MIRA INFORM REPORT

Report Date :

19.07.2007

IDENTIFICATION DETAILS

Name :	NYKA STEEL PRIVATE LIMITED

Registered Office :	Plot No. C 17 – 6, MIDC Industrial Area, Taloja District, Raigad – 410206, Maharashtra

Country :	India

Financials (as on) :	31.03.2003

Date of Incorporation :	27.07.1995

Com. Reg. No.:	11-91072

CIN No.: [Company Identification No.]	U27109MH1995PTC091072

TAN No.: [Tax Deduction & Collection Account No.]	PNEN04417A/MUMN11631E

PAN No.: [Permanent Account No.]	AACFN7647L

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer of Black Pipes, G I Pipes, Metals and alloys and Sheet Metals

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :

Status :	Moderate

Payment Behaviour :	Unknown

Litigation :	Clear

Comments :	Subject is an old and established company, but nothing much could be said about the subject. Company’s latest financials are missing from the government Registry and the management so far remained non-cooperative. As per last available financials, the company was faring well, but its current status is unknown. We suggest fully safe and secured business dealings with the subject only. We are continuing our efforts for latest financials and if are successful in obtaining the same, we will supplement our report.

LOCATIONS

Registered/Head Office :	Plot No. C 17 – 6, MIDC Industrial Area, Taloja District, Raigad – 410206, Maharashtra, India
Tel. No. :	91-22-23780358
Email :	forum_1979@rediffmail.com

Corporate Office :	Ginrab, Ground Floor, 73 Sant Tukaram Road, Carnac Bunder, Mumbai – 400009, Maharashtra
Tel. No.:	91-22-23723173/3743038/74
Fax No.:	91-22-23713457

Factory :	13/14/15 Piru Lane, Mumbai – 400009
Tel. No.:	91-22-23780358
Fax No.:	91-22-23713457

DIRECTORS

Name :	Mr. Suhail A. Siddqui
Designation :	Director
Address :	86 – 90, Dilkush Mahal, Block No. 2, Shaheeda Marg, Dongri Street, Mumbai – 400009, Maharashtra, India
Date of Birth :	03.04.1960
Date of Appointment :	03.12.1998

Name :	Mr. Asif A. Siddqui
Designation :	Director
Address :	86 – 90, Dilkush Mahal, Block No. 2, Shaheeda Marg, Dongri Street, Mumbai – 400009, Maharashtra, India
Date of Birth :	22.11.1969
Date of Appointment :	03.12.1998

Name :	Mr. Sarfraz A. Siddqui
Designation :	Director
Address :	86 – 90, Dilkush Mahal, Block No. 2, Shaheeda Marg, Dongri Street, Mumbai – 400009, Maharashtra, India
Date of Birth :	12.09.1965
Date of Appointment :	03.12.1998

Name :	Mr. Nizambuddin A. Siddqui
Designation :	Director
Address :	86 – 90, Dilkush Mahal, Block No. 2, Shaheeda Marg, Dongri Street, Mumbai – 400009, Maharashtra, India
Date of Birth :	15.08.1936
Date of Appointment :	03.12.1998

Name :	Mr. Shakeel A. Siddiqui
Designation :	Director
Address :	86 – 90, Dilkush Mahal, Block No. 2, Shaheeda Marg, Dongri Street, Mumbai – 400009, Maharashtra, India
Date of Birth :	05.05.1958
Date of Appointment :	03.12.1998

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders		No. of Shares
Mr. Nizamudin A. Siddiqui		20000
Mr. Suhail A. Siddiqui		20000
Mr. Sarfaraz A. Siddiqui		20000
Mr. Shakeel A. Siddiqui		20000
Mr. Asif A. Siddiqui		20000

BUSINESS DETAILS

Line of Business :

Manufacturer of Black Pipes, G I Pipes, Metals and alloys and Sheet Metals

GENERAL INFORMATION

No. of Employees :	31

Bankers :	Union Bank of India, Mumbai UCO Bank, Fort Branch, Mumbai


Banking Relations :	Satisfactory

Auditors :
Name :	Ehtesham & Company Chartered Accountant

Associates :	Moon Ispat Industries Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs. 100/- Each	Rs. 1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2000	Equity Shares	Rs. 100/- Each	Rs. 0.200 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2003	31.03.2002	31.03.2001
SHAREHOLDERS FUNDS
1] Share Capital		0.200	0.200	0.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5.486	3.108	0.745
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5.686	3.308	0.945
LOAN FUNDS
1] Secured Loans		0.460	0.196	0.850
2] Unsecured Loans		13.229	10.330	11.334
TOTAL BORROWING		13.689	10.526	12.184
DEFERRED TAX LIABILITIES		1.457	2.784	0.000

