MIRA INFORM REPORT

Report Date :

02.06.2014

IDENTIFICATION DETAILS

Name :	DANISH STEEL CLUSTER PRIVATE LIMITED
Registered Office :	46, Bommasandra, Jigani Link Road, Kiadb Industrial Area, Jigani, Bangalore – 562106, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	16.01.2004
Com. Reg. No.:	08-033200
Capital Investment / Paid-up Capital :	Rs.47.062 Millions
CIN No.: [Company Identification No.]	U02710KA2004PTC033200
TAN No.: [Tax Deduction & Collection Account No.]	BLRD02686F
PAN No.: [Permanent Account No.]	AABCD9135B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Engineering Goods.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 490000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There is a dip in profit of the company in the year 2013. However, networth of the company is decent. Trade relations are reported to be fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealing 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.

ECGC Country Risk Classification List – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

US investment bank Goldman Sachs has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

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

Management Non-Cooperative (Tel No.: 91-80-27839136)

LOCATIONS

Registered Office/Factory :	46, Bommasandra, Jigani Link Road, Kiadb Industrial Area, Jigani, Bangalore – 562106, Karnataka , India
Tel. No.:	91-80-2839136 / 27839133 / 27839139
Fax No.:	91-80-27839132
E-Mail :	rsumanth@dscplindia.com venkat@dscplindia.com

DIRECTORS

As on 12.09.2013

Name :

Mr. Narasimha Murthy Alilaghatta Chidambaraiah

Designation :

Managing Director

Address :

No.910, Samriddi, 1st Main, 5th Block, H M T Layout, Vidyaranyapura, Bangalore-560097, Karnataka, India

Date of Birth/Age :

08.06.1964

Date of Appointment :

23.08.2011

DIN No.:

03441486

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	U02710KA2004PTC033200	DANISH STEEL CLUSTER PRIVATE LIMITED	Managing director	23/08/2011	09/02/2011	-	Active	NO

Name :

Mr. Sridhar Sampath

Designation :

Director

Address :

Flat-8, Aparna, 46 (Old) Moorthy Street Extension, West Mambalam, Chennai - 600 033, Tamil Nadu, India

Date of Birth/Age :

21.06.1964

Date of Appointment :

10.07.2008

DIN No.:

00806244

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	U28999TN2000PTC053650	EagleBurgmann KE Private Limited	Director	13/01/2004	13/01/2004	29/01/2009	Active	NO
2	U40108TN2002PTC049386	INDAN ENERGY PRIVATE LIMITED	Director	01/10/2004	01/10/2004	-	Active	NO
3	U72300TN1996PTC036901	PROCON SYSTEMS PRIVATE LIMITED	Director	16/09/2005	16/09/2005	27/06/2008	Active	NO
4	U74140TN2005PTC058319	HAYAGRIVA ADVISORY SERVICES PRIVATE LIMITED.	Director	15/12/2005	15/12/2005	-	Active	NO
5	U74999MH2000PTC123855	FOWLER WESTRUP (INDIA) PRIVATE LIMITED	Director	28/02/2007	28/02/2007	19/09/2007	Active	NO
6	U02710KA2004PTC033200	DANISH STEEL CLUSTER PRIVATE LIMITED	Director	10/07/2008	25/07/2007	-	Active	NO
7	U29255TN2011FTC080122	Conveyor Teknik India Private Limited	Nominee director	16/06/2011	16/06/2011	-	Active	NO
8	U15400KA2011PTC056475	KALASAM SACRED FOODS PRIVATE LIMITED	Nominee director	07/03/2012	07/03/2012	29/04/2013	Active	NO
9	U36900KA2011PTC056679	KALASAM BIO FUELS PRIVATE LIMITED	Nominee director	07/03/2012	07/03/2012	-	Active	NO

Name :

Mr. John Roth

Designation :

Director

Address :

Birkemosevej 51, Kolding, 6000, Denmark

Date of Birth/Age :

12.12.1958

Date of Appointment :

27.04.2007

DIN No.:

01468991

Name :

Mr. Tove Augustinus Roth

Designation :

Director

Address :

Birkemosevej 51, Nr Bjert, Kolding, 6000, Denmark

Date of Birth/Age :

22.03.1963

Date of Appointment :

23.08.2011

DIN No.:

03313413

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	U02710KA2004PTC033200	DANISH STEEL CLUSTER PRIVATE LIMITED	Director	23/08/2011	12/10/2010	-	Active	NO

MAJOR SHAREHOLDERS

As on 12.09.2013

Names of Shareholders	No. of Shares	% of Holding
Steel Partner Holding APS, Denmark	4705933	99.99
The Industrialisation Fund for Developing Countries, Denmark	300	0.01
Total	4706233	100.00

Equity Share Break up (Percentage of Total Equity)

As on 12.09.2013

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Engineering Goods.

