MIRA INFORM REPORT

Report Date :

08.01.2014

IDENTIFICATION DETAILS

Name :	DHRUVDESH METASTEEL PRIVATE LIMITED
Registered Office :	1st Floor, No.372, Nilaya, Opposite R T Nagar Police Station, R T Nagar Main Road, Bangalore – 560032, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	27.08.2003
Com. Reg. No.:	08-032456
Capital Investment / Paid-up Capital :	Rs.220.905 Millions
CIN No.: [Company Identification No.]	U02710KA2003PTC032456
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Sponge Iron and Power.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1200000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Management of the company has failed its latest financials with the government department but the same is not available with us. As per previous year financials (i.e. 2012), there seems drastic dip in the net profitability of the company. Borrowings of the company also seems to be increasing over years. However, trade relations are reported as fair. Business is active. Payment 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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

India was ranked 94^th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

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.

LOCATIONS

Registered Office :	1st Floor, No.372, Nilaya, Opposite R T Nagar Police Station, R T Nagar Main Road, Bangalore – 560032, Karnataka, India
Tel. No.:	91-80-41236397
Fax No.:	Not Available
E-Mail :	rslegaleagle@gmail.com
Factory:	Survey No 150-156, Hirebaganal Village, Koppal District, Karnataka, India

DIRECTORS

As on 30.09.2013

Name :

Mr. Mangilal Birdhichand Daga

Designation :

Director

Address :

10, Sagar Vihar Building, Abdul Gaffarkhan Road, Worli, Mumbai - 400018, Maharashtra, India

Date of Birth/Age :

09.09.1941

Date of Appointment :

30.09.2008

DIN No.:

00044967

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	L99999MH1948PLC006830	BAGALKOT UDYOG LIMITED	Director	22/02/1988	22/02/1988	07/04/2008	Active	NO
2	U02710KA2003PTC032456	DHRUVDESH METASTEEL PRIVATE LIMITED	Director	30/09/2008	12/04/2008	-	Active	NO
3	U74930WB1997PTC086143	DHRUVDESH INVESTMENTS PRIVATE LIMITED	Director	03/05/2008	03/05/2008	-	Active	NO

Name :

Mr. Prasad Raghunath Deshpande

Designation :

Director

Address :

372 Nilay R T Nagar Main Road, Bangalore – 560032, Karnataka, India

Date of Birth/Age :

27.10.1973

Date of Appointment :

27.08.2003

DIN No.:

00105150

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	U34100KA1996PTC019595	COMPSHELL ENGINEERING PRIVATE LIMITED	Director	26/06/1997	26/06/1997	-	Active	NO
2	U63090KA2000PTC027438	SHODHA MOTORS PRIVATE LIMITED	Director	10/07/2000	10/07/2000	-	Active	NO
3	U45200KA1998PTC024121	AT ONE PROJECTS PRIVATE LIMITED	Director	04/09/2001	04/09/2001	-	Converted to LLP	NO
4	U51102KA1999PTC025376	DHRUVDESH MOTORS PRIVATE LIMITED	Managing director	26/03/2002	26/03/2002	-	Active	NO
5	U07010KA1998PTC032087	OMTEK TECHNOLOGY PARK PRIVATE LIMITED	Director	19/05/2002	19/05/2002	-	Active	NO
6	U67190KA2003PTC031474	SHREENIDHI FINVEST CONSULTANCY PRIVATE LIMITED	Director	16/01/2003	16/01/2003	20/09/2008	Active	NO
7	U07010KA2003PTC032455	COSMOS REALTY AND LEISURE PRIVATE LIMITED	Director	27/08/2003	27/08/2003	-	Active	NO
8	U07010KA2003PTC032454	SUNRISE REALTY AND LEISURE PRIVATE LIMITED	Director	27/08/2003	27/08/2003	-	Active	NO
9	U02710KA2003PTC032456	DHRUVDESH METASTEEL PRIVATE LIMITED	Director	27/08/2003	27/08/2003	-	Active	NO
10	U51229MH1995PTC194327	STALE TRACOM PRIVATE LIMITED	Director	22/03/2004	22/03/2004	-	Active	NO
11	U45203KA2005PTC036366	DHRUVDESH HOLDINGS AND REALTY PRIVATE LIMITED	Director	24/05/2005	24/05/2005	-	Active	NO
12	U45203KA2005PTC036364	DHRUVDESH REALTY PRIVATE LIMITED	Director	24/05/2005	24/05/2005	-	Active	NO
13	U55101KA1994PTC015210	NALAPAD MINES AND MINERALS PRIVATE LIMITED	Director	20/07/2005	20/07/2005	-	Active	NO
14	U74140KA2007PTC044618	PD WEALTH ADVISORY SERVICES PRIVATE LIMITED	Director	10/12/2007	10/12/2007	-	Active	NO
15	U74930WB1997PTC086143	DHRUVDESH INVESTMENTS PRIVATE LIMITED	Director	03/05/2008	03/05/2008	-	Active	NO
16	U65993KA2007PTC042668	SERVE AND VOLLEY HOLDINGS PRIVATE LIMITED	Additional director	03/09/2009	03/09/2009	17/02/2011	Strike off	NO
17	U50401KA2010PTC052657	VIVA MAGNA WHEELERS PRIVATE LIMITED	Director	23/02/2010	23/02/2010	-	Active	NO

