MIRA INFORM REPORT

Report Date :

02.08.2013

IDENTIFICATION DETAILS

Name :	ACKROLL STEEL PRIVATE LIMITED
Registered Office :	523/524, GIDC, Kathwada, Road No. 14, Near Odhav Ring Road Circle, Ahmedabad-382430, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	17.08.2000
Com. Reg. No.:	038544
Capital Investment / Paid-up Capital :	Rs.1.500 Millions
CIN No.: [Company Identification No.]	U27209GJ2000PTC038544
TAN No.: [Tax Deduction & Collection Account No.]	AHMA01135B
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of H.R. Sheets, C R Sheets, C.R.F.H Coils, etc.
No. of Employees :	25 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 184000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported to be usually correct and as per commitments. The company can be considered normal 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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 [GENERAL DETAILS]

Name :	Mr. Sandeep
Designation :	Sales Manager
Contact No.:	91-9825061381
Date :	31.07.2013

LOCATIONS

Registered Office/ Factory :	523/524, GIDC, Kathwada, Road No. 14, Near Odhav Ring Road Circle, Ahmedabad-382430, Gujarat, India
Tel. No.:	91-79-22901626/22900520/22902813/22900111
Mobile No.:	91-9825061381 [Mr. Sandeep]
Fax No.:	91-79-22902813
E-Mail :	ackroll1@gmail.com ack_ro11@yahoo.com
Website :	www.ackroll.com
Location :	Owned

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Vijaybhai Mohanbhai Makwana

Designation :

Director

Address :

A-7, Rajratna Society, Odhav, Ahmedabad, India

Date of Birth/Age :

30.08.1976

Date of Appointment :

17.08.2000

DIN No.:

01347665

Other Directorship :

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U27209GJ2000PTC038544	ACKROLL STEEL PRIVATE LIMITED	Director	17/08/2000	17/08/2000	Active	NO
2	U67120GJ2008PTC053642	STAVAN SECURITIES SERVICES PRIVATE LIMITED	Additional director	5/03/2009	5/03/2009	Active	NO
3	U51102GJ2012PTC069693	KAUSHALESH AGRI-TECH PRIVATE LIMITED	Director	2/04/2012	2/04/2012	Active	NO

Name :

Mr. Mohanbhai Ranchodbhai Makwana

Designation :

Director

Address :

A-7, Rajrathna Society, Odhav, Ahmedabad, India

Date of Birth/Age :

22.08.1943

Date of Appointment :

17.08.2000

DIN No.:

00254246

Other Directorship :

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U27209GJ2000PTC038544	ACKROLL STEEL PRIVATE LIMITED	Director	17/08/2000	17/08/2000	Active	NO
2	U67120GJ2008PTC053642	STAVAN SECURITIES SERVICES PRIVATE LIMITED	Additional director	5/03/2009	5/03/2009	Active	NO
3	U51102GJ2012PTC069693	KAUSHALESH AGRI-TECH PRIVATE LIMITED	Director	2/04/2012	2/04/2012	Active	NO

Name :

Ms. Shardaben Mohanbhai Makwana

Designation :

Director

Address :

A-7, Rajrathna Society, Odhav, Ahmedabad, India

Date of Birth/Age :

24.07.1946

Date of Appointment :

01.02.2009

DIN No.:

02507845

Name :

Ms. Sonalben Vijaybhai Makwana

Designation :

Director

Address :

A-7, Rajrathna Society, Odhav, Ahmedabad, India

Date of Birth/Age :

08.12.1975

Date of Appointment :

01.02.2009

DIN No.:

02507850

Name :

Ms. Rakshaben Arunbhai Makwana

Designation :

Director

Address :

A-7, Rajrathna Society, Odhav, Ahmedabad, India

Date of Birth/Age :

15.04.1976

Date of Appointment :

01.02.2009

DIN No.:

02507892

KEY EXECUTIVES

Name :	Mr. Sandeep
Designation :	Sales Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Mohalbhai R. Mawana	10000
Vijaybhai M. Makwana	10000
Vijaybhai M. Makwana	60000
Sardaben M, Makwana	10000
Rakshben Arunbhai Makwana	10000
Mohanbhai Makwana	50000
TOTAL	150000

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Trader of H.R. Sheets, C R Sheets, C.R.F.H Coils, etc.
Products :	Hot Rolled Products Cold Rolled Products Hot Rolled Sheets Cold Rolled Sheets C.R.F.H. Coils
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

S R Steels

Customers :

