MIRA INFORM REPORT

Report Date :

20.02.2014

IDENTIFICATION DETAILS

Name :	SHRADDHA ISPAT PRIVATE LIMITED
Registered Office :	Kohinoor Estate Building, Nos. C 1, Office No.15, Mulla Road, Kirkee, Pune – 411003, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	05.06.1995
Com. Reg. No.:	11-089176
Capital Investment / Paid-up Capital :	Rs.4.999 Millions
CIN No.: [Company Identification No.]	U28910MH1995PTC089176
PAN No.: [Permanent Account No.]	AAHCS4567G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of M.S. Billets.
No. of Employees :	Information declined by the management

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 2778000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. The company has performed well during 2013. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for normal 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.

INDIAN ECONOMIC OVERVIEW

The worst is over for India’s economy with gross domestic product likely to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s Analytics. Concerns over the rupee and current account deficit are under control, said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up from the estimated 4.8 % for 2013/14.  Total economic growth, infrastructure bottlenecks and lack of transparency and consistency in foreign direct investment policies seem to have taken a toll on India’s attractiveness as an investment destination, says an Ernst & Young survey.  Projects with FDI component fell 16.4 % across the globe in 2012 from the previous year.  The drop in India was steeper at 21 %. State run carrier Air India is doling out free tickets to its 24000 employees, even as it expects to incur a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn. 550000 number of jobs generated across India in 2013, a fall of 0.4 % as compared to with a year earlier. The National  Capital Region has a one-fourth share in total jobs created, according to a study by industry lobby group Assochem, Banks, real estate, automobile and telecommunications sectors are showing a rise of job creation. $ 805 mn investments by venture capital firms in India during 2013, registering a drop of about 18 % over the previous year. The Information Technology and IT-Enabled  Services Industry retained its status as the favourable venture capital investors in 2013. Pakistan has temporarily banned gold imports for the second time in six months, as it tries to stem smuggling into India. India’s import duty on gold is 10 % and curbs on purchases have dried up legal imports into what used to be the world’s biggest bullion buyers. The World Gold Council puts the amount smuggled into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed bank deposits estimated to be about Rs 35000 mn be used for education and awareness among depositors.  According to the plan, deposits that have not been claimed for at least 10 years will be transferred to the scheme.

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 31-03-2012.

INFORMATION DENIED BY

Name :	Mr. Lalit Agrawal
Designation :	General Manager
Contact No.:	91-832-6481932
Date :	18.02.2014

LOCATIONS

Registered Office :	Kohinoor Estate Building, Nos. C 1, Office No.15, Mulla Road, Kirkee, Pune – 411003, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	csadeshpande@gmail.com
Factory :	Plot No. M-1, Cuncolim Industrial Estate, Concolim – 403703, Goa, India
Tel No.:	91-832-2865648