Name :

Mr. Thyamagondalu Ramakrishnaiah Ramachandrarao

Designation :

Director

Address :

B-42, Kudremukh Colony, Iind Block, Koramangala, Bangalore - 560034, Karnataka, India

Date of Birth/Age :

14.05.1942

Date of Appointment :

24.08.2007

DIN No.:

01721757

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	U02710KA2003PTC032456	DHRUVDESH METASTEEL PRIVATE LIMITED	Director	24/08/2007	30/07/2007	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders (Class 'A' Equity Shares)	No. of Shares
Prasad R Deshpande	3083950
Meghana P Deshpande	500000
Radha Deshpande	4750000
Prashanth R Deshpande	1000000
Karay Auto Mart Private Limited	40665050
Total	49999000

Names of Shareholders (Class 'B' Equity Shares)	No. of Shares
Rajinder K Singal	05
Prasad R Deshpande	1200000
Madhura Metals Private Limited	950000
Compshell Engineering Private Limited	4050000
Karay Auto Mart Private Limited	10890595
Total	17090600

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Bodies corporate	87.15
Directors or relatives of Directors	12.85
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Sponge Iron and Power.

Products :

Item Code No.	Product Description
73071110	Sponge Iron
85023910	Power

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, SME Branch, 179, S C Road, Kumara Park, Sheshadripuram, Bangalore - 560020, Karnataka, India

· Andhra Bank, N R Road Branch, Bangalore - 560002, Karnataka, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long-term Borrowings
Rupee term loans from banks	530.935	303.108
Short-term borrowings
Working capital loans from banks	194.122	148.402
Total	725.057	451.510

Banking Relations :	--
Auditors :
Name :	MRNM and Company Chartered Accountants
Address :	No 50, 2nd and 3^rd Floor, Saroja Chambers, Nehrunagar, 4^th Main,Bangalore, Karnataka, India
PAN N Income-tax PAN of auditor or auditor's firm :	AATFM3777F
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives:	Shodha Motors Private Limited, India CIN: U63090KA2000PTC027438

