MIRA INFORM REPORT

Report Date :

16.09.2013

IDENTIFICATION DETAILS

Name :	SARVESHWAR METALS PRIVATE LIMITED
Registered Office :	50, GVMMSAV Limited, Odhav, Ahmedabad-382415, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	16.01.2006
Com. Reg. No.:	04-047517
Capital Investment / Paid-up Capital :	Rs. 4.700 Millions
CIN No.: [Company Identification No.]	U27100GJ2006PTC047517
Legal Form :	Private Limited Liability Company
Line of Business :	Dealer and Importer of all kinds of ferrous and non ferrous metal scraps and alloys
No. of Employees :	10 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 47000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The profit margin is low. However, trade relations are reported as fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings with some caution.

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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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

Name :	Mr. Bhavesh
Designation :	Accounts Department
Contact No.:	91-79-22901400
Date :	13.09.2013

LOCATIONS

Registered Office / Godown :	50, GVMMSAV Limited, Odhav, Ahmedabad-382415, Gujarat, India
Tel. No.:	91-79-22901400
Fax No.:	91-79-22901400
E-Mail :	sarveshwarmehta@yahoo.co.in
Location :	Owned

DIRECTORS

AS ON 05.09.2012

Name :	Mr. Mukeshkumar Ratanlal Samdani
Designation :	Director
Address :	28 Patel society, Shahibaug, Ahmedabad-380004, Gujarat, India
Date of Appointment :	16.01.2006
DIN No.:	00762303
Name :	Mr. Bhavesh Shyamlal Shah
Designation :	Director
Address :	21, Rajashthan Co-operative Housing Society Limited, Shahibaug, Ahmedabad-380004, Gujarat, India
Date of Appointment :	16.01.2006
DIN No.:	00762322

KEY EXECUTIVES

Name :	Mr. Bhavesh
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 05.09.2012

Names of Shareholders	No. of Shares
Mukeshkumar Ratanlal Samdani	70000
Bhavesh Shyamlal Shah	74700
Laxmilal Bherulal Mundra	100
Dropadi Vimalkumar Jain	100
Vimalkumar C Jain	100
Monika Mukeshkumar Samdani	86600
Garima Bhavesh Samdani	82500
Bhailasha Balkishan Shah	75900
Arunkumar R Lohiya	80000
TOTAL	470000

AS ON 05.09.2012

Equity Shares Break Up	Percentage of Holding
Directors or relatives of Directors	100.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :	Dealer and Importer of all kinds of ferrous and non ferrous metal scraps and alloys
Imports :
Products :	Finished Goods
Countries :	Dubai UK
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

PRODUCTION STATUS (AS ON : 31.03.2012)

Particulars	Unit	Installed Capacity	Actual Production
Aluminum Alloys	MT	2400	231910.000
Copper Scrap	MT	--	231113.000

Note: Installed Capacity is taken as certify by the management and being technical, accepted by Auditor as correct.

GENERAL INFORMATION

Customers :

• End Users

No. of Employees :

10 (Approximately)

Bankers :

• State Bank of India, Madhuvoura Branch, Shahibaug, Ahmedabad-380004, Gujarat, India

Tel No.:- 91-79-22867186

Facilities :

Secured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
LONG TERM BORROWINGS
From Banks	0.562	0.000
SHORT TERM BORROWINGS
Loans repayable on Demand
From Banks	29.176	28.378
TOTAL	29.738	28.378
NOTES SHORT TERM BORROWINGS a) Loan repayable on demand include cash credit of Rs. 229.176 Millions from State Bank of India, Shahibaug Branch, Ahmedabad. b) Loan is secured by “Primary Security” of Hypothecation of Stock, Book Debts and other Current Assets, both present and future” of the Company and “Collateral Security” of following property :- Factory Land and Building, Plant and Machinery, situated at Plot No. 50, GVMSAV Limited, Odhav, Ahmedabad-382415

Banking Relations :	--
Auditors :
Name :	Akhilesh Deopura and Company Chartered Accountant
Address :	305, M V House, Opposite Hathisingh Wadi, Shahibaug Road, Ahmedabad-380004, Gujarat, India
PAN No.:	AERPD6717N

