MIRA INFORM REPORT

Report Date :

06.12.2012

IDENTIFICATION DETAILS

Name :	BALAJEE STRUCTURAL (INDIA) LIMITED BALAJEE COMMERCIAL COMPANY A DIVISION OF BALAJEE STRUCTURAL (INDIA) LIMITED
Registered Office :	Near Agrasen Chowk, Bajrang Nagar, Raipur-492001, Chhattisgarh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.02.2000
Com. Reg. No.:	10-014067
Capital Investment/ Paid-up Capital:	Rs.26.918 millions
CIN No.: [Company Identification No.]	U27106CT2000PLC014067
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Trader of Structurals Steels, Rounds, Flats, CTD Bars, Ingots etc.
No. of Employees:	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (33)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 930000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is associated with the Balajee Group of Companies. It is an established company having moderate track. The latest financials of the company are not made available. As per previous year’s, the profitability of the company appeared low. However, trade relations are reported as fair. Business is active. Payments terms are unknown in absence of latest financials. The company can be considered for business dealings 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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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 :	Near Agrasen Chowk, Bajrang Nagar, Raipur-492001, Chhattisgarh, India
Tel. No.:	91-771-2535851/ 2224938 / 2225151 / 4043351
Mobile No.:	91-9329442151 (Mr. Mohan Agrawal) 91-9329095451 (Mr. Vishnu Agrawal)
Fax No.:	91-771-2536751
E-Mail :	rkscaryp@yahoo.co.in marketing@balajeegroupindia.com sureshjindal@nalajeegroupindia.com vishnujindal@balajeegroupindia.com
Website :	www.balajeegroupindia.com
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :	Mr. Suresh Kumar Agrawal
Designation :	Director
Address :	11, Jalasaya Marg, Chobey Colony, Raipur-492001, Chhattisgarh, India
Date of Birth/Age :	21.04.1965
Date of Appointment :	25.02.2000
DIN No :	00182991

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U27106CT1989PTC005016	BALAJEE LOHA PRIVATE LIMITED	Director	17-01-89	17-01-89	Active	NO
2	U27106CT2000PLC014067	BALAJEE STRUCTURAL(INDIA) LIMITED	Director	25-02-00	25-02-00	Active	NO

Name :	Mr. Vishnu Kumar Agrawal
Designation :	Director
Address :	11, Jalasaya Marg, Chobey Colony, Raipur-492001, Chhattisgarh, India
Date of Birth/Age :	11.07.1973
Date of Appointment :	25.02.2000
DIN No :	00182995

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U27101CT1996PTC010800	BALAJEE REALINFRA PRIVATE LIMITED	Director	02-05-96	02-05-96	11-05-12	Active	NO
2	U27106CT2000PLC014067	BALAJEE STRUCTURAL(INDIA) LIMITED	Director	25-02-00	25-02-00	-	Active	NO
3	U27106CT1985PTC002989	SHREE HANUMAN LOHA PRIVATE LIMITED	Director	20-04-09	20-04-09	11-05-12	Active	NO
4	U51909WB2004PTC100422	GLORIOUS TIE-UP PRIVATE LIMITED	Director	13-07-09	13-07-09	-	Active	NO

Name :	Mr. Amit Jindal
Designation :	Director
Address :	11, Jalasaya Marg, Chobey Colony, Raipur-492001, Chhattisgarh, India
Date of Birth/Age :	10.07.1983
Date of Appointment :	21.01.2006
DIN No :	01598411

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U27106CT2000PLC014067	BALAJEE STRUCTURAL(INDIA) LIMITED	Director	21-01-06	21-01-06	Active	NO
2	U27106CT1985PTC002989	SHREE HANUMAN LOHA PRIVATE LIMITED	Director	07-04-06	07-04-06	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Balajee Smeltres Private Limited, India	947000
Jindal Loha Private Limited, India	878900
Glorious Tie-Up Private Limited, India	335000
J P Agrawal	122700
Mohan Lal Agarwal	100000
Pawan Kumar Agrawal	97000
Vishnu Kumar Agrawal	86700
Indu Bai Agrawal	62500
M R Agrawal HUF	16700
Gayatri Agrawal	15000
Rekha Agrawal	10000
J P Agrawal HUF	6700
S K Agrawal HUF	6700
B D Agrawal HUF	3500
Suresh Kumar Agrawal	3400
Total	2691800

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	95.88
Directors or relatives of Directors	4.12
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Trader of Structurals Steels, Rounds, Flats, CTD Bars, Ingots etc.

