MIRA INFORM REPORT

Report Date :

09.07.2013

IDENTIFICATION DETAILS

Name :	A.V. ISPAT PRIVATE LIMITED

Registered Office :	Agamkuan, PS – Agamkuan, Patna – 800007, Bihar

Country :	India

Financials (as on) :	31.03.2012

Date of Incorporation :	06.11.1990

Com. Reg. No.:	03-004218

Capital Investment / Paid-up Capital :	Rs. 79.100 Millions

CIN No.: [Company Identification No.]	U27107BR1990PTC004218

PAN No.: [Permanent Account No.]	AABCA9469P

TIN No.:	10080321093

Legal Form :	Private Limited Liability Company

Line of Business :	Trader of Iron and Steel and PVC Pipe.

No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 593000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is an established company having fair track record. The company’s capital structure and liquidity position appears to be strong and healthy. Profit margin appears to be good. Trade relations are fair. Business is active. Payment terms reported as regular and as per commitments. The company can be considered good 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

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

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 DECLINE BY

Name :	Mr. Sumit Kheria
Designation :	Director
Contact No.:	91-9939457777
Date :	06.07.2013

LOCATIONS

Registered Office :	Agamkuan, PS – Agamkuan, Patna – 800007, Bihar, India
Tel. No.:	91-612-2222565/2672347
Mobile No.:	91-9939457777 (Mr. Sumit Kheria) 91-9431018503 (Mr. Vinod Kumar Kheria) 91-9431128292 (Mr. Vikas Sharma)
Fax No.:	Not Available
E-Mail :	sumit_kheria@hotmail.com

DIRECTORS

As on 29.09.2012

Name :

Mr. Vinod Kumar Kheria

Designation :

Director

Address :

Moti Mahesh Nikunj, Road No. – 12, Rajendra Nagar, Patna – 800016, Bihar, India

Date of Appointment :

06.11.1990

DIN No.:

00981241

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	U27107BR1990PTC004218	A.V. ISPAT PRIVATE LIMITED	Director	06/11/1990	06/11/1990	-	Active	NO
2	U74999BR2003PTC010486	SANTAINATH YARNS PRIVATE LIMITED	Director	19/12/2003	19/12/2003	-	Active	NO
3	U55100BR2005PTC011332	T.L.ENTERPRISES PRIVATE LIMITED	Director	05/05/2005	05/05/2005	-	Active	NO
4	U70100MH2005PTC154350	ABSOLUTE LAND DEVELOPERS PRIVATE LIMITED	Director	29/06/2005	29/06/2005	-	Strike off	NO
5	U45200BR2008PTC013598	BAJAJ BUILDCON PRIVATE LIMITED	Director	06/05/2008	06/05/2008	-	Active	NO
6	U27100BR2009PTC014469	BAJAJ IRON AND STEEL PRIVATE LIMITED	Director	06/06/2009	06/06/2009	-	Active	NO
7	U51909WB2007PTC121077	TWINKLE ELECTRIC DEALER PRIVATE LIMITED	Director	26/07/2011	26/07/2011	-	Active	NO

Name :

Mr. Sumit Kheria

Designation :

Directir

Address :

303, Pushpanjali Plaza, Basant Vihar Colony, Boring Road, Patna – 800016, Bihar, India

Date of Appointment :

09.09.2006

DIN No.:

01232291

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	U27107BR1990PTC004218	A.V. ISPAT PRIVATE LIMITED	Director	09/09/2006	09/09/2006	-	Active	NO
2	U55100BR2005PTC011332	T.L.ENTERPRISES PRIVATE LIMITED	Director	29/09/2006	29/09/2006	-	Active	NO
3	U27100BR1997PTC007895	SINGHANIA RE-ROLLING MILLS PRIVATE LIMITED	Additional director	19/12/2008	19/12/2008	16/09/2009	Active	NO
4	U74999BR2003PTC010486	SANTAINATH YARNS PRIVATE LIMITED	Director	24/01/2011	24/01/2011	-	Active	NO
5	U51909WB2007PTC121077	TWINKLE ELECTRIC DEALER PRIVATE LIMITED	Director	26/07/2011	26/07/2011	-	Active	NO

Name :

Mr. Ankit Kheria

Designation :

Directir

Address :

Moti Mahesh Nikunj, Road No. – 12, Rajendra Nagar, Patna – 800016, Bihar, India

Date of Appointment :

08.09.2011

DIN No.:

03434149

KEY EXECUTIVES

Name :	Mr. Vikas Sharma
Designation :	Marketing Executive

MAJOR SHAREHOLDERS

As on 29.09.2012

Names of Shareholders		No. of Shares
Vinod Kumar Kheria		12125
Arun Kumar Saraf		750
Binod Kumar Saraf		750
Hari Shankar Sharma		700
Kailash Chandra Jhunjhunwala		500
Pramod Kumar Gupta		500
Rakesh Kumar Dalmia		700
Shakuntala Sharma		450
Satyanarayan Saraf		1500
Shyam Lal Saraf		1500
Sita Devi Agarwal		500
Maya Devi Saraf		500
Sushil Kumar Sharma		600
Mahesh Chandra Kothari		500
Venus Mercandise (India) Private Limited, India		1900
Jajodia Consultants Private Limited, India		2200
Ran International Private Limited, India		10400
Sumit Kheria		371151
Anju Kheria		166310
Ankit Kheria		113264
Vinod Kumar Kheria (HUF)		11200
Grover Distributosrs Private Limited, India		16000
Sita Ram Investment Private Limited, India		12000
Mohan Hare Purchase Private Limited, India		32000
Santainnath Ispat Private Limited, India		33000
Total		791000

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Bodies corporate	13.59
Directors or relatives of Directors	85.21
Other top fifty shareholders	1.20
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of Iron and Steel and PVC Pipe.

Products :	Iron and Steel

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

Bank Of Baroda, Exhibition Road, Patna – 800001, Bihar, India
State Bank of India, Commercial Branch Alipore, 24/1/1, Alipore Road, Kolkata – 700027, West Bengal, India

Facilities :

Secured Loans	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
Rupee term loans from banks	0.302	1.117
Total	0.302	1.117


Banking Relations :	--

Auditors :
Name :	Lodha Patel Wadhwa and Company Chartered Accountants
Address :	211A, Ashiana Plaza, Budh Marg, Patna – 800001, Bihar, India
PAN No.:	AAAFL3677N

Related parties :	Santainath Yarns Private Limited, India CIN No.: U74999BR2003PTC010486 PAN No.: AAICS4974Q

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount

800000	Equity Shares	Rs. 100/- each	Rs. 80.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

791000	Equity Shares	Rs. 100/- each	Rs. 79.100 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	79.100	79.100
(b) Reserves & Surplus	69.094	67.055
(c) Money received against share warrants	0.000	0.000

(2) Share Application money pending allotment	0.000	0.209
Total Shareholders’ Funds (1) + (2)	148.194	146.364

(3) Non-Current Liabilities
(a) long-term borrowings	27.307	23.874
(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)	27.307	23.874

(4) Current Liabilities
(a) Short term borrowings	25.697	0.000
(b) Trade payables	0.894	0.894
(c) Other current liabilities	2.000	1.131
(d) Short-term provisions	1.241	1.728
Total Current Liabilities (4)	29.832	3.753

TOTAL	205.333	173.991

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	8.311	6.944
(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	11.775	11.569
(c) Deferred tax assets (net)	0.214	0.132
(d) Long-term Loan and Advances	0.428	0.428
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	20.728	19.073

(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	7.282	9.703
(c) Trade receivables	3.356	0.332
(d) Cash and cash equivalents	3.940	14.638
(e) Short-term loans and advances	170.027	130.108
(f) Other current assets	0.000	0.137
Total Current Assets	184.605	154.918

TOTAL	205.333	173.991

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		75.800
2] Share Application Money		13.455
3] Reserves & Surplus		58.538
4] (Accumulated Losses)		0.000
NETWORTH		147.793
LOAN FUNDS
1] Secured Loans		5.091
2] Unsecured Loans		0.057
TOTAL BORROWING		5.148
DEFERRED TAX LIABILITIES		0.000

TOTAL		152.940

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		6.044
Capital work-in-progress		0.000

INVESTMENT		8.502
DEFERRED TAX ASSETS		0.109

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	14.704
	Sundry Debtors	9.821
	Cash & Bank Balances	7.092
	Other Current Assets	0.000
	Loans & Advances	109.786
Total Current Assets		141.403
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.894
	Other Current Liabilities	0.541
	Provisions	1.898
Total Current Liabilities		3.333
Net Current Assets		138.070

MISCELLANEOUS EXPENSES		0.215

TOTAL		152.940

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010s
	SALES
		Income			79.415
		Other Income			6.163
		Increase/(Decrease) in stock			(23.726)
		TOTAL	14.445	16.952	61.852

Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	10.839	13.691	59.206

	PROFIT BEFORE DEPRECIATION		3.606	3.261	2.646

Less/ Add	DEPRECIATION/ AMORTISATION		0.663	0.496	0.552

	PROFIT BEFORE TAX		2.943	2.765	2.094

Less	TAX		0.905	0.848	0.646

	PROFIT AFTER TAX		2.038	1.917	1.448

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		9.659	7.742	6.294

	BALANCE CARRIED TO THE B/S		11.697	9.659	7.742

	Earnings Per Share (Rs.)		2.57	2.42	1.91

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	14.11	11.31	2.34

Return on Total Assets (PBT/Total Assets}	(%)	1.59	1.78	1.42

Return on Investment (ROI) (PBT/Networth)		0.02	0.02	0.01

Debt Equity Ratio (Total Debt /Networth)		0.36	0.16	0.03

Current Ratio (Current Asset/Current Liability)		6.19	41.28	1.02

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	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	Yes
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:

Particulars	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
Loans and advances from related parties	27.005	22.757
Short Term Borrowings
Loans taken for fixed assets	25.697	0.000
Total	52.702	22.757

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U27107BR1990PTC004218
Name of the company	A.V. ISPAT PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Agamkuan, PS – Agamkuan, Patna – 800007, Bihar, India Email ID : sumit_kheria@hotmail.com
This form is for	Creation of charge
Type of charge	Immovable property Book debts Others (Stock)
Particular of charge holder	Bank Of Baroda, Exhibition Road, Patna – 800001, Bihar, India Email ID : exhpt@bankofbaroda.com
Nature of instrument creating charge	General form of guarantee Sanction letter Board resolution Memorandum of entry Composite hypothecation agreement
Date of instrument Creating the charge	12.01.2013
Amount secured by the charge	Rs. 50.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 4.50% above base rate i.e; 15.00% p.a (at present) with monthly rest, subject to change as per guideline of the bank Terms of Repayment 12 Month subject to annual review Margin 25.00% Stock 40.00% Book debt up to 90 days Extent and Operation of the charge Hypothecation of stock and book debt value Rs. 11.470 Millions and Rs. 65.000 Millions respectively as per balance sheet on 31.03.2013 Em of land and building in the name of M/s Santainath Ispat Private Limited now changed to Santai Nath Yarns Private Limited through its managing director Mr. Vinod Kumar Kheria situated at Mauza Rahidachak Baghali Ibrahim, P.S Alamganj District Patna Registered mortgage of Land and shed in the name of Smt Anju Kheria situated at Plot No.- 519, 522, 523(P), Khata No.-56.79 and 45
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of stock and book debt valued Rs. 11.470 Millions and Rs. 65.000 Millions respectively as per balance sheet on 31.03.2013 Em of land and building in the name M/s Santai Nath Ispat Private Limited now changed to Santai Nath Yarns Private Limited through its managing director Mr. Vinod Kumar Kheria situated at Mauza Rahidachak Baghali Ibrahim, P.S Alamganj District Patna Registered mortgage of Land and shed in the name of Smt Anju Kheria situated at Plot No.- 519, 522, 523(P), Khata No.-56.79 and 45part of S. Plot No.-519, 522, 523, Tauzi No.-12/9 C, Plot No.- A/7. MV of land and building Rs. 15.541 Millions Registered mortgage of land and shed in the name of Smt Anju Kheria situated at Plot No.- 519, 522, 523(p), Khata No.-56.79 and 45, Thana No.- 16, Mauza Rashidachak, Ward No.-40. MV of land and building is Rs 6.500 Millions per valuation report dated on 30.10.2012 Lien on fixed deposit of Rs. 2.100 Millions in the name of the company Lien on RD of Rs. 0.200 Millions in the name of the company for 12 month, to be kept under bank's lien and maturity proceeds to be kept under lien in the form of FDR Personal guaratee of Mr. Vinod Kumar Kheria, Mr.Sumit Kheria, Mr. Ankit Kheria and Mrs. Anju Kheria corporate guaratee of Santainath Yarns Private Limited.
Whether any of the property or interest therein under reference is not registered in the name of the company	Santainath Yarn Private Limited Anju Kheria

FIXED ASSETS:

Land
Building
Plant and Equipment
Factory Equipment
Furniture and Fixture
Vehicle
Office Equipment
Computer Equipment

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. 60.34
UK Pound	1	Rs. 90.79
Euro	1	Rs. 77.81

INFORMATION DETAILS

Information Gathered by :	SVA

Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.

MIRA INFORM REPORT

14.11

1.59

0.02

0.36

6.19

Unit