MIRA INFORM REPORT

Report Date :

24.11.2012

IDENTIFICATION DETAILS

Name :	SIEVES MANUFACTURERS (INDIA) PRIVATE LIMITED
Registered Office :	Shop No. 20/13^th Khetwadi Road, Bhabha Chanl, Mumbai–400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.04.1991
Com. Reg. No.:	11-61302
Capital Investment / Paid-up Capital :	Rs.0.500 Million
CIN No.: [Company Identification No.]	U31200MH1991PTC061302
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Suppliers of Stainless Steel Bars, Wires and Wire rod.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 108000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There appears dip in turnover as well as in the profitability recorded by the company. However, trade relations are reported to be fair. Business is active. Payment are reported to be usually correct and as per commitment. The company can be considered for normal business dealing 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 – 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

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 / Factory 1 :	Shop No. 20/13^th Khetwadi Road, Bhabha Chanl, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-23866990 / 23873204 / 23841472
Fax No.:	91-22-23866990/23840686
Email:	sales@hindustanstainless.com hindexpro@vsnl.com
Website :	www.hindustanstainless.com
Factory 2 :	Vasai Taluka Industries Estate, Plot No. 61-62, Gaurai Pada, Vasai (East) - 401208, Thane, Maharashtra, India
Tel. No.:	91-250-2457649
Fax No.:	91-250-2457650

DIRECTORS

As on 30.09.2011

Name :

Mr. Hemant Ghevarchad Bohra

Designation :

Director

Address :

3901, Shreepati Arcade, A.K Marg, Gowalia Tank, Mumabi – 400036, Maharashtra, India

Date of Birth/Age :

15.07.1977

Date of Appointment :

02.06.2000

DIN No.:

02083520

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	U31200MH1991PTC061302	SIEVES MANUFACTURERS (INDIA) PRIVATE LIMITED	Director	02/06/2000	02/06/2000	-	Active	NO
2	U27300MH2009PLC190911	HINDUSTAN INOX LIMITED	Director	13/03/2009	13/03/2009	-	Active	NO

Name :

Ms. Vimal Ghevarchad Bohra

Designation :

Director

Address :

3901, Shreepati Arcade, A.K Marg, Gowalia Tank, Mumabi – 400036, Maharashtra, India

Date of Birth/Age :

03.02.1982

Date of Appointment :

02.06.2002

DIN No.:

02083486

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	U31200MH1991PTC061302	SIEVES MANUFACTURERS (INDIA) PRIVATE LIMITED	Director	02/06/2002	02/06/2002	-	Active	NO
2	U27300MH2009PLC190911	HINDUSTAN INOX LIMITED	Director	13/03/2009	13/03/2009	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Hemant Ghevarchad Bohra	25000
Vimal Ghevarchad Bohra	25000
Total	50000

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 :

Manufacturers and Suppliers of Stainless Steel Bars, Wires and Wire rod.

Products :

ITC CODE	PRODUCTS
72 7222	Stainless Steel Bright Bars
72 7223	Stainless Steel Wires
72 7221	Stainless Steel Wires Rods

PRODUCTION STATUS

Particulars	Unit	Installed Capacity
Steel and Alloy Steel Bright Bars, Wires and Rods.	(M.Tonnes)	10000

Particulars	Unit	Actual Production
S. S. Bright Bars	(M.Tonnes)	2545.295
S S Wire	(M.Tonnes)	23.605
S.S.Wire Rods	(M.Tonnes)	54.247
S.S.Scrap	(M.Tonnes)	233.480
Dross	(M.Tonnes)	36.939
Job Works	(M.Tonnes)	3694

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Indusind Bank Limited, Mumbai Main Branch, Indusind House, 425, Dadasaheb Bhadasaheb Marg, Mumbai-400004, Maharashtra, India

Facilities :

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Bills Discounted with The Indusind Bank Limited	0.000	20.286
Packing Credit Facility against Export from Indusind Bank Limited	11.955	7.500
Total	11.955	27.786
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Short Term Loans and Advances
Corporate Deposits	0.000	5.000
From Directors Shareholders and Relatives	0.000	0.000
Hindustan Inox Limited	0.000	0.396
From Others	0.000	5.000
Other Loans and Advances
Corporate Deposits	0.703	7.825
Sales Tax Deferal Loan - Sicom	0.095	0.095
From Directors Shareholders and Relatives	0.950	0.950
Total	1.748	19.266

Banking Relations :	--
Auditors :
Name :	M. C. Doshi and Company Chartered Accountant
Address :	307, Vaishali Apartments, 30/31, Parekh Street, Prathna Samaj, Mumbai-400004, Maharashtra, India
Tel. No.:	91-22-67437418/17
Fax No.:	91-22-23824232
Email:	mcdoshi@vsnl.com
PAN.:	AACPD4437A
Related Parties :	· Hindustan Stainless · Venus Metal Corporation · Venus Wire Industries Private Limited · Hitech Industries

