MIRA INFORM REPORT

Report No. :	310279
Report Date :	01.04.2015

IDENTIFICATION DETAILS

Name :	ARFIN INDIA LIMITED

Registered Office :	B-302, 3^rd Floor, Pelican House, Near Natraj Cinema, Gujarat Chamber of Commerce Building, Ashram Road, Ahmedabad – 380009, Gujarat

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	10.04.1992

Com. Reg. No.:	04-017460

Capital Investment / Paid-up Capital :	Rs. 30.183 Million

CIN No.: [Company Identification No.]	L65990GJ1992PLC017460

IEC No.:	Not Available

TAN No.: [Tax Deduction & Collection Account No.]	Not Available

PAN No.: [Permanent Account No.]	Not Available

Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. (Ahmedabad, Delhi and Kolkata Stock Exchange)

Line of Business :	Manufacturer of Aluminium Tubes, Ferro Alloy Product, Aluminium Wire Rod, Flipped Coil Aluminium Wire Rod, Aluminium Wire Rods etc.

No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 370000

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Exist

Comments :	Subject is an established company having a moderate track. Management has reported working capital intensive operations as well as low profitability during FY14. However, trade relations seem to be fair. Business is active. Payment terms are slow. The company can be considered for business dealings with caution.

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 – December 31, 2014

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

India

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Rating “B” (SUSPENDED)
Rating Explanation	The rating have been suspended as the subject failed to furnish the required by CARE for monitoring of the ratings.
Date	10.02.2015

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 31-03-2014.

INFORMATION DENIED

MANAGEMENT NON CO-OPERATIVE (91-79-26583791)

LOCATIONS

Registered Office :	B-302, 3^rd Floor, Pelican House, Near Natraj Cinema, Gujarat Chamber of Commerce Building, Ashram Road, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-26583791 / 26583792
Fax No.:	91-79-25620620 / 26583791
E-Mail :	mahendra@arfin.co.in rinkesh_1983@yahoo.co.in ashit@arfin.co.in
Website :	http://www.arfin.co.in
Location :	Owned

Factory :	118/ 1 Ravi Estate, Near Restige Hotel, Chatral, Gujarat, India
Tel. No.:	91-2764-232620
E-Mail :	jatin@arfin.co.in info@arfin.co.in

Branch Office :	A-209, Shital Shopping Centre, Gurunanak Chowk, Palanpur-385001, Banaskantha, India

DIRECTORS

As on : 31.03.2014

Name :

Mr. Mahendrakumar Rikhavchand Shah

Designation :

Director

Address :

Khandwala Bunglow, Near Post Office, Dharam Nagar, Sabarmati Ahmedabad - 380 005, Gujarat, India

Date of Birth/Age :

09.03.1963

Qualification :

Graduate

Date of Appointment :

01.10.2014

DIN No.:

00182746

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	U65910GJ1995PLC025589	MAHENDRA ALUMINIUM COMPANY LIMITED	Director	25/04/1995	25/04/1995	-	Active	NO
2	U65910GJ1995PTC026735	Krish Ferro Industries Private Limited	Director	17/07/1995	17/07/1995	-	Active	NO
3	L65990GJ1992PLC017460	ARFIN INDIA LIMITED	Whole-time director	01/10/2014	30/09/1998	-	Active	NO
4	U27100GJ1996PLC030244	SAKAR INDUSTRIES LIMITED	Director	20/09/2011	20/09/2011	28/07/2012	Active	NO

Name :

Ms. Pushpa Mahendra Shah

Designation :

Director

Address :

Khandwala Bunglow, Near Post Office, Dharam Nagar, Sabarmati Ahmedabad - 380 005, Gujarat, India

Date of Birth/Age :

21.06.1966

Date of Appointment :

01.04.2000

DIN No.:

00182754

Other Directorship :

Name :

Mr. Jatin Mahendrakumar Shah

Designation :

Director

Address :

