MIRA INFORM REPORT

Report Date :

22.04.2014

IDENTIFICATION DETAILS

Name :	HINDUSTAN FERRO ALLOY INDUSTRIAL PRIVATE LIMITED
Registered Office :	Survey No. 37/1/1, SAMCO Industrial Estate, Near Pari Company, Narhe, Taluka – Haveli, Pune – 411041, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	07.09.2010
Com. Reg. No.:	25-137273
Capital Investment / Paid-up Capital :	Rs.94.000 Millions
CIN No.: [Company Identification No.]	U27310PN2010PTC137273
PAN No.: [Permanent Account No.]	AAACH5231M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Bright Bars Distributors of All Types Ferrous and Non-Ferrous Metals
No. of Employees :	115 (Approximately) (In Office = 25 + In Factory = 90)

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 420000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Overall financial position of the company is decent. However, trade relations are reported to be fair. Business is active. Payments are reported to be usually correct. The company can be considered normal for business dealing at usual 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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 for the fiscal third quarter ended September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in exports and moderation in gold imports. Manufacturing activity and new orders in India showed their strongest growth in a year in February. The news comes as a relief after data showed Asia’s third largest economy grew by a slower-than-expected 4.7 % annually in the three months through December. The HSBC Manufacturing Purchasing Managers’ Index which gauges the business activity of India’s factories but not its’ utilities, rose to 52.5 in February, its highest in a year from 51.4 in January. Overall new orders for factory goods which rose to a one-year high of 54.9 contributed to the surge. China has emerged as India’s biggest trading partner in the current financial year replacing the United Arab Emirates and pushing it to the third spot. India-China trade has reached $49.5 billion with a 8.7 % share in India’s total trade. The US comes second at $46 billion with 8.1 % share during the first nine months of the current financial year.

The Reserve Bank of India has granted an additional nine months to the public to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000 denominations, pushing the deadline to January 1, 2015. A day before dates for the Lok Sabha polls were announced, the government decided to hike interest rates on fixed deposit schemes offered by post offices up to 0.2 per cent. The new rates will be effective April, 1. The Supreme Court will resume hearing on March, 11 Nokia’s appeal against a ruling over transferring ownership of its local mobile phones plant which is the subject of a tax dispute to Microsoft Corp.

In the last days of the current Government, another scam has surfaced. The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The Central Bureau of Investigation will look into allegations that over $80 million was paid in kickbacks in a deal signed in 2011. India has asked Boeing Co. to find a solution for problems with state-owned Air India’s 787 Dreamliners. The aircraft has experienced a series of malfunctions since its debut in 2011.

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. Mayur M. Jamgaonkar
Designation :	Assistant manager
Contact No.:	91-8888816696
Date :	03.04.2014

LOCATIONS

Registered Office / Factory :	Survey No. 37/1/1, SAMCO Industrial Estate, Near Pari Company, Narhe, Taluka – Haveli, Pune – 411041, Maharashtra, India
Tel. No.:	91-91-20-66475100 / 01 / 02
Mobile No.:	91-8888816696 (Mr. Mayur M. Jamgaonkar)
Fax No.:	91-20-66475151
E-Mail :	dineshoswal@gmail.com kantioswal@yahoo.co.in
Location :	Owned (Commercial)

