MIRA INFORM REPORT

Report Date :

13.04.2011

IDENTIFICATION DETAILS

Name :	VINAR ISPAT LIMITED
Registered Office :	201 Steel Chamber Wardhaman Nagar, Nagpur 440008, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	22.03.1982
Com. Reg. No.:	026756
CIN No.: [Company Identification No.]	U28910MH1982PLC026756
TAN No.: [Tax Deduction & Collection Account No.]	NGPV02785G / NGPV02776E
PAN No.: [Permanent Account No.]	AAACV6647F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Stainless Steel Angle

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 126000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The financials of the company are missing from the Government Departments since 2006. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Nitesh Trivedi
Designation :	Accountant
Contact No.:	91-9823022244
Date :	13.04.2011

LOCATIONS

Registered Office :	201 Steel Chamber Wardhaman Nagar, Nagpur 440008, Maharashtra, India
Tel. No.:	91-712-2680033
Mobile No.:	91-9823022244 (Mr. Nitesh Trivedi)
Fax No.:	91-712-2682881
E-Mail :	Vinar_ngp@sancharnet.in
Area :	1500 sq.ft
Location :	Owned
Corporate Office :	101/102, Gupta Bhawan, Ahmedabad Street, MAsjid Bunder (East), Mumbai 400009, Maharashtra, India
Factory :	B 30/31, MIDC Ghugus Bhawan, Ahmedabad Street, MAsjid Bunder (East), Mumbai 400009, Maharashtra, India

DIRECTORS

AS ON 30.09.2009

Name :	Mr. Vishnukumar R Oza
Designation :	Director
Date of Birth/Age :	27.05.1950
Date of Appointment :	27.03.1987
Name :	Mrs. Chanchaldevi V Oza
Designation :	Director
Date of Birth/Age :	07.08.1954
Date of Appointment :	17.03.1993
Name :	Mr. Chetan V Oza
Designation :	Director
Date of Birth/Age :	19.10.1975
Date of Appointment :	28.02.1995

KEY EXECUTIVES

Name :	Mr. Nitesh Trivedi
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2009

Names of Shareholders	No. of Shares
Vishnukumar R Oza	957330
Chanchaldevi V Oza	597735
Chetan V Oza	1058760
Rameshkumar Oza	1710
Durgabai Oza	720
Saroj Oza	585
Vijay Oza	1125
Seema Oza	804622
Vishnukumar R Oza HUF	506250
Jivraj Oza	1125
Sushna Oza	901350
Total	4831312

AS ON 30.09.2009

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Stainless Steel Angle
Agencies Held :	RCL Infraprojects Limited
Terms :
Selling :	Cash, Credit (30-60-90 Days)
Purchasing :	Cash, Credit (30-60-90 Days)

GENERAL INFORMATION

Customers :

• End Users
• OEM’s

No. of Employees :

300 Approximately

Bankers :

Axis Bank, M G House, Civil Lines, Nagpur 440001, Maharashtra, India

Facilities :

Cash Credit Rs. 15.000 millions

SECURED LOAN	31.03.2006 Rs. In Millions	31.03.2005 Rs. In Millions
M S F C Balance under OTS	22.399	33.358
S B I Balance under OTS	6.500	24.800
Total	28.899	58.158
UNSECURED LOAN	31.03.2006 Rs. In Millions	31.03.2005 Rs. In Millions
Form Directors and Share Holders
Durga R Oza	0.025	0.025
Seema Oza	0.576	0.000
Shushma V Oza	0.567	0.000
Chanchaladevi V Oza	0.228	0.228
	0	0
From Others	0	0
Jejani Udhyog, Nagpur	0.137	0.136
Satyanarayan Agrawal	0.000	0.016
Neelam Agarwal	0.000	0.014
Amber Associates, Nagpur	0.000	0.007
Malar Finance Service Private Limited	0.010	0.394
Total	1.543	0.820