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs. 5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
470000	Equity Shares	Rs.10/- each	Rs. 4.700 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	4.700	4.700
(b) Reserves & Surplus	7.060	6.144
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	11.760	10.844
(3) Non-Current Liabilities
(a) long-term borrowings	3.285	3.254
(b) Deferred tax liabilities (Net)	0.033	0.044
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	3.318	3.298
(4) Current Liabilities
(a) Short term borrowings	31.318	30.584
(b) Trade payables	2.897	14.357
(c) Other current liabilities	1.848	1.973
(d) Short-term provisions	0.463	0.518
Total Current Liabilities (4)	36.526	47.432
TOTAL	51.604	61.574
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	4.087	5.949
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(b) Non-current Investments	0.007	0.007
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.040	0.096
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	4.134	6.052
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	5.544	21.691
(c) Trade receivables	22.511	27.940
(d) Cash and cash equivalents	0.215	0.078
(e) Short-term loans and advances	17.435	1.253
(f) Other current assets	1.765	4.560
Total Current Assets	47.470	55.522
TOTAL	51.604	61.574

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		4.700
2] Share Application Money		0.000
3] Reserves & Surplus		5.062
4] (Accumulated Losses)		0.000
NETWORTH		9.762
LOAN FUNDS
1] Secured Loans		11.685
2] Unsecured Loans		1.371
TOTAL BORROWING		13.056
DEFERRED TAX LIABILITIES		0.042
TOTAL		22.860
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.209
Capital work-in-progress		0.000
INVESTMENT		0.007
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	10.955
	Sundry Debtors	5.919
	Cash & Bank Balances	0.137
	Other Current Assets	0.000
	Loans & Advances	3.078
Total Current Assets		20.089
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.307
	Other Current Liabilities	0.000
	Provisions	0.293
Total Current Liabilities		0.600
Net Current Assets		19.489
MISCELLANEOUS EXPENSES		0.155
TOTAL		22.860

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from Operations	203.274	166.035	75.299
		Other Income	0.660	0.001	0.000
		TOTAL (A)	203.934	166.036	75.299
Less	EXPENSES
		Cost of Material Consumed	135.937	85.541	72.420
		Purchase of Trading Stock	50.753	70.590
		Employee benefit expenses	1.220	1.213
		Other expenses	3.087	3.821
		Changes in inventories of finished goods, work in progress and stock in trade	7.598	(0.833)
		TOTAL (B)	198.595	160.332	72.420
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5.339	5.704	2.879
Less	FINANCIAL EXPENSES (D)		3.559	3.825	1.788
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.780	1.879	1.091
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.377	0.260	0.187
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		1.403	1.619	0.904
Less	TAX (H)		0.487	0.538	0.294
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		0.916	1.081	0.610
	Provision for Deferred Tax Liability		0.000	0.000	0.004
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	0.456
	BALANCE CARRIED TO THE B/S		NA	NA	1.062
	Earnings / (Loss) Per Share (Rs.)		1.95	2.30	1.30

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.45	0.65	0.81
Net Profit Margin (PBT/Sales)	(%)	0.69	0.98	1.20
Return on Total Assets (PBT/Total Assets}	(%)	2.72	2.63	3.88
Return on Investment (ROI) (PBT/Networth)		0.12	0.15	0.09
Debt Equity Ratio (Total Debt /Networth)		2.94	3.12	1.34
Current Ratio (Current Asset/Current Liability)		1.30	1.17	33.48

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	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	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	No
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	No

Unsecured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
LONG TERM BORROWINGS
Loans from directors	2.723	3.254
SHORT TERM BORROWINGS
Others	2.142	2.206
TOTAL	4.865	5.460

CURRENT MATURITIES OF LONG TERM DEBT

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011	31.03.2010
Current Maturities Of Long Term Debt	NA	NA	NA
TOTAL	NA	NA	NA

VIEW INDEX OF CHARGES

S. No	Charge ID	Date of Charge Creation /Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN
	10244001	14/09/2010	30,000,000.00	State Bank of India	Madhuvpura Branch, Shahibaug, Ahmedabad, Gujarat - 380004, India	A95497426

FIXED ASSETS

• Land
• Factory Building
• Office Building
• Plant and Machinery
• Weiging Scale
• Air Conditioner
• Computer and Printer
• LCD and TV
• Furniture and Fixture
• Motor Car

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. 63.78
UK Pound	1	Rs. 100.70
Euro	1	Rs. 84.66

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.