MIRA INFORM REPORT

Report Date :

21.12.2011

IDENTIFICATION DETAILS

Name :	KR STEELUNION LIMITED (w.e.f. 19.08.1996)
Formerly Known As :	ELECTROLYTIC TINPLATES LIMITED
Registered Office :	11 and 13, Alipore Road, Belvedere Court, Kolkata – 700027, West Bengal
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	06.08.1964
Com. Reg. No.:	21-087911
Capital Investment / Paid-up Capital :	Rs.72.790 Millions
CIN No.: [Company Identification No.]	U28999WB1964PLC087911
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Steel Products such as thermo-mechanically treated steel, tin free steel, low alloy tin plates, tinmill blackplates, and box strapping.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (14)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears huge accumulated losses recorded by the company. However, Trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	11 and 13, Alipore Road, Belvedere Court, Kolkata – 700027, West Bengal, India
Tel. No.:	91-33-24798644
Fax No.:	91-33-24796254
E-Mail :	vkkrsu@rediffmail.com
Factory :	Located at : · Mumbai · Kandla in Gujarat · Kolkata

DIRECTORS

As on 30.09.2011

Name :

Mr. Vinaykumar Khemchand Rajkumar

Designation :

Managing Director

Address :

42, Manek Abad, 5, Setalwad Lane, Off Nepean Sea Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

31.03.1948

Date of Appointment :

31.07.1974

DIN No.:

00289579

Other Directorship :

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
U28999WB1964PLC087911	K R Steelunion Limited	Managing director	31/07/1974	31/07/1974	-	Active	NO
U28910MH1981PTC025075	KR Ispat Private Limited	Director	29/09/2008	1/03/2008	-	Active	NO
U51900MH1981PTC025487	Ridhi-Sidhi Trading And Investments Private Limited	Director	29/09/2008	1/03/2008	-	Active	NO
U65990MH1986PTC039373	Symphony Investments Company Private Limited	Director	29/09/2008	1/03/2008	-	Active	NO
U65990MH1986PTC039121	Riga Investment and Trading Company Private Limited	Director	29/09/2008	1/03/2008	-	Active	NO
U65990MH1986PTC039119	Chitalia Investment and Trading Company Private Limited	Director	29/09/2008	1/03/2008	-	Active	NO
U45201MH1980PTC022156	Orion Power Private Limited	Director	29/09/2008	17/03/2008	-	Active	NO

Name :

Mr. Paritosh Roy

Designation :

Director

Address :

176, Basanta Babu Road, Kanchrapara, Bizpur, 7, Bijpur, North 24 Parganas, Bijpur – 743145, West Bengal, India

Date of Birth/Age :

02.04.1954

Date of Appointment :

04.05.2009

DIN No.:

01310698

Other Directorship :

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
U27101WB2006PTC109880	S K Galvanising Works Private Limited	Director	7/08/2006	7/08/2006	3/10/2007	Active	NO
U28999WB1964PLC087911	K R Steelunion Limited	Director	30/09/2009	4/05/2009	-	Active	NO

Name :

Ms. Ranjana Vinaykumar

Designation :

Director

Address :

42, Manek Abad, 5, Setalwad Lane, Off Nepean Sea Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

09.12.1952

Date of Appointment :

11.06.2010

DIN No.:

02038417

Other Directorship :

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
U28910MH1981PTC025075	KR Ispat Private Limited	Director	29/09/2008	1/03/2008	-	Active	NO
U51900MH1981PTC025487	Ridhi-Sidhi Trading And Investments Private Limited	Director	29/09/2008	1/03/2008	-	Active	NO
U65990MH1986PTC039373	Symphony Investments Company Private Limited	Director	29/09/2008	1/03/2008	-	Active	NO
U65990MH1986PTC039121	Riga Investment and Trading Company Private Limited	Director	29/09/2008	1/03/2008	-	Active	NO
U65990MH1986PTC039119	Chitalia Investment and Trading Company Private Limited	Director	29/09/2008	1/03/2008	-	Active	NO
U45201MH1980PTC022156	Orion Power Private Limited	Director	29/09/2008	17/03/2008	-	Active	NO
U28999WB1964PLC087911	K R Steelunion Limited	Director	11/06/2010	4/05/2009	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Ranjana Vinaykumar	3701453

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Mutual Funds	7.22
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	3.15
Bodies corporate	1.16
Directors or relatives of Directors	50.86
Other top fifty shareholders	1.90
Others	35.71
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Steel Products such as thermo-mechanically treated steel, tin free steel, low alloy tin plates, tinmill blackplates, and box strapping.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Wire Rod in Coils	HC 7213.90
Cold Twisted Deformed Bars	HC 7214.20
Bars and Rods	HC 7215.90

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Electrolytic Tin Plates Prime Grades		60000	60000	--
Steel Bars Prime Grades Scrap		87996	70000	Nil
Processed CRCA		100000	10000	--

Note:

· Installed Capacity is certified by Directors and relied upon by the Auditors being a technical matter

· Includes produced by the company for others – Nil and excludes produced by others for us Nil M/T

· Installed capacity has been reassessed @ 70000 per annum

· Includes Nil re-rolled by us for other into rounds (Previous year Nil)

· Licensed capacity for both Tinplate and E.05 Low Coated Tin Plate 60000 M/T

· Include Installed capacity of 60000 MT for E.05 (Low Coated Tin Plate)

