MIRA INFORM REPORT

Report Date :

28.12.2013

IDENTIFICATION DETAILS

Name :	ARIHANT COAL SALES (INDIA) PRIVATE LIMITED
Registered Office :	Dhanshree Villa, Plot No. E-4/108, Arera Colony,Opposite Baghira Apartment, Bhopal – 462016, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	13.10.2003
Com. Reg. No.:	10-016143
Capital Investment / Paid-up Capital :	Rs. 30.000 Millions
CIN No.: [Company Identification No.]	U10102MP2003PTC016143
TAN No.: [Tax Deduction & Collection Account No.]	BPLA02790E
PAN No.: [Permanent Account No.]	AAFCA0718F
Legal Form :	Private Limited Liability Company
Line of Business :	Trading of Coal.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 1000000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established having a satisfactory track record. Trade relations are reported as fair. Business is active. Payment are reported to be slow but correct. 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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

India was ranked 94^th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: Suspended
Date	24.01.2013

Rating Agency Name	CRISIL
Rating	Short term rating: Suspended
Date	24.01.2013

Reason: The suspension of ratings is on account of Non-Cooperation by the company.

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 :	Dhanshree Villa, Plot No. E-4/108, Arera Colony,Opposite Baghira Apartment, Bhopal – 462016, Madhya Pradesh, India
Tel. No. :	91-755-4027500
Fax No. :	91-755-4236738
E-Mail :	dscmtnl@rediffmail.com arihantcoal@arihantcoal.com arihantcoals@gmail.com
Website :	http://www.arihantcoal.com
Mumbai Office:	304,Tanishka,WE Highway, Kandivali (East), Mumbai – 400101, Maharashtra, India
E-Mail :	mumbaioffice@arihantcoal.com

DIRECTORS

As on 30.09.2013

Name :

Mr. Anil Kumar Jain

Designation :

Managing director

Address :

E – 4/108, Arera Colony, Bhopal – 462016, Madhya Pradesh India

Date of Birth/Age :

30.05.1957

Date of Appointment :

13.10.2003

DIN No. :

00162191

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	Company/ LLP Status	Defaulting status
1	U10102MP2003PTC016143	ARIHANT COAL SALES (INDIA) PRIVATE LIMITED	Managing director	13/10/2003	13/10/2003	Active	NO
2	U45200MP2009PTC022107	ARIHANT INFRADEVELOPERS (INDIA) PRIVATE LIMITED	Director	03/07/2009	03/07/2009	Active	NO

Name :

Kalpana Jain

Designation :

Director

Address :

E – 4/108, Arera Colony, Bhopal – 462016, Madhya Pradesh India

Date of Birth/Age :

23.07.1963

Date of Appointment :

13.10.2003

DIN No. :

00162210

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	Company/ LLP Status	Defaulting status
1	U10102MP2003PTC016143	ARIHANT COAL SALES (INDIA) PRIVATE LIMITED	Director	13/10/2003	13/10/2003	Active	NO
2	U45200MP2009PTC022107	ARIHANT INFRADEVELOPERS (INDIA) PRIVATE LIMITED	Director	03/07/2009	03/07/2009	Active	NO

Name :

Nirmala Jain

Designation :

Director

Address :

E - 7/435, Arera Colony, Bhopal – 462016, Madhya Pradesh India

Date of Birth/Age :

21.02.1962

Date of Appointment :

13.10.2003

DIN No. :

00162224

Name :

Mr. Kapoor Chand Jain

Designation :

Director

Address :

E – 4/108, Arera Colony, Bhopal – 462016, Madhya Pradesh India

Date of Birth/Age :

15.08.1930

Date of Appointment :

13.10.2003

DIN No. :

00162242

Name :

Mr. Ankit Jain

Designation :

Director

Address :

E - 7/435, M.I.G. Arera Colony, Bhopal – 462016, Madhya Pradesh India

Date of Birth/Age :

08.08.1989

Date of Appointment :

10.08.2007

DIN No. :

01717590

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
K C Jain	2700
Anil Jain	132150
Kalpana Jain	128700
Nirmala Jain	6200
Ruchi Jain	200
Neeraj Jain	1500
Arvind Jain	2500
Sunita Jain	4000
Arun Jain (HUF)	5000
Anil Jain (HUF)	5000
Arvind Jain (HUF)	5500
Andaz Mercantile Private Limited	1500
Amber Enclave Private Limited	500
Libra Dealcom Private Limited	2000
Adarsh Commosales Private Limited	500
Bestway Hire Purchase Private Limited	1550
Jasmine Conclave Private Limited	500
Total	300000

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	4.00
Directors or relatives of Directors	96.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Trading of Coal.

GENERAL INFORMATION

Customers :

· Grasim Industries Limited

Avantha Power and Infrastructure Limited (Previously known as Bilt Power Limited)

HEG

Ambuja Cements Limited

Maratha Cement Works

Hindustan Zinc Limited

Birla Cellulosic

ACC Limited

Mangalam Cements Limited

Abishek Industries Limited

Adhunik Alloys and Power Limited

Nahar Industrial Enterprises

No. of Employees :

Not Available

Bankers :

· Bank of Baroda, T. T. Nagar, Bhopal - 462011, Madhya Pradesh, India

State Bank of India, Commercial Branch, LHO Complex, Hoshangabad Road, Bhopal - 462011, Madhya Pradesh, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Term loans from Banks (Secured by Hypothecation of vechiles and also by personal guarantee by directors)	3.060	0.000
Other external commercial borrowings (secured against charge of assets)	0.000	1.088
SHORT TERM BORROWINGS
Working capital loans from banks (Secured by hypothecation of stock and book debts and other assets of the company and also by personal gaurantee of the directors and equitable mortage of their personal properties)	279.763	0.000
Rupee term loans from banks (secured by hypothecation of stock and book debts of c. and other assets)	0.000	34.175
Total	282.823	35.263

Banking Relations :	--
Auditors :
Name :	Jayant Kothari and Company Chartered Accountants
Address :	129, Malviya Nagar, Bhopal, Madhya Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AAAAJ1234R

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
300,000	Equity Shares	Rs.100/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
300,000	Equity Shares	Rs.100/- each	Rs. 30.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	30.000	16.150	16.150
(b) Reserves & Surplus	222.299	150.065	116.857
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	37.837	29.137
Total Shareholders’ Funds (1) + (2)	252.299	204.052	162.144
(3) Non-Current Liabilities
(a) long-term borrowings	43.181	1.088	2.175
(b) Deferred tax liabilities (Net)	0.000	0.000	0.241
(c) Other long term liabilities	0.000	1442.507	175.338
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	43.181	1443.595	177.754
(4) Current Liabilities
(a) Short term borrowings	279.763	60.753	351.714
(b) Trade payables	1226.806	0.000	0.000
(c) Other current liabilities	0.000	0.000	51.208
(d) Short-term provisions	12.773	3.096	9.901
Total Current Liabilities (4)	1519.342	63.849	412.823
TOTAL	1814.822	1711.496	752.721
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	16.535	14.819	20.575
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.350	0.350	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	16.885	15.169	20.575
(2) Current assets
(a) Current investments	1.250	7.502	1.250
(b) Inventories	431.989	0.000	0.000
(c) Trade receivables	1055.046	707.598	275.427
(d) Cash and cash equivalents	271.170	653.700	53.366
(e) Short-term loans and advances	37.387	90.074	71.740
(f) Other current assets	1.095	237.453	330.363
Total Current Assets	1797.937	1696.327	732.146
TOTAL	1814.822	1711.496	752.721

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	2423.210	2428.009
		Other Income	41.465	24.885
		TOTAL (A)	2464.675	2452.894
Less	EXPENSES
		Purchase of Stock in trade	1935.110	1764.133
		Change in inventories of finished goods (including stock-in-trade) and work-in-process	(195.635)	94.009
		Employee benefit expenses	25.892	21.959
		Operation and Other Expenses	564.216	483.559
		TOTAL (B)	2329.583	2363.660	N.A.
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		135.092	89.234
Less	FINANCIAL EXPENSES (D)		81.041	33.695
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		54.051	55.539
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.333	3.943
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		50.718	51.596
Less	TAX (H)		7.621	18.389
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		43.097	33.207	27.219
	Earnings / (Loss) Per Share (Rs.)		143.66	205.62	168.54

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.75	1.35	1.35
Net Profit Margin (PBT/Sales)	(%)	2.09	2.12	2.13
Return on Total Assets (PBT/Total Assets}	(%)	2.80	3.02	6.85
Return on Investment (ROI) (PBT/Networth)		0.20	0.25	0.32
Debt Equity Ratio (Total Debt/Networth)		1.28	0.30	2.18
Current Ratio (Current Asset/Current Liability)		1.18	26.57	1.77

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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10255520	18/02/2012 *	1,500,000,000.00	BANK OF BARODA	T. T. NAGAR, BHOPAL - 462011, MADHYA PRADESH, INDIA	B33193715

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Loans and advances from directors	38.616	0.000
Other loans and advances	1.505	0.000
SHORT TERM BORROWINGS
Loans and advances from related parties	0.000	26.578
Total	40.121	26.578

CHANGE OF ADDRESS

The registered office of the company has been shifted from 196 Mezzanine Floor Kamdhenu Complex Zone-1 M.P. Nagar, Bhopal – 462011, Madhya Pradesh, India to the present address w.e.f. 17.05.2010.

FIXED ASSETS

· Tangible Assets

Land

Plant and Equipment

Furniture and Fixtures

Vehicles

Motor Vehicles

Office Equipment

Computer Equipments

Other Equipments

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.62.06
UK Pound	1	Rs.102.03
Euro	1	Rs.85.27

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.