MIRA INFORM REPORT

Report Date :

14.01.2014

IDENTIFICATION DETAILS

Name :	JAGDAMBA LIQUIFIED STEELS LIMITED
Registered Office :	Adhunik Enterprises, C-111/112, New Multan Nagar, Near Peera Gari Chowk, Opp. Jawala Hri Bus Stop, New Delhi- 110056.
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	19.05.1993
Com. Reg. No.:	55-164717
Capital Investment / Paid-up Capital :	Rs. 32.206 Millions
CIN No.: [Company Identification No.]	U27310DL1993PLC164717
Legal Form :	A closely held Public Limited Liability Company
Line of Business :	Manufacturing of steel and alloy steel casting, cast iron (CI) casting, alloy CI casting and spheroidal graphite (SG) iron casting.
No. of Employees :	350 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 550000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears drastic dip in the profit of the company during 2013. However, trade relation are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities: BB+
Rating Explanation	Have moderate risk of default.
Date	April 16, 2013

Rating Agency Name	CARE
Rating	Short Term Bank Facilities: A4
Rating Explanation	Have nominal degree of safety and carry very high credit risk.
Date	April 16, 2013

RBI DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ 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 PARTED BY

Name :	Mr. Vipul Agarwal
Designation :	Client Relation Manager.
Contact No.:	91-9897593820
Date :	09.01.2014

LOCATIONS

Registered Office :	Adhunik Enterprises, C-111/112, New Multan Nagar, Near Peera Gari Chowk, Opp. Jawala Hri Bus Stop, New Delhi- 110056, India.
Tel No:	Not Available
Mobile No.:	91-9897593820 (Mr. Vipul Agarwal)
Fax No:	Not Available
E-Mail :	marketing@jlsindia.com yogesh@jlsindia.in
Website :	http://www.jlsindia.com
Location :	Owned
Factory 1 :	16-17 K.M. Milestone, Roorkee - Saharapur Road, Bhagwanpur – Raipur, Haridwar - 247661, Uttarakhand, India
Factory 2 :	Located at Roorkee
Factory 3 :	Located at Hathras

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Lokesh Lohia

Designation :

Directors

Address :

H.No 765, Hanuman Gali Hathras – 204101, Aligarh, Uttar Pradesh, India.

Date of Birth/Age :

15.05.1969

Date of Appointment :

19.05.1993

DIN No.:

01720747

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	U27310DL1993PLC164717	JAGDAMBA LIQUIFIED STEELS LIMITED	Director	19/05/1993	19/05/1993	-	Active	NO
2	U51909DL2006PLC151961	EDEN EXIM LIMITED	Director	12/08/2006	12/08/2006	-	Active	NO

Name :

Ms. Usha Lohia

Designation :

Directors

Address :

H.No 765, Hanuman Gali Hathras – 204101, Aligarh, Uttar Pradesh, India.

Date of Birth/Age :

26.05.1947

Date of Appointment :

28.11.1994

DIN No.:

01810504

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	U27310DL1993PLC164717	JAGDAMBA LIQUIFIED STEELS LIMITED	Director	28/11/1994	28/11/1994	-	Active	NO
2	U51909DL2006PLC151961	EDEN EXIM LIMITED	Director	12/08/2006	12/08/2006	-	Active	NO
3	U70102DL2007PTC161457	EDEN INFRATECH PRIVATE LIMITED	Director	30/03/2007	30/03/2007	10/04/2010	Active	NO

Name :

Mr. Bahadur Singh

Designation :

Directors

Address :

H.No 765, Hanuman Gali, Hathras – 204101, Aligarh, Uttar Pradesh, India.