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.10/- each	Rs.0.500 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.10/- each	Rs.0.500 million

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		0.500	0.500	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		26.620	24.410	20.876
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		27.120	24.910	21.376
LOAN FUNDS
1] Secured Loans		11.955	27.786	0.000
2] Unsecured Loans		1.748	19.266	122.593
TOTAL BORROWING		13.703	47.052	122.593
DEFERRED TAX LIABILITIES		0.236	0.098	0.190
TOTAL		41.059	72.060	144.159
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.290	10.844	10.115
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
Others		0.524	0.524	0.524
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	69.553	74.775	69.815
	Sundry Debtors	49.101	37.430	67.724
	Cash & Bank Balances	11.222	36.349	45.569
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	27.671	23.183	47.398
Total Current Assets		157.547	171.737	230.506
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	121.735	98.063	77.453
	Other Current Liabilities	4.036	11.521	17.468
	Provisions	1.531	1.461	2.065
Total Current Liabilities		127.302	111.045	96.986
Net Current Assets		30.245	60.692	133.520
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		41.059	72.060	144.159

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	244.051	346.225	890.410
		Other Income
		TOTAL	244.051	346.225	890.410
Less	EXPENSES
		Office Expenses	238.484	339.023
		Administrative Expenses
		Advertising Expenses
		TOTAL	238.484	339.023	881.069 (Including Depreciation )
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		5.567	7.202
Less/ Add	DEPRECIATION/ AMORTISATION		1.646	1.968
	PROFIT BEFORE TAX		3.921	5.234	9.341
Less	TAX		1.711	1.700	(48.738)
	PROFIT AFTER TAX		2.210	3.534	58.079
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	183.075	283.012	838.362
	TOTAL EARNINGS		183.075	283.012	838.362
	IMPORTS
		Capital Goods	0.000	1.128	0.000
	TOTAL IMPORTS		0.000	1.128	0.000
	Earnings Per Share (Rs.)		44.21	70.68	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.91	1.02	6.52
Return on Total Assets (PBT/Total Assets}	(%)	2.34	2.87	3.88
Return on Investment (ROI) (PBT/Networth)		0.14	0.21	0.44
Debt Equity Ratio (Total Liability/Networth)		5.20	6.35	10.27
Current Ratio (Current Asset/Current Liability)		1.24	1.55	2.38

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	No
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	No
34]	External Agency Rating, if available	No

PERFORMANCE

During the year the Company has achieved total income of Rs. 244.051 Millions in comparison to Rs. 346.225 Millions in the previous year. The company has achieved Net Profit after tax of Rs. 2.210 Millions in comparison to Rs. 3.534 Millions in the previous year. The directors are hopeful of better performance in the current year

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

(Rs. in Millions)

	31.03.2011
Guarantees given by Company's Bankers	0.000
Letters of Credit opened	0.000
Estimated amount of contracts remaining to be executed on capital accounts and not provided for. (Net of advances of Rs. 0.523 Millions- Previous year Rs.523. Millions)	0.478
Claim against the Company not acknowledged as Debt	0.000
Income Tax demand for Assessment year 1997-98 remaining unprovided	0.007

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U31200MH1991PTC061302
Name of the company	SIEVES MANUFACTURERS (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Shop No. 20/13^th Khetwadi Road, Bhabha Chanl, Mumbai – 400 004, Maharashtra, India Email: sales@hindustanstainless.com
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge) Floating charge
CIN, in case charge holder or ARC or assignee is a company	L65191PN1994PLC076333
Particular of charge holder	Indusind Bank Limited, Mumbai Main Branch, Indusind House, 425, Dadasaheb Bhadasaheb Marg, Mumbai-400004, Maharashtra, India Email: vlaxman@vsnl.com
Nature of instrument creating charge	Composite Agreement for Hypothecation of Stocks, Book Debts, Plant and Machinery and Other Current Assets.
Date of instrument Creating the charge	15.03.2010
Amount secured by the charge	Rs.50.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As may be stipulated by the Bank from time to time. Terms of Repayment Onrealisation/Demand Margin As may be stipulated by Bank from time to time. Extent and Operation of the charge Hypothecation of first charge on Assets as described under Item No.15 as security for repayment of Rs. 50.000 Millions, together with all interest, costs, charges, expenses and other monies due and payable under the said facilities granted by the Bank to the Borrower.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	The Whole of the moveable properties of the borrower including its moveable plant and machinery, machinery spares, tools and accessories, furniture’s and fixtures,

FIXED ASSETS

· Factory Building

· Plant and Machinery

· Electrical Installation

· Furniture and Fixtures

· Office Equipment

· Tools and Equipments

· Vehicles

· 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 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] 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.55.34
UK Pound	1	Rs.88.30
Euro	1	Rs.71.37

INFORMATION DETAILS

Report Prepared by :

MRI

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	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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		47

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.