MIRA INFORM REPORT

Report No. :	484939
Report Date :	10.01.2018

IDENTIFICATION DETAILS

Name :	HEAVY METAL AND TUBES (INDIA) PRIVATE LIMITED [w.e.f. 21.06.2017]
Formerly Known As :	HM FINANCIAL SERVICES PRIVATE LIMITED
Registered Office :	101, Bileshwarpura, Taluka Kalol, Gandhinagar – 382729, Gujarat
Tel. No.:	91-79-26424941
Country :	India
Financials (as on) :	31.03.2016
Date of Incorporation :	04.06.2008
Com. Reg. No.:	04-054125
Capital Investment / Paid-up Capital :	INR 0.100 Million
CIN No.: [Company Identification No.]	U28100GJ2008PTC054125
IEC No.:	0817501941
GSTIN No.:	24AACCH0904K1ZX
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AACCH0904K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture of ferrous, non-ferrous, iron and steel, stainless steel/ welded steel, carbon steel, and alloy steel pipes and tubes and fittings. [Registered Activity] Manufacturer of Seamless Tubes and Pipes. [Confirmed by Management]
No. of Employees :	150 (Approximately)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

C

Credit Rating	Explanation	Rating Comments
C	Medium High Risk	Business dealings permissible preferably on secured basis

Status :	Yet to commence its business operations
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject was incorporated in the year 2008 and it is a manufacturer of seamless tubes and pipes. Initially, subject worked as a unit of ‘Heavy Metal and Tubes Limited’ (HMTL), later in FY 2017 HMTL de-merger its unit and it incorporated as a separate private limited company as ‘Heavy Metal and Tubes (India) Private Limited’. Management has failed to file its latest financials with Government Registry. As per financials of March 2016, the company is yet to commence its business operation after de-merger. Rating takes into consideration the company’s limited track record of business operations marked by small capital base along with negative reserves and low liquidity position. Payments are reported to be unknown. In view of aforesaid, the company can be considered for business dealings at fully safe and secured 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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

EXTERNAL AGENCY RATING

NOT AVAILABLE

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 31-03-2016.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 10.01.2018.

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION PARTED BY [GENERAL DETAILS]

Name :	Mr. Mahend Shah
Designation :	Assistant Finance Manager
Contact No.:	91-79-27553243
Date :	09.01.2018

LOCATIONS

Registered Office :	101, Bileshwarpura, Taluka Kalol, Gandhinagar – 382729, Gujarat, India
Tel. No.:	91-2764-234139/ 234140/ 234141
Fax No.:	Not Available
E-Mail :	hitesh@heavytubes.com info@heavytubes.com
Website :	www.heavytubes.com
Location :	Owned
Locality :	Commercial
Branch Office :	201-Ashwarath Complex, Opposite Hotel Fortune Landmark, Ashram Road, Ahmedabad - 380013, Gujarat, India
Tel. No.:	91-79-27553243
Location :	Owned

DIRECTORS

AS ON 31.03.2017

Name :

Mr. Milan Amrutlal Kothari

Designation :

Additional Director

Address :

12a, Ratan Mansion, Room No. 12, 4th Floor, 2^nd Khetwadi Lane, Mumbai – 400004, Maharashtra, India

Date of Appointment :

16.01.2017

DIN No.:

03077888

Name :

Mr. Vishal Rameshchandra Sheth

Designation :

Additional Director

Address :

Flat No 404, Gokul Apartment Corporate Housing Society Limited, Opposite 14th Khetwadi, Khetwadi Back Road, Girgaon, Mumbai – 400007, Maharashtra, India

Date of Appointment :

16.01.2017

DIN No.:

07284346

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U74999MH2008PTC185413	SHASWAT ENTERPRISES PRIVATE LIMITED	29/09/2015	-

Name :

Mr. Manthan Vijaybhai Shah

Designation :

Additional Director

Address :

C/O, Flat No. 9 Aangi 5, Shrenik Society, Opposite Lokhandwala Society, Naranpura, Ahmedabad – 380013, Gujarat, India

Date of Appointment :

22.09.2017

DIN No.:

