MIRA INFORM REPORT

Report Date :

14.09.2012

IDENTIFICATION DETAILS

Name :	JINDAL ROLLING MILLS LIMITED
Registered Office :	9th KM Stone, Delhi Road, Hisar – 125044, Haryana
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.02.1986
Com. Reg. No.:	05-023451
Capital Investment / Paid-up Capital :	Rs.13.043 Millions
CIN No.: [Company Identification No.]	U27106HR1986PLC023451
TAN No.: [Tax Deduction & Collection Account No.]	RTKJ01814B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Structural steel and Reinforcement Bars.
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 120000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Even though the company has achieved better sales growth during 2011, the profitability appears to be low. The external borrowings of the company is huge. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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. Ayush
Designation :	Director
Contact No.:	91-9540992063
Date :	11.09.2012

LOCATIONS

Registered Office/ Factory :	9th KM Stone, Delhi Road, Hisar – 125044, Haryana, India
Tel. No.:	91-1662-220294
Mobile No.:	91-9540992063 (Mr. Ayush)
Fax No.:	Not Available
E-Mail :	anilca_hsr@yahoo.co.in
Location :	Owned
Marketing/ Head Office :	92, 1st Floor, Nambardar Estate, Taimoor Nagar, New Friends Colony, New Delhi – 110025, India
Tel. No.:	91-11-26820401/ 02
Fax No.:	91-11-26820403

DIRECTORS

As on: 30.09.2011

Name :

Mr. Yog Raj Jindal

Designation :

Whole Time Director

Address :

Jindal Villa Model Town, Hisar, Haryana, India

Date of Birth/Age :

05.06.1961

Date of Appointment :

25.02.1986

DIN No.:

00829756

Name :

Mr. Rama Shankar Pandit

Designation :

Whole Time Director

Address :

Jindal Villa Model Town, Hisar, Haryana, India

Date of Birth/Age :

15.01.1962

Date of Appointment :

27.02.2007

DIN No.:

01835736

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	U74899DL1995PTC070223	HISAR HOLDINGS PRIVATE LIMITED	Director	10/07/1995	10/07/1995	05/11/2008	Active	NO
2	U27106HR1986PLC023451	JINDAL ROLLING MILLS LIMITED	Whole-time director	27/02/2007	27/02/2007	-	Active	NO

Name :

Mr. Ayush Jindal

Designation :

Director

Address :

Jindal Villa Model Town, Hisar, Haryana, India

Date of Birth/Age :

20.03.1987

Date of Appointment :

01.10.2010

DIN No.:

03088382

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	U27106HR1986PLC023451	JINDAL ROLLING MILLS LIMITED	Director	01/10/2010	01/10/2010	-	Active	NO
2	U74899DL1995PTC070223	HISAR HOLDINGS PRIVATE LIMITED	Additional director	14/06/2012	14/06/2012	-	Active	NO

Name :

Mr. Madan Lal Jindal

Designation :

Additional Director

Address :

Jindal Villa Model Town, Hisar, Haryana, India

Date of Birth/Age :

04.03.1936

Date of Appointment :

24.01.2011

DIN No.:

00825699

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	U27109HR1974PLC007126	JANAK STEEL TUBES LIMITED	Whole-time director	13/07/1977	13/07/1977	-	Active	NO
2	U25200HR1980PTC010537	JINDAL POLYFLEX PRIVATE LIMITED	Director	17/08/1993	17/08/1993	-	Active	NO
3	U74899DL1995PTC070223	HISAR HOLDINGS PRIVATE LIMITED	Director	01/04/2002	01/04/2002	05/11/2008	Active	NO
4	U27106HR1986PLC023451	JINDAL ROLLING MILLS LIMITED	Additional director	24/01/2011	15/06/2002	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2011

NOT AVAILABLE

As on: 06.09.2009

Names of Shareholders	No. of Shares
Maman Chand Sharma	650
Surender Kr. Goyal	180
Ram Dhari	250
Rama Shankar Pandit	1000
Chandrika Parshad	450
Jagdish Lumar Kundu	250
Gopi Ram Goyal	844
Jai Kumar Mittal	542
Chiranji Lal Goyal	1667
Chiranji Lal HUF	500
Total	6333

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2011

Category	Percentage
Bodies corporate	16.00
Directors or relatives of directors	41.00
Other top fifty shareholders	43.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Structural steel and Reinforcement Bars.
Products :	· TMT Bars · Ms Beam / Joist · Ms Channel · Ms Angel · Ms Flat Sections · Msbars.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

150 (Approximately)

Bankers :

· Punjab National Bank, Model Town Branch, Hisar - 125001, Haryana, India

· Punjab National Bank, Dabra Chowk Branch, Hisar - 125001, Haryana, India

· Punjab National Bank, New Delhi, India

· HDFC Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Punjab National Bank [against hypothecation of Raw Materials, finished goods etc. and personally guaranteed by the directors]	35.879	35.397
HDFC Bank Limited [Against mortgage of car having first charge and guaranteed by directors]	0.199	0.757
Punjab National Bank [Term Loan against Mortgage of all fixed assets of the company and guaranted by the Directors]	5.855	7.234
Total	41.933	43.388
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Deposits from Shareholders	2.659	2.406
Security Deposit	5.490	5.290
Loan from Directors (Including Rs. 0.020 Million Interest Accrued and due thereon)	0.292	0.110
Total	8.441	7.806

Banking Relations :	--
Auditors :
Name :	A.A and Company Chartered Accountants
Address :	22, Green Park, Hisar – 125001, Haryana, India
Tel. No.:	91-1662-230401/ 239919
Mobile No.:	91-9812168450
E-Mail :	anilca_hsr@yahoo.co.in anil22gp.hisar@yahoo.com
PAN No.:	AATFA3487G