Khandwala Bunglow, Near Post Office, Dharam Nagar, Sabarmati Ahmedabad - 380 005, Gujarat, India

Date of Birth/Age :

09.12.1983

Date of Appointment :

29.09.2012

DIN No.:

00182683

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	U27100GJ1996PLC030244	SAKAR INDUSTRIES LIMITED	Director	10/01/2002	10/01/2002	28/07/2012	Active	NO
2	U65910GJ1995PTC026735	Krish Ferro Industries Private Limited	Director	25/09/2012	01/06/2012	-	Active	NO
3	U65910GJ1995PLC025589	MAHENDRA ALUMINIUM COMPANY LIMITED	Director	25/09/2012	07/06/2012	-	Active	NO
4	L65990GJ1992PLC017460	ARFIN INDIA LIMITED	Managing director	01/10/2014	12/06/2012	-	Active	NO

Name :

Mr. Shanti Lal Mehta

Designation :

Additional Director

Address :

H. No. 1010, Sector. 46-B, Chandigarh - 160047, India

Date of Birth/Age :

16.11.1945

Date of Appointment :

30.09.2013

DIN No.:

06459451

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	L65990GJ1992PLC017460	ARFIN INDIA LIMITED	Director	30/09/2013	22/01/2013	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 31.03.2014

Category of Shareholder	Total No. of Shares	As a %
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1542865	5.29
Bodies Corporate	10708	0.04
Sub Total	1553573	5.33
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	1553573	5.33
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	11000	0.04
Sub Total	11000	0.04
(2) Non-Institutions
Bodies Corporate	14838945	50.91
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	5563342	19.09
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	6491313	22.27
Any Others (Specify)	691927	2.37
Clearing Members	13542	0.05
Non Resident Indians	678385	2.33
Sub Total	27585527	94.63
Total Public shareholding (B)	27596527	94.67
Total (A)+(B)	29150100	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1)	0	0.00
(2)	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	29150100	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Aluminium Tubes, Ferro Alloy Product, Aluminium Wire Rod, Flipped Coil Aluminium Wire Rod, Aluminium Wire Rods etc.

Products :

Product Description	Item Code No. (ITC Code)
Ferro Metals	72029900

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

Not Divulged

Bankers :

Banker Name	Axis Bank Limited
Branch Address	Trishul, 3^rd Floor, Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad – 380006, Gujarat, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

State Bank of India

SME Branch Premises, Zodiac Avenue, Opposite Commissioner’s Bunglow, Law Garden, Ahmedabad-380009, Gujarat, India

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
HDFC Bank (Car Loan	1.460	4.582
i) Tenor of Loan is 36 Months & Repayable in Equally Monthly Installments
i) Nature of Security: Loan is Secured by Pledge of Cars.
ii) Loan is Guaranteed by Directors of Company. - Axis Bank (Hydra Machine & Toyota Forklift Loan)
Axis Bank (Hydra Machine & Toyota Forklift Loan)	0.436	1.244
i) Tenor of Loan is 36 Months & Repayable in Equally Monthly Installments
i) Nature of Security: Secured by Pledge of Hydra Machine and Forklift.
ii) Loan is Guaranteed by Directors of Company.
Axis Bank Ltd. - (Term Loan)	0.388	5.453
i) Tenor of Loan is 48 Months & Repayable in Equal Monthly Installments and at Present Rate of Interest is (Bank's Base Rate + 3.75%) i.e. 13.75% p.a.
ii) Nature of Security:
(1) Secured by Hypothecation of Fixed Asset Including plant and machinery Purchased Out of Bank Finance.
(2) Mortgaged of Factory Land & Building at "118/1, Ravi Industrial Estate" Situated at Billeshwarpura Village, Chhatral, Gandhinagar.
iii) Loan is Guaranteed by Following Directors:
(1) Jatin M Shah (2) Mahendra R Shah (3) Pushpaben M Shah
ii) From Other Parties	0.000	0.000
SHORT TERM BORROWING
(i) From banks
Axis Bank Ltd. – Cash Credit Account	126.223	129.509
Axis Bank Ltd. - Adhoc Limit Account	0.000	30.250
Axis Bank Ltd. - Buyer's Credit Account	0.000	13.975
State Bank of India - Cash Credit Account	108.753	0.000
i) Nature of Security
(1) Secured by Hypothecation of Entire Current Assets Including Book Debts and Stock at Present and in Future.
ii) Collateral Security:
(1) Mortgage of Factory Land & Building at "118/1, Ravi Industrial Estate" Situated at Billeshwarpura Village, Gandhinagar.
iii) Loan is Guaranteed by Following Directors:
(1) Jatin M Shah (2) Mahendra R Shah (3) Pushpaben M Shah
(ii) From Other Parties	0.000	0.000
Total	237.260	185.013

