MIRA INFORM REPORT

Report Date :

11.06.2011

IDENTIFICATION DETAILS

Name :	VENKY HI-TECH ISPAT LIMITED (w.e.f.20.03.2007)
Formerly Known As :	VENKY HI-TECH STEELS LIMITED (w.e.f. date 12.01.20007 ) VENKY HI-TECH STEELS PRIVATE LIMITED (w.e.f. date 20.10.2006) BENGAL HI-TECH STEELS PRIVATE LIMITED
Registered Office :	4, Diamond Chamber, Block-II, Unit-7J, Chowringhee lane, Kolkata-700016, West Bengal
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	26.12.2003
Com. Reg. No.:	21-097517
Capital Investment / Paid-up Capital :	Rs.19.536 Millions
CIN No.: [Company Identification No.]	U27109WB2003PLC097517
TAN No.: [Tax Deduction & Collection Account No.]	CALB08677E
PAN No.: [Permanent Account No.]	AACCB4235D
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Manufacturer of Picon TMT
No. of Employees :	74 (In Office-14, In Factory-60) (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 640000
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 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. Utpal Guria
Designation :	Office Staff
Contact No.:	91-33-2252399
Date :	07.06.2011

LOCATIONS

Registered Office :	4, Diamond Chamber, Block-II,Unit-7J,4Chowringhee lane, Kkolkata-700016, West Bengal, India.
Tel. No.:	91-33-22523999 / 2252399
Mobile No.:	91-9163999900 (Mr. Niraj)
Fax No.:	91-33-22523998
E-Mail :	info@vicontmt.com ssawaria@rediffmail.com VENKYLITECH@HOTMAIL.COM
Website :	www.vicontmt.com
Area :	760 Sq. ft.
Location :	Rented
Factory :	Bamunara Industrial Area, G.T. Road, Duragapur-12, India.
Tel No.:	91-343-3299966, 3292101
Fax No.:	91-343-2520987

DIRECTORS

As on 28.09.2010

Name :	Mr. Krishna Raj Gupta
Designation :	Director
Address :	99, Vivekanand Road, 4^th, Floor, Kolkata-700006, West Bengal, India.
Date of Birth/Age :	21.01.1970
Qualification :	Graduate
Date of Appointment :	27.12.2003
DIN:	00547812
Name :	Anand Raj Gupta
Designation :	Director
Address :	99, Vivekanand Road, 4^th, Floor, Kolkata-700006, West Bengal, India.
Date of Birth/Age :	03.03.1978
Qualification :	Graduate
Date of Appointment :	26.12.2003
DIN:	00547924
Name :	Mr. Neeraj Kumar Vidyarthi
Designation :	Additional Director
Address :	Flat No-B-1, Charurbhuj Complex, Patna-800001, Bihar, India.
Date of Birth/Age :	03.04.1971
Qualification :	Graduate
Date of Appointment :	03.01.2011
DIN:	03088183
Name :	Mr. Chakarwarti Prasad Das
Designation :	Directors
Address :	99, Vivekananda Road, 4^th Floor, Kolkata-700006, West Bengal, India.
Date of Birth/Age :	01.01.1953
Qualification :	Graduate
Date of Appointment :	17.04.2004
DIN:	00547867
Date of Cessation:	05.01.2011

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Anand Raj Gupta	244180
A No Devi	500
Ashokk Umar Das	1700
B Iswanath Das	1400
B Rahmo Deo Das	2480
C Hakrawarti Prasad	38000
Deokid Evi	2000
Gajo Devi	900
Harish Chandra	900
Krishna Raj Gupta	956830
Mohit Gupta	1000
Ram Saaran Kumar	800
Rashmi Gupta	4000
Sonia Gupta	166800
Usha Devi	2600
Ranjana Kumari	800
Venky Ferrous	528750
TOTAL	1953640

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate (not mentioned above)	27.05
Directors or relatives of directors	72.95
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Picon TMT