DIRECTORS

As on: 30.09.2013

Name :	Mr. Deepchand Sonraj Oswal
Designation :	Director
Address :	Plot No. 1, Giraja Nayak Society, Somalka, Bibewadi, Pune – 411037, Maharashtra, India
Date of Birth/ Age :	25.12.1958
Date of Appointment :	02.06.2003
DIN No.:	00607673
Name :	Mr. Ashwinikumar Ramkumar Poddar
Designation :	Director
Address :	130, Sindh Society, Aundh, Pune – 411 007, Maharashtra, India
Date of Birth/ Age :	12.09.1960
Date of Appointment :	02.06.2003
PAN No.:	AARPP7606E
DIN No.:	01447110
Name :	Mr. Yogesh Vedprakash Goyal
Designation :	Director
Address :	235/H Ward No.II, Villey Plot No. 37, Pulwado Cana, Benaulim, Margadsalcete – 403601, Goa, India
Date of Birth/ Age :	24.09.1964
Date of Appointment :	01.11.2002
DIN No.:	01604557
PAN No.:	AAWPG1301L
Name :	Mr. Premprakash Lacchiram Goyal
Designation :	Director
Address :	S. No.13, H. No.1, 2, 3 and 4, Kohinoor Residency 3, Phase Planet, Near Spicer College, Pune – 411 007, Maharashtra, India
Date of Birth/ Age :	10.11.1955
Date of Appointment :	20.06.1995
PAN No.:	AFOPG9961M
DIN No.:	00389633
Name :	Mr. Vinodkumar Vedprakash Goyal
Designation :	Director
Address :	S. No.13, H. No.1, 2, 3 and 4, Kohinoor Residency 3, Phase Planet, Near Spicer College, Pune – 411 007, Maharashtra, India
Date of Birth/Age :	25.12.1957
Date of Appointment :	01.04.2008
PAN No.:	AAUPG3001D
DIN No.:	01604780
Name :	Mr. Aditya Arunkumar Poddar
Designation :	Director
Address :	130, Sindh Society, Aundh, Pune – 411 007, Maharashtra, India
Date of Birth/Age :	17.12.1981
Date of Appointment :	01.04.2008
DIN No.:	01725241
Name :	Mr. Mayank Vinod Goyal
Designation :	Director
Address :	S. No.13, H. No.1, 2, 3 and 4, Kohinoor Residency 3, Phase Planet, Near Spicer College, Pune – 411 007, Maharashtra, India
Date of Appointment :	01.04.2008
DIN No.:	02061353
PAN NO.:	AGMPG1674Q
Name :	Mr. Rahul Deepchand Oswal
Designation :	Director
Address :	586/A, Flat No.1, DCYFL-7, Girija Nayak Society, Gultekadi, Pune – 411 037, Maharashtra, India
Date of Birth/Age :	30.12.1984
Date of Appointment :	01.04.2008
DIN No.:	02202821
Name :	Mr. Prakash Sohanraj Oswal
Designation :	Director
Address :	586/A, Flat No.1, DCYFL-7, Girija Nayak Society, Gultekadi, Pune – 411 037, Maharashtra, India
Date of Birth/Age :	16.04.1969
Date of Appointment :	01.04.2008
DIN No.:	02202856

KEY EXECUTIVES

Name :	Mr. Lalit Agrawal
Designation :	General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2013

Names of Shareholders	No. of Shares
Vinodkumar Vedprakash Goyal	3620
Premprakash Lacchiram Goyal	4000
Sushama Vinodkumar Goyal	498
Aditya Arunkumar Poddar	2100
Kashyam Ashwinikumar Poddar	1035
Mayank Vinod Goyal	2700
Arunkumar Ramkumar Poddar	2000
Ashok Sonraj Oswal	2000
Ashwinikumar Ramkumar Poddar	3500
Deepchand Sonraj Oswal	2000
Prakash Sonraj Oswal	2000
Rajesh Sonraj Oswal	2000
Sanjay Sonraj Oswal	2000
Madhu Arunkumar Poddar	2000
Punita Ashwinikumar Poddar	2000
Savitridevi Ramkumar Poddar	1000
Uttam Sonraj Oswal	1635
Vijay Sonraj Oswal	1500
Yogesh Vedprakash Goyal	4545
Radharani Premprakash Goyal	2817
Sangeeta Vijay Oswal	500
Sunil Omprakash Garg	4545
Total	49995

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2013

Category	Percentage
Directors or relatives of directors	90.91
Other top fifty shareholders	9.09
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of M.S. Billets.

Products :

Item Code No. (ITC Code)	72071920
Product Description	Sponge Iron

PRODUCTION STATUS [AS ON 31.03.2012]

Particulars	Unit	Installed Capacity
Sponge Iron	M.T.	72000.000
Mild Steel Billets/Ingots	M.T.	45000.000

Particulars	Unit	Actual Production
Sponge Iron Division
Sponge Iron Waste Products	M.T.	50078.000
Segregated Coat Dust	M.T.	18850.745
Fly Ash Bricks	Nos.	5895404.000
Steel Melting Division
M.S. Ingots/Billets	M.T.	27865.7000
Runners/Risers	M.T.	37.090

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

· HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

· The Cosmos Co-operative Bank Limited, Khadki Branch, Pune – 411 030, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
SHORT-TERM BORROWINGS
Rupee term loans from banks	52.014	3.399
Total	52.014	3.399

Banking Relations :	--
Auditors :
Name :	Nagaraj Kale Chartered Accountant
Address :	G-4, Rosa Maria Complex, Opposite Costa Factory, Aquem, Margao – 403 601, Goa, India
Tel. No.:	91-832-2715880/ 2713144
Mobile No.:	91-9923410236
Fax No.:	91-832-2713144
E-Mail :	kalenagaraj@rediffmail.com
PAN No:	AHNPK0563C
Other Related Parties :	· Shirdi Steel Re-Rollers Private Limited U27106GA1994PTC001582 · Indrayani Ferro Cast Private Limited U27320MH1995PTC088354 · Pushpak Steel Industries Private Limited · Sant Gyaneshar Steel Limited U28910MH1995PTC089177 · Bhuleshwar Steels and Alloys Private Limited

