MIRA INFORM REPORT

Report Date :

15.06.2011

IDENTIFICATION DETAILS

Name :	GOVIND STEEL COMPANY LIMITED
Registered Office :	219 Chittaranjan Avenue, Kolkata-700006, West Bengal
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	19.12.1958
Com. Reg. No.:	21-024064
Capital Investment / Paid-up Capital :	Rs.11.999 Millions
CIN No.: [Company Identification No.]	U27109WB1958PLC024064
TAN No.: [Tax Deduction & Collection Account No.]	CALG00736B
PAN No.: [Permanent Account No.]	AABCG0130B
Legal Form :	A closely held Public Limited Liability Company.
Line of Business :	Manufacturer, Exporter and Supplier of Construction Casting, Counter Weights, Steel Plant Castings, Decorative Castings, etc.
No. of Employees :	425 (In Office 25) (In Factory 400) (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 180000
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 caution.

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. S. Roy
Designation :	Assistant Manager
Contact No.:	91-9831087626
Date :	14.06.2011

LOCATIONS

Registered Office :	219 Chittaranjan Avenue, Kolkata-700006, West Bengal, India
Tel. No.:	91-33-25309445
Mobile No.:	91-9831087626 (Mr. S. Roy)
Fax No.:	91-33-25309368
E-Mail :	govindsteel@vsnl.com roy@govindsteel.com
Website :	http://www.govindsteel.com
Area :	5000 sq. ft. (Owned)
Factory:	101/1, G.T. Road, Baghkhal, Rishra, Hoogly-700006, West Bengal, India
Tel. No.:	91-33-25309445/30904122/2672201/26721144
Fax No.:	91-33-25309368/26725978
Area :	2000 sq. ft. (Owned)

DIRECTORS

As on 30.09.2010

Name :	Mr. Dinesh Kumar Seksaria
Designation :	Director
Address :	219 Chittaranjan Avenue, Kolkata-700006, West Bengal, India
Date of Birth/Age :	18.05.1951
Date of Appointment :	16.04.1970
Pan No.:	AJJPS2450C
Qualification:	B. Com
Name :	Mr. Gaurav Seksaria
Designation :	Director
Address :	219 Chittaranjan Avenue, Kolkata-700006, West Bengal, India
Date of Birth/Age :	26.09.1978
Date of Appointment :	07.09.1998
Pan No.:	AKFPS0461E
Qualification:	B. Com
Name :	Chhatar Singh Kathoria
Designation :	Director
Address :	7H, Cornfield Road, Kolkata-700019, West Bengal, India
Date of Birth/Age :	15.10.1936
Date of Appointment :	18.05.2009
Qualification:	LLB
Name :	Bhagwati Prasad Seksaria
Designation :	Director
Address :	219, Chittaranjan Avenue, Kolkata-700006, West Bengal, India
Date of Birth/Age :	01.10.1936

KEY EXECUTIVES

Name :	Mr. Bishwanath Newatiaprasad
Designation :	Secretary
Address :	219 Chittaranjan Avenue, Kolkata-700006, West Bengal, India
Date of Birth/Age :	02.12.1936
Date of Appointment :	01.03.1975
Election Commission Identity Card No.:	WB2416222203

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Preference Shares	No. of Equity Shares
Govindram Sureka	--	100
Satyanarayan Jhunjhunwala	--	10
Gajanand Channiwala	--	600
Shiva Prasad Bagaria	--	100
Adytya Kumar Seksria	6000	--
Ritu Seksria	6000	--
Swastika Trexim Private Limited, India	15000	--

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	23.20
Directors or relatives of directors	76.54
Other top fifty shareholders	0.26
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Supplier of Construction Casting, Counter Weights, Steel Plant Castings, Decorative Castings, etc.