Products :

• TMT Bars
• Steel Billets
• Structural Steel Sections

Item Code No.(ITC Code)	Product Description
3302	M.S.Ingot
7380	TMT Bars

Terms :

Selling :

Credit (30 days)

Purchasing :

Credit (30 days)

PRODUCTION STATUS As On 31.03.2010

Particulars	Unit	License Capacity	Installed Capacity	Actual Production
TMT Bar	M.T.	(NA)	84000 (84000)	32962.895 (23053.705
Miss Rolls	M.T.	(NA)	(NA)	3015.315 (2439.205)
M.S. Ingot	M.T.	(NA)	36000 (36000)	30078.580 (17275.570)
Runner Riser	M.T.	(NA)	(NA)	1284.400 (860.100)

NOTE:

1 As Certified by the management and being a technical matter, relied upon by the Auditors.

2. Out of above production of M.S. Ingots, 29,615.210 M.T.(Previous year 17,430.190 M.T.) have been used for captive consumption. Mis Rolls 3,015.315 M.T. and Runner Riser 1,284.400 MT are also captive consumed during the year.

GENERAL INFORMATION

Customers :

Others-Distributer

No. of Employees :

74 (In Office-14, In Factory-60) (Approximately)

Bankers :

• State Bank of India, N.S. Road Branch, 8, N.S. Road, Kolkata-700001, West Bengal, India.
• Axis Bank Limited

Facilities :

Secured Loan	As on 31.03.2010 (Rs. In Millions)	As on 31.03.2009 (Rs. In Millions)
Term Loan from State Bank of India.(Secured against equitable mortgage of immovable properties of the Company and hypothecation of movable properties)	16.406	1.807
Cash Credit from State Bank of India.(Secured against all present and future goods, book debts and all other movable assets)	149.531	88.671
Commercial Vehicle Loan from:
TML Finance Services (Trucks)	0.081	0.992
Axis Bank Limited (Car Loan)	1.167	0.000
L and T Finance Limited (Mobile Crane and JCB Loan)	0.000	0.959
TOTAL	167.185	92.429
Unsecured Loan	As on 31.03.2010 (Rs. In Millions)	As on 31.03.2009 (Rs. In Millions)
From Directors and Shareholders	0.812	4.169
TOTAL	0.812	4.169

Banking Relations :	--
Auditors :
Name :	Sawaria Khaitan and Associates Chartered Accountant
Address :	1/1 A, Vansittart Row, 1^st Floor, Room No.-6, Kolkata-700001, West Bengal, India.
Tel. No.:	91-33-22480021, 91-33-22432886
Fax No.:	91-33-22483135
E-Mail :	skassociaties85@rediffmail.com
Pan No.:	AAIFS8727N

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1953640	Equity Shares	Rs.10/- each	Rs.19.536 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		19.536	16.036	8.961
2] Share Application Money		1.300	36.300	72.050
3] Reserves & Surplus		139.168	101.992	38.083
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		160.004	154.328	119.094
LOAN FUNDS
1] Secured Loans		167.185	92.429	77.478
2] Unsecured Loans		0.812	4.169	3.300
TOTAL BORROWING		167.997	96.598	80.778
DEFERRED TAX LIABILITIES		3.244	3.833	0.420
TOTAL		331.245	254.759	200.292
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		98.109	82.160	27.857
Capital work-in-progress		0.000	7.275	58.426
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	70.026	75.558	72.086
	Sundry Debtors	158.666	245.277	202.651
	Cash & Bank Balances	19.194	38.836	3.239
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	39.096	27.515	40.249
Total Current Assets		286.982	387.186	318.225
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	35.509	189.628	177.615
	Other Current Liabilities	16.361	31.203	25.663
	Provisions	2.026	1.117	1.025
Total Current Liabilities		53.896	221.948	204.303
Net Current Assets		233.086	165.238	113.922
MISCELLANEOUS EXPENSES		0.050	0.086	0.087
TOTAL		331.245	254.759	200.292

