MIRA INFORM REPORT

Report Date :

07.06.2013

IDENTIFICATION DETAILS

Name :	STEEL STRONG VALVES (INDIA) PRIVATE LIMITED
Registered Office :	Plot No. 241, T.T.C. Industrial Area, M.I.D.C. Rabale – 400701, Navi Mumbai, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	09.12.1993
Com. Reg. No.:	11-075537
Capital Investment / Paid-up Capital :	Rs.11.667 Millions
CIN No.: [Company Identification No.]	U28910MH1993PTC075537
TAN No.: [Tax Deduction & Collection Account No.]	MUMS19360F
PAN No.: [Permanent Account No.]	AAACS7348N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Engineering Goods (Industrial Valves) Various types of Valves.
No. of Employees :	300 (Approximately)

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 700000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings 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.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	SME 2+
Rating Explanation	High credit quality.
Date	08.10.2012

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 PARTED BY

Name :	Mr. Manohar Goswami
Designation :	Senior Accounts Manager
Contact No.:	91-9223233565
Date :	06.06.2013

LOCATIONS

Registered Office /Marketing Office and Plant No. I :

Plot No. 241, T.T.C. Industrial Area, M.I.D.C. Rabale – 400701, Navi Mumbai, Maharashtra, India

Tel. No.:

91-22-27690074 / 27695536 / 27607005 / 27699489 / 27699490

Mobile No.:

91-9223233565 [Mr. Manohar Goswami]

Fax No.:

91-22-27695537

E-Mail :

steelstrongvalve@mtnl.net.in

adminsteelstrong@steelstrong.com

strong@bom3.vsnl.net.in

mkt1@steelstrong.com

mkt2@steelstrong.com

mkt3@steelstrong.com

Website :

http://www.steelstrong.com

Area :

2000 Sq. Mt

Location :

Owned

Plant No. II and Regional Marketing Office :

Plot No. B/176, 186, 187, 189, Ajanta Industrial Estate, Village Vasna – Iyava, Taluka Sanand, Ahmedabad, Gujarat, India

Tel. No.:

91-2717-619100 (60 lines)

E-Mail :

sanandworks@steelstrong.com

Plant III :

Plot No. B/176,186,187,189. Ajanta Industrial Estate, Village: Vasna-Iyava, Taluka: Sanand, Ahmadabad - 382170. Gujarat, India

Tel No.:

91-2717-619110

E -Mail :

mkt5@steelstrong.com

Marketing Network :

Located at :

Delhi	Mr. Anil Kumar Shrma	91-11-25790183	91-9810043324
Kolkata	Mr. D. P. Sen	91-33-24711654	91-9433326166
Bangalore	Ms. Anuradha Srinivasan	91-80-26583214	91-9448459429
Chennai	Mr. K. N. Shrinath / Mr. K.V. Narayanan	91-44-24861308	91-9790955585
Hyderabad	Mr. A. G. Rao	91-40-27058878	91-9440718339
Cochin	Mr. Jayarahan Nambiar	91-484-2539979 / 2531470	91-9847032708
Visakhapatnam	--	--	--

DIRECTORS

As on: 29.09.2012

Name :	Mr. Ramesh Subbaya Shetty
Designation :	Managing director
Address :	604, Mahavir Towers, L.B.S. Marg, Mulund (West), Mumbai – 400080, Maharashtra, India
Date of Birth/Age :	08.08.1954
Date of Appointment :	09.12.1993
PAN No.:	ACCPS6924K
DIN No.:	00443862
Name :	Mrs. Smita Ramesh Shetty
Designation :	Director
Address :	604, Mahavir Towers, L.B.S. Marg, Mulund (West), Mumbai – 400080, Maharashtra, India
Date of Birth/Age :	25.04.1958
Date of Appointment :	09.12.1993
PAN No.:	ANPRS2479B
DIN No.:	00743291
Name :	Mr. Thomas George
Designation :	Director
Address :	Flat No. 304, Plot No. 4,5,6 and 7, Sector BA/IAIROLI, Mumbai – 400708, Maharashtra, India
Date of Birth/Age :	27.11.1954
Date of Appointment :	08.06.2010
DIN No.:	03093974
Name :	Mr. Sagar Ramesh Shetty
Designation :	Director
Address :	604, Mahavir Towers, L.B.S. Marg, Mulund (West), Mumbai – 400080, Maharashtra, India
Date of Appointment :	15.03.2011
DIN No.:	02139996

