MIRA INFORM REPORT

Report Date :

20.08.2014

IDENTIFICATION DETAILS

Name :	HST STEELS PRIVATE LIMITED
Registered Office :	5-4-42 To 50, Kanayalal Estate, Distllery Road, Secunderabad – 500003, Telangana
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	21.03.1995
Com. Reg. No.:	01-019752
Capital Investment / Paid-up Capital :	Rs.301.620 Millions
CIN No.: [Company Identification No.]	U27109TG1995PTC019752`
TAN No.: [Tax Deduction & Collection Account No.]	HYDH00539A
PAN No.: [Permanent Account No.]	AAACH5992B
Legal Form :	Private Limited Liability Company
Line of Business :	Stockist and Dealers of Iron and Steel.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (34)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating is constrained on account of company’s moderate financial risk profile and low profitability levels of the company. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing with some caution.

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=BB+
Rating Explanation	Inadequate credit quality and high credit risk.
Date	24.12.2013

Rating Agency Name	CRISIL
Rating	Short term rating=A4+
Rating Explanation	Minimal degree of safety and high credit risk.
Date	24.12.2013

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

Management Non Co-operative (91-40-23720174)

LOCATIONS

Registered Office :	5-4-42 To 50, Kanayalal Estate, Distllery Road, Secunderabad – 500003, Telangana, India
Tel. No.:	91-40-27544242/255382121
Fax No.:	91-40-27542524
E-Mail :	recoauditors@yahoo.com
Website :	www.hststeels.com
Office and Sales Depot :	Plot No.40/A, Industrial Development Area (IDA), Balanagar, Hyderabad – 500037, Andhra Pradesh, India
Tel. No.:	91-40-23720174/23720274
Fax No.:	91-40-23720175
E-Mail :	sales@hststeels.com hststeels@mail.com

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Gaggar Arun

Designation :

Director

Address :

5-4-42 To 50, Kanayalal Estate, Distllery Road, Secunderabad – 500003, Telangana, India

Date of Birth/Age :

10.03.1965

Date of Appointment :

21.03.1995

DIN No.:

01519748

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	U27109TG1995PTC019752	HST STEELS PRIVATE LIMITED	Director	21/03/1995	21/03/1995	-	Active	NO
2	U55101AP2003PTC041465	BVS POWER PRIVATE LIMITED	Director	06/08/2003	06/08/2003	-	Strike off	NO
3	U51109WB1995PTC069623	SYMPATHY MERCANTILE PVT LTD	Director	16/07/2007	16/07/2007	-	Active	NO
4	U15142TG1978PTC002370	UTTAM DHATU AND ISPAT PRIVATE LIMITED	Director	25/07/2007	25/07/2007	-	Active	NO
5	U73100TG2000PLC035011	BIOLIFE TECHNOLOGIES LIMITED	Director	30/09/2013	30/09/2013	-	Active	NO

Name :

Mr. Anil Kumar Gaggar

Designation :

Director

Address :

5-4-42 To 50, Kanayalal Estate, Distllery Road, Secunderabad – 500003, Telangana, India

Date of Birth/Age :

03.09.1966

Date of Appointment :

21.03.1995

DIN No.:

01627297

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	U27109TG1995PTC019752	HST STEELS PRIVATE LIMITED	Director	21/03/1995	21/03/1995	-	Active	NO
2	U55101AP2003PTC041465	BVS POWER PRIVATE LIMITED	Director	06/08/2003	06/08/2003	-	Strike off	NO
3	U15142TG1978PTC002370	UTTAM DHATU AND ISPAT PRIVATE LIMITED	Director	25/07/2007	26/12/2006	-	Active	NO
4	U51109WB1995PTC069623	SYMPATHY MERCANTILE PVT LTD	Director	16/07/2007	16/07/2007	-	Active	NO
5	U73100TG2000PLC035011	BIOLIFE TECHNOLOGIES LIMITED	Director	30/09/2013	30/09/2013	-	Active	NO

Name :

Mrs. Geeta Devi Gaggar

Designation :

Director

Address :

5-4-42 To 50, Kanayalal Estate, Distllery Road, Secunderabad – 500003, Telangana, India

Date of Birth/Age :

21.09.1946

Date of Appointment :

13.10.2005

DIN No.:

02428471

MAJOR SHAREHOLDERS

AS ON 30.09.2013

Names of Shareholders	No. of Shares
Arun Kumar Gaggar	397510
Anju Gaggar	348250
Sunita Devi Gaggar	271800
Anil Kumar Gaggar	662700
Raj Kumar Gaggar	1930
Geeta Devi Gaggar	148210
Sympathy Merchentile Private limited, India	500000
Anil Gaggar HUF	150000
Arun Gaggar HUF	110000
Total	2590400

LIST OF ALLTTES:

AS ON 31.03.2014

Names of Shareholders	No. of Shares
Anil Gaggar	28100
Anju Gaggar	41900
Anil Gaggar HUF	41900
Arun Gaggar HUF	32300
Arun Gaggar	25800
Geeta Devi Gaggar	58100
Sunita Gaggar	33200
Vista Metal Works Private Limited	64500
Wisdom Steeltech Private Limtied	35500
Sushma Exim (India) Limited	64500
Total	425800

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2013

Category	Percentage
Bodies corporate	19.30
Directors or relatives of Directors	80.70
Total	100.00

BUSINESS DETAILS

Line of Business :

Stockist and Dealers of Iron and Steel.

