MIRA INFORM REPORT

Report Date :

17.12.2012

IDENTIFICATION DETAILS

Name :	BALAJI IRON AND STEEL INDUSTRIES PRIVATE LIMITED (w.e.f. 19.09.2002)
Formerly Known As :	GRAS STEEL PRIVATE LIMITED
Registered Office :	S No. 7 17 2A-1, 73A Takai Adoshi Road Village, Dhek, Khalapur, Raigad, Thane – 410203, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	23.02.1987
Com. Reg. No.:	11-042668
Capital Investment / Paid-up Capital :	Rs.11.450 Millions
CIN No.: [Company Identification No.]	U99999MH1987PTC042668
TAN No.: [Tax Deduction & Collection Account No.]	MUMB1734D/ MUMB13009D
PAN No.: [Permanent Account No.]	AAACG1735F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Black and Galvanized ERW Steel Pipes.
No. of Employees :	60 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 190000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The financials of 2011 and 2012 are not made available in the government. Mr. Jangir, Accounts Manager has provided us with all the information. As per previous records, there appear huge external borrowings recorded by the company. However, trade relations are reported as fair. Business is active. Payment terms are slow. 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

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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BB- (Cash Credit Limit)
Rating Explanation	Moderate risk of default.
Date	August 2011

Rating Agency Name	ICRA
Rating	A4 (Non Fund Based Limits)
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	August 2011

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.

INFORMATION PARTED BY

Name :	Mr. Jangir
Designation :	Accounts Manager
Contact No.:	91-22-22000095
Date :	14.12.2012

LOCATIONS

Registered Office/ Factory :	S No. 7 17 2A-1, 73A Takai Adoshi Road Village, Dhek, Khalapur, Raigad, Thane – 410203, Maharashtra, India
Tel. No.:	91-22-22000095/ 23826130 / 23802443
Fax No.:	91-22-22000096/ 23826130
E-Mail :	balajisteels@hotmail.com
Location :	Owned
Corporate Office :	T-6, Riddhi Siddhi Society, Sikka Nagar, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-23802443
Fax No.:	91-22-23826130

DIRECTORS

As on: 30.09.2011

Name :	Mr. Bhupendra Savailal Mody
Designation :	Director
Address :	B-2/71 Technocrat Housing Society, Twin Tower Lane, Off Veeer Savarkar R, Mumbai – 400025, Maharashtra, India
Date of Birth/Age :	07.12.1953
Date of Appointment :	31.07.2008
DIN No.:	01688757
Name :	Mr. Shirish Ganpatlal Mehta
Designation :	Director
Address :	12, Jai Shivam Shivmandir Road, Ramnagar, Dombivli (East), Thane – 421201, Maharashtra, India
Date of Birth/Age :	16.06.1955
Date of Appointment :	31.07.2008
DIN No.:	01688881
Name :	Mr. Aditya Vikram Singi
Designation :	Director
Address :	Flat No. 21, Summer Vila Bhulabhai, Desai Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	15.10.1970
Date of Appointment :	24.05.2011
DIN No.:	00175836

KEY EXECUTIVES

Name :	Mr. Jangir
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2011

Names of Shareholders	No. of Shares
Shirish Ganpatlal Mehta	104420
Bhupendra Savailal Mody	104420
Zenith Multiple Wires Private Limited, India	390000
Jay Steel Wires Private Limited, India	120000
Zest Agencies and Trading Private Limited, India	426200
Total	1145040

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2011

Category	Percentage
Bodies corporate	81.76
Directors or relatives of directors	18.24
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Black and Galvanized ERW Steel Pipes.

Products :

Product Description	ITC Code
ERW Pipes	73061002

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (As on: 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity
ERW Pipes	M.T	NA	15000

Particulars	Actual Production (Including Job work from outside parties)
M. S Black Pipes	17634.362
G. P. Tubes	4127.350

GENERAL INFORMATION

Suppliers :

Aryan Steel

Customers :

Wholesalers and Retailers

• Vijay Steel

No. of Employees :

60 (Approximately)

Bankers :

• Union Bank of India, Thane Branch, Thane, Maharashtra, India
• Central Bank of India, Bhavnagar Branch, Harris Road, Darbargadh, Bhavnagar - 364001, Gujarat, India
• Union Bank of India, Mumbai Samachar Marg Branch, 66/80, Mumbai Samachar Marg, Fort, Mumbai - 400023, Maharashtra, India

