MIRA INFORM REPORT

Report Date :

16.12.2011

IDENTIFICATION DETAILS

Name :	V K INDUSTRIAL CORPORATION LIMITED
Registered Office :	303/304 Loha Bhavan, 3^rd Floor, 93, P.D. Mello Road, Carnac Bunder, Mumbai - 400009, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	16.11.2004
Com. Reg. No.:	11-149538
Capital Investment / Paid-up Capital :	Rs.45.900 Millions
IEC No. :	0304068616
CIN No.: [Company Identification No.]	U27100MH2004PLC149538
PAN No.: [Permanent Account No.]	AABCV9515F
Legal Form :	A Closely Held Public Limited Company
Line of Business :	Trader, Importer and Stockiest of special quality steel plates
No. of Employees :	20 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 3900000
Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are fair. Financial position is satisfactory. Payments are reported as slow but correct. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION PARTED BY

Name :	Mr. Virendra Mehta
Designation :	Director
Contact No.:	91-9821022386
Date :	14.12.2011

LOCATIONS

Registered Office :	303/304 Loha Bhavan, 3^rd Floor, 93, P.D. Mello Road, Carnac Bunder, Mumbai - 400009, Maharashtra, India
Tel. No.:	91-22-66333330
Mobile No.:	91-9821022386 (Mr. Virendra Mehta) 91-9960954725 (Mr. Alex)
Fax No.:	91-22-23484728
E-Mail :	info@virenvkicl.com viren@virenvkicl.com accounts@virenvkicl.com
Website :	http://www.vkicl.com
Area :	600 sq. ft.
Location :	Owned
Branch :	Office No. 1, 1^st Floor, No.84 (old no. 39), Muthumari Street, Chennai - 600001
Tel No. :	91-44-25262263
Fax No. :	91-44-42168783
E-Mail :	juzer@vkchennai.com
Area :	200 sq. ft.
Location :	Owned

DIRECTORS

As on : 30.09.2011

Name :

Mr. Kakubhai Purshottamdas Mehta

Designation :

Chairman

Address:

Tirath, A/6 2^nd Floor, Opposite. S.V.P. Road, Lallubhai Park, Andheri West, Mumbai-400058, Maharashtra, India.

Date of Birth/Age :

10.04.1935

Qualification :

S.S.C.

Date of Appointment :

16.11.2004

Din No.:

01648156

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U27100MH2004PLC149538	V. K. INDUSTRIAL CORPORATION LIMITED	Managing director	02-09-05	02-09-05	-	Active	NO
2	U27109MH2007PTC170928	DMSON'S METAL PRIVATE LIMITED	Director	18-05-07	18-05-07	-	Active	NO

Name :

Mr. Virendra Kakubhai Mehta

Designation :

Whole Time Director

Address:

Tirath, A/6 2^nd Floor, Opposite. S.V.P. Road, Lallubhai Park, Andheri West, Mumbai-400058, Maharashtra, India.

Date of Birth/Age :

08.03.1968

Qualification :

H.S.C.

Date of Appointment :

01.10.2006

Din No.:

00326929

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U27100MH2004PLC149538	V. K. INDUSTRIAL CORPORATION LIMITED	Whole-time director	01-10-06	01-10-06	-	Active	NO
2	U27109MH2007PTC170928	DMSON'S METAL PRIVATE LIMITED	Director	06-08-07	06-08-07	-	Active	NO

Name :

Mr. Deepak Kakubhai Mehta

Designation :

Whole Time Director

Address:

Tirath, A/6 2^nd Floor, Opposite. S.V.P. Road, Lallubhai Park, Andheri West, Mumbai-400058, Maharashtra, India.

Date of Birth/Age :

16.11.1971

Qualification :

B.com.

Date of Appointment :

16.11.2004

Din No.:

00326874

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U27100MH2004PLC149538	V. K. INDUSTRIAL CORPORATION LIMITED	Whole-time director	02-09-05	02-09-05	-	Active	NO
2	U27109MH2007PTC170928	DMSON'S METAL PRIVATE LIMITED	Director	18-05-07	18-05-07	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Alex
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Mr. Kakubhai Purshottamdas Mehta	133000
Mr. Deepak Kakubhai Mehta	1734750
Mr. Virendra Kakubhai Mehta	1734750
Ms. Vasumati Kakubhai Mehta	2500
Ms. Urvi Deepak Mehta	1200
Ms. Darshana Virendra Mehta	1200
Ms. Parul Vipul Doshi	50
Ms. Charu Kirit Doshi	50
Mr. Kakubhai P Mehta (HUF)	732500
Binaca Traders and Services Private Limited (India)	42500
Kush Hindustan Entertainment Limited (India)	23750
Sundaram InfoTech (India)	82500
TSV Merchantile Private Limited (India)	37500
Viren Diamond Export Limited (India)	25000
Young and Crow Marketing (India) Private Limited, Mumbai, India	38750
Total	4590000

