MIRA INFORM REPORT

Report Date :

28.01.2013

IDENTIFICATION DETAILS

Name :	SNAM ALLOYS PRIVATE LIMITED
Registered Office :	21 (E), Industrial Estate, Attibele, Anekal Taluk, Bangalore – 562107, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	05.11.1985
Com. Reg. No.:	08-007257
Capital Investment / Paid-up Capital :	Rs. 48.000 Millions
CIN No.: [Company Identification No.]	U27101KA1985PTC007257
TAN No.: [Tax Deduction & Collection Account No.]	BLRS01125F
PAN No.: [Permanent Account No.]	AACCS7473G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Importer, Exporter and Trader of Alloys, Silicons and Carbides, etc.
No. of Employees :	Not available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 2300000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. The performance capacity of the company seems to be high. Financially seems to be strong. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered for normal business dealings at usual trade terms and condition.

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	CRISIL
Rating	BBB+ (Cash Credit)
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation. It carry moderate credit risk.
Date	31.10.2012

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.

LOCATIONS

Registered Office :	21 (E), Industrial Estate, Attibele, Anekal Taluk, Bangalore – 562107, Karnataka, India
Tel. No.:	91-80-25587710
Fax No.:	91-80-41320199/ 91-413-2699199
E-Mail :	snamgroup@gmail.com snam@blr.vsnl.net.in
Website :	http://www.sapl.com
Factory :	Kariamanickam Village, Nettapakkam, Pondicherry - 605106, India
Tel. No.:	91-413-2699440 / 2699106
Fax No.:	91-413-2699199
Corporate Office :	40-A, 1^st Cross, Gupta Layout, Bangalore-560008, Karnataka, India
Tel. No.:	91-80-25587710
Fax No.:	91-4344-276880
E-Mail :	snam@md2.vsnl.net.in/ snamgroup@sify.com

DIRECTORS

As on: 30.07.2012

Name :

Mr. Muralidhar Dhuddu

Designation :

Whole Time Director

Address :

116, 1^st Cross, Ulsoor Road, Bangalore – 560042, Karnataka

Date of Birth :

25.11.1951

Qualification :

FCA

Date of Appointment :

05.11.1985

DIN No.:

00409842

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	U29200KA1979PTC003670	SNAM ABRASIVES PRIVATE LIMITED	Director	03/12/1979	03/12/1979	-	Active	NO
2	U74999KA1983PTC005586	SNAM MICRO ABRASIVES PRIVATE LIMITED	Director	21/09/1983	21/09/1983	-	Active	NO
3	U27101KA1985PTC007257	SNAM ALLOYS PRIVATE LIMITED	Director	05/11/1985	05/11/1985	-	Active	NO
4	U85110KA1994PLC015539	INNOVA SECURITIESANDINVESTMENTS LIMITED	Director	15/12/1995	15/12/1995	-	Active	NO
5	U72900KA2000PTC026350	TECHWEB TECHNOLOGIES PRIVATE LIMITED	Director	17/08/2000	17/08/2000	-	Active	NO
6	U91110KA1938NPL000244	FEDERATION OF KARNATAKA CHAMBERS OF COMMERCE AND INDUSTRY	Director	30/06/2006	30/06/2006	-	Active	NO
7	U45203TZ2007PLC013841	SIPCOT HOSUR INFRASTRUCTURE LIMITED	Director	02/08/2007	03/07/2007	-	Strike off	NO
8	U27107KA2007PLC044365	JAIN & SNAM ALLOYS (INDIA) LIMITED	Director	14/11/2007	14/11/2007	-	Active	NO
9	U93030TZ2010NPL016202	HOSUR SIPCOT INFRASTRUCTURE DEVELOPMENT ASSOCIATION	Director	08/07/2010	08/07/2010	-	Active	NO

Name :

Mr. Sivaraman Thammanur Venkatesan

Designation :

Director

Address :

No. 18, 2^nd Cross, Kumaran Nagar, Lawspet, Pondicherry, Pondicherry- 605008

Date of Birth :

02.06.1943

Qualification :

B.E. Chemical

Date of Appointment :

05.11.1985

DIN No.:

