MIRA INFORM REPORT

Report Date :

30.10.2013

IDENTIFICATION DETAILS

Name :	POLMOR STEEL PRIVATE LIMITED
Registered Office :	Survey No.689, Sai Geeta Ashram Road, Devaryamjal Village, Shameerpet Mandal, Hyderabad – 500 014, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	09.09.2008
Com. Reg. No.:	01-060924
Capital Investment / Paid-up Capital :	Rs.10.349 Millions
CIN No.: [Company Identification No.]	U27100AP2008PTC060924
TAN No.: [Tax Deduction & Collection Account No.]	HYDP05793E
PAN No.: [Permanent Account No.]	AAECP8069R
Legal Form :	Private Limited Liability Company
Line of Business :	The company is engaged in the manufacturing of DMRC Battery Box and Job Work of Door Pillar.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (11)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appear some accumulated losses which has eroded networth of the company. Business is active. Payment terms are slow. The company can be considered for business dealing on a safe and secured 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.

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

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the trade deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

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.

LOCATIONS

Registered Office/ Factory :	Survey No.689, Sai Geeta Ashram Road, Devaryamjal Village, Shameerpet Mandal, Hyderabad – 500 014, Andhra Pradesh, India
Tel. No.:	91-8418-200121
Fax No.:	Not Available
E-Mail :	Panakalarao.sankarmanchi@polmor.in Balaraju.ranga@polmor.in
Website :	www.polmor.in

DIRECTORS

AS ON 28.08.2012

Name :	Mr. Bogdan Henryk Lubinski
Designation :	Director
Address :	77-100 jezimoa, Bytow, Poland – 22
Date of Birth/Age :	19.01.1950
Date of Appointment :	21.11.2008
DIN No.:	02338828
Name :	Mr. Piotr Smorawski
Designation :	Director
Address :	76-213 Mickiwicza Gardna, Wielka, Poland – 35
Date of Birth/Age :	07.08.1973
Date of Appointment :	21.11.2008
DIN No.:	02338846
Name :	Mr.Roger Adrianus Monique Van Steensel
Designation :	Director
Address :	80-178 Wiosenna Street, Gdansk, Poland – 27
Date of Birth/Age :	13.05.1972
Date of Appointment :	01.01.2009
DIN No.:	02338771
Name :	Mr. Panakala Rao Sankaramanchi
Designation :	Director
Address :	203 Aditya Admire, Officers Colony, Dr. A S Rao Nagar, Hyderabad – 500 062, Andhra Pradesh, India
Date of Birth/Age :	09.10.1975
Date of Appointment :	28.11.2011
DIN No.:	05131072
Name :	Mr. Venkata Rama Subba Rao Kalakonda
Designation :	Director
Address :	H. No.8-7-182/10, Swarnadhama Nagar, St Andrews High School, Old Bowenpally, Secunderabad – 500 011, Andhra Pradesh, India
Date of Birth/Age :	21.03.1964
Date of Appointment :	23.03.2013
DIN No.:	02221153

MAJOR SHAREHOLDERS

AS ON 28.08.2012

Names of Shareholders	No. of Shares
Polmor SP Zoo, Poland	951549
Mr. Jacek Kowalczyk	27414
Mr. Piotr Smorawski	27450
Mr.Tomasz Karcz	27456
Mr. Panakala Rao Sankaramanchi	1035
Total	1034904

LIST OF ALLOTTESS:

AS ON 20.05.2013

Names of Shareholders	No. of Shares
Polmor Sp Z. o. o., Poland	791313
Existing Paid up Shares	3543078
Total Paid up Shares including this allotment	4334391

Equity Share Break up (Percentage of Total Equity)

AS ON 28.08.2012

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	99.90
Directors or relatives of Directors	0.10
Total	100.00

BUSINESS DETAILS

Line of Business :	The company is engaged in the manufacturing of DMRC Battery Box and Job Work of Door Pillar.
Products :	· Railway · Electric Device

