MIRA INFORM REPORT

Report Date :

11.11.2014

IDENTIFICATION DETAILS

Name :	SHREE SITA ISPAT AND POWER PRIVATE LIMITED
Registered Office :	New Khursipar, Bhilai – 490011, Chhattisgarh
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	01.04.2004
Com. Reg. No.:	016515
Capital Investment / Paid-up Capital :	Rs. 14.868 Millions
CIN No.: [Company Identification No.]	U27109CT2004PTC016515
TAN No.: [Tax Deduction & Collection Account No.]	JBPS02832E
PAN No.: [Permanent Account No.]	AAICS0526J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Sponge Iron.
No. of Employees :	40 (Approximately)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating takes into consideration company’s average financial risk profile marked by highly competitive nature of steel industry and high working capital requirement of the company. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. 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

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that it had willfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating = B+
Rating Explanation	Risk prone credit quality and carries very high credit risk.
Date	March 27, 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 PARTED BY

Name :	Mr. Yakub
Designation :	Accounts Manager
Contact No.:	91-9617867863
Date :	10.11.2014

LOCATIONS

Registered Office :	New Khursipar, Bhilai – 490011, Chhattisgarh, India
Tel. No.:	Not Available
Mobile No.:	91-9617867863 [Mr. Yakub]
Fax No.:	Not Available
E-Mail :	amitrai2211@gmail.com sitaispatpvtltd@yahoo.com
Area :	10000 Sq. ft.
Location :	Owned
Locality :	Commercial
Factory :	Village Borjhara, Urla Guma Road, Near Real Ispat, Raipur - 493221, Chhattisgarh, India
Tel. No.:	91-788-2285285
Area :	23 Acres
Location :	Owned

DIRECTORS

AS ON 29.09.2013

Name :

Mr. Kailash Chand Agrawal

Designation :

Additional director

Address :

New Khurshipar, Bhilai – 490011, Chhattisgarh, India

Date of Birth/Age :

02.03.1961

Date of Appointment :

27.09.2008

DIN No.:

00244929

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	U28112CT1995PTC009880	PILANIA STEELS PRIVATE LIMITED	Director	28/08/1995	28/08/1995	-	Active	NO
2	U27102CT2004PTC016548	PILANIA SP0NGE PRIVATE LIMITED	Director	15/04/2004	15/04/2004	-	Active	NO
3	U02710CT2006PTC018343	PILANIA INDUSTRIES INDIA PRIVATE LIMITED	Director	27/01/2006	27/01/2006	-	Active	NO
4	U26960GJ2007PTC051131	SHRI JAI BABA MINERALS PRIVATE LIMITED	Director	18/06/2007	18/06/2007	30/03/2012	Active	NO
5	U27109CT2004PTC016515	SHREE SITA ISPAT AND POWER PRIVATE LIMITED	Director	27/09/2008	12/01/2008	-	Active	NO

Name :

Mr. Manoj Agarwal Kumar

Designation :

Additional director

Address :

New Khurshipar, Bhilai – 490011, Chhattisgarh, India

Date of Birth/Age :

28.08.1973

Date of Appointment :

12.01.2008

DIN No.:

02003397

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	U27109CT2004PTC016515	SHREE SITA ISPAT AND POWER PRIVATE LIMITED	Additional director	12/01/2008	12/01/2008	Active	NO
2	U01403CT2013PTC000831	MAHANADI HORTICULTURE PRIVATE LIMITED	Director	13/05/2013	13/05/2013	Active	NO

KEY EXECUTIVES

Name :	Mr. Yakub
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2013

Names of Shareholders	No. of Shares
Hingora	78000
Hinron Steels Private Limited	1078800
Kailash Agrawal	20000
Manoj Agrawal	30000
Blue Stone Readymade Garments	5000
Darkin Distributors Private Limited	20000
Gaurav Rose Real Estate Private Limited	5000
Key-Dealers Private Limited	10000
K.P. Credit and Traders Private Limited	15000
Newjet Trexim Private Limited	10000
Rose Securities Limited	15000
Sitaram Investment Limited	10000
Super Commodities Private Limited	10000
N.S. Chandel	6000
Manoj Bandhe	5000
Sachham Reddy	5000
Jaggar Verma	9000
V. Swarnalata	5500
Ravi Kumar	4000
Pawan Kumar Verma	5000
Raja Chatterjee	4500
Rita Chandel	3500
G. Kirti Reddy	5000
Vinod Bandhe	5000
V. Ravi Kumar	3500
Purshottam Singh Chandel	7000
Purnima Bandhe	2500
Suresh Bandhe	4000
Kesh Ram Sahu	5500
Others	100000
Total	1486800

AS ON 29.09.2013

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Sponge Iron.
Exports :	--
Imports :	--
Terms :
Selling :	Cash and Advance Payment
Purchasing :	Cash and Advance Payment

GENERAL INFORMATION

Suppliers :

· Kalinga Mining Corporation Private Limited, Orissa

· NMDC Limited, Chhattisgarh

Customers :

Wholesalers, Retailers and End Users

· Uttam Value Steels Limited, Mumbai

· S D Bansal Iron and Steel Private Limited, Bhopal

No. of Employees :

40 (Approximately)

Bankers :