Auditors :
Name :	Raman M. Jain and Company Chartered Accountants
Address :	B- 3 1 / 3 3 , Ghanshyam Avenue, Opposite, C U Shah College, Income Tax, Ahmedabad – 380014, Gujarat, India
PAN No.:	ABHPJ8145K

Memberships :	Not Available

Collaborators :	Not Available

Sister Concern :	Not Available

CAPITAL STRUCTURE

As on : 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

3500000	Equity Shares	Rs.10/- each	Rs. 35.000 Million

Issued, Subscribed & Paid-up Capital :

At The Beginning Period	30.183
Add: Issued During The Period	0.000
Add: Issued on Account of Merger / Conversion / Bonus / Split	0.000
Less : Deduction on Forfeiture of Shares	1.550
Issued Capital At The End of The Period	28.633
Less: Calls Unpaid	0.000
Showing Aggregate Value of Calls Unpaid by Directors And Members)
At The End of Reporting Period	28.633
Add : Equity Shares Forfeited	0.388
Total	29.021

The Reconciliation of The Number of Shares Outstanding as at March 31,2014 and March 31,

2013 is Set Out Below

Equity Shares	31.03.2014
	No of Shares	Rs in Million
Shares Outstanding At The Beginning of The Year	3,018,300	30.183
Add: Shares Issued During The Year	0	0.000
Less: Buy Back / Forfeited Shares	155,000	1.550
Shares Outstanding At The End of The Year	2,863,300	28.633

The Details of Shareholder Holding More Than 5% Shares is Set Out Below

S.N.	Name of The Shareholder	31.03.2014
		No of Shares	% of Holding
1	Mahendra R Shah	508,400	17.76%
2	Jatin M Shah	448,900	15.68%
3	Rani J Shah	403,400	14.09%
4	Pushpaben M Shah	323,500	11.30%
5	Jatin M Shah-HUF	177,200	6.19%

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	29.021	18.677	18.677
(b) Reserves & Surplus	98.853	42.184	11.299
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	127.874	60.861	29.976

(3) Non-Current Liabilities
(a) long-term borrowings	96.978	81.105	47.261
(b) Deferred tax liabilities (Net)	7.621	4.927	2.165
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	104.599	86.032	49.426

(4) Current Liabilities
(a) Short term borrowings	234.975	173.735	10.348
(b) Trade payables	267.664	210.111	58.932
(c) Other current liabilities	7.841	8.198	4.285
(d) Short-term provisions	4.997	6.094	0.187
Total Current Liabilities (4)	515.477	398.138	73.752

TOTAL	747.950	545.031	153.154

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	92.561	82.180	39.456
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	1.345	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	17.211
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	2.317	2.022	1.793
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	94.878	85.547	58.460

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	270.565	126.987	54.359
(c) Trade receivables	351.262	277.454	22.704
(d) Cash and cash equivalents	23.342	39.942	4.240
(e) Short-term loans and advances	7.903	15.101	13.391
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	653.072	459.484	94.694

