MIRA INFORM REPORT

Report Date :

09.03.2013

IDENTIFICATION DETAILS

Name :	P P ROLLING MILLS MFGING COMPANY PRIVATE LIMITED
Formerly Known As :	P. P. ENGINEERING WORKS
Registered Office :	D - 820, New Friends Colony, New Delhi - 110065
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	07.04.1998
Com. Reg. No.:	55 – 093215
IEC Code :	0542022757
CIN No.: [Company Identification No.]	U29223DL1998PTC093215
PAN No.: [Permanent Account No.]	AASCP7505P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Trader and Exporter of Hot Rolling Mills, TMT Equipments, Cold Rolling Mills, TMT Bar and TMT Steel Bar.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 280000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well- established and reputed company having satisfactory track record. Trade relations are fair. Business is active. General position is satisfactory. Payments are reported to be usually made as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Tarun roy
Designation :	Manager
Contact No. :	91-9871092604
Date :	12.10.2010

LOCATIONS

Registered Office :	D - 820, New Friends Colony, New Delhi - 110065, India
Tel. No.:	91-11-2684 8885/ 2683 6340/ 2632 6325/ 4162 7515/ 4162 7516/ 26313774/ 26326325
Mobile No.:	91-9810076425/ 9810035999
Fax No.:	91-11-2683 6335
E-Mail :	ppeng@vsnl.com pprm@pprm.in mail@pprm.in accounts@pprm.in
Website :	http://www.pprm.com
Area :	1000 sq ft
Location :	Owned
Corporate Office :	Plot No. 63, Sector 27A, Faridabad-121003, Haryana, India
Tel. No.:	91-129-4181100
Fax No.:	91-129-4181124
Factory 1 :	Shop No.7, 8 and 11, Bhaskar Estates, Faridabad-121001, Haryana, India
Area :	53000 sq. ft.
Location :	Owned
Factory 2 :	Works Plot No. 39, Sector- 27 C, Faridabad-121003, Haryana, India
Tel. No.:	91-129-2271011/ 12/ 4181100
Fax No.:	91-129-2271012
Area :	8100 sq ft
Location :	Owned

DIRECTORS

Name :	Mr. Pankaj Khanna
Designation :	Managing Director
Address :	D-820, New Friends Colony, New Delhi – 110065, India
Date of Birth/Age :	09.02.1968
Qualification :	M.B.A
Date of Appointment :	25.03.2005
Name :	Mr. Praneet Khanna
Designation :	Director [Operations]
Address :	D - 820, New Friends Colony, New Delhi – 110065, India
Date of Birth/Age :	17.06.1975
Qualification :	M.B.A
Date of Appointment :	15.06.2006
Name :	Ms. Renu Khanna
Designation :	Whole Time Director
Address :	D-820, New Friends Colony, New Delhi - 110065, India
Date of Birth/Age :	09.05.1947
Qualification :	M.B.A
Date of Appointment :	25.03.2005

KEY EXECUTIVES

Name :	Mr. Rajat Sinna
Designation :	Import Export Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2008

Names of Shareholders	No. of Shares
Renu Khanna	675000
Pankaj Khanna	475000
Prem Prakash Khanna	75000
Praneet Khanna	75000
Total	1300000

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2008

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Trader and Exporter of Hot Rolling Mills, TMT Equipments, Cold Rolling Mills, TMT Bar and TMT Steel Bar.
Products :	· Mill Stand · Gear Boxes · Flying Shears · Hot Rolling Mills · TMT Equipments · Cold Rolling Mills · Gearboxes · TMT Bar · TMT Steel Bar · Hobbing Machines · Heavy Machine Building · Roughing Mill – Rolling Mill Equipment · Cooling Bed-Hot Rolling Mill Equipment · Pre-Stressed Mill Stands · Pinch Roll and High Speed Shears
Exports :
Products :	· Hot and Cold Rolling Mills · TNT Equipments
Countries :	· Nepal · Bahrain
Imports :
Products :	Raw Material
Countries :	· China · Italy · France
Terms :
Selling :	L/C
Purchasing :	L/C

GENERAL INFORMATION

Customers :

· SMS, Germany

· VAI, Australia

· United Engineering, USA

· Paul-Wurth, India

· Sulzer Hydro

· Larsen & Toubro Limited

· Tata Growth Shop

· Steel Authority of India Liminted

· Al-Ittefaq Steels Dammam, Saudi Arabia

· MID India Engineering, Kutch, Gujrat

· Bangladesh Steel Rolling Mills, Bangladesh

· Sheema Steels

· AMK Steels

Wholesalers, Retailers, End Users and OEM’s

No. of Employees :

