MIRA INFORM REPORT

Report Date :

19.09.2014

IDENTIFICATION DETAILS

Name :	R. L. STEELS AND ENERGY LIMITED (w.e.f 07.03.2008)
Formerly Known As :	R.L. STEELS LIMITED
Registered Office :	Mittal Bhawan, 70 Daryaganj, New Delhi - 110002
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	06.08.1985
Com. Reg. No.:	55-021690
Capital Investment / Paid-up Capital :	Rs.135.409 Millions
CIN No.: [Company Identification No.]	U27202DL1985PLC021690
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Alloy Steel.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (18)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has recorded some accumulated losses during 2013. Borrowings recorded by the company are huge. The rating is also constrained by the company moderate scale of operations in intensely competition steel industry and inherent cyclicality associated with the steel business. However, Business is active. Payment terms are reported to be slow. The company can be considered for business dealings on a secured trade terms and condition.

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	ICRA
Rating	Long Term=C
Rating Explanation	Poor credit quality and limited prospects of recovery.
Date	March, 2014

Rating Agency Name	ICRA
Rating	Short term=A4
Rating Explanation	Minimal degree of safety. It carry very high credit risk.
Date	March, 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. Raj Mohan
Designation :	Deputy General Manager Finance
Contact No.:	91-2431-661200

LOCATIONS

Registered Office :	Mittal Bhawan, 70 Daryaganj, New Delhi – 110002, India
Tel. No. :	Not Available
Fax No. :	Not Available
E-Mail :	corporate@rlsteels.com finance@rlsteels.com admin@rlsteels.com
Website :	www.rlsteels.com
Location:	Owned
Locality:	Commercial
Corporate Office :	Gut No. 78-81, Pangra Shivar, Paithan Road, Chitengaon, Aurangabad – 431107, Maharashtra, India
Tel. No. :	91-2431-661200 / 661202 / 251163 / 66 / 67 / 251453 / 251659
Fax No. :	91-2431251879
Branch Office :	Located At: ¨ Pune ¨ Faridabad ¨ Chennai

DIRECTORS

As on 28.09.2013

Name :

Mr. Raghunandanlal Gupta

Designation :

Director

Address :

58-59, Sector N-1, CIDCO, Aurangabad – 431001, Maharashtra, India

Date of Appointment :

25.03.1996

PAN No.:

AFXPG6333A

DIN No. :

00061861

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	L45209MH1985PLC035147	Delma Infrastructure Limited	Director	12/05/1986	12/05/1986	03/12/2012	Active	NO
2	L29220MH1989PLC052305	AKAR TOOLS LTD	Director	21/06/1989	21/06/1989	-	Active	NO
3	U27200MH1992PLC064744	GUPTA CON-CAST LIMITED	Director	31/03/1992	31/03/1992	-	Active	NO
4	U27100DL1988PTC212068	SANT EKNATH ROLLING MILLS PVT LTD	Director	01/03/1996	01/03/1996	-	Active	NO
5	U27202DL1985PLC021690	R. L. STEELS & ENERGY LIMITED.	Director	25/03/1996	25/03/1996	-	Active	NO
6	U27100MH1988PTC045799	AKAR INDUSTRIES PRIVATE LIMITED	Director	03/10/2004	03/10/2004	14/05/2012	Active	NO
7	U74999MH1990PTC055391	AURANGABAD FORGING PRIVATE LIMITED	Director	03/10/2004	03/10/2004	14/05/2012	Active	NO
8	U65990MH1987PTC044787	SHATRUNJI INVESTMENT PVT LTD	Director	03/10/2004	03/10/2004	-	Active	NO
9	U27310MH1987PTC044788	AKAR ALLOYS PVT LTD	Director	03/10/2004	03/10/2004	-	Active	NO
10	U70100MH1988PTC045806	LAVANAYA FINVEST PRIVATE LIMITED	Director	03/10/2004	03/10/2004	-	Active	NO

Name :

Mr. Nitin Gupta

Designation :

Director

Address :

58-59, Sector N-1, CIDCO, Aurangabad – 431001, Maharashtra, India

Date of Appointment :

