MIRA INFORM REPORT

Report Date :

03.03.2012

IDENTIFICATION DETAILS

Name :	GOPAL IRON AND STEEL COMPANY (GUJARAT) LIMITED
Registered Office :	1401/2, G.I.D.C. Kerala Industrial Estate, Bavla Bagodara N.H.No.8A, Taluka Bavla, District Ahmedabad - 382 220, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.08.1994
Com. Reg. No.:	04-022876
Capital Investment / Paid-up Capital :	Rs.49.171 Millions
CIN No.: [Company Identification No.]	L27101GJ1994PLC022876
PAN No.: [Permanent Account No.]	AAACG7013L
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Iron and Steel Items
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (33)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 440000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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 :	1401/2, G.I.D.C. Kerala Industrial Estate, Bavla Bagodara N.H.No.8A, Taluka Bavla, District Ahmedabad - 382 220, Gujarat, India
Tel. No.:	91-2714-268465 / 268268
Fax No.:	91-2714-268365
E-Mail :	anish_shahcs@yahoo.com info@gopaliron.com
Website :	www.gopaliron.com
Corporate Office :	1301-2, Phase - III, G.I.D.C. Vatva Industrial Estate, Vatva, Ahmedabad - 382 445. Gujarat, India
Tel. No.:	91-79-25830475 / 25830558
E-Mail :	gisco_guj@yahoo.in

DIRECTORS

As on 31.03.2011

Name :	Mr. Bhaveshbhai Gopalbhai Patel
Designation :	Chairman and Managing Director
Address :	C-301, Regency Tower, Behind Management Enclave, Vastrapur, Ahmedabad, Gujarat, India
Date of Appointment :	25.08.1994
Name :	Mr. Prabhubhai L. Patel
Designation :	Director
Address :	A-6, Navrang Flats, Behind Swaminarayan Tower, Maninagar, Ahmedabad, Gujarat, India
Date of Appointment :	25.08.1994
Name :	Mrs. Ashlesha K. Shah
Designation :	Director
Address :	G-701, Shabri ,1st Floor, Opposite Management Enclave, Vastrapur, Ahmedabad, Gujarat, India
Date of Appointment :	01.10.2008
Name :	Mr. Darshan D. Patel
Designation :	Director
Address :	B- 12, Ramkrishna Society,Thakkarbapanagar, Bapunagr, Ahmedabad, Gujarat, India
Date of Appointment :	01.01.2006
Name :	Mr. Ghanshyam N. Patel
Designation :	Director
Address :	205, 2^nd Flr., Murdhanya Flats, Nr. Cadila Bridge, Ghodasar, Ahmedadad, Gujarat, India
Date of Appointment :	01.01.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2011

Category of shareholders	No. of Shares	Percentage
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2,194,300	44.63
Sub Total	2,194,300	44.63
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	2,194,300	44.63
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	423,634	8.62
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	740,300	15.06
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1,500,466	30.52
Any Others (Specify)	58,400	1.19
Non Resident Indians	58,400	1.19
Sub Total	2,722,800	55.37
Total Public shareholding (B)	2,722,800	55.37
Total (A)+(B)	4,917,100	100.00
C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	4,917,100	-

BUSINESS DETAILS

Line of Business :

Manufacturer of Iron and Steel Items

Products :

Product Description	Item Code No. ITC Code
Bars, Channels, Angles, Flats	721650

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Structural Steel	MT	Not Applicable	30000	8692.71

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Punjab National Bank, Vanijya Bhawan Branch, Kankaria, Ahmedabad - 380 022, Gujarat, India

· ICICI Bank Limited

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working Capital Loan from Bank (Secured by first charge on Stocks and Book debts present and future and first charge on immovable fixed assets both present and future save and except asset acquired under Hire Purchase agreement)	97.998	81.278
Term Loan from Bank for Tube Mill Project (Punjab National Bank) (Secured by first charge on all Plant and Machinery, Wind Mill and movable and immovable fixed assets both present and future save and except asset acquired under Hire Purchase agreement) (Amount repayable in next 12 months Rs. Nil)	25.862	0.000
Hire Purchase Loan from ICICI Bank Limited (Secured against hypothecation of Motor Car acquired under Hire Purchase Agreement) (Amount repayable in next 12 months Rs. 0.279 Millions)	0.656	0.276
Term Loan from Bank (Punjab National Bank) (Secured by first charge on Wind Mill and on movable and immovable fixed assets save and except asset acquired under Hire Purchase agreement)	0.000	3.551
Term Loan from Bank (Punjab National Bank) (Secured by first charge on all Fixed Assets acquired under modernization programme and on movable and immovable fixed assets save and except asset acquired under Hire Purchase agreement)	0.000	1.080
Total	124.516	86.185
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Directors	2.049	2.889
From Others	14.611	0.000
Total	16.660	2.889

