MIRA INFORM REPORT

Report Date :

13.04.2013

IDENTIFICATION DETAILS

Name :	PRABHU STEEL INDUSTRIES LIMITED [w.e.f.16.09.1981]
Formerly Known As :	PRABHU STEEL INDUSTRIES PRIVATE LIMITED
Registered Office :	Near Old Motor Standitwari, Nagpur – 440008, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	29.05.1972
Com. Reg. No.:	11-015817
Capital Investment / Paid-up Capital :	Rs. 7.169 Millions
CIN No.: [Company Identification No.]	U28100MH1972PLC015817
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Iron and Steel Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Closed
Payment Behaviour :	--
Litigation :	--
Comments :	Subject is a company which was incorporated during 1972. The management has failed to file its financial with the government department since 2010. The management has confirmed that the subject was closed down since last two years. However, they did not divulge the reason for such a closure and denied to disclose other details. Since the company is closed, it cannot be considered for business dealings.

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 DECLINED

MANAGEMENT NON CO-OPERATIVE [91-712-2760463]

LOCATIONS

Registered Office :	Near Old Motor Stand Itwari, Nagpur – 440008, Maharashtra, India
Tel. No.:	91-712-2768743-48/ 2768749/ 2769340/ 2766301/ 2778364
Fax No.:	91-712-2760463/ 2778341
E-Mail :	companylawreply@gmail.com

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Krishan Kumar Agrawal
Designation :	Director
Address :	95, Wardhaman Nagar, C.A. Road, Nagpur – 440008, Maharashtra, India
Date of Birth/Age :	04.04.1963
Date of Appointment :	15.02.1995
DIN No.:	00291076
Name :	Mr. Radheshyam Agrawal
Designation :	Director
Address :	124, Wardhaman Nagar, Nagpur – 440008, Maharashtra, India
Date of Birth/Age :	01.07.1934
Date of Appointment :	29.05.1972
DIN No.:	00291080
Name :	Mr. Harish Agrawal
Designation :	Director
Address :	287, Wardhaman Nagar, Nagpur – 440008, Maharashtra, India
Date of Birth/Age :	10.07.1963
Date of Appointment :	25.03.2008
DIN No.:	00291083
Name :	Mr. Keshao Pardhe
Designation :	Director
Address :	1/120, VHB Colony, Shanti Nagar, Itwari, Nagpur – 440002, Maharashtra, India
Date of Birth/Age :	09.05.1962
Date of Appointment :	01.09.2003
DIN No.:	00296310

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

NOT AVAILABLE

AS ON 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	58.00
Directors or relatives of directors	35.00
Other top fifty shareholders	7.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Iron and Steel Products.

Products :

ITC Code	Product Descriptions [Production]
72262000	Iron and Steel [Rolled Products]

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Punjab National Bank, Gandhi Bagh Branch, Nagpur - 440002, Maharashtra, India

Facilities :

Secured Loans	31.03.2010	31.03.2009
From Banks	(Rs. In Millions)
Against Fixed Deposit Receipts	39.172	10.749
Against hypothecation of Assets	2.061	0.383
Total	41.233	11.132

Banking Relations :	--
Auditors :
Name :	Loya Bagri and Company Chartered Accountants
Address :	Popular Market, Gandhibagh, Nagpur – 440002, Maharashtra, India
Tel. No.:	91-712-2766229/ 2762408
Income-tax PAN of auditor or auditor's firm :	AAAFL2608P

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1,500,000	Equity Shares	Rs. 10/- each	Rs. 15.000 Millions

Issued & Subscribed Capital :

No. of Shares	Type	Value	Amount
717,000	Equity Shares	Rs. 10/- each	Rs. 7.170 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
716,900	Equity Shares	Rs. 10/- each	Rs. 7.169 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		7.169	7.169	7.169
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		31.565	30.284	30.170
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		38.734	37.453	37.339
LOAN FUNDS
1] Secured Loans		41.233	11.132	6.057
2] Unsecured Loans		11.459	23.910	11.022
TOTAL BORROWING		52.692	35.042	17.079
DEFERRED TAX LIABILITIES		0.396	0.155	0.206
TOTAL		91.822	72.650	54.624
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		12.884	9.449	9.832
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		1.506	1.506	0.506
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	57.084	53.707	80.277
	Sundry Debtors	64.150	107.737	94.744
	Cash & Bank Balances	48.540	17.954	11.344
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	43.916	35.815	55.360
Total Current Assets		213.690	215.213	241.725
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	134.855	151.230	193.099
	Other Current Liabilities	0.686	1.064	0.041
	Provisions	0.717	1.224	4.299
Total Current Liabilities		136.258	153.518	197.439
Net Current Assets		77.432	61.695	44.286
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		91.822	72.650	54.624

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	441.183	1037.256	1203.319
		Other Income	35.850	33.360	9.123
		TOTAL (A)	477.033	1070.616	1212.442
Less	EXPENSES
		Raw material Consumed	380.072	877.330	1030.216
		Purchase	0.143	6.655	0.327
		Employees Cost	5.094	5.168	5.205
		Operating Expenses	84.296	123.570	168.505
		Variation in Finished Goods	(9.451)	29.661	(21.755)
		Transfer from Revaluation Reserve	0.000	(0.080)	(0.083)
		Prior period Adjustments	0.000	0.437	0.036
		TOTAL (B)	460.154	1042.741	1182.451
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		16.879	27.875	29.991
Less	FINANCIAL EXPENSES (D)		13.444	24.006	17.024
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.435	3.869	12.967
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.399	1.243	1.388
	PROFIT BEFORE TAX (E-F) (G)		2.036	2.626	11.579
Less	TAX (H)		0.755	2.821	9.884
	PROFIT AFTER TAX (G-H) (I)		1.281	0.195	1.695
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		23.061	22.866	21.171
	BALANCE CARRIED TO THE B/S		24.342	23.061	22.866
	Earnings Per Share (Rs.)		1.79	0.27	2.36

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.27	0.02	0.14
Net Profit Margin (PBT/Sales)	(%)	0.46	0.25	0.96
Return on Total Assets (PBT/Total Assets}	(%)	0.90	1.17	4.60
Return on Investment (ROI) (PBT/Networth)		0.05	0.07	0.31
Debt Equity Ratio (Total Debt/Networth)		1.36	0.94	0.46
Current Ratio (Current Asset/Current Liability)		1.57	1.40	1.22

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	No
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	No
30]	Major Shareholders, if available	No
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

UNSECURED LOANS

Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
Short term loans and advances from Deposit	5.904	5.904
Short term loans and advances from Corporate Sector	0.146	0.146
From Banks	0.697	0.112
From Directors	0.040	0.040
From Corporate Sector	1.425	14.461
From Others	3.247	3.247
Total	11.459	23.910

FIXED ASSETS:

Ø Leasehold Land

Ø Freehold Land

Ø Building and Sheds

Ø Plant and Machinery

Ø Furniture and Fixture

Ø Office Equipments

Ø Vehicles

Ø Cranes

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. 54.44
UK Pound	1	Rs. 83.78
Euro	1	Rs. 71.33

INFORMATION DETAILS

Information Gathered by :	NYN
Report Prepared by :	BVA

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.