MIRA INFORM REPORT

Report Date :

01.09.2014

IDENTIFICATION DETAILS

Name :	R. R. INDUSTRIAL CORPORATION INDIA PRIVATE LIMITED
Registered Office :	Station Road, Telghani Naka, Raipur – 492001, Chhattisgarh
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	29.05.2009
Com. Reg. No.:	10-021207
Capital Investment / Paid-up Capital :	Rs. 66.900 Millions
CIN No.: [Company Identification No.]	U27100CT2009PTC021207
Legal Form :	Private Limited Liability Company
Line of Business :	Trading of M. S. Angle and M. S. Channel and Other Steel Products
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (28)

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 profit margin of the company is very low. However, trade relations are reported as fair. Business is active. Payments terms are reported to be slow but correct. The company can be considered for business dealings 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 (B+)
Rating Explanation	High risk of default
Date	20.12.2012

Rating Agency Name	CRISIL
Rating	SHORT – TERM RATING (A4)
Rating Explanation	Minimal degree of safety. It carry very high credit risk
Date	20.12.2012

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. M. V. Ravi
Designation :	Accountant
Contact No.:	91- 771-4008301
Date :	27.08.2014

LOCATIONS

Registered Office :	Station Road, Telghani Naka, Raipur – 492001, Chhattisgarh, India
Tel. No.:	91-771-4008301 – 330
Fax No.:	91-771-4008318
E-Mail :	rrindutrialraipur@rrsteelraipur.com rrindustrial@sify.com
Website :	www.rrsteelraipur.com
Branches :	Located At: Rourkela (Orissa) Indore (Madhya Pradesh) Hyderabad (Andhra Pradesh) Nagpur (Maharashtra) Sikar (Rajasthan) Luckniow (Uttar Pradesh) Surat (Gujarat)

DIRECTORS

As on: 30.09.2013

Name :

Mr. Sanjay Kumar Jain

Designation :

Managing Director

Address :

House No. 3/600, College Ward, Raipur – 492001, Chhattisgarh, India

Date of Birth/Age :

17.09.1971

Date of Appointment :

29.05.2009

DIN No.:

00703158

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	U27108CT2004PTC017004	R.R.IRON AND STEEL PRIVATE LIMITED	Director	01/10/2004	01/10/2004	-	Active	NO
2	U27102CT2004PTC016621	UDAY SPONGE AND POWER PRIVATE LIMITED	Additional director	17/07/2008	17/07/2008	02/08/2008	Active	NO
3	U45200CT2009PTC021094	AARTI R.R. INFRAPROJECTS PRIVATE LIMITED	Director	09/03/2009	09/03/2009	-	Active	NO
4	U27100CT2009PTC021207	R.R. INDUSTRIAL CORPORATION (INDIA) PRIVATE LIMITED	Managing director	29/05/2009	29/05/2009	-	Active	NO
5	U65922WB1991PTC052539	KUSH TRADING & COMMERCE PVT LTD	Director	04/01/2010	04/01/2010	-	Active	NO

Name :

Mr. Kanhaiya Lal Gangwal

Designation :

Director

Address :

R.R. Industrial Corporation, H. P. Petrol Pump, Telghani Naka, Raipur – 492001, Chhattisgarh, India

Date of Birth/Age :

10.07.1940

Date of Appointment :

29.05.2009

DIN No.:

02611186

Name :

Mr. Rekha Jain

Designation :

Director

Address :

House No. 3/600, College Ward, Raipur – 492001, Chhattisgarh, India

Date of Birth/Age :

27.03.1972

Date of Appointment :

29.05.2009

DIN No.:

00703330

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	U27108CT2004PTC017004	R.R.IRON AND STEEL PRIVATE LIMITED	Director	01/10/2004	01/10/2004	-	Active	NO
2	U27100CT2009PTC021207	R.R. INDUSTRIAL CORPORATION (INDIA) PRIVATE LIMITED	Director	29/05/2009	29/05/2009	-	Active	NO
3	U65922WB1991PTC052539	KUSH TRADING & COMMERCE PVT LTD	Director	04/01/2010	04/01/2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. M. V. Ravi
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2013

Names of Shareholders	No. of Shares	% of Holding
Sanjay Kumar Jain	5000	0.07
Rekha Jain	5000	0.07
R. R. Iron And Steel Private Limited, India	375000	5.61
Kanhaiya Lal Gangwal	2105000	31.46
Kush Trading And Commerce Private Limited, India	4200000	62.78
Total	6690000	100.00

As on: 31.03.2014

Names of Allottees	No. of Shares
Kush Trading And Commerce Private Limited, India	1293600
Total	1293600

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2013

Category	Percentage
Bodies corporate	68.39
Directors or relatives of directors	31.61
Total	100.00

BUSINESS DETAILS

Line of Business :

Trading of M. S. Angle and M. S. Channel and Other Steel Products

Products :

Description of Product	Code of Product
Steel Items	7228

· Structural Steel

· Sheets

· Rail Poles

· Stainless Steel

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· State Bank Of India, Medium Enterprises Sales Hub, SME Branch Premises, Byrion Bazar, Raipur – 492001, Chhattisgarh, India

· Punjab National Bank. Main Branch, Jai Stambh Chowk, Raipur – 492001, Chhattisgarh, India

