MIRA INFORM REPORT

Report Date :

27.12.2014

IDENTIFICATION DETAILS

Name :	JCO GAS PIPE LIMITED
Registered Office :	Z-20, 1st Floor, Okhla Industrial Area, Phase II, New Delhi - 110020
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	16.05.2006
Com. Reg. No.:	55-148826
Capital Investment / Paid-up Capital :	Rs. 221.800 Millions
CIN No.: [Company Identification No.]	U74991DL2006PLC148826
TAN No.: [Tax Deduction & Collection Account No.]	DELJ06314A
PAN No.: [Permanent Account No.]	AABCJ6977D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Seamless and ERW Pipes.
No. of Employees :	Not Divulged

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

Maximum Credit Limit :	USD 338700
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a 50-50 Joint Venture between D.P. Jindal Group and the Chokhani Group. It is an established company having moderate track record. There seems accumulated loss recorded by the company during 2014. However, trade relations are fair. Business is active. Payment terms are reported as slow but correct. The subject 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	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating = D [Suspended]
Rating Explanation	Expected to be in default.
Date	July 18, 2014

Rating Agency Name	CRISIL
Rating	Short term rating = D [Suspended]
Rating Explanation	Expected to be in default.
Date	July 18, 2014

Reason for Suspension:

The suspension of ratings is on account of non-cooperation by JCO with Crisil’s effort to undertake a review of the ratings outstanding.

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 DECLINED BY

Name :	Mr. Soni
Designation :	Vice President
Contact No.:	91-11-47105100
Date :	26.12.2014

LOCATIONS

Registered Office :	Z-20, 1st Floor, Okhla Industrial Area, Phase II, New Delhi – 110020, India
Tel. No.:	91-11-47105100
Fax No.:	Not Available
E-Mail :	secretarial@jcopipe.com accounts.ho@jcopipe.com yashpal@jcopipe.com
Website :	http://www.jcopipe.com
Factory :	Located at: · Chhindwara
Regional Offices :	Located at: · Delhi · Nagpur · Mumbai · Chennai · Kolkata · Hyderabad · Chhindwara

DIRECTORS

AS ON 30.09.2014

Name :

Keshri Nandan Bagla

Designation :

Director

Address :

31/114 Bhikam Singh Colony, Street No.7, Near Vishwas Nagar, Shahdra, Delhi - 110032, India

Date of Birth/Age :

04.07.1958

Qualification :

Graduate

Date of Appointment :

19.09.2008

DIN No.:

00173718

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	U52609DL1987PLC028871	SUGAN TMT INDUSTRIES LIMITED	Director	19/06/1992	19/06/1992	-	Active	NO
2	L64120DL1991PLC045172	CHOKHANI GLOBAL EXPRESS LIMITED	Director	19/10/2001	19/10/2001	10/11/2014	Active	NO
3	U65993TN1983PLC010314	KESRI INVESTMENTS LIMITED	Director	30/10/2002	30/10/2002	07/12/2013	Active	NO
4	U74991DL2006PLC148826	JCO GAS PIPE LIMITED	Director	19/09/2008	21/03/2008	-	Active	NO

Name :

Mr. Satendra Singh

Designation :

Director

Address :

A - 15D, DDA Flats, Sukhdev Vihar, New Delhi - 110025, India

Date of Birth/Age :

31.10.1958

Qualification :

Graduate

Date of Appointment :

19.06.2012

DIN No.:

01289658

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	L51109DL1980PLC010428	CHOKHANI INTERNATIONAL LIMITED	Director	31/07/2004	31/07/2004	-	Active	NO
2	U74899DL1973PLC007022	UDYOGIKA LIMITED	Additional director	07/04/2008	07/04/2008	04/08/2008	Active	NO
3	L64120DL1991PLC045172	CHOKHANI GLOBAL EXPRESS LIMITED	Director	29/09/2009	12/12/2008	-	Active	NO
4	U74991DL2006PLC148826	JCO GAS PIPE LIMITED	Director	19/06/2012	05/01/2012	-	Active	NO
5	U65993TN1983PLC010314	KESRI INVESTMENTS LIMITED	Director	30/08/2013	28/09/2012	07/12/2013	Active	NO

