MIRA INFORM REPORT

Report Date :

30.07.2014

IDENTIFICATION DETAILS

Name :	EMJAY STEEL UDYYOG PRIVATE LIMITED
Registered Office :	18/26, 2nd Street, Loganathan Nagar, Choolaimedu, Chennai – 600094, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	08.03.2010
Com. Reg. No.:	18-074826
Capital Investment / Paid-up Capital :	Rs.75.000 Millions
CIN No.: [Company Identification No.]	U27106TN2010PTC074826
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Mild Steel Billets.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (31)

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 an established company having moderate track. As per registrar of companies the date of financial statement field is shown as March 31^st 2013, but the documents related to the same are not available from the statutory department, whereas the partial figure are made available form the indirect source for your mere reference. The company possesses a moderate financial profile marked by adequate networth base modest gearing during FYE 12. Management has witnessed and improvement in its operating as well as net profitability, but has reported a low profit margin during FYE 13. The ratings also take into consideration the intense competition n the steel industry. However, trade relations are fair. Business is active. Payment terms are reported as slow but correct. In view of promoter extensive industry experience and the strong funding support of receives from them, 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: BB
Rating Explanation	Moderate risk of default regarding timely servicing of financial obligations.
Date	11.06.2014

Rating Agency Name	CRISIL
Rating	Short term rating: A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	11.06.2014

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

MANAGEMENT NON – COOPERATIVE (91-44-23611271)

LOCATIONS

Registered Office :	18/26, 2nd Street, Loganathan Nagar, Choolaimedu, Chennai – 600094, Tamilnadu, India
Tel. No.:	91-44-23611271
Fax No.:	Not Available
E-Mail :	emjaysteels@gmail.com

DIRECTORS

As on 24.09.2013

Name :	Mr. Mathew Koshy Elanjickal
Designation :	Director
Address :	Elanjickal House, Kizhakkum, Bhagom, Niranam West, Pathanamthitta District, Thiruvilla – 689101, Kerala, India
Date of Birth/Age :	10.03.1960
Date of Appointment :	08.03.2010
DIN No.:	02892234
Name :	Mr. Jacob Mathew
Designation :	Director
Address :	384, Jalan, US T 20/1A, Subang Jaya, Selangor – 47630, Malaysia
Date of Birth/Age :	27.02.1968
Date of Appointment :	18.12.2010
DIN No.:	03432087
Name :	Mr. Chitrakkudi Sundararajan Nesu Mohan
Designation :	Additional director
Address :	No. 4, H 5, 1^st Main Road, MMDA Colony, Maduravoyal, Chennai – 600095, Tamilnadu, India
Date of Birth/Age :	20.07.1951
Date of Appointment :	05.12.2012
DIN No.:	03628106
Name :	Mr. Mani Thiyagarajan
Designation :	Additional director
Address :	No. 14/9, Nermai Nagar, 2^nd Street, Villukkam, Chennai – 600099, Tamilnadu, India
Date of Birth/Age :	21.11.1976
Date of Appointment :	05.12.2012
DIN No.:	03628118
Name :	Mr. Abraham Zechariah
Designation :	Additional director
Address :	23-B-1, Flowers Road, Chennai – 600084, Tamilnadu, India
Date of Birth/Age :	13.06.1955
Date of Appointment :	24.11.2012
DIN No.:	06426220
Name :	Mr. Ajith Oommen Abraham
Designation :	Additional director
Address :	Poruvackal House, Adoor P O, Pathanamathitta, Trivandrum – 691523, Kerala, India
Date of Birth/Age :	03.10.1979
Date of Appointment :	15.06.2013
DIN No.:	06548153

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.09.2013

Names of Shareholders	No. of Shares
Vinod Garg	5000
Mathew Koshy Elanjickal	8587227
Jacob Mathew	332836
Binu John Philip	125000
Abraham Zechariah	100
Total	9050163

Equity Share Break up (Percentage of Total Equity)

As on 24.09.2013

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Mild Steel Billets.

