MIRA INFORM REPORT

Report No. :	305863
Report Date :	06.02.2015

IDENTIFICATION DETAILS

Name :	GLOBAL ISPAT LIMITED
Registered Office :	Plot No. L-16, Cuncolim Industrial Estate, Cuncolim, Salcete, Goa - 403703
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	22.01.2004
Com. Reg. No.:	24-003373
Capital Investment / Paid-up Capital :	Rs.29.958 Millions
CIN No.: [Company Identification No.]	U01122GA2004PLC003373
TAN No.: [Tax Deduction & Collection Account No.]	BLRG05026A
PAN No.: [Permanent Account No.]	AAACG2873J
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Steel and Iron
No. of Employees :	Not Available

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 210000
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 profit margin and increased in the borrowings of the company. However, trade relations are reported as fair. Business is active. Payments 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	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.

LOCATIONS

Registered Office :	Plot No. L-16, Cuncolim Industrial Estate, Cuncolim, Salcete, Goa - 403703, India
Tel. No.:	91-832-2763086 / 2866070 / 2866072
Mobile No.:	91-9764441093 (Mr. Nirmal Gouv)
Fax No.:	Not Available
E-Mail :	bm0164@obc.co.in globalispat@sancharnet.in
Factory :	M-18 and 19, Cuncolim Industrial Estate, Cuncolim, Salcete, Goa - 403703, India

DIRECTORS

As on 22.09.2014

Name :

Mr. Abhay Kumar Agarwal

Designation :

Director

Address :

Plot No.42, Karle River, Villa Benaulim Road, Margao – 403601, Goa, India

Date of Birth/Age :

20.07.1957

Date of Appointment :

22.01.2004

PAN No. :

ACTPA5661Q

DIN No.:

00524166

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	U01122GA2004PLC003373	GLOBAL ISPAT LIMITED	Director	22/01/04	22/01/04	-	Active	NO
2	U27108GA1993PLC001376	SUNRISE ELECTROMELT LIMITED	Director	09/03/04	09/03/04	19/02/08	Active	NO
3	U70101GA2009PTC006204	SIDDHI DAMODAR REAL ESTATE PRIVATE LIMITED	Director	31/07/10	31/07/10	-	Active	NO

Name :

Mr. Kushal Agarwal

Designation :

Director

Address :

Plot No.42, Karle River, Villa Benaulim Road, Margao – 403601, Goa, India

Date of Birth/Age :

24.02.1985

Date of Appointment :

29.03.2008

PAN No. :

AGQPA8794H

DIN No.:

02085357

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	U01122GA2004PLC003373	GLOBAL ISPAT LIMITED	Director	29/03/08	29/03/08	-	Active	NO
2	U70101GA2009PTC006204	SIDDHI DAMODAR REAL ESTATE PRIVATE LIMITED	Director	21/10/09	21/10/09	-	Active	NO

Name :

Ms. Madhu Agarwal

Designation :

Additional Director

Address :

Plot No.42, Karle River, Villa Benaulim Road, Margao – 403601, Goa, India

Date of Birth/Age :

30.04.1959

Date of Appointment :

23.09.2013

PAN No. :

AAWPA3632Q

DIN No.:

02111516

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	U01122GA2004PLC003373	GLOBAL ISPAT LIMITED	Director	23/09/13	15/03/04	-	Active	NO
2	U70101GA2009PTC006204	SIDDHI DAMODAR REAL ESTATE PRIVATE LIMITED	Director	31/07/10	31/07/10	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 22.09.2014

NOTE: SHAREHOLDING DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on 22.09.2014

Category	Percentage
Bodies corporate	17.16
Directors or relatives of Directors	82.84
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Steel and Iron
Products :	Steel and Iron
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :	Not Available

PRODUCTION STATUS (AS ON 31.03.2014)

Particulars	Units	Licensed capacity	Installed capacity
M.S. Ingots / Alloy Steel	MTs	42000	42000

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Not Available

Bankers :

Oriental Bank of Commerce, Dempo Tower, Patto Plaza, Panaji - 403001, Goa, India

Facilities :

Secured Loan	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long-term Borrowings
Term loans	19.001	0.457
Other loans and advances	0.315	0.608
Short-term borrowings
Working capital loans from banks	246.445	186.174
Loans repayable on demand from banks	36.873	0.000
Total	302.634	187.239

Banking Relations :	--
Auditors :
Name :	Shrinivas Nayak and Company Chartered Accountants
Address :	201-B, Mathias Plaza, 18th June Road, Panaji – 403001, Goa, India
Tel No. :	91-832-2420139
E-Mail :	Shrinivas_ca@rediffmail.com
PAN N Income-tax PAN of auditor or auditor's firm :	ABNPN1439Q
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	--

