MIRA INFORM REPORT

Report Date :

18.04.2012

IDENTIFICATION DETAILS

Name :	BHAKARH STEEL PRIVATE LIMITED
Registered Office :	Sagar Estate, 7^th, 2Floor, Clive Ghat Street, Room No. 7 A, Kolkata-700001, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.12.1997
Com. Reg. No.:	21-086217
Capital Investment / Paid-up Capital :	Rs.29.979 Millions
CIN No.: [Company Identification No.]	U27101WB1997PTC086217
TAN No.: [Tax Deduction & Collection Account No.]	CALB07417E
PAN No.: [Permanent Account No.]	AABCB9910C
Legal Form :	Private Limited Liability Company
Line of Business :	Exporter and Importer of Iron and Alloys Steels.
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 240000
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. 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 :	Sagar Estate, 7^th, 2Floor, Clive Ghat Street, Room No. 7 A, Kolkata-700001, West Bengal, India
Tel. No.:	91-33-22622028
Fax No.:	91-33-22102330
E-Mail :	amitkhallen@gmail.com

DIRECTORS

As on 30.09.2011

Name :

Mr. Naresh Kumar Bhakarh

Designation :

Director

Address :

14/17, Mackanzee Lane, Howrah-711101, West Bengal, India

Date of Birth/Age :

07.10.1967

Date of Appointment :

30.12.1997

Din No.:

01316561

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	U27101WB1997PTC086217	BHAKARH STEEL PRIVATE LIMITED	Director	30-12-97	30-12-97	Active	NO
2	U27109WB2005PTC101647	SUPER STAHL INDIA PRIVATE LIMITED	Director	11-02-05	11-02-05	Active	NO
3	U45400WB2008PTC123746	BHAKARH PROPERTIES PRIVATE LIMITED	Director	06-03-08	06-03-08	Active	NO
4	U27310WB2008PTC124447	RISHI ISPAT PRIVATE LIMITED	Director	31-01-09	31-01-09	Active	NO
5	U27106WB1972PTC028336	INDO STEEL FORGE PRIVATE LIMITED	Director	09-05-09	09-05-09	Active	NO

Name :

Mr. Shiv Kumar Bhakarh

Designation :

Director

Address :

14/17, Mackanzee Lane, Howrah-711101, West Bengal, India

Date of Birth/Age :

07.04.1963

Date of Appointment :

30.12.1997

Din No.:

00866037

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	U27101WB1997PTC086217	BHAKARH STEEL PRIVATE LIMITED	Director	30-12-97	30-12-97	Active	NO
2	U27109WB2005PTC101647	SUPER STAHL INDIA PRIVATE LIMITED	Director	11-02-05	11-02-05	Active	NO
3	U45400WB2008PTC123746	BHAKARH PROPERTIES PRIVATE LIMITED	Director	06-03-08	06-03-08	Active	NO
4	U27310WB2008PTC124447	RISHI ISPAT PRIVATE LIMITED	Director	25-03-08	25-03-08	Active	NO
5	U27106WB1972PTC028336	INDO STEEL FORGE PRIVATE LIMITED	Director	15-04-08	15-04-08	Active	NO
6	U74900WB2009PTC133528	NAVRATRA DISTRIBUTORS PRIVATE LIMITED	Director	03-12-10	03-12-10	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Ajay Kumar Mohta	10000
Bhakarh Properties Private Limited, India	1657875
D S Plywood Private Limited, India	40000
Exude Vincom Private Limited, India	50000
Geeta Ispat Private Limited, India	40000
Lana Merchandise Private Limited, India	35000
M Agarwal	11000
MKA Consultants Private Limited, India	10000
Mahesh Kumar Bhakarh	145000
Naresh Kumar Bhakarh	200500
Nova Merchants Private Limited	50000
Ruma Devi Bhakarh	206000
Seema Devi Bhakarh	63000
Shiv Bhakarh	315000
Sonam Bhakarh	35000
Sunita Devi Bhakarh	2000
Trimundra Credit Private Limited, India	12500
VSS Plastic Private Limited, India	30000
Suryanshi Bhakarh	85000
Total	2997875

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	64.22
Directors or relatives of directors	20.04
Other top fifty shareholders	15.74
Total	100.00

BUSINESS DETAILS

Line of Business :

Exporter and Importer of Iron and Alloys Steels.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Iron and Alloy Steel	0203

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Allahabad Bank, Red Cross Place Branch, 7, Red Cross Place, Kolkata-700001, West Bengal, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
HDFC Car Loan [Secured against hypothecation of car]	0.570	0.993
Bank Overdraft (Allahabad Bank) [Secured against hypothecation of book debts and debtors]	18.641	0.000
HDFC Current Account	0.145	0.000
Total	19.356	0.993
Unsecured Loan
Aakarshan Housing Private Limited	1.300	0.000
Bhakarh Properties Private Limited	2.727	0.061
MBD Industry Steel Private Limited	0.000	0.150
Markhana Tradecom Private Limited	2.500	0.000
Mechand Ger Tech Services India Private Limited	1.600	0.000
SMT DDBBJK Trust	2.449	0.000
Total	10.576	0.211

Banking Relations :	--
Auditors :
Name :	Vidisha and Company Chartered Accountants
Address :	419, City Centre, 19, Synagogue Street, Kolkata-700001, West Bengal, India
Tel. No.:	91-33-22311473
E-Mail :	amitkhallen@gmail.com
Pan No.:	AAFFV5412N