Date of Appointment :

25.01.2013

DIN No.:

06640714

KEY EXECUTIVES

Name :	Mr. Vipul Agarwal
Designation :	Client Relation Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Names of Shareholders	No. of Shares
Hari Mohan Lohia	63400
Lokesh Lohia	147000
Neetu Lohia	167400
Parth Lohia	5000
Rekha Lohia	9500
Usha Lohia	42600
Yogesh Lohia	67100
Hari Mohan Lohia HUF	77500
Lokesh Lohia HUF	41500
Yogesh Lohia HUF	41500
Eden Exim Limited	2558100
Total	3220600

AS ON 30.09.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate (not mentioned above)	79.43
Directors or relatives of directors	20.57
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing parts for Indian Railway and Tata Motors Limited.
Products :	· Steel Alloy Steel Casting · CL and Alloy CL Casting · SG Iron Casting
Terms :
Selling :	L/C and Credit
Purchasing :	L/C and Credit

GENERAL INFORMATION

No. of Employees :

350 (Approximately)

Bankers :

· Allahabad Bank

Mall Road, Meerut – 250001, Uttar Pradesh, India

Facilities :

Secured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Short Terms Borrowings
Cash Credit Limits from Bank	114.103	112.999
Cash Credit Limits From NSIC	1.055	----
Long Terms Borrowings
Term Loans from Banks	82.690	28.207
Total	197.848	141.206

(a) Cash Credit from banks include cash credit limits of Rs.10.50 Crores sactioned by Allahabad Banks, secured against primary security of hypothecation of inventory, books debts, currents assets and other movable assets of the company and collateral security of equitable mortgage of plants & machinery and land & building Bhagwanpur, Roorkee, land & building at lokeshwari, roorkee and residential plot at shahnagar, Dehradun and personal guarantee of Directors of the company and corporate guarantee of M/s Eden exim Limited, Delhi. It is repayable on demand and carries interest 2.00% above the BPLR.

(b) Cash Credit from banks include cash credit limit of Rs. 1.00 Crores sanctioned by Oriented Bank of Commerce, Provided for hathras unit of the company. It is secured against primary security of hypothecation of inventory, book debts and entire assets of the company and personal guarantee of directors of the company and corporate guarantee of M/s Eden Exim Limited, Delhi. It is repayable on demand and carries interest 5.00% above the BPLR.

(c) Term loan from bank includes loan taken from Allahabad bank. It was taken for purchase of machinery. The loan carries interest of 2.00% above the BPLR(8.50%) and is repayable in 84 monthly installments. The loan is secured against primary security of hypothecation of inventory, books debts, currents assets and other movable assets of the company and collateral security of equitable mortgage of plants & Machinery and land & building at Bhagwanpur, Roorkee, land & building at Lokeshwari, Roorkee and residential plot of directors at shahnagar, Dehradun. Additionally, personal guarantee of Directors of the company and corporate guarantee of M/s Eden Exim Limited, Delhi has also been provided.

Banking Relations :	----
Auditors :
Name :	M/s Anurag Sangal and Company (Chartered Accountants)
Sister Concerns:	Affine Steels Private Limited Kriss Cross Inc (Mr.Parth Lohia Proprietor)

CAPITAL STRUCTURE

AS ON 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- Each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3220600	Equity Shares	Rs.10/- Each	Rs.32.206 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	32.206	32.206	32.206
(b) Reserves & Surplus	67.232	65.181	51.783
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	38.700	38.700	0.000
Total Shareholders’ Funds (1) + (2)	138.138	136.087	83.989
(3) Non-Current Liabilities
(a) long-term borrowings	82.690	28.207	23.145
(b) Deferred tax liabilities (Net)	(0.443)	(0.499)	(0.254)
(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)	82.247	27.708	22.891
(4) Current Liabilities
(a) Short term borrowings	115.158	112.998	77.937
(b) Trade payables	4.294	33.504	34.751
(c) Other current liabilities	3.830	2.861	0.991
(d) Short-term provisions	3.339	4.883	3.055
Total Current Liabilities (4)	126.621	154.246	166.734
TOTAL	347.006	318.041	223.614
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	133.794	64.042	52.522
(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	0.000	0.000	0.000
(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	0.000	0.000	0.000
Total Non-Current Assets	133.794	64.042	52.522
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	65.891	98.773	51.100
(c) Trade receivables	108.953	126.289	106.179
(d) Cash and cash equivalents	8.523	13.768	4.925
(e) Short-term loans and advances	27.649	12.949	6.024
(f) Other current assets	2.196	2.220	2.864
Total Current Assets	213.212	253.999	171.092
TOTAL	347.006	318.041	223.614

