MIRA INFORM REPORT

Report No. :	305718
Report Date :	11.02.2015

IDENTIFICATION DETAILS

Name :	D S R M STEELS PRIVATE LIMITED
Registered Office :	SF No.412/1, Vedasandur Taluk, Kulathur, Dindigul – 624005, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	07.12.2005
Com. Reg. No.:	18-012353
Capital Investment / Paid-up Capital :	Rs.79.500 Millions
CIN No.: [Company Identification No.]	U27310TZ2005PTC012353
TIN No.:	Not Available
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	MRID00958G
PAN No.: [Permanent Account No.]	AACCD4490L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Steel Rods, Steel Angel, Steel Chanel etc.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

Ca (14)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 181000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Management has failed to file latest financials for FY 2014, whereas only filed “Form 20” depicting annual return for FY 2013 and as retained from filling and other document of FY 2013 as well with the statutory authorities. As per available, the company has reported consecutive losses leading to accumulation of the same along with high total liabilities to tangible networth ratio during FY 2012. However, business is active. Payment terms are unknown. In view of lack of requisite information, the company can be considered for business dealings on a safe and secured 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 DENIED BY

Name :	Mr. Vijay Mohan
Designation :	Director
Contact No.:	91-9965554060
Date :	04.02.2015

LOCATIONS

Registered Office :	SF No.412/1, Vedasandur Taluk, Kulathur, Dindigul – 624005, Tamilnadu, India
Tel. No.:	91-4551-227211
Mobile No.:	91-9965554060 (Mr. Vijay Mohan)
Fax No.:	91-4551-227349
E-Mail :	dsrm4060@yahoo.com

DIRECTORS

As on 30.09.2013

Name :

Mr. Sabapathy Mohanasundaram

Designation :

Managing Director

Address :

10, New 25/10, Thiru Nagar, M.S.P. School Road, Dindigul - 624005, Tamilnadu, India

Date of Birth/Age :

10.05.1957

Date of Appointment :

20.07.2009

DIN No.:

01752259

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	U02710TZ1995PTC006174	DINDIGUL STEEL ROLLING MILLS PRIVATE LIMITED	Director	06/12/2000	06/12/2000	01/01/2014	Active	NO
2	U27310TZ2005PTC012353	D S R M STEELS PRIVATE LIMITED	Managing director	01/01/2014	20/07/2009	-	Active	NO

Name :

Mr. Mohana Sundaram Manikandan

Designation :

Additional Director

Address :

25/10, Thiru Nagar, G.T.N. Salai, Dindigul - 624005, Tamilnadu, India

Date of Appointment :

01.01.2014

DIN No.:

06750905

MAJOR SHAREHOLDERS

As on 30.09.2013

Names of Shareholders	No. of Shares
Dindigul Steel Rolling Mills Private Limited, India	200000
V. Ramaswamy	58500
R. Rajamani	58500
S. Mohana Sundaram	29500
M. Balamani	29500
Tormer Tie Up Private Limited, India	58000
Rozela Vinimay Private Limited, India	35000
Sital Mercantile Private Limited, India	15000
Sri Mercantile Private Limited, India	51000
Latangi Vyapar	50000
Chandrika Dealcom Private Limited, India	31000
Gangadhar Dealers Private Limited, India	60000
Kanyaka Fine Weld Limited, India	119000
Surabhi Dealmark Private Limited, India	462000
Aastha Vanijya Private Limited, India	508000
Sanwaria Vincom Private Limited, India	30000
Total	1795000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Bodies corporate	90.19
Directors or relatives of Directors	9.81
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Steel Rods, Steel Angel, Steel Chanel etc.

Products :

Product Description	Item Code No. (ITC Code)
M.S. Ingots	72045000

Brand Names :

--

Agencies Held :

--

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
Remark :	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
Remark :	Not Divulged

No. of Employees :

Information denied by management

Bankers :

City Union Bank Limited, 45-C, New Agraharam, Palani Road, Dindigul - 624001, Tamilnadu, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
LONG TERM BORROWINGS
Rupee term loans from banks	224.770	21.766
SHORT TERM BORROWINGS
Loans repayable on demand from banks	731.611	393.228
Total	956.381	414.994

Auditors :
Name :	K. Venkata ramanan Chartered Accountants
Address :	"Shreyas", 5/65, Anna Nagar, Dindigul – 624005, Tamilnadu, India
PAN No.:	AAVPR1146B
Memberships :	--
Collaborators :	--
Other Related Parties :	Dindigul Steel Rolling Mills Private Limited

