MIRA INFORM REPORT

Report Date :

21.12.2011

IDENTIFICATION DETAILS

Name :	CHHABRA ISPAT PRIVATE LIMITED

Registered Office :	33/1, Netaji Subhas Road, 1^st Floor, Room No-174, Kolkata – 700001, West Bengal

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	20.12.2005

Com. Reg. No.:	21-106751

Capital Investment / Paid-up Capital :	Rs.58.633 Millions

CIN No.: [Company Identification No.]	U27109WB2005PTC106751

TAN No.: [Tax Deduction & Collection Account No.]	CALC05696F

PAN No.: [Permanent Account No.]	AACCC8056F

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer and supplier of Minerals, and M.S. Billets.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

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 moderate track. 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 business dealings with some cautions.

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 – September 30, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	33/1, Netaji Subhas Road, 1^st Floor, Room No-174, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-22311611 / 22821322 / 22317525
Fax No.:	91-33-40681169
E-Mail :	chhabraispat@gmail.com

Factory :	Village Nakrajoria P.O. Salanpur District Burdwan, West Bengal, India

DIRECTORS

As on 30.09.2011

Name :	Mr. Saurav Jain
Designation :	Director
Address :	35, Ballygunge Park, Tirumala Apartment, 6^th Floor, Flat No.6, Kolkata - 700019, West Bengal, India
Date of Birth/Age :	16.10.1981
Date of Appointment :	20.12.2005
DIN No.:	00573228

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U51101WB2005PTC102170	Baghbaan Agencies Private Limited	Director	7/11/2005	7/11/2005	-	Active	NO
2	U27109WB2005PTC106751	Chhabra Ispat Private Limited	Director	20/12/2005	20/12/2005	-	Active	NO

Name :	Mr. Surendra Kumar Jain
Designation :	Director
Address :	35, Ballygunge Park, Tirumala Apartment, 6^th Floor, Flat No.6, Kolkata - 700019, West Bengal, India
Date of Birth/Age :	07.11.1952
Date of Appointment :	20.12.2005
DIN No.:	00573246

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U51101WB2005PTC102170	Baghbaan Agencies Private Limited	Director	7/11/2005	7/11/2005	-	Active	NO
2	U27109WB2005PTC106751	Chhabra Ispat Private Limited	Director	20/12/2005	20/12/2005	-	Active	NO
3	U51109WB2005PTC102164	Neptune Distributors Private Limited	Director	13/01/2006	13/01/2006	-	Active	NO
4	U27100WB2009PTC139207	Vinita Steel Trade Private Limited	Director	6/11/2009	6/11/2009	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders		No. of Shares
Surendra Kumar Jain		657850
Saurav Jain		239000
Baghbaan Agencies Private Limited, India		858976
Neptune Distributors Private Limited, India		457457
Apsara Dealcom Private Limited, India		150000
Enarzier Commerce Private Limited, India		275000
Dabriwal Investment and Financiers Private Limited, India		25000
Impex Infotech Limited, India		50000
Raj kavira Mercantile Private Limited, India		300000
Ventex Trade Private Limited, India		100000
Genuine Suppliers Private Limited, India		100000
DTC Impex Private Limited, India		50000
Gvs vinyog Private Limited, India		130000
Dheer Merchants Private Limited, India		70000
Prefer Merchants Private Limited, India		150000
Jalsagar Dealers Private Limited, India		350000
Apsara Trex Private Limited, India		100000
Vinita Steel Trade private Limited, India		1800000
Total		5863283

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	84.70
Directors or relatives of Directors	15.30
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and supplier of Minerals, and M.S. Billets.

