MIRA INFORM REPORT

Report No. :	305920
Report Date :	09.02.2015

IDENTIFICATION DETAILS

Name :	SUGNA METALS LIMITED (w.e.f. 21.06.2013)
Formerly Known As :	SUGNA METALS PRIVATE LIMITED
Registered Office :	1-8-673, IDA, Azamabad, Hyderabad – 500020, Telangana
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	09.10.2006
Com. Reg. No.:	36-051360
Capital Investment / Paid-up Capital :	Rs.87.030 Millions
CIN No.: [Company Identification No.]	U27109TG2006PLC051360
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AALCS0546B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Supplier of TMT bar , Steel tmt bar, TMT bar.
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 900000
Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. General financial position of the company seems to be sound. Profitability of the company is fair. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual trade terms and condition.

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	Term Loan Limits = BB+
Rating Explanation	Inadequate credit quality and high credit risk.
Date	October, 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 :	1-8-673, IDA, Azamabad, Hyderabad – 500020, Telangana, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	askrco@yahoo.com

DIRECTORS

As on 30.09.2014

Name :

Mr. Bharat Kumar Sonthalia

Designation :

Director

Address :

8-2-686/K/26/5, Road No.12, Ward 8, Circle – 7, Banjara Hills, R.R. District, Hyderabad – 500034, Telangana, India

Date of Birth/Age :

08.01.1959

Date of Appointment :

09.10.2006

DIN No.:

00631935

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	U17112TG1988PTC009109	SUNDER SILKS MILLS PRIVATE LIMITED	Director	30/09/1988	30/09/1988	-	Active	NO
2	U27109TG2006PLC051360	SUGNA METALS LIMITED	Director	09/10/2006	09/10/2006	-	Active	NO

Name :

Mrs. Saroj Devi Sonthalia

Designation :

Director

Address :

8-2-686/K/26/5, Road No.12, Ward 8, Circle – 7, Banjara Hills, R.R. District, Hyderabad – 500034, Telangana, India

Date of Birth/Age :

12.10.1961

Date of Appointment :

09.10.2006

DIN No.:

00631975

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	U27109TG2006PLC051360	SUGNA METALS LIMITED	Director	09/10/2006	09/10/2006	-	Active	NO
2	U17112TG1988PTC009109	SUNDER SILKS MILLS PRIVATE LIMITED	Director	10/04/2007	10/04/2007	-	Active	NO

Name :

Mr. Mudit Sonthala

Designation :

Director

Address :

8-2-686/K/26/5, Road No.12, Kimtee Enclave, Banjara Hills, R.R. District, Hyderabad – 500034, Telangana, India

Date of Birth/Age :

21.04.1995

Date of Appointment :

20.05.2013

DIN No.:

06608811

MAJOR SHAREHOLDERS

As on 30.09.2014

SHAREHOLDERS FILE ATTACHED

As on 02.01.2015

Name of Allottees	No of Shares allotted
Mr. Bharat Kumar	200000
Mrs. Saroj Sonthalia	200000
Total	400000

As on 30.09.2014

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 and Supplier of TMT bar , Steel tmt bar, TMT bar. 

Products :

Item Code No. (ITC Code)	Product Description
72071220	MS Billets
72141090	TMT Bars

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Available

Imports :

Not Available

Terms :

Selling :

Not Available

Purchasing :

Not Available

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Available

Customers :

Not Available

No. of Employees :

Not Available

Bankers :

· Punjab National Bank, R.P. Road, Secunderabad – 500002, Telangana, India

· Small Industries Development Bank of India, 101, Hermitage Office Complex, Saifabad, Hyderabad – 500004, Telangana, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Term loans from banks	173.704	172.826
Loans taken for fixed assets	2.832	2.766
SHORT TERM BORROWINGS
Working capital loans from banks	213.180	203.438
Rupee term loans from banks	0.000	19.764
Loans taken for fixed assets	0.179	0.740
Total	389.895	399.534

Auditors :
Name :	R.B.Kabra And Company Chartered Accountants
Address :	4-1-917, Parsi Lane, Tilak Road , Hyderabad, Andra Pradesh, India
PAN No.:	AAEFR3093C
Memberships :	Not Available
Collaborators :	Not Available
Relatives Of Key Management Personnel :	· Binjusaria Sponge And Power Private Limited · Sunder Ispat Limited · Sms Steels Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/-each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8703000	Equity Shares	Rs.10/-each	Rs.87.030 Millions

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/-each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9103000	Equity Shares	Rs.10/-each	Rs.93.030 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	87.030	76.555	76.555
(b) Reserves & Surplus	260.812	221.575	189.930
(c) Money received against share warrants	0.000	37.850	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	347.842	335.980	266.485
(3) Non-Current Liabilities
(a) long-term borrowings	238.320	221.956	299.171
(b) Deferred tax liabilities (Net)	35.111	26.749	2.457
(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)	273.431	248.705	301.628
(4) Current Liabilities
(a) Short term borrowings	213.359	223.942	173.515
(b) Trade payables	154.875	96.411	91.478
(c) Other current liabilities	64.229	30.780	43.491
(d) Short-term provisions	5.085	2.901	8.759
Total Current Liabilities (4)	437.548	354.034	317.243
TOTAL	1058.821	938.719	885.356
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	409.046	427.916	400.891
(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	0.050	0.050	0.050
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	409.096	427.966	400.941
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	422.916	320.422	308.218
(c) Trade receivables	112.476	62.975	73.392
(d) Cash and cash equivalents	26.966	30.092	21.486
(e) Short-term loans and advances	40.841	50.796	41.287
(f) Other current assets	46.526	46.468	40.032
Total Current Assets	649.725	510.753	484.415
TOTAL	1058.821	938.719	885.356

