MIRA INFORM REPORT

Report Date :

06.04.2012

IDENTIFICATION DETAILS

Name :	S. R. D. STEELS PRIVATE LIMITED
Registered Office :	Z-115/1, Loha Mandi, Naraina, New Delhi – 110028
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	17.11.1995
Com. Reg. No.:	073937
Capital Investment / Paid-up Capital :	Rs. 5.215 Millions
CIN No.: [Company Identification No.]	U74899DL1995PTC073937
Legal Form :	Private Limited Liability Company.
Line of Business :	Traders of Iron and Steel
No. of Employees :	Not Available

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 74996
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears continuous dip in turnover and profitability of the company. 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 :	Z-115/1, Loha Mandi, Naraina, New Delhi – 110028, India
Tel. No.:	91-11-25706308
E-Mail :	shivkumargargadv@yahoo.com
Branch office :	No. 7, Block D, Sona Ind. Area, G T Karnal Road, Delhi – 110033, India
Factory + Office :	1-B, Industrial Area, Govindpura, Bhopal – 462023, Madhya Pradesh, India
Tel. No. :	91-755-4262267

DIRECTORS

As on 30.09.2011

Name :	Mr. Rajeev Gupta
Designation :	Director
Date of Birth/Age :	10.02.1973
Date of Appointment :	17.11.1995
Name :	Mr. Deepak Gupta
Designation :	Director
Date of Birth/Age :	13.06.1975
Date of Appointment :	07.12.1998

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Ambika Industries	200000
Ambika Cotton Factory	90000
Anita Aggarwal	100
Anju Gupta	100
Balkishan	100
Brij Mohan	100
Bimla Devi	100
Deepak Gupta	100
Deepika Gupta	100
Gauri Shankar Aggarwal	100
Gauri Shankar Aggarwal & Sons HUF	200
Suresh Goyal	92200
Jagdamba Enterprises	68400
Jaya Tirthani	200
Mukti Rani	5500
Murarilal Aggarwal	200
Nisha Gupta	100
Neelam Tirthani	200
Neha Bansal	200
Priti Gupta	200
Rajeev Gupta	9000
Ram Niwas Gupta	100
Raj Kumar Gupta	7000
Raman Kumar	7000
Ravindar Kumar	100
Rajni Kant & Bros., Mathura	200
Sanjeev Gupta	3100
Sangeeta Garg	100
Sumer Chand Aggarwal	200
Sanjeev Gupta HUF	200
Suman	100
Uma Devi Garg	100
Umawati	100
Navyug Bullion Company Private Limited, New Delhi	4000
VS Injection Technology Private Limited, New Delhi	3500
CP Iron Furniture Private Limited, New Delhi	4000
Ravinder Builocon Private Limited, New Delhi	3500
Basic Builders Private Limited, New Delhi	3000
Sam Portfolio (P) Limited, New Delhi	3000
KMC Portfolio (P) Limited, New Delhi	2000
Moderate Credit Corporation Limited, Delhi	4000
Ravnet Solutions (P) Limited, Delhi	3000
Ganpati Fincap Service (P) Limited, Delhi	6000
Total	521500

As on 30.09.2011

Category	Percentage
Bodies corporate	6.90
Directors or relatives of Directors	24.26
Others	68.84
Total	100.00

BUSINESS DETAILS

Line of Business :

Traders of Iron and Steel

GENERAL INFORMATION

Suppliers :

· Ram Niwas and Sons

· Essar Steel Limited, Bhopal

· Shree Ram Steels

· Rajendra Steels

Customers :

· DCM Shriram Consolidated Limited

· Noor Tech and Fabricators Private Limited

No. of Employees :

Not Available

Bankers :

· Jammu and Kashmir Bank, Naraina, New Delhi, India

· Kotak Mahindra Bank, 36-38A, Nariman Bhavan, 227,D, Nariman Point, Mumbai – 400021, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Kotak Mahindra Bank	40.025	37.028
Total	40.025	37.028
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Agrawal Udyog Private Limited	0.554	0.513
Anita Aggarwal	0.240	0.222
Anju Gupta	0.270	0.244
Bal Kishan	1.206	1.089
Bimla Devi	0.506	0.456
Brij Mohan	1.132	1.022
Jaya Tirthani	0.479	0.432
Murali Lal Aggarwal	0.085	0.913
Neha Bansal	0.509	0.460
Nisha Gupta	0.326	0.294
Om Prakash Mahesh Kumar	1.821	1.817
Rakesh Garg	2.494	2.107
Ram Babu Aggarwal (Prop. of Rajni Kant & Bros.)	24.583	23.040
Ravinder Kumar	0.905	0.817
Sangeeta Garg	0.506	0.456
Sanjeev Gupta (HUF)	1.452	1.311
Shama Jain	0.561	0.506
Suman	0.029	0.026
Suraj Bhan Ramesh Chander	1.255	1.132
Umawati	0.569	0.513
Total	39.481	37.370