Name :

Debabrota Pal Mazumder

Designation :

Director

Address :

RZ-D1/312, D-1 Block, D1 303 to 314, Gali No. 5, Mahavir Enclave I, Delhi - 110045, India

Date of Birth/Age :

09.09.1966

Qualification :

Graduate

Date of Appointment :

30.09.2014

DIN No.:

06817699

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	Company/ LLP Status	Defaulting status
1	U11100HR2010PLC039993	JINDAL EXPLODRILL LIMITED	Director	30/09/2014	18/02/2014	Active	NO
2	U74991DL2006PLC148826	JCO GAS PIPE LIMITED	Director	30/09/2014	18/02/2014	Active	NO

KEY EXECUTIVES

Name :	Mr. Soni
Designation :	Vice President
Name :	Mr. Chetan Goel
Designation :	Secretary
Address :	153, D-6, Sector - 6, Rohini, Delhi - 110085, India
Date of Birth/Age :	08.06.1979
Date of Appointment :	25.09.2014
PAN No.:	AIKPG3023D

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Equity Shareholders	No. of Shares
Raghav Jindal	9900
Jindal Global Finance and Investment Limited, India	1350000
Manmohan Mittal	100
Madhusudan Chokhani	5000
Sugan TMT Industries Limited, India	2525000
Yahweh Steel Private Limited, India	1320000
Crish Park Vincom Limited, India	990000
Chokhani International Limited, India	300000
Kavita Chokhani	350000
GVN Fuels Limited, India	1750000
Jhanjhari Holdings Private Limited, India	400000
Total	9000000

Names of Preference Shareholder	No. of Shares
Jindal Pipes Limited, India	13180000
Total	13180000

AS ON 30.09.2014

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	95.94
Others	4.06
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Seamless and ERW Pipes.
Brand Names :	--
Agencies Held :	--
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

· NTPC

· Vizag

· Thermax

· Adani

· BGR Energy

· Lanco

· JSW

· Essar

· Jaypee Group

· Jindal Steel and Power

· Afcons

· Vedanta

· Tata

No. of Employees :

Not Divulged

Bankers :

Bank Name:	Not Divulged
Branch:	Not Divulged
Person Name (with Designation):	Not Divulged
Contact Number:	Not Divulged
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks: Not Divulged

· Bank of India

New Delhi Large Corporate Branch, 37 Shaheed Bhagat Singh Marg, New Delhi - 110001, Delhi, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG-TERM BORROWINGS
Term loans from banks	0.000	152.400
Term loans from others	110.000	0.000
SHORT TERM BORROWINGS
Loans repayable on demand	0.000	161.472
Total	110.000	313.872

Banking Relations :	--
Financial Institution :	· Edelweiss Asset Reconstruction Company Limited Edelweiss House, Off. C.S.T Road, Kalina,, Mumbai - 400098, Maharashtra, India
Auditors :
Name :	B.K. Shroff and Company Chartered Accountants
Address :	3/7-B, Asaf Ali Road, Flat No.4, 1st Floor, New Delhi – 110002, India
Income-tax PAN of auditor or auditor's firm :	AADFB4923G
Associate :	Sugan TMT Industries Limited [U52609DL1987PLC028871]

