MIRA INFORM REPORT

Report Date :

04.04.2013

IDENTIFICATION DETAILS

Name :	SAURASHTRA FERROUS PRIVATE LIMITED
Registered Office :	C-93, Mittal Towers, Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	26.04.2005
Com. Reg. No.:	11-152830
Capital Investment / Paid-up Capital :	Rs. 104.250 Millions
CIN No.: [Company Identification No.]	U27100MH2005PTC152830
PAN No.: [Permanent Account No.]	AAJCS0160P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Pig Iron, Cast Iron, Sponge Iron and Other Ferrous Components.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (12)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appear huge accumulated losses recorded by the company. The external borrowing seems to be huge. However, business is active. Payments are reported to be slow. The company can be considered for business dealings on a safe and secured trade terms and condition.

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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term rating : (ICRA) D
Rating Explanation	ICRA has suspended its rating due to lack of information.
Date	December 2012

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.

LOCATIONS

Registered Office :	C-93, Mittal Towers, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-66550621/ 40467500
Fax No.:	91-22-66550623
E-Mail :	mumbai@saurashtracorp.com
Website :	www.saurashtracorp.com
Factory :	Plot No. 267, Baraya-Patri Road, Village Lakhapur, Taluka Mundra, District Kutch, Gujarat, India
Tel. No.:	91-2838-285332
Fax No.:	91-2838-285333
Branches :	Located at : Ø Ahmedabad Ø Porbandar Ø Mundra

DIRECTORS

AS ON 11.09.2012

Name :	Mr. Dipak Agarwalla
Designation :	Director
Address :	India
Date of Appointment :	26.04.2005
PAN No.:	ADDPA3497R
DIN No.:	00267085
Name :	Mr. Raghav Dipak Agarwalla
Designation :	Director
Address :	India
Date of Appointment :	01.12.2006
PAN No.:	AHBPA8174F
DIN No.:	01085318
Name :	Mr. Surendra Kumar Sinha
Designation :	Director
Address :	India
Date of Appointment :	16.05.2005
PAN No.:	AHFPS8855D
DIN No.:	01511505
Name :	Mr. Navin Kumar Sinha
Designation :	Director
Address :	India
Date of Appointment :	01.12.2006
PAN No.:	AIEPS3226L
DIN No.:	01593775

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 11.09.2012

Names of Equity Shareholders	No. of Shares
Dipak Agarwalla	10000
Great Valley Company Limited, Mauritius	425000
Saurashtra Fuels Private Limited, India	1980000
S. K. Sinha	10000
Total	2425000

Names of Preference Shareholders	No. of Shares
Saurashtra Fuels Private Limited , India	8000000
Total	8000000

AS ON 11.09.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	17.53
Bodies corporate	81.65
Directors or relatives of directors	0.82
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Pig Iron, Cast Iron, Sponge Iron and Other Ferrous Components.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Pig Iron articles	M.T.	100000	26412.00
Cast Iron	M.T.	45000.00	167.48
Others (Slag)	M.T.	N.A.	8675.62

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Ø UCO Bank

Ø HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel [West], Mumbai - 400013, Maharashtra, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Rupee term loans from banks	47.927	99.573
Term loans from others	0.015	0.430
Term loans from banks	11.093	25.915
Total	59.035	125.918
Note: I Term Loans and Working Capital Term Loans are funded by UCO Bank, Ahmedabad:- On primary security as First charge over Fixed Assets of the company(both hypothecation and Mortgage as primary security and further secured by Second charge on the stock and book debts of the company. Further guaranteed by Personal guarantee of Shri Dipak Agarwalla and Shri S.K. Sinha, Directors of the Company. Term Loans are carrying interest rate of 14% and repayable as under: 2013-14 In two Instalments of Rs. 20.807 Millions in April and July and quarterly 2.260 Millions each. 2014-15 Quarterly instalments of Rs. 2.260 Millions each 2015-16 Quarterly instalments of Rs. 2.260 Millions each II Vehicle Loans from HDFC Bank Limited are secured by hypothecation of vehicles financed by them respectively. Further guaranteed by Personal guarantee of Shri Dipak Agarwalla and Shri S.K. Sinha, Directors of the Company These Term Loans are carrying interest rates ranging from 8% to 13% and repayable by EMIs over a period of 1-3 years. III Vehicle Loans from Sundaram Finance Limited are secured by hypothecation of vehicles financed by them respectively. Further guaranteed by Personal guarantee of Shri Dipak Agarwalla and Shri S.K. Sinha, Directors of the Company These Term Loans are carrying interest rates ranging from 8% to 13% and repayable by EMIs over a period of 2-4 years.

