MIRA INFORM REPORT

Report Date :

22.01.2014

IDENTIFICATION DETAILS

Name :	CROWN FERRO ALLOYS PRIVATE LIMITED
Registered Office :	Plot No. 497/4 and 497/5, GIDC Estate, Makarpura, Vadodara – 390010, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	09.02.1990
Com. Reg. No.:	04-013342
Capital Investment / Paid-up Capital :	Rs.0.954 Million
CIN No.: [Company Identification No.]	U27101GJ1990PTC013342
TAN No.: [Tax Deduction & Collection Account No.]	BRDC00461G
TIN No.:	24191602286
PAN No.: [Permanent Account No.]	AAACC7672B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Ferro Alloys.
No. of Employees :	19 (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 35000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered normal 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’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

India was ranked 94^th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

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. Inderjeetsingh Manmohansingh Singh
Designation :	Director
Contact No.:	91-8373904889
Date :	20.01.2014

LOCATIONS

Registered Office / Factory:	Plot No. 497/4 and 497/5, GIDC Estate, Makarpura, Vadodara – 390010, Gujarat, India
Tel. No.:	91-265-2645302
Mobile No.:	91-8373904889 (Mr. Inderjeetsingh Manmohansingh Singh)
Fax No.:	91-265-2645302
E-Mail :	office@pgpatel.com frownferro@sify.com
Website :	www.crownferro.in

DIRECTORS

As on 29.07.2013

Name :	Mr. Chaturbhai Maganbhai Patel
Designation :	Director
Address :	A-27 Lovekush Nagari, Vadsar Road, Vadodara-390010, Gujarat, India
Date of Appointment :	09.02.1990
DIN No.:	00762477
Name :	Mr. Inderjeetsingh Manmohansingh Singh
Designation :	Director
Address :	50/A Sonal Park Society, GIDC Road, Manjalpur Vadodara-390010, Gujarat, India
Date of Appointment :	09.12.1990
DIN No.:	00738833

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.07.2013

Names of Shareholders	No. of Shares
Dwarkadas Patel	28400
Chaturbhai Patel	22300
Inderjit Singh	18650
Sheelaben Patel	2000
Gurmit Kaur	13150
Maganbhai Patel	8000
Neha Patel	700
Dhara Patel	700
Komalben Patel	1500
Total	95400

Equity Share Break up (Percentage of Total Equity)

As on 29.07.2013

Category	Percentage
Director / Relative of Director	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Ferro Alloys.
Imports :
Products :	Raw Material
Countries :	· South Africa · South Korea
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

· Retailers

· End Users

No. of Employees :

19 (Approximately)

Bankers :

· Uma Co-Operative Bank Limited, 18/B, GIDC Main Road, Makarpura, Vadodara - 390010, Gujarat, India

· State Bank of India, SME Branch, Manjalpur, Vadodara - 390010, Gujarat, India

· State Bank of Saurashtra, S S I Branch, Manjalpur, Vadodara - 390011, Gujarat, India

· HDFC Bank Limited, Kala Ghoda Branch, Vadodara, Gujarat, India

Facilities :

Cash Credit: Rs. 17.500 Millions (From Uma Co-Operative Bank Limited )

Secured Loan

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Short-term borrowings

Loans repayable on demand

From State Bank of India, Manjalpur

12.230

15.140

Total

12.230

15.140

NOTE:

Details of security for the secured short-term borrowings:

Particulars	Terms of repayment *	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Loans repayable on demand from banks: State Bank of India, SME Branch,Manjalpur, Vadodara.	Against Hypothecation of Stock and Book Debts by way of Primary Security. The collateral Security is as under: a) Equitable Mortgage Charge over Factory and Building situated at Plot No. 497/4 and 497/5 GIDC Estate, Makarpura, Vadodara. b) Hypothecation of Existing Plant and Machineries and Personal Guarantee of all the Directors of the company. The cash credit is repayable on demand and carries interest 13.75% to 16.50% p.a.	12.230	15.140
Total - from banks		12.230	15.140

Banking Relations :	--
Auditors :
Name :	P. G. Patel and Associates Chartered Accountants
Address :	109, Mangaldeep Complex, Opposite Masonic Hall, Productivity Road, Alkapuri, Vadodara – 390007, Gujarat, India
PAN N Income-tax PAN of auditor or auditor's firm :	ABLPP8941M

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs.10/- each	Rs. 1.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
95400	Equity Shares	Rs.10/- each	Rs. 0.954 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	0.954	0.954
(b) Reserves & Surplus	7.851	7.272
(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)	8.805	8.226
(3) Non-Current Liabilities
(a) long-term borrowings	2.223	0.413
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	2.223	0.413
(4) Current Liabilities
(a) Short term borrowings	12.230	15.140
(b) Trade payables	3.173	4.604
(c) Other current liabilities	0.302	0.730
(d) Short-term provisions	0.325	0.326
Total Current Liabilities (4)	16.030	20.800
TOTAL	27.058	29.439
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3.019	3.479
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.090	0.080
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	3.109	3.559
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	12.891	15.355
(c) Trade receivables	9.932	8.847
(d) Cash and cash equivalents	0.092	0.047
(e) Short-term loans and advances	1.034	1.631
(f) Other current assets	0.000	0.000
Total Current Assets	23.949	25.880
TOTAL	27.058	29.439

