MIRA INFORM REPORT

Report Date :

29.03.2012

IDENTIFICATION DETAILS

Name :	SHRI RATHI STEEL (DAKSHIN) LIMITED (w.e.f. 30.06.2008)
Formerly Known As :	SHRI RATHI STEEL (DAKSHIN) PRIVATE LIMITED
Registered Office :	F-55D, GTB Enclave, Delhi – 110 093
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	13.11.1992
Com. Reg. No.:	55-050960
Capital Investment / Paid-up Capital :	Rs.29.279 millions
CIN No.: [Company Identification No.]	U74899DL1992PLC050960
PAN No.: [Permanent Account No.]	AAACB1192M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of M.S. Bars and allied products.
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 648000
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 :	F-55D, GTB Enclave, Delhi – 110 093, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	accounts-dakshin@shrirathisteelltd.com info@shrirathigroup.com
Website :	http://shrirathigroup.com
Corporate Office	A-29, Sector-65, Noida, Uttar Pradesh, India
Tel. No.:	91-120-4744644
Factory 1 :	SP-A-1, RIICO Industrial Area, Khushkhera, Bhiwadi, District Alwar Rajasthan, India
Tel. No.:	91-1493-250537, 517560/ 63
Fax No.:	91-1493-250536
E-Mail :	accounts-dakshin@shrirathigroup.com
Factory 2 :	Nandrampur Bass Road, Village Alawalpur, The. Dharuhera, District Rewari, Haryana, India
Factory 3 :	Ground Floor, Near Ishra Hotel, Kapashera New Delhi, India

DIRECTORS

As on 27.08.2011

Name :

Mr. Gopal Anil Rathi

Designation :

Director

Address :

24, Sadhna Enclave, New Delhi – 110 017, India

Date of Birth/Age :

26.05.1981

Date of Appointment :

30.09.2004

DIN No.:

00072755

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	U65993DL1992PLC046954	Shri Rathi Steel Limited	Whole-time director	19-12-07	05-07-01	-	Active	NO
2	U65921DL1992PTC047365	Comero Leasing and Financials Private Limited	Director	28-06-03	28-06-03	-	Active	NO
3	U74899DL2001PTC109803	Aakarshan Exports Private Limited	Director	30-01-04	30-01-04	-	Active	NO
4	U74899DL1992PLC050960	Shri Rathi Steel (Dakshin) Limited	Director	30-09-04	30-09-04	-	Active	NO
5	U70109DL2006PTC149346	Dhruv Real Estate Developers Private Limited	Director	31-05-06	31-05-06	-	Active	NO
6	U74899DL2005PTC143442	Indigo Advertising Private Limited	Director	24-06-08	24-06-08	-	Active	NO
7	U51501DL2009PLC186703	Radha Madhav Exim Limited	Director	03-11-09	15-01-09	-	Active	NO
8	U45201DL2006PTC146348	Digvijay Real Estate Developers Private Limited	Director	30-09-09	18-03-09	09-12-11	Active	NO
9	U51909DL2007PTC158856	Hanuman Tradelink Private Limited	Director	15-02-10	15-02-10	-	Active	NO

Name :

Mr. Anil Kumar Gordhan Das Rathi

Designation :

Director

Address :

24, Sadhna Enclave, New Delhi – 110 017, India

Date of Birth/Age :

28.12.1955

Date of Appointment :

30.09.2004

DIN No.:

00072761

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	U65993DL1992PLC046954	Shri Rathi Steel Limited	Director	05-07-01	05-07-01	-	Active	NO
2	U51311DL2004PTC125324	Digvijay Exim Private Limited	Director	22-03-04	22-03-04	19-05-09	Active	NO
3	U74899DL1992PLC050960	Shri Rathi Steel (Dakshin) Limited	Director	30-09-04	30-09-04	-	Active	NO

Name :

Mr. Dhruv Anil Rathi

Designation :

Director

Address :

24, Sadhna Enclave, New Delhi – 110 017, India

Date of Birth/Age :

29.08.1982

Date of Appointment :

30.09.2004

DIN No.:

00072762

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	U65993DL1992PLC046954	Shri Rathi Steel Limited	Director	08-08-03	08-08-03	-	Active	NO
2	U51311DL2004PTC125324	Digvijay Exim Private Limited	Director	22-03-04	22-03-04	19-05-09	Active	NO
3	U74899DL1992PLC050960	Shri Rathi Steel (Dakshin) Limited	Director	30-09-04	30-09-04	-	Active	NO
4	U45201DL2006PTC146348	Digvijay Real Estate Developers Private Limited	Director	06-07-06	06-07-06	18-03-09	Active	NO
5	U70109DL2006PTC149346	Dhruv Real Estate Developers Private Limited	Director	31-05-07	31-05-07	-	Active	NO
6	U32109DL2004PTC126063	Vap Electronics Private Limited	Director	30-09-08	20-08-07	-	Active	NO
7	U28994DL1998PTC093445	Noida Hardware Private Limited	Director	30-09-08	21-03-08	-	Active	NO
8	U74899DL2005PTC143442	Indigo Advertising Private Limited	Director	24-06-08	24-06-08	-	Active	NO

Name :

Kamal Sheel Maheshwari

Designation :

Director

Address :

F-55D, GTB, Enclave, New Delhi – 110 093, India

Date of Birth/Age :

23.01.1954

Date of Appointment :

01.09.2005

DIN No.:

00072764

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U65993DL1992PLC046954	Shri Rathi Steel Limited	Whole-time director	20-12-04	21-11-02	Active	NO
2	U74899DL1992PLC050960	Shri Rathi Steel (Dakshin) Limited	Director	01-09-05	01-09-05	Active	NO

Name :

Mr. Ajay Kumar Malhotra

Designation :

Director

Address :

2/131, UIT Colony , VPO Bhiwadi DT, Alwar – 301 019, Rajasthan, India

Date of Birth/Age :

28.08.1962

Date of Appointment :

21.08.2007

DIN No.:

01795461

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.08.2011

Names of Shareholders	No. of Shares
Anil Rathi	8900
Anil Rathi (HUF)	24000
Gopal Rathi	101700
Dhruv Rathi	63800
Urmil Rathi	270500
Asimit Exports (Private) Limited, India	77000
K.C.M. Leasing and Finance (Private) Limited, India	171000
Shri Sindhuswarna Investments (Private) Limited, India	219200
Murli Manohar Trade (Private) Limited, India	589000
Radhey Tradelink (Private) Limited, India	769760
Neelkanth Tradelink (Private) Limited, India	633000
Total	2927860

As on 27.08.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	83.98
Directors or relatives of directors	16.02
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of M.S. Bars and allied products.
Products :	v M. S. Bars/Services v Miss Roll/ ingot v Scrap

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	2010-11
Installed Capacity	Metric Tons	1,20,000

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Bank of India

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Rupee term loans financial institutions secured	85.000	85.000
Working capital loans banks secured	164.805	185.154
Loans taken for vehicles secured	5.594	4.315
Total	255.399	274.469

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Rupee term loans others unsecured	89.091	83.467
Loans directors unsecured	0.145	0.350
Total	89.236	83.817

Banking Relations :	--
Financial Institution :	Rajasthan State Industrial Development and Investment Corporation Limited, Udyog Bhawan Tilak Marg, Jaipur – 302 005, Rajasthan, India
Auditors :
Name :	A.K. Maheshwari and Associates Chartered Accountants
Address :	Suit # 4G, Uppal’s, M-6, Plaza, Jasola District Centre, New Delhi – 110 025, India
Income-tax PAN of auditor or auditor's firm :	AYDPM1409J
Associates :	v Shri Rathi Steel Limited, India v Vap Electronics Private Limited, India v Radha Madhav Exim Private Limited v Indigo Advertising Private Limited, India v Akarshan Export Private Limited v Shree Nidhi Realtors Private Limited, India

CAPITAL STRUCTURE

As on 27.08.2011

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
2927860	Equity Shares	Rs.10/- each	Rs.29.279 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		29.279	27.279	27.279
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		132.705	110.758	102.651
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		161.984	138.037	129.930
LOAN FUNDS
1] Secured Loans		255.399	274.469	224.933
2] Unsecured Loans		89.236	83.817	72.500
TOTAL BORROWING		344.635	358.286	297.433
DEFERRED TAX LIABILITIES		12.299	8.617	4.593
TOTAL		518.918	504.940	431.956
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		182.001	176.187	185.914
Capital work-in-progress		0.000	0.000	0.269
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	151.383	162.091	93.395
	Sundry Debtors	419.054	356.003	348.247
	Cash & Bank Balances	20.094	9.856	4.586
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	25.409	18.176	21.075
Total Current Assets		615.940	546.126	467.303
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	155.725	175.936	196.954
	Other Current Liabilities	124.734	46.810	20.588
	Provisions	12.619	5.388	4.126
Total Current Liabilities		293.078	228.134	221.668
Net Current Assets		322.862	317.992	245.635
MISCELLANEOUS EXPENSES		14.055	10.761	0.138
TOTAL		518.918	504.940	431.956

