MIRA INFORM REPORT

Report Date :

29.06.2011

IDENTIFICATION DETAILS

Name :	T.K. STEEL ROLLING MILLS PRIVATE LIMITED (w.e.f 28.03.2008)
Formerly Known As :	T K STEEL ROLLING MILLS LIMITED
Registered Office :	D-11, Phase V, Focal Point, Dhandari Kalan, Ludhiana-141010, Punjab
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	23.06.1972
Com. Reg. No.:	16-4608
Capital Investment / Paid-up Capital :	Rs.2.020 Millions
CIN No.: [Company Identification No.]	U27104PB1972PTC004608
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporters of Hex Bar, Round Bar, Bright Bar, Wire Rod, Alloy Steel, Carbon Steels.
No. of Employees :	Not Divulged

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 110000
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 DECLINED BY

Name :	Mr. Lokesh Jain
Designation :	Director
Date :	27.06.2011

LOCATIONS

Registered Office/Factory :	D-11, Phase V, Focal Point, Dhandari Kalan, Ludhiana-141010, Punjab, India
Tel. No.:	91-161-2670218/2671990
Fax No.:	91-161-5013171
E-Mail :	rkjain35@gmail.com

DIRECTORS

As on 30.09.2010

Name :	Mr. Dharam Paul Jain
Designation :	Director
Address :	B – XX – 2882, Gurdev Nagar, Ludhiana, Punjab, India
Date of Birth/Age :	06.09.1950
Date of Appointment :	16.06.1979
Name :	Ms. Suman Jain
Designation :	Director
Address :	B – XX – 2882, Gurdev Nagar, Ludhiana, Punjab, India
Date of Birth/Age :	24.05.1955
Date of Appointment :	11.10.1994
Name :	Mr. Lokesh Jain
Designation :	Director
Address :	B – XX – 2882, Gurdev Nagar, Ludhiana, Punjab, India
Date of Birth/Age :	26.08.1976
Date of Appointment :	01.05.2003
Name :	Mr. Dewaker Jain
Designation :	Director
Address :	B – XX – 2882, Gurdev Nagar, Ludhiana, Punjab, India
Date of Birth/Age :	22.06.1979
Date of Appointment :	01.05.2003

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Raj Kumar Jain	100
Muni Lal Jain	100
Dharam Paul Jain	5300
Suman Jain	4500
Lokesh Jain	5070
Dewaker Jain	5070
Rupa Gupta	10
Urmila Gupta	10
Surinder Singla	20
Suman Singla	20
Total	20200

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	99.21
Other top fifty shareholders	0.79
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Hex Bar, Round Bar, Bright Bar, Wire Rod, Alloy Steel, Carbon Steels.

Products :

Product Description	Item Code No. (ITC Code)
Non Alloy Steel Bars, Rounds, Hexagon (Hot Rolled)	7214.90
Alloy Steel Bars, Rounds, Hexagon (Hot Rolled)	7228.30

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity
Rounds/Hex/Flat	M.T.	23100 per annum	15000 per annum

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

• Punjab National Bank, Miller Ganj, Ludhiana-141003, Punjab, India
• HDFC Bank Limited

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Working Capital facilities from Punjab National Bank, Miller Ganj, Ludhiana*	26.733	12.767
HDFC Bank Limited (Car Loans)**	1.434	0.781
Total	28.167	13.548
Unsecured Loan
Fro Directors	4.343	8.648
Fro Others	22.826	9.251
Total	27.169	17.899

Note:

** Amount due for repayment out of Car Loans from HDFC Bank Limited (Equated Monthly Installments) with in one year is Rs.0.820 Millions

Banking Relations :	--
Auditors :
Name :	Jain and Anil Sood Chartered Accountants
Address :	S.C.O. 12, Basement, Feroze Gandhi Market, Ludhiana-141001, Punjab, India
Tel. No.:	91-161-2773027/ 3919027

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
32500	Equity Shares	Rs.100/- each	Rs.3.250 Millions
17500	Preferences Shares	Rs.100/- each	Rs.1.750 Millions
	Total		Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20200	Equity Shares	Rs.100/- each	Rs.2.020 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		2.020	2.020	2.020
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		27.107	22.315	18.560
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		29.127	24.335	20.580
LOAN FUNDS
1] Secured Loans		28.167	13.548	13.870
2] Unsecured Loans		27.169	17.899	30.490
TOTAL BORROWING		55.336	31.447	44.360
DEFERRED TAX LIABILITIES		0.576	0.711	0.754
TOTAL		85.039	56.493	65.694
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.952	10.071	11.109
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	48.090	29.059	30.925
	Sundry Debtors	31.560	25.419	28.394
	Cash & Bank Balances	2.513	1.452	2.182
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	8.076	5.489	3.831
Total Current Assets		90.239	61.419	65.332
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.373	7.386
	Other Current Liabilities	11.257	7.306	10.453
	Provisions	0.522	0.305	0.294
Total Current Liabilities		16.152	14.997	10.747
Net Current Assets		74.087	46.422	54.585
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		85.039	56.493	65.694

