MIRA INFORM REPORT

Report Date :

17.01.2012

IDENTIFICATION DETAILS

Name :	SCODA TUBES LIMITED
Registered Office :	Survey No.1566/1, Village Rajpur, Taluka – Kadi, Mehsana – 382740, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	10.11.2008
Com. Reg. No.:	04-055392
Capital Investment / Paid-up Capital :	Rs.2.177 Millions
CIN No.: [Company Identification No.]	U28110GJ2008PLC055392
TAN No.: [Tax Deduction & Collection Account No.]	AHMS17603F
PAN No.: [Permanent Account No.]	AAMCS5287N
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the manufacturing of stainless steel seamless / Welded Tubes Pipes and U Tubes.
No. of Employees :	100 (Approximately)

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

Maximum Credit Limit :	USD 72000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a relatively new company having moderate 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. The company can be considered for business dealings with some cautions.

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. Bipin
Designation :	Accounts Manager
Mobile No.:	91-9099949785
Date :	13.01.2012

LOCATIONS

Registered Office :	Survey No.1566/1, Village Rajpur, Taluka – Kadi, Mehsana – 382740, Gujarat, India
Tel. No.:	91-2764-278278
Mobile No.:	91-9099949785 (Mr. Bipin) 91-9974152719 (Mr. Mahesh Patel)
Fax No.:	91-2764-278278
E-Mail :	info@scodatubes.com scodatubes@gmail.com sales@scodatubes.com mjpatel@scodatubes.com exports@scodatubes.com tejas@scodatubes.com (USA) project@scodatubes.com quality@scodatubes.com
Website :	http://www.scodatubes.com
Factory :	Survey No. 1568/1569, Tal. Kadi, Mehsana, Rajpur – 382740, Gujarat, India

DIRECTORS

As on 30.09.2011

Name :

Mr. Maheshkumar Jagjivan Patel

Designation :

Director

Address :

A01 Shivanand Apartments Behind Mandakini, Society K K Nagar Road Ghatlodia, Ahmedabad – 380061, Gujarat, India

Date of Birth/Age :

02.11.1980

Date of Appointment :

10.11.2008

DIN :

01592925

Other Directorship :

Sr.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	U27106GJ2006PTC049217	MAXIM TUBES COMPANY PRIVATE LIMITED	Director	10/10/2006	10/10/2006	20/06/2008	Active	NO
2	U28110GJ2008PLC055392	SCODA TUBES LIMITED	Director	10/11/2008	10/11/2008	-	Active	NO

Name :

Mr. Harshadkumar Somabhai Patel

Designation :

Director

Address :

4-5-40, Govind Chakla, At. Taluka Visnagar, Mehsana – 384315, Gujarat, India

Date of Birth/Age :

18.06.1968

Date of Appointment :

11.07.2011

DIN :

03347450

Name :

Mr. Dhanraj Ramchandra Khatri

Designation :

Director

Address :

At-Randheja, Gandhinagar – 382620, Gujarat, India

Date of Birth/Age :

04.03.1973

Date of Appointment :

10.11.2008

DIN :

02384079

Other Directorship :

Sr.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	U28110GJ2008PLC055392	SCODA TUBES LIMITED	Director	10/11/2008	10/11/2008	Active	NO
2	U45201GJ2011PTC065221	DK REAL INFRA PRIVATE LIMITED	Director	30/04/2011	30/04/2011	Active	NO
3	U45201GJ2011PTC065225	SCODA PROPERTIES PRIVATE LIMITED	Director	30/04/2011	30/04/2011	Active	NO
4	U45201GJ2011PTC065348	DK METRO PROCON PRIVATE LIMITED	Director	9/5/2011	9/5/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Maheshkumar Jagjivan Patel	140250
Dhanraj Ramchandra Khatri	18425
Upendrakumar C Davda	11250
Harshad Patel	8615
Suman Khatri	16250
Ranjanben Davda	1250
Vaishali Patel	10300
Kanubhai Patel	5000
Jashuben Patel	2500
Shankarbhai Patel	3930
Total	217770

As on 30.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the manufacturing of stainless steel seamless / Welded Tubes Pipes and U Tubes.

