MIRA INFORM REPORT

Report Date :

05.08.2014

IDENTIFICATION DETAILS

Name :	VINAYAGA MARINE PETRO LIMITED
Registered Office :	Viraj impex House, 47, P.D. Mello Road, Mumbai – 400009, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	06.10.1997
Com. Reg. No.:	11-111092
Capital Investment / Paid-up Capital :	Rs.1.516 Millions
CIN No.: [Company Identification No.]	U35110MH1997PLC111092
PAN No.: [Permanent Account No.]	AABCV0793M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in Ship Building, Ship Repair and Offshore Engineering and also Deals in the flat Steel Product viz. Prime/Stock lot Flat Products like Hot Rolled, Cold Rolled Coils/Sheets/Plates, Non Alloy Steel Rod, M. S. Billets etc.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a part “Viraj Group”. It is an established company having satisfactory track record. The company has incurred a loss from its operations during 2013. However, general position of the company seems to be decent. The rating also takes into consideration long experience of the promoters in the iron and steel trading business, established relationship with reputed international suppliers, wide product profile and diversified customer base. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered good for normal business dealings 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Fund based limits (Cash Credit) BBB
Rating Explanation	Have moderate degree of safety and carry moderate credit risk.
Date	May 2013

Rating Agency Name	ICRA
Rating	Non fund based limits A3+
Rating Explanation	Have moderate degree of safety and carry higher credit risk.
Date	May 2013

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 31-03-2014.

INFORMATION DENIED BY

Name :	Mr. Dinesh
Designation :	Accountant
Contact No.:	91-22-61295060
Date :	04.08.2014

LOCATIONS

Registered Office :	Viraj impex House, 47, P.D. Mello Road, Mumbai – 400009, Maharashtra
Tel. No. :	91-22-61295000 / 61295060
Fax No. :	91-22-61295024
E-Mail :	virajimpex@virajimpex.com
Sales Office :	KL-6/11/15, Sector 3E, Kalamboli, New Mumbai – 410218, Maharashtra, India

DIRECTORS

As on 30.09.2013

Name :

Mr. Ratanlal Kaniyalal Didwania

Designation :

Whole-time Director

Address :

Flat No.20, 10^th Floor, New Usha Kiran, 15 Carmichael Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

02.08.1935

Date of Appointment :

01.10.2012

PAN No.:

ACQPD3760L

DIN No. :

00220820

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	U51900MH1978PTC020237	DIDWANIA IMPORT AND EXPORT COMPANY PRIVATE LIMITED	Whole-time director	22/03/1978	22/03/1978	-	Strike off	NO
2	U27109AS1984PLC002202	ASSAM GALVANIZING INDUSTRIES LIMITED	Whole-time director	02/08/1984	02/08/1984	-	Strike off	NO
3	U70101MH1986PTC041043	NIRBHAY HOLDINGS PRIVATE LIMITED	Whole-time director	07/11/1988	07/11/1988	-	Active	NO
4	L99999MH1985PLC082517	KAVI COMMERCIAL COMPANY LIMITED	Whole-time director	01/10/2012	12/11/1990	-	Active	NO
5	U51900MH1988PTC046416	VIRAJ IMPEX PRIVATE LIMITED	Whole-time director	01/10/2012	06/12/1990	-	Active	NO
6	U29299GJ1992PLC018611	GUJARAT PIPAVAV MARINE ENGINEERS LIMITED	Whole-time director	23/11/1992	23/11/1992	-	Active	NO
7	U31300GJ1980PLC054048	LUMEN MAGNETIC WIRES LIMITED	Managing director	03/04/1998	03/04/1998	-	Active	NO
8	U35110MH1997PLC111092	VINAYAGA MARINE PETRO LIMITED	Whole-time director	01/10/2012	19/01/2004	-	Active	NO
9	U70100MH1999PTC121018	VIRAJ PROPERTIES PRIVATE LIMITED	Whole-time director	03/07/2007	03/07/2007	-	Active	NO

Name :

Mr. Vimal Ratanlal Didwania

Designation :

