MIRA INFORM REPORT

Report Date :

12.01.2013

IDENTIFICATION DETAILS

Name :	SHAH BROTHERS ISPAT PRIVATE LIMITED
Registered Office :	5A/5B, Trust House, Dr. E Broges Road, Opposite Shirodkar High School, Parel (East), Mumbai – 400012, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	04.08.2004
Com. Reg. No.:	11-147842
Capital Investment / Paid-up Capital :	Rs. 14.350 Millions
CIN No.: [Company Identification No.]	U27101MH2004PTC147842
TAN No.: [Tax Deduction & Collection Account No.]	MUMS45609E
PAN No.: [Permanent Account No.]	AAKCS2766A
Legal Form :	Private Limited Liability Company
Line of Business :	Trader, Exporter and Importer of Ferrous and Non Ferrous Metals.
No. of Employees :	80 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 5090000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Networth of the company is good. The promoters of the company is found to have long experience in the iron and steel business. However, there appears risk of foreign exchange fluctuations as about 50% of the subject’s purchases are met through imports. It is also susceptible to volatility in steel prices on account of its freehold inventory. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with slight caution. Profit and loss account for 2010-11 and 2011-12 of the company is not available.

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	ICRA
Rating	Short Term Non Fund Based Limit : A4+
Rating Explanation	The risk prone credit quality. it carry high credit risk.
Date	September 21, 2012

Rating Agency Name	ICRA
Rating	Long Term Fund Based Limit : BB+
Rating Explanation	The inadequate credit quality. it carry high credit risk.
Date	September 21, 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 DECLINED

MANAGEMENT NON CO-OPERATIVE (91-22-23445445)

LOCATIONS

Registered Office/Factory :	5A/5B, Trust House, Dr. E Broges Road, Opposite Shirodkar High School, Parel (East), Mumbai – 400012, Maharashtra, India
Tel. No.:	91-22-23445445 / 6 / 3 / 23480445 [5 Lines]/ 40555444
Fax No.:	91-22-23436928 / 23486928/ 40555454
E-Mail :	sbco@vsnl.com sales@sbispat.com
Web Site:	www.sbispat.com
Location:	Leased
Warehouse 1 :	L-5 Taloja Industrial Area, MIDC, Taluka- Panvel, District – Raigad, Maharashtra, India
Location:	Owned
Warehouse 2 :	1425/1426/1427 Kalamboli Warehouse Complex, Kalamboili, Navi Mumbai – 410 218, Maharashtra, India
Location:	Owned
Branch Office :	Located at: Ø Bangalore Ø Bhilai Ø Chennai Ø Delhi Ø Hyderabad Ø Vadodara Ø Dubai

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Rajesh Chinubhai Shah
Designation :	Director
Address :	31 Anupam, 11, Manav Mandir Road, Walkeshwar, Mumbai – 400006, Maharashtra, India
Qualification :	B.Com
Date of Appointment :	04.08.2004
PAN No.:	AQQPS4800C
DIN No.:	00022645
Name :	Mr. Sanjiv Pravin Mehta
Designation :	Director
Address :	15, Nirmal Mahal, Bomanji Petit Road, Mumbai - 400026, Maharashtra, India
Date of Birth/Age :	14.12.1963
Qualification :	B.Com
Date of Appointment :	04.08.2004
PAN No.:	AACPM6814E
DIN No.:	00022691
Name :	Mr. Chinubhai Himatlal Shah
Designation :	Director
Address :	13/3, Anupam, Manav Mandir Road, Malabar Hill, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	13.03.1936
Qualification :	SSC
Date of Appointment :	04.08.2006
PAN No.:	ANVPS8248Q
DIN No.:	00022747
Name :	Mr. Pravin Pranlal Mehta
Designation :	Director
Address :	15, Nirmal Mahal, Bomanji Petit Road, Mumbai - 400026, Maharashtra, India
Date of Birth/Age :	31.08.1935
Qualification :	SSC
Date of Appointment :	04.08.2004
DIN No.:	00026803
Name :	Mr. Dharmesh Chinubhai Shah
Designation :	Director
Address :	1-A/1, Giriraj, 11, Altamount Road, Mumbai - 400006, Maharashtra, India
Date of Birth/Age :	25.06.1964
Qualification :	B.Com
Date of Appointment :	04.08.2004
PAN No.:	AAGPS0780D
DIN No.:	00038177

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Chinubhai Himatlal Shah Jointly Manjuben C Shah Jointly Dharmesh C Shah	72000
Chinubhai Himatlal Shah Jointly Manjuben C Shah Jointly Rajesh C Shah	72000
Pravin Pranlal Mehta Jointly Ranjanbala Mehta Jointly Sanjiv Mehta	215250
Sanjiv Pravin Mehta Jointly Heena Mehta	257000
Dharmesh Chinubhai Shah Jointly Sangeeta Shah	243950
Rajesh Chinubhai Shah Jointly Minal Shah	243950
Ranjanbala Pravin Mehta Jointly Pravin P Mehta Jointly Sanjiv P Mehta	80000
Heena Sanjiv Mehta Jointly Sanjiv P Mehta	143500
Pravin P Mehta HUF through its Karta Pravin P Mehta	10000
Ranjanbala P. Mehta Jointly Pravin P. Mehta	11750
Chinubhai H. Shah Jointly Manjula C. Shah	85600
Total	1435000

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader, Exporter and Importer of Ferrous and Non Ferrous Metals.
Products :	· Ferrous · Non - Ferrous Metal · Boiler Quality Plates · High Tensile Steel Plate · Alloy Steel Plate · Mild Steel Products · HR Coils

