MIRA INFORM REPORT

Report Date :

16.12.2011

IDENTIFICATION DETAILS

Name :	A. NAVINCHANDRA STEELS LIMITED
Registered Office :	201, Hindustan Kohinoor Complex, LBS Marg, Vikhroli (West), Mumbai-400083, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	30.06.2000
Com. Reg. No.:	11-127487
Capital Investment / Paid-up Capital :	Rs.6.470 Millions
CIN No.: [Company Identification No.]	U51420MH2000PLC127487
TAN No.: [Tax Deduction & Collection Account No.]	MUMA14294A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Dealers of Generators and Invertors.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 52000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office/ Factory :	201, Hindustan Kohinoor Complex, LBS Marg, Vikhroli (West), Mumbai-400083, Maharashtra, India
Tel. No.:	91-22-25791463/25786203
Fax No.:	Not Available
E-Mail :	wizardroc@rediffmai.com

DIRECTORS

As on 30.09.2011

Name :

Mr. Alpesh Navinchandra Gosalia

Designation :

Director

Address :

G 202, Kukreja Palace, Vallabh Baug, X Lane, Garodia Nagar, Ghatkoper (East), Mumbai-400077, Maharashtra, India

Date of Birth/Age :

15.08.1968

Date of Appointment :

30.06.2000

Din No.:

01041702

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U27100MH1995PLC094463	AKAI STEELS LIMITED	Director	14-11-95	14-11-95	Active	NO
2	U51420MH2000PLC127487	A.NAVINCHANDRA STEELS LIMITED	Director	30-06-00	30-06-00	Active	NO
3	U45300MH2011PLC218426	A.NAVINCHANDRA INFRAREALTY LIMITED	Director	07-06-11	07-06-11	Active	NO

Name :

Mr. Bhavin Rajesh Gosalia

Designation :

Director

Address :

203, Shankheshwar Tower, Ghatkoper (East), Mumbai-400077, Maharashtra, India

Date of Birth/Age :

08.03.1983

Date of Appointment :

23.09.2004

Din No.:

01055634

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U51420MH2000PLC127487	A.NAVINCHANDRA STEELS LIMITED	Director	23-09-04	23-09-04	Active	NO
2	U27100MH1995PLC094463	AKAI STEELS LIMITED	Director	17-03-11	17-03-11	Active	NO

Name :

Mrs. Rita Alpesh Gosalia

Designation :

Director

Address :

R No. 202, Kukreja Palace, Vallabh Baug, X Lane, Garodia Nagar, Ghatkoper (East), Mumbai-400077, Maharashtra, India

Date of Birth/Age :

27.12.1967

Date of Appointment :

10.03.2007

Din No.:

02397477

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U51420MH2000PLC127487	A.NAVINCHANDRA STEELS LIMITED	Director	10-03-07	10-03-07	Active	NO
2	U27100MH1995PLC094463	AKAI STEELS LIMITED	Director	17-03-11	17-03-11	Active	NO

Name :

Mr. Tejas Bharat Gosalia

Designation :

Director

Address :

A/303, Shankheshwar Tower, Sudha Park, Ghatkoper (East), Mumbai-400077, Maharashtra, India

Date of Birth/Age :

27.09.1976

Date of Appointment :

15.03.2011

Din No.:

01055668

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U27100MH1995PLC094463	AKAI STEELS LIMITED	Director	01-03-98	01-03-98	Active	NO
2	U51420MH2000PLC127487	A.NAVINCHANDRA STEELS LIMITED	Director	15-03-11	15-03-11	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Alpesh Navinchandra Gosalia	1275000
Navinchandra Chhotalal Gosalia	156000
Sudhaben Navinchandra Gosalia	220000
Rita Alpesh Gosalia	94750
Tejas Bharat Gosalia	50000
Rajesh Chhotalal Gosalia	50750
Deval Gosalia	30000
Mahesh L Heliya	200
Bhavin Rajesh Gosalia	50750
Ramesh Chandra Madhavi	9400
Kalpesh M Jani	16000
Shyam Alcohol and Chemical Limited, India	20000
Lunkad Textile Private Limited, India	19000
Satoshima Lease Finance and Inv (India) Limited, India	20000
Muljibhai D Patel	9400
Bharat Gosalia	100000
Bharati Gosalia	61000
Sejal Gosalia	50000
Leena Gosalia	50750
Hetal Gosalia	50750
Amit Gosalia	25000
Piyush Sheth	31250
Deepali Shah	75000
Bipinchandra Gosalia	17500
Rajul Gosalia	17500
Total	2500000

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	2.36
Directors or relatives of directors	97.64
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Dealers of Generators and Invertors.

