MIRA INFORM REPORT

Report Date :

09.08.2013

IDENTIFICATION DETAILS

Name :	STEELAGE REFRACTORIES PRIVATE LIMITED
Registered Office :	G.T Road Sirhind Side Talwar Road, Opposite Ambay Majra post Box 24 Mandi Gobindgarh, Fatehgarh Sahib - 147301, Punjab
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.02.1974
Com. Reg. No.:	16-003399
Capital Investment / Paid-up Capital :	Rs.0.769 million
CIN No.: [Company Identification No.]	U26921PB1974PTC003399
TAN No.: [Tax Deduction & Collection Account No.]	PTLS10981F
PAN No.: [Permanent Account No.]	AACCS6137P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Fine Bricks, Constables, Burner Block, Arch Block, Magnestic Bricks etc.
No. of Employees :	110 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 11900
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is a well established company having moderate track record. Management has failed to file the latest financials since 2010 with the government department. Mr. Omprakash, the accountant and Mr. Abhinandan Garg, the director provided us with complete information and the latest financials as on 2011. Eventhough the sales turnover of the company has seen an increase, there appears a drastic dip in the net profitability during 2011. Profit margin seems to be low. External borrowings are huge and are increasing over years. However, trade relations are fair. Business is active. Payment terms are unknown. The company can be considered for business dealings with great 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 – 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

Name :	Mr. Omprakash
Designation :	Accountant
Contact No.:	91-9646138730
Date :	07.08.2013

LOCATIONS

Registered Office/ Factory :	G.T Road Sirhind Side Talwar Road, Opposite Ambay Majra post Box 24 Mandi Gobindgarh, Fatehgarh Sahib - 147301, Punjab, India
Tel. No.:	91-1765-256991/ 506250
Mobile No.:	91-9888467727 (Mr. Abhinandan Garg) 91-9646138730 (Mr. Om Prakash)
Fax No.:	91-1765-253043
E-Mail :	cfc.mca@gmail.com steelagegroups@yahoo.co.in
Website :	http://www.steelagerefractories.co.in
Area :	4.5 acre
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :	Mr. Krishan Chander Garg
Designation :	Director
Date of Appointment :	22.01.1976
DIN No.:	01118755
Name :	Mr. Gayatri Gupta
Designation :	Director
Date of Appointment :	20.01.1999
DIN No.:	01748507

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Mr. Krishan Chander Garg	44410
Mr. Gayatri Gupta	800

As on 30.09.2010

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacture of Fine Bricks, Constables, Burner Block, Arch Block, Magnestic Bricks etc.
Terms :
Selling :	Cash / Credit
Purchasing :	Cash / Credit

GENERAL INFORMATION

Suppliers :

Allied Minral Industries Private Limited

Customers :

Wholesalers End Users and Traders consumers’

• Bhavani Industries Limited

No. of Employees :

110 (Approximately)

Bankers :

Central Bank of India, Branch Office, Mandi Gobindgarh - 147301, Punjab, India

Facilities :

Cash and Credit Rs.9.000 millions, TL – Rs.5.000 millions (From Central Bank)

SECURED LOAN	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Central Bank of India: Cash Credit Account ODBD Account The above Scans are secured against hypothecation of Stocks , Receivables and father secured by equitable mortgage of land arid building of Company and of Steelage Tubes Private Limited and personally guaranteed by the Directors)	3.896 3.002	5.296 2.079
c) Term Loan secured against hypothecation of Machinery and further secured by equitable mortgage of land and building of Company and of Steelage Tubes Private Limited and personal My gua ran ted by the Directors)	4.165	4.795
AXIS Bank Mandi Gobindgarh. (Term Loan of car secured against Hire Purchase Agreement)	1.373	0.430
Total	12.436	12.600

Banking Relations :	--
Auditors :
Name :	Jain and Associates Chartered Accountant
Address :	SCO 819-20, Sector 22-A, Chandigarh – 160022, Punjab, India
PAN.:	AAAFJ6439Q
Sister concern :	Steelage Tubes Private Limited Address : G.T Road Sirhind Side Talwar Road, Opposite Ambay Majra post Box 24 Mandi Gobindgarh, Fatehgarh Sahib - 147301, Punjab, India Line of Business : Manufacture of Fine Bricks, Constables, Burner Block, Arch Block, Magnestic Bricks etc.

