MIRA INFORM REPORT

Report Date :

19.11.2012

IDENTIFICATION DETAILS

Name :	M. P. K. STEELS (INDIA) PRIVATE LIMITED
Registered Office :	Dharamnala Road, Diphu, Karbi Anglong, Assam - 782460
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.12.2005
Com. Reg. No.:	02-007674
Capital Investment / Paid-up Capital :	Rs. 10.919 Millions
CIN No.: [Company Identification No.]	U27109AS2005PTC007674
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of Channels, Angles, Joiust or Beams, MS Flat, MS Round Bars, MS Square Bars, MS Sections etc.
No. of Employees :	75 (Approximately)

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 300000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company has incurred a loss in the current year i.e. 2010-11. Also there appears some continuous dip in the profitability in the previous year of the company. 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 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Pankaj Sharma
Designation :	Director
Contact No.:	91-9829062563
Date :	16.11.2012

LOCATIONS

Registered Office :	Dharamnala Road, Diphu, Karbi Anglong, Assam-782460, India
Tel. No.:	91-361-2343168 91-141-2332673
Mobile No.:	91-9829062563 (Mr. Pankaj Sharma) 91-9829054216 (Mr. Manoj Upadhyay)
Fax No.:	91-141-2332924
E-Mail :	mpkgroup@gmail.com gclient09@gmail.com
Factory :	A-195, RIICO Industrial Area, Ext. Phase 2, Bagru, Jaipur-303007, Rajasthan, India
Tel. No.:	91-141-3264216/ 5173868/ 6505053
Fax No.:	91-141-4005052
Area :	10500 Sq. mtr
Location :	Owned

DIRECTORS

As on: 29.09.2011

Name :

Mr. Pankaj Sharma

Designation :

Director

Address :

2/210, Upadhyay House, Vidhyadhar Nagar, Jaipur-302012, Rajasthan, India

Date of Birth/Age :

02.06.1981

Date of Appointment :

13.03.2007

DIN No.:

00706942

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U26919AS1994PTC004183	M P K PRODUCTS PVT LTD	Director	19-12-05	19-12-05	26-12-10	Active	NO
2	U27109AS2005PTC007674	M P K STEELS I PRIVATE LIMITED	Director	13-03-07	13-03-07	-	Active	NO
3	U27107AS2009PTC009295	M. P. K. METALS PRIVATE LIMITED	Director	14-10-09	14-10-09	-	Active	NO

Name :

Mr. Suresh Kumar Sharma

Designation :

Director

Address :

2/210, Upadhyay House, Vidhyadhar Nagar, Jaipur-302012, Rajasthan, India

Date of Birth/Age :

01.07.1956

Date of Appointment :

13.03.2007

DIN No.:

00706956

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U26919AS1994PTC004183	M P K PRODUCTS PVT LTD	Director	28-07-94	28-07-94	-	Active	NO
2	U27109AS2005PTC007674	M P K STEELS I PRIVATE LIMITED	Director	13-03-07	13-03-07	-	Active	NO
3	U27106AS2009PTC009174	M. P. K. ISPAT INDIA PRIVATE LIMITED	Director	12-08-09	12-08-09	-	Active	NO
4	U20294RJ2010PTC031348	INDIAN SECONDARY STEELTECH PRIVATE LIMITED	Director	26-03-10	26-03-10	-	Active	NO

Name :

Mr. Manoj Upadhyay

Designation :

Director

Address :

2/210, Upadhyay House, Vidhyadhar Nagar, Jaipur-302012, Rajasthan, India

Date of Birth/Age :

26.03.1980

Date of Appointment :

19.12.2005

DIN No.:

00706964

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U26919AS1994PTC004183	M P K PRODUCTS PVT LTD	Director	14-07-05	14-07-05	26-12-10	Active	NO
2	U27109AS2005PTC007674	M P K STEELS I PRIVATE LIMITED	Director	19-12-05	19-12-05	-	Active	NO
3	U27106AS2009PTC009174	M. P. K. ISPAT INDIA PRIVATE LIMITED	Director	12-08-09	12-08-09	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2011

Names of Shareholders	No. of Shares
Santosh Devi Sharma	264470
Nidhi Sharma	131071
Manoj Sharma	144220
Anita Sharma	39680
S K Sharma	230776
Pankaj Sharma	87906
Saroj Devi Sharma	2520
S. N. Sharma	1460
Ravi Sharma	5150
M L Sharma	2280
Krishna Devi Sharma	1450
Vijay Sharma	3660
Shyarn Sharma	2410
Bhanwar Devi Sharma	2416
K R. Choudhary	2230
Prahlad Choudhary	2480
Suman Devi Sharma	2750
Urvashi Sharma	20000
P K Metals Private Limited, Assam, India	145000
Total	1091929

As on 23.03.2012

Names of Allottee	No. of Shares Allotted
Kamrup Vanijya Private Limited	117500
Total	117500

As on 25.03.2012

Names of Allottee	No. of Shares Allotted
Kamrup Vanijya Private Limited	48000
Total	48000

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2011

Category	Percentage
Bodies corporate	13.28
Directors or relatives of directors	86.72
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Channels, Angles, Joiust or Beams, MS Flat, MS Round Bars, MS Square Bars, MS Sections etc.
Products :	· Channels · Angles · Joist or Beams · MS Flat · MS Round Bars · MS Square Bars · MS Sections
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS AS ON (31.03.2011)

Particulars	Unit	Actual Production
Finished Goods	MT	22760.287
Scrap	MT	711.458

GENERAL INFORMATION

Customers :

· Wholesalers

· Retailers

No. of Employees :

75 (Approximately)

Bankers :

