MIRA INFORM REPORT

Report Date :

03.01.2015

IDENTIFICATION DETAILS

Name :	MSM STEELS PRIVATE LIMITED
Registered Office :	Shop No. 1, Malang Complex, Nandi Stop, Old Ausa Road - 413531, Latur, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	04.11.2009
Com. Reg. No.:	11-0196847
Capital Investment / Paid-up Capital :	Rs. 127.772 Millions
CIN No.: [Company Identification No.]	U27100MH2009PTC196847
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	NSKM08087C
PAN No.: [Permanent Account No.]	AAGCM4110L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Importer of TMT Bars, Ingots, Billets.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1100000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The management has failed to file its financial record with government department for the year 2014. As per available financial record of 2013, the rating is constrained on account of company’s moderate financial risk profile and low reserves of the company. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing 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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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	CARE
Rating	Long Term Bank Facilities = B+
Rating Explanation	Risk Prone Credit Quality and very High Credit Risk
Date	01.10.2013

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A4
Rating Explanation	Minimal Degree of Safety and Very High Credit Risk
Date	01.10.2013

RBI DEFAULTER’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTER’ 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

Name :	Mr. Prakash Patil
Designation :	Senior Accountant
Contact No.:	91 – 880-5020168
Date :	23.12.2014

LOCATIONS

Registered Office :	Shop No. 1, Malang Complex, Nandi Stop, Old Ausa Road - 413531, Latur, Maharashtra
Tel. No.:	91-2382-255239
Mobile No.:	91-8805020168 (Mr. Prakash Patil)
Fax No.:	91-2382-252239
E-Mail :	admin@gajrajtmx.com sales@gajrajtmx.com msmsteels@gmail.com
Website :	http://www.gajrajtmx.com
Location :	Owned
Factory 1 :	Plot No. A – 116, Addi Midc, Latur (MS), Latur – 413512, Maharashtra, India

DIRECTORS

As on. 30.09.2013

Name :

Mr. Mahesh Malang

Designation :

Director

Address :

Kanheri, Latur – 413512, Maharashtra, India

Date of Birth/Age :

16.05.1978

Date of Appointment :

10.11.2009

DIN No.:

02764257

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	U27100MH2009PTC196847	MSM Steels Private Limited	Managing director	10/11/2009	04/11/2009	-	Active	NO
2	U29100MH2010PTC202109	VIRBHADRESHWAR STEELS PRIVATE LIMITED	Director	16/04/2010	16/04/2010	-	Active	NO
3	U74999MH2013PTC246442	MALANG POWER PRIVATE LIMITED	Director	30/07/2013	30/07/2013	-	Active	NO

Name :

Mr. Mangesh Malang

Designation :

Director

Address :

LIC Colony, Latur – 413512, Maharashtra, India

Date of Birth/Age :

06.03.1984

Date of Appointment :

04.11.2009

DIN No.:

02764333

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	U27100MH2009PTC196847	MSM Steels Private Limited	Director	04/11/2009	04/11/2009	-	Active	NO
2	U29100MH2010PTC202109	VIRBHADRESHWAR STEELS PRIVATE LIMITED	Director	16/04/2010	16/04/2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Prakash Patil
Designation :	Senior Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Mahesh Dhanshree	17450097
Mahesh Malang	8184110
Shivkumar M. Patil	3464126
Mahesh N Dhanshree	128063
Manisha Shivkumar Patil	3333333
Shilpa M Malang	1
Surekha S.Malang/Shivkumar Dhanshree	1
Shailesh Belure (Pro. Ankit Traders)	1
Ratan Giri	1
Mallikarjun Swami (Pro. Siddheshwar Traders )	1
Total	32559734

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Importer of TMT Bars, Ingots, Billets.
Products :	TMT Bars Ingots Billets
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :
Products :	Raw Material
Countries :	UAE South Africa China
Terms :
Selling :	Cash, Credit and L/C
Purchasing :	Cash, Credit and L/C

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

Customers :

Wholesalers, Retailers and Manufacturer

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

No. of Employees :

300 (Approximately)

Bankers :

Banker Name	State Bank of Hyderabad
Branch Address	Chandranagar, Latur, Maharashtra, 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 :

(Rs. In Millions)

SECURED LOAN	As on 31.03.2013	As on 31.03.2012
Long Term Borrowing
Term Loan From Bank	292.607	37.137
Short Term Borrowing
Working Capital Loans from Banks	85.144	85.716
Total	377.751	122.853

Auditors :
Name :	Murarilal Agrawal and Assoicates Chartered Accountant
Address :	11 6, Chandrika- Jeevan Vikas Housing Society, Near Tuling Water Tank, Virar Road, Nallasopara (E A S T) - 401209, Dist - T H A N E, India
PAN No.:	ABAPA7417J
Memberships :	--
Collaborators :	--
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	Malang Construction Malang developers

CAPITAL STRUCTURE

As on. 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs. 10 per Share	Rs.400.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
32559734	Equity Shares	Rs. 10 per Share	Rs.325.579 Million

As on. 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs. 10 per Share	Rs.400.00 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1277234	Equity Shares	Rs. 10 per Share	Rs.127.772 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	127.772	49.772	26.319
(b) Reserves & Surplus	21.119	1.311	0.000
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	237.390	78.000	0.000
Total Shareholders’ Funds (1) + (2)	386.281	129.083	26.319
(3) Non-Current Liabilities
(a) long-term borrowings	519.744	37.137	0.000
(b) Deferred tax liabilities (Net)	3.887	0.000	0.000
(c) Other long term liabilities	0.000	0.000	54.801
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	523.631	37.137	54.801
(4) Current Liabilities
(a) Short term borrowings	85.144	85.716	52.305
(b) Trade payables	155.345	13.305	2.969
(c) Other current liabilities	57.693	13.662	0.000
(d) Short-term provisions	13.244	0.000	0.000
Total Current Liabilities (4)	311.426	112.683	55.274
TOTAL	1221.338	278.903	136.394
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	138.099	139.606	1.248
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	617.470	6.966	64.889
(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	13.838	8.782	0.000
(e) Other