MIRA INFORM REPORT

Report Date :

17.12.2011

IDENTIFICATION DETAILS

Name :	AMAR TUBES PRIVATE LIMITED
Registered Office :	515, Nav Vyapar Bhavan, 49, P. D’mello Road, Masjid Bunder (East), Mumbai – 400 009, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	16.12.1991
Com. Reg. No.:	11-64470
Capital Investment / Paid-up Capital :	Rs.137.500 millions
CIN No.: [Company Identification No.]	U74999MH1991PTC064470
TAN No.: [Tax Deduction & Collection Account No.]	MUMA09819F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of ERW Mild Steel Pipes and Tubes, Square and Rectangular Pipes.
No. of Employees :	170 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 810000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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. Hemant
Designation :	Finance Manager
Contact No.:	91-8291439892
Date :	16.12.2011

LOCATIONS

Registered Office :	515, Nav Vyapar Bhavan, 49, P. D’mello Road, Masjid Bunder (East), Mumbai – 400 009, Maharashtra, India
Tel. No.:	91-22-66545401 / 02
Mobile No.:	91-8291439892 (Mr. Hemant)
Fax No.:	91-22-66545403
E-Mail :	amartubes@gmail.com
Website :	www.amartubes.com
Location :	Owned
Factory :	Village – Dahivali, Khopoli-Pen Road, Isamba Fata, Taluka Khalapur, Khopoli, Dist. Raigadh – 402 106, Maharashtra, India
TeleFax No.:	952192-277308

DIRECTORS

As on 30.09.2009

Name :	Mr. Amarchand Khazanaram Sharma
Designation :	Director
Address :	4, Jyoti Building, Sector No. 8, Plot No. 154, Vashi, Navi Mumbai – 400 705, Maharashtra, India
Date of Birth/Age :	04.04.1949
Date of Appointment :	16.12.1991
DIN No.:	02214472
Name :	Mrs. Asha Amarchand Sharma
Designation :	Director
Address :	4, Jyoti Building, Sector No. 8, Plot No. 154, Vashi, Navi Mumbai – 400 705, Maharashtra, India
Date of Birth/Age :	08.07.1959
Date of Appointment :	16.12.1991
Name :	Mr. Narendra Ranchoddas Ravani
Designation :	Additional Director
DIN No. :	01733968

Other Directorship

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	U27100MH2001PTC133923	Alpha Steel Tubes Private Limited	Director	20-02-06	20-02-06	26-06-09	Active	YES
2	U74140KA2006PTC040648	Knowledge Integration Services India Private Limited	Director	05-11-07	05-11-07	07-12-08	Active	NO
3	U74140MH2006PTC163088	Manaca'consultants Private Limited	Director	20-12-07	20-12-07	15-01-09	Active	NO
4	U74200MH2008PTC178429	Next Resource Engineers And Consultants Private Limited	Director	01-02-08	01-02-08	-	Active	YES
5	U74999MH1991PTC064470	Amar Tubes Private Limited	Additional director	24-06-10	24-06-10	-	Active	YES

KEY EXECUTIVES

Name :	Mr. Hemant
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2009

Names of Shareholders	No. of Shares
Amarchand K Sharma	452030
Asha A Sharma	75110
Neelam A Sharma	4050
Rajani B Sharma	2750
Anipa A Sharma	78530
Aakanksha A Sharma	48070
Ritzy Holding Limited	689460
Terry Towel Industries Private Limited	3000
Parekh Estate and Properties Private Limited	2000
Yamroosh Investments Private Limietd, India	3000
Seatrans Dan Shipping Private Limited	3000
RFL International Limited	2000
Paramatma Tours and Travels Limited	3000
Kosha Cubidor Containers Limited	1000
Sharmada Securities Private Limited	3000
South East Asia Packaging Private Limited	3000
Kings Merchants Private Limited	2000
Total	1375000

As on 30.09.2009

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	66.52
Directors or relatives of directors	33.48
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of ERW Mild Steel Pipes and Tubes, Square and Rectangular Pipes.
Terms :
Selling :	L/C, Cash and Credit (30 days)
Purchasing :	L/C, Cash and Credit (30 days)

GENERAL INFORMATION

Customers :

Industries

No. of Employees :

170 (Approximately)

Bankers :

· UCO Bank

MID Corporate Churchgate Reclamation Branch, Mafatlal Centre, 1^st Floor, Nariman Point, Mumbai – 400 021, Maharashtra, India

· The Shamrao Vithal Co-Op. Bank Limited

Mandvi, Mumbai – 400 023, Maharashtra, India

Facilities :