07940046

KEY EXECUTIVES

Name :	Mr. Mahend Shah
Designation :	Assistant Finance Manager

MAJOR SHAREHOLDERS

AS ON 31.03.2016

Names of Shareholders	No. of Shares	% of Holding
Hitesh Keharchand Jain	100	1.00
Kirtllal Moolchand Shah	100	1.00
Heavy Metal And Tubs Limited, India	9800	98.00
Total	10000	100.00

AS ON 30.09.2016

Equity Share Break up	Percentage
Category
Promoters – [Individual/Hindu Undivided Family – Indian]	2.00
Promoters – [Bodies corporate]	98.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacture of ferrous, non-ferrous, iron and steel, stainless steel/ welded steel, carbon steel, and alloy steel pipes and tubes and fittings. [Registered Activity] Manufacturer of Seamless Tubes and Pipes. [Confirmed by Management]
Products / Services :	Seamless Tubes and Pipes
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Seamless Tubes and Pipes
Countries :	Italy United States of America South Korea
Imports :
Products :	Raw Material
Countries :	China
Terms :
Selling :	Cheque and RTGS
Purchasing :	Cheque and RTGS

PRODUCTION STATUS – (NOT AVAILABLE)

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark :	--

Customers :

Manufacturers

Reference :	Not Divulged
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark :	--

No. of Employees :

150 (Approximately)

Bankers :

Bank Name	Bank of India
Branch	C. P. Tank, Mumbai – 400004, Maharashtra, India
Person Name (With Designation)	--
Contact Number	91-22-23854890 [Number is Ringing]
Name of Account Holder	--
Account Number	--
Account Since (Date/Year of Account Opening)	--
Average Balance Maintained (If Possible)	--
Credit Facilities Enjoyed (If any)	--
Account Operation	--
Remarks (If any)	--

Financial Institutions:	Aditya Birla Finance Limited, Indian Rayon Compound, Veraval – 362266, Gujarat, India
Auditors :
Name :	S.R Thadhani and Company Chartered Accountants
Address :	C-304 Nirman Homes, Near Vandematram City, New S.G Road, Chandlodia, Ahmedabad – 382481, Gujarat, India
Mobile No.:	91-9374717770
PAN No.:	ABVPT9133B
Memberships :	Not Available
Collaborators :	Not Available
Holding Company : [As On 30.09.2016]	Heavy Metal And Tubes Limited, India [CIN No.:U25200GJ1990PLC014554]

CAPITAL STRUCTURE

AS ON 30.09.2016

Authorised Capital : INR 20.000 Million

Issued, Subscribed & Paid-up Capital : INR 20.000 Million

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	INR 10/- each	INR 20.000 Million

Issued, Subscribed & Paid-up Capital :

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

FINANCIAL DATA

[all figures are INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2016	31.03.2015	31.03.2014
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	0.100	0.100	0.100
(b) Reserves & Surplus	(0.007)	0.000	0.000
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	0.093	0.100	0.100
(3) Non-Current Liabilities
(a) long-term borrowings	0.233	0.233	0.232
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	0.233	0.233	0.232
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	0.048	0.041	0.034
(c) Other current liabilities	0.000	0.000	0.000
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	0.048	0.041	0.034
TOTAL	0.374	0.374	0.366
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	0.000	0.000	0.000
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.372	0.372	0.364
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	0.372	0.372	0.364
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	0.000	0.000	0.000
(c) Trade receivables	0.000	0.000	0.000
(d) Cash and cash equivalents	0.000	0.000	0.000
(e) Short-term loans and advances	0.002	0.002	0.002
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	0.002	0.002	0.002
TOTAL	0.374	0.374	0.366

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2016	31.03.2015	31.03.2014
	SALES
	Income	0.000	0.000	0.000
	Other Income	0.000	0.000	0.000
		0.000	0.000	0.000
	TOTAL
Less	EXPENSES
	Employees benefits expense	0.000	0.000	0.000
	Director’s Remuneration	0.000	0.000	0.000
	Other expenses	0.007	0.000	0.000
	TOTAL	0.007	0.000	0.000
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	(0.007)	0.000	0.000
Less	FINANCIAL EXPENSES	0.000	0.000	0.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(0.007)	0.000	0.000
Less	DEPRECIATION/ AMORTISATION	0.000	0.000	0.000
	PROFIT/ (LOSS) BEFORE TAX	(0.007)	0.000	0.000
Less	TAX	0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX	(0.007)	0.000	0.000
	Earnings / (Loss) Per Share (INR)
	Basic	(0.66)	0.00	0.00
	Diluted	(0.66)	0.00	0.00

