MIRA INFORM REPORT

PRELIMINARY REPORT

Report Date :

13.04.2012

IDENTIFICATION DETAILS

Name :	INDU CORPORATION PRIVATE LIMITED (PART-IX)

Registered Office :	Nishuvi, 4^th Floor, 75, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	03.04.2006

Com. Reg. No.:	11-160932

CIN No.: [Company Identification No.]	u27104mh2006ptc160932

TAN No.: [Tax Deduction & Collection Account No.]	MUMI07109E

Legal Form :	Private Limited Liability Company

Line of Business :	Trader, Distributor and Importer of Zinc, Steel Products and Other Ferrous and Non-Ferrous Metals.

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 1422000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is an established company with satisfactory track. Trade relations are fair. Business is active. Payments are reported as being usually correct and as per commitments. The company can be considered good for normal business dealings under 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

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Nimish Indubhai Kapashi
Designation :	Managing Director
Contact No.:	91-22-24962032
Date :	29.04.2011

LOCATIONS

Registered Office :	Nishuvi, 4^th Floor, 75, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra, India
Tel. No.:	91-22-24962034/ 41005300/ 24950465/ 24962032
Fax No.:	91-22-43005105/ 24950465
E-Mail :	mail@talojasteel.com info@inducorp.co.in
Website :	http://www.inducorporation.com
Area :	2500 sq. ft.
Location :	Owned

Warehouse :	Plot No.A-1, MIDC Taloja Industrial Area, Taloja, District Raigad-410208, Maharashtra, India
Tel. No.:	91-22-27412387
Fax No.:	91-22-27411097

DIRECTORS

As on 29.09.2010

Name :	Mr. Sevantilal Shantilal Kapashi
Designation :	Director
Address :	703, Pleasant Palace, 16, N. D. Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	12.03.1935
Date of Appointment :	03.04.2006
DIN No.:	00008435
directorship in other companies :	Kapashi Commercial Limited Taloja steel Limited Nishuvi Trading and Investment Private Limited Shreeji Investment Private Limited Runisha Commercial Private Limited

Name :	Mr. Indukumar Shantilal Kapashi
Designation :	Director
Address :	503, Pleasant Palace, 16, N D Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	03.01.1936
Date of Appointment :	03.04.2006
DIN No.:	00008413

Name :	Mr. Paresh Sevantilal Kapashi
Designation :	Managing Director
Address :	703, Pleasant Palace, 16, N D Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	10.02.1966
Qualification :	B.E., MBA
Experience :	24 Years
Date of Appointment :	03.04.2006
DIN No.:	00008486
directorship in other companies :	CIN of company: U51900MH1985PLC037452 Name of the company: Kapashi Commercial Limited Designation: Director CIN of company: U27107MH1995PTC090193 Name of the company: Taloja steel Limited Designation: Managing Director CIN of company: U99999MH1985PTC036721 Name of the company: Nishuvi Trading and Investment Private Limited Designation: Director CIN of company: U65990MH1992PTC065170 Name of the company: Shreeji Investment Private Limited Designation: Director CIN of company: U50400MH1989PTC054707 Name of the company: Runisha Commercial Private Limited

Partnership held in partnership firm :	Name of the partnership firm: Indu Corporation Address: Nishuvi, 4^th Floor, 75, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra, India

Name :	Mr. Nimish Indubhai Kapashi
Designation :	Managing Director
Address :	Shakuntala Building, (Pleasant Palace), Flat No. 503, Narayan Dabholkar Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	18.06.1970
Qualification :	B.Com
Experience :	12 Years
Date of Appointment :	03.04.2006
DIN No.:	00073665
directorship in other companies :	CIN of company: U51900MH1985PLC037452 Name of the company: Kapashi Commercial Limited Designation: Director CIN of company: U27107MH1995PTC090193 Name of the company: Taloja steel Limited Designation: Joint Managing Director CIN of company: U99999MH1985PTC036721 Name of the company: Nishuvi Trading and Investment Private Limited Designation: Director CIN of company: U65990MH1992PTC065170 Name of the company: Shreeji Investment Private Limited Designation: Director CIN of company: U70102MH1989PTC053258 Name of the company: Namisha Developers Private Limited Designation: Director CIN of company: U65990MH1994PTC081524 Name of the company: Chandeshwari Trading and Finance Private Limited Designation: Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders	No. of Shares
Kapashi S. Paresh	380000
Kapashi I. Nimish	380000
Kapashi S. Sevantilal	390000
Kapashi S. Indukumar	390000
Kapashi S. Sushila	210000
Nitina I. Kapashi	210000
Kapashi P. Nandini	20000
Kapashi N. Bhakti	20000
Total	2000000

