MIRA INFORM REPORT

Report Date :

15.11.2008

IDENTIFICATION DETAILS

Name :	SRI VARAHIAMMAN STEELS PRIVATE LIMITED
Registered Office :	19/ 1 MG, Chettipalayam, Near Ganesapuram Annur, Coimbatore – 641 107, Tamilnadu
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	15.09.1993
Com. Reg. No.:	004594
CIN No.: [Company Identification No.]	U27107TZ1993PTC004594
TAN No.: [Tax Deduction & Collection Account No.]	CMBS03386F
PAN No.: [Permanent Account No.]	AADCS1883P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of TT Steels.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 420000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Mrs. Kala and Mrs. Pushpa parted partial details and denied important details. Subject is a well established company having satisfactory track. Trade relations are fair. Payments are reported as slow but correct. However, the company can be considered normal for business dealings at usual trade terms and conditions.

INFORMATION PARTED BY (Partial Details)

Name :	Mrs. Kala/ Mrs. Pushpa
Designation :	Accounts Manager
Contact No.:	Mobile no. 91-9894677733
Date :	14.11.2008

LOCATIONS

Registered Office/ Factory :	19/ 1 MG, Chettipalayam, Near Ganesapuram Annur, Coimbatore – 641 107, Tamilnadu, India
Tel. No.:	91-422-2654481/ 82
Mobile No.:	91-9894677733 (Mrs. Pushpa)
Fax No.:	91-422-2654481/ 82
E-Mail :	info@rosunsteels.com
Website :	www.rosunsteels.com
Area :	3000 sq ft (including factory)
Location :	Owned
Head Office :	350- ASM, Palayam Road, GN Mills, Post Tamilnadu – 641 029, India
Tel. No.:	91-422-2648241
Fax No.:	91-422-2642219
Factory :	SF No.270/ 2, MG, Chettipalayam, Near Ganesapuram Annur, Coimbatore – 641 107, Tamilnadu, India
Tel. No.:	91-422-2653371-73

DIRECTORS

Name :	Mr. R. Ravichandran
Designation :	Managing Director
Address :	1/ 283, Maddampalayam, Bilichi (Post), Coimbatore – 641 019, Tamilnadu, India
Date of Birth/Age :	03.04.1961
Date of Appointment :	15.09.1993
Name :	Mr. R. Vani
Designation :	Director
Address :	1/ 283, Maddampalayam, Bilichi (Post), Coimbatore – 641 019, Tamilnadu, India
Date of Birth/Age :	13.05.1971
Date of Appointment :	15.09.1993
Name :	Mr. R. Sundarammal
Designation :	Director
Address :	1/ 283, Maddampalayam, Bilichi (Post), Coimbatore – 641 019, Tamilnadu, India
Date of Birth/Age :	15.01.1940
Date of Appointment :	05.08.2002
Name :	Mr. V. Rangaswamy
Designation :	Director
Address :	1/ 283, Maddampalayam, Bilichi (Post), Coimbatore – 641 019, Tamilnadu, India
Date of Birth/Age :	52 Years
Date of Appointment :	05.02.2004
Name :	Mr. R. Varun
Designation :	Director
Address :	1/ 283, Maddampalayam, Bilichi (Post), Coimbatore – 641 019, Tamilnadu, India
Date of Birth/Age :	26.06.1983
Date of Appointment :	05.02.2004
Date of Ceasing :	01.04.2006
Name :	Mr. Venkataraman Natarajan
Designation :	Director
Address :	Door No.43, Flat No.3, Ground Floor, Abiramapuram III Street, Madras – 600 018
Date of Appointment :	03.11.1995

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2007

Names of Shareholders	No. of Shares
R. Ravichandran	91300
G.R. Elangovan	7542
C. Sukumaran	7566
R. Vani	9841
B. Devarajan	3500
E. Subbiyan	2000
G. Ragulan	24250
G. Rana	7000
K.M. Gopalan	3600
M. Ponnusamy	3500
M. Rajendran	1500
N. Manickkam	3500
M. Sathyaseelan	10600
R. Rajeshwari	5000

As on 22.08.2008

Names of Allottees	No. of Shares
R. Ravichandran	8650
Archana R.	61000
Arumugam S.	1900
R. Vani	8700
Ragunathan R.	58050
E. Subbiyan	3650
Senniyappan B.	3700
G. Rana	1900
Sivaraj M.	2000
Subbiyan M.	5150
M. Rajendran	3700
Subbulakshmi S.	1250
M. Sathyaseelan	3600
R. Rajeshwari	1700
Subbulakshmi B.	4150
Sundarammal R.	2500
Varun R.	1000
Vellingiri P.D.	3400
Vijayakala	55000
Total	231000

As on 28.09.2007

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

BUSINESS DETAILS

Line of Business :

Manufacturer of TT Steels.