GENERAL INFORMATION

Bankers :

Abhyudaya Co-operative Bank Limited

Facilities :

Secured Loan	As on 31.03.2010 [Rs. in Millions]	As on 31.03.2009 [Rs. in Millions]
Bank Overdraft from Abyudaya Bank [Secured against fixed deposits with Abhyudaya Co-operative Bank Limited, Book Debts and Stock in Trade]	28.738	38.561
Term Loan Abhyudaya Bank [Secured against fixed deposits with Abhyudaya Co-operative Bank Limited, Personal Securities of Directors]	46.104	31.157
Vehicles Loan with Abhyudaya Co-operative Bank Limited	0.418	0.555
Vehicle Loan with HDFC Bank Limited	5.880	0.000
Total	81.140	70.273
Unsecured Loan
Unsecured, considered goods	17.769	5.851
Total	17.769	5.851

Banking Relations :	--
Auditors :
Name :	Avni Dedhia and Company Chartered Accountants
Address :	B 17, Mahamaya Co-operative Housing Society, Tambe Nagar, S N Road, Mulund (West), Mumbai-400080, Maharashtra, India
Pan No.:	AECPD1896H

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
13770000	Equity Shares	Rs.10/- each	Rs.137.700 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs.25.000 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.10/- each	Rs.7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
647000	Equity Shares	Rs.10/- each	Rs.6.470 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		6.470	6.470	6.470
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6.727	5.235	3.800
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		13.197	11.705	10.270
LOAN FUNDS
1] Secured Loans		81.140	70.273	40.683
2] Unsecured Loans		17.769	5.851	14.549
TOTAL BORROWING		98.909	76.124	55.232
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		112.106	87.829	65.502
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		23.446	3.331	3.827
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.700	0.700	0.700
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	121.634	117.238	66.605
	Cash & Bank Balances	19.592	14.363	17.388
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.947	2.345	1.341
Total Current Assets		143.173	133.946	85.334
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	53.913	48.701	23.345
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	1.300	1.455	1.030
Total Current Liabilities		55.213	50.156	24.375
Net Current Assets		87.960	83.790	60.959
MISCELLANEOUS EXPENSES		0.000	0.008	0.016
TOTAL		112.106	87.829	65.502

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	685.604	567.545	552.316
		Other Income	4.491	3.777	2.812
		TOTAL (A)	690.095	571.322	555.128
Less	EXPENSES
		Cost of Sales	671.184	556.343	539.844
		Administrative, Operative and Selling Expenses	4.123	3.424	2.765
		Preliminary Expenses Written Off	0.008	0.008	0.008
		TOTAL (B)	675.315	559.775	542.617
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		14.780	11.547	12.511
Less	FINANCIAL EXPENSES (D)		11.075	8.985	10.115
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.705	2.562	2.396
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.300	0.530	0.593
	PROFIT BEFORE TAX (E-F) (G)		2.405	2.032	1.803
Less	TAX (H)		0.914	0.597	0.550
	PROFIT AFTER TAX (G-H) (I)		1.491	1.435	1.253
	Earnings Per Share (Rs.)		2.30	2.22	1.94

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.22	0.25	0.23
Net Profit Margin (PBT/Sales)	(%)	0.35	0.36	0.33
Return on Total Assets (PBT/Total Assets}	(%)	1.44	1.48	2.02
Return on Investment (ROI) (PBT/Networth)		0.18	0.17	0.18
Debt Equity Ratio (Total Liability/Networth)		11.68	10.79	7.75
Current Ratio (Current Asset/Current Liability)		2.59	2.67	3.50

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF OPERATIONS:

The Company has posted record results during the year with total sales revenues and other income of Rs. 690.096 Millions, up from Rs. 571.322 Millions in the previous year recording a total growth of 20.78%, than that of the earlier year.

Profit before tax is higher by Rs.2.405 Millions from Rs. 2.032 Millions during the previous year recording an annual growth of 18.30%. Similarly, Profit after tax is higher at Rs.1.491 Millions than during the previous year figure of Rs. 1.435 Millions.

FIXED ASSETS:

· Office Equipments

· Motor Car

· Cycle

· Furniture and Fixtures

· Computer

· Typewriter

· Fax Machine

· Telephone Board

· Air Conditioner

· Refrigerator

· Washing Machine

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.54.23
UK Pound	1	Rs.83.77
Euro	1	Rs.70.46

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--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	NO
--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	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.