MIRA INFORM REPORT

Report Date :

03.10.2008

IDENTIFICATION DETAILS

Name :	SANVIJAY ROLLING AND ENGINEERING LIMITED
Registered Office :	9, Imambada Road, Nagpur – 440016, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	16.10.1987
Com. Reg. No.:	11-45013
CIN No.: [Company Identification No.]	U27100MH1919PLC045013 / U27100MH1987PLC045013
TAN No.: [Tax Deduction & Collection Account No.]	NGPS00313F
PAN No.: [Permanent Account No.]	AACCS0217
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Subject is engaged in Steel Re – Rolling and Traded Goods.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 6000000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established company having satisfactory track. Trade relations are fair. General financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	9, Imambada Road, Nagpur – 440016, Maharashtra, India
Tel. No.:	91-7104-237961 / 712-2729130-137
Mobile No.:	91- 9822221500
Fax No.:	91-7104-236475 / 712-2720716
E-Mail :	steel@sanvijay.com
Website :	www.sanvijay.com
Head Office :	Unit H - 1, Plot No. F – 16 MIDC, Hingna Road, Nagpur – 16, Maharashtra
Tel. No.:	91-7104-237961, 7104-236476, 7104-236782
Fax No.:	91-7104-236475
Area :	16480sq. mtr.
Location :	Leased
Corporate Office :	Unit H – 2, Plot No. S – 88, MIDC, Hingna Road, Nagpur – 440016. Maharashtra
Tel. No.:	91-7104-234949, 7104-235942, 7104- 236942
Fax No.:	91-7104- 234848
Area :	15625 sq. mtr.
Location :	Leased
Factory 1 :	Unit H – 3, Plot No. 41 and 43, MIDC, Hingna Road, Nagpur – 440028, Maharashtra
Tel. No.:	91-7104-235064, 7104-235697, 7104-235713
Fax No.:	91-7104-235713
Area :	32775 sq. mtr.
Location :	Leased
Factory 2 :	Unit H – 4, Plot No. F – 11 / 12, MIDC, Hingna Road, Nagpur – 440016, Maharashtra
Tel. No.:	91-7104-236472, 7104-236473, 7104- 236761
Fax No.:	91-7104- 236471
Area :	24084 sq. mtr.
Location :	Leased
Branches :	Unit B – 1, Plot No. B – 202 Butibori, MIDC, Nagpur – 441 108, Maharashtra
Tel. No.:	91-7104-265159, 7104-265160, 7104-265161, 7104-265162
Fax No.:	91-7104-265409
Area :	79750sq.mtr.
Location :	Leased
Branches :	Unit B – 2, Plot No. B – 203 – 206, Butibori, MIDC, Nagpur – 441 108, Maharashtra
Tel. No.:	91-9993010476, 7104- 2101246
Fax No.:	91-7104-265685, 7104-265286
Area :	189868 sq. mtr.
Location :	Leased
Branches :	Unit Ryp – 1, Khasra No. 273/2, Industrial Growth Center, Munrethi Road, Siltara, Phase II, Raipur 493 111 (Chhatisgarh)
Tel. No.:	91-771-2101246, 91-9993010476
Fax No.:	91-771-2101245
Area :	3472.222 sq. mtr.
Location :	Leased
Branches :	Plot No. J – 14, MIDC, Hingna Road, Nagpur – 440016, Maharashtra
Tel. No.:	91-7104-234208
Area :	7520 sq. mtr.
Location :	Leased
Branch :	Plot No. G – 180, Old RCS Compound, Jhotwara Industrial Area, Jaipur – 302 012 (Rajasthan)
Tel No :	91-141-2173117, 91-9928506000, 91-9829977444
Area :	12108 Sq.ft.
Location :	Leased
Branches :	Plot No. 83, 84, 84A Surat Dhulia Road, Mouza – Kamalchood (Bajipura), Tahsil – Walod, Distric – Tapi (Gujarat)
Tel. No.:	91-2625-290648
Fax No.:	91-2625-290648
Area :	345.06 sq. mtr.
Location :	Owned
Branches :	C/O Rajkumar Jaiswal, Plot No. 104, Nagpur Jabalpur Road, Khawasa, District – Seoni (M. P.)
Tel. No.:	91-9424364606
Fax No.:	91-7695-232488
Area :	4000 Sq.ft.
Location :	Rented

