MIRA INFORM REPORT

Report Date :

03.11.2014

IDENTIFICATION DETAILS

Name :	MORTEX (INDIA)
Registered Office :	No. 1A, East India House, 20, British India Street, Kolkata – 700069, West Bengal
Country :	India
Financials (as on) :	31.03.2014
Year of Establishment :	1977
Capital Investment / Paid-up Capital :	Rs.433.795 Millions
IEC No.:	Not Available
TIN No.:	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Partnership Concern with an unlimited liability of the partners
Line of Business :	Trader and Exporter of Ferro Products, Iron and Metal.
No. of Employees :	45 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 1200000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established partnership concern having satisfactory record. The rating takes into consideration concerns experienced partners, long track record in the steel and ferro alloys trading business, established clientele, well-diversified products portfolio, low reserve concentration risk, low commodity price and forex fluctuation risk with back-to-back orders and satisfactory working capital management. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The concern 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	CARE
Rating	Long Term Bank Facilities = BBB-
Rating Explanation	Have moderate degree of safety and Carry moderate credit risk
Date	20.02.2014

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A3
Rating Explanation	Have moderate degree of safety and Carry moderate credit risk
Date	20.02.2014

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

Name :	Mr. Indumanis
Designation :	Accounts Head
Contact No.:	91-33-22430764
Date :	28.11.2014

LOCATIONS

Registered Office/ Factory :	No.1A, East India House, 20, British India Street, Kolkata – 700 069, West Bengal, India
Tel. No.:	91-33-22430764
Mobile No. :	91-9831038363 (Mr. Mahesh Keyal)
Fax No.:	91-33-22486310
E-Mail :	sales@mortex.in director@mortex.in marketing@mortex.in
Website :	www.mortex.in
Area :	1000 sq. ft.
Location :	Owned
Warehouse :	149-6, J.N. Mukharjee Road, Bandhaghat, Near Maya Cinema, Howrah – 711106, West Bengal, India

PARTNERS

Name :	Mr. Mahesh Keyal
Designation :	Partner
Name :	Mrs. Rashi Keyal
Designation :	Partner
Name :	Mrs. Shardaben Keyal
Designation :	Partner

KEY EXECUTIVES

Name :	Mr. Indumanis
Designation :	Accounts Head

BUSINESS DETAILS

Line of Business :	Trader and Exporter of Ferro Products, Iron and Metal.
Exports :
Products :	Ferro Products, Iron and Metal
Countries :	Asian Counties African Countries European Countries Turkey Japan Pakistan Sri Lanka Bangladesh
Import :	Not Available
Terms :
Selling :	Cash and Advance Payment
Purchasing :	Cash and Advance Payment

GENERAL INFORMATION

Suppliers :	Not Divulged
Customers :	Not Divulged
No. of Employees :	45 (Approximately)
Bankers :	Standard Chartered Bank, 19, Netaji Subhash Road, Kolkata, West Bengal, India Ratnakar Bank Limited, Kolkata Main Branch, West Bengal, India HSBC Bank ICICI Bank Limited, R.M. Mukharjee Road, Kolkata, West Bengal, India
Facilities :	Total Facilities = Rs.250.000 Millions (From ICICI Bank Limited) Total Facilities = Rs.150.000 Millions (From Ratnakar Bank Limited) Total Facilities = Rs.90.000 Millions (From HSBC Bank) Total Facilities = Rs.700.000 Millions (From Standard Chartered Bank)

Auditors :
Name :	Zaver and Company Chartered Accountants
Address :	Kolkata, West Bengal, India

CAPITAL STRUCTURE

As on 31.03.2014

Capital Investment :
Owned :	Rs.433.795 Millions
Borrowed :
Total :	Rs.433.795 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Share Capital		433.795	289.454
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		433.795	289.454
LOAN FUNDS
1] Secured Loans		655.778	522.971
2] Unsecured Loans		168.009	176.137
TOTAL BORROWING		823.787	699.108
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		1257.582	988.562
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.096	1.803
Capital work-in-progress		0.000	0.000
INVESTMENT		83.296	9.796
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	97.191	33.814
	Sundry Debtors	644.570	679.926
	Cash & Bank Balances	99.319	19.162
	Other Current Assets	234.845	227.547
	Loans & Advances	381.594	291.311
Total Current Assets		1457.519	1251.760
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	260.600	293.583
	Other Current Liabilities	25.729	11.214
	Provisions	0.000	0.000
Total Current Liabilities		286.329	304.797
Net Current Assets		1171.190	946.963
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		1257.582	958.562

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013
	SALES
		Income	7,453.881	5,870.162
		Other Income	463.967	318.106
		TOTAL	7,917.848	6,188.268
Less	EXPENSES
		Cost of goods sold	7,358.580	5,788.984
		Advertisement	0.233	0.131
		Bank Charges	15.247	6.414
		Commission	4.522	2.443
		Conference Fees	0.190	0.161
		Consultancy charges	1.911	0.376
		Conveyance expenses	0.104	0.080
		Delivery expenses	0.569	0.977
		Computer software and website expenses	0.311	0.000
		Donation	5.910	3.735
		Export inspection charges	10.216	6.265
		Discounts and rebate	14.721	0.000
		Clearing and forwarding charges	285.505	229.423
		Insurance charges	2.952	1.720
		Interest on loan paid	10.838	18.001
		Interest to bank	29.095	22.568
		Salary and bonus	2.456	1.988
		Service tax and cess	8.819	1.308
		Travelling expenses	5.738	3.548
		Interest on partners’ capital	36.262	27.302
		Other expenses	82.773	35.319
		TOTAL	7,876.952	6,150.743
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		40.896	37.525
Less	DEPRECIATION/ AMORTISATION		0.674	3.102
	NET PROFIT/(LOSS)		40.222	34.423

Expected Sales (2014-15) : Rs.10000.000 millions

The above information has been parted by Mr. Indumanis (Accounts Head)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Net Profit Margin (PAT/Sales)	(%)	0.54	0.59
Operating Profit Margin (PBITD/Sales)	(%)	0.55	0.64
Return on Total Assets (PBT/Total Assets}	(%)	2.75	2.75
Return on Investment (ROI) (PBT/Networth)		0.09	0.12
Debt Equity Ratio (Total Debt /Networth)		1.90	2.42
Current Ratio (Current Asset/Current Liability)		5.09	4.11

Note : Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions
Share Capital	289.454	433.795
Reserves & Surplus	0.000	0.000
Net worth	289.454	433.795
long-term borrowings	522.971	655.778
Short term borrowings	176.137	168.009
Total borrowings	699.108	823.787
Debt/Equity ratio	2.415	1.899

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions
Sales	5,870.162	7,453.881
		26.979

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions
Sales	5,870.162	7,453.881
Profit	34.423	40.222
	0.59%	0.54%

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	No
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last two years	Yes
12]	Profitability for last two years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	Yes
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)	Yes
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	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
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	Yes

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 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.61.92
UK Pound	1	Rs.97.39
Euro	1	Rs.77.21

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	RAS
Report Prepared by :	JYTK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		49

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.