KEY EXECUTIVES

Name :	Mr. Manohar Goswami
Designation :	Senior Accounts Manager

MAJOR SHAREHOLDERS

As on: 29.09.2012

Names of Shareholders	No. of Shares
Ramesh Subbaya Shetty	116666
Sagar Ramesh Shetty	1
Total	116667

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Engineering Goods (Industrial Valves) Various types of Valves.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Industrial Valves	Nos.	N.A.	N.A.	58077

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

300 (Approximately)

Bankers :

· Small Industries Development Bank of India, 1 and 2, Dhanalaxmi Residency, Near Hotel Tip Top Plaza, L. B. S. Marg, Thane (West), Thane - 400602, Maharashtra, India

· Corporation Bank, 185-R,ALHAD Purshottam Kherj Road, Mulund West, Mumbai - 400080, Maharashtra, India

· Vijaya Bank, Gaurav Corner, Navghar Road, Mulund (East), Maharashtra, India

· Vijaya Bank, Gaurangi Chambers, LBS Marg, Opposite Damani Estate, Thane Branch, Mumbai – 400602, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
Term Loan I	13.000	25.000
Term Loan II (Repayable within 60 BMI of Rs.306,750 each)	3.405	6.407
Car Loan I (Repayable within 60 EMI of' 1,47,800/- each)	5.351	0.000
Car Loan II (Repayable within 36 EMI of' 12,580/- each)	0.127	0.254
Car Loan III (Repayable within 36 EMI of' 17,130/- each)	0.199	0.371
Car Loan IV (Repayable within 36 EMI of' 68,750/- each)	0.000	0.334
Car Loan V (Repayable within 36 EMI of' 37,447/- each)	0.283	0.670
Car Loan VI (Repayable within 36 EMI of' 16,490/- each)	0.258	0.000
Car Loan VII (Repayable within 36 EMI of' 15,280/- each)	0.214	0.000
SHORT-TERM BORROWINGS
Working Capital Facility - Cash Credit (Vijaya Bank)	138.644	98.913
Loans repayable on demand from banks: Temporary Overdraft in Current Account	0.000	0.076
Total	161.481	132.025
Notes · Repayable in following manner; 2008- 09 Rs.6.000 2009- 10 Rs. 6.000 2010- 11 Rs.9.000 2011- 12 Rs.9.000 2012- 13 Rs.120.000 2013- 14 Rs.130.000 · Term Loans are secured by mortgage of freehold land at Ahmedabad and factory building thereon as well as machinery/equipments. Both the loans are secured by collateral security by way of mortgage of land and building of Factory at R - 241 TTC Industrial Area, Rabale and hypothecation of existing plant and machinery. The above loans are guaranteed by the directors of the company · Car loans are secured by hypothication of cars, Staff Bus and personal guarantee of the directors · Working capital facility is secured by hypothecation of stock in trade, book debts. Further the working capital facility is secured by collateral security by way of mortgage of land and building of Factory at R - 241 TTC Industrial Area, Rabale, freehold land and building situated at Sandnd Ahmedabad, Mortgage of Residential Flat of Director and Hypothecation of existing plant and machinery of the Company. The above working capital facility is guaranteed by directors of the company

Banking Relations :	--
Auditors :
Name :	Rajesh Shetty and Compay Chartered Accountants
Address :	Sunmoon Co-Operative Housing Society Limited, Rajendra Nagar , Datta Pada Road, Borivali, Mumbai – 400066, Maharashtra, India
PAN No.:	AWXPS2271C

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
116667	Equity Shares	Rs.100/- each	Rs.11.667 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		11.667	11.667	11.667
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		165.532	141.057	114.349
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		177.199	152.724	126.016
LOAN FUNDS
1] Secured Loans		161.481	132.025	112.254
2] Unsecured Loans		10.000	0.000	0.000
TOTAL BORROWING		171.481	132.025	112.254
DEFERRED TAX LIABILITIES		0.000	1.156	1.437
TOTAL		348.680	285.905	239.707
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		116.608	116.382	116.941
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		1.157	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	98.402	53.620	54.412
	Sundry Debtors	265.671	186.936	129.886
	Cash & Bank Balances	12.703	7.798	6.953
	Other Current Assets	1.219	1.395	0.000
	Loans & Advances	61.040	34.695	50.000
Total Current Assets		439.035	284.444	241.251
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	157.982	84.861	72.554
	Other Current Liabilities	31.244	11.158	9.647
	Provisions	18.894	18.902	36.347
Total Current Liabilities		208.120	114.921	118.548
Net Current Assets		230.915	169.523	122.703
MISCELLANEOUS EXPENSES		0.000	0.000	0.063
TOTAL		348.680	285.905	239.707