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	1606.246	1210.384	1349.946
	Other Income	9.505	5.792	2.856
	TOTAL	1615.751	1216.176	1352.802
Less	EXPENSES
	Cost of Materials Consumed	1255.914	919.478	1008.914
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(171.530)	(22.826)	(11.490)
	Employees benefits expense	7.764	6.320	5.065
	Other expenses	425.851	218.200	258.314
	TOTAL	1517.999	1121.172	1260.803
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	97.752	95.004	91.999
Less	FINANCIAL EXPENSES	56.023	59.845	30.321
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	41.729	35.159	61.678
Less/ Add	DEPRECIATION/ AMORTISATION	21.134	22.729	31.339
	PRIOR PERIOD ITEMS BEFORE TAX	0.000	(43.812)	25.164
	PROFIT/ (LOSS) BEFORE TAX	20.595	56.242	5.175
Less	TAX	12.863	26.891	1.280
	PROFIT/ (LOSS) AFTER TAX	7.732	29.351	3.895
	Earnings / (Loss) Per Share (Rs.)	0.89	3.37	0.45

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	0.48	2.42	0.28
Operating Profit Margin (PBDIT/Sales)	(%)	6.08	7.84	6.81
Return on Total Assets (PBT/Total Assets}	(%)	1.95	5.99	0.58
Return on Investment (ROI) (PBT/Networth)		0.06	0.17	0.02
Debt Equity Ratio (Total Debts/Networth)		1.30	1.33	1.77
Current Ratio (Current Asset/Current Liability)		1.48	1.44	1.53

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	76.555	76.555	87.030
Reserves & Surplus	189.930	221.575	260.812
Money received against share warrants	0.000	37.850	0.000
Net worth	76.555	114.405	87.030
long-term borrowings	299.171	221.956	238.320
Short term borrowings	173.515	223.942	213.359
Total borrowings	472.686	445.898	451.679
Debt/Equity ratio	6.174	3.898	5.190

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	1349.946	1210.384	1606.246
		(10.338)	32.705

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	1349.946	1210.384	1606.246
Profit	3.895	29.351	7.732
	0.29%	2.42%	0.48%

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	No
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

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10496637	26/03/2014	825,000.00	PUNJAB NATIONAL BANK	R.P.ROAD, R.P.ROAD, HYDERABAD, Andhra Pradesh - 500003, INDIA	C05147731
2	10474216	01/01/2014	20,000,000.00	PUNJAB NATIONAL BANK	R.P.ROAD, SECUNDERABAD, Andhra Pradesh - 500003, INDIA	B94943826
3	10357208	30/04/2012	2,000,000.00	PUNJAB NATIONAL BANK	R.P. ROAD, SECUNDERABAD, Andhra Pradesh - 500003, INDIA	B40162612
4	10329907	20/12/2011	981,000.00	BAJAJ FINANCE LIMITED	AKURDI PUNE-, PUNE, Maharashtra - 411035, INDIA	B29934023
5	10307628	09/08/2011	25,000,000.00	PUNJAB NATIONAL BANK	R.P.ROAD, SECUNDERABAD, Andhra Pradesh - 500003, INDIA	B21162920
6	10290181	07/06/2011	700,000.00	KOTAK MAHINDRA BANK LIMITED	36-38A, NARIMAN BHAVAN, 227,D,, NARIMAN POINT,, MUMBAI, Maharashtra - 400021, INDIA	B14274617
7	10231562	16/07/2010	1,670,000.00	BAJAJ AUTO FINANCE LTD	AKURDI PUNE-, PUNE, Maharashtra - 411035, INDIA	A90846726
8	10166878	01/06/2009	717,000.00	Punjab National Bank	R.P.Road, Secunderabad, Andhra Pradesh - 500003, INDIA	A65790495
9	10145000	09/01/2015 *	560,000,000.00	PUNJAB NATIONAL BANK	RASHTRAPATHI ROAD, SECUNDERABAD, Telangana - 500002, INDIA	C40350084
10	10087928	05/03/2014 *	134,000,000.00	SMALL INDUSTRIES DEVELOPMET BANK OF INDIA	101,HERMITAGE OFFICE COMPLEX, SAIFABAD, HYDERABAD, Andhra Pradesh - 500004, INDIA	B97768667

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Deposits from directors	61.784	43.664
Deposits from Shareholders	0.000	2.700
Total	61.784	46.364

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.61.73
UK Pound	1	Rs.94.65
Euro	1	Rs.70.78

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	PNM

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	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		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.