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares Class 'A' Equity Shares	Rs.1/- each	Rs. 50.000 Millions
20000000	Equity Shares Class 'B' Equity Shares	Rs.10/- each	Rs. 200.000 Millions
	Total		Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
49999000	Equity Shares Class 'A' Equity Shares	Rs.1/- each	Rs. 49.999 Millions
17090600	Equity Shares Class 'B' Equity Shares	Rs.10/- each	Rs. 170.906 Millions
	Total		Rs. 220.905 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	220.905	199.999
(b) Reserves & Surplus	81.611	79.814
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	8.906
Total Shareholders’ Funds (1) + (2)	302.516	288.719
(3) Non-Current Liabilities
(a) long-term borrowings	573.812	325.408
(b) Deferred tax liabilities (Net)	57.963	35.674
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	631.775	361.082
(4) Current Liabilities
(a) Short term borrowings	194.122	148.402
(b) Trade payables	99.884	66.766
(c) Other current liabilities	21.500	2.378
(d) Short-term provisions	4.255	2.802
Total Current Liabilities (4)	319.761	220.348
TOTAL	1254.052	870.149
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	922.724	286.955
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	4.807	339.266
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	1.159	1.159
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	27.162	23.774
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	955.852	651.154
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	105.606	68.274
(c) Trade receivables	108.590	43.366
(d) Cash and cash equivalents	4.889	3.383
(e) Short-term loans and advances	78.242	103.092
(f) Other current assets	0.873	0.880
Total Current Assets	298.200	218.995
TOTAL	1254.052	870.149

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		199.999
2] Share Application Money		8.906
3] Reserves & Surplus		47.659
4] (Accumulated Losses)		0.000
NETWORTH		256.564
LOAN FUNDS
1] Secured Loans		190.235
2] Unsecured Loans		22.300
TOTAL BORROWING		212.535
DEFERRED TAX LIABILITIES		33.071
TOTAL		502.170
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		274.838
Capital work-in-progress		18.579
INVESTMENT		1.159
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	83.077
	Sundry Debtors	52.253
	Cash & Bank Balances	11.347
	Other Current Assets	0.346
	Loans & Advances	81.859
Total Current Assets		228.882
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	12.238
	Other Current Liabilities	5.020
	Provisions	4.030
Total Current Liabilities		21.288
Net Current Assets		207.594
MISCELLANEOUS EXPENSES		0.000
TOTAL		502.170

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1240.112	811.365	615.759
		Other Income	1.035	1.446	3.127
		TOTAL	1241.147	812.811	618.886
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	1217.060	783.978	616.519
	PROFIT BEFORE TAX		24.087	28.833	2.367
Less	TAX		22.289	2.602	(0.683)
	PROFIT AFTER TAX		1.798	26.231	3.050
	Earnings Per Share (Rs.)		0.03	NA	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.14	3.23	0.49
Net Profit Margin (PBT/Sales)	(%)	1.94	3.55	0.38
Return on Total Assets (PBT/Total Assets}	(%)	1.93	5.44	0.47
Return on Investment (ROI) (PBT/Networth)		0.08	0.10	0.01
Debt Equity Ratio (Total Debt /Networth)		2.54	1.64	0.83
Current Ratio (Current Asset/Current Liability)		0.93	0.99	10.75

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	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	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 LOAN

PARTICULARS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long-term Borrowings
Loans and advances from related parties	42.877	19.300
Other loans and advances	0.000	3.000
Total	42.877	22.300

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10210899	03/02/2012 *	845,000,000.00	STATE BANK OF INDIA	SME BRANCH, 179, S C ROAD, KUMARA PARK, SHESHADR IPURAM, BANGALORE, KARNATAKA - 560020, INDIA	B35568526
2	10174451	13/08/2009	645,000.00	THE SIRSI URBAN SAHAKARI BANK LIMITED	NO. 38, CAR STREET, ULSOOR, BANGALORE, KARNATAKA - 560008, INDIA	A69057693
3	80060749	23/09/2005	30,000,000.00	ANDHRA BANK	NR RAOD BRANCH , BANGALORE, KARNATAKA - 560002, INDIA	-
4	90194569	22/10/2010 *	118,000,000.00	ANDHRA BANK	N R ROAD BRANCH, BANGALORE, KARNATAKA - 560002, INDIA	A99028029

* Date of charge modification

FIXED ASSETS

Tangible assets

· Land

· Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Office equipment

· Computer equipment’s

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.62.38
UK Pound	1	Rs.102.25
Euro	1	Rs.84.97

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
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	2
--CREDIT LINES	1~10	2
--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		27

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.