MIRA INFORM REPORT

Report Date :

02.08.2013

IDENTIFICATION DETAILS

Name :	VINAYAK TMT BARS PRIVATE LIMITED
Registered Office :	State Highway No. 69, Dehgam – Bayed Road, Village, Barot Na Mosampur, Post – Sampa, Dehgam – 382305, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.07.2008
Com. Reg. No.:	04-054624
Capital Investment / Paid-up Capital :	Rs.20.000 Millions
CIN No.: [Company Identification No.]	U27310GJ2008PTC054624
PAN No.: [Permanent Account No.]	AACCV8071H
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of TMT Bars and Structural Steel
No. of Employees :	250 (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 284000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. External borrowing of the company appears to be increasing over the years. The profit margin of the company appears to be low. However trade relations are fair. Business is active. Payments terms are slow but correct. The concern can be considered for business dealings with some caution

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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities BB-
Rating Explanation	Moderate risk of default
Date	March 22, 2013

Rating Agency Name	CARE
Rating	Short term bank facilities A4
Rating Explanation	Minimal degree of safety and very high credit risk
Date	March 22, 2013

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.

INFORMATION PARTED BY

Name :	Mr. Vasant Patel
Designation :	Director
Contact No.:	91-9909930057
Date :	01.08.2013

LOCATIONS

Registered Office / Factory :	State Highway No. 69, Dehgam – Bayed Road, Village, Barot Na Mosampur, Post – Sampa, Dehgam – 382305, Gujarat
Tel. No.:	91-2716-296251
Mobile No.:	91-9909930057 (Mr. Vasant Patel)
Fax No.:	Not Available
E-Mail :	Vinayak.tmtbars@gmail.com
Website :	www.vinayaktmtbars.com
Location :	Owned

DIRECTORS

As on: 29.09.2012

Name :	Mr. Jagdishkumar Hansarajbhai Patel
Designation :	Director
Address :	Magodi Lat, Magodi, Dabhoda Dehgam - 382355, Gandhinagar, Gujarat, India
Date of Birth/Age :	01.06.1967
Date of Appointment :	01.02.2009
DIN No. :	02468779
PAN No.	AMLPP9204A
Name :	Mr. Vasantbhai Shivdasbhai Patel
Designation :	Director
Address :	8/A, Vinayak Park, Dehgam - 382305, Gandhinagar, Gujarat, India
Date of Birth/Age :	08.05.1973
Date of Appointment :	01.02.2009
DIN No. :	02468789
PAN No.	AETPP0714L
Name :	Mr. Prakash Patel
Designation :	Director
Address :	4, Vinayak Park, Dehgam - 382305, Gandhinagar, Gujarat, India
Date of Birth/Age :	11.07.1982
Date of Appointment :	01.02.2009
DIN No. :	02371548
PAN No.	AGPP4448L
Name :	Mr. Mukeshbhai Babulal Patel
Designation :	Director
Address :	E-302, Sajan Appartment’ Ramdevnagar - Anandnagar Road, Satellite, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	03.01.1966
Date of Appointment :	01.02.2009
DIN No. :	00241325
PAN No.	AGAPP2148Q
Name :	Mr. Karsan Devji Patel
Designation :	Director
Address :	4, Vinayak Park, Behind Atithi Hotel, Dehgam – 382305, Gandhinagar, Gujarat, India
Date of Birth/Age :	05.01.1955
Date of Appointment :	29.07.2008
DIN No. :	00621993
PAN No.	AFGPP2648G
Name :	Mr. Rajendrakumar Devkinandan Shah
Designation :	Director
Address :	30, Laxminarayan Society, Dehgam – 382305, Gandhinagar, Gujarat, India
Date of Birth/Age :	08.07.1970
Date of Appointment :	01.02.2009
DIN No. :	02371384
PAN No.	AGSPS7171G
Name :	Mr. Shantilal Kailashchandra Shah
Designation :	Director
Address :	8 Rajasthan Society, Pramukhswami Road, Dehgam-382305, Gandhinagar, Gujarat, India
Date of Birth/Age :	05.07.1976
Date of Appointment :	31.10.2010
DIN No. :	03297356
PAN No.	AGSPS7168K

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Patel Dayabhai Gangaram	2490
Patel Gangarambhai Bharatbhai	2500
Patel Dayabhai Bharatbhai	2500
Patel Bhanjibhai Babubhai	2000
Patel Dhanjibhai Dhirajbhai	2000
Patel Valjibhai Hanshrajbhai	2500
Patel Hanshrajbhai Jagdishbhai	2500
Patel Hanshrajibhai Maheshbhai	3500
Patel Maheshbhai Suchit	2500
Patel Maheshbhai Ushaben	2500
Patel Kantilal Vishal	2000
Patel Dhanjibhai Kanubhai	2000
Patel Babubhai Mukeshbhai	10000
Patel Karsanbhai Purshottambhai	2000
Shah Jankilal Radheshyambhai	1400
Shah Radheshyambhai Pratik	1000
Patel Ravibhai Rasikbhai	5000
Jay Ambe Himgar Private Limited, India	8000
Patel Devjibhai Karsanbhai	2490
Patel Karsanbhai Maniben	2500

As on: 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	8.00
Directors or relatives of Directors	44.90
Other top fifty shareholders	47.10
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of TMT Bars and Structural Steel

Product :

• TMT Bars (8mm To 32mm)
• MS TMT Bars (8mm To 32mm)