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income			395.390
		Other Income			7.774
		TOTAL (A)	370.146	423.000	403.164
Less	EXPENSES
		Cost of Raw Material Consumed			345.820
		Manufacturing Expenses			21.099
		Personnel Expenses			2.948
		Administrative Expenses	359.430	413.922	4.136
		Selling Expenses			1.777
		Loss on sale of fixed assets			0.026
		Increase/(Decrease) in Finished Goods			10.202
		TOTAL (B)	359.430	413.922	386.008
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	NA	17.156
Less	FINANCIAL EXPENSES (D)		NA	NA	4.796
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10.716	9.078	12.360
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.634	3.484	2.709
	PROFIT BEFORE TAX (E-F) (G)		7.082	5.594	9.651
Less	TAX (H)		2.271	1.827	3.142
	PROFIT AFTER TAX (G-H) (I)		4.811	3.767	6.509
Less	APPROPRIATIONS
		Provision for tax for earlier years	0.018	0.013	NA
	BALANCE CARRIED TO THE B/S		4.793	3.754	NA
	Earnings Per Share (Rs.)		238.17	168.50	322.23

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.30	0.89	1.61
Net Profit Margin (PBT/Sales)	(%)	NA	NA	2.44
Return on Total Assets (PBT/Total Assets}	(%)	7.00	4.87	12.63
Return on Investment (ROI) (PBT/Networth)		0.24	0.23	0.47
Debt Equity Ratio (Total Liability/Networth)		2.45	1.91	2.68
Current Ratio (Current Asset/Current Liability)		5.59	4.10	6.08

LOCAL AGENCY FURTHER INFORMATION

Note: The registered office of the company has been shifted from G T Road, Miller Ganj, Ludhiana-141003, Punjab, India to the present address w.e.f. 10.03.2011

OPERATIONS:

During the year under consideration the company has performed well. The company has produced 15985.870 M.T of Rounds/Hex/Flat and 345.820 M.T. of scrap during the year 2009-10 as against 12842.015 M.T. of Rounds/Hex/Flat and 351.485 M.T. of scrap during the year 2008-09. The company has earned net profit before tax of Rs.7.082 millions during the financial year 2009-10 as against Rs.5.594 millions during the financial year 2008-09. Also the profit after tax for the year under consideration is Rs.4.811 millions (Previous year Rs.3.767 millions). The company expects to achieve higher turnover and profits in the future.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	90176710
Corporate identity number of the company	U27104PB1972PTC004608
Name of the company	T K STEEL ROLLING MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	D-11, Phase V, Focal Point, Dhandari Kalan, Ludhiana-141010, Punjab, India
Type of charge	Book Debts Movable Property Immovable Property
Particular of charge holder	Punjab National Bank, Miller Ganj, Ludhiana-141003, Punjab, India
Email	bo0298@pnb.co.in
Nature of description of the instrument creating or modifying the charge	1. Hypothecation of goods and book debts to secure cash credit facility. 2. Hypothecation of moveable assets forming part of fixed/ block assets. 3. Letter of continuity. 4. Deed of Hypothecation to Secure FLC on DA/DP basis. 5. General Counter Indemnity.
Date of instrument Creating the charge	02.03.2011
Amount secured by the charge	Rs.86.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC (Hypo) and CC(BD) @ Base Rate + 4.50% i.e. 14.00%, Bill Discounting @ BR + 0.50% plus applicable interest tax (if any) per annum with monthly rests. Terms of Repayment On Demand Margin Stocks - 20% Book Debts - 25% Extent and Operation of the charge 100% Others Fund based limits enhanced from Rs. 49.000 Millions to Rs. 85.000 Millions and Non Fund based limits amounting to Rs. 6.000 Millions with total commitment (ceiling) of Rs. 86.000 Millions
Short particulars of the property charged	I) Hypothecation of stocks. II) Hypothecation of entire Book Debts. III) 1st charge on Plant and Machinery having WDV of Rs. 6.996 Millions as per ABS 31.03.2010 and on all current assets, present as well as future. IV) Registered title deed no. 418 dated 29.04.1974 covering 1 premises of 9200 sq. yds and super structure thereon situated at D-9,10,11, Phase - V, Focal Point, Ludhiana.
Date of latest modification prior to the present modification	14.01.2010
Particulars of the present modification	Fund based limits enhanced from Rs. 49.000 Millions to Rs. 85.000 Millions and Non Fund based limits amounting to Rs. 6.000 Millions with total commitment (ceiling) of Rs. 86.000 Millions

FIXED ASSETS:

· Building Shed

· Building Office

· Plant and Machinery

· Rolling Mill Rolls

· Weighing Machine

· Air Pollution Control Device

· Furnace

· Automatic Electric Load

· Monitoring System

· Generator Set

· Furniture and Fixtures

· Trucks/ Tempos

· Computer

· Vehicle

· Land and Godown

· Office Equipment

· Water Cooler

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.45.05
UK Pound	1	Rs.71.92
Euro	1	Rs.64.34

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.