MIRA INFORM REPORT

Report Date :

16.08.2014

IDENTIFICATION DETAILS

Name :	GND ISPAT PRIVATE LIMITED KEDIA STEELS (A PROPRIETORSHIP FIRM OF GND ISPAT PRIVATE LIMITED)
Registered Office :	GND Chambers, Bhaisthan, Agrasen Chowk, Raipur – 492001, Chhattisgarh
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	25.04.2005
Com. Reg. No.:	10-017547
Capital Investment / Paid-up Capital :	Rs. 4.997 Millions
CIN No.: [Company Identification No.]	U27101CT2005PTC017547
PAN No.: [Permanent Account No.]	AACCG6090K
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Iron and Steel Commodity.
No. of Employees :	10 (Approximately)

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 :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. General financial position of the company seems to be decent. Profitability of the company is fair. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for 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	CRISIL
Rating	Long term rating: “BBB-”
Rating Explanation	Moderate degree of safety an moderate credit risk.
Date	06.06.2013

Rating Agency Name	CRISIL
Rating	Short term rating: “A3”
Rating Explanation	Moderate degree of safety and high credit risk.
Date	06.06.2013

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 PARTED BY (GENERAL DETAILS)

Name :	Mr. Himanshu
Designation :	Finance Head
Contact No.:	91-771-2535241
Date :	13.08.2014

LOCATIONS

Registered Office :	GND Chambers, Bhaisthan, Agrasen Chowk, Raipur – 492001, Chhattisgarh, India
Tel. No.:	91-771-2535241/ 4030453/ 6459582/ 6458663
Mobile No.:	91-9827403533/ 9425208635 (Mr. Deepak Kedia) 91-9827137253 (Mr. Naresh Kumar Kedia)
Fax No.:	91-77-2535251
E-Mail :	account@kediasteels.com sales@kediasteels.com info@kediasteels.com GNDIspat@kediasteels.com kediasteels@gmail.com
Website :	www.kediasteels.com
Warehouse :	D-2, Loha Bazar, Raipur, Chhattisgarh, India

DIRECTORS

As on 26.09.2013

Name :

Mr. Deepak Kedia

Designation :

Director

Address :

H. No.: 319-320, Ram Kripa, Near Pani Tanki, Samta Colony, Raipur – 492001, Chhattisgarh, India

Date of Birth/Age :

25.10.1984

Date of Appointment :

25.04.2005

PAN No.:

AKQPK6291H

DIN No.:

00269774

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	Company/ LLP Status	Defaulting status
1	U27101CT2005PTC017547	GND ISPAT PRIVATE LIMITED	Director	25-04-2005	25-04-2005	Active	NO
2	U70100CT2011PTC022597	GND INFRAVEST PRIVATE LIMITED	Director	29-07-2011	29-07-2011	Active	NO

Name :

Mr. Naresh Kumar Kedia

Designation :

Director

Address :

H. No.: 319-320, Ram Kripa, Near Pani Tanki, Samta Colony, Raipur – 492001, Chhattisgarh, India

Date of Birth/Age :

22.12.1957

Date of Appointment :

25.04.2005

PAN No.:

AEVPK0710Q

DIN No.:

01281799

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	Company/ LLP Status	Defaulting status
1	U27101CT2005PTC017547	GND ISPAT PRIVATE LIMITED	Director	25-04-2005	25-04-2005	Active	NO
2	U70100CT2011PTC022597	GND INFRAVEST PRIVATE LIMITED	Director	29-07-2011	29-07-2011	Active	NO

Name :

Mrs. Lalita Devi Kedia

Designation :

Director

Address :

H. No.: 319-320, Ram Kripa, Near Pani Tanki, Samta Colony, Raipur – 492001, Chhattisgarh, India

Date of Birth/Age :

22.12.1963

Date of Appointment :

25.04.2005

PAN No.:

AEVPK0711R

DIN No.:

00269820

KEY EXECUTIVES

Name :	Mr. Himanshu
Designation :	Finance Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.09.2013

Names of Shareholders	No. of Shares	Percentage of Holding
Deepak Kedia	336000	56.03
Naresh Kedia	34000	5.67
Lalita Devi Kedia	188000	31.35
GND Infravest Private Limited, India	41725	6.96
Total	599725	100.00

As on 26.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	6.96
Directors or relatives of Directors	93.04
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of Iron and Steel Commodity.
Terms :
Selling :	L/C, Cheque and Credit
Purchasing :	L/C, Cheque and Credit

GENERAL INFORMATION

No. of Employees :

10 (Approximately)

Bankers :

Union Bank of India, Samta Colony Branch, Raipur - 492001, Chhattisgarh, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Loans repayable on demand from banks (Hypothecation of current asset, EMl and and building, FDR etc.)	63.255	76.306
Total	63.255	76.306