GENERAL INFORMATION

No. of Employees :

Information denied by management

Bankers :

• The Hongkong and Shanghai Banking Corporation Limited, No. 7, M G Road, Bangalore - 560001, Karnataka, India
• ABN Amro Bank N. V., 8th Floor, Canberra Block, UB City, # 24, Vittal Mallya Road,, Bangalore - 560001, Karnataka, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Loans and advances from related parties from IFU (Secured against land, building, other fixed assets and current assets)	20.250	29.027
Short Term Borrowings
Loans repayable on demand
From bank (Secured against land, building, other fixed assets and current assets)	6.605	0.000
Bills Discounting (Secured against land, building, other fixed assets and current assets)	9.374	7.562
Total	36.229	36.589

Banking Relations :	--
Auditors :
Name :	Badami and Kamath Chartered Accountant
Address :	596, 5th Cross, 5th Cross, 4th Block, Koramangala, Bangalore – 560034, Karnataka, India
PAN No.:	AAAFB6411A
Holding Company :	Steel Partner Holding APS, Denmark
Fellow Subsidiaries :	Steel Partner Denmark APS Rool Denmark APS Tool (Tainjin) Steel Parts Company Limited

CAPITAL STRUCTURE

As on 12.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
4750000	Equity Shares	Rs.10/- each	Rs.47.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4706233	Equity Shares	Rs.10/- each	Rs.47.062 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	47.062	47.062	47.062
(b) Reserves & Surplus	75.248	68.999	53.272
(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)	122.310	116.061	100.334
(3) Non-Current Liabilities
(a) long-term borrowings	30.879	42.631	23.893
(b) Deferred tax liabilities (Net)	2.287	2.538	1.538
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	1.201	0.851	0.842
Total Non-current Liabilities (3)	34.367	46.020	26.273
(4) Current Liabilities
(a) Short term borrowings	15.979	7.562	14.103
(b) Trade payables	54.881	68.068	44.823
(c) Other current liabilities	16.684	21.498	28.780
(d) Short-term provisions	2.915	9.541	3.067
Total Current Liabilities (4)	90.459	106.669	90.773
TOTAL	247.136	268.750	217.380
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	92.357	100.100	69.433
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	4.988
(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	0.772	0.772	10.960
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	93.129	100.872	85.381
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	47.962	37.079	47.063
(c) Trade receivables	91.546	97.950	79.717
(d) Cash and cash equivalents	0.108	11.515	3.718
(e) Short-term loans and advances	1.184	0.532	1.309
(f) Other current assets	13.207	20.802	0.192
Total Current Assets	154.007	167.878	131.999
TOTAL	247.136	268.750	217.380

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	211.409	235.381	233.868
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
	EXPENSES		NA	NA	NA
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		19.160	30.056	22.064
Less	DEPRECIATION/ AMORTISATION		9.523	6.855	5.089
	PROFIT/(LOSS) BEFORE TAX		9.637	23.201	16.975
Less	TAX		3.388	7.474	NA
	PROFIT/(LOSS) AFTER TAX		6.249	15.727	NA
	Earnings Per Share (Rs.)		1.33	NA	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PBT/Sales)	(%)	4.56	9.86	7.26
Return on Total Assets (PBT/Total Assets}	(%)	3.90	8.63	7.99
Return on Investment (ROI) (PBT/Networth)		0.08	0.20	0.17
Debt Equity Ratio (Total Debt /Networth)		0.38	0.43	0.38
Current Ratio (Current Asset/Current Liability)		1.70	1.57	1.45

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	47.062	47.062	47.062
Reserves & Surplus	53.272	68.999	75.248
Net worth	100.334	116.061	122.310
long-term borrowings	23.893	42.631	30.879
Short term borrowings	14.103	7.562	15.979
Total borrowings	37.996	50.193	46.858
Debt/Equity ratio	0.379	0.432	0.383

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	233.868	235.381	211.409
		0.647	-10.184

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions
Sales	235.381	211.409
Profit	15.727	6.249
	6.68%	2.96%

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	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	No

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
From shareholders Steel Partner Holdings	10.629	13.604
Total	10.629	13.604

FINANCIAL RESULTS:

The company has served5 overseas customers and 11 local customer during the year April 2012- March 2013 and the turnover of the company during the FY year is Rs.211.409 Millions. The depreciation during the year is Rs.9.523 Millions. The net profit earned before tax is Rs.9.637 Millions.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10446238	01/10/2013 *	53,000,000.00	The Hongkong And Shanghai Banking Corporation LimiTed	No. 7, M G Road, Bangalore, Karnataka - 560001, India	B87487633
2	80007157	25/03/2011 *	38,480,214.00	The Industralization Fund For Developing Countries	Frederciagade 27,1310, Copenhagen, Copenhagen K, - 1069, Denmark	B09527664

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.59.08
UK Pound	1	Rs.98.91
Euro	1	Rs.80.33

INFORMATION DETAILS

Information Gathered by :	JML
Analysis Done by :	SUM
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		42

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.