MIRA INFORM REPORT

Report No. :	306666
Report Date :	11.02.2015

IDENTIFICATION DETAILS

Name :	POSCO ELECTRICAL STEEL INDIA PRIVATE LIMITED
Registered Office :	Plot No. C 1/1, Vile – Bhagad MIDC Industrial Area, Taluka-Mangaon – 402308, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	25.04.2011
Com. Reg. No.:	11-216653
Capital Investment / Paid-up Capital :	Rs. 2581.793 Millions
CIN No.: [Company Identification No.]	U27310MH2011FTC216653
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in manufacturing non grained oriented electrical steel and caters to the customers in automobile, home appliances and power sector.
No. of Employees :	150 (Approximately)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has incurred a loss from its operations during 2014. However, trade relations is fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Nirmal Bola
Designation :	Accountant
Contact No.:	91-21-40662635
Date :	05.02.2015

LOCATIONS

Registered Office :	Plot No. C 1/1, Vile – Bhagad MIDC Industrial Area, Taluka-Mangaon – 402308, Maharashtra, India
Tel. No.:	91-21-40662600/2635
Fax No.:	91-21-40662796
E-Mail :	rucha.pesiple@posco.net jlee@posco.com
Website :	www.posco.net
Location :	Owned
Factory :	706, World Trade Centre Pune, 1- Kharadi, Opposite Eon Free Zone, MIDC Knowledge Park, Pune – 411014, Maharashtra, India
Tel. No.:	91-21-40662600

DIRECTORS

As on 15.09.2014

Name :

Mr. Hassoo Hakkyu Kim

Designation :

Director

Address :

Mokdongshinsigaji Apartment 706-505, 925 Mok-Dong Yangcheon-GU, Seoul Metropolitan – 158757, Republic of Korea

Date of Birth/Age :

30.05.1973

Date of Appointment :

28.09.2012

DIN No.:

03451787

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	U27310MH2011FTC216653	POSCO Electrical Steel India Private Limited	Director	28/09/2012	13/05/2011	-	Active	NO
2	U65990OR2009PLC011366	IMFA Alloys Finlease Limited	Alternate director	07/05/2014	07/05/2014	-	Active	NO

Name :

Mr. Jinhyeong Woogi Kim

Designation :

Director

Address :

802, Sapodilla Marigold Soci, Behind Mariplex Kalyani Nagar, Seoul Metropolitan, Pune – 411014, Maharashtra, India

Date of Birth/Age :

09.12.1966

Date of Appointment :

15.09.2014

DIN No.:

06808044

Name :

Mr. Vheolmin Kim Kim

Designation :

ManagingDirector

Address :

Plot No. A-9, Floricul Ture Park, Telegaon MIDC, Pune – 410507, Maharashtra, India

Date of Birth/Age :

17.12.1965

Date of Appointment :

08.08.2014

DIN No.:

03577276

KEY EXECUTIVES

Name :	Mr. Nirmal Bola
Designation :	Accountant

MAJOR SHAREHOLDERS

As on 31.03.2014

Names of Shareholders	No. of Shares
Democratic People’s Republic of, Korea	25817933
Total	25817933

As on 15.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in manufacturing non grained oriented electrical steel and caters to the customers in automobile, home appliances and power sector.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Countries :	USA Pakistan UAE
Imports :
Products :	Raw Material
Countries :	Korea
Terms :
Selling :	Cash and Cheque
Purchasing :	Cash and Cheque

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

150 (Approximately)

Bankers :

Not Available

Auditors :
Name :	Bilimoria Mehta and Company Chartered Accountants
Address :	Sethna Building, 1^St Floor, 216 S G Marg, Mumbai, Maharashtra, India
PAN No.:	AAAFB1386J
Memberships :	Not Available
Collaborators :	Not Available
Holding company:	Posco, Koreaa, Democratic People's Republic Of Posco Engineering and Construction India Private Limited, India
Fellow Subsidiary Company :	Daewoo International Corporation Limited, Korea , Republic Of Posco Ict Co Ltd Korea, Republic Of Posco Japan Co Ltd, Japan Posco- India Pune Processing Center Private Limited, India Posco Maharashtra Steel Private Limited, India Posco Asia Compamyu Limited, China Posco E and C Company Limited , Korea Republic Of Posco Group University, Korea , Republic Of Posri Rel Limited, Korea, Republic Of Posco-India Steel Distribution Center Private Limited, India

