MIRA INFORM REPORT

Report Date :

04.09.2013

IDENTIFICATION DETAILS

Name :	BASSI STEEL LIMITED
Registered Office :	Chandigarh Ambala Road Village Gholumajrateh, (Dera Bassi), District Patiala – 140506, Punjab
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	14.06.1990
Com. Reg. No.:	16-010470
Capital Investment / Paid-up Capital :	Rs.10.000 Millions
CIN No.: [Company Identification No.]	U45202PB1990PLC010470
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Steel Ingots
No. of Employees :	120 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 161000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per the commitment. The company can be considered for normal business dealings at usual trade terms and condition.

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

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. Ashok Goyal
Designation :	Manager
Contact No.:	91-172-5085852
Date :	31.08.2013

LOCATIONS

Registered Office / Factory :	Chandigarh Ambala Road Village Gholumajrateh, (Dera Bassi), District Patiala – 140506, Punjab, India
Tel. No.:	91-172-5085852
Mobile No.:	91-9814017647 (Mr. Ashok Goyal)
Fax No.:	91-1762-281032
E-Mail :	bassisteelsltd@gmail.com
Location :	Owned

DIRECTORS

As on: 29.09.2012

Name :

Mr. Jiwan Lal

Designation :

Director

Address :

Shastri Nagar, Mandi Gobindgarh

Date of Birth/Age :

05.10.1950

Date of Appointment :

14.06.1990

DIN No. :

00345529

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	U45202PB1990PLC010470	BASSI STEELS LIMITED	Director	14/06/1990	14/06/1990	-	Active	NO
2	U27106PB1994PTC014558	BASSI ALLOYS PVT LTD	Director	11/05/1994	11/05/1994	-	Active	NO

Name :

Mr. Rattan Lal Goyal

Designation :

Director

Address :

1295, Sector 19B, Chandigarh

Date of Birth/Age :

07.12.1950

Date of Appointment :

22.10.1990

DIN No. :

00345554

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	U45202PB1990PLC010470	BASSI STEELS LIMITED	Director	22/10/1990	22/10/1990	-	Active	NO
2	U17219CH1993PLC013038	VATIKA SPINNING LIMITED	Director	01/09/1993	01/09/1993	30/06/2010	Active	NO
3	U31300CH1979PTC004078	SURYA CABLES PVT LTD	Managing director	01/09/1993	01/09/1993	-	Active	NO
4	U27106PB1994PTC014558	BASSI ALLOYS PVT LTD	Director	11/05/1994	11/05/1994	-	Active	NO
5	L21012PB1994PLC015064	VISHAL PAPERTECH (INDIA) LIMITED	Director	14/09/1994	14/09/1994	30/07/2008	Active	NO

Name :

Mr. Gaurav Singla

Designation :

Director

Address :

18, Shastri Nagar, Mandi Gobindgarh

Date of Birth/Age :

19.09.1981

Date of Appointment :

07.03.1998

DIN No. :

01278652

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	U45202PB1990PLC010470	BASSI STEELS LIMITED	Director	07/03/1998	07/03/1998	-	Active	NO
2	U28999PB2007PTC030916	SHRI SALASAR TUBES PRIVATE LIMITED	Director	23/02/2007	23/02/2007	-	Active	NO

Name :

Mr. Surendra Parshad Gupta

Designation :

Whole-time Director

Address :

1683, Phase – 7, Mohali

Date of Birth/Age :

13.10.1959

Date of Appointment :

01.03.2009

DIN No. :

02564285

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	U45202PB1990PLC010470	BASSI STEELS LIMITED	Whole-time director	01/03/2013	01/03/2009	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Ashok Goyal	7520
Jeewan Lal	18610
Rattan Goyal	10480
Manu Goyal	1010
Urmil Goyal	18990
Arun Singla	4500
Gaurav Singla	5800
Uma Singla	4900
Aman Singla	6150
Natwar Goyal	500
Dhruv Goyal	500
Pragya Singla	50
Rattan Goyal, HUF	5500
Shankuntla Enterprises	500
Maha Nivesh (I) Limited	5000
Gee Pcee Finance Limited	5000
Jiwan Lal HUF	2000
Parul Jain	2990
Total	100000

As on: 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Steel Ingots
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS AS ON (31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Non Alloy Steel Ingots	M.T	24000.00	24000.00	NA

GENERAL INFORMATION

Suppliers :

Ø Aspee Springs Limited

Ø Mahindra and Mahindra Limited

Ø P.J. Steel Enterprises MGG

Ø Raghav Steel, Jalandhar

Ø Nidhi Pipes Limited

Ø Naina Tube Tech (Private) Limited

Ø Rajesh Steel Corporation

Ø Keahav Steels MGG

Ø JTL Infra Limited

Ø Hansa Tubes (Private) Limited

Ø Prime Alloys

Ø R.S. Ispat Udyog

Ø G.B. Ispat Udyog

Ø Sangam Steel Industries

Ø Kisco Casting

Customers :

End Users

Ø Modiwire Products MGG

Ø Bharat Ispat Udyog

Ø Madhav Udyog (Private) Limited

Ø Fortune Metal Limited

Ø Everest Metal FZE

Ø Avdesh Tracks (Private) Limited

No. of Employees :

120 (Approximately)

Bankers :

Ø Central Bank of Commerce, Punjab, India

Ø Oriental Bank of Commerce, SSI Branch, Lalru Punjab, Lalru – 140506, Punjab, India

Ø Oriental Bank of Commerce, Chandigarh

Ø Union Bank of India, Chandigarh

Ø H.D.F.C. Bank, MGG

Ø Punjab and Sind Bank

Facilities :