TOTAL	747.950	545.031	153.154

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	1903.743	1689.110	161.427
		Other Income	1.843	6.600	0.405
		TOTAL	1905.586	1695.710	161.832

Less	EXPENSES
		Cost of Materials Consumed	1620.793	1306.895	151.054
		Purchases of Stock-in-Trade	96.740	281.556	0.000
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(14.912)	(46.282)	(5.395)
		Employees benefits expense	10.584	7.774	1.905
		Other expenses	129.503	87.946	10.818
		TOTAL	1842.708	1637.889	158.382

Less	PROFIT/LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		62.878	57.821	3.450

Less	FINANCIAL EXPENSES		18.516	11.346	1.363

	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION		44.362	46.475	2.087

Less/ Add	DEPRECIATION/ AMORTISATION		4.216	2.329	0.257

	PROFIT/LOSS BEFORE TAX		40.146	44.146	1.830

Less	TAX		13.695	13.262	0.658

	PROFIT/LOSS AFTER TAX		26.451	30.884	1.172

	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports		17.588	27.290	0.000
	Freight		0.000	0.000	0.000
	Insurance		0.000	0.000	0.000
	TOTAL EARNINGS		17.588	27.290	0.000

	IMPORTS
	Raw Materials		218.735	374.839	0.000
	Components and Stores parts		0.919	0.258	0.000
	Capital Goods		0.000	0.000	0.000
	TOTAL IMPORTS		219.654	375.097	0.000

	Earnings Per Share (Rs.)		9.24	10.23	0.39

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	1.39	1.83	0.73

Operating Profit Margin (PBDIT / Sales)	(%)	3.30	3.42	2.14

Return on Total Assets (PBT/Total Assets}	(%)	5.37	8.12	1.35

Return on Investment (ROI) (PBT/Networth)		0.31	0.73	0.06

Debt Equity Ratio (Total Debt /Networth)		2.60	4.19	1.92

Current Ratio (Current Asset/Current Liability)		1.27	1.15	1.28

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	18.677	18.677	29.021
Reserves & Surplus	11.299	42.184	98.853
Net worth	29.976	60.861	127.874

long-term borrowings	47.261	81.105	96.978
Short term borrowings	10.348	173.735	234.975
Total borrowings	57.609	254.840	331.953
Debt/Equity ratio	1.922	4.187	2.596

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	161.427	1689.110	1903.743
		946.362	12.707

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	161.427	1689.110	1903.743
Profit	1.172	30.884	26.451
	0.73%	1.83%	1.39%

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	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

LITIGATION DETAILS

HIGH COURT OF GUJARAT

TAX APPEAL No. 30 of 2011

Status: PENDING ( Converted from : ST/3587/2010 ) CCIN No : 001092201100030

Last Listing Date: 13/02/2012

Coram: HONOURABLE THE CHIEF JUSTICE MR. BHASKAR BHATTACHARYA

HONOURABLE MR.JUSTICE J.B.PARDIWALA

S.NO.	Name of the Petitioner	Advocate On Record
1	COMMISSIONER OF INCOME TAX-I	MRS MAUNA M BHATT for: Appellant(s) 1

S.NO.	Name of the Respondant		Advocate On Record
1	ARFIN INDIA LTD		RULE SERVED for :Opponent(s) 1

Presented On		: 20/12/2010	Registered On	: 20/12/2010
Bench Category		: DIVISION BENCH	District	: AHMEDABAD
Case Originated From		: THROUGH ADVOCATE	Listed	: 104 times
Stage Name		: FOR REGULAR ADMISSION (SPL.)
Classification		DB - OJ - TAX APPEAL - INCOME TAX ACT, 1961 - APPEAL TO HIGH COURT - U/S 260 OF IT ACT - LONG TERM CAPITAL GAIN - U/S 54EA
Act		INCOME-TAX ACT, 1961

Future Outlook

(Opportunities and Threats)

During the year 2013 – 14 there was global economic crisis. American and European economy is also passing through bad phase. In some gulf countries there is an environment of internal aggression. The internal violence in some gulf countries has become routine. There is heavy increase in crude and oil price. Due to election time, government policies become paralyzed. All these have impacted Indian economy. GDP is very low and fiscal and revenue deficit is major economic problem for our country.

