MIRA INFORM REPORT

Report Date :

01.06.2012

IDENTIFICATION DETAILS

Name :	ARORA IRON AND STEEL ROLLING MILLS PRIVATE LIMITED
Registered Office :	Near Phase VII Focal Point, Dharndari Khurd, Ludhiana – 141010, Punjab
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.08.1995
Com. Reg. No.:	16-16953
Capital Investment / Paid-up Capital :	Rs.25.521 Millions
CIN No.: [Company Identification No.]	U27109PB1995PTC016953
TAN No.: [Tax Deduction & Collection Account No.]	JLDA00882A / JLDA01570C
PAN No.: [Permanent Account No.]	AABCA45111E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of a Comprehensive range of Iron and Steel Products like Ingots, Rounds, Bars, Flats, Squares etc.
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 650000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. 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

LOCATIONS

Registered Office :	Near Phase VII Focal Point, Dharndari Khurd, Ludhiana-141010, Punjab, India
Tel. No.:	91-161-2674055/ 5085403/ 4680901
Fax No.:	91-161-2677454
E-Mail :	mschandok@rediffmail.com

DIRECTORS

(AS ON 30.09.2011)

Name :

Mr. Raminder Pal Singh

Designation :

Director

Address :

26 A, Sant Fateh Singh Nagar, Ludhiana – 141002, Punjab, India

Date of Birth/Age :

17.03.1976

Date of Appointment :

02.11.2004

DIN No.:

00788677

Name :

Mr. Amarjit Singh Chawla

Designation :

Director

Address :

249, Shaheed Udham Singh Nagar, Jalandhar – 141002, Punjab, India

Date of Appointment :

21.09.2004

DIN No.:

02432373

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	U27106PB1990PTC010618	K A FERRO ALLOYS PRIVATE LIMITED	Director	9/8/1990	9/8/1990	1/2/2010	Active	NO
2	U27204PB1992PTC012798	BHAWANI SHANKAR CASTING PRIVATE LIMITED	Director	11/5/2001	11/5/2001	-	Active	NO
3	U27109PB1995PTC016953	ARORA IRON AND STEEL ROLLING MILLS PRIVATE LIMITED	Director	21/09/2004	21/09/2004	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Amarjit Singh Chawla	189800
Amarjit Singh and Sons (HUF) Through Amarjit Singh Karta	20000
Gurpreet Kaur	17500
Ganganjot Singh Chawla	21300
Harvinder Singh Chawla	25000
Harminder Pal Singh	100000
Kirpal Singh Chawla	20000
Mohinder Bir Singh	342500
Parmeet Kaur	21400
Raminder Pal Singh	58600
K. A. Ferro Alloys (Private) Limited, India	1200000
Pronto Steerings Limited, India	500000
Mukhmohan Singh	3000
Upjeet Singh	4000
Raminder Pal Singh (HUF)	29000
Total	2552100

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Bodies corporate	66.61
Directors or relatives of directors	33.39
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of a Comprehensive range of Iron and Steel Products like Ingots, Rounds, Bars, Flats, Squares etc.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Punjab National Bank

Chowk Sudan, Jalandhar – 144001, Punjab, India

· Punjab National Bank

G T Road, Jalandhar – 144001, Punjab, India

· ICICI Bank Limited

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans banks secured	15.044	6.482
Working capital loans banks secured	35.231	35.087
Loans taken for other fixed assets secured	14.311	7.608
Total	64.586	49.177
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Loans taken for vehicles unsecured	3.714	1.483
Other debt unsecured	49.547	13.308
Total	53.261	14.791

Banking Relations :	--
Auditors :
Name :	M. S. Chandok and Company Chartered Accountant
Address :	71, Guru Nanak Dev Market, Gill Road, Ludhiana-141003, Punjab, India
Tel. No.:	91-161-2534082/ 2540179
Residential No.:	91-161-2402623
Fax No.:	91-161-2540178
Email :	ABGPC2136E

CAPITAL STRUCTURE

(AS ON 30.09.2011)

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
2552100	Equity Shares	Rs.10/- each	Rs.25.521 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		25.521	16.395	7.395
2] Share Application Money		1.470	1.875	1.875
3] Reserves & Surplus		134.618	76.450	26.090
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		161.609	94.720	35.360
LOAN FUNDS
1] Secured Loans		64.586	49.177	37.063
2] Unsecured Loans		53.261	14.791	23.651
TOTAL BORROWING		117.847	63.968	60.714
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		279.456	158.688	96.074
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		151.234	112.383	86.768
Capital work-in-progress		0.000	0.000	4.884
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	147.407	97.707	55.501
	Sundry Debtors	515.488	295.252	223.806
	Cash & Bank Balances	19.710	11.076	17.878
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	30.065	27.915	22.871
Total Current Assets		712.670	431.950	320.056
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	486.405	313.622	289.543
	Other Current Liabilities	81.749	61.176	19.252
	Provisions	16.294	10.847	6.839
Total Current Liabilities		584.448	385.645	315.634
Net Current Assets		128.222	46.305	4.422
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		279.456	158.688	96.074

