MIRA INFORM REPORT

Report Date :

17.03.2011

IDENTIFICATION DETAILS

Name :	VNS INDUSTRIES PRIVATE LIMITED
Registered Office :	37 Baroda Street, Carnac Bunder, Mumbai – 400009, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	23.06.1999
Com. Reg. No.:	120489
CIN No.: [Company Identification No.]	U27110MH1999PTC120489
TAN No.: [Tax Deduction & Collection Account No.]	MUMV09415A
PAN No.: [Permanent Account No.]	AACFV2387D
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of Cold Rolled Steel and H. R. Gauge Corrected Strips.

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 774900
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well 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

NOTE – Management no-cooperative name not disclose

LOCATIONS

Registered Office :	37 Baroda Street, Carnac Bunder, Mumbai – 400009, Maharashtra, India
Tel. No.:	91-22-23722134
E-Mail :	vns@vnssteel.com
Factory 1 :	Plot No. A-9 and 10, Phase II, M.I.D.C., Dombivali (E), Thane – 421 204, Maharashtra, India
Tel. No.:	91-251-2870911/2871112/2871913
Fax No.:	91-251-2871510
E-Mail :	mktg@vnssteel.com
Website :	www.vnssteel.com

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Vipul Mahasukh Gopani
Designation :	Director
Name :	Mr. Nagin Chimanlal Gopani
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Mahasukh C. Gopani	256800
Nagin C. Gopani	400
Sanjay Saraf	400
Vipul M. Gopani	555200
VSS Finvest Limited	812000
Total	1624800

AS ON 30.09.2010

Category	Percentage
Bodies corporate	50.00
Directors or relatives of Directors	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cold Rolled Steel and H. R. Gauge Corrected Strips.

GENERAL INFORMATION

No. of Employees :

Not divulged by the management.

Bankers :

v Corporation Bank, Personal Banking Branch, Bhadasavale, Agarkar Road, Behind Sarvesh Hall, Dombivili-East-Dist Thane, Dombivali - 421201, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Form Banks
Car Loan (Kotak)	1.598	0.000
Corporation Bank CC A/c.	77.999	0.000
ICICI Car Loan	0.000	0.348
ICICI Car Loan – 1	0.000	0.138
Total	79.597	0.486
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Others	62.509	77.232
Form Directors/Managers	0.000	1.500
Total	62.509	78.732

Banking Relations :	---
Auditors :
Name :	Vinod S. Mehta and Company Chartered Accountant
Address :	114, Jolly Bhavan-1, 10, New Marine Lines, Mumbai – 400020, Maharashtra, India
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
20,00,000	Equity Shares	Rs.10/- each	Rs. 20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,570,300	Equity Shares	Rs.10/- each	Rs. 15.703 Millions

NOTE – Of the above shares, 304500 shares of Rs. 10/- each are allotted as fully paid up by way of bonus from reserves.

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		15.703	9.203	9.203
2] Share Application Money		0.000	12.500	13.000
3] Reserves & Surplus		178.022	108.621	99.645
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		193.725	130.324	121.848
LOAN FUNDS
1] Secured Loans		79.597	0.486	35.207
2] Unsecured Loans		62.509	78.733	67.342
TOTAL BORROWING		142.106	79.219	102.549
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		335.831	209.543	224.397
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		18.132	11.795	9.430
Capital work-in-progress		7.818	2.424	0.000
INVESTMENT		1.696	1.696	1.099
DEFERREX TAX ASSETS		0.196	0.917	0.106
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	151.170	76.593	154.631
	Sundry Debtors	141.643	103.898	102.801
	Cash & Bank Balances	19.999	24.995	17.359
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	49.663	72.759	47.260
Total Current Assets		362.475	278.245	322.051
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	40.755	62.153	88.336
	Other Current Liabilities	3.131	3.221	5.177
	Provisions	10.600	20.160	14.780
Total Current Liabilities		54.486	85.534	108.293
Net Current Assets		307.989	192.711	213.758
MISCELLANEOUS EXPENSES		0.000	0.000	0.004
TOTAL		335.831	209.543	224.397

