MIRA INFORM REPORT

Report Date :

19.04.2013

IDENTIFICATION DETAILS

Name :	SARAOGI UDYOG PRIVATE LIMITED
Registered Office :	21, Hemant Basu Sarani, Centre Point, 2^nd Floor, Suit No.212, Kolkata – 700 001, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	26.04.1996
Com. Reg. No.:	21-079509
Capital Investment / Paid-up Capital :	Rs.70.071 millions
CIN No.: [Company Identification No.]	U23109WB1996PTC079509
PAN No.: [Permanent Account No.]	AACCA2104N
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the trading of Coal and Coke.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 2196000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having a good track record. The performance capability and financial strength of the company is good. Trade relations are reported as decent. Business is active. Payment terms are regular and as per commitment. The company can be considered good 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 – 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating: BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	March 19, 2013

Rating Agency Name	CRISIL
Rating	Short Term Rating: A3+
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	March 19, 2013

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 :	21, Hemant Basu Sarani, Centre Point, 2^nd Floor, Suit No.212, Kolkata – 700 001, West Bengal, India
Tel. No.:	91-33-22138779/ 80/ 81
Fax No.:	91-33-22435334/ 22138781
E-Mail :	saraogiudyog@eth.net saraogi@cal2.vsnl.net.in
Website :	http://saraogiudyog.com
Field Office :	Located at: · Haldia (West Bengal) · Durgapur (West Bengal) · Brijrajnagar (Orissa) · Talcher (Orissa)
Branch Office 1 :	NH 5, PO Harianta, PS Tangi, Nirgundi, Cuttack, Orissa, India
Branch Office :	Also located at: · Jharkhand · Punjab · Uttar Pradesh · Madhya Pradesh · Andhra Pradesh

DIRECTORS

As on 09.08.2012

Name :

Mr. Anil Kumar Saraogi

Designation :

Director

Address :

DL-20, Salt Lake City, Sector II, Kolkata – 700 091, West Bengal, India

Date of Birth/Age :

22.09.1963

Date of Appointment :

26.04.1996

PAN No.:

APKPS6564E

DIN No.:

00660641

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	U65999WB1995PTC070950	SARAOGI VINIYOG PRIVATE LIMITED	Director	06/04/1995	06/04/1995	-	Active	NO
2	U23109WB1996PTC079509	SARAOGI UDYOG PRIVATE LIMITED	Director	26/04/1996	26/04/1996	-	Active	NO

Name :

Mr. Ramesh Kumar Saraogi

Designation :

Director

Address :

DL-20, Salt Lake City, Sector II, Kolkata – 700 091, West Bengal, India

Date of Birth/Age :

27.10.1960

Date of Appointment :

26.04.1996

PAN No.:

APKPS6829Q

DIN No.:

00660598

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	U23109WB1995PTC070709	ARIHANT MAFEXCO PRIVATE LIMITED	Director	31/03/1995	31/03/1995	-	Active	NO
2	U23109WB1996PTC079509	SARAOGI UDYOG PRIVATE LIMITED	Director	26/04/1996	26/04/1996	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 09.08.2012

Names of Shareholders	No. of Shares
Ramesh Kumar Saraogi	537900
Anil Kumar Saraogi	546500
Jaishree Saraogi	175500
Kiran Saraogi	230000
Rishabh Kumar Saraogi	500
Duli Chand Saraogi (HUF)	50000
Arihant Mafexco Private Limited, India	55000
Saraogi Viniyog Private Limited, India	2759700
Dugar Construction Private Limited, India	2652000
Total	7007100

As on 09.08.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	78.02
Directors or relatives of directors	21.27
Others	0.71
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in the trading of Coal and Coke.
Products :	Steam Coal Coking Coal Metallurgical Coke

GENERAL INFORMATION

Customers :

· ACC Cement Limited

· Monnet Ispat and Energy Limited

· J.K. Paper Limited

· Bhushan Steel and Power Limited

· Jindal Steel and Power Limited

· Usha Martin Limited

· Jaypee Cement Limited

· ITC Limited

· Indian Metals and Ferro Alloys Limited

· Electrosteel Castings Limited

· Vedanta Aluminium Limited

No. of Employees :

Not Available

Bankers :

• Central Bank of India, 4 and 4/1, Red Cross Place, Kolkata – 700 001, West Bengal, India
• ICICI Bank Limited, R.N. Mukherjee Road, Kolkata, West Bengal, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Working Capital Loans From Banks	52.355	62.843
Total	52.355	62.843