DIRECTORS

Name :	Mr. Ramesh Kumar Pachisia
Designation :	Director
Name :	Mr. Sanjay Agarwal
Designation :	Director
Address :	26, Bhagwaghar Layout, Dharampeth, Nagpur – 440010.
Date of Birth/Age :	41 Years
Qualification :	B.com
Experience :	19 Years
Name :	Mr. Puranlal Agarwal
Designation :	Director
Address :	26, Bhagwaghar Layout, Dharampeth, Nagpur – 440010.
Date of Birth/Age :	69 Years
Qualification :	B.com
Experience :	45 Years
Name :	Mr. Ajay Agarwal
Designation :	Director
Address :	26, Bhagwaghar Layout, Dharampeth, Nagpur – 440010.
Date of Birth/Age :	29 Years
Qualification :	B.E. (Industrial)
Experience :	7 Years

BUSINESS DETAILS

Line of Business :	Subject is engaged in Steel Re – Rolling and Traded Goods.
Products With Brand Names :	· Ms/HT Angles (Sanvijay) · Channels (Sanvijay) · Broad/ Flange Beams (Sanvijay) · Joists/ Beams (Sanvijay)
Exports :
Products :	· MS/HT/Angles · Channels · Beams
Countries :	Middle East
Terms :
Selling :	L/C, Cash
Purchasing :	L/C, Cash

PRODUCTION STATUS

Particulars	Major Share Holders	No. Of Shares Hold	Actual Production
Rolled Steel	Individual	500000	169025.091 M. T.
Steel Semis	---	---	16051.885M.T.

GENERAL INFORMATION

Customers :	· Wholesalers · Retailers · End Users · OEM’s · Others Transmission line Tower (TLT) - KEC International Limited - RPG - Bajaj Electricals Limited - Hyundai Unitech - L and T - KPTL - JSL - TATA Projects - Richardson and Cruddas - ATSL Wind Mill Manufacturers - Suzlon Energy - Pioneer Wincon Engineering and Construction Sector - ACC - Godrej Industries Limited - ABB - TISCO - Raymond - Reliance Industries Limited - Reliance Infocomm Limited
No. of Employees :	Total : 520 ( Office : 118, Factory : 390, Branches : 12)
Bankers :	Nagpur Nagrik Sahakari Limited, Sitabuldi Branch, Nagpur
Facilities :	CC Limits Rs. 2.500 millions.
Banking Relations :	Good
Auditors :
Name :	Gupta Sarda & Bagdia Chartered Accountant
Group Companies :	· Sanvijay Steels Private Limited · Sanvijay Alloys Private Limited · Prakash Ispat Udyog · Sanvijay Industries Private Limited · Sanvijay Rolling and Engineering Limited
Associates/Subsidiaries :	Prakash Traders 9, Imambada Road, Nagpur – 440 018.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs. 100/- Each	Rs. 50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs. 100/- Each	Rs. 50.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007 (9 months)	30.06.2006	30.06.2005
SHAREHOLDERS FUNDS
1] Share Capital		50.000	14.614	14.594
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1446.287	1219.201	905.017
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1496.287	1233.815	919.611
LOAN FUNDS
1] Secured Loans		1699.248	1308.811	524.546
2] Unsecured Loans		424.456	599.048	676.050
TOTAL BORROWING		2123.704	1907.859	1200.596
DEFERRED TAX LIABILITIES		118.453	98.806	69.345
TOTAL		3738.443	3240.481	2189.552
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		834.903	754.252	413.083
Capital work-in-progress		362.370	298.109	339.707
INVESTMENT		0.015	0.015	0.015
DEFERREX TAX ASSETS		1.100	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1566.312	1254.701	1361.968
	Sundry Debtors	1096.477	1073.403	674.865
	Cash & Bank Balances	52.586	18.903	21.073
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	563.007	655.073	542.399
Total Current Assets		3278.382	3002.080	2600.305
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	738.366	814.034	1163.686
	Provisions	0.000	0.000	0.000
Total Current Liabilities		738.366	814.034	1163.686
Net Current Assets		2540.016	2188.046	1436.619
MISCELLANEOUS EXPENSES		0.039	0.060	0.128
TOTAL		3738.443	3240.481	2189.552

