MIRA INFORM REPORT

Report Date :

21.12.2012

IDENTIFICATION DETAILS

Name :	INDUS TUBES LIMITED
Registered Office :	B - 08, GD - ITL Tower, Top Floor, Netaji Subhash, Place, Wazirpur District Centre, Pitampura, Delhi – 110034, Delhi, India
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	12.10.1987
Com. Reg. No.:	55-029462
Capital Investment / Paid-up Capital :	Rs. 15.000 Millions
CIN No.: [Company Identification No.]	U74899DL1987PLC029462
PAN No.: [Permanent Account No.]	AAACI0015L
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers of Steel Tubes and Pipes
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is the Flagship company of the ITL GROUP. It is an established company having a moderate track record. The latest financials are not made available with the government department. As per previous year’s record, there appears modest profitability and low cash accruals which leads to weak debt protection. However, trade relations are reported to be fair. Business is active. Payments are unknown. The company can be considered for business dealings with some caution.

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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BB – (Cash Credit)
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation.
Date	September 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	B - 08, GD - ITL Tower, Top Floor, Netaji Subhash, Place, Wazirpur District Centre, Pitampura, Delhi – 110034, Delhi, India
Tel. No.:	91-11-27352981/84
Fax No.:	91-47002413/ 27352985
E-Mail :	industubes@rediffmail.com industubes@yahoo.com arvindkjain_industubes@yahoo.in
Website :	www.industubes.com
Factory :	Located at Gaziabad

DIRECTORS

As on: 25.09.2012

Name :

Mr. Gopi Kishan Jaju

Designation :

Managing director

Address :

ND 24, Pitampura, Delhi (West), Delhi – 110088, Delhi, India

Date of Birth/Age :

28.08.1941

Qualification :

Graduate

Date of Appointment :

01.09.2010

Voter ID No.:

DL\03\019\027798

DIN No.:

00142508

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1995PLC069802	ITL STOCK AND SHAREBROKERS LIMITED	Director	15-06-95	15-06-95	-	Active	NO
2	U51909AS1988PTC002883	GUWAHATI MERCANTILES PRIVATE LIMITED	Director	02-09-96	02-09-96	-	Active	NO
3	U45201AS1996PLC004920	INDUS BUILDWELL LIMITED	Director	10-12-96	10-12-96	-	Active	NO
4	U74899DL1995PLC074591	G.D. TRAEXIM INTERNATIONAL LIMITED	Director	24-06-97	24-06-97	-	Active	NO
5	U45200DL1995PLC071617	INDO JATALIA COMMODITIES LIMITED	Director	05-08-97	05-08-97	15-07-03	Active	NO
6	U70101AS1999PTC005907	JAJU REAL ESTATES PRIVATE LIMITED	Director	26-10-99	26-10-99	-	Active	NO
7	U72200DL1999PLC102499	ITL INFOTECH LIMITED	Director	22-11-99	22-11-99	-	Active	NO
8	U74899DL2000PLC104593	ITL EDUCATION SOLUTIONS LIMITED	Director	08-05-00	08-05-00	-	Active	NO
9	U70101AS2002PTC006907	YAMUNA PLANNERS AND DEVELOPERS PRIVATE LIMITED	Director	16-05-03	16-05-03	-	Active	NO
10	U74899DL1987PLC029462	INDUS TUBES LIMITED	Managing director	01-09-10	15-11-04	-	Active	NO
11	U51102DL1981PTC012404	SIDDHARTHA EAST PRIVATE LIMITED	Director	06-12-04	06-12-04	-	Active	NO
12	U74210DL1997PTC090614	GD CONTRACTORS PRIVATE LIMITED	Director	01-06-05	01-06-05	-	Active	NO
13	U45201RJ2008PTC025737	GREEN TRIVENI DEVELOPERS PRIVATE LIMITED	Director	23-01-08	23-01-08	-	Active	NO
14	U74899DL1970PLC005358	ITL UDYOG LIMITED	Director	06-07-11	25-01-11	-	Active	NO

Name :

Mr. Bajrang Lal Gupta

Designation :

Director

Address :

A1 Bhagwandas Nagar, Punjabi Bagh East, Delhi (West), Delhi – 110026, Delhi, India

Date of Birth/Age :

05.03.1949

Qualification :