Managing Director

Address :

Flat No. 212, Mont Blanc Co-operative Housing Society, Dadyseth Hill, August Kranti Marg, Mumbai – 400036, Maharashtra, India

Date of Birth/Age :

25.10.1955

Date of Appointment :

01.10.2012

PAN No.:

ACQPD3759B

DIN No. :

00221021

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	U51900MH1978PTC020237	DIDWANIA IMPORT AND EXPORT COMPANY PRIVATE LIMITED	Whole-time director	22/03/1978	22/03/1978	-	Strike off	NO
2	U70101MH1986PTC041043	NIRBHAY HOLDINGS PRIVATE LIMITED	Whole-time director	07/11/1988	07/11/1988	-	Active	NO
3	L99999MH1985PLC082517	KAVI COMMERCIAL COMPANY LIMITED	Whole-time director	01/10/2012	15/10/1990	-	Active	NO
4	U29299GJ1992PLC018611	GUJARAT PIPAVAV MARINE ENGINEERS LIMITED	Whole-time director	23/11/1992	23/11/1992	-	Active	NO
5	U35110MH1997PLC111092	VINAYAGA MARINE PETRO LIMITED	Managing director	01/10/2012	06/10/1997	-	Active	NO
6	U70100MH1999PTC121018	VIRAJ PROPERTIES PRIVATE LIMITED	Whole-time director	27/07/1999	27/07/1999	-	Active	NO
7	U70102MH1989PTC053323	VIRAJ LAND DEVELOPERS PRIVATE LIMITED	Director	22/04/2010	22/04/2010	-	Active	NO

Name :

Mr. Kailash Ratanlal Didwania

Designation :

Whole-time Director

Address :

30, Altamount Road, Chapsey Terracee, Mumbai-400 026, Maharashtra, India

Date of Birth/Age :

01.05.1959

Date of Appointment :

01.10.2013

PAN No.:

ACQPD3758A

DIN No. :

00226080

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	U51900MH1978PTC020237	DIDWANIA IMPORT AND EXPORT COMPANY PRIVATE LIMITED	Whole-time director	22/03/1978	22/03/1978	-	Strike off	NO
2	U51900MH1988PTC046416	VIRAJ IMPEX PRIVATE LIMITED	Managing director	01/10/2013	07/03/1988	-	Active	NO
3	U70101MH1986PTC041043	NIRBHAY HOLDINGS PRIVATE LIMITED	Whole-time director	07/11/1988	07/11/1988	-	Active	NO
4	U31300GJ1980PLC054048	LUMEN MAGNETIC WIRES LIMITED	Whole-time director	21/03/1998	21/03/1998	-	Active	NO
5	U70100MH1999PTC121019	ATMIKA PROPERTIES PRIVATE LIMITED	Whole-time director	27/07/1999	27/07/1999	-	Active	NO
6	U29299GJ1992PLC018611	GUJARAT PIPAVAV MARINE ENGINEERS LIMITED	Director	05/08/2009	05/08/2009	-	Active	NO
7	U35110MH1997PLC111092	VINAYAGA MARINE PETRO LIMITED	Whole-time director	01/10/2013	14/03/2013	-	Active	NO

Name :

Mr. Viraj Didwania

Designation :

Whole-time Director

Address :

Flat No. 212, Mont Blanc Co-operative Housing Society, Dadyseth Hill, August Kranti Marg, Mumbai – 400036, Maharashtra, India

Date of Birth/Age :

04.04.1982

Date of Appointment :

01.04.2009

PAN No.:

AFOPD5268G

DIN No. :

