MIRA INFORM REPORT

Report Date :

11.07.2012

IDENTIFICATION DETAILS

Name :	RAUNAQ STEELS TRADING PRIVATE LIMITED
Registered Office :	Old No. 24 (New No. 45), 1^st Floor, Venkata Maistry Street, Mannady, Chennai – 600001, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	07.05.2002
Com. Reg. No.:	18-048892
Capital Investment / Paid-up Capital :	Rs.25.000 Millions
CIN No.: [Company Identification No.]	U27109TN2002PTC048892
TAN No.: [Tax Deduction & Collection Account No.]	CHER05160B
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Steel.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 680000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Financial company is performing well. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal business dealings 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 – 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 :	Old No. 24 (New No. 45), 1^st Floor, Venkata Maistry Street, Mannady, Chennai – 600001, Tamilnadu, India
Tel. No.:	91-44-25270182/42971234-70/4425231991
Fax No.:	91-44-25231713
E-Mail :	raunaqsteelacc@gmail.com sales@steelatm.com
Website :	www.raunaqsteels.com www.steelatm.com
Godown:	No. 6 Elanthecherry Village, Manali New Post, Ponner, Chennai - 600103, Tamilnadu, India
Branch Office:	S-6, 2^nd Floor, Classic Plaza, Opposite Saraswathi Parl, Daba Garden, Visakhapatnam – 530020, Andhra Pradesh, India
Tel. No.:	91-891-5518964

DIRECTORS

As on 10.09.2011

Name :

Mr. Sudarshan Kumar Rungta

Designation :

Whole time Director

Address :

24(45) Venkata Maistry Street, Mannady, Chennai – 600001, Tamilnadu, India

Date of Birth/Age :

28.01.1961

Date of Appointment :

07.05.2002

DIN No.:

00664191

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	U27104TN1995PTC030821	BGS STEEL INDUSTRIES PRIVATE LIMITED	Director	05/04/1995	05/04/1995	31/12/2011	Active	NO
2	U27109TN2002PTC048892	RAUNAQ STEELS TRADING PRIVATE LIMITED	Whole-time director	07/05/2002	07/05/2002	-	Active	NO

Name :

Mr. Surendra Kumar Rungta

Designation :

Whole time Director

Address :

45 Venkata Maistry Street, Mannady, Chennai – 600001, Tamilnadu, India

Date of Birth/Age :

11.03.1963

Date of Appointment :

07.05.2002

DIN No.:

00672582

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	U27109TN2002PTC048892	RAUNAQ STEELS TRADING PRIVATE LIMITED	Whole-time director	07/05/2002	07/05/2002	-	Active	NO
2	U27104TN1995PTC030821	BGS STEEL INDUSTRIES PRIVATE LIMITED	Director	25/08/2008	07/01/2008	31/12/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 10.09.2011

Names of Shareholders	No. of Shares
Sudharsan Kumar Rungata	410000
Surendra Kumar Rungata	135000
Leeladhar Rungata	75000
Sarthak Investment and Finance Private Limited, India	150000
Sudarshan Kumar Rungta HUF	20000
Surendra Kumar Rungta HUF	20000
Leeladhar Rungta HUF	50000
Govindram Rungta	205000
Jamuna Devi Rungta	165000
Rajkumari Tulsyan	75000
Raman Kumar Kanodia	20000
Ramnath Tulsyan	40000
Madhu Daga	30000
Roop Kumar Singhania	50000
Puranmal Singhania	120000
Raj Devi Mohata	20000
Rajesh Kumar Singhania	80000
Rashmi Singhania	40000
Kishore Kumar Mohta HUF	40000
Shriniwas Mohata HUF	40000
Suman Mohata	20000
Ram Kishan Mohata HUF	20000
Raunaq Rungta	60000
Ramnath Saraogi	80000
Bina Rungta	20000
Ranjana Rungta	130000
Sarita Rungta	30000
Sajjan Kumar Tulsyan	50000
Saketh Rungta	20000
High Rise Dealers Private Limited, India	285000
Total	2500000

Equity Share Break up (Percentage of Total Equity)

As on 10.09.2011

Category	Percentage
Bodies corporate	17.40
Directors or relatives of Directors	53.60
Other top fifty shareholders	29.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of Steel.
Products :	ITC No	Product Description
	27310	Casting of iron and steel

GENERAL INFORMATION

Customer:

· Afcons

· BGR Energy

· CPCL

· HCC

· Suzlon

· Punj Loyd

· TNPL

No. of Employees :

Not Available

Bankers :

Citi Bank N.A., 163, Anna Salai, Second Floor, Chennai – 600002, Tamilnadu, India

Facilities :

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Working capital loans banks secured	249.882	192.281
Total	249.882	192.281
Secured Loan	As on 31.03.2011	As on 31.03.2010
Loans directors unsecured	7.890	7.411
Other debt unsecured	17.300	25.277
Interest accrued due other debt unsecured	3.340	0.000
Total	28.530	32.688