Banking Relations :	--
Auditors :
Name :	R M Shah and Company Chartered Accountant
Address :	Mahalaxmi Chambers, 21 Central Avenue, Darodkar Chowk, Nagpur 440002, Maharashtra, India
Tel. No.:	91-712-2769542
Fax No.:	91-712-2767045
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

AS ON 30.09.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs. 10 each	Rs.50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4831312	Equity Shares	Rs. 10 each	Rs.48.313 millions

AS ON 31.03.2006

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs. 10 each	Rs.15.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1073625	Equity Shares	Rs. 10 each	Rs.10.736 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		10.736	10.736
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		75.556	75.556
4] (Accumulated Losses)		(54.743)	(59.006)
NETWORTH		31.549	27.284
LOAN FUNDS
1] Secured Loans		28.899	58.158
2] Unsecured Loans		1.543	0.820
TOTAL BORROWING		30.442	58.978
DEFERRED TAX LIABILITIES		5.971	4.094
SUBSIDIES		1.101	1.151
TOTAL		69.063	91.507
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		53.134	36.442
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		6.061	29.032
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9.297	19.645
	Sundry Debtors	14.493	17.861
	Cash & Bank Balances	1.679	1.905
	Other Current Assets	0.000	0.000
	Loans & Advances	5.334	2.893
Total Current Assets		30.803	42.304
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	17.842	12.188
	Other Current Liabilities	0.000	0.000
	Provisions	4.339	5.951
Total Current Liabilities		22.181	18.139
Net Current Assets		8.622	24.165
MISCELLANEOUS EXPENSES		1.246	1.868
TOTAL		69.063	91.507

PROFIT & LOSS ACCOUNT

Particulars	31.03.2011	31.03.2010	31.03.2009
Sales Turnover (Approximately)	320.000	360.000	250.000

Expected Sales (2011-2012) : Rs.400.000 millions

	PARTICULARS		31.03.2006	31.03.2005
	SALES
		Sales	147.443	107.867
		Other Income	0.231	0.189
		TOTAL (A)	147.674	108.056
Less	EXPENSES
		Cost of Materials	15.154	2.012
		Material Consumed	30.045	35.577
		Manufacturing Expenses	17.140	10.919
		Power and Fuel	25.196	18.307
		Store Consumption	9.451	9.307
		Personal Cost	4.464	2.228
		Financial Obligations	1.300	7.650
		Directors Remuneration	1.440	0.720
		Increase/(Decrease) in Finished Goods	(3.233)	(15.154)
		Selling and Distribution Expenses	0.370	2.550
		Statutory Obligation	7.116	5.680
		Preliminary Expenses	0.623	0.623
		Administrative Expenses	3.094	2.495
		TOTAL (B)	112.160	82.914
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		35.514	25.142
Less	FINANCIAL EXPENSES (D)		NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		35.514	25.142
ADD	Addback Interest under OTS MSFC SBI		0.000 0.000	13.279 4.358
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.949	5.600
	PROFIT BEFORE TAX (E-F) (G)		28.565	37.179
Less	TAX (H)		24.302	(0.946)
	PROFIT AFTER TAX (G-H) (I)		4.263	38.125

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005
PAT / Total Income	(%)	19.34	34.40
Net Profit Margin (PBT/Sales)	(%)	2.89	35.34
Return on Total Assets (PBT/Total Assets}	(%)	34.03	47.21
Return on Investment (ROI) (PBT/Networth)		0.90	1.36
Debt Equity Ratio (Total Liability/Networth)		1.89	3.01
Current Ratio (Current Asset/Current Liability)		1.38	2.33

LOCAL AGENCY FURTHER INFORMATION

FIXED ASSETS:

• Land
• Building
• Nagpur Office
• Plant and Machinery
• Furniture and Fixture
• Vehicles
• Office Equipments
• Laboratory Equipments

TRADE REFERENCE:

• Magnum Opus International
• Techstar Engineers Private Limited, Kolkata

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.44.20
UK Pound	1	Rs.72.26
Euro	1	Rs.63.90

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	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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.