MIRA INFORM REPORT

Report Date :

26.11.2011

IDENTIFICATION DETAILS

Name :	SHIVA INDUSTRIES
Registered Office :	Plot No – 18, Siwar Area, Subash Chowk, Amer Road, Jaipur – 302002, Rajasthan
Country :	India
Financials (as on) :	31.03.2011
Year of Establishment :	1996
Capital Investment / Paid-up Capital :	Rs.3.500 Millions
Legal Form :	Partnership concern with an Unlimited Liability of the Partners.
Line of Business :	Manufacturing and Supplying of pipes and pipe fittings like joint for di pipes, long collar joints for di pipes, short collar joints for di pipes, double flanged pipe bend, pipe bends, pipe reducers, tee fittings, flanged pipe fittings and ci double flanged pipe fittings.
No. of Employees :	9 (Approximately)

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 140000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established partnership concern having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The concern 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

INFORMATION PARTED BY

Name :	Ms. Kamal Sharma
Designation :	Senior Accountant
Contact No.:	91-9928786844
Date :	22.11.2011

LOCATIONS

Registered Office :	Plot No – 18, Siwar Area, Subash Chowk, Amer Road, Jaipur – 302 002, Rajasthan, India
Tel. No.:	91-141-2340252/ 2635726
Mobile No.:	91-9414072098 (Mr. Naveen Agarwal) 91-9928786844 (Ms. Kamal)
Fax No.:	91-141-2340252
E-Mail :	navinebus@yahoo.co.in
Area :	2000 Sq. ft.
Location :	Owned
Factory :	Niwaru Road, Jote Road, District Jaipur – 302002, Rajasthan, India
Area :	4000 Sq. ft.
Location :	Owned

PARTNERS

Name :	Mr. Naveen Agarwal
Designation :	Partner
Address :	Jaipur – 302002, Rajasthan, India
Date of Birth/Age :	27 years
Qualification :	Mechanical Engineer
Name :	Mr. Praven Agarwal
Designation :	Partner
Address :	Jaipur – 302002, Rajasthan, India
Date of Birth/Age :	27 years
Qualification :	Graduate

KEY EXECUTIVES

Name :	Ms. Kamal Sharma
Designation :	Senior Accountant

BUSINESS DETAILS

Line of Business :	Manufacturing and Supplying of pipes and pipe fittings like joint for di pipes, long collar joints for di pipes, short collar joints for di pipes, double flanged pipe bend, pipe bends, pipe reducers, tee fittings, flanged pipe fittings and ci double flanged pipe fittings.
Products :	· Sluice Valves (50mm to 600mm) as per IS 14846:2000 · Reflux Valves ( 50mm to 400mm) as per IS 5312:2004 · Air Valves (15mm to 200mm) as per IS 14845:2000 · Non Return Valves · Butterfly Valves as per IS 13095 · Globe Valves · Gate Valves · C.I. Castings Valves · Air Valves (Single Acting / Double Acting) · Kinetic Air Valves as per IS : 14845 · Temper proof Air Valves as per AWWA C 512 · Dismantle Joints · CI Transaction Joints · Joints for DI Pipes ( 80mm to 600mm) Long collar and Short Collar · CI Long collar Detechable Joints as per (IS Size 80mm to 700mm) · CI Short Collar CID Joints (size 80mm to 700mm Class 5, 10, 15, 20, 25) · Various Pipe Fittings like C.I. Detachable Joints, Bends, Reducers · Tees, Double Socket Bend, Duck Foot Bend, etc. · CI Double Flanged Pipe Fittings (Size 80mm to 700mm) · Other Products suitable for Water Supplying Pipelines as per your drawings or Patterns.
Terms :
Selling :	Cash and Credit (30-60 Days)
Purchasing :	Cash and Credit (30-60 Days)

GENERAL INFORMATION

Suppliers :	· Arihant Steel · Vikas Metal and Allvis · Shri Kolya Traders · Sprant Iron and Steel Private Limited
Customers :	Retailers and Government · JSM Iron and Steel
No. of Employees :	9 (Approximately)
Bankers :	· Central Bank of India Jaipur – 302002, Rajasthan, India
Facilities:	Cash Credit – Rs.2.000 Millions from Central Bank of India

Banking Relations :	--
Auditors :
Name :	S. D. Pandy and Company Chartered Accountant
Associates/Subsidiaries :	· Aggarwal Engineers Address : Plot No – 18, Siwar Area, Subash Chowk, Amer Road, Jaipur – 302 002, Rajasthan, India Line of Business : Manufacturing and Supplying of pipes and pipe fittings like joint for di pipes, long collar joints for di pipes, short collar joints for di pipes, double flanged pipe bend, pipe bends, pipe reducers, tee fittings, flanged pipe fittings and ci double flanged pipe fittings. · Shivam Casting

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Capital Investment :
Owned :	Rs.3.500 Millions
Borrowed :	--
Total :	Rs.3.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2011	31.03.2010
Sales Turnover (Approximately)	20.000	18.000

Expected Sales (2011-12): Rs.22.000 Millions

The above information has been parted by Ms. Kamal Sharma

Note : Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	--------
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last two years	Yes
Profitability for last two years	Yes
Reasons for variation <> 20%	--------
Estimation for coming financial year	Yes
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	Yes
Major Customers	Yes
Payments Terms	Yes
Export/ Imports Details (If applicable)	--------
Market Information	--------
Litigations that the firm/ Promoters Involved in	--------
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	--------
Buyer visit details	--------
Financials, if provided	No
Incorporation details is applicable	--------
Last Accounts filed at ROC	--------
Major Shareholders, if available	--------

TRADE REFERENCE:

· Arihant Steel

· Vikas Metal and Allvis

· Shri Kolya Traders

· Sprant Iron and Steel Private Limited

· JSM Iron and Steel

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.52.16
UK Pound	1	Rs.80.64
Euro	1	Rs.69.42

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	4
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		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.