02412474

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	U35110MH1997PLC111092	VINAYAGA MARINE PETRO LIMITED	Whole-time director	01/04/2009	20/01/2004	24/09/2013	Active	NO
2	U70102MH1989PTC053323	VIRAJ LAND DEVELOPERS PRIVATE LIMITED	Director	22/04/2010	22/04/2010	-	Active	NO
3	U51101MH2013PTC242116	FORESIGHT BULLION INDIA PRIVATE LIMITED	Additional director	12/06/2013	12/06/2013	-	Active	NO
4	AAB-5776	FORESIGHT COMMODITIES INDIA LLP	Designated Partner	12/06/2013	12/06/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Dinesh
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Vimal R. Didwania	54150
Suman Didwania	100
Jeetendra C.Rathi	10
Sushil Poddar	10
Sushil Poddar	10
Ketan Shantilal Shah	10
Ami Ketan Shantilal Shah	10
Ratanlal Didwania	1940
Vinay Holdings Private Limited, India	17000
Indo-City Infotech Limited, India	5000
Insutech India Limited, India	3350
Chouhary Global Limited, India	3350
Alka Diamond Industries Limited, India	3350
Shresth Leasing & Finance Limited, India	5000
Sunciti Financial Services Private Limited, India	5000
Kushal Software Limited, India	3350
Amalgamated Commercial Traders Private Limited, India	5000
Javda India Impex Limited, India	5000
Jagmandri Finvest Private Limited, India	5000
Kim Electronics Industries Limited, India	5000
Kush Hindustan Entertainment Limited	10000
Lexus Infotech Limited, India	10000
Yash VJewels Limited, India	10000
Total	151640

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	62.91
Directors or relatives of Directors	37.09
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in Ship Building, Ship Repair and Offshore Engineering and also Deals in the flat Steel Product viz. Prime/Stock lot Flat Products like Hot Rolled, Cold Rolled Coils/Sheets/Plates, Non Alloy Steel Rod, M. S. Billets etc.

Products :

Item Code No. (ITC Code)	Product Description
89011040	Self-Propelled Inland Bulk Carrier/Barge

GENERAL INFORMATION

No. of Employees :	Not Divulged
Bankers :	· Canar Bank · Uco Bank

Banking Relations :	--
Auditors :
Name :	Bhatt and Mathur Chartered Accountants
Address :	402 / B –Wing, Star Manor, Anand Road Extension, Malad (West), Mumbai – 400064, Maharashtra, India
PAN No. :	AAAFB5870F
Associates :	¨ Viraj Impex Private Limited ¨ Kavi Commercial Company Limited ¨ Viraj Properties Private Limited

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
151640	Equity Shares	Rs.10/- each	Rs.1.516 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	1.516	1.516	1.516
(b) Reserves & Surplus	96.682	151.875	179.794
(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)	98.198	153.391	181.310
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.419
(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)	0.000	0.000	0.419
(4) Current Liabilities
(a) Short term borrowings	28.549	0.000	31.740
(b) Trade payables	349.148	830.537	132.159
(c) Other current liabilities	31.981	83.360	76.423
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	409.678	913.897	240.322
TOTAL	507.876	1067.288	422.051
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	81.133	83.149	78.572
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	1.553
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	30.000	30.000	30.000
(c) Deferred tax assets (net)	42.398	14.151	0.000
(d) Long-term Loan and Advances	8.653	7.255	6.424
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	162.184	134.555	116.549
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	138.838	191.380	132.246
(c) Trade receivables	25.369	141.584	13.712
(d) Cash and cash equivalents	174.345	571.112	127.779
(e) Short-term loans and advances	2.999	6.837	10.642
(f) Other current assets	4.141	21.820	21.123
Total Current Assets	345.692	932.733	305.502
TOTAL	507.876	1067.288	422.051

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	843.492	1524.696	965.908
		Other Income	17.804	22.285	9.297
		TOTAL	861.296	1546.981	975.205
Less	EXPENSES
		Cost of Materials Consumed	130.305	203.840	101.083
		Purchases of Stock-in-Trade	763.322	1372.481	863.656
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	17.942	(18.899)	(45.325)
		Employees benefits expense	11.828	9.074	2.944
		Other expenses	13.497	15.212	23.974
		TOTAL	936.894	1581.708	946.332
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(75.598)	(34.727)	28.873
Less	FINANCIAL EXPENSES		4.956	4.736	6.547
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		(80.554)	(39.463)	22.326
Less/ Add	DEPRECIATION/ AMORTISATION		2.931	3.083	1.313
	PROFIT/ (LOSS) BEFORE TAX		(83.485)	(42.546)	21.013
Less	TAX		(28.292)	(14.627)	7.003
	PROFIT/ (LOSS) AFTER TAX		(55.193)	(27.919)	14.010
	Earnings / (Loss) Per Share (Rs.)		(363.97)	(184.12)	92.39

