MIRA INFORM REPORT

Report Date :

21.03.2013

IDENTIFICATION DETAILS

Name :	INDIA TUBE MILLS AND METAL INDUSTRIES PRIVATE LIMITED [w.e.f. 12.03.2011]
Formerly Known As :	INDIA TUBE MILLS AND METAL INDUSTRIES LIMITED
Registered Office :	Lal Bahadur Shastri Marg , Vikhroli (West), Mumbai – 400083, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	24.06.1948
Com. Reg. No.:	11-6425
Capital Investment / Paid-up Capital :	Rs.15.000 Millions
CIN No.: [Company Identification No.]	U29130MH1948PLC006425
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of industrial Machinery and Equipments Like Chemical Equipments, Pressure Vessels, Cryogenic Equipments, Heat Exchangers, Petrochemical Equipments and Industrial Turnkey Projects.
No. of Employees :	Information denied by the management.

RATING & COMMENTS

MIRA’s Rating :

B (37)

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

Maximum Credit Limit :	USD 1260000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Latest financial for the year 2012 is missing with the government department from the previous year financials it seems that there appears some dip in the turnover and profitability of the company. However, general financial position of the company is good. Trade relations are reported as fair. Business is active. Payment terms are unknown. The company can be considered for business dealings with slight caution.

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 Suspended]
Rating Explanation	Moderate degree of safety it carry moderate credit risk.
Date	03.10.2012

Rating Agency Name	CRISIL
Rating	A3+ [Short Term Suspended]
Rating Explanation	Moderate degree of safety it carry higher credit risk.
Date	03.10.2012

Reason for suspended: Non co-operative by the company with crisil efforts to undertake review.

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 BY

Name :	Mr. Dayanand Shetty
Designation :	Deputy Manager in Finance Department
Contact No.:	91-22-25781541
Date :	18.03.2013

LOCATIONS

Registered Office :	Lal Bahadur Shastri Marg , Vikhroli (West), Mumbai – 400083, Maharashtra, India
Tel. No.:	91-22-25781541 / 42546000
Fax No.:	91-22-25784443 / 25790924
Established-Mail :	Itm3@vsnl.com Itm@itmprojects.com
Website:	www.itmprojects.com
Factory :	Located at Vikhroli, Mumbai, Maharashtra, India

DIRECTORS

AS ON 24.09.2012

Name :	Mr. Darshan C Aggarwal
Designation :	Managing Director
Address :	16 Vijay Mahal ‘D’ Road, Churchgate, Mumbai – 400020, Maharashtra, India
Date of Birth/Age :	14.03.1935
Date of Appointment :	16.02.1956
Din No.:	00348642
Name :	Mr. Rameshkumar Chhangamal Aggarwal
Designation :	Director
Address :	15 Vijay Mahal ‘D’ Road, Churchgate, Mumbai – 400020, Maharashtra, India
Date of Birth/Age :	19.11.1940
Date of Appointment :	26.02.1963
Din No.:	00339147
Name :	Mr. Vijay B Aggarwal
Designation :	Director
Address :	4 W, Navroj Apartment, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	18.12.1947
Date of Appointment :	01.11.1974
Din No.:	00340351
Name :	Mr. Vijay Omprakash Aggarwal
Designation :	Director
Address :	19/21 Vijay Mahal ‘D’ Road, Churchgate, Mumbai – 400020, Maharashtra, India
Date of Birth/Age :	19.10.1948
Date of Appointment :	17.11.1997
Din No.:	00348733
Name :	Mr. Ravinder S Aggarwal
Designation :	Director
Address :	112-A, Jolly Maker Apartments, Cuffe Parade, Mumbai – 400005, Maharashtra, India
Date of Birth/Age :	31.12.1940
Date of Appointment :	15.03.1999
Din No.:	00272079
Name :	Mr. Sanjeev K Aggarwal
Designation :	Director
Address :	19 A P Sen Road, Lucknwo – 226001, Uttar Pradesh, India
Date of Birth/Age :	08.10.1960
Date of Appointment :	16.03.2005
Din No.:	00125056
Name :	Mr. Anil B Aggarwal
Designation :	Director
Address :	34 Indus Court ‘A’ Raod, Churghgate, Mumbai – 400020, Maharashtra, India
Date of Birth/Age :	23.02.1952
Date of Appointment :	15.03.1999
Din No.:	00268067