• Bank of Baroda, V K I Area Branch, Jaipur – 302021, Rajasthan, India
• HDFC Bank Limited
• State Bank of Bikaner and Jaipur, Ganpati Plaza, M. I. Road, Jaipur – 302001, Rajasthan, India

Facilities :

(Rs. In Millions)

Secured Loans	As on 31.03.2011	As on 31.03.2010
Term Loan from Bank of Baroda (Secured against equitable mortgage of company’s fixed assets)	0.000	0.273
Term Loan form SBBJ (Secured against equitable mortgage of company’s fixed assets)	41.050	30.514
Bank of Baroda (Bills Discounting)	0.000	28.782
Cash Credit limit from Bank of Baroda (Secured against hypothecation of stocks, book debts, other current asset and equitable mortgage of company’s fixed assets)	0.000	1.941
Cash Credit Limit form SBBJ (Secured against hypothecation of stocks, book debts, other current assets and equitable mortgage of company’s fixed assets)	90.255	73.368
Car Loan from HDFC Bank (Secured against hypothecation of car)	0.399	0.000
Car Loan from HDFC Bank (Secured against hypothecation of Car)	0.000	0.400
Car Loan From HDFC Bank (Secured against hypothecation of car)	0.593	1.046
Car Loan from Reliance Capital (Secured against hypothecation of car)	0.000	0.050
RIICA (Residential Plot No. R-4)	1.792	0.000
Total	134.089	136.374
Unsecured Loans	As on 31.03.2011	As on 31.03.2010
Loan from Directors and Shareholders	3.065	3.065
Total	3.065	3.065

Banking Relations :	--
Auditors :
Name :	Saurabh Agarwal and Associates Chartered Accountants
Address :	3^rd Floor, Shankar Complex, Christian Basti, G.S. Road, Guwahati-781005, Assam, India
Tel. No.:	91-361-2343167/ 68/ 69
Fax No.:	91-361-2343165
E-Mail :	cs.saaghy@gmail.com
PAN No.:	AASFS3420J
Group Company :	M P K Products Private Limited M P K Metals Private Limited M P K Ispat (India) Private Limited

CAPITAL STRUCTURE

As on: 29.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs. 15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1257429	Equity Shares	Rs.10/- each	Rs.12.574 Millions

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Shares	Rs.10/- each	Rs. 12.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1091929	Equity Shares	Rs.10/- each	Rs.10.919 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		10.919	10.919	8.398
2] Share Application Money		16.340	4.540	11.072
3] Reserves & Surplus		51.107	51.590	33.842
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		78.366	67.049	53.312
LOAN FUNDS
1] Secured Loans		134.089	136.374	76.960
2] Unsecured Loans		3.065	3.065	3.065
TOTAL BORROWING		137.154	139.439	80.025
DEFERRED TAX LIABILITIES		0.963	0.353	0.378
TOTAL		216.483	206.841	133.715
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		92.806	30.888	49.282
Capital work-in-progress		0.000	67.735	0.000
INVESTMENT		0.489	0.118	0.065
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	82.508	27.351	27.415
	Sundry Debtors	64.772	89.527	57.609
	Cash & Bank Balances	1.812	3.150	1.246
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	14.465	11.778	13.054
Total Current Assets		163.557	131.806	99.324
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	31.835	12.132	6.347
	Other Current Liabilities	6.101	6.343	3.324
	Provisions	2.433	5.268	5.359
Total Current Liabilities		40.369	23.743	15.030
Net Current Assets		123.188	108.063	84.294
MISCELLANEOUS EXPENSES		0.000	0.037	0.074
TOTAL		216.483	206.841	133.715

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Turnover	657.271	369.762	418.545
		Other Income	2.921	6.194	0.554
		TOTAL (A)	660.192	375.956	419.099
Less	EXPENSES
		Raw Material Consumed	635.565	320.867	363.052
		Utilities	27.188	18.579	24.283
		Personnel Cost	7.898	4.958	3.900
		Administrative Expenses	3.768	2.559	3.384
		Selling and Distribution Expenses	1.652	0.813	1.106
		Directors remuneration	0.000	0.706	0.825
		Preliminary Expenses written off	0.037	0.037	0.037
		Increase in Inventories	(39.832)	6.889	0.935
		Loss on sale of assets	0.074	0.000	0.000
		TOTAL (B)	636.350	355.408	397.522
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		23.842	20.548	21.577
Less	FINANCIAL EXPENSES (D)		11.952	9.603	8.312
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		11.890	10.945	13.265
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.553	3.916	3.769
	PROFIT BEFORE TAX (E-F) (G)		0.337	7.029	9.496
Less	TAX (H)		0.820	2.330	3.032
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(0.483)	4.699	6.464
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		19.950	15.251	8.787
	BALANCE CARRIED TO THE B/S		19.467	19.950	15.251
	(Basic and Weighted average) Earnings Per Share (Rs.)		(0.44)	4.30	7.70

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(0.07)	1.25	1.54
Net Profit Margin (PBT/Sales)	(%)	0.05	1.90	2.27
Return on Total Assets (PBT/Total Assets}	(%)	0.13	3.05	6.39
Return on Investment (ROI) (PBT/Networth)		0.01	0.10	0.18
Debt Equity Ratio (Total Liability/Networth)		2.26	2.43	1.78
Current Ratio (Current Asset/Current Liability)		4.05	5.55	6.61

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	Yes
10]	Designation of contact person	Yes
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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

FIXED ASSETS

· Land and Building

· Plant and Machinery

· Vehicles

· Office Equipments

· Computer

· Furniture and Fixtures

· Miscellaneous Fixed Assets

· 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 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. 54.99
UK Pound	1	Rs. 87.21
Euro	1	Rs. 70.22

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--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	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	-

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.