TOTAL		20.832	16.618	13.129

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		15.594	11.797	10.047
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	37.152	17.340
	Sundry Debtors	63.480	33.625
	Cash & Bank Balances	0.623	0.220	47.748
	Other Current Assets	0.000	0.000
	Loans & Advances	6.245	1.554
Total Current Assets		107.500	52.739	47.748
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	100.635	46.421	44.674
	Provisions	1.632	1.503	0.000
Total Current Liabilities		102.267	47.924	44.674
Net Current Assets		5.233	4.815	3.074

MISCELLANEOUS EXPENSES		0.005	0.006	0.008

TOTAL		20.832	16.618	13.129

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2003	31.03.2002
Sales Turnover [including other income]	202.029	144.208

Profit/(Loss) Before Tax	3.438	2.469
Provision for Taxation	1.061	0.560
Profit/(Loss) After Tax	2.377	1.909

Export Value	76.608	NA

Total Expenditure	200.128	145.227

KEY RATIOS

PARTICULARS		31.03.2003	31.03.2002	31.03.2001
PAT / Total Income	(%)	1.17	1.32	N.A.

Net Profit Margin (PBT/Sales)	(%)	1.70	1.71	N.A.

Return on Total Assets (PBT/Total Assets}	(%)	2.79	3.82	N.A.

Return on Investment (ROI) (PBT/Networth)		0.60	0.74	N.A.

Debt Equity Ratio (Total Liability/Networth)		20.39	17.66	60.16

Current Ratio (Current Asset/Current Liability)		1.05	1.10	1.06

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets:

v Land

v Building

v Plant & Machinery

v Computer

v Air Conditioners

v Furniture & Fixture

v Motor Car

Name of the company	NYKA STEELS PRIVATE LIMITED
Presented By	UCO BANK, D. N. Road, Mumbai
1) Date and description of instrument creating the change	Dated : 22.09.2003 1. Deed of hypothecation of moveable plant and machinery to secure a Term Loan/ Non Fund Based Limits 2. Agreement for extension of charge by way of hypothecation over current assets to secure non fund based facilities [Both the agreements constitute the single charge]
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 17.500 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	All present and future stocks of raw materials such as steel bars, finished goods, raw materials, work-in-progress, finished goods, stores and spares stored and / or to be stored / brought in or situated at C – 17/6 MIDC Taloja or anywhere else or in course of transit
4) Gist of the terms and conditions and extent and operation of the charge.	Interest as may be notified by bank from time to time
5) Name and Address and description of the person entitled to the charge.	UCO BANK D. N. Road, Mumbai
6) Date and brief description of instrument modifying the charge	Dated 16.03.2004 1. Hypothecation & Book Debts to secure demand cash credit 2. Hypothecation of goods to secured a demand cash credit 3. Hypothecation of plant & machinery as additional security 4. Agreement for extension of charge by way of hypothecation over current assets to secure non fund based facilities [all the agreements constitute a single charge]
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	By present modification additional facility of Rs. 7.500 millions is given availing cash credit facility thereby raising total limit from Rs. 17.500 millions to Rs. 25.000 millions additional security given on all plant, machinery, engines, boilers, appliances tools and implements described in general terms in schedule hereto [hereafter referred to as ‘the plant and machinery’] which now are or shall hereafter at any time or from time to time during the continuance of the security hereby created be brought in or stored or to be in or about the borrowers premises or godowns at C – 17 / 6, MIDC Taloja or anywhere else the same may be [including plant & machinery in course of transit]

Name of the company

NYKA STEELS PRIVATE LIMITED

Presented By

UCO BANK, D. N. Road, Mumbai

1) Date and description of instrument creating the change

Dated : 22.09.2003

1. Deed of hypothecation of moveable plant and machinery to secure a Term Loan/ Non Fund Based Limits

2. Agreement for extension of charge by way of hypothecation over current assets to secure non fund based facilities

[Both the agreements constitute the single charge]

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 17.500 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

All present and future stocks of raw materials such as steel bars, finished goods, raw materials, work-in-progress, finished goods, stores and spares stored and / or to be stored / brought in or situated at C – 17/6 MIDC Taloja or anywhere else or in course of transit

4) Gist of the terms and conditions and extent and operation of the charge.

Interest as may be notified by bank from time to time

5) Name and Address and description of the person entitled to the charge.