However due to change in power at centre, there seems to be some hope for the better economic condition. Further if there is likely improvement in world economy more particularly American and

European economy. Now all depend on economic policies of new government and next general budget.

If there are measures taken by new government conducive to economic growth, the Company would be able to improve its financial performance.

Otherwise also the Company within short span has developed good customer base. The quality products of the Company are widely accepted by the Industry. The management of the Company has set the target of 1000 Crore turnover within next 3-4 years. Accordingly the management of the Company hopes for further business growth in coming years.

The Company has focused its efforts increasing the turnover by getting larger share of the existing customers and also by creating new class of customers to gain overall larger share of the overall available industry requirements.

The set standards, policies and defined responsibilities at each level of management ensure that risk of execution and management is minimized. Further the standards and policies set are reviewed on regular basis and revised as per the requirements to further minimize the risk. Use of information technology for implementation and execution of various functions ensures that the risk of execution is minimized further.

Operational and Financial Review

The Company has accelerated its business growth during the year under report. After resuming its business operation during the year 2011-12 the Company has improved its business performance every year. The new factory installed at Chhatral is utilizing production capacity at its full-fledged. The Company’s main products like aluminum or ferro alloys have been widely accepted by Company’s well reputed big customers. The production capacity is increased to 3000 MT/month for Aluminum. Thus there is sustainable business growth for the Company for past couple of years. During the year under report the Net Revenue from Operation went up by 12.71% to Rs. 19,03.743 Million as compared to Rs.16,89.110 Million of the previous year. However due to increase in turnover, the Company had to avail more financial assistance from bank. As a result of increased employees emoluments and finance cost, the profit before and after tax is decreased as compared to previous year. However directors feel that over a period of time finance cost shall be reduced to increase profitability of the Company. The directors of your Company express their satisfaction towards the business and financial performance of the Company.

STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31^ST DECEMMBER, 2014

Standalone statement of profit and loss

(Rs. In Million)

Sr. No	Particulars		Standalone
			Quarter Ended		Nine Month Ended
			31.12.2014	31.12.2014	31.12.2014
			Unaudited	Unaudited	Unaudited
1	Income From Operations
	a. Net Sales/ Income from Operations (Net of Excise Duty)		559.878	722.558	1916.932
	b. Other Operating Income		0.000	0.000	0.000
	Total Income from Operations (Net)		559.878	722.558	1916.932
2	Expenditure
	a. Cost of material Consumed		544.353	676.929	1707.528
	b. Purchase of Stock-in trade		5.969	0.000	44.228
	c. Changes in inventory of finished Goods, work- in-progress and Stock-in-trade		(80.205)	(40.131)	(87.119)
	d. Employees Benefit Expenses		4.328	1.652	10.248
	e. Job Work Charges		0.000	0.000	0.000
	f. Depreciation and Amortisation Expenses		1.012	1.424	3.836
	g. Other expenses		54.538	56.103	157.078
	Total Expenses		529.995	695.977	1835.799
3	Profit from Operations before Other Income, Interest and Exceptional Items		29.882	26.581	81.133
4	Other Income		0.847	1.922	2.832
5	Profit from ordinary activities before finance cost & exceptional items		30.729	28.503	83.966
6	Finance Costs		16.693	13.833	41.449
7	Exchange Difference Loss / (Gain) (Net)		0.000	0.000	0.000
8	Profit from ordinary activities after finance costs & exceptional items		14.037	14.670	42.517
9	Exceptional items		0.000	0.000	0.000
10	Profit from ordinary activities before tax		14.037	14.670	42.517
11	Tax Expense		4.497	4.829	13.998
	- Income Tax		0.000	0.000	0.000
	- Deferred Tax		0.000	0.000	0.000
12	Net Profit from ordinary activity after tax		9.540	9.841	28.519
13	Extraordinary Items		0.000	0.000	0.000
14	Net Profit After Tax		9.540	9.841	28.519
15	Paid-up equity share capital (face value of Rs.10 per share)		30.183	30.183	30.183
16	Reserves excluding Revaluation Reserve as per balance sheet of previous accounting Year		132.410	122.870	132.410
17	Earning Per Share (of Rs.10 each) (not annualized)
	Basic EPS		3.16	3.38	9.77
	Diluted EPS		3.16	3.38	9.77
A		PARTICULARS OF SHAREHOLDING
17		Public Shareholding
		- No. of shares	837100	837100	837100
		- Percentage of shareholding	27.73	27.73	27.73
18		Promoter & Promoter Group Shareholding
		a) Pledged/Encumbered
		- No. of shares	0.000	0.000	0.000
		- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group)	0.000	0.000	0.000
		- Percentage of shareholding (as a % of the total share capital of the company)	0.000	0.000	0.000
		b) Non-encumbered
		- No. of shares	2181200	2181200	2181200
		- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group)	100	100	100
		- Percentage of shareholding (as a % of the total share capital of the company)	72.27	72.27	72.27

