MIRA INFORM REPORT

Report Date :

21.06.2012

IDENTIFICATION DETAILS

Name :	GROW WELL MERCANTILE LIMITED(w.e.f.26.07.2010)
Formerly Known As :	GROW WELL MERCHANT PRIVATE LIMITED
Registered Office :	G-1, Ashirwad Building, Ahemadabad Street Carnac Bunder, Mumbai -400009, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.01.1997
Com. Reg. No.:	11-105234
Capital Investment/ Paid-up Capital:	Rs.44.016 Millions
CIN No.: [Company Identification No.]	U51900MH1997PLC105234
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Trader of CR Coils/Sheets, HR Coils/Sheets and Sponge Iron Lumps
No. of Employees:	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 1110000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. The company has changed its name from ‘Grow Well Merchant Private Limited’ to ‘Grow Well Merchant Limited’ on 26.07.2010 Trade relations are reported as decent. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal fro 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.

INFORMATION DENIED BY

Name :	Mr. Anant Sagar
Designation:	Not Divulged
Date:	20.06.2012

LOCATIONS

Registered Office :	G-1, Ashirwad Building, Ahemadabad Street Carnac Bunder, Mumbai -400009, Maharashtra, India
Tel. No.:	91-22-66361316
Fax No.:	91-22-66361317
E-Mail :	sanjug1984@gmail.com

DIRECTORS

As on 30.9.2011

Name :	Mr. Pankaj Rajkumar Sureka
Designation :	Director
Address :	33, Maker Tower A, Cuffe Parade, Mumbai – 400005, Maharashtra, India
Date of Birth/Age :	25.05.1974
Date of Appointment :	14.10.2005
Din No.:	00209530
Name :	Mr. Jitendra Chunilal Bhanasali
Designation :	Director
Address :	F -203, Dwrakesh L.T. Road, Borivali (W) Mumbai -400092, Maharashtra, India
Date of Birth/Age :	03.02.1943
Date of Appointment :	15.04.2011
Din No.:	00382662
Name :	Mr. Sumeet Ahuja
Designation :	Director
Address :	Shri R.k Floor Mills, Bagadjanj, Nagpur –Ms -440008, Maharashtra, India
Date of Birth/Age :	23.12.1971
Date of Appointment :	01.04.2010
Din No.:	03028958

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.9.2011

Names of Equity Shareholders	No. of Shares
Savita Nair	01
Siddharth Jadhav	01
Anuj Miglani	514999
Ankit Miglani	514999
Archisha Investment Private limited, India	342000
Sanjeev Gupta	249635
Priynak Miglani	27500
Total	1649135

Names of Preference Shareholders	No. of Shares
Archive Reality Developers Private Limited, India	2500000
Ragini Trading Private Limited, India	252500
Total	2752500

As on 30.9.2011

Category	Percentage
Bodies corporate	20.73
Other top fifty shareholders	79.27
Total	100.00

BUSINESS DETAILS

Line of Business :

Trader of CR Coils/Sheets, HR Coils/Sheets and Sponge Iron Lumps

GENERAL INFORMATION

Suppliers :

· Gopani Iron and Power (India) Private Limited

· Lloyds Metals and Engineers Limited

· Lloyds Steel Industries Limited

· Mankalu Trading Limited

· Accurate Shear Engineering Company

· Almas Construction Company

· Amit Tiwari

· Creative Info net

· Creative Infosys

· Dynotech Construction Company

· Mataji Electrical and Hardware Stores

· Dayal Travels

· Deepak Agarwal

Customers :

· Ax Impex Private limited

· Arcellormittal Distribution Solution Private limited

· Ashok Steels

· Delta Iron and Stell Company Private limited

· Executive Trading Company Private limited

· Gopani International Private limited

· H. N Enterprises

· Juneja Sheets Private Limited

· Karnavati Commercial

· Khanna and Company

· Lloyds Steel Industries Limited

No. of Employees :

Not Divulged

Bankers :

