MIRA INFORM REPORT

Report Date :

22.10.2013

IDENTIFICATION DETAILS

Name :	SLS STAINLESS PRIVATE LIMITED (w.e.f. 27.05.2008)
Formerly Known As :	SLS SCORODITE PRIVATE LIMITED (w.e.f. 01.12.2004) SAGAR STEELS PRIVATE LIMITED
Registered Office :	43, 1^st Carpenter Street, C. P. Tank, Mumbai – 400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	11.10.1994
Com. Reg. No.:	04-163692
Capital Investment / Paid-up Capital :	Rs.93.561 Millions
CIN No.: [Company Identification No.]	U27109MH1994PTC163692
PAN No.: [Permanent Account No.]	AADCS1273P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, exporter of Stainless Steel Seamless Pipes, Industrial Stainless Steel Pipes, Stainless Seamless Pipes, Industrial Steel Pipes, Carbon Steel Pipes, Nickel Alloy Pipes, Pipes, Tubes, Carbon Steel Plate, Fittings, Flanges, U Bend Tube and more.
No. of Employees :	Not Available

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 450000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the traqde deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Fund Based Limits = BB+ (Suspended)
Rating Explanation	Inadequate credit quality and high credit risk.
Date	May 2013

Rating Agency Name	ICRA
Rating	Non-fund Based Limits A4+ (Suspended)
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	May 2013

Reason for Suspension: Absence of requisite information from company.

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 :	43, 1^st Carpenter Street, C. P. Tank, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-23813552/ 23813553
Fax No.:	91-22-23895550
E-Mail :	info@slsscorodite.com
Website :	http://www.slstubes.com
Corporate Office:	904, Venus Atlantis, Near Reliance Petrol Pump, Prahladnagar Road, Ahmedabad-380051, Gujarat, India)
Tel. No.:	91-79-4900 5000 (1 to 50) line
Fax No.:	91-79-4900 5050
E-Mail :	sales@slstubes.com, export@slstubes.com
Plant :	Survey No.: 68-55 B/s. Simla Hotel Mehsana Highway, Billeswarpura - 382 729, District Gandhinagar, Gujarat, India

DIRECTORS

As on: 29.09.2012

Name :

Mr. Shantilal Premchand Sanghvi

Designation :

Managing Director

Address :

B-805, Vasant Vihar, Dafnala Road, Shahibag, Ahmedabad – 380004, Gujarat, India

Date of Birth/Age :

06.05.1958

Date of Appointment :

21.03.2007

DIN No.:

00483385

PAN No.:

ACSPS6496G

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	U27104MH1994PTC162301	scorodite stainless india private limited.	Director	23/05/1994	23/05/1994	15/07/2008	Active	NO
2	U72200GJ2000PTC037382	SLS INDUSTRIES PRIVATE LIMITED	Director	18/02/2000	18/02/2000	-	Active	NO
3	U27109MH1994PTC163692	SLS STAINLESS PRIVATE LIMITED	Managing director	21/03/2007	21/03/2007	-	Active	NO
4	U27200GJ1994PTC021540	OPTIMA STAINLESS PRIVATE LIMITED	Director	10/10/2007	10/10/2007	-	Active	NO
5	U28990MH2007PTC173724	SLS TUBES PRIVATE LIMITED	Director	05/04/2008	05/04/2008	-	Active	NO
6	U27310MH2012PLC236519	SLS SEAMLESS LIMITED	Director	05/10/2012	05/10/2012	-	Active	NO

Name :

Mr. Maheshbhai Shantilal Sanghvi

Designation :

Director

Address :

B-805, Vasant Vihar, Dafnala Road, Shahibag, Ahmedabad – 380004, Gujarat, India

Date of Birth/Age :

23.10.1981

Date of Appointment :

29.09.2007

DIN No.:

01507210

PAN No.:

AKIPS7448G

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	U72200GJ2000PTC037382	SLS INDUSTRIES PRIVATE LIMITED	Director	18/02/2000	18/02/2000	-	Active	NO
2	U27109MH1994PTC163692	SLS STAINLESS PRIVATE LIMITED	Director	29/09/2007	01/04/2007	-	Active	NO
3	U28990MH2007PTC173724	SLS TUBES PRIVATE LIMITED	Director	01/09/2007	01/09/2007	-	Active	NO
4	U27200GJ1994PTC021540	OPTIMA STAINLESS PRIVATE LIMITED	Director	10/10/2007	10/10/2007	-	Active	NO
5	U27310MH2012PLC236519	SLS SEAMLESS LIMITED	Director	05/10/2012	05/10/2012	-	Active	NO

MAJOR SHAREHOLDERS

As on: 29.09.2012

Names of Shareholders	No. of Shares
Amit Sanghvi	20727
Dadmiben Sanghavi	37323
Himansubhai Sanghavi	6909
Kalpesh S. Sanghavi	76000
Mahesh Sanghavi	854074
Manjulaben Sanghavi	20741
Mukesh Sanghavi	29723
Pradip Sanghavi	21418
Pravinaben Sanghavi	15200
Pushpaben Sanghavi	13818
Shantibhai Sanghavi	2760555
Sumerbhai Sanghavi	110545
Optima Stainless Private Limited, India	5389091
Total	9356124