GENERAL INFORMATION

No. of Employees :

80 (Approximately)

Bankers :

Ø Central Bank of India, Corporate Finance Branch, 1^st Floor, M.M.O Building, M G Road, Fort, Mumbai - 400023, Maharashtra, India

Ø Bank of Baroda , Cuffe Parade Branch, G.D. Somani School Building, Mumbai – 400005, Maharashtra, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Other loans and advances, others	1.680	0.321
Loans repayable on demand	291.546	240.990
Total	293.226	241.311

Banking Relations :	--
Auditors :
Name :	H.M. Mody and Company Chartered Accountants
Address :	12, Indus Court, A Road, Churchgate, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-22046924
Fax No.:	91-22-22873255
Income-tax PAN of auditor or auditor's firm :	AGBPM4701B
Subsidiaries :	Shah Brothers Ispat FZE
Related Parties :	Ø Peace Fort Chemind Engineering Private Limited Ø New Excelsior Theatre Private Limited Ø Meshco Steels

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1,500,000	Equity Shares	Rs. 10/- each	Rs. 15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,435,000	Equity Shares	Rs. 10/- each	Rs. 14.350 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		14.350	14.350	9.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1258.412	1200.815	634.591
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1272.762	1215.165	643.591
LOAN FUNDS
1] Secured Loans		293.226	241.311	261.564
2] Unsecured Loans		84.571	45.831	187.500
TOTAL BORROWING		377.797	287.142	449.064
DEFERRED TAX LIABILITIES		0.000	0.000	1.472
TOTAL		1650.559	1502.307	1094.127
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		475.536	409.503	295.945
Capital work-in-progress		51.050	1.660	0.000
INVESTMENT		1.987	1.987	0.000
DEFERRED TAX ASSETS		16.944	25.686	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1194.413	1938.672	1241.357
	Sundry Debtors	2078.128	1896.753	2291.042
	Cash & Bank Balances	465.203	523.356	603.147
	Other Current Assets	62.232	16.998	0.000
	Loans & Advances	231.098	178.410	386.334
Total Current Assets		4031.074	4554.189	4521.880
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2892.187	3115.010	3152.059
	Other Current Liabilities	33.398	285.910	407.836
	Provisions	0.447	89.798	163.803
Total Current Liabilities		2926.032	3490.718	3723.698
Net Current Assets		1105.042	1063.471	798.182
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1650.559	1502.307	1094.127

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income			7851.491
		Other Income			334.609
		TOTAL (A)	N.A.	N.A.	8186.100
Less	EXPENSES
		Cost of sales			7442.329
		Administration and other expenses			189.477
		Preliminary expenses written off			0.036
		Increase / decrease in stock			178.956
		TOTAL (B)	N.A.	N.A.	7810.798
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)				375.302
Less	FINANCIAL EXPENSES (D)				109.022
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)				266.280
Less/ Add	DEPRECIATION/ AMORTISATION (F)				6.518
	PROFIT BEFORE TAX (E-F) (G)		N.A.	N.A.	259.762
Less	TAX (H)		N.A.	N.A.	40.074
	PROFIT AFTER TAX (G-H) (I)		N.A.	N.A.	219.688
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.000	0.000	108.786
	IMPORTS
		Trading Goods	N.A.	4485.168	N.A.
	Earnings Per Share (Rs.)		N.A.	N.A.	244.10

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	N.A.	N.A.	2.68
Net Profit Margin (PBT/Sales)	(%)	N.A.	N.A.	3.31
Return on Total Assets (PBT/Total Assets}	(%)	N.A.	N.A.	5.39
Return on Investment (ROI) (PBT/Networth)		N.A.	N.A.	0.40
Debt Equity Ratio (Total Liability/Networth)		2.60	3.11	6.48
Current Ratio (Current Asset/Current Liability)		1.38	1.30	1.21

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Trade payable	2892.187	3115.010	3152.059

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	No
10]	Designation of contact person	No
11]	Turnover of firm for last one year	Yes
12]	Profitability for last one year	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Rupee term loans from others	74.571	35.831
Other loans and advances	10.000	10.000
Total	84.571	45.831

CORPORATE INFORMATION

The year 1958 marked the beginning of a transformation in the Indian steel industry, with the founding of Shah Brothers. It was the passion, zeal and the vision of its founders that has brought the group a long way from being a broking firm and staying in step with the market trade activities, to being the largest importers and distributors of Boiler Quality Steel Plates in India today.

Subject made its mark in the industry by pioneering the import of Boiler Quality Steel plates into India and marketing imports from uncharted regions such as Romania, Ukraine, Russia and China.

The group truly believes in the ideology that coming together is a beginning, working together is progress and forging ahead together is success. They take pride in having established, nurtured and cemented relationships with world leaders such as Arcelor Mittal - Romania, Duferco S.A. - Switzerland (owners of Alchevsk - Ukraine, Clabecq - Belgium, Huta - Poland) and Wuyang Iron and Steel Co. - China.

Exceeding expectations and creating new benchmarks with every achievement, SBIPL maintains its presence and standing in the industry with a sense of pride.

With its headquarters strategically located in Mumbai, the gateway of Indian trade and commerce, this dynamic group continues to ensure the smooth flow of inbound cargo to the satisfaction of its national and international clients efficiently.

CONTINGENT LIABILITIES

Claims against company not acknowledged as debt – Rs. 158.004 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. 54.54
UK Pound	1	Rs. 88.05
Euro	1	Rs. 72.29

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		36

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.