MIRA INFORM REPORT

Report Date :

21.05.2013

IDENTIFICATION DETAILS

Name :	NAVNIDHI STEEL AND ENGINEERING COMPANY PRIVATE LIMITED
Registered Office :	Shop No. 1, Lehri Mansion, 236/240, S.V.P. Road, Mumbai – 400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	22.03.2006
Com. Reg. No.:	11-160632
Capital Investment / Paid-up Capital :	Rs.12.250 Millions
CIN No.: [Company Identification No.]	U27100MH2006PTC160632
TAN No.: [Tax Deduction & Collection Account No.]	MUMN13568C
PAN No.: [Permanent Account No.]	AACCN2748R
Legal Form :	Private Limited Liability Company
Line of Business :	Importer and Stockiest of Stainless Steel Plates, Nickel Alloys and Boller Quality Plates.
No. of Employees :	20 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (35)

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

Maximum Credit Limit :	USD 440000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The profitability of the company appears to be low. There appears huge increase in the external borrowings of the company during 2012 over its previous year. However, 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 some caution.

NOTES :

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

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. Hemantkumar Hastimal Jain
Designation :	Director
Contact No.:	91-9819814006
Date :	18.05.2013

LOCATIONS

Registered/ Head Office :	Shop No. 1, Lehri Mansion, 236/240, S.V.P. Road, Mumbai – 400004, Maharashtra
Tel. No.:	91-22-67496081/ 67496082/ 67496083/ 23890122/ 23866795
Mobile No.:	91-9819814006 (Mr. Hemantkumar Hastimal Jain)
Fax No.:	91-22-23890122
E-Mail :	navnidhistainless@hotmail.com info@nsec.co.in bothra_01@rediffmail.com vikram@nsec.co.in hemant@sec.co.in
Website:	www.nsec.co.in
Area :	800 sq. ft.
Location :	Owned
Corporate Office :	94/98, P S Ram Mandir Marg, 4^th Kumbharwada, Mumbai – 400 004, Maharashtra, India
Tel. No.:	91-22-56362420/ 23824653/ 56393567
Fax No.:	91-22-23890122
Area :	400 sq. ft. [Rented]
Location :	Market Place [Ground Floor]
Branch Office :	Plot No. 1266, Road No. 14, Steel market, Kolombali, New Mumbai, Maharashtra, India

DIRECTORS

As on: 29.09.2012

Name :	Mr. Vikram Hastimal Jain
Designation :	Director
Address :	Flat No.1503, ‘A’ Wing, Pratiksha Tower, R.S. Nimkar Marg, Mumbai – 400 008, Maharashtra, India
Date of Birth/Age :	25.10.1980
Qualification :	B. Com
Experience :	12 Years
Date of Appointment :	22.03.2006
DIN No.:	01200061
PAN No.:	ACRPJ5206G
Name :	Mr. Hemantkumar Hastimal Jain
Designation :	Director
Address :	Flat No.1504, ‘A’ Wing, Pratiksha Tower, R.S. Nimkar Marg, Mumbai – 400 008, Maharashtra, India
Date of Birth/Age :	01.04.1985
Qualification :	B. Com
Experience :	5 Years
Date of Appointment :	02.11.2009
DIN No.:	02624316
PAN No.:	AFLPJ1737K

MAJOR SHAREHOLDERS

As on: 29.09.2012

Names of Shareholders	No. of Shares
Hastimal Malaji Jain	90000
Vikram Hastimal Jain	640000
Hemant H Jain	90000
Suaben H Jain	90000
Sadhana V Jain	90000
Avance Technologies Limited, India	225000
Total	1225000

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Bodies corporate	18.00
Directors or relatives of Directors	82.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Importer and Stockiest of Stainless Steel Plates, Nickel Alloys and Boller Quality Plates.

Products :

Product Description	ITC Code
Stainsteel Sheet	72199090

Imports :

Products :

Finished goods

Countries :

· Ukraine

· European Countries

· Malaysia

· Korea

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

GENERAL INFORMATION

Customers :

Retailers and End Users

No. of Employees :

20 (Approximately)

Bankers :

· Standard Chartered Bank, SME Credit, 23-25, M G Road, Fort, Mumbai – 400001, Maharashtra, India

Tel No.: 91-22-67355657

· HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
Rupee term loans from banks	0.589	1.574
SHORT TERM BORROWINGS	0	0
Term loans from banks	144.020	87.682
Working capital loans from banks	29.173	42.246
Total	173.782	131.502

Banking Relations :	--
Auditors :
Name :	D. C. Bothra and Company Chartered Accountant
Address :	297, Tardeo Road, Villie Mansion, Nanachowk, Mumbai – 400 007, Maharashtra, India
PAN No.:	AAWPB1139M

