MIRA INFORM REPORT

Report Date :

05.11.2011

IDENTIFICATION DETAILS

Name :	MAGNUM MI STEEL PRIVATE LIMITED (w.e.f. 12.03.2011)
Formerly Known As :	STELCO INDIA PRIVATE LIMITED MAGNUM GLOBAL STEEL PRIVATE LIMITED
Registered Office :	S-397, Greater Kailash – II, New Delhi – 110048
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	18.10.1995
Com. Reg. No.:	55-073295
Capital Investment / Paid-up Capital :	Rs.24.527 Millions
CIN No.: [Company Identification No.]	U74899DL1995PTC073295
TAN No.: [Tax Deduction & Collection Account No.]	DELS17381A
PAN No.: [Permanent Account No.]	AACCS9090F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of ERW precision steel tubes cew steel tubes tubular and sheet metal components and many other auto components.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

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 but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company has no significant business at present Profitability of the company is under pressure. 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	S-397, Greater Kailash – II, New Delhi – 110048, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	accounts-magnum@airtelmail.in relans_81@yahoo.com akg@akhindia.in okoshi@misteel-india.com rohanbatra@gmail.com
Factory 1:	38.5 KM. Stone, Delhi - Jaipur Highway, Khandsa, Gurgaon, Haryana, India
Tel No.:	91-124-4031777 (3 Lines)
Fax No.:	91-124-4031778
Email :	magnumtubes@gmail.com info@magnum-misteel.com
Factory 2:	Plot No 29-32, Sector-7 HSIIDC, Industrial Growth Centre, Bawal, Rewari, Haryana - 123501, India
Tel No.:	91-1284-2645558/ 59
Email :	info@magnum-misteel.com

DIRECTORS

(AS ON 26.07.2011)

Name :

Mr. Yogesh Batra

Designation :

Managing Director

Address :

S-397, Greater Kailash, Part II, New Delhi – 110048, India

Date of Birth/Age :

10.08.1954

Date of Appointment :

18.10.1995

DIN No.:

00768720

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL1995PTC073295	MAGNUM MI STEEL PRIVATE LIMITED	Managing director	01-01-11	18-10-95	Active	NO
2	U74899DL2000PTC108770	MAGNUM STRIPS AND TUBES PRIVATE LIMITED	Whole-time director	07-12-00	07-12-00	Active	NO
3	U67120DL2001PTC110707	KDB INVESTMENTS PRIVATE LIMITED	Director	04-05-01	04-05-01	Active	NO
4	U72900DL2001PTC113396	INSA SOFT-NET PRIVATE LIMITED	Director	08-11-07	08-11-07	Active	NO
5	U29130DL2011PTC222974	MAGNUM SADOSHIMA ISPAT PRIVATE LIMITED	Director	29-07-11	29-07-11	Active	NO
6	U67120DL2011PTC223467	YP INVESTMENTS PRIVATE LIMITED	Director	09-08-11	09-08-11	Active	NO

Name :

Mrs. Puja Batra

Designation :

Director

Address :

S-397, Greater Kailash, Part II, New Delhi – 110048, India

Date of Birth/Age :

11.07.1959

Date of Appointment :

13.11.2000

DIN No.:

00371536

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U27202DL1987PTC027133	SPECTEC METAL PROCESSERS PRIVATE LIMITED	Director	26-02-87	26-02-87	Active	NO
2	U74899DL1995PTC073295	MAGNUM MI STEEL PRIVATE LIMITED	Director	13-11-00	13-11-00	Active	NO
3	U74899DL2000PTC108770	MAGNUM STRIPS AND TUBES PRIVATE LIMITED	Whole-time director	07-12-00	07-12-00	Active	NO
4	U72900DL2001PTC113396	INSA SOFT-NET PRIVATE LIMITED	Director	01-09-05	01-09-05	Active	NO
5	U67120DL2011PTC223467	YP INVESTMENTS PRIVATE LIMITED	Director	09-08-11	09-08-11	Active	N

Name :

Mr. Anuj Batra

Designation :

Director

Address :

S-397, Greater Kailash, Part II, New Delhi – 110048, India

Date of Birth/Age :

22.11.1984

Date of Appointment :

15.11.2008

DIN No.:

01358208

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL1995PTC073295	MAGNUM MI STEEL PRIVATE LIMITED	Director	15-11-08	15-11-08	Active	NO
2	U29130DL2011PTC222974	MAGNUM SADOSHIMA ISPAT PRIVATE LIMITED	Director	29-07-11	29-07-11	Active	NO
3	U67120DL2011PTC223467	YP INVESTMENTS PRIVATE LIMITED	Director	09-08-11	09-08-11	Active	NO

Name :

Mr. Rohan Batra

Designation :

Director

Address :

S-397, Greater Kailash, Part II, New Delhi – 110048, India

Date of Birth/Age :

03.03.1983

Date of Appointment :

17.01.2011

DIN No.:

03376932

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL1995PTC073295	MAGNUM MI STEEL PRIVATE LIMITED	Additional director	17-01-11	17-01-11	Active	NO
2	U29130DL2011PTC222974	MAGNUM SADOSHIMA ISPAT PRIVATE LIMITED	Director	29-07-11	29-07-11	Active	NO
3	U67120DL2011PTC223467	YP INVESTMENTS PRIVATE LIMITED	Director	09-08-11	09-08-11	Active	NO

Name :

Mr. Masayuki Okoshi

Designation :

Additional Director

Address :

10-A, Kasturba Gandhi Marg, New Delhi – 110001, India

Date of Birth/Age :

13.08.1964

Date of Appointment :

08.02.2011

DIN No.:

01462106

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U27141DL2006FTC148481	MARUBENI-ITOCHU STEEL INDIA PRIVATE LIMITED	Managing director	28-05-07	01-04-07	-	Active	NO
2	U34300DL2007PTC158139	CAPARO MI STEEL PROCESSING PRIVATE LIMITED	Alternate director	18-06-07	18-06-07	27-11-07	Active	NO
3	U74899DL1995PTC073295	MAGNUM MI STEEL PRIVATE LIMITED	Additional director	08-02-11	08-02-11	-	Active	NO
4	U74900MH2011PTC222152	JSW MI STEEL SERVICE CENTER PRIVATE LIMITED	Director	19-09-11	19-09-11	-	Active	NO

Name :

Mr. Hiroyoshi Kiyohara

Designation :

Director

Address :

10-A, Kasturba Gandhi Marg, New Delhi – 110001, India

Date of Birth/Age :

16.12.1951

Date of Appointment :

26.07.2011

DIN No.:

03610868

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 26.07.2011)

Names of Shareholders	No. of Shares
Yogesh Batra	2687371
Puja Batra	1153636
Rohan Batra	382863
H R Batra and Sons HUF	344917
Yogesh Batra and Sons HUF	26164
Anuj Batra	382864
Marubeni-Itochu Steel Pte Limited, Singapore	1914545
Marubeni-Itochu Steel Inc., Japan	765818
Total	7658178

(AS ON 30.09.2011)

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	35.00
Directors or relatives of directors	65.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of ERW precision steel tubes cew steel tubes tubular and sheet metal components and many other auto components.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	· State Bank of India Commercial Branch 6th Floor, Palm Court ,Mehrauli , Gurgaon Road, Gurgaon - 122001, Haryana, India

Banking Relations :	--
Auditors :
Name :	Serva Associates Chartered Accountants
Address :	901, Vikram Tower, 16 Rajindra Place, New Delhi – 110008, India
PAN No.:	AABFS5901R

CAPITAL STRUCTURE

(AS ON 26.07.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Share	Rs.10/- each	Rs.80.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7658178	Equity Share	Rs.10/- each	Rs.76.582 Millions

(AS ON 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Share	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2452680	Equity Share	Rs.10/- each	Rs.24.527 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		24.527	8.527	8.527
2] Share Application Money		6.736	3.536	0.636
3] Reserves & Surplus		18.255	18.413	18.717
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		49.518	30.476	27.880
LOAN FUNDS
1] Secured Loans		31.781	0.000	0.000
2] Unsecured Loans		9.527	3.800	3.800
TOTAL BORROWING		41.308	3.800	3.800
DEFERRED TAX LIABILITIES		0.096	0.097	0.000
TOTAL		90.922	34.373	31.680
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		82.458	26.675	24.210
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		5.850	5.850	5.850
DEFERREX TAX ASSETS		0.000	0.000	0.207
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	0.000	0.425	0.718
	Cash & Bank Balances	0.429	0.823	0.836
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	6.330	1.398	2.110
Total Current Assets		6.759	2.646	3.664
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor
	Other Current Liabilities	4.251	0.798	2.251
	Provisions
Total Current Liabilities		4.251	0.798	2.251
Net Current Assets		2.508	1.848	1.413
MISCELLANEOUS EXPENSES		0.106	0.000	0.000
TOTAL		90.922	34.373	31.680

