MIRA INFORM REPORT

Report Date :

18.07.2013

IDENTIFICATION DETAILS

Name :	BSA STEELS PRIVATE LIMITED
Registered Office :	6-56/2, Opposite IDPL Factory, Balanagar, Hyderabad – 500037, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	23.08.2008
Com. Reg. No.:	01-060699
Capital Investment / Paid-up Capital :	Rs.9.485 Millions
CIN No.: [Company Identification No.]	U27106AP2008PTC060699
TAN No.: [Tax Deduction & Collection Account No.]	HYDB00956E
PAN No.: [Permanent Account No.]	AADCB5958N
Legal Form :	Private Limited Liability Company
Line of Business :	Trading of Iron and Steel Products.
No. of Employees :	23 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 310000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The profitability of the company seems to be low. The external borrowing appears to be huge. However, trade relations are reported to be 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 – 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BB- (Long Term Rating)
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation.
Date	June 2012

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 (GENERAL DETAILS)

Name :	Mr. Pawan Kumar Sonthalia
Designation :	Director
Contact No.:	91-9848031965
Date :	16.07.2013

LOCATIONS

Registered Office :	6-56/2, Opposite IDPL Factory, Balanagar, Hyderabad – 500037, Andhra Pradesh, India
Tel. No.:	91-40-23774273/ 75/ 66388417/ 8717
Mobile No.:	91-9848031965 (Mr. Pawan Kumar Sonthalia)
Fax No.:	91-40-23774269
E-Mail :	bsateels@rediffmail.com bsateels@gmail.com ca.arvindjain@hotmail.com
Location :	Owned
Branch Office :	1-5-644, Opposite IDPL Factory, Balanagar, Hyderabad – 500037, Andhra Pradesh, India

DIRECTORS

As on: 29.09.2012

Name :	Mr. Ajay Kumar Sonthalia
Designation :	Director
Address :	Plot No. 63 and 64, TPT Road [Transport Road], Secunderabad - 500000, Andhra Pradesh, India
Date of Birth/Age :	10.12.1966
Date of Appointment :	23.08.2008
PAN No.:	AJRPS3695P
DIN No.:	00345939
Name :	Mr. Pawan Kumar Sonthalia
Designation :	Director
Address :	Plot No. 63 and 64, TPT Road [Transport Road], Secunderabad - 500000, Andhra Pradesh, India
Date of Birth/Age :	15.07.1961
Date of Appointment :	23.08.2008
PAN No.:	AKAPS0169G
DIN No.:	00345953

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

SHAREHOLDING DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Bodies corporate	29.52
Directors or relatives of directors	70.48
Total	100.00

BUSINESS DETAILS

Line of Business :	Trading of Iron and Steel Products.
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

GENERAL INFORMATION

Customers :

Retailers and End Users

No. of Employees :

23 (Approximately)

Bankers :

HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India

Tel. No.: 91-22-66521308

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
SHORT TERM BORROWINGS
Other loans and advances, others (Secured Against Stock and Debtors)	220.492	106.974
Total	220.492	106.974

Banking Relations :	--
Auditors :
Name :	Arvind Jain and Associates Chartered Accountants
Address :	25 to 29, 2^nd Floor, Hyderi Complex, Pan Bazar, Ranigunj, Secunderabad-500003, Andhra Pradesh, India
PAN No:	ACOPJ9666M
Associates :	B.D Steels Private Limited CIN No.: U27104AP2008PTC060134

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
948500	Equity Shares	Rs.10/- each	Rs.9.485 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	9.485	9.485
(b) Reserves & Surplus	68.640	62.113
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	78.125	71.598
(3) Non-Current Liabilities
(a) long-term borrowings	93.154	76.823
(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)	93.154	76.823
(4) Current Liabilities
(a) Short term borrowings	220.492	106.974
(b) Trade payables	235.747	126.134
(c) Other current liabilities	5.121	5.109
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	461.360	238.217
TOTAL	632.639	386.638
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2.422	2.882
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	6.900	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.450	0.450
(c) Deferred tax assets (net)	0.106	0.066
(d) Long-term Loan and Advances	1.158	10.197
(e) Other Non-current assets	0.136	0.171
Total Non-Current Assets	11.172	13.766
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	246.070	114.832
(c) Trade receivables	370.752	252.973
(d) Cash and cash equivalents	0.985	0.901
(e) Short-term loans and advances	3.660	4.166
(f) Other current assets	0.000	0.000
Total Current Assets	621.467	372.872
TOTAL	632.639	386.638

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		9.460
2] Share Application Money		0.000
3] Reserves & Surplus		53.440
4] (Accumulated Losses)		0.000
NETWORTH		62.900
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		10.397
TOTAL BORROWING		10.397
DEFERRED TAX LIABILITIES		0.000
TOTAL		73.297
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.000
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	105.543
	Sundry Debtors	0.000
	Cash & Bank Balances	0.020
	Other Current Assets	4.222
	Loans & Advances	0.000
Total Current Assets		109.785
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	36.701
	Other Current Liabilities	0.000
	Provisions	0.000
Total Current Liabilities		36.701
Net Current Assets		73.084
MISCELLANEOUS EXPENSES		0.213
TOTAL		73.297

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL	2835.192	2927.391	105.543
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	2825.900	2917.664	105.543
	PROFIT BEFORE TAX		9.292	9.727	0.000
Less	TAX		2.889	3.074	0.000
	PROFIT AFTER TAX		6.403	6.653	0.000
	Earnings Per Share (Rs.)		6.75	7.01	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.23	0.23	0.00
Return on Total Assets (PBT/Total Assets}	(%)	1.49	2.52	0.00
Return on Investment (ROI) (PBT/Networth)		0.12	0.14	0.00
Debt Equity Ratio (Total Debt/Networth)		4.01	2.57	0.17
Current Ratio (Current Asset/Current Liability)		1.35	1.57	2.99

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

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
Loans and advances from directors	93.154	36.823
Loans and advances from others	0.000	40.000
Total	93.154	76.823

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U27106AP2008PTC060699
Name of the company	BSA STEELS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	6-56/2, Opposite IDPL Factory, Balanagar, Hyderabad – 500037, Andhra Pradesh, India E-mail: ca.arvindjain@hotmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10238858
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India E-mail: RBBform8@hdfcbank.com
Nature of instrument creating charge	Supplementary Letter of Hypothecation.
Date of instrument Creating the charge	07.04.2012
Amount secured by the charge	Rs.205.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest at the rate as may be communicated by the Bank from time to time. Terms of Repayment On Demand Margin As may be stipulated by the Bank from time to time. Extent and Operation of the charge Hypothecation by way of First Charge on Company's Stocks, Book Debts, Plant and Machinery and Vehicles etc, as a continuing security as mentioned in Column No.15 to secure below for the repayment of Rs.205.000 Millions together with interest, costs, charges, expenses and other moneys due and payable by the Company to the Bank. Others NIL
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Stock in Trade, consisting of raw materials, goods in process of manufacturing finished goods, and other merchandise whatsoever being movable properties. All the debts, that is, all the book debts, outstandings, monies receivables, claims, bills, invoice documents, contracts, guarantees, and rights. The movable plant and machinery and vehicles which may now or at any time hereafter belong to the Borrower.
Date of instrument modifying the charge	07.01.2011
Particulars of the present modification	The Charge shall now stand increased from Rs.193.000 Millions to Rs.205.000 Millions against the security of Stocks, Book Debts, plant and machinery and vehicles of the Company.

FIXED ASSETS

Tangible Assets

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer 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.59.36
UK Pound	1	Rs.89.69
Euro	1	Rs.77.99

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
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		27

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.