MIRA INFORM REPORT

Report Date :

15.11.2008

IDENTIFICATION DETAILS

Name :	Z V STEELS PRIVATE LIMITED
Registered Office :	Gokul GM-1 Mezannine Floor, 80/A Baroda Street, Carnac Bunder, Sant Tukaram Road, Mumbai – 400 009, Maharashtra, India
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	01.08.1997
Com. Reg. No.:	11-109791
CIN No.: [Company Identification No.]	U51909MH1997PTC109791
TAN No.: [Tax Deduction & Collection Account No.]	MUMZ00693A
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of CRCA Coils and Sheets.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 55000
Status :	Satisfactory
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a well established concern having satisfactory track. Trade relations are reported as fair. Payments are reported as slow but correct. The company can be considered normal for business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Muffadal
Designation :	Accountant
Date :	14.11.2008

LOCATIONS

Registered Office :	Gokul GM-1 Mezannine Floor, 80/A Baroda Street, Carnac Bunder, Sant Tukaram Road, Mumbai – 400 009, Maharashtra, India
Tel. No.:	91-22-23424439
Fax No.:	91-22-23422778
E-Mail :	zvsteels@vsnl.net
Area :	210 sq ft
Location :	Owned
Warehouse :	C/17/1, Mix Taloja, Dist Raigad – 410 208
Location :	Owned

DIRECTORS

Name :	Mr. Karimbhoy Ebrahimji Lokhandwala
Designation :	Director
Address :	905/ 906, Sagar Classic, 64 Clare Road, Bycula, Mumbai – 400 008, Maharashtra, India
Date of Birth/Age :	04.12.1928
DIN :	00361140
Date of Appointment :	01.08.1997
Name :	Mr. Riyaz Karimbhoy Lokhandwala
Designation :	Director
Address :	905/ 906, Sagar Classic, 64 Clare Road, Bycula, Mumbai – 400 008, Maharashtra, India
Date of Birth/Age :	02.01.1956
DIN :	00361140
Date of Appointment :	01.08.1997
Name :	Mrs. Yasmin Riyaz Lokhandwala
Designation :	Director
Address :	905/ 906, Sagar Classic, 64 Clare Road, Bycula, Mumbai – 400 008, Maharashtra, India
Date of Birth/Age :	17.09.1960
DIN :	00360912
Date of Appointment :	28.09.1998
Name :	Mr. Kamal Kumar Poddar
Designation :	Director
Address :	401, Tribhavan Apartment, Dabhadai Road, Vile Parle (West), Mumbai – 400 056, Maharashtra, India
Date of Birth/Age :	28.07.1959
Date of Appointment :	01.08.1997
Date of Ceasing :	28.11.2006
Name :	Mrs. Kanta Kamal Poddar
Designation :	Director
Address :	401, Tribhavan Apartment, Dabhadai Road, Vile Parle (West), Mumbai – 400 056, Maharashtra, India
Date of Birth/Age :	21.05.1963
E-Mail :	mladiwala@rediffmail.com
Date of Appointment :	01.08.1997
Date of Ceasing :	28.11.2006

Name :	Mr. Vishal Kamal Poddar
Designation :	Director
Address :	401, Tribhavan Apartment, Dabhadai Road, Vile Parle (West), Mumbai – 400 056, Maharashtra, India
Date of Birth/Age :	28.10.1983
Date of Appointment :	01.10.2001
Date of Ceasing :	8.11.2006
Name :	Mr. Zameer R. Lokhandwala
Designation :	Director
Address :	401, Tribhavan Apartment, Dabhadai Road, Vile Parle (West), Mumbai – 400 056, Maharashtra, India
Date of Birth/Age :	12.09.1987
Date of Appointment :	23.11.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Karimbhoy Ebrahimji Lokhandwala and Riyaz Karimbhoy Lokhandwala	10
Riyaz Karimbhoy Lokhandwala and Yasmin Riyaz Lokhandwala	124980
Malekha S. Shah and Riyaz Karimbhoy Lokhandwala	10
Yasmin Riyaz Lokhandwala and Riyaz Karimbhoy Lokhandwala	37500
Roohi Riyaz Lokhandwala and Riyaz Karimbhoy Lokhandwala	37500
Zameer R. Lokhandwala and Riyaz Karimbhoy Lokhandwala	50000
Total	250000

Equity share breakup (percentage of total equity)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of CRCA Coils and Sheets.
Imports :
Countries :	China USA
Terms :
Selling :	Cash, Advance
Purchasing :	Credit (30 days)

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

35

Bankers :

• Union Bank of India, Sant Tukaram Road Branch, Apeejay-Surendra, 34, Baroda Street, Carnac Bunder, Mumbai – 400 009, Maharashtra, India
• ICICI Bank

Facilities :

