MIRA INFORM REPORT

Report Date :

21.06.2011

IDENTIFICATION DETAILS

Name :	DIVYANSH STEEL PRIVATE LIMITED
Registered Office :	183, Small Factory Area, Bagadganj, Nagpur – 440008, Maharashtra
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	28.08.2006
Com. Reg. No.:	11-164127
Capital Investment / Paid-up Capital :	Rs.60.000 Millions
CIN No.: [Company Identification No.]	U27109MH2006PTC164127
TAN No.: [Tax Deduction & Collection Account No.]	NGPD03629D
PAN No.: [Permanent Account No.]	AACCD4504B
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of Angles.
No. of Employees :	40 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 200000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a company having moderate track. There appears some 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 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. Anand
Designation :	Accounts Departments
Date :	20.06.2011

LOCATIONS

Registered Office :	183, Small Factory Area, Bagadganj, Nagpur – 440008, Maharashtra, India
Tel. No.:	91-712-2760894/ 2764239
Fax No.:	91-712-2760890
E-Mail :	divyansh_steel@rediffmail.com divyanshsteel@rediffmail.com mtcsteel_ngp@sancharnet.in
Location :	Owned
Factory :	60/62, Mouza Bhowari, 19 KM Stone, Bhandara Road, Nagapur, Maharashtra, India

DIRECTORS

(AS ON 30.09.2009)

Name :	Mr. Vishal Vimalkumar Agrawal
Designation :	Director
Address :	House No.283, Geeta Sadan, Wardhaman Nagar, Nagpur – 440008, Maharashtra, India
Date of Birth/Age :	27.11.1979
Date of Appointment :	28.08.2006
Name :	Mr. Sandeep Vimalkumar Agrawal
Designation :	Director
Address :	House No.283, Geeta Sadan, Wardhaman Nagar, Nagpur – 440008, Maharashtra, India
Date of Birth/Age :	01.03.1975
Date of Appointment :	28.08.2006
Name :	Mr. Alok Vimalkumar Agrawal
Designation :	Director
Address :	House No.283, Geeta Sadan, Wardhaman Nagar, Nagpur – 440008, Maharashtra, India
Date of Birth/Age :	20.07.1982
Date of Appointment :	28.08.2006
Name :	Mr. Vimalkumar Prahladrai Agrawal
Designation :	Director
Address :	283, Geeta Sadan, Wardhaman Nagar, Nagpur – 440008, Maharashtra, India
Date of Birth/Age :	21.02.1954
Date of Appointment :	13.10.2008

KEY EXECUTIVES

Name :	Mr. Anand
Designation :	Accounts Departments

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2009)

Names of Shareholders	No. of Shares
Sandeep Vimalkumar Agrawal	1099970
Vishal Vimalkumar Agrawal	1100000
Alok Vimalkumar Agrawal	1100000
Naresh Kanhaiyalal Jaisinghani	10
Geetikadevi Harsh Agrawal	10
Naginadevi Brijkishor Agrawal	10
Vinita Atul Gupta	150000
Shobha Umesh Maheshwari	1000
Sonal Sandeep Agrawal	50000
Rachnadevi Raju Agrawal	850000
Sarojdevi Vimalkumar Agrawal	709000
Vimalkumar Prahladrai Agrawal	650000
Deepshikha Vishal Agrawal	50000
Gopiram Bhaniram Agrawal	130000
Ashish Gopiram Agrawal	110000
Total	6000000

(AS ON 30.09.2009)

Category	Percentage
Directors or relatives of directors	97.48
Other top fifty shareholders	2.52
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Angles.

Products :

Products Description	Item Code No.
Angle	72165000
Beam	72163200

Terms :

Purchasing :

Depend

GENERAL INFORMATION

Customers :

Wholesaler and OEM’s

No. of Employees :

40 (Approximately)

Bankers :

· Punjab National Bank

MCB, Surya Nagar, Kalmana Road, Nagpur – 440035, Maharashtra, India

Facilities :

