MIRA INFORM REPORT

Report Date :

23.11.2013

IDENTIFICATION DETAILS

Name :	BALMUKUND CEMENT AND ROOFINGS LIMITED (w.e.f. 25.11.2009)
Formerly Known As :	BALMUKUND CEMENT AND ASBESTOS LIMITED (w.e.f. 03.08.2009) BALMUKUND STEEL AND STRIP LIMITED
Registered Office :	Diamond Prestige 41a, Ajc Bose Road, Suit No. 701, Kolkata – 700017, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	10.12.2004
Com. Reg. No.:	21-100669
Capital Investment / Paid-up Capital :	Rs.42.445 Millions
CIN No.: [Company Identification No.]	U26900WB2004PLC100669
TAN No.: [Tax Deduction & Collection Account No.]	CALB11494A
PAN No.: [Permanent Account No.]	AACCB9534B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Asbestos.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 840000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Management has failed to file its latest financial of 2013 with government department. As confirmed by Mr. Jha, Accounts Executive that the company has started its business activities from 2012. Company has incurred loss from its operation. However, trade relation are fair. Business is active. Payment term are slow but correct. The company can be considered for business dealing 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 – 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

INDIAN ECONOMIC OVERVIEW

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: B+
Rating Explanation	Risk prone credit quality and very high credit risk.
Date	24.12.2012

Rating Agency Name	CRISIL
Rating	Short term rating: A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	24.12.2012

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 DECLINED BY

Name :	Mr. Jha
Designation :	Accounts Executive
Contact No.:	91-33-22486306
Date :	15.11.2013

LOCATIONS

Registered Office / Corporate office:	Diamond Prestige 41a, Ajc Bose Road, Suit No. 701, Kolkata – 700017, West Bengal, India
Tel. No.:	91-33-22486306/40325000
Fax No.:	91-33-40325050
E-Mail :	balmukundcement@gmail.com enquiry@bcrl.in

DIRECTORS

As on 30.09.2013

Name :

Mr. Abhishek Kanodia

Designation :

Director

Address :

Naya Bazar, Lakhisarai – 800311, Bihar, India

Date of Birth/Age :

10.06.1986

Date of Appointment :

23.11.2007

DIN No.:

00774985

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	U00804BR1995PTC006583	BALMUKUND LEASE-FIN PRIVATE LIMITED	Director	01/02/2005	01/02/2005	-	Active	NO
2	U22190WB1995PTC072419	RIGA MARKETINGS PRIVATE LIMITED	Director	11/07/2007	11/07/2007	-	Active	NO
3	U26900WB2004PLC100669	BALMUKUND CEMENT AND ROOFINGS LIMITED	Director	23/11/2007	23/11/2007	-	Active	NO
4	U27310BR1999PLC008902	BALMUKUND SPONGE AND IRON LIMITED	Director	24/12/2007	24/12/2007	-	Active	NO
5	U00339BR1986PTC002418	HARIOM SCRAP PRIVATE LIMITED	Director	16/12/2008	16/12/2008	-	Active	NO
6	U27310BR1987PTC002780	BALAJEE MINI STEELS AND REROLLING PRIVATE LIMITED	Director	16/12/2008	16/12/2008	-	Active	NO
7	U51109WB2007PTC113203	RADHIKA TIE-UP PRIVATE LIMITED	Director	09/03/2010	09/03/2010	15/06/2010	Active	NO
8	U13100WB2010PLC149925	BALMUKUND MINE DEVELOPMENT LIMITED	Director	28/05/2010	28/05/2010	-	Active	NO

Name :

Mr. Nawal Kumar Kanodia

Designation :

Director

Address :

Naya Bazar, Lakhisarai – 800311, Bihar, India

Date of Birth/Age :

01.07.1944

Date of Appointment :

23.11.2007

DIN No.:

00774964

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	U00804BR1995PTC006583	BALMUKUND LEASE-FIN PRIVATE LIMITED	Director	02/01/1996	02/01/1996	-	Active	NO
2	U27101RJ1995PLC011261	WIN FERRO ALLOYS LIMITED	Director	03/04/1996	03/04/1996	18/08/2011	Active	NO
3	U00339BR1986PTC002418	HARIOM SCRAP PVT LTD	Director	25/11/1996	25/11/1996	-	Active	NO
4	U27310BR1999PLC008902	BALMUKUND SPONGE AND IRON LIMITED	Director	14/07/1999	14/07/1999	-	Active	NO
5	U85320BR2002NPL009759	RAJ RAJESHWARI SEVAYATAN	Director	18/02/2002	18/02/2002	-	Active	NO
6	U27310BR1987PTC002780	BALAJEE MINI STEELS AND REROLLING PRIVATE LIMITED	Director	11/03/2003	11/03/2003	-	Active	NO
7	U22190WB1995PTC072419	RIGA MARKETINGS PVT LTD	Director	11/07/2007	11/07/2007	-	Active	NO
8	U26900WB2004PLC100669	BALMUKUND CEMENT AND ROOFINGS LIMITED	Director	23/11/2007	23/11/2007	-	Active	NO

Name :

Mr. Om Prakash Agrawal

Designation :

Director

Address :

Dwarika Puri, Musallahpur, Mahendru, Patna – 800004, Bihar, India

Date of Birth/Age :

12.08.1972

Date of Appointment :

01.07.2010

DIN No.:

02157576

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	U27310BR1999PLC008902	BALMUKUND SPONGE AND IRON LIMITED	Director	01/02/2008	01/02/2008	-	Active	NO
2	U26900WB2004PLC100669	BALMUKUND CEMENT AND ROOFINGS LIMITED	Director	01/07/2010	01/07/2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Jha
Designation :	Accounts Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Riga Marketing Private Limited, India	770000
Radhika Tie Up Private Limited, India	1122000
Polo Distributors Private Limited, India	60000
Abhishek Kanodia	10000
Bhanu commercials Private Limited, India	200000
Nawal Kumar Kanodia	10000
Novelty Mercantile Private Limited, India	790000
Partha Sarathi Ray	500
Balajee Hitec Rolling Private Limited, India	1282000
Total	4244500

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Bodies corporate	99.52
Directors or relatives of Directors	0.47
Other top fifty shareholders	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Asbestos.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

State Bank of India, Industrial Finance Branch ( Code - 6540 ), Narain House, Nageshwar Colony, Boring Road, Patna - 800001, Bihar, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)
Long-term Borrowings
From Banks	123.842
Long-term Borrowings
From Banks	0.243
Total	124.085

Secured Loan	31.03.2011 (Rs. in Millions)
Long-term Borrowings
From HDFC Bank, Kolkata	0.513
State Bank of India (Term Loan ) From State Bank of India, IFB patna against hypothecation of fixed assets other assets and personal guarantee of the directors of the company	162.600
State Bank of India (Buyers Credit) From State Bank of India, IFB patna against hypothecation of fixed assets other assets and personal guarantee of the directors of the company	3.509
Total	166.622

Banking Relations :
Auditors :
Name :	Khowala and Associates Chartered Accountants
Address :	101, Abhishek Plaza Exhibition Road, Patna - 800001, Bihar, India
Other Related Party :	· Balmukund Leases Fin Private Limited · Balmukund Sponge and Iron Limited · Rigs Marketing Private Limited · Balajee Ministeels and Re-rolling Private Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4244500	Equity Shares	Rs.10/- each	Rs. 42.445 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	42.445
(b) Reserves & Surplus	167.592
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	210.037
(3) Non-Current Liabilities
(a) long-term borrowings	214.525
(b) Deferred tax liabilities (Net)	0.247
(c) Other long term liabilities	0.000
(d) long-term provisions	0.000
Total Non-current Liabilities (3)	214.772
(4) Current Liabilities
(a) Short term borrowings	143.583
(b) Trade payables	1.168
(c) Other current liabilities	53.492
(d) Short-term provisions	0.000
Total Current Liabilities (4)	198.243
TOTAL	623.052
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	10.325
(ii) Intangible Assets	0.000
(iii) Capital work-in-progress	306.882
(iv) Intangible assets under development	0.000
(b) Non-current Investments	67.481
(c) Deferred tax assets (net)	0.000
(d) Long-term Loan and Advances	4.446
(e) Other Non-current assets	111.915
Total Non-Current Assets	501.049
(2) Current assets
(a) Current investments	0.000
(b) Inventories	86.840
(c) Trade receivables	0.000
(d) Cash and cash equivalents	6.667
(e) Short-term loans and advances	28.496
(f) Other current assets	0.000
Total Current Assets	122.003
TOTAL	623.052

