MIRA INFORM REPORT

Report Date :

09.08.2012

IDENTIFICATION DETAILS

Name :	VIRAT SPECIAL STEELS PRIVATE LIMITED
Registered Office :	Plot No.610, Pace City II, Sector 37 II, Gurgaon – 122001, Haryana,
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.06.2007
Com. Reg. No.:	05-036933
Capital Investment / Paid-up Capital :	Rs.13.710 Millions
CIN No.: [Company Identification No.]	U27310HR2007PTC036933
IEC No.:	3007017084
PAN No.: [Permanent Account No.]	AACCV5243P
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Alloy and Non Alloy Steel and Others
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 66000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profitability of the company appears to be low. However, trade relations are reported to be 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	Plot No.610, Pace City II, Sector 37 II, Gurgaon – 122001, Haryana,, India
Tel. No.:	91-124-4240036
Mobile No.:	91-9814021775 (Mr. Virat Dhingra)
Fax No.:	Not Available
E-Mail :	info@viratsteels.com virat.dh@gmail.com ncr@viratsteel.com
Website :	www.viratsteels.com
Administrative Office / Factory:	C – 146, Focal Point, Phase – V, Near Dry Port, Ludhiana – 141010, Punjab, India
Tel. No.:	91-161-5025667/ 668
Fax No.:	91-161-2672007
E-Mail :	md@viratsteels.com virat.dh@gmail.com
Area :	18000 sq. ft.
Location :	Owned
Regional Office :	S.No.9, Opposite Sunny Petrol Pump, Near Bedi Properties, NH – 8, Narsingpur, Gurgaon – 122 001, Haryana, India
Tel. No.:	91-161-5025667/ 668
Mobile No.:	91-9814021775 (Mr. Virat Dhingra)
Fax No.:	91-161-2672007
E-Mail :	info@viratsteels.com virat.dh@gmail.com
Website :	www.viratsteels.com
Area :	25000 sq ft
Location :	Owned
Ware House :	Located at: · Ludhiana · Gurgaon · Pune · Chennai

DIRECTORS

As on 30.09.2011

Name :	Mr. Virat Dhingra
Designation :	Director
Address :	SCF – 18, Kitchlu Nagar Market, Ludhiana – 141 002, Punjab, India
Date of Birth/Age :	14.05.1972
Qualification :	LLB
Date of Appointment :	12.06.2007
DIN No.:	01448209
Name :	Ms. Indu Dhingra
Designation :	Director
Address :	SCF – 18, Kitchlu Nagar Market, Ludhiana – 141 002, Punjab, India
Date of Birth/Age :	22.10.1975
Qualification :	BA
Date of Appointment :	12.06.2007
DIN No.:	01448192

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Virat Dhingra	1306000
Indu Dhingra	65000
Total	1371000

(As on 30.09.2011)

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of directors	51.46
Other top fifty shareholders	48.54
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of Alloy and Non Alloy Steel and Others
Products :	· Die Block/ Die Steel · Machinery · Ventilator · Magnetic Lifter · Pallet Truck

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· HDFC Bank, 1601, Kalsi Nagar Branch, G.T. Ludhiana, India

· Centurion Bank of Punjab Limited, SME Division, 112, 3^rd Floor, Pakhowal Road, Ludhiana – 141001, Punjab, India

· Standard Chartered Bank, 10, Parliament Street, New Delhi – 110001, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Tata Capital Limited	0.700	0.944
HDFC Bank Limited CC A/c	0.450	7.716
Total	1.150	8.660
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Indu Dhingra	0.300	0.180
Virat Dhingra – Loan	5.943	5.624
Virat Dhingra (HUF)	0.825	0.825
Total	7.068	6.629

Banking Relations :

--

Auditors :

Name :

Asim Atrey and Associates

Chartered Accountants

Address :

Office 47-C, Udham Singh Nagar, Ludhiana - 141001, Punjab, India

Tel. No.:

91-161-2302402

Fax No.:

91-161-2302402

Email :

Sunilgera2008@gmail.com

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1800000	Equity Shares	Rs.10/- each	Rs. 18.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1371000	Equity Shares	Rs.10/- each	Rs.13.710 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		13.710	13.710	13.710
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2.671	1.630	0.559
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		16.381	15.340	14.269
LOAN FUNDS
1] Secured Loans		1.150	8.660	9.450
2] Unsecured Loans		7.068	6.629	0.560
TOTAL BORROWING		8.218	15.289	10.010
DEFERRED TAX LIABILITIES		0.000	0.000	0.005
TOTAL		24.599	30.629	24.284
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.092	2.521	2.725
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	47.596	21.218	70.411
	Sundry Debtors	39.523	60.236	20.677
	Cash & Bank Balances	0.938	2.514	0.216
	Other Current Assets	19.586	20.039	2.515
	Loans & Advances	0.000	0.000	2.919
Total Current Assets		107.643	104.007	96.738
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	93.097	74.359	74.419
	Other Current Liabilities	1.181	1.698	0.760
	Provisions	0.000	0.000	0.000
Total Current Liabilities		94.278	76.057	75.179
Net Current Assets		13.365	27.950	21.559
MISCELLANEOUS EXPENSES		0.142	0.158	0.000
TOTAL		24.599	30.629	24.284

