MIRA INFORM REPORT

Report Date :

15.05.2012

IDENTIFICATION DETAILS

Name :	V. K. INDUSTRIAL CORPORATION LIMITED
Registered Office :	303/304, Loha Bhavan, 3^rd Floor, 93, P D’ Mello Road, Carnac Bunder, Mumbai – 400 009, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	16.11.2004
Com. Reg. No.:	11-149538
Capital Investment / Paid-up Capital :	Rs.45.900 Millions
CIN No.: [Company Identification No.]	U27100MH2004PLC149538
IEC No.:	0304068616
PAN No.: [Permanent Account No.]	AABCV9515F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Trader, Importer and Stockiest of special quality steel plates.
No. of Employees :	20 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (55)

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

Maximum Credit Limit :	USD 5469000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Financial position of the company appears to be satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	303/304, Loha Bhavan, 3^rd Floor, 93, P D’ Mello Road, Carnac Bunder, Mumbai – 400 009, Maharashtra, India
Tel. No.:	91-22-66333330
Mobile No.:	91-9821022386 (Mr. Virendra Mehta)
Fax No.:	91-22-23484728
E-Mail :	info@virenvkicl.com viren@virenvkicl.com accounts@virenvkicl.com vkicl@mtnl.net.in
Website :	http://www.vkicl.com
Area :	600 sq. ft.
Location :	Owned
Branch Office :	Office No.1, 1^st Floor, No.84 (Old No.39), Muthumari Street, Chennai – 600 001, Tamilnadu, India
Tel No. :	91-44-25262263
Fax No. :	91-44-42168783
E-Mail :	juzer@vkchennai.com
Area :	200 sq. ft.
Location :	Owned

DIRECTORS

As on 24.09.2011

Name :

Mr. Deepak Kakubhai Mehta

Designation :

Whole Time Director

Address:

7/A, Puspham, K.D. Road, Vile Parle (West), Mumbai – 400 056, Maharashtra, India

Date of Birth/Age :

15.05.1966

Qualification :

Graduate

Date of Appointment :

02.09.2005

DIN No.:

00326874

Other Directorship :

S.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	U27100MH2004PLC149538	V. K. Industrial Corporation Limited	Whole-time director	02-09-05	02-09-05	Active	NO
2	U27109MH2007PTC170928	Dmson's metal private limited	Director	18-05-07	18-05-07	Active	NO

Name :

Mr. Virendra Kakubhai Mehta

Designation :

Whole Time Director

Address:

401, Manju Castle Building, Church Road, Vile Parle (West), Mumbai – 400 056, Maharashtra, India

Date of Birth/Age :

08.03.1968

Qualification :

H.S.C.

Date of Appointment :

01.10.2006

DIN No.:

00326929

Other Directorship :

S.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	U27100MH2004PLC149538	V. K. Industrial Corporation Limited	Whole-time director	01-10-06	01-10-06	Active	NO
2	U27109MH2007PTC170928	Dmson's metal private limited	Director	06-08-07	06-08-07	Active	NO

Name :

Mr. Kakubhai Purshottamdas Mehta

Designation :

Managing Director

Address:

401, Manju Castle Building, Church Road, Vile Parle (West), Mumbai – 400 056, Maharashtra, India

Date of Birth/Age :

10.04.1935

Qualification :

Under Graduate

Date of Appointment :

02.09.2005

DIN No.:

01648156

Other Directorship :

S.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	U27100MH2004PLC149538	V. K. Industrial Corporation Limited	Managing director	02-09-05	02-09-05	Active	NO
2	U27109MH2007PTC170928	Dmson's metal private limited	Director	18-05-07	18-05-07	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.09.2011

Names of Shareholders	No. of Shares
Kakubhai Purshottamdas Mehta	133000
Deepak Kakubhai Mehta	1734750
Virendra Kakubhai Mehta	1734750
Vasumati Kakubhai Mehta	2500
Urvi Deepak Mehta	1200
Darshana Virendra Mehta	1200
Parul Vipul Doshi	50
Charu Kirit Doshi	50
Kakubhai P. Mehta (HUF)	732500
Binaca Traders and Services Private Limited, India	42500
Kush Hindustan Entertainment Limited, India	23750
Sundaram Infotech, India	82500
TSV Merchantile Private Limited, India	37500
Viren Diamond Exports Limited, India	25000
Young and Crow Marketing (India) Private Limited, India	38750
Total	4590000