	Particulars	Quarter ended 31.09.2014
B	Investor Complaints
	Pending at the beginning of the quarter	Nil
	Received during the quarter	Nil
	Disposed off during the quarter	Nil
	Remaining unresolved at the end of the quarter	Nil

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
From Bank	0.000	0.000
From Other Parties	0.000	0.000
Loans And Advances From Related Parties
Krish Ferro Industries Limited 218.41 200.29 (Formerly Known as Arfin Capital Limited	21.841	20.029
Jatin M Shah	0.000	5.000
Jatin M Shah- HUF	0.000	2.500
Mahendra Corporation	72.852	22.852
Mahendra R Shah	0.000	7.126
Pooja M Shah	0.000	1.000
Pushpaben M Shah	0.000	6.320
Rani J Shah	0.000	5.000
Total	94.693	69.827

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10536358	26/11/2014	30,000,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH, 2ND FLOOR,, 3RD EYE ONE , NR. PANCHVATI CIRCLE, C.G. ROAD,, RAJKOT, Gujara t - 380009, INDIA	C36823300
2	10527050	30/08/2014	180,000,000.00	IDBI Bank Limited	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maha rashtra - 400005, INDIA	C30550636
3	10478261	08/10/2014 *	378,700,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH, 2ND FLOOR,, 3RD EYE ONE , NR. PANCHVATI CIRCLE, C.G. ROAD,, AHMEDABAD, Guj arat - 380009, INDIA	C30638159
4	10385514	21/09/2012	2,307,360.00	Axis Bank Limited	RAC Ahmedabad, CV/ CE Department, 4th Floor, Shiv alik Ishan, Nr. C. N. Vidhyalaya, Ambawadi, AHMEDA BAD, Gujarat - 380006, INDIA	B61729752
5	10335497	28/06/2014 *	198,700,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH, 2ND FLOOR,, 3RD EYE ONE , NR. PANCHVATI CIRCLE, C.G. ROAD,, AHMEDABAD, Guj arat - 380009, INDIA	C11155314
6	10332800	25/02/2013 *	695,700,000.00	Axis Bank Limited	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW G ARDEN ELLISBRIDGE, AHMEDABAD, Gujarat - 380006, IN DIA	B71361349

* Date of charge modification

FIXED ASSETS

Land
Office Building
Plant and Equipment
Furniture and Fixtures
Vehicles
Computer Equipments

