MIRA INFORM REPORT

Report Date :

27.05.2014

IDENTIFICATION DETAILS

Name :	STEEL INNOVATION PRIVATE LIMITED
Registered Office :	17-B Industrial Area, Govind Pura, Bhopal – 462001, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	20.01.2006
Com. Reg. No.:	10-018315
Capital Investment / Paid-up Capital :	Rs.14.800 Millions
CIN No.: [Company Identification No.]	U02899MP2006PTC018315
TAN No.: [Tax Deduction & Collection Account No.]	BPLS07775F
PAN No.: [Permanent Account No.]	AAJCS8338K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Steel Fabrication.
No. of Employees :	47 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 231000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Company has performed well. Overall financial position of the company is decent. Trade relations are reported to be fair. Business is active. Payments are reported to be usually 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.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.

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 PARTED BY

Name :	Mr. Bupendra .S. Tomer
Designation :	Finance Manager
Contact No.:	91-9009777829
Date :	26.05.2014

LOCATIONS

Registered Office :	17-B Industrial Area, Govind Pura, Bhopal – 462001, Madhya Pradesh, India
Tel. No. :	91-755-586273
Mobile No. :	91-9009777829 (Mr. Bupendra .S. Tomer)
Fax No. :	91-755-586273
E-Mail :	digicorp@rediffmail.com Sipl.siplindia@gmail.com
Factory :	Plot No. 53, New Industrial Area II, Mandideep, Raisen, Madhya Pradesh, India

DIRECTORS

As on 30.09.2013

Name :

Mr. Dinesh Agrawal

Designation :

Director

Address :

E-1/168, Arera Colony, Bhopal – 462016, Madhya Pradesh, India

Date of Appointment :

20.01.2006

DIN No. :

00013183

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	U50101MP2001PTC014543	MECHMEN MOTORS PRIVATE LIMITED	Director	07/02/2001	07/02/2001	26/12/2011	Active	NO
2	U45207MP2004PTC016490	MECHMEN CONSTRUCTIVE SOLUTIONS PRIVATE LIMITED	Director	23/04/2004	23/04/2004	30/09/2013	Active	NO
3	U02899MP2006PTC018315	STEEL INNOVATION PRIVATE LIMITED	Director	20/01/2006	20/01/2006	-	Active	NO

Name :

Mr. Prashant Agrawal

Designation :

Director

Address :

E-1/168, Arera Colony, Bhopal – 462016, Madhya Pradesh, India

Date of Appointment :

20.01.2006

DIN No. :

02078193

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	U50101MP2001PTC014543	MECHMEN MOTORS PRIVATE LIMITED	Director	07/02/2001	07/02/2001	07/02/2011	Active	NO
2	U02899MP2006PTC018315	STEEL INNOVATION PRIVATE LIMITED	Director	20/01/2006	20/01/2006	-	Active	NO

Name :

Ms. Nidhi Agrawal

Designation :

Director

Address :

E-1/168, Arera Colony, Bhopal – 462016, Madhya Pradesh, India

Date of Appointment :

20.01.2006

DIN No. :

02095213

KEY EXECUTIVES

Name :	Mr. Bupendra .S. Tomer
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

NOTE: SHAREHOLDING DETAILS FILE ATTACHED

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Steel Fabrication.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

Padam Steel Private Limited, Mumbai

Customers :

Wholesalers and End Users

Thysenkrupp India Private Limited, Pune

No. of Employees :

47 (Approximately)

Bankers :

· ICICI Bank, Mendideep

· Punjab and Sind Bank, Zonal Office, 186, zone-II, M.P. Nagar, Bhopal – 462001, Madhya Pradesh, India

Facilities :

CC + BG Rs. 40.000 Millions

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Punjab and Sind Bank	0.500	1.100
	0.000	0.369
SHORT TERM BORROWINGS
Loans repayable on demand	13.226	9.565
Total	13.726	11.034

Banking Relations :	--
Auditors :
Name :	Rath Dinesh and Associates Chartered Accountants
Address :	F-1, Plot No. 70, Zone – I, M.P, Nagr, Bhopal – 462001, Madhya Pradesh, India
Tel. No. :	91-755-2559744 / 2556113
Fax No. :	91-755-2559744
E-Mail :	rathsindesh@satyam.net.in
PAN No. :	AAEFR4071J

