MIRA INFORM REPORT

Report Date :

01.09.2014

IDENTIFICATION DETAILS

Name :	KUBER CASTING PRIVATE LIMITED
Registered Office :	G T Road, Sirhind Side, Mandi Gobindgarh, District – Fatehgarh Sahib - 147301, Punjab
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	14.10.2004
Com. Reg. No.:	16 – 027579
Capital Investment / Paid-up Capital :	Rs. 5.980 Millions
CIN No.: [Company Identification No.]	U27310PB2004PTC027579
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Carbon and Alloys Forging Steel Ingots, MS and Alloys Steel Casting, Annealing Furnances
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track Management has reported a low profit margin during FY 13. However, trade relations seem to be fair. Business is active. Payment terms are slow. The company can be considered for business dealings with 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.

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. Rakesh
Designation :	Business Development Manager
Contact No.:	91- 9814255489
Date :	27.08.2014

LOCATIONS

Registered Office :	G T Road, Sirhind Side, Mandi Gobindgarh, District – Fatehgarh Sahib - 147301, Punjab, India
Tel. No.:	91-1765-252437 / 255409
Mobile No.:	91-9814255489 (Mr. Rakesh)
Fax No.:	91-1765-257486
E-Mail :	kubercasting@gmail.com
Website :	http://www.kubercating.com

DIRECTORS

As on: 30.09.2013

Name :

Mr. Rakesh Kumar

Designation :

Director

Address :

4 Gandhi Nagar, Mandi Gobindgarh, District Fatehgarh Sahib – 147301, Punjab, India

Date of Appointment :

14.10.2004

DIN No.:

00806777

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	U51909PB2000PTC023339	GUJRAT STELCO PRIVATE LIMITED	Managing director	03/02/2002	03/02/2002	-	Active	NO
2	U27310PB2004PTC027579	KUBER CASTING PRIVATE LIMITED	Director	14/10/2004	14/10/2004	-	Active	NO
3	AAC-3903	VHR ALLOYS LLP	Designated Partner	20/06/2014	20/06/2014	-	Active	NO

Name :

Mr. Vishal Sahi

Designation :

Director

Address :

95, Narotam Nagar, Khanna District Ludhiana – 141401, Punajb, India

Date of Appointment :

14.10.2004

DIN No.:

00806724

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	U27310PB2004PTC027579	KUBER CASTING PRIVATE LIMITED	Director	14/10/2004	14/10/2004	-	Active	NO
2	AAC-3903	VHR ALLOYS LLP	Designated Partner	20/06/2014	20/06/2014	-	Active	NO

Name :

Mr. Hemant Kumar

Designation :

Director

Address :

4 Gandhi Nagar, Mandi Gobindgarh, District Fatehgarh Sahib – 147301, Punjab, India

Date of Appointment :

04.12.2004

DIN No.:

00806850

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	U51909PB2000PTC023339	GUJRAT STELCO PRIVATE LIMITED	Whole-time director	29/09/2012	03/02/2000	-	Active	NO
2	U27310PB2004PTC027579	KUBER CASTING PRIVATE LIMITED	Director	04/12/2004	04/12/2004	-	Active	NO
3	AAC-3903	VHR ALLOYS LLP	Designated Partner	20/06/2014	20/06/2014	-	Active	NO

Name :

Mr. Bahadur Chand Sahi

Designation :

Director

Address :

Partap Street, Khanna District Ludhiana – 141401, Punjab, India

Date of Appointment :

06.10.2006

DIN No.:

00593816

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	U27106PB1994PTC015031	DEV ALLOYS PRIVATE LIMITED	Additional director	09/02/2009	06/09/1994	02/03/2009	Active	NO
2	U24111PB1987PTC007495	AJAY GASES PRIVATE LIMITED	Director	05/09/1996	05/09/1996	-	Active	NO
3	U27310PB2004PTC027579	KUBER CASTING PRIVATE LIMITED	Director	16/10/2006	16/10/2006	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Rakesh
Designation :	Business Development Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2013