KEY EXECUTIVES

Name :	Mr. Dayanand Shetty
Designation :	Deputy Manager in Finance Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 24.09.2012

NOTE: SHAREHOLDING DETAILS FILE ATTACHED.

AS ON 24.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	75.00
Other top fifty shareholders	25.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of industrial Machinery and Equipments like Chemical Equipments, Pressure vessels, Cryogenic Equipments, Heat Exchangers, Petrochemical Equipments and Industrial Turnkey Projects.

Products :

ITEM CODE NO. (ITC CODE)	PRODUCT DESCRIPTION
722850	Bright Bars
841989	Pressure Vessels
841950	Heat Exchanger Unit

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Structural	M/Tons	4969	9600	--
Oil Tanker Bodies		Within over all capacity of structural	--	--
Dumper Quarry Bodies	Nos.	90	--	--
Stainless Steel Vessels	Rs. In Lacs	10	200	--
Pressure Vessels including spheres	M/Tons	600	600	--
Bright bars	M/Tons	18000	18000	--
i) Own	M/Tons	--	--	4594
ii) Job Work	M/Tons	--	--	692

GENERAL INFORMATION

Customers :

• Reliance Petrochemicals Limited
• Indian Oil Corporation Limited
• Hindustan Petroleum Limited
• Bharat Petroleum Corporation Limited
• Numaligarh Refinery Limited
• Bechtel Corporation
• Bharat Heavy Electricals Limited
• Rashtriya Chemical and Fertilizers Limited
• Indian Farmers Fertilizer Co-operative Limited
• National Fertilizer Limited
• Chambal Fertilizers and Chemicals Limited
• Gujarat Chemical Port Terminal Company Limited
• Engineers India Limited

No. of Employees :

Information denied by the management.

Bankers :

• Punjab National Bank - 12/14, Veer Nariman Road, Mumbai 400023, Maharashtra.
• Punjab National Bank – Ghatkopar Brnach, Sidhi Apartments Tilak Road, Ghatkopar (East), Mumbai – 400077, Maharashtra, India
• Citi Bank NA - Dr. D N Road, Mumbai 400001, Maharashtra, India
• ICICI Bank

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Loans and advances
From ICICI Limited against motor car purchased	0.555	0.651
State Bank of India – loan against fixed deposit	0.000	13.078
Punjab National Bank Limited – cash credit a/c, against hypothecation of book debts and stocks in hand and work in progress, receivables, and equitable mortgage of land and buildings of the company at Vikhroli	54.450	36.145
TOTAL	55.005	49.874

Banking Relations :	--
Auditors :
Name :	P. C. Mehra and Company. Chartered Accountant
Address :	716, Maker Chambers V, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-22825044
Fax No.:	91-22-22824817
E-Mail :	pcmehra@rediffmail.com
PAN No:	AABFP7194B

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
20000	Equity Shares	Rs.1000/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15000	Equity Shares	Rs.1000/- each	Rs.15.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		15.000	15.000	15.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		302.126	275.695	229.620
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		317.126	290.695	244.620
LOAN FUNDS
1] Secured Loans		55.005	49.874	37.077
2] Unsecured Loans		64.400	63.100	53.035
TOTAL BORROWING		119.405	112.974	90.112
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		436.531	403.669	334.732
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		66.661	71.344	36.253
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.129	0.629	0.629
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	154.235	138.354	166.398
	Sundry Debtors	221.070	216.235	144.478
	Cash & Bank Balances	78.385	80.855	96.812
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	39.245	22.571	38.459
Total Current Assets		492.935	458.015	446.147
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.000	0.000
	Other Current Liabilities	111.777	115.908	142.403
	Provisions	11.417	10.411	5.894
Total Current Liabilities		123.194	126.319	148.297
Net Current Assets		369.741	331.696	297.850
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		436.531	403.669	334.732