30.06.2004

PAN No.:

AGZPG8390G

DIN No. :

00062041

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	U27202DL1985PLC021690	R. L. STEELS & ENERGY LIMITED.	Director	30/06/2004	30/06/2004	-	Active	NO
2	U27200MH1992PLC064744	GUPTA CON-CAST LIMITED	Director	28/09/2008	01/09/2008	-	Active	NO

Name :

Mr. Narendra Kumar Raghunandanlal Gupta

Designation :

Director

Address :

58-59, Sector N-1, CIDCO, Aurangabad – 431001, Maharashtra, India

Date of Appointment :

23.09.2008

DIN No. :

00062268

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	L45209MH1985PLC035147	Delma Infrastructure Limited	Director	12/05/1986	12/05/1986	03/12/2012	Active	NO
2	L29220MH1989PLC052305	AKAR TOOLS LTD	Director	21/06/1989	21/06/1989	-	Active	NO
3	U27200MH1992PLC064744	GUPTA CON-CAST LIMITED	Director	31/03/1992	31/03/1992	-	Active	NO
4	U27202DL1985PLC021690	R. L. STEELS & ENERGY LIMITED.	Director	23/09/2008	15/01/2008	-	Active	NO
5	U13100MH2011PTC215716	AKAR MINERALS PRIVATE LIMITED	Director	05/04/2011	05/04/2011	26/08/2012	Active	NO

Name :

Mr. Sunil Todi

Designation :

Director

Address :

Plot No. 40, Sectro N-1, CIDCO, Aurangabad – 431001, Maharashtra, India

Date of Appointment :

25.03.1996

DIN No. :

00061952

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	U27202DL1985PLC021690	R. L. STEELS & ENERGY LIMITED.	Director	25/03/1996	25/03/1996	-	Active	NO
2	L29220MH1989PLC052305	AKAR TOOLS LTD	Managing director	16/09/2010	15/09/2005	-	Active	NO
3	U28999WB2000PTC092308	REFORM TOOLS PRIVATE LIMITED	Director	11/03/2008	11/03/2008	13/10/2010	Active	NO
4	U34300PN1985PLC037909	TRINITY AUTO COMPONENTS LIMITED	Director	29/09/2010	09/08/2010	20/12/2010	Active	NO

Name :

Mr. Ashok Kumar Pradhan

Designation :

Nominee Director

Address :

H-2, Mantri Estate, CTS 56 and 57, S No. 547, Salisbury Park, Near Poonawala Jogging Park, Pune – 411037, Maharashtra, India

Date of Birth/Age :

08.07.1962

Date of Appointment :

14.02.2014

DIN No. :

06777880

KEY EXECUTIVES

Name :	Mr. Raj Mohan
Designation :	Deputy General Manager Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2013

Names of Shareholders	No. of Shares
Raghunaadan Lal Gupta	2819120
Usha Gupta	525640
Akar Tools Limited, India	1496540
Sushila Devi Gupta	1266000
Akar Industries Private Limited, India	1276680
Raghunandan Lal Gupta – HUF	1151540
Gupta Con-Cast Limited, India	872900
Shatrunji Investment Private Limited, India	341600
Sant Eknath Rolling Mills Private Limited, India	212000
Pan Gulf General Trading Company LLC, Dubai	173760
Shanghai Gulf General Trading Company LLC, Dubai	522560
Aurangabad Forgines Private Limited, India	397000
Lavanaya Finvest Private Limited, India	312600
Akar Alloys Private Limited, India	532900
Niharika Gupta	302500
Nitin Gupta	897600
N. K. Gupta	30000
Manji Vinimay Private Limited, India	150000
Siddeshwari Power Equipment Private Limited, India	160000
Baisakhi Tracom Private Limited, India	100000
Total	13540940

As on 28.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	5.14
Bodies corporate	43.22
Directors or relatives of Directors	51.64
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Alloy Steel.

