MIRA INFORM REPORT

Report Date :

18.02.2013

IDENTIFICATION DETAILS

Name :	OSWAL INDUSTRIES LIMITED (w.e.f. 11.11.1994)
Formerly Known As :	OSWAL CASTINGS LIMITED (w.e.f 11.11.1994) OSWAL CASTINGS PRIVATE LIMITED
Registered Office :	Survey No. 4, Village Blieshwarpura, P. O. Chattral, Taluka Kalol, District : Gandhinagar - 382729, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	19.03.1983
Com. Reg. No.:	04-006037
Capital Investment / Paid-up Capital :	Rs. 93.594 millions
CIN No.: [Company Identification No.]	L27100GJ1983PLC006037
IEC No.:	0895006383
TAN No.: [Tax Deduction & Collection Account No.]	AHMO00419G
PAN No.: [Permanent Account No.]	AAACO3443L
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer and Exporter of Industrial Valves.
No. of Employees :	350 (approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 2050000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having a satisfactory track record. The performance capacity appears to be high. Financially seems to be strong. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal business dealings at usual trade terms and condition.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BBB (Long Term Rating)
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligations it carry moderate credit risk.
Date	March 2012

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 DENIED BY

Name :	Mr. Sanjay
Designation :	Accounts Department
Contact No.:	91-2764-304700
Date :	12.02.2013

LOCATIONS

Registered Office / Factory :	Survey No. 4, Village Blieshwarpura, P. O. Chattral, Taluka Kalol, District : Gandhinagar - 382729, Gujarat, India
Tel. No.:	91-2764-232261/233661/226885/304700
Fax No.:	91-2764-233411/226882
E-Mail :	accounts@oswalind.com foundry@oswalvalves.com sales@oswalcasting.com
Website :	www.oswalvalves.com
Factory 1 :	Ravi Industrial Estate, Village Bileshwarpura, District : Gandhinagar, Gujarat, India
Factory 2 :	Block No. 258, Ahmedabad – Mehsana Expressway, Village – Ola, Post – Island, Taluka- Kalol, District- Gandhinagar - 382740, Gujarat. India