Particular	31.03.2008 (Rs.In Millions)
Secured Loan
Union Bank of India (Secured Against Hypothecation of Stock, Book Debts and Collateral Security of One Flat of the Director, Two offices of the Company and Shares of the Company)	49.001
Union Bank of India (Secured Against Hypothecation of One Flat of the Director, Two offices of the Company and Shares of the Company)	7.382
ICICI Bank (Car Loan) (Secured Against Hypothecation of Motor Car)	0.714
Total	57.097
Unsecured Loan
From Directors	6.656
From Others	2.044
Total	8.700

Banking Relations :	Satisfactory
Auditors :
Name :	Akheter Peerbhoy and Company Chartered Accountants
Address :	512 A Rewa Chabbers, 5^th Floor, 31 SIR Vithaldas Thackersey Marg, Mumbai – 400 010, Maharashtra, India

CAPITAL STRUCTURE

(As On 29.09.2007)

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

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

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		5.000	2.500	2.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6.035	4.900	4.095
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		11.035	7.400	6.595
LOAN FUNDS
1] Secured Loans		57.098	24.532	14.820
2] Unsecured Loans		8.701	8.025	6.555
TOTAL BORROWING		65.799	32.557	21.375
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		76.834	39.957	27.970
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.917	1.180	1.615
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		1.638	1.631	1.601
DEFERREX TAX ASSETS		0.148	0.121	0.103
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	33.072	29.916	19.526
	Sundry Debtors	35.471	25.689	19.747
	Cash & Bank Balances	2.951	2.018	0.149
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	4.837	2.984	2.572
Total Current Assets		76.331	60.607	41.994
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2.443	22.493	16.517
	Provisions	1.850	1.100	0.850
Total Current Liabilities		4.293	23.593	17.367
Net Current Assets		72.038	37.014	24.627
MISCELLANEOUS EXPENSES		0.093	0.011	0.024
TOTAL		76.834	39.957	27.970

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		415.102	372.146	336.083
Other Income		0.379	0.110	0.361
Total Income		415.481	372.256	336.444
Profit/(Loss) Before Tax		1.858	1.434	1.180
Provision for Taxation		0.723	0.629	0.408
Profit/(Loss) After Tax		1.135	0.805	0.772
Expenditures :
	Cost of Goods Sold	397.520	362.658	328.538
	Administrative Expenses	9.009	5.742	4.839
	Interest	6.519	2.255	1.621
	Depreciation & Amortization	0.574	0.168	0.267
	Other Expenditure
Total Expenditure		413.622	370.822	335.265

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	0.27	0.21	0.22
Net Profit Margin (PBT/Sales)	(%)	0.44	0.38	0.35
Return on Total Assets (PBT/Total Assets}	(%)	2.34	2.32	2.70
Return on Investment (ROI) (PBT/Networth)		0.16	0.19	0.17
Debt Equity Ratio (Total Liability/Networth)		6.35	7.58	5.87
Current Ratio (Current Asset/Current Liability)		17.78	2.56	2.41

LOCAL AGENCY FURTHER INFORMATION

Dividend:

With a view to further improving Debt-Equity ratio of the Company, the Directors have decided not to recommended any dividend for distribution to the shareholders and instead plough back the Surplus.

Remuneration:

The company has no employees who are in receipt of emoluments amounting in the aggregate to Rs.2.400 Millions or more for the year and Rs.0.200 Millions or more per month for a part of the year.