Products :

Item Code No. (ITC Code)	Product Description
72071920	Mild steel (M.S.) Billets
72072020	Spring Steel Quality
72071220	Forging Quality

Exports :

Products :

Finished Goods

Countries :

¨ Gulf Countries

¨ Brazil

¨ Bangladesh

¨ Philippines

Imports :

Products :

Raw Material

Countries :

¨ UK

¨ USA

¨ Gulf countries

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

300 (Approximately)

Bankers :

¨ Canara Bank, Shahaganj Branch, Aurangabad - 431001, Maharashtra, India

¨ Industrial Development Bank Of India Limited, IDBI Towerwtc Complex, Cuffe Parade, Mumbai - 400005, Maharashtra, India

¨ Punjab National Bank, Plot No 316, N-3, CIDCO, Jalna Road, Aurangabad - 431005, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	1103.551	577.230
Loans taken for vehicles	2.761	5.348
SHORT TERM BORROWINGS
Loans repayable on demand from banks	679.626	1135.948
Total	1785.938	1718.526

Banking Relations :	--
Auditors :
Name :	A.K. Bagadia and Company Chartered Accountants
Address :	37, Sopariwala House,293, Princes Street, Marine Lines, Mumbai - 400002, Maharashtra, India
PAN No. :	AABPB7126M
Associate :	¨ Akar Tools Limited ¨ Sant Eknath Rolling Mills Private Limited ¨ Kathiawad Investments Private Limited ¨ Akar Alloys Private Limited ¨ Gupta Concast Limited, Waluj ¨ Shatrunji Investment Private Limited ¨ Akar Minerals Private Limited

CAPITAL STRUCTURE

As on 21.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13540940	Equity Shares	Rs.10/- each	Rs.135.409 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	135.409	115.534	93.792
(b) Reserves & Surplus	(24.926)	270.190	415.168
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	19.680	0.000	52.350
Total Shareholders’ Funds (1) + (2)	130.163	385.724	561.310
(3) Non-Current Liabilities
(a) long-term borrowings	1273.838	748.597	792.308
(b) Deferred tax liabilities (Net)	70.098	75.952	95.306
(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)	1343.936	824.549	887.614
(4) Current Liabilities
(a) Short term borrowings	679.626	1135.948	937.221
(b) Trade payables	623.401	538.387	447.703
(c) Other current liabilities	25.815	80.635	(60.071)
(d) Short-term provisions	0.000	0.000	14.920
Total Current Liabilities (4)	1328.842	1754.970	1339.773
TOTAL	2802.941	2965.243	2788.697
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	828.115	933.293	1034.525
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	353.699	300.494	136.009
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.303	0.303	0.304
(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	1182.117	1234.090	1170.838
(2) Current assets
(a) Current investments	60.000	54.000	60.000
(b) Inventories	613.991	658.305	579.094
(c) Trade receivables	725.680	771.470	757.010
(d) Cash and cash equivalents	75.317	80.922	80.833
(e) Short-term loans and advances	143.337	160.490	115.559
(f) Other current assets	2.499	5.966	25.363
Total Current Assets	1620.824	1731.153	1617.859
TOTAL	2802.941	2965.243	2788.697

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	3807.931	6312.682	5579.516
		Other Income	8.588	7.620	5.017
		TOTAL	3816.519	6320.302	5584.533
Less	EXPENSES
		Cost of Materials Consumed	2499.664	4149.887	3610.023
		Purchases of Stock-in-Trade	8.717	3.248	22.923
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	74.904	(25.266)	(169.069)
		Employees benefits expense	90.833	112.011	100.663
		Other expenses	1072.661	1881.326	1597.786
		TOTAL	3746.779	6121.206	5162.326
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		69.740	199.096	422.207
Less	FINANCIAL EXPENSES		258.717	302.028	220.407
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		(188.977)	(102.932)	201.800
Less	DEPRECIATION/ AMORTISATION		111.993	149.564	133.339
	PROFIT/ (LOSS) BEFORE TAX		(300.970)	(252.496)	68.461
Less	TAX		(5.853)	(484.442)	21.954
	PROFIT/ (LOSS) AFTER TAX		(295.117)	231.946	46.507
	FOB VALUE OF EXPORTS		780.504	1552.669	1716.740
	Earnings / (Loss) Per Share (Rs.)		(21.79)	17.13	4.96

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(7.73)	3.67	0.83
Net Profit Margin (PBT/Sales)	(%)	(7.90)	(4.00)	1.23
Return on Total Assets (PBT/Total Assets}	(%)	(12.29)	(9.48)	2.58
Return on Investment (ROI) (PBT/Networth)		(2.31)	(0.65)	0.12
Debt Equity Ratio (Total Debt/Networth)		15.01	4.89	3.08
Current Ratio (Current Asset/Current Liability)		1.22	0.99	1.21

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	93.792	115.534	135.409
Reserves & Surplus	415.168	270.190	(24.926)
Net worth	508.960	385.724	110.483
long-term borrowings	792.308	748.597	1273.838
Short term borrowings	937.221	1135.948	679.626
Total borrowings	1729.529	1884.545	1953.464
Debt/Equity ratio	3.398	4.886	17.681

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	5579.516	6312.682	3807.931
		13.140	(39.678)

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	5579.516	6312.682	3807.931
Profit	46.507	231.946	(295.117)
	0.83%	3.67%	(7.75%)

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	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	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Rupee term loans from others	72.500	72.500
Deferred sales tax loan	95.026	35.719
Loans and advances from related parties	0.000	57.800
Total	167.526	166.019

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10232054	11/10/2011 *	277,300,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, KRANTI CHOWK, AURANGABAD, Maharashtra - 431005, INDIA	B24886939
2	10226231	16/06/2010	135,000,000.00	PUNJAB NATIONAL BANK	AURANGPURA, AURANGABAD, Maharashtra - 431001, INDIA	A88242896
3	10208212	05/02/2010	170,000,000.00	THE SHAMRAO VITHAL CO-OPERATIVE BANK LIMITED	AURANGPURA, AURANGABAD, Maharashtra - 431001, INDIA	A81360307
4	10217856	04/09/2009	120,000,000.00	PUNJAB NATIONAL BANK	AURANGPURA, AURANGABAD, Maharashtra - 431001, INDIA	A75476010
5	10170441	20/07/2009	37,000,000.00	IDBI Bank Limited	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	A67402099
6	10095461	19/03/2008	150,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	A35369784
7	10094133	22/01/2013 *	2,865,300,000.00	PUNJAB NATIONAL BANK	PLOT NO 316, N-3, CIDCO, JALNA ROAD, AURANGABAD, Maharashtra - 431001, INDIA	B68741297
8	10091253	29/12/2012 *	2,865,300,000.00	PUNJAB NATIONAL BANK	PLOT NO 316, N-3, CIDCO, JALNA ROAD, AURANGABAD, Maharashtra - 431001, INDIA	B69030229
9	10058858	29/06/2007	150,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	A18447532
10	10036401	30/12/2006	157,500,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	A10306207
11	10044769	10/08/2011 *	371,000,000.00	CANARA BANK	SHAHAGANJ BRANCH, AURANGABAD, Maharashtra - 431001, INDIA	B20113866
12	90063614	06/02/1987	4,800,000.00	MAHARASHTRA STATE FINANCIAL CORPORATION	NEW EXCELSIOR BUILDING, A. K. NAYAK MARG; FORT, BOMBAY, Maharashtra - 400001, INDIA	-

* Date of charge modification

MARKET OVERVIEW

Being a core sector, steel industry tracks the overall economic growth in the long term. Also, steel demand, being derived from other sectors like automobiles, consumer durables and infrastructure, its fortune is dependent on the growth of these user industries.

The government over the last couple of years has continued to lay emphasis on continuation of infrastructure activities in the country. Increased spending on infrastructure will be a key positive for the steel sector as the demand for steel will get a boost. The continuation of tax sops to the housing sector is another positive for steel demand.

FIXED ASSETS

œ Land

œ Buildings

œ Plant and Equipment

œ Vehicles

œ Office Equipment

œ Computer 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 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.61.06
UK Pound	1	Rs.99.55
Euro	1	Rs.78.57

INFORMATION DETAILS

Information Gathered by :	PLK
Analysis Done by :	DIV
Report Prepared by :	NKT

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	3
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	--
--CREDIT LINES	1~10	--
--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		18

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.