MIRA INFORM REPORT

Report Date :

29.05.2012

IDENTIFICATION DETAILS

Name :	DINESH SEAMLESS TUBES PRIVATE LIMITED
Registered Office :	79/81, West View Building, Ground Floor, Shop no.1, 10^th Khetwadi Lane, Mumbai - 400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	05.05.2009
Com. Reg. No.:	11-192191
Capital Investment/ Paid-up Capital:	Rs.0.300 Million
CIN No.: [Company Identification No.]	U27300MH2009PTC192191
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Pipes and Steel
No. of Employees:	15 (Approximately)

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 27000
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 commitment. 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

INFORMATION PARTED BY

Name :	Mr. Nilesh
Designation :	Account Executive
Contact No.:	91-22-23802218
Date :	26.05.2012

LOCATIONS

Registered Office :	79/81, West View Building, Ground Floor, Shop no.1, 10^th Khetwadi Lane, Mumbai - 400004, Maharashtra, India
Tel. No.:	91-22-23802218/ 66362698/ 67436929
Fax No.:	91-22-23802421
E-Mail :	dineshmehtalindustries@gmial.com
Location :	Owned

DIRECTORS

As on: 30.09.2011

Name :

Mr. Champaklal Karsandas Shah

Designation :

Director

Address :

79/81, West View Building, Ground Floor, Shop no.1, 10^th Khetwadi Lane, Mumbai - 400004, Maharashtra, India

Date of Birth/Age :

29.04.1965

Date of Appointment :

05.05.2009

DIN No :

02624694

Name :

Mr. Dhruv Sanjay Gupta

Designation :

Director

Address :

236, Roop Niwas, 10^th Road, Chembur, Mumbai – 400071, Maharashtra, India

Date of Birth/Age :

14.01.1989

Date of Appointment :

05.05.2009

DIN No :

02092229

Other Directorships :

S.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	U27300MH2009PTC192191	DINESH SEAMLESS TUBES PRIVATE LIMITED	Director	05-05-09	05-05-09	-	Active	NO
2	U34105MH2010PTC209650	GDS ENGINEERS PRIVATE LIMITED	Director	01-11-10	01-11-10	-	Active	NO
3	U34300MH2011PLC214904	GEN NEXT MOTORS LIMITED.	Director	17-03-11	17-03-11	-	Active	NO
4	U92190MH2011PTC220855	CLUB OPULENCE PRIVATE LIMITED	Director	11-08-11	11-08-11	-	Active	NO
5	U34100MH2007PLC175682	NIKHIL AUTOMOBILES LIMITED	Additional director	26-09-11	26-09-11	-	Active	NO
6	U45203MH2012PTC230819	ESS SQUARE DEVELOPERS PRIVATE LIMITED	Director	10-05-12	10-05-12	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Nilesh
Designation :	Account Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2011

Names of Shareholders	No. of Shares
Champak Karsandas Shah	5000
Dhruv Sanjay Gupta	5000
Parin Champaklal Shah	10000
Sahej Sanjay Gupta	10000
Total	30000

As on: 31.03.2012

Names of Allottee	No. of Shares
Champaklal K. Shah	175000
Dhruv Sanjay Gupta	175000
Total	350000

As on: 18.02.2012

Names of Allottee	No. of Shares
Champaklal K. Shah	5000
Dhruv Sanjay Gupta	5000
Total	10000

As on: 23.03.2012

Names of Allottee	No. of Shares
Champaklal K. Shah	150000
Dhruv Sanjay Gupta	150000
Parin Champaklal Shah	150000
Sahej Sanjay Gupta	150000
Total	600000

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2011

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of Pipes and Steel
Exports :
Products :	· Pipes · Steel
Countries :	South Korea
Imports :
Products :	Raw Material
Countries :	· Dubai · China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

ISMT Limited

Customers :

End Users

· MTS Pipes and Tubes Private Limited

No. of Employees :

15 (Approximately)

Bankers :

Union Bank of India, Darukhana Branch, Mercantile House, 1st Floor, 70, Magazine Street, Near Reay Road Railway Station, Mumbai - 400010, Maharashtra, India

Facilities :

Cash Credit Rs.40.000 Millions (From Union Bank of India)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Union Bank of India – 36600	15.449	0.000
Total	15.449	0.000
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Unsecured Loans – From Directors/ Managers	115.500	126.000
Total	115.500	126.000

Banking Relations :	--
Auditors :
Name :	Subhash Trivedi Chartered Accountants
Address :	5-A, Majestic Mansion, Groung Floor, 380/388, SVP Road, Mumbai – 400004, Maharashtra, India
PAN No.:	AADPT2487K
Sister Concern :	Dinesh Metal Industries

