MIRA INFORM REPORT

Report Date :

23.03.2013

IDENTIFICATION DETAILS

Name :	RALCO STEELS PRIVATE LIMITED
Registered Office :	HIG 7, D. No. 2-35-72, Second Floor, Shiridi Sai Enclave, MVP Colony, Visakhapatnam-530017, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	02.11.2010
Com. Reg. No.:	01-071048
Capital Investment / Paid-up Capital :	Rs.0.100 Million
CIN No.: [Company Identification No.]	U27100AP2010PTC071048
TAN No.: [Tax Deduction & Collection Account No.]	VPNR01486C
PAN No.: [Permanent Account No.]	AAFCR0324Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Pre Engineered Building Structure and Coils and Sheeting Panels.
No. of Employees :	150 [In Factory + In Branch] Approximately

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 655000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Even thought the company was incorporated during November 2010, it commenced its business activities during 2011-2012. It is having a moderate track record. It has achieved sizeable turnover in its first year of operation but the profitability appears to be low. However, trade relations are reported as improving. Business is active. Payment terms are slow. 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	B – [Long Term]
Rating Explanation	High risk of default
Date	15.05.2012

Rating Agency Name	CRISIL
Rating	A4 [Short Term]
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	15.05.2012

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 :	Ms. Bhuvaneshwari
Designation :	Sales Coordinator
Contact No.:	91-891-2791818
Date :	28.02.2013

LOCATIONS

Registered Office :	HIG 7, D. No. 2-35-72, Second Floor, Shiridi Sai Enclave, MVP Colony, Visakhapatnam-530017, Andhra Pradesh, India
Tel. No.:	91-891-2791818
Mobile No.:	91-9666319666 [Mr. Hari Kumar]
Fax No.:	91-891-2794275
E-Mail :	sales.india@ralcosteels.com
Website :	http://www.ralcosteels.com
Location :	Owned
Factory :	Special Plot 1, Phase 2, Industrial Growth Centre, Bobbili-535558, Andhra Pradesh, India

DIRECTORS

AS ON 27.09.2012

Name :	Mr. Ramesh Babu Cherukuru
Designation :	Director
Address :	2-47, Pedapullivarru, Guntur-522257, Andhra Pradesh, India
Date of Birth/Age :	25.06.1968
Date of Appointment :	02.11.2010
Din No.:	03269979
Name :	Mr. Sree Ramana Peddu
Designation :	Director
Address :	11/203-A, Pailavarist, Gudiwada-521301, Andhra Pradesh, India
Date of Birth/Age :	30.08.1970
Date of Appointment :	02.11.2010
Din No.:	03269994
Name :	Mr. Nagalaxmi Cheruuru
Designation :	Additional Director
Address :	MIG 27, Sujatha Nagar, Chinamushidiwada Pendurathi, Visakhapatnam-531173, Andhra Pradesh, India
Date of Birth/Age :	07.06.1975
Date of Appointment :	05.01.2012
Din No.:	05181358
Name :	Mr. Manohar
Designation :	Additional Director
Address :	D. 202, SGB Sadan, Sector 2, MVP Colony, Church Road, Visakhapatnam-530017, Andhra Pradesh, India
Date of Birth/Age :	15.05.1954
Date of Appointment :	05.09.2012
Din No.:	05359038
Name :	Mr. Venkata Hari Kumar Suddapalli
Designation :	Additional Director
Address :	D. No. 50-24-10, TPT Colony, Seethammadhara, Visakhapatnam-530017, Andhra Pradesh, India
Date of Birth/Age :	12.11.1984
Date of Appointment :	05.09.2012
Din No.:	06364586

KEY EXECUTIVES

Name :	Ms. Bhuvaneshwari
Designation :	Sales Coordinator

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2012

Names of Shareholders	No. of Shares
Ramesh Babu Cherukuru	9000
Sree Ramana Peddu	1000
TOTAL	10000

AS ON 27.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Pre Engineered Building Structure and Coils and Sheeting Panels.
Exports :
Products :	Pre Engineered Building Structure and Coils and Sheeting Panels
Countries :	Africa
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

150 [In Factory + In Branch] Approximately

Bankers :

Bank of Baroda, Corporate Financial Service Branch, 3-6-262/6, Tirumala Estates, 1^st Floor, Himayatnag, Hyderabad-500029, Andhra Pradesh, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Term Loan From Bank	92.061	0.000
From Banks	35.484	0.000
TOTAL	127.545	0.000

Banking Relations :	--
Auditors :
Name :	Venkata Pavan Kumar and Company Chartered Accountants
Address :	Flat No. 201, B Block, 10-1-128, San Remo Apartments, Masab Tank, Hyderabad-500028, Andhra Pradesh, India
Tel. No.:	91-40-23310341
Mobile No.:	91-9866342907
E-Mail :	vpkcol@gmail.com
PAN No:	AAIFV8209L