Banking Relations :	--
Auditors :
Name :	Jigar S. Shah and Company Chartered Accountants
Address :	Near R.C. Patel High School, Ahmedabad, Gujarat, India
PAN.:	ABHPS8800L

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs.60.000 Millions

Issued and Subscribed Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs.60.000 Millions

Paid-up Capital

No. of Shares	Type	Value	Amount
4917100	Equity Shares	Rs.10/- each	Rs.49.171 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		49.171	49.649	49.649
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		59.926	54.881	48.480
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		109.097	104.530	98.129
LOAN FUNDS
1] Secured Loans		124.516	86.185	72.009
2] Unsecured Loans		16.660	2.889	6.525
TOTAL BORROWING		141.176	89.074	78.534
DEFERRED TAX LIABILITIES		17.054	18.048	18.640
TOTAL		267.327	211.652	195.303
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		81.066	86.184	88.142
Capital work-in-progress		29.538	0.000	0.000
INVESTMENT		0.050	0.050	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	72.247	56.896	56.167
	Sundry Debtors	60.212	55.351	60.042
	Cash & Bank Balances	0.637	1.275	7.216
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	29.528	13.449	10.589
Total Current Assets		162.624	126.971	134.014
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.252	0.000	1.763
	Other Current Liabilities	0.000	0.000	22.442
	Provisions	2.699	1.553	2.648
Total Current Liabilities		5.951	1.553	26.853
Net Current Assets		156.673	125.418	107.161
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		267.327	211.652	195.303

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	438.903	691.213	505.386
		Other Income	2.904	0.995	1.803
		TOTAL (A)	441.807	692.208	507.189
Less	EXPENSES
		Manufacturing Expenses	412.036	642.696	479.989
		Employee remuneration and benefits	11.608	10.723	7.809
		Administrative and Selling Expenses	7.378	9.012	7.312
		(Increase)/Decease in Stock	(14.347)	5.670	(6.802)
		TOTAL (B)	416.675	668.101	488.308
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		25.132	24.107	18.881
Less	FINANCIAL EXPENSES (D)		13.167	10.897	12.010
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		11.965	13.210	6.871
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.889	5.955	5.763
Less	EXTRA ORDINARY ITEMS		0.000	0.213	0.244
	PROFIT BEFORE TAX (E-F) (G)		6.076	7.042	0.864
Less	TAX (H)		1.032	0.641	0.272
	PROFIT AFTER TAX (G-H) (I)		5.044	6.401	0.592
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		53.881	47.480	46.888
	BALANCE CARRIED TO THE B/S		58.925	53.881	47.480
	Earnings Per Share (Rs.)		1.03	1.28	0.12

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011
Type	1^st Quarter	2^nd Quarter
Net Sales	55.490	53.330
Total Expenditure	50.980	52.360
PBIDT (Excl OI)	4.510	0.970
Other Income	0.110	0.280
Operating Profit	4.620	1.250
Interest	2.670	1.200
Exceptional Items	0.000	0.000
PBDT	1.960	0.050
Depreciation	1.510	1.510
Profit Before Tax	0.450	(1.460)
Tax	0.140	0.000
Provisions and contingencies	0.000	0.000
Profit After Tax	0.310	(1.460)
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	0.310	(1.460)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.14	0.92	0.12
Net Profit Margin (PBT/Sales)	(%)	1.38	1.02	0.17
Return on Total Assets (PBT/Total Assets}	(%)	2.49	3.30	0.39
Return on Investment (ROI) (PBT/Networth)		0.06	0.07	0.01
Debt Equity Ratio (Total Liability/Networth)		1.35	0.87	1.07
Current Ratio (Current Asset/Current Liability)		27.33	81.76	4.99

LOCAL AGENCY FURTHER INFORMATION

Operations:

During the current year the company has achieved a reasonable level of growth in spite of whole world was hit by biggest and largest financial crisis in the history. During the year company has decided to go for expansion project and after commissioning of the same we are hoping that the phenominal growth shall be achieved during the next coming years.

Contingent Liabilities (As on 31.03.2011) :

(a) Estimated amount of contracts yet to be executed on capital account and not provided for Rs. 63.963 Millions (Rs. 10.000 Millions) and against this liability an advance of Rs. 16.871 Millions (Rs. Nil).