Banking Relations :	--
Financial Institution :	Sundaram Finance Limited, 21 Patullos Road, Chennai - 600002, Tamilnadu, India
Auditors :
Name :	CLB and Associates Chartered Accountants
Address :	77, Mulji Jetha Building, 3rd Floor, 185/187, Princess Street, Marine Lines, Mumbai – 400002, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAEFC1382K
Holding Company :	Ø Saurashtra Fuels Private Limited [U23200MH1993PTC075455]
Associates :	Ø Saurashtra Containers Private Limited [U63090MH2005PTC150685] Ø Hindustan Fuels Private Limited [U10102MH2004PTC225005] Ø Kutch Coal Carbonization Private Limited [U10102MH2002PTC225006] Ø Kandla Power Private Limited [U40100MH2004PTC149461] Ø Classic Energy (India) Private Limited [U23100MH2004PTC225007]

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Shares	Rs. 10/- each	Rs. 50.000 Millions
10,000,000	Preference Shares	Rs. 10/- each	Rs. 100.000 Millions
	Total		Rs. 150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,425,000	Equity Shares	Rs. 10/- each	Rs. 24.250 Millions
8,000,000	Preference Shares	Rs. 10/- each	Rs. 80.000 Millions
	Total		Rs. 104.250 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		104.250	104.250	104.250
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	80.750
4] (Accumulated Losses)		(164.929)	(101.761)	(129.132)
NETWORTH		(60.679)	2.489	55.868
LOAN FUNDS
1] Secured Loans		59.035	125.918	222.533
2] Unsecured Loans		217.683	217.683	217.683
TOTAL BORROWING		276.718	343.601	440.216
DEFERRED TAX LIABILITIES		56.425	55.693	52.594
TOTAL		272.464	401.783	548.678
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		357.765	383.272	397.529
Capital work-in-progress		0.000	0.000	6.081
INVESTMENT		0.005	0.005	2.005
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	47.815	262.460	157.869
	Sundry Debtors	4.784	43.766	51.204
	Cash & Bank Balances	0.721	8.398	15.004
	Other Current Assets	0.000	0.402	0.000
	Loans & Advances	78.226	88.905	95.028
Total Current Assets		131.546	403.931	319.105
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	132.871	308.924	0.000
	Other Current Liabilities	83.981	76.501	176.042
	Provisions	0.000	0.000	0.000
Total Current Liabilities		216.852	385.425	176.042
Net Current Assets		(85.306)	18.506	143.063
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		272.464	401.783	548.678

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL (A)	310.134	630.253	1133.400
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	328.483	630.863	1106.334
Less	PROFIT/ [LOSS] BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(18.349)	(0.610)	27.066
Less	FINANCIAL EXPENSES (D)		19.394	24.887	25.046
	PROFIT/ [LOSS] BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(37.743)	(25.497)	2.020
Less/ Add	DEPRECIATION/ AMORTISATION (F)		24.693	24.783	23.893
	PROFIT/ [LOSS] BEFORE TAX (E-F) (G)		(62.436)	(50.280)	(21.873)
Less	TAX (H)		0.732	3.098	4.649
	PROFIT/ [LOSS] AFTER TAX (G-H) (I)		(63.168)	(53.378)	(26.522)
Add	EXCESS PROVISION OF TAX		0.000	0.000	(0.016)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(182.510)	(129.132)	(102.594)
	BALANCE CARRIED TO THE B/S		(245.678)	(182.510)	(129.132)
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. value of Exports	0.455	23.470	0.000
	Earnings/ [Loss] Per Share (Rs.)		(26.02)	(22.01)	(10.94)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(22.30)	(8.47)	(2.34)
Return on Total Assets (PBT/Total Assets}	(%)	(12.76)	(6.39)	(3.05)
Return on Investment (ROI) (PBT/Networth)		1.03	(20.20)	(0.39)
Debt Equity Ratio (Total Debt/Networth)		(4.56)	138.05	7.88
Current Ratio (Current Asset/Current Liability)		0.61	1.05	1.81

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	No
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	No
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 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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Fully convertible debentures others	217.683	217.683
Total	217.683	217.683

FINANCIAL RESULTS:

During the year, the company has achieved sales (net of excise) of Rs. 308.700 Millions as against Rs. 613.800 Millions in the previous year. Company’s manufacturing activity has been continued affected adversely due to non availability of required quality of Iron Ore. The company was procuring high grade Iron Ore from Hospet (Karnataka) regularly, since June 2010 onwards state of Karnataka has imposed ban on sale of Iron Ore from state in view of illegal mining and environmental hazards. Hence the overall sales have decreased in the current financial year compared to previous year.

However the company is exploring alternative source of Raw Material i.e. Iron Ore to enable to re-start of the Production. The overall performance of the company under review has not been satisfactory due to external factors as mentioned above.

OPERATIONS

The company has achieved production of Pig Iron 3707 MT as against 26412 MT in the previous year. Due to non availability of good quality of Iron Ore the company does not have any option but to reduce its production of Pig Iron. The company continues to pursue rigorously technology and cost improvement measures.

FINANCE

The company is regular in payment of principal and interest on the term loan and working capital term loans. The company continues to enjoy good support from UCO Bank to meet its working capital requirements.

CONTINGENT LIABILITIES

(Rs. in millions)

Particulars	31.03.2012	31.03.2011
a) Corporate Guarantee in favour of Holding company along with other Subsidiaries of the same holding company.	2598.100	2598.100
b) for Income tax demand for the A.Y. 2008-09 Company has preferred appeal with CIT	68.628	186.328
c) Sales Tax Liability	118.952	131.188
d) Estimated amount of contracts remaining to be executed on capital account and not provided.	1.400	1.400

FIXED ASSETS:

Ø Land

Ø Buildings

Ø Factory building

Ø Plant and equipment

Ø Furniture and fixtures

Ø Vehicles

Ø Office equipment

Ø

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 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. 54.39
UK Pound	1	Rs. 82.05
Euro	1	Rs. 69.59

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	1
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		12

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.