UCO BANK

D. N. Road Branch, UCO Bank Building, Fort, Mumbai – 400023

6) Date and brief description of instrument modifying the charge

30.03.2005

a. Hypothecation of goods to secure a demand cash credit

b. Hypothecation and book debts to secure demand cash credit

c. Agreement for extension of charge by way of hypothecation over current assets to secure non fund based facilities

d. Hypothecation of plant and machinery as additional security

All dated 30.03.2005 and relate to single modification

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

By the present modification, the credit facility granted by the bank to the company has been enhanced from Rs. 25 millions to Rs. 70 millions. The break – up of the credit facilities is as follows :-

Facility	Existing Limit	Revised Limit
	[Rupees in Millions]
Cash credit	7.500	10.000
Sub Limit :
Cheque Discounting	Nil	[2.500]
PC cum FBP	Nil	20.000
Import / Inland LC	17.500	40.000
Total	25.000	70.000

The enhanced credit facilities of Rs. 70 millions shall be secured by the hypothecation of :-

Goods and movable property of any kind including HR Coil & Slit, MS Blcak Pipes, Galvanized Pipes, Steel Strips, Steel Pipes, Work in Progress, finished goods etc. belonging to the company which now or hereinafter from time to time during this security shall be brought in, stored or be in or about the company’s premises or godowns at Taloja, district Raigad, Maharashtra or wherever else the same may be.
Book debts, outstanding moneys, receivables, bills, claims and all other moneys which are / may become due and owing to the company
Plant and machinery, machinery spares, equipments, tools and both present and future [save and except book debts] whether installed or not or which shall hereinafter from time to time during the continuance of the security of these presents be brought into or up on or about the company’s factories, premises and godowns or wherever else the same may be.

Interest, Commission, Margin etc. as per sanction letter dated 19.02.2006

Name of the company	NYKA STEELS PRIVATE LIMITED
Presented By	UCO BANK, D. N. Road, Mumbai
1) Date and description of instrument creating the change	Dated : 22.09.2003 1. Deed of hypothecation of moveable plant and machinery to secure a Term Loan/ Non Fund Based Limits 2. Agreement for extension of charge by way of hypothecation over current assets to secure non fund based facilities [Both the agreements constitute the single charge]
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 17.500 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	All present and future stocks of raw materials such as steel bars, finished goods, raw materials, work-in-progress, finished goods, stores and spares stored and / or to be stored / brought in or situated at C – 17/6 MIDC Taloja or anywhere else or in course of transit
4) Gist of the terms and conditions and extent and operation of the charge.	Interest as may be notified by bank from time to time
5) Name and Address and description of the person entitled to the charge.	UCO BANK D. N. Road Branch, UCO Bank Building, Fort, Mumbai – 400023
6) Date and brief description of instrument modifying the charge	N.A.
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	N.A.

Form 8 Particular for creation or modification of charges

Corporation identity number or foreign company registrations number of the company	U27109MH1995PTC091072
Name of the company	NYKA STEELS PRIVATE LIMITED
Address	Plot No. C 17 – 6, MIDC Industrial Area, Taloja District, Raigad – 410206, Maharashtra, India
This Form is for	Modification of charge
Type of Charges	Hypothecation and Equitable mortgage or mortgage of property by depositing the title deeds
Particular of the charge holder	UCO BANK UCO Bank Building, 359, D. N. Road, Mumbai – 400001, Maharashtra, India E-mail : BO.DNROAD@UCOBANK.CO.IN
Amount Secure by the charge	Rs. 70.000 millions
Description of the property charge whether it is a charge on	Immovable properties, plant and machinery, stock in trade, book debts and fixed deposits
Modification charge Charge identification number of the charge to be modified	90151123
Date of instrument modifying the charge	29.08.2006
Brief description of the instrument modifying the charge	A] Deed of hypothecation dated 29.08.2006 B] Memorandum of depositing title deeds / documents of the property charged and extension of equitable mortgage, both constitute single charge.

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 records 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.40.40
UK Pound	1	Rs.82.93
Euro	1	Rs.55.81

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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
TOTAL		28

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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

MIRA INFORM REPORT

NETWORTH

TOTAL BORROWING

TOTAL

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]

Capital work-in-progress

INVESTMENT

DEFERREX TAX ASSETS

CURRENT ASSETS, LOANS & ADVANCES

Inventories

37.152

Sundry Debtors

63.480

Cash & Bank Balances

0.623

Other Current Assets

0.000

Loans & Advances

6.245

Total Current Assets

107.500

Less : CURRENT LIABILITIES & PROVISIONS

Current Liabilities

100.635

Provisions

1.632

Total Current Liabilities

102.267

Net Current Assets

5.233

MISCELLANEOUS EXPENSES

TOTAL

Sales Turnover [including other income]

Profit/(Loss) Before Tax

Provision for Taxation

Profit/(Loss) After Tax

Export Value

Total Expenditure

1.17

1.70

2.79

0.60

20.39

1.05

Unit