Graduate

Date of Appointment :

30.08.2009

Voter ID No.:

SZM0799601

DIN No.:

00143031

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1984PTC017810	AKASH BROTHERS TRADING PRIVATE LIMITED	Director	21-09-94	21-09-94	-	Active	NO
2	U74899DL1995PLC069802	ITL STOCK AND SHAREBROKERS LIMITED	Director	15-06-95	15-06-95	-	Active	NO
3	U74899DL1986PTC026350	VIKAS SALES PRIVATE LIMITED	Director	19-06-97	19-06-97	-	Active	NO
4	U45200DL1995PLC071617	INDO JATALIA COMMODITIES LIMITED	Director	05-08-97	05-08-97	15-07-03	Active	NO
5	L65910DL1991PLC045090	ITL FINLEASE AND SECURITIES LIMITED	Director	01-04-98	01-04-98	-	Active	NO
6	U64202AS1997PLC005152	APEX NETWORK LIMITED	Director	15-06-99	15-06-99	-	Active	NO
7	U74210DL1997PTC090614	GD CONTRACTORS PRIVATE LIMITED	Director	13-08-99	13-08-99	-	Active	NO
8	U74899DL2000PLC104593	ITL EDUCATION SOLUTIONS LIMITED	Director	22-03-00	22-03-00	-	Active	NO
9	U74899DL1987PLC029462	INDUS TUBES LIMITED	Director	30-08-09	30-08-04	-	Active	NO
10	U74899DL1970PLC005358	ITL UDYOG LIMITED	Additional director	23-05-07	23-05-07	25-01-11	Active	NO
11	U45201RJ1992PTC006769	TRIVENI WELL BUILDEV COMPANY PRIVATE LIMITED	Additional director	03-06-08	03-06-08	31-08-09	Active	NO

Name :

Mr. Kailash Jajodia

Designation :

Director

Address :

72, Vaishali, Pitampura, Delhi (West), Delhi – 110088, Delhi, India

Date of Birth/Age :

19.02.1954

Qualification :

Graduate

Date of Appointment :

15.11.2009

Voter ID No.:

DL\03\019\015278

DIN No.:

00142836

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L65910DL1991PLC045090	ITL FINLEASE AND SECURITIES LIMITED	Director	25-07-91	25-07-91	-	Active	NO
2	U74899DL1994PTC057666	RADIUM EXPORTS PRIVATE LIMITED	Director	01-09-95	01-09-95	20-03-10	Active	NO
3	U45201AS1996PLC004920	INDUS BUILDWELL LIMITED	Director	10-12-96	10-12-96	-	Active	NO
4	U74899DL1995PLC074591	G.D. TRAEXIM INTERNATIONAL LIMITED	Director	24-06-97	24-06-97	-	Active	NO
5	U25209AS1982PTC001926	EASTERN TUBE CO PRIVATE LIMITED	Director	06-11-97	06-11-97	-	Active	NO
6	U74899DL1987PTC028158	VISHAKHA BUILDERS PRIVATE LIMITED	Director	14-11-97	14-11-97	-	Active	NO
7	U51909AS1988PTC002881	NEZONE TRADING CO. PRIVATE LIMITED	Director	31-12-97	31-12-97	-	Active	NO
8	U70101AS1998PLC005512	NORTHEX ESTATES LIMITED	Director	31-08-98	31-08-98	-	Active	NO
9	U64202AS1997PLC005152	APEX NETWORK LIMITED	Director	15-06-99	15-06-99	-	Active	NO
10	U28121RJ1981PTC002328	KALSON ENGINEERING INDS PRIVATE LIMITED	Director	14-07-99	14-07-99	-	Active	NO
11	U70101AS1999PTC005908	JAJODIA REAL ESTATES PRIVATE LIMITED	Director	26-10-99	26-10-99	-	Active	NO
12	U72200DL1999PLC102499	ITL INFOTECH LIMITED	Director	22-11-99	22-11-99	-	Active	NO
13	U70101AS2002PTC006907	YAMUNA PLANNERS AND DEVELOPERS PRIVATE LIMITED	Director	20-03-03	20-03-03	-	Active	NO
14	U74899DL1987PLC029462	INDUS TUBES LIMITED	Director	15-11-09	15-11-04	-	Active	NO
15	U74899DL2000PLC104593	ITL EDUCATION SOLUTIONS LIMITED	Director	04-09-10	01-04-10	-	Active	NO