As on 29.09.2010

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

BUSINESS DETAILS

Line of Business :

Trader, Distributor and Importer of Zinc, Steel Products and Other Ferrous and Non-Ferrous Metals.

Products :

Item Code No. (ITC Code)	7214.10
Product Description	Other Bars and Rods of Iron or Non-Alloy not further worked then forged, hot rolled or not extruded, but including those
Item Code No. (ITC Code)	7901.
Product Description	Other Bars and Rods of zinc not further worked then forged, hot rolled or not extruded, but including those

Agencies Held :

Tata Tiscon Rebars (Distributor)
Tata Structura

Imports :

Products :

Steel Products

Countries :

African Counties

Terms :

Selling :

Cash and Credit (30/ 60/ 90 Days)

Purchasing :

Cash and Credit (30/ 60/ 90 Days)

GENERAL INFORMATION

Customers :

End Users, OEM’s and Manufacturer

No. of Employees :

55 (Approximately)

Bankers :

v Oriental Bank of Commerce Limited, Opera House Branch, Shreejee Chambers, Tata Road No. 2, Opera House, Mumbai – 400 004, Maharashtra, India

v HDFC Bank Limited

v ICICI Bank Limited

Facilities :

Cash Credit – Rs.1550.000 millions

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
HDFC Bank- Car Loan	0.079	0.367
ICICI Bank Car Loan	7.338	0.504
Oriental Bank of Commerce Limited	(0.047)	0.945
Axis Bank	2.358	0.000
(Secured by Hypothecation of stocks, stores, receivables and collateral security personal guarantee of all directors )
Total	9.728	1.816

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Shareholders and Others	141.886	102.924
From Corporate/ Banks	103.602	64.246
Total	245.488	167.170


Banking Relations :	--

Auditors :
Name :	Vinod K. Mehta and Company Chartered Accountants
Address :	B-22, Shanker Vijay, 1-Rajwadi, Ghatkopar (East), Mumbai – 400 077, Maharashtra, India

Enterprise over which Key Managerial Personnel are able to exercise significant influence :	v Nishuvi Corporation v Kapashi Commercial Limited v Nishuvi Trading and Investment Private Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 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		20.000	20.000	20.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		335.436	264.315	20.876
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		355.436	284.315	40.876
LOAN FUNDS
1] Secured Loans		9.728	1.816	40.170
2] Unsecured Loans		245.488	167.170	109.496
TOTAL BORROWING		255.216	168.986	149.666
DEFERRED TAX LIABILITIES		2.356	2.563	0.000

TOTAL		613.008	455.864	190.542

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		266.804	258.537	4.179
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		17.379	15.751	29.399
DEFERREX TAX ASSETS		0.000	0.000	0.188

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	165.495	123.774	101.526
	Sundry Debtors	764.153	451.019	239.846
	Cash & Bank Balances	48.780	2.932	30.957
	Other Current Assets	86.414	64.648	25.504
	Loans & Advances	33.682	63.986	97.506
Total Current Assets		1098.524	706.359	495.339
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	40.859	40.481	45.192
	Other Current Liabilities	714.560	478.181	291.576
	Provisions	14.397	6.316	2.067
Total Current Liabilities		769.816	524.978	338.835
Net Current Assets		328.708	181.381	156.504

MISCELLANEOUS EXPENSES		0.117	0.195	0.272

TOTAL		613.008	455.864	190.542

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	4743.514	4289.269	2560.354
		Other Income
		TOTAL (A)	4743.514	4289.269	2560.354

Less	EXPENSES
		Office Expenses	4590.648	4202.251	2512.720
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	4590.648	4202.251	2512.720

