MIRA INFORM REPORT

Report Date :

01.11.2011

IDENTIFICATION DETAILS

Name :	NAVBHARAT TUBES LIMITED
Registered Office :	E-134, MGD Market, Jaipur-302002, Rajasthan
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	14.09.1992
Com. Reg. No.:	17-006953
Capital Investment / Paid-up Capital :	Rs.11.831 Millions
CIN No.: [Company Identification No.]	U27106RJ1992PLC006953
Tin No.:	08731652643
PAN No.: [Permanent Account No.]	AAACN8125A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Various Size of ERW Black Galvanized Steel Tubes and Pipes.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 240000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. There appears to be some dip in the profitability of the company. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as pr 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 – 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 :	E-134, MGD Market, Jaipur-302002, Rajasthan, India
Tel. No.:	91-141-2310147/2322756
Fax No.:	91-141-2324377
E-Mail :	nbtljaipur@rediffmail.com rajesh_agarwal-07@rediffmail.com raviguptacs@gmail.com
Factory:	94-D, Jhotwara Industrial Area, Jaipur-302012, Rajasthan, India
Tel. No.:	91-141-3237514/2344364/2340505/2340896
Fax No.:	91-141-2340896 /2344364

DIRECTORS

As on 30.09.2010

Name :

Ms. Kavita Agarwal

Designation :

director

Address :

8/98, Vidhyadhar Nagar, Jaipur, Rajasthan, India

Date of Appointment :

06.03.1996

Din No.:

01741333

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	U27106RJ1992PLC006953	NAVBHARAT TUBES LIMITED	Director	06-03-96	06-03-96	-	Active	NO
2	U27107RJ2007PTC024675	SHRI GOVINDKRIPA STEEL PRIVATE LIMITED	Director	28-06-07	28-06-07	-	Active	NO
3	U27108RJ1988PTC004665	BHAWANI RADIATORS PRIVATE LIMITED	Director	20-08-08	24-04-08	19-01-11	Active	NO

Name :

Mr. Rajesh Kumar Agarwal

Designation :

Director

Address :

8/98, Vidhyadhar Nagar, Jaipur, Rajasthan, India

Date of Appointment :

13.09.1993

Din No.:

01742403

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	U27106RJ1992PLC006953	NAVBHARAT TUBES LIMITED	Director	13-09-93	13-09-93	-	Active	NO
2	U27109RJ2008PTC026997	GOVIND MOHAN STEEL PRIVATE LIMITED	Additional director	24-07-08	24-07-08	30-05-11	Active	NO
3	U27109RJ2009PTC030173	PRESTIGE TUBES PRIVATE LIMITED	Director	04-11-09	04-11-09	-	Active	NO
4	U27108RJ1988PTC004665	BHAWANI RADIATORS PRIVATE LIMITED	Director	30-09-11	20-12-10	-	Active	NO
5	U27202RJ2007PTC024480	TARKESHWAR PIPES PRIVATE LIMITED	Director	30-09-11	20-12-10	-	Active	NO

Name :

Mr. Jai Bhagwan Agarwal

Designation :

Drector

Address :

8/98, Vidhyadhar Nagar, Jaipur, Rajasthan, India

Date of Appointment :

07.09.2007

Din No.:

01575848

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	U27107RJ1996PTC012206	AMAN PIPES PRIVATE LIMITED	Director	20-06-96	20-06-96	-	Active	NO
2	U27107RJ1999PTC015537	AMBUJA PIPES PRIVATE LIMITED	Director	12-04-99	12-04-99	15-12-09	Active	NO
3	U27202RJ2007PTC024480	TARKESHWAR PIPES PRIVATE LIMITED	Director	25-05-07	25-05-07	-	Active	NO
4	U27106RJ1992PLC006953	NAVBHARAT TUBES LIMITED	Director	01-10-07	07-09-07	-	Active	NO
5	U27108RJ1988PTC004665	BHAWANI RADIATORS PRIVATE LIMITED	Director	20-08-08	24-04-08	-	Active	NO
6	U27109RJ2008PTC026857	SHIV KRIPA PIPES PRIVATE LIMITED	Director	25-06-08	25-06-08	31-03-11	Active	NO
7	U27109RJ2008PTC026997	GOVIND MOHAN STEEL PRIVATE LIMITED	Director	16-07-08	16-07-08	-	Active	NO
8	U27109RJ2009PTC030173	PRESTIGE TUBES PRIVATE LIMITED	Director	30-09-11	20-12-10	-	Active	NO

Name :

Ms. Hemlata Agarwal

Designation :

Director

Address :

8/98, Vidhyadhar Nagar, Jaipur, Rajasthan, India

Date of Birth/Age :

26.08.1969

Date of Appointment :

