MIRA INFORM REPORT

Report Date :

12.03.2013

IDENTIFICATION DETAILS

Name :	SHRADDHA ISPAT PRIVATE LIMITED
Registered Office :	Kohinoor Estate Building, No. C 1, Office No. 15, Mulla Road, Khadki, Pune-411003, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	05.06.1995
Com. Reg. No.:	11-089176
Capital Investment / Paid-up Capital :	Rs.4.999 Millions
CIN No.: [Company Identification No.]	U28910MH1995PTC089176
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of M.S. Billets.
No. of Employees :	Information denied by the management.

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 2610000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. The company has performed well and achieved sizeable profit during the year 2011-2012. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for normal 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.

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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 DECLINED BY

Name :	Mr. Lalit Agrawal
Designation :	General Manager
Contact No.:	91-9225907619
Date :	11.03.2013

LOCATIONS

Registered Office :	Kohinoor Estate Building, No. C 1, Office No. 15, Mulla Road, Khadki, Pune-411003, Maharashtra, India
Tel. No.:	Not Available
Mobile No.:	91-9225907619 [Mr. Lalit Agrawal]
Fax No.:	Not Available
E-Mail :	csadeshpande@gmail.com
Factory 1 :	S. No. 53/1, Village Santona, Taluka Sanguem, Goa, Maharashtra, India
Tel No.:	91-832-2616319/20
Fax No.:	91-832-2616271
Factory 2 :	Plot No. M-1, Cuncolim Industrial Estate, Concolim-403703, Goa, India
Tel No.:	91-832-2865648

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Premprakash Lacchiram Goyal
Designation :	Director
Address :	S. No. 13, H. No. 1, 2, 3 and 4, Kohinoor Residency 3, Phase Planet, Near Spicer College, Pune-411007, Maharashtra, India
Date of Appointment :	20.06.1995
Din No.:	00389633
Name :	Mr. Yogesh Vedprakash Goyal
Designation :	Director
Address :	38, Priyadarshni Colony, Bhokardhan Road, Jalna-431203, Maharashtra, India
Date of Appointment :	01.11.2002
Din No.:	01604557
Name :	Mr. Ashwinikumar Ramkumar Poddar
Designation :	Director
Address :	130, Sindh Society, Aundh, Pune-411007, Maharashtra, India
Date of Appointment :	02.06.2003
Din No.:	01447110
Name :	Mr. Deepchand Sonraj Oswal
Designation :	Director
Address :	586/A, Flat No. 1, DCYFL-7, Girija Nayak Society, Gultekadi, Pune-411037, Maharashtra, India
Date of Appointment :	02.06.2003
Din No.:	00607673
Name :	Mr. Aditya Arunkumar Poddar
Designation :	Director
Address :	130, Sindh Society, Aundh, Pune-411007, Maharashtra, India
Date of Birth/Age :	17.12.1981
Date of Appointment :	01.04.2008
Din No.:	01725241
Name :	Mr. Rahul Deepchand Oswal
Designation :	Director
Address :	586/A, Flat No. 1, DCYFL-7, Girija Nayak Society, Gultekadi, Pune-411037, Maharashtra, India
Date of Birth/Age :	30.12.1984
Date of Appointment :	01.04.2008
Din No.:	02202821
Name :	Mr. Prakash Sohanraj Oswal
Designation :	Director
Address :	586/A, Flat No. 1, DCYFL-7, Girija Nayak Society, Gultekadi, Pune-411037, Maharashtra, India
Date of Birth/Age :	16.04.1969
Date of Appointment :	01.04.2008
Din No.:	02202856
Name :	Mr. Vinodkumar Vedprakash Goyal
Designation :	Director
Address :	S. No. 13, H. No. 1, 2, 3 and 4, Kohinoor Residency 3, Phase Planet, Near Spicer College, Pune-411007, Maharashtra, India
Date of Birth/Age :	25.12.1957
Date of Appointment :	01.04.2008
Din No.:	01604780
Name :	Mr. Mayank Vinod Goyal
Designation :	Director
Address :	S. No. 13, H. No. 1, 2, 3 and 4, Kohinoor Residency 3, Phase Planet, Near Spicer College, Pune-411007, Maharashtra, India
Date of Appointment :	01.04.2008
Din No.:	02061353

KEY EXECUTIVES

Name :	Mr. Lalit Agrawal
Designation :	General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Vinodkumar Vedprakash Goyal	3620
Premprakash Lacchiram Goyal	4000
Sushama Vinodkumar Goyal	498
Aditya Arunkumar Poddar	2100
Kashyam Ashwinikumar Poddar	1035
Mayank Vinod Goyal	2700
Arunkumar Ramkumar Poddar	2000
Ashok Sonraj Oswal	2000
Ashwinikumar Ramkumar Poddar	3500
Deepchand Sonraj Oswal	2000
Prakash Sonraj Oswal	2000
Rajesh Sonraj Oswal	2000
Sanjay Sonraj Oswal	2000
Madhu Arunkumar Poddar	2000
Punita Ashwinikumar Poddar	2000
Savitridevi Ramkumar Poddar	1000
Uttam Sonraj Oswal	1635
Vijay Sonraj Oswal	1500
Yogesh Vedprakash Goyal	4545
Radharani Premprakash Goyal	2817
Sangeeta Vijay Oswal	500
Sunil Omprakash Garg	4545
TOTAL	49995

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	90.91
Other top fifty shareholders	9.09
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of M.S. Billets.

