MIRA INFORM REPORT

Report Date :

12.09.2014

IDENTIFICATION DETAILS

Name :	EAST INDIA SALES AND SERVICES PRIVATE LIMITED
Registered Office :	501 A, Diamond Prestige, 41A, AJC Bose Road, Kolkata – 700017, West Bengal
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	20.09.1993
Com. Reg. No.:	21-060160
Capital Investment / Paid-up Capital :	Rs.8.717 Millions
CIN No.: [Company Identification No.]	U29298WB1993PTC060160
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of Mild Steel, Alloy Ingots.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Small company
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a small company in its field. Its scale of activities are limited. The rating is constrained on account of company’s small scales of business operation and sharp dip in profitability of the company during financial year 2013. However, trade relations are reported to be fair. Business is active. Payment terms are slow but correct. The company can be considered for small 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.

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 DNIED

MANAGEMENT NON CO-OPERATIVE (91-9830038287)

LOCATIONS

Registered Office :	501 A, Diamond Prestige, 41 A, A.J.C Bose Road, Kolkata – 700017, West Bengal, India
Tel. No. :	91-33-401819000
Fax No. :	91-33-40181923
E-Mail :	eastindiakol@gmail.com

DIRECTORS

As on 30.09.2013

Name :

Mr. Rajeev Agarwal

Designation :

Director

Address :

6/1/3 , Queens Park Ballygunge, Kolkata – 700019, West Bengal, India

Date of Birth/Age :

11.11.1968

Date of Appointment :

20.09.1993

Voter ID No. :

DWK5067673

DIN No. :

00206299

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	U29298WB1993PTC060160	EAST INDIA SALES AND SERVICES PVT LTD	Director	20/09/1993	20/09/1993	-	Active	NO
2	U65992WB1996PTC077533	EAST INDIA FINANCIAL SERVICES PVT LTD	Director	01/10/2012	22/02/1996	-	Active	NO
3	U70103WB1998PTC087450	EAST INDIA HOLDINGS PRIVATE LIMITED	Director	06/07/1998	06/07/1998	-	Active	NO
4	U51909WB1996PTC076619	XEDD TRADING AND MARKETING PVT LTD	Director	12/07/2001	12/07/2001	28/12/2010	Active	NO
5	U36900WB2001PTC093743	KAGAZKAAR INDUSTRIES PRIVATE LIMITED	Director	17/09/2001	17/09/2001	-	Active	NO
6	U63022WB1949PTC017949	HIND ICE & COLD STOAGE PVT LTD	Director	30/03/2002	30/03/2002	13/08/2012	Active	NO
7	U27107MN1988PTC003129	MANIPUR BHARI ISPAT NIGAM PVT LTD	Director	20/03/2006	20/03/2006	-	Active	NO
8	U65929WB1996PTC077849	JM HOLDINGS PVT LTD	Director	30/04/2007	30/04/2007	01/08/2013	Active	NO
9	U74120WB2009PTC132872	BALASUR COLD STORAGE CO PRIVATE LIMITED	Director	18/02/2009	18/02/2009	28/12/2010	Active	NO
10	U65999WB1996PTC077520	MANIPUR FISCAL SERVICES PVT LTD	Director	01/10/2010	08/07/2010	-	Active	NO

Name :

Mr. Om Prakash Agarwal

Designation :

Director

Address :

6/1/3 , Queens Park Ballygunge, Kolkata – 700019, West Bengal, India

Date of Birth/Age :

01.04.1942

Date of Appointment :

20.09.1993

Voter ID No. :

WB/23/146/189420

DIN No. :

00844553

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	U27107MN1988PTC003129	MANIPUR BHARI ISPAT NIGAM PVT LTD	Director	29/11/1988	29/11/1988	-	Active	NO
2	U29298WB1993PTC060160	EAST INDIA SALES AND SERVICES PVT LTD	Managing director	20/09/1993	20/09/1993	-	Active	NO
3	U65999WB1996PTC077520	MANIPUR FISCAL SERVICES PVT LTD	Director	22/02/1996	22/02/1996	-	Active	NO
4	U70103WB1998PTC087450	EAST INDIA HOLDINGS PRIVATE LIMITED	Director	06/07/1998	06/07/1998	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares	%age
Om Prakash Agarwal	90453	10.38
Rajeev Agarwal	85600	9.82
East india financial services Private Limited, India	350000	40.15
Manipur Fiscal Services Private Limited, India	317000	36.37
Om Prakash Agarwal (HUF)	300	0.03
Sonia Agarwal	28250	3.24
Rajeev Agarwal (HUF)	100	0.01
Total	871703	100.00

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	76.52
Directors or relatives of Directors	23.48
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier of Mild Steel, Alloy Ingots.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

Vijaya Bank Brabourne Road Branch, 1, R N Mukherjee Road, Kolkata - 700001, West Bengal, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Kotak Mahindra Primus Limited	0.678	1.850
SHORT TERM BORROWINGS
HDFC Bank (E Chennai Facility)	24.145	21.301
Vijaya Bank	3.619	0.000
Total	28.442	23.151

Banking Relations :	--
Auditors :
Name :	Jain Saraogi and Company Chartered Accountants
Address :	1, Crooked Lane, Kolkata – 700069, West Bengal, India
Entities in which KMPI Relatives of KMP can Excise significant influence:	Ø East India Machines Company Ø J.M. Holding Private Limited, Manipur Ø Fiscal Services Private Limited, Manipur Motors Ø East India Financial Services (Private) Limited

