MIRA INFORM REPORT

Report Date :

29.01.2013

IDENTIFICATION DETAILS

Name :	MANU STEEL PRIVATE LIMITED
Registered Office :	3266, Peepal Mahadevhauz Quazi, Delhi – 110 006
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	23.04.1985
Com. Reg. No.:	55-020760
Capital Investment / Paid-up Capital :	Rs. 1.800 Millions
CIN No.: [Company Identification No.]	U74899DL1985PTC020760
TAN No.: [Tax Deduction & Collection Account No.]	DELM14710D
PAN No.: [Permanent Account No.]	AAACM1283A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of ERQ Tubes and Tubular Poles etc.
No. of Employees :	20 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (14)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appears huge accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a secured 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

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.

INFORMATION PARTED BY

Name :	Mr. Manu
Designation :	Manager
Contact No.:	91-9811660661
Date :	23.01.2013

LOCATIONS

Registered Office :	3266, Peepal Mahadevhauz Quazi, Delhi – 110 006, India
Tel. No.:	Not Available
Mobile No.:	91-9811660661 (Mr. Manu)
Fax No.:	Not Available
E-Mail :	manusteelgzb@gmail.com jainska@yahoo.co.in
Location :	Owned
Factory :	C-121, Bulandshah Road, Industrial Area, Ghaziabad – 201001, Uttar Pradesh, India
Tel. No.:	91-120-2700098 / 3293095
Fax No.:	91-120-2700098

DIRECTORS

As on: 29.09.2012

Name :

Mr. Rattan Lal Kansal

Designation :

Director

Address :

150-A, Model Town, Ghaziabad – 201 009 , Uttar Pradesh, India

Date of Birth/Age :

17.04.1960

Date of Appointment :

23.04.1985

DIN No.:

00092892

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	U74899DL1985PTC020760	MANU STEEL PRIVATE LIMITED	Director	23/04/1985	23/04/1985	-	Active	NO
2	U74899DL1985PLC021914	RATTAN TUBES LIMITED	Director	02/09/1985	02/09/1985	-	Active	NO
3	U74899DL1984PTC019352	SHREE SHANKAR PLYWOOD PRIVATE LIMITED	Director	26/09/1990	26/09/1990	-	Active	NO

Name :

Mr. Rakesh Kumar Kansal

Designation :

Director

Address :

150-A, Model Town, Ghaziabad – 201 009 , Uttar Pradesh, India

Date of Birth/Age :

01.01.1935

Date of Appointment :

23.04.1985

DIN No.:

01736618

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	U74899DL1985PTC020760	MANU STEEL PRIVATE LIMITED	Director	23/04/1985	23/04/1985	-	Active	NO
2	U74899DL1984PTC019352	SHREE SHANKAR PLYWOOD PRIVATE LIMITED	Director	20/09/1990	20/09/1990	-	Active	NO
3	U40300DL2012PTC229985	R.R.R.K. ELECTECH PRIVATE LIMITED	Director	16/01/2012	16/01/2012	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Manu
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Rakesh Kansal	27710
Rattan Lal Kansal	20010
Anuradha Kansal	4500
Manu Kansal	5500
Rajesh Kansal	7100
Ravi Kansal	1000
Pradeep Gupta	7380
Rakish Rani	900
Vivek Kansal	1000
Bhrahma Nand Gupta	3500
Shankuntla Devi	1000
Kamal Gupta	1900
Dhiraj Kumar	3500
B. L. Thaparia	10000
B. N. Karwa	6000
Saroj Thaparia	8500
Monika Gupta	5000
Anand Kumar	1000
Bhushan Kumar	1000
Pravin Kumar	5500
Dheeraj Gupta	3500
Pankaj Kumar	6100
O. P. Kansal	10000
Vijay Kansal	10000

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of ERQ Tubes and Tubular Poles etc.
Products :	ERW Tubes Tubular Poles
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

20 (Approximately)

Bankers :

• Axis Bank Limited, Plot No. III N/30, Ambedkar Road, Nehru Nagar, Ghaziabad - 201001, Uttar Pradesh, India
• Standard Chartered Bank
• HDFC Bank Limited
• Central Bank of India, Asaf Ali Road, New Delhi - 110002, India

Delhi, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
HDFC Car Loan (Against Car)	0.217	0.342
HDFC Car Loan (Against Car)	0.146	0.278
Axis Bank Limited C/C A/c (Hypothecation of Factory Land and Building)	30.848	19.693
Total	31.211	20.313

Banking Relations :	--
Auditors :
Name :	Surender Kumar Jain and Associates Chartered Accountant
Address :	101 Delhi Chamber Building, Delhi Gate, New Delhi – 110002, India
Tel. No.:	91-11-23275375 / 23266021

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
180000	Equity Shares	Rs.10/- each	Rs. 1.800 Millions

Reconciliation of the number of shares outstanding at the begining and at the end of the reporting period:

At the begining of the reporting period(Equity shares of Rs.10 each fully paid)	180000
At the end of the reporting period(Equity shares of Rs.10 each fully paid)	180000

Shareholders holding more than 5 % shares specifying the number of shares held of each class

Equity shares of Rs.10 each fully paid up	Number of shares	% of holding
Rakesh Kansal	27710	15.39
Rattan Lal Kansal	20010	11.12
B L Thaparia	10000	5.56
G P Bansal	10000	5.56
Vijay Bansal	10000	5.56

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		1.800	1.800	1.800
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		(2.487)	0.316	0.316
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		(0.687)	2.116	2.116
LOAN FUNDS
1] Secured Loans		31.211	20.313	16.866
2] Unsecured Loans		9.685	0.395	1.543
TOTAL BORROWING		40.896	20.708	18.409
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		40.209	22.824	20.525
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.848	3.058	2.976
Capital work-in-progress		0.000	1.178	1.384
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		1.018	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	15.641	11.719	13.103
	Sundry Debtors	30.645	35.161	25.024
	Cash & Bank Balances	0.150	0.054	0.347
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	8.136	5.015	4.174
Total Current Assets		54.572	51.949	42.648
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8.807	12.842	16.072
	Other Current Liabilities	9.394	23.495	13.837
	Provisions	0.028	0.033	0.000
Total Current Liabilities		18.229	36.370	29.909
Net Current Assets		36.343	15.579	12.739
MISCELLANEOUS EXPENSES		0.000	3.009	3.426
TOTAL		40.209	22.824	20.525

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from	184.430	160.077	102.217
		Other Income	1.328	0.007	0.606
		TOTAL (A)	185.758	160.084	102.823
Less	EXPENSES
		Raw Material Consumed	177.729	149.611	95.317
		Manufacturing Expenses	0.000	6.000	3.174
		Employee's Remuneration and Benefits	0.936	0.599	0.630
		Selling & Distribution Expenses	0.000	0.311	0.189
		Other Expenses	5.738	0.623	0.681
		(Increase)/Decrease in Stock	(2.617)	(0.533)	0.084
		TOTAL (B)	181.786	156.611	100.075
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3.972	3.473	2.748
Less	FINANCIAL EXPENSES (D)		3.153	2.281	2.687
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.819	1.192	0.061
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.478	0.531	0.361
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		0.341	0.661	(0.300)
Less	TAX (H)		0.159	0.032	0.000
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		0.182	0.629	(0.300)
Less	Earlier Year Adjustment		0.000	0.005	0.005
Less	Current Year Deferred Tax		0.000	0.206	(0.093)
	BALANCE CARRIED TO THE B/S		0.341	0.418	(0.212)
	Earnings / (Loss) Per Share (Rs.)		1.90	3.49	(1.68)

Expected Sales (2012-13): Rs. 170.000 Millions

The above information has been parted by Mr. Manu

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.09	0.39	(0.29)
Net Profit Margin (PBT/Sales)	(%)	0.18	0.41	(0.29)
Return on Total Assets (PBT/Total Assets}	(%)	0.59	1.20	(0.66)
Return on Investment (ROI) (PBT/Networth)		(0.49)	0.29	(0.14)
Debt Equity Ratio (Total Liability/Networth)		(86.06)	26.97	22.83
Current Ratio (Current Asset/Current Liability)		2.99	1.43	1.43

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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
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]	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

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U74899DL1985PTC020760
Name of the company	MANU STEEL PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	3266, Mahadevhauz Quazi, Delhi – 110 006, India jainska@yahoo.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10064795
Type of charge	Immovable property
Particular of charge holder	Axis Bank Limited Plot No. III N/30, Ambedkar Road, Nehru Nagar, Ghaziabad - 201001, Uttar Pradesh, India arun.rana@axisbank.com
Nature of instrument creating charge	Memorandum of Entry for Extension of Equitable Mortgage dated 30.03.2011
Date of instrument Creating the charge	30.03.2011
Amount secured by the charge	Rs. 25.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 3.35% above Axis Bank's Base Rate i.e. presently at 9% p.a. Hence effective rate at present is 12.35% p.a. payable at monthly rests, subject to change from time to time as decided by the Bank Rate Terms of repayment On Demand Extent and operation of the charge Extension of Equitable mortgage of industrial property situated at Plot No. 121 Block-C, Site-1, Bulandshar Road Industrial Area, Ghaziabad Uttar Pradesh, India and hypothecation of current assets and movable fixed assets of the company present and future excluding vehicle from Rs.17.500 Millions to Rs. 25.000 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	5781 Sq. Yard industrial property at Plot No. 121 Block-C, Site-1, Bulandshar Road Industrial Area, Ghaziabad Uttar Pradesh, India
Particulars of the present modification	Memorandum of Entry for Extension of Equitable mortgage dated 30.03.2011

Unsecured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
Shanu Kansal	0.185
Standard Chartered bank	0.000
Active Promo	1.000
Kirti Trading	2.000
Porter Buildcon	4.000
Ravi Kansal	1.000
Vinod Kumar	1.500
Total	9.685	0.395

FIXED ASSETS:

• Land
• Building
• Plant and Machinery
• Air Conditioner
• Car
• Typewriter
• Furniture and Fixture
• Computers
• Scooter
• Fax

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. 53.89
UK Pound	1	Rs. 84.93
Euro	1	Rs. 72.51

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--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		14

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.