MIRA INFORM REPORT

Report Date :

08.09.2011

IDENTIFICATION DETAILS

Name :	NILKANTH CONCAST PRIVATE LIMITED
Registered Office :	BBZ – N 66, Zanda Chowk Main Bazar, Gandhidham 370201, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.08.2003
Com. Reg. No.:	042778
Capital Investment / Paid-up Capital :	Rs. 33.878 millions
CIN No.: [Company Identification No.]	U27106GJ2003PTC042778
TAN No.: [Tax Deduction & Collection Account No.]	RKTN00799B
PAN No.: [Permanent Account No.]	AABCN8500A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of TMT Steel Bars
No. of Employees :	600 Approximately

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 1472288
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. There appears some losses being incurred by the company in the current year. However, networth appears to be satisfactory. 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.

INFORMATION PARTED BY

Name :	Mr. Chetan
Designation :	Accounts Manager
Contact No.:	91-8980034056
Date :	07.09.2011

LOCATIONS

Registered Office :	BBZ – N 66, Zanda Chowk Main Bazar, Gandhidham 370201, Gujarat, India
Tel. No.:	91-2836-221460 / 230711 / 224168
Mobile No.:	91-8980034056 (Mr. Chetan)
Fax No.:	91-2836-233734
E-Mail :	nilkanthconcast@rediffmail.com ncplfinance@gmail.com
Marketing Office :	608, Samedh Complex, Nr. Associate Petrol Pump, C.G. Road, Ahmedabad-380 015, Gujarat, India
Fax No.:	91-79-26423910
Factory :	Survey No. 221 Village Vadala, Mundra Kutch 370410, Gujarat, India
Tel. No.:	91-2838-283493 / 283499
Fax No.:	91-2838-283488
E-Mail :	mkt@nilkanthsteels.com

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Girija Ayachi
Designation :	Director
Date of Appointment :	05.08.2005
Name :	Mr. Chandrasekhar Ayachi
Designation :	Director
Date of Appointment :	24.08.2006
Name :	Mr. Nakul Ayachi
Designation :	Director
Date of Appointment :	25.08.2009

KEY EXECUTIVES

Name :	Mr. Chetan
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Girija Ayachi	1325000
Chandrasekhar Ayachi	1989998
Ravinder N Koul	5000
Virbhadar Rao	5000
Vijay Hanubha Balia	62895
Chandrasekhar Ayachi Jt. Arunkumar L Agarwal	1
Chandrasekhar Ayachi Jt. Dilip Ayachi Jt. Harnamdas Sadhuram	1
Total	3387895

AS ON 30.09.2010

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of TMT Steel Bars

Products :

ITC Code	Product Description
3303	Sponge Iron
3302	MS Billets
3302	TMT Bars / CRD Bars
--	Angles and Channels

Terms :

Selling :

Depend

Purchasing :

Depend

PRODUCTION STATUS

AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity
Sponge Iron	Tones	72000	72000
M S Billets and TMT Bar	Tones	180000	180000

GENERAL INFORMATION

Customers :

· OEM’s

· Manufacturer

· Ajanta Limited - Morbi

· Suzlon Infrastructure Services Limited

· Rajkot Municipal Corporation

· Adani Power Limited - Mundra

· Reliance Infrastructure Private Limited - Jamnagar

· Oil Field Warehouse and Services - Mundra

· Backbone Enterprise Limited

· Avesta Engineering Private Limited - Mundra

· Pipavav Port- Amreli

· Getco Power Private Limited

· Dic Fine Chemical - Dahej

No. of Employees :

600 Approximately

Bankers :

· Indian Overseas Bank, Defence Colony Branch, Moolchand Shopping Complex, New Delhi 110024, India

· State Bank of Mysore

· ICICI Bank

· HDFC Bank

Facilities :

Rs. In Millions

SECURED LOAN	31.03.2010	31.03.2009
Indian Overseas Bank - Delhi	1.371	1.371
Indian Overseas Bank - Delhi (FCTL) (Secured by First charge in the nature of equitable mortgage of factory land and building and hypothecation of Plant and Machineries, Equipments etc. present and future)	49.978	87.153
State Bank of Mysore Term Loan A/c (Secured by hypothecation over existing machinery machinery charged to Indian Overseas Bank on pari passu basis)	44.504	71.237
Indian Overseas Bank Cash credit (Delhi) (Secured by hypothecation of stocks and book debts not later than 90 days)	323.306	272.655
Indian Overseas Bank - Term Loan - Power Plant	274.334	202.276
State Bank of Mysire - Term Loan - Power Plant	59.722	34.596
Indian Overseas Bank GIM - Cash Credit	16.632	29.977
State Bank of Mysire - Delhi - Cash Credit	50.447	--
ICICI Bank - I.O.B. DELHI (Vehicle Loan A/c)	4.414	1.532
TML Financial Service Limited	--	0.675
TOTAL	824.708	701.472
UNSECURED LOAN
From Directors and their relatives	43.700	41.200
From others	26.281	15.822
TOTAL	69.981	57.022

Banking Relations :	--
Auditors :
Name :	J C Ranpura and Company Chartered Accountant
Address :	Star Avenue, 1^st Floor, Dr. Radhakrishnan Road, Opposite RAjkumar College, Rajkot 360001, Gujarat, India
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