500 (Approximately)

Bankers :

· Corporation Bank, Overseas Branch, H. T. House, K. G. Marg, New Delhi – 110001, India

· ICICI Bank Limited

Facilities :

Secured Loans	31.03.2008 Rs. In Millions
Loan and Advance from Banks	49.591
Total	49.591

Banking Relations :

--

Auditors :

Name :

K N Barry and Company

Chartered Accountants

Address :

Soni Mansion, 1687, Arya Samaj Road, Karol Bagh, New Delhi -110005, India

Phone No.:

91-11-28752713

Memberships :

· EEPC

· FEII

· DCC

Collaborators :

J.P.M. Steel Technology

Associates/Subsidiaries :

P.P. Engineering (India) Limited

Plot No. 9, Bhaskar Estate

Line of Business : Rolling Mills

CAPITAL STRUCTURE

As on 31.03.2008

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1300000	Equity Shares	Rs.10/- each	Rs.13.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		13.000	12.000	10.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		57.814	33.084	9.174
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		70.814	45.084	19.174
LOAN FUNDS
1] Secured Loans		49.591	22.884	18.532
2] Unsecured Loans		1.410	0.842	0.439
TOTAL BORROWING		51.001	23.726	18.971
DEFERRED TAX LIABILITIES		0.706	0.276	0.000
TOTAL		122.521	69.086	38.145
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		181.875	106.920	57.924
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	34.225	37.473	21.879
	Sundry Debtors	19.521	8.201	4.647
	Cash & Bank Balances	75.221	87.179	52.104
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	83.292	49.206	46.658
Total Current Assets		212.259	182.059	125.288
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	254.134	207.509	139.190
	Provisions	17.579	12.509	5.969
Total Current Liabilities		271.713	220.018	145.159
Net Current Assets		[59.454]	[37.959]	[19.871]
MISCELLANEOUS EXPENSES		0.100	0.125	0.092
TOTAL		122.522	69.086	38.145

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		571.969	374.585	300.000
Other Income		13.926	7.670	0.000
Total Income		585.895	382.255	300.000
Profit/(Loss) Before Tax		43.470	29.279	12.472
Provision for Taxation		[9.844]	3.495	4.462
Profit/(Loss) After Tax		53.314	25.784	9.173
Expenditures :
	Administrative Expenses			16.860
	Raw Material Consumed			188.208
	Salaries, Wages, Bonus, etc.			1.372
	Interest			0.147
	Power & Fuel			2.935
	Depreciation & Amortization			3.665
	Other Expenditure			32.647
Total Expenditure		542.425	352.976	245.834
Earnings Per Share (Rs.)		41.01	NA	NA

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	NA	06.74	3.05
Net Profit Margin (PBT/Sales)	(%)	7.60	07.81	4.15
Return on Total Assets (PBT/Total Assets}	(%)	11.03	10.13	6.80
Return on Investment (ROI) (PBT/Networth)		0.61	10.13	0.65
Debt Equity Ratio (Total Liability/Networth)		4.56	5.41	8.56
Current Ratio (Current Asset/Current Liability)		0.78	0.83	0.86

LOCAL AGENCY FURTHER INFORMATION

TRADE REFERENCES:

· Tunisia Manufacturing Company, Middle East

· K and T

· Amic Steels, Lahore, Pakistan

Bankers Charges Report as per Registry

Name of the company	P P ROLLING MILLS MFGING COMPANY PRIVATE LIMITED
Presented By	Corporation Bank, Overseas Branch and Company
1) Date and description of instrument creating the change	Common Deed of Hypothecation of Movables/ Assets dated 06.06.2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 40.000 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of all the equipment and plant and machinery for setting up project to manufacturing Rolling Mills Machines.
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest shall be 13% p.a.being 2.50% over BPLR which is 10.50% p.a.
5) Name and Address and description of the person entitled to the charge.	Corporation Bank Overseas Branch, H. T. House, K. G. Marg, New Delhi – 110001, India
6) Date and brief description of instrument modifying the charge	N.A
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	N.A

