MIRA INFORM REPORT

Report Date :

10.06.2011

IDENTIFICATION DETAILS

Name :	M P K STEELS (INDIA) PRIVATE LIMITED
Registered Office :	Dharamnala Road, Diphu, Karbi Anglong, Assam-782460
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	19.12.2005
Com. Reg. No.:	02-007674
Capital Investment/ Paid-up Capital:	Rs. 10.919 Millions
CIN No.: [Company Identification No.]	U27109AS2005PTC007674
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of Channels, Angles, Joiust or Beams, MS Flat, MS Round Bars, MS Square Bars, MS Sections etc.
No. of Employees:	Approximately 70 (in Factory)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 270000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Manoj
Designation :	Director
Contact No.:	91-9829054216
Date :	07.06.2011

LOCATIONS

Registered Office :	Dharamnala Road, Diphu, Karbi Anglong, Assam-782460, India
Tel. No.:	91-361-2343168 91-141-2332673
Mobile No.:	91-9829054216 (Mr. Manoj)
Fax No.:	91-141-2332924
E-Mail :	mpkgroup@gmail.com gclient09@gmail.com
Factory :	A-195, RIICO Industrial Area, Ext. Phase 2, Bagru, Jaipur-303007, Rajasthan, India
Tel. No.:	91-141-3264216/ 5173868/ 6505053
Fax No.:	91-141-4005052
Area :	10500 sq.mtr (Owned)

DIRECTORS

As on 30.09.2010

Name :	Mr. Pankaj Sharma
Designation :	Director
Address :	2/210, Upadhyay House, Vidhyadhar Nagar, Jaipur-302012, Rajasthan, India
Date of Birth/Age :	02.06.1981
Date of Appointment :	13.03.2007
DIN No.:	00706942
Name :	Mr. Suresh Kumar Sharma
Designation :	Director
Address :	2/210, Upadhyay House, Vidhyadhar Nagar, Jaipur-302012, Rajasthan, India
Date of Birth/Age :	01.07.1956
Date of Appointment :	13.03.2007
DIN No.:	00706956
Name :	Mr. Manoj Kumar Sharma
Designation :	Director
Address :	2/210, Upadhyay House, Vidhyadhar Nagar, Jaipur-302012, Rajasthan, India
Date of Birth/Age :	26.03.1980
Date of Appointment :	19.12.2005
DIN No.:	00706964
Name :	Mr. Santosh Devi Sharma
Designation :	Director
Address :	2/210, Vidhyadhar Nagar, Jaipur-302012, Rajasthan, India
Date of Birth/Age :	11.07.1952
Date of Appointment :	28.02.2005
Date of Ceasing:	01.01.2009
DIN No.:	00921443
Name :	Ms. Nidhi Sharma
Designation :	Director
Address :	2/210, Upadhyay House, Vidhyadhar Nagar, Jaipur-302012, Rajasthan, India
Date of Birth/Age :	13.01.1980
Date of Appointment :	28.02.2005
Date of Ceasing:	01.01.2009
DIN No.:	01381038

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Santosh Devi Sharma	264470
Nidhi Sharma	131071
Manoj Sharma	144220
Anita Sharma	39680
S K Sharma	230776
Pankaj Sharma	87906
Saroj Devi Sharma	2520
S. N. Sharma	1460
Ravi Sharma	5150
M L Sharma	2280
Krishna Devi Sharma	1450
Vijay Sharma	3660
Shyarn Sharma	2410
Bhanwar Devi Sharma	2416
K R. Choudhary	2230
Prahlad Choudhary	2480
Suman Devi Sharma	2750
Urvashi Sharma	20000
P K Metals Private Limited, Assam, India	145000
Total	1091929

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Bodies corporate	13.28
Directors or relatives of Directors	86.72
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Channels, Angles, Joiust or Beams, MS Flat, MS Round Bars, MS Square Bars, MS Sections etc.
Products :	· Channels · Angles · Joist or Beams · MS Flat · MS Round Bars · MS Square Bars · MS Sections

PRODUCTION STATUS AS ON (31.03.2010)

Particulars	Unit	Actual Production
Finished Goods	MT	13231.407
Scrap	MT	243.520

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

No. of Employees :

Approximately 70 (in Factory)

Bankers :

• Bank of Baroda
• HDFC Bank Limited
• State Bank of Bikaner and Jaipur

Facilities :

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Term Loan from Bank of Baroda (Secured against equitable mortgage of company’s fixed assets)	0.273	2.850
Term Loan form SBBJ (Secured against equitable mortgage of company’s fixed assets)	30.514	0.000
Bank of Baroda (Bills Discounting)	28.782	15.826
Cash Credit limit from Bank of Baroda (Secured against hypothecation of stocks, book debts, other current asset and equitable mortgage of company’s fixed assets)	1.941	57.343
Cash Credit Limit form SBBJ (Secured against hypothecation of stocks, book debts, other current assets and equitable mortgage of company’s fixed assets)	73.368	0.000
Car Loan from HDFC Bank (Secured against hypothevation of car)	0.000	0.093
Car Loan from HDFC Bank (Secured against hypothecation of Car)	0.400	0.612
Car Loan From HDFC Bank (Secured against hypothecation of car)	1.046	0.000
Car Loan from Reliance Capital (Secured against hypothecation of car)	0.050	0.236
Total	136.374	76.960
Unsecured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Loan from Directors and Shareholders	3.065	3.065
Total	3.065	3.065

