MIRA INFORM REPORT

Report Date :

23.12.2014

IDENTIFICATION DETAILS

Name :	POSCO MAHARASHTRA STEEL PRIVATE LIMITED

Registered Office :	1st Floor Head Office, Plot No. C-1 Vile Bhagad Industrial Area, Mangaon –402308, Maharashtra

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	12.03.2009

Com. Reg. No.:	11-190873

Capital Investment / Paid-up Capital :	Rs.12221.010 Millions

CIN No.: [Company Identification No.]	U27100MH2009PTC190873

TIN No.:	Not Available

IEC No.:	Not Available

TAN No.: [Tax Deduction & Collection Account No.]	PNEP13810G

PAN No.: [Permanent Account No.]	AAECP9885H

Legal Form :	Private Limited Liability Company

Line of Business :	The Company is engaged in manufacturing of galvanized steel and caters.

No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

B (36)

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 a part of “POSCO” Group. It is having a moderate track. Management of the company has failed to file its financial for the year 2014 with the government department. As per available financial of 2013, the company has incurred a loss from its operations. However, performance capability is high. The subject gets good financial and managerial support from its group companies. Trade relations are reported to be fair. Business is active. Payment terms are 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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

NOT AVAILABLE

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 (Tel No.: 91-21-40661000)

LOCATIONS

Registered Office/ Head Office / Factory :	1st Floor Head Office, Plot No. C-1 Vile Bhagad Industrial Area, Mangaon –402308, Maharashtra, India
Tel. No.:	91-22-40661000
Mobile No.:	91-8888810292 (Mr. Sunil)
Fax No.:	91-22-40661198
E-Mail :	james.lee@posco.net rajsingh@posco.net

Corporate Office :	9th Floor, Kumar Business Center, 6th Floor, Bund Garden Road, Pune – 411001, Maharashtra, India

DIRECTORS

As on 28.11.2013

Name :

Si Woo Lee

Designation :

Managing director

Address :

516 Jayang-Dong, Gwangjin-Gu, Sepul Metropolitan, Korea - 305201

Date of Birth/Age :

14.10.1960

Date of Appointment :

09.09.2010

PAN No.:

AFJPL1330C

DIN No.:

02835929

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	U27100MH2009PTC190873	POSCO Maharashtra Steel Private Limited	Managing director	09/09/2010	18/11/2009	-	Active	NO
2	U27310MH2011FTC216653	POSCO Electrical Steel India Private Limited	Director	25/04/2011	25/04/2011	01/10/2012	Active	NO
3	U27104OR2005PTC008316	POSCO-INDIA PRIVATE LIMITED	Director	30/09/2011	09/08/2011	-	Active	NO

Name :

Jong Kwan Lee

Designation :

Whole-time director

Address :

Hyojagreen Apartment, 106 1606 472 17 3, Jigok Dong Pohang Si Nam Gu, Korea – 790752

Date of Birth/Age :

14.02.1964

Date of Appointment :

09.09.2010

PAN No.:

AFHPL2128N

DIN No.:

02805222

Other Directorship:

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

U27100MH2009PTC190873

POSCO Maharashtra Steel Private Limited

Whole-time director

09/09/2010

18/11/2009

Active

U27310MH2011FTC216653

POSCO Electrical Steel India Private Limited

Director

25/04/2011

13/01/2014

Active

KEY EXECUTIVES

Name :	Mr. Vishwas Gajanan Chandhaikar
Designation :	Secretary
Address :	Plot No. C-1, Vile Bhagad, Industrial Area, Mangaon – 402308, Maharashtra, India
Date of Birth/Age :	09.10.1985
Date of Appointment :	30.10.2012
PAN No.:	AOQPC8660L

MAJOR SHAREHOLDERS

As on 28.11.2013

Names of Shareholders		No. of Shares
POSCO, Korea		137428083
Si Woo Lee		1
Total		137428084

Equity Share Break up (Percentage of Total Equity)

As on 28.11.2013

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The Company is engaged in manufacturing of galvanized steel and caters.

Products :

Products Description	ITC Code
GA / GI Coil (Galva-anneled / Galvanised Coil)	72104900

Brand Names :

Agencies Held :

Exports :

Not Available

Imports :

Not Available

Terms :

Selling :

Not Available

Purchasing :

Not Available

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Available

Customers :

Not Available

No. of Employees :

Not Available

Bankers :

Not Available

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
LONG TERM BORROWINGS
Foreign currency loan from financial institution	24,961.370	7,315.380
Total	24,961.370	7,315.380

Foreign currency loan consist of the following

ECB Facility 1

The foreign currency loan carries interest @ LIBOR + 1.50% The loans is repayable from March 2014 in 10 equal semiannual instalments. The loan has been guaranteed by the holding company.

ECB Facility

The foreign currency loan carries interest @ LIBOR + 1.80% The loans is repayable from October 2014 in 10 equal semiannual instalments. The loan has been guaranteed by the holding company.