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Bodies corporate	57.60
Directors or relatives of Directors	42.40
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, exporter of Stainless Steel Seamless Pipes, Industrial Stainless Steel Pipes, Stainless Seamless Pipes, Industrial Steel Pipes, Carbon Steel Pipes, Nickel Alloy Pipes, Pipes, Tubes, Carbon Steel Plate, Fittings, Flanges, U Bend Tube and more.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

IDBI Bank Limited, Opposite Municipal Staff Quarters, Near Lal Bunglow, Off C. G. Road,, Ahmedabad - 380006, Gujarat, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
Other loans and advances	0.048	0.229
SHORT TERM BORROWINGS
Working Capital loans from bank	76.514	56.327
Total	76.562	56.556

Banking Relations :
Auditors :
Name :	R R S and Associates Chartered Accountants
Address :	211, Kamal Complex, Near Stadium Circle, Opposite State Bank Of India, C.G. Road, Navrangpura, Ahmedabad – 380009, Gujarat, India
PAN No.:	BJSPS1323Q
Holding company :	Optima Stainless Private Limited
Associate :	· SLS Tubes Private Limited · Scorodite Stainless India Private Limited · SLS India Private Limited · Dev Copper Private Limited

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9356124	Equity Share	Rs.10/- each	Rs.93.561 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	93.561	93.561
(b) Reserves & Surplus	19.943	14.693
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	9.918
Total Shareholders’ Funds (1) + (2)	113.504	118.172
(3) Non-Current Liabilities
(a) long-term borrowings	27.263	13.330
(b) Deferred tax liabilities (Net)	0.035	0.040
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	27.298	13.370
(4) Current Liabilities
(a) Short term borrowings	76.514	56.327
(b) Trade payables	145.407	106.782
(c) Other current liabilities	28.857	12.598
(d) Short-term provisions	4.161	9.208
Total Current Liabilities (4)	254.939	184.915
TOTAL	395.741	316.457
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	14.953	15.104
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.112	0.087
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	15.065	15.191
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	85.786	62.886
(c) Trade receivables	247.816	180.118
(d) Cash and cash equivalents	13.318	33.734
(e) Short-term loans and advances	33.756	24.528
(f) Other current assets	0.000	0.000
Total Current Assets	380.676	301.266
TOTAL	395.741	316.457

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		28.709
2] Share Application Money		55.678
3] Reserves & Surplus		29.166
4] (Accumulated Losses)		0.000
NETWORTH		113.553
LOAN FUNDS
1] Secured Loans		53.701
2] Unsecured Loans		22.633
TOTAL BORROWING		76.334
DEFERRED TAX LIABILITIES		0.121
TOTAL		190.008
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.205
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	53.678
	Sundry Debtors	152.652
	Cash & Bank Balances	12.110
	Other Current Assets	0.000
	Loans & Advances	57.860
Total Current Assets		276.300
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	69.818
	Other Current Liabilities	17.772
	Provisions	8.919
Total Current Liabilities		96.509
Net Current Assets		179.791
MISCELLANEOUS EXPENSES		2.012
TOTAL		190.008

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	885.237	658.755	610.045
		Other Income
		TOTAL	885.237	658.755	610.045
Less	EXPENSES
		Office Expenses	876.800	639.029	601.001
		Administrative Expenses
		Advertising Expenses
		TOTAL	876.800	639.029	601.001
	PROFIT BEFORE TAX		8.437	19.726	9.044
Less	TAX		3.187	7.606	2.725
	PROFIT AFTER TAX		5.250	12.120	6.319
	EARNINGS IN FOREIGN CURRENCY		NA	NA	0.410
	IMPORTS
		CIF Value of Import	7.297	8.171	2.884
	TOTAL IMPORTS		7.297	8.171	2.884
	Earnings Per Share (Rs.)		0.56	1.88	2.20

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.59	1.84	1.04
Return on Total Assets (PBT/Total Assets}	(%)	2.13	6.23	3.18
Return on Investment (ROI) (PBT/Networth)		0.07	0.17	0.08
Debt Equity Ratio (Total Debt /Networth)		0.91	0.59	0.67
Current Ratio (Current Asset/Current Liability)		1.49	1.63	2.86

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 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	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

NOTE:

The Registered office has again shifted from, 9, Kamer Building, 1^st Floor, 38 Cawasji Patel Street, Fort, Mumbai – 400023, Maharashtra, India, to the present address w.e.f. 26.10.2009.

OPERATIONS:

During the year, the performance of the company is below average. The net profit of the company after taxation has decreased to Rs. 5.250 Millions as compared to Rs. 12.120 Millions in the previous year. While the turnover of the Company has increased by Rs.885.237 Millions as compared to Rs.658.755 Millions in the previous year.

The Directors are striving hard by making more sincere efforts for better growth and prospects of the Company in future and to yield better returns for the members of the company.

UNSECURED LOAN:

(Rs. in Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
Loans and advances from related parties	27.215	13.101
Total	27.215	13.101

FIXED ASSETS:

· Land

· Land Development

· Office

· Furniture

· Office Equipments

· Air Conditioner

· Electric Equipments

· Fan

· Fax

· Pager

· Telephone

· Type Writer

· Water Pump

· Plant and Machinery

· Computers

· Vehicles

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.61.49
UK Pound	1	Rs.99.41
Euro	1	Rs.84.12

INFORMATION DETAILS

Report Prepared by :

RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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		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.