Banking Relations :	--
Auditors :
Name :	Saurabh Agarwal and Associates Chartered Accountant
Address :	3^rd Floor, Shankar Complex, Christian Basti, G.S. Road, Guwahati-781005, Assam, India
Tel. No.:	91-361-2343167/ 68/ 69
Fax No.:	91-361-2343165
E-Mail :	cs.saaghy@gmail.com
Group Company :	M P K Products Private Limited M P K Metals Private Limited M P K Ispat (India) Private Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Shares	Rs. 10/- each	Rs. 12.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1091929	Equity Shares	Rs. 10/- each	Rs. 10.919 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008 (Consolidated)
SHAREHOLDERS FUNDS
1] Share Capital		10.919	8.398	8.226
2] Share Application Money		4.540	11.072	1.244
3] Reserves & Surplus		51.590	33.842	27.378
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		67.049	53.312	36.848
LOAN FUNDS
1] Secured Loans		136.374	76.960	48.421
2] Unsecured Loans		3.065	3.065	7.065
TOTAL BORROWING		139.439	80.025	55.486
DEFERRED TAX LIABILITIES		0.353	0.378	0.336
TOTAL		206.841	133.715	92.670
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		98.623	49.282	31.044
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.118	0.065	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	27.351	27.415	22.018
	Sundry Debtors	89.527	57.609	43.236
	Cash & Bank Balances	3.150	1.246	0.841
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	11.778	13.054	15.943
Total Current Assets		131.806	99.324	82.038
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	12.132	6.347	14.406
	Other Current Liabilities	6.343	3.324	1.845
	Provisions	5.268	5.359	4.272
Total Current Liabilities		23.743	15.030	20.523
Net Current Assets		108.063	84.294	61.515
MISCELLANEOUS EXPENSES		0.037	0.074	0.111
TOTAL		206.841	133.715	92.670

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008 (Consolidated)
	SALES
		Turnover	369.762	418.545	316.013
		Other Income	6.194	0.554	1.163
		TOTAL (A)	375.956	419.099	317.176
Less	EXPENSES
		Raw Material Consumed	320.867	363.052	292.147
		Utilities	18.579	24.283	15.926
		Personnel Cost	4.958	3.900	2.065
		Other Expenses	0.000	0.000	2.352
		Administrative Expenses	2.559	3.384	0.000
		Selling and Distribution Expenses	0.813	1.106	1.084
		Directors remuneration	0.706	0.825	0.900
		Preliminary Expenses written off	0.037	0.037	0.037
		Increase in Inventories	6.889	0.935	[15.147]
		TOTAL (B)	355.408	397.522	299.364
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		20.548	21.577	17.812
Less	FINANCIAL EXPENSES (D)		9.603	8.312	6.312
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10.945	13.265	11.500
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.916	3.769	4.023
	PROFIT BEFORE TAX (E-F) (G)		7.029	9.496	7.477
Less	TAX (H)		2.330	3.032	2.513
	PROFIT AFTER TAX (G-H) (I)		4.699	6.464	4.964
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		15.251	8.787	3.823
	BALANCE CARRIED TO THE B/S		19.950	15.251	8.787
	(Basic and Weighted average) Earnings Per Share (Rs.)		4.30	7.70	6.03

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008 (Consolidated)
PAT / Total Income	(%)	1.25	1.54	1.57
Net Profit Margin (PBT/Sales)	(%)	1.90	2.27	2.37
Return on Total Assets (PBT/Total Assets}	(%)	3.05	6.39	6.61
Return on Investment (ROI) (PBT/Networth)		0.10	0.18	0.20
Debt Equity Ratio (Total Liability/Networth)		2.43	1.78	2.06
Current Ratio (Current Asset/Current Liability)		5.55	6.61	3.99

LOCAL AGENCY FURTHER INFORMATION

Trade References:

· Abhinav Industries

· R R Finance

· Engineer Enterprises

Fixed Assets:

· Land

· Building

· Electrification Building

· Tubewell

· Plant

· Office Building

· For Fiesta Car

· Volks Wagon Jeta

· Honda City Car

· Santro Car

· Maruti Swift Car

· Scooter (Activa)

· Scooter (Elemo)

· Tractor

· Motorcycle

· Computer

· Lab Equipments

· Furniture and Fixtures

· Air Conditioner

· LCD

· Xerox Machine

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.44.72
UK Pound	1	Rs.73.47
Euro	1	Rs.65.38

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	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		45

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.