Secured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
UCO Bank Term Loan A/C II (Plant and Machinery Enhancement)		12.413
UCO Bank Term Loan A/C III (For Office Premises)		2.050
(Both the Term Loans are secured by Mortgage of the Land, the factory premises and other civil works standing thereon and to be constructed, imbedded plant and machinery and mortgage hypothecation of movable plant and machinery, office premises and also by second charge on the current assets of the Company.)	210.485
UCO Bank Cash Credit (Against hypothecation of stocks and book debts and second charge on all the fixed assets of the Company.)		215.352
Total	210.485	229.815

Note : All the facilities from UCO Bank are also collaterally secured by way of mortgage of residential flat of one of the Directors Mr. A K Sharma and personal guarantee of Mr. A K Sharma and Mrs. Asha Sharma.

Unsecured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
From Shareholders
Akanksha A Sharma		0.045
Anipa A Sharma		0.160
Asha A Sharma	17.987	1.008
From Corporate Bodies
Ritzy Holdings Limited		0.531
Total	17.987	1.744

Banking Relations :	--
Auditors :
Name :	Jagdish Bhagat and Company Chartered Accountants
Address :	82/86, Bazargate Street, 207-Narayan Bhavan, Fort, Mumbai – 400 001, Maharashtra, India
Holding Company :	Ritzy Holdings Limited CIN No.: U65993MH2002PLC138178

CAPITAL STRUCTURE

As on 30.09.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.100/- Each	Rs.150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1375000	Equity Shares	Rs.100/- Each	Rs.137.500 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		137.500	137.500	135.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		65.202	51.511	39.485
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		202.702	189.011	174.485
LOAN FUNDS
1] Secured Loans		210.485	229.815	210.494
2] Unsecured Loans		17.987	1.744	2.925
TOTAL BORROWING		228.472	231.559	213.419
DEFERRED TAX LIABILITIES		15.071	16.752	14.728
TOTAL		446.245	437.322	402.632
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		111.939	114.825	116.833
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.050	0.050	0.050
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	265.772	257.605	178.709
	Sundry Debtors	148.501	117.719	101.402
	Cash & Bank Balances	10.247	11.120	26.241
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	18.351	27.782	41.180
Total Current Assets		442.871	414.226	347.532
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	108.615	86.552	54.946
	Other Current Liabilities		0.487	0.000
	Provisions	0.000	4.740	7.501
Total Current Liabilities		108.615	91.779	62.447
Net Current Assets		334.256	322.447	285.085
MISCELLANEOUS EXPENSES		0.000	0.000	0.664
TOTAL		446.245	437.322	402.632

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Sales	650.628	571.066
		Gross Sales and Direct Income	10.329	7.538
		Other Income	0.008	0.008
		Closing Stock of Finished Goods	205.812	195.869
		TOTAL (A)	866.777	774.481
Less	EXPENSES
		Opening Stock of Finished Goods	802.816	93.820
		Cost of Sales		539.020
		Manufacturing Expenses		48.279
		Operating and Administrative Expenses		8.568
		Selling Expenses		23.293
		Preliminary and Pre-operative Expenses Written Off		0.665
		TOTAL (B)	802.816	713.645
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		63.961	60.836
Less	FINANCIAL EXPENSES (D)		44.878	42.700
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		19.083	18.136
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.572	4.696
	PROFIT BEFORE TAX (E-F) (G)		14.511	13.440
Less	TAX (H)		0.820	4.387
	PROFIT AFTER TAX (G-H) (I)		13.691	9.053
Less	Prior Year Expenses Adjustment		0.000	4.636
Add	Prior Year Tax Adjustment		0.000	0.109
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		44.011	39.485
	BALANCE CARRIED TO THE B/S		57.702	44.011
	Earnings Per Share (Rs.)		9.96	6.58

Particulars	31.03.2011
Sales Turnover (Approximately)	830.000

Expected Sales (2011-2012) : Above Rs.1000.000 millions

The above information has been parted by Mr. Hemant

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.58	1.17	NA
Net Profit Margin (PBT/Sales)	(%)	2.23	2.35	NA
Return on Total Assets (PBT/Total Assets}	(%)	2.62	2.54	NA
Return on Investment (ROI) (PBT/Networth)		0.07	0.07	NA
Debt Equity Ratio (Total Liability/Networth)		1.66	1.71	1.58
Current Ratio (Current Asset/Current Liability)		4.08	4.51	5.57

