MIRA INFORM REPORT

Report No. :	307854
Report Date :	14.02.2015

IDENTIFICATION DETAILS

Name :	R K STEEL UDYOG PRIVATE LIMITED
Registered Office :	16, Noormal Lohia Lanekesoram Katra, Ground Floor, Kolkata – 700007, West Bengal
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	12.03.2004
Com. Reg. No.:	21-098068
Capital Investment / Paid-up Capital :	Rs.7.161 Millions
CIN No.: [Company Identification No.]	U27108WB2004PTC098068
TIN No.:	Not Available
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 :	Trading of Iron and Steel.
No. of Employees :	20 (Approximately)

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

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Sales turnover of the company has declined which has results into dip profit of the company during 2014. However, the rating takes into consideration extensive experience of RK Steel’s promoters in the steel trading business supported by sound financial base and above average liquidity profile of the company, Trade relations seems to be fair. Business is active. Payments 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

Rating Agency Name	CRISIL
Rating	Long Term Rating = BB
Rating Explanation	Inadequate credit quality and high credit risk
Date	29.12.2014

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.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Ms. Shaileja
Designation :	Accountants
Contact No.:	91-9395565375
Date :	13.02.2015

LOCATIONS

Registered Office :	16, Noormal Lohia Lanekesoram Katra, Ground Floor, Kolkata – 700007, West Bengal, India
Tel. No.:	Not Available
Mobile No.:	91-9395565375 (Ms. Shaileja) 91-9848050010 (Mr. R.K. Surana) 91-9848030250 (Mr. Sunil Surana)
Fax No.:	Not Available
Corporate Office :	Door No. 602-A,  6^th Floor, Al-Karrim Trade Centre, MG Road, Ranigunj, Secunderabad, Hyderabad – 500003, Telangana, India
Tel. No.:	91-40–27544372 / 27545420 / 66382006
Fax No.:	91-40-27543629

DIRECTORS

As on 30.09.2014

Name :

Mr. Sunil Kumar Surana

Designation :

Whole-Time Director

Address :

Pradham Apartment, Flat No:3 A, Dwarkapuri, Colony, Punjagutta, Hyderabad - 500082, Andhra Pradesh, India

Date of Birth/Age :

30.10.1963

Date of Appointment :

01.04.2004

PAN No.:

AMRPS2051G

DIN No.:

00336367

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	U45202WB1994PTC066740	R.K.PLAZA PRIVATE LIMITED	Director	21/12/1994	21/12/1994	04/05/2012	Amalgamated	NO
2	U70109WB1995PTC072200	MADHU PROJECTS PRIVATE LIMITED	Director	24/06/1995	24/06/1995	29/07/2011	Active	NO
3	U72200TG2000PTC035026	R.K. INFO-EDGE PRIVATE LIMITED	Director	01/08/2000	01/08/2000	-	Active	NO
4	U27108WB2004PTC098068	R K STEEL UDYOG PRIVATE LIMITED	Whole-time director	01/04/2004	01/04/2004	-	Active	NO
5	U72200TG2005PTC047803	NITEO IT SOLUTIONS PRIVATE LIMITED	Director	01/05/2006	01/05/2006	-	Active	NO
6	U70109WB2011PTC168946	MOHAN ABASON PRIVATE LIMITED	Director	01/12/2011	01/12/2011	-	Active	NO

Name :

Mr. Aakash Surana

Designation :

Director

Address :

H No-6-3-347/22/3-A,, Dwarakapuri Colony, Hyderabad - 500034, Andhra Pradesh, India

Date of Birth/Age :

13.12.1994

Date of Appointment :

20.12.2013

DIN No.:

06774224

KEY EXECUTIVES

Name :	Ms. Shaileja
Designation :	Accountants

MAJOR SHAREHOLDERS

As on 29.09.2014

Names of Shareholders	No. of Shares
Sunil Kumar Surana	360065
Aakash Surana	94000
Ranjit Kumar Surana	25060
Madhu Projects Private Limited, India	198000
Anita Surana	4000
Sampatlala Sunil Kumar (HUF)	6960
Sampatlala Ranjit Kumar (HUF)	240
S.L. Surana And Sons (HUF)	3000
Sampatlal Kumar Surana (HUF)	4000
Sunil Kumar Surana (HUF)	8000
R.K. Surana (HUF)	7800
Sampatlala Rakesh Kumar (HUF)	5000
Total	716125

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2014

Category	Percentage
Bodies corporate (not mentioned above)	27.65
Directors or relatives of Directors	72.35
Total	100.00

BUSINESS DETAILS

Line of Business :

Trading of Iron and Steel.