Name :

Mr. Ishwar Prakash Jain

Designation :

Director

Address :

MD 14, Pitampura, Delhi (West), Delhi – 110088, Delhi, India

Date of Birth/Age :

22.11.1944

Date of Appointment :

15.11.2009

Voter ID No.:

DL\03\019\024136

DIN No.:

00161727

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1990PTC041101	I P POLYMERS PRIVATE LIMITED	Director	08-08-90	08-08-90	-	Active	NO
2	U74899DL1995PLC069802	ITL STOCK AND SHAREBROKERS LIMITED	Director	15-06-95	15-06-95	-	Active	NO
3	L65910DL1991PLC045090	ITL FINLEASE AND SECURITIES LIMITED	Director	01-09-95	01-09-95	-	Active	NO
4	U45201AS1996PLC004920	INDUS BUILDWELL LIMITED	Director	10-12-96	10-12-96	-	Active	NO
5	U74899DL1986PTC026350	VIKAS SALES PRIVATE LIMITED	Director	19-06-97	19-06-97	-	Active	NO
6	U64202AS1997PLC005152	APEX NETWORK LIMITED	Director	20-08-97	20-08-97	-	Active	NO
7	U45201DL1997PLC089171	G D BUILDWELL LIMITED	Director	10-11-98	10-11-98	-	Active	NO
8	U74899DL1970PLC005358	ITL UDYOG LIMITED	Director	01-03-99	01-03-99	-	Active	NO
9	U72200DL1999PLC102499	ITL INFOTECH LIMITED	Director	22-11-99	22-11-99	-	Active	NO
10	U28121RJ1981PTC002328	KALSON ENGINEERING INDS PRIVATE LIMITED	Director	31-07-00	31-07-00	-	Active	NO
11	U74899DL1987PLC029462	INDUS TUBES LIMITED	Director	15-11-09	15-11-04	-	Active	NO
12	U74210DL1997PTC090614	GD CONTRACTORS PRIVATE LIMITED	Director	02-08-11	16-08-10	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 25.09.2012

SHAREHOLDING DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on: 25.09.2012

Category	Percentage
Bodies corporate	61.04
Directors or relatives of directors	22.98
Other top fifty shareholders	15.98
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Steel Tubes and Pipes

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Punjab National Bank, Gurudwara Road, Karol Bagh, New Delhi – 110005, Delhi, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Borrowings	150.481	155.991
Total	150.481	155.991
Unsecured Loan	As on 31.03.2012	As on 31.03.2011
Borrowings	30.245	23.709
Total	30.245	23.709

Banking Relations :	--
Auditors :
Name :	S.C. Verma And Associates Chartered Accountants
Address :	A-3/183 First Floor, Paschim Vihar, New Delhi - 110 063, Delhi, India
PAN No.:	AAJFS7555H
Associates :	ITL Infotech Limited ITL Stock and Share Brokers Limited Indus Buildwell Limited G.D. Traexim International Limited ITL Finlease and Securities Limited G.D. Contractors Private Limited ITL Udyog Limited G.D. Buildwell Limited Vikas Sales Private Limited Northex Estates Limited A.S.P. Technology Private Limited Apex Network Limited ITL Education Solutions Limited

CAPITAL STRUCTURE

As on: 25.09.2012

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
1500000	Equity Shares	Rs.10/- each	Rs. 15.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		15.000	15.000	15.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		108.613	104.196	101.032
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		123.613	119.196	116.032
LOAN FUNDS
1] Secured Loans		150.481	155.991	152.868
2] Unsecured Loans		30.245	23.709	30.843
TOTAL BORROWING		180.726	179.700	183.711
DEFERRED TAX LIABILITIES		5.898	6.436	7.030
TOTAL		310.237	305.332	306.773
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		33.271	27.533	27.891
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		11.948	12.350	13.017
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	139.491	127.965	137.787
	Sundry Debtors	211.823	163.084	134.514
	Cash & Bank Balances	9.168	32.206	18.761
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	20.678	29.510	48.204
Total Current Assets		381.160	352.765	339.266
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	106.396	59.769	47.433
	Other Current Liabilities	1.661	16.714	19.989
	Provisions	8.085	10.833	5.979
Total Current Liabilities		116.142	87.316	73.401
Net Current Assets		265.018	265.449	265.865
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		310.237	305.332	306.773

