MIRA INFORM REPORT

Report Date :

11.01.2012

IDENTIFICATION DETAILS

Name :	K L STEELS PRIVATE LIMITED
Registered Office :	Z-18, Naraina, Delhi – 110 028
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.07.1984
Com. Reg. No.:	55-38783
Capital Investment / Paid-up Capital :	Rs.2.452 Millions
CIN No.: [Company Identification No.]	u74899dl1984ptc038783
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Channels, MS etc.
No. of Employees :	175 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (61)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 3127000
Status :	Good
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

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

INFORMATION PARTED BY

Name :	Mr. Subodh
Designation :	General Manager in Marketing
Contact No.:	91-9871013014
Date :	09.01.2012

LOCATIONS

Registered Office :	Z-18, Loha Mandi, Naraina, Delhi – 110 028
Tel. No.:	Not Available
Mobile No.:	91-9871013014 (Mr. Subodh)
Fax No.:	Not Available
E-Mail :	Fin.gm@klsons.in legal@klsons.in sales.subodh@klsons.in
Location :	Owned
Factory :	G.T B.S Road, Lal Quan, Ghaziabad – 201 009, Uttar Pradesh, India
Tel. No.:	91-120-4198401-405 / 4198442
Fax No.:	91-120-4198430

DIRECTORS

As on 30.09.2011

Name :

Mr. Raj Bardeja

Designation :

Chairman

Address :

KD-42, Kavi Nagar, Ghaziabad – 201 001, Uttar Pradesh

Date of Birth/Age :

16.01.1962

Date of Appointment :

19.07.1984

DIN No.:

00352019

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U74899DL1984PTC038783	K L Steels Private Limited	Managing director	19-07-84	19-07-84	-	Active	NO
2	U27109DL1992PTC047786	K.L. Concast Private Limited	Director	27-02-92	27-02-92	-	Active	NO
3	U70101DL2011PTC226198	Vizor Land Base Private Limited	Director	12-10-11	12-10-11	-	Active	NO

Name :

Mr. Ramesh Kumar Bardeja

Designation :

Director

Address :

A-118 Central Avenue, Sainik Farms, New Delhi – 110 062

Date of Birth/Age :

27.10.1952

Date of Appointment :

19.07.1984

DIN No.:

00352031

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U74899DL1984PTC038783	K L Steels Private Limited	Director	19-07-84	19-07-84	-	Active	NO
2	U27109DL1992PTC047786	K.L. Concast Private Limited	Managing director	01-10-95	01-10-95	-	Active	NO

Name :

Mr. Om Prakash

Designation :

Whole Time Director

Address :

5/40 Raj Nagar, Ghaziabad – 201 001, Uttar Pradesh

Date of Birth/Age :

25.07.1958

Date of Appointment :

26.12.1984

DIN No.:

00352029

Name :

Mr. Ashok Bardeja

Designation :

Whole Time Director

Address :

16-Chenader Alok, Handi Gobindgarh, Fatehgarh Sahib – 147 301, Punjab

Date of Birth/Age :

02.10.1958

Date of Appointment :

19.07.1984

DIN No.:

00352026

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U74899DL1984PTC038783	K L Steels Private Limited	Whole-time director	19-07-84	19-07-84	-	Active	NO
2	U27109DL1992PTC047786	K.L. Concast Private Limited	Director	16-04-92	16-04-92	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Subodh
Designation :	General Manager in Marketing

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Raj Bardeja	5140
Ashok Bardeja	4820
Ramesh Kumar Bardeja	2900
Om Prakash	4
Kanhaya Lal	2000
Kelly Bardeja	2440
Anuradha Raj Kumar Bardeja	1000
Nazuk Bardeja	4
Baby Siya Bardeja	2
Master Uvraj Bardeja	5
Kanhaya Lal Raj Kumar	1500
Ahok Kumar Kanhaya Lal (HUF)	1500
Raj Kumar (HUF)	1204
Ramesh Kumar (HUF)	2000
TOTAL	24519

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Ms and Galvanized Rolled Products

Products :