Products :

Item Code No.:	Product Description
72165000	Rolling Mills
72061090	Induction Furnace

ITEM CODE NO	PRODUCT	DESCRIPTION
Rolling Mill :
7216	Angles	Re rolled product
7216	Channels	Re rolled product
7216	Joist	Re rolled product
Induction Furnace :
7224	Ingot	Finished Goods Furnace

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Re Rolled Products (CTD Bars, angles, Chanels, Plates, Joist, Structures etc)	MT	15000	15000	41121

GENERAL INFORMATION

Customers :

· Jindal Steel and Power Limited

· Monnet Ispat and Energy Limited

· JSW Steels Limited (Project Division)

· Reliance Industries Limited

· Sharda Energy and minerals Limited

· Grasim Industries Limited

· Lafarge India Limited

· Tata Steels Limited

· Ultra Tech Cement Limited

· Bhushan Steel and Strips Limited

· Hindustan Zince Limited

· Paschim Gujrat Vij Company Limited

· Madhya Gujrat Vij Company Limited

· Gujrat Energy Transmission Corporation Limited

· Uttar Gujrat Vij Company Limited

· Dakshin Gujrat Vij Company Limited

· Maharashtra State Electricity Transmission Company Limited

· Maharashtra State Electricity Distribution Company Limited

· Chhattisgarh State Electricity Board

· M.P. Purva Kheshtra Vidhyot Vitran Company Limited

· M.P. Madhya Kheshtra Vidhyot Vitran Company Limited

· M.P. Paschim Kheshtra Vidhyot Vitran Company Limited

· M.P. Power Transmission Company Limited

· M.P. Power Generation Company Limited

· Aster Teleservices Private Limited

· New Swadeshi Sugar Mills

· Adani Group

· PMC Projects

· ICOMM Tele Limited

· Essar Steels

· Surana Industries Limited

· Salasar Steel and Power Limited

· Ambuja Group

· Alstom Group

· Jyoti Structure

· Hira Ferro Aloys Limited (Noble Division)

· Steel Products Limited

· Stork Ferrous and Alloys

· Prem Prakash Tubes Limited

· Visa Bao Limited

No. of Employees :

150 (Approximately)

Bankers :

Punjab National Bank, Jaistambh Chowk, Raipur-492001, Chhattisgarh, India

Facilities :

(Rs. In millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Working Capital Loans Banks Secured	134.024	203.348
Total	134.024	203.348

(Rs. In millions)

Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Loan Directors Unsecured	2.179	5.469
Other Debts Unsecured	66.659	60.280
Total	68.838	65.749

Banking Relations :	--
Auditors :
Name :	Rajesh J Agrawal and Company Chartered Accountants
Address :	Near Dr. Farista Besides SBI Zonal Office, Katora Talab, Raipur-492001, Chhattisgarh, India
Tel. No.:	91-771-4032170 / 4032180
E-Mail :	info@rajeshagrawal.com
Website:	www.rajeshjagrawal.com
PAN No.:	AAIFR5780L
Group Companies :	· Balajee Loha Private Limited · Shree Hanuman Loha Private Limited · Balajee Steel Industries · Balajee Commercial Company