AS 17 EXCHANGES FACE CLOSURE, INVESTORS IN OVER 3,000 COMPANIES COULD BE LEFT IN THE LURCH

FUTURE UNCERTAIN (in Nos)
STOCK OF COMPANIES STUCK IN EXCHANGES FACING CLOSURE
Ahmedabad 676	Jaipur 179
Bangalore 255	Ludhiana 290
Bhubaneshwar 46	Madhya Pradesh 268
Culcutta 1,875	Madras 664
Cochin 140	OTCEI 108
Coimbatore 96	Pune 173
Delhi 1,744	Uttar Pradesh 347
Guwahati 170	Vadodara 325

At least Rs.700000.000 Million could be stuck; exit options may prove unpalatable

October 12, 2014:

With Madras, Bangalore, Delhi, Ahmedabad and 13 other stock exchanges set to shut operations in compliance with a Securities and Exchange Board of India (SEBI) order, lakhs of investors will be left in the lurch.

Investors holding shares in more than 3,000 companies, with market capitalisation running into thousands of crores, are likely to be affected as a result of the market regulator’s move to shut down non-operational stock exchanges.

SEBI has directed all exchanges that do not possess a trading platform with an annual turnover of at least Rs.1000.000 crore and a net worth of Rs.1000.000 Million, and that do not have a tie-up with a clearing corporation, to exit. The Calcutta Stock Exchange is complaint on the first two counts and is trying to strike a deal with a clearing corporation. But the others, including 14 regional exchanges, the Over the Counter Exchange of India and the Inter-connected Stock Exchange, will have to wind up operations.

Uncertainty for investors

The question that arises is: What happens to the shares that are listed only on these exchanges? “Such (regional) stock exchanges should have been derecognised only after ensuring protection of investors,” says Virendra Jain, President of Midas Touch Investor Association. “Companies not migrating to a nationwide stock exchange should be compulsorily de-listed and the shareholders given an exit price in accordance with SEBI’s delisting rules.”

According to SEBI, in March 1997, there were 7,995 companies listed on regional stock exchanges across the country. Of these, the Calcutta Stock Exchange accounted for 1,800 companies while the Delhi Stock Exchange came a close second with almost as many. The market capitalisation of these companies was around ₹2-lakh crore in March 1997. “There weren’t too many companies that listed on regional stock exchanges after 1997,” says V Nagappan, member of the advisory committee of the Madras Stock Exchange.

Large sum at stake

But many companies that listed during the IPO boom in 1994-95 are likely to have vanished since then. Assuming that only a third of these companies are still operational, investor money stuck in these companies can still be in the region of ₹70,000 crore.

Since many of the regional stock exchanges are already non-operational, the dealing in most of these stocks was happening through off-market trades. With the latest diktat, there is a lot of confusion among investors holding these shares, says Nagappan. There are some who have been making use of this chaos to approach investors, coaxing them to sell their holdings at extremely low value.

Exit routes

SEBI has prescribed that companies listed only on regional stock exchanges can either seek listing on a national stock exchange, opt for de-listing, or be classified as vanishing companies (if no information is available on them).

Companies that do not fall under any of the above categories have to be moved to a dissemination board to be set up on any nationwide stock exchange. The dissemination board is akin to a notice board where buyers and sellers have to find each other.

But exit through this route is not going to be easy. For one, there is no guarantee that investors will be able to find buyers willing to pay the price they want to make an exit. “There are no contract notes, no trade guarantees.” says S Venkateswaran of Madras Stock Exchange. Some stocks could be in demat form and this will cause additional difficulty.” “This form of exit is a huge injustice to shareholders,” says B Madhav Reddy, MD and CEO of Calcutta Stock Exchange.

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.62.19
UK Pound	1	Rs.92.93
Euro	1	Rs.68.60

INFORMATION DETAILS

Information Gathered by :	NYA

Analysis Done by :	SUB

Report Prepared by :	RNK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.

MIRA INFORM REPORT

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