MIRA INFORM REPORT

Report Date :

12.01.2013

IDENTIFICATION DETAILS

Name :	SALASAAR IRON AND STEELS PRIVATE LIMITED (w.e.f. 31.10.2008)
Formerly Known As :	SRI SALASAAR KRAFT PAPER MILLS PRIVATE LIMITED
Registered Office :	21-1-823/3, Rikab Gunj, Hyderabad – 500 002, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	11.08.2006
Com. Reg. No.:	01-050859
Capital Investment / Paid-up Capital :	Rs.29.901 millions
CIN No.: [Company Identification No.]	U21012AP2006PTC050859
TAN No.: [Tax Deduction & Collection Account No.]	HYDS27482A
PAN No.: [Permanent Account No.]	AAMCS5534N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of TMT Steel Bar.
No. of Employees :	Not Available

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 147000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has been successful in wiping-off the accumulated losses of the previous years. However, the company is still improving. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some 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 – 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.

LOCATIONS

Registered Office :	21-1-823/3, Rikab Gunj, Hyderabad – 500 002, Andhra Pradesh, India
Tel. No.:	91-40-24578515
Fax No.:	91-40-24412319
E-Mail :	srinivasacs@gmail.com
Factory :	Sy. No.417, Pargi Road, Mogilligidda Village, Farooq Nagar Mandal, Mahaboob Nagar District, Andhra Pradesh, India
Branch Office :	5-2-202 to 205, 1^st Floor, Balaji Market, Distillery Road, Ranigunj, Secunderabad – 500 003, Andhra Pradesh, India

DIRECTORS

As on 29.09.2011

Name :

Mr. Paramender Kumar Agarwal

Designation :

Director

Address :

8-2-684/3/A/46, Road No.12, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India

Date of Birth/Age :

31.10.1970

Date of Appointment :

11.08.2006

DIN No.:

00573396

Name :

Mr. Kishore Murlidhar Agarwal

Designation :

Director

Address :

5-2-202 to 205, Balaji Market, Secunderabad – 500 003, Andhra Pradesh, India

Date of Birth/Age :

29.12.1955

Date of Appointment :

02.06.2010

DIN No.:

00900129

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	U27100AP1981PLC002969	PANCHRATNA METAL PROCESSING LIMITED	Director	02/04/1981	02/04/1981	-	Active	NO
2	U27109AP1994PTC017193	SHRI NARSINGH LAXMI STEELS PVT LTD	Director	15/03/1994	15/03/1994	-	Active	NO
3	U21012AP2006PTC050859	SALASAAR IRON AND STEELS PRIVATE LIMITED	Director	02/06/2010	02/06/2010	-	Active	NO

Name :

Mr. Vinod Kumar Agarwal

Designation :

Director

Address :

21-1-589, Rikab Gunj, Pathar Gatti, Ward – 21, Circle III, Hyderabad – 500 002, Andhra Pradesh, India

Date of Birth/Age :

06.04.1965

Date of Appointment :

11.08.2006

DIN No.:

02235962

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	U18101AP1993PTC016334	NAV SHAKTI TEXTILE PROCESSOR PRIVATE LIMITED	Director	23/09/1993	23/09/1993	-	Active	NO
2	U21012AP2006PTC050859	SALASAAR IRON AND STEELS PRIVATE LIMITED	Director	11/08/2006	11/08/2006	-	Active	NO
3	U21010AP1994PTC019068	VL PAPERS PRIVATE LIMITED	Director	09/12/2006	09/12/2006	06/05/2009	Active	NO
4	U18109AP2011PTC074444	SANGEETA DYEING AND PRINTING PRIVATE LIMITED	Director	12/05/2011	12/05/2011	-	Active	NO

Name :

Mr. Shankar Kishore Agarwal

Designation :

Additional Director

Address :

5-2-202 to 205, Balaji Market, Secunderabad – 500 003, Andhra Pradesh, India

Date of Birth/Age :

21.01.1984

Date of Appointment :

27.08.2012

DIN No.:

00900163

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	U27100AP1981PLC002969	PANCHRATNA METAL PROCESSING LIMITED	Director	30/09/2004	30/09/2004	-	Active	NO
2	U27109AP1994PTC017193	SHRI NARSINGH LAXMI STEELS PRIVATE LIMITED	Additional director	01/12/2011	01/12/2011	-	Active	NO
3	U21012AP2006PTC050859	SALASAAR IRON AND STEELS PRIVATE LIMITED	Additional director	27/08/2012	27/08/2012	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
Vinod Kumar Agarwal	510000
Jitender Kumar Agarwal	410000
Parmender Kumar Agarwal	210000
Praveen Kumar Agarwal	310000
Jagadish Prashad	110100
Rajesh Kumar Agarwal	410000
Reeta Bai	120000
Poornima Bai	130000
Ritu Agarwal	140000
Kavita Bai	130000
Prema Bai	100000
Sangeeta Bai	410000
Total	2990100

As on 29.09.2011

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

BUSINESS DETAILS

Line of Business :

Manufacturer of TMT Steel Bar.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v Punjab National Bank, Lalbazar Branch, Secunderabad – 500 015, Andhra Pradesh, India

v Vijaya Bank

v HDFC Bank Limited

v Indian Overseas Bank

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long Term Borrowings
Other Loans and Advances
BMW India Services Private Limited (Vehicle Loan)	1.647	0.000
Short Term Borrowings
Loans repayable on Demand	82.325	65.579
Total	83.972	65.579

Banking Relations :	--
Auditors :
Name :	N. Lakhminarayana and Associates Chartered Accountants
Address :	Flat Nos.302 and 303, Gupta Estate 3^rd Floor, Basheerbagh, Hyderabad – 500 004, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AAGFN4349H

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs.10/- each	Rs.70.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2990100	Equity Shares	Rs.10/- each	Rs.29.901 millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2990100	Equity Shares	Rs.10/- each	Rs.29.901 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		29.901	29.901	23.601
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6.903	0.000	0.000
4] (Accumulated Losses)		0.000	(0.104)	(1.940)
NETWORTH		36.804	29.797	21.661
LOAN FUNDS
1] Secured Loans		83.972	65.579	67.165
2] Unsecured Loans		51.171	54.415	32.515
TOTAL BORROWING		135.143	119.994	99.680
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		171.947	149.791	121.341
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		59.763	65.079	78.049
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		2.499	0.300	0.000
DEFERRED TAX ASSETS		0.556	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	57.404	36.136	42.167
	Sundry Debtors	111.226	54.069	11.079
	Cash & Bank Balances	2.533	0.297	0.707
	Other Current Assets	3.802	3.648	14.555
	Loans & Advances	3.931	3.407	0.000
Total Current Assets		178.896	97.557	68.508
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	65.497	10.126	22.126
	Other Current Liabilities	0.000	0.000	0.046
	Provisions	4.270	3.019	3.275
Total Current Liabilities		69.767	13.145	25.447
Net Current Assets		109.129	84.412	43.061
MISCELLANEOUS EXPENSES		0.000	0.000	0.231
TOTAL		171.947	149.791	121.341

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
SALES
	Income	575.799	397.977	35.803
	Other Income			0.000
	TOTAL (A)	575.799	397.977	35.803
EXPENSES
	Cost of Production	548.432	373.981	24.403
	Direct Expenses			3.015
	Other Expenses			1.641
	TOTAL (B)	548.432	373.981	29.059
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		27.367	23.996	6.744
INTEREST (D)		10.327	8.843	0.723
PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		17.040	15.153	6.021
DEPRECIATION/ AMORTISATION (F)		9.073	13.272	7.950
PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		7.967	1.881	(1.929)
TAX (H)		0.960	0.045	0.000
PROFIT/ (LOSS) AFTER TAX (G-H) (I)		7.007	1.836	(1.929)
Earnings/ (Loss) Per Share (Rs.)		2.33	0.61	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.22	0.46	(5.39)
Net Profit Margin (PBT/Sales)	(%)	NA	NA	(5.39)
Return on Total Assets (PBT/Total Assets}	(%)	3.34	1.16	(1.32)
Return on Investment (ROI) (PBT/Networth)		0.22	0.06	(0.09)
Debt Equity Ratio (Total Liability/Networth)		5.57	4.47	5.78
Current Ratio (Current Asset/Current Liability)		2.56	7.42	2.69

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	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	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	No

Unsecured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long Term Borrowings
Loans and Advances from Related Parties	51.171	54.415
Total	51.171	54.415

Bankers Charges Report as per Registry

Corporate identity number of the company	U21012AP2006PTC050859
Name of the company	SALASAAR IRON AND STEELS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	21-1-823/3, Rikab Gunj, Hyderabad – 500 002, Andhra Pradesh, India E-Mail: ljrkteam@gmail.com
This form is for	Modification of charge
Charge identification number of the modified	10185056
Type of charge	Book Debts Movable Property (not being pledge)
Particular of charge holder	Punjab National Bank, Lalbazar Branch, Secunderabad – 500 015, Andhra Pradesh, India E-Mail: BO3160@PNB.CU.IN
Nature of description of the instrument creating or modifying the charge	1. Hypothecation of Goods and Book Debts to secure the cash credit facility 2. Master Agreement for Inland Documentary Credit 3. General Counter indemnity
Date of instrument Creating the charge	11.06.2011
Amount secured by the charge	Rs.100.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Base Rate Plus 5% presently at 15% p.a. Terms of Repayment: On demand Margin: 25% on Stock 30% on Book Debts Extent and Operation of the charge: The Charge operates as security for the due repayment of credit facilities sanctioned to the company by the Bank of Rs.100.000 millions, together with interest, additional interest, liquidated damages, costs, expenses etc.
Short particulars of the property charged	First and Exclusive charge by way of Hypothecation of Raw material viz., MS INGOTS and BILLETS, Stock in Process, Iron Scrape, Finished Goods including TMT Bars, Receivables, other current asset, etc. First Charge on Block of Assets of the company
Particulars of the present modification	Enhancement and modification of Credit Limits. The credit limits after modification are as under Cash Credit (HYP) – 60.000 millions I L C - - 20.000 millions I L G - - 20.000 millions The overall credit limits stands at Rs.100.000 millions.

FIXED ASSETS:

v Plant and Machinery

v Fabrication Machinery

v Structural Fabrication

v Electrical Equipment

v Fire Bricks

v Building (Excluding Land)

v Gasifier (Burner)

v Rolls

v Lab Equipment

v Computer

v Motor Cycle

v Gas Cylinder

v Furniture and Fixtures

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.54.54
UK Pound	1	Rs.88.05
Euro	1	Rs.72.29

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
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.