MIRA INFORM REPORT

Report Date :

10.10.2014

IDENTIFICATION DETAILS

Name :	NALWA STEEL AND POWER LIMITED
Registered Office :	28, Najafgarh Road, Delhi – 110015, New Delhi
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	24.02.1989
Com. Reg. No.:	A2-035212
Capital Investment / Paid-up Capital :	Rs. 50.000 Millions
CIN No.: [Company Identification No.]	U74899DL1989PLC035212
Legal Form :	A closely held public limited liability company.
Line of Business :	Offering Electric Power Generation Services.
No. of Employees :	Information declined by management.

RATING & COMMENTS

MIRA’s Rating :

A (65)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 21300000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a company promoted by “Jindal Steel and Power Limited”. It is a well established company having fine track. The company possesses a decent financial profile marked by favourable capital structure backed by zero term debt and its comfortable liquidity position. Management has reported a moderation in its sales during financial year 2013, largely due to higher job work from the promoting company. However, trade relations are fair. Business is active. Payment terms are reported as regular and as per commitments. In view of operational support extended by the promoters through its vast pool of experience and resources, the company can be considered for business dealings 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 – 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 wilfully 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	CARE
Rating	Long term bank facilities “A+”
Rating Explanation	Adequate degree of safety and low credit risk.
Date	November 26, 2013

Rating Agency Name	CARE
Rating	Short term bank facilities “A1”
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	November 26, 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 31-03-2014.

INFORMATION DENIED BY

Name :	Mr. Anuj Jaiswal
Designation :	Senior Manager in Finance
Contact No.:	91-9893596589
Date :	08.10.2014

LOCATIONS

Registered Office :	28, Najafgarh Road, Delhi – 110015, New Delhi, India
Telephone No.:	91-11-45021852
Fax No.:	91-11-45021828
Mobile No.:	91-9893596589 (Mr. Anuj Jaiswal)
E-Mail :	anuj.jaiswal@nalwa.com
Factory 1 :	B-1, Executive Block Taraimal Raigarh Gharghoda Road Chattisgarh – 496001, Madhya Pradesh, India
Tel. No.:	91-7762304700 (8 Lines)
Fax No.:	91-7762-304710/ 261490
E-Mail :	sales@nalwa.com

DIRECTORS

As On 30.09.2013

Name :

Sh. Pritam Singh Rana

Designation :

Whole Time Director

Address :

Bungalow No. JG-01, Jindalgarh, Jindal Steel And Power Limited, Kharsia Road, Raigarh – 496001, Chattisgarh, India

Date of Birth/Age :

01.01.1950

Date of Appointment :

29.09.2012

DIN No.:

00286236

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	L27105HR1979PLC009913	JINDAL STEEL AND POWER LIMITED	Whole-time director	27/09/2006	27/09/2006	01/04/2008	Active	NO
2	U74899DL1989PLC035212	NALWA STEEL AND POWER LIMITED	Whole-time director	29/09/2012	10/03/2012	-	Active	NO
3	U65993DL1984PLC018525	RAIGARH IRON INDUSTRIES LIMITED	Director	30/09/2013	01/01/2013	-	Active	NO

Name :

Sh. Damodar Mittal

Designation :

Director

Address :

C/o Jindal Steel and Power Limited, Kharsia Road, Raigarh – 496001, Chattisgarh, India

Date of Birth/Age :

22.11.1966

Date of Appointment :

29.01.2007

DIN No.:

00171650

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	U74910DL2005PTC132363	SUPERIOR MANPOWER SERVICES PRIVATE LIMITED	Director	20/03/2006	20/03/2006	23/01/2012	Active	NO
2	U74899DL1989PLC035212	NALWA STEEL AND POWER LIMITED	Director	29/01/2007	15/04/2006	-	Active	NO
3	U74920DL2006PTC146422	SHIKAR MANPOWER SERVICES PRIVATE LIMITED	Director	09/10/2007	31/01/2007	03/02/2012	Active	NO
4	U74920DL2006PTC146423	SUPERIOR FIRE AND SECURITY SERVICES PRIVATE LIMITED	Director	10/08/2007	31/01/2007	09/03/2010	Active	NO
5	U29292WB1989PLC047945	RAIGARH ELECTRODES LTD	Director	21/05/2007	21/05/2007	-	Active	NO

Name :

Sh. Atul Kumar Shiv Kumar Misra

Designation :

Director

Address :

D-3/1, Nand Niketan, Hazira Road, Surat – 394510, Gujarat, India

Date of Birth/Age :

01.07.1960

Date of Appointment :

29.09.2012

DIN No.:

05287505

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	U74899DL1989PLC035212	NALWA STEEL AND POWER LIMITED	Director	29/09/2012	29/05/2012	23/12/2013	Active	NO
2	U65993DL1984PLC018525	RAIGARH IRON INDUSTRIES LIMITED	Director	30/09/2013	01/01/2013	30/11/2013	Active	NO
3	U13100CT2013PLC000681	EVERBEST STEEL AND MINING HOLDINGS LIMITED	Director	04/01/2013	04/01/2013	28/01/2014	Active	NO

KEY EXECUTIVES

Name :	Sh. Anuj Jaiswal
Designation :	Secretary
Address :	C/o Nalwa Steel and Power Limited, Taraimal Gharghoda Road, Raigarh – 4960001, Chattisgarh, India.
Date of Birth/Age :	04.01.1973
Date of Appointment :	01.05.2007

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares	Percentage of Holding
M/s. Jindal Steel and Steel and Power Limited	2000000	40.00
M/s. Opelina Finance and Investment Limited	1350000	27.00
M/s. Gagan Infraenergy Limited	1199970	24.00
Sh. Naveen Jindal	330000	6.60
M/s. YNO Finvest Private Limited	10	0.00
M/s. Jindal Coal Private Limited	10	0.00
M/s. Minerals Management Services (India) Private Limited	10	0.00
Total	5000000	100.00

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	91.00
Other top fifty shareholders	9.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Offering Electric Power Generation Services.

