MIRA
INFORM REPORT

Report Date :

17.04.2014

Tel. No.:

91-22-23080096/23097594/23090362/23850225 (R)

Fax No.:

91-22-23079961

IDENTIFICATION DETAILS

Name :

STEEL MART

Registered
Office :

2/14, Pais Street, Byculla (West), Near Veena Killedar Industrial
Estate, Mumbai 400011, Maharashtra

Country :

India

Financials (as
on) :

31.03.2014

Year of
Establishment :

1986

Capital
Investment / Paid-up Capital :

Not Divulged

Legal Form :

Sole Proprietary Concern

Line of Business
:

Manufacturer and Exporter of Carbon Steel Forging, Alloy Forging etc.

No. of Employees
:

10 (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

Status :

Satisfactory

Payment Behaviour :

Usually Correct

Litigation :

Clear

Comments :

Subject is an established proprietary concern having satisfactory
track record.

Trade relations are fair. Business is active. Payment terms are
reported to be usually correct.

The concern can be considered for business dealing at usual trade term
and conditions.

NOTES :

Any query related to this report can be made
on e-mail : [email-masked]
while quoting report number, name and date.

ECGC Country Risk Classification List – March 31, 2014

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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

US investment bank
Goldman Sachs  has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.

India’s
economy may grow 4.7 % in the current financial year, lower than the official
estimate of 4.9 %, Fitch Rating said. The global rating agency expects the
economy to pick up in the next two financial years.

Global ratings agency
Standard & Poor said increasing focus by India Inc on lowering debt is
likely to improve their credit profiles.

Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.

There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.

Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.

Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.

Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.

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. Juzer Faizy

Designation :

Proprietor

Contact No.:

91-9820038502

Date :

11.04.2014

LOCATIONS

Registered Office / Factory :

2/14, Pais Street, Byculla (West), Near Veena Killedar Industrial
Estate, Mumbai 400011, Maharashtra, India

Tel. No.:

91-22-23080096 / 23097594 / 23090362 / 23850225

Mobile No.:

91-9820038502 [Mr. Juzer Faizy]

Fax No.:

91-22-23079961

E-Mail :

[email-masked]

Website :

http://www.steelmar.com

SOLE PROPRIETOR

Name :

Mr. Juzer Faizy

Designation :

Proprietor

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Carbon Steel Forging, Alloy Forging etc.

Exports :

Products :

Carbon Steel Forging, Alloy Forging etc

Countries :

Middle East

Asian Country

Europe

Terms :

Selling :

Cash and Advance Payment

Purchasing :

Cash and Advance Payment

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

10 (Approximately)

Bankers :

ICICI Bank, Nariman Point, Mumbai, Maharashtra, India

Banking
Relations :

--

Auditors :

Name :

S.S. Gharat and Associates

Chartered Accountants

CAPITAL STRUCTURE

Capital Investment :

Owned :

Not Divulged

Borrowed :

Not Divulged

Total :

Not Divulged

FINANCIAL DATA

[all figures are
in Rupees Millions]

Particulars

31.03.2014

31.03.2013

31.03.2012

Sales Turnover [Approximately]

60.000

55.000

50.000

The above information has been parted by Mr. Juzer Faizy.

Note : Sole Proprietary and Partnership concerns are
exempted from filing their financials with the Government Authorities or
Registry.

FINANCIAL ANALYSIS

[all figures are
in Rupees Millions]

YEAR-ON-YEAR GROWTH

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

50.000

55.000

60.000

10.000

9.091

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

No

8]

No. of employees

Yes

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

No

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

No

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

No

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

No

29]

Last accounts filed at ROC

No

30]

Major Shareholders, if available

No

31]

PAN of Proprietor/Partner/Director, if available

No

32]

Date
of Birth 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

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 records 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]         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.60.23

UK Pound

1

Rs.100.79

Euro

1

Rs.83.29

INFORMATION DETAILS

Information
Gathered by :

SVA

Analysis Done by
:

KAR

Report Prepared
by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS

RANGE

POINTS

HISTORY

1~10

6

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

5

--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

YES

--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

--

NB

New Business

--