ITC No	Product or Services
72149990	TMT Bars

Brand Names :

VINAYAK 500

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS AS ON (31.03.2012)

Particulars	Unit	Installed Capacity	Actual Production
TMT Bars	(M.T.)	90000.000	66876.850

GENERAL INFORMATION

Customers :

Others

No. of Employees :

250 (Approximately)

Bankers :

State Bank of India, Dehgam Branch, Dehgam – 382305, Gujarat, India

Facilities :

Secured Loan	31.03.2012 [Rs. in Millions]	31.03.2011 [Rs. in Millions]
Long Term Borrowing
Rupee term loans from banks	26.364	41.892
Short Term Borrowing
Loans repayable on demand from banks	139.535	84.470
Total	165.899	126.362

Banking Relations :	--
Auditors :
Name :	Jethaliya and Associates Chartered Accountants
Address :	1^st Floor, Sapphire Business Center, Above SBI Vadaj Branch, Usmanpura, Ahmedabad – 380013, Gujarat, India
PAN No. :	AAEFJ8340A

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Millions
100000	Preference Shares	Rs.100/- each	Rs.10.000 Millions
	Total		Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100000	Preference Shares	Rs.100/- each	Rs.10.000 Millions
100000	Preference Shares	Rs.100/- each	Rs.10.000 Millions
	Total		Rs.20.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	20.000	20.000
(b) Reserves & Surplus	51.180	21.634
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	71.180	41.634
(3) Non-Current Liabilities
(a) long-term borrowings	77.453	86.890
(b) Deferred tax liabilities (Net)	0.866	2.895
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	78.319	89.785
(4) Current Liabilities
(a) Short term borrowings	139.535	99.969
(b) Trade payables	30.848	59.280
(c) Other current liabilities	32.856	30.250
(d) Short-term provisions	6.610	1.889
Total Current Liabilities (4)	209.849	191.388
TOTAL	359.348	322.807
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	92.761	103.795
(ii) Intangible Assets	0.023	0.039
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.542	0.032
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	93.326	103.866
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	90.283	116.886
(c) Trade receivables	141.712	55.856
(d) Cash and cash equivalents	20.449	26.350
(e) Short-term loans and advances	5.693	19.849
(f) Other current assets	7.885	0.000
Total Current Assets	266.022	218.941
TOTAL	359.348	322.807

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		20.000
2] Share Application Money		0.000
3] Reserves & Surplus		4.512
4] (Accumulated Losses)		0.000
NETWORTH		24.512
LOAN FUNDS
1] Secured Loans		109.861
2] Unsecured Loans		71.150
TOTAL BORROWING		181.011
DEFERRED TAX LIABILITIES		2.032
TOTAL		207.555
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		108.464
Capital work-in-progress		0.194
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	73.146
	Sundry Debtors	67.647
	Cash & Bank Balances	10.813
	Other Current Assets	0.000
	Loans & Advances	21.483
Total Current Assets		173.089
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	62.727
	Other Current Liabilities	10.185
	Provisions	1.280
Total Current Liabilities		74.192
Net Current Assets		98.897
MISCELLANEOUS EXPENSES		0.000
TOTAL		207.555

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL	3008.551	1993.341	619.302
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	2940.973	1953.575	603.220
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		67.578	39.766	16.082
Less/ Add	DEPRECIATION/ AMORTISATION		21.760	13.757	8.258
	PROFIT BEFORE TAX		45.818	26.009	7.824
Less	TAX		16.272	8.887	3.312
	PROFIT AFTER TAX		29.546	17.122	4.512
	Earnings Per Share (Rs.)		295.46	171.22	45.12

Particulars	31.03.2013
Sales Turnover	3600.000

The above information has been parted by Mr. Vasant Patel

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.98	0.86	0.73
Return on Total Assets (PBT/Total Assets}	(%)	12.77	8.06	2.78
Return on Investment (ROI) (PBT/Networth)		0.64	0.62	0.31
Debt Equity Ratio (Total Debt /Networth)		3.04	4.49	7.38
Current Ratio (Current Asset/Current Liability)		1.27	1.14	2.33

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	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%	----------------------
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	Yes
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN:

	31.03.2012 [Rs. in Millions]	31.03.2011 [Rs. in Millions]
Long Term Borrowing
Deposits from shareholders	12.549	11.053
Loans and advances from related parties	38.540	33.944
Short Term Borrowing
Interoperate deposits	0.000	15.500
Total	51.089	60.497

REVIEW OF OPERATIONS:

For the year ended 31st March, 2012, the Turnover of the Company was Rs. 3008.551 millions against Rs. 1993.341 millions for the previous year, showing an increase by 50.93%. The Company has achieved a milestone by crossing Rs. 3000.000 million marks in terms of turnover. The net profit before taxation for the year is Rs. 45.818 millions. As against Rs.26.009 millions for the previous year, showing an increase by 76.16%.

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10162209	30/11/2011 *	216,400,000.00	STATE BANK OF INDIA	Dehgam Branch, Dehgam, Gujarat - 382305, India	B28534683
2	10162210	30/11/2011 *	216,400,000.00	STATE BANK OF INDIA	Dehgam Branch, Dehgam, Gujarat - 382305, India	B28534840

* Date of charge modification

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 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.60.74
UK Pound	1	Rs.92.05
Euro	1	Rs.80.60S

INFORMATION DETAILS

Information Gathered by :	NAY
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
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	3
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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

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.