Form 8

Name of the company	Z. V. Steels Private Limited
Presented By	Union Bank of India, Sant Tukaram Road Branch, Mumbai
1) Date and description of instrument creating the change	Hypothecation (Goods) Agreement Hypothecation of Book-Debts Dated: 13.07.1999 (Both the above documents constitute a single charge)
2) Amount secured by the charge/amount owing on the securities of charge	Rs.8.500 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	Hypothecation of C.R.Coil/ C.R Sheet, CRCA M.S. Strips belonging to the Borrower which now or hereinafter from time to time curing this security shall be brought in stored or be in or about the Borrowers premises or godowns at Gupta Cutter, Taloja and or in transit or with Borrowers agents or wherever else they may be. Hypothecation of all the Borrowers present and future Book Debts, Outstanding, Moneys, receivable claims, bills, contracts, securities, investments, rights and assets.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest at the rate of 16.32% p.a. and or at such other rate as may be prescribed by the Bank from time to time for the Cash Credit Hypothecation facility of Rs.8.500 Millions granted by the Bank to the Company.
5) Name and Address and description of the person entitled to the charge.	Union Bank of India, Sant Tukaram Road Branch, Apeejay-Surendra, 34, Baroda Street, Carnac Bunder, Mumbai – 400 009, Maharashtra, India
6) Date and brief description of instrument modifying the charge	Hypothecation (Goods) Agreement Dated: 15.03.2005
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.	The Original Charge dated: 13.07.1999 for Rs.8.5000 Millions has been modified from time to time as under: On 03.07.2003 the cash credit hypothecation limit against stock and book debts was enhanced from Rs.8.500 Millions to Rs.10.000 Millions against hypothecation by way of first charge in favour of the bank Steel Coils which expression shall all goods movable property of any kind now or at any time hereafter belonging to or at the disposal of the Borrower and which are now stored or being stored or which hereafter may from time to time be brought in to or stored or be in or about the Borrowers premises or godowns at Taloja and at other places hired by the Borrower for the purpose of storage in the Union of India and all other places of storage whatsoever at or at any other place in the Union of India or wherever else they may be including any of the said goods with any of the Borrowers agents or at any of the ship , rail or otherwise and The Borrowers Book Debts, Outstanding monies, deposite, receivables, claims, bills, contracts, securities, investments, which are now due and owing or which may at any time hereafter during the continuance of this security becoming due and owing to the Borrower in the course of its business by any person or party including any Government or any local or public body or authority (all of which are herein after collectively referred to as the said Debts) Interest at the rate of 14.50% p.a with monthly rests or at such other revised rate as may be prescribed by the bank from time to time depending upon the changes in the Prime Lending Rate of the Bank or directives of Reserve Bank of India from time to time or the policy of the Bank on advances for Cash Credit Hypothecation facility against Stocks and Book Debts facility of Rs.10.000 Millions granted by the bank to the company. On 04.07.2003 an Equitable Mortgage by way of Deposit of Title Deeds was created in respect of Company’s immovable property present and future viz Office Premises bearing No. GM-4 admeasuring 210 sq ft Built up on Mezzanin Floor in the Building known as GOKUL constructed on pirce or parcel of land bearing Cadastral survey No. 193 of Princess Dock Division, situated at Plot No.80A, in the Elphinstone, Estate section of the town planning scheme, Mumbai City situated at Baroda Street as security for securing the due repayment and discharge of all the amounts outstanding under Cash credit Hypothecation (Stock and Book Debts) facility of Rs.10.000 Millions granted by the Bank to the Company together with interest, additional interest in case of default, liquidated damages, commitment charges, premia on repayment or redemption, costs, charges, express and other monies payable/ outstanding in the said credit facilities Vide this modification the total charge amount has been enhanced from Rs.10.000 Millions to Rs.30.000 Millions by granting the additional facilities as mentioned below: Nature of Limit Amount in Millions Existing Limit Revised Limit Cash Credit (Hyp) 10.000 15.000 Inland/ Import L/C 0.000 0.000 Total 10.000 15.000 Against Hypothecation of Stock of Iron and Steel which expression shall include all raw materials, semi finished goods, products and movable property of any kind belonging to the Borrower which now or hereinafter from time to time during this security shall be brought in, stored or to be in or about the Borrowers premises or godowns at Taloja/ Kalamboli or in the godowns premises hired by the Borrower for storing them and or in transit. Interest at he rate of 13.75% p a with monthly rests or such other revised rates as may be prescribed by the bank from time to time depending upon the changes in the Prime Lending Rate of the Bank or the directives of Reserve bank of India from time to time or the policy of the bank on advance

This form is for	Modification of charge
Charge identification number of the modified	90150685
Corporate identity number of the company	U51909MH1997PTC109791
Name of the company	Z V STEELS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Gokul GM-1 Mezannine Floor, 80/A Baroda Street, Sant Tukaram Road, Mumbai – 400 009, Maharashtra, India
Type of charge	Book Debts Movable Property
Particular of charge holder	Union Bank of India, Sant Tukaram Road Branch, Apeejay-Surendra, 34, Baroda Street, Carnac Bunder, Mumbai – 400 009, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Supplementary Agreement to Hypothecation Agreement of Goods and Debts
Date of instrument Creating the charge	01.01.2008
Amount secured by the charge	Rs.100.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest BPLR+0.5% with monthly rests. Terms of Repayment On Demand Margin As per sanction letter Extent and Operation of the charge To secure various facilities aggregating to Rs.100.000 Millions granted by the Bank to the Company as under:- Cash Credit (Stocks and Book Debts) facility of Rs.70.000 Millions and Import L/C (DP/DA 60 days) facility of Rs.30.000 Millions Total aggregating to Rs.100.000 Millions Others
Short particulars of the property charged	That the Hypothecated Goods, Book-Debts and Movable Property covered by the Hypothecation Agreement shall continue to be security for the bank for the enhanced limit of Cash Credit (Hypothecation) Stock and Book-Debts Limit of Rs.70.000 Millions and Import L/C (DP/DA 60 days) facility of Rs.30.000 Millions Total Aggregating to Rs.100.000 Millions
Date of latest modification prior to the present modification	24.04.2007

Trade Reference

• Anusuiya Auto Parts, Pune
• Gloria Engineering, Pune
• Desai Autocom, Pune

Fixed Assets

• Air Conditioner
• Cellular Phone
• Computer
• Fax Machine
• Motor Car
• Motor Car (Honda City)
• Motor Car (Hyundai Getz)
• Furniture and Fixture
• Water Cooler
• Television
• Office Premises (Kalamboli)
• Office Premises (Gokul)

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.49.46
UK Pound	1	Rs.73.17
Euro	1	Rs.62.96

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.	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