MIRA INFORM REPORT

Report No. :	314895
Report Date :	02.04.2015

IDENTIFICATION DETAILS

Name :	P.M.P. IRON AND STEELS (INDIA) LIMITED
Registered Office :	New No.2.Nelson Manickam Road, Aminijikarai, Chennai – 600029, Tamilnadu
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	12.05.1993
Com. Reg. No.:	18-025045
Capital Investment / Paid-up Capital :	Rs.19.309 Million
CIN No.: [Company Identification No.]	U27105TN1993PLC025045
TAN No.: [Tax Deduction & Collection Account No.]	CHEP01079B
PAN No.: [Permanent Account No.]	AAACP4252A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in manufacturing of all kinds of steel.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 320000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Profitability of the company seems to be low during 2014. However, general financial position of the company seems to be decent. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Not Available

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. Selva Kumar
Designation :	Manager
Contact No.:	91-44-23745202
Date :	31.03.2015

LOCATIONS

Registered / Head Office :	New No.2, Nelson Manickam Road, Aminijikarai, Chennai – 600029, Tamilnadu, India
Tel. No.:	91-44-23745202 / 23745203 / 42184948
Fax No.:	91-44-23746612
E-Mail :	pmpvenkat@gmail.com
Factory :	# 295, G.N.T. Road, Peravalur Village, Chinnambedu Post, Ponneri (TK), Ponneri , Thiruvallur – 601204, Tamilnadu, India
Tel. No.:	91-44-27984190

DIRECTORS

AS ON 29.09.2014

Name :

Mr. Elumalai Venkatachalam

Designation :

Managing Director

Address :

No: 19, Valliammal Street,, Kilpauk, Chennai – 600010, Tamilnadu, India

Date of Birth/Age :

20.02.1965

Date of Appointment :

12.05.1993

DIN No.:

00416737

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	U27104TN1984PLC010699	KUMARAGIRI STEEL LTD	Director	27/08/1987	27/08/1987	01/11/2007	Strike off	NO
2	U27105TN1993PLC025045	P.M.P. IRON AND STEELS (INDIA) LIMITED	Managing director	12/05/1993	12/05/1993	-	Active	NO
3	U40108TN2005PTC056657	HERITAGE WIND POWER COMPANY PRIVATE LIMITED	Director	20/06/2005	20/06/2005	21/11/2011	Active	NO
4	U15311TN2001PTC046534	PMP INDIA AGRO FOODS PRIVATE LIMITED	Director	05/10/2007	05/10/2007	-	Active	NO
5	U27310TN2008PTC067341	JAIHIND STRUCTURALS PRIVATE LIMITED	Director	05/10/2011	05/10/2011	-	Active	NO

Name :

Mr. Palaniappan Venkatachalam Rajeswari

Designation :

Director

Address :

No: 19, Valliammal Street,, Kilpauk, Chennai – 600010, Tamilnadu, India

Date of Birth/Age :

20.05.1973

Date of Appointment :

03.05.2000

DIN No.:

00417074

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	U27105TN1993PLC025045	P.M.P. IRON AND STEELS (INDIA) LIMITED	Director	03/05/2000	03/05/2000	-	Active	NO
2	U40108TN2005PTC056657	HERITAGE WIND POWER COMPANY PRIVATE LIMITED	Director	20/06/2005	20/06/2005	21/11/2011	Active	NO
3	U15311TN2001PTC046534	PMP INDIA AGRO FOODS PRIVATE LIMITED	Director	05/10/2007	05/10/2007	-	Active	NO
4	U27310TN2008PTC067341	JAIHIND STRUCTURALS PRIVATE LIMITED	Director	05/10/2011	05/10/2011	-	Active	NO

Name :

Mr. Palaniammal Elumalai

Designation :

Director

Address :

No: 15, Syed Madar Sahib Street,, Shevapet, Salem – 636002, Tamilnadu, India

Date of Birth/Age :

30.04.1949

Date of Appointment :

03.05.2000

DIN No.:

00499378

KEY EXECUTIVES

Name :	Mr. Selva Kumar
Designation :	Manager

MAJOR SHAREHOLDERS

AS ON 29.09.2014

SHAREHOLDERS DETAILS FILE ATTACHED.

Equity Share Break up (Percentage of Total Equity)

AS ON 29.09.2014

Category	Percentage
Directors or relatives of Directors	85.74
Other top fifty shareholders	5.58
Others	8.68
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in manufacturing of all kinds of steel.
Products :	Steel
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Company Name :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark :	Not Divulged

Customers :

Company Name :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark :	Not Divulged

No. of Employees :

Information declined by the management

Bankers :

Banker Name :	Axis Bank Limited
Branch :	Corporate Banking Branch, Karumuthu Nilayam, No.192 Anna Salai, Chennai – 600002, Tamilnadu, India
Person Name :	Not Divulged
Contact Number :	Not Divulged
Name of Account Holder :	Not Divulged
Account Number :	Not Divulged
Account Since :	Not Divulged
Average Balance Maintained :	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan) :	Not Divulged
Account Operation :	Not Divulged
Remark :	Not Divulged

Facilities :

SECURED LOANS	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Term loans from Axis Bank Limited	12.195	28.887
Short Term Borrowings
Loans repayable on demand from Axis Bank Limited and Kotak Mahindra Bank Limited	210.850	173.667
Total	223.045	173.667

Banking Relations :	--
Auditors :
Name :	R. Rajkapoor Chartered Accountants
Address :	241, Mint Street, 3^rd Floor, Park Town, Chennai – 600003, Tamilnadu, India
PAN No.:	AAFPR4736D
Membership :	--
Related parties where control exist :	· Om Muruga Enterprises · ShriBalaji Steel Industries · JaihindStructurals Private Limited · Sri RAnga Industries · PMP India Agro Foods Private Limited

CAPITAL STRUCTURE

AS ON 29.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1930893	Equity Shares	Rs.10/- each	Rs.19.309 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	19.309	19.309	19.309
(b) Reserves & Surplus	92.053	89.267	77.912
(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)	111.362	108.576	97.221
(3) Non-Current Liabilities
(a) long-term borrowings	40.055	68.305	109.998
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(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)	40.055	68.305	109.998
(4) Current Liabilities
(a) Short term borrowings	210.850	173.667	112.878
(b) Trade payables	143.293	155.942	166.654
(c) Other current liabilities	25.942	12.475	7.690
(d) Short-term provisions	5.967	2.338	2.361
Total Current Liabilities (4)	386.052	344.422	289.583
TOTAL	537.469	521.303	496.802
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	121.616	133.719	150.966
(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	0.600	0.600	0.600
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	80.540	64.577	60.259
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	202.756	198.896	211.825
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	175.236	149.729	183.176
(c) Trade receivables	152.203	156.182	97.288
(d) Cash and cash equivalents	3.702	11.516	0.375
(e) Short-term loans and advances	3.572	4.980	4.138
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	334.713	322.407	284.977
TOTAL	537.469	521.303	496.802

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	996.998	1026.991	874.399
		Other Income	6.161	4.976	2.259
		TOTAL (A)	1003.159	1031.967	876.658
Less	EXPENSES
		Cost of Materials Consumed	632.354	618.858	552.918
		Purchase of Stock-in-trade	144.772	200.823	157.252
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade	13.190	2.816	(33.405)
		Employee Benefits Expenses	2.532	2.528	2.582
		Other Expenses	157.357	147.396	146.471
		TOTAL (B)	950.205	972.421	825.818
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		52.954	59.546	50.840
Less	FINANCIAL EXPENSES (D)		22.610	27.011	23.632
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		30.344	32.535	27.208
Less	DEPRECIATION/ AMORTISATION (F)		18.832	20.978	16.039
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		11.512	11.557	11.169
Less	TAX (H)		5.967	2.338	2.361
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		5.545	9.219	8.808
	EARNINGS IN FOREIGN CURRENCY		0.000	0.000	0.800
	Earnings Per Share (Rs.)		2.87	4.77	4.56

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	0.56	0.90	1.01
Operating Profit Margin (PBDIT/Sales)	(%)	5.31	5.80	5.81
Return on Total Assets (PBT/Total Assets)	(%)	2.14	2.22	2.25
Return on Investment (ROI) (PBT/Networth)		0.10	0.11	0.11
Debt Equity Ratio (Total Debt /Networth)		2.25	2.23	2.29
Current Ratio (Current Asset/Current Liability)		0.87	0.94	0.98

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Share Capital	19.309	19.309	19.309
Reserves & Surplus	77.912	89.267	92.053
Net worth	97.221	108.576	111.362
long-term borrowings	109.998	68.305	40.055
Short term borrowings	112.878	173.667	210.850
Total borrowings	222.876	241.972	250.905
Debt/Equity ratio	2.292	2.229	2.253

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Sales	874.399	1026.991	996.998
		17.451	(2.920)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Sales	874.399	1026.991	996.998
Profit	8.808	9.219	5.545
	1.01%	0.90%	0.56%

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	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	No
34]	External Agency Rating, if available	No

UNSECURED LOANS:

Particulars	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Loans and advances from related parties	11.025	11.025
Other loans and advances	16.835	28.393
Total	27.860	39.418

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90290805	10/07/2014 *	249,900,000.00	Axis Bank Limited	Corporate Banking Branch, Ground Floor, Karumuthu Nilayam, No. 192, Anna Salai, Chennai, Tamil Nadu - 600002, India	C32109860

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Vehicles

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.62.59
UK Pound	1	Rs.92.46
Euro	1	Rs.67.51

INFORMATION DETAILS

Information Gathered by :	REK
Analysis Done by :	RAS
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.