MIRA INFORM REPORT

Report Date :

05.12.2013

IDENTIFICATION DETAILS

Name :	HINDUSTAN INOX LIMITED
Registered Office :	Block No 7, 11/12 Raghuvanshi Mansion, 1^st Floor, Raguvanshi Mill Compound, Lower Parel West, Mumbai – 400013, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	13.03.2009
Com. Reg. No.:	11-190911
Capital Investment / Paid-up Capital :	Rs.195.794 Millions
CIN No.: [Company Identification No.]	U27300MH2009PLC190911
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of stainless steel round bars, wires, pipe and tube.
No. of Employees :	65 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 920000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Management of the company has not filed its financials with the government department after the year 2011. Mr. Sudarshan from finance department provided with us all the information and also confirmed the turnover figure but the financials are not verified. As per financials of (2011). The reserves of the company appears to be low. However, trade relations are reported as fair. Business is active. Payment terms are unknown. The company 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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

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. Sudarshan
Designation :	Finance Department
Contact No.:	91-22-43401414
Date :	03.12.2013

LOCATIONS

Registered Office :	Block No 7, 11/12 Raghuvanshi Mansion, 1^st Floor, Raguvanshi Mill Compound, Lower Parel West, Mumbai – 400013, Maharashtra, India
Tel. No.:	91-22-43401414
Fax No.:	91-22-43401400
E-Mail :	hindexpo@vsnl.com accounts@hindustanstainless.com
Location :	Owned
Factory :	Located at Khopoli, Maharashtra, India

DIRECTORS

As on 30.09.2011

Name :

Mr. Ghaverchand Parasmal Bohra

Designation :

Director

Address :

8A/16, Navjeevan Society, Lamington Road, Mumbai- 400008, Maharashtra, India

Date of Birth/Age :

24.12.1954

Date of Appointment :

13.03.2009

DIN No.:

01491771

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	U31300MH1990PTC055812	VENUS WIRE INDUSTRIES PRIVATE LIMITED	Director	15/03/1990	15/03/1990	-	Active	NO
2	U45400MH2008PTC177261	VENUS ECO DEVELOPERS PRIVATE LIMITED	Director	02/01/2008	02/01/2008	-	Active	NO
3	U27300MH2009PLC190911	HINDUSTAN INOX LIMITED	Director	13/03/2009	13/03/2009	-	Active	NO

Name :

Mr. Vimal Ghevarchand Bohra

Designation :

Director

Address :

3901, Shreepati Arcade, A.K. Marg, Gwalia Tank, Mumbai- 400036, Maharashtra, India

Date of Birth/Age :

03.02.1982

Date of Appointment :

13.03.2009

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

Name :

Mr. Hemant Ghevarchand Bohra

Designation :

Director

Address :

3901, Shreepati Arcade, A.K. Marg, Gwalia Tank, Mumbai- 400036, Maharashtra, India

Date of Birth/Age :

15.07.1977

Date of Appointment :

13.03.2009

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

KEY EXECUTIVES

Name :	Mr. Sudarshan
Designation :	Finance Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Ghewarchand Bohra	9986850
Vimal Bohra	2942210
Hemant Bohra	1953830
Rajiv Bohra	2839780
Sanjay Bohra	201680
Shobhag Devi Bohra	1453360
Priya Bohra	201680
Total	19579390

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 :

Manufacturer of stainless steel round bars, wires, pipe and tube.

Products:

Item Code No.	Product Description
7222	Stailess Steel Bright Bars
7304	Stainless Steel Pipes and Tubes

Exports :

Products :

Finished Good

Countries :

Turkey

Imports :

Products :

Raw Material

Countries :

China

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit, Depend

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars
Licenced Capacity *	Not Applicable

Particulars	Unit	Installed Capacity
Steel and Alloy Steel Bright Bars, Wires	M.Tonnes	37200

(As certified by the management and accepted by auditors without verification on technical grounds)

Particulars	Unit	Production
S. S. Bright Bars	M.Tonnes	4138.653
S S Wire	M.Tonnes	973.133
S.S.Wire Rods	M.Tonnes	1171.230
Coils	M.Tonnes	Nil
Treaded Bars	M.Tonnes	59.731
Pipes & Tubes	M.Tonnes	833.230
Seamless Pipes	M.Tonnes	24.413
S.S.Scrap	M.Tonnes	252.533
Dust	M.Tonnes	15.000

GENERAL INFORMATION

Suppliers :

· M K J Tradex Limited

Customers :

Retailers and End Users

· Kominox

No. of Employees :

65 (Approximately)

Bankers :

IDBI Bank Limited, IDBI Complex, Near Lal Bunglow, C G Road, Ahmedabad - 380006, Gujarat, India

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans financial institutions secured	10.200	10.200
Rupee term loans others secured	53.630	0.000
Total	63.830	10.200

