MIRA INFORM REPORT

Report Date :

06.12.2012

IDENTIFICATION DETAILS

Name :	DAGA TRADING COMPANY PRIVATE LIMITED
Registered Office :	Y-162, Loha Mandi, Naraina, New Delhi-110028
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.04.1995
Com. Reg. No.:	55-067113
Capital Investment / Paid-up Capital :	Rs. 3.000 millions
CIN No.: [Company Identification No.]	U74899DL1995PTC067113
TAN No.: [Tax Deduction & Collection Account No.]	DELD06590D
PAN No.: [Permanent Account No.]	AAACD2847D
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Iron and Steel.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 436000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is part of Daga Group a authorized distributor of TATA STEEL. It is well established company having satisfactory track record. The performance capacity of the company is high. Financially company has good stand. But latest financial is missing from government department. However, liquidity position is good. Trade relations are reported to be fair. Business is active. Payment are reported to be usually correct and as per commitment. The company can be considered for normal business dealing at usual trade terms and condition.

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 :	Y-162, Loha Mandi, Naraina, New Delhi-110028, India
Tel. No.:	91- 11-25893240
Fax No.:	91- 11-45695050
E-Mail :	cajsjohar@gmail.com
Website :	www.dagagroup.in
Godown 1:	Mohan Cooperative Industrial Estate, Badarpur, New Delhi -110001, India
Tel. No.:	91-11-40509884
Fax No.:	91-11-45695050
Godown 2:	Dhatir Road, Vill. Prithla, Palwal Faridabad, Haryana, India
Tel. No.:	91-1275-262003
Fax No.:	91-11-45695050
Corporate Office :	F-16, First Floor, Himalaya House, 23, Kasturba Gandhi Marg, New Delhi -110001, India
Tel. No.:	91-11-45695051 / 43489046
Fax No.:	91-11-45695050
Branches 1:	B-618, Nehru Ground N.I.T Faridabad - 121001, Haryana, India
Tel. No.:	91- 129-4175692
Fax No.:	91- 11-45695050

DIRECTORS

As on 29.09.2012

Name :

Krishan Kumar Daga

Designation :

Director

Address

A-2, Soami Nagar, New Delhi-110017, India

Date of Appointment :

01.10.2002

DIN No.:

00141903

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	U74899DL1995PTC067113	DAGA TRADING COMPANY PRIVATE LIMITED	Director	01/10/2002	01/10/2002	-	Active	NO
2	U70109DL2006PTC152174	DRAKE PROPERTIES PRIVATE LIMITED	Director	09/10/2006	09/10/2006	-	Active	NO

Name :

Ramesh Kumar Daga

Designation :

Director

Address

A-2, Soami Nagar, New Delhi-110017, India

Date of Appointment :

01.10.2002

DIN No.:

00141906

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	U74899DL1995PTC066893	D M AGRO PRODUCTS PRIVATE LIMITED	Director	10/04/1995	10/04/1995	-	Active	NO
2	U74899DL1995PTC067113	DAGA TRADING COMPANY PRIVATE LIMITED	Director	01/10/2002	01/10/2002	-	Active	NO
3	U70109DL2006PTC152174	DRAKE PROPERTIES PRIVATE LIMITED	Director	09/10/2006	09/10/2006	-	Active	NO
4	U28113DL2009PTC192373	NORTHERN STEEL AND GENERAL MILLS PRIVATE LIMITED	Director	20/07/2009	20/07/2009	-	Active	NO
5	U70101DL2009PTC192368	DAGA INFRASTRUCTURE PRIVATE LIMITED	Director	20/07/2009	20/07/2009	-	Active	NO
6	U28998DL2009PTC192366	PRAGYAN METALS PRIVATE LIMITED	Director	20/07/2009	20/07/2009	-	Active	NO

Name :

Sanjay Daga

Designation :

Director

Address

A-2, Soami Nagar, New Delhi-110017, India

Date of Appointment :

01.04.1998

DIN No.:

00141911

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	U74899DL1995PTC066893	D M AGRO PRODUCTS PRIVATE LIMITED	Director	10/04/1995	10/04/1995	-	Active	NO
2	U74899DL1995PTC067113	DAGA TRADING COMPANY PRIVATE LIMITED	Director	01/04/1998	01/04/1998	-	Active	NO
3	U70109DL2006PTC152174	DRAKE PROPERTIES PRIVATE LIMITED	Director	09/10/2006	09/10/2006	-	Active	NO
4	U28113DL2009PTC192373	NORTHERN STEEL AND GENERAL MILLS PRIVATE LIMITED	Director	20/07/2009	20/07/2009	-	Active	NO
5	U70101DL2009PTC192368	DAGA INFRASTRUCTURE PRIVATE LIMITED	Director	20/07/2009	20/07/2009	-	Active	NO
6	U28998DL2009PTC192366	PRAGYAN METALS PRIVATE LIMITED	Director	20/07/2009	20/07/2009	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Krishna Daga	115000
Laxmi Daga	115000
Krishan Kumar Daga	400
Krishan Kumar Daga (HUF)	400
Ramesh Kumar Daga	400
Ramesh Kumar Daga (HUF)	400
Sanjay Daga	400
Shalini Daga	400
Virendra Paul Daga (HUF)	400
Sanjay Daga (HUF)	400
Adarsh Daga	4000
Pragyan Daga	2800
Laxman Investment Limited, India	35000
Deepraj Inverstments Limited, India	2500
Gaurav Credits Limited	2500
Primus Capital Private Limited	2500
Rubion Marketing Limited	2500
Prabha Ladha	2500
Ranjeet Ladha	2500
Siddharth Ladha	2500
Bhagwati Devi Daga	2500
Shailza Daga	2500
Swati Daga	2500
Total	300000