Union Bank of India, Bhat Bazar Branch, Anant Deep Chambers, 273/277, Narsi Natha Street, Mumbai – 400009, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
(a) TERM LOAN
Union Bank of India (Secured against hypothecation of land, building and plant and machinery at Taloja)	0.000	108.482
(b) INT/IMPORT L/C A/C
Union Bank of India (Secured against stock under L/C Book debts out of sales)	0.000	18.915
(c) BANK OVERSEAS FACILITY
Union Bank of India	25.030	0.967
Total	25.030	128.364

Banking Relations :	--
Auditors :
Name :	Sonal V. Desai Chartered Accountant
Address :	104, Tuscon, Trikal CHS, Plot No.310, 90 Feet Road, Ghatkopar (East) Mumbai -400075, Maharashtra, India
Pan No.:	AAMPD9246M
Name :	Garg Gros and Associates Chartered Accountant
Address :	203, Skipper Corner 88, Nehru Palace, New Delhi – 110019, Delhi, India
Pan No.:	AACFG0988R

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
12,000,000	Equity Shares	Rs.10/- each	Rs.120.000 Millions
3,000,000	Preference Shares	Rs.10/- each	Rs.30.000 Millions
	Total		Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,649,135	Equity Shares	Rs.10/- each	Rs.16.491 Millions
2,752,500	Preference Shares	Rs.10/- each	Rs.27.525 Millions
	Total		Rs.44.016 Millions

After 30.09.2011

Authorised Capital : Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital : 73.251 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		44.016	41.216	0.100
2] Share Application Money		0.000	0.000	64.100
3] Reserves & Surplus		234.565	166.570	53.460
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		278.581	207.786	117.660
LOAN FUNDS
1] Secured Loans		25.030	128.364	153.445
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		25.030	128.364	153.445
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		303.611	336.150	271.105
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		299.532	310.964	78.261
Capital work-in-progress		3.676	0.000	225.306
INVESTMENT		493.802	446.302	70.002
DEFERREX TAX ASSETS		4.118	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	440.846	273.232	269.333
	Cash & Bank Balances	47.355	57.623	43.866
	Other Current Assets	2.872	0.193	0.439
	Loans & Advances	7.768	97.834	419.719
Total Current Assets		498.841	428.882	733.357
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	407.905	265.879	281.199
	Other Current Liabilities	583.093	583.092	553.305
	Provisions	5.844	1.690	1.949
Total Current Liabilities		996.842	850.661	836.453
Net Current Assets		(498.001)	(421.779)	(103.096)
		.
MISCELLANEOUS EXPENSES		0.484	0.663	0.632
TOTAL		303.611	336.150	271.105

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	892.907	1053.211	1074.526
		Other Income	22.865	8.810	4.102
		TOTAL (A)	915.772	1062.021	1078.628
Less	EXPENSES
		Purchases	850.265	1010.499
		Administrative Expenses	24.546	17.728
		TOTAL (B)	874.811	1028.227	1073.070
					(Including Interest and depreciation)
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		40.961	33.794
Less	FINANCIAL EXPENSES (D)		16.632	23.359
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		24.329	10.435
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.982	9.383
	PROFIT BEFORE TAX (E-F) (G)		13.347	1.052	5.558
Less	TAX (I)		(1.448)	0.205	1.949
	PROFIT AFTER TAX (G-I) (J)		14.795	0.847	3.609
Less	Previous Year Excess Provision Written Off		0.000	0.147	NA
	PROFIT AVAILABLE FOR APPROPRIATION		14.795	0.700	NA
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		54.160	53.460	NA
	BALANCE CARRIED TO THE B/S		68.955	54.160	NA
	Earnings Per Share (Rs.)		3.36	-	-

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.62	0.08	0.33
Net Profit Margin (PBT/Sales)	(%)	1.49	0.10	0.52
Return on Total Assets (PBT/Total Assets}	(%)	1.67	0.14	0.68
Return on Investment (ROI) (PBT/Networth)		0.05	0.01	0.05
Debt Equity Ratio (Total Liability/Networth)		3.67	4.71	8.41
Current Ratio (Current Asset/Current Liability)		0.50	0.50	0.88

