MIRA INFORM REPORT

Report Date :

80.05.2014

IDENTIFICATION DETAILS

Name :	SOLO METALS PRIVATE LIMITED
Formerly Known As :	ACHJAY STEELS INDIA PRIVATE LIMITED
Registered Office :	PU – 108, Pitampura, New Delhi – 110034
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	07.04.1995
Com. Reg. No.:	55-067306
Capital Investment / Paid-up Capital :	Rs.28.443 Millions
CIN No.: [Company Identification No.]	U74899DL1995PTC067306
TAN No.: [Tax Deduction & Collection Account No.]	DELS36611B
PAN No.: [Permanent Account No.]	AADCA8726B
Legal Form :	Private Limited Liability Company
Line of Business :	Exporter and Importer of all varieties of steel.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 520000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating reflects company’s moderate financial risk profile marked by thin profitability levels and intensive competition in steel industry. However, trade relations are fair. Business is active. Payment terms are 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 – 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.2,453.2 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating=BB-
Rating Explanation	Moderate risk of default and high credit risk.
Date	26.12.2013

Rating Agency Name	CRISIL
Rating	Short Term Rating=A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	26.12.2013

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. Rakesh Sharma
Designation :	Accounts Manager
Contact No.:	91-22-25690035 / 36
Date :	05.05.2014

LOCATIONS

Registered Office :	PU – 108, Pitampura, New Delhi – 110034, India
Tel. No.:	91-22-25690035 / 36
Fax No.:	Not Available
E-Mail :	saketsaroha.solometals@gmail.com jobs.solometals@gmail.com
Administrative Office :	509, Avivor, Nimal Galaxy, Opposite Johnson & Johnson, L.B.S Marg, Mulund (West), Mumbai – 400080, India

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Saket Saroha

Designation :

Director

Address :

PU – 108, Pitampura, Delhi - 110088

Date of Birth/Age :

07.01.1985

Date of Appointment :

26.10.2007

DIN No.:

01816090

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	Company/ LLP Status	Defaulting status
1	U74899DL1995PTC067306	SOLO METALS PRIVATE LIMITED	Director	26/10/2007	26/10/2007	Active	NO
2	U74899DL1992PTC049984	SOLO STEEL COMPANY PRIVATE LIMITED	Director	29/09/2012	12/07/2012	Active	NO
3	U74899DL1995PTC074029	G.R.S. ISPAT COMPANY PRIVATE LIMITED	Additional director	26/12/2012	26/12/2012	Active	NO
4	U27100DL2013PTC255048	J.D.S. STEEL INDUSTRY PRIVATE LIMITED	Director	08/07/2013	08/07/2013	Active	NO

Name :

Mr. Jawahar Singh Saroha

Designation :

Director

Address :

PU – 108, Pitampura, Delhi - 110034

Date of Birth/Age :

20.02.1953

Date of Appointment :

29.05.2006

DIN No.:

00671541

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	Company/ LLP Status	Defaulting status
1	U74899DL1992PTC049984	SOLO STEEL COMPANY PRIVATE LIMITED	Director	08/08/1998	08/08/1998	Active	NO
2	U74899DL1995PTC074029	G.R.S. ISPAT COMPANY PRIVATE LIMITED	Director	08/08/1998	08/08/1998	Active	NO
3	U74899DL1995PTC067306	SOLO METALS PRIVATE LIMITED	Director	29/05/2006	29/05/2006	Active	NO
4	U27100DL2013PTC255048	J.D.S. STEEL INDUSTRY PRIVATE LIMITED	Director	08/07/2013	08/07/2013	Active	NO

KEY EXECUTIVES

Name :	Mr. Rakesh Sharma
Designation :	Accounts Manager

MAJOR SHAREHOLDERS

AS ON 30.09.2013

Names of Shareholders	No. of Shares
Jawahar Singh Saroha	607428
Devika Saroha	113119
Rattan Lata Saroha	86675
Saket Saroha	1141818
Jitendra Mann	15000
Kamal Sagar – Proprietor of Kay Ess Construction Company	76250
Solo Steel Company Private Limited	155000
Delhi Mushroom Farms Private Limited	38150
Satbir Singh	70000
Vinod Kumar	25000
Gajinder Singh	25000
Vrushali Transport	36850
Capital Construction Co.	289625
H J Mehta	3375
N H Mehta	3375
R H Mehta	3375
Jay Harshad Mehta	12750
Omkar Steel Private Limited	25000
R K Trading Co	25000
V K Industries	12500
Mohinder Singh	16000
H. R. Builders Private Limited	12500
Ishwar Singh Samota	5000
Omkar Roadlines	7975
Balwan Singh	37500
Total	2844265

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2013

Category	Percentage
Bodies corporate	6.79
Directors or relatives of Directors	65.48
Other top fifty shareholders	27.73
Total	100.00

BUSINESS DETAILS

Line of Business :

Exporter and Importer of all varieties of steel.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· State Bank of India, 59, Community Centre, Naraina Industrial Area – I, New Delhi – 110028, India