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		42.440	16.200
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		168.034	62.947
4] (Accumulated Losses)		0.000	0.000
NETWORTH		210.474	79.147
LOAN FUNDS
1] Secured Loans		166.622	0.761
2] Unsecured Loans		112.537	62.348
TOTAL BORROWING		279.159	63.109
DEFERRED TAX LIABILITIES		0.000	0.013
TOTAL		489.633	142.269
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.248	9.519
Capital work-in-progress		258.516	12.589
INVESTMENT		67.481	67.481
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	85.403	0.000
	Sundry Debtors	0.000	0.000
	Cash & Bank Balances	4.213	19.700
	Other Current Assets	0.000	0.000
	Loans & Advances	28.874	39.388
Total Current Assets		118.490	59.088
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	13.399	9.534
	Other Current Liabilities	0.000	0.000
	Provisions	0.021	0.102
Total Current Liabilities		13.420	9.636
Net Current Assets		105.070	49.452
MISCELLANEOUS EXPENSES		48.318	3.228
TOTAL		489.633	142.269

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	0.000	0.000	0.000
		Other Income	0.020	0.314	0.427
		TOTAL	0.020	0.314	0.427
Less	EXPENSES
		Other Expenses	0.096	0.083
		TOTAL	0.096	0.083	0.345
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		(0.076)	0.231	0.082
Less/ Add	DEPRECIATION/ AMORTISATION		0.102	0.095	0.075
	PROFIT / (LOSS) BEFORE TAX		(0.178)	0.136	0.007
Less	TAX		0.264	0.010	0.013
	PROFIT / (LOSS) AFTER TAX		0.442	0.126	(0.006)
	Earnings / (Loss) Per Share (Rs.)		0.10	NA	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2210.00	40.13	(1.41)
Net Profit Margin (PBT/Sales)	(%)	(890.00)	43.31	1.64
Return on Total Assets (PBT/Total Assets}	(%)	(0.07)	0.11	0.01
Return on Investment (ROI) (PBT/Networth)		(0.00)	0.00	0.00
Debt Equity Ratio (Total Debt /Networth)		1.70	1.33	0.80
Current Ratio (Current Asset/Current Liability)		0.62	8.83	6.13

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	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]	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

NOTE: Registered office of the company has been shifted from 18, R.N.Mukherjee Road, 1st Floor, Kolkata – 700001, West Bengal, India to the present address w.e.f 10.07.2013

UNSECURED LOAN

Unsecured Loan	31.03.2012 (Rs. in Millions)
Long-term Borrowings
Loans and advances from related parties	65.687
Other Loan advances	24.996
Short-term Borrowings
Loans and advances from related parties	1.538
Other Loan advances	141.802
Total	234.023

Unsecured Loan	31.03.2011 (Rs. in Millions)
Long-term Borrowings
From Body Corporate	106.218
From Directors	6.319
Total	112.537

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10228084	04/10/2012 *	468,300,000.00	STATE BANK OF INDIA	SME BORING ROAD BRANCH, NARAIN HOUSE NAGESHWAR COLONY, PATNA, BIHAR - 800001, INDIA	B60865383

Note: * Date of charge modification

FIXED ASSETS

· Land

· Furniture

· Office Equipment

· Furniture and Fixture

· Computer

· Vehicle

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 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.63.02
UK Pound	1	Rs.102.04
Euro	1	Rs.84.92

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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	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		28

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.