Products :

Product Description	Item Code No. (ITC Code)
CTD/ TMT Rods	721420

Terms :

Selling :

Cash, Credit 30 days and Advance Cash Payment

Purchasing :

Credit and D/P

PRODUCTION STATUS As on 31.03.2007

Particulars	Actual Production
CTD/ TMT Rods	19425524
Ingots	10483972
Conversion of Rods at Rolling Mills	2950891
Conversion of Ingots at Foundry	1592964

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

60

Bankers :

• The Federal Bank Limited, 21, V.H. Road, Coimbatore – 641 001, Tamilnadu, India.
• Tamilnadu Mercantile Bank Limited, Dr. Nanjappa Road Branch, Coimbatore
• ICICI Bank Limited
• HDFC Bank

Facilities :

Secured Loans :

	As on 31.03.2007 Rs. in Millions
The Federal Bank Term Loan - I	5.110
Demand Loan Federal Bank 153	1.578
Federal Bank A/c No. 520	58.962
Federal Bank OD – 1101	1.544
Hire Purchase – Kotak Mahindra Bank	2.678
ICICI Bank Limited	0.282
HDFC Bank	0.854
	71.008
Less: Interest suspense	(0.318)
Total	70.690

Unsecured Loans :

	As on 31.03.2007 Rs. in Millions
From Directors Current Account	0.182
From Others - KCF Chit L1	0.226
- KCF Chit O1	--
- KCF Chit R1	--
- KCF Chit Y	0.596
- KCF Chit W1	0.444
Chit Loss Suspense L1	--
Chit Loss Suspense O1	--
Others	(0.097)
Dealers Deposit	40.000
Total	41.351

Banking Relations :	---
Auditors :
Name :	Mr. R. Raghavendran Chartered Accountants
Address :	Flat No.3, Dhruvatara Apartments, 241, Dr. Rajendra Prasad Road, Tatabad, Coimbatore – 640 012, Tamilnadu, India
Parent Company :	Rosvar Steels Private Limited
Group Name :	Rosun Group
Associates/Subsidiaries :	Rosvar Iron and Power Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.100/- each	Rs.30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
249000	Equity Shares	Rs.100/- each	Rs.24.900 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2008
Sales Turnover (Estimated)	200.000

Expected Sales (2008-09): Rs.250.000 millions

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		24.900	24.900	24.900
2] Share Application Money		29.160	12.660	12.660
3] Reserves & Surplus		30.020	21.656	16.240
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		84.080	59.216	53.800
LOAN FUNDS
1] Secured Loans		70.690	75.654	45.261
2] Unsecured Loans		41.351	39.667	22.480
3] Creditors for Capital Purchase		4.434	3.945	6.049
TOTAL BORROWING		116.475	119.266	73.790
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		200.555	178.482	127.590
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		61.974	53.499	48.157
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		12.663	6.654	6.110
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	131.258	141.109	71.775
	Sundry Debtors	36.703	40.109	19.639
	Cash & Bank Balances	10.242	5.075	5.125
	Other Current Assets	1.794	2.899	0.978
	Loans & Advances	44.592	43.156	49.850
Total Current Assets		224.589	232.348	147.367
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	83.981	106.568	67.952
	Provisions	15.844	8.990	8.016
Total Current Liabilities		99.825	115.558	75.968
Net Current Assets		124.764	116.790	71.399
MISCELLANEOUS EXPENSES		1.154	1.539	1.924
TOTAL		200.555	178.482	127.590