Secured Loans	31.03.2009	31.03.2008
	(Rs. In Millions)
From Banks
Punjab National Bank
Term Loan (A/c 420400IB00000292)	59.021	22.387
(Secured by first charge on Block of assets by way of hypothecation of Plant and Machinery, and other Assets and Equitable mortgage of Factory Land and Building) (Repayable within one year Rs.10.188 Millions)
Cash Credit (A/c 4204008700000579)	81.707	0.000
[Secured by way of hypothecation of Stock of Raw Materiel, Stock in Process, semi-finished and finished goods, goods in transit, spares, tools etc. and Book Debts not older than 90 days.) (Above loans are further secured by way of Collateral security in the form of equitable mortgage on land owned by the directors and their relatives and personal guarantee of the directors of the company and their relative.
HDFC Bank Limited Hydra Crame Loan (A/c No.3233221)	0.675	0.000
Total	141.403	22.387
Unsecured Loans	31.03.2009	31.03.2008
	(Rs. In Millions)
From Directors	0.262	0.000
From Shareholders and Relatives of directors	14.161	4.000
From Firm of which Partners are shareholders	0.317	0.000
From Others	37.918	0.000
Total	52.658	4.000

Banking Relations :	--
Auditors :
Name :	Loya Bagri and Company Chartered Accountant
Address :	Popular Market, Gandhi Bagh, Nagpur – 440002, Maharashtra, India
Tel No.:	91-712-2762408/ 2766229/ (R) 2233359 (L), 2248894 (B)
Email :	Loyabagri_ngp@bsnl.in

CAPITAL STRUCTURE

(AS ON 30.09.2009)

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Share	Rs.10/- each	Rs.70.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Share	Rs.10/- each	Rs.60.000 Millions

(AS ON 31.03.2009)

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Share	Rs.10/- each	Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Share	Rs.10/- each	Rs.60.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		60.000	0.600	0.600
2] Share Application Money		0.000	30.900	2.400
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(9.960)	0.000	0.000
NETWORTH		50.040	31.500	3.000
LOAN FUNDS
1] Secured Loans		141.403	22.387	0.000
2] Unsecured Loans		52.658	4.000	0.000
TOTAL BORROWING		194.061	26.387	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		244.101	57.887	3.000
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		88.341	3.171	2.382
Capital work-in-progress		0.000	51.737	0.006
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	65.496	0.000	0.000
	Sundry Debtors	50.813	0.000	0.000
	Cash & Bank Balances	39.887	0.228	0.761
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	15.863	6.053	0.000
Total Current Assets		172.059	6.281	0.761
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	9.939	3.398	0.338
	Other Current Liabilities	6.318	0.439	0.000
	Provisions	0.042	0.005	0.000
Total Current Liabilities		16.299	3.842	0.338
Net Current Assets		155.760	2.439	0.423
MISCELLANEOUS EXPENSES		0.000	0.540	0.189
TOTAL		244.101	57.887	3.000

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009
	SALES
		TOTAL (A)	204.821
Less	EXPENSES
		TOTAL (B)	183.762
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		21.059
Less	FINANCIAL EXPENSES (D)		19.155
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.904
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.822
	PROFIT BEFORE TAX (E-F) (G)		(9.918)
Less	TAX (H)		0.042
	PROFIT AFTER TAX (G-H) (I)		(9.960)
	Earnings Per Share (Rs.)		(1.66)

Particulars	31.03.2011	31.03.2010
Sales Turnover	300.000	280.000

The above information has been parted by Mr. Anand.

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	(4.86)	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	(3.81)	NA	NA
Return on Investment (ROI) (PBT/Networth)		(0.20)	NA	NA
Debt Equity Ratio (Total Liability/Networth)		4.20	0.96	0.11
Current Ratio (Current Asset/Current Liability)		10.56	1.63	2.25

LOCAL AGENCY FURTHER INFORMATION

CONTINGENT LIABILITIES

Estimated amount of contracts remaining to be executed on capital accounts (net of advances) and not provided for as or 31-3-2009 are Rs. Nil. (Previous Year Rs.14.086 Millions).

In respect of Bills Purchased is Rs.112.068 Millions (Previous Year Rs. Nil).

The Directors and their relative have executed guarantees in their personal capacity in ' favour of Punjab National Bank for the amount advanced by them for which the company is contingently liable for reimbursement to the directors and their relatives.