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		TOTAL	2845.814	1742.459
Less	EXPENSES
		TOTAL	2812.151	1721.805
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		33.663	20.654
Less/ Add	DEPRECIATION/ AMORTISATION		4.715	3.595
	PROFIT BEFORE TAX		28.948	17.059
Less	TAX		7.450	2.700
	PROFIT AFTER TAX		21.498	14.359
	Earnings Per Share (Rs.)		8.42	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.76	0.82	NA
Return on Total Assets (PBT/Total Assets}	(%)	3.36	3.13	NA
Return on Investment (ROI) (PBT/Networth)		0.18	0.18	NA
Debt Equity Ratio (Total Liability/Networth)		4.35	4.75	10.64
Current Ratio (Current Asset/Current Liability)		1.22	1.12	1.01

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of Contact person	No
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-----
Estimation for coming financial year	No
Capital in the business	Yes
Details of sister concerns	No
Major Suppliers	No
Major Customers	No
Payments Terms	No
Export/ Imports Details (If applicable)	No
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	Yes

FINANCIAL RESULTS

During the year 2010.11 The Directors achieved a record production. The company produced 62124.839 M.T. of M. S. Round both of Alloy and Non-Alloys steel as against a production of 47296.42 M.T. of same item. This shows an increase of 31.35% over the previous year. Last year also The Directors had achieved a record production with 32.75 % increase. Besides The company also produced 5060.575 M.T. of M. S. Rolls. Thus overall production during the year is 67185.414 M.T. which can be considered as the Maximum production so far made by the company. The Turnover of the company jumped from Rs.1742.459 Millions to Rs. 2845.814 Millions i.e. an increase of approx. 63.32 %. These results could be achieved just because of hard work, sincerity and dedication of the Directors and more over the cooperation, advice and the whole hearted financial and moral support Profit before depreciation during the year is Rs. 33.663 Millions as against Similar profit of Rs.20.654 Millions. The Net Profit after Depreciation and I. Tax prov. is Rs.21.498 Millions.

The Directors feel proud in informing that necessary steps are being taken to set up a project of installation of 30.00 M .T. Arc/ Induction furnace in the existing premises of the company Necessary Clearances from various Dept’s have already been obtained and rest are being applied for.

FORM 8:

This form is for	Creation of charge
Corporate identity number of the company	U27109PB1995PTC016953
Name of the company	ARORA IRON AND STEEL ROLLING MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Near Phase VI Focal Point, Dharndari Khurd, Ludhiana-141010, Punjab, India cpholders@hotmail.com
Type of charge	Immovable property Movable property (not being pledge)
Particular of charge holder	· Punjab National Bank G T Road, Jalandhar – 144001, Punjab, India bo3511@pnb.co.in
Nature of description of the instrument creating or modifying the charge	Term Loan Agreement dated 29.9.2010
Date of instrument Creating the charge	29/09/2010
Amount secured by the charge	Rs.20.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest Base Rate + 4.50% + 0.5% (TP) -0.5% subject of credit risk rating of the Company. Terms of Repayment 60 equal monthly installments of Rs 3,33,000- each along with interest w.e.f. October, 2010 Margin Nil Extent and Operation of the charge 100%
Short particulars of the property charged	EM of plot measuring 5 Kanals and 17 marlas comprised in title deed no 9733 dt 15.2.1990 at Sanjay Gandhi Nagar, Jalandhar EM of Factory Land and Building measuring 36 Kanals comprised in four title deeds situated at Vill Dhandari Khurd, Near Phase VII, Focal Point Ludhiana All assets forming part of Block of Fixed Assets of the Company

FIXED ASSETS:

· Land

· Machinery

· Weigh Bridge

· Electric Fittings

· Factory Building

· Computer

· Generator

· Tempo

· Furniture and Fixtures

· Mobile Phone

· Scooter

· A.P.C.D.

· Car

· Measuring/ Testing Equipments

· Fax

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.55.58
UK Pound	1	Rs.87.14
Euro	1	Rs.69.73

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	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.