MIRA INFORM REPORT

Report No. :	306324
Report Date :	.02.2015

IDENTIFICATION DETAILS

Name :	HINDUSTHAN CALCINED METALS PRIVATE LIMITED
Registered Office :	60/356-A, Modi Bhavan, Hospet Road, Allipura, Bellary – 583105, Karnataka
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	16.09.2003
Com. Reg. No.:	08-032571
Capital Investment / Paid-up Capital :	Rs. 72.000 Millions
CIN No.: [Company Identification No.]	U13209KA2003PTC032571
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCL2389R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Sponge Iron.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 360000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating takes into consideration company’s improved operational risk profile marked by profit achieved from its operations during 2014 and sound liquidity position of the company. 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 PARTED BY

Name :	Mr. Surendra
Designation :	Account Manager
Contact No.:	91-8392-237666
Date :	02.02.2015

LOCATIONS

Registered Office :	60/356-A, Modi Bhavan, Hospet Road, Allipura, Bellary – 583105, Karnataka, India
Tel. No.:	91-8392-237666 / 242424
Fax No.:	91-8392-244675
E-Mail :	raghava_3012@rediffmail.com modi_sk@rediffmail.com hcmp1123@rediffmail.com
Plant :	Near VGM Camp, Belegal Village Tumti Road, Bellary, Karnataka, India

DIRECTORS

AS ON 05.09.2015

Name :

Mr. Santosh Kumar Modi

Designation :

Managing Director

Address :

36/28, Modi Niketan, Cantonment Infantry Road, Bellary – 583103, Karnataka, India

Date of Birth/Age :

15.01.1951

Date of Appointment :

29.10.2003

DIN No. :

01653861

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	U13100KA1967PTC001659	VIBHUTIGUDDA MINES PRIVATE LIMITED	Director	29/04/1979	29/04/1979	-	Active	NO
2	U11100KA1980PTC004006	KPF PRIVATE LIMITED	Director	24/11/1980	24/11/1980	-	Active	NO
3	L27101TG1983PLC004225	UNI-METAL ALLOYS LIMITED	Director	29/10/1984	29/10/1984	01/10/2007	Active	NO
4	U13100KA1985PTC006822	BELLARY IRON ORES PRIVATE LIMITED	Managing director	09/04/1985	09/04/1985	-	Active	NO
5	L85110KA1993PLC014691	SILKTEX LIMITED	Director	23/01/2002	23/01/2002	15/02/2012	Active	NO
6	U13209KA2003PTC032571	HINDUSTHAN CALCINED METALS PRIVATE LIMITED	Managing director	29/10/2003	29/10/2003	-	Active	NO
7	U45400TG2008PTC057125	SKYLINE SHELTERS PRIVATE LIMITED	Additional director	30/09/2009	19/02/2008	-	Active	NO
8	U55101TG2009PTC063757	ESPIRIT HOTELS PRIVATE LIMITED	Director	28/09/2011	24/09/2010	-	Active	NO
9	U27310KA2010PTC055589	BIOP STEELS & POWER PRIVATE LIMITED	Director	20/10/2010	20/10/2010	-	Active	NO
10	U45200WB2011PTC158638	SWARN REAL ESTATES PRIVATE LIMITED	Director	08/04/2011	08/04/2011	-	Active	NO
11	U70109WB2011PTC163260	SM CONCLAVE PRIVATE LIMITED	Director	23/06/2011	23/06/2011	-	Active	NO
12	U51909WB2008PTC124464	SHIVAM DEALCOM PRIVATE LIMITED	Director	02/11/2011	02/11/2011	-	Active	NO
13	U74900WB2012PTC186226	SWARN CORP PRIVATE LIMITED	Director	26/09/2012	26/09/2012	-	Active	NO
14	U70101WB1996PTC081857	QUEEN PROPERTIES PRIVATE LIMITED	Director	23/04/2013	23/04/2013	-	Active	NO
15	U45400WB2011PTC166750	NATURAL AWAS PRIVATE LIMITED	Director	15/01/2014	15/01/2014	-	Active	NO

Name :

Mr. Manju Modi

Designation :

Director

Address :

36/28, Modi Niketan, Cantonment Infantry Road, Bellary – 583103, Karnataka, India

Date of Birth/Age :

23.06.1952

Date of Appointment :

29.10.2003

DIN No. :