Banking Relations :	--
Auditors :
Name :	R. Tulsian and Company Chartered Accountants
Address :	7/1C, Jatindra Mohan Avenue, Kolkata – 700 006, West Bengal, India
Tel. No.:	91-33-25431785/ 2270/ 2271
Fax No.:	91-33-25432270
E-Mail :	tulsian_tax@hotmail.com
Website :	www.itaxplanner.com
Income-tax PAN of auditor or auditor's firm :	AAGFR4955B
Company Under Common Control :	Saraogi Viniyog Private Limited, India (CIN No.: U65999WB1995PTC070950) Dugar Construction Private Limited, India

CAPITAL STRUCTURE

As on 09.08.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
7120000	Equity Shares	Rs.10/- each	Rs.71.200 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7007100	Equity Shares	Rs.10/- each	Rs.70.071 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		70.071	60.071	60.071
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		478.956	341.997	300.272
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		549.027	402.068	360.343
LOAN FUNDS
1] Secured Loans		52.355	62.843	39.703
2] Unsecured Loans		0.000	0.000	6.157
TOTAL BORROWING		52.355	62.843	45.860
DEFERRED TAX LIABILITIES		0.043	0.556	0.000
TOTAL		601.425	465.467	406.203
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16.297	13.642	11.637
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.170	0.170	0.145
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	373.177	716.287	717.155
	Sundry Debtors	842.552	507.528	316.751
	Cash & Bank Balances	669.419	386.190	143.635
	Other Current Assets	0.080	0.068	0.000
	Loans & Advances	346.019	172.044	332.683
Total Current Assets		2231.247	1782.117	1510.224
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1479.399	1223.799	1046.531
	Other Current Liabilities	89.550	56.990	33.525
	Provisions	77.340	49.673	35.843
Total Current Liabilities		1646.289	1330.462	1115.899
Net Current Assets		584.958	451.655	394.325
MISCELLANEOUS EXPENSES		0.000	0.000	0.096
TOTAL		601.425	465.467	406.203

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	4413.363	3748.070	3719.700
		Other Income	42.955	44.640	5.558
		TOTAL (A)	4456.318	3792.710	3725.258
Less	EXPENSES
		Office Expenses	4333.317	3682.230	3634.891
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	4333.317	3682.230	3634.891
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		123.001	110.480	90.367
Less	FINANCIAL EXPENSES (D)		44.413	40.079	24.377
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		78.588	70.401	65.990
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.972	0.729	0.700
	PROFIT BEFORE TAX (E-F) (G)		77.616	69.672	65.290
Less	TAX (H)		24.956	24.174	22.629
	PROFIT AFTER TAX (G-H) (I)		52.660	45.498	42.661
	TAX ADJUSTMENT IN RESPECT OF PREVIOUS YEARS		0.000	0.270	0.181
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		112.667	70.942	28.462
Less	APPROPRIATIONS
		Corporate Dividend Tax	0.796	0.499	0.000
		Proposed Dividend	4.905	3.004	0.000
	BALANCE CARRIED TO THE B/S		159.626	112.667	70.942
	Earnings Per Share (Rs.)		7.40	7.45	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.18	1.20	1.15
Net Profit Margin (PBT/Sales)	(%)	1.75	1.85	1.75
Return on Total Assets (PBT/Total Assets}	(%)	3.45	3.87	4.29
Return on Investment (ROI) (PBT/Networth)		0.14	0.17	0.18
Debt Equity Ratio (Total Debt/Networth)		0.10	0.15	0.13
Current Ratio (Current Asset/Current Liability)		1.35	1.34	1.35

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	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	Yes
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

REVIEW OF OPERATIONS:

The Indian coal industry, one of the largest in terms of reserve base and production level, has gained significant momentum in the past few years. Mainly dominated by PSUs like Coal India Limited, which contributes over 75% of the country’s total coal production, the industry has attracted government concern and investments. However, India has not been able to minimize its coal deficit despite huge resource base, and still depends on imports. As per their latest estimations, carried out in recent research report, the overall coal imports are anticipated to cross the 100 Million Metric Tons-mark in near future. Though faced with the odds of severe global recession during the year, the Company admirably reported Net turnover of Rs.4413.0000 Millions in the financial year ended March 31, 2012 as compared to Rs.3748.000 Millions during the previous financial year and a Profit before tax of Rs.77.620 Millions (Previous Year Rs.69.670 Millions).