As on 24.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	5.45
Directors or relatives of directors	94.55
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader, Importer and Stockiest of special quality steel plates.
Products :	v Hot Rolled Steel Plates / B.Q Plates v Hot Rolled Mill Plates v Industrial Steel Sheets v High Tensile Steel Plates v High Tensile Steel Sheets v Low Alloy Steel Plates v Steel Plates v Industrial Steel Plates v Stainless Steel Plates v Handling Facilities

GENERAL INFORMATION

No. of Employees :

20 (Approximately)

Bankers :

v Canara Bank, Prime Corporate Branch II, 2^nd Floor, Varma Chambers, Mumbai – 400 001, Maharashtra, India

v IDBI Bank, Mumbai, Maharashtra, India

v Kapol Co-Operative Bank, Mumbai, Maharashtra, India

v HDFC Bank

v Bank of Baroda, Fort, Mumbai, Maharashtra, India

Facilities :

Secured Loans	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Working capital loans banks secured	(A) 41.436	249.792
Total	41.436	249.792

Notes:

(A) bank overdraft

Unsecured Loans	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Loans directors unsecured	34.672	20.560
Other debt unsecured	(A) 1.177	1.315
Total	35.849	21.875

Notes:

(A) loan from shareholders

Banking Relations :

--

Auditors :

Name :

Prashant Wakhariya and Company

Chartered Accountants

Address :

B-1, Sadichha Apartments, Ground Floor, Rokadia Lane, Borivali (West), Mumbai – 400 092, Maharashtra, India

Tel. No.:

91-22-28922369/ 22937350

Mobile No.:

91-9324657162

E-Mail :

pwco@hotmail.com

PAN No.:

AAFPW9479G

CAPITAL STRUCTURE

As on 24.09.2011

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
4590000	Equity Shares	Rs.10/- each	Rs.45.900 Millions

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		45.900	45.900	45.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1321.264	931.986	717.302
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1367.164	977.886	763.202
LOAN FUNDS
1] Secured Loans		41.436	249.792	103.883
2] Unsecured Loans		35.849	21.875	19.607
TOTAL BORROWING		77.285	271.667	123.490
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1444.449	1249.553	886.692
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		50.388	8.508	4.317
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.002	0.001	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	665.270	688.107	405.484
	Sundry Debtors	1574.118	892.442	629.181
	Cash & Bank Balances	48.525	58.688	4.856
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	713.581	640.929	371.687
Total Current Assets		3001.494	2280.166	1411.208
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1368.407	920.059	469.413
	Other Current Liabilities	3.186	0.000	48.575
	Provisions	235.842	119.063	10.845
Total Current Liabilities		1607.435	1039.122	528.833
Net Current Assets		1394.059	1241.044	882.375
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1444.449	1249.553	886.692

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net	7123.136	4836.384	4247.961
		Other Income	22.989	73.800	27.143
		TOTAL (A)	7146.125	4910.184	4275.104
Less	EXPENSES
		Consumption materials changes inventories	5485.680	3850.290	4200.322
		Manufacturing service costs	878.561	624.689
		Employee related expenses	1.753	1.368
		Administrative selling other expenses	104.277	55.595
		TOTAL (B)	6470.271	4531.942	4200.322
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		675.854	378.242	74.782
Less	INTEREST FINANCIAL CHARGES (D)		74.942	53.888	61.977
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		600.912	324.354	12.805
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.000	1.280	1.062
	PROFIT BEFORE TAX (E-F) (G)		598.912	323.074	11.743
Less	TAX (H)		208.937	108.647	3.745
	PROFIT AFTER TAX (G-H) (I)		389.975	214.427	7.998
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		786.886	572.459	563.764
	BALANCE CARRIED TO THE B/S		1176.861	786.189	571.762
	EXPORT VALUE		7.024	44.836	23.323
	Earnings Per Share (Rs.)		84.96	47.00	1.74