Generic Names of principal Products of Company

Item Code No. (ITC Code)	Product Description
7216.50	Shapes and Sections
7207.19.20	Structure (Galvanised)

Exports :

Products :

Channels

Countries :

African Countries

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Installed Capacity (On Single Shift Basis)	Actual Production
Steel Re-rolled Products (M.S Sections)	MT	96000	99494.650 (includes 28742.585 MT on Conversion for SAIL)

GENERAL INFORMATION

Suppliers :

• Steel Authority

Customers :

Wholesalers and Retailers

• L and T

No. of Employees :

175 (Approximately)

Bankers :

State Bank of Patiala, 10, navyug Market, Ghaziabad – 201 001, Uttar Pradesh

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Other debt secured	139.752	233.913
Total	139.752	233.913
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Loans from Director	43.296	31.798
Total	43.296	31.798

Banking Relations :	--
Auditors :
Name :	P Jain and Company Chartered Accountants
Address :	6, navyug Market, Ghaziabad – 201 001, Uttar Pradesh
PAN.:	AABFP6159J
Sister Concern :	K L Concast Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs. 100/- each	Rs. 2.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24519	Equity Shares	Rs. 100/- each	Rs. 2.452 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		2.452	2.452	2.452
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		809.130	734.866	619.809
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		811.582	737.318	622.261
LOAN FUNDS
1] Secured Loans		139.752	233.913	5.779
2] Unsecured Loans		43.296	31.798	7.832
TOTAL BORROWING		183.048	265.711	13.611
DEFERRED TAX LIABILITIES		8.349	2.845	3.475
TOTAL		1002.979	1005.874	639.347
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		189.878	141.467	134.289
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	2.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	674.968	703.009	332.344
	Sundry Debtors	173.596	108.073	114.469
	Cash & Bank Balances	30.066	31.561	27.273
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	101.054	167.578	99.371
Total Current Assets		979.684	1010.221	573.457
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	147.587	130.459	59.095
	Other Current Liabilities	12.494	11.796	7.716
	Provisions	6.502	3.559	3.588
Total Current Liabilities		166.583	145.814	70.399
Net Current Assets		813.101	864.407	503.058
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1002.979	1005.874	639.347

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2405.800	2178.500	2781.500
		Other Income	145.698	121.348	162.728
		TOTAL	2551.498	2299.848	2944.228
Less	EXPENSES
		Office Expenses	2422.224	2117.302	2758.055
		Administrative Expenses
		Advertising Expenses
		TOTAL	2422.224	2117.302	2758.055
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		129.274	182.546	186.173
Less/ Add	DEPRECIATION/ AMORTISATION		9.041	8.463	7.753
	PROFIT BEFORE TAX		120.233	174.083	178.420
Less	TAX		46.005	59.370	61.761
	PROFIT AFTER TAX		74.228	114.713	116.659
	EARNINGS IN FOREIGN CURRENCY		0.575	0.674	0.351
	Earnings Per Share (Rs.)		3029	4693.00	4718.00

Expected Sales (2011-2012) : Rs.2500.000 Millions

The above information has been parted by Mr. Subodh (General Manager in Marketing)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.90	4.99	3.96
Net Profit Margin (PBT/Sales)	(%)	5.00	8.02	6.41
Return on Total Assets (PBT/Total Assets}	(%)	10.28	15.12	25.21
Return on Investment (ROI) (PBT/Networth)		0.15	0.24	0.29
Debt Equity Ratio (Total Liability/Networth)		0.43	0.56	0.14
Current Ratio (Current Asset/Current Liability)		5.88	6.93	8.15

LOCAL AGENCY FURTHER INFORMATION

Check list by Info Agents	Available in Reports ( Yes/No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitutions of the Firm	Yes
Premises Details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	--
No. of Employees	Yes
Name of person contacted	Yes
Designation of contact person	Yes
Turnover of Firm fort last three years	Yes
Profitability for last three years	Yes
Reasons For Variation<>20%	No
Estimation for coming financial year	Yes
Capital in Business	Yes
Details of Sister Concern	Yes
Major Suppliers	Yes
Major Customers	Yes
Payment Terms	Yes
Export / Import Details (if Applicable)	Yes
Market Information	--
Litigations that the firm / Promoter involved in	--
Banking Details	Yes
Banking Facility Details	No
Conduct of the banking account	--
Buyer visit details	--
Financial, if provided	No
Incorporation details, if applicable	--
Last Account filed at ROC	--
Major shareholder , if available	--