· Small Industries Development Bank of India, New Delhi Branch Office, Videocon Tower, E-1, Rani Jhansi Road, Jhandewalan Extension, New Delhi – 110055, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Rupee Term Loans from Banks	32.570	45.413
Short Term Borrowings
Term Loans from Banks	152.626	219.311
Total	185.196	264.724

Banking Relations :	--
Financial Institution :	Reliance Capital Limited, “H” Block, 1^st Floor, Dhirubhai Ambani Knowledge City, Koparkhairne, Navi Mumbai – 400710, Maharashtra, India
Auditors :
Name :	Yashwant Anil Rajshree and Associates Chartered Accountants
Address :	2, Dhairya Co-operative Housing Society, Near Daya K Shama Shanti Society, Opposite Saraswati Marathi School, Bhaskar Colony, Naupada, Thane (West), Thane – 400602, Maharashtra, India
PAN No.:	AAAFY5835F

CAPITAL STRUCTURE

AS ON 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2844265	Equity Shares	Rs.10/- each	Rs.28.443 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	28.443	24.494
(b) Reserves & Surplus	101.798	77.004
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	5.108
Total Shareholders’ Funds (1) + (2)	130.241	106.606
(3) Non-Current Liabilities
(a) long-term borrowings	81.379	62.671
(b) Deferred tax liabilities (Net)	3.667	2.148
(c) Other long term liabilities	0.000	0.200
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	85.046	65.019
(4) Current Liabilities
(a) Short term borrowings	152.626	219.311
(b) Trade payables	235.674	74.218
(c) Other current liabilities	1.425	1.721
(d) Short-term provisions	11.035	11.099
Total Current Liabilities (4)	400.760	306.349
TOTAL	616.047	477.974
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	134.820	106.529
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	26.530
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	1.753	1.752
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.268	0.451
(e) Other Non-current assets	0.057	0.084
Total Non-Current Assets	136.898	135.346
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	313.885	238.341
(c) Trade receivables	25.603	9.024
(d) Cash and cash equivalents	9.405	17.499
(e) Short-term loans and advances	48.415	46.292
(f) Other current assets	81.841	31.472
Total Current Assets	479.149	342.628
TOTAL	616.047	477.974

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		22.631
2] Share Application Money		0.000
3] Reserves & Surplus		10.901
4] (Accumulated Losses)		0.000
NETWORTH		33.532
LOAN FUNDS
1] Secured Loans		156.675
2] Unsecured Loans		3.541
TOTAL BORROWING		193.748
DEFERRED TAX LIABILITIES		1.440
OTHERS (BANK OVERDRAFT)		85.607
TOTAL		280.795
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		112.760
Capital work-in-progress		0.000
INVESTMENT		4.588
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	146.444
	Sundry Debtors	8.248
	Cash & Bank Balances	1.648
	Other Current Assets	52.850
	Loans & Advances	22.258
Total Current Assets		231.448
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000
	Other Current Liabilities	49.783
	Provisions	18.310
Total Current Liabilities		68.093
Net Current Assets		163.355
MISCELLANEOUS EXPENSES		0.092
TOTAL		280.795

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income
		Other Income
		TOTAL	1367.700	NA	NA
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT/(LOSS) BEFORE TAX		5.178	NA	10.732
Less	TAX		2.399	NA	(0.169)
	PROFIT/(LOSS) AFTER TAX		2.779	1.778	10.901
	Earnings Per Share (Rs.)		1.06	0.68	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.20	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	0.84	NA	3.12
Return on Investment (ROI) (PBT/Networth)		0.04	NA	0.32
Debt Equity Ratio (Total Debt /Networth)		1.80	2.65	5.78
Current Ratio (Current Asset/Current Liability)		1.20	1.12	3.40

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions
Share Capital	24.494	28.443
Reserves & Surplus	77.004	101.798
Net worth	101.498	130.241
long-term borrowings	62.671	81.379
Short term borrowings	219.311	152.626
Total borrowings	281.982	234.005
Debt/Equity ratio	2.778	1.797

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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last one year	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	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	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

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Other Loans and Advances	48.809	17.258
Total	48.809	17.258

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10462572	29/11/2013	10,000,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	NEW DELHI BRANCH OFFICE, VIDEOCON TOWER, E-1, RANI JHANSI ROAD, JHANDEWALAN EXTENSION, NEW DELHI, DELHI - 110055, INDIA	B90485723
2	10165626	01/09/2011 *	223,300,000.00	STATE BANK OF INDIA	59, COMMUNITY CENTRE, NARAINA INDUSTRIAL AREA-I, NEW DELHI, DELHI - 110028, INDIA	B22223077
3	10120307	04/08/2008	84,000,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI)	NEW DELHI BRANCH OFFICE, GROUND FLOOR,, VIDEOCON TOWER, E1 RANI JHANSI RD, JHANDEWALAN EXT, NEW DELHI, DELHI - 110055, INDIA	A45042504

* Date of charge modification

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Office Equipment

· Computer

· 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.60.04
UK Pound	1	Rs.101.97
Euro	1	Rs.83.58

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	KRN
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		34

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.