MIRA INFORM REPORT

Report Date :

12.10.2011

IDENTIFICATION DETAILS

Name :	SLS STAINLESS PRIVATE LIMITED (w.e.f. 27.05.2008)
Formerly Known As :	SLS SCORODITE PRIVATE LIMITED (w.e.f. 01.12.2004) SAGAR STEELS PRIVATE LIMITED
Registered Office :	43, 1^st Carpenter Street, C. P. Tank, Mumbai – 400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	11.10.1994
Com. Reg. No.:	04-163692
Capital Investment / Paid-up Capital :	Rs.28.709 Millions
CIN No.: [Company Identification No.]	U27109MH1994PTC163692
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter, Suppliers and Stockiest of Superior Quality Steel Forged Fittings, Carbon Steel Tube Fittings, Stainless Steel Forged Fittings, Stainless Steel Tube Fittings and Other Allied Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (35)

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

Maximum Credit Limit :	USD 450000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Profitability of the company appears to be low. However, 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.

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

LOCATIONS

Registered Office :	43, 1^st Carpenter Street, C. P. Tank, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-22045550/ 51/ 52/ 53
Fax No.:	91-22-22045541/ 22045542
E-Mail :	info@slsscorodite.com

DIRECTORS

(AS ON 30.09.2010)

Name :

Mr. Shantilal Premchand Sanghvi

Designation :

Managing Director

Address :

B-805, Vasant Vihar, Dafnala Road, Shahibag, Ahmedabad – 380004, Gujarat, India

Date of Birth/Age :

06.05.1958

Date of Appointment :

21.03.2007

DIN No.:

00483385

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	U27104MH1994PTC162301	SCORODITE STAINLESS INDIA PRIVATE LIMITED.	Director	23-05-94	23-05-94	15-07-08	Active	NO
2	U72200GJ2000PTC037382	SLS INDUSTRIES PRIVATE LIMITED	Director	18-02-00	18-02-00	-	Active	NO
3	U27109MH1994PTC163692	SLS STAINLESS PRIVATE LIMITED	Managing director	21-03-07	21-03-07	-	Active	NO
4	U27200GJ1994PTC021540	OPTIMA STAINLESS PRIVATE LIMITED	Director	10-10-07	10-10-07	-	Active	YES
5	U28990MH2007PTC173724	SLS TUBES PRIVATE LIMITED	Director	05-04-08	05-04-08	-	Active	NO

Name :

Mr. Maheshbhai Shantilal Sanghvi

Designation :

Director

Address :

B-805, Vasant Vihar, Dafnala Road, Shahibag, Ahmedabad – 380004, Gujarat, India

Date of Birth/Age :

23.10.1981

Date of Appointment :

01.04.2007

DIN No.:

01507210

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	U72200GJ2000PTC037382	SLS INDUSTRIES PRIVATE LIMITED	Director	18-02-00	18-02-00	Active	NO
2	U27109MH1994PTC163692	SLS STAINLESS PRIVATE LIMITED	Director	29-09-07	01-04-07	Active	NO
3	U28990MH2007PTC173724	SLS TUBES PRIVATE LIMITED	Director	01-09-07	01-09-07	Active	NO
4	U27200GJ1994PTC021540	OPTIMA STAINLESS PRIVATE LIMITED	Director	10-10-07	10-10-07	Active	YES

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Amit Sanghvi	15000
Dadmiben Sanghavi	27010
Himansubhai Sanghavi	5000
Kalpesh S. Sanghavi	55000
Mahesh Sanghavi	618080
Manjulaben Sanghavi	15010
Mukesh Sanghavi	21510
Pradip Sanghavi	15500
Pravinaben Sanghavi	11000
Pushpaben Sanghavi	10000
Shantibhai Sanghavi	1997770
Sumerbhai Sanghavi	80000
Optima Stainless Private Limited, India	3900000
Total	6770880

(AS ON 30.03.2011)

Name of Allottess	No. of Shares Allotted
Shantilal Premchand Sanghvi	762785
Mahesh Sanghavi	235994
Manjulaben Sanghavi	5731
Pradip Sanghavi	5918
Kalpesh S. Sanghavi	21000
Sumerbhai Sanghavi	30545
Amit Sanghvi	5727
Dadmiben Sanghavi	10313
Himansubhai Sanghavi	1909
Mukesh Sanghavi	8213
Pravinaben Sanghavi	4200
Pushpaben Sanghavi	3818
Optima Stainless Private Limited, India	1489091
Total	2585244

(AS ON 30.09.2010)

Category	Percentage
Bodies corporate	57.60
Directors or relatives of directors	42.40
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter, Suppliers and Stockiest of Superior Quality Steel Forged Fittings, Carbon Steel Tube Fittings, Stainless Steel Forged Fittings, Stainless Steel Tube Fittings and Other Allied Products.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· IDBI Bank Limited

Opposite Municipal Staff Quarters, Near Lal Bunglow, Off. C. G. Road, Ahmedabad – 380006, Gujarat, India

· State Bank of India

SPL. Commercial Branch, Gandhigram, Ahmedabad – 380009, Gujarat, India

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
Short Term Loans:
Working Capital Facilities from Banks	53.211	34.041
(Hypothecation of Stock and Book Debts and Collateral Securities and personal Guarantee of all Directors)
Bank OD (Against FDR)	0.490	0.088
Total	53.701	34.129
Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From Directors	0.682	0.231
From Share Holders an Relatives	2.113	7.779
From Bodies Corporate and Banks	19.838	6.117
Total	22.633	14.127