Banking Relations :	--
Auditors :
Name :	M. Raghunath and Company Chartered Accountants
Address :	A, Stringer Street, III Floor, Broadway, Chennai – 600108, Tamilnadu, India
PAN.:	AABPM5540L

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs.25.000 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		25.000	25.000	25.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		144.600	108.860	81.947
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		169.600	133.860	106.947
LOAN FUNDS
1] Secured Loans		249.882	192.281	123.069
2] Unsecured Loans		28.530	32.688	26.114
TOTAL BORROWING		278.412	224.969	149.183
DEFERRED TAX LIABILITIES		0.000	0.000	0.072
TOTAL		448.012	358.829	256.202
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.520	5.772	6.711
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		4.796	3.628	2.071
DEFERREX TAX ASSETS		0.107	0.010	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	242.483	267.081	145.068
	Sundry Debtors	243.618	147.772	125.510
	Cash & Bank Balances	5.887	12.177	9.893
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	90.081	67.464	52.830
Total Current Assets		582.069	494.494	333.301
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	60.397	57.032	33.335
	Other Current Liabilities	16.730	37.527	16.482
	Provisions	68.353	50.516	36.064
Total Current Liabilities		145.480	145.075	85.881
Net Current Assets		436.589	349.419	247.420
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		448.012	358.829	256.202

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income
		Other Income
		TOTAL (A)	2079.771	1518.423	1740.395
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	2000.642	1456.333	1672.348
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		79.129	62.090	68.047
Less	FINANCIAL EXPENSES (D)		24.509	19.673	15.360
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		54.620	42.417	52.687
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.169	1.229	1.263
	PROFIT BEFORE TAX (E-F) (G)		53.451	41.188	51.424
Less	TAX (I)		17.711	14.276	17872
	PROFIT AFTER TAX (G-I) (J)		35.740	26.912	33.552
	Earnings Per Share (Rs.)		14.30	10.76	13.42

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.72	1.77	1.93
Return on Total Assets (PBT/Total Assets}	(%)	9.18	8.33	15.43
Return on Investment (ROI) (PBT/Networth)		0.32	0.31	0.48
Debt Equity Ratio (Total Liability/Networth)		2.50	2.76	2.20
Current Ratio (Current Asset/Current Liability)		4.00	3.41	3.88

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	Yes
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

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U27109TN2002PTC048892
Name of the company	RAUNAQ STEELS TRADING PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Old No. 24 (New No. 45), 1^st Floor, Venkata Maistry Street, Mannady, Chennai – 600001, Tamilnadu, India Email: raunaqsteelacc@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10044113
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	Citi Bank N.A., 163, Anna Salai, Second Floor, Chennai – 600002, Tamilnadu, India Email: karthikeyan1.j@citi.com
Nature of instrument creating charge	Deed of Modification.
Date of instrument Creating the charge	07.05.2012
Amount secured by the charge	Rs.385.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As may be stipulated by the bank from time to time. Terms of Repayment All facilities are repayable on demand. Margin As agreed from time to time. 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, furnitures and fixtures, etc.) of the Borrower both present and future.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First exclusive charge on the current assets (including stocks and book debts) and movable fixed assets (including plant and machinery, office equipment, furnitures and fixtures, etc.) of the Borrower both present and future.
Date of instrument modifying the charge	21.02.2011
Particulars of the present modification	Enhanced Credit Limit from Rs.200.000 Millions to Rs.385.000 Millions which is an increase of Rs.185.000 Millions

FIXED ASSETS

· Office Equipments

· Motor Vehicles

· Computers

· Crane

· Furniture and Fittings

· Weigh Bridge

· Lorry Eicher

AS PER WEBSITE DETAILS

PROFILE

Subject is promoted by Mr Sudarshan Rungta, a man with more than three decades of experience in the Iron and Steel trade. He is well supported by his dynamic brothers Mr Leeladhar Rungta and Mr Surendra Rungta. The rich experience and hard work of the promoters has made the Company a leader in the Steel trade.

Started in the year 1991 as a proprietary company with a turnover of Rs.3.000 Millions in the name of Raunaq Steel Industries, the company slowly and diligently built up a repertoire of blue chip clients. It has grown in stature to a private limited company with the turnover more than 2250.000 Millions.

They have been providing cost effective and value added services to their customer across India and Abroad. "Their service and product quality standard have won us accolades from a variety of esteem customers, which includes major infrastructure companies, builders and architects." 

They at Subject believe in building relationship and the testimony to this is that their customers continue to remain with us.

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.55.80
UK Pound	1	Rs.86.53
Euro	1	Rs.68.58

INFORMATION DETAILS

Report Prepared by :

KVT

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	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.