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
Promoters background	Yes
No. of Employees	No
Name of Person Contacted	Yes
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 the business	Yes
Details of sister concerns	No
Major Suppliers	Yes
Major Customers	Yes
Payment Terms	No
Export / Import Details [If Applicable]	No
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes

FINANCIAL RESULTS

The Company has earned profit of Rs14.800 Millions during the year

Note : The Registered offices of the company has been shifted from Abhay Steel House, Baroda Street, Carnac Bunder, Mumbai -400009, Maharashtra, India to the present address w.e.f. 07.10.2011

DETAILS OF SUNDRY CREDITORS

Particular (Partial Details)	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors	407.905	265.879	281.199

Sundry Creditors (Partial Details)	31.03.2011	31.03.2010	31.03.2009
Bills Payable	246.037	227.992	0.000
Gopani Iron and Power (India) Private Limited	105.214	0.000	0.000
Lloyds Metals and Engineers Limited	36.791	0.000	0.000
Lloyds Steel Industries Limited	13.499	0.000	0.000
Mankalu Trading Limited	0.000	31.354	0.000
Accurate Shear Engineering Company	0.137	0.137	0.000
Almas Construction Company	0.996	0.000	0.000
Amit Tiwari	0.000	0.011	0.000
Creative Info net	0.012	0.001	0.000
Creative Infosys	0.030	0.000	0.013
Dynotech Construction Company	0.155	0.154	0.154
Mataji Electrical and Hardware Stores	0.004	0.038	0.058
Dayal Travels	0.000	0.055	0.011
Deepak Agarwal	0.000	0.011	0.009

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U51900MH1997PLC105234
Name of the company	GROW WELL MERCANTILE LIMITED
Address of the registered office or of the principal place of business in India of the company	G-1, Ashirwad Building, Ahemadabad Street Carnac Bunder, Mumbai -400009, Maharashtra, India Email: sanjug1984@gmail.com
This form is for	Modification of charge
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	Union Bank Of India, LInd. Fin. Branch, st Floor, 239, Vidhan Bhavan Marg, Nariman Point Mumbai -400021, Maharashtra, India Email: dsjathar@unionbankofindia.com
Nature of description of the instrument creating or modifying the charge	Hypothecation Agreement of Goods and Debts executed by the Company was adjudicated on 24th May 2012 with the Jt. District Registrar & Collector of Stamp, Alibag Dist. Raigad for creating the First charge on Movable Assets of the Company more particularly described in Schedule II of Hypothecation Agreement of Goods and debts annexed hereto to secure the credit facility of Rs.98 Crs granted by Union Bank of India.
Date of instrument Creating the charge	24.05.2012
Amount secured by the charge	Rs.980.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: As stipulated by Union Bank of India vide its sanction letter No: IFB:ADV:PRD:1688:12 dated 20/01/12. Terms of Repayment As stipulated by Union Bank of India vide its sanction letter No: IFB:ADV:PRD:1688:12 dated 20/01/12. Margin As stipulated by Union Bank of India vide its sanction letter No: IFB:ADV:PRD:1688:12 dated 20/01/12. Extent and Operation of the charge: Existing charge in respect of Company's movable assets (as detailed in Schedule II of the annexed Hypothecation Agreement of Goods and debts) is stands extended to secure the revised credit facility of Rs. 98 crores together with all commission, interest, liquidated damages, premia on prepayment cost, charges expenses and other monies payable by the Company to Union Bank of India.
Particulars of the present modification	Existing charge in respect of Company's movable assets (as detailed in Schedule II of the annexed Hypothecation Agreement of Goods and debts) is stands extended to secure the revised credit facility of Rs.980.00 Millions together with all commission, interest, liquidated damages, premia on prepayment cost, charges expenses and other monies payable by the Company to Union Bank of India.

FIXED ASSETS:

· Land

· Factory Building

· Plant and Machinery

· Electric Installation

· Office Premises

· Air Conditioner

· Computer

· Furniture and Fixture

· Office Equipments

· Vehicle

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.55.86
UK Pound	1	Rs.87.93
Euro	1	Rs.70.88

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	BYI

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	6
--MARGINS	-5~5	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		47

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.