MIRA INFORM REPORT

Report No. :	354032
Report Date :	10.12.2015

IDENTIFICATION DETAILS

Name :	MAHENDRA ALUMINIUM COMPANY LIMITED (w.e.f.17.04.2013)
Formerly Known As :	ARFIN ENTERPRISES LIMITED
Registered Office :	B-302, 3^rd Floor, Pelican House, GCCI Building, Near Natraj Cinema, Ashram Road, Ahmedabad – 380009, Gujarat
Tel. No.:	91-79-26583791
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	25.04.1995
Com. Reg. No.:	04-025589
Capital Investment / Paid-up Capital :	Rs. 11.850 Million
CIN No.: [Company Identification No.]	U65910GJ1995PLC025589
IEC No.:	0895006171
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCA6409P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Trader and Importer of Aluminium and Stainless Steel Castings. (Confirmed by Management)
No. of Employees :	09 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject was established in the year 1995 and it is engaged in the manufacturing, trading and importing of aluminium and stainless steel castings. For the financial year ended 2015, company has reported 11.14% revenue growth as compared to previous year revenue and it has maintained average profitability margin at 1.07% during the year under review. Rating takes into consideration company’s established track record of business operations supported by its above average net worth base along with favorable gap between trade payables to its receivables and sound debt coverage indicators. Trade relations are reported as fair. Payment terms are reported to be usually correct. The company can be considered for 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.

EXTERNAL AGENCY RATING

NOT AVAILABLE

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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Vijay Lathi
Designation :	Chief Executive Officer
Contact No.:	91-9824088021
Date :	08.12.2015

LOCATIONS

Registered Office :	B-302, 3^rd Floor, Pelican House, GCCI Building, Near Natraj Cinema, Ashram Road, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-26583791
Mobile No.:	91-9824088021 (Mr. Vijay Lathi)
Fax No.:	91-79-25620620
E-Mail :	mahendra@arfin.co.in vijay.lathi@arfin.co.in
Area :	3500 Sq. Ft
Location :	Owned
Warehouse :	3202, Phase-II, GIDC, Chhatral Taluka: Kalol, District: Gandhinagar, Gujarat, India
Factory :	117/2 and 3/B-4, Ravi Industrial Estate, Billeshwarpura, Kalol, District Gandhidham, Gujarat, India

DIRECTORS

AS ON 20.09.2014

Name :	Mr. Jatin Mahendrakumar Shah
Designation :	Director
Address :	Khandwala Bunglow, Near Post Office, Hirani Haveli, Dharam Nagar, Sabarmati, Ahmedabad – 380005, Gujarat, India
Date of Birth/Age :	09.12.1983
Date of Appointment :	07.06.2012
DIN No.:	00182683
Name :	Mr. Mahendrakumar Rikhavchand Shah
Designation :	Director
Address :	Khandwala Bunglow, Near Post Office, Hirani Haveli, Dharam Nagar, Sabarmati, Ahmedabad – 380005, Gujarat, India
Date of Birth/Age :	09.03.1963
Date of Appointment :	25.04.1995
DIN No.:	00182746
Name :	Mr. Rani Jatin Shah
Designation :	Director
Address :	Khandwala Bunglow, Near Post Office, Hirani Haveli, Dharam Nagar, Sabarmati, Ahmedabad – 380005, Gujarat, India
Date of Birth/Age :	10.07.1983
Date of Appointment :	07.06.2012
DIN No.:	03641294

KEY EXECUTIVES

Name :	Mr. Vijay Lathi
Designation :	Chief Executive Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2015

Names of Shareholders	No. of Shares
Mahendra Rikhavchand Shah	98900
Pushpaben Mahendra Shah	7600
M.R. Shah As Karta of Mahaendra R. Shah (HUF)	75900
Jatin M. Shah	293400
Rani J. Shah	289200
Pooja M. Shah	285000
Sunderdevi G. Nahta	60000
Jyotikadevi J. Nahta	60000
Aayurshi Infraprojectts Private Limited, India	15000
Total	1185000