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
10,000,000	Equity Shares	Rs. 10/- each	Rs. 100.000 Millions
15,000,000	Preference Shares	Rs. 10/- each	Rs. 150.000 Millions
	Total		Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9,000,000	Equity Shares	Rs. 10/- each	Rs. 90.000 Millions
13,180,000	Preference Shares	Rs. 10/- each	Rs. 131.800 Millions
	Total		Rs. 221.800 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	221.800	221.800	221.800
(b) Reserves & Surplus	(103.258)	(248.612)	(227.020)
(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)	118.542	(26.812)	(5.220)
(3) Non-Current Liabilities
(a) Long-term borrowings	110.000	152.400	194.000
(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	1.553	1.324	1.101
Total Non-current Liabilities (3)	111.553	153.724	195.101
(4) Current Liabilities
(a) Short term borrowings	0.000	161.472	163.000
(b) Trade payables	20.256	47.399	82.789
(c) Other current liabilities	321.816	300.566	295.138
(d) Short-term provisions	8.356	6.464	5.545
Total Current Liabilities (4)	350.428	515.901	546.472
TOTAL	580.523	642.813	736.353
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	240.631	361.826	379.378
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.826
(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)	39.653	0.000	0.000
(d) Long-term Loan and Advances	3.397	3.346	3.346
(e) Other Non-current assets	0.000	0.351	0.703
Total Non-Current Assets	283.681	365.523	384.253
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	73.038	135.487	209.096
(c) Trade receivables	48.863	67.857	58.500
(d) Cash and cash equivalents	37.811	4.809	15.546
(e) Short-term loans and advances	137.130	69.137	68.958
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	296.842	277.290	352.100
TOTAL	580.523	642.813	736.353

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from Operations	314.777	530.448	915.034
		Other Income	9.515	20.718	24.643
		TOTAL (A)	324.292	551.166	939.677
Less	EXPENSES
		Cost of Materials Consumed	213.723	432.092	789.118
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	5.390	37.651	2.786
		Employees benefits expense	26.675	26.000	25.353
		Other expenses	61.379	57.744	95.392
		Extraordinary Items	(122.504)	0.000	0.000
		TOTAL (B)	184.663	553.487	912.649
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		139.629	(2.321)	27.028
Less	FINANCIAL EXPENSES (D)		2.189	0.585	91.348
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		137.440	(2.906)	(64.320)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		30.827	18.685	18.592
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		106.613	(21.591)	(82.912)
Less	TAX (H)		37.992	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		68.621	(21.591)	(82.912)
	Earnings/ (Loss) Per Share (Rs.)
	Basic		7.62	0.00	0.00
	Diluted		7.62	0.00	0.00
	Basic [Before Extraordinary Items]		(1.77)	(2.40)	(9.21)
	Diluted [Before Extraordinary Items]		(1.77)	(2.40)	(9.21)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	21.80	(4.07)	(9.06)
Operating Profit Margin (PBDIT/Sales)	(%)	44.36	(0.44)	2.95
Return on Total Assets (PBT/Total Assets}	(%)	19.71	(3.36)	(11.27)
Return on Investment (ROI) (PBT/Networth)		0.90	0.81	15.88
Debt Equity Ratio (Total Debt/Networth)		0.93	(11.71)	(68.39)
Current Ratio (Current Asset/Current Liability)		0.85	0.54	0.64

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particulars	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	221.800	221.800	221.800
Reserves & Surplus	(227.020)	(248.612)	(103.258)
Net worth	(5.220)	(26.812)	118.542
Long-term borrowings	194.000	152.400	110.000
Short term borrowings	163.000	161.472	0.000
Total borrowings	357.000	313.872	110.000
Debt/Equity ratio	(68.391)	(11.706)	0.928

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	915.034	530.448	314.777
		(42.030)	(40.658)

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	915.034	530.448	314.777
Profit/ (Loss)	(82.912)	(21.591)	68.621
	(9.06%)	(4.07%)	21.80%

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	Yes
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 CHARGES: NO CHARGES EXIST FOR COMPANY

OPERATIONS

During the year, the total income of the Company was Rs. 324.292 Millions against Rs.551.166 Millions during the previous year. The Company incurred a net Profit of Rs. 68.621 Millions against the loss of Rs.21.591 Millions during the previous year.

FIXED ASSETS:

· Land

· Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Office equipment

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. 63.64
UK Pound	1	Rs. 98.98
Euro	1	Rs. 77.74

INFORMATION DETAILS

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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
DEFAULTERS
--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.