01653874

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	U13100KA1985PTC006822	BELLARY IRON ORES PRIVATE LIMITED	Director	25/04/1998	25/04/1998	-	Active	NO
2	U13100KA1967PTC001659	VIBHUTIGUDDA MINES PRIVATE LIMITED	Director	25/04/1998	25/04/1998	-	Active	NO
3	U11100KA1980PTC004006	KPF PRIVATE LIMITED	Director	25/04/1998	25/04/1998	-	Active	NO
4	U13209KA2003PTC032571	HINDUSTHAN CALCINED METALS PRIVATE LIMITED	Director	29/10/2003	29/10/2003	-	Active	NO
5	U70102TG2006PTC051232	KAMALA INTERNATIONAL EXIM PRIVATE LIMITED	Director	30/09/2008	01/06/2008	30/03/2013	Active	NO
6	U27310KA2010PTC055589	BIOP STEELS & POWER PRIVATE LIMITED	Director	20/10/2010	20/10/2010	-	Active	NO
7	U45200WB2011PTC158638	SWARN REAL ESTATES PRIVATE LIMITED	Director	08/04/2011	08/04/2011	-	Active	NO
8	U70101WB1996PTC081857	QUEEN PROPERTIES PRIVATE LIMITED	Director	23/04/2013	23/04/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Surendra
Designation :	Account Manager

MAJOR SHAREHOLDERS

As on 31.03.2014

Names of Shareholders	No. of Shares	Percentage of Holding
Santosh Kumar Modi	3600000	50.00
Manju Modi	3600000	50.00
Total	7200000	100.00

As on 05.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Sponge Iron.
Products :	Not Divulged
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

PRODUCTION STATUS: Not Available

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 :

Information declined by the management.

Bankers :

Banker Name	State Bank Of India
Branch Address	Commercial Branch, Station Road, Bellary – 583101, Karnataka, 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

Auditors :
Name :	Badri and Company Chartered Accountants
Address :	16/14 Shri Gowri", III Floor, Old NBT Road, Anantapur Road, Near Old HP Gas Office, Bellary – 583101, Karnataka, India
PAN No.:	AACFB2655G
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
7200000	Equity Shares	Rs.10/- each	Rs.72.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7200000	Equity Shares	Rs.10/- each	Rs. 72.000 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	72.000	72.000	72.000
(b) Reserves & Surplus	54.629	30.543	44.080
(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)	126.629	102.543	116.080
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	1.542	1.972	2.237
(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)	1.542	1.972	2.237
(4) Current Liabilities
(a) Short term borrowings	87.866	101.383	80.856
(b) Trade payables	84.704	52.915	30.207
(c) Other current liabilities	7.763	11.601	4.710
(d) Short-term provisions	2.811	7.274	11.291
Total Current Liabilities (4)	183.144	173.173	127.064
TOTAL	311.315	277.688	245.381
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	78.837	85.023	96.161
(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	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	9.385	13.170	8.243
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	88.222	98.193	104.404
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	177.264	93.231	68.706
(c) Trade receivables	18.096	22.738	30.547
(d) Cash and cash equivalents	7.588	9.324	6.633
(e) Short-term loans and advances	0.030	0.213	0.187
(f) Other current assets	20.115	53.989	34.904
Total Current Assets	223.093	179.495	140.977
TOTAL	311.315	277.688	245.381

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	TOTAL INCOME	NA	NA
Less	TOTAL EXPENSES	NA	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	36.283	0.025
				NA
Less/ Add	DEPRECIATION/ AMORTISATION	12.445	13.826
	PROFIT/ (LOSS) BEFORE TAX	23.838	(13.801)
Less	TAX	(0.249)	(0.264)
	PROFIT/ (LOSS) AFTER TAX	24.087	(13.537)	(26.353)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	30.542	44.079	70.432
	Balance Carried to the B/S	54.629	30.542	44.079
	Earnings / (Loss) Per Share (Rs.)	33.45	(18.80)	(36.60)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	7.66	-4.97	0.00
Return on Investment (ROI) (PBT/Networth)		0.19	-0.13	0.00
Debt Equity Ratio (Total Debt /Networth)		0.69	0.99	0.70
Current Ratio (Current Asset/Current Liability)		1.22	1.04	1.11

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	72.000	72.000	72.000
Reserves & Surplus	44.080	30.543	54.629
Net worth	116.080	102.543	126.629
long-term borrowings	0.000	0.000	0.000
Short term borrowings	80.856	101.383	87.866
Total borrowings	80.856	101.383	87.866
Debt/Equity ratio	0.697	0.989	0.694

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	No
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	No
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	No
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:

The Registered office of the company has been shifted #174/B, Varuna Aishwaryacolony, on Bunts Bhavan, Bellary – 283104, Karnataka, India to the present address w.e.f. 26.11.2004

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
SHORT TERM BORROWINGS
Working capital loans from banks	87.866	101.383
Total	87.866	101.383

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80006292	24/11/2011 *	170,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, STATION ROAD, BELLARY, Karnataka - 583101, INDIA	B28835494

* Date of charge modification

FIXED ASSETS

• Land
• Buildings
• Plant and equipment
• Furniture and fixtures
• Vehicles
• Office equipment
• Computer equipments
• Other equipments

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. 61.68
UK Pound	1	Rs. 93.53
Euro	1	Rs. 70.75

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	KAR
Report Prepared by :	TRU

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.