MIRA INFORM REPORT

Report Date :

16.10.2013

IDENTIFICATION DETAILS

Name :	NARMADA IRON AND ASSOCIATES PRIVATE LIMITED
Registered Office :	A / 802 Nirman Complex, Stadium Circle, Navrangpura, Ahmedabad – 380009, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	31.07.2003
Com. Reg. No.:	04-042706
Capital Investment / Paid-up Capital :	Rs.26.350 Millions
CIN No.: [Company Identification No.]	U28113GJ2003PTC042706
TAN No.: [Tax Deduction & Collection Account No.]	AHMN02199B
Legal Form :	Private Limited Liability Company
Line of Business :	Trader and Importer of Steel Products and Raw Materials.
No. of Employees :	20 (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 840000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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.

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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 :	Mr. Shankar Nandkishore Sultania
Designation :	Director
Contact No.:	91-9825006094
Date :	15.10.2013

LOCATIONS

Registered Office :	A / 802 Nirman Complex, Stadium Circle, Navrangpura, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-40050900/26560485/26562693/55300022
Mobile No.:	91-9825006094 (Mr. Shankar Nandkishore Sultania)
Fax No.:	91-79-40050903/26562693
E-Mail :	sultania@gmail.com info@nial.co.in
Website :	www.nial.co.in
Area :	3000 Sq. ft
Location :	Owned
Warehouse :	Venus Atlantis Corporate Park, Prahlad Nagar Road, Satellite, Ahmedabad – 380051, Gujarat, India
Branch Office :	4/59 Latif House, Sant Tukaram Road, Carnac Bunder, Mumbai – 400009, Maharashtra, India

DIRECTORS

As on 29.09.2012

Name :	Mr. Shankar Nandkishore Sultania
Designation :	Director
Address :	Kanak Bhawan, 18, Basant Bahar, Nr. Sterling City Club, Bopal, Ahmedabad – 380058, Gujarat, India
Date of Birth/Age :	01.03.1975
Date of Appointment :	31.07.2003
PAN No.:	AARHS2968G
DIN No.:	01709757
Name :	Mr. Amar Nandkishore Sultania
Designation :	Director
Address :	B/2/82, Goyal Intercity, Opp. T.V. Tower, Thaltej, Ahmedabad – 380054, Gujarat, India
Date of Birth/Age :	28.11.1977
Date of Appointment :	22.09.2004
PAN No.:	ACEPS3091D
DIN No.:	01709836

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Nandkishore Bansidhar Sultania	20998
Amar Nandkishore Sultania	754000
Nidhi Shanker Sultania	8000
Nandkishor Sultania HUF	5000
Shankarprasad Nandkishore Sultania	750000
Priyanka Sultania	1
Suhsila Devi Sultania	1
Metropolitan Carriage and Trading Company Limited	582500
Lupin Tie Up Private Limited	255000
Evershine Trade Link Private Limited	259500
Total	2635000

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Bodies corporate	41.63
Directors or relatives of Directors	58.37
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader and Importer of Steel Products and Raw Materials.
Imports :
Products :	Steel Products and Raw Materials
Countries :	· Japan · China · Korea · Russia · Ukraine
Terms :
Selling :	L/C/ Cash / Credit (30 Days/ 60 Days)
Purchasing :	Cash / Credit

GENERAL INFORMATION

Suppliers :

Steal Authority India Limited, Ahmedabad

Customers :

Wholesalers and Retailers

No. of Employees :

20 (Approximately)

Bankers :

• Central Bank of India, HLCC Area Branch, Navrangpura,, Ahmedabad - 380009, Gujarat, India

• Centurian Bank of Punjab, 304, Prerna Arcade, Near Parimal Crossing, Off. C.G. Road, Ellisbridge,, Ahmedabad - 380006, Gujarat, India
• HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel (West), Mumbai - 400013,Maharashtra, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Short-term borrowings
Rupee term loans from banks	556.020	271.551
Total	556.020	271.551

Banking Relations :
Auditors :
Name :	Sunil Poddar and Company Chartered Accountants
Address :	301-305, Vrajbumi Complex, Near Prathana Flat, Off C.G. Road, Navrangpura, Ahmedabd-380009, Gujarat, India
PAN N Income-tax PAN of auditor or auditor's firm :	ABEFS2044F