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs.100/- each	Rs. 15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
148000	Equity Shares	Rs.100/- each	Rs.14.800 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	14.800	14.800	14.800
(b) Reserves & Surplus	31.660	29.563	28.631
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	11.323	6.323	0.823
Total Shareholders’ Funds (1) + (2)	57.783	50.686	44.254
(3) Non-Current Liabilities
(a) long-term borrowings	0.500	1.469	3.231
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(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)	0.500	1.469	3.231
(4) Current Liabilities
(a) Short term borrowings	14.226	10.565	17.817
(b) Trade payables	36.509	23.074	23.533
(c) Other current liabilities	30.208	24.120	23.982
(d) Short-term provisions	0.848	0.655	1.557
Total Current Liabilities (4)	81.791	58.414	66.889
TOTAL	140.074	110.569	114.374
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	56.763	40.611	37.101
(ii) Intangible Assets	0.000	0.000	0.079
(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	56.763	40.611	37.180
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	21.555	22.781	21.839
(c) Trade receivables	22.054	15.279	29.364
(d) Cash and cash equivalents	4.576	3.833	2.754
(e) Short-term loans and advances	35.126	28.065	23.237
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	83.311	69.958	77.194
TOTAL	140.074	110.569	114.374

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	138.289	82.964	112.294
		Other Income	0.365	0.255	0.182
		TOTAL	138.654	83.219	112.476
Less	EXPENSES
		Cost of Materials Consumed	101.928	54.441	74.982
		Employees benefits expense	3.511	3.437	2.774
		Other expenses	22.781	16.750	25.754
		TOTAL	128.220	74.628	103.510
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		10.434	8.591	8.966
Less	FINANCIAL EXPENSES		3.323	2.984	3.084
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		7.111	5.607	5.882
Less/ Add	DEPRECIATION/ AMORTISATION		4.059	4.257	3.826
	PROFIT/ (LOSS) BEFORE TAX		3.052	1.350	2.056
Less	TAX		0.955	0.417	0.636
	PROFIT/ (LOSS) AFTER TAX		2.097	0.933	1.420
	Earnings / (Loss) Per Share (Rs.)		14.17	6.30	9.60

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.51	1.12	1.26
Net Profit Margin (PBT/Sales)	(%)	2.21	1.63	1.83
Return on Total Assets (PBT/Total Assets}	(%)	2.18	1.22	1.80
Return on Investment (ROI) (PBT/Networth)		0.05	0.03	0.05
Debt Equity Ratio (Total Debt/Networth)		0.25	0.24	0.48
Current Ratio (Current Asset/Current Liability)		1.02	1.20	1.15

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	14.800	14.800	14.800
Reserves & Surplus	28.631	29.563	31.660
Share Application money pending allotment	0.823	6.323	11.323
Net worth	44.254	50.686	57.783
long-term borrowings	3.231	1.469	0.500
Short term borrowings	17.817	10.565	14.226
Total borrowings	21.048	12.034	14.726
Debt/Equity ratio	0.476	0.237	0.255

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	112.294	82.964	138.289
		(26.119)	66.686

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	112.294	82.964	138.289
Profit	1.420	0.933	2.097
	1.26%	1.12%	1.52%

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	No
17]	Major suppliers	Yes
18]	Major customers	Yes
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	No
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

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Loans from related parties	1.000	1.000
Total	1.000	1.000

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10124026	20/08/2013 *	46,671,000.00	PUNJAB & SIND BANK	ZONAL OFFICE, 186, ZONE II, M.P. NAGAR, BHOPAL, Madhya Pradesh - 462011, INDIA	B85140119
2	90389123	20/04/2006	3,050,000.00	UCO BANK	BHOPAL, BHOPAL, Madhya Pradesh, INDIA	-
3	90382102	17/06/1997	3,000,000.00	SOCIETE GENERALE	NARIMAN POINT, MUMBAI, Maharashtra, INDIA	-
4	90382105	03/11/2004 *	2,500,000.00	STATE BANK OF INDIA	MUMBAI, MUMBAI, Maharashtra, INDIA	-
5	90382104	24/04/1997	250,000.00	ORIENTAL BANK OF COMMERCE	MUMBAI, MUMBAI, Maharashtra, INDIA	-
6	90382101	11/01/1995	3,790,000.00	THE BHARAT CO- OP. BANK LTD.	MEGHDOOT CHAMBERS, FORT, MUMBAI, Maharashtra, INDIA	-

* Date of charge modification

FIXED ASSETS

œ Land

œ Factory Building

œ Furniture and Fixture

œ Plant and Machinery

œ 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.58.59
UK Pound	1	Rs.98.66
Euro	1	Rs.79.81

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	SUM
Report Prepared by :	ANK

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	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		46

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.