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1148.406	965.944	930.303
		Other Income	3.118	1.773	2.857
		TOTAL (A)	1151.524	967.717	933.160
Less	EXPENSES
		Cost of materials consumed	973.330	757.788	787.863
		Manufacturing service costs	0.000	0.000	85.217
		Contract cost	0.000	0.000	2.361
		Purchases of stock-in-trade	88.836	122.067	0.000
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(15.330)	7.417	0.000
		Employee benefit expense	12.841	12.405	12.705
		Other expenses	50.875	36.568	18.568
		TOTAL (B)	1110.552	936.245	906.714
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		40.972	31.472	26.446
Less	FINANCIAL EXPENSES (D)		31.262	22.046	18.580
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.710	9.426	7.866
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.237	3.157	2.365
	PROFIT BEFORE TAX (E-F) (G)		6.473	6.269	5.501
Less	TAX (H)		2.056	3.105	1.760
	PROFIT AFTER TAX (G-H) (I)		4.417	3.164	3.741
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		95.040	91.876	88.135
	BALANCE CARRIED TO THE B/S		99.457	95.040	91.876
	Earnings Per Share (Rs.)		2.94	2.11	1.96

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.38	0.33	0.40
Net Profit Margin (PBT/Sales)	(%)	0.56	0.65	0.59
Return on Total Assets (PBT/Total Assets}	(%)	1.56	1.65	1.49
Return on Investment (ROI) (PBT/Networth)		0.05	0.05	0.05
Debt Equity Ratio (Total Liability/Networth)		2.40	2.24	2.22
Current Ratio (Current Asset/Current Liability)		3.28	4.04	4.62

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	Yes
34]	External Agency Rating, if available	Yes

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	90033148
Corporate identity number of the company	U74899DL1987PLC029462
Name of the company	INDUS TUBES LIMITED
Address of the registered office or of the principal place of business in India of the company	B - 08, GD - ITL Tower, Top Floor, Netaji Subhash Place, Wazirpur District Centre, Pitampura, Delhi – 110034, Delhi India industubes@rediffmail.com
Type of charge	Immovable property Book debts Movable property (not being pledge) Others
Particular of charge holder	Punjab National Bank, Gurudwara Road, Karol Bagh, New Delhi – 110005, Delhi, India bo0120@pnb.co.in
Nature of description of the instrument creating or modifying the charge	Agreement for Hypothecation of Goods and Book Debts to secure Cash Credit facility Hypothecation of Current Assets Hypothecation of Movable Assets forming part of Fixed Block Assets Agreement of Guarantee Deed of Hypothecation to Secure LC on DA Basis General Counter indemnity Packing Credit Agreement
Date of instrument Creating the charge	06.01.2012
Amount secured by the charge	Rs. 340.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of interest Rate of interest shall be 4% over prevailing Base Rate 10.75% i.e 14.75% p.a Terms of repayment The Limits shall be subject to renewal. Margin Stocks-25% Book Debts-40% Extent and operation of the charge The agreement shall operate as a continuing security for the balance or balances to the bank and all other monies due by the borrower. Others Sub Limit against Cash Credit (Book Debts) increased from Rs. 87.500 Millions to Rs. 107.500 Millions. Sub Limit of FLC/ ILC (Standby LC up to 180 days for Sail) increased from Rs.87.500 Millions to Rs. 107.500 Millions
Short particulars of the property charged	The Limits shall be secured by Hypothecation of all present and future raw materials, raw materials including excisable raw materials, stock in process, semi finished goods, finished goods including bought out finished goods viz HR coil, Skip Zinc allumunium, lead stocks, rolls, Black GI pipes etc and Book debts, outstanding decrees, money receivables, Govt Subsidies, claims, bill contracts and investments and all present and future Book Debts arising out of genuine Trade Transaction The Limit shall be secured by Hypothecation of all movable assets both present and future forming part of Fixed Block Assets and all other Current Assets (both present and future) of the Company The Limits shall be secured by Equitable Mortgage of properties situated at Khasra No-292A, 294,304(small),304(Big) Village- Chapprola, Dadri Ghaziabad (UP) and H-38/3, Sector-3, Nehru Nagar, Ghaziabad The Limits shall be secured by Equitable Mortgage of property situated at Khasra No-295 Village- Chapprola, Dadri Ghaziabad (UP) registered in name of M/s ITL Udyog Limited.
Date of latest modification prior to the present modification	14.09.2011
Particulars of the present modification	The existing fund based limits have been enhanced from Rs 140.000 Millions to Rs 160.000 Millions by Sanction of Cash Credit Limit of Rs 20.000 Millions. The Existing Non Fund Based Limits have been enhanced from Rs 160.000 Millions to Rs. 180.000 Millions. The Overall Fund Based and Non Fund Based Limits have been enhanced to Rs 340.000 Millions.