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2995833	Equity Shares	Rs.10/- each	Rs.29.958 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	29.958	29.958	29.958
(b) Reserves & Surplus	44.860	41.891	44.750
(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)	74.818	71.849	74.708
(3) Non-Current Liabilities
(a) long-term borrowings	53.616	3.090	8.796
(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	1.167	1.167	1.167
Total Non-current Liabilities (3)	54.783	4.257	9.963
(4) Current Liabilities
(a) Short term borrowings	283.318	186.174	198.956
(b) Trade payables	85.951	87.291	64.345
(c) Other current liabilities	3.150	3.150	4.950
(d) Short-term provisions	50.296	51.041	32.233
Total Current Liabilities (4)	422.715	327.656	300.484
TOTAL	552.316	403.762	385.155
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	26.325	32.431	31.774
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	27.067	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)	12.539	9.301	12.323
(d) Long-term Loan and Advances	0.164	0.162	0.081
(e) Other Non-current assets	3.594	3.594	3.594
Total Non-Current Assets	69.689	45.488	47.772
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	259.799	238.762	237.120
(c) Trade receivables	35.562	26.398	22.042
(d) Cash and cash equivalents	175.455	67.287	47.754
(e) Short-term loans and advances	10.150	22.006	27.318
(f) Other current assets	1.661	3.821	3.149
Total Current Assets	482.627	358.274	337.383
TOTAL	552.316	403.762	385.155

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	1009.519	883.750	917.128
	Other Income	51.889	18.774	22.224
	TOTAL (A)	1061.408	902.524	939.352
Less	EXPENSES
	Cost of Materials Consumed	814.438	659.098	762.606
	Purchases of Stock-in-Trade	0.000	6.575	1.521
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	1.766	3.270	(4.194)
	Employees benefits expense	7.842	6.560	6.627
	Other expenses	185.238	181.332	135.175
	Exceptional Item	0.000	0.000	54.101
	TOTAL (B)	1009.284	856.835	955.836
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	52.124	45.689	(16.484)
Less	FINANCIAL EXPENSES (D)	42.137	27.065	22.505
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	9.987	18.624	(38.989)
Less/ Add	DEPRECIATION/ AMORTISATION (F)	7.491	6.889	6.374
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	2.496	11.735	(45.363)
Less	TAX (I)	0.000	0.000	(18.662)
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	2.496	11.735	(26.701)
	IMPORTS
	Raw Materials	21.542	9.472	82.754
	Earnings / (Loss) Per Share (Rs.)	0.83	3.92	(8.91)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	0.25	1.33	-2.91
Operating Profit Margin (PBIDT/Sales)	(%)	5.16	5.17	-1.80
Return on Total Assets (PBT/Total Assets}	(%)	0.49	2.97	-12.17
Return on Investment (ROI) (PBT/Networth)		0.03	0.16	-0.61
Debt Equity Ratio (Total Debt /Networth)		4.50	2.63	2.78
Current Ratio (Current Asset/Current Liability)		1.14	1.09	1.12

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	29.958	29.958	29.958
Reserves & Surplus	44.750	41.891	44.860
Net worth	74.708	71.849	74.818
long-term borrowings	8.796	3.090	53.616
Short term borrowings	198.956	186.174	283.318
Total borrowings	207.752	189.264	336.934
Debt/Equity ratio	2.781	2.634	4.503

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	917.128	883.750	1009.519
		(3.639)	14.231

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	917.128	883.750	1009.519
Profit	(26.701)	11.735	2.496
	(2.91%)	1.33%	0.25%

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	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	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

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long-term Borrowings
Loans and advances from related parties	34.300	2.025
Total	34.300	2.025

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10346959	30/03/2012	867,000.00	ORIENTAL BANK OF COMMERCE	DEMPO TOWER, PATTO PLAZA, PANAJI, GOA - 403001, INDIA	B36764983
2	10297059	11/10/2013 *	243,500,000.00	ORIENTAL BANK OF COMMERCE	DEMPO TOWER, PATTO BRANCH, PANAJI, GOA - 403001, INDIA	B90734120
3	90077561	07/08/2008 *	126,300,000.00	ANDHRA BANK	PANAJI BRANCH, PANAJI, GOA - 403001, INDIA	A45918984

* Date of charge modification

FIXED ASSETS

Tangible assets

• Buildings
• Plant and equipment
• Furniture and fixtures
• Vehicles
• Office equipment
• Leasehold improvements

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.61.87
UK Pound	1	Rs.94.07
Euro	1	Rs.70.19

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
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	4
--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	NO
--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.