, Andheri (West), Mumbai, India
Date of Birth/Age :	11.12.1983
Date of Appointment :	05.07.2011
DIN No.:	03566337

KEY EXECUTIVES

Name :	Mr. Nandkumar Nair
Designation :	Account Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Hukumchand Jain Karta of H C Jain HUF	282500
Kusuin Jain	62250
Anita Jain	348750
Sandeep Jain	396250
Raju Jain	90000
H. C. Jain Trustee of P. P. Jain Trust	183825
Shakun Gupta	1250
Mohini Mala Jain	1250
Manju Jain	1250
Sahil Jain	125000
Goldwin Merchandise Private Limited	587500
MFI Infotech Private Limited	75000
Metalfab Industrial Enterprises Private Limited	92400
PPJ Industrial and Commercial Enterprises Private Limited	99225
H. C. Jain	60300
Pramod Kumar Jain	432400
Veena Jain	35850
Total	2875000

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	29.71
Directors or relatives of Directors	42.04
Other top fifty shareholders	28.25
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Tubular Towers for generation of Electricity through Wind Mill
Terms :
Selling :	Cash / Credit
Purchasing :	Cash / Credit

GENERAL INFORMATION

Customers :

End Users

• ENERCON
• Isgec John Thompson
• Bellis India Limited
• Alstom Projects India formerly ABB
• Thermax Limited
• EMC
• AFCONS, HCC, DAVYDEG
• Wellmann / Samrat furnaces/ Nirvan LOI Private Limited
• BHEL
• Tisco Growth Shop
• Larsen and Toubro

No. of Employees :

35 (Approximately)

Bankers :

• IDBI Bank Limited, 3rd Floor, Gupta Tower, Civil Lines, Nagpur – 440001, Maharashtra, India
• Oriental Bank of Commerce "Assa House", Kingsway, Nagpur - 440001, Maharashtra, India

Tel. No.: 91-20-26135492

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long-term borrowings
Rupee term loans from banks	93.253	85.027
Short-term borrowings	0	0
Working capital loans from banks Cash Credit from Bank is secured by hypothecation of raw materials, finished and semi-finished goods, book debts and other assets and further secured by personal guarantee of directors	267.479	162.534
Total	360.732	247.561
Term Loan from Oriental Bank of Commerce includes due on Buyers credit denominated in foreign currency raised from HSBC Bank. The term loan of Oriental Bank of Commerce and IDBI Bank Limited is secured by mortgage of land, first charge on fixed assets of the company and hypothecation of Plant and Machinery installed and /or proposed to be installed and other items.

Banking Relations :	--
Auditors :
Name :	P.N. Bahri and Company Chartered Accountants
Address :	4th ,3rd Floor NMC Complex Sadar Complex 440001
PAN.:	AABFP2336H
Subsidiary companies :	Metalfab Overseas Private Limited
Enterprises under significant influence of key management personnel :	P P Jain Trust MFI Infotech Private Limited Bhilai Motor Car Company Goldwin Merchandise Private Limited Vidarbha Gas Vessels Private Limited Bharat Industrial Works

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3300000	Equity Shares	Rs.10/- each	Rs.33.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2875000	Equity Shares	Rs.10/- each	Rs.28.750 Millions

Disclosure of shareholding more than five per cent in company

Name of shareholder	Number of shares held in company	Percentage of shareholding in company
Pramod Jain	4,24,000	14.75%
Goldwin Merchandise Private Limited	5,87,500	20.43%
Sandeep jain	3,96,250	13.78%
Anita Jain	3,48,750	12.13%
H C Jain HUF	2,82,500	9.83%
P P Jain Trust	1,83,825	6.39%

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		28.750	28.750	28.750
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		290.237	248.935	196.791
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		318.987	277.685	225.541
LOAN FUNDS
1] Secured Loans		360.732	247.561	287.378
2] Unsecured Loans		10.633	10.582	106.973
TOTAL BORROWING		371.365	258.143	394.351
DEFERRED TAX LIABILITIES		46.872	42.951	37.183
TOTAL		737.224	578.779	657.075
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		432.055	368.018	341.039
Capital work-in-progress		0.098	2.019	0.000
INVESTMENT		1.053	1.007	1.007
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	327.402	307.013	316.365
	Sundry Debtors	361.415	230.510	171.846
	Cash & Bank Balances	50.989	45.012	85.286
	Other Current Assets	9.567	6.318	0.000
	Loans & Advances	54.848	53.196	70.495
Total Current Assets		804.221	642.049	643.992
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	280.913	289.094	322.733
	Other Current Liabilities	214.278	135.982	6.230
	Provisions	5.012	9.238	0.000
Total Current Liabilities		500.203	434.314	328.963
Net Current Assets		304.018	207.735	315.029
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		737.224	578.779	657.075