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
10000	Equity Shares	Rs.10/- each	Rs.0.100 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		0.100	0.100
2] Share Application Money		163.786	23.522
3] Reserves & Surplus		0.083	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		163.969	23.622
LOAN FUNDS
1] Secured Loans		127.545	0.000
2] Unsecured Loans		63.005	0.000
TOTAL BORROWING		190.550	0.000
DEFERRED TAX LIABILITIES		1.154	0.000
TOTAL		355.673	23.622
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		204.159	17.125
Capital work-in-progress		85.377	6.306
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	42.932	0.000
	Sundry Debtors	13.391	0.000
	Cash & Bank Balances	16.991	0.016
	Other Current Assets	0.356	0.000
	Loans & Advances	47.422	0.200
Total Current Assets		121.092	0.216
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	10.712	0.025
	Other Current Liabilities	44.000	0.000
	Provisions	0.243	0.000
Total Current Liabilities		54.955	0.025
Net Current Assets		66.137	0.191
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		355.673	23.622

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011
	SALES
		Income	29.549	0.000
		Other Income	1.009	0.000
		TOTAL (A)	30.558	0.000
Less	EXPENSES
		Employee Benefits Expenses	3.699	0.000
		Other Expenses	8.923	0.000
		Pre Operative Expenses Written Off	2.178	0.000
		TOTAL (B)	14.800	0.000
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		15.758	0.000
Less	FINANCIAL EXPENSES (D)		9.550	0.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6.208	0.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.651	0.000
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		1.557	0.000
Less	TAX (H)		1.475	0.000
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		0.082	0.000
	IMPORTS
		Stores & Spares	0.000	0.000
		Capital Goods	61.340	0.000
	TOTAL IMPORTS		61.340	0.000
	Earnings / (Loss) Per Share (Rs.)
	Basic		8.26	0.00
	Diluted		0.01	0.00

Expected Sales (2012-13) : Rs.100.000 Millions.

The above information has been parted by Ms. Bhuvaneshwari.

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011
PAT / Total Income	(%)	0.27	0.00
Net Profit Margin (PBT/Sales)	(%)	5.27	0.00
Return on Total Assets (PBT/Total Assets}	(%)	0.48	0.00
Return on Investment (ROI) (PBT/Networth)		0.01	0.00
Debt Equity Ratio (Total Debt/Networth)		1.16	0.00
Current Ratio (Current Asset/Current Liability)		2.20	8.64

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 two years	Yes
12]	Profitability for last two years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	Yes

NOTE:

The registered office of the company has been shifted from Flat No. 310, D. No. 55-1-17/8/44, MVV Residency, Venkojipalem, H.B. Colony Road, Visakhapatnam-530022, Andhra Pradesh, India to the present address w.e.f.05.01.2012.

Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Form Others	63.005	0.000
TOTAL	63.005	0.000

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Creation of charge
Corporate identity number of the company	U27100AP2010PTC071048
Name of the company	RALCO STEELS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	HIG 7, D. No. 2-35-72, Second Floor, Shiridi Sai Enclave, MVP Colony, Visakhapatnam-530017, Andhra Pradesh, India
Type of charge	Book Debts Floating Charge
Particular of charge holder	Bank of Baroda, Corporate Financial Service Branch, 3-6-262/6, Tirumala Estates, 1^st Floor, Himayatnag, Hyderabad-500029, Andhra Pradesh, India Email: indhyd@bankofbaroda.com
Nature of description of the instrument creating or modifying the charge	1. Composite hypothecation agreement 2. Sanction letter
Date of instrument Creating the charge	27.01.2012
Amount secured by the charge	Rs.752.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest TL-II and CC: 4% over BR, PC (Sublimit of CC): 1% over BR, FBP/BP/FBD/BD (Sublimit of CC): 1% over BR, Inland / Foreign BG, ILC/FLC: Comm. as per bank guidelines Terms of Repayment Term Loan-II: 20 equal quarterly installments of Rs. 1.125 millions each, after six months of first disbursement Cash Credit: Repayable on demand Margin Term Loan-II: 30.09% Cash Credit: 25% on stock and book debts Packing Credit (sub-limit of cash credit): 10% FBP/ BP/ FBD/ BD (Sub-limit of Cash credit): NIL Inland / Foreign Bank Guarantee: 10% Cash margin ILC / FLC on sight basis: 10% cash margin Extent and Operation of the charge TL-II: Hypothecation of Vehicles purchased out of the Bank Finance, Extension of Hypothecation on fixed assets purchased out of bank finance, Extension of equitable mortgage of Factory Land and Buildings CC: Hypothecation of Stock and Book debts Inland / Foreign Bank Guarantee, ILC/ FLC on sight basis: Cash margin 10%, Extension of Hypothecation on fixed assets purchased out of bank finance, Extension of equitable mortgage of Factory Land and Buildings.
Short particulars of the property charged	Hypothecation of Vehicles purchased out of the Bank Finance Extension of Hypothecation on fixed assets purchased out of bank finance.

CONTINGENT LIABILITIES:

Particulars	31.03.2012 (Rs. in millions)
Bank guarantee issued by banks	2.935
Letter of credit issued by the banks	95.260
TOTAL	98.195

FIXED ASSETS:

• Land
• Building
• Plant and Machinery
• Furniture and Fixtures
• Office Equipments
• Computer
• Leasehold Improvements

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.54.34
UK Pound	1	Rs.82.55
Euro	1	Rs.70.10

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.