MIRA INFORM REPORT

Report No. :	315634
Report Date :	07.04.2015

IDENTIFICATION DETAILS

Name :	KAKKAR COMPLEX STEELS PRIVATE LIMITED
Registered Office :	7 KM, Jalandhar Road, Vill. Chuck Gujran, Hoshiarpur – 146001, Punjab
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	20.11.1973
Com. Reg. No.:	16-003362
Capital Investment / Paid-up Capital :	Rs. 0.700 Million
CIN No.: [Company Identification No.]	U27109PB1973PTC003362
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of alloy Steels
No. of Employees :	400 (Approximately) (In Factory and Warehouse)

RATING & COMMENTS

MIRA’s Rating :

A (58)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 1400000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an old and well-established company having fine track. The company’s products are well received in the market. Overall fundamentals are good. The rating takes into consideration excellent profit margin and good net worth position of the company during year under review. Further, it takes note of the favorable gap between trade receivable and payable marked by good liquidity position. Rating also derives strength from promoter’s extensive experience in the industry and their presence more than four decades. Trade relations are good. Payment terms are reported to be regular and as per commitments. In the view of experienced promoters, subject can be considered normal 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

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	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 PARTED BY

Name :	Mr. Shami Kapoor
Designation :	Accountant
Contact No.:	91-1882-264106
Date :	06.04.2015

LOCATIONS

Registered Office / Factory :	7KM. Stone, Jalandhar Road, Vill. Chuck Gujran, Hoshiarpur – 146001, Punjab, India
Tel. No.:	91-1882-264469 / 264456 / 68
Fax No.:	91-1882-264469
E-Mail :	info@kakkarsteels.com sautamkakkar1978@yahoo.com
Website :	http:///www.kakkarsteel.com
Locality :	Industrial
Location :	Owned

DIRECTORS

As on : 29.09.2014

Name :

Mr. Dipan Kumar Kakkar

Designation :

Whole-time Director

Address :

B-100, Greater Kailash – 1, New Delhi – 110048, India

Date of Birth/Age :

15.06.1948

Qualification :

B.E. Civil

Date of Appointment :

30.03.1978

DIN No.:

00631377

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	U27109PB1973PTC003362	KAKKAR COMPLEX STEELS PVT LTD	Whole-time director	30/03/1978	30/03/1978	-	Active	NO
2	U67120PB1981PTC004447	SETH HARI CHAND SONS PVT LTD	Director	16/03/1981	16/03/1981	-	Active	NO
3	U29305PB1981PTC004444	DIPAN KUMAR AND SONS PVT LTD	Director	16/03/1981	16/03/1981	-	Active	NO
4	U67120PB1981PTC004446	RAGHUNANDAN PVT LTD	Director	16/03/1981	16/03/1981	-	Active	NO

Name :

Mr. Gautam Kakkar

Designation :

Whole-time Director

Address :

B-100, Greater Kailash – 1, New Delhi – 110048, India

Date of Birth/Age :

04.11.1978

Qualification :

MBA

Date of Appointment :

12.12.2001

DIN No.:

00631375

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	U27109PB1973PTC003362	KAKKAR COMPLEX STEELS PVT LTD	Whole-time director	12/12/2001	12/12/2001	-	Active	NO
2	U67120PB1981PTC004447	SETH HARI CHAND SONS PVT LTD	Director	31/05/2006	31/05/2006	-	Active	NO
3	U29305PB1981PTC004444	DIPAN KUMAR AND SONS PVT LTD	Director	01/08/2006	01/08/2006	-	Active	NO
4	U67120PB1981PTC004446	RAGHUNANDAN PVT LTD	Director	01/08/2006	01/08/2006	-	Active	NO

Name :

Ms. Alka Kakkar

Designation :

Whole-time Director

Address :

B-100, Greater Kailash – 1, New Delhi – 110048, India

Date of Birth/Age :

17.08.1953

Qualification :

Graduate

Date of Appointment :

30.09.1994

Din No.:

00631378

KEY EXECUTIVES

Name :	Mr. Shami Kapoor
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 29.09.2014

Names of Shareholders	No. of Shares	%age
Dipan Kumar (HUF)	142	20.29
Alika Kakkar	30	4.29
Dipan Kumar and Sons Private Limited	168	24.00
Raghunandan Private Limited	197	28.14
Gayatri Kakkar	97	13.86
Anushka Kakkar	66	9.43
Total	700	100.00

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	52.14
Directors or relatives of Directors	47.86
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Alloy Steels
Products :	Alloy Steels
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Alloy Steels
Countries :	Europe Germany Turkey
Imports :	Not Divulged
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

400 (Approximately) (In Factory and Warehouse)

Bankers :

Banker Name	HDFC Bank Limited
Branch Address	HDFC Bank Housesenapati Bapat Marg. Lower Parel (West), Mumbai – 400013, Maharashtra, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
Short Term Borrowing
Secured loans from Banks (Overdraft against F.D.R’s)	3.149	0.000
Total	3.149	0.000

Auditors :
Name :	Kalia and Co. Prop. Ashwani Kalia Chartered Accountant
Address :	237, Basant Avanue, Maqbool Roaad, Amritsar – 143001, Punjab, India
Tel. No.:	91-1882-227739
PAN No.:	AAWPK1927A
Memberships :	Not Available
Collaborators :	Not Available
Subsidiary Company :	Seth Hari Chand Sons Private Limited (CIN No.:U67120PB1981PTC004447)

CAPITAL STRUCTURE

As on : 29.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
3000	Equity Shares	Rs.1000/- each	Rs.3.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
700	Equity Shares	Rs.1000/- each	Rs.0.700 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	0.700	0.788	0.788
(b) Reserves & Surplus	488.701	447.798	391.496
(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)	489.401	448.586	392.284
(3) Non-Current Liabilities
(a) long-term borrowings	8.580	12.207	30.507
(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	15.014	13.283	11.467
Total Non-current Liabilities (3)	23.594	25.490	41.974
(4) Current Liabilities
(a) Short term borrowings	3.149	0.000	95.892
(b) Trade payables	36.127	29.488	29.738
(c) Other current liabilities	8.997	4.509	4.778
(d) Short-term provisions	89.041	76.407	51.213
Total Current Liabilities (4)	137.314	110.404	181.621
TOTAL	650.309	584.480	615.879
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	60.324	65.295	58.934
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	17.562	0.000	0.467
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	220.435	178.881	128.778
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	3.230	3.230	2.410
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	301.551	247.406	190.589
(2) Current assets
(a) Current investments	0.000	0.000	0.385
(b) Inventories	129.116	121.457	118.145
(c) Trade receivables	89.145	58.568	68.709
(d) Cash and cash equivalents	5.241	45.789	161.690
(e) Short-term loans and advances	124.659	110.533	75.561
(f) Other current assets	0.597	0.727	0.800
Total Current Assets	348.758	337.074	425.290
TOTAL	650.309	584.480	615.879

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	400.700	370.510	414.872
	Other Income	39.676	27.913	27.619
	TOTAL	440.376	398.423	442.491
Less	EXPENSES
	TOTAL	318.009	308.664	346.131
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	122.367	89.759	96.360
Less/ Add	DEPRECIATION/ AMORTISATION	8.922	8.264	7.501
	PROFIT/ (LOSS) BEFORE TAX	113.445	81.495	88.859
Less	TAX	29.821	25.195	23.438
	PROFIT/ (LOSS) AFTER TAX	83.624	56.300	65.421
Less	APPROPRIATIONS
	Transfer to General Reserve	83.600	56.300	65.500
	surplus	0.043	0.019	0.017
	Total	83.643	56.319	65.517
	Balance Carried to the B/S	(0.019)	(0.019)	(0.096)
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	241.363	225.261	233.526
	TOTAL EARNINGS	241.363	225.261	233.526
	Earnings / (Loss) Per Share (Rs.)	119462.86	80428.57	93458.57

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	20.87	15.20	15.77
Return on Total Assets (PBT/Total Assets}	(%)	27.51	20.09	18.26
Return on Investment (ROI) (PBT/Networth)		0.23	0.18	0.23
Debt Equity Ratio (Total Debt /Networth)		0.02	0.03	0.32
Current Ratio (Current Asset/Current Liability)		2.54	3.05	2.34

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	0.788	0.788	0.700
Reserves & Surplus	391.496	447.798	488.701
Net worth	392.284	448.586	489.401
long-term borrowings	30.507	12.207	8.580
Short term borrowings	95.892	0.000	3.149
Total borrowings	126.399	12.207	11.729
Debt/Equity ratio	0.322	0.027	0.024

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	414.872	370.510	400.700
		(10.693)	8.148

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	414.872	370.510	400.700
Profit	65.421	56.300	83.624
	15.77%	15.20%	20.87%

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

NOTE:

FINANCIAL RESULTS:

During the year under report the total turnover of the company increased to Rs. 400.700 Million from Rs. 370.500 Million in the immediately preceeding year. The results of the company for the year 31.03.2014 shows a net profit of Rs. 113.500 Million against Rs. 81.500 Million in the immediately preceeding year. The director are making constant efforts to reduce the cost of production and increase the turnover.

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
Long Term Borrowing
Term loans from Director	7.110	11.741
Term loan from Shareholders (Director’s Relation)	1.470	0.466
Total	8.580	12.207

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90167680	10/01/1983 *	2,500,000.00	PUNJAB NATIONAL BANK	CIVIL LINES, JALLANDHER, Punjab, INDIA	-
2	90170276	31/07/1985 *	14,200,000.00	PUNJAB NATIONAL BANK	CIVIL LINES, JALLANDHER, Punjab, INDIA	-

* Date of charge modification

FIXED ASSETS

• Land Building
• Plant and Machinery
• Rolling Mill Rolls
• Vehicles
• Furniture and Fixture
• Computer

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 records 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.62.44
UK Pound	1	Rs.98.15
Euro	1	Rs.77.38

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	SUM
Report Prepared by :	SUJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		58

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.