MIRA INFORM REPORT

Report Date :

12.06.2012

IDENTIFICATION DETAILS

Name :	STEEL STRONG VALVES (INDIA) PRIVATE LIMITED
Registered Office :	604, Mahavir Towers, L.B.S. Marg, Mulund (West), Mumbai – 400080, Maharasahtra, India
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.12.1993
Com. Reg. No.:	11-075537
Capital Investment / Paid-up Capital :	Rs.11.667 Millions
CIN No.: [Company Identification No.]	U28910MH1993PTC075537
TAN No.: [Tax Deduction & Collection Account No.]	MUMS19360F
PAN No.: [Permanent Account No.]	AAACS7348N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Engineering Goods (Industrial Valves) Various types of Valves.
No. of Employees :	300 (Approximately) (In Office – 175 + In Factory – 125)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 610000
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.

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. Manohar Goswami
Designation :	Senior Accounts Manager
Contact No.:	91-9223233565
Date :	09.06.2012

LOCATIONS

Registered Office :

604, Mahavir Towers, L.B.S. Marg, Mulund (West), Mumbai – 400080, Maharasahtra, India

Tel. No.:

91-22-27690074

Mobile No.:

91-9223233565 (Mr. Manohar Goswami)

Fax No.:

Not Available

E-Mail :

accounts@steelstrongs.com

Website:

www.steelstrongs.com

Office /Marketing Office and Plant No. I :

R-241, T.T.C. Industrial Area, M.I.D.C. Rabale – 400701, Navi Mumbai, Maharashtra, India

Tel. No.:

91-22-27690074 / 27695536 / 27607005 / 27699489 / 27699490

Mobile No.:

91-9223233565 [Mr. Manohar Goswami]

Fax No.:

91-22-27695537

E-Mail :

steelstrongvalve@mtnl.net.in

adminsteelstrong@steelstrong.com

strong@bom3.vsnl.net.in

mkt1@steelstrong.com

mkt2@steelstrong.com

mkt3@steelstrong.com

Website :

http://www.steelstrong.com

Area :

2000 Sq. Mt

Location :

Owned

Plant No. II and Regional Marketing Office :

Plot No. B/176, 186, 187, 189, Ajanta Industrial Estate, Village Vasna – Iyava, Taluka Sanand, Ahmedabad, Gujarat, India

Tel. No.:

91-2717-619100 (60 lines)

E-Mail :

sanandworks@steelstrong.com

Plant III :

Plot No. B/176,186,187,189. Ajanta Industrial Estate, Village: Vasna-Iyava, Taluka: Sanand, Ahmadabad - 382170. Gujarat, India

Tel No.:

91-2717-619110

E -Mail :

mkt5@steelstrong.com

Marketing Network :

Located at :

Delhi	Mr. Anil Kumar Shrma	91-11-25790183	91-9810043324
Kolkata	Mr. D. P. Sen	91-33-24711654	91-9433326166
Bangalore	Ms. Anuradha Srinivasan	91-80-26583214	91-9448459429
Chennai	Mr. K. N. Shrinath / Mr. K.V. Narayanan	91-44-24861308	91-9790955585
Hyderabad	Mr. A. G. Rao	91-40-27058878	91-9440718339
Cochin	Mr. Jayarahan Nambiar	91-484-2539979 / 2531470	91-9847032708
Visakhapatnam	--	--	--

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Ramesh Subbaya Shetty
Designation :	Managing director
Address :	604, Mahavir Towers, L.B.S. Marg, Mulund (West), Mumbai – 400080, Maharashtra, India
Date of Birth/Age :	08.08.1954
Date of Appointment :	09.12.1993
PAN No.:	ACCPS6924K
DIN No.:	00443862
Name :	Mrs. Smita Ramesh Shetty
Designation :	Director
Address :	604, Mahavir Towers, L.B.S. Marg, Mulund (West), Mumbai – 400080, Maharashtra, India
Date of Birth/Age :	25.04.1958
Date of Appointment :	09.12.1993
PAN No.:	ANPRS2479B
DIN No.:	00743291
Name :	Mr. Thomas George
Designation :	Director
Address :	Flat No. 304, Plot No. 4,5,6 and 7, Sector BA/IAIROLI, Mumbai – 400708, Maharashtra, India
Date of Birth/Age :	27.11.1954
Date of Appointment :	08.06.2010
DIN No.:	03093974
Name :	Mr. Sagar Ramesh Shetty
Designation :	Director
Address :	604, Mahavir Towers, L.B.S. Marg, Mulund (West), Mumbai – 400080, Maharashtra, India
Date of Appointment :	15.03.2011
DIN No.:	02139996

KEY EXECUTIVES

Name :	Mr. Manohar Goswami
Designation :	Senior Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Ramesh Subbaya Shetty	116665
Sagar Ramesh Shetty	1
Thomas George	1
Total	116667

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Engineering Goods (Industrial Valves) Various types of Valves.