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income from Operations	1103.642	1171.718	863.395
		Other Income	NA	NA	NA
		TOTAL (A)	NA	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses	NA	NA	NA
		Advertising Expenses
		TOTAL (B)	NA	NA	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		173.942	162.972	106.138
Less	FINANCIAL EXPENSES (D)		81.332	55.395	48.094
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		92.610	107.577	58.044
Less/ Add	DEPRECIATION/ AMORTISATION (F)		26.161	21.471	21.409
	PROFIT BEFORE TAX (E-F) (G)		66.449	86.106	36.635
Less	TAX (H)		16.216	23.165	6.284
	PROFIT AFTER TAX (G-H) (I)		50.233	62.941	30.351
Less	Dividend (including distribution tax)		3.920	5.768	2.682
	BALANCE CARRIED TO THE B/S		46.313	57.173	27.669
	Earnings Per Share (Rs.)		17.47	NA	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Net Profit Margin (PBT/Sales)	(%)	6.02	7.35	4.24
Return on Total Assets (PBT/Total Assets}	(%)	5.37	8.52	3.71
Return on Investment (ROI) (PBT/Networth)		0.21	0.31	0.16
Debt Equity Ratio (Total Debt /Networth)		1.16	0.93	1.75
Current Ratio (Current Asset/Current Liability)		1.61	1.48	1.95

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Rs. In Millions

Particular	31.03.2012	31.03.2011	31.03.2010
Creditors due small micro enterprises	280.913	289.094	297.371
Creditors due others			25.362
Total	280.913	289.094	322.733

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	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	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	Yes
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

CONTINGENT LIABILITIES

Rs. In Millions

Particular	31.03.2012	31.03.2011
Bank Guarantees outstanding not provided for	29.310	6.828
Fixed deposits offered as security for bank guarantee	36.517	34.335
Claims against the company not acknowledged as debts	19.587	18.939

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2012	As on 31.03.2011
Long-term borrowings
Loans and advances from related parties	10.633	10.582
Total	10.633	10.582

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U65921MH1996PTC162306
Name of the company	METALFAB HIGHTECH PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	E-23-25, M.I.D.C. Industrial Area, Hingna Road, Nagpur - 440 028, Maharashtra, India metalfab@rediffmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10224553
Type of charge	Immovable property Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	IDBI Bank Limited, 3rd Floor, Gupta Tower, Civil Lines, Nagpur – 440001, Maharashtra, India haranadha.babu@idbi.co.in
Nature of instrument creating charge	Supplemental deed of hypothecation.
Date of instrument Creating the charge	31.07.2012
Amount secured by the charge	Rs.140.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest TL: AT BPLR minus 0.75% at present @12.00% p.a CC: AT BBR PLUS 450 basis point present effective being 15% p.a Terms of Repayment Cc: on demand Term loan: the loan will be repaid in 8 quarterly installments of Rs 7.500 Millions each starting after 2 years of morantorium. Margin As per sanction letter. Extent and Operation of the charge The charge operates as a security on the assets of the company.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	For bill discounting: bills accepted by drawee and hypothecation on all the movable assets of the company. For WCTL and TL : first charge by way of hypothecation on fixed assets created out of the term loan taken from IDBI Bank and second charge in the fixed assests of the company (both present and future) for entire assitance of Rs. 100.000 Millions. All that piece and parcel of immovable property being non-agricultural land bearing plot no. L-2, admeasuring 24,256 sq.mtrs. Kh. No. 98 and 99, along with structure standing and all plant and machinery attached to the earth or permanantly fastened to any anything attached to earth thereon situated in the Nagpur industrial area with the village limits of Digdoh, Taluka Hingna and District Nagpur in the state of Maharashtra
Date of instrument modifying the charge
Particulars of the present modification	By way of present modification cc limit has been increased from Rs. 40.000 Millions to Rs. 100.000 Millions and term loan has been reduced from Rs. 60.000 Millions to Rs. 40.000 Millions. Extension of equitable mortgage to cover additional credit facilities of Rs. 40.000 Millions. thus the total credit facilities stand at Rs. 140.000 Millions. The bifurcation of credit facilities are as follows: CC: Rs. 100.000 Millions TL: Rs. 40.000 Millions Total: Rs. 140.000 Millions

FIXED ASSETS

• Buildings
• Plant and equipment
• Factory equipments
• Furniture and fixtures
• Vehicles
• Office equipment
• Computer equipments

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 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.54.65
UK Pound	1	Rs.82.41
Euro	1	Rs.70.08

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		49

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.