MIRA INFORM REPORT

Report Date :

06.09.2013

IDENTIFICATION DETAILS

Name :	NEXUS ALLOYS AND STEEL PRIVATE LIMITED
Registered Office :	Shop No. 8, R.K. Building No. 3, Khetwadi, 8^th Lane, Girgaon, Mumbai-400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	11.07.2005
Com. Reg. No.:	154680
Capital Investment / Paid-up Capital :	Rs.0.100 Million
CIN No.: [Company Identification No.]	U51420MH2005PTC154680
TAN No.: [Tax Deduction & Collection Account No.]	MUMN13606F
PAN No.: [Permanent Account No.]	AACCN1394H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Stainless Steel, Carbon Steel, Alloy Steel, Non Ferrous Metal, Pipe Tubes, etc.
No. of Employees :	Information denied by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 14100
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Trade relations are fair. Business is active. Payment terms are usually correct. The company can be considered for business dealing 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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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

Management non co-operative [91-22-61172222]

LOCATIONS

Registered Office :	Shop No. 8, R.K. Building No. 3, Khetwadi, 8^th Lane, Girgaon, Mumbai-400004, Maharashtra, India
Tel. No.:	Not Available
Mobile No.:	91-9867749798 (Mr. Jitendra Pukhraj Sanghvi)
Fax No.:	Not Available
E-Mail :	nexussteel@vsnl.net exports@nexussteel.com
Website :	www.nexussteel.com
Factory :	Parmar Industrial Estate, Phase 2, Gala No. 49, Pelhar, Vasai, Thane, Maharashtra, India

DIRECTORS

AS ON 28.09.2012

Name :

Mr. Dilip Sanghvi

Designation :

Director

Address :

Room No. 1, 4th Floor Vora Bldg., 28 Sadashiv Lane, Mumbai-400004, Maharashtra, India

Date of Birth/Age :

25.10.1974

Date of Appointment :

11.07.2005

Din No.:

01403484

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	Company/ LLP Status	Defaulting status
1	U51420MH2005PTC154680	NEXUS ALLOYS AND STEELS PRIVATE LIMITED	Director	11/07/2005	11/07/2005	Active	NO
2	U28133MH2010PTC200157	ADVANCED FITTINGS PRIVATE LIMITED	Director	17/02/2010	17/02/2010	Active	NO

Name :

Mr. Jitendra Pukhraj Sanghvi

Designation :

Director

Address :

Room No. 201, 4th Floor, Badrika Ashram Building, 1st Khetwadi Lane, Mumbai-400004, Maharashtra, India

Date of Birth/Age :

10.12.1980

Date of Appointment :

11.07.2005

Din No.:

01404011

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Shareholders	No. of Shares
Dilip Sanghvi	5000
Jitendra Sanghvi	5000
TOTAL	10000

AS ON 28.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Stainless Steel, Carbon Steel, Alloy Steel, Non Ferrous Metal, Pipe Tubes, etc.

GENERAL INFORMATION

No. of Employees :

Information denied by the management.

Bankers :

• Bank of India, Gulal Wadi Branch, Mumbai, Maharashtra, India
• Indusind Bank Limited, Acme Plaza, CTS No. 32, Opposite Sangam Talkies, Andheri Kurla Road, Andheri (East), Mumbai-400059, Maharashtra, India

Facilities :

Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings
From Directors	1.760	1.724
Short Term Borrowings
Loans and Advances From Related Parties	3.471	5.795
TOTAL	5.231	5.795

Banking Relations :	--
Auditors :
Name :	Narpatraj Bafna Chartered Accountants
Address :	Room No. 39, Habib Building, 2^nd Panjarapole Lane, C.P. Tank, Charni Road (East), Mumbai-400004, Maharashtra, India
PAN No:	AACPB4136G

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs.0.100 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs.0.100 Million

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	0.100	0.100
(b) Reserves & Surplus	3.443	2.590
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	3.543	2.690
(3) Non-Current Liabilities
(a) long-term borrowings	1.760	1.724
(b) Deferred tax liabilities (Net)	0.012	0.013
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	1.772	1.737
(4) Current Liabilities
(a) Short term borrowings	3.471	5.795
(b) Trade payables	11.976	8.564
(c) Other current liabilities	1.906	0.697
(d) Short-term provisions	0.094	0.017
Total Current Liabilities (4)	17.447	15.073
TOTAL	22.762	19.500
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	0.212	0.231
(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	0.002	0.002
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	0.214	0.233
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	0.877	3.043
(c) Trade receivables	15.438	10.154
(d) Cash and cash equivalents	1.387	2.196
(e) Short-term loans and advances	4.499	3.481
(f) Other current assets	0.347	0.393
Total Current Assets	22.548	19.267
TOTAL	22.762	19.500

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.100
2] Share Application Money		0.000
3] Reserves & Surplus		2.229
4] (Accumulated Losses)		0.000
NETWORTH		2.329
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		3.561
TOTAL BORROWING		3.561
DEFERRED TAX LIABILITIES		0.015
TOTAL		5.905
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.196
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1.250
	Sundry Debtors	6.387
	Cash & Bank Balances	1.531
	Other Current Assets	0.000
	Loans & Advances	4.922
Total Current Assets		14.090
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.702
	Other Current Liabilities	0.434
	Provisions	0.245
Total Current Liabilities		8.381
Net Current Assets		5.709
MISCELLANEOUS EXPENSES		0.000
TOTAL		5.905

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	63.409	49.472	40.675
		Other Income	0.741	0.501	0.941
		TOTAL (A)	64.150	49.973	41.616
Less	EXPENSES
		Purchase of Stock in Trade	54.367	45.814
		Employee Benefits Expenses	1.545	1.614
		Other Expenses	4.122	2.986	40.627
		Changes in Inventories of FG/WIP/Stock in Trade	2.167	(1.793)
		TOTAL (B)	62.201	48.621	40.627
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.949	1.352	0.989
Less	FINANCIAL EXPENSES (D)		0.640	0.721	0.286
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.309	0.631	0.703
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.052	0.049	0.065
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		1.257	0.582	0.638
Less	TAX (H)		0.404	0.222	0.193
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		0.853	0.360	0.445
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.590	2.229	1.784
	BALANCE CARRIED TO THE B/S		3.443	2.590	2.229
	Earnings / (Loss) Per Share (Rs.)		85.34	36.00	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.33	0.72	1.06
Net Profit Margin (PBT/Sales)	(%)	1.98	1.17	1.56
Return on Total Assets (PBT/Total Assets}	(%)	5.52	2.98	4.47
Return on Investment (ROI) (PBT/Networth)		0.35	0.22	0.27
Debt Equity Ratio (Total Debt/Networth)		1.47	2.80	1.53
Current Ratio (Current Asset/Current Liability)		1.29	2.07	1.68

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	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]	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	No

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10363455	26/06/2012	10,000,000.00	INDUSIND BANK LIMITED	ACME PLAZA CTS NO 32, OPPOSITE SANGAM TALKIES, ANDHERI KURLA ROAD, ANDHERI EAST, MUMBAI - 400059, MAHARASHTRA, INDIA	B42797720

FIXED ASSETS:

• Air Conditioner
• Computer
• Mobile
• Furniture and Fixtures
• Scooter Activa
• Office Equipments
• Cycle
• Printer

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.66.04
UK Pound	1	Rs.103.11
Euro	1	Rs.86.99

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	5
--CREDIT LINES	1~10	6
--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		46

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.