MIRA INFORM REPORT

Report Date :

03.05.2012

IDENTIFICATION DETAILS

Name :	PARAMSHAKTI STEELS LIMITED
Registered Office :	304, Ashirwad Building, Ahmedabad Street, Carnac Bunder, Mumbai – 400009, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	31.05.1995
Com. Reg. No.:	11-167801
Capital Investment / Paid-up Capital :	Rs.38.771 Millions
CIN No.: [Company Identification No.]	U65910MH1995PLC167801
TAN No.: [Tax Deduction & Collection Account No.]	PNEP10040C
PAN No.: [Permanent Account No.]	AAFCS7494A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Trader of HR Sheets and Coils.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 1590000
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 :	304, Ashirwad Building, Ahmedabad Street, Carnac Bunder, Mumbai – 400009, Maharashtra, India
Tel. No.:	91-22-23481153/ 23497828
Fax No.:	91-22-23423814
E-Mail :	info@paramshaktisteels.com ankitchoudhary@paramshaktisteels.com
Area :	25560 Sq. mtrs
Location :	Owned
Factory :	A-5, MIDC Taloja, Village Pendhar, District Raigad, Maharashtra, India
Tel. No.:	91-22-27411936/ 37/ 38/ 39
Fax No.:	91-22-27411934
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :

Mr. Umesh Chunilal Jumani

Designation :

Director

Address :

II Floor, Sunder Jeevan Apartment, 530 Clarke Town, Nagpur – 440004, Maharashtra, India

Date of Birth/Age :

15.12.1967

Qualification :

BSC, MBA

Date of Appointment :

11.03.2005

DIN No.:

00092798

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	U67120MH2001PLC133379	ABM SECURITIES LIMITED	Director	10/11/2003	10/11/2003	-	Amalgamated	NO
2	U65910MH1995PLC167801	PARAMSHAKTI STEELS LIMITED	Director	11/03/2005	11/03/2005	-	Active	NO
3	U51909MH2003PTC141769	VIBRANT GLOBAL TRADING PRIVATE LIMITED	Director	4/04/2011	20/04/2006	20/04/2011	Active	NO
4	U45201MH2006PTC163487	VIBRANT GLOBAL INFRAPROJECT PRIVATE LIMITED	Director	2/08/2006	2/08/2006	-	Active	NO
5	U65900MH1995PLC093924	VIBRANT GLOBAL CAPITAL LIMITED	Director	3/08/2006	3/08/2006	-	Active	NO
6	U01110MH1994PLC079739	PRAJIT AGROBASED INDUSTRIES LIMITED	Director	12/12/2006	12/12/2006	-	Amalgamated	NO
7	U65910MH1994PLC081762	VEGA-MART LIMITED	Director	1/11/2008	1/11/2008	-	Amalgamated	NO
8	U65100MH2010PTC207795	VIBRANT GLOBAL BROKING (INDIA) PRIVATE LIMITED	Director	17/09/2010	17/09/2010	-	Active	NO

Name :

Mr. Rajendrakumar Choudhary

Designation :

Director

Address :

702, Sinchan Society, New Link Road, Andheri, Mumbai – 400058, Maharashtra, India

Date of Birth/Age :

26.11.1950

Qualification :

B. Com

Date of Appointment :

01.05.2005

DIN No.:

00716687

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	U74210MH1999PTC122998	TRUEVALUE ENGINEERING PRIVATE LIMITED	Director	9/12/1999	9/12/1999	-	Active	NO
2	U65910MH1995PLC167801	PARAMSHAKTI STEELS LIMITED	Director	1/05/2005	1/05/2005	-	Active	NO
3	U70109MH2010PTC201681	SHIKHA REALTY INVESTORS (INDIA) PRIVATE LIMITED	Director	5/04/2010	5/04/2010	-	Active	NO

Name :

Mr. Ankit Rajendra Kumar Choudhary

Designation :

Whole-time director

Address :

702, Sinchan Society, New Link Road, Andheri, Mumbai – 400058, Maharashtra, India

Date of Birth/Age :

22.01.1983

Qualification :

B. Com

Date of Appointment :

31.03.2007

DIN No.:

01544050

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	U65910MH1995PLC167801	PARAMSHAKTI STEELS LIMITED	Whole-time director	1/08/2009	31/03/2007	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Rajendra Choudhary	586575
Ankit Choudhary	106200
Kusum Choudhary	199225
Umesh Jumani	8700
Kaml Kothari	112500
Manish Waghmare	5000
Sree Krishna Structures Limited, India	100000
Vimal Kumar Agarwal	319900
Lakshmidevi Bagrodia	445000
Rajendra Bagrodia	501000
Shree Concrete Private Limited, India	375000
Rukmani Concrete Private Limited, India	379000
Concrete Udyog Limited, India	370000
Malwa Concrete Udyog Private Limited, India	369000
Total	3877100

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Bodies corporate	41.08
Directors or relatives of Directors	23.23
Other top fifty shareholders	35.69
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Trader of HR Sheets and Coils.

Products :

Products Description	Item Code No.
Hot Rolled Coils/ Sheet	72082600

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· ICICI Bank Limited, Landmark Race Course Circle, Alkapuri, Baroda – 390015, Gujarat, India

· ICICI Bank Limited, Mafatlal Chambers, Lower Parel, Mumbai, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	(A)73.008	(B)3.738
Working capital loans banks secured	(C)151.947	(D)203.939
Total	224.955	207.677

(A) Fixed Assets Term Loan 69058635 Vehicle Term Loan Rs.3.949 Millions (Secured against hypothecation of vehicle.) -- Rs.73.008 Millions

(B) Vehicle Term Loan Rs.3.737 Millions (Secured against hypothecation of vehicle.) -- Rs.3.737 Millions

(C) The Cash Credit Limit from Banks is against hypothecation of present and future current assets of the company and further secured by charge on fixed assets of the Company and by the personal guarantee of the directors.

(D) The Cash Credit Limit from Banks is against hypothecation of present and future current assets of the company and further secured by charge on fixed assets of the Company and by the personal guarantee of the directors.

Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans others unsecured	(A)31.500	(B)27.100
Total	31.500	27.100

(A) Unsecured Loans from Companies 31.500 Millions

(B) Unsecured Loans from Companies 31.500 Millions

Banking Relations :	--
Auditors :
Name :	Hansaria and Associates Chartered Accountants
Address :	B-414, Yashwant Shopping Center, Carter Road No:7, Borivali (East), Mumbai-400066, Maharashtra, India
PAN.:	AAJPH9214J
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· Prateek Roadways · Truevalue Engineering Private Limited CIN No.: U74210MH1999PTC122998

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3877100	Equity Shares	Rs.10/- each	Rs.38.771 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		38.771	38.771	38.771
2] Share Application Money		20.500	20.500	20.500
3] Reserves & Surplus		338.811	320.194	303.144
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		398.082	379.465	362.415
LOAN FUNDS
1] Secured Loans		224.955	207.677	219.645
2] Unsecured Loans		31.500	27.100	10.000
TOTAL BORROWING		256.455	234.777	229.645
DEFERRED TAX LIABILITIES		4.667	3.785	4.424
TOTAL		659.204	618.027	596.484
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		187.763	115.410	126.427
Capital work-in-progress		38.904	52.053	2.307
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	844.770	404.542	257.135
	Sundry Debtors	554.934	445.950	411.432
	Cash & Bank Balances	110.649	51.007	40.519
	Other Current Assets	0.000	0.000	320.832
	Loans & Advances	287.734	244.529	0.072
Total Current Assets		1798.087	1146.028	1029.990
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.000	530.965
	Other Current Liabilities	1357.050	687.064	3.297
	Provisions	8.500	8.400	27.980
Total Current Liabilities		1365.550	695.464	562.242
Net Current Assets		432.537	450.564	467.748
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		659.204	618.027	596.484