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1800000	Equity Shares	Rs.100/- each	Rs.180.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1795000	Equity Shares	Rs.100/- each	Rs.179.500 Millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1200000	Equity Shares	Rs.100/- each	Rs.120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
795000	Equity Shares	Rs.100/- each	Rs.79.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	79.500	79.500
(b) Reserves & Surplus	(16.308)	(8.390)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	63.192	71.110
(3) Non-Current Liabilities
(a) long-term borrowings	224.770	21.766
(b) Deferred tax liabilities (Net)	4.480	3.687
(c) Other long term liabilities	3.500	3.500
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	232.750	28.953
(4) Current Liabilities
(a) Short term borrowings	731.611	393.228
(b) Trade payables	44.339	242.689
(c) Other current liabilities	53.970	27.549
(d) Short-term provisions	0.152	0.110
Total Current Liabilities (4)	830.072	663.576
TOTAL	1,126.014	763.639
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	83.831	88.599
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	14.282	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	270.340	25.893
(e) Other Non-current assets	28.573	32.941
Total Non-Current Assets	397.026	147.433
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	208.300	238.131
(c) Trade receivables	446.947	313.421
(d) Cash and cash equivalents	0.065	0.013
(e) Short-term loans and advances	47.637	38.602
(f) Other current assets	26.039	26.039
Total Current Assets	728.988	616.206
TOTAL	1,126.014	763.639

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		79.500
2] Share Application Money		3.500
3] Reserves & Surplus		(8.019)
4] (Accumulated Losses)		0.000
NETWORTH		74.981
LOAN FUNDS
1] Secured Loans		158.981
2] Unsecured Loans		0.000
TOTAL BORROWING		158.981
DEFERRED TAX LIABILITIES		2.534
TOTAL		236.496
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		93.317
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	173.476
	Sundry Debtors	10.300
	Cash & Bank Balances	0.511
	Other Current Assets	0.102
	Loans & Advances	101.107
Total Current Assets		285.496
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	132.402
	Other Current Liabilities	10.198
	Provisions	0.000
Total Current Liabilities		142.600
Net Current Assets		142.896
MISCELLANEOUS EXPENSES		0.283
TOTAL		236.496

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1,328.965	717.122	596.618
		Other Income	11.352	2.304	12.789
		TOTAL (A)	1,340.317	719.426	609.407
Less	EXPENSES
		TOTAL (B)	1,289.146	674.417	572.915
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		51.171	45.009	36.492
Less	FINANCIAL EXPENSES (D)		53.729	39.383	28.994
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(2.558)	5.626	7.498
Less	DEPRECIATION/ AMORTISATION (F)		4.845	4.843	4.801
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		(7.403)	0.783	2.697
Less	TAX (H)		8.905	(7.607)	10.716
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		(16.308)	8.390	(8.019)
	Earnings / (Loss) Per Share (Rs.)		(9.96)	(0.47)	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Net Profit Margin (PAT/Sales)	(%)	(1.23)	1.17	(1.34)
Operating Profit Margin (PBDIT/Sales)	(%)	3.85	6.28	6.12
Return on Total Assets (PBT/Total Assets}	(%)	(0.67)	0.10	0.71
Return on Investment (ROI) (PBT/Networth)		(0.12)	0.01	0.04
Debt Equity Ratio (Total Debt /Networth)		15.13	5.84	2.12
Current Ratio (Current Asset/Current Liability)		0.88	0.93	2.00

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2010	31.03.2011	31.03.2012
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	79.500	79.500	79.500
Reserves & Surplus	-8.019	-8.390	-16.308
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	3.500	0.000	0.000
Net worth	74.981	71.110	63.192
Long Term borrowings	158.981	21.766	224.770
Short Term borrowings	0.000	393.228	731.611
Total borrowings	158.981	414.994	956.381
Debt/Equity ratio	2.120	5.836	15.135

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2010	31.03.2011	31.03.2012
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	596.618	717.122	1,328.965
		20.198	85.319

NET PROFIT MARGIN

Net Profit Margin	31.03.2010	31.03.2011	31.03.2012
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	596.618	717.122	1,328.965
Profit	(8.019)	8.390	(16.308)
	(1.34%)	1.17%	(1.23%)

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	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	No
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

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10316941	26/12/2013 *	1,395,000,000.00	City Union Bank Limited	45-C, New Agraharam, Palani Road, Dindigul, Tamilnadu - 624001, India	B96932629
2	10277169	10/06/2013 *	1,185,000,000.00	City Union Bank Limited	45-C, New Agraharam, Palani Road, Dindigul, Tamilnadu - 624001, India	B81199499
3	10073466	11/11/2009 *	695,000,000.00	City Union Bank Limited	45-C, New Agraharam, Palani Road, Dindigul, Tamilnadu - 624001, India	A73464836

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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 records 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 tht 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.61.96
UK Pound	1	Rs.94.41
Euro	1	Rs.70.20

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	SUB
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	1
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--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		14

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.