MIRA INFORM REPORT

Report Date :

14.04.2012

IDENTIFICATION DETAILS

Name :	CONROS STEELS PRIVATE LIMITED
Registered Office :	44 A, Dheeraj Heritage, Second Floor, S V Road, Santacruz (West), Mumbai-400054, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	11.01.2005
Com. Reg. No.:	11-150550
Capital Investment / Paid-up Capital :	Rs.71.879 Millions
CIN No.: [Company Identification No.]	U51420MH2005PTC150550
IEC No.:	0304083917
TAN No.: [Tax Deduction & Collection Account No.]	MUMC13464D
PAN No.: [Permanent Account No.]	AACCC5103B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of galvanized pipes, etc.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 4160000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. 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. Note: Earlier when we prepared a report the status of the company was shown as a “Dormant”. But now the company is very much “Active”.

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. Vaibhav
Designation :	Assistant General Manager in Accounts
Contact No.:	91-9323609601
Date :	12.04.2012

LOCATIONS

Registered Office :	44 A, Dheeraj Heritage, Second Floor, S V Road, Santacruz (West), Mumbai-400054, Maharashtra, India
Tel. No.:	91-22-26615454
Mobile No.:	91-9323609601 (Mr. Vaibhav)
Fax No.:	91-22-26605454
E-Mail :	secretarial@conros-group.com recruit@conros-group.com kalpesh@conros-group.com info@conros-group.com sanjay@conros-group.com
Website :	www.conros-group.com
Area:	Owned
Factory :	Survey No. 26. 27, 28 and 12, Ajiwali Phata, Village Vanavathe, Khopoli Pen Road, Taluka- Khalapur, District Raigad – 410202, Maharashtra, India
Tel. No.:	91-2192-278574/ 382
Fax No.:	91-2192-278346
E-Mail :	info@conros-group.com
Area:	Owned
Texas , USA :	Conros Americas, LLC. One Riverway, Suite 1700 Houston, TX. 77056
Tel No.:	(713) -840-6334
Fax No.:	(713) -300-3764

DIRECTORS

As on 11.07.2011

Name :	Mr. Shehzad Shabbirali Hemani
Designation :	Director
Address :	8 B, Chand Terraces, St. Andrews Road, Bandra, Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	21.08.1979
Qualification :	B.Com, MBA
Date of Appointment :	11.01.2005
DIN No.:	00206558
Name :	Mr. Porus Pervez Buhariwala
Designation :	Director
Address :	8 B, Chand Terraces, St. Andrews Road, Bandra, Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	27.08.1979
Qualification :	B.Com., MBA
Date of Appointment :	17.03.2006
DIN No.:	00162019

KEY EXECUTIVES

Name :	Mr. Vaibhav
Designation :	Assistant General Manager in Accounts

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 11.07.2011

Names of Shareholders	No. of Shares
Shehzad S Hemani	6480562
Shaheen Z Babul	707383
Total	7187945

Equity Share Break up (Percentage of Total Equity)

As on 11.07.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of galvanized pipes, etc.

Products :

Product Description	ITC Code
Black and Galvanized Steel Tubes and Pipes	73061020 and 73061019

· Water, Gas and Air Pipelines

· Black and Zinc Coated Pipes

· Black Steel Pipes

· Fence Tube

· Welded Steel Tubes

Exports :

Products :

Galvanized Pipes

Countries :

· Germany

· Belgium

· Australia

Imports :

Products :

Raw Material

Countries :

· Iran

· France

· Belgium

Terms :

Selling :

Cash/ Credit

Purchasing :

L/C/ Cash/ Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

300 (Approximately)

Bankers :

· Bank of India, Andheri Corporate Banking Branch, M.D.I. Building, 1st Floor, 28-S.V. Road, Andheri (West), Mumbai – 400056, Maharashtra, India

· State Bank of India,

· Commercial Branch, Bullet, Lakhamshi Nappu Road, Opposite Raje Sivaji Vidyalaya, Dadar (East), Mumbai – 400014, Maharashtra, India

· State Bank of India, MID Corporate Loan Administration Unit, Shri Hari Building, RTO Lane, Four Bungalows, Andheri (West), Mumbai – 400053, Maharashtra, India

· Export Import Bank of India, Centre One Building, Floor 21, World Trade Centre Complex, Cuff Parade, Mumbai-400005, Maharashtra, India

Facilities :

Fund Base – Rs.100.000 Millions, Non Fund Base – 200.000 Millions (Bank of India)

Fund Base – Rs.150.000 Millions (State Bank of India)

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee Term loans banks	653.100	31.184
Working capital loans	610.020	469.592
Total	1263.120	500.776
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Loans directors unsecured	200.115	5.615
Total	200.115	5.615

Banking Relations :	--
Auditors :
Name :	Arun Kumar Shah and Company Chartered Accountants
Address :	B/14, Diamond Twins CHS, S.V. Road, Poisar, Kandivali (West), Mumbai-400067, Maharashtra, India
Tel. No.:	91-22-28058993
PAN.:	AAIPS0205R
Group Companies : (As On 31.03.2008)	· Mashreq Steel Industries Private Limited Address: 2-44, Dheeraj Heritage, S V Road, Santacruz (West), Mumbai-400054, Maharashtra, India Line of Business: Manufacturer of Black ERW Steel Tubes and Pipes