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

State Bank of India, Commercial Branch, Ashoka My Home Chambers, S P Road, Secunderabad – 500003, Telangana, India

Facilities :

SECURED LOANS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
Long Term Borrowings
Term loans from banks	2.576	2.891
Short Term Borrowings
Loans repayable on demand from banks	1357.403	1471.282
Total	1359.979	1474.173

Banking Relations :	--
Auditors :
Name :	Arvind Jain and Associates Chartered Accountants
Address :	25 To 29, 2^nd Floor, Hyderi Complex, Pan Bazar, Ranigunj, Secunderabad – 500003, Telangana, India
PAN No.:	ACOPJ9666M
Associate :	Uttam Dhatu and Ispat Private Limited
Subsidiaries :	HST Steels and Infra Limited, Hong Kong

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
3200000	Equity Shares	Rs.100/- each	Rs.320.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3016200	Equity Shares	Rs.100/- each	Rs.301.620 Millions

AS ON 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
3200000	Equity Shares	Rs.100/- each	Rs.320.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2590400	Equity Shares	Rs.100/- each	Rs.259.040 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	301.620	230.470	203.250
(b) Reserves & Surplus	631.418	420.720	359.183
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	79.996	40.000
Total Shareholders’ Funds (1) + (2)	933.038	731.186	602.433
(3) Non-Current Liabilities
(a) long-term borrowings	2.576	2.891	5.285
(b) Deferred tax liabilities (Net)	3.288	3.252	2.750
(c) Other long term liabilities	199.463	199.154	325.607
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	205.327	205.297	333.642
(4) Current Liabilities
(a) Short term borrowings	1357.403	1471.282	1080.955
(b) Trade payables	76.126	222.397	144.821
(c) Other current liabilities	1.641	12.872	19.225
(d) Short-term provisions	37.682	23.091	22.732
Total Current Liabilities (4)	1472.852	1729.642	1267.733
TOTAL	2611.217	2666.125	2203.808
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	132.932	143.703	143.174
(ii) Intangible Assets	0.000	0.000	0.000
(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	11.560	13.115	20.900
(e) Other Non-current assets	0.424	0.000	0.000
Total Non-Current Assets	144.916	156.818	164.074
(2) Current assets
(a) Current investments	31.919	0.000	0.000
(b) Inventories	1420.875	1197.125	1103.115
(c) Trade receivables	960.197	1277.249	889.858
(d) Cash and cash equivalents	3.936	3.658	1.694
(e) Short-term loans and advances	49.374	31.275	45.067
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	2466.301	2509.307	2039.734
TOTAL	2611.217	2666.125	2203.808

PROFIT & LOSS ACCOUNT

Particulars	31.03.2014	31.03.2013	31.03.2012
Sales Turnover	9679.400	8549.400	9073.900
Profit/Loss for the year before Tax	106.400	72.300	71.600

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PBT/Sales)	(%)	1.10	0.85	0.79
Return on Total Assets (PBT/Total Assets}	(%)	4.07	2.71	3.25
Return on Investment (ROI) (PBT/Networth)		0.11	0.10	0.12
Debt Equity Ratio (Total Debt /Networth)		1.46	2.02	1.80
Current Ratio (Current Asset/Current Liability)		1.67	1.45	1.61

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	203.250	230.470	301.620
Reserves & Surplus	359.183	420.720	631.418
Share Application money pending allotment	40.000	79.996	0.000
Net worth	602.433	731.186	933.038
long-term borrowings	5.285	2.891	2.576
Short term borrowings	1080.955	1471.282	1357.403
Total borrowings	1086.240	1474.173	1359.979
Debt/Equity ratio	1.803	2.016	1.458

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	9,073.900	8,549.400	9,679.400
		(5.780)	13.217

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	9,073.900	8,549.400	9,679.400
Profit	71.600	72.300	106.400
	0.79%	0.85%	1.10%

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	No
10]	Designation of contact person	No
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90262536	25/03/2014 *	1,310,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, MID CORPORATE GROUP, ASHOKA MY HOME CHAMBERS, S P ROAD, SECUNDERABAD, TELANGANA - 500003, INDIA	C13101530
2	90134814	28/03/2005 *	75,000,000.00	STATE BANK OF INDIA	BALANAGAR BRANCH, HYDERABAD, ANDHRA PRADESH - 500037, INDIA	-

*Date of modification Charges

FIXED ASSETS:

· Air Conditioner

· Car

· Cellular Phone

· Commercial Vehicle

· Computer

· Cycle

· Generator

· Xerox Machine

· Television

· Water Cooler

· Plant and Machinery

· Pager

· Welding Machine

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.60.73
UK Pound	1	Rs.101.48
Euro	1	Rs.81.04

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	KRN
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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		34

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.