AS ON 20.09.2014

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	25.32
Directors or relatives of directors	64.56
Other top fifty shareholders	10.12
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Trader and Importer of Aluminium and Stainless Steel Castings. (Confirmed by Management)

Products :

ITC Code No.	Product Descriptions
85322200	Aluminium

Brand Names :

--

Agencies Held :

--

Exports :

Products :

--

Countries :

--

Imports :

Products :

Raw Material

Countries :

· UK

· Dubai

· Saudi Arabia

· European Countries

Terms :

Selling :

Cash and Cheque

Purchasing :

Cash and Cheque

PRODUCTION STATUS (AS ON 31.03.2014)

Particulars	Licensed Capacity (In tonnes)	Installed Capacity (In tonnes)	Actual Production (In tonnes)
Metal Scrap	Not Available	3000 tonnes p.a.	160.78
Others	Not Available		22.83
Total			183.61

GENERAL INFORMATION

Suppliers :

Reference:	B.R. Metal and Alloys Gujarat Limited
Name of the Person (Designation):	Mr. Naval Somani (Manager)
Contact Number:	91-9712773636
Since how long known:	3 Years
Maximum limit dealt:	Excellent
Experience:	Not Divulged
Remark	He informed that we have very good relation with this company and no complaints.

Customers :

Wholesalers, Retailers and End Users

Reference:	Essar Steel Limited
Name of the Person (Designation):	Mr. Aplesh Hirapara (Purchase Manager)
Contact Number:	91-9925241335
Since how long known:	3 Years
Maximum limit dealt:	Excellent
Experience:	Not Divulged
Remark	He informed that we have very good relation with this company and no complaints.

No. of Employees :

09 (Approximately)

Bankers :

Bank Name:	Axis Bank Limited
Branch:	Shahibaug, Ahmedabad, Gujarat, India
Person Name (with Designation):	Mr. Sheetal (Manager)
Contact Number:	91-79-25631001
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks:	Mr. Sheetal (Manager) denied to provide any information about subject company.

· Oriental Bank of Commerce

Neel Kamal Building, Opposite Sales India, Ashram Road, Ahmedabad - 380009, Gujarat, India

· Axis Bank Limited

Trishul 3rd Floor Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad-380006, Gujarat, India

Facilities :

SECURED LOANS	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
LONG-TERM BORROWINGS
Vehicle Loan – HDFC Bank	0.000	0.318
SHORT TERM BORROWINGS
Working capital loan – CC (Axis Bank Limited)	97.749	98.291
Total	97.749	98.609

Banking Relations :	--
Auditors :
Name :	Kothari and Gupta Associates Chartered Accountants
Address :	18, Ground Floor, National Chambers, Near City Gold Cinema, Ashram Road, Ahmedabad-380009, Gujarat, India
Income-tax PAN of auditor or auditor's firm :	AACFK5999G
Memberships :	--
Collaborators :	--
Enterprises significantly influenced by Directors or their relatives :	· Arfin India Limited · Krish Ferro Industries Limited (Formerly known as Arfin Capital Limited) · Mahendra Corporation

CAPITAL STRUCTURE

AS ON 31.03.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
1,500,000	Equity Shares	Rs. 10/- each	Rs. 15.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,185,000	Equity Shares	Rs. 10/- each	Rs. 11.850 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	11.850	11.850	11.850
(b) Reserves & Surplus	39.521	31.225	27.864
(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)	51.371	43.075	39.714
(3) Non-Current Liabilities
(a) Long-term borrowings	0.000	7.661	2.959
(b) Deferred tax liabilities (Net)	0.747	0.450	0.113
(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)	0.747	8.111	3.072
(4) Current Liabilities
(a) Short term borrowings	97.749	98.291	97.315
(b) Trade payables	143.784	45.616	86.398
(c) Other current liabilities	3.091	0.434	0.320
(d) Short-term provisions	1.093	0.246	0.093
Total Current Liabilities (4)	245.717	144.587	184.126
TOTAL	297.835	195.773	226.912
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	28.530	30.546	2.218
(ii) Intangible Assets	0.007	0.013	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.478	0.478
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	28.537	31.037	2.696
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	55.255	18.561	64.768
(c) Trade receivables	204.240	78.200	112.035
(d) Cash and cash equivalents	1.159	0.514	39.317
(e) Short-term loans and advances	8.644	67.461	8.096
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	269.298	164.736	224.216
TOTAL	297.835	195.773	226.912