Facilities :

Secured Loan	As on 31.03.2013	As on 31.03.2012
	(Rs. In Millions)
LONG TERM BORROWINGS:
Other loans and advances	0.307	0.000
SHORT TERM BORROWINGS:
Working capital loans from banks	30.786	24.840
Loans repayable on demand from banks	0.000	15.564
Total	31.093	40.404

Banking Relations :	--
Auditors :
Name :	R. K. Singhania and Associates Chartered Accountants
Address :	205, 1^st Floor, Samta Colony, Raipur, Chhattisgarh, India
PAN No.:	AAGFR3093N
Holding company :	Kush Trading and Commerce Private Limited, India CIN No.: U65922WB1991PTC052539
Associates :	Shree Shyam Rolling Mill R.R. Industrial Corporation R.R. Iron And Steel Private Limited Aarti R.R. Infraprojects Private Limited

CAPITAL STRUCTURE

As on: 31.03.2013

Authorized Capital:

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
7983600	Equity Shares	Rs.10/- each	Rs.79.836 Millions

As on: 31.03.2013

Authorized Capital:

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
6690000	Equity Shares	Rs.10/- each	Rs.66.900 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	66.900	24.900	3.850
(b) Reserves & Surplus	102.512	36.407	33.864
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.050	0.050
Total Shareholders’ Funds (1) + (2)	169.412	61.357	37.764
(3) Non-Current Liabilities
(a) long-term borrowings	29.622	34.650	0.450
(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)	29.622	34.650	0.450
(4) Current Liabilities
(a) Short term borrowings	30.786	40.404	1.220
(b) Trade payables	235.301	141.278	46.665
(c) Other current liabilities	7.880	6.628	0.154
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	273.967	188.310	48.039
TOTAL	473.001	284.317	86.253
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1.012	0.044	0.000
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	4.712	4.712	0.017
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	23.810	23.629	0.000
(c) Deferred tax assets (net)	0.046	0.076	0.000
(d) Long-term Loan and Advances	31.933	21.671	0.005
(e) Other Non-current assets	0.000	0.000	0.354
Total Non-Current Assets	61.513	50.132	0.376
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	29.113	5.795	2.694
(c) Trade receivables	350.770	215.659	42.909
(d) Cash and cash equivalents	4.475	7.728	24.649
(e) Short-term loans and advances	25.456	4.382	14.829
(f) Other current assets	1.674	0.621	0.796
Total Current Assets	411.488	234.185	85.877
TOTAL	473.001	284.317	86.253

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income
		Other Income
		TOTAL	1541.255	1395.188	64.783
Less	EXPENSES		1536.664	1391.102	64.522
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		4.591	4.086	0.261
Less	DEPRECIATION/ AMORTISATION		0.169	0.020	0.000
Less	AMORTIZATION OF PRELIMINARY EXPENSES		0.000	0.354	0.088
	PROFIT BEFORE TAX		4.422	3.712	0.173
Less	TAX		1.318	1.169	0.059
	PROFIT AFTER TAX (G-H)		3.104	2.543	0.114
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.657	0.114	0.000
	BALANCE CARRIED TO THE B/S		5.761	2.657	0.114
	Earnings Per Share (Rs.)		0.46	0.38	0.02

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.20	0.18	0.18
Return on Total Assets (PBT/Total Assets}	(%)	0.99	1.45	0.20
Return on Investment (ROI) (PBT/Networth)		0.03	0.06	0.00
Debt Equity Ratio (Total Debt/Networth)		0.36	1.22	0.04
Current Ratio (Current Asset/Current Liability)		1.50	1.24	1.79

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	3.850	24.900	66.900
Reserves & Surplus	33.864	36.407	102.512
Share Application money pending allotment	0.050	0.050	0.000
Net worth	37.764	61.357	169.412
long-term borrowings	0.450	34.650	29.622
Short term borrowings	1.220	40.404	30.786
Total borrowings	1.670	75.054	60.408
Debt/Equity ratio	0.044	1.223	0.357

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	64.783	1395.188	1541.255
		2053.633	10.469

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	64.783	1395.188	1541.255
Profit	0.114	2.543	3.104
	0.18%	0.18%	0.20%

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

Note: The Registered Office of the company has been shifted from Ashika Stock Btoking Limited, Telghani Naka, Raipur – 492001, Chhattisgarh, India to the present address w.e.f. 18.08.2009.

UNSECURED LOAN

Particulars	As on 31.03.2013	As on 31.03.2012
	(Rs. In Millions)
LONG TERM BORROWINGS:
Intercorporate Deposits	19.000	0.000
Loans and Advances From Directors	10.315	0.650
Loans and Advances From Others	0.000	34.000
Total	29.315	34.650

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10385371	28/09/2012	45,000,000.00	PUNJAB NATIONAL BANK	MAIN BRANCH, JAI STAMBH CHOWK, RAIPUR - 492001, CHHATTISGARH, INDIA	B61695946
2	10321086	26/08/2013 *	114,368,000.00	STATE BANK OF INDIA	MEDIUM EENTERPRISES SALES HUB, SME BRANCH PREMISES, BYRON BAZAR,, RAIPUR - 492001, CHHATTISGARH, INDIA	B83220681

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 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 :	DIV
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	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.