Banking Relations :	--
Auditors :
Name :	M.C Doshi and Company Chartered Accountants
Address :	307, Vaishali Apartments, 30-31 Parekh Street, Prathna Samaj, Mumbai-400004, Maharashtra, India
PAN N Income-tax PAN of auditor or auditor's firm :	AACPD4437A
Relatives of Key Management personnel and their Entreprises where transactions have taken place:	· Venus Metal Corporation · Venus Wire Industries Private Limited · Venus Fastner Industries · Venus Pipe and Tube Industries · Precision Metals · Sieves Manufacturers India Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs. 200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
19579390	Equity Shares	Rs.10/- each	Rs. 195.794 Millions

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		195.794	195.794
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		33.133	7.699
4] (Accumulated Losses)		0.000	0.000
NETWORTH		228.927	203.493
LOAN FUNDS
1] Secured Loans		63.830	10.200
2] Unsecured Loans		237.954	457.286
TOTAL BORROWING		301.784	467.486
DEFERRED TAX LIABILITIES		10.326	3.296
TOTAL		541.037	674.275
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		448.768	328.606
Capital work-in-progress		9.281	113.957
INVESTMENT		7.427	5.522
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	285.278	194.984
	Sundry Debtors	196.958	107.706
	Cash & Bank Balances	8.301	2.851
	Other Current Assets	0.000	0.056
	Loans & Advances	102.003	71.400
Total Current Assets		592.540	376.997
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	487.343	136.985
	Other Current Liabilities	24.299	12.637
	Provisions	6.335	2.431
Total Current Liabilities		517.977	152.053
Net Current Assets		74.563	224.944
MISCELLANEOUS EXPENSES		0.998	1.246
TOTAL		541.037	674.275

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Income	1040.016	349.342
		Other Income	16.690	6.233
		TOTAL (A)	1056.706	355.575
Less	EXPENSES
		Consumption materials changes inventories	907.874	312.753
		Manufacturing service costs	34.679	13.474
		Contract cost	0.000	0.126
		Employee related expenses	4.316	4.165
		Administrative selling other expenses	21.189	21.811
		Prior period items	0.055	0.000
		TOTAL (B)	968.113	352.329
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		88.593	3.246
Less	FINANCIAL EXPENSES (D)		33.850	(15.593)
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		54.743	18.839
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.327	5.231
	PROFIT BEFORE TAX (E-F) (G)		41.416	13.608
Less	TAX (H)		15.982	5.909
	PROFIT AFTER TAX (G-H) (I)		25.434	7.699
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		7.699	0.000
	BALANCE CARRIED TO THE B/S		33.133	7.699
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	704.700	298.866
	TOTAL EARNINGS		704.700	298.866
	IMPORTS
		Raw Materials	112.256	30.038
		Capital Goods	0.000	1.003
	TOTAL IMPORTS		112.256	31.041
	Earnings Per Share (Rs.)		1.30	NA

Particulars	31.03.2013	31.03.2012
Sales Turnover (Approximately)	1760.000	1410.000

The above information has been parted by Mr. Sudarshan (Finance Department)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010
PAT / Total Income	(%)	2.41	2.17
Net Profit Margin (PBT/Sales)	(%)	3.98	3.90
Return on Total Assets (PBT/Total Assets}	(%)	3.98	1.93
Return on Investment (ROI) (PBT/Networth)		0.18	0.07
Debt Equity Ratio (Total Debt /Networth)		1.32	2.30
Current Ratio (Current Asset/Current Liability)		1.14	2.48

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 four 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	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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 under report the Company has performed well and has achieved total income of Rs. 1135.658 Millions in comparison to Rs. 485.648 Millions in the previous year. The Company has earned Profit of Rs.25.434 Millions in comparison to Profit of Rs. 7.699 Millions in the previous year. The directors are hopeful of even better performance in the next financial year.

UNSECURED LOAN

PARTICULARS	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans financial institutions unsecured	4.878	4.471
Rupee term loans others unsecured	233.076	452.815
Total	237.954	457.286

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10314792	07/08/2013 *	800,000,000.00	IDBI BANK LIMITED JOINTLY WITH ALLAHABAD BANK	IDBI COMPLEX, NEAR LAL BUNGLOW, C G ROAD, AHMEDABAD, GUJARAT - 380006, INDIA	B86066578
2	10314907	07/09/2011	500,000,000.00	IDBI BANK LIMITED	IDBI COMPLEX, NEAR LAL BUNGLOW, C G ROAD, AHMEDABAD, GUJARAT - 380006, INDIA	B24202186

* Date of charge modification

CONTINGENT LIABILITIES (AS ON 31.03.2011):

(a) Estimated amount of contracts remaining to be executed on capital accounts and not provided for - Rs 3.318 Millions (Previous Year Rs 2.897 Millions)

(b) Claims against the firm not acknowledged as debts- Nil (Previous Year Rs Nil)

(c) In respect of Gurantees given by firm's banker's Rs 0.325 Millions (Previous Year Rs 0.325 Millions)

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.62.33
UK Pound	1	Rs.102.18
Euro	1	Rs.84.68

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
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	2
--CREDIT LINES	1~10	2
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		26

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.