02.11.2009

Din No.:

01741384

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	U27106RJ1991PTC006336	SHRI HANUMANT PIPES PRIVATE LIMITED	Director	30-03-96	30-03-96	Active	NO
2	U27106RJ1992PLC006953	NAVBHARAT TUBES LIMITED	Director	30-09-10	02-11-09	Active	NO
3	U27109RJ2009PTC030173	PRESTIGE TUBES PRIVATE LIMITED	Director	04-11-09	04-11-09	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Ram Kumar Agarwal	125810
Jai Bhagwan Agarwal	348670
Shanti Devi Agarwal	54816
Hemlata Agarwal	14010
Kavita Agarwal	3115
Rajesh Kumar Agarwal	32950
Yogesh Kumar Agarwal	74227
Akshya Agarwal FNG	2000
Aditya Agarwal FNG	7000
Ayush Agarwal, FNG	2000
Shri Hunumant Pipes Private Limited, India	232814
Kailash Chand Agarwal	10000
Jadish Prasad Gupta	10000
Rasan Cultivatore Private Limited, India	50000
Renu Agarwal	5000
K.C. Kedia HUF	15000
S.C. Kedia HUF	13000
Mani Devi Kedia	9000
Vimala Vijay	5500
K.C. Kedia	22000
Mohini Vijay	5500
Mahesh Chand Vijay	5500
Aman Pipes Private Limited, India	18000
Ram Kumar Agarwal HUF	4521
S.C. Kedia	7500
Hariram Das	26500
Sunita Agarwal	10500
Sunita Agarwal	137
Rameshwar Lal Vijay	15000
Vimla Devi Kedia	18000
Indar Mal Agarwal	20000
Rajesh Kumar Agarwal	15000
Total	1183070

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	25.43
Directors or relatives of directors	71.82
Other top fifty shareholders	2.75
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Various Size of ERW Black Galvanized Steel Tubes and Pipes.

Products :

Product Description	Item Code
G.I. Steel Tube / ERW Steel Tube	7306.9

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Year 2009-10 [MT]
Licensed Capacity	16800.000
Installed Capacity (Single Shit)	14400.000
Actual Production (ERW Steel Tube)	9808.486
Actual Production (H.R. Strip)	8849.000

GENERAL INFORMATION

Bankers :

· HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India

· The Bank of Rajasthan Limited, Gandhi Nagar, Bangalore, Karnataka, India

· ICICI Bank Limited

Facilities :

Secured Loan	As on 31.03.2010 [Rs. in Millions]	As on 31.03.2009 [Rs. in Millions]
Term Loan from The Bank of Rajasthan Limited [secured by way of hypothecation of plant and machinery]	4.828	9.340
Reliance Capital Limited [secured by way of hypothecation on respective plant and machinery]	3.293	3.779
Vehicle Loan
From HDFC Bank Limited [secured by way of hypothecation of vehicles]	0.913	0.000
From ICICI Bank Limited [secured by way of hypothecation of vehicle]	0.208	0.808
Cash Credit / WCTL from The Bank of Rajasthan Limited [secured by way of hypothecation of entire stock lying at factory/ WCTL consisting of raw material finished goods and consumable stores spares etc and equitable mortgage of land and building by deposit of the deeds and personal guarantee of directors]	56.720	64.978
Mortgage Loan (HDFC) Shop No. 124 [secured by way of equitable mortgage of commercial shop]	5.724	6.136
Total	71.686	85.041
Unsecured Loan
From Bodies Corporate	3.360	4.214
From Shareholders	3.935	2.654
Total	7.295	6.868

Banking Relations :	--
Auditors :
Name :	A. Bafna and Company Chartered Accountants
Address :	K-2, Raj Apartment, Keshav Path, Near Ahinsa Circle, C Scheme, Jaipur-302001, Rajasthan, India
Tel. No.:	91-141-2372572/2375212/2373873
Fax No.:	91-141-2363426
Pan No.:	AAGFA3909A
Subsidiaries :	Govind Mohan Steel Private Limited [U27109RJ2008PTC026997]

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1183070	Equity Shares	Rs.10/- each	Rs.11.831 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		11.831	11.831	11.831
2] Share Application Money		0.120	0.120	0.120
3] Reserves & Surplus		48.629	45.501	32.842
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		60.580	57.452	44.793
LOAN FUNDS
1] Secured Loans		71.686	85.041	51.591
2] Unsecured Loans		7.295	6.868	3.397
TOTAL BORROWING		78.981	91.909	54.988
DEFERRED TAX LIABILITIES		4.166	3.600	2.306
TOTAL		143.727	152.961	102.087
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		54.582	53.458	29.608
Capital work-in-progress		0.000	0.046	1.744
INVESTMENT		1.513	1.513	0.148
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	61.465	48.631	40.611
	Sundry Debtors	51.427	80.809	58.981
	Cash & Bank Balances	5.400	9.400	6.181
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	32.775	23.300	14.962
Total Current Assets		151.067	162.140	120.735
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	55.773	54.243
	Other Current Liabilities	6.653	4.952	48.131
	Provisions	1.009	5.025	2.066
Total Current Liabilities		63.435	64.220	50.197
Net Current Assets		87.632	97.920	70.538
MISCELLANEOUS EXPENSES		0.000	0.024	0.049
TOTAL		143.727	152.961	102.087

