MIRA INFORM REPORT

Report Date :

12.01.2011

IDENTIFICATION DETAILS

Name :	MEHTA TUBES LIMITED
Formerly Known As:	MEHTA TUBES PRIVATE LIMITED
Registered Office :	Char Rasta, Nana Pondha, Taluka : Dharmpur, District Valsad – 396 126, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	03.06.1988
Com. Reg. No.:	04-10794
CIN No.: [Company Identification No.]	U27109GJ1988PTC010794
PAN No.: [Permanent Account No.]	AACCM9377R
Legal Form :	A closely held private limited liability company.
Line of Business :	Manufacturer of Copper Brass and Tubes

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 767000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. 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.

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. Kumar and Mr. Devendra
Designation :	Accounts Departments
Date :	10.11.2010

LOCATIONS

Registered Office/Factory :	Char Rasta, Nana Pondha, Taluka : Dharmpur, District Valsad – 396 126, Gujarat, India
E-Mail :	sales@mehta-group.com admin@mehta-group.com mukesh@mehta-group.com
Website :	http://www.mehtatubes.com
Location :	Owned
Head Office :	9^thPlaza, Panchshell, 18-20 Huges Road, Mumbai-400 007, Maharashtra, India
Tel. No.:	91-22-43404040
Fax No.:	91-22-43404050
E-Mail :	info@mehta-group.com, mehtatubes@vsnl.com, mukesh@mehta-group.com
Website :	http://www.mehtatubes.com

DIRECTORS

As on 30.09.2010

Name :	Mr. Mangilal Vacharaj Mehta
Designation :	Director
Address :	107-B, Shripal Nagar, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	14.07.1950
Date of Appointment :	03.06.1988
Name :	Mr. Rikhabchand Vachraj Mehta
Designation :	Director
Address :	107-B, Shripal Nagar, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	12.05.1964
Date of Appointment :	03.06.1988
Name :	Mr. Mukesh Mangilal Mehta
Designation :	Director
Address :	74, Subhadra Mansion, walkeshwar Road, Mumbai- 400006, Maharashtra, India.
Date of Appointment :	28.12.2005
Name :	Mr. Sanjay Ramniklal Shah
Designation :	Director
Address :	4C, Ridge Apartment, Rodge Road, Malabar Hill, Mumbai- 400006, Maharashtra, India.
Date of Appointment :	28.12.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Mangilal V. Mehta	13979
Rikabchand V. Mehta	17873
Mukesh M. Mehta	22000
Ganpat V. Mehta	7929
Mangilal V. Mehta HUF	1000
Rikabchand V. Mehta HUF	400
Kavita M. Mehta	475
Neeru M. Mehta	445
Jayaben M. Mehta	1350
Mahesh M. Mehta	626
Anita Mehta	925
Kusumiben V Mehta	756
Urmila R. Mehta	2750
Piyush S. Vyas	1960
Sanjay R. Shah	11150
Vijay B Morakhia	600
Ramniklal N. Shah	918
Dilip S. Shah	1668
Shailesh K. Shah	1200
Jayesh B. Morakhia	18800
Vimlaben K. Shah	1950
Kamlaben R. Shah	420
AMI Impex Company Limited, Japan	33973
Total	143147

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	23.73
Directors or relatives of directors	76.27
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Copper Brass and Tubes
Products :	· Copper Tubes · Brass Tubes · Cupro Nickel Tubes · Copper Alloy Tubes · Copper and Copper Alloy Fin Tubes · Copper Earthing System · Lightning Protection System · Zonal Lighting Protection System · Copper Cable Terminal and Accessories · Stainless Steel Products
Exports :
Products :	Copper Brass and Tubes
Countries :	· UK · Australia
Imports :
Products :	Raw Material
Countries :	· Dubai · Australia
Terms :
Selling :	L/C, Cash, Credit
Purchasing :	Cash, Credit

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Redrawn Copper and Copper Alloys Pipes, Rods	M T DN	1680.00	1033808.28

GENERAL INFORMATION

Suppliers :

· RCS Gandhi and Company

· PK Engineering Works

· Orchid Electricals

· Aroma High-tech Limited

· Parth Equipments

· Balaji Tooling

Customers :

· End Users

· Lucky Hardware Stores

· Loyds Steels

No. of Employees :

170 (Office- 20, Factory- 150) (Approximately)

Bankers :

• Citi Bank- NA, Trent House, 2^nd Floor, Plot No.C 60, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India
• ICICI Bank Limited

Facilities :

Secured Loans :	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
Working Capital Loan Citi Bank against hypothecation of inventories, Plant and Machinery and Book Debts and Equitable Mortgage of Land and Building situated at Nana Ponda, District Bulsar. The loan is further secured by guarantee of the Directors of the company.	13.800	7.778
Term Loan from ICICI Bank Limited against hypothecation of wind mill the loan is further secured by the guarantee of the Directors of the company.	30.000	40.000
Total	43.800	47.778