Banking Relations :	--
Auditors :
Name :	Mahendra Kashyap and Company Chartered Accountants
Address :	211, 2^nd Floor, Deshbandhu Complex, Agrasen Chowk, Samta Colony, Raipur – 492001, Chhattisgarh, India
Income-tax PAN of auditor or auditor's firm :	AEWPK4438G

CAPITAL STRUCTURE

After 26.09.2013

Authorised Capital : Rs. 6.500 Millions

Issued, Subscribed & Paid-up Capital : Rs. 6.397 Millions

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
500,000	Equity Shares	Rs.10/- each	Rs. 5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
499,725	Equity Shares	Rs.10/- each	Rs. 4.997 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	4.997	3.777	3.210
(b) Reserves & Surplus	71.062	46.678	31.402
(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)	76.059	50.455	34.612
(3) Non-Current Liabilities
(a) long-term borrowings	10.000	20.000	12.000
(b) Deferred tax liabilities (Net)	0.000	0.000	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)	10.000	20.000	12.000
(4) Current Liabilities
(a) Short term borrowings	63.255	76.306	68.941
(b) Trade payables	77.823	85.001	61.473
(c) Other current liabilities	17.538	5.249	4.645
(d) Short-term provisions	0.539	0.480	1.018
Total Current Liabilities (4)	159.155	167.036	136.077
TOTAL	245.214	237.491	182.689
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3.439	1.090	1.272
(ii) Intangible Assets	0.000	0.000	0.008
(iii) Capital work-in-progress	0.000	0.000	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	0.000	0.000
(d) Long-term Loan and Advances	0.006	0.566	0.606
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	3.445	1.656	1.886
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	44.954	69.722	23.890
(c) Trade receivables	190.556	136.603	122.944
(d) Cash and cash equivalents	0.702	22.003	26.062
(e) Short-term loans and advances	5.557	7.507	7.907
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	241.769	235.835	180.803
TOTAL	245.214	237.491	182.689

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income
		Other Income
		TOTAL (A)	1493.750	1594.263	1182.500
Less	EXPENSES
		TOTAL (B)	1473.041	1584.226	1173.397
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		20.709	10.037	9.103
Less	FINANCIAL EXPENSES (D)		9.301	0.000	0.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		11.408	10.037	9.103
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.543	0.250	0.313
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		10.865	9.787	8.790
Less	TAX (H)		3.560	3.020	2.722
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		7.305	6.767	6.068
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		23.344	16.577	10.509
	BALANCE CARRIED TO THE B/S		30.649	23.344	16.577
	Earnings / (Loss) Per Share (Rs.)		14.62	17.92	17.92

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.49	0.42	0.51
Return on Total Assets (PBT/Total Assets}	(%)	4.43	4.12	4.81
Return on Investment (ROI) (PBT/Networth)		0.14	0.19	0.25
Debt Equity Ratio (Total Debt/Networth)		0.96	1.91	2.34
Current Ratio (Current Asset/Current Liability)		1.52	1.41	1.33

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	3.210	3.777	4.997
Reserves & Surplus	31.402	46.678	71.062
Net worth	34.612	50.455	76.059
long-term borrowings	12.000	20.000	10.000
Short term borrowings	68.941	76.306	63.255
Total borrowings	80.941	96.306	73.255
Debt/Equity ratio	2.339	1.909	0.963

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	1182.500	1594.263	1493.750
		34.821	-6.305

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	1182.500	1594.263	1493.750
Profit	6.068	6.767	7.305
	0.51%	0.42%	0.49%

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 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	No
17]	Major suppliers	No
18]	Major customers	No
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	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10069604	17/12/2011 *	120,000,000.00	UNION BANK OF INDIA	SAMTA COLONY BRANCH, RAIPUR, CHHATTISGARH - 492001, INDIA	B29654738

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Loans and advances from directors	10.000	20.000
Total	10.000	20.000

REVIEW OF OPERATIONS

The gross turnover of the Company for financial year 2012-13 decreased to Rs. 1493.700 Millions in comparison to Rs. 1594.100 Millions of the previous financial year due to sluggish market conditions. However, your company has been able to increase the net profit after tax of the Company to Rs. 7.305 Millions from that of Rs. 6.667 Millions of previous year.

FIXED ASSETS

Tangible Assets

· Buildings

Furniture and Fixtures

Vehicles

Motor Vehicles

Office Equipment

Computer Equipments

Other 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.61.06
UK Pound	1	Rs.101.84
Euro	1	Rs.81.56

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	KAR
Report Prepared by :	MRI

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	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	NO
--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	--

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.