Banking Relations :	--
Auditors :
Name :	R. R. S. and Associates Chartered Accountant
Address :	211, Kamal Complex, Opposite SBS, Near Stadium Circul, C G Road, Ahmedabad – 380009, Gujarat, India
PAN No.:	AAFFR0472A

CAPITAL STRUCTURE

(AFTER - AS ON 30.09.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Share	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9356124	Equity Share	Rs.10/- each	Rs.93.561 Millions

(AS ON 30.09.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Share	Rs.10/- each	Rs.70.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6770880	Equity Share	Rs.10/- each	Rs.67.709 Millions

(AS ON 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Share	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2870880	Equity Share	Rs.10/- each	Rs.28.709 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		28.709	28.709	27.349
2] Share Application Money		55.678	6.399	10.700
3] Reserves & Surplus		29.166	23.183	10.528
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		113.553	58.291	48.577
LOAN FUNDS
1] Secured Loans		53.701	34.129	66.150
2] Unsecured Loans		22.633	14.127	8.429
TOTAL BORROWING		76.334	48.256	74.579
DEFERRED TAX LIABILITIES		0.121	0.147	0.063
TOTAL		190.008	106.694	123.219
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.205	4.961	1.994
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.001
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	53.678	53.379	38.718
	Sundry Debtors	152.652	138.592	319.486
	Cash & Bank Balances	12.110	4.086	34.483
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	57.860	15.308	17.012
Total Current Assets		276.300	211.365	409.699
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	69.818	105.246	284.784
	Other Current Liabilities	17.772	0.522	0.000
	Provisions	8.919	5.876	3.691
Total Current Liabilities		96.509	111.644	288.475
Net Current Assets		179.791	99.721	121.224
MISCELLANEOUS EXPENSES		2.012	2.012	0.000
TOTAL		190.008	106.694	123.219

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		TOTAL	610.045	441.311	501.907
Less	EXPENSES
		TOTAL	601.001	435.349	493.262
	PROFIT BEFORE TAX		9.044	5.962	8.645
Less	TAX		2.725	1.899	3.017
	PROFIT AFTER TAX		6.319	4.063	5.628
	EARNINGS IN FOREIGN CURRENCY		0.410	58.733	--
	IMPORTS VALUE		2.884	Nil	--
	Earnings Per Share (Rs.)		2.20	1.44	2.06

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.04	0.92	1.12
Return on Total Assets (PBT/Total Assets}	(%)	3.18	2.76	2.10
Return on Investment (ROI) (PBT/Networth)		0.08	0.10	0.18
Debt Equity Ratio (Total Liability/Networth)		1.52	2.74	7.47
Current Ratio (Current Asset/Current Liability)		2.86	1.89	1.42

LOCAL AGENCY FURTHER INFORMATION

NOTE:

The company changed its registered office from 2, Harji Bhavan, Krantiveer Rajguru Road, Opposite, J. S. S. Road, Girgaon, Mumbai – 400004, Maharashtra, India to 9, Kamer Building, 1^st Floor, 38 Cawasji Patel Street, Fort, Mumbai – 400023, Maharashtra, India, w.e.f. 01.03.2007

The Registered office has again shifted from, 9, Kamer Building, 1^st Floor, 38 Cawasji Patel Street, Fort, Mumbai – 400023, Maharashtra, India, to the present address w.e.f. 26.10.2009.

FORM 8:

Corporate identity number of the company	U27109MH1994PTC163692
Name of the company	SLS STAINLESS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	43, 1ST Carpenter Street, C. P. Tank, Mumbai – 400004, Maharashtra, India info@slsscorodite.com
This form is for	Creation of charge
Type of charge	Immovable property
Particular of charge holder	IDBI Bank Limited Opposite Municipal Staff Quarters, Near Lal Bunglow, Off. C. G. Road, Ahmedabad – 380006, Gujarat, India yeshpal.singh@idbi.co.in
Nature of instrument creating charge	Mortgage agreement for property located at Industrial Plot at Survey No 1221,1222,1224/3, 1224/4, 1226 nandasan village, Ahmedabad - Mehsana Highway, Taluka -Kadi, Dist- Mehsana in the name of SLS Stainless Private Limited, SLS Tubes Private Limited, and SLS India Private Limited,
Date of instrument Creating the charge	30.06.2010
Amount secured by the charge	Rs.167.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: Cash credit - BPLR - 0.50% i.e 12.25% p.a (Present BPLR is 12.75%) / EPC/ FBD - BPLR - 2.5 % (Presently 10.25%) , Letter of credit - commission of 1.5% p.a with 15% cash margin, BG- 1% commission Terms of Repayment: All limits to be renewed every year. Margin: Cash .credit : 25% on stocks and Book debts not older than 90 days Letter of credit - 15% cash margin. Bank Guarantee - 15 % cash margin Extent and Operation of the charge: Over the entire value of the property mortgaged
Particulars of the property charged	Collateral security - Industrial Plot at Survey No 1221,1222,1224/3, 1224/4, 1226 Nandasan Village, Ahmedabad- Mehsana Highway, Taluka -Kadi, Dist- Mehsana

FIXED ASSETS

· Land

· Land Development

· Office

· Furniture

· Office Equipments

· Air Conditioner

· Electric Equipments

· Fan

· Fax

· Pager

· Telephone

· Type Writer

· Water Pump

· Plant and Machinery

· Computers

· Vehicles

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.49.03
UK Pound	1	Rs.76.60
Euro	1	Rs.66.80

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	4
--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		35

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.