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
871703	Equity Shares	Rs.10/- each	Rs.8.717 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	8.717	8.717	8.617
(b) Reserves & Surplus	16.575	16.296	9.550
(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)	25.292	25.013	18.167
(3) Non-Current Liabilities
(a) long-term borrowings	0.678	1.850	0.126
(b) Deferred tax liabilities (Net)	0.000	0.000	0.062
(c) Other long term liabilities	0.231	0.242	0.218
(d) long-term provisions	0.296	0.270	0.303
Total Non-current Liabilities (3)	1.205	2.362	0.709
(4) Current Liabilities
(a) Short term borrowings	27.858	21.367	4.568
(b) Trade payables	0.465	0.812	0.000
(c) Other current liabilities	7.058	1.558	2.485
(d) Short-term provisions	0.034	0.027	0.275
Total Current Liabilities (4)	35.415	23.764	7.328
TOTAL	61.912	51.139	26.204
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3.297	4.249	1.772
(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	4.588	4.589	4.589
(c) Deferred tax assets (net)	0.129	0.051	0.000
(d) Long-term Loan and Advances	5.697	5.608	2.624
(e) Other Non-current assets	0.000	0.337	0.144
Total Non-Current Assets	13.711	14.834	9.129
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	7.672	3.335	0.000
(c) Trade receivables	29.103	18.312	9.819
(d) Cash and cash equivalents	10.107	6.904	6.067
(e) Short-term loans and advances	1.319	7.754	1.189
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	48.201	36.305	17.075
TOTAL	61.912	51.139	26.204

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	10.209	5.751	5.457
		Other Income	1.525	1.853	1.867
		TOTAL (A)	11.734	7.604	7.324
Less	EXPENSES
		Purchase of traded goods	7.851	3.335	2.051
		Changes in inventories of finished goods, work-in-progress and stock in-trade	(4.337)	(3.335)	0.285
		Employee benefits expense	1.865	1.017	1.136
		Other expenses	3.057	1.931	1.151
		TOTAL (B)	8.436	2.948	4.623
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3.298	4.656	2.701
Less	FINANCIAL EXPENSES (D)		1.871	1.872	1.597
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.427	2.784	1.104
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.974	0.376	0.419
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		0.453	2.408	0.685
Less	TAX (H)		0.174	0.562	0.324
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		0.279	1.846	0.361
	Earnings / (Loss) Per Share (Rs.)		0.32	2.14	0.42

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	2.38	24.28	4.93
Net Profit Margin (PBT/Sales)	(%)	4.44	41.87	12.55
Return on Total Assets (PBT/Total Assets}	(%)	0.79	5.18	3.17
Return on Investment (ROI) (PBT/Networth)		0.02	0.10	0.04
Debt Equity Ratio (Total Debt/Networth)		1.13	0.93	0.26
Current Ratio (Current Asset/Current Liability)		1.36	1.53	2.33

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	8.617	8.717	8.717
Reserves & Surplus	9.550	16.296	16.575
Net worth	18.167	25.013	25.292
long-term borrowings	0.126	1.850	0.678
Short term borrowings	4.568	21.367	27.858
Total borrowings	4.694	23.217	28.536
Debt/Equity ratio	0.258	0.928	1.128

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	5.457	5.751	10.209
		5.388	77.517

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	5.457	5.751	10.209
Profit	0.361	1.846	0.279
	6.62%	32.10%	2.73%

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	No
10]	Designation of contact person	No
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	Yes
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	Yes
34]	External Agency Rating, if available	No

NOTE:

The registered office of the company has been shifted from 501, Swaika Centre, 4-A, Post- Pollock Street, District, Kolkata - 700001, West Bengal, India to the present address w.e.f. 02.01.2012

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
SHORT TERM BORROWINGS
Loans and advance from related parties	0.094	0.066
Total	0.094	0.066

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10061451	22/09/2009 *	267,600,000.00	VIJAYA BANK	BRABOURNE ROAD BRANCH, 1 & 2 OLD COURT HOUSE CORN ER, KOLKATA, West Bengal - 700001, INDIA	A71734099
2	90370684	09/10/2012 *	25,000,000.00	VIJAYA BANK	BRABOURNE ROAD BRANCH, 1, R N MUKHERJEE ROAD, KOL KATA, West Bengal - 700001, INDIA	B62324488
3	90383399	15/09/2000 *	600,000.00	STATE BANK OF INDIA	P.V.S. BUILDING, BANGALORE, Karnataka, INDIA	-
4	90383299	16/06/1981	205,000.00	KARNATAKA STATE FINANCIAL CORPORATION	SHANKARNARYANA BUILDING, M.G. ROAD, BANGALORE, Karnataka, INDIA	-

* Date of charge modification

FIXED ASSETS

œ Motor Car

œ Furniture and Fixtures

œ Office Premises

œ Parking Space

œ Office Equipments

œ Computer and Peripherals

œ Weighing Machine

œ A.C. Machine

œ Generator

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.60.91
UK Pound	1	Rs.98.66
Euro	1	Rs.78.63

INFORMATION DETAILS

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

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	3
--PROFITABILIRY	1~10	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.