Financial

The company has made a net profit of Rs.120.233 millions (Previous year Rs.174.083 millions) for the year ended 31-03-2011 after depreciation of Rs.9.041 millions (Previous year Rs.8.463 millions), out of which an amount of Rs.46.005 millions (Previous year Rs.59.370 millions) has been provided for Income tax i.e, current tax Rs.40.500 millions plus deferred tax Rs.5.505 millions (Previous year current tax Rs.60.000 millions plus deferred tax Rs(0.630) millions. A sum of Rs.0.046 millions (Previous year Rs.0.103) millions has been paid against Income tax/Wealth tax for previous years. Keeping in view financial needs of the company, no provision for dividend has been made (previous year nil).

After taking into account the balance profit for the last year Rs.702.156 million Profit and Loss account for the year ended 31-03-11 shows a net surplus of Rs.74.264 millions which has been carried forward to Balance Sheet. The Company has made a sale of Rs.2405.800 millions as compared to Rs.2178.500 millions for the last year. The company expects increase in sales as well as in production in the next year.

Contingent liability

• The contingent liability in respect of guarantees issued by Bank is Rs.65.564 millions (Previous year Rs.58.531 millions).

• The contingent liability in respect of demand raised by Income Tax Department is Rs.5.604 millions for Assessment Year 2008-09 (Previous year Rs.44814/- for Assessment Year 2002-03) which is disputed by the company.

• The estimated amount of contracts remaining to be executed on capital account and not provided for is Rs.64.900 millions (Previous year Rs.52.641 millions).

• The contingent Liability in respect of demand raised by Central Excise and Service Tax Department is Rs.10.026 millions for the financial year 2004-05 (Previous year Nil).

• The contingent Liability in respect of demand raised by Commercial Tax Department is Rs.0.117 millions for the financial years 2008-09 & 2010-11 (Previous year Nil).

Trade references

• L and D
• Steel Authority

FORM 8

Corporate identity number of the company	U74899DL1984PTC038783
Name of the company	K L STEELS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Z-18, Naraina, Delhi – 110 028, India Email : fin.gm@klsons.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90331636
Type of charge	Immovable Property Any interest in immovable property Book debts Movable Property (not being pledge)
Particular of charge holder	State bank of Patiala, 10, navyug Market, Ghaziabad – 201 001, Uttar Pradesh, India Email : klsteels@sify.com
Nature of instrument creating charge	Agreement of hypothecation of goods and assets
Date of instrument Creating the charge	23.05.2011
Amount secured by the charge	Rs.330.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: for fbwc @3.75%plus base rate at monthly rest Terms of Repayment: on demand Margin: 25% margin on issuance of Bank Gurantee 25% margin on stocks 50% margin on receivables Extent and Operation of Charge: Rs.330.000 millions only, which comprises of cash credit of Rs. 210.000 millions and bank guarantee of Rs. 120.000 millions Others: monthly stock statements, qis data insurance of stock at company's cost
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of Raw materials, Finished goods, Consumable stores, Book debts, Machinery and other assets and equitable mortgage of Land and building situated at lal kuan bulandshahar road ghaziabad
Date of instrument modifying the charge	08.06.2009
Particulars of the present modification	Amount secured increased from Rs.290.000 millions to Rs.330.000 millions (Cash credit limit Rs.210.000 millions and B.G. limit Rs.120.000) millions (inclusive of sub limit of bill discounting of Rs.50.000 millions within FBWC of Rs.210.000 millions)

Fixed assets:

· Leasehold Land

· Freehold Land

· Building

· Furniture and Fixtures

· Plant, Machinery and Equipments

· Miscellaneous Equipments

· 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 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.52.23
UK Pound	1	Rs.80.84
Euro	1	Rs.66.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		61

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.