Products :

Product Description	Item Code No.
Billets	7224 90 91

PRODUCTION STATUS

As on 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
M. S. Billets	M.T.	Not Available	62400	32413.79

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Union Bank of India, Ezra Street Branch, 55/58, Ezra Street, Kolkata – 700001, West Bengal, India
Bank of Baroda
HDFC Bank

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
a) Term Loans (Including interest accrued and due thereon)
From Bank of Baroda	30.227	35.190
From Union Bank of India	70.755	60.663
Term loan from union Bank of India and Bank of Baroda are primary secured by 1^st paripassu charge on fixed assets by way of equitable mortgage of the land and building/shed along with all movable and immovable plant and machinery and other fixed assets thereon at Nakarjoria, P.S. Salanpur, West Bengal and extension of charge on company current assets. The loans are also secured by personal guarantee and their personal of promoter directors

b) Vehicle Loans
From HDFC Bank (Secured against hypothecation of vehicles)	1.201	0.000

c) Working Capital Loans
CC Account with bank of Baroda	49.751	37.504
CC Account with Union Bank of India	48.704	39.027
Working capital loans from union bank of India and bank of Baroda are jointly secured by hypothecation of all current assets on 1^st paripassu basis and 2^nd pari passu charge by way of extension of charge on entire fixed assets land and building/shed along with all movable and improvable plant and machinery and other fixed assets thereon at Nakarjoria, P.S. Salanpur, West Bengal loan is also secured by personal guarantee and their personal assets of promoter directors.
Total	200.638	172.384


Banking Relations :	--

Auditors :
Name :	R K Patodi and Company Chartered Accountants
Address :	2, Church Lane, 4^th Floor, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-2203160 / 22430913
Fax No.:	91-33-2243014
E-Mail :	rkpatodi@hotmail.com
PAN.:	AACFR8036M

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount

6000000	Equity Shares	Rs.10/- each	Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

5863283	Equity Shares	Rs.10/- each	Rs.58.633 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		58.633	58.633	36.434
2] Share Application Money		22.930	16.000	33.180
3] Reserves & Surplus		29.119	22.728	0.208
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		110.682	97.361	69.822
LOAN FUNDS
1] Secured Loans		200.638	172.384	93.146
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		200.638	172.384	93.146
DEFERRED TAX LIABILITIES		3.538	0.027	0.009

TOTAL		314.858	269.772	162.977

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		165.649	169.944	5.640
Capital work-in-progress		0.024	0.000	144.529

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	92.193	34.529	0.000
	Sundry Debtors	112.072	126.598	2.483
	Cash & Bank Balances	3.915	2.915	0.111
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	57.853	25.162	20.820
Total Current Assets		266.033	189.204	23.414
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	115.325	83.573	7.147
	Other Current Liabilities	1.001	5.490	3.353
	Provisions	0.522	0.319	0.119
Total Current Liabilities		116.848	89.382	10.619
Net Current Assets		149.185	99.822	12.795

MISCELLANEOUS EXPENSES		0.000	0.006	0.013

TOTAL		314.858	269.772	162.977

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income
		Other Income
		TOTAL	867.767	187.208	7.774

Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	857.771	186.668	7.438

	PROFIT BEFORE TAX		9.996	0.540	0.336

Less	TAX		3.605	0.219	0.128

	PROFIT AFTER TAX		6.391	0.321	0.208

	TOTAL IMPORTS		3.201	0.256	NA

	Earnings Per Share (Rs.)		1.09	0.05	0.06

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.74	0.17	2.68

Return on Total Assets (PBT/Total Assets}	(%)	2.32	0.15	1.16

Return on Investment (ROI) (PBT/Networth)		0.09	0.01	0.00

Debt Equity Ratio (Total Liability/Networth)		2.87	2.69	1.49

Current Ratio (Current Asset/Current Liability)		2.28	2.12	2.20

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

During the year the company has registered the good turnover, company’s installed capacity is 62,400 M.T. and the company produced only 32,413.79 M.T. But the company able to produce more than 5 times of MS BILLET compared to previous year (6044.480M.T.). The company registered sales of Rs.787.749 Millions after deduction of Excise Duty of Rs.84.999 Millions during the year. The future prospect looks good. The company expected to perform well on coming years and optimistic to touch its installed capacity in near future.