Banking Relations :	--
Auditors :
Name :	Suresh K. Mittal and Associates Chartered Accountant
Address :	606, Krishna Apra Business Square, D-4,5,6 Netaji Subhash Place, New Delhi – 110034, India
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs. 10/- each	Rs. 7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
521500	Equity Shares	Rs. 10/- each	Rs. 5.215 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		5.215	5.215	5.215
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		13.534	13.127	12.491
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		18.749	18.342	17.706
LOAN FUNDS
1] Secured Loans		40.025	37.028	39.782
2] Unsecured Loans		39.483	37.370	37.092
TOTAL BORROWING		79.508	74.398	76.874
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		98.257	92.740	94.580
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.286	11.130	11.407
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.123	0.124	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	32.886	26.320	18.637
	Sundry Debtors	30.897	49.918	63.451
	Cash & Bank Balances	4.149	2.224	9.511
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	43.284	34.024	30.215
Total Current Assets		111.216	112.486	121.814
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	16.424	20.130	31.664
	Other Current Liabilities	7.298	9.969	5.473
	Provisions	0.646	0.901	1.504
Total Current Liabilities		24.368	31.000	38.641
Net Current Assets		86.848	81.486	83.173
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		98.257	92.740	94.580

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Turnover	68.446	177.929	361.299
	EXPENSES
		TOTAL	67.760	177.006	359.683
	PROFIT BEFORE TAX		0.686	0.923	1.616
Less	TAX		0.276	0.287	0.568
	PROFIT AFTER TAX		0.410	0.636	1.048
	Earnings Per Share (Rs.)		0.78	1.22	2.01

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	1.00	0.51	0.44
Return on Total Assets (PBT/Total Assets}	(%)	0.55	0.74	1.21
Return on Investment (ROI) (PBT/Networth)		0.03	0.05	0.09
Debt Equity Ratio (Total Liability/Networth)		5.54	5.74	6.52
Current Ratio (Current Asset/Current Liability)		4.56	3.62	3.15

LOCAL AGENCY FURTHER INFORMATION

Form 8

Corporate identity number of the company

U74899DL1995PTC073937

Name of the company

S. R. D. STEELS PRIVATE LIMITED

Address of the registered office or of the principal place of business in India of the company

Z-115/1, Loha Mandi, Naraina, New Delhi – 110028, India

This form is for

Modification of charge

Type of charge

Book debts

Movable property

Particular of charge holder

Name :	Kotak Mahindra Bank Limited
Address :	36-38A, Nariman Bhavan, 227,D, Nariman Point, Mumbai – 400021, Maharashtra, India
Email :	john.fernandes@kotak.com

Nature of instrument creating charge

Supplementary Deed of Hypothecation.

Date of instrument Creating the charge

06.05.2011

Amount secured by the charge

Rs. 70.000 Millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of Interest

CC - Floating over the tenure of the facility. The Rate of Interest has been arrived at on the basis of the Bank's Base Rate.

Terms of Repayment

BG I/II - Maximum 12 months including claim period if any.

Margin

LC I/II - Minimum cash margin of 15.00% shall be provided upfront in the form of Fixed Deposit.

Lien shall be marked on the Fixed Deposit in favour of the Bank.

BG I/II - Minimum cash margin of 15.00% shall be provided upfront in the form of Fixed Deposit.

(100% cash margin for guarantees covering disputed liabilities)

Lien shall be marked on the FD till such time as the BG is cancelled & returned to the Bank.

Extent and Operation of the charge

First & exclusive charge by way of Hypothecation of Current assets & Movable fixed assets present & future of the Borrower, in favour of Kotak Mahindra bank as security for repayment of financial facilities granted by the Bank to the

Borrower.

Others

Nil

Particulars of the property charged

The whole of Borrower's Current assets & Movable fixed assets both present & future as described in Schedule to the Supplementary Deed of Hypothecation.

Date of instrument modifying the charge

29.04.2011

Particulars of the present modification

Bank had granted CC facilities of Rs.40.000 Millions to the Borrower which was secured by way of Hypothecation on Current assets & Moveable fixed assets of the Company on 15/01/2009. Said Charge was modified on 25/04/2011 & 29/04/2011. Now bank has granted additional facility of Rs.10.000 Millions to the company & the said charge is modified and extended to the increased total facilities of Rs.70.000 Millions. (CC of Rs.45.000 Millions + WCDL I/II (Adhoc) of Rs.20.000 Millions + LC of Rs.5.000 Millions totaling of Rs.70.000 Millions)

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter's background	----------------------
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	----------------------
22) Litigations that the firm / promoter involved in	----------------------
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	----------------------
26) Buyer visit details	----------------------
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	----------------------
30) Major Shareholders, if available	Yes

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.51.04
UK Pound	1	Rs.81.08
Euro	1	Rs.67.39

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	5
--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		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.