BUSINESS OPERATIONS:

Though India has the fourth-largest proven coal reserves in the world, Indian coal is of poor quality. Nearly 83 percent of the Indian coal is of non-coking variety with high ash content. During the year under review they have placed considerable emphasis on imports instead of their own conversion from coal to coke, which they had taken-up under an agreement with The Durgapur Projects Limited, an undertaking of the West Bengal Government for usage of its manufacturing facilities in the last year to boost the turnover and profitability of the company. The company has played a major role in the market and is one of the leading facility providers to the industry having edge over its competitors which is well reflected in the turnover of the company and its profitability. During the year under review, there have been major exchange fluctuations that resulted to reduce the profitability and other risk factors, but the company has been able to combat the grim scenario of the economy. They believe the company is extremely well positioned to drive growth and create sustained value for all its stakeholders.

Since during the concerned year, the company focused on International trade and imports, bank assistance in the form of L/C was voluminous. To facilitate opening of L/Cs the company had to forward margins in the form of fixed deposits with the banks which resulted in an Interest Income of Rs.42.100 Millions. Though the resultant interest income of 42.100 millions pertains to facilitate trade operations of the company, it is disclosed as non-operating income i.e. other income as per the Generally Accepted principles of Accounts.

The company suffered exchange fluctuation loss to the tune of Rs.118.500 Millions which includes the unexpired foreign currency transactions valued as per AS-11. Though the said fluctuation loss pertains to Import of goods and is in the nature of the Purchase Cost to the company, but the same forms part of Other Expenses in the Statement of Profit and Loss Account. Their performance during the year under review has been extremely good on the back of some strategic initiatives. They have expanded their presence in eastern India and eyeing to open a 100% own subsidiary to Singapore. They are focused on imports instead of their own conversion of Indian coal because of high cost rate and poor quality of the coal.

FINANCIAL OBLIGATIONS:

The Company has managed to repay the unsecured loan liability thereby reducing the interest pressure on the profits of the company. The company has been regular in the payment of interest and/ or repayment of loans to financial institutions and/or banks during the year.

FIXED ASSETS:

· Freehold Land

· Office Premises

· Cellular Phone

· Office Equipments

· Electrical Installation

· Furniture and Fixtures

· Motor Car

· Scooter and Cycle

WEBSITE DETAILS:

CORPORATE OVERVIEW:

Subject aspires to embrace the future and building better tomorrows. They are an organization with passion for excellence and a never failing commitment towards their customers, employees and the community.

At Subject, they enable customers to facilitate better trading by creating new standards. Subject has been importing coal and coke all over the world, from countries like China, Australia and South Africa.

Subject purchases coal from Coal India Limited (CIL) through e-auction. They coordinate coal movement and help in transportation of coal from CIL mines to the customer plants like Aluminium, Steel, Sponge, Cement and Captive Power plants.

They have moved forward from trading to value addition in the Coking Coal segment. They have long term conversion agreement with Durgapur Projects Limited (DPL), the only merchant cookery in the country having recovery type coke ovens. They produce and market Low Ash Met Coke of world class quality to their host of customers in Iron and Steel Industry.

They recognize the emerging demand scenario in the core sector both in terms of quality and quantity and have established field offices, infrastructure and network to meet the challenges of the future.

The ability to successfully overcome commercial and technical challenges in this competitive industry has enabled Subject to develop an edge. In-depth understanding of the market has led to a large and loyal customer base comprising of Private and Limited Company’s. Timely services and superior quality are the strengths of the company.

PROFILE:

Subject an ISO 9001:2008 Certified Company, today is a reputed and trusted brand mainly because of its commitment to quality and reliability. There are fundamental beliefs that are inculcated and practiced in the organisation. In fact, the organisation culture is often dependent on its value systems.

The group’s principal activities are buying and selling coal related materials. With their trained professionals they provide optimal products and services. At Subject, they strive to understand changing customer needs and provide an overall experience that is unmatched.

MANAGEMENT

The Board of Directors at Subject are from the diverse fields of technology and commerce and are social visionaries who render strategic direction to the executive team in an economic and business environment.

The Board of Directors believes in ensuring and maximizing stakeholder value in a manner that is consistent with legal requirements and the highest standards of integrity.

The Boards of Executive Directors are responsible for conducting the general operations of Subject.

The Board of directors includes:

Mr. Ramesh Saraogi

Mr. Ramesh Saraogi attained remarkable achievements in the business arena and has made various valuable contributions to research work in the area of trading. He has considerable experience in corporate affairs and in coal and coke trading. Under his leadership, Subject has found its way to success.

Mr. Anil Saraogi

Mr. Anil Saraogi brings with him rich and diverse experience in coal and coke trading. He is a person with over 30 years of hands on experience in the industry. The Kolkata-based Director of Subject has been responsible for the growth and strategic planning for the entire Group.

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.54.03
UK Pound	1	Rs.82.43
Euro	1	Rs.70.49

INFORMATION DETAILS

Report Prepared by :

SMN / TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	7
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		53

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.