Banking Relations :	--

Auditors :
Name :	S.R. Batliboi and Company Chartered Accountants
Address :	C 401, Fourth Floor, Panchshil Tech Park, Yerwada, Pune – 411006, Maharashtra, India
PAN No.:	ABSFS4151K

Memberships :	--

Collaborators :	--

Holding Company :	POSCO, Korea

Fellow Subsidiary Company :	POSCO South Asia Company Limited POSCO India Delhi Steel Processing Centre Private Limited CIN No.: U27310HR2007PTC041978 Daewoo International Corporation Limited POSCO India Pune Steel Processing Centre Private Limited POSCO Asia Company Limited POSCO- India Pune Processing Center Private Limited CIN No.: U27107PN2005PTC021580 POSCO India Chennai Steel Processing Centre Private Limited CIN No.: U27100TN2009PTC071238 POSCO P and S Company Limited POSCO E and C Company Limited, Korea POSCO Engineering and Construction India Private Limited CIN No.: U45200HR2007PTC036688 POSCO Electrical Steel India Private Limited CIN No.: U27310MH2011FTC216653 POSCO Engineering Company Limited POSCO ICT Company Limited POSCO M-Tech Company Limited, Korea POSCO Plant Engineering Company Limited, Korea POSCO Japan Company Limited, Korea

CAPITAL STRUCTURE

After 28.11.2013

Authorised Capital : Rs.25000.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.25000.000 Millions

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount

200000000	Equity Shares	Rs.100/- each	Rs.20000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

122210097	Equity Shares	Rs.100/- each	Rs.12221.010 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	12,221.010	10,200.459	3,188.679
(b) Reserves & Surplus	(2,684.232)	(309.708)	(16.402)
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	333.830	541.800
Total Shareholders’ Funds (1) + (2)	9,536.778	10,224.581	3,714.077

(3) Non-Current Liabilities
(a) long-term borrowings	24,961.370	7,315.380	3,080.850
(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	10.416	5.226	1.754
Total Non-current Liabilities (3)	24,971.786	7,320.606	3,082.604

(4) Current Liabilities
(a) Short term borrowings	3,882.547	74.364	0.000
(b) Trade payables	2,531.171	1,977.493	1,184.487
(c) Other current liabilities	6,479.136	725.118	26.021
(d) Short-term provisions	3.210	0.133	0.063
Total Current Liabilities (4)	12,896.064	2,777.108	1,210.571

TOTAL	47,404.628	20,322.295	8,007.252

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	11,366.284	264.884	119.145
(ii) Intangible Assets	110.537	0.336	0.034
(iii) Capital work-in-progress	20,642.356	12,174.590	3,781.332
(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	1,651.254	4,168.734	1,550.404
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	33,770.431	16,608.544	5,450.915

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	3,685.446	1,884.046	0.000
(c) Trade receivables	2,310.906	0.000	0.000
(d) Cash and cash equivalents	5,630.686	1,238.898	2,410.477
(e) Short-term loans and advances	1,759.015	587.842	142.766
(f) Other current assets	248.144	2.965	3.094
Total Current Assets	13,634.197	3,713.751	2,556.337

TOTAL	47,404.628	20,322.295	8,007.252

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income			66.390
		Other Income			0.000
		TOTAL	7679.617	266.957	66.390

	EXPENSES		10054.141	471.370	38.155

	PROFIT/(LOSS) BEFORE TAX		(2374.525)	(204.413)	(28.235)

Less	TAX		0.000	88.893	(43.497)

	PROFIT/(LOSS) AFTER TAX		(2374.525)	(293.306)	15.262

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(309.708)	(16.402)	(31.664)

	BALANCE CARRIED TO THE B/S		(2684.233)	(309.708)	(16.402)

	Earnings Per Share (Rs.)		(19.43)	(2.87)	0.05

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PAT/Sales)	(%)	NA	NA	22.99

Operating Profit Margin (PBIDT/Sales)	(%)	NA	NA	42.53

Return on Total Assets (PBT/Total Assets}	(%)	(8.87)	(2.51)	(0.67)

Return on Investment (ROI) (PBT/Networth)		(0.25)	(0.02)	(0.01)

Debt Equity Ratio (Total Debt /Networth)		3.02	0.72	0.83

Current Ratio (Current Asset/Current Liability)		1.06	1.34	2.11

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	3188.679	10200.459	12221.010
Reserves & Surplus	(16.402)	(309.708)	(2684.232)
Share Application money pending allotment	541.800	333.830	0.000
Net worth	3714.077	10224.581	9536.778

Long Term borrowings	3080.850	7315.380	24961.370
Short Term borrowings	0.000	74.364	3882.547
Total borrowings	3080.850	7389.744	28843.917
Debt/Equity ratio	0.830	0.723	3.024

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	66.390	266.957	7,679.617
		302.104	2,776.724

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	66.390	266.957	7,679.617
Profit	15.262	(293.306)	(2,374.525)
	22.99%	(109.87%)	(30.92%)

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	No
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	No
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	No

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
SHORT TERM BORROWINGS
Buyer's credit facility from banks	3,882.547	74.364
Total	3,882.547	74.364

Note: Buyer's credit facility from bank carries floating interest rate which ranges from LIBOR+0.90% to LIBOR+1.10%. The loan is repayable within the period of 180 days from the date of availment.

CORPORATE INFORMATION

The Company is a private limited company domiciled in India and incorporated on March 12, 2009 under the provisions of the Companies Act, 1956. The Company is wholly owned subsidiary of POSCO, Korea. The Company is engaged in manufacturing of galvanized steel and caters to the customers in automobile and general manufacturing sector.

NO CHARGES EXIST FOR THE COMPANY

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.63.18
UK Pound	1	Rs.98.85
Euro	1	Rs.77.42

INFORMATION DETAILS

Information Gathered by :	NYA

Analysis Done by :	RAS

Report Prepared by :	VNT

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
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		36

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.

MIRA INFORM REPORT

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