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	3695.790	3407.019	2578.529
		Other Income	46.418	37.849	8.898
		TOTAL (A)	3742.208	3444.868	2587.427
Less	EXPENSES
		Consumption materials changes inventories	3575.999	3300.884
		Manufacturing service costs	23.610	22.936	2489.377
		Employee related expenses	6.091	5.057
		Administrative selling other expenses	26.793	17.402
		TOTAL (B)	3632.493	3346.279	2489.377
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		109.715	98.589	98.050
Less	FINANCIAL EXPENSES (D)		69.459	61.231	69.470
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		40.256	37.358	28.580
Less/ Add	DEPRECIATION/ AMORTISATION (F)		12.257	12.547	13.497
	PROFIT BEFORE TAX (E-F) (G)		27.999	24.811	15.083
Less	TAX (H)		9.383	7.761	5.502
	PROFIT AFTER TAX (G-H) (I)		18.616	17.050	9.581
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	72.053	62.472
	BALANCE CARRIED TO THE B/S		NA	89.103	72.053
	IMPORTS
		Value of Imports on C.I.F. Basis	398.743	61.087	0.000
	TOTAL IMPORTS		398.743	61.087	0.000
	Earnings Per Share (Rs.)		4.80	4.40	2.47

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.50	0.49	0.37
Net Profit Margin (PBT/Sales)	(%)	0.76	0.73	0.58
Return on Total Assets (PBT/Total Assets}	(%)	1.41	1.97	1.30
Return on Investment (ROI) (PBT/Networth)		0.07	0.06	0.04
Debt Equity Ratio (Total Liability/Networth)		4.07	2.45	2.19
Current Ratio (Current Asset/Current Liability)		1.32	1.65	1.83

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	Yes
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

OPERATIONS:

During the year the Company’s net income from operations is Rs.3725.800 Millions as against 3432.900 Millions during the previous year. Profit after interest, depreciation and taxes has increased from 17.050 Millions to 18.616 Millions in year 2010-11. The Company has been successful in maintaining steady performance both in terms of sales and profitability during the year.

Bankers Charges Report as per Registry

Corporate identity number of the company	U65910MH1995PLC167801
Name of the company	PARAMSHAKTI STEELS LIMITED
Address of the registered office or of the principal place of business in India of the company	304, Ashirwad Building, Ahmedabad Street, Carnac Bunder, Masjid, Mumbai-400009, Maharashtra, India Email : info@paramshaktisteels.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10120459
Type of charge	Book Debts Movable Property On stock of raw materials and other current assets
Particular of charge holder	ICICI Bank Limited, Landmark Race Course Circle, Alkapuri, Baroda – 390015, Gujarat, India Email : priyanka.pincha@icicibank.com
Nature of instrument creating charge	Original Deed of hypothecation of working capital was executed on 27th August 2008 for Rs. 300 millions and enhancement done in Deed of hypothecation of working capital executed on 5th October 2011 for Rs. 150 millions hence the total charge is for Rs. 450 millions
Date of instrument Creating the charge	05.10.2011
Amount secured by the charge	Rs.450.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Extent and Operation of the charge First pari passu charge by way of hypothecation of the company entire stock of raw materials, semi-finished and finished goods, consumable stores and spares and such other movable current assets both present and future, ranking pari passu with Bank of India and State bank of India and charge by way of Hypothecation on Plant and Machinery owned by the company and situated at A-5, MIDC Taloja Village Pandhar, District Raigad which is, on pari passu basis with Bank of India and State Bank of India
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Company entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares and other movables including book-debts, and other current assets present and future Hypothecation on Plant and Machinery owned by the company and situated at A-5, MIDC Taloja Village Pandhar, District Raigad which is, on pari passu basis with Bank of India and State Bank of India
Particulars of the present modification	Vide this modification charge is being created on movable assets by way of Hypothecation on Plant and Machinery owned by the company and situate at A-5, MIDC Taloja Village, ranking pari passu with Bank of India and State bank of India. First pari passu charge by way of hypothecation of the company entire stock of raw materials, semi-finished and finished goods, consumable stores and spares and such other movable current assets remains the same. The total charge created is Rs.450.0 million

FIXED ASSETS:

· Land Freehold

· Building

· Office Premises

· Plant and Machinery

· Electrical Installation

· Office Equipment

· Computer

· Motor Car and Motor Cycle

· Furniture and Fixtures

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.52.93
UK Pound	1	Rs.85.85
Euro	1	Rs.69.94

INFORMATION DETAILS

Report Prepared by :

CTI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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		49

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.