Unsecured Loans :	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
Deposites / Loans From
Companies Financials Others	102.207	44.219
Total	102.207	44.219

Banking Relations :	-
Auditors :
Name :	Mehta Lodha and Company Chartered Accountants
Address :	105 Sakar -1, First Floor, Opposite Gandhigram Railway Station, Ashram Road, Ahmedabad – 380 009, Gujarat, India
Tel. No.:	91-79-26586683/85
Fax No.:	91-79-26586684
Pan No.:	AACFM6805H
Holding Company:	v AMI Impex Company Limited
Associates/Subsidiaries :	v Metal Gems Address: Char Rasta, Nana Pondha, Taluka : Kaprada, District Valsad - 396126, Gujarat, India Line of Business : Manufacturer of Copper Brass and Tubes

CAPITAL STRUCTURE

As on 30.09.2010

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
143147	Equity Shares	Rs.100/- Each	Rs.14.315 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		14.315	13.232	13.232
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		177.429	147.446	138.436
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		191.744	160.678	151.668
LOAN FUNDS
1] Secured Loans		43.800	47.778	59.819
2] Unsecured Loans		102.207	44.219	17.444
TOTAL BORROWING		146.007	91.997	77.263
DEFERRED TAX LIABILITIES		12.957	9.574	7.946
TOTAL		350.708	262.249	236.877
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		115.652	117.709	119.152
Capital work-in-progress		8.854	0.000	0.000
INVESTMENT		0.139	0.139	0.139
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	69.726	49.106	54.417
	Sundry Debtors	152.721	92.181	142.317
	Cash & Bank Balances	14.219	18.643	7.948
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	29.572	21.128	26.355
Total Current Assets		266.238	181.058	231.037
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	40.175	36.657	111.189
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.000	0.000	2.262
Total Current Liabilities		40.175	36.657	113.451
Net Current Assets		226.063	144.401	117.586
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		350.708	262.249	236.877

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	416.515	536.071	556.887
		Other Income	39.103	33.731	23.170
		TOTAL (A)	455.618	569.802	580.057
Less	EXPENSES
		Manufacturing Expenses	58.021	55.293	59.286
		Administrative and Office Expenses	6.610	5.450	5.467
		Raw Material Consumed	369.119	458.781	462.773
		Employees Remuneration	2.075	1.912	1.515
		Sales Tax	0.835	0.069	0.137
		Increase/(Decrease) in Finished Goods	(19.253)	6.101	3.504
		TOTAL (B)	417.407	527.606	532.682
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		38.211	42.196	47.375
Less	FINANCIAL EXPENSES (D)		9.049	13.678	10.703
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		29.162	28.518	36.672
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.693	16.494	15.726
	PROFIT BEFORE TAX (E-F) (G)		17.469	12.024	20.946
Less	TAX (H)		5.883	3.015	10.358
	PROFIT AFTER TAX (G-H) (I)		11.586	9.009	10.588
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		43.093	34.084	--
	Earnings Per Share (Rs.)		84.97	81.52	141.20

Expected Sales (2010-2011) : Rs.600.000 millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.54	1.58	1.82
Net Profit Margin (PBT/Sales)	(%)	4.19	2.24	3.76
Return on Total Assets (PBT/Total Assets}	(%)	6.56	4.02	5.98
Return on Investment (ROI) (PBT/Networth)		0.09	0.07	0.14
Debt Equity Ratio (Total Liability/Networth)		0.97	0.80	0.79
Current Ratio (Current Asset/Current Liability)		6.63	4.94	2.04

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors	40.175	36.657	111.189

Details of Sundry Creditors: (Partial Details)

Particulars	31.03.2010 (Rs. in millions)
Orchid Enterprises	0.213
Apollo Hume Pipes product	0.025
Bajaji Tooling	0.012
Bharat Steel Suppliers	0.016
Desai Electrical	0.077
Gala Poly Plast	0.202
Harshala Metals	0.084
Zinc MISR	0.361
KEW Industrial Limited	0.664
Records and Medicare Systems Private Limited	0.059