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs.10/- each	Rs.110.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7187945	Equity Shares	Rs.10/- each	Rs.71.879 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		71.879	71.879
2] Share Application Money		100.000	0.000
3] Reserves & Surplus		868.764	713.465
4] (Accumulated Losses)		0.000	0.000
NETWORTH		1040.643	785.344
LOAN FUNDS
1] Secured Loans		1263.120	500.776
2] Unsecured Loans		200.115	5.615
TOTAL BORROWING		1463.235	506.391
DEFERRED TAX LIABILITIES		6.167	6.665
TOTAL		2510.045	1298.400
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		188.784	207.260
Capital work-in-progress		0.000	0.000
INVESTMENT		0.100	0.100
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1961.763	1692.126
	Sundry Debtors	1095.184	587.225
	Cash & Bank Balances	212.952	168.609
	Other Current Assets	0.000	0.000
	Loans & Advances	254.301	0.000
Total Current Assets		3524.200	2447.960
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2032.691	0.000
	Other Current Liabilities	0.722	1281.135
	Provisions	89.373	146.040
Total Current Liabilities		2122.786	1427.175
Net Current Assets		1401.414	1020.785
MISCELLANEOUS EXPENSES		0.064	19.025
OTHER ASSETS		919.683	51.230
TOTAL		2510.045	1298.400

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Income	5801.300	4536.800
		Other Income
		TOTAL (A)	5801.300	4536.800
Less	EXPENSES
		Increase/ (Decrease) in Inventory	(269.600)	(845.000)
		Material and Manufacturing Cost	5468.800	4966.400
		Administrative Expenses	41.700	43.600
		Selling and Distribution	55.400	60.300
		Preliminary Expenses	0.000	0.100
		TOTAL (B)	5296.300	4225.400
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		505.000	311.400
Less	FINANCIAL EXPENSES (D)		282.600	121.800
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		222.400	189.600
Less/ Add	DEPRECIATION/ AMORTISATION (F)		28.600	33.800
	PROFIT BEFORE TAX (E-F) (G)		193.800	155.800
Less	TAX (H)		38.500	54.600
	PROFIT AFTER TAX (G-H) (I)		155.300	101.200
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		310.400	220.100
	BALANCE CARRIED TO THE B/S		465.700	321.300
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	3182.500	1883.200
	IMPORTS
		Raw Materials	2214.300	2413.700
	Earnings Per Share (Rs.)		21.61	14.45

Particulars	31.03.2012
Sales Turnover (Approximately)	5820.000

Expected Sales (2012-13) : Rs.6000.000 Millions

The above information has been parted by Mr. Vaibhav.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010
PAT / Total Income	(%)	2.67	2.23
Return on Total Assets (PBT/Total Assets}	(%)	5.22	5.87
Return on Investment (ROI) (PBT/Networth)		0.19	0.19
Debt Equity Ratio (Total Liability/Networth)		3.44	2.46
Current Ratio (Current Asset/Current Liability)		1.66	1.72

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

(Rs. in Millions)

PARTICULARS	31.03.2011	31.03.2010
Creditors due small micro enterprises	0.000	0.000
Creditors due others	2032.691	0.000
Total	2032.691	0.000

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last two years	Yes
12) Profitability for last three two years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

Bankers Charges Report as per Registry

Corporate identity number of the company	U51420MH2005PTC150550
Name of the company	CONROS STEELS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	44 A, Dheeraj Heritage, Second Floor, S V Road, Santacruz (West), Mumbai-400054, Maharashtra, India Email : secretarial@conros-group.com
This form is for	Creation of charge
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	Export Import Bank of India, Centre One Building, Floor 21, World Trade Centre Complex, Cuff Parade, Mumbai-400005, Maharashtra, India Email : cbg@eximbankindia.in
Nature of instrument creating charge	Deed of Hypothecation dated 05.12.2011, a copy attached hereto, executed by Conros Steels Private Limited (Company) in favour of Export-Import Bank of India (Exim Bank) for its facility of Rs.200.000 Millions
Date of instrument Creating the charge	05.12.2011
Amount secured by the charge	Rs.200.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 12.00% p.a. + 2%p.a. over and above the applicable rate payable in case of default in payment of principal, interest or any other monies on respective due dates, subject to reset Terms of Repayment To be liquidated out of export proceeds or within 180 days from the date of disbursement, whichever is earlier Margin Nil Extent and Operation of the charge The Charge shall operate as a first pari-passu charge on entire current assets of the Company both present and future including receivables being financed out of EXIM bank's credit facility and as a second pari-passu charge over the entire fixed assets of the Company including immoveable properties both present and future
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First pari passu charge on the entire current assets of the Company both, present and future including receivables being financed out of Exim Bank's Pre-Post Shipment Credit Facility Second pari passu charge on the entire fixed assets of the Company, both present and future

Fixed Assets

· Land

· Office Premises

· Furniture and Fixtures

· Motor Car

· Computer

· Office Equipments

· Factory Building

· Plant and Machinery

· Electrical Installation

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.51.41
UK Pound	1	Rs.81.93
Euro	1	Rs.67.66

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	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.