MIRA INFORM REPORT

Report No. :	305926
Report Date :	07.02.2015

IDENTIFICATION DETAILS

Name :	AGNI STEELS PRIVATE LIMITED
Registered Office :	58/1, Avvaiyar Street, Teachers Colony, Erode – 638011, Tamilnadu
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	19.10.1989
Com. Reg. No.:	003060
Capital Investment / Paid-up Capital :	Rs.24.100 Millions
CIN No.: [Company Identification No.]	U27310TZ1989PTC003060
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCA7819F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of TMT Bars, Sponge Iron, Billets.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 964000
Status :	Satisfactory
Payment Behaviour :	Slow but
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. There seems some dip in the turnover and profit of the company during FY 2014. However, networth of the company is satisfactory. General financial position of the company is normal and acceptable for business dealings. Trade relations are reported as fair. Business is active. Payment terms are reported to be slow but correct. The company 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	ICRA
Rating	Fund Based Facilities = BBB-
Rating Explanation	Moderate degree of safety. It carry moderate credit risk.
Date	July, 2014

Rating Agency Name	ICRA
Rating	Non-Fund Based Facilities = A3
Rating Explanation	Moderate degree of safety. It carry higher credit risk.
Date	July, 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.

LOCATIONS

Registered Office :	58/1, Avvaiyar Street, Teachers Colony, Erode – 638011, Tamilnadu
Tel. No.:	Not Available
Mobile No.:	91-9965527274 (Mr. Sathu Bhaskar)
Fax No.:	Not Available
E-Mail :	agnierode@yahoo.com gnjayaram@gmail.com info@agnisteels.com
Website :	http://www.agnisteels.com
Factory 1 :	SF-562, Kavandanur Road, Ingur, Perundurai TK, Erode- 638058, Tamilnadu, India
Tel. No.:	91-4294-230229, 230211
Fax No.:	91-4294-230212
Factory 2:	S.F. No.632, Olapalayam Road, Ingur, Perundurai TK, Erode -638 052, Tamilnadu, India

DIRECTORS

AS ON 30.09.2014

Name :	Muthusamy Chinnasamy
Designation :	Director
Address :	Door No.2, Mohan Kumaramangalam St, Surampatty, Erode – 638009, Tamilnadu, India
Date of Birth/Age :	18.04.1957
Date of Appointment :	01.07.2010
DIN No.:	01659901
Name :	Ramanathan Krishnamurthy
Designation :	Director
Address :	No.1, Mari Amman Kiol Street, Kollampalayam, Erode – 638002, Tamilnadu, India
Date of Birth/Age :	31.12.1951
Date of Appointment :	01.07.2010
DIN No.:	01659946
Name :	Kaliannamudaliar Thangavelu
Designation :	Director
Address :	245/3, Aranmanaikattu Thottam, Nasiyanur Road, Veerappampalayam, Erode – 638011, Tamilnadu, India
Date of Birth/Age :	23.12.1954
Date of Appointment :	01.07.2010
DIN No.:	01733663

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares
Muthusamy Chinnasamy	388184
Ramanathan Krishnamurthy	541583
Kaliannamudaliar Thangavelu	465700
C Rajamani	90000
C. Sakthi Ganesh	182150
C Shanmugapariya	90000
T. Meenakshisundaram	11000
T Ponnammal	30000
M. Sathyabama	5000
M. Nithya	7000
K. Shenbagavalli	66000
K. Chandrakala	76500
Ratnakala	51500
K. Ramji	67750
T. Gunasundari	128500
T. Nanda Kumar	100333
T. Elango	108800
Total	2410000

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2014

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of TMT Bars, Sponge Iron, Billets.

Products :

Item Code No.	Product Description
72142090	other Containing indentations produced during the rolling process or twisted after rolling

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Available

Imports :

Not Available

Terms :

Not Available

PRODUCTION STATUS : NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Available

Customers :

Not Available

No. of Employees :

Not Available

Bankers :

· HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel W, Mumbai - 400013, Maharashtra, India

· The South Indian Bank Limited, Erode Branch, No 16, Veterinary Hospital Road, Near Gandhiji Road,, Erode - 638001, Tamilnadu, India

Facilities :

Secured Loan	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long-term Borrowings
Rupee term loans from banks [Hypothecation of Moveable and Immoveable properties, Stock and Book debts of the company]	0.958	1.854
Short-term borrowings
Working capital loans from banks [Hypothecation of Moveable and Immoveable properties, Stock and Book debts of the company]	240.710	234.762
Loans repayable on demand from others	0.000	3.771
Total	241.668	240.387

Banking Relations :
Auditors :
Name :	Karthikeyan and Jayaram Chartered Accountants
Address :	30, Bharathidasan Street, Teachers Colony ,Erode-11, Tamilnadu, India
PAN N Income-tax PAN of auditor or auditor's firm :	AADFG5927B
Memberships :	--
Collaborators :	--
Common Directors :	ASPL Ventures Private Limited, Erode U74990TZ2010PTC016266
An Entity in which company is Shareholder / Associate	· Arvind Green Infra Private Limited, Karur · Arun Wind Mills India Private Limited, Karur · Arvind Green Tech Private Limited, Karur · Aditya Natural Teak Private Limited, Karur · Amirthaa Wind Energy Private Limited, Karur · Amirthaa Green Infra Private Limited, Karur · N.S.L.Wind Power Private Limited, Hydrabad U40300TG2005PTC047541 · Kaveri Gas Power Limited, Chennai · Sree Sakthi Steels, CBE · Agni Steels SA Proprietary Limited, South Africa · Joyhi Agencies · KPR and Company