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	470.152	473.128	420.174
		Other Income	0.927	1.836	1.618
		TOTAL (A)	471.079	474.964	421.792
Less	EXPENSES
		Material Cost	434.642	420.715	385.241
		Manufacturing and Other Expenses	28.082	25.999	13.017
		Preliminary Expenses Written Off	0.025	0.025	0.025
		Variation in Stock	(15.505)	(7.703)	4.777
		TOTAL (B)	447.244	439.036	403.060
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		23.835	35.928	18.732
Less	FINANCIAL EXPENSES (D)		15.057	14.493	10.897
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.778	21.435	7.835
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.718	2.456	1.879
	PROFIT BEFORE TAX (E-F) (G)		5.060	18.979	5.956
Less	TAX (H)		1.931	6.320	1.804
	PROFIT AFTER TAX (G-H) (I)		3.129	12.659	4.152
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		35.857	23.198	19.046
	BALANCE CARRIED TO THE B/S		38.986	35.857	23.198
	Earnings Per Share (Rs.)		2.64	10.70	3.51

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.66	2.67	0.98
Net Profit Margin (PBT/Sales)	(%)	1.07	4.01	1.42
Return on Total Assets (PBT/Total Assets}	(%)	2.46	8.80	3.96
Return on Investment (ROI) (PBT/Networth)		0.08	0.33	0.13
Debt Equity Ratio (Total Liability/Networth)		2.35	2.72	2.35
Current Ratio (Current Asset/Current Liability)		2.38	2.52	2.40

LOCAL AGENCY FURTHER INFORMATION

OPERATION:

During the year the company earned a net profit of Rs.5.061 millions before depreciation and achieved a satisfactory turnover. During the year the plant has run successfully. The directors are quite hopeful that the company will achieve new heights in the ensuing year.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10004979
Corporate identity number of the company	U27106RJ1992PLC006953
Name of the company	NAVBHARAT TUBES LIMITED
Address of the registered office or of the principal place of business in India of the company	E-134, MGD Market, Jaipur-302002, Rajasthan, India
Type of charge	Immovable Property
Particular of charge holder	HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India
Email	bhandari.priti@gmail.com
Nature of description of the instrument creating or modifying the charge	Memorandum recording past transaction of creation of mortgage by deposit of title deeds.
Date of instrument Creating the charge	22.10.2010
Amount secured by the charge	Rs.168.950 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Same as before Terms of Repayment Same as before Margin Same as before Extent and Operation of the charge The charge shall continue to subsist till such time all the borrower dues have been repaid in full together with interest, cost, liquidated damages, charges and expenses and all other monies whatsoever dues. Others The bank has a right to inspect the financial statement and other book of accounts on a 24 hour notice. The bank may appoint agency to do the inspection. All the assets of the borrower offered as security to be covered under comprehensive insurance for full value. The insurance of all assets offered for security under the facility to be made with HDFC BANK as the first loss payee.
Short particulars of the property charged	The existing loan amount further secured by way of equitable mortgage of following immovable properties: a) Plot No. 94B, Industrial Area, Jhotwara, Jaipur owned by M/s Bharat structurals b) Plot No. 94-D, Industrial Area, Jhotwara, Jaipur owned by the company c) Plot No. 94-C and E, Industrial Area, Jhotwara, Jaipur owned by the company d) Plot No. 95, Loha Mandi, Village Machera, Sikar Road, Jaipur owned by Rajesh Agarwal, Jai Bhagwan Agarwal, and Yogesh Agarwal.
Date of latest modification prior to the present modification	24.07.2010
Particulars of the present modification	By this modification the existing aggregate facility of Rs. 168.950 Millions (Rs. 143.950 Millions to the company and facility of Rs. 25.000 Millions to M/s Aman Pipes Private Limited) is further Secured by equitable mortgage of immovable properties of the company. All other terms and conditions remain same.

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Dies and Patents

· Testing Equipments

· Electrical Installation

· Vehicles

· Furniture and Fixtures

· Office Equipments

· Weighing Scale

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.48.87
UK Pound	1	Rs.78.11
Euro	1	Rs.68.36

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.