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Profit/(Loss) Before Tax		8.002	5.914	4.386
Provision for Taxation		0.898	0.498	0.344
Profit/(Loss) After Tax		7.104	5.416	4.042
Expenditures :
	Interest	18.780	13.880	16.204
	Write off of expenses	0.458	0.385	0.001
	Depreciation & Amortization	12.450	10.444	10.388
Total Expenditure		31.688	24.709	26.593

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Return on Total Assets (PBT/Total Assets}	(%)	2.67	2.02	2.18
Return on Investment (ROI) (PBT/Networth)		0.10	0.10	0.08
Debt Equity Ratio (Total Liability/Networth)		2.57	3.97	2.78
Current Ratio (Current Asset/Current Liability)		2.25	2.01	1.94

LOCAL AGENCY FURTHER INFORMATION

This form is for	Modification of charge
Charge identification number of the modified	90009062
Corporate identity number of the company	U27107TZ1993PTC004594
Name of the company	SRI VARAHIAMMAN STEELS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	19/ 1 MG, Chettipalayam, Near Ganesapuram Annur, Coimbatore – 641 107, Tamilnadu, India
Type of charge	Immovable Property Book Debts Movable Property
Particular of charge holder	The Federal Bank Limited, 21, V.H. Road, Coimbatore – 641 001, Tamilnadu, India. E-Mail: cbe@federalbank.co.in
Nature of description of the instrument creating or modifying the charge	Letter of Satisfaction Charges containing of Demand Loan – Rs.6.000 millions and Ad-hoc Limit of Rs.7.500 millions modifying the existing Charges from Rs.173.500 millions to Rs.160.000 millions.
Date of instrument Creating the charge	30.01.2008
Amount secured by the charge	Rs.160.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Not Applicable. The present modification is for reduction in the total charge due to closure of two of the loans i.e. closure of demand loan Rs.6.000 millions and Ad-hoc loan Rs.7.500 millions. There is no change in the rate of interest charged for the other continuing loans. Terms of Repayment: Not Applicable. The present modification is for reduction in the total charge due to closure of two of the loans i.e. closure of demand loan Rs.6.000 millions and Ad-hoc loan Rs.7.500 millions. There is no change in the terms of repayment for the other continuing loans. Margin: Not Applicable. The present modification is for reduction in the total charge due to closure of two of the loans i.e. closure of demand loan Rs.6.000 millions and Ad-hoc loan Rs.7.500 millions. There is no change in the margin requirements for the other continuing loans. Extent and Operation of the charge: Building, plant and machinery continue to be primary security for the Term Loan and the land is given as collateral security for the Term Loan as well as working capital facility of CC and LC limit.
Short particulars of the property charged	Entire Land and Building and Plant and Machinery located at the Factory and Floating Charge of the Stock and Book Debts of the company.
Date of latest modification prior to the present modification	14.08.2007

WORKING OF THE COMPANY:

They reported that the company achieved during this year also the optimum capacity utilization and maintained the same level of productivity and improved on the quantum of production.

They reported that after the re-organization of the production process and operations of the company, during this year both the units of the company has performed well.

The company has produced 19425.524 Tons (including 2225.932 tons got converted from others) of CTD/ TMT Bars and including 10483.972 tons (including 1627.443 tons got converted from others) of M.S. Ingots and sold 20074.875 tons of CTD/ TMT Bars during the year. The company also carried out conversion of 2950891 tons CTD/ TMT Rods from INGOTS supplied by others on conversion basis in the Furnace Division. The energy consumption per unit of out put also has been maintained at optimum level.

The Company’s strategy of focusing on its core business coupled with the optimum utilization of its installed capacity has resulted in the company earning Profit even after a write off of substantial portion as Depreciation. The company continues to invest for the value addition to the products manufactured.

FIXED ASSETS:

• Land
• Building
• Bore well
• Plant and Machinery
• Cont. Push type furnace
• Mill Stand
• I C Rolls
• Pinch Roll and Cutting Machine
• Liquid Water Starter
• Repeaters
• Plumbing Oil
• Loose Tools
• Crane
• Weighment
• Welding Machine
• Cooling Bed
• Oil Engine

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 records 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	Indian Rupees
US Dollar	1	Rs.49.46
UK Pound	1	Rs.73.17
Euro	1	Rs.62.96

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	5
--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
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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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