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		152.866	87.018	47.634

Less	INTEREST & FINANCIAL EXPENSES (D)		39.292	37.724	23.755

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		113.574	49.294	23.879

Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.160	5.634	1.148

	PROFIT BEFORE TAX (E-F) (G)		107.414	43.660	22.731

Less	TAX (H)		36.293	15.781	8.526

	PROFIT AFTER TAX (G-H) (I)		71.121	27.879	14.205

	BALANCE CARRIED TO THE B/S		71.121	27.879	14.205

	IMPORTS
		Trading Goods	1496.217	674.218	499.126
	TOTAL IMPORTS		1496.217	674.218	499.126

	Earnings Per Share (Rs.)		35.56	13.94	7.10

Particulars

31.03.2011

(Approximately)

Sales Turnover

5000.000

Expected Sales (2011-2012): Rs.5500.000 millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.26	0.65	0.55

Return on Total Assets (PBT/Total Assets}	(%)	7.87	4.52	4.55

Return on Investment (ROI) (PBT/Networth)		0.30	0.15	0.56

Debt Equity Ratio (Total Liability/Networth)		2.88	2.44	11.95

Current Ratio (Current Asset/Current Liability)		1.43	1.34	1.46

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

31.03.2008

(Rs. in millions)

Sundry Creditors

40.859

40.481

45.192

WORKING RESULT:

The Sales for the year ended 31st March, 2010 amounted to Rs.4880.793 millions compared to Rs.4544.345 millions in the previous year, reflecting a growth of 7.40%. Due to improved turnover and reduced cost of overheads, the net profit of the Company has increased by more than 100% compared to the previous year.

Bankers Charges Report as per Registry

Corporate identity number of the company	U27104MH2006PTC160932
Name of the company	INDU CORPORATION PRIVATE LIMITED (PART-IX)
Address of the registered office or of the principal place of business in India of the company	Nishuvi, 4^th Floor, 75, Dr. Annie Besant Road, Worli, Mumbai - 400018, Maharashtra, India E-Mail: mail@talojasteel.com
This form is for	Modification of charge
Charge identification number of the modified	10047705
Type of charge	Book Debts Movable Property Others - Stocks, Current and Future assets etc.
Particular of charge holder	Oriental Bank of Commerce Limited, Opera House Branch, Shreejee Chambers, Tata Road No. 2, Opera House, Mumbai-400004, Maharashtra, India Email ID: emailroc@rediffmail.com
Nature of instrument creating charge	Supplemental Agreement to Secure Credit/ Loan Facilities.
Date of instrument Creating the charge	15.03.2010
Amount secured by the charge	Rs.1550.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest PLR -0.50% i.e. 11.50 % p.a. or such other rate as agreed between the borrower company and the bank from time to time. Penal int. @ 2% p.a. over and above the normal int. rate in case of default. Terms of Repayment Repayment, as agreed between the borrower company and the bank from time to time. Margin Margin Rate, as agreed between the borrower company and the bank from time to time. Extent and Operation of the charge At the request of the borrower company, the bank has enhanced Letter of Credit limit upto Rs.1550.000 millions [Sub-limit Cash Credit Rs.70.000 millions, Demand Loan (FCL) Foreign Currency USD 1 Million and Bank Guarantee Rs.50.000 millions] against Hypothecation of Stock of iron and steel etc and receivables, current and future assets, Documents of title to goods, Hypothecation charge over the goods in case of LC on DA basis etc. The Charge stands modified upto Rs.1550.000 millions
Short particular of the property or asset(s) charged	i) Hypothecation of Stock of iron and steel etc and receivables. ii) Exclusive charge on all current and future assets. iii) Documents of title to goods in case of LC on DP basis. iv) Documentary demand / usance bills drawn under LC with RRs / TRs in case of upcountry parties or receipt challans and invoices in case of local parties covering consignment of goods. v) Hypothecation charge over the goods in case of LC on DA basis (Documents to be delivered against trust receipts in case of LC on DA basis)

Contingent Liabilities: - (As on 31.03.2010)

Letter of Credit outstanding amounting to Rs.707.500 millions

FIXED ASSETS

· Land

· Furniture

· New Shed (Leaseout)

· Computer

· Factory Shed

· Machinery

· Office Equipments

· Vehicle

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.51.44
UK Pound	1	Rs.81.96
Euro	1	Rs.67.60

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.