Wholesalers, Retailers and End Users

No. of Employees :

25 (Approximately)

Bankers :

HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings
Volkswagen Finance Private Limited	2.228	0.000
Payable within one year	(0.961)	0.000
Short Term Borrowings
HDFC Bank Limited	27.630	0.000
TOTAL	28.897	0.000
Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings
Loans and advances from related parties:
Loan from others	26.341	49.000
Loan from directors	41.088	20.490
TOTAL	67.429	69.490
NOTES: Loan from family members is repayable after 12 months. Loan from Volkswagen is secured against hypothecation of car and repayable in 32 monthly installment of Rs.80101 each. Loan from HDFC bank is secured against hypothecation of stock, book debts and Collateral secure against mortgage of industrial plot belonging to Associate concern.

Banking Relations :	--
Auditors :
Name :	Bhardresh and Siddharth Associates Chartered Accountants
Address :	203, Nalanda Enclave, Pritamnagar, Ahmedabad – 380007, Gujarat, India
PAN No:	AACFB3138N

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs.10/- each	Rs.1.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1.500	1.500
(b) Reserves & Surplus	44.676	34.832
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	46.176	36.332
(3) Non-Current Liabilities
(a) long-term borrowings	68.696	69.490
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	68.696	69.490
(4) Current Liabilities
(a) Short term borrowings	27.630	0.000
(b) Trade payables	0.058	0.141
(c) Other current liabilities	3.810	4.202
(d) Short-term provisions	5.000	4.700
Total Current Liabilities (4)	36.498	9.043
TOTAL	151.370	114.865
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	5.255	2.313
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	5.255	2.313
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	60.901	34.800
(c) Trade receivables	69.048	39.671
(d) Cash and cash equivalents	4.401	17.644
(e) Short-term loans and advances	0.000	13.340
(f) Other current assets	11.765	7.097
Total Current Assets	146.115	112.552
TOTAL	151.370	114.865

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		1.500
2] Share Application Money		0.000
3] Reserves & Surplus		26.822
4] (Accumulated Losses)		0.000
NETWORTH		28.322
LOAN FUNDS
1] Secured Loans		26.415
2] Unsecured Loans		85.731
TOTAL BORROWING		112.146
DEFERRED TAX LIABILITIES		0.000
TOTAL		140.468
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.882
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	48.782
	Sundry Debtors	70.953
	Cash & Bank Balances	2.399
	Other Current Assets	0.000
	Loans & Advances	19.877
Total Current Assets		142.011
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	2.925
	Provisions	1.500
Total Current Liabilities		4.425
Net Current Assets		137.586
MISCELLANEOUS EXPENSES		0.000
TOTAL		140.468

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	843.955	759.251	734.032
		Other Income	0.369	0.135	0.325
		TOTAL (A)	844.324	759.386	734.357
Less	EXPENSES
		Purchase of stock in trade	814.395	706.789
		Employee benefits	5.413	4.562	720.733
		Other expenses	26.577	12.805
		Change in inventories of FG, WIP and stock in trade	(26.100)	13.981
		TOTAL (B)	820.285	738.137	720.733
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		24.039	21.249	13.624
Less	FINANCIAL EXPENSES (D)		8.575	7.989	8.508
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		15.464	13.260	5.116
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.619	0.573	0.426
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		14.845	12.687	4.690
Less	TAX (H)		5.000	4.678	1.502
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		9.845	8.009	3.188
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		25.581	17.572	14.384
	BALANCE CARRIED TO THE B/S		35.426	25.581	17.572
	Earnings / (Loss) Per Share (Rs.)		65.63	53.40	21.25

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.17	1.05	0.43
Net Profit Margin (PBT/Sales)	(%)	1.75	1.67	0.64
Return on Total Assets (PBT/Total Assets}	(%)	9.80	11.05	3.24
Return on Investment (ROI) (PBT/Networth)		0.32	0.35	0.17
Debt Equity Ratio (Total Debt/Networth)		2.09	1.91	4.12
Current Ratio (Current Asset/Current Liability)		4.00	12.45	32.09

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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	Yes
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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

NOTE:

The registered office of the company has been shifted from 3 Shivan Indu Estatenr, Gujarat Bottling Rakhial, Ahmedabad, India to the present address w.e.f.01.11.2012.

FIXED ASSETS:

• Machinery
• Furniture
• Office equipments
• Vehicles

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.60.74
UK Pound	1	Rs.92.05
Euro	1	Rs.80.60

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.