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Bodies corporate	15.00
Directors or relatives of Directors	80.00
Other top fifty shareholders	5.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of Iron and Steel.
Products :	Iron and Steel Rolled Products

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Citibank N.A

Jeevan Bharti Building, 4th Floor, 124 Connaught Circus, Connaught place, New Delhi - 110001, India

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	0.150	0.530
Foreign currency loans banks secured	30.000	0.000
Working capital loans banks secured	120.013	71.735
Total	150.163	72.265
Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Other debt unsecured	6.810	19.190
Total	6.810	19.190

Banking Relations :	--
Auditors :
Name :	J S Johar and Associates Chartered Accountants
Address :	M-16A, 2^nd Floor, Lajpat Nagar-III, New Delhi, India
PAN No.:	AAJPJ0369E
Related Parties :	Daga Iron and Steel Corporation

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs.10/- each	Rs. 4.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.10/- each	Rs. 3.000 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		3.000	3.000	3.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		106.139	83.204	74.494
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		109.139	86.204	77.494
LOAN FUNDS
1] Secured Loans		150.163	72.265	40.492
2] Unsecured Loans		6.810	19.190	38.222
TOTAL BORROWING		156.973	91.455	78.714
DEFERRED TAX LIABILITIES		0.237	0.038	0.000
TOTAL		266.349	177.697	156.208
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		13.882	14.498	1.744
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.017	0.568	0.569
DEFERRED TAX ASSETS		0.000	0.000	0.043
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	58.440	18.825	13.830
	Sundry Debtors	191.602	156.364	167.476
	Cash & Bank Balances	3.044	1.099	3.510
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	33.269	24.348	27.131
Total Current Assets		286.355	200.636	211.947
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	16.848	25.814	47.388
	Other Current Liabilities	3.067	0.818	3.834
	Provisions	13.990	11.373	6.873
Total Current Liabilities		33.905	38.005	58.095
Net Current Assets		252.450	162.631	153.852
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		266.349	177.697	156.208

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2260.013	2566.951	2185.167
		Dividend		0.000	0.000
		Sales Tax Refund		0.028	0.000
		Closing Stock-in-Trade	10.912	18.825	13.830
		TOTAL (A)	2270.925	2585.804	2198.997
Less	EXPENSES
		Opening Stock-in-Trade	2241.945 (Including Depreciation and Financial Expense)	13.830	104.778
		Purchases		2516.226	2050.265
		Administrative and Other Expenses		37.078	29.441
		TOTAL (B)		2567.134	2184.484
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			18.670	14.513
Less	FINANCIAL EXPENSES (D)			4.654	4.679
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			14.016	9.834
Less/ Add	DEPRECIATION/ AMORTISATION (F)			0.724	0.422
	PROFIT BEFORE TAX (E-F) (G)		28.980	13.292	9.412
Less	TAX (H)		6.045	4.582	3.027
	PROFIT AFTER TAX (G-H) (I)		22.935	8.710	6.385
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		23.804	15.094	8.709
	BALANCE CARRIED TO THE B/S		46.739	23.804	15.094
	Earnings Per Share (Rs.)		76.45	29.03	21.28

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.01	0.34	0.29
Net Profit Margin (PBT/Sales)	(%)	1.28	0.52	0.43
Return on Total Assets (PBT/Total Assets}	(%)	9.65	6.18	4.40
Return on Investment (ROI) (PBT/Net worth)		0.27	0.15	0.12
Debt Equity Ratio (Total Liability/Net worth)		1.75	1.50	1.77
Current Ratio (Current Asset/Current Liability)		8.45	5.28	3.65

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	No
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	Yes
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	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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	U74899DL1995PTC067113
Name of the company	DAGA TRADING COMPANY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Y-162, Loha Mandi, Naraina, New Delhi-110028, India Email: cajsjohar@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90051727
Type of charge	· Book debts · Others (Stocks, P&M, Office Equip, Furniture and Fixtures)
Particular of charge holder	Citibank N.A Jeevan Bharti Building, 4th Floor, 124 Connaught Circus, Connaught place, New Delhi - 110001, India Email: roc@sdpa.in
Nature of instrument creating charge	Deed of modification of Goods Security Agreement.
Date of instrument Creating the charge	07.05.2012
Amount secured by the charge	Rs. 170.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per sanction terms and as may be decided by the bank and company mutually from time to time. Terms of Repayment Repayable on demand, annually renewable. Margin Borrower shall at all times during the continuance of the security maintain a sufficient amount to provide the margin of security as may from time to time advised by the Bank. Extent and Operation of the charge First exclusive charge on the current assets (including stocks and book debts) and movable fixed assets (including plant and machinery, office equipment, furniture and fixtures etc.) of the borrower present and future in favour of Citibank N.A Delhi for the repayment of all monies in respect of the credit facility, including outstanding balance and also all interest, costs, charges and expenses.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Current assets (including stocks and book debts) and movable fixed assets (including plant and machinery, office equipment, furniture and fixtures etc.) of the borrower present and future.
Date of instrument modifying the charge	08.03.2010
Particulars of the present modification	By this modification the overall limit is enhanced from Rs. 120.000 millions to 170.000 millions and the charge is secured by First exclusive charge on the current assets (including stocks and book debts) and movable fixed assets (including plant and machinery, office equipment, furniture and fixtures etc.) of the borrower present and future.

CONTINGENT LIABILITY

Contingent Liability not provided for, in respect of: -

(Rs. in millions)

PARTICULARS	31.03.2011
Sales Tax demands disputed by the Company	0.071
Income Tax demand disputed by the Company	0.026

FIXED ASSETS:

· Building

· Furniture and Equipment

· Vehicles

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 t 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.54.56
UK Pound	1	Rs.87.89
Euro	1	Rs.71.52

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.