Products :

Product Description	Item Code No. (ITC Code)
Trading of steel	73141200

Brand Names :

--

Agencies Held :

--

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Cash, Cheque and Credit

Purchasing :

Cash, Cheque and Credit

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Vinayak Steel Limited, Secunderabad, Hyderabad, Telangana, India
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 :	Aparna Constructions and Estates Private Limited, Hyderabad, Telangana, India
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 :

20 (Approximately)

Bankers :

Banker Name	State Bank of India
Branch Address	Saifabad (SIB) Branch, Haca Bhavan, Opposite Assembly, Hyderabad - 500004, Telangana, 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

Facilities :

SECURED LOANS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
LONG TERM BORROWINGS
Loans and advances from related parties	64.903	31.854
SHORT TERM BORROWINGS
Loans repayable on demand from others	194.890	177.377
Total	259.793	209.231

Auditors :
Name :	Dagliya and Company Chartered Accountants
Address :	5-5-9/13, 2nd Floor, Srinivasa Building, Ranigunj, Secunderabad – 500003, Andhra Pradesh, India
PAN No.:	AAAFD6954E
Memberships :	--
Collaborators :	--
Associates :	· Madhu Projects Private Limited CIN No.: U70109WB1995PTC072200 · R.K. Plaza Private Limited CIN No.: U45202WB1994PTC066740 · R.K. Constructions Private Limited

CAPITAL STRUCTURE

As on 29.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
716125	Equity Shares	Rs.10/- each	Rs.7.161 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	7.161	5.580	5.580
(b) Reserves & Surplus	113.343	84.616	77.603
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	25.300	0.000
Total Shareholders’ Funds (1) + (2)	120.504	115.496	83.183
(3) Non-Current Liabilities
(a) long-term borrowings	64.903	31.854	46.291
(b) Deferred tax liabilities (Net)	2.044	1.711	1.787
(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)	66.947	33.565	48.078
(4) Current Liabilities
(a) Short term borrowings	211.703	192.484	156.600
(b) Trade payables	23.558	8.013	0.000
(c) Other current liabilities	5.623	40.820	4.909
(d) Short-term provisions	3.753	0.945	1.469
Total Current Liabilities (4)	244.637	242.262	162.978
TOTAL	432.088	391.323	294.239
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	16.890	18.150	16.063
(ii) Intangible Assets	3.012	3.720	4.414
(iii) Capital work-in-progress	9.736	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	1.743	3.363	10.777
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	31.381	25.233	31.254
(2) Current assets
(a) Current investments	0.000	0.000	1.000
(b) Inventories	31.480	19.465	83.457
(c) Trade receivables	333.940	330.986	168.556
(d) Cash and cash equivalents	8.209	0.127	0.375
(e) Short-term loans and advances	27.078	15.512	9.597
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	400.707	366.090	262.985
TOTAL	432.088	391.323	294.239

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	1,940.142	2,257.253	1,538.823
		Other Income	NA	NA	NA
		TOTAL (A)	NA	NA	NA
	EXPENSES
		TOTAL (B)	NA	NA	NA
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		34.314	32.282	31.514
Less	FINANCIAL EXPENSES (D)		23.822	19.793	20.629
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10.492	12.489	10.885
Less	DEPRECIATION/ AMORTISATION (F)		1.400	1.629	1.563
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		9.092	10.860	9.322
Less	TAX (H)		4.083	3.847	3.303
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		5.009	7.013	6.019
	Earnings / (Loss) Per Share (Rs.)		6.99	10.79	11.49

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	0.26	0.31	0.39
Operating Profit Margin (PBDIT/Sales)	(%)	1.77	1.43	2.05
Return on Total Assets (PBT/Total Assets}	(%)	2.15	2.78	3.17
Return on Investment (ROI) (PBT/Networth)		0.08	0.09	0.11
Debt Equity Ratio (Total Debt /Networth)		2.30	1.94	2.44
Current Ratio (Current Asset/Current Liability)		1.64	1.51	1.61

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	5.580	5.580	7.161
Reserves & Surplus	77.603	84.616	113.343
Share Application money pending allotment	0.000	25.300	0.000
Net worth	83.183	115.496	120.504
Long Term borrowings	46.291	31.854	64.903
Short Term borrowings	156.600	192.484	211.703
Total borrowings	202.891	224.338	276.606
Debt/Equity ratio	2.439	1.942	2.295

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	1,538.823	2,257.253	1,940.142
		46.687	(14.049)

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	1,538.823	2,257.253	1,940.142
Profit	6.019	7.013	5.009
	0.39%	0.31%	0.26%

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%	-----------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS:

Particulars	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
SHORT TERM BORROWINGS
Loans and advances from related parties	16.813	15.107
Total	16.813	15.107

OPERATIONS:

During the year the company witnessed a decline of about Rs.317.111 Lacs in sales turnover at Rs.19401.42Millions (previous year Rs.2257.253 Millions). The company has recorded a Net Profit (PBT) of Rs.9.092 Millions during the year as compared to Net Profit (PBT) of Rs.10.860 Millions in the previous year, recording a decline of Rs.1.768 Millions.

The company has consolidated its position in the market place and this being the ninth year of operation the company is satisfied with its performance. The ongoing marketing efforts of all concerned and the improving market conditions augur well for the immediate and long term prospects of the company. The directors of the company are happy to inform that new markets are being explored and the results are encouraging. It is expected to generate substantial business in the near term with good potential in the long term. The anticipated up-turn in the economy and the state of readiness of the Company to successfully meet challenges auger well for the growth of the business. The Company already has well established marketing network, which the Company wants to be further expanded, improve its product mix and competitive pricing of its products, to achieve the Company’s goal of Rs.2500.000 Millions turnover by 2014-15.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10097631	11/01/2014 *	227,500,000.00	State Bank Of India	Saifabad (Sib ) Branch, Haca Bhavan, Opp. Assembly,, Hyderabad, Andhra Pradesh - 500004, India	B98067010

*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 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.62.43
UK Pound	1	Rs.95.02
Euro	1	Rs.70.63

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	KAR
Report Prepared by :	VNT

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	4
--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	YES
--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.