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007 (9 months)	30.06.2006	30.06.2005
Sales Turnover [including other income]		4567.327	5848.512	6237.017
Other Earnings		10.608	14.466	1.070
Conversion Receipts		47.331	47.489	77.131
Total		4625.266	5910.467	6315.219
Profit/(Loss) Before Tax		400.271	474.691	594.783
Provision for Taxation		166.720	137.587	171.161
Profit/(Loss) After Tax		233.551	337.104	423.622
Expenditures :
	Raw Material Consumed	3671.081	4673.171	4727.151
	Purchases made for re-sale	115.165	224.147	378.441
	Direst Expenses	293.607	328.487	211.033
	Employee Expenses	38.357	66.664	39.217
	Administrative & Selling Expenses	110.747	178.462	289.638
	Financial Expenses	109.368	142.518	53.579
	Depreciation & Amortization	76.773	89.092	85.907
	Preliminary Exp. Written Off	0.000	0.001	0.001
	Amalgamation Expenses Written Off.	0.022	0.067	0.037
	Increase (Decrease) In Closing Stock	(190.124)	(266.836)	(64.568)
Total Expenditure		4224.996	5435.773	5720.436

KEY RATIOS

PARTICULARS		31.03.2007 (9 months)	30.06.2006	30.06.2005
PAT / Total Income	(%)	5.05	5.70	6.71
Net Profit Margin (PBT/Sales)	(%)	8.76	8.12	9.54
Return on Total Assets (PBT/Total Assets}	(%)	8.65	8.03	9.42
Return on Investment (ROI) (PBT/Networth)		0.27	0.38	0.65
Debt Equity Ratio (Total Liability/Networth)		0.49	0.66	1.26
Current Ratio (Current Asset/Current Liability)		4.44	1.37	2.23

LOCAL AGENCY FURTHER INFORMATION

Trade References:-

· Shri Puranlal Agarwal

Director

9, Imambada Road, Nagpur – 440 018

· Shri Sanjaylal Agarwal

Director

9, Imambada Road, Nagpur – 440 018

· Shri Ajay Agarwal

Director

9, Imambada Road, Nagpur – 440 018

website DETAILS:-

Company Profile:

“SANVIJAY”, the name itself has over the years become synonymous with quality structural steel in Central India. Subject set up in 1971 by their pioneer Mr. Puranlal Agrawal has grown from a modest trading firm to a major multi-product steel player in India.

After having set up their first Rolling Mill in 1991, subject by virtue of sheer grit, hard-work and foresight has surged ahead in the steel circuit and now boasts of five rolling mills with a capacity of .26 million MT and the broadest product portfolio under one roof. It has earned its name due to its strict adherence to stringent quality norms, immaculate delivery schedule and unmatched customer relations.

The group is a leading caterer to the demands of Transmission Line Tower (TLT) giants, accounting to 90% of black steel required by Power Grid / Power link Projects Steel. Other reputed buyers of steel include Wind Mill manufacturers, Engineering and Construction sectors, and Communication Tower Manufacturers.

It is also reputed as the authorised conversion agent of SAIL for their structural requirement and has also been recently appointed the conversion agent of Jindal Steel and Power Limited It is already in agreement with TISCO for rolling their TMT brand known as TISCON .

The group had a turnover of Rs 2450 Millions in 2002-03, over Rs 6000 Millions in 04-05 and is likely to cross Rs 7500 Millions during 05-06. Because of the demand of their rolling mills and other rolling mills around Nagpur, a mini steel plant at Butobori, Nagpur with production capacity of .25 MT per annum is being set.

The group is a leading caterer to the demands of Transmission Line Tower (TLT) giants, accounting to 90% of black steel required by Power Grid / Power link Projects Steel. Other reputed buyers of steel include Wind Mill manufacturers, Engg. and Construction sectors, and Communication Tower Manufacturers.

It is is also reputed as the authorised conversion agent of SAIL for their structural requirement and has also been recently appointed the conversion agent of Jindal Steel and Power Ltd. It is already in agreement with TISCO for rolling their TMT brand known as TISCON .

Presently, they have production capacity around 26000 MT per month. The following 2 rolling mills are under installation :

· 12" Rolling Mill for rolling small and medium angles

· 32" Rolling Mill for rolling heavy and higher size angles

On installation of the 2 rolling mills, their total production capacity will reach 42000 MT per month. The units are registered with Bereau of Indian Standards for wide range of structurals i.e. (equal and unequal), channels, joist / beams, flats, rounds and TMT bar of various sizes. They are also approved vendor for Powergrid, NTPC and Indian Railways.

The group had a turnover of Rs 2450 millions in 2002-03, over Rs 6000 millions in 04-05 and is likely to cross Rs 7500 million during 05-06. Because of the demand of their rolling mills and other rolling mills around Nagpur, a mini steel plant at Butobori, Nagpur with production capacity of .25 MT per annum is being set. They also export to countries like Indonesia, Vietnam and Saudi Arabia with SAARC countries like Srilanka, Nepal and Bangladesh.

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. 46.96
UK Pound	1	Rs. 83.91
Euro	1	Rs. 66.36

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		76

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