MIRA INFORM REPORT

Report Date :

01.06.2013

IDENTIFICATION DETAILS

Name :	GANGA IRON AND STEEL TRADING COMPANY LIMITED
Registered Office :	29-A, Small Factory Area, Bagadganj, Nagpur – 440 008, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	03.06.2008
Com. Reg. No.:	11-183081
Capital Investment / Paid-up Capital :	Rs.123.969 Millions
CIN No.: [Company Identification No.]	U27310MH2008PLC183081
TIN No.:	27220702786
TAN No.: [Tax Deduction & Collection Account No.]	NGPG02516D
PAN No.: [Permanent Account No.]	AADCG2390R
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Trader of all types of Iron and Steel.
No. of Employees :	80 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 1100000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was established as a partnership concern during 1991 by the name ‘Ganga Iron and Steel Trading Company’ and during 2008 it got converted into a private limited company. It is an established company having a satisfactory track record. It is an authorised distributor for Steel Authority of India Limited, Rashtriya Ispat Nigam Limited, Kamdhenu Isapt Limited etc. There appears huge external borrowings recorded by the company. It has recorded a healthy growth in its income from operations during 2012 but the profits have slightly dipped. Trade relations are reported as decent. Business is active. Payments 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term Rating = BB+
Rating Explanation	Moderate risk of default
Date	20.07.2012

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

Name :	Mr. Kamlesh
Designation :	Account Executive
Contact No.:	91-712-2771428
Date :	30.05.2013

LOCATIONS

Registered Office/ Corporate Office/ Stock Yard and Godown 1 :	29-A, Small Factory Area, Bagadganj, Nagpur – 440 008, Maharashtra, India
Tel. No.:	91-712-2771428/ 2779358/ 2730062
Fax No.:	91-712-2765250
E-Mail :	gangairon@yahoo.co.in
Website :	http://www.gangasteel.com
Branch Office 1 :	156, Light Industrial Area, Bhilai – 490 026, Chhattisgarh, India
Tel. No.:	91-788-2285762/ 2286196
Fax No.:	91-788-2285018
E-Mail :	gangaironsteel@gmail.com
Branch Office 2 :	Sant Tukdoji Ward, Near Taj Engineering, N.H.No.6, Bhandara – 441 904, Maharashtra, India
Stock Yard and Godown 2 :	Plot No.79-80, At Bhanewadi, Near Pardi Octroi Naka, Nagpur – 440 008, Maharashtra, India
Stock Yard and Godown 3 :	D-2, MIDC Industrial Area, Butibori, Nagpur – 440 018, Maharashtra, India
Stock Yard and Godown 4 :	Sant Tukdoji Ward, Near Taj Engineering, N.H.No.6, Bhandara - 441 904, Maharashtra, India

DIRECTORS

As on: 29.09.2012

Name :	Mrs. Anju Mukesh Agrawal
Designation :	Director
Address :	287, Hariniketan, Wardhman Nagar, Nagpur – 440 008, Maharashtra, India
Date of Birth/Age :	19.01.1968
Qualification :	BA
Date of Appointment :	03.06.2008
DIN No.:	01712274
Name :	Mr. Mukesh Omprakash Agrawal
Designation :	Director
Address :	287, Hariniketan, Wardhman Nagar, Nagpur – 440 008, Maharashtra, India
Date of Birth/Age :	09.07.1968
Qualification :	BE
Date of Appointment :	03.06.2008
DIN No.:	01712337
Name :	Mrs. Seema Gopal Agrawal
Designation :	Director
Address :	287, Wardhaman Nagar, Nagpur – 440 009, Maharashtra, India
Date of Birth/Age :	20.01.1969
Date of Appointment :	03.06.2008
DIN No.:	01712492
Name :	Mr. Gopal Omprakash Agrawal
Designation :	Director
Address :	287, Wardhaman Nagar, Nagpur – 440 009, Maharashtra, India
Date of Birth/Age :	25.10.1965
Qualification :	B. Com
Date of Appointment :	03.06.2008
DIN No.:	01712592

KEY EXECUTIVES

Name :	Mr. Kamlesh
Designation :	Account Executive

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	13.56
Directors or relatives of Directors	82.27
Other top fifty shareholders	4.17
Total	100.00

BUSINESS DETAILS

Line of Business :

Trader of all types of Iron and Steel.

Products :

Item Code No. (ITC Code)	72
Product Description	Iron and Steel Products

· MS Angle

· MS Channel

· Beam

· TMT Bars

· MS Flat

· MS Round

· Billet

· Plate / Chequered Plate

· CR Coil and Sheet

· HR Coil and Sheet

· Wire Rods

· GC Sheet

· GP Sheet

· Rail

· Pipe

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

80 (Approximately)

Bankers :

Bank of Baroda, Plot No.51, Rajat Arcade, MIDC T. Point, Wadi, Nagpur – 440 023, Maharashtra, India

Facilities :

Total Facility Rs.400.00 Millions (Bank of Baroda)

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Short-term borrowings
Working capital loans from banks	403.655	292.283
Intercorporate borrowings	0.000	278.788
Total	403.655	571.071

Banking Relations :	--
Auditors :
Name :	Loya Bagri and Associates Chartered Accountants
Address :	Nagpur, Maharashtra, India
Tel. No.:	Savitri Niwas, Flat No.102, Plot No.24, Kheta Layout, Wardha Road, Sneh Nagar, Somalwad, Nagpur, Maharashtra, India
PAN.:	AAAFL2607C
Relatives of Key Management Personnel and Their enterprises:	· Ganga Iron and Steel Trading Company. · Ganga Udyog · Kaushik Udyog Limited D-2, MIDC Industrial Area, Butibori, Nagpur, Maharashtra, India Tel. No.: 91-7104-280205 Fax No.: 91-7104-280028 E-mail : kaushik_udyog@yahoo.co.in

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12396901	Equity Shares	Rs.10/- each	Rs.123.969 Millions

Disclosure of shareholding more than five per cent in company

Name of shareholder	Number of shares held in company	Percentage of shareholding in company
Anju Mukesh Agrawal	3875000	31.26%
Seema Gopal Agrawal	4365000	35.21%
Gopal Omprakash Agrawal	1080000	8.71%
Muke Sh Omprakash Agrawal	615000	4.96%

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		123.969	122.523	75.350
2] Share Application Money		0.000	7.230	123.845
3] Reserves & Surplus		156.447	120.666	20.735
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		280.416	250.419	219.930
LOAN FUNDS
1] Secured Loans		403.655	571.071	0.480
2] Unsecured Loans		330.799	0.744	347.088
TOTAL BORROWING		734.454	571.815	347.568
DEFERRED TAX LIABILITIES		0.017	0.038	0.000
TOTAL		1014.887	822.272	567.498
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		13.219	11.578	10.986
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.001
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	552.277	384.757	364.379
	Sundry Debtors	303.458	334.290	214.260
	Cash & Bank Balances	7.069	7.262	38.973
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	205.011	216.499	42.738
Total Current Assets		1067.815	942.808	660.350
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	35.275	105.638	92.706
	Other Current Liabilities	16.072	11.476	1.223
	Provisions	14.800	15.000	9.910
Total Current Liabilities		66.147	132.114	103.839
Net Current Assets		1001.668	810.694	556.511
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1014.887	822.272	567.498

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	3656.433	2857.555	1924.427
		Other Income	4.150	6.848	4.490
		TOTAL (A)	3660.583	2864.403	1928.917
Less	EXPENSES
		Purchases of stock-in-trade	3650.866	2736.665
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(167.520)	(20.378)	1870.244
		Employee benefit expense	2.166	1.934
		Other expenses	56.160	52.064
		TOTAL (B)	3541.672	2770.285	1870.244
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		118.911	94.118	58.673
Less	FINANCIAL EXPENSES (D)		71.357	46.927	28.755
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		47.554	47.191	29.918
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.351	2.117	1.794
	PROFIT BEFORE TAX (E-F) (G)		45.203	45.074	28.124
Less	TAX (H)		15.206	15.035	9.996
	PROFIT AFTER TAX (G-H) (I)		29.997	30.039	18.128
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		50.773	20.734	2.606
	BALANCE CARRIED TO THE B/S		80.770	50.773	20.734
	Earnings Per Share (Rs.)		2.44	3.09	2.41

Particulars	31.03.2013
Sales Turnover (Approximately)	3400.000
	Due to Recession

Expected Sales (2013-14) : Rs.3500.000 Millions

The above information has been parted by Mr. Kamlesh

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.82	1.05	0.94
Net Profit Margin (PBT/Sales)	(%)	1.24	1.58	1.46
Return on Total Assets (PBT/Total Assets}	(%)	4.18	4.72	4.19
Return on Investment (ROI) (PBT/Networth)		0.16	0.18	0.13
Debt Equity Ratio (Total Debt /Networth)		2.62	2.28	1.58
Current Ratio (Current Asset/Current Liability)		16.14	7.14	6.36

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Rs. In Millions

Particular	31.03.2012	31.03.2011	31.03.2010
Creditors due others	35.275	105.638	92.706
Total	35.275	105.638	92.706

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%	Yes
14]	Estimation for coming financial year	Yes
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

FINANCIAL PERFORMANCE:

Time and money waits for none and as the time passes the company is moving at a greater speed as compared to the previous year. The company recorded a Net Profit of Rs.29.97 Millions during the year the as against a Net Profit of Rs.30.039 Millions during the previous financial year. In the years to come the company is looking forward to give its best.

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2012	As on 31.03.2011
Long-term borrowings
Intercorporate borrowings	100.000	0.000
Short-term borrowings
Term loans from others	0.000	0.744
Intercorporate borrowings	230.799	0.000
Total	330.799	0.744

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U27310MH2008PLC183081
Name of the company	GANGA IRON AND STEEL TRADING COMPANY LIMITED
Address of the registered office or of the principal place of business in India of the company	29-A, Small Factory Area, Bagadganj, Nagpur – 440 008, Maharashtra, India gangairon@yahoo.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10225132
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	Bank of Baroda, Plot No.51, Rajat Arcade, MIDC T. Point, Wadi, Nagpur – 440 023, Maharashtra, India mca21@in.com
Nature of instrument creating charge	1. Supplemental Composite Agreement of Hypothecation of Goods, Book Debts, Movable Machinery and Vehicle. 2. Composite Hypothecation Agreement
Date of instrument Creating the charge	25.03.2013
Amount secured by the charge	Rs.400.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 3% above base rate i.e 13.25% p.a. at present with monthly rests. Terms of Repayment on demand Margin 25% on all types of stock / book debts. Extent and Operation of the charge The charge operate as security on the properties of teh company
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of stock of steel ie. round, angles, channel, flats, beams, flats, etc. and book debts of the company.
Date of instrument modifying the charge	29.09.2011
Particulars of the present modification	By Present Modification Cash Credit Limit Was Increase From Rs.300.000 Millions To Rs. 400.000 Millions. Thus Total Credit Facilities Stand At Rs.400.000 Millions.

FIXED ASSETS:

· Buildings (Godown)

· Vehicles

· Trailors

· Generator

· Weigh Bridge

· Cranes

· Furniture, Fittings and Fittings

· Office 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.56.50
UK Pound	1	Rs.86.01
Euro	1	Rs.73.68

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.