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2016	31.03.2015	31.03.2014
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA
Net cash flow from (used in) operations	NA	NA	NA

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2016	31.03.2015	31.03.2014
Average Collection Days [Sundry Debtors / Income * 365]	0.00	0.00	NA
Account Receivables Turnover [Income / Sunday Debtors]	0.00	0.00	NA

LEVERAGE RATIOS

PARTICULARS	31.03.2016	31.03.2015	31.03.2014
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.75	0.73	0.73
Debt Equity Ratio (Total Liability / Networth)	2.51	2.33	2.32
Current Liabilities to Networth (Current Liabilities / Net Worth)	0.52	0.41	0.34
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.00	0.00	0.00
Interest Coverage Ratio (PBIT / Financial Charges)	0.00	0.00	0.00

PROFITABILITY RATIOS

PARTICULARS		31.03.2016	31.03.2015	31.03.2014
PAT to Sales ((PAT / Sales) * 100)	%	0.00	0.00	0.00
Return on Total Assets ((PAT / Total Assets) * 100)	%	(1.87)	0.00	0.00
Return on Investment (ROI) ((PAT / Networth) * 100)	%	(7.53)	0.00	0.00

SOLVENCY RATIOS

PARTICULARS	31.03.2016	31.03.2015	31.03.2014
Current Ratio (Current Assets / Current Liabilities)	0.04	0.05	0.06
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.04	0.05	0.06
G-Score Ratio Financial (Networth / Total Assets)	0.25	0.27	0.27
G-Score Ratio Debt (Debts / Equity Capital)	2.33	2.33	2.32
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	0.04	0.05	0.06

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

FINANCIAL ANALYSIS

[all figures are INR Million]

DEBT EQUITY RATIO

Particular	31.03.2014	31.03.2015	31.03.2016
	INR In Million	INR In Million	INR In Million
Share Capital	0.100	0.100	0.100
Reserves & Surplus	0.000	0.000	(0.007)
Net worth	0.100	0.100	0.093
Long Term borrowings	0.232	0.233	0.233
Short Term borrowings	0.000	0.000	0.000
Total borrowings	0.232	0.233	0.233
Debt/Equity ratio	2.320	2.330	2.505

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	No
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	No
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

Note: the registered address of the company has been shifted from “Heavy Metal House, 1vijayvihar Society, Opposite Child Care, Hospital, Near Vijay Cross Road, Navrangpura, Ahmedabad – 380009, Gujarat, India” to the present address.

BRIEF DESCRIPTION OF THE COMPANY’S WORKING DURING THE YEAR: [As On 31.03.2016]

During the year, the company has not generated any revenue. The net loss for the year has been INR 0.007. The Directors are continuously looking for the new avenues for future growth of the Company and expect more growth in future periods.

EVENTS SUBSEQUENT TO THE DATE OF FINANCIAL STATEMENTS: [As On 31.03.2016]

The holding company of their company namely, Heavy Metal and Tubes Limited. Has proposed the scheme of arrangement for transfer of UNIT-1 to their company by way of demerger of the holding company. Heavy Metal and Tubes Limited has also proposed to change the name of their company in the said scheme of arrangement.

UNSECURED LOANS:

Particulars	31.03.2016 INR In Million	31.03.2015 INR In Million
LONG TERM BORROWINGS
Loan from Holding Company	0.233	0.233
Total	0.233	0.233

INDEX OF CHARGE:

SNo	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Amount	Address
1	G55727291	100115439	ADITYA BIRLA FINANCE LIMITED	10/07/2017	02/09/2017	300000000.0	Indian Rayon Compound, Veraval – 362266, Gujarat, India

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 records 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	INR
US Dollar	1	INR 63.47
UK Pound	1	INR 86.15
Euro	1	INR 75.92

INFORMATION DETAILS

Information Gathered by :	PNM
Analysis Done by :	VVK
Report Prepared by :	GEET

SCORE FACTORS

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

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.