MIRA INFORM REPORT

Report Date :

17.11.2014

IDENTIFICATION DETAILS

Name :	SHREE BAJRANG SALES CORPORATION
Registered Office :	Dhanwatey Ashram, Sitabuldi, Nagpur – 4400002, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Year of Establishment :	1980
Capital Investment :	Rs. 6.989 Millions
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Trader of all kinds of Cast, Iron and Foundry.
No. of Employees :	6 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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 partnership concern having moderate track record. The company possesses a moderate financial profile marked by moderate capitalization level along with huge liabilities to tangible networth ratio. Management has witnessed a decent revenue base, whereas has reported a low profit margin during FY14 as a result of limited value adding nature of the business. However, trade relations seem to be fair. Business is active. Payment terms are reported as slow but correct. In view of long standing experience and bearing agency of a reputed company, it 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.

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. Y.K. Bhatia
Designation :	Manager
Contact No.:	91-9422102633
Date :	15.11.2014

LOCATIONS

Registered Office :	Dhanwatey Ashram, Sitabuldi, Nagpur – 4400002, Maharashtra, India
Tel. No.:	91-712-6666555
Mobile No.:	91-9422102633 (Mr. Y.K. Bhatia)
Fax No.:	Not Available
E-Mail :	ykb@bhartias.com accounts.ngp@bhartias.com
Area :	3000 Sq. ft.
Location :	Rented
Operating Office :	19-20, New Cotton Market, Nagpur - 440018, Maharashtra, India
Area :	4000 Sq. ft.
Location :	Owned

PARTNERS

Name :	Mr. Devendra Bhartia
Designation :	Partner
Name :	Mr. Surendra Bhartia
Designation :	Partner
Name :	Mrs. Renu Bhartia
Designation :	Partner
Name :	Mrs. Shasi Bhartia
Designation :	Partner

KEY EXECUTIVES

Name :	Mr. Y.K. Bhatia
Designation :	Manager

BUSINESS DETAILS

Line of Business :	Trader of all kinds of Cast, Iron and Foundry.
Agencies Held :	Kiloskar Ferrous Industries Limited
Exports :	--
Imports :	--
Terms :
Selling :	L/C, Cheque and Credit
Purchasing :	L/C, Cheque and Credit

GENERAL INFORMATION

Suppliers :

· S.B. Enterprises [Consitment agent of Kiloskar Ferrous Industries Limited]

Contact Person: Mr. Samir [Partner]

Contact No.: 91-9422102630

Since How Long Known: 10 Years

Experience: Company has good relations and payments are on time.

Maximum Limit Dealt: Rs. 250.000 Millions Yearly

Customers :

Others

· Mahindra Hinoday Industries Limited

Contact Person: Mr. Srikant Patil [Purchase Head]

Contact No.: 91-9657712236

Since How Long Known: 2 Years

Experience: Subject concern has good relations and products are delivered on time.

Maximum Limit Dealt: Rs. 5.000 Millions per month

No. of Employees :

6 (Approximately)

Bankers :

Bank Name	HDFC Bank Limited
Branch	Shankar Nagar, Nagpur, Maharashtra, India
Person Name (with Designation)	Mr. Parag Saoji [Regional Manager]
Contact Number	91-9850324944
Name of Account Holder	--
Account Number	--
Account Since (Date/ Year of A/c Opening)	--
Average Balance Maintained (Optional)	--
Credit Facilities Enjoyed (CC/OD/Term Loan)	--
Account Operation	--
Remarks: He denied to provide any opinion about the subject concern.

Facilities :

Cash Credit = Rs. 30.000 Millions

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
Cash Credit Limits Shankarnagar Nagpur [Against hypothecation of Debtors]	31.080	31.736
ICICI Bank Car Loan	0.699	0.000
Total	31.779	31.736

Auditors :
Name :	Jain Mukeshkumar and Company Chartered Accountants
Associates/Subsidiaries :	· Shree Bajrang Sales Private Limited · Bhartia Pulverses · Bhartia Non-Convention · Bhartia Alloys

CAPITAL STRUCTURE

AS ON 31.03.2014

Capital Investment :
Owned :	Rs. 6.989 Millions
Borrowed :	--
Total :	Rs. 6.989 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Expected Sales (2014-2015) : Rs. 1000.000 Millions

The above information has been parted by Mr. Y.K. Bhatia (Manager)

Note : Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Partners Capital		6.989	5.704
2] Share Application Money		0.000	0.000
3] Profit and Loss Account		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		6.989	5.704
LOAN FUNDS
1] Secured Loans		31.779	31.736
2] Unsecured Loans		60.441	55.243
TOTAL BORROWING		92.220	86.979
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		99.209	92.683
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.445	0.685
Capital work-in-progress		0.000	0.000
INVESTMENT		8.900	8.900
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000
	Sundry Debtors	88.644	82.919
	Cash & Bank Balances	0.888	0.395
	Other Current Assets	0.000	0.000
	Loans & Advances	0.218	0.123
Total Current Assets		89.750	83.437
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.000
	Other Current Liabilities	0.886	0.339
	Provisions	0.000	0.000
Total Current Liabilities		0.886	0.339
Net Current Assets		88.864	83.098
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		99.209	92.683

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013
	SALES
		Sales	927.746	539.600
		Other Income	1.602	0.309
		TOTAL	929.348	539.909
Less	EXPENSES
		Cost of goods sold	904.763	530.782
		Travelling and Conveyance Charges	0.419	0.174
		Payment to Banker	9.246	4.621
		Interest Others	1.458	0.000
		Salary	2.127	1.292
		Branch Expenses – Kolhapur	3.568	0.000
		Branch Expenses – Solapur	3.408	0.000
		Uniform Allowance	0.120	0.072
		Helper Allowance	0.180	0.096
		H.R.A	0.576	0.384
		Payment to Partners	0.837	0.650
		Other Expenses	0.344	0.631
		TOTAL	927.046	538.702
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		2.302	1.207
Less/ Add	DEPRECIATION/ AMORTISATION		0.260	0.135
	PROFIT BEFORE TAX		2.042	1.072
Less	TAX		1.430	0.760
	PROFIT AFTER TAX		0.612	0.312

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Net Profit Margin (PAT/Sales)	(%)	0.07	0.06
Return on Total Assets (PBT/Total Assets}	(%)	2.24	1.27
Return on Investment (ROI) (PBT/Networth)		0.29	0.18
Debt Equity Ratio (Total Debt/Networth)		13.20	15.25
Current Ratio (Current Asset/Current Liability)		101.30	246.13

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particulars	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Partners’ Capital	5.704	6.989
Profit and Loss Account	0.000	0.000
Net worth	5.704	6.989
Secured Loans	31.736	31.779
Unsecured Loans	55.243	60.441
Total borrowings	86.979	92.220
Debt/Equity ratio	15.249	13.195

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Sales	539.600	927.746
		71.932

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Sales	539.600	927.746
Profit	0.312	0.612
	0.06%	0.07%

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	No
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
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	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
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

PARTICULARS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
From Family Members and Relatives Interest Bearing	13.990
Non-Interest Bearing	46.451
Total	60.441	55.243

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 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. 61.65
UK Pound	1	Rs. 96.54
Euro	1	Rs. 76.70

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	SUB
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.