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of Indore, Fort Branch, Mumbai – 400023, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Inland Steel Private Limited	75.000	75.000
Delta Stahlunion Limited	3.300	3.300
Debenture :
Redeemable debentures 599,980 13.5% Non-convertible secured (Previous Year 599,980 debentures)	44.230	44.230
Interest Accrued and due	35.296	35.296
Interest Accrued on 13.5% secured Redeemable debentures under cumulative scheme (secured by mortgage by way of second charge on all immovable and movable present and future assets of the company situated at kandla.)	10.430	10.430
Total	168.256	168.256
Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Long Term Loan from West Bengal Industrial Development Corporation Limited	0.570	0.570
Deferred Payment Credit from Foreign Machieneries Suppliers	248.697	248.697
Others	19.820	22.402
Total	269.087	271.669

Banking Relations :	--
Auditors :
Name :	M. P. Shah and Company Chartered Accountants
Address :	135 A, Biplabi, Rashbehari Basu Road, Kolkata – 700001, West Bengal, India
PAN.:	AAFN1587R
Subsidiaries :	Orion Power Private Limited CIN No.: U45201MH1980PTC022156

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7279035	Equity Shares	Rs.10/- each	Rs.72.790 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		72.790	72.790	72.738
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		47.793	47.793	47.793
4] (Accumulated Losses)		(298.748)	(279.724)	(377.775)
NETWORTH		(178.165)	(159.141)	(257.244)
LOAN FUNDS
1] Secured Loans		168.256	168.256	382.066
2] Unsecured Loans		269.087	271.669	249.267
TOTAL BORROWING		437.343	439.925	631.333
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		259.178	280.784	374.089
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		192.075	207.560	223.402
Capital work-in-progress		112.409	111.230	151.270
INVESTMENT		0.100	0.100	0.100
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1.181	1.181	1.181
	Sundry Debtors	9.042	14.612	22.240
	Cash & Bank Balances	1.853	4.141	21.398
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	9.962	10.731	172.507
Total Current Assets		22.038	30.665	217.326
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	15.200	15.479	25.899
	Other Current Liabilities	52.244	53.292	192.110
	Provisions	0.000	0.000	0.000
Total Current Liabilities		67.444	68.771	218.009
Net Current Assets		(45.406)	(38.106)	(0.683)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		259.178	280.784	374.089

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	0.000	1.625	119.910
		Other Income including Claims	7.449	125.130	8.921
		TOTAL (A)	7.449	126.755	128.831
Less	EXPENSES
		Increase / (Decrease) in stock	0.000	0.000	25.058
		Raw Materials Consumed	0.000	0.000	75.103
		Finished Goods Purchase	0.000	0.000	0.307
		Trading Purchase	0.000	1.583	5.362
		Employees Remuneration	0.412	0.434	22.306
		Manufacturing, Administration and Selling Expenses	10.539	10.610	24.746
		TOTAL (B)	10.951	12.627	152.882
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(3.502)	114.128	(24.051)
Less	FINANCIAL EXPENSES (D)		0.037	0.200	0.089
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(3.539)	113.928	(24.140)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		15.485	15.843	18.845
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(19.024)	98.085	(42.985)
Less	TAX (H)		0.000	0.034	0.081
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(19.024)	98.051	(43.066)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(279.724)	(377.775)	(334.709)
	BALANCE CARRIED TO THE B/S		(298.748)	(279.724)	(377.775)
	Earnings/ (Loss) Per Share (Rs.)		(2.61)	13.47	13.47

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.55	77.38	33.36
Net Profit Margin (PBT/Sales)	(%)	0.00	NA	35.84
Return on Total Assets (PBT/Total Assets}	(%)	(8.88)	41.17	(9.75)
Return on Investment (ROI) (PBT/Networth)		(0.11)	0.61	0.16
Debt Equity Ratio (Total Liability/Networth)		2.83	3.19	3.30
Current Ratio (Current Asset/Current Liability)		0.32	0.44	0.99

LOCAL AGENCY FURTHER INFORMATION

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENT:

The Indian Government has brought above sea change in the business environment by bringing about an open door policy within the Indian Structure and this has brought about the need for all industry to change their approach towards business in order to combat competition from within the country as well as cheap imports. With the consumer becoming more aware of quality goods, their country faces a more reasonable competition from the local players but with its severe competition from cheap imports, which are subsidized by the exporting country.

SUSTAINABLE GROWTH OPPORTUNITIES:

Despite free competition and free import, the growth within the country has allowed their country a fair share of the market particularly because the company has always been oriented toward making top quality product, which was exported to developed countries. With the Indian government emphasizing infrastructural growth, the need for the steel is slated for appreciable growth. With exports and the possibility of offering the company’s products to global tenders, the company’s entire capacity for production should be utilized in the future years.

BUSINESS OUTLOOK:

The company has faced several setbacks due to severe recession in the Industry and a change over from Govt. buying to private sector buying coupled with exports from the country being diverted to the domestic market causing chaos to the large secondary producers. However, the informal market is growing and the scenario in steel shows a growth pattern.

FURTHER MORE

The Company has been able to penetrate various new markets within Bengal and North-East India. Since the consumers have changed towards buying quality goods, the company’s products are better received by the consumer. The company has embarked upon public awareness program about quality and its benefits. This has brought about positive results in the form of increased interest in the company’s quality products and therefore a sustained demand.

FIXED ASSETS

· Land

· Building Shed and Godown

· Plant and Machinery

· Furniture and Fixtures

· Vehicle

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.68.99

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	--
--CREDIT LINES	1~10	--
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		14

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.