FORM8:

Corporate identity number of the company	U27109WB2005PTC106751
Name of the company	CHHABRA ISPAT PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	33/1, Netaji Subhas Road, Ist Floor, Room No-174, Kolkata – 700001, West Bengal, India E-Mail : chhabraispat@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10073887
Type of charge	Immovable property Book debts Movable property (not being pledge) Others (Paripassu firstcharge on Co'sCurrent &fixed assets)
Particular of charge holder	Union Bank of India, Ezra Street Branch, 55/58, Ezra Street, Kolkata – 700001, West Bengal, India E-Mail : cbsezrastreet@unionbankofindia.com
Nature of instrument creating charge	1.Composite Hypothecation Deed(SD-20) 2.Memorandum of Entry for Extension of EM 3. Memorandum of Entry for Extension of EM-II
Date of instrument Creating the charge	18.03.2011
Amount secured by the charge	Rs.155.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest a)CC (Hypothecation) Limit Rs.70.000 Millions ,Interest @BR+4% p.a at monthly rests b)LC (DA) Limit Rs.15.000 Millions, usual c)Term Loan Limit Rs.70.000 Millions, Interest @BR+4% p.a at monthly rests Terms of repayment Credit facilities comprising of a)CC (Hypothecation) Limit Rs70.000 Millions and b)LC(DA) Limit Rs.15.000 Millions are repayable on demand. Entire Term Loan limit of Rs.70.000 Millions is repayable as per existing schedule in 66 monthly instalments, first such instalment commenced from April 2010. Margin a)CC (Hypothecation) Limit Rs.70.000 Millions, Margin 25% b)LC (DA) Limit Rs.15.000 Millions, Margin 25% c)Term Loan Limit Rs.70.000 Millions, Margin 25% Extent and operation of the charge 1.Hypothecation by way of pari passu first charge on a)Stocks of Sponge Iron, Metal Scrap etc, lying/ stored at Co's premises/ factory at Village Nakrajoria P.S: Salanpur District Burdwan or elsewhere or are in course of transit b) Book Debts c) Other current and fixed assets including Plant and Machineries 2.First Charge by way of EM extension on Co's immovable properties on Plots No: 964,965,982 and 983 of 2.48 acres and Paripassu1st Charge on Plots No:978,980 and 981 of 4.02 acre at Village Nakrajoria PS: Salanpur Others Inter-alia to secure the aforesaid credit facilities of Rs.155.000 Millions, sanctioned and extended by Union Bank of India, Ezra Street Branch to Subject the company has created charge on its assets as mentioned under paragraph 6(a) and (b),13(d) and 15 hereunder and as per the instruments cited under paragraph 9 above and all other supporting security documents executed by the company in favour of the Bank.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Pari passu first charge on Stocks of Sponge Iron, Metal Scrap etc, lying/ stored at Co's premises/ factory at Village Nakrajoria P.S: Salanpur District Burdwan or elsewhere or in transit Pari passu first charge on Book Debts Pari passu first charge on other current and fixed assets including Plant and Machineries Pari Passu first charge by way of E.M extension on Plots No:978,980 and 981 together admeasuring an area of 4.02 acres at Village Nakrajoria P.S: Salanpur District Burdwan First Charge by way of E.M extension on immovable properties comprising of Plots No: 964,965,982 and 983 of an area of 2.48 acres at Village Nakrajoria P.S: Salanpur District Burdwan
Date of instrument modifying the charge	14.08.2009
Particulars of the present modification	By this modification overall Charge registered against the company Subject in favour of Union Bank of India, Ezra Street Branch stands modified from earlier Rs.120.000 Millions to now Rs.155.000 Millions

FIXED ASSETS:

Building and Shed
Plant and Machinery
Motor Car
Furniture and Fixtures
Office Equipments
Computers

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.53.03
UK Pound	1	Rs.82.34
Euro	1	Rs.69.00

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	33
--RESERVES	1~10	3
--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
TOTAL		28

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.

MIRA INFORM REPORT

92.193

112.072

3.915

0.000

57.853

266.033

115.325

1.001

0.522

116.848

149.185

0.74

2.32

0.09

2.87

2.28

Unit