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		0.954
2] Share Application Money		0.000
3] Reserves & Surplus		6.176
4] (Accumulated Losses)		0.000
NETWORTH		7.130
LOAN FUNDS
1] Secured Loans		11.650
2] Unsecured Loans		0.313
TOTAL BORROWING		11.963
DEFERRED TAX LIABILITIES		0.000
TOTAL		19.093
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.194
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.070
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	10.408
	Sundry Debtors	5.062
	Cash & Bank Balances	0.092
	Other Current Assets	0.000
	Loans & Advances	4.725
Total Current Assets		20.287
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.460
	Other Current Liabilities	0.216
	Provisions	0.782
Total Current Liabilities		4.458
Net Current Assets		15.829
MISCELLANEOUS EXPENSES		0.000
TOTAL		19.093

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Net turnover	35.438	55.037	50.000 (Approximately)
			(Due to market Condition)
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		1.303	2.104	NA
Less/ Add	DEPRECIATION/ AMORTISATION		0.460	0.525	NA
	PROFIT BEFORE TAX		0.843	1.579	NA
Less	TAX		0.264	0.484	NA
	PROFIT AFTER TAX		0.579	1.095	NA
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5.300	4.300	NA
	APPROPRIATION
	General Reserve		0.079	0.095	NA
	BALANCE CARRIED TO THE B/S		5.800	5.300	NA
	Earnings Per Share (Rs.)		6.07	NA	NA

Expected Sales (2013-2014): Rs.55.000 Millions

The above information has been parted by Mr. Inderjeetsingh Manmohansingh Singh (Director)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Return on Total Assets (PBT/Total Assets}	(%)	3.13	5.38	NA
Return on Investment (ROI) (PBT/Networth)		0.10	0.19	NA
Debt Equity Ratio (Total Debt /Networth)		1.64	1.89	1.68
Current Ratio (Current Asset/Current Liability)		1.49	1.24	4.55

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS:

Particulars	31.03.2013	31.03.2012	31.03.2011
	(Rs. In Millions)
Current maturities of long-term debt	0.000	0.545	NA
Total	0.000	0.545	NA

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 two years	Yes
13]	Reasons for variation <> 20%	Yes
14]	Estimation for coming financial year	Yes
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

FINANCIAL RESULT

During the year the Company has achieved a Net turnover of Rs.35.438 Millions as against Rs.55.037 Millions during immediately preceding financial year. In other words, the company’s turnover has been reduced by 35.61% as compared to immediately preceding financial year.

Further, during the year, the company has manufactured different quality of low and High Carbon Ferro Alloys as per the needs of the customers. Due to overall industrial recession and keen competition within the country and also globally, the production and sale turnover has been decreased as compared to immediately preceding previous year, which resulted into reasonable decrease in profitability during the year.

The Directors of the Company hopes an improvement in the turnover and results of the company during the forthcoming year looking to the Stable Government at the Center and State.

UNSECURED LOAN

PARTICULARS

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Long-term Borrowings

Other parties

2.223

0.413

Total

2.223

0.413

NOTE:

Details of terms of repayment for the other long-term borrowings and security provided in respect of the secured

Particulars	Nature of security	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Deposits:	Against Hypothecation of Cars	2.223	0.413

Details of long-term borrowings guaranteed by some of the directors or others:

Particulars	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Deposits	2.223	0.413

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10463913	13/11/2013	17,500,000.00	UMA CO-OPERATIVE BANK LIMITED	18/B,GIDC MAIN ROAD, MAKARPURA, VADODARA, GUJARAT - 390010, INDIA	B91009647
2	10463911	11/11/2013	17,500,000.00	UMA CO-OPERATIVE BANK LIMITED	18/B,GIDC MAIN ROAD, MAKARPURA, VADODARA, GUJARAT - 390010, INDIA	B91008888
3	80020391	06/11/2007 *	11,967,000.00	STATE BANK OF SAURASHTRA	S S I BRANCH, MANJALPUR, VADODARA, GUJARAT - 390011, INDIA	A27615418
4	90096093	06/08/2002	142,000.00	STATE BANK OF SAURASHTRA	SSI BRANCH, MANJALPUR, VADODARA, GUJARAT, INDIA	-
5	90094365	19/01/2011 *	12,500,000.00	STATE BANK OF INDIA	SME BRANCH, MANJALPUR, VADODARA, GUJARAT - 390010, INDIA	B07071384
6	90096003	19/01/2011 *	12,500,000.00	STATE BANK OF INDIA	SME BRANCH, MANJALPUR, VADODARA, GUJARAT - 390010, INDIA	B07071111
7	90094291	06/08/1997 *	1,040,000.00	BANK OF BARODA	MAKARPURA INDL. ESTATE. BR., 28; GIDC; MAKARPURA, BARODA, GUJARAT - 390010, INDIA	-
8	90094615	16/07/1997 *	1,040,000.00	BANK OF BARODA	GIDC BRANCH, MAKARPURA INDL. ESTATE, BARODA, GUJARAT, INDIA	-

* Date of charge modification

FIXED ASSETS

Tangible assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Fax Machine

· Electrical Installation

· Computer

· Bore Well

· Chimni

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.61.54
UK Pound	1	Rs.101.08
Euro	1	Rs.83.38

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	KVT

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	6
--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	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		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.