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
4400000	Equity Share	Rs.10/- each	Rs.44.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2691800	Equity Share	Rs.10/- each	Rs.26.918 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		26.918	26.918	26.918
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		206.517	202.221	197.633
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		233.435	229.139	224.551
LOAN FUNDS
1] Secured Loans		134.024	203.348	46.827
2] Unsecured Loans		68.838	65.749	44.327
TOTAL BORROWING		202.862	269.097	91.154
DEFERRED TAX LIABILITIES		3.920	3.643	3.549
TOTAL		440.217	501.879	319.254
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		72.333	75.015	81.066
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	151.534	140.621	143.969
	Sundry Debtors	267.404	171.078	123.613
	Cash & Bank Balances	11.493	8.889	11.466
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	83.896	169.461	101.306
Total Current Assets		514.327	490.049	380.354
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	94.636	48.279	122.098
	Other Current Liabilities	49.859	12.940	2.332
	Provisions	1.948	1.966	17.736
Total Current Liabilities		146.443	63.185	142.166
Net Current Assets		367.884	426.864	238.188
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		440.217	501.879	319.254

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1713.283	1428.014	1793.343
		Other Income	4.475	45.301	61.925
		TOTAL (A)	1717.758	1473.315	1855.268
Less	EXPENSES
		Consumption materials changes inventories	1504.919	1233.120
		Manufacturing service costs	159.728	190.678
		Employee related expenses	3.185	2.125
		Administrative selling other expenses	7.169	8.563
		TOTAL (B)	1675.001	1434.486	1812.945
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) I		42.757	38.829	42.323
Less	FINANCIAL EXPENSES (D)		19.700	11.663	16.521
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		23.057	27.166	25.802
Less/ Add	DEPRECIATION/ AMORTISATION (F)		16.536	20.518	15.202
	PROFIT BEFORE TAX (E-F) (G)		6.521	6.648	10.600
Less	TAX (H)		2.224	2.060	3.337
	PROFIT AFTER TAX (G-H) (I)		4.297	4.588	7.263
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		24.951	20.363	13.100
	BALANCE CARRIED TO THE B/S		29.248	24.951	20.363
	Earnings Per Share (Rs.)		1.60	1.70	2.70

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.25	0.31	0.39
Net Profit Margin (PBT/Sales)	(%)	0.38	0.47	0.59
Return on Total Assets (PBT/Total Assets}	(%)	1.11	1.18	2.30
Return on Investment (ROI) (PBT/Networth)		0.03	0.03	0.05
Debt Equity Ratio (Total Liability/Networth)		1.50	1.45	1.05
Current Ratio (Current Asset/Current Liability)		3.51	7.76	2.66

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	Yes
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	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	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U27106CT2000PLC014067
Name of the company	BALAJEE STRUCTURAL (INDIA) LIMITED
Address of the registered office or of the principal place of business in India of the company	Near Agrasen Chowk, Bajrang Nagar, Raipur, Chhattisgarh, India E-mail : rkscaryp@yahoo.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90204242
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	Punjab National Bank, Jaistambh Chowk, Raipur-492001, Chhattisgarh, India E-mail Id : bo0399@pnb.co.in
Nature of instrument creating charge	1. Hypothecation of goods and book debts to secure cash credit facility 2. Supplementary Agreement
Date of instrument Creating the charge	23.03.2010
Amount secured by the charge	Rs. 187.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Same rate of interest as in last modification Terms of repayment The working capital limit is subject to renew / review every year and repayable on demand. Margin Advance payments and all types of stocks-25% Book Debts-40% Extent and operation of the charge The charge will continue to exist till the repayment of loan
Short particulars of the property charged (Including location of the property)	Hypothecation of Raw material, Finished Goods, Coal, Consumable stores and spares and book debts of the company. EM of freehold factory land bearing Kh. No.86/02 and 69/4, PH No.103, Area 3832 sq. ft. respectively at Tatibandh, Raipur with building, plant and machinery and Miscellaneous Fixed Assets.
Particulars of the present modification	CC Limit enhanced to Rs. 187.500 millions (includes adhoc limit of Rs. 37.500 millions)

FIXED ASSETS

· Administrative Building

· Air Conditioner

· Building and Factory

· Computer

· Computer Software

· Electrical Installations

· Furniture and Fixtures

· Other Equipment

· Vehicle

· Lift

· Borewell

· Weight Bridge

· Plant and Machinery

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.54.57
UK Pound	1	Rs.87.90
Euro	1	Rs.71.53

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		33

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.