00501138

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	U29200KA1979PTC003670	SNAM ABRASIVES PRIVATE LIMITED	Director	03/12/1979	03/12/1979	-	Active	NO
2	U74999KA1983PTC005586	SNAM MICRO ABRASIVES PRIVATE LIMITED	Director	21/09/1983	21/09/1983	-	Active	NO
3	U27101KA1985PTC007257	SNAM ALLOYS PRIVATE LIMITED	Director	05/11/1985	05/11/1985	-	Active	NO
4	U27107KA2007PLC044365	JAIN & SNAM ALLOYS (INDIA) LIMITED	Director	14/11/2007	14/11/2007	-	Active	NO

Name :

Ms. Hiriadka Dayanand Naik

Designation :

Director

Address :

Laxmidaya, 126, Charles Campbell Road, Cox Town, Bangalore- 560005, Karnataka, India.

Date of Birth :

14.02.1938

Qualification :

B.E. Electrical and Mechanical

Date of Appointment :

05.11.1985

DIN No.:

00501302

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	U29200KA1979PTC003670	SNAM ABRASIVES PRIVATE LIMITED	Director	03/12/1979	03/12/1979	-	Active	NO
2	U74999KA1983PTC005586	SNAM MICRO ABRASIVES PRIVATE LIMITED	Director	21/09/1983	21/09/1983	-	Active	NO
3	U27101KA1985PTC007257	SNAM ALLOYS PRIVATE LIMITED	Director	05/11/1985	05/11/1985	-	Active	NO
4	U27107KA2007PLC044365	JAIN & SNAM ALLOYS (INDIA) LIMITED	Director	14/11/2007	14/11/2007	-	Active	NO

Name :

Mr. Srikanth Sivaraman

Designation :

Whole-time Director

Address :

No. 18 Second Cross, Kumaran Nagar, Lawspet, Pondicherry-605008, Pondicherry, India

Date of Birth :

04.09.1970

Qualification :

B.E. Chemical

Date of Appointment :

09.07.2011

DIN No.:

03109254

MAJOR SHAREHOLDERS

As on: 30.07.2012

Names of Shareholders	No. of Shares
Thammanur Venkatesan Sivaraman	128080
Hiriadka Dayanand Naik	128080
Dhuddu Muralidhar	128080
Sivaraman Vasumathi	31920
Naik Dayanand Saraswathi	31920
Muralidhar Veena	31920
Total	480000

Equity Share Break up (Percentage of Total Equity)

As on: 30.07.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Importer, Exporter and Trader of Alloys, Silicons and Carbides, etc.

Products :

• Alloys
• Silicons
• Carbides

· Ferro Graphite Recarboriser

· Ferro Silicon Magnesium

· Incoulants

Products Description	ITC Code No.
Ferro Silicon Metric Tonne	72022100
Ferro Silicon Magnesium Metric Tonne	72029922

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Ferro Silicon Metric Tonne	MT	-	14567.41
Ferro Silicon Magnesium Metric Tonne	MT	-	10066.62

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, Overseas Branch, LHO Compound, St. Marks Road, Bangalore-560001, Karnataka, India

· Citi Bank N.A., 506 - 507, Level 5, NO.30, M G Road, Prestige Meridain 2, Bangalore – 560001, Karnataka, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long Term Borrowing
Term loan from bank	145.875	45.035
Short Term Borrowing
Loans repayable on demand	233.089	205.429
Total	378.964	250.464

Banking Relations :	--
Auditors :
Name :	S. Anantha and Company Chartered Accountants
Address :	S. V. Complex, 2^nd Floor, No. 55, K. R. Road, Basavanagudi, Bangalore-560004, Karnataka, India
Tel. No.:	91-80-26520758/ 41469306
Fax No.:	91-80-26620057/ 26603052
E-Mail :	sonduras@bgl.vsnl.net.in sonduras@airtelmail.in sonduras@dataone.in
PAN.:	AABFA8541R

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.100/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
480000	Equity Shares	Rs.100/- each	Rs. 48.000 Millions