Products :

Item Code No.	--
Product Description	Steel Manufacturing

Exports :

Products :

· U Tubes

· Welded Pipes

Countries :

Europe

Imports :

Products :

Raw Material

Countries :

China

Terms :

Selling :

Cash, Credit

Purchasing :

Cash, Credit

GENERAL INFORMATION

Customers :

· Wholesalers

· Retailers

No. of Employees :

100 (Approximately)

Bankers :

Bank of India, Surendra Mangaldas Road Branch, 26-29 Galaxy Mall, Nr Shiromani Complex, S M Road, Ahmadabad – 380015, Gujarat, India

Facilities :

Secured Loan [Rs. in million]	31.03.2011	31.03.2010
Bank of India – Cash Credit Limits	15.957	0.000
Bank of India – Term Loan [All Cash Credit and term Loan Facilities are secured by equitable mortgage of Land Building, Plant and Machinery and Hypothecation of Current assets including Stock and book Debts of the company]	42.499	14.839
Total	58.456	14.839
Unsecured Loan [Rs. in million]	31.03.2011	31.03.2010
From Directors and Shareholders	5.602	0.182
Others	1.701	0.000
Total	7.303	0.182

Banking Relations :	--
Auditors :
Name :	Painter and Associates Chartered Accountant
Address :	6, Kashmira Flats, 11, Kashmira Society, Vishvakunj Paldi, Ahmedabad – 380007, Gujarat, India
Pan No.:	AALFP9137C

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/-each	Rs. 5.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
217770	Equity Shares	Rs.10/-each	Rs. 2.177 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

Particulars		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		2.177	1.780	0.500
2] Share Application Money		0.035	0.035	0.000
3] Reserves & Surplus		15.678	11.519	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		17.890	13.334	0.500
LOAN FUNDS
1] Secured Loans		58.456	14.839	0.000
2] Unsecured Loans		7.303	0.182	2.189
TOTAL BORROWING		65.759	15.021	2.189
DEFERRED TAX LIABILITIES		0.342	0.000	0.000
TOTAL		83.991	28.355	2.689
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		50.334	7.673	7.673
Capital work-in-progress		0.000	5.647	1.273
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	16.063	0.000	0.000
	Sundry Debtors	14.411	0.000	0.000
	Cash & Bank Balances	2.279	1.501	0.156
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	9.198	13.602	0.000
Total Current Assets		41.951	15.103	0.156
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6.867	1.656	6.450
	Other Current Liabilities	1.143	0.000	0.000
	Provisions	1.628	0.000	0.016
Total Current Liabilities		9.638	1.656	6.466
Net Current Assets		32.313	13.447	[6.310]
MISCELLANEOUS EXPENSES		1.344	1.588	0.053
TOTAL		83.991	28.355	2.689

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011
	SALES
		Income	80.102
		Other Income	0.227
		TOTAL (A)	80.329
Less	EXPENSES
		Increase / Decrease in Stock	(13.543)
		Materials Consumed	70.410
		Manufacturing Expenses	8.021
		Payments and Provisions to Employees	5.673
		General Administrative and Selling Expenses	1.173
		Preliminary Expenses Written Off	0.337
		TOTAL (B)	72.071
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		8.258
Less	FINANCIAL EXPENSES (D)		5.712
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.546
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.409
	PROFIT BEFORE TAX (E-F) (G)		1.137
Less	TAX (H)		0.559
	PROFIT AFTER TAX (G-H) (I)		0.578
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.000
	BALANCE CARRIED TO THE B/S		0.578
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	Nil
	TOTAL EARNINGS		Nil
	Earnings Per Share (Rs.)		2.66

The above information has been parted by Mr. Bipin.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.71	NA	NA
Net Profit Margin (PBT/Sales)	(%)	1.41	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	1.23	NA	NA
Return on Investment (ROI) (PBT/Networth)		0.06	NA	NA
Debt Equity Ratio (Total Liability/Networth)		4.21	1.25	13.24
Current Ratio (Current Asset/Current Liability)		4.35	9.12	0.02

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS :

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Creditors for Capital Goods	3.398	1.558
Creditors for Expenses	1.251	0.098	6.450
Creditors for Goods and Consumables	2.218	0.000
Total	6.867	1.656	6.450

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

CONTINGENT LIABILITIES :

Contingent liabilities, towards outstanding Bank Guarantee not provided for in the books Rs. 0.785 millions