FORM 8

Name of the company	MEHTA TUBES PRIVATE LIMITED
Presented By	Mr. Mukesh Mehta
1) Date and description of instrument creating the change	Goods Security Agreement dated 20.04.2004 executed by Mehta Tubes Private Limited (Hereinafter referred to as “the company”) in favour of Citi Bank N. A. (Hereinafter referred to as “the lender”)
2) Amount secured by the charge/amount owing on the securities of charge	Total funded facilities for Rs. 4.500 millions and non funded facility for Rs. 0.500 Millions.
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of Stock and Book Debts, both present and future of the company forming part of the current assets and hypothecation of fixed assets including plant and machinery, computers, furniture and fixtures and vehicles of the company both present and future.
4) Gist of the terms and conditions and extent and operation of the charge.	In consideration of the lender having agreed to lend advance to the company funded and non funded facilities under the said agreement and declaration by the company mter aha as follows: 1) Covenant by the company to repay the facility at (2) above and pay interest and all other monies in the manner set out in the said agreement between the company and the lender and to comply with the terms and conditions of the said agreement. 2) The said Current and Fixed Assets hypothecated too the lender as and by way of first charge as security for and the charged with the repayment of the loan with all interest liquidated, damages, premia on prepayment or on redemption, costs, charges, and other expenses payable by the company to the lender in respect thereof. Margin- 36% on stocks and 52% on Debtors 3) The company to keep the said assets in marketable and good condition and also insured as provided therein. 4) Power of entry, power to take charge and / or possession of, seize, recover, receive, appoint and sell, contract, dispatch for realization or otherwise dispose of or deal with all or any part of the said goods, etc. as provided therein.
5) Name and Address and description of the person entitled to the charge.	Citi Bank N. A., Bandra Kurla Complex, G-Block, Bandra (East), Mumbai – 51, Maharashtra, India.
6) Date and brief description of instrument modifying the charge	Deed of modification dated 22.07.2005 relating to the enhancement in credit facilities
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The original charge was created on 02.04.2004 for securing Rs. 5.000 millions hypothecated by way of first exclusive charge on stocks, book debts and plant and machinery forming part of current and fixed assets both present and future. The bank has now extended additional facilities to the company and executed a new deed of modification dated 22.07.2005 for Rs. 10.000 millions which is an increase of Rs. 5.000 millions against the said current and fixed assets (including stock, Book Debts and Plant and Machinery)Hypothecated by way of first exclusive charge to the Lender both present and future. Other terms and conditions will remain same as per original goods security agreement.

Corporate identity number of the company	U27109GJ1988PTC10794
Name of the company	MEHTA TUBES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Char Rastananapondha, Tal Dhrampur, Valsad- 396406, Gujarat, India.
This form is for	Modification of charge
Charge identification number of the modified	90111753
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	Citi Bank- NA, Trent House, 2^nd Floor, Plot No.C 60, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Deed of Modification
Date of instrument Creating the charge	18.10.2010
Amount secured by the charge	Rs.75.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest to be charged at such rate/s as may be determined by the Bank from time to time. Terms of Repayment On Demand Margin As may be stipulated by the Bank from time to time. Extent and Operation of the charge The charge secured by way of first Pari Passu charge on Current Assets and Movable fixed assets and First Exclusive charge on all plant and machinery, both present and future hypothecated to the Bank more particularly described in Column No.15 as security for the repayment of Rs.7.50 Crores, together with all interest, liquidated damages, premia on prepayment or on redemption, costs, charges and other expenses payable by the Company to Citibank N.A. Others The charge created herein for Rs.75.000 millions in favour of Citibank shall rank pari passu on first charge basis over current assets and movable fixed assets and First Exclusive charge on all plant and machinery, with the charges created in favour of ICICI Bank Limited for their fund based facilities of Rs.5.000 millions.
Short particulars of the property charged	Hypothecation by way of first pari passu charge on Current Asset and Movable Fixed Assets (except those financed by Citibank) of the Company, both present and future. Hypothecation of First Exclusive charge on all plant and machinery exclusively finance by Citibank.
Date of latest modification prior to the present modification	26.06.2007
Particulars of the present modification	The charge shall now stand increased from Rs.55.000 millions to Rs.75.000 millions, in favour of Citibank N.A.

TRADE REFERENCES:

Abacus Tubes Limited

FIXED ASSETS:

• Freehold Land
• Leasehold Land (Wind Mill)
• Building
• Plant and Machinery
• Furniture and Fixture
• Computers
• Vehicles

WEBSITE DETAILS:

Subject is a leading manufacturer of superior copper and copper alloy tube, copper bar, copper pipe, copper rod and copper strip. Their products can be applied to an array of applications like Electrical Systems, Heat Exchangers and Condensers and Automobiles.

Subject started operations in 1988 with the manufacturing of copper and brass tubes and has now progressed to add numerous other products to their vast range of Copper products like copper bar, copper pipe and copper rod. Since the early days of their inception, they have gathered incisive industry knowledge and market awareness Company now posses the technical know-how and infrastructure to produce a vast range of copper products. In more than a decade of their existence, Mehta Tubes have also built up a lasting relationship with its clients consisting of reputed corporate' s all over the globe.

Their dedication to exceed the expectations of our customers fuels them to innovate their processes and products to produce excellent products. They continuously bring improvements and think of new ways to make their products better.

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.45.32
UK Pound	1	Rs.70.54
Euro	1	Rs.58.70

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		46

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.