MIRA INFORM REPORT

Report Date :

02.07.2012

IDENTIFICATION DETAILS

Name :	SHILPA STEEL AND POWER LIMITED (w.e.f.15.10.2011)
Formerly Known As :	SHILPA STEEL AND POWER PRIVATE LIMITED (w.e.f.31.05.2011) SHILPA RE-ROLLERS POWER PRIVATE LIMITED
Registered Office :	1,2,3, and 4, Wanjra Layout, Kamptee Road, Nagpur – 440026, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	28.01.1988
Com. Reg. No.:	11-046038
Capital Investment / Paid-up Capital :	Rs.9.990 Millions
CIN No.: [Company Identification No.]	U27100MH1988PLC046038
TAN No.: [Tax Deduction & Collection Account No.]	NGPS00753E
PAN No.: [Permanent Account No.]	AABCS8627D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Supplier of Galvanized Steel Structures and Hot Rolled Steel Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 3700000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having good track records. Financially company seem to be strong. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered for normal 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

LOCATIONS

Registered Office Factory 1 :	1,2,3, and 4, Wanjra Layout, Kamptee Road, Nagpur – 440026, Maharashtra, India
Tel. No.:	91-712-2640060/61/5/2640097
Fax No.:	91-712-2640097
E-Mail :	shilpa_ngp@shilparl.com Marketing: (TLT)    marketing@shilparl.com (Steel) shilpa_ngp@shilparl.com Other Contacts: qualitytl@shilparl.com purchase@shilparl.com accounts@shilparl.com careers@shilparl.com
Factory 2 :	B 209, MIDC Industria Area, Butibori, Nagpur – 441108, Maharashtra, India
Tel. No.:	91-7104-265544/265545
Fax No.:	91-7104-265657

DIRECTORS

As on 29.09.2011

Name :

Mr. Krishna Kumar Bagaria

Designation :

Managing Director

Address :

2, Surana Layout Vijay Nagar, Nagpur – 440013, Maharashtra, India

Date of Birth/Age :

23.01.1951

Date of Appointment :

28.01.1988

DIN No.:

00515846

Name :

Mrs. Saraswari Devi Bagaria

Designation :

Director

Address :

Surana Layout Vijay Nagar, Nagpur – 440013, Maharashtra, India

Date of Birth/Age :

16.09.1953

Date of Appointment :

28.01.1988

DIN No.:

00515906

Name :

Mr. Karan Bagaria

Designation :

Director

Address :

2, Surana Layout Vijay Nagar, Nagpur – 440013, Maharashtra, India

Date of Birth/Age :

10.11.1981

Date of Appointment :

01.04.2005

DIN No.:

00602948

Name :

Mrs. Shilpa Poddar

Designation :

Additional Director

Address :

6C, Singhi Park, 48/3, Gariahat Road, Kolkata – 700019, West Bengal, India

Date of Birth/Age :

21.05.1977

Date of Appointment :

31.03.2012

DIN No.:

01227879

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	U51109WB1996PTC076588	MAHAK COMMERCIAL PRIVATE LIMITED	Director	1/07/2005	1/07/2005	-	Active	NO
2	U51909WB1994PTC066402	AKSHITA COMMERCIAL PRIVATE LIMITED	Director	17/02/2010	17/02/2010	-	Active	NO
3	U27320WB2011PTC158654	APS FUELS PRIVATE LIMITED	Director	9/02/2011	9/02/2011	-	Active	NO
4	U27100MH1988PLC046038	SHILPA STEEL AND POWER LIMITED	Additional director	31/03/2012	31/03/2012	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
Krishna Kumar Bagaria	681920
Saraswari Devi Bagaria	292080
Silpa Pddar Bagaria	2500
Karan Bagaria	22500
Sudhir D Thengdi	10
Khusbu Bagaria	10
Sharad Seth	10
Anurag Paddar	10
Total	999040

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Supplier of Galvanized Steel Structures and Hot Rolled Steel Products.
Products :	ITC Product	Product Description
	NA	Steel Rolling
	722,620	Hot Rolled Product

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Industrial Finance Branch, 5-Sai Complex, Bharat Nagar, Nagpur – 440033, Maharashtra, India

Facilities :

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	0.000	46.658
Working capital loans banks secured	556.243	594.648
Total	556.243	641.306
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Loans directors unsecured	69.937	77.524
Deferred sales tax loan unsecured	38.909	38.909
Other debt unsecured	22.815	21.140
Total	131.661	137.573

Banking Relations :	--
Auditors :
Name :	Loya Bagri and Associates Chartered Accountants
Address :	Popular Market, Gandhibagh, Nagpur - 440002, Maharashtra, India
PAN.:	AAAFL2607C