Names of Shareholders	No. of Shares
Rakesh Kumar	46940
Vishal Sahi	201600
Veena Rani	30480
Hoshiar Chand HUF	5700
Raman Kumar	47880
Kiran Khullar	7060
Hemant Kumar	43920
Naresh Batta	7020
Hemant HUF	4000
Rakesh Kumar HUF	4000
Parveen Singhi	4000
Zareen Sahi	62100
Ishvam Sahi	2200
Ishan Sahi	2000
Vishal Sahi HUF	31000
Gujrat Stelco Private Limited	98000
Bahadur Chand Sahi	100
Total	598000

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 Carbon and Alloys Forging Steel Ingots, MS and Alloys Steel Casting, Annealing Furnances
Products :	· Industrial Equipments · Forged Industrial Equipments · Steel Ingots · Industrial Rollers · Casting Product

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	State Bank Of Patiala, G T Road, Mandi Gobindgarh – 147301, Punjab, India
Facilities :	--

Banking Relations :	--
Auditors :
Name :	Data Singla and Company Chartered Accountants
Address :	SCO 34, Sector 4D, Mandi Gobindgarh – 147301, Punjab, India
PAN No.:	AAAFD8577H

CAPITAL STRUCTURE

As on: 31.03.2013

Authorized Capital:

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
598000	Equity Shares	Rs.10/- each	Rs. 5.980 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	5.980	5.980	5.980
(b) Reserves & Surplus	37.801	35.484	32.073
(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)	43.781	41.464	38.053
(3) Non-Current Liabilities
(a) long-term borrowings	13.306	2.909	2.470
(b) Deferred tax liabilities (Net)	0.754	0.854	1.514
(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)	14.060	3.763	3.984
(4) Current Liabilities
(a) Short term borrowings	101.827	108.657	78.982
(b) Trade payables	139.554	59.946	60.083
(c) Other current liabilities	42.438	19.283	24.968
(d) Short-term provisions	3.351	2.952	1.407
Total Current Liabilities (4)	287.170	190.838	165.440
TOTAL	345.011	236.065	207.477
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	21.806	18.493	17.852
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	1.890
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.250	0.250	0.250
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	7.435	6.396	3.775
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	29.491	25.139	23.767
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	66.442	108.191	85.992
(c) Trade receivables	108.371	37.501	38.331
(d) Cash and cash equivalents	107.758	40.617	37.799
(e) Short-term loans and advances	32.949	24.617	21.588
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	315.520	210.926	183.710
TOTAL	345.011	236.065	207.477

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2013	31.03.2012	31.03.2011
SALES	979.600	729.800	489.800
NET PROFIT /LOSS	3.400	3.600	3.600
Earnings Per Share (Rs.)	5.69	6.02	6.02

KEY RATIOS

PARTICULARS	31.03.2013	31.03.2012	31.03.2011
Debt Equity Ratio (Total Debt/Networth)	2.63	2.69	2.14
Current Ratio (Current Asset/Current Liability)	1.10	1.11	1.11

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	5.980	5.980	5.980
Reserves & Surplus	32.073	35.484	37.801
Net worth	38.053	41.464	43.781
long-term borrowings	2.470	2.909	13.306
Short term borrowings	78.982	108.657	101.827
Total borrowings	81.452	111.566	115.133
Debt/Equity ratio	2.140	2.691	2.630

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	489.800	729.800	979.600
		49.000	34.229

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	489.800	729.800	979.600
Profit	3.600	3.600	3.400
	0.73%	0.49%	0.35%

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	No
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	No
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	No

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80049160	11/02/2010	94,500,000.00	STATE BANK OF PATIALA	G T ROAD,, MANDI GOBINDGARH - 147301, Punjab, INDIA	A81051625

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 judgment or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration:

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration:

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime:

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws:

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards:

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government:

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package:

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report:

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.47
UK Pound	1	Rs.100.35
Euro	1	Rs.79.86

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	SUB
Report Prepared by :	JAY

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.