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	0.092	0.000	0.000
		Commission Received	0.743	0.501	0.800
		Other Income	0.000	0.020	0.000
		TOTAL	0.835	0.521	0.800
Less	EXPENSES
		Purchases	0.081	0.000	0.000
		Direct Expenses	0.013	0.000	0.000
		Other Expenses	0.673	0.319	0.752
		TOTAL	0.767	0.319	0.752
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		0.068	0.202	0.048
Less/ Add	DEPRECIATION/ AMORTISATION		0.145	0.180	0.224
	PROFIT BEFORE TAX		(0.077)	0.022	(0.176)
Less	TAX		0.000	0.326	0.000
	PROFIT AFTER TAX		(0.077)	(0.304)	(0.176)
	Earnings Per Share (Rs.)		(0.03)	--	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(9.22)	(58.35)	(22.00)
Net Profit Margin (PBT/Sales)	(%)	(83.70)	0.00	0.00
Return on Total Assets (PBT/Total Assets}	(%)	(0.09)	(0.08)	(0.63)
Return on Investment (ROI) (PBT/Networth)		0.00	0.00	(0.01)
Debt Equity Ratio (Total Liability/Networth)		0.92	0.15	0.22
Current Ratio (Current Asset/Current Liability)		1.59	3.32	1.63

LOCAL AGENCY FURTHER INFORMATION

NOTE:

The Registered Office of the company has been shifted from Shop No.1, 1^st Floor, DDA Community Center, PKT D Alaknanda, New Delhi – 110019, India, to the present address w.e.f. 01.01.2007.

FORM 8:

Corporate identity number of the company	U74899DL1995PTC073295
Name of the company	MAGNUM MI STEEL PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	S-397, Greater Kailash-II, New Delhi – 110048, India accounts-magnum@airtelmail.in
This form is for	Modification of charge
Charge Identification (ID) Number of the charge to be modified	10168818
Type of charge	Book Debts Movable Property Floating Charge Others: Current and Fixed Assets
Particular of charge holder	· State Bank of India Commercial Branch 6th Floor, Palm Court ,Mehrauli , Gurgaon Road, Gurgaon - 122001, Haryana, India sanjuprofessional@gmail.com
Nature of instrument creating charge	Copy of recitals
Date of instrument Creating the charge	23.08.2011
Amount secured by the charge	Rs.549.600 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: CC: SBAR + 4.00% p.a. @ 14.00% p.a., T/L-I- SBAR + 5.25% p.a. @ 15.25 %p.a., T/L-II: SBAR + 6.25%p.a @ 16.25 %p.a., T/L -III:- SBAR + 4.00% @ 14.00%p.a.on monthly rest as per specified by the bank from time to time. Terms of Repayment: Working Capital :- on demand Term Loan (Existing and Fresh) Margin: Raw-materials ,Stock in process, finished goods :- 25% Spares :- 50% Book-debts / Receivables :-25% ( cover period 90 days ) LC and BG :-15% Extent and Operation of the charge: 100% first exclusive charge Others: Interests will be charge on monthly basis and interests on term loans will be charged as and when due.
Particulars of the property charged	Working Capital :- First hypothecation charge over company's all current assets ( present and future ) including/inter alia (I) Stocks of raw-materials, stores, spares, stocks in process, consumables finished goods etc. lying their factory/ shop/ godowns, elsewhere and including goods in transit both present and future . (II) Company's book-debts / receivables (present and future). Extension of charge on entire fixed assets of the company both present and future. Term Loan :- First charge on entire fixed assets of the company both present and future. Extension of charge on entire current assets of the company both present and future.
Particulars of the present modification	Total credit facilities now modified to Rs.549.600 Millions as under :- C/C ( stocks and Book-debts ) Rs.210.000 Millions Term Loan- I Rs.20.100 Millions Term Loan-II Rs.14.000 Millions Term Loan-III Rs.100.000 Millions LC Rs.200.000 Millions One Time LC Rs.(40.000) Millions BG Rs.2.500 Millions Forward Contracts Rs.3.000 Millions Total Rs.549.600 Millions

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.49.37
UK Pound	1	Rs.78.50
Euro	1	Rs.67.59

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.