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	176.248	204.936	62.898
		Other Income
		TOTAL (A)	176.248	204.936	62.898
Less	EXPENSES
		Office Expenses	173.137	201.939	61.082
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	173.137	201.939	61.082
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3.111	2.997	1.816
Less	FINANCIAL EXPENSES (D)		0.958	0.720	0.630
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.153	2.277	1.186
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.548	0.626	0.436
	PROFIT BEFORE TAX (E-F) (G)		1.605	1.651	0.750
Less	TAX (H)		0.564	0.580	0.226
	PROFIT AFTER TAX (G-H) (I)		1.041	1.071	0.524
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.605	1.651	0.751
	APPROPRIATIONS		1.041	1.071	0.524
	BALANCE CARRIED TO THE B/S		0.000	0.000	0.000
	Earnings Per Share (Rs.)		0.76	0.78	0.39

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.60	0.52	0.83
Return on Total Assets (PBT/Total Assets}	(%)	1.35	1.54	0.75
Return on Investment (ROI) (PBT/Networth)		0.10	0.11	0.05
Debt Equity Ratio (Total Liability/Networth)		6.26	5.95	5.97
Current Ratio (Current Asset/Current Liability)		1.14	1.37	1.29

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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
31]	Date of Birth of Director, if available	Yes
32]	PAN of Director, if available	No
33]	Voter ID No of Director, if available	No
34]	External Agency Rating, if available	No

note

The registered office address of the company has been shifted from “S. No. 9, Opposite Sunny Petrol Pump, Near Bedi Properties,Nh-8,Narsingpur, Gurgaon – 122001, Haryana, India” to the present address w.e.f. 23.07.2010

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U27310HR2007PTC036933
Name of the company	VIRAT SPECIAL STEELS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.610, Pace City II, Sector 37 II, Gurgaon – 122001, Haryana, India E-mail Id : accounts@viratsteels.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10226834
Type of charge	Book Debts Others (1^st and exclusive charge over current assets)
Particular of charge holder	Standard Chartered Bank, 10, Parliament Street, New Delhi – 110001, India E-mail id : sunil.ganguly@sc.com
Nature of instrument creating charge	No instrument was executed. Pari passu letter
Date of instrument Creating the charge	31.01.2011
Amount secured by the charge	Rs.52.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per facility letter dated 07.01.2011 Terms of Repayment As per facility letter dated 07.01.2011 Margin As per facility letter dated 07.01.2011 Extent and Operation of the charge Pari passu charge
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation by way of first and exclusive charge over all present & future current assets of the company stored or to be stored at the company's godowns or premises or wherever else the same may be.
Particulars of the present modification	Credit facilities shall stand reduced from Rs. 92.500 Millions to Rs. 52.500 Millions and shall be secured by first pari passu charge with HDFC bank over all present and future current assets of the company stored or to be stored at the company's godowns or premises or wherever else the same may be.

PROGRESS OF THE COMPANY

During the year, the Company achieved the turnover of Rs. 176.248 Millions as against Rs. 204.936 Millions in the previous year. Similarly Profit before taxation reduces from Rs. 1.651 Millions to Rs. 1.605 Millions in the financial year ended on 31.03.2011. Hence profit after tax has also reduced from Rs. 1.070 Millions to Rs 1.040 Millions during the year.

FIXED ASSETS:

· Car

· Machinery

· Fax Machines

· Computer

· Generator

· Weighing Scale

· Office Equipment

WEBSITE DETAILS:

PROFILE:

Subject is a classic example of steady business evolution. The business model set up bye Mr. D.K. Dhingra as Dhingra Enterprises in 1957 for catering to the requirements of developing forging and casting industry in India, bye way of providing them with Industrial Hardware products. Tools and Die steel of the finest quality. Dhingra Enterprises did not merely supply the tools and die steel to its customers, also helped the entrepreneurs in identifying the right type of products for their factories. Technically assisting them with all type of information required, by tying up with large Companies and consultants for this purpose. This hard work by Mr. D.K. Dhingra coupled with his business acumen and his foresightedness helped in this development. 

In 1981 Dhingra Steel Corporation was established, wherein the flagship of Dhingra Enterprises was carried further deep into other areas of the forging industry. Mr. Vikram Dhingra ventured into manufacturing and thereafter Mr. Virat Dhingra was inducted into business who carried the developments ahead, especially in the forging and casting Industry under the trade names and styles of Virat Steel and Giant Impex. Mr. Virat Dhingra, Having been imbibed with the respect from his friends and foes alike. With this fresh perspective and energy introduced, the business grew at a faster pace. Today the metal forging and casting industry in whole of India fully appreciates the organizational and business capabilities of Mr. Virat Dhingra.

With the opening up of the global markets, Virat Steels started importing Tools and Die Steels from the world’s top most manufacturing companies like. M/s ,Schmiedewerke Groditz Thyssen, Deutche Edelstahlwerke from Germany, M/s nachi of Japan, M/s Thyssen Krupp from France, M/s Bohler from Austria, M/s A. Finkl and Sons from U.S.A. who recognized business house. The state of art machines and required infrastructure are being installed at the steel yard at its head office and branches. This enabled it to fulfill all the requirements pertaining to highly specialized steels.

The global markets and expanding business operations of the Company. The visionaries incorporated another company under the name and style of subject. With offices at Ludhiana, Gurgaon and Pune to provide efficient business services to the Industrial undertaking at the location in India. A team of professional has been appointed all the concerned at all levels.   

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 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.55.14
UK Pound	1	Rs.86.00
Euro	1	Rs.68.31

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--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		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.