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	766.274	812.771	907.868
		Other Income	2.230	8.212	2.245
		TOTAL (A)	768.504	820.983	910.113
Less	EXPENSES
		Cost of Materials	704.830	763.563	828.529
		Administrative & Other Expenses	37.278	34.284	50.426
		Loss on sale of assets	0.379	0.000	0.061
		Preliminary Expenses Written off	0.000	0.004	0.004
		TOTAL (B)	742.487	797.851	879.020
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		26.017	23.132	31.093
Less	FINANCIAL EXPENSES (D)		7.091	7.632	7.059
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		18.926	15.500	24.034
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.268	1.879	1.718
	PROFIT BEFORE TAX (E-F) (G)		16.658	13.621	22.316
Less	TAX (I)		5.711	4.569	7.866
	PROFIT AFTER TAX (G-I) (J)		10.947	9.052	14.450
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		62.334	53.357	38.984

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.42	1.10	1.58
Net Profit Margin (PBT/Sales)	(%)	2.17	1.67	2.45
Return on Total Assets (PBT/Total Assets}	(%)	4.37	4.69	6.73
Return on Investment (ROI) (PBT/Networth)		0.08	0.10	0.18
Debt Equity Ratio (Total Liability/Networth)		1.01	1.26	1.73
Current Ratio (Current Asset/Current Liability)		6.65	3.25	2.97

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details

Particulars	31.03.2010 (Rs. In. Millions)	31.03.2009 (Rs. In. Millions)	31.03.2008 (Rs. In. Millions)
Sundry Creditors	40.755	62.153	88.336

Fixed Assets

v Motor Car

v Computer

v Scooter

v Air Conditioner

v Pump Set

v Cooler

v Refrigerator

v Furniture

v Xerox Machine

v Telephone

v Music System

v Weighscale Plateform

v Barcoading Machine

v D.G. Set

v Water Purifier

v Attendance Machine

v Ups Machine

v Television

v Grass Cutting Machine

v Skin Pass Mill

v Slitting Machine

v Testing Equipment

v Land

v Compressor

v Security Systems

v Gauge Recording System

v Energy Saver Equipment

v M.I.D.C. Plot

Form 8

Corporate identity number of the company

U27110MH1999PTC120489

Name of the company

VNS INDUSTRIES PRIVATE LIMITED

Address of the registered office or of the principal place of business in India of the company

37 Baroda Street, Carnac Bunder, Mumbai – 400009, Maharashtra, India

This form is for

Creation of charge

Type of charge

Book Debts

Movable property

Particular of charge holder

Name :	Corporation Bank,
Address :	Personal Banking Branch, Bhadasavale, Agarkar Road, Behind Sarvesh Hall, Dombivili-East-Dist Thane, Dombivali - 421201, Maharashtra, India
Email :	cb602@corpbank.co.in

Nature of instrument creating charge

1.Common deed of hypothecation of movables/assets/debts

2. Power of Attorney to collect receivable.

Date of instrument Creating the charge

02.02.2010

Amount secured by the charge

Rs. 75.000 Millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of Interest

As Stipulated By Bank From Time To Time

Terms of Repayment

As Stipulated By Bank From Time To Time

Margin

As Stipulated By Bank From Time To Time

Extent and Operation of the charge

First Charge(Present And Future)-Total Limit Rs.75.000 Millions-Cash Credit

(Sub Limit Under Cash Credit-Rs.10.000 millions-Fdbn/Fdbd/Fdbp/Be, Rs.20.000 millions Pcl)

Others

As Stipulated By Bank From Time To Time

Particulars of the property charged

First Charge(Present And Future)-(1)Hyp.Of All Products,Goods & Movables Of Any Kind Belonging To The Borrowers And Also Such Products,Goods & Movables Which The Borrower Are Under Various Powers And

Authoristis Entitled To Pledge Or Hypothecation And Are In The Possession And Control Of The Borroweri.E.Goods Consisting Of H.R Coil And C.R.Steel

(2)Hypothecation Of Stock/Goods/Inventoris Covered By Documents Under The Lc/Pcl/Bank Finance

(3)Hypothecation All Fixed .Movable And Current Assets Of The Company Including Defined In Annexure To Agreement Attached

(4) Hypothecation Of All Book Debts And Receivables Including Export Documentary Bills

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.45.18
UK Pound	1	Rs.72.58
Euro	1	Rs.63.13

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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.