Secured Loan	31.03.2012 [Rs. in Millions]	31.03.2011 [Rs. in Millions]
Short Term Borrowing
Loan Repayable on Demand
From Banks – Cash Credit	73.594	71.938
Total	73.594	71.938
NOTE: Working capital such as cash credit from Punjab and sind bank is secured by mortgage of land and building and hypothetication of stock, book debts and other current assets of the company. Aggregate amount of secured short term borrowing are guarantee by all director are as follows: Cash credit Rs. 73.594 millions (71.938 millions)

Banking Relations :	--
Auditors :
Name :	A Goel and Associates Chartered Accountant
Address :	SCF – 50, First Floor, Leela Bhawan Complex, Patiala – 147001, Punjab, India
PAN No. :	AAVPG3334Q
Tel No. :	91-172-2790152, 2790663, 2549057, Resi: 2549979
Fax No. :	91-172-2770819

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Million

After: 29.09.2012

Authorised Capital : Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.1.000 Million

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	10.000	10.000
(b) Reserves & Surplus	30.453	27.553
(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)	40.453	37.553
(3) Non-Current Liabilities
(a) long-term borrowings	8.500	0.000
(b) Deferred tax liabilities (Net)	2.829	2.612
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.168	0.190
Total Non-current Liabilities (3)	11.497	2.802
(4) Current Liabilities
(a) Short term borrowings	73.594	71.938
(b) Trade payables	63.554	30.463
(c) Other current liabilities	7.290	6.404
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	144.438	108.805
TOTAL	196.388	149.160
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	31.569	31.815
(ii) Intangible Assets	1.668	2.224
(iii) Capital work-in-progress	1.139	0.842
(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	0.000	0.000
(e) Other Non-current assets	9.695	9.276
Total Non-Current Assets	44.071	44.157
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	72.607	54.279
(c) Trade receivables	53.726	31.882
(d) Cash and cash equivalents	1.942	2.298
(e) Short-term loans and advances	23.239	15.816
(f) Other current assets	0.803	0.728
Total Current Assets	152.317	105.003
TOTAL	196.388	149.160

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		7.002
2] Share Application Money		0.000
3] Reserves & Surplus		23.164
4] (Accumulated Losses)		0.000
NETWORTH		30.166
LOAN FUNDS
1] Secured Loans		54.189
2] Unsecured Loans		10.000
TOTAL BORROWING		64.189
DEFERRED TAX LIABILITIES		1.613
TOTAL		95.968
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		12.479
Capital work-in-progress		4.886
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	61.915
	Sundry Debtors	22.201
	Cash & Bank Balances	1.590
	Other Current Assets	4.887
	Loans & Advances	9.932
Total Current Assets		100.525
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	21.838
	Provisions	0.084
Total Current Liabilities		21.922
Net Current Assets		78.603
MISCELLANEOUS EXPENSES		0.000
TOTAL		95.968

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	849.960	517.382	334.894
		Other Income	0.980	1.225	0.685
		TOTAL	850.940	518.607	335.579
Less	EXPENSES
		Cost of materials consumed	651.500	393.560	231.573
		Changes in inventories of finished goods and work-in-progress	6.877	(12.053)
		Employee benefits expenses	5.935	6.237	95.794
		Other expenses	169.778	114.862
		TOTAL	834.090	502.606	327.367
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		16.850	16.001	8.212
Less	FINANCIAL EXPENSES		9.603	5.634	3.055
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		7.247	10.367	5.157
Less/ Add	DEPRECIATION/ AMORTISATION		3.045	3.626	1.113
	PROFIT BEFORE TAX		4.202	6.741	4.044
Less	TAX		1.302	2.352	1.173
	PROFIT AFTER TAX		2.900	4.389	2.871
	EARNINGS IN FOREIGN CURRENCY		Nil	Nil	Nil
	IMPORTS
		Raw Materials	489.224	173.041	106.393
	TOTAL IMPORTS
	Earnings Per Share (Rs.)		29.00	43.89	41.01

Particulars	31.03.2013
Sales Turnover (Approximately)	800.000

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.34	0.85	0.85
Net Profit Margin (PBT/Sales)	(%)	0.49	1.30	1.21
Return on Total Assets (PBT/Total Assets}	(%)	2.15	4.54	3.43
Return on Investment (ROI) (PBT/Networth)		0.10	0.18	0.13
Debt Equity Ratio (Total Debt /Networth)		2.02	1.91	2.13
Current Ratio (Current Asset/Current Liability)		1.05	0.96	4.58

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 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	Yes
19]	Payments terms	Yes
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	No

UNSECURED LOAN:

Particulars	31.03.2012 [Rs. In Millions]	31.03.2011 [Rs. In Millions]
Long Term Borrowing
From Others	8.500	0.000
Total	8.500	0.000

INDEX CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10091349	29/01/2008	70,000,000.00	PUNJAB & SIND BANK	PUNJAB & SIND BANK, IFB, SECTOR 17B, CHANDIGARH, Chandigarh - 160017, INDIA	A33350224
2	90181850	01/09/1993	300,000.00	PUNJAB NATIONAL BANK	SECTOR- 16, CHANDIGARH, Chandigarh, INDIA	-

FIXED ASSETS:

Ø Land building

Ø Plant and Machinery

Ø Furniture and Fixture

Ø Vehicles

Ø 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.66.89
UK Pound	1	Rs.103.95
Euro	1	Rs.88.09

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	ANK

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	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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

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.