Products :

Product Description	Item Code No.
Industrial Valves	8481.80

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Industrial Valves	Nos.	N.A.	N.A.	58077

GENERAL INFORMATION

Suppliers :

· Gujarat Techno Casting Private Limited

Customers :

Wholesalers and Retailers

• IOCL
• Bharat Petroleum
• HPCL

No. of Employees :

300 (Approximately) (In Office – 175 + In Factory – 125)

Bankers :

• Vijaya Bank, Gaurav Corner, Navghar Road, Mulund (East), Maharashtra, India
• Vijaya Bank, Gaurangi Chambers, LBS Marg, Opp Damani Estate, Thane Branch, Mumbai – 400602, Maharashtra, India

Facilities :

Total Limit : Rs. 280.000 Millions (From Vijaya Bank)

Secured Loan	Rs in Millions [AS ON 31.03.2011]	Rs in Millions [AS ON 31.03.2010]
Working Capital Facility - Cash Credit (Vijaya Bank)	98.989	68.042
Term Loans (Working capital loan is secured by hypothecation of stock in trade, book debts and Term Loans are secured by mortgage of freehold and at Ahmedabad and factory building thereon as well as machinery/equipments. Both the loans are secured by collateral security by way of mortgage of land and building of Factory at R - 241 TTC Industrial Area, Rabale and hypothecation of existing plant and machinery. The above loans are guaranteed by both the directors of the company)	37.243	42.083
Bank Loans (Against hypothecation of Motor Cars)	1.953	2.129
Total	138.185	112.254

Banking Relations :	--
Auditors :
Name :	Rajesh Shetty and Compay Chartered Accountants
Address :	Sunmoon Co-Operative Housing Society Limited, Rajendra Nagar , Datta Pada Road, Borivali, Mumbai – 400066, Maharashtra, India
PAN No.:	AWXPS2271C
Related Parties :	· Shayburg Valves Private Limited · Shogun Engineers · Steel Strong International · Steel Strong Engineers

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Share	Rs.100/- each	Rs. 20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
116667	Equity Share	Rs.100/- each	Rs. 11.667 Millions

Note:

(Of the above, 1100 equity shares (P.Y.100) have been allotted for consideration other than cash)

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		11.667	11.667	11.667
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		141.057	114.349	95.248
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		152.724	126.016	106.915
LOAN FUNDS
1] Secured Loans		138.185	112.254	103.358
2] Unsecured Loans		0.000	0.000	8.300
TOTAL BORROWING		138.185	112.254	111.658
DEFERRED TAX LIABILITIES		1.156	1.437	0.904
TOTAL		292.065	239.707	219.477
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		116.382	116.941	113.022
Capital work-in-progress		0.000	0.000	1.501
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	53.620	54.412	58.751
	Sundry Debtors	186.322	129.886	98.122
	Cash & Bank Balances	7.529	6.953	6.694
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	72.750	50.000	38.555
Total Current Assets		320.221	241.251	202.122
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	86.702	72.554	64.811
	Other Current Liabilities	7.493	9.647	7.233
	Provisions	50.396	36.347	25.197
Total Current Liabilities		144.591	118.548	97.241
Net Current Assets		175.630	122.703	104.881
MISCELLANEOUS EXPENSES		0.053	0.063	0.073
TOTAL		292.065	239.707	219.477

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income		427.692	362.220
		Other Income		1.169	2.565
		TOTAL (A)	562.708	428.861	364.785
Less	EXPENSES
		Increase / (Decrease) in Stock		(0.663)	0.000
		Material Consumption		280.173	250.395
		Manufacturing Expenses		38.029	31.983
		Personnel Expenses		25.166	17.430
		Administrative and Selling Expenses		27.525	22.450
		TOTAL (B)	522.232 (including Depreciation and Financial Expenses)	370.230	322.258
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			58.631	42.527
Less	FINANCIAL EXPENSES (D)			12.278	7.236
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			46.353	35.291
Less/ Add	DEPRECIATION/ AMORTISATION (F)			15.568	8.935
	PROFIT BEFORE TAX (E-F) (G)		40.476	30.785	26.356
Less	TAX (H)		13.768	11.684	9.890
	PROFIT AFTER TAX (G-H) (I)		26.708	19.101	16.466
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		65.100	45.999	29.533
	BALANCE CARRIED TO THE B/S		91.808	65.100	45.999
	Earnings Per Share (Rs.)		228.92	163.73	141.13