AS ON 30.09.2011

Equity share breakup
Category	Percentage of Holding
Bodies corporate	5.45
Directors or relatives of directors	94.55
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader, Importer and Stockiest of special quality steel plates
Products :	Ø Hot Rolled Steel Plates / B.Q Plates Ø Hot Rolled Mill Plates Ø Industrial Steel Sheets Ø High Tensile Steel Plates Ø High Tensile Steel Sheets Ø Low Alloy Steel Plates Ø Steel Plates Ø Industrial Steel Plates Ø Stainless Steel Plates Ø Handling Facilities
Imports :
Products :	Steel Plates
Countries :	China Singapore
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

GENERAL INFORMATION

Customers :

Larsen and Toubro Limited

Suppliers :

· Handroll Steel Trading Company

· Severstal Iron and Steel Works

No. of Employees :

20 (Approximately)

Bankers :

Ø Canara Bank, Prime Corporate Branch II, 2^nd Floor, Varma Chambers, Mumbai-400001, Maharashtra, India.

Ø IDBI Bank, Mumbai

Ø Kapol Co-Operative Bank, Mumbai

Ø HDFC Bank

Ø Bank of Baroda, Fort, Mumbai, India

Facilities :

Secured Loans	31.03.2010 (Rs. in Millions)	31.03.2009 (Rs. in Millions)
Vehicle Loan From Bank
CMFL Autoloan – Maruti Swift	0.000	0.034
Bank Overdraft
Canara Bank A/c No. 810432	249.709	103.766
IDBI Business Premium A/c	0.083	0.083
Total	249.792	103.883
Unsecured Loans	31.03.2010 (Rs. in Millions)	31.03.2009 (Rs. in Millions)
Loan from Directors and Shareholders
Loan from Directors	20.560	17.070
Loan from Shareholders	1.315	2.537
Total	21.875	19.607

Banking Relations :

----

Auditors :

Name :

Prashant Wakhariya and Company

Chartered Accountant

Address :

B-1, Saadichha Apartment, Ground Floor, Rokadia Lane, Borivali (W), Mumbai-400092, Maharashtra, India.

Tel. No.:

91-22-28922369

Mobile No.:

91-9324657162

Fax No. :

91-22-22937350

E-Mail :

pwco@hotmail.com

Sister Concern:

D M Sons Metals Private Limited

CAPITAL STRUCTURE

AS ON 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Share	Rs.10/- Each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4590000	Equity Share	Rs.10/- Each	Rs.45.900 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		45.900	45.900	45.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		931.986	717.302	708.864
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		977.886	763.202	754.764
LOAN FUNDS
1] Secured Loans		249.792	103.883	161.625
2] Unsecured Loans		21.875	19.607	49.749
TOTAL BORROWING		271.667	123.490	211.374
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1249.553	886.692	966.138
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.508	4.317	3.401
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.001	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	688.107	405.484	814.780
	Sundry Debtors	892.442	629.181	355.742
	Cash & Bank Balances	58.688	4.856	2.180
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	640.929	371.687	277.219
Total Current Assets		2280.166	1411.208	1449.921
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	872.061	469.413	444.171
	Other Current Liabilities	47.998	48.575	28.843
	Provisions	119.063	10.845	14.263
Total Current Liabilities		1039.122	528.833	487.277
Net Current Assets		1241.044	882.375	962.644
MISCELLANEOUS EXPENSES		0.000	0.000	0.093
TOTAL		1249.553	886.692	966.138

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	4836.384	4247.961	3901.068
		Other Income	73.800	27.143	84.929
		TOTAL (A)	4910.184	4275.104	3985.997
Less	EXPENSES
		Cost of Goods Sold	4474.979	4140.127	3460.661
		Administrative and Selling expenses	56.963	60.195	76.676
		TOTAL (B)	4531.942	4200.322	3537.337
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		378.242	74.782	448.660
Less	FINANCIAL EXPENSES (D)		53.888	61.977	45.129
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		324.354	12.805	403.531
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.280	1.062	0.877
	PROFIT BEFORE TAX (E-F) (G)		323.074	11.743	402.654
Less	TAX (H)		108.647	3.745	136.501
	PROFIT AFTER TAX (G-H) (I)		214.427	7.998	266.153
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		571.762	563.764	297.611
	BALANCE CARRIED TO THE B/S		786.189	571.762	563.764
	Earnings Per Share (Rs.)		47.00	1.74	57.99

Particulars	31.03.2011
Sales Turnover (Approximately)	7250.000

Expected Sales (2011-2012) : Rs. 7300.000 millions

The above information has been parted by Mr. Virendra Mehta.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.37	0.19	6.68
Net Profit Margin (PBT/Sales)	(%)	6.68	0.28	10.32
Return on Total Assets (PBT/Total Assets}	(%)	14.12	0.83	27.70
Return on Investment (ROI) (PBT/Networth)		0.33	0.02	0.53
Debt Equity Ratio (Total Liability/Networth)		1.34	0.85	0.92
Current Ratio (Current Asset/Current Liability)		2.19	2.67	2.97

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS :

(Rs. in Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Trade and other Creditors
Import Creditors	422.501	427.922	340.471
Local Creditors	417.702	26.368	24.968
OMS Creditors	0.000	0.000	0.028
Others	0.000	0.000	0.002
Trade Creditors – Chennai	0.105	0.105	59.740
Trade and Other Creditors - Bhilai	0.000	0.000	0.025
Creditors for expenses	28.789	13.847	16.842
Creditors for brokerage and commission	2.899	1.171	2.095
Creditors for fixed assets	0.065	0.000	0.000
Total	872.061	469.413	444.171

Check List by Info Agents	Available in Report (Yes / No)
1. Year of Establishment	Yes
2. Locality of the firm	Yes
3. Constructions of the firm	Yes
4. Premises details	Yes
5. Type of Business	Yes
6. Line of Business	Yes
7. Promoter’s background	-----------
8. No. of Employees	Yes
9. Name of person contacted	Yes
10. Designation of contact person	Yes
11. Turnover of firm for last two years	Yes
12. Profitability for last three years	------
13. Reasons for variation <> 20%	------
14. Estimation for coming financial year	Yes
15. Capital in the business	Yes
16. Details of sister concerns	Yes
17. Major suppliers	Yes
18. Major customers	Yes
19. Payments terms	Yes
20. Export / Import details	Yes
21. Market information	-------
22. Litigations that the firm / promoter involved	------
23. Banking Details	Yes
24. Banking facility details	Yes
25. Conduct of the banking account	------
26. Buyer visit details	------
27. Financials, if provided	No
28. Incorporation details, if applicable	------
29. Last accounts filed at ROC	------
30. Major Shareholders, if available	------

OPERATIONS :

The company’s performance has improved during the financial year. The turnover was higher from Rs.4275.100 Millions to Rs.4905.100 Millions. Net Profit is higher from Rs.7.997 Millions to Rs.214.427 Millions. The company’s focus continues to be on increasing volumes and turnover.

TRADE REFERENCES :

• Larsen and Turbo Limited

· Handroll Steel Trading Company

• Severstal Iron and Steel Works

FORM : 8

Bankers Charges Report as per Registry

Corporate identity number of the company	U27100MH2004PLC149538
Name of the company	V. K. INDUSTRIAL CORPORATION LIMITED
Address of the registered office or of the principal place of business in India of the company	303/304 Loha Bhavan, 3^rd Floor, 93, P.D. Mello Road, Carnac Bunder, Mumbai - 400009, Maharashtra, India
This form is for	Modification of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Others
Particular of charge holder	Canara Bank, Prime Corporate Branch II, Varma Chambers, 2nd Floor, Homji Street, Fort, Mumbai – 400001, Maharashtra, India
Nature of instrument creating charge	Simple Mortgage Deed (SMD) dated 02.11.2010
Date of instrument Creating the charge	02/11/2010
Amount secured by the charge	Rs. 2100.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest As per sanction letter issued by respective bank Terms of repayment As per sanction letter issued by respective bank Margin As per sanction letter issued by respective bank Extent and operation of the charge Credit facilities aggregating to Rs.2100.000 millions granted by Canara Bank Consortium consisting of ( CB Rs.1732.500 millions and BOB Rs.367.500 millions) further secured by way of Simple Mortgage on immovable Property viz. piece and parcel of land adm. about 3025 sq. mts. out of the land bearing Plot Nos. SW-3/1 to SW-3/7 in Sakri Industrial Area, Vill. Brahmanwel, Dhule, Maharashtra , des. in Sch. to SMD. Other Nil
Short particulars of the property charged (Including location of the property)	1st charge on all present and future stocks of RM / Steel products and Trading goods, SIP, SFG, FG, S and S etc. lying at Companies premises and godowns at Navi Mumbai and Chennai or elsewhere or in transit 1st charge on all present and future Book debts, outstanding money receivables, claims, bills and other movables due and owing to the Company during the course of its business. Simple mortgage on 1st pari passu charge basis on immovable Prop. viz. piece and parcel of land adm. about 3025 sq. mts. out of land bearing Plot Nos. SW-3/1 to SW-3/7 in Sakri Indl. Area, Vill. Brahmanwel
Date of instrument modifying the charge	06/02/2010
Particulars of the present modification	Now vide this modification, Credit facilities aggregating to Rs.2100.000 millions. granted by Canara Bank Consortium consisting of ( CB Rs.1732.500 millions and BOB Rs.367.500 millions) further secured by way of Simple Mortgage on immovable Property viz. piece and parcel of land adm. about 3025 sq. mts. out of the land bearing Plot Nos. SW-3/1 to SW-3/7 in Sakri Industrial Area, Vill. Brahmanwel, Dhule, Maharashtra , des. in Sch. to SMD.

FIXED ASSETS:

Ø Air Condition

Ø CCTV Camara System

Ø Computer

Ø Cutting Machine

Ø Cycle

Ø Electrical Equipment

Ø EPABX System – Telephone

Ø Fax Machine

Ø Furniture

Ø Mobile Phone

Ø Office Equipments

Ø Motor Car / Motor Cycle

Ø Television

Ø Xerox 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. 83.76
Euro	1	Rs. 70.46

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		54

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.