(b) Income Tax Authorities have raised demand aggregating Rs. 25.608 Millions (Rs. 24.218 Millions) for the assessment years 1996-1997, 1997-1998 and 2008-2009 which has been disputed by the Company, as it is of the opinion that the same shall be quashed in the appeal preferred by the company. Hence no provision for this disputed Income Tax demand has been made.

(c) Sales Tax Authorities have raised demand aggregating Rs. 2.911 Millions (Rs. 2.911 Millions) for the financial year 2002-2003 which has been disputed by the Company, as it is of the opinion that the same shall be quashed in the appeal preferred by the company. Hence no provision for this disputed Sales Tax demand has been made.

(d) Central Excise Authorities have raised demand aggregating Rs. 3.353 Millions (Rs. Nil) for the financial year 1998-1999 and 1999-2000 which has been disputed by the Company, as it is of the opinion that the same shall be quashed in the appeal preferred by the company. Hence no provision for this disputed Central Excise demand has been made.

Bankers Charges Report as per Registry

Corporate identity number of the company	L27101GJ1994PLC022876
Name of the company	GOPAL IRON AND STEELS COMPANY (GUJARAT) LIMITED
Address of the registered office or of the principal place of business in India of the company	1401/2, GIDC Kerala Industrial Estate, Taluka Dholka, Ahmedabad - 382220, Gujarat, India E-mail : anish_shahcs@yahoo.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80036443
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	Punjab National Bank, Vanijya Bhawan Branch, Kankaria, Ahmedabad - 380 022, Gujarat, India E-mail : pnbvbamd@rediffmail.com
Nature of instrument creating charge	Supplemental Hypothecation Agreement
Date of instrument Creating the charge	22.08.2009
Amount secured by the charge	Rs.128.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 1. Cash Credit Facility-BPLR+1% p.a.i.e.12% Presently 2. T. L-I - Rs. 28.000 Millions BPLR minus 0.75%.Penal Int. 2% 3. T.L.-II -Rs. 12.000 Millions - BPLR+1.5% + term premia i.e. 0.50% p.a. Terms of Repayment Term Loan-I- by 16 Qtrly installments of Rs.1.750 Millions each to come after six months after the date of first disbursement or October 2006 onwards Term Loan-II- in 36 monthly installments of Rs. 0.334 Millions each commencing from October 2007. Int. charged in the moratorium period is to be serviced as and when levied. Margin C.C. LIMIT- 25% for Stock, 50% for spares and 50% for Book Debts. Term Loan-II- 25% minimum Extent and Operation of the charge Credit Facility increased from Rs 65.000 Millions to Rs. 88.000 Millions. (being Rs. 23.000 Millions converted from NFB limit to FB limit) by way of Supplemental Hypothecation Agreement
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All the Tangible movable machinery and plant pertaining to the 600KVA Wind Mill Project together with spares, tools and accessories and other movables both present and future and the furniture. The whole of the Company's Stock, both present and future, raw materials, work in process, semi finished and finished goods wheresoever’s stored or in transit. All the present and future Book Debts, outstanding, monies receivables, claims, bills, contracts, engagements and securities due or owing. All the tangible movable machinery plant of the Company together with spares, tools, accessories and other movable both present and future and the furniture, Fixtures and fittings and the office equipment whether installed or not and whether lying loose or in cases which are now lying or stored in or about Co.'s premises and godowns at Plot No.1401/2,GIDC Kerala Industrial Estate, N.H.No.8,Taluka Dholka, Ahmedabad, Gujarat, India
Date of instrument modifying the charge	30.08.2007
Particulars of the present modification	Bank granted additional credit facilities of Rs.23.000 Millions by way of Cash Credit Hypothecation limit ( non fund base Limit of Rs. 23.000 Millions converted into Fund base limit) Total credit Facilities to given by bank as under. C.C. Limit Rs. 88.000 Millions + Sub limit- (Rs. 22.000 Millions)+ Term Loan-I -Rs. 28.000 Millions + Term Loan-II- Rs.12.000 Millions = Rs. 128.000 Millions

Fixed Assets:

· Land (Lease Hold)

· Furniture and Fixtures

· Office Equipment

· Electric Installation

· Plant and Machinery

· Vehicles

· Factory Building

· Other Building

· Wind Mill

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.49.35
UK Pound	1	Rs.78.68
Euro	1	Rs.65.63

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		33

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.