Particulars	31.03.21012
Sales Turnover (Approximately)	780.000 (Started new plant in Ahmedanad so more production)

Expected Sales (2012-2013) : Rs.1100.000 Millions

The above information has been parted by Mr. Manohar Goswami

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.75	4.45	4.51
Net Profit Margin (PBT/Sales)	(%)	NA	7.20	7.28
Return on Total Assets (PBT/Total Assets}	(%)	9.27	8.59	8.36
Return on Investment (ROI) (PBT/Networth)		0.27	0.24	0.25
Debt Equity Ratio (Total Liability/Networth)		1.85	1.83	1.95
Current Ratio (Current Asset/Current Liability)		2.21	2.03	2.08

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

(Rs. in Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors	86.702	72.554	64.811

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 three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	Yes
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	No
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

CONTINGENT LIABILITY :

1. Bank Guarantee issued : Rs.51.107 Millions (Previous Year Rs.41.631 Millions) (Secured by margin of Rs.6.017 Millions, Previous year Rs.6.000 Millions)

2. Cess Liability: The cess liability of Rs.17.530 Millions (Previous year Rs.14.162 Millions), which is under dispute Management is of the opinion that, there is a very remote possibility of the above liability crystallizing.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U28910MH1993PTC075537
Name of the company	STEEL STRONG VALVES (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	604, Mahavir Towers, L. B. S. Marg, Mulund (W), Bombay-80. Wef Dt.1.6.96, Mumbai-400080, Maharashtra, India E-Mail : steelstrongvalve@mtnl.net.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80002884
Type of charge	· Immovable property · Book debts · Movable property (not being pledge) · Others (Current and Fixed Assets)
Particular of charge holder	Vijaya Bank, Gaurav Corner, Navghar Road, Mulund (East), Mumbai – 400081, Maharashtra, India E-mail : adlalwani@rediffmail.com
Nature of instrument creating charge	1. Agreement for demand cash credit against hypothecation of stocks and book debts 2. Supplementary Agreement 3. Counter Indemnity 4. Memorandum 5. Memorandum 6. Memorandum (All the above agreement constitute a single charge)
Date of instrument Creating the charge	30.12.2011
Amount secured by the charge	Rs.292.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As stipulated by bank from time to time Terms of Repayment As stipulated by bank from time to time Margin As stipulated by bank from time to time Extent and Operation of the charge First charge (present and future) = total limit of Rs.292.500 Millions Secured loan limit Rs. 30.000 Millions , CCH = Rs.130.000 Millions, BD = Rs.2.500 Millions, BG = Rs.100.000 Millions, FLC=Rs.5.000 Millions, ML=Rs.25.000 Millions Others As stipulated by bank from time to time and/or as per agreement attached and as per sanction letter
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First charge(present and future on following assets)(1) hypothection of all goods / inventories / stock / products / stores / tools kept at borrower place / premises / godown / factories etc including brought under L.C. (2) hypothecation of book debts and receivables and hypothecation of all documentary usance bills (3) hypothecation of all plant and machinery (4) Hypothecation of all current, movable and fixed assets (5) Emtd of land and bld const. or to be const. at survey no.176+186+187 (paiki) b (paiki) 189+a (paiki) 6 paiki-2 at Ajanta Industrial Estate, Mouje Vasanalyava, Sanand, Ahmedabad, Gujarat, India (6) Emtd of Plot No 241, M.I.D.C, TTC Industrial Area, Rabale, Thane, Maharashtra, India (7) Hypothecation of all the assets purchased out of bank finance (8) EMTD of residential Flat No 606 On 6th Floor, Mahavir Tower Chs Limited, LBS Marg, Mulund (West), Maharashtra, India
Particulars of the present modification	By this modification limit enhanced to Rs. 292.500 Millions ,securities are continued as given by original charge as well as by modifications and hypothecation of all assets purchased out of bank finance, terms and conditions as per agreement attached and as per sanction letter of the bank

TRADE REFERENCE:

• IOCL
• Bharat Petroleum
• HPCL
• Gujarat Techno Casting Private Limited

FIXED ASSETS :

• Leasehold land
• Factory Building
• Plant and Machinery
• Electrical Fittings
• Furniture and Fixtures
• Office Equipment
• Computers
• Crane
• Tele Instruments
• Air Conditioners
• Vehicles
• Tempo
• Xerox

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.55.24
UK Pound	1	Rs.85.93
Euro	1	Rs.69.82

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	BSN

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.