Facilities :

Cash Credit and LC Rs.240.000 Millions (From Union Bank of India)

(Rs. In Millions)

Secured Loan	As on 31.03.2010	As on 31.03.2009
Loan from Union Bank of India (Secured against Stock, Book Debts, Personal guarantee of both the directors and equitable mortgage of land, building and machinery of the company located at Khopoli.)	110.793	83.828
Loan from Kotak Mahindra Primus Limited (Secured against hypothecation of motor car. Amount repayable within 1 year Rs. 0.347 Million)	1.604	1.915
Total	112.397	85.743
Unsecured Loan	As on 31.03.2010	As on 31.03.2009
Inter Corporate Deposits	9.000	8.000
From Banks and Finance Companies	7.158	0.000
From Shareholders	22.500	0.000
Total	38.658	8.000

Banking Relations :	--
Auditors :
Name :	GMJ and Company Chartered Accountants
Address :	C-002, Vishal Apartments, Sir M. V. Road, Andheri (East), Mumbai – 400069, Maharashtra, India
Tel. No.:	91-22-26840145/ 26830146/ 47
Fax No.:	91-22-26842221
E-Mail :	admin@gmjca.com
PAN No.:	AAAFG2163L
Related parties where control exists :	Zenith Multiple Wires Private Limited Balaji Precision Bright Bars Private Limited Jay Wires India Private Limited
Sister Concern :	Bright Bar – (Division Of Balaji Iron and Steel Industries Private Limited)

CAPITAL STRUCTURE

As on: 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1440000	Equity Shares	Rs.10/- each	Rs.14.400 Millions
60000	11% Redeemable Preference Shares	Rs.10/- each	Rs.0.600 Million
	Total		Rs.15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1145040	Equity Shares	Rs.10/- each	Rs.11.450 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		11.450	11.450	2.088
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		36.239	33.532	3.752
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		47.689	44.982	5.840
LOAN FUNDS
1] Secured Loans		112.397	85.743	0.000
2] Unsecured Loans		38.658	8.000	2.670
TOTAL BORROWING		151.055	93.743	2.670
DEFERRED TAX LIABILITIES		1.004	0.671	0.217
TOTAL		199.748	139.396	8.727
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15.903	12.504	3.935
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	113.938	48.127	10.083
	Sundry Debtors	63.679	64.098	2.729
	Cash & Bank Balances	11.066	1.724	0.939
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	50.361	20.574	1.862
Total Current Assets		239.044	134.523	15.613
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	45.136	3.269	7.567
	Other Current Liabilities	9.260	4.021	3.155
	Provisions	0.803	0.341	0.099
Total Current Liabilities		55.199	7.631	10.821
Net Current Assets		183.845	126.892	4.792
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		199.748	139.396	8.727

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	681.240	259.288	49.690
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX		3.646	2.211	0.887
Less	TAX		0.940	0.516	0.042
	PROFIT AFTER TAX		2.706	1.695	0.845
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.116	0.421	(0.424)
	BALANCE CARRIED TO THE B/S		4.822	2.116	0.421
	Earnings Per Share (Rs.)		2.36	2.43	4.05

Particulars	31.03.2012	31.03.2011
Sales Turnover (Approximately)	1700.000	1400.000

Expected Sales (2012-2013): Rs.1800.000 Millions

The above information has been parted by Mr. Jangir

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
Net Profit Margin (PBT/Sales)	(%)	0.54	0.85	1.79
Return on Total Assets (PBT/Total Assets}	(%)	1.43	1.50	4.54
Return on Investment (ROI) (PBT/Networth)		0.08	0.05	0.15
Debt Equity Ratio (Total Liability/Networth)		4.32	2.25	2.31
Current Ratio (Current Asset/Current Liability)		4.33	17.63	1.44

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	Yes
10]	Designation of contact person	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
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	Yes

FIXED ASSETS

• Land and site Development
• Factory Building
• Plant and Machinery
• Tools and Equipment
• Roll Sets
• Laboratory Equipments
• Electrical Fittings
• Transformer Electricals
• Furniture and Fixtures
• Vehicles
• Air Conditioner
• Computers

TRADE REFERENCES:

• Aryan Steel
• Vijay Steel, Pune

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.54.39
UK Pound	1	Rs.87.78
Euro	1	Rs.71.29

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		31

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.