CAPITAL STRUCTURE

As on 15.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
26000864	Equity Shares	Rs.100/- each	Rs. 2600.086 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
25817933	Equity Shares	Rs.100/- each	Rs. 2581.793 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	2581.793	2032.598	1194.578
(b) Reserves & Surplus	(192.314)	(23.583)	(6.297)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	379.468	447.840
Total Shareholders’ Funds (1) + (2)	2389.479	2388.483	1636.121
(3) Non-Current Liabilities
(a) long-term borrowings	5035.402	4050.427	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	1.915	1.013	0.000
(d) long-term provisions	0.000	0.000	0.019
Total Non-current Liabilities (3)	5037.317	4051.440	0.019
(4) Current Liabilities
(a) Short term borrowings	1575.718	0.000	0.000
(b) Trade payables	2223.998	0.000	0.000
(c) Other current liabilities	186.433	120.262	318.074
(d) Short-term provisions	0.051	1.351	0.000
Total Current Liabilities (4)	3986.200	121.613	318.074
TOTAL	11412.996	6561.536	1954.214
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	6783.015	36.329	2.065
(ii) Intangible Assets	127.715	1.584	0.360
(iii) Capital work-in-progress	0.000	5063.876	756.795
(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	411.206	34.560	46.155
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	7321.936	5136.349	805.375
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1874.122	0.000	0.000
(c) Trade receivables	1890.753	0.000	0.000
(d) Cash and cash equivalents	111.347	1250.373	378.674
(e) Short-term loans and advances	153.640	173.665	770.010
(f) Other current assets	61.198	1.149	0.155
Total Current Assets	4091.060	1425.187	1148.839
TOTAL	11412.996	6561.536	1954.214

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	TOTAL INCOME	18612.850	592.680	191.200
Less	TOTAL EXPENSES	5287.610	541.880	191.540
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(227.020)	(170.310)	(0.340)
Less/ Add	DEPRECIATION/ AMORTISATION	1451.870	11.950	0.600
	PROFIT/ (LOSS) BEFORE TAX	(1677.890)	(182.260)	(0.940)
Less	TAX	9.410	(9.410)	(62.030)
	PROFIT/ (LOSS) AFTER TAX	(1687.300)	(172.850)	(62.970)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD (K)	(235.820)	(62.970)	0.000
	Balance Carried to the B/S (J+K+L-M)	(1923.120)	(235.820)	(62.970)
	EARNINGS IN FOREIGN CURRENCY	27.718	65.618	0.000
	CIF Value of Imports	3.435	0.000	0.000
	Earnings / (Loss) Per Share (Rs.)	(6.90)	(0.99)	(0.97)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	(14.70)	(12.17)	(0.08)
Return on Investment (ROI) (PBT/Networth)		(0.70)	(0.08)	0.00
Debt Equity Ratio (Total Debt /Networth)		2.77	1.70	0.00
Current Ratio (Current Asset/Current Liability)		1.03	11.72	3.61

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	1194.578	2032.598	2581.793
Reserves & Surplus	(6.297)	(23.583)	(192.314)
Share Application Money Pending Allotment	447.840	379.468	0.000
Net worth	1188.281	2009.015	2389.479
long-term borrowings	0.000	4050.427	5035.402
Short term borrowings	0.000	0.000	1575.718
Total borrowings	0.000	4050.427	6611.120
Debt/Equity ratio	0.000	2.016	2.767

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	191.200	592.680	18612.850
		209.979	3,040.455

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	191.200	592.680	18612.850
Profit	(62.970)	(172.850)	(1687.300)
	(32.93%)	(29.16%)	(9.07%)

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	Yes
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%	No
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	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	No
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

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Term loan from Banks	5035.402	4050.427
SHORT TERM BORROWING
Term loan from banks	1138.319	0.000
Working capital loans from banks	136.900	0.000
Other loans and advances	300.499	0.000
Total	6611.120	4050.427

INDEX OF CHARGES: NO CHARGES EXIST FOR THE COMPANY

FIXED ASSETS

• Land
• Building
• Plant and Equipment
• Furniture and Fixture
• Vehicle

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.62.96
UK Pound	1	Rs.94.41
Euro	1	Rs.70.20

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	RAS
Report Prepared by :	ART

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	YES
--AFFILIATION	YES/NO	YES
--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.