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
49995	Equity Shares	Rs.100/- each	Rs.4.999 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	4.999	4.999	4.999
(b) Reserves & Surplus	689.610	649.470	614.347
(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)	694.609	654.469	619.346
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	(16.985)	(18.082)	(19.850)
(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)	(16.985)	(18.082)	(19.850)
(4) Current Liabilities
(a) Short term borrowings	52.014	3.399	3.196
(b) Trade payables	25.841	415.663	63.023
(c) Other current liabilities	0.000	0.000	0.000
(d) Short-term provisions	23.351	23.923	17.973
Total Current Liabilities (4)	101.206	442.985	84.192
TOTAL	778.830	1079.372	683.688
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	299.965	312.988	337.939
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	28.159	17.484	17.423
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	72.975	50.497	28.141
Total Non-Current Assets	401.099	380.969	383.503
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	190.353	187.228	150.138
(c) Trade receivables	77.710	93.404	89.225
(d) Cash and cash equivalents	33.262	272.974	29.981
(e) Short-term loans and advances	40.020	126.961	23.966
(f) Other current assets	36.386	17.836	6.875
Total Current Assets	377.731	698.403	300.185
TOTAL	778.830	1079.372	683.688

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
SALES
	Income	1989.487	1980.000	1679.900
	Other Income	NA	NA	NA
	TOTAL	NA	NA	NA
EXPENSES
	TOTAL	NA	NA	NA
PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		75.322	69.829	32.299
DEPRECIATION/ AMORTISATION		20.553	20.339	20.744
PROFIT / (LOSS) BEFORE TAX		54.769	49.490	11.553
INCOME TAX PAYMENTS / PROVISION (INCLUSIVE OF DEFERRED AS 22)		10.949	10.514	5.029
PROFIT / (LOSS) AFTER TAX		41.884	36.865	6.150
Earnings / (Loss) Per Share (Rs.)		837.75	737.37	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Net Profit Margin (PBT/Sales)	(%)	2.75	2.50	0.69
Return on Total Assets (PBT/Total Assets}	(%)	7.30	4.66	1.73
Return on Investment (ROI) (PBT/Networth)		0.08	0.08	0.02
Debt Equity Ratio (Total Debt/Networth)		0.07	0.01	0.01
Current Ratio (Current Asset/Current Liability)		3.73	1.58	3.57

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	4.999	4.999	4.999
Reserves & Surplus	614.347	649.470	689.610
Net worth	619.346	654.469	694.609
long-term borrowings	0.000	0.000	0.000
Short term borrowings	3.196	3.399	52.014
Total borrowings	3.196	3.399	52.014
Debt/Equity ratio	0.005	0.005	0.075

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	1,679.900	1,980.000	1,989.487
		17.864	0.479

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	1,679.900	1,980.000	1,989.487
Profit	6.150	36.865	41.884
	0.37%	1.86%	2.11%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS – NOT AVAILABLE

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

OPERATING RESULTS:

The year under cover was a mix up of good turnover but ended in slow down in the market. Closure of iron ore mines hit the industry very badly. Further the cost of imported coal has also gone up substantially during the year under cover. Apart from the problems cited above, there was also a problem in importing the coal in Marmugoa harbour on account of environmental problems which caused the additional cost of transportation of the coal. The year under cover was a mix up of additional problems and slows down in the market. If the turnover is compared with that of the preceding year the level was maintained whereas the sponge iron division has not yielded the expected profit on account of the reasons cited above.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10214191	25/01/2011 *	78,500,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA	B07471287
2	10192173	23/11/2012 *	421,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA	B66153552

* Date of charge modification

FIXED ASSETS:

· Leasehold Land

· Land Development

· Bore Well

· Office Building

· Factory Building

· Plant and Machinery

· Computers

· Furniture and Fixtures

· Vehicles

· Electrical Installation

· Auxiliary Equipments

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.62.12
UK Pound	1	Rs.103.93
Euro	1	Rs.85.17

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--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	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		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.