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from Operation	686.224	600.467	398.981
		Other Income	0.474	0.425	0.653
		TOTAL (A)	686.698	600.892	399.634
Less	EXPENSES
		Raw Material Consumed	421.161	430.006	268.696
		Purchase of Finished & Other products	133.431	139.933	77.257
		Changes In Inventories of Finished goods, Work in Progress	32.882	(47.673)	(7.073)
		Employee Benefit Expenses	10.227	8.436	7.150
		Other Expenses	41.910	25.060	24.703
		TOTAL (B)	639.611	555.762	370.733
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		47.087	45.130	28.901
Less	FINANCIAL EXPENSES (D)		28.797	18.844	12.680
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		18.290	26.286	16.221
Less/ Add	DEPRECIATION/ AMORTISATION (F)		15.456	9.493	9.493
	PROFIT BEFORE TAX (E-F) (G)		2.834	16.793	6.728
Less	TAX (I)		0.596	0.778	0.777
	PROFIT AFTER TAX (G-I) (J)		2.238	16.015	5.951
	IMPORTS
		Traded/ Consumable Goods	Nil	19.823	NA
		Capital Goods	Nil	4.808	NA
	TOTAL IMPORTS		Nil	24.631	NA
	Earnings Per Share (Rs.10/- Each)
	Basic Earning Per Share		0.70	4.97	1.85
	Diluted Earning Per Share		0.70	4.97	1.85

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.32	2.66	1.49
Net Profit Margin (PBT/Sales)	(%)	0.41	2.80	1.69
Return on Total Assets (PBT/Total Assets}	(%)	0.82	5.28	3.00
Return on Investment (ROI) (PBT/Networth)		0.02	0.12	0.08
Debt Equity Ratio (Total Liability/Networth)		1.43	1.04	1.20
Current Ratio (Current Asset/Current Liability)		1.68	1.65	1.03

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	Yes
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	Yes
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:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10381313	17/09/2012	22,500,000.00	ALLAHABAD BANK	Meerut Cantt Branch, Mall Road, Meerut, Uttar Pra desh - 250001, INDIA	B59989996
2	10381409	17/09/2012	60,000,000.00	ALLAHABAD BANK	Meerut Cantt Branch, Mall Road, Meerut, Uttar Pra desh - 250001, INDIA	B60038122
3	10201172	12/01/2012 *	183,372,000.00	Allahabad Bank	MEERUT CANTT BRANCH, THE MALL, MEERUT CANTT, MEER UT, Uttar Pradesh - 250001, INDIA	B31066871
4	10201173	25/01/2010	28,906,000.00	ALLAHABAD BANK	MEERUT CANTT BRANCH, MALL ROAD, MEERUT, Uttar Pra desh - 250001, INDIA	A78807294
5	10045035	23/06/2008 *	53,000,000.00	VIJAYA BANK	8, GOVINDPURI, MAIN ROAD, HARIDWAR, Uttarakhand - 249407, INDIA	A43056951

Corporate Information:

Subject is a Public Limited Company incorporated in India under the provision of the Companies Act’1956. The shares of the company are not listed on any stock exchange. It was incorporated in the year 1993. It is engaged in manufacturing parts for Indian Railway and Tata Motors Limited.

Fixed Assets:

· Land & Building

· Plant & Machinery

· Furniture & Fixtures

· Office Equipment

· Vehicles

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.
UK Pound	1	Rs.
Euro	1	Rs.

INFORMATION DETAILS

Report Prepared by :

AARTI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--MARGINS	-5~5	3
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		28

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

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.