MIRA INFORM REPORT

Report Date :

10.03.2012

IDENTIFICATION DETAILS

Name :	PADHAM STEEL ENTERPRISES PRIVATE LIMITED
Registered Office :	228, Hallmark Shopping Complex, Vasant Oscar, L B S Marg, Mulund (West), Mumbai – 400 080, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	23.02.2006
Com. Reg. No.:	11-159977
Capital Investment / Paid-up Capital :	Rs.30.000 Millions
CIN No.: [Company Identification No.]	U27100MH2006PTC159977
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers, Traders and Dealers in all kinds and description of Iron and Steel.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 262724
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 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
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 :	228, Hallmark Shopping Complex, Vasant Oscar, L B S Marg, Mulund (West), Mumbai – 400 080, Maharashtra, India
Tel. No.:	91-22-25905530
Fax No.:	91-22-25616080
E-Mail :	padhamsteel@hotmail.com

DIRECTORS

AS ON 20.07.2011

Name :	Mr. Hanuman Satyanarayan Agarwal
Designation :	Director
Address :	303, Bliss A, Vasant Oscar, LBS Marg, Mulund (West), Mumbai – 400 080, Maharashtra, India
Date of Birth/Age :	13.03.1948
Date of Appointment :	23.02.2006

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	U27100MH2006PTC159977	PADHAM STEEL ENTERPRISES PRIVATE LIMITED	Director	23/02/2006	23/02/2006	-	Active	NO
2	U27310MH2010PTC207225	PSE International Private Limited	Director	30/08/2010	30/08/2010	-	Active	NO

Name :	Mr. Nitin Hanuman Agarwal
Designation :	Director
Address :	304, Bliss A, Vasant Oscar, LBS Marg, Mulund (West), Mumbai – 400 080, Maharashtra, India
Date of Birth/Age :	28.01.1977
Date of Appointment :	23.02.2006

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	U27100MH2006PTC159977	PADHAM STEEL ENTERPRISES PRIVATE LIMITED	Director	23/02/2006	23/02/2006	-	Active	NO
2	U27310MH2010PTC207225	PSE International Private Limited	Director	30/08/2010	30/08/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 20.07.2011

Names of Shareholders	No. of Shares
Hanuman Satyanarayan Agarwal	1005000
Nitin Hanuman Agarwal	5000
Hanuman Satyanarayan Agarwal (HUF)	900
Hanuman Agarwal Joint With Padma Agarwal	164000
Madhuri Gupta Joint With Hanuman Agarwal	100
Nitin Agarwal Joint With Hanuman Agarwal	210000
Padma Agarwal Joint With Hanuman Agarwal	110000
Sangeeta Agarwal joint with Nitin Agarwal	5000
Shailaja Shah	750000
Sonal Shah	750000
Total	3000000

Equity share breakup (percentage of total equity)

AS ON 20.07.2011

Category	Percentage
Directors or relatives of directors	50.00
Other top fifty (50) shareholders	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers, Traders and Dealers in all kinds and description of Iron and Steel.
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

GENERAL INFORMATION

Customers:

• End Users
• OEM’s
• Corporate

Bankers :

Axis Bank Limited, Konark Darshan, Zaver Road, Mulund West - 400080, Maharashtra, India

Facilities :

SECURED LOANS	(AS ON 31.03.2011) RS. IN MILLIONS	(AS ON 31.03.2010) RS. IN MILLIONS
Working capital loans banks secured	82.937	98.688
Loans taken for vehicles secured	0.784	1.494
Loans taken for other fixed assets secured	0.000	0.217
Total	83.721	100.399

Note

(A) ** Cash Credit with Bank is secured against hypotication of stock and book debts and equitable mortgage by deposit of title deeds of two plot sitituated at Kalamboli and office premises and residential flat owned by Director and a Shareholder and some shares of listed companies held by major Shareholders and personal guarantee of Managing and Executive Director.

(B) ** Cash Credit with Bank is secured against hypotication of stock and book debts and equitable mortgage by deposit of title deeds of two plot sitituated at Kalamboli and office premises and residential flat owned by Director and a Shareholder and some shares of listed companies held by major Shareholders and personal guarantee of Managing and Executive Director.

(C) * Car Loan is secured against hypotication of Motor Car.

(D) * Car Loan is secured against hypotication of Motor Car.