DIRECTORS

As on 30.09.2011

Name :	Mr. Babulal H Bokadia
Designation :	Chairman and Managing Director
Address :	3, Manipushpa Society, Part – 6, Near Surdhara Circle, Thaltej, Ahmedabad – 380 054, Gujarat, India
Date of Birth/Age :	27.02.1958
Qualification :	SSC examination from Rajasthan State Board
Experience :	30 years
Date of Appointment :	19.03.1983
DIN No.:	00559976
Name :	Mr. Arvind Kumar Bhandari
Designation :	Non - Executive Director
Address :	101, Samprat Residency - II, Behind Styagrah Chavni, Bodakdev, ahmedbad-380 054, Gujarat, India
Date of Birth/Age :	02.04.1949
Qualification :	M. Sc degree from PAU, Uttar Pradesh
Experience :	35 years
Date of Appointment :	31.10.2009
DIN No.:	00586234
Name :	Mr. Gulam Mohammed Ghouse
Designation :	Executive Director
Address :	8 – A, Picadilly Flats. Clare Road, Byculla, Mumbai – 400 008, Maharashtra, India
Date of Birth/Age :	24.11.1948
Date of Appointment :	29.01.2011
DIN No.:	00591038
Name :	Mr. Neeraj Yadav
Designation :	Non - Executive Director
Address :	Sardar Patel Marg, Jaipur - 302 019, Rajasthan, India
Date of Birth/Age :	23.08.1974
Qualification :	BE (Production and Industrial Engineering) degree from University of Rajasthan Institute and MBA (Operations management) degree from IGNOU
Experience :	10 years
Date of Appointment :	14.09.2009
DIN No.:	00839896
Name :	Mr. Ratan Bokadia
Designation :	Executive Director
Address :	Above Shah Super Market, Kalol (N.G.)
Date of Birth/Age :	16.08.1978
Qualification :	Diploma in Mechanical Engineering from North Gujarat University
Experience :	11 years
Date of Appointment :	16.08.2001
DIN No.:	02219340
Name :	Mr. Jitendra H Bokadia
Designation :	Executive Director
Address :	191, 19 Rusha8h Apartment, Parekh Street, Pratna Samaj, Mumbai - 400 004, Maharashtra, India
Date of Birth/Age :	36 years
Qualification :	SSC examination from Rajasthan State Board
Experience :	20 years
Date of Appointment :	01.08.1993
DIN No.:	02219590
Name :	Mr. Ravi Parasmalji Doshi
Designation :	Executive Director
Address :	454, S.V.P. Road, Peerbhoy Mansion, 3^RD Floor, Flat No. 26, Mumbai – 400 004, Maharashtra, India
Date of Birth/Age :	29.07.1982
Qualification :	MBA (International Business) degree from London Metropolitan University, Certificate Course from Keil University-Germany and Business English Certification by University of Cambridge
Experience :	7 years
Date of Appointment :	23.08.2005
DIN No.:	02219600
Name :	Mr. Jayant Babulal Bokadia
Designation :	Executive Director
Address :	3, Manipushpa Society, Part – 6, Near Surdhara Circle, Thaltej, Ahmedabad – 380 054, Gujarat, India
Date of Birth/Age :	09.06.1982
Qualification :	Bachelor of Computers degree from Narsinbhai Patel College of Computer Studies & MBA (Finance) degree from AMA Gujarat
Experience :	7 years
Date of Appointment :	23.08.2005
DIN No.:	02408771
Name :	Mr. Ashok Bhatia
Designation :	Non - Executive Director
Address :	Lalit, Plot No. 69, Opposite Gymkhana, Sector - 19, Ghadhinagar - 382 019, Gujarat, India
Date of Birth/Age :	30.01.2010
Qualification :	MA degree from Allahabad University, retired IAS officer
Experience :	36 years
Date of Appointment :	30.01.2010
DIN No.:	02925556
Name :	Mr. Rashmikant Chhabildas Mehta
Designation :	Non - Executive Director
Address :	27, Samadhur Society, Behind Ocean Park, Satellite Road, Ahmedabad - 380 015, Gujarat, India
Date of Birth/Age :	04.10.1948
Qualification :	Chartered Accountant
Experience :	35 years
Date of Appointment :	03.02.2010
DIN No.:	02933012

KEY EXECUTIVES

Name :	Mr. Rajeev Kumar Chechani
Designation :	Secretary
Address :	C / O, Exim Enterprise, 222, 2^nd Floor, Devapath, Behind Navrangpura Telephone Exchange, Off C. G. Road, Ahmedabad – 380 006, Gujarat, India
Date of Birth/Age :	06.07.1969
Date of Appointment :	01.11.2010
PAN No.:	AOKPC0014Q

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

MAJOR SHAREHOLDERS DETAILS ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Bodies corporate	27.89
Directors or relatives of Directors	66.98
Other top fifty shareholders	4.03
Others	1.10
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Industrial Valves.

Products :

· Gate valve

· API 6D Through Conduct Gate

· Globe Valve

· DIN Globe Valve PN

· Trunnion Mounted Ball Valve

Product Description	ITC Code
Casting and cast article of stainless steel	7325.9
Casting and cast articles of stainless steel	7325.3

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
M S and S S Casting	MT	3000	3000
Valve	No.	40000	40000

GENERAL INFORMATION

No. of Employees :

350 (approximately)

Bankers :

· HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

· Punjab National Bank, LCB Nilkamal Building, Opposite Sales India, Ashram Road, Ahmedabad – 380 009, Gujarat, India

· Punjab National Bank, International Banking Branch, Neelkamal Complex, Opposite Sales India, Ashram Road, Ahmedabad – 380 009, Gujarat, India

· HDFC Bank Limited, Navrangpura, Ahmedabad, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
Working Capital Loans from Banks	355.531	278.574
Loans taken for Fixed Assets	3.301	0.708
Total	358.832	279.282