This form is for	Creation of charge
Corporate identity number of the company	U29223DL1998PTC093215
Name of the company	P P ROLLING MILLS MFGING COMPANY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	D - 820, New Friends Colony, New Delhi - 110065, India
Type of charge	Others
Particular of charge holder	Corporation Bank, Overseas Branch, H. T. House, K. G. Marg, New Delhi – 110001, India
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation of Vehicles Agreement For Term Loan
Date of instrument Creating the charge	18.04.2009
Amount secured by the charge	Rs. 1.200 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Rate of Interest Shall be 11.75% p.a. Terms of Repayment Rs. 1.200 Millions to be repaid within 36 monthly installments of Rs. 39715 /- each. Release by way of demand draft/ RTGS in favour of the dealer Excell Motors Alongwith share of Company Margin As per Terms of Sanction Extent and Operation of the charge As per Terms of Sanction
Short particulars of the property charged	Hypothecation of one new mitsubhi outlander 2.4 Ltr car to be acquired from excel motors authorized dealer for mutsubhi outlander Total cost of Rs., 2.171 Millions vide performance invoice dated 31.03.2009

WEBSITE DETAILS:

PROFILE:

WORLD CLASS MANUFACTURING IN INDIA WITH EUROPEAN TECHNOLOGY PARTNERS

Excellence is never an accident. It is an act of deliberate design.

Over the past 25 years PPRM has developed experience and expertise in heavy machine building specially in Steel Rolling Mills for long products and sections.

Working closely with global equipment builders like SMS, VAI, Sulzer Hydro and with top Indian Companies like Larsen and Tubro Limited, Tata Growth Shop, SAIL, MECON and M.N. Dastur has made PPRM conversant with their best practices in design, manufacturing and stringent quality standards.

By giving meticulous attention to detail in every aspect of business, they at PPRM through continuous improvement have benchmarked with the best in the industry to ensure Customer Satisfaction, in terms of Product Quality, Reliability and Service.

A mission to excel that is inspired by the companys corporate philosophy of building enduring partnerships with every customer. Cementing relationships, that grow stronger with mutual success and growth.

The Core Competencies:

· Turnkey Hot and Cold Rolling Mill Projects

· Heavy Equipment Fabrication and Machining

The Technical Collaborators include:

· JPM Steels, Italy (licensee of EURO PLANT) for the design and engineering of projects and equipment for Rolling Mills upto 500,000 TPA

· Herbert Rothe Consulting Engineers, for marketing TMT system for the production of high strength re-bars in India and around.

· They are also associated with Tempcore brand, which is widely used and is popular in Europe. They have received the necessary permissions from CRM Belgium, the controlling authority for Tempcore.

· They also have an agreement with Badschie Sthal Engineering, Germany for vetting of the proposals of projects for the customers. BSE, Germany is among the leading consulting companies in this field from Europe.

QUALITY POLICY

They the Management, Staff and Employees of P.P.ROLLING MILLS MFG. CO. Private LIMITED strive to Continuously improve the effectiveness of The Quality Management System.

They are also committed to fulfill the needs of The Customers with the highest degree of commitment to ensure total Customer satisfaction.

Quality Objectives

Top Line Growth through Growth in export sales:

Establish at least one technology partner in related field.

Customer Satisfaction:

Respond to customer complaints within 72 hours and record customer response.

Operational Excellence:

Establish benchmark and targets for rework and machine downtime hours: December 2005

Culture Change:

· Establish leadership-training programs for front line supervisors and functional areas: December 2005.

· Organization Wide Brainstorming Session: At least two sessions in a year.

Capital Management:

Establish process to document justification of new capital purchases.

Clients:

They been associated with M/s Al-Ittefaq Steels Dammam, Saudi Arabia, where the production has increased from 50,000 tons per annum to more than 500,000 tons per annum. They have supplied the Mill Stands, Gear Boxes, Flying Shears etc. to them.

In the recent times, they have successfully carried out various jobs in the field of Rolling Mills. They have just finished the project of Complete Mill Equipment supply for M/s MID India Engineering Kutch, Gujrat. In Bangladesh they are continuously working with M/s Bangladesh Steel Rolling Mills, M/s Sheema Steels and M/s AMK Steels.

Apart from this, they are closely working with Rolling Mills in Abu Dhabi, Nepal, Dubai, Indonesia, Senegal, Sri Lanka and Pakistan.

In the past they have worked on various projects with renowned consultants of India like MECON and M.N.Dastur.

They have also had the privilege of working with various leading manufacturers of Mill Equipment like SMS-Germany, VAI-Austria, United Engineering-USA and Paul-Wurth India.

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.54.40
UK Pound	1	Rs.81.57
Euro	1	Rs.71.23

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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.