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
999040	Equity Shares	Rs.10/- each	Rs.9.990 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		9.990	9.990	9.990
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		924.257	767.159	633.413
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		934.247	777.149	643.403
LOAN FUNDS
1] Secured Loans		556.243	641.306	407.206
2] Unsecured Loans		131.661	137.573	131.435
TOTAL BORROWING		687.904	778.879	538.641
DEFERRED TAX LIABILITIES		28.473	35.366	28.904
TOTAL		1650.624	1591.394	1210.948
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		416.272	464.833	430.393
Capital work-in-progress		0.000	0.000	2.652
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	736.298	726.848	449.507
	Sundry Debtors	496.531	362.842	245.006
	Cash & Bank Balances	10.109	9.621	9.239
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	184.995	210.292	251.949
Total Current Assets		1427.933	1309.603	955.701
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	95.922	112.613	91.282
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	97.659	70.429	86.515
Total Current Liabilities		193.581	183.042	177.797
Net Current Assets		1234.352	1126.561	777.903
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1650.624	1591.394	1210.948

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	3069.689	2269.474	3202.554
		Other Income	33.314	43.397	NA
		TOTAL (A)	3103.003	2312.871	NA
Less	EXPENSES
		Consumption material changes inventories	2364.838	1697.007	NA
		Manufacturing services costs	177.750	143.291	NA
		Employee related expenses	79.664	60.642	NA
		Administrative selling other expenses	40.137	38.827	NA
		TOTAL (B)	2662.389	1939.767	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		440.614	373.104	470.509
Less	FINANCIAL EXPENSES (D)		138.943	105.297	128.233
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		301.671	267.807	342.276
Less/ Add	DEPRECIATION/ AMORTISATION (F)		66.242	64.247	28.083
	PROFIT BEFORE TAX (E-F) (G)		235.429	203.560	314.193
Less	TAX (H)		78.330	69.814	106.620
	PROFIT AFTER TAX (G-H) (I)		157.099	133.746	207.573
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		154.824	21.078	413.505
	APPROPRIATIONS
		Transfer to General Reserve	NA	NA	600.000
	BALANCE CARRIED TO THE B/S		211.923	54.824	21.078
		Capital Goods	NA	NA	66.267
	TOTAL IMPORTS		NA	NA	66.267
	Earnings Per Share (Rs.)		157.26	133.88	207.78

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.06	5.78	NA
Net Profit Margin (PBT/Sales)	(%)	7.67	8.97	NA
Return on Total Assets (PBT/Total Assets}	(%)	16.49	15.54	32.88
Return on Investment (ROI) (PBT/Networth)		0.35	0.26	0.49
Debt Equity Ratio (Total Liability/Networth)		0.94	1.24	1.11
Current Ratio (Current Asset/Current Liability)		7.38	7.15	5.38

LOCAL AGENCY FURTHER INFORMATION

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	--
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

FINANCIAL PERFORMANCE:

The company posted another year of impressive results testifying to the robustness of the corporate strategy of creating multiple drivers of growth. The company recorded a Net Profit after tax Rs.157.099 Millions during the year as against a Net Profit of Rs.133.746 Millions during the previous financial year. In the years to come the company is looking forward to give to its valuable shareholders continued growth and profits.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U27100MH1988PLC046038
Name of the company	SHILPA STEEL AND POWER LIMITED
Address of the registered office or of the principal place of business in India of the company	1,2,3, and 4, Wanjra Layout, Kamptee Road, Nagpur – 440026, Maharashtra, India Email: shipla_ngp@shilparl.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90243791
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	State Bank of India, Industrial Finance Branch, 5-Sai Complex, Bharat Nagar, Nagpur – 440033, Maharashtra, India Email: lakshman.mahto@sbi.co.in
Nature of instrument creating charge	1. Supplemental agreement of hypothecation of goods and assets for increase in the overall limit. 2. Letter regarding the grant of individual limits within the overall limit.
Date of instrument Creating the charge	22.03.2012
Amount secured by the charge	Rs.1550.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 3.5% above base rate present effective being 13.5% p.a. with monthly rests. Terms of Repayment Cash credit : on demand Term loan: as per sanction letter. Margin Raw material: 25% Finished goods: 33% Book debts: 40% Letter of credit: 10% Bank guarantee: 10% Extent and Operation of the charge The charge operates as a security on the assets of the company.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of all present and future goods, book debts and other movable assets.
Date of instrument modifying the charge	14.09.2011
Particulars of the present modification	By way present modification, cash credit limit increased from 650.000 Millions to 800.000 Millions and bank guarantees increased from 270.000 Millions to 800.000 Millions. Thus total credit facilities stands at Rs 1550.000 Millions The bifurfication of the above credit facilities stand as under : 1. Cash credit: 800.000 Millions 2. Bank gurantee: 750.000 Millions Total: 1550.000 Millions

Fixed Assets

· Free Hold Agricultural Land

· Lease Hold Factory Land

· Factory Buildings

· Plant and Machineries

· Office Equipments

· Furniture and Fixtures

· Computer Systems

· Cars

· Motor Cycles

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] 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.

s

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.56.30
UK Pound	1	Rs.88.06
Euro	1	Rs.70.90

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		53

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
s71-85	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.