DIRECTORS

As on: 30.09.2013

Name :	Mr. Dinesh Hastimal Oswal
Designation :	Whole Time Director
Address :	Sujay Garden, Building, Flat No. 502, 12 Mukund Nagar, Gultekadi, Pune – 411037, Maharashtra, India
Date of Birth/Age :	29.04.1973
Date of Appointment :	07.09.2010
PAN No.:	AAAPO6821H
DIN No.:	02914420
Name :	Mr. Kantilal Hastimal Oswal
Designation :	Managing Director
Address :	Sujay Garden Building No.1, Flat No. 402, 12 Mukund Nagar, Gultekadi, Pune – 411037, Maharashtra, India
Date of Birth/Age :	01.06.1967
Date of Appointment :	07.09.2010
PAN No.:	AABPO0918J
DIN No.:	02914421
Name :	Mr. Rahul Champalal Jain
Designation :	Whole Time Director
Address :	12 Mukund Nagar, Sujay Garden, Flat No.410, Chintamani Building, Gultekadi, Pune – 411037, Maharashtra, India
Date of Birth/Age :	03.02.1979
Date of Appointment :	01.12.2010
PAN No.:	AEHPJ2151C
DIN No.:	03276387
Name :	Mr. Bhavesh Champalal Jain
Designation :	Whole Time Director
Address :	303/1, Nana Peth, Pune – 411002, Maharashtra, India
Date of Birth/Age :	22.06.1984
Date of Appointment :	01.12.2010
DIN No.:	03276395
Name :	Mr. Bharat Jethmal Oswal
Designation :	Whole Time Director
Address :	135, Nana Peth, Flat No. 14, Pune – 411002, Maharashtra, India
Date of Birth/Age :	22.07.1978
Date of Appointment :	01.12.2010
PAN No.:	AAIPO0810G
DIN No.:	03278483
Name :	Mrs. Prabha Dinesh Oswal
Designation :	Whole Time Director
Address :	Flat No. 502, Wing – k, Swayambhu Building, Sujay Garden, Mukund Nagar, Pune – 411037, Maharashtra, India
Date of Birth/Age :	01.06.1977
Date of Appointment :	01.12.2010
PAN No.:	AAGPO3389N
DIN No.:	03280186
Name :	Mrs. Pushpa Kantilal Oswal
Designation :	Whole Time Director
Address :	402, Vighnahara, Sujay Garden Society, Mukund Nagar, Pune – 411037, Maharashtra, India
Date of Birth/Age :	01.06.1970
Date of Appointment :	01.12.2010
DIN No.:	03306366

KEY EXECUTIVES

Name :	Mr. Mayur M. Jamgaonkar
Designation :	Assistant manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2013

Names of Shareholders	No. of Preference Shares	No. of Equity Shares
Kantilal Hastimal Oswal	359,000	20,000
Dinesh Hastimal Oswal	306,000	19,998
Bharat Jethmal Oswal	65,000	20,000
Rahul Champalal Jain	22,000	10,000
Bhavesh Champalal Jain	9,000	10,000
Pushpa Kantilal Oswal	44,000	10,000
Prabha Dinesh Oswal	35,000	10,000
Dinesh Hastimal Oswal, HUF	-	1
Kantilal Hastimal Oswal, HUF	-	1
Total	840,000	100,000

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2013

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

• Manufacturer of Bright Bars
• Distributors of All Types Ferrous and Non-Ferrous Metals

Products :

Product	ITC Code
Bright Bars	7228

• Metal Bars
• Mild Steel Bright Bars
• Carbon Steel Bright Bars
• Free Cutting Steel Bright Bars
• Case Hardening Steel Bright Bars
• Alloy Steel Bright Bars
• Tool Steel and Die Steel

Terms :

Selling :

Credit (30 Days)

Purchasing :

Cash and Advance Payment

GENERAL INFORMATION

Suppliers :

• JHS
• CSI

Customers :

Wholesaler:

Vishwas Auto Private Limited

No. of Employees :

115 (Approximately) (In Office = 25 + In Factory = 90)

Bankers :

Canara Bank, Prime Corporate Branch, 11 M.G. Road, Camp, Pune – 411001, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long Term Borrowings
Rupee term loans from banks	4.892	5.996
Short Term Borrowings
Rupee term loans from banks	181.176	142.295
Total	186.068	148.291

Banking Relations :

--

Financial Institution :

Daimler Financial Service India Private Limited, Unit 202, 2^nd Floor, Campus 3B, RMZ Millennia, Business Park No. 143, Dr. M.G.R. Road, Chennai – 600096, Tamil Nadu, India

Auditors :

Name :

SNR and Associates

Chartered Accountants

Address :

4, Mahatma Gandhi, Road, Pune – 411001, Maharashtra, India

PAN No.:

ABYFS5130J

Related Parties :

• Shree Ambika Metal Corporation
• Jainam Steels
• Panchasara Metal Corporation
• Hindustan Steel Syndicate
• Adinath Metal Corporation
• Venus Industries

CAPITAL STRUCTURE

As on: 30.09.2013

Authorised Capital:

No. of Shares	Type	Value	Amount
100,000	Equity Shares	Rs.100/- each	Rs.10.000 Millions
900,000	Preference Shares	Rs.100/- each	Rs.90.000 Millions
	Total		Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
100,000	Equity Shares	Rs.100/- each	Rs.10.000 Millions
840,000	Preference Shares	Rs.100/- each	Rs.84.000 Millions
	Total		Rs.94.000 Millions

FINANCIAL DATA

[All figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	94.000	79.000	49.000
(b) Reserves & Surplus	10.480	4.670	1.302
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	104.480	83.670	50.302
(3) Non-Current Liabilities
(a) long-term borrowings	29.130	19.554	25.523
(b) Deferred tax liabilities (Net)	0.732	0.303	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	29.862	19.857	25.523
(4) Current Liabilities
(a) Short term borrowings	181.176	142.295	125.876
(b) Trade payables	113.685	94.591	63.518
(c) Other current liabilities	12.284	9.830	23.557
(d) Short-term provisions	5.137	3.813	3.377
Total Current Liabilities (4)	312.282	250.529	216.328
TOTAL	446.624	354.056	292.153
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	41.407	34.527	31.967
(ii) Intangible Assets	0.249	0.000	0.000
(iii) Capital work-in-progress	0.822	1.691	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.087	0.000
(d) Long-term Loan and Advances	1.158	0.019	0.011
(e) Other Non-current assets	0.233	0.395	0.000
Total Non-Current Assets	43.869	36.719	31.978
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	187.826	181.230	113.307
(c) Trade receivables	199.070	122.878	132.652
(d) Cash and cash equivalents	6.240	7.971	3.683
(e) Short-term loans and advances	9.456	5.095	10.440
(f) Other current assets	0.163	0.163	0.093
Total Current Assets	402.755	317.337	260.175
TOTAL	446.624	354.056	292.153

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income
		Other Income
		TOTAL (A)	520.304	460.830	254.540
Less	EXPENSES
		TOTAL (B)	479.246	421.633	241.340
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		41.058	39.197	13.200
Less	FINANCIAL EXPENSES (D)		27.202	29.211	8.920
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		13.856	9.986	4.280
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.330	4.602	2.247
	PROFIT BEFORE TAX (E-F) (G)		8.526	5.384	2.033
Less	TAX (H)		2.716	2.016	0.731
	PROFIT AFTER TAX (G-H) (I)		5.810	3.368	1.302
	Earnings Per Share (Rs.)		6.18	3.58	1.39

Particulars	31.03.2014
Sales Turnover (Approximately)	700.000

The above information has been parted by Mr. Mayur M. Jamgaonkar

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.12	0.73	0.51
Return on Total Assets (PBT/Total Assets}	(%)	1.91	1.53	0.70
Return on Investment (ROI) (PBT/Networth)		0.08	0.06	0.04
Debt Equity Ratio (Total Debt/Networth)		2.01	1.93	3.01
Current Ratio (Current Asset/Current Liability)		1.29	1.27	1.20

FINANCIAL ANALYSIS

[All figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	49.000	79.000	94.000
Reserves & Surplus	1.302	4.670	10.480
Net worth	50.302	83.670	104.480
long-term borrowings	25.523	19.554	29.130
Short term borrowings	125.876	142.295	181.176
Total borrowings	151.399	161.849	210.306
Debt/Equity ratio	3.010	1.934	2.013

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	254.540	460.830	520.304
		81.044	12.906

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	254.540	460.830	520.304
Profit	1.302	3.368	5.810
	0.51%	0.73%	1.12%

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	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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
Long Term Borrowings
Loans and advance from related parties	24.238	13.558
Total	24.238	13.558

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10396530	28/11/2012	1,768,000.00	Daimler Financial Services India Private Limited	Unit 202, 2nd Floor, Campus 3B,RMZ Millennia, Business Park, No.143, Dr. M.G.R.Road, Perungudi, Chennai - 600096, Tamil Nadu, INDIA	B65725822
2	10275570	23/03/2013 *	254,000,000.00	CANARA BANK	PRIME CORPORATE BRANCH., 11M.G. ROAD,CAMP, PUNE - 411001,  Maharashtra, INDIA	B72797905

* Date of charge modification

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.60.34
UK Pound	1	Rs.101.41
Euro	1	Rs.83.38

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	SUM
Report Prepared by :	VNK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--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	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		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	--

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.