FORM 8:

Corporate identity number of the company	U27109MH2006PTC164127
Name of the company	DIVYANSH STEEL PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	183, Small Factory Area, Bagadganj, Nagpur – 440008, Maharashtra, India divyansh_steel@rediffmail.com
This form is for	Modification of charge
Type of charge	Immovable property Book Debts Movable property (not being pledge)
Particular of charge holder	Punjab National Bank MCB, Surya Nagar, Kalmana Road, Nagpur – 440035, Maharashtra, India bo4204@pnb.co.in
Nature of instrument creating charge	1. Hypothecation of movable assets forming part of fixed / block assets 2. Hypothecation of goods and book debts to secure cash credit facility 3. Letter of Continuity 4. Master agreement for Inland Documentary Credit 5. Deed of hypothecation to secure LC on DA basis
Date of instrument Creating the charge	09.08.2010
Amount secured by the charge	Rs.258.600 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: Cash Credit (Hyp): BPLR+1.50% i.e. @12.50% p.a. with monthly rests. Inland Letter of Credit (DA/DP Basis): @3.50% over prevailing BPLR rate p.a. with monthly rests on default. Terms of Repayment: Cash Credit (Hyp): Period: Renewal on annual basis. Inland Letter of Credit (DA / DP Basis): Period: Renewal on annual basis. Margin: Cash Credit (Hyp): 25% - Stocks, 40% - Book Debts Inland Letter of Credit (DA / DP Basis): 15% in the shape of FDR's under bank lien. Extent and Operation of the charge: Existing credit facilities of Rs.168.600 Millions [CC (Hyp) limit of Rs.110.000 Millions, Discounting of Bills (Backed by ILCs) limit of Rs.10.000 Millions, ILC/FLC (DA/DP) limit of Rs.20.000 Millions within overall ceiling of Rs.110.000 Millions and Term Loan (Bldg., P&M) of Rs.58.600 Millions] enhanced to Rs.258.600 Millions [CC (Hyp) limit of Rs.200.000 Millions, ILC/FLC (DA/DP) limit of Rs.50.000 Millions within overall ceiling of Rs.200.000 Millions and existing Term Loan (Bldg., P&M) of Rs.58.600 Millions]. Others: The said facility secured by: 1) First charge by way of hypothecation of entire current assets and Book Debts of the Company. 2) Second charge by way of hypothecation of fixed / block assets of the Company. 3) First charge by way of extension of EM of factory land and building at Kh. No.60 (Old No.146/2/Ka) admeasuring 1.07 hector and Kh. No.62/1(Old No.147/1) admeasuring 2.01 hectors of Mouza Bhowari, P.H. No. 21, Tq. Kamptee, Dist. Nagpur.
Particulars of the property charged	Hypothecation of stock of raw material, stock-in-process, semi-finished and finished goods, goods in transit, stores, spares, tools viz. Iron and Steel products. Hypothecation of entire book debts of the company and Plant and Machinery, fixtures and furniture and other assets. Ext. of EM of Factory Land and Building at Kh. No.60 (Old No.146/2/Ka) admeasuring 1.07 hector and Kh. No.62/1(Old No.147/1) admeasuring 2.01 hectors of Mouza Bhowari, PH No. 21, Tq. Kamptee, Dist. Nagpur.
Particulars of the present modification	Existing credit facilities of Rs.168.600 Millions [CC (Hyp) limit of Rs.110.000 Millions, Discounting of Bills (Backed by ILCs) limit of Rs.10.000 Millions, ILC/FLC (DA/DP) limit of Rs.20.000 Millions within overall ceiling of Rs.110.000 Millions and Term Loan (Bldg., P&M) of Rs.58.600 Millions] enhanced to Rs.258.600 Millions [CC (Hyp) limit of Rs.200.000 Millions, ILC/FLC (DA/DP) limit of Rs.50.000 Millions within overall ceiling of Rs.200.000 Millions and existing Term Loan (Bldg., P&M) of Rs.58.600 Millions].

FIXED ASSETS

· Factory Land

· Factory Shed and Building

· Temporary Office

· Pollution Control Equipments

· Plant and Machinery

· Electrical Installation

· Generator

· Hydra Crane

· Lab Equipments

· Office Equipments

· Weigh Bridge

· Telephone and Mobile Instruments

· Honda Active

· Tools and Dyes

· Furniture and Fixtures

· Vehicles 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.44.99
UK Pound	1	Rs.72.60
Euro	1	Rs.64.01

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	--
--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		26

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.