Products :

Item Code No. (ITC Code)	Product Description
72.03.00	Sponge Iron
72.07.90	MS Billet
72.15.50	Wire Rod

GENERAL INFORMATION

No. of Employees :

Information declined by management.

Bankers :

· Punjab National Bank, ECE House: 28-A, Kasturbha Gandhi Marg, New Delhi – 110001, Delhi, India

· State Bank of India, Commercial Branch, Housing Board Colony, Fauji Nagar, Bhilai – 490001, Chattisgarh, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
SHORT TERM BORROWINGS
Other Loans and Advance	100.787	75.888
Total	100.787	75.888

Banking Relations :	--
Auditors :
Name :	M/s. S. S. Kothari Mehta and Company Chartered Accountants
Address :	146-149, Tribhuvan Complex, Ishwar Nagar, Mathura Road, New Delhi – 110065, Delhi, India.
PAN No.:	AABFS6730L

CAPITAL STRUCTURE

As On 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs. 10/- each	Rs. 70.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs. 10/- each	Rs. 50.000 Millions

FINANCIAL DATA

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	50.000	50.000	50.000
(b) Reserves & Surplus	5295.169	4428.277	3922.594
(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)	5345.169	4478.277	3972.594
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	265.287	272.424	278.613
(c) Other long term liabilities	0.000	37.902	31.637
(d) long-term provisions	54.297	0.000	0.000
Total Non-current Liabilities (3)	319.584	310.326	310.250
(4) Current Liabilities
(a) Short term borrowings	100.787	75.888	0.000
(b) Trade payables	278.068	249.922	626.964
(c) Other current liabilities	116.750	593.910	292.534
(d) Short-term provisions	0.623	0.401	11.241
Total Current Liabilities (4)	496.228	920.121	930.739
TOTAL	6160.981	5708.724	5213.583
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2018.867	2000.755	2129.383
(ii) Intangible Assets	5.100	3.027	2.410
(iii) Capital work-in-progress	525.501	145.753	22.596
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	2.070	1.108	1.000
(c) Deferred tax assets (net)	0.000	0.000	44.647
(d) Long-term Loan and Advances	1040.701	971.195	0.000
(e) Other Non-current assets	2.968	4.172	2.038
Total Non-Current Assets	3595.207	3126.010	2202.074
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	892.184	821.906	1550.169
(c) Trade receivables	241.419	639.364	479.364
(d) Cash and cash equivalents	61.825	8.435	17.720
(e) Short-term loans and advances	1361.558	1105.502	955.292
(f) Other current assets	8.788	7.507	8.964
Total Current Assets	2565.774	2582.714	3011.509
TOTAL	6160.981	5708.724	5213.583

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	6119.293	7456.468	4031.488
		Other Income	73.729	70.468	60.312
		TOTAL (A)	6193.022	7535.936	4091.800
Less	EXPENSES
		Cost of Material Consumed	1775.960	3814.677	2135.566
		Purchase of Stock-in-Trade	105.476	0.000	0.000
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	177.683	378.059	(383.357)
		Employees benefits expenses	268.353	209.780	174.001
		Other expenses	2590.512	2320.806	1498.700
		TOTAL (B)	4917.894	6723.322	3424.910
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1275.038	812.614	666.890
Less	FINANCIAL EXPENSES (D)		14.715	12.315	12.932
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1260.323	800.299	653.958
Less/ Add	DEPRECIATION/ AMORTISATION (F)		180.567	175.305	175.971
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		1079.756	624.994	477.987
Less	TAX (H)		212.864	119.311	83.490
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		866.892	505.683	394.497
	Earnings / (Loss) Per Share (Rs.)		17.34	10.11	78.96

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	30.03.2011
PAT / Total Income	(%)	14.00	6.71	9.64
Net Profit Margin (PBT/Sales)	(%)	17.65	8.37	11.86
Return on Total Assets (PBT/Total Assets}	(%)	19.17	11.24	9.29
Return on Investment (ROI) (PBT/Networth)		0.20	0.14	0.12
Debt Equity Ratio (Total Liability/Networth)		0.02	0.02	0.00
Current Ratio (Current Asset/Current Liability)		5.17	2.81	3.24

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	50.000	50.000	50.000
Reserves & Surplus	3922.594	4428.277	5295.169
Net worth	3972.594	4478.277	5345.169
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	75.888	100.787
Total borrowings	0.000	75.888	100.787
Debt/Equity ratio	0.000	0.017	0.019

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	4031.488	7465.468	6119.293
		85.179	-18.032

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	4031.488	7465.468	6119.293
Profit	394.497	505.683	866.892
	9.79%	6.77%	14.17%

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 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	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

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10057969	22/08/2014 *	400,000,000.00	State Bank of India	Commercial Branch, Housing Board Colony,, Fauji N  agar, Bhilai, Chhattisgarh - 490001, INDIA	C21263322
2	80032125	21/06/2014 *	400,000,000.00	State Bank of India	COMMERCIAL BRANCH, HOUSING BOARD COLONY,, FAUJI N  AGAR,, BHILAI, Chhattisgarh - 490001, INDIA	C11531928

FIXED ASSETS

· Land

· Buildings

· Plant and Equipments

· Furniture and Fixture

· Vehicles

· Office Equipments

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. 61.03
UK Pound	1	Rs. 98.63
Euro	1	Rs. 77.74

INFORMATION DETAILS

Information Gathered by :	DIP
Report Prepared by :	JYO

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		65

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.