MIRA INFORM REPORT

Report Date :

10.09.2014

IDENTIFICATION DETAILS

Name :	GLOBAL ISPAT LIMITED
Registered Office :	Plot No. L-16, Cuncolim Industrial Estate, Cuncolim, Salcete, Goa - 403703
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	22.01.2004
Com. Reg. No.:	24-003373
Capital Investment / Paid-up Capital :	Rs.29.958 Millions
CIN No.: [Company Identification No.]	U01122GA2004PLC003373
TAN No.: [Tax Deduction & Collection Account No.]	BLRG05026A
PAN No.: [Permanent Account No.]	AAACG2873J
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Steel and Iron
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (28)

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 company is continuously incurring losses from its two years of operation. However, trade relations are reported as fair. Business is active. Payments terms 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

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities B+
Rating Explanation	High risk of default.
Date	3^rd April, 2014

Rating Agency Name	CARE
Rating	Short term bank facilities A4
Rating Explanation	Minimal degree of safety. It carry very high credit risk.
Date	3^rd April, 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 DENIED BY

Name :	Mr. Nirmal Gouv
Designation :	Accountant
Contact No.:	91-9764441093
Date :	01.09.2014

LOCATIONS

Registered Office :	Plot No. L-16, Cuncolim Industrial Estate, Cuncolim, Salcete, Goa - 403703, India
Tel. No.:	91-832-2763086 / 2866070 / 2866072
Mobile No.:	91-9764441093 (Mr. Nirmal Gouv)
Fax No.:	Not Available
E-Mail :	bm0164@obc.co.in globalispat@sancharnet.in
Factory :	M-18 and 19, Cuncolim Industrial Estate, Cuncolim, Salcete, Goa - 403703, India

DIRECTORS

As on 23.09.2013

Name :

Mr. Abhay Kumar Agarwal

Designation :

Director

Address :

Plot No.42, Karle River, Villa Benaulim Road, Margao – 403601, Goa, India

Date of Birth/Age :

20.07.1957

Date of Appointment :

22.01.2004

PAN No. :

ACTPA5661Q

DIN No.:

00524166

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	U01122GA2004PLC003373	GLOBAL ISPAT LIMITED	Director	22/01/04	22/01/04	-	Active	NO
2	U27108GA1993PLC001376	SUNRISE ELECTROMELT LIMITED	Director	09/03/04	09/03/04	19/02/08	Active	NO
3	U70101GA2009PTC006204	SIDDHI DAMODAR REAL ESTATE PRIVATE LIMITED	Director	31/07/10	31/07/10	-	Active	NO

Name :

Mr. Kushal Agarwal

Designation :

Director

Address :

Plot No.42, Karle River, Villa Benaulim Road, Margao – 403601, Goa, India

Date of Birth/Age :

24.02.1985

Date of Appointment :

29.03.2008

PAN No. :

AGQPA8794H

DIN No.:

02085357

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	U01122GA2004PLC003373	GLOBAL ISPAT LIMITED	Director	29/03/08	29/03/08	-	Active	NO
2	U70101GA2009PTC006204	SIDDHI DAMODAR REAL ESTATE PRIVATE LIMITED	Director	21/10/09	21/10/09	-	Active	NO

Name :

Ms. Madhu Agarwal

Designation :

Additional Director

Address :

Plot No.42, Karle River, Villa Benaulim Road, Margao – 403601, Goa, India

Date of Birth/Age :

30.04.1959

Date of Appointment :

23.09.2013

PAN No. :

AAWPA3632Q

DIN No.:

02111516

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	U01122GA2004PLC003373	GLOBAL ISPAT LIMITED	Director	23/09/13	15/03/04	-	Active	NO
2	U70101GA2009PTC006204	SIDDHI DAMODAR REAL ESTATE PRIVATE LIMITED	Director	31/07/10	31/07/10	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Nirmal Gouv
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 23.09.2013

NOTE: SHAREHOLDING DETAILS FILE ATTACHED

As on 23.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	17.16
Directors or relatives of Directors	82.84
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Steel and Iron

GENERAL INFORMATION

No. of Employees :	Not Divulged
Bankers :	· Oriental Bank of Commerce, Dempo Tower, Patto Plaza, Panaji - 403001, Goa, India · Andhra Bank, Dr. A. B. Road, Panaji Branch, Panaji - 403001, Goa, India · City Bank · ICICI Bank

Banking Relations :	--
Auditors :
Name :	Shrinivas Nayak and Company Chartered Accountants
Address :	201-B, Mathias Plaza, 18th June Road, Panaji – 403001, Goa, India
Tel No. :	91-832-2420139
E-Mail :	Shrinivas_ca@rediffmail.com
PAN No. :	ABNPN1439Q