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
130433	Equity Shares	Rs.100/- each	Rs.13.043 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		13.043	13.043	12.410
2] Share Application Money		2.500	2.500	0.633
3] Reserves & Surplus		15.846	14.562	13.604
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		31.389	30.105	26.647
LOAN FUNDS
1] Secured Loans		41.933	43.388	35.319
2] Unsecured Loans		8.441	7.806	4.729
TOTAL BORROWING		50.374	51.194	40.048
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		81.763	81.299	66.695
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		24.174	25.772	15.402
Capital work-in-progress		0.000	0.000	0.050
INVESTMENT		0.535	0.535	0.535
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	47.337	42.606	23.519
	Sundry Debtors	37.982	23.288	33.749
	Cash & Bank Balances	0.720	0.674	10.112
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.691	5.158	4.960
Total Current Assets		89.730	71.726	72.340
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	28.629	11.533	17.829
	Other Current Liabilities	3.450	4.911	3.540
	Provisions	0.597	0.290	0.263
Total Current Liabilities		32.676	16.734	21.632
Net Current Assets		57.054	54.992	50.708
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		81.763	81.299	66.695

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	373.316	301.441	292.493
		Other Income	0.075	0.185	10.417
		TOTAL (A)	373.391	301.626	302.910
Less	EXPENSES
		Cost of Goods Sold	(2.796)	(20.372)	18.264
		Raw Material Consumed	298.964	251.649	235.917
		Excise Duty	18.804	16.090	16.892
		Manufacturing Expenses	40.604	39.819	20.274
		Personnel Expenses	4.587	4.273	3.290
		Administrative Expenses	2.844	1.549	1.879
		TOTAL (B)	363.007	293.008	296.516
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		10.384	8.618	6.394
Less	FINANCIAL EXPENSES (D)		6.167	4.757	4.013
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.217	3.861	2.381
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.372	2.077	1.757
	PROFIT BEFORE TAX (E-F) (G)		1.845	1.784	0.624
Less	TAX (H)		0.562	0.390	0.456
	PROFIT AFTER TAX (G-H) (I)		1.283	1.394	0.168
Less	Previous year Adjustment		0.000	0.005	0.078
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		4.347	2.958	2.868
	BALANCE CARRIED TO THE B/S		5.630	4.347	2.958
	Earnings Per Share (Rs.)		9.84	NA	NA

Particulars	31.03.2012
Sales Turnover (Approximately)	420.000

Expected Sales (2012-2013): Rs.450.000 Millions

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.34	0.46	0.06
Net Profit Margin (PBT/Sales)	(%)	0.49	0.59	0.21
Return on Total Assets (PBT/Total Assets}	(%)	1.62	1.83	0.71
Return on Investment (ROI) (PBT/Networth)		0.06	0.06	0.02
Debt Equity Ratio (Total Liability/Networth)		2.65	2.26	2.31
Current Ratio (Current Asset/Current Liability)		2.75	4.29	3.34

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	No
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
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

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U27106HR1986PLC023451
Name of the company	JINDAL ROLLING MILLS LIMITED
Address of the registered office or of the principal place of business in India of the company	9th KM Stone, Delhi Road, Hisar – 125044, Haryana, India E-mail: anilca_hsr@yahoo.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90041541
Type of charge	· Immovable property · Book debts · Movable property (not being pledge) · Goodwill · Patent, license under a patent · Trademark
Particular of charge holder	Punjab National Bank, Dabra Chowk Branch, Hisar - 125001, Haryana, India E-mail: bo3292@pnb.co.in
Nature of instrument creating charge	Letter of continuity for cash credit limit and term loan for Rs. 62.500 Millions, agreement for hypothecation of goods, current assets, book-debts and of movable assets forming part of fixed/block assets.
Date of instrument Creating the charge	07.05.2011
Amount secured by the charge	Rs.55.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Base rate + 4% - relax of 0.5 % per annum with monthly rests. Penal interest @ 2% Terms of Repayment Renewal on yearly basis. Margin In case of stock and book-debts @ 25 % Extent and Operation of the charge As per hypothecation agreements for current assets, stocks and book-debts and movabale assets.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All immovable and movable assets of the company i.e. Factory land, shed and building, plant and machinery, stocks and book-debts, receivables and other assets situated at factory premises at Hisar. Land measuring 3k-13m in Khasra no. 167/13 at village Satrod Khas Land measuring 5k-12m in Khasra no. 167/123/2/2(1-16), 24/1/2(73), 24/2/2(3-3) at village Satrod Khas Land measuring 12k-02m in Khewat no. 399 Khatoni no. 590 Khasra no 167/117(8-9), 18/1(3-13) at village Satrod Khas
Date of instrument modifying the charge	11.05.2006
Particulars of the present modification	Cash credit limit hypothecation of stocks enhanced from Rs. 27.500 Millions to Rs. 32.500 Millions and cash credit limit against hypothecation of book-debts enhanced from Rs. 15.000 Millions to 225 Millions i.e. total cc limit enhanced from Rs. 42.500 Millions to 55.000 Millions.

FIXED ASSETS:

· Land

· Shed and Building

· Plant and Machinery

· Temple

· Furniture

· Truck

· Air Conditioner

· Weighing Machine

· Car

· Bollero Jeep

· Office Equipments

· Tractor

· Generator (Jakson)

· Generator Engine

· Furnace

· Furnace

· Generator

· Power House

· Moped/Scooter

· Computer

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.55.44
UK Pound	1	Rs.89.31
Euro	1	Rs.71.62

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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		34

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.