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2635000	Equity Shares	Rs.10/- each	Rs. 26.350 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	26.350	8.500
(b) Reserves & Surplus	183.403	126.109
(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)	209.753	134.609
(3) Non-Current Liabilities
(a) long-term borrowings	42.006	52.609
(b) Deferred tax liabilities (Net)	(0.392)	0.240
(c) Other long term liabilities	117.774	227.088
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	159.388	279.937
(4) Current Liabilities
(a) Short term borrowings	556.020	271.551
(b) Trade payables	0.000	0.000
(c) Other current liabilities	17.640	13.109
(d) Short-term provisions	3.615	4.707
Total Current Liabilities (4)	577.275	289.367
TOTAL	946.416	703.913
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2.734	2.126
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	1.403	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.687	0.687
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	12.391	0.032
Total Non-Current Assets	17.215	2.845
(2) Current assets
(a) Current investments	0.000	0.0000
(b) Inventories	306.170	203.680
(c) Trade receivables	253.591	272.011
(d) Cash and cash equivalents	298.398	45.906
(e) Short-term loans and advances	71.030	179.447
(f) Other current assets	0.012	0.024
Total Current Assets	929.201	701.068
TOTAL	946.416	703.913

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		8.500
2] Share Application Money		0.000
3] Reserves & Surplus		113.924
4] (Accumulated Losses)		0.000
NETWORTH		122.424
LOAN FUNDS
1] Secured Loans		128.781
2] Unsecured Loans		15.532
TOTAL BORROWING		144.313
DEFERRED TAX LIABILITIES		0.226
TOTAL		266.963
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.924
Capital work-in-progress		0.000
INVESTMENT		0.687
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	199.621
	Sundry Debtors	75.927
	Cash & Bank Balances	24.331
	Other Current Assets	0.000
	Loans & Advances	55.287
Total Current Assets		355.166
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	84.664
	Other Current Liabilities	3.979
	Provisions	2.207
Total Current Liabilities		90.850
Net Current Assets		264.316
MISCELLANEOUS EXPENSES		0.036
TOTAL		266.963

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1919.447	1678.104	820.511
		Other Income
		TOTAL	1919.447	1678.104	820.511
Less	EXPENSES
		Cost of Purchase
		Administrative Expenses
		Selling & Dist. Expenses
		Miscellaneous Exp. w/off
		Increase in Stock
		TOTAL	1913.296	1661.193	811.950
	PROFIT BEFORE TAX		6.151	16.911	8.561
Less	TAX		2.111	4.721	2.338
	PROFIT AFTER TAX		4.040	12.190	6.223
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		28.109	15.923	9.708
	BALANCE CARRIED TO THE B/S		31.253	28.109	15.923
	Earnings Per Share (Rs.)		1.53	14.34	7.32

Particulars	31.03.2013
Sales Turnover (Approximately)	3000.000

The above information has been parted by Mr. Shankar Nandkishore Sultania

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.21	0.73	0.76
Return on Total Assets (PBT/Total Assets}	(%)	0.65	2.40	2.40
Return on Investment (ROI) (PBT/Networth)		0.03	0.15	0.07
Debt Equity Ratio (Total Debt /Networth)		2.85	2.41	1.18
Current Ratio (Current Asset/Current Liability)		1.61	2.42	3.91

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS: NOT AVAILABLE

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	Yes
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 four 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	No
17]	Major suppliers	Yes
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]	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	No

PRESENT OPERATIONS and FUTURE PROSPECTS:

During the year, the overall performance of the company had been satisfactory. The total income of the Company was Rs.1919.447 Millions against the previous year income of Rs.1678.104 Millions. The net profit of the Company during the year was Rs.4.040 Millions as compared to the previous year's profit of Rs.12.190 Millions. The Directors are hopeful to achieve better results in future.

UNSECURED LOAN

PARTICULARS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long-term Borrowings
Loans and advances from directors	42.006	24.109
Intercorporate borrowings	0.000	28.500
Total	42.006	52.609

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10100042	10/05/2012 *	600,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W , MUMBAI, MAHARASHTRA - 400013, INDIA	B38822854

Note: * Date of charge modification

FIXED ASSETS

Tangible assets

· Furniture and fixtures

· Vehicles

· Motor vehicles

· Office equipment

· Computer equipments

· Other equipments

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 records 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] 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.61.69
UK Pound	1	Rs.98.59
Euro	1	Rs.83.67

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	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--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.