CAPITAL STRUCTURE

After: 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Share	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
990000	Equity Share	Rs.10/- each	Rs.9.900 Millions

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Share	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
30000	Equity Share	Rs.10/- each	Rs.0.300 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.300	0.100
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		6.680	2.595
4] (Accumulated Losses)		0.000	0.000
NETWORTH		6.980	2.695
LOAN FUNDS
1] Secured Loans		15.449	0.000
2] Unsecured Loans		115.500	126.000
TOTAL BORROWING		130.949	126.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		137.929	128.695
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.046	0.030
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	152.952	135.349
	Sundry Debtors	49.412	15.320
	Cash & Bank Balances	0.071	3.157
	Other Current Assets	0.000	0.000
	Loans & Advances	10.286	97.855
Total Current Assets		212.721	251.681
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	71.980	122.729
	Other Current Liabilities	0.955	0.001
	Provisions	1.946	0.334
Total Current Liabilities		74.881	123.064
Net Current Assets		137.840	128.617
MISCELLANEOUS EXPENSES		0.043	0.048
TOTAL		137.929	128.695

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Income (approximately)	580.000	280.000
		Other Income	NA	NA
		TOTAL	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		6.075	3.383
Less/ Add	DEPRECIATION/ AMORTISATION		0.043	0.013
	PROFIT BEFORE TAX		6.032	3.370
Less	TAX		1.947	0.775
	PROFIT AFTER TAX		4.085	2.595
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.595	NA
	BALANCE CARRIED TO THE B/S		6.680	2.595
	Earnings Per Share (Rs.)		222.67	NA

Particulars	31.03.2012
Sales Turnover (Approximately)	630.000

Expected Sales (2012-2013): Rs.650.000 Millions

The above information has been parted by Mr. Nilesh

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010
Return on Total Assets (PBT/Total Assets}	(%)	0.03	1.34
Return on Investment (ROI) (PBT/Networth)		0.86	1.25
Debt Equity Ratio (Total Liability/Networth)		29.49	92.42
Current Ratio (Current Asset/Current Liability)		2.84	2.05

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Construction of the firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of contact person	Yes
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	Yes
Capital the business	Yes
Details of sister concerns	-
Major Suppliers	Yes
Major Customers	Yes
Payment Terms	Yes
Export / Import Details [If Applicable]	Yes
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U27300MH2009PTC192191
Name of the company	DINESH SEAMLESS TUBES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	79/81, West View Building, Ground Floor, Shop no.1, 10^th Khetwadi Lane, Mumbai - 400 004, Maharashtra, India E-mail: dineshmetalindustries@gmail.com
This form is for	Creations of charge
Type of charge	Book debts Movable property(not being pledge)
Particular of charge holder	Union Bank of India, Darukhana Branch, Mercantile House, 1st Floor, 70, Magazine Street, Near Reay Road Railway Station, Mumbai - 400010, Maharashtra, India E-mail: cbsdarukhana@unionbankofindia.com
Nature of instrument creating charge	Hypothecation Agreement of Goods and Debts
Date of instrument Creating the charge	30.06.2011
Amount secured by the charge	Rs.40.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Usual for Import LC and Cash Credit @15.25% per annum with monthly rests or such other revised rate/s as may be prescribed by the Bank from time to time Terms of Repayment On Demand Margin As per sanction terms Extent and Operation of the charge To secure Import L/C (DP/DA 90 days) facility of Rs.40.000 Millions W/W Cash Credit (Hypothecation) Stocks and Book-Debts facility of (Rs.20.000 Millions) granted by the Bank to the Company
Short particulars of the property or asset(s) charged (including complete address and location of the property)	The Borrower hereby Hypothecates by way of First Charge in favour of the Bank:1.Entire Stocks which expression shall include All Raw Materials,Semi Finished and Finished Goods,Consumable Stores And Spares and Movable Property of any kind now or at any time hereafter belonging to or at the disposal of the Borrower and which are now stored or being stored or which hereafter may from time to time be brought into or stored or be in or about the Borrower's Premises or godown/s at Mumbai and at other places hired by the Borrower for the purposes of storage in the Union of India and all other places of storage 2. The Borrower Book Debts, Outstandings, Monies, Deposits, Receivables claims and Bills, Contracts, Securities, Investments which are now due and owing or which may at any time hereafter during the continuance of this security becoming due and owing to the Borrower in the course of its Business by any Person or Party including any Government or any Local or Public Body or Authority (All of which are hereinafter collectively referred to as "the said debts)

TRADE REFERENCE:

· ISMT Limited

· MTS Pipes and Tubes Private Limited

FIXED ASSETS:

· Computer

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.55.26
UK Pound	1	Rs.86.80
Euro	1	Rs.69.63

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	VRN

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	YES
--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.