MIRA INFORM REPORT

Report No. :	317215
Report Date :	14.04.2015

IDENTIFICATION DETAILS

Name :		HINDUSTHAN LOHA LIMITED
Registered Office :		Shop No. 520, Progressive Point, Lalpur, New Dhamtari Road, Raipur – 492001, Chhattisgarh
Tel. No.:	91-
Country :		India
Financials (as on) :		31.03.2014
Date of Incorporation :		24.07.2013
Com. Reg. No.:		000983
Capital Investment / Paid-up Capital :		Rs. 53.250 Million
CIN No.: [Company Identification No.]		U27310CT2013PLC000983
TAN No.: [Tax Deduction & Collection Account No.]		Not Available
PAN No.: [Permanent Account No.]		AADCH2263G
Legal Form :		A Closely Held Public Limited Liability Company
Line of Business :		Trader of Iron and Steel Products.
No. of Employees :		10 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Status :	Relatively New Company
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a relatively new company establishing itself gradually. It is a part of the Agrasen Group. The company is into trading of iron and steel products. The rating takes into consideration extensive experience of the promoters in the industry and the funding support extended by them. However, the rating remains constrained on account of low track and low profit margin due to its trading nature of operations. Trade relations are improving. 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 rating = BB
Rating Explanation	Inadequate credit quality and high credit risk.
Date	February 16, 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. Bharat
Designation :	Accounts Manager
Contact No.:	91-771-4242000
Date :	13.04.2015

LOCATIONS

Registered Office :	Shop No. 520, Progressive Point, Lalpur, New Dhamtari Road, Raipur – 492001, Chhattisgarh, India
Tel. No.:	91-771-4242000
Fax No.:	91-771-4242012
E-Mail :	rahulmishraca@gmail.com
Warehouse :	Ring Road No. 2, Hirapur, Raipur, Chhattisgarh, India

DIRECTORS

AS ON 30.09.2014

Name :

Ganga Dhar Aggarwal

Designation :

Whole-time director

Address :

CO Shiv Steel, Near Shyam Plastic Boriya Road, Moti Nagar, Front of Goyal Pashu Ahhar, Raipur – 492001, Chhattisgarh, India

Date of Birth/Age :

14.02.1963

Qualification :

B.Com

Date of Appointment :

01.08.2013

PAN No.:

ABEPA9124G

DIN No.:

02274163

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	U27100CT2007PTC020362	AGRASEN ISPAT PRIVATE LIMITED	Director	02-04-2013	01-04-2008	01-10-2013	Active	NO
2	U70100CT2010PTC021880	AGRASEN REALTY PROJECTS PRIVATE LIMITED	Director	01-10-2012	01-10-2012	16-01-2014	Active	NO
3	U27310CT2013PLC000983	HINDUSTHAN LOHA LIMITED	Whole-time director	01-08-2013	24-07-2013	-	Active	NO

Name :

Ritu Agrawal

Designation :

Whole-time director

Address :

B4, Anand Vihar, Near Gulmohar Vatika, Mahavir Nagar, Raipur – 492001, Chhattisgarh, India

Date of Birth/Age :

02.07.1986

Qualification :

B.Com

Date of Appointment :

01.08.2013

PAN No.:

ATPPA5019B

DIN No.:

05155781

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	U27106CT2011PTC022508	AGRASEN ALLOYS PRIVATE LIMITED	Director	01-10-2011	01-10-2011	01-10-2012	Active	NO
2	U27106CT2006PTC020024	AGRAWAL CHANNEL MILLS PRIVATE LIMITED	Director	01-01-2013	01-01-2013	01-05-2013	Active	NO
3	U27310CT2013PLC000983	HINDUSTHAN LOHA LIMITED	Whole-time director	01-08-2013	24-07-2013	-	Active	NO

Name :

Puspa Devi Agarwal

Designation :

Director

Address :

B4, Anand Vihar, Near Gulmohar Vatika, Mahavir Nagar, Raipur – 492001, Chhattisgarh, India

Date of Birth/Age :

03.03.1963

Qualification :

B.Com

Date of Appointment :

01.11.2013

PAN No.:

AEBPA1039G

DIN No.:

05155796

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	U27100CT2010PTC021804	AGRASEN IRON AND STEELS PRIVATE LIMITED	Director	01-04-2013	01-10-2011	-	Active	NO
2	U70100CT2010PTC021880	AGRASEN REALTY PROJECTS PRIVATE LIMITED	Director	01-10-2012	01-10-2012	16-01-2014	Active	NO
3	U27310CT2013PLC000983	HINDUSTHAN LOHA LIMITED	Director	01-11-2013	01-11-2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Bharat
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares
Rujula Commotrade Private Limited, India	2270000
Suman Aggarwal	40000
Vikas Aggarwal	125000
Ganga Dhar Aggarwal	90000
Arvind Kumar Aggarwal	40000
Gayatri Agarwal	30000
Vipin Kumar Aggrawal	10000
Ritu Agrawal	10000
Puspa Devi Aggrawal	10000
Best Advisory Private Limited, India	1290000
Deluxe Abasan Private Limited, India	70000
Gazal Textiles and Finance Private Limited, India	300000
Jayton Trading Private Limited, India	210000
Mangalkamna Vinimay Private Limited, India	580000
O.D. Promoter’s and Credit Private Limited, India	150000
Sukhdhan Tieup Private Limited, India	100000
Total	5325000