Banking Relations :	--
Auditors :
Name :	Mehta Lodha and Company Chartered Accountants
Address :	105, Sakar – 1^st Floor, Opposite Gandhigram Railway Station, Ashram Road, Ahmedabad – 380 009, Gujarat, India
Tel. No.:	91-79-26586683/ 84/85
Fax No.:	91-79-26586684
PAN No.:	AACFM6805H
Associates/Subsidiaries :	Metal Forge India Mechwell Fittings Private Limited Oswal Infrastructure Limited

CAPITAL STRUCTURE

As on 30.09.2011

Authorized Capital:

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs. 10/- each	Rs. 150.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
9359400	Equity Shares	Rs. 10/- each	Rs. 93.594 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		93.594	93.594	93.594
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		421.259	340.966	261.630
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		514.853	434.560	355.224
LOAN FUNDS
1] Secured Loans		358.832	279.282	195.972
2] Unsecured Loans		1.331	92.579	0.407
TOTAL BORROWING		360.163	371.861	196.379
DEFERRED TAX LIABILITIES		35.934	22.040	21.665
TOTAL		910.950	828.461	573.268
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		349.863	276.012	256.409
Capital work-in-progress		10.919	5.218	1.158
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	368.759	138.010	135.964
	Sundry Debtors	215.661	340.808	199.024
	Cash & Bank Balances	31.513	26.349	17.171
	Other Current Assets	9.173	11.168	0.000
	Loans & Advances	58.432	182.814	59.263
Total Current Assets		683.538	699.149	411.422
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	98.937	124.949	92.228
	Other Current Liabilities	33.236	25.579	5.135
	Provisions	1.197	1.390	4.708
Total Current Liabilities		133.370	151.918	102.071
Net Current Assets		550.168	547.231	309.351
MISCELLANEOUS EXPENSES		0.000	0.000	6.350
TOTAL		910.950	828.461	573.268

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1015.803	1007.943	823.445
		Other Income	12.501	18.242	8.156
		TOTAL (A)	1028.304	1026.185	831.601
Less	EXPENSES
		Cost of materials consumed	747.400	580.442
		Purchases of stock-in-trade	0.000	3.987
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(208.770)	12.748
		Employee benefit expense	75.409	55.803
		Other expenses	214.966	168.747
		TOTAL (B)	829.005	821.727	662.008
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)		199.299	204.458	169.593
Less	FINANCIAL EXPENSES (D)		37.695	36.892	17.843
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		161.604	167.566	151.750
Less/ Add	DEPRECIATION/ AMORTISATION (F)		31.472	27.602	26.947
Add	Prior period Items		(0.085)	(0.506)	(2.044)
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		130.047	139.458	122.759
Less	TAX (H)		38.840	49.209	38.448
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		91.207	90.249	84.311
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	170.828	102.466
Less	APPROPRIATIONS
		Transfer to General Reserve			5.000
		Dividend			9.359
		Dividend Tax			1.590
		Provision of Deprecation of earlier years			0.000
	BALANCE CARRIED TO THE B/S		NA	NA	170.828
	IMPORTS		NA	NA	5.676
	Earnings/(Loss) Per Share (Rs.)		9.74	9.64	9.01

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	8.87	8.79	10.14
Net Profit Margin (PBT/Sales)	(%)	12.80	13.83	14.91
Return on Total Assets (PBT/Total Assets}	(%)	12.58	14.30	18.38
Return on Investment (ROI) (PBT/Networth)		0.25	0.32	0.34
Debt Equity Ratio (Total Debt/Networth)		0.69	0.85	0.55
Current Ratio (Current Asset/Current Liability)		5.12	4.60	4.03

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

(Rs. in millions)

Particulars	31.03.2012	31.03.2011	31.03.2010
Sundry Creditors	98.937	124.949	92.228
TOTAL	98.937	124.949	92.228

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	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	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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN:

(Rs. in Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
Loans and Advances from Related Parties	1.331	0.000
Deposits	0.000	92.579
Total	1.331	92.579

FIXED ASSETS:

· Freehold Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixtures

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.53.99
UK Pound	1	Rs.83.72
Euro	1	Rs.72.09

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	NID

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.