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
76920	Equity Shares	Rs.10/- each	Rs.0.769 million

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		0.769	0.769	0.769
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2.215	2.168	1.867
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2.984	2.937	2.636
LOAN FUNDS
1] Secured Loans		12.436	12.600	6.427
2] Unsecured Loans		7.965	7.487	6.121
TOTAL BORROWING		20.401	20.087	12.548
DEFERRED TAX LIABILITIES		1.040	0.574	0.791
TOTAL		24.425	23.598	15.975
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		13.478	10.907	4.264
Capital work-in-progress		0.023	1.128	0.409
INVESTMENT		0.010	0.010	0.010
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	10.768	11.561	8.033
	Sundry Debtors	4.888	5.014	7.166
	Cash & Bank Balances	1.541	0.302	0.467
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.649	0.806	0.966
Total Current Assets		17.846	17.683	16.632
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.824	5.465	4.370
	Other Current Liabilities	1.797	0.499	0.970
	Provisions	0.311	0.166	0.000
Total Current Liabilities		6.932	6.130	5.340
Net Current Assets		10.914	11.553	11.292
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		24.425	23.598	15.975

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	62.858	50.254	42.273
		Other Income	0.000	0.001	0.000
		TOTAL	62.858	50.255	42.273
Less	EXPENSES
		Cost of Goods sold	42.299	38.276	31.589
		Coal Consumed and Manufacture Expenses	14.786	7.314	6.845
		Payment to Employees	0.405	0.239	0.170
		Administrative and Other Expenses	1.347	1.151	0.930
		Repair Maintenance	0.198	0.266	0.227
		Selling and Distribution	0.209	0.142	0.310
		Previous Year Expenses	0.000	0.006	0.000
		Previous Year Income	0.000	0.000	(0.006)
		TOTAL	59.244	47.394	40.065
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		3.614	2.861	2.208
Less	FINANCIAL EXPENSES		2.332	2.132	1.356
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		1.282	0.729	0.852
Less/ Add	DEPRECIATION/ AMORTISATION		0.674	0.621	0.458
	PROFIT/ (LOSS) BEFORE TAX		0.608	0.108	0.394
Less	TAX		0.561	(0.193)	0.674
	PROFIT/ (LOSS) AFTER TAX		0.047	0.301	(0.280)
	Earnings/ (Loss) Per Share (Rs.)		0.61	3.91	2.15

Particulars	31.03.2013	31.03.2012
Sales Turnover (Approximately)	85.000	100.000

Expected Sales (2013-2014): Rs.100.000 Millions

The above information has been parted by Mr. Omprakash.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.07	0.60	(0.66)
Net Profit Margin (PBT/Sales)	(%)	0.97	0.21	0.93
Return on Total Assets (PBT/Total Assets}	(%)	1.94	0.38	1.89
Return on Investment (ROI) (PBT/Networth)		0.20	0.04	0.15
Debt Equity Ratio (Total Debt/Networth)		6.84	6.84	4.76
Current Ratio (Current Asset/Current Liability)		2.57	2.88	3.11

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	Yes
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	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	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

UNSECURED LOAN:

(Rs. in Millions)

Particulars	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Directors	5.033	5.031
From Shareholders	2.932	2.456
Total	7.965	7.487

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10166108	28/04/2012 *	9,000,000.00	CENTRAL BANK OF INDIA	BRANCH OFFICE, MANDI GOBINDGARH, Punjab - 147301,  INDIA	B39971973
2	90170528	24/01/1991	1,800,000.00	STATE BANK OF PATIALA	VIGOBI, VIGOBI, Punjab, INDIA	-
3	90170320	21/12/1987 *	818,000.00	STATE BANK OF PATIALA	MANDI, GOBINDGARH, Punjab, INDIA	-
4	90172494	29/07/1983 *	65,000.00	PUNJAB FINANCIAL CORP.	SEC.17-B, ANDIGARH, Chandigarh, INDIA	-

FIXED ASSETS

• Land
• Buildings
• Factory
• Plant and machinery
• Furniture and fixture
• Air conditioner
• Motor Vehicles
• Computer
• Office Equipment
• Telegram
• Generator
• Tractor
• Oil Tank

TRADE REFERENCE

• Allied Minral Industries Private Limited
• Bhavani Industries Limited

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.61.12
UK Pound	1	Rs.94.77
Euro	1	Rs.81.54

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		28

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.