CAPITAL STRUCTURE

As on 31.03.2013

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
2995833	Equity Shares	Rs.10/- each	Rs.29.958 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	29.958	29.958	29.958
(b) Reserves & Surplus	41.891	44.750	71.451
(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)	71.849	74.708	101.409
(3) Non-Current Liabilities
(a) long-term borrowings	3.090	8.796	14.728
(b) Deferred tax liabilities (Net)	0.000	0.000	4.720
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	1.167	1.167	1.167
Total Non-current Liabilities (3)	4.257	9.963	20.615
(4) Current Liabilities
(a) Short term borrowings	186.174	198.956	86.634
(b) Trade payables	87.291	64.345	96.695
(c) Other current liabilities	3.150	4.950	1.400
(d) Short-term provisions	51.041	32.233	31.954
Total Current Liabilities (4)	327.656	300.484	216.683
TOTAL	403.762	385.155	338.707
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	32.431	31.774	34.260
(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	0.000
(c) Deferred tax assets (net)	9.301	12.323	0.000
(d) Long-term Loan and Advances	0.161	0.081	0.061
(e) Other Non-current assets	3.594	3.594	57.507
Total Non-Current Assets	45.487	47.772	91.828
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	238.762	237.120	158.548
(c) Trade receivables	26.398	22.042	39.159
(d) Cash and cash equivalents	67.287	47.754	12.075
(e) Short-term loans and advances	22.006	27.318	36.068
(f) Other current assets	3.822	3.149	1.029
Total Current Assets	358.275	337.383	246.879
TOTAL	403.762	385.155	338.707

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	883.750	917.128	707.346
		Other Income	18.774	22.224	3.766
		TOTAL	902.524	939.352	711.112
Less	EXPENSES
		Cost of Materials Consumed	659.098	762.606	556.666
		Purchases of Stock-in-Trade	6.575	1.521	1.907
		Increases / (Decreases) in Stock	3.270	(4.194)	11.176
		Employees benefits expense	6.560	6.627	4.099
		Exceptional Item	11.572	54.101	0.148
		Other expenses	181.332	135.175	110.880
		TOTAL	868.407	955.836	684.876
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		34.117	(16.484)	26.236
Less	FINANCIAL EXPENSES		27.065	22.505	14.839
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		7.052	(38.989)	11.397
Less/ Add	DEPRECIATION/ AMORTISATION		6.889	6.374	6.068
	PROFIT/ (LOSS) BEFORE TAX		0.163	(45.363)	5.329
Less	TAX		3.022	(18.662)	4.152
	PROFIT/ (LOSS) AFTER TAX		(2.859)	(26.701)	1.177
	IMPORTS
		Raw Materials	NA	82.754	13.037
	TOTAL IMPORTS		NA	82.754	13.037
	Earnings / (Loss) Per Share (Rs.)		(0.95)	(8.91)	0.39

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(0.32)	(2.84)	0.17
Net Profit Margin (PBT/Sales)	(%)	0.02	(4.95)	0.75
Return on Total Assets (PBT/Total Assets}	(%)	0.04	(12.17)	1.57
Return on Investment (ROI) (PBT/Networth)		0.00	(0.61)	0.05
Debt Equity Ratio (Total Debt/Networth)		2.63	2.78	1.00
Current Ratio (Current Asset/Current Liability)		1.09	1.12	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	29.958	29.958	29.958
Reserves & Surplus	71.451	44.750	41.891
Net worth	101.409	74.708	71.849
long-term borrowings	14.728	8.796	3.090
Short term borrowings	86.634	198.956	186.174
Total borrowings	101.362	207.752	189.264
Debt/Equity ratio	1.000	2.781	2.634

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)
Revenue from Operations	707.346	917.128	883.750
		29.658	(3.639)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from Operations	707.346	917.128	883.750
Profit	1.177	(26.701)	(2.859)
	0.17%	(2.91%)	(0.32%)

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	Yes
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	10346959	30/03/2012	867,000.00	ORIENTAL BANK OF COMMERCE	DEMPO TOWER, PATTO PLAZA, PANAJI, Goa - 403001, INDIA	B36764983
2	10297059	11/10/2013 *	243,500,000.00	ORIENTAL BANK OF COMMERCE	DEMPO TOWER, PATTO BRANCH, PANAJI, Goa - 403001, INDIA	B90734120
3	90077561	07/08/2008 *	126,300,000.00	Andhra Bank	Panaji Branch, Panaji, Goa - 403001, INDIA	A45918984

* Date of charge modification

FIXED ASSETS

œ Leasehold Land

œ Factory Building

œ Office Building

œ Plant and Machinery

œ Furniture and Fixture

œ Borewell

œ Computers

œ Vehicles

œ Motor Cycle

œ Office Equipment

œ Laboratory Equipment

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.60.43
UK Pound	1	Rs.97.25
Euro	1	Rs.77.93

INFORMATION DETAILS

Information Gathered by :	SUV
Analysis Done by :	DIV
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.