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	696.884	563.371	427.692
		Other Income			1.169
		TOTAL (A)	696.884	563.371	428.861
Less	EXPENSES
		Office Expenses	627.675	495.260	370.230
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	627.675	495.260	370.230
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		69.209	68.111	58.631
Less	FINANCIAL EXPENSES (D)		17.084	11.967	12.278
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		52.125	56.144	46.353
Less/ Add	DEPRECIATION/ AMORTISATION (F)		16.865	15.668	15.568
	PROFIT BEFORE TAX (E-F) (G)		35.260	40.476	30.785
Less	TAX (H)		10.638	13.768	11.684
	PROFIT AFTER TAX (G-H) (I)		24.622	26.708	19.101
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		91.661	65.100	45.999
	BALANCE CARRIED TO THE B/S		116.284	91.808	65.100
	EARNINGS IN FOREIGN CURRENCY		0.075	0.000	NA
	Earnings Per Share (Rs.)		211.05	228.92	163.73

Particulars	31.03.2013
Sales Turnover (Approximately)	937.500

The above information has been parted by Mr. Manohar Goswami.

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.53	4.74	4.45
Net Profit Margin (PBT/Sales)	(%)	NA	NA	7.20
Return on Total Assets (PBT/Total Assets}	(%)	6.35	10.10	8.59
Return on Investment (ROI) (PBT/Networth)		0.20	0.27	0.24
Debt Equity Ratio (Total Debt /Networth)		0.97	0.86	0.89
Current Ratio (Current Asset/Current Liability)		2.11	2.48	2.03

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

PARTICULARS	31.03.2012	31.03.2011	31.03.2010
Other than acceptances	157.982	84.861	72.554
Total	157.982	84.861	72.554

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	Yes
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	Yes
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

PERFORMANCE:

The turnover (including other income) during the year ended March 31s1 2012 was Rs.696.884 Millions as against Rs.563.371 Millions for the previous year.

UNSECURED LOAN:

(Rs. in Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
Unsecured Loan from Director	10.000	0.000
Total	10.000	0.000

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U28910MH1993PTC075537
Name of the company	STEEL STRONG VALVES (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 241, TTC Industrial Area, MIDC, Rabale, Navi Mumbai - 400701, Navi Mumbai, Maharashtra, India steelstrongvalve@mtnl.net.in
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Small Industries Development Bank of India, 1 and 2, Dhanalaxmi Residency, Near Hotel Tip Top Plaza, L. B. S. Marg, Thane (West), Thane – 400602, Maharashtra, India gsam@sidbi.in
Nature of instrument creating charge	Deed of Hypothecation dated March 11, 2013
Date of instrument Creating the charge	11.03.2013
Amount secured by the charge	Rs.1.550 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest "12.50% p.a. with monthly rest on the principal amount of the loan outstanding from time to time. The dates of payments shall be 10th day of each month every year." Terms of Repayment "The term loan would be repaid in 30 monthly instalments comprising of first 29 instalments of Rs. 52,000/- each and last 30th instalments of Rs. 42,000/- each commencing after a period of 6 months from the date of first disbursement of term loan. The dates of repayment of instalments would be the 10th (tenth) day of each month." Margin 25.08% Extent and Operation of the charge First/ Exclusive charge on hypothecating Marshall Rapidturn"SL-14"Slant Bed CNC Turning Center as describe specifically in such of deed of hypothecation.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First charge by way of hypothecation of Marshall Rapidturn "SL-14" Slant Bed CNC Turning Center.

FIXED ASSETS:

• Leasehold land
• Factory Building
• Plant and Machinery
• Electrical Fittings
• Furniture and Fixtures
• Office Equipment
• Computers
• Crane
• Tele Instruments
• Air Conditioners
• Vehicles
• Tempo
• Xerox

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.56.87
UK Pound	1	Rs.87.65
Euro	1	Rs.74.52

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.