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Particulars	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions	As on 31.03.2008 Rs. in millions
Sundry Creditors for Goods	NA	82.598	53.928
Sundry Creditors for Expenses	NA	2.155	0.921
Sundry Creditors for Other Finance	NA	1.386	0.065
Sundry Creditors for Capital Expenditure	NA	0.413	0.032
Total	NA	86.552	54.946

Sr. No.	Check List by Info Agents
1.	Year of Establishment	YES
2.	Locality of the firm	YES
3.	Constitutions 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 three years	YES
12.	Profitability for last three years	NO
13.	Reasons for variations <> 20%	--
14.	Estimation for coming financial year	YES
15.	Capital in the business	NO
16.	Details of sister concerns	YES
17.	Major Suppliers	NO
18.	Major Customers	NO
19.	Payment terms	YES
20.	Export / Import details (is applicable)	--
21.	Market information	--
22.	Litigation that the firm / promoter involved in	--
23.	Banking Details	YES
24.	Banking facility details	--
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, is available	--

FORM 8

This form is for	Modification of charge
Charge identification number of the modified	90187038
Corporate identity number of the company	U74999MH1991PTC064470
Name of the company	AMAR TUBES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	515, Nav Vyapar Bhavan, 49 P D’mello Road, Masjid Bunder (East), Mumbai – 400 009, Maharashtra, India
Type of charge	· Immovable property · Book Debts · Movable Property
Particular of charge holder	UCO Bank MID Corporate Churchgate Reclamation Branch, Mafatlal Centre, 1^st Floor, Nariman Point, Mumbai – 400 021, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	1. Supplemental Deed of Hypothecation to secure Fund Based and Non Fund Based Limits dated 13.04.2010 and 2. Supplemental Deed of Mortgage Dated 13.04.2010 (Both the above constitute a single charge from Rs.371.300 millions)
Date of instrument Creating the charge	13.04.2010
Amount secured by the charge	Rs.371.300 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash credit Hypo-BPLR subject to 13.25% p.a. Minimum (floating), Penal interest 2% over applicable rate of interest. Terms of Repayment On Demand Margin Cash credit Hypothecation Facility – 25% on Stock and 40% on Book Debts Letter of Credit – 15% Cash / FDR Extent and Operation of the charge 1^st Hypothecation of the Current Assets including Book Debts and Stocks at village Dahivali, Khopoli Pen Road, Isamba Phara, Taluka Khalapur, Dist. Raigad, Maharashtra and Plot No. D-41 and 41, Opp. Fire Brigade Station, Cotton Green (East), Mumbai 400 033 both present and future AND Regd. Mortgage of Premises of the Borrower at Survey No. 33 admeasuring 1.59.2 Hectares, Village Dahivali, Taluka Khalapur, District Raigad, Maharashtra and Office Premises at Sr. Nos. 515, 516, 534 and 535 admn. 2205 Sq. ft.
Short particulars of the property charged	I. 1^st Hypothecation of the Current Assets including Book Debts and Stocks at village Dahivali, Khopoli Pen Road, Isamba Phara, Taluka Khalapur, Dist. Raigad, Maharashtra and Plot No. D-41 and 41 II. Opp. Fire Brigade Station, Cotton Green (East), Mumbai 400 033 III. Registered Mortgage of Premises of the Borrower at Survey No. 33 admeasuring 1.59.2 Hectares, Village Dahivali, Taluka Khalapur, District Raigad, Maharashtra AND IV. Office Premises at Sr. Nos. 515, 516, 534 and 535 admn. 2205 Sq. ft. on 5^th Floor at New Vyapar Bhavan Co op Hsg. Soc. Ltd, Princess Dock, Div. TPS-1, Final Plot No. 49, Demello Road, Curnac Bunder, Mumbai
Particulars of the present modification	By the Present Modification Dated 13.04.2010, the Bank has enhanced the Cash Credit Limit from Rs.210.000 millions to 300.000 millions, keeping Term Loan II and Term Loan III at rundown balance of Rs.5.000 millions and Rs.1.300 millions (i.e. Keeping the Term Loan at rundown Balance Rs.6.300 millions) and Letter of Credit facility at Rs.65.000 millions and canceling the Bank Guarantee Limit of Rs.15.000 millions and extension of Mortgage of Immovable properties of the Revised Total Limit of Rs.371.300 millions.

FIXED ASSETS

· Land

· Factory Building

· Office Premises

· Plant and Machineries

· Computers

· Electrical Installations

· Furniture and Fixtures

· Motor Vehicles

· Office Equipments

· Fax Machine

· Mobile Phone

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.52.81
UK Pound	1	Rs.82.00
Euro	1	Rs.68.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--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		34

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.