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Shares	Rs.10/- each	Rs.12.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1225000	Equity Shares	Rs.10/- each	Rs.12.250 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		12.250	10.000	1.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		99.032	6.444	9.839
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		111.282	16.444	10.839
LOAN FUNDS
1] Secured Loans		173.782	131.502	42.605
2] Unsecured Loans		72.194	37.939	183.493
TOTAL BORROWING		245.976	169.441	226.098
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		357.258	185.885	236.937
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.700	4.932	0.997
Capital work-in-progress		0.918	0.408	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	97.010	180.481	62.468
	Sundry Debtors	208.466	216.639	200.192
	Cash & Bank Balances	4.908	2.176	4.878
	Other Current Assets	98.613	20.975	0.000
	Loans & Advances	62.750	43.378	54.599
Total Current Assets		471.747	463.649	322.137
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	68.100	105.768	77.308
	Other Current Liabilities	43.855	174.506	8.878
	Provisions	7.152	2.830	0.021
Total Current Liabilities		119.107	283.104	86.207
Net Current Assets		352.640	180.545	235.930
MISCELLANEOUS EXPENSES		0.000	0.000	0.010
TOTAL		357.258	185.885	236.937

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	1212.917	1062.197	731.100
		Other Income	3.639	1.058	NA
		TOTAL	1216.556	1063.255	NA
Less	EXPENSES
		Office Expenses	1207.396	1054.594	NA
		Administrative Expenses
		Advertising Expenses
		TOTAL	1207.396	1054.594	NA
	PROFIT BEFORE TAX		9.160	8.661	6.067
Less	TAX		3.043	2.824	1.925
	PROFIT AFTER TAX		6.117	5.837	4.142
	EARNINGS IN FOREIGN CURRENCY		NA	NA	0.000
	IMPORTS
		CIF Value of Imports	527.481	618.107	345.641
	TOTAL IMPORTS		527.481	618.107	345.641
	Earnings Per Share (Rs.)		4.99	5.83	41.42

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.50	0.55	NA
Net Profit Margin (PBT/Sales)	(%)	0.76	0.81	0.83
Return on Total Assets (PBT/Total Assets}	(%)	1.93	1.85	1.88
Return on Investment (ROI) (PBT/Networth)		0.08	0.53	0.56
Debt Equity Ratio (Total Debt /Networth)		2.21	10.30	20.86
Current Ratio (Current Asset/Current Liability)		3.96	1.64	3.74

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

PARTICULARS	31.03.2012	31.03.2011	31.03.2010
Creditors due to others	68.100	105.768	77.308
Total	68.100	105.768	77.308

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	No
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)	Yes
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	No

OPERATIONS:

During the year, the company has achieved a turnover of Rs. 1212.917 Millions against Rs. 1062.197 Millions in the previous year. The board still expects growth in turnover and margin considering order in hand and growing product demand in the domestic market for the core line of business.

UNSECURED LOAN:

(Rs in Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
Loans and advances from directors	23.861	7.357
Loans and advances from others	39.783	28.968
Other loans and advances	8.550	1.614
Total	72.194	37.939

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U27100MH2006PTC160632
Name of the company	NAVNIDHI STEEL AND ENGINEERING COMPANY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Shop No.1,Lehri Mansion,236/240 S V P Road, Mumbai-400004, Maharashtra, India navnidhistainless@hotmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10111279
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	Standard Chartered Bank, SME Credit, Crescenzo, 3A/F, Plot no. C-38 and 39, G Block, Bandra Kurla Complex, Bandra (East) Mumbai – 400051, Maharashtra, India sme.form8@sc.com
Nature of instrument creating charge	Hypothecation Agreement – Supplemental
Date of instrument Creating the charge	25.09.2012
Amount secured by the charge	Rs. 180.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As agreed by and with the Bank from time to time. Terms of Repayment As agreed by and with the Bank from time to time. Margin As applicable, if any. Extent and Operation of the charge The Bank is having first and exclusive charge on the security given by the Company, as described in sr. no. 15 below.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation by way of first and exclusive charge on: a) All the stock in trade both present and future consisting of raw materials, finished goods, goods in process of manufacturing and other merchandise b) All the present and future book debts, outstanding moneys receivable, claims and bills.
Date of instrument modifying the charge	18.01.2011
Particulars of the present modification	By present modification, the existing charge amount of Rs.160.000 Millions enhanced to Rs.180.000 Millions against the security of hypothecation by way of first and exclusive charge on: a) All the stock in trade both present and future consisting of raw materials, finished goods, goods in process of manufacturing and other merchandise b) All the present and future book debts, outstanding moneys receivable, claims and bills.

FIXED ASSETS:

· Computer

· Computer Software

· Motor Car

· Water Filter

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.55.04
UK Pound	1	Rs.83.61
Euro	1	Rs.70.68

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		35

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.