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
3,000,000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,410,000	Equity Shares	Rs.10/- each	Rs.24.100 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

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	24.100	24.100	24.100
(b) Reserves & Surplus	313.293	252.202	164.927
(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)	337.393	276.302	189.027
(3) Non-Current Liabilities
(a) long-term borrowings	4.938	5.550	37.114
(b) Deferred tax liabilities (Net)	56.138	57.458	57.548
(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)	61.076	63.008	94.662
(4) Current Liabilities
(a) Short term borrowings	244.214	240.173	205.451
(b) Trade payables	371.424	309.428	284.719
(c) Other current liabilities	79.785	160.240	119.812
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	695.423	709.841	609.982
TOTAL	1093.892	1049.151	893.671
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	331.545	355.123	378.166
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	14.089	14.701	13.925
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	7.320	5.755	4.605
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	81.955	88.218	17.371
(e) Other Non-current assets	0.405	0.448	48.791
Total Non-Current Assets	435.314	464.245	462.858
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	285.049	245.027	160.649
(c) Trade receivables	242.727	177.960	74.225
(d) Cash and cash equivalents	58.165	89.966	13.326
(e) Short-term loans and advances	41.004	35.740	10.141
(f) Other current assets	31.633	36.213	172.472
Total Current Assets	658.578	584.906	430.813
TOTAL	1093.892	1049.151	893.671

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	3295.021	3382.205	2663.208
	Other Income
	TOTAL	3295.021	3382.205	2663.208
Less	EXPENSES
	TOTAL	3168.439	3222.860	2568.733
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	126.582	159.345	94.475
Less/ Add	DEPRECIATION/ AMORTISATION	30.145	30.317	29.958
	PROFIT/ (LOSS) BEFORE TAX	96.437	129.028	64.517
	TAX	30.021	40.443	21.689
	PROFIT/ (LOSS) AFTER TAX	66.416	88.585	42.828
	Earnings / (Loss) Per Share (Rs.)	27.55	36.76	--

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	2.02	2.62	1.61
Operating Profit Margin (PBIDT/Sales)	(%)	3.84	4.71	3.55
Return on Total Assets (PBT/Total Assets}	(%)	8.99	12.54	7.37
Return on Investment (ROI) (PBT/Networth)		0.29	0.47	0.34
Debt Equity Ratio (Total Debt /Networth)		0.74	0.89	1.28
Current Ratio (Current Asset/Current Liability)		0.95	0.82	0.71

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	24.100	24.100	24.100
Reserves & Surplus	164.927	252.202	313.293
Net worth	189.027	276.302	337.393
long-term borrowings	37.114	5.550	4.938
Short term borrowings	205.451	240.173	244.214
Total borrowings	242.565	245.723	249.152
Debt/Equity ratio	1.283	0.889	0.738

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2663.208	3382.205	3295.021
		26.997	(2.578)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2663.208	3382.205	3295.021
Profit	42.828	88.585	66.416
	1.61%	2.62%	2.02%

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	No
10]	Designation of contact person	No
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	Yes

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long-term Borrowings
Rupee term loans from banks	0.356	0.812
Loans and advances from related parties	2.324	0.000
Other loans and advances	1.300	2.884
Short-term borrowings
Other loans and advances	3.505	1.641
Total	7.485	5.337

PERFORMANCE

The overall performance of the Company during the year can be considered satisfactory, turnover reduced by small amount (2.58%) and profit after taxation also reduced by 25 % during the year as compared to the preceding year. The net profit of Rs.66.416 Millions has been taken to Reserves and Surplus account standing at Rs.313.292 Millions (252.201 Millions at the beginning of the year).

The Sponge Iron Unit of the Company functioned throughout the year and served as an effective backward integration and the most of the production of sponge iron, was for captive use as feedstock for the steel unit. Lease arrangement of the production facility at Paramathi Velur continued during the year.

The power generated from the own wind mill is 100% for captive use and there is no sale of power to Tamilnadu Electricity Board. The net income for the year from the wind mill segment was Rs.2.618 Millions.

The dividend as recommended by the Board, if approved at the ensuing Annual General Meeting, will result in an outgo of Rs.1.205 Millions towards payment of dividend besides the dividend tax of Rs. 0.204 Million.

FINANCE

No fresh shares were allotted during the year and the paid up capital remains unchanged at Rs. 24.100 Millions as at the beginning of the year (Authorized Capital: Rs. 30.000 Millions).

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10185205	05/11/2009	3,303,456.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL  W, MUMBAI, MAHARASHTRA - 400013, INDIA	A73133589
2	90006183	20/10/2014 *	1,000,000,000.00	THE SOUTH INDIAN BANK LIMITED	T.S NO: 16, VETERINARY HOSPITAL ROAD,, ERODE, TAMI  L NADU - 638001, INDIA	C40508103

* Date of charge modification

FIXED ASSETS

· Land

· Buildings

· Office building

· Factory building

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Computer equipments

· Office equipment

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.61.74
UK Pound	1	Rs.94.65
Euro	1	Rs.70.79

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		43

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.