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		48.000	9.600	9.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		527.514	391.768	257.760
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		575.514	401.368	267.360
LOAN FUNDS
1] Secured Loans		378.964	250.464	243.021
2] Unsecured Loans		15.654	11.275	13.205
TOTAL BORROWING		394.618	261.739	256.226
DEFERRED TAX LIABILITIES		26.031	10.534	11.179
TOTAL		996.163	673.641	534.765
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		430.866	226.562	218.791
Capital work-in-progress		30.576	0.000	0.000
INVESTMENT		10.734	10.724	10.723
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	232.268	284.142	167.915
	Sundry Debtors	361.678	274.701	217.742
	Cash & Bank Balances	71.314	7.863	1.554
	Other Current Assets	4.094	10.500	6.590
	Loans & Advances	56.694	41.324	34.739
Total Current Assets		726.048	618.530	428.540
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	137.850	130.380	72.820
	Other Current Liabilities	53.054	43.427	44.872
	Provisions	11.157	8.368	5.597
Total Current Liabilities		202.061	182.175	123.289
Net Current Assets		523.987	436.355	305.251
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		996.163	673.641	534.765

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Sales	2701.632	2136.854	1320.197
		Other Income	NA	NA	4.470
		TOTAL (A)	NA	NA	1324.667
Less	EXPENSES
		Raw Material Consumed	NA	NA	751.217
		Change in Opening and Closing Stock			(6.948)
		Manufacturing, Administrative and Selling Expenses			417.287
		TOTAL (B)	NA	NA	1161.556
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	NA	163.111
Less	FINANCIAL EXPENSES (D)		NA	NA	10.537
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		NA	NA	152.574
Less/ Add	DEPRECIATION/ AMORTISATION (F)		NA	NA	24.276
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		278.141	195.928	128.298
Less	TAX (H)		315.679	228.399	43.233
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		(37.538)	(32.471)	85.065
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports U-II	1210.712	NA	451.103
		Freight on Exports U-II	0.000	NA	9.017
		FOB Value of Exports EOU	0.000	NA	96.526
		Freight on Exports EOU	0.000	NA	1.294
	TOTAL EARNINGS		1210.712	NA	557.940
	IMPORTS
		CIF Value of Import	825.667	NA	0.000
		Raw Materials	0.000	NA	398.787
		Capital Goods	0.000	NA	4.739
	TOTAL IMPORTS		825.667	NA	403.526
	Earnings/(Loss) Per Share (Rs.)		(1720.14)	--	1483.09

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	6.42
Net Profit Margin (PBT/Sales)	(%)	10.30	9.17	9.72
Return on Total Assets (PBT/Total Assets}	(%)	24.04	23.18	19.82
Return on Investment (ROI) (PBT/Networth)		0.48	0.49	0.48
Debt Equity Ratio (Total Liability/Networth)		1.04	1.11	1.42
Current Ratio (Current Asset/Current Liability)		3.59	3.40	3.47

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	No
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	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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

NOTE:

The registered office of the company has been shifted from 40-A, 1st Cross Gupta Lay Out, Ulsour Bangalore – 560008, Karnataka, India to present address w.e.f. 01.12.2006.

OPERATIONS:

They have registered modest growth of 26.43% during 2011-2012. They made sales of Rs. 2701.632 Millions during this Year. (Rs. 2136.854 Millions). They have made profit before tax of Rs. 278.141 Millions (Rs. 195.928 Millions) and we generated a cash surplus Rs. 315.679 Millions (Rs. 228.399 Millions) before considering Income Tax.

UNSECURED LOAN

Particulars	As on 31.03.2012	As on 31.03.2011
Long Term Borrowing
Loans and advances from director	6.318	3.848
Loans and advances from others	8.813	7.083
Others Loans and advances	0.523	0.344
Total	15.654	11.275

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Lab Equipments

· Air Conditioners

· Vehicles

· Furniture

· Computers

· Office Appliances

· Factory Equipments

· Car

· Software

· Electric Installation

· Lab Equipments

· Air pollution control system

· Inspection Equipments

· Instrumentation and Monitoring 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.53.85
UK Pound	1	Rs.85.26
Euro	1	Rs.71.72

INFORMATION DETAILS

Report Prepared by :

RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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.