Products :

Product Description	Item Code
Ingot Moulds	8454100
C.I. Castings	7325100

Exports :

Products :

Construction Casting, Counter Weight

Countries :

• South Africa
• UAE

Imports :

Products :

Raw Material

Countries :

• China
• Taiwan
• USA

Terms :

Selling :

L/C / Cash / Credit

Purchasing :

L/C / Cash / Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Gray Iron Castings	M.T.	30000	8210.057

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

No. of Employees :

425 (In Office 25) (In Factory 400) (Approximately)

Bankers :

State Bank of Bikaner and Jaipur, Barabourne Road Branch, 4 Synagogue Street, Kolkata-700001, West Bengal, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Cash Credit and others A/Cs with State Bank of Bikaner and Jaipur (Secured against hypothecation of raw material, finished goods, loose tools, stores, coal, book debts and movable assets of the company against government supply bills and having an equitable mortgage of fixed assets of the company and further secured by the personal guarantee of one director of the company)	33.692	41.401
Term Loan (Housing Project) (Secured by equitable mortgage of land and building of the company and further secured by the personal guarantee fo one director of the company)	0.000	15.000
Total	33.692	56.401
Unsecured Loan
From Directors	1.750	2.500
Fro Bodies Corporate	0.000	50.327
Interest Accrued Thereon	0.000	0.024
Total	1.750	52.851

Banking Relations :	--
Auditors :
Name :	U.S. Agarwal and Associates Chartered Accountant
Address :	42/1, B.B Ganguly Street, Kolkata-700012, West Bengal, India
Tel. No.:	91-33-22374622
E-Mail :	us@gmail.com
Associates/Subsidiaries :	Dinesh Brother Private Limited

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.10/- each	Rs.7.500 Millions
55000	Preferences Shares	Rs.100/- each	Rs.5.500 Millions
	Total		Rs.13.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
699900	Equity Shares	Rs.10/- each	Rs.6.999 Millions
50000	Preferences Shares	Rs.100/- each	Rs.5.000 Millions
	Total		Rs.11.999 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		11.999	11.999	12.499
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		33.487	32.455	31.697
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		45.486	44.454	44.196
LOAN FUNDS
1] Secured Loans		33.692	56.401	60.123
2] Unsecured Loans		1.750	52.851	50.927
TOTAL BORROWING		35.442	109.252	111.050
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		80.928	153.706	155.246
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7.662	7.135	7.339
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		1.178	0.288	0.288
DEFERREX TAX ASSETS		0.211	0.177	0.117
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	22.957	64.947	43.697
	Sundry Debtors	18.254	30.989	31.692
	Cash & Bank Balances	0.662	4.243	6.426
	Other Current Assets	41.847	59.510	73.635
	Loans & Advances	70.965	56.312	58.281
Total Current Assets		154.685	216.001	213.731
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	16.610	11.495
	Other Current Liabilities	60.644	53.624	62.757
	Provisions	5.554	4.776	3.474
Total Current Liabilities		82.808	69.895	66.231
Net Current Assets		71.877	146.106	147.500
MISCELLANEOUS EXPENSES		0.000	0.000	0.002
TOTAL		80.928	153.706	155.246

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	322.826	441.547	467.733
		Other Income	6.210	17.508	6.679
		TOTAL (A)	329.036	459.055	474.412
Less	EXPENSES
		Raw material consumed	218.731	398.402	379.642
		Construction expenses	2.751	12.752	23.835
		Manufacturing and other expenses	81.223	56.846	52.246
		Excise duty	0.000	0.671	0.000
		Preliminary expenses written off	0.000	0.002	0.011
		Increase / decrease in stocks	19.875	(18.122)	11.814
		TOTAL (B)	322.580	450.551	467.548
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6.456	8.504	6.864
Less	FINANCIAL EXPENSES (D)		3.284	5.141	3.400
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.172	3.363	3.464
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.108	0.994	1.122
	PROFIT BEFORE TAX (E-F) (G)		2.064	2.369	2.342
Less	TAX (H)		0.682	1.260	1.373
	PROFIT AFTER TAX (G-H) (I)		1.382	1.109	0.969
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		7.791	7.533	6.967
Less	APPROPRIATIONS
		Transferred to Capital Redemption Reserves	0.000	0.500	0.000
		Proposed Dividend on Preferences Shares	0.300	0.300	0.345
		Tax on Dividend	0.051	0.051	0.058
	BALANCE CARRIED TO THE B/S		8.822	7.791	7.533
	EARNINGS IN FOREIGN CURRENCY		49.970	70.879	103.135
	IMPORTS
		Raw Materials	43.134	147.690	55.855
		Traveling	2.770	2.490	0.083
	TOTAL IMPORTS		45.904	150.180	55.938
	Earnings Per Share (Rs.)		1.47	1.08	0.81

