MIRA INFORM REPORT

Report No. :	315718
Report Date :	04.04.2015

IDENTIFICATION DETAILS

Name :	ARUN VYAPAR UDYOG PRIVATE LIMITED
Registered Office :	No.804, C-Block, Eighth Floor, Shivalaya Building, Ethiraj Salai, Egmore, Chennai – 600008, Tamilnadu
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	02.05.1990
Com. Reg. No.:	18-019117
Capital Investment / Paid-up Capital :	Rs.67.100 Million
CIN No.: [Company Identification No.]	U28999TN1990PTC019117
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AACCA0386L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and exporter of a range of steel products.
No. of Employees :	70 (Approximately)

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

Maximum Credit Limit :	USD 250000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating reflects company moderate financial risk profile marked by low reserves level and sharp decline in the profit of the company during FY 2014. However, trade relations are reported as fair. Business is active. Payment 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 – 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

Rating Agency Name	CRISIL
Rating	Long term= B+
Rating Explanation	High risk of default.
Date	4^th March, 2015

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. Kannal
Designation :	Marketing Manager
Contact No.:	91-9500099600
Date :	03.04.2015

LOCATIONS

Registered Office :	No.804, C-Block, Eighth Floor, Shivalaya Building, Ethiraj Salai, Egmore, Chennai – 600008, Tamilnadu, India
Tel. No.:	91-44-28220681 / 82
Mobile No.:	91-9500099600 (Mr. Kannal)
Fax No.:	91-44-28220683
E-Mail :	avyapar@gmail.com info@aruntmt.com
Website :	www.aruntmt.com
Area :	800 sq. ft.
Location :	Owned
Locality :	Commercial
Factory :	B-15, Sipcot Industrial Estate, Gummidipoondi,  Tiruvallur – 601201, Tamilnadu, India
Tel. No.:	91-44-27922766
Fax No.:	91-44-27924159

DIRECTORS

AS ON 29.09.2014

Name :

Mr. Umesh Madan

Designation :

Director

Address :

Flat No 7, Trishul Apartments, 34, North Boag Road, Chennai - 600017, Tamilnadu, India

Date of Birth/Age :

28.12.1962

Date of Appointment :

17.01.1991

DIN No.:

01040735

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	U28999TN1990PTC019117	ARUN VYAPAR UDYOG PRIVATE LIMITED	Director	17/01/1991	17/01/1991	-	Active	NO
2	U70101TN1995PTC033894	ARUN HAPPY HOMES P LTD	Director	27/11/1996	27/11/1996	30/08/2010	Active	NO
3	U27105TN1994PTC027428	ARUN SMELTERS PRIVATE LIMITED	Director	19/02/1999	19/02/1999	-	Active	NO
4	U28910TN1996PTC034760	ESTEEM ALLOY CASTINGS P LTD	Director	06/02/2000	06/02/2000	-	Active	NO
5	U27106TN2001PTC048064	SRI ANNAPURNA REROLLING PRIVATE LIMITED	Director	27/08/2010	27/08/2010	-	Active	NO

Name :

Mr. Deepak Madan

Designation :

Director

Address :

26, Victoria Crescent Road, IInd Floor, Chennai - 600105, Tamilnadu, India

Date of Birth/Age :

13.12.1962

Date of Appointment :

02.05.1990

DIN No.:

01040838

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	U28999TN1990PTC019117	ARUN VYAPAR UDYOG PRIVATE LIMITED	Director	02/05/1990	02/05/1990	-	Active	NO
2	U27105TN1994PTC027428	ARUN SMELTERS PRIVATE LIMITED	Director	29/04/1994	29/04/1994	-	Active	NO
3	U70101TN1995PTC033894	ARUN HAPPY HOMES P LTD	Director	19/12/1995	19/12/1995	16/11/2009	Active	NO
4	U28910TN1996PTC034760	ESTEEM ALLOY CASTINGS P LTD	Director	08/08/1997	08/08/1997	-	Active	NO

Name :

Mr. Ramachandran Manokaran

Designation :

Director

Address :

Old No.8/8, New No.23/8, 2^nd Main Road K.B. Nagar, Adyar, Chennai - 600020, Tamilnadu, India

Date of Birth/Age :

03.06.1950

Date of Appointment :

31.12.2013

DIN No.:

06795731

Name :

Mr. Subhash Chandra Goel Ramgopal Goel

Designation :

Director

Address :

173, Periyar EVR High Road, Kilpauk (North), Chennai - 600010, Tamilnadu, India

Date of Appointment :

25.10.2014

DIN No.:

01160239

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	U27104TN1988PTC015396	GOYAL METAL INDUSTRIES PRIVATE LIMITED	Director	24/02/1988	24/02/1988	-	Active	NO
2	U33111TN1947NPL000861	HINDUSTAN CHAMBER OF COMMERCE	Director	30/09/2008	30/09/2008	22/09/2009	Active	NO
3	U28999TN1990PTC019117	ARUN VYAPAR UDYOG PRIVATE LIMITED	Director	25/10/2014	25/10/2014	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Kannal
Designation :	Marketing Manager

MAJOR SHAREHOLDERS

AS ON 29.09.2014

Names of Shareholders	No. of Shares
Deepak Madan	4689390
Umesh Madan	55570
Navaneeth Kumar Madan	67230
Nisha Madan	81300
Deepak Madan HUF	402900
Umesh Madan HUF	160000
Navaneeth Madan HUF	7500
K.Venkataraman	500
Veenu Madan	200000
Mohan Lal Mehta	100
Usha Devi	100000
Govind Goel	500000
Navrattan Mittal & Namratta Mittal	75000
Motilal Gupta	110000
Neelam Gupta	50000
Bharat Modi	100
Ashok Kumar Miami	100
Rajan Sapra	100
Dhaneshwar singh	210000
R.Manoharan	100
Govindlal Pareek	100
Total	6709990

Equity Share Break up (Percentage of Total Equity)

AS ON 29.09.2014

Category	Percentage
Directors or relatives of Directors	70.72
Others	29.28
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and exporter of a range of steel products.
Products :	Steel Products
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :
Products :	Steel Products
Countries :	· Asian Countries · Gulf Countries · USA · Europe
Imports :	Not Divulged
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

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 :

70 (Approximately)

Bankers :

Banker Name :	The Federal Bank Limited
Branch :	Mount Road Branch, No:61,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 :	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
Rupee term loans from banks	15.595	19.799
Other loans and advances	4.069	3.218
Short Term Borrowings
Working capital loans from banks	184.140	188.327
Total	203.804	211.344

Banking Relations :	--
Auditors :
Name :	Sunil Patodia and Company Chartered Accountants
Address :	New No. 85, Old No. 43, Thambu Chetty Street, Chennai – 600001, Tamilnadu, India
PAN No.:	AAHFS6208H
Membership :	--
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	Sri annapurna rerolling private limited Arun smelters private limited

CAPITAL STRUCTURE

AS ON 29.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs.10/- each	Rs.75.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
670990	Equity Shares	Rs.10/- each	Rs.67.100 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	67.100	65.000	50.000
(b) Reserves & Surplus	21.595	20.393	0.059
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	1.100	0.000
Total Shareholders’ Funds (1) + (2)	88.695	86.493	50.059
(3) Non-Current Liabilities
(a) long-term borrowings	151.447	153.792	133.542
(b) Deferred tax liabilities (Net)	9.560	3.826	8.288
(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)	161.007	157.618	141.830
(4) Current Liabilities
(a) Short term borrowings	184.140	188.327	84.889
(b) Trade payables	121.199	61.786	176.564
(c) Other current liabilities	11.938	16.539	43.603
(d) Short-term provisions	3.639	6.052	4.681
Total Current Liabilities (4)	320.916	272.704	309.737
TOTAL	570.618	516.815	501.626
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	85.063	87.881	85.173
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	43.766	1.560	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.985	0.985	0.000
(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	20.754	18.227	22.750
Total Non-Current Assets	150.568	108.653	107.923
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	231.908	200.582	288.239
(c) Trade receivables	136.694	146.272	49.316
(d) Cash and cash equivalents	19.020	7.597	1.742
(e) Short-term loans and advances	7.722	23.083	9.066
(f) Other current assets	24.706	30.628	45.340
Total Current Assets	420.050	408.162	393.703
TOTAL	570.618	516.815	501.626

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	1833.090	2409.976
		Other Income	7.694	11.840
		TOTAL	1840.784	2421.816	1814.162
Less	EXPENSES
		Manufacturing Repairs	1813.842	2388.135	0.000
		Cost of Production	0.000	0.000	1741.339
		Indirect Cost	0.000	0.000	43.553
		TOTAL	1813.842	2388.135	1784.892
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		26.942	33.681	29.270
Less	DEPRECIATION/ AMORTISATION		16.367	15.197	12.759
	PROFIT/(LOSS) BEFORE TAX		10.575	18.484	16.511
Less	TAX		9.373	(1.850)	10.477
	PROFIT/(LOSS) AFTER TAX		1.202	20.334	6.034
	Earnings Per Share (Rs.)		1.79	--	--

Expected Sales (2014-2015): Rs.25.000 Million

The above information has been parted by Mr. Kannal (Marketing Manager)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	0.07	0.84	NA
Return on Total Assets (PBT/Total Assets)	(%)	2.01	3.59	3.29
Return on Investment (ROI) (PBT/Networth)		0.12	0.21	0.33
Debt Equity Ratio (Total Debt /Networth)		3.78	3.96	4.36
Current Ratio (Current Asset/Current Liability)		1.31	1.50	1.27

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	50.000	65.000	67.100
Reserves & Surplus	0.059	20.393	21.595
Share Application money pending allotment	0.000	1.100	0.000
Net worth	50.059	86.493	88.695
long-term borrowings	133.542	153.792	151.447
Short term borrowings	84.889	188.327	184.140
Total borrowings	218.431	342.119	335.587
Debt/Equity ratio	4.363	3.955	3.784

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
Total Income	1814.162	2421.816	1840.784
		33.495	(23.992)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Total Income	1814.162	2421.816	1840.784
Profit	6.034	20.334	1.202
	0.33%	0.84%	0.07%

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	Yes
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	Yes
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS:

Particulars	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Loans and advances from related parties	2.555	1.211
Other loans and advances	129.229	129.564
Total	131.784	130.775

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10259033	22/12/2010	1,183,000.00	Tata Capital Limited	One Forbes, Dr. V B Gandhi Marg, Fort, Mumbai, Maharashtra - 400001, India	B02963676
2	10165678	27/05/2009	1,522,000.00	Tata Capital Limited	One Forbes, Dr V B Gandhi Marg, Fort, Mumbai, Maharashtra - 400001, India	A65399461
3	90308472	10/08/2012 *	230,000,000.00	The Federal Bank Limited	No:61, Anna Salai, Mount Road, Chennai, Tamilnadu - 600002, India	B58002106
4	90303617	05/05/2004 *	10,000,000.00	The Federal Bank Ltd	Mount Raod Branch, 62 ;Mount Road, Chennai, Tamilnadu - 600002, India	-
5	90308469	13/05/1996 *	12,000,000.00	The Federal Bank Ltd	62; Anna Salai, Madras, Tamilnadu - 600002, India	-

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Office Equipment

· Computer

· 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 :	SNJ
Analysis Done by :	DIV
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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		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.