UNSECURED LOANS	(AS ON 31.03.2011) RS. IN MILLIONS	(AS ON 31.03.2010) RS. IN MILLIONS
Loans directors unsecured	21.410	38.910
Deposits related parties unsecured	0.000	80.000
Other debt unsecured	0.000	29.096
Total	21.410	148.006

Banking Relations :	--
Auditors :
Name :	Panchand K Shah and Company Chartered Accountant
Address :	203, Shivkrupa Commercial Center, Gokhale Road, Naupada, Thane – 400 602, Maharashtra, India

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 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		30.000	10.000	10.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		35.681	34.399	22.674
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		65.681	44.399	32.674
LOAN FUNDS
1] Secured Loans		83.721	100.399	88.020
2] Unsecured Loans		21.410	148.006	44.700
TOTAL BORROWING		105.131	248.405	132.720
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		170.812	292.804	165.394
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.416	11.765	10.994
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.420	0.301	0.050
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	105.641	137.118	135.612
	Sundry Debtors	116.983	276.739	109.228
	Cash & Bank Balances	30.167	46.907	12.300
	Other Current Assets	1.212	0.184	0.053
	Loans & Advances	21.855	20.900	12.622
Total Current Assets		275.858	481.848	269.815
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	113.796	188.555	111.308
	Other Liabilities	0.472	0.496	0.000
	Provisions	2.673	12.130	4.239
Total Current Liabilities		116.941	201.181	115.547
Net Current Assets		158.918	280.666	154.268
MISCELLANEOUS EXPENSES		0.058	0.070	0.082
TOTAL		170.812	292.804	165.394

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1726.249	1289.639	675.558
		TOTAL INCOME	1726.249	1289.639	675.558
Less	EXPENSES
		TOTAL	NA	NA	670.650
	PROFIT BEFORE TAX		2.698	22.741	4.908
Less	TAX		0.720	8.091	1.740
	PROFIT AFTER TAX		1.978	14.650	3.168
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		14.399	11.674	11.846
Less	APPROPRIATIONS
		Proposed Dividend	0.607	2.500	2.000
		Tax on Distributed Profits	0.089	0.425	0.240
		Transfer to General Reserve	1.000	9.000	1.000
	BALANCE CARRIED TO THE B/S		14.681	14.399	11.774

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	0.16	1.76	0.46
Return on Total Assets (PBT/Total Assets}	(%)	0.94	4.61	1.74
Return on Investment (ROI) (PBT/Networth)		0.04	0.51	0.15
Debt Equity Ratio (Total Liability/Networth)		3.38	10.12	7.59
Current Ratio (Current Asset/Current Liability)		2.35	2.39	2.33

LOCAL AGENCY FURTHER INFORMATION

Form No. 8

Corporate identity number of the company	U27100MH2006PTC159977
Name of the company	PADHAM STEEL ENTERPRISES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	228 Hallmark Shopping Complexvasant Oscar L B S, Marg Mulund West, Mumbai – 400080, Maharashtra, India
This form is for	Modification of charge
Type of charge	Book Debts Others
Particular of charge holder	AXIS BANK LIMITED
Nature of instrument creating charge	Fourth Supplemental Deed Of Hypothecation.
Date of instrument Creating the charge	26/04/2010
Amount secured by the charge	Rs.240.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As Per Sanction Letter & Fourth Supplemental Deed Of Hypothecation. Terms of Repayment As Per Sanction Letter & Fourth Supplemental Deed Of Hypothecation. Margin 10% Upfront In Cash And Kept In Tdr In Bank's Lien Noted Thereon, Guarantees For Disputed Liabilities Will Be Issued Against 100% Cash Margin. Extent And Operation Of The Charge The Charge Will Operate And Extent On All The Current Assets, Both (Existing & Future) Belonging To The Company.
Short particulars of the property charged	All Tangible Movable Machinery, Plant Machinery, Fixture, Fitting Other Installations, Cranes, Furniture, Computer And Other Accessories (Except ) Vechiles Together With Spares,Tools And Other Asseries Lying On Premises At Plot No. 575 and576, Ground Floor, Road No.5, Steel Warehousing Complex,Village Kalamboli, Taluka Panvel, Dist Raigad The Whole Of The Borrowers Movable Goods, Stocks & Assets, Both Present and Future And Including But Without Prejudice To Generallity Of The Forgoings Words All Stocks Of Raw Materials, Wip,Semi Finished Goods, Finished Goods Such As Steel Plates, Sheets, Beams, Angles, Channels ,Packing Material , Consumable Stores And Spares Etc, Whatso Ever Situate And Or In Transit. All The Present and Future Book Debts Outstanding Monies Recevable, Bills, Contracts, Engagements, Securities Which Are Now Due & Owing Which May Hereafter During The Continuanace Of This Security Become Due And Owing Become Due & Owing To The Borrower.
Particulars of the present modification	By This Present Modification Adhoc Bank Guarantee Of Rs.30.000 Millions Is Granted And The Total Amount Of Charge Increased To Rs.250.000 Millions.

Fixed Assets

· Leasehold Land

· Building

· Plant and Machinery

· Computer

· Furniture and Fixture

· Motor 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.50.01
UK Pound	1	Rs.79.00
Euro	1	Rs.66.17

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		29

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.