AS ON 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs. 10 each	Rs.40.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3387895	Equity Shares	Rs. 10 each	Rs.33.878 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		33.878	33.878	33.250
2] Share Application Money		1.494	1.494	17.516
3] Reserves & Surplus		332.700	362.728	319.914
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		368.072	398.100	370.680
LOAN FUNDS
1] Secured Loans		755.499	824.708	701.472
2] Unsecured Loans		91.308	69.981	57.022
TOTAL BORROWING		846.807	894.689	758.494
DEFERRED TAX LIABILITIES		106.445	63.957	36.476
TOTAL		1321.324	1356.746	1165.650
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		828.199	897.763	504.805
Capital work-in-progress		0.000	0.000	322.097
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	360.920	195.801	188.779
	Sundry Debtors	154.384	149.000	93.846
	Cash & Bank Balances	36.608	22.044	66.407
	Other Current Assets	42.909	40.830	42.955
	Loans & Advances	243.582	221.339	183.401
Total Current Assets		838.403	629.014	575.388
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	304.946	113.352	194.772
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	40.332	56.679	41.868
Total Current Liabilities		345.278	170.031	236.640
Net Current Assets		493.125	458.983	338.748
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1321.324	1356.746	1165.650

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	1952.069	2278.371	2471.814
		Other Income	0.000	0.000	0.000
		TOTAL (A)	1952.069	2278.371	2471.814
Less	EXPENSES
		Cost of Materials	910.659	944.135	1100.585
		Manufacturing Expenses	609.746	795.713	908.603
		Increase/(Decrease) in Finished Goods	(130.982)	(13.664)	(42.739)
		Selling and Distribution Expenses	61.880	88.792	117.417
		Excise Duty (Net of refund )	163.380	116.174	88.473
		Administrative Expenses	18.161	14.429	14.477
		Personnel Expenses	64.221	70.955	68.752
		Foreign Exchange Loss	1.449	0.000	0.000
		TOTAL (B)	1698.514	2016.534	2255.568
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		253.555	261.837	216.246
Less	FINANCIAL EXPENSES (D)		116.100	106.120	73.604
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		137.455	155.717	142.642
Less/ Add	DEPRECIATION/ AMORTISATION (F)		124.995	92.111	73.441
	PROFIT BEFORE TAX (E-F) (G)		12.460	63.606	69.201
Less	TAX (H)		42.487	39.032	(9.084)
	PROFIT AFTER TAX (G-H) (I)		(30.027)	24.574	78.285
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		176.138	151.564	73.279
	BALANCE CARRIED TO THE B/S		146.111	176.138	151.564
	IMPORTS
		Raw Materials	NA	NA	454.089
		Stores & Spares	NA	NA	1.164
		Iron Ore Pallets	NA	NA	28.732
	TOTAL IMPORTS		NA	NA	483.985
	Earnings Per Share (Rs.)		--	9.54	22.46

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(1.53)	1.07	3.16
Net Profit Margin (PBT/Sales)	(%)	0.63	2.79	2.79
Return on Total Assets (PBT/Total Assets}	(%)	0.74	4.16	6.40
Return on Investment (ROI) (PBT/Networth)		0.03	0.15	0.18
Debt Equity Ratio (Total Liability/Networth)		3.52	2.83	2.78
Current Ratio (Current Asset/Current Liability)		2.42	3.69	2.43

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

Rs. In Millions

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors	304.946	113.352	194.772

NOTE:

Registered office of the company has been shifted from Sy No. 281 and 282 Gyanji Wadi, National Highway, Kutch 370201, Gujarat to the present address w.e.f. 16.10.2009.

OPERATION: (AS ON 31.03.2010)

During the year company has earned total income form operation of RS. 2278.300 millions and made a profit after tax of RS. 24.500 millions.

FIXED ASSETS:

· Land Free Hold

· Factory Building

· Staff Quarters

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Equipment Vehicles

· Office Equipment

· Computer

· Generator Set

· Power Plant

FORM 8

Corporate identity number of the company	U27106GJ2003PTC042778
Name of the company	NILKANTH CONCAST PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	BBZ – N 66, Zanda Chowk Main Bazar, Gandhidham 370201, Gujarat, India
This form is for	Creation of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Floating charge Others
Particular of charge holder	Indian Overseas Bank, Defence Colony Branch, Moolchand Shopping Complex, New Delhi 110024, India Email: defenbr@delsco.iobnet.co.in
Nature of instrument creating charge	Letter of Hypothecation, Hypothecation of Book debts, Confirmation Letter
Date of instrument Creating the charge	03.06.2011
Amount secured by the charge	Rs. 60.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Rate of interest shall be charged base rate plus 4% additional interest 1% i. e. 15% at presently with monthly rests or at such other rates as may be specified by the bank from time to time. Terms of repayment Payable on demand as per sanction terms and bank norms. Margin As per sanctions terms. Extent and operation of the charge First pari passu charge on hypothecated assets and equitable mortgage of property is to secure Adhoc Cash Credits limit of Rs.60.000 millions sanctioned by Indian Overseas Bank to M/s.Nilkanth Concast Private Limited
Short particulars of the property charged (Including location of the property)	First pari passu charge on stocks,book debts plant and machinery and other current assets and fixed assets of the company present and future. Equitable mortgage by way of deposit of title deeds immovable property situated at Village Vadala, Taluka Mundra, District Kutch, (Gujarat) having Survey No. 221, 222, 227, 228, 229/1, 229/2, 230/1, 230/2, 230/3, 231/1, 274/1, 274/3, 275/1, and 284/2.

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.46.02
UK Pound	1	Rs.73.60
Euro	1	Rs.64.77

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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.