· Bank of Baroda

Opposite Swaroop Talkies, Station Road, Durg - 491001, Chhattisgarh, India

Contact Person: Mr. Senthil

Contact No.: 91-788-2322906

Banker Report: Very Good Company

· HDFC Bank Limited

· Bank of India

· Oriental Bank of Commerce

· ICICI Bank Limited

Facilities :

Cash Credit = Rs. 60.000 Millions

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Bank of Baroda TL (Car)	0.557	0.700
HDFC Bank	0.000	1.065
SHORT TERM BORROWINGS
Bank of Baroda CC (0326)	53.231	59.850
Total	53.788	61.615

Banking Relations :	--
Auditors :
Name :	V.N. Rai and Company Chartered Accountants
Address :	A-41, Vidya Vihar, Nehru Nagar West, Bhilai – 490020, Chattisgarh, India
Tel. No.:	91-788-4036803
E-Mail :	amitrai2211@gmail.com
Income-tax PAN of auditor or auditor's firm :	AFRPR3270B
Associates/Subsidiaries :	--

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2,000,000	Equity Shares	Rs. 10/- each	Rs. 20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,486,800	Equity Shares	Rs. 10/- each	Rs. 14.868 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	14.868	14.868	14.868
(b) Reserves & Surplus	61.144	55.201	49.826
(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)	76.012	70.069	64.694
(3) Non-Current Liabilities
(a) long-term borrowings	24.404	7.912	31.653
(b) Deferred tax liabilities (Net)	0.157	0.157	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)	24.561	8.069	31.653
(4) Current Liabilities
(a) Short term borrowings	53.231	59.850	40.437
(b) Trade payables	240.155	178.146	110.946
(c) Other current liabilities	7.190	46.469	11.342
(d) Short-term provisions	1.697	5.617	0.000
Total Current Liabilities (4)	302.273	290.082	162.725
TOTAL	402.846	368.220	259.072
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	53.041	62.225	68.697
(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	4.944
(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	53.041	62.225	73.641
(2) Current assets
(a) Current investments	8.825	7.414	0.000
(b) Inventories	88.667	55.443	18.772
(c) Trade receivables	92.805	99.406	93.010
(d) Cash and cash equivalents	15.791	8.324	1.166
(e) Short-term loans and advances	0.000	0.000	72.483
(f) Other current assets	143.717	135.408	0.000
Total Current Assets	349.805	305.995	185.431
TOTAL	402.846	368.220	259.072

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Sales	404.253	337.260	290.711
		Other Income	1.626	0.652	1.001
		TOTAL	405.879	337.912	291.712
Less	EXPENSES
		Cost of Materials Consumed	263.979	236.091	201.343
		Direct Expenses	110.099	69.778	59.303
		Sales and Administrative Expenses	13.600	13.753	12.219
		TOTAL	387.678	319.622	272.865
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		18.201	18.290	18.847
Less/ Add	DEPRECIATION/ AMORTISATION		9.601	10.284	12.087
	PROFIT BEFORE TAX		8.600	8.006	6.760
Less	TAX		2.658	2.473	2.089
	PROFIT AFTER TAX		5.942	5.533	4.671
	Earnings Per Share (Rs.)		4.00	3.72	3.14

Particulars	31.03.2014
Sales Turnover (Approximately)	480.000

The above information has been parted by Mr. Yakub (Accounts Manager)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PAT/Sales)	(%)	1.47	1.64	1.61
Return on Total Assets (PBT/Total Assets}	(%)	2.13	2.17	2.66
Return on Investment (ROI) (PBT/Networth)		0.11	0.11	0.10
Debt Equity Ratio (Total Debt/Networth)		1.02	0.97	1.11
Current Ratio (Current Asset/Current Liability)		1.16	1.05	1.14

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	14.868	14.868	14.868
Reserves & Surplus	49.826	55.201	61.144
Net worth	64.694	70.069	76.012
long-term borrowings	31.653	7.912	24.404
Short term borrowings	40.437	59.850	53.231
Total borrowings	72.090	67.762	77.635
Debt/Equity ratio	1.114	0.967	1.021

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	290.711	337.260	404.253
		16.012	19.864

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	290.711	337.260	404.253
Profit	4.671	5.533	5.942
	1.61%	1.64%	1.47%

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	Yes
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	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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90209660	17/12/2013 *	60,600,000.00	BANK OF BARODA	OPP. SWAROOP TALKIES, STATION ROAD, DURG, CHHATTISGARH - 491001, INDIA	B96066915
2	80030055	23/08/2004	18,500,000.00	BANK OF BARODA	GANJ PARA, DURG, CHHATTISGARH - 491001, INDIA	-
3	80030056	23/08/2004	18,500,000.00	BANK OF BARODA	GANJ PARA, DURG, CHHATTISGARH - 491001, INDIA	-

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
From Director	0.800	0.800
From Others	23.047	5.347
Total	23.847	6.147

OPERATIONS

The Company has sold items worth Rs. 404.253 Millions (Previous year Rs. 337.260 Millions) by. This is sizable increase as compared to previous year. They expected the growth in the same line in the years to come.

FIXED ASSETS:

· Building

· Computer

· Electrical Installation

· Factory Building

· Furniture and Fixture

· Land

· Vehicles

· Plant and Machinery

· Tools and Equipments

· Printer

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. 61.45
UK Pound	1	Rs. 97.76
Euro	1	Rs. 76.68

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	KAR
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--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
DEFAULTERS
--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.