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(6.41)	(1.80)	1.44
Net Profit Margin (PBT/Sales)	(%)	(9.90)	(2.79)	2.18
Return on Total Assets (PBT/Total Assets}	(%)	(19.17)	(4.16)	5.38
Return on Investment (ROI) (PBT/Networth)		(0.85)	(0.28)	0.12
Debt Equity Ratio (Total Debt/Networth)		0.29	0.00	0.18
Current Ratio (Current Asset/Current Liability)		0.84	1.02	1.27

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	1.516	1.516	1.516
Reserves & Surplus	179.794	151.875	96.682
Net worth	181.310	153.391	98.198
long-term borrowings	0.000	0.000	0.000
Short term borrowings	31.740	0.000	28.549
Total borrowings	31.740	0.000	28.549
Debt/Equity ratio	0.175	0.000	0.291

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)
Sales	965.908	1524.696	843.492
		57.851	(44.678)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	965.908	1524.696	843.492
Profit	14.010	(27.919)	(55.193)
	1.45%	(1.83%)	(6.54%)

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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three 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	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	Yes

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Other loans and advance	28.549	0.000
Total	28.549	0.000

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90158555	17/02/2005 *	80,000,000.00	CANARA BANK	FORT BRANCH, SIR PM RD, MUMBAI, Maharashtra - 400001, INDIA	-
2	90158407	12/07/2010 *	2,500,000,000.00	UCO BANK	FLAGSHIP CORPORATE BRANCH, 1ST FLOOR, MAFATLAL CENTRE, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA	A90714445

* Date of charge modification

BUSINESS REVIEW

The Company is engaged in ship building, ship repair and offshore engineering and also deals in the flat steel product viz. prime/stock lot flat products like Hot Rolled, Cold Rolled Coils/Sheets/Plates, Non Alloy Steel Rod, M.S. Billets etc.

Company is one of the India’s young and fast growing integrated shipyards. During the year, Company has successfully completed and delivered two 2300 DWT and two 2000 DWT Self-propelled iron ore bulk carrier to M/s. Sesa Goa Limited and got orders for manufacturing one Pontoon for submarine launching from Mazgaon Dock Limited. The revenue in F.Y.2012-13 includes gross revenue of Rs.151.000 millions from Shipping Division. Company has spent huge amount in developing best-in-class infrastructure to make it one of the premier shipyard in India.

Company’s sales were down by 44.68% during the F.Y. 2012-13 as compared to previous F.Y. 2011-12 and the margin of the Company was also hit mainly due to depreciation of the local currency and volatility in steel prices in the F.Y.2012-13. During the F.Y.2012-13, rupee has depreciated against US$ due to Europe’s financial crisis, which led to higher costs for imports.

Persistent slowdown in demand from key end-user industries kept the consumption growth muted during F.Y. 2012-13

.

Steel industry mainly derives its demand from other sectors like infrastructure, aviation, engineering, construction, automobile, pipes and tubes etc. Thus its intense integration with other important segments makes it a strategic focus area for the Government as well.

India Ratings and Research (Ind-Ra) anticipates that growth in Indian steel sector will gain momentum in 2014 on the back of growth in other economic segments. The World Steel Association (WSA) projects that local steel demand in India would increase by 5.9 per cent and 7 per cent in 2013 and 2014 respectively.

FIXED ASSETS

œ Land

œ Plant and Equipment

œ Furniture and Fixtures

œ Motor Vehicles

œ Computer 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 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.61.02
UK Pound	1	Rs.102.69
Euro	1	Rs.81.91

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	RAS
Report Prepared by :	ANK

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	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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	--

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