PERFORMANCE

During the current financial year, the Company has witnessed a growth of 19 % from 1059.770 Millions in financial year 2010-11 to Rs 1261.940 Millions in the financial year 2011-12 indicating the robust growth in steel pipes demand. The Earnings before taxes of the Company increased from Rs.6.269 Millions in the fiscal year 2010-11 to Rs.6.473 Millions in the financial year 2011-12. Consequently, the Company had shown a remarkable performance by turning around with a Profit after Tax for 2011-12 at Rs 4.417 Millions as compared to Rs 3.164 Millions in 2010-11. However, the Company did not enter into Export market this year as it had mainly focused in the domestic markets.

STEEL INDUSTRY

Steel industry is crucial to the development of any modern economy and is considered to be the backbone of human civilization. The level of per capita consumption of steel is treated as an important index of the level of socioeconomic development and living standards of the people in any country. It is a product of a large and technologically complex industry having strong forward and backward linkages in terms of material flows and income generation. All major industrial economies are characterized by the existence of a strong steel industry and the growth of many of these economies has been largely shaped by the strength of their steel industries in their initial stages of development. Indian Steel Industry plays as significant role in the country’s economic growth. India has one of the richest reserves of all the raw materials required for the industry, namely land, capital, cheap labour, iron ore, power, coal etc., yet India is the fifth largest steel producer at the global front and is struggling to become the second largest producer in the coming years provided all requirements for fresh capacity creation are met. Steel industry in India has witnessed rapid progress during the past few years. Even in the tough times of economic slowdown, the industry succeeded to sustain its positive growth momentum on the strong fundamentals of domestic demand from construction, automobile, and infrastructure sectors.

FUTURE PROSPECTS

In 2012, the global steel industry is expected to grow, albeit at a lower rate. Indian GDP is estimated at 7.6% in Financial Year 2012-13 as per Prime Minister’s Economic Advisory Council (PMEAC). Indian Steel demand is also expected to track GDP growth supported by easing interest rate cycle and resultant revival in infrastructure, construction, industrial and manufacturing sectors. Prediction of good monsoon in the current year, declining commodity prices globally and lower interest rates is positives to spur economic activity in the country. Notwithstanding, fragile recovery in US, sovereign debt crisis in Europe, and slow down in China, domestic demand/consumption is one of the primary drivers of Indian Economy , to be optimistic to show a GDP growth of above 7%.Steel demand will vary depending on the outlook for different regions and countries. Steel demand in developed regions such as the North America and Europe is forecast to be lower, but stronger economic growth in China, India, Brazil, Russia and South Korea indicate the likelihood of stronger steel demand from these regions. There are expectations that Steel demand in the country may exceed 10 percent at times, during the next 10-15 years horizon. India’s production capacity currently stands at around 80 MT. The capacity is expected to rise to over 150 MT by 2020 and India’s lower wages and favorable energy prices will continue to promise substantial cost advantages compared to production facilities in the developed countries.

The Company is always open to adopt innovative new techniques of product management at one hand and on the other it is impressing upon to improve its supply line. The production of the Company is mainly supplied to Government/Semi Government Departments/Undertakings/ Boards and other corporate entities.

FIXED ASSETS

• Land
• Building
• Plant and Equipments
• Furniture and Fixtures
• Vehicles
• Office Equipment

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 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 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. 54.84
UK Pound	1	Rs. 89.11
Euro	1	Rs. 72.47

INFORMATION DETAILS

Report Prepared by :

UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.