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Revenue from Operations	770.495	693.781	533.058
		Other Income	1.561	0.848	0.474
		TOTAL (A)	772.056	694.629	533.532
Less	EXPENSES
		Cost of Materials Consumed	702.820	604.685	560.909
		Purchases of Stock-in-Trade	0.000	0.000	0.000
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	6.817	52.418	(58.480)
		Employees benefits expense	3.603	2.648	2.391
		Other expenses	33.678	12.348	12.408
		TOTAL (B)	746.918	672.099	517.228
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		25.138	22.530	16.304
Less	FINANCIAL EXPENSES (D)		11.744	17.253	13.055
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		13.394	5.277	3.249
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.035	0.468	0.185
	PROFIT BEFORE TAX (E-F) (G)		12.359	4.809	3.064
Less	TAX (H)		4.051	1.448	0.916
	PROFIT AFTER TAX (G-H) (I)		8.308	3.361	2.148
	IMPORTS
		Trading Goods	298.252	337.697	189.700
	TOTAL IMPORTS		298.252	337.697	189.700
	Earnings Per Share (Rs.)		7.01	2.84	1.81

Expected Sales (2015-2016): Rs. 800.000 Million

The above information has been parted by Mr. Vijay Lathi (Chief Executive Officer)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturity Vehicle Loan	0.318	0.315	0.285
Cash Generated from Operations	19.023	1.582	NA
Net Cash Flow from Operating Activities	19.023	1.582	NA

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	1.08	0.48	0.40
Operating Profit Margin (PBDIT/Sales)	(%)	3.26	3.25	3.06
Return on Total Assets (PBT/Total Assets}	(%)	4.15	2.46	1.35
Return on Investment (ROI) (PBT/Networth)		0.24	0.11	0.08
Debt Equity Ratio (Total Debt/Networth)		1.91	2.47	2.53
Current Ratio (Current Asset/Current Liability)		1.10	1.14	1.22

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	11.850	11.850	11.850
Reserves & Surplus	27.864	31.225	39.521
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	39.714	43.075	51.371
Long-term borrowings	2.959	7.661	0.000
Short term borrowings	97.315	98.291	97.749
Current Maturity Vehicle Loan	0.285	0.315	0.318
Total borrowings	100.559	106.267	98.067
Debt/Equity ratio	2.532	2.467	1.909

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	533.058	693.781	770.495
		30.151	11.057

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	533.058	693.781	770.495
Profit	2.148	3.361	8.308
	0.40%	0.48%	1.08%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	Yes
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10458288	07/03/2015 *	150,000,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW G ARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, IN DIA	C47900949

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
LONG-TERM BORROWINGS
Inter Corporate Deposits	0.000	4.368
Other unsecured loans	0.000	2.975
Total	0.000	7.343

REVIEW OF OPERATIONS:

During the financial year under report, the Company’s Total Revenue was Rs. 772.057 Million as compared to Rs. 694.629 Million during the previous financial year. The Profit Before Depreciation, Interest and Tax increased from Rs. 22.529 to Rs. 25.137 Million and Net Profit after Depreciation and Tax alos increased from Rs. 3.361 Million to Rs. 8.308 Million.

CHANGE OF ADDRESS:

The Registered Office of the company has been shifted from H-10, Madhupura Market Shahibaug Road, Ahmedabad-380004, Gujarat, India to the present address w.e.f 30.06.2012

FIXED ASSETS:

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer Equipments

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 66.75
UK Pound	1	Rs. 100.29
Euro	1	Rs. 72.89

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	KAR
Report Prepared by :	IND

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	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.