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	917.803	852.827	991.710
		Other Income	21.289	12.125	10.371
		TOTAL (A)	939.092	864.952	1002.081
Less	EXPENSES
		Cost of goods sold and accretion / Decretion in stocks	861.939	639.971	869.308
		Selling and Administrative Expenses		71.164	51.711
		Accretion / Decretion in stocks		32.095	(1.213)
		TOTAL (B)	861.939	743.230	919.806
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		77.153	121.722	82.275
Less	FINANCIAL EXPENSES (D)		11.710	11.896	11.694
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		65.443	109.826	70.581
Less/ Add	DEPRECIATION/ AMORTISATION (F)		15.266	10.478	8.766
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		50.177	99.348	61.815
Less	TAX (H)		15.000	34.000	21.575
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		35.177	65.348	40.240
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		76.085	70.010	58.545
	SHORT PROVISION FOR TAXATION FOR EARLIER YEARS AND INCOME TAX PAID		0.000	(1.753)	0.000
Less	APPROPRIATIONS
		1^st Interim Dividend @ 50% (L.Y. 20%) paid	0.000	7.500	3.000
		Tax on 1^st Interim Dividend paid	0.000	1.275	0.510
		2^nd Interim Dividend @ 30% paid after the year ending	0.000	4.500	0.000
		Tax on 2^nd Interim Dividend paid after the year ending	0.000	0.747	0.000
		Proposed transfer to General Reserve	50.000	40.000	20.000
		Proposed Final Dividend @20% (L.Y. 30%)	7.500	3.000	4.500
		Tax on Proposed Final Dividend	0.000	0.498	0.765
		Corporate Dividend Tax	1.245	0.000	0.000
	BALANCE CARRIED TO THE B/S		52.517	76.085	70.010
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.000	0.000	0.000
	IMPORTS
		Raw Materials	64.390	18.688	79.212
		Stores & Spares	0.918	0.182	0.000
		Capital Goods	1.969	25.856	0.000
		Machinery Maintenance Items	0.082	0.000	0.000
	TOTAL IMPORTS		67.359	44.726	79.212
	Earnings / (Loss) Per Share (Rs.)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.75	7.56	4.02
Net Profit Margin (PBT/Sales)	(%)	5.47	11.65	6.23
Return on Total Assets (PBT/Total Assets}	(%)	8.97	18.77	12.81
Return on Investment (ROI) (PBT/Networth)		0.15	0.34	0.25
Debt Equity Ratio (Total Debt/Networth)		0.37	0.39	0.37
Current Ratio (Current Asset/Current Liability)		4.00	3.63	3.01

LOCAL AGENCY FURTHER INFORMATION

NOTE: Details of sundry creditors are not available.

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	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	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	No
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

OPERATIONS/WORKING RESULTS:

For the year ended 31.03.2011 the company achieved a net turnover was Rs. 878.898 millions and the net profit was Rs. 35.177 millions. Due to all round increase in cost of inputs and services, there was pressure on profit margin resulting the lower profits as compared to the previous year. Though the inflationary trend is a cause for concern, the order position is satisfactory and the directors are hopeful of achieving good performance for the current year.

Unsecured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Loans and advances
From directors	64.400	63.100
TOTAL	64.400	63.100

FIXED ASSETS:

• Land
• Factory, Office, Building and Godwon
• Residential Flat
• Vehicles
• Furniture and fixtures
• Plant and machinery

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.53.37
UK Pound	1	Rs.82.07
Euro	1	Rs.70.04

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	TPT

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	4
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		37

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.