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.46	4.37	0.19
Net Profit Margin (PBT/Sales)	(%)	8.41	6.68	0.28
Return on Total Assets (PBT/Total Assets}	(%)	19.62	14.12	0.83
Return on Investment (ROI) (PBT/Networth)		0.44	0.33	0.02
Debt Equity Ratio (Total Liability/Networth)		1.23	1.34	0.85
Current Ratio (Current Asset/Current Liability)		1.87	2.19	2.67

LOCAL AGENCY FURTHER INFORMATION

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	Yes
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	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	No
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

OPERATIONS:

The company's performance improved during the financial year. The turnover was higher from Rs.4905.100 millions to Rs.7146.100 millions. Net profit is higher from Rs.211.900 millions to Rs.598.700 millions. The company's focus continues to be on increasing volumes and turnover.

Bankers Charges Report as per Registry

Corporate identity number of the company	U27100MH2004PLC149538
Name of the company	V. K. INDUSTRIAL CORPORATION LIMITED
Address of the registered office or of the principal place of business in India of the company	303/304 Loha Bhavan, 3^rd Floor, 93, P.D’ Mello Road, Carnac Bunder, Mumbai – 400 009, Maharashtra, India E-Mail: vkicl@mtnl.net.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80001982
Type of charge	Immovable property Book debts Movable property (not being pledge) Others (stock, goods procured under DALC etc)
Particular of charge holder	Canara Bank, Prime Corporate Branch II, Varma Chambers, 2^nd Floor, Homji Street, Fort, Mumbai – 400 001, Maharashtra, India E-Mail: suyashri@vsnl.com
Nature of instrument creating charge	Simple Mortgage Deed (SMD) dated 02.11.2010
Date of instrument Creating the charge	02.11.2010
Amount secured by the charge	Rs.2100.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest As per sanction letter issued by respective bank Terms of repayment As per sanction letter issued by respective bank Margin As per sanction letter issued by respective bank Extent and operation of the charge Credit facilities aggregating to Rs.2100.000 millions granted by Canara Bank Consortium consisting of (CB Rs.1732.500 millions and BOB Rs.367.500 millions) further secured by way of Simple Mortgage on immovable Property viz. piece and parcel of land adm. about 3025 sq. mts. out of the land bearing Plot Nos. SW-3/1 to SW-3/7 in Sakri Industrial Area, Village Brahmanwel, Dhule, Maharashtra.
Short particulars of the property charged (Including location of the property)	1^st charge on all present and future stocks of RM / Steel products and Trading goods, SIP, SFG, FG, S and S etc. lying at Companies premises and godowns at Navi Mumbai and Chennai or elsewhere or in transit 1^st charge on all present and future Book debts, outstanding money receivables, claims, bills and other movables due and owing to the Company during the course of its business. Simple mortgage on 1^st pari passu charge basis on immovable Prop. viz. piece and parcel of land adm. about 3025 sq. mts. out of land bearing Plot Nos. SW-3/1 to SW-3/7 in Sakri Industrial Area, Village Brahmanwel
Date of instrument modifying the charge	06.02.2010
Particulars of the present modification	Now vide this modification, Credit facilities aggregating to Rs.2100.000 millions granted by Canara Bank Consortium consisting of (CB Rs.1732.500 millions and BOB Rs.367.500 millions) further secured by way of Simple Mortgage on immovable Property viz. piece and parcel of land adm. about 3025 sq. mts. out of the land bearing Plot Nos. SW-3/1 to SW-3/7 in Sakri Industrial Area, Village Brahmanwel, Dhule, Maharashtra.

FIXED ASSETS:

v Air Conditioner

v CCTV Camera System

v Computer

v Cutting Machine

v Cycle

v Electrical Equipment

v EPABX System – Telephone

v Fax Machine

v Furniture

v Mobile Phone

v Office Equipments

v Motor Car / Motor Cycle

v Television

v Xerox Machine

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.53.71
UK Pound	1	Rs.86.34
Euro	1	Rs.69.23

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		55

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.