FORM : 8

Bankers Charges Report as per Registry

Corporate identity number of the company	U28110GJ2008PLC055392
Name of the company	SCODA TUBES LIMITED
Address of the registered office or of the principal place of business in India of the company	Survey No. 1566/1, Village Rajpur, Tal. Kadi, Mehsana – 382740, Gujarat, India
This form is for	Modification of charge
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	Bank of India, Surendra Mangaldas Road Branch, 26-29 Galaxy Mall, Nr Shiromani Complex, S M Road, Ahmadabad – 380015, Gujarat, India
Nature of instrument creating charge	Supplemental deed of hypothecation executed by the company in favor of bank of India to secure the modified, revised and increased fund based and non fund based max aggregate credit facilities of Rs. 100.000 millions.
Date of instrument Creating the charge	17.09.2011
Amount secured by the charge	Rs. 100.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest TL - 4.25% + BR Presently 15% (Floating) P. A. Monthly rest, CC STK / CC BK DT - 3.75% + Br Presently 14.50% P. A. Monthly Rests EPC/FBP/FBN/LC/Buy credit/BKGUA - As Per BK Norms Terms of repayment TL - 22 Quarterly Installments Each of Rs 1.932 millions Commenced From July 2011. CC Stock / CC Bk Dbts - on Demand / Annual Review EPC Against Confirmed Orders / LC - on Demand / Annual Review FBP / FBN - on demand / annual review L/C (I/F) - on demand / annual review Buyers' credit - on demand / annual review Bank Guarantee - On Demand / Annual Review Margin TL - Building - 30%, Plant and Machinery - 25% CC Stocks - 25%, CC BK Dbts - 40% EPC - 25%, FBP/FBN - 10% LC (I/F) - 20%, Buyers' Credit - 20% BK GUA - 25% Extent and operation of the charge First and Exclusive CH By Way of Hypo on All Tan Mov Prop Being Plant and mach, STKS of mat and BK DTS and all other movable assets of the co in fav of bank to secure modified, revised and increased Fb and NFB total max aggregate limits of Rs 100.000 millions along with interest, Addl int, penal int, liquidated damages, costs, charges, commission and all other amt due to the bank from time to time of what so ever nature. Other AMT RS IN MILLIONS TL - 40.568 CC STK - 60.000 CC BK DBTS - (35.000) EPC AGAINST ORDER-(37.000) FBP/FBN - (37.000) MAX FBWC 60.000 TOTAL FUND BASED - 100.000 LETTER OF CREDIT - (30.000) BUYERS CREDIT - (30.000) MAX NFB – 30.000 B. G. - (30.000) Total Agg Limit – 100.000
Short particulars of the property charged (Including location of the property)	All That Mov Plant and Mach, Equipments Whether Installed or Not and whether lying Loose or In Cases Lying at Village Rajpur, TA : Kadi, Dist Mehsana or Else All STK of raw mat like SS coil, stainless steel ETC semi fin goods / fin goods like seamless and welded tubes lying AT co prem / Godowns At Village Rajpur, TA : Kadi, Dist Mehsana or Else All The Present and Future BK DTS, Outstanding, Money Receivables, Claims, Bills
Date of instrument modifying the charge	14/12/2009
Particulars of the present modification	BK granted Addl CC STK Rs 40.000 millions, Addl CC BK Dt S/L Rs 30.000 millions, new EPC S/L Rs 37.000 millions, new FBP/FBN S/L Rs 37.000 millions with max FBWCL Rs 60.000 millions, new L/C Rs 30.000 millions, new buyers' credit Rs 30.000 millions, new BK GUA Rs 30.000 millions with max NFB LIM Rs 30.000 millions and revised TL Fm 42.500 millions to Rs 40.568 millions and thereby TOT FB and NFB Aggre lim revised and increased fm Rs 62.500 millions to Rs 100.000 millions. Thus first and excl hypo ch on all tan mov prop being p and m, STK, BK Dts and other movable prop is extended and wil operate for Rs 100.000 millions w.e.f. 17.09.11

FIXED ASSETS :

· Land

· Factory Building

· Machinery

· Electric and Fittings

· Computer

· Plant and Machinery WIP

· Computer WIP

· Building WIP

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. 51.65
UK Pound	1	Rs. 79.09
Euro	1	Rs. 65.31

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
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	2
--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	NO
--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.