PRODUCTION STATUS [AS ON 31.03.2012]

Particulars	Unit	Installed Capacity	Actual Production
Sponge Iron	M.T.	72000.000	--
Mild Steel Billets/Ingots	M.T.	45000.000	--
Sponge Iron Division
Sponge Iron Waste Products	M.T.	--	50078.000
Segregated Coat Dust	M.T.	--	18850.745
Fly Ash Bricks	Nos.	--	5895404.000
Steel Melting Division
M.S. Ingots/Billets	M.T.	--	27865.7000
Runners/Risers	M.T.	--	37.090

GENERAL INFORMATION

No. of Employees :

Information denied by the management.

Bankers :

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

· The Cosmos Co-operative Bank Limited, Khadki Branch, Pune-411030, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Term Loan From Banks	3.399	3.196
TOTAL	3.399	3.196

Banking Relations :	--
Auditors :
Name :	Nagaraj Kale Chartered Accountant
Address :	G-4 Kurtarkar Vihar Opposite, Costa Factory Aquem, Margao-403601, Goa, India
PAN No:	AHNPK0563C
Other Related Parties :	· Shirdi Steel Re-Rollers Private Limited · Indrayani Ferro Cast Private Limited · Pushpak Steel Industries Private Limited · Sant Gyaneshar Steel Limited · Bhuleshwar Steels and Allopys Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
49995	Equity Shares	Rs.100/- each	Rs.4.999 Millions

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		4.999	4.999	4.999
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		649.470	614.347	609.945
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		654.469	619.346	614.944
LOAN FUNDS
1] Secured Loans		3.399	3.196	8.875
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		3.399	3.196	8.875
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		657.868	622.542	623.819
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		312.988	337.938	296.566
Capital work-in-progress		0.000	0.000	41.925
INVESTMENT		17.484	17.423	14.327
DEFERREX TAX ASSETS		18.082	19.850	22.719
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	187.229	150.138	170.686
	Sundry Debtors	93.404	89.225	32.590
	Cash & Bank Balances	272.974	29.982	65.823
	Other Current Assets	68.333	35.016	0.000
	Loans & Advances	126.960	23.966	97.922
Total Current Assets		748.900	328.327	367.021
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	415.663	63.023	77.689
	Other Current Liabilities	0.000	0.000	0.562
	Provisions	23.923	17.973	40.488
Total Current Liabilities		439.586	80.996	118.739
Net Current Assets		309.314	247.331	248.282
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		657.868	622.542	623.819

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1980.000	1679.900	1574.200
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		69.829	32.299	106.987
Less/ Add	DEPRECIATION/ AMORTISATION		20.339	20.744	18.121
	PROFIT / (LOSS) BEFORE TAX		49.490	11.553	88.866
	INCOME TAX PAYMENTS / PROVISION (INCLUSIVE OF DEFERRED AS 22)		10.514	5.029	13.511
	PROFIT / (LOSS) AFTER TAX		36.865	6.150	75.355
	EARNINGS IN FOREIGN CURRENCY		0.000	0.000	0.000
	Earnings / (Loss) Per Share (Rs.)		737.37	--	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Return on Total Assets (PBT/Total Assets}	(%)	4.66	1.73	13.39
Return on Investment (ROI) (PBT/Networth)		0.07	0.02	0.14
Debt Equity Ratio (Total Debt/Networth)		0.01	0.01	0.01
Current Ratio (Current Asset/Current Liability)		1.70	4.05	3.09

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2012 (Rs. in millions)	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
Sundry Creditors	415.663	63.023	77.689

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

OPERATING RESULTS:

The company achieved a turnover of Rs. 1980.000 Millions (net of excise duty) as against Rs.1679.900 Millions (Net of excise duty) in the previous year the reason being the problems associated with acquisition of iron ore and related problems in the global market hitting the domestic market abnormally, the operating Profit of Rs. 36.866 Millions (After income tax and deferred tax and depreciation) is better as compared to the Rs. 6.150 Millions in the just preceding year. Far better improvements in the operating performance of the manufacturing processes are underway.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10192173
Corporate identity number of the company	U28910MH1995PTC089176
Name of the company	SHRADDHA ISPAT PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Kohinoor Estate Building, No. C 1, Office No. 15, Mulla Road, Khadki, Pune-411003, Maharashtra, India
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 Email: rbbform8@hdfcbank.com
Nature of description of the instrument creating or modifying the charge	Supplementary Letter of Hypothecation.
Date of instrument Creating the charge	29.10.2012
Amount secured by the charge	Rs.421.000 Millions
Brief particulars 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, to secure as a continuing security as for the repayment of Rs.421.000 Millions together with interest, costs, charges, expenses and other moneys due and payable by the Company to the Bank.
Short particulars of the property charged	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, outstanding, monies receivables, claims, bills, invoice documents, contracts, guarantees, and rights
Date of latest modification prior to the present modification	18.04.2012
Particulars of the present modification	The Charge shall now stand reduced from Rs.525.000 Millions to Rs.421.000 Millions against the security of Stocks and Book Debts of the Company.

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.54.29
UK Pound	1	Rs.81.09
Euro	1	Rs.70.61

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.