Products :

Item Code No.	Product Description
72071920	Mild Steels (M.S) Billets

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

State Bank of India (Lead Bank of the SBI and SIB Consortium), Mid Corporate Group, Industrial Finance Branch, 155, Anna Salai, Chennai - 600002, Tamil Nadu, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long-term Borrowings
Rupee term loans from banks	255.000	0.000
Short-term borrowings
Rupee term loans from banks	346.335	0.000
Total	601.335	0.000

Banking Relations :	--
Auditors :
Name :	Srinivas and Gopal Chartered Accountants
Address :	C-1 Ceebros Apartments, No.2 Saravana Street, T Nagar, Chennai – 600017, Tamilnadu, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAXPS9341P

CAPITAL STRUCTURE

As on 24.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9050163	Equity Shares	Rs.10/- each	Rs. 90.502 Millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs.10/- each	Rs. 75.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs.10/- each	Rs. 75.000 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	75.000	0.100
(b) Reserves & Surplus	225.110	0.000
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	62.003	61.275
Total Shareholders’ Funds (1) + (2)	362.113	61.375
(3) Non-Current Liabilities
(a) long-term borrowings	255.000	0.000
(b) Deferred tax liabilities (Net)	8.523	0.000
(c) Other long term liabilities	70.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	333.523	0.000
(4) Current Liabilities
(a) Short term borrowings	346.335	0.000
(b) Trade payables	16.430	0.000
(c) Other current liabilities	29.791	7.557
(d) Short-term provisions	28.268	1.051
Total Current Liabilities (4)	420.824	8.608
TOTAL	1116.460	69.983
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	504.508	7.212
(ii) Intangible Assets	0.040	0.012
(iii) Capital work-in-progress	27.148	27.515
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	21.504	0.128
(e) Other Non-current assets	3.965	30.771
Total Non-Current Assets	557.165	65.638
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	302.946	0.000
(c) Trade receivables	70.588	0.000
(d) Cash and cash equivalents	52.340	1.358
(e) Short-term loans and advances	124.307	2.987
(f) Other current assets	9.114	0.000
Total Current Assets	559.295	4.345
TOTAL	1116.460	69.983

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2012
	SALES
	Net Sales	440.310
	Other Income	NA
	TOTAL (A)	NA
Less	EXPENSES
	Cost of Materials Consumed
	Purchases of Stock-in-Trade
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade
	TOTAL (B)	NA
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	34.053
Less	FINANCIAL EXPENSES (D)	20.551
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	13.502
Less/ Add	DEPRECIATION/ AMORTISATION (F)	4.569
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	8.933
Less	TAX (I)	8.523
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	0.410
	IMPORTS
	Raw materials - Scrap	116.469
	Spare parts	0.231
	TOTAL IMPORTS	116.700
	Earnings / (Loss) Per Share (Rs.)	0.13

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011
Return on Total Assets (PBT/Total Assets}	(%)	0.82	NA
Return on Investment (ROI) (PBT/Networth)		0.02	NA
Debt Equity Ratio (Total Debt /Networth)		1.66	0.00
Current Ratio (Current Asset/Current Liability)		1.33	0.50

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	0.100	75.000
Reserves & Surplus	0.000	225.110
Share Application money pending allotment	61.275	62.003
Net worth	61.375	362.113
long-term borrowings	0.000	255.000
Short term borrowings	0.000	346.335
Total borrowings	0.000	601.335
Debt/Equity ratio	0.000	1.661

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 two years	Yes
12]	Profitability for last two 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	No
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

OPERATIONAL REVIEW:

As the company has commenced its production activities during the month of January 2012 and the production is achieved to 12077 M. Tons of MS Billets, which is a highly credible performance considering in the fact that period of operation is less than 3 months. In spite of power cuts and initial technical difficulties the company has achieved 50% of its installed capacity. The directors are now confident of achieving good results for the ensuring.

FUTURE OUTLOOK:

As they are the manufacturer of M.S.Billets, demand for their product is steeply upward movement considering positive influence and inherent stability to establish their Company as successful competitor in the industry. The management is making serious efforts to go for expansion of existing unit and also formation of new plant for manufacture of TMT Bars in future so as to drive their product to meet their ultimate consumers from industrial consumers.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10332138	07/01/2012	600,000,000.00	STATE BANK OF INDIA (LEAD BANK OF THE SBI & SIB CO NSORTIUM)	MID CORPORATE GROUP, INDUSTRIAL FINANCE BRANCH, 1 55, ANNA SALAI, CHENNAI, TAMIL NADU - 600002, INDIA	B30656540
2	10305686	17/12/2011 *	575,000,000.00	STATE BANK OF INDIA	MID CORPORATE GROUP, INDUSTRIAL FINANCE BRANCH, 1 55, ANNA SALAI, CHENNAI, TAMIL NADU - 600002, INDIA	B29265071

* Date of charge modification

FIXED ASSETS

Tangible assets

· Land

· Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Office equipment

· Computer equipments

Intangible assets

· Computer software

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 records 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.60.10
UK Pound	1	Rs.102.04
Euro	1	Rs.80.74

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	SUB
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		31

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.