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	Not Divulged

Banking Relations :	--
Auditors :
Name :	K L Banerjee and Company Chartered Accountants
Address :	2-2-1105/69, First Floor, Opposite Care Model School, Tilak Nagar, new Nallakunta, Hyderabad – 500 044, Andhra Pradesh, India
Tel. No.:	91-40-27566979
E-Mail :	shreedhara_saha@yahoo.co.in
PAN No.:	AACFK6221H
Holding Company :	Polmor S P Zoo, Poland

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
6100000	Equity Shares	Rs. 10/- each	Rs.61.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1034904	Equity Shares	Rs. 10/- each	Rs.10.349 Millions

AFTER 28.08.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
6100000	Equity Shares	Rs. 10/- each	Rs.61.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4334391	Equity Shares	Rs. 10/- each	Rs.43.344 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	10.349	10.349
(b) Reserves & Surplus	(26.221)	(11.852)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	6.519	0.000
Total Shareholders’ Funds (1) + (2)	(9.353)	(1.503)
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.314	0.193
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	0.314	0.193
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	41.168	28.341
(c) Other current liabilities	0.707	0.232
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	41.875	28.573
TOTAL	32.836	27.263
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	11.196	13.342
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.073	0.146
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	11.269	13.488
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	10.843	3.151
(c) Trade receivables	0.000	5.150
(d) Cash and cash equivalents	7.453	4.651
(e) Short-term loans and advances	3.271	0.823
(f) Other current assets	0.000	0.000
Total Current Assets	21.567	13.775
TOTAL	32.836	27.263

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		10.349
2] Share Application Money		0.000
3] Reserves & Surplus		0.785
4] (Accumulated Losses)		0.000
NETWORTH		11.134
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		0.194
TOTAL		11.328
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14.967
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.628
	Sundry Debtors	8.351
	Cash & Bank Balances	1.233
	Other Current Assets	0.000
	Loans & Advances	0.586
Total Current Assets		14.798
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000
	Other Current Liabilities	28.060
	Provisions	0.000
Total Current Liabilities		28.060
Net Current Assets		(13.262)
MISCELLANEOUS EXPENSES		9.623
TOTAL		11.328

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
SALES
	Income
	Other Income
	TOTAL	NA	45.419	15.718
EXPENSES
	TOTAL	NA	NA	NA
PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		NA	2.169	4.159
DEPRECIATION/ AMORTISATION		NA	2.327	1.818
PROFIT/(LOSS) BEFORE TAX		NA	4.496	5.977
TAX		NA	0.000	0.000
PROFIT/(LOSS) AFTER TAX		12.984	4.496	5.977
IMPORTS
	Capital Goods		0.000	0.730
	Material		20.749	13.565
TOTAL IMPORTS		NA	20.749	13.565
Earnings Per Share (Rs.)		NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	9.90	38.03
Return on Total Assets (PBT/Total Assets}	(%)	NA	16.58	20.08
Return on Investment (ROI) (PBT/Networth)		NA	(2.99)	0.54
Current Ratio (Current Asset/Current Liability)		0.52	0.48	0.53

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	No
10]	Designation of contact person	No
11]	Turnover of firm for last two 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	No
24]	Banking facility details	No
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

NOTE:

· Registered office address of the company has been shifted from Sy.No.659/1, Near HBL Power Systems Limited, Lalgadi Malakpet, Shamirpet Mandal, RR District, Hyderabad – 500 078, Andhra Pradesh, India to Survey No.30 and 31, Raja Bollaram Village, Medchal Mandal, Ranga Reddy District, Hyderabad – 501 401, Andhra Pradesh w.e.f. 15.10.2011

Registered office has again shifted from Survey No.30 and 31, Raja Bollaram Village, Medchal Mandal, Ranga Reddy District, Hyderabad – 501 401, Andhra Pradesh, India to the present address w.e.f. 01.03.2012

· No Charges Exist for Company.

FIXED ASSETS:

· Building

· Plant and Machinery

· Computers

· Furniture

· Office Equipment

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.61.46
UK Pound	1	Rs.98.99
Euro	1	Rs.84.72

INFORMATION DETAILS

Report Prepared by :

NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	1
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	1
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		11

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.