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2997875	Equity Shares	Rs.10/- each	Rs.29.979 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		29.979	29.979	29.979
2] Share Application Money		0.396	0.000	0.000
3] Reserves & Surplus		31.985	31.442	31.059
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		62.360	61.421	61.038
LOAN FUNDS
1] Secured Loans		19.356	0.993	0.000
2] Unsecured Loans		10.576	0.211	0.000
TOTAL BORROWING		29.932	1.204	0.000
DEFERRED TAX LIABILITIES		0.000	0.021	0.000
TOTAL		92.292	62.646	61.038
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.267	1.485	0.150
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.784	0.784	0.284
DEFERREX TAX ASSETS		0.025	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6.245	11.062	9.275
	Sundry Debtors	92.107	70.559	39.699
	Cash & Bank Balances	0.156	0.561	8.152
	Other Current Assets	9.909	1.616	3.182
	Loans & Advances	2.157	0.456	1.003
Total Current Assets		110.574	84.254	61.311
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	15.786	23.562	0.145
	Other Current Liabilities	4.198	0.187	0.117
	Provisions	0.404	0.175	0.510
Total Current Liabilities		20.388	23.924	0.772
Net Current Assets		90.186	60.330	60.539
MISCELLANEOUS EXPENSES		0.030	0.047	0.065
TOTAL		92.292	62.646	61.038

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	95.055	70.674	74.490
		Other Income	NA	0.027	0.075
		TOTAL	NA	70.701	74.565
Less	EXPENSES
		Purchase		63.701	67.241
		Import Expenses		4.306	0.733
		General Expenses	NA	0.281	0.356
		Repairs and Maintenance		0.108	0.063
		Transport/ Lorry Hire Charges		0.580	0.790
		Increase / Decrease in Stock		(1.787)	3.186
		Other Expenses		2.739	1.572
		TOTAL	NA	69.928	73.941
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		1.157	0.773	0.624
Less/ Add	DEPRECIATION/ AMORTISATION		0.379	0.174	0.038
	PROFIT / (LOSS) BEFORE TAX		0.778	0.599	0.586
Less	TAX		0.281	0.195	0.186
	PROFIT / (LOSS) AFTER TAX		0.497	0.404	0.400
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.460	1.078	0.678
Add/ Less	DEFERRED TAX LIABILITY		0.046	0.021	0.000
	BALANCE CARRIED TO THE B/S		2.003	1.461	1.078
	Earnings / (Loss) Per Share (Rs.)		0.18	0.13	0.10

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	0.57	0.54
Net Profit Margin (PBT/Sales)	(%)	0.82	0.85	0.79
Return on Total Assets (PBT/Total Assets}	(%)	0.70	0.70	0.95
Return on Investment (ROI) (PBT/Networth)		0.01	0.01	0.01
Debt Equity Ratio (Total Liability/Networth)		0.81	0.41	0.01
Current Ratio (Current Asset/Current Liability)		5.42	3.52	79.42

LOCAL AGENCY FURTHER INFORMATION

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	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
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%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
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	Yes
30) Major Shareholders, if available	Yes

PERFORMANCE OF THE COMPANY:

During the year turnover of the company has been increased considerably. The directors are hopeful to achieve better results in the next accounting year.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Creation of charge
Corporate identity number of the company	U27101WB1997PTC086217
Name of the company	BHAKARH STEEL PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Sagar Estate, 7^th, 2Floor, Clive Ghat Street, Room No. 7 A, Kolkata-700001, West Bengal, India
Type of charge	Book Debts Movable Property [not being pledge] Floating Charge Others
Particular of charge holder	Allahabad Bank, Red Cross Place Branch, 7, Red Cross Place, Kolkata-700001, West Bengal, India
Email	br.redcrossplace@allahabadbank.in
Nature of description of the instrument creating or modifying the charge	General Letter of Hypothecation
Date of instrument Creating the charge	14.05.2010
Amount secured by the charge	Rs.30.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest and other charges will be paid as per terms and conditions of Sanction Letter of bank. Presently applicable ROI for CC - 2.00% above BPLR i.e. 14.00% p.a. w.m.r (Floating). Terms of Repayment The working capital (Rs. 15.000 Millions by way of Cash Credit and Rs. 15.000 Millions by way of Import LC on DA/DP basis having usance period upto 90 days) shall be repaid on demand. Margin The borrower shall maintain appropriate margin as stipulated in the sanction terms, however the same is subject to change from time to time. Presently the applicable margin is CC:- 25% on Stock and Book-debts (Upto 90 days) Import LC:- 25% by way of Cash Margin/ FDR Extent and Operation of the charge The security created under said hypothecation shall operate as continuing security and by way of first charge. The charged assets/ property be kept at the Company risk and expense in good condition and fully insured against loss or damage by fire, lighting or explosion or theft and also against loss or damage by riot and civil commotion etc. as may be required by the Bank in the joint names of the Banks and the Company. Others The Company hereby declares that all the charged property now existing are absolute property of and at the sole disposal of the Company and free from any prior charge or encumbrance and undertakes that all future property shall likewise be the unencumbered and absolute and disposable property of the Company. Other terms and conditions are as per terms and conditions of above referred hypothecation agreement and Sanction Letter of the banks.
Short particulars of the property charged	The Company hereby hypothecates and charges by way of 1st charge over a) All stocks of RM, WIP, FG etc. such as Iron and Steel etc. and packing materials, consumable stores and spares etc. whatever and wheresoever situated and /or in transit b) all book-debts and other receivables c) movable/immovable P and M, motor lorries, cars etc now being and lying at borrower premises or else where d)Other Current and Fixed assets both present and future

FIXED ASSETS:

· Plant and Machinery

· Office Equipments

· Electric Fans

· Refrigerator

· Air Conditioner

· Cutting Machine

· Furniture and Fixtures

· Mobile Phones

· Motor Car

· Computer

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.51.63
UK Pound	1	Rs.81.94
Euro	1	Rs.67.65

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
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	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		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.