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net	3282.700	4022.772	2852.836
		Other Income	1.683	0.577	0.348
		TOTAL (A)	3284.383	4023.349	2853.184
Less	EXPENSES
		Manufacturing service costs	3150.145	3873.245	2773.102
		Administrative selling other expenses	41.080	61.537
		Extraordinary items	(0.050)	0.000
		TOTAL (B)	3191.175	3934.782	2773.102
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		93.208	88.567	80.082
Less	INTEREST FINANCIAL EXPENSES (D)		32.857	32.881	25.498
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		60.351	55.686	54.584
Less/ Add	DEPRECIATION/ AMORTISATION (F)		30.044	33.388	37.456
	PROFIT BEFORE TAX (E-F) (G)		30.307	22.298	17.128
Less	TAX (H)		9.481	7.814	2.326
	PROFIT AFTER TAX (G-H) (I)		20.826	14.484	14.802
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		14.851	8.745	(3.961)
Less	APPROPRIATIONS
		Transfer to General Reserve	2.500	2.000	0.500
		Interim Dividend Paid including Dividend Tax	6.878	4.787	1.596
		Proposed Final Dividend Paid including Dividend Tax		1.591	0.000
	BALANCE CARRIED TO THE B/S		26.299	14.851	8.745
	EARNINGS IN FOREIGN CURRENCY
		Exports on FOB Basis	11.069	0.000	0.000
	TOTAL EARNINGS		11.069	0.000	0.000
	IMPORTS
		Capital Goods	0.000	0.000	0.000
		Stores	0.546	0.000	0.000
		Others	10.346	0.000	0.000
	TOTAL IMPORTS		10.892	0.000	0.000
	Earnings Per Share (Rs.)
	- Basic		7.11	5.31	5.43
	- Diluted		7.45	5.31	5.43

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.63	0.36	0.52
Net Profit Margin (PBT/Sales)	(%)	0.92	0.55	0.60
Return on Total Assets (PBT/Total Assets}	(%)	3.80	3.09	2.62
Return on Investment (ROI) (PBT/Networth)		0.19	0.16	0.13
Debt Equity Ratio (Total Liability/Networth)		3.94	4.25	4.00
Current Ratio (Current Asset/Current Liability)		2.11	2.39	2.11

LOCAL AGENCY FURTHER INFORMATION

BUSINESS OPERATIONS OVERVIEW AND OUTLOOK:

During the year, turnover has dipped in value terms by roughly 15% and by roughly 28% in volume terms due to pressure on realization while operational profit (EBITDA) grew by 6% and profit before tax has grew by 36% from Rs.22.300 millions to 30.300 millions. The higher profitability was achieve by mix of cost cutting measure and strong focus on operational efficiencies. Their efforts to defend their market position in the phase inspite of competitive market needs to be much more assertive to regain the volume growth and market share.

The Directors remain confident of gaining the market share in view of increasing housing demand and infrastructure thrust reinforced by government at Central and state level, demand for their product segment only grows and they keep on matching supply of quality and value added products.

Towards this objective to create niche for theirself, the company has branded its products by the name of EUROTHERM 500 and EUROTHERM 500+. The company has also launched a product under the name “Mera Steel” to cater customized requirement of customers across all segments.

Inspite of logistical needs of such a unique product the company would create niche in the market for itself and add to their market share.

CAPITAL STRUCTURE

During the financial year, the company issued 2 lacs equity shares in two tranches of 1 lacs equity share each having face value of Rs.10 each at a price of Rs.50, including premium of Rs.40 each on private placement basis. The share proceeds were used for strengthening working capital requirement of the company.

CONTINGENT LIABILITIES:

Particulars	31.03.2011 (Rs. in millions)
Towards Bank Guarantee	1.200
Demands raised and disputed towards Excise Duty	7.296
Demands raised and disputed towards Sales Tax / VAT	196.175
Capital Commitments, remaining to be executed and not provided for	0.000
Bills Discounted with Bank	6.574
Letter of Credit Issued	11.050
TOTAL	222.295
(Margin Money Deposit)	3.615

FIXED ASSETS:

v Building

v Temporary Structure

v Computer and Peripherals

v Electric Installation

v Furniture and Fixtures

v Lease Land

v Office equipments

v Plant and Machinery Rolls

v Plant and Machinery

v Vehicles

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.50.92
UK Pound	1	Rs.81.21
Euro	1	Rs.67.85

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	2
--LIQUIDITY	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.