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales and Services	1271.559	833.993	444.223
		Other Income	2.026	1.855	0.117
		TOTAL (A)	1273.585	835.848	444.340
Less	EXPENSES
		Raw Material Consumed	678.904	496.464
		Stores and Spares Consumed	13.429	9.129
		Purchases (Trading)	311.890	132.462
		Manufacturing Expenses	179.336	86.119
		Excise Duties	61.336	68.614
		Salary and Allowances	3.154	2.617
		Administrative and Other Expenses	3.026	1.347
		Preliminary Expenses W/off	0.036	0.036
		Increase /(Decrease) in Stock	(13.834)	9.362
		TOTAL (B)	1237.277	806.150	431.453
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		36.308	29.698	12.887
Less	FINANCIAL EXPENSES (D)		17.561	13.723	7.298
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		18.747	15.975	5.589
Less/ Add	DEPRECIATION/ AMORTISATION (F)		12.732	11.886	3.489
	PROFIT BEFORE TAX (E-F) (G)		6.015	4.089	2.100
Less	TAX (H)		0.340	3.855	0.700
	PROFIT AFTER TAX (G-H) (I)		5.675	0.234	1.400
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.871	2.637	1.237
	BALANCE CARRIED TO THE B/S		8.546	2.871	2.637
	Earnings Per Share (Rs.)		1.97	0.15	1.56

Particulars	31.03.2011
Sales Turnover	1270.000

The above information has been parted by Mr. Utpal Guria (Office Staff).

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.44	0.02	0.31
Net Profit Margin (PBT/Sales)	(%)	0.47	0.49	0.47
Return on Total Assets (PBT/Total Assets}	(%)	1.56	0.87	0.60
Return on Investment (ROI) (PBT/Networth)		0.03	0.02	0.01
Debt Equity Ratio (Total Liability/Networth)		1.38	2.06	2.39
Current Ratio (Current Asset/Current Liability)		5.32	1.74	1.55

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

Corporate identity number of the company	U27109WB2003PLC097517
Name of the company	VENKY HI-TECH ISPAT LIMITED
Address of the registered office or of the principal place of business in India of the company	4, Diamond Chamber, Block-II, Unit-7J, Chowringhee lane, Kolkata-700016, West Bengal.
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80039708
Type of charge	Immovable property
Particular of charge holder	Name: State Bank Of India Address: N.S. Road Branch, 8, N.S. Road, Kolkata-700001, West Bengal, India. E-Mail: sbi.144@sbi.co.in
Nature of instrument creating charge	Memorandum of Deposit for Creation of Further Charge for Term Loan/Overall Limit where the Initial Charge is Created way of Mortgage by Deposit of Title Deeds belonging to the Borrower and Corporate Guarantor/Security Provider.
Date of instrument Creating the charge	29.12.2010
Amount secured by the charge	Rs.300.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: CC (Stocks): At 4.50% above BR i.e. 12.10% p.a. Term Loan: At 15.00% p.a. as per CRA SB-8, payable monthly. Terms of Repayment: Working Capital Limit is repayable on demand. The present outstanding Term Loan - II of Rs.45.000 Millions (original Term Loan sanctioned Rs.50.000 Millions) is repayable in 20 quarterly installments of Rs.2.500 Millions each commencing from 30.06.2010 and ending on 31.03.2015. Interest is to be paid as and when due. Margin: As stipulated by the Bank for the respective assets from time to time. Raw Materials : 25%, Stock-in-process : 25%, Finished Goods : 25%, Receivables (Cover 90 days) : 40%, Term Loan - II : 33.77% and Letter of Credit: 25%. Extent and Operation of the charge: The charge operates as first charge basis on the whole of the mortgaged properties belonging to the Borrower and M/s. Venky Power and Metals Private Limited (Corporate Guarantor/Security Provider) as mentioned in Column No.15 to secure the maximum amount under the said charge fixed at Rs.300.000 Millions together with interest, costs and charges thereon. Others: The Borrower shall not do or allow anything which may prejudice the security and shall comply with the terms and conditions of the Agreements.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Land measuring 188 decimal in District Burdwan, PS Kanksa, Mauza Bamunara, JL No.58, Khatian No.LR 240, 926/2, 698, 806, 99, 258, 265, 44, 96, 2172 Plot No. 3576, 3578, 3568, 3401, 3579 under Title. Deed No. 5204 registered at ADSR, Durgapur, Burdwan. Land measuring 46.5 decimal in District - Burdwan, PS-Kanksa, Mauza - Bamunara, JL No. 58, Khatian No.LR-454, Plot No. 3557 under Title Deed. No. 1463 registered at ADSR, Durgapur, Burdwan. Land measuring 12.66 decimal in District - Burdwan, PS-Kanksa, Mouza - Bamunara, JL No. 58, Khatian No.LR-107,116, 645, 2063, Plot No.4838, 3402, 4837 Under Title Deed No.4501 registered at ADSR, Durgapur, Burdwan. Land measuring 35.5 decimal in District-Burdwan, PS-Kanksa,Mouza-Bamunara, JL No.58, Khatian No.LR-866, 762, 21, & 50, Plot No.3557. Under Title Deed No.1464 registered at ADSR, Durgapur, Burdwan. Land measuring 72 decimals in District - Burdwan, PS-Kanksa, Mouza - Bamunara, JL No.58,Khatian No.LR-711, 717, 582, 321, 40, 55, 362,1169. 1170, Plot No.4830, 4833, 3583, 3556, 4834 under Title Deed No.5450. Land measuring 85.66 decimal in District - Burdwan, PS-Kanksa, Mouza - Bamunara, JL No. 58 under Title Deed No. 19. Land measuring 187.66 decimals in District - Burdwan, PS-Kanksa, Mouza - Bamunara under Title Deed No.5205. Land measuring 5.88 acre in mouza Jatgoria, J.L No.19, P.O. Shibpur, Dist. Burdwan and Plot. No.400,Khatian No.77 in mouza Jamban, P.O.Shibpur, Dist.Burdwan under Title Deed No.2373 belonging to the Borrower. Land measuring 12.63 acres in the District Burdwan, P. S. Faridpur, Mouza Kendula. JL-28, LR Kh. No.-215, 138, 103, RS Plot No.-140/553, 140/549, 140/596, 2, 140/595, 140/552 under Title Deed No. 3260 in Book No.I, Volume No.122, Pages 8 to 18 for the year 2004 registered at ADSR Durgapur Burdwan belonging to M/s. Venky Power and Metals Private Limited (Corporate Guarantor/Security Provider).
Date of last modification prior to the preset modification	09.09.2009
Particulars of the present modification	By this modification, the overall limit is enhanced from Rs.215.000 Millions to Rs.300.000 Millions as stated under and charge on above mentioned mortgaged properties of the Borrower and Corporate Guarantor/Security Provider to secure the enhanced overall limit together with interest, costs and charges thereon: CC (Stocks): Rs.24.00 Millions TL-II : Rs.4.50 Millions LC: Rs.1.50 Millions Overall Limit: Rs.30.00 Millions All other terms and conditions continue to remain as before in full force and effect.

FIXED ASSETS:

• Land and Land Development
• Factory shed and Building
• Furniture and Fixture
• Plant and Machinery
• Gassefire System
• Pollutions Control Equips
• Air Conditioners
• Office Equipments
• Computer
• Commercial Vehicles
• Motor Car / Bike

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	Indian Rupees
US Dollar	1	Rs.44.72
UK Pound	1	Rs.72.93
Euro	1	Rs.64.72

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	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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		30

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.