Particulars	31.03.2011
Sales Turnover (Approximately)	400.000

The above information has been parted by Mr. S. Roy.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.42	0.24	0.20
Net Profit Margin (PBT/Sales)	(%)	0.64	0.54	0.50
Return on Total Assets (PBT/Total Assets}	(%)	1.27	1.06	1.06
Return on Investment (ROI) (PBT/Networth)		0.05	0.05	0.05
Debt Equity Ratio (Total Liability/Networth)		2.60	4.03	4.01
Current Ratio (Current Asset/Current Liability)		1.87	3.09	3.23

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	90249563
Corporate identity number of the company	U27109WB1958PLC024064
Name of the company	GOVIND STEEL CO LTD
Address of the registered office or of the principal place of business in India of the company	219 Chittaranjan Avenue, Kolkata-700006, West Bengal, India
Type of charge	Book Debts Movable Property (not being pledge) Floating Charge Others
Particular of charge holder	State Bank of Bikaner and Jaipur, Barabourne Road Branch, 4 Synagogue Street, Kolkata-700001, West Bengal, India
Email	sbbj10003@sbbj.co.in
Nature of description of the instrument creating or modifying the charge	Supplemental Agreement of Loan-Cum-Hypothecation.
Date of instrument Creating the charge	21.11.2009
Amount secured by the charge	Rs.72.300 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit (Hypo): Present effective rate 12.25% p.a. with monthly rests. Terms of Repayment Working Capital Limit is repayable on demand. Existing term loan is repayable as per the existing terms of sanction. Margin As stipulated by the Bank for the respective assets from time to time. Raw Materials: Imported : 25%, Indigenous : 25%, Semi-Finished Goods : 25%, Finished Goods : 25%, Components/Consumables/Spares : 25%, Domestic Receivables : 50%, Export Packing Credit : 10%, Term Loan: As per the existing terms. Letter of Credit : 25% and Bank Guarantee: 10%. Term loan: As per the existing terms. Extent and Operation of the charge The charge operates as first charge basis on the whole of the hypothecated current assets and moveable fixed assets including plant and machinery of the Company, both present and future and mortgaged properties to secure the maximum amount under the said charge fixed at Rs.72.300 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 charged	I) First hypothecation charge on all current assets of the Company including stock of raw materials, SIP, finished goods, stocks and spares lying with the Company's factory and other stocks points, II) Book debts and other current assets of the Company including movable fixed assets both present and future. III) Land and building in the name of the Company situated at 100/1 G.T Road, Rishra, Hooghly in the State of West Bengal.
Date of latest modification prior to the present modification	16.04.2008
Particulars of the present modification	By this modification, the overall limit is reduced from Rs.97.300 millions to Rs.72.300 millions and charge on hypothecated current assets and movable fixed assets including plant and machinery and mortgaged properties of the Company extended to secure the reduced overall limit together with interest, costs and charges thereon. All other terms and conditions continue to remain as before in full force and effect.

Trade References:

• Olympic Gunder, USA
• South Bag Junder Inc, USA
• Trojan, India

Fixed Assets:

• Land
• Building
• Plant and Machinery
• Weighing Machine
• Electric Installation
• Tube Well
• Computer
• Office Equipment
• Furniture and Fixtures
• Vehicles
• Fire Extinguisher

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.44.77
UK Pound	1	Rs.73.45
Euro	1	Rs.64.55

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		29

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.