MIRA INFORM REPORT

Report Date :

02.03.2013

IDENTIFICATION DETAILS

Name :	VALLABH TINPLATE PRIVATE LIMITED (w.e.f. 31.05.2010)
Formerly Known As :	VALLABH COMPONENTS PRIVATE LIMITED (w.e.f. 01.05.2008) NIK KNIT EXPORTS PRIVATE LIMITED
Registered Office :	2^nd Floor, Jeevan Deep Building, Parliament Street, New Delhi-110001
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	31.05.1995
Com. Reg. No.:	55-204971
Capital Investment / Paid-up Capital :	Rs. 82.200 millions
CIN No.: [Company Identification No.]	U28112DL1995PTC204971
PAN No.: [Permanent Account No.]	AAACN5702D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of Auto parts and Home Appliances Accessories.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 425000
Status :	Recently Commenced Commercial Sales.
Payment Behaviour :	Slow but correct
Litigation :	--
Comments :	Even though the subject was incorporated during 1995, it has recently commenced its commercial sales from July 2012. There appear huge external borrowings recorded by the company during 2012 which acts as a threat to the company’s liquidity. Trade relations are reported as improving. Business is active. Payment terms are reported as unknown. The company can be considered for business dealings with great 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
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

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	BB+ (Long term rating)
Rating Explanation	Moderate risk of default
Date	15.10.2012

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.

LOCATIONS

Registered Office / Regional Office :	2^nd Floor, Jeevan Deep Building, Parliament Street, New Delhi-110001, India
Tel. No.:	91-11-23742401 / 402
Fax No.:	91-11-23742403 / 25274665
E-Mail :	cs.vil@vallabhgroup.com
Corporate Office :	G.T. Road, Village Pawa, Sahnewal, Ludhiana – 141120, Punjab, India
Tel. No.:	91-161-2511412 / 413 /596
Fax No.:	91-161-2511414
Factory :	Village Beopror, Rajpura District Patiala, Punjab, India
Tel. No.:	91-1762-265135 / 265700 / 265710

DIRECTORS

As on 28.09.2012

Name :

Mr. Ashok Kumar Jain

Designation :

Director

Address :

72-F, Rishi Nagar, Ludhiana-141001, Punjab, India

Date of Birth/Age :

28.10.1951

Date of Appointment :

21.03.2011

DIN No.:

00027116

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	U51909WB1982PLC035481	KUBER UDYOG LTD	Director	30-06-93	30-06-93	-	Active	NO
2	U17119PB1992PLC012869	OSWAL KNITTING AND SPINNING INDUSTRIES LIMITED	Director	28-02-02	28-02-02	-	Active	NO
3	U67120PB2005PTC028691	BULWARK SECURITIES PRIVATE LIMITED	Director	20-07-05	20-07-05	-	Active	NO
4	L74899DL1984PLC019492	VARDHMAN INDUSTRIES LIMITED	Director	19-12-05	19-12-05	-	Active	NO
5	U28112DL1995PTC204971	VALLABH TINPLATE PRIVATE LIMITED	Director	21-03-11	21-03-11	-	Active	NO

Name :

Mr. Kapil Kumar Jain

Designation :

Director

Address :

27-A, Rakh Bagh, The Mall, Ludhiana-141001, Punjab, India

Date of Birth/Age :

12.08.1950

Date of Appointment :

07.11.2009

DIN No.:

00755228

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	U74899DL1980PTC011053	ADHINATH INVESTMENTS PRIVATE LIMITED	Director	17-11-80	17-11-80	-	Active	NO
2	L74899DL1984PLC019492	VARDHMAN INDUSTRIES LIMITED	Director	01-04-11	05-12-84	-	Active	NO
3	L27109PB1980PLC004327	VALLABH STEELS LIMITED	Managing director	28-08-11	15-03-92	-	Active	NO
4	U18101PB2002PLC025217	VALLABH TEXTILES COMPANY LIMITED	Director	01-04-11	18-06-02	-	Active	NO
5	U67190PB1991PLC011129	VALLABH STEEL EAST LIMITED	Director	20-09-08	06-10-07	-	Active	NO
6	U28112DL1995PTC204971	VALLABH TINPLATE PRIVATE LIMITED	Director	07-11-09	12-05-08	-	Active	NO
7	U25200PB2010PTC033924	VALLABH POLYVIN PRIVATE LIMITED	Director	13-05-10	13-05-10	-	Active	NO

Name :

Mr. Rahul Jain

Designation :

Managing director

Address :

27-A, Rakh Bagh, The Mall, Ludhiana-141001, Punjab, India

Date of Birth/Age :

04.10.1974

Date of Appointment :

07.11.2009

DIN No.:

00755312

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	L27109PB1980PLC004327	VALLABH STEELS LIMITED	Director	01-04-11	01-04-96	-	Active	NO
2	L74899DL1984PLC019492	VARDHMAN INDUSTRIES LIMITED	Managing director	28-08-11	20-07-98	-	Active	NO
3	U18101PB2002PLC025217	VALLABH TEXTILES COMPANY LIMITED	Director	18-06-02	18-06-02	-	Active	NO
4	U67190PB1991PLC011129	VALLABH STEEL EAST LIMITED	Director	20-09-08	27-02-08	-	Active	NO
5	U28112DL1995PTC204971	VALLABH TINPLATE PRIVATE LIMITED	Managing director	07-11-09	02-05-08	-	Active	NO

Name :

Mr. Rajesh Sharma

Designation :

Director

Address :

Ward No.110, New Model Town, Sahnewal, Ludhiana-141120, Punjab, India

Date of Birth/Age :

23.11.1973

Date of Appointment :

28.09.2012

DIN No.:

05318968

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	U28112DL1995PTC204971	VALLABH TINPLATE PRIVATE LIMITED	Director	28-09-12	03-07-12	-	Active	NO
2	L17115PB1998PLC021084	JINDAL COTEX LIMITED	Additional director	23-11-12	23-11-12	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2012

Names of Shareholders	No. of Shares
Kapil Kumar Jain	5000
Rahul Jain	5000
Vardhman Industries Limited	5010000
Lata Jain	2000000
Megha Jain	2980000
Total	10000000

Equity Share Break up (Percentage of Total Equity)

As on 28.09.2012

Category	Percentage
Bodies corporate	50.10
Directors or relatives of Directors	49.90
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier of Auto parts and Home Appliances Accessories.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Oriental Bank of Commerce, SME Branch, Cheema Chowk, Ludhiana - 141003, Punjab, India

· State Bank of India Industrial Finance Branch, Golden Tower, Dholewal, G.T. Road, Ludhiana - 141003, Punjab, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Term loans from banks	230.523	95.900
Working capital loans from banks	76.154	0.000
Total	306.677	95.900

Banking Relations :	--
Auditors :
Name :	Raj Gupta and Company Chartered Accountants
Address :	549/10, Sutlej Tower, Opposite Petrol Pump, Near Fountain Chowk , Ludhiana-141003, Punjab, India
PAN No.:	AADFR0095H

CAPITAL STRUCTURE

As on 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
13000000	Equity Shares	Rs.10/- each	Rs. 130.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs. 100.000 Millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8220000	Equity Shares	Rs.10/- each	Rs. 82.200 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		82.200	55.100	0.100
2] Share Application Money		22.408	10.973	0.000
3] Reserves & Surplus		1.716	1.716	1.716
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		106.324	67.789	1.816
LOAN FUNDS
1] Secured Loans		306.677	95.900	0.000
2] Unsecured Loans		324.283	12.009	0.000
TOTAL BORROWING		630.960	107.909	0.000
DEFERRED TAX LIABILITIES		0.000	0.001	0.001
TOTAL		737.284	175.699	1.817
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		17.220	0.992	0.003
Capital work-in-progress		791.185	132.562	0.810
INVESTMENT		1.500	1.500	1.500
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	31.921	0.021	0.020
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	47.708	39.177	0.022
	Other Current Assets	0.441	0.047	0.000
	Loans & Advances	137.157	6.664	5.006
Total Current Assets		217.227	45.909	5.048
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.000	5.477
	Other Current Liabilities	289.848	5.264	0.067
	Provisions	0.000	0.000	0.000
Total Current Liabilities		289.848	5.264	5.544
Net Current Assets		(72.621)	40.645	(0.496)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		737.284	175.699	1.817

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010
	SALES
		Income	0.000
		Other Income	0.000
		TOTAL	0.000
Less	EXPENSES
		Office Expenses	0.001
		Administrative Expenses
		Advertising Expenses
		TOTAL	0.001
	PROFIT/ (LOSS) BEFORE TAX		(0.001)
Less	TAX		0.000
	PROFIT/ (LOSS) AFTER TAX		(0.001)
	Earnings / (Loss) Per Share (Rs.)		(0.55)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Return on Total Assets (PBT/Total Assets}	(%)	NA	NA	(0.02)
Return on Investment (ROI) (PBT/Networth)		NA	NA	0.00
Debt Equity Ratio (Total Debt/Networth)		5.93	1.59	0.00
Current Ratio (Current Asset/Current Liability)		0.75	8.72	0.91

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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last one years	Yes
12]	Profitability for last one 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	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

NOTE

The registered office of the company has been shifted from G.T. Road, Village Pawa, Sahnewal Ludhiana-141120, Punjab, India to the present address w.e.f. 02.06.2010

STATUS OF PROJECT:

The company has set up a unit for the manufacture of Tinplate with a capacity of 60000 TPA at Village Bapror, Tehsil Rajpura, District Patiala in the state of Punjab at an estimated cost of Rs 88.86 crores. The said project has since been implemented, trial production was started in June, 2012 and commercial sales have started in July, 2012.

Since the Company has not carried out any commercial activity during the year under review, no Statement of Profit and Loss has been made.

UNSECURED LOAN

Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. In Millions)
Loans and advances from related parties	324.283	12.009
Total	324.283	12.009

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U28112DL1995PTC204971
Name of the company	VALLABH TINPLATE PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	2^nd Floor, Jeevan Deep Building, Parliament Street, New Delhi-110001, India Email : cs.vil@vallabhgroup.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10300046
Type of charge	· Immovable property · Book debts · Movable property (not being pledge)
Particular of charge holder	Oriental Bank of Commerce, SME Branch, Cheema Chowk, Ludhiana - 141003, Punjab, India Email : bm0653@obc.co.in
Nature of instrument creating charge	Supplemental agreement to secure credit/loan facilities. Creation of Mortgage
Date of instrument Creating the charge	27.11.2012
Amount secured by the charge	Rs. 182.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 13.90 % per annum at present Terms of Repayment Repayable on demand Margin 25 % Extent and Operation of the charge 100 %
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of entire current assets (present and future) pari passu basis with IDBI Bank Limited Extension of 2^nd charge on fixed asset of the company's unit(EM of leasehold right of 10743 sq.meter taken on lease and EM of 14200 sq.yard at Vill. Beopror, Rajpura, Patiala)pari passu with IDBI Bank Limited Extension of 2^nd Charge on EM of ownership rights of immoveable properties admeasuring 12 Bigha and 16.25 Biswa owned by Vardhman Industries Ltd pari passu with IDBI Bank Limited. 2^nd Charge on EM of Commercial Property/Land measuring 6 Bigha 13 Biswas (6650 Sq. Yards) at Vill. Beopror,Rajpura,Patiala on pari passu with IDBI Bank Limited.
Particulars of the present modification	Now the Cash Credit facilities enhanced from Rs.152.000 millions to Rs.182.000 millions

FIXED ASSETS

· Land

· Furniture and fixtures

· Vehicles

· Office equipment

· Computer equipments

·

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.54.48
UK Pound	1	Rs.82.72
Euro	1	Rs.71.27

INFORMATION DETAILS

Report Prepared by :

MRI

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	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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		29

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.