AS ON 30.09.2014

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	93.33
Directors or relatives of directors	6.67
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of Iron and Steel Products.
Brand Names :	--
Agencies Held :	--
Exports :
Products :	--
Countries :	--
Imports :
Products :	--
Countries :	--
Terms :
Selling :	Cash, L/C and Credit
Purchasing :	Cash, L/C and Credit

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Mahamaya Steel Industries, Raipur
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

Wholesalers, Retailers and End Users

Reference:	V.R. Patil Vividh Vidyuth Nirman Private Limited, Karnataka
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

10 (Approximately)

Bankers :

Bank Name:	Central Bank of India
Branch:	Mid Corporate Branch, 1^st Floor, Block C, Bombay Market, G.E. Road, Raipur - 492001, Chhattisgarh, 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 A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks:	Not Divulged

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)
SHORT TERM BORROWINGS
Working capital loans from banks	123.855
Total	123.855

Auditors :
Name :	Rahul Mishra and Associates Chartered Accountants
Address :	C/O Shri R S Mishra (Advocate) Mishra Bhawan, Tatya Para Chowk, Raipur - 492001, Chhattisgarh, India
Tel. No.:	91-771-2236945/ 2533562
Fax No.:	91-771-4058092
E-Mail :	rahulmishraca@gmail.com
Income-tax PAN of auditor or auditor's firm :	ABJFS1094G
Associates :	· Agrasen Ispat Private Limited [U27100CT2007PTC020362] · Agrasen Realty Projects Private Limited [U70100CT2010PTC021880] · Best Advisory Private Limited [U74120WB1992PTC055064] · Rujula Commotrade Private Limited [U51909WB2012PTC187649] · Deluxe Abasan Private Limited [U45400WB2008PTC123698] · Jayton Trading Private Limited [U51909WB1995PTC073138] · Mangalkamna Vinimay Private Limited [U51909WB2010PTC141344] · Prayash Securities Private Limited [U45201WB1993PTC060374] · Sukhdhan Tieup Private Limited [U51909WB2008PTC125314] · Gazal Textiles and Finance Private Limited [U51311WB1992PTC057115]

CAPITAL STRUCTURE

AFTER 30.09.2014

Authorised Capital : Rs. 100.000 Million

Issued, Subscribed & Paid-up Capital : Rs. 86.063 Million

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
6,000,000	Equity Shares	Rs. 10/- each	Rs. 60.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5,325,000	Equity Shares	Rs. 10/- each	Rs. 53.250 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	53.250
(b) Reserves & Surplus	1.648
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	54.898
(3) Non-Current Liabilities
(a) Long-term borrowings	0.000
(b) Deferred tax liabilities (Net)	0.000
(c) Other long term liabilities	0.000
(d) long-term provisions	0.000
Total Non-current Liabilities (3)	0.000
(4) Current Liabilities
(a) Short term borrowings	123.855
(b) Trade payables	65.010
(c) Other current liabilities	1.215
(d) Short-term provisions	0.800
Total Current Liabilities (4)	190.880
TOTAL	245.778
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	0.000
(ii) Intangible Assets	0.000
(iii) Capital work-in-progress	0.000
(iv) Intangible assets under development	0.000
(b) Non-current Investments	0.000
(c) Deferred tax assets (net)	0.000
(d) Long-term Loan and Advances	0.100
(e) Other Non-current assets	0.300
Total Non-Current Assets	0.400
(2) Current assets
(a) Current investments	0.000
(b) Inventories	1.063
(c) Trade receivables	230.362
(d) Cash and cash equivalents	1.750
(e) Short-term loans and advances	12.103
(f) Other current assets	0.100
Total Current Assets	245.378
TOTAL	245.778

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014
	SALES
		Revenue from Operations	688.105
		Other Income	0.560
		TOTAL (A)	688.665
Less	EXPENSES
		Purchases of Stock-in-Trade	674.475
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(1.063)
		Employees benefits expense	0.364
		Other expenses	7.954
		TOTAL (B)	681.730
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6.935
Less	FINANCIAL EXPENSES (D)		4.486
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.449
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.000
	PROFIT BEFORE TAX (E-F) (G)		2.449
Less	TAX (H)		0.801
	PROFIT AFTER TAX (G-H) (I)		1.648
	Earnings Per Share (Rs.)		0.87

PARTICULARS	31.03.2015
Sales Turnover (Approximately)	1510.000

Expected Sales (2014-2015): Rs. 1600.000 Million

The above information has been parted by Mr. Bharat (Accounts Manager)

KEY RATIOS

PARTICULARS		31.03.2014
Net Profit Margin (PAT/Sales)	(%)	0.24
Operating Profit Margin (PBDIT/Sales)	(%)	1.01
Return on Total Assets (PBT/Total Assets}	(%)	1.00
Return on Investment (ROI) (PBT/Networth)		0.04
Debt Equity Ratio (Total Debt/Networth)		2.26
Current Ratio (Current Asset/Current Liability)		1.29

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 two years	Yes
12]	Profitability for last one year	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	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10452605	15/02/2015 *	230,000,000.00	CENTRAL BANK OF INDIA	MID CORPORATE FINANCE BRANCH, 1ST FLOOR, ACE GLOBAL, G.E. ROAD, RAIPUR, CHHATTISGARH -492001, INDIA	C47724380

* Date of charge modification

CORPORATE INFORMATION

Hindusthan Loha Limited (the company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company is mainly engaged in trading of Iron and Steel Products.

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. 62.37
UK Pound	1	Rs. 91.60
Euro	1	Rs. 66.49

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	SUM
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.