MIRA INFORM REPORT

Report Date :

24.06.2013

IDENTIFICATION DETAILS

Name :	UPPER INDIA STEEL MFG AND ENGINEERING CO LIMITED
Registered Office :	Dhandari Industrial Area, Focal Point Sherpur Kalan, Ludhiana – 141010, Punjab
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	21.08.1961
Com. Reg. No.:	16-002397
Capital Investment / Paid-up Capital :	Rs. 115.200 Millions
CIN No.: [Company Identification No.]	U27104PB1961PLC002397
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of specialized steel products for automotive ancillary industries, Indian railways and engineering goods industry.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 2400000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears drastic dip in its profitability during 2012. However, general financial position seems to be strong. Trade relations are reported to be fair. Business is active. Payment are reported to be usually correct and as per commitment. The company can be considered normal for business dealings at usual trade terms and condition.

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	CARE
Rating	Long term bank facilities: BB+
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation.
Date	November 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.

LOCATIONS

Registered Office :	Dhandari Industrial Area, Focal Point Sherpur Kalan, Ludhiana – 141010, Punjab, India
Tel. No.:	91-161-2670719/2670530
Fax No.:	91-161-2674303/2671898
E-Mail :	rksaigal@upperindiasteel.com
Website :	www.upperindiasteel.com
Manufacturing Facility:	Located at Ludhiana

DIRECTORS

As on 24.09.2012

Name :

Mr. Gursimram Singh Grewal

Designation :

Managing Director

Address :

655, Gurdev Nagar, Pakhowal Road, Ludhiana, Punjab, India

Date of Birth/Age :

01.12.1964

Date of Appointment :

11.01.2007

PAN No.:

ABYPG9316J

DIN No.:

01139494

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	U27320PB1964PLC002516	UPPER INDIA SPECIAL CASTINGS LIMITED	Director	29/04/1993	29/04/1993	01/12/2007	Active	NO
2	U45202PB2006PTC030293	EXCEL SPORTS PRIVATE LIMITED	Director	05/06/2006	05/06/2006	16/08/2006	Active	NO
3	U27104PB1961PLC002397	UPPER INDIA STEEL MFG AND ENGINEERING CO LIMITED	Managing director	11/01/2007	11/01/2007	-	Active	NO

Name :

Mr. Gurlal Singh Grewal

Designation :

Whole – time Director

Address :

655, Gurdev Nagar, Pakhowal Road, Ludhiana, Punjab, India

Date of Birth/Age :

04.04.1938

Date of Appointment :

29.09.1973

DIN No.:

00302597

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	U27104PB1961PLC002397	UPPER INDIA STEEL MFG AND ENGINEERING CO LIMITED	Whole-time director	29/09/1973	29/09/1973	-	Active	NO
2	U27320PB1964PLC002516	UPPER INDIA SPECIAL CASTINGS LIMITED	Director	26/03/1993	26/03/1993	-	Active	NO
3	U01122PB1994PTC014755	INDUS FLORA TECH PRIVATE LIMITED	Director	27/06/1994	27/06/1994	-	Active	NO
4	U01119TN1995PLC029830	INDUS FLORABASE LIMITED	Director	13/02/1995	13/02/1995	18/08/2009	Active	NO
5	U15205PB2000PTC023238	NUTRIMAX FOOD PRIVATE LIMITED	Managing director	06/01/2000	06/01/2000	-	Active	NO

Name :

Mr. Kushal Grewal

Designation :

Whole – time Director

Address :

653, Gurdev Nagar, Pakhowal Road, Ludhiana, Punjab, India

Date of Birth/Age :

22.03.1964

Date of Appointment :

11.01.2007

DIN No.:

01191519

Name :

Mr. Saminder Singh Grewal

Designation :

Whole – time Director

Address :

654, Gurdev Nagar, Pakhowal Road, Ludhiana, Punjab, India

Date of Birth/Age :

14.12.1974

Date of Appointment :

04.10.2006

DIN No.:

00989278

Name :

Mr. Ashok Singh Garcha

Designation :

Director

Address :

B-XX-2906, Gurdev Nagar, Civil Lines, Ludhiana, Punjab, India

Date of Birth/Age :

18.05.1964

Date of Appointment :

29.09.2001

PAN No.:

ABKPG4763H

DIN No.:

00344374

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	U29212PB1972PTC003094	ASHOK ENGINEERING AND AGRICULTURAL INDUSTRIES PRIVATE LIMITED	Director	19/02/1988	19/02/1988	-	Active	NO
2	U27104PB1961PLC002397	UPPER INDIA STEEL MFG AND ENGINEERING CO LIMITED	Director	29/09/2001	29/09/2001	-	Active	NO

Name :

Mr. Sant Prasad Singh Grewal

Designation :

Director

Address :

1229 Maple Street, Box 102, Fenwick, Ontario, Canada, LOS ICO

Date of Birth/Age :

28.08.1940

Date of Appointment :

29.09.2001

PAN No.:

AFKPG4271J

DIN No.:

00552395

Name :

Mr. Gurmohan Singh Grewal

Designation :

Director

Address :

1746, S. Highland Drive, Sparta, WI54656, U.S.A

Date of Birth/Age :

04.10.1938

Date of Appointment :

29.09.2001

PAN No.:

AFMPG5409A

DIN No.:

00791151

Name :

Mr. Rajindar S. Grewal

Designation :

Director

Address :

465, Mooresfield Street, Elgin, Llinois – 60124, U.S.A

Date of Birth/Age :

22.01.1965

Date of Appointment :

06.03.2007

PAN No.:

CAVPS7478B

DIN No.:

01745568

Name :

Pritpal Singh Grewal

Designation :

Chairman

Address :

655, Gurdev Nagar, Pakhowal Road, Ludhiana, Punjab, India

Date of Birth/Age :

15.03.1931

Date of Appointment :

10.01.2007

DIN No.:

00344057

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	U27104PB1961PLC002397	UPPER INDIA STEEL MFG AND ENGINEERING CO LIMITED	Director	10/01/2007	21/08/1961	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Raj Kumar Saigal
Designation :	Secretary
Address :	168, Phase-II, Urban Estate, Dugri Road, Ludhiana, Punjab, India
Date of Birth/Age :	24.08.1962
Date of Appointment :	01.04.1990
PAN No.:	AEBPS2331D

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.09.2012

SHAREHOLDING DETAIL FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on 24.09.2012

Category	Percentage
Directors or relatives of Directors	75.65
Other top fifty shareholders	24.35
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of specialized steel products for automotive ancillary industries, Indian railways and engineering goods industry.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Canara Bank, Bharat Nagar Chowk, Ludhiana – 141001, Punjab, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long-term Borrowings
Term loans	11.530	19.419
Total	11.530	19.419
Short-term borrowings
Working capital loans from banks (Hypothecation of stock)	555.507	547.437
Loans repayable on demand (against debtors)	162.720	213.204
Total	718.227	760.641

Banking Relations :	--
Auditors :
Name :	D. Sharma and Company Chartered Accountants
Address :	E.R. 18, PACCA Bagh, Civil Lines, Jalandhar, Punjab, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAAFD5551H
Enterprises/Trusts over which Key Management Personnel have control and with whom transactions have been made during the financial year:	· Satinder Kaur Education Trust · Bhai Chetan Singh Education Trust

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs. 100.000 Millions
2000000	Preference Shares	Rs.10/- each	Rs. 20.000 Millions
	Total		Rs. 120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9600000	Equity Shares	Rs.10/- each	Rs. 96.000 Millions
1920000	Preference Shares	Rs.10/- each	Rs. 19.200 Millions
	Total		Rs. 115.200 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	115.200	115.200
(b) Reserves & Surplus	472.591	467.110
(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)	587.791	582.310
(3) Non-Current Liabilities
(a) long-term borrowings	120.430	19.419
(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)	120.430	19.419
(4) Current Liabilities
(a) Short term borrowings	830.562	839.851
(b) Trade payables	30.002	54.614
(c) Other current liabilities	45.489	37.028
(d) Short-term provisions	2.901	8.480
Total Current Liabilities (4)	908.954	939.973
TOTAL	1617.175	1541.702
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	476.997	417.663
(ii) Intangible Assets	3.536	3.009
(iii) Capital work-in-progress	0.000	13.155
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.500	0.500
(c) Deferred tax assets (net)	22.085	23.230
(d) Long-term Loan and Advances	15.895	15.976
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	519.013	473.533
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	490.512	608.745
(c) Trade receivables	508.994	386.933
(d) Cash and cash equivalents	52.897	22.902
(e) Short-term loans and advances	45.759	49.589
(f) Other current assets	0.000	0.000
Total Current Assets	1098.162	1068.169
TOTAL	1617.175	1541.702

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		115.200
2] Share Application Money		0.000
3] Reserves & Surplus		428.461
4] (Accumulated Losses)		0.000
NETWORTH		543.661
LOAN FUNDS
1] Secured Loans		538.702
2] Unsecured Loans		66.010
TOTAL BORROWING		604.712
DEFERRED TAX LIABILITIES		0.000
TOTAL		1148.373
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		400.587
Capital work-in-progress		0.000
INVESTMENT		0.500
DEFERREX TAX ASSETS		22.051
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	482.006
	Sundry Debtors	386.715
	Cash & Bank Balances	29.495
	Other Current Assets	0.000
	Loans & Advances	58.892
Total Current Assets		957.108
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	210.179
	Other Current Liabilities	10.238
	Provisions	11.456
Total Current Liabilities		231.873
Net Current Assets		725.235
MISCELLANEOUS EXPENSES		0.000
TOTAL		1148.373

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2441.017	2140.362	1972.745
		Other Income	12.342	6.203	6.121
		TOTAL (A)	2453.359	2146.565	1978.866
Less	EXPENSES
		Cost of materials consumed	1509.053	1298.894
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(22.441)	(42.802)
		Employee benefit expense	277.755	227.273
		Other expenses	511.833	438.444
		TOTAL (B)	2276.200	1921.809	1778.422
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		177.159	224.756	200.444
Less	FINANCIAL EXPENSES (D)		127.858	107.661	90.981
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		49.301	117.095	109.463
Less/ Add	DEPRECIATION/ AMORTISATION (F)		41.611	41.474	41.928
	PROFIT BEFORE TAX (E-F) (G)		7.690	75.621	67.535
Less	TAX (H)		(2.057)	27.376	15.050
	PROFIT AFTER TAX (G-H) (I)		9.747	48.135	52.485
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	14.951	3.922
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	30.000	30.000
		Tax on Dividend	NA	8.480	11.456
	BALANCE CARRIED TO THE B/S		NA	24.606	14.951
	Earnings Per Share (Rs.)		0.66	4.75	5.46

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.40	3.52	3.41
Net Profit Margin (PBT/Sales)	(%)	0.32	3.53	3.42
Return on Total Assets (PBT/Total Assets}	(%)	0.48	5.03	7.06
Return on Investment (ROI) (PBT/Networth)		0.01	0.13	0.12
Debt Equity Ratio (Total Debt /Networth)		1.62	1.48	1.11
Current Ratio (Current Asset/Current Liability)		1.21	1.14	4.13

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

PERFORMANCE OF THE COMPANY:

During the year the company’s production/sales have improved marginally. The production of finished product has gone up from 48977 MT to 51200 MT, while the sales have increased from 42788 MT to 44094 MT. In terms of value the sales has gone up from Rs.2352.900 Millions to Rs.2676.900 Millions, resulting in increase of 13.77%. During the current year there would be pressure on margins due to general slow down in Indian economy. However, the company envisage to increase its sales by 20%.

UNSECURED LOAN

PARTICULARS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long-term Borrowings
Deposits	108.900	0.000
Total	108.900	0.000
Short-term borrowings
Deposits from directors	37.350	26.550
Deposits from others	74.985	52.660
Total	112.335	79.210

CONTINGENT LIABILITIES NOT PROVIDED FOR :-

a. Letters of Credit opened by the bankers in favour of suppliers outstanding Rs. 22.557 Millions (Previous year Rs. 12.551 Millions).

b The demand has been raised under Central Excise Act, 1944 for Rs.0.069 Million, The matter is pending before Assistant Commissioner, Ludhiana.

FIXED ASSETS

Tangible assets

· Land

· Buildings

· Factory building

· Plant and equipment

· Factory equipments

· Furniture and fixtures

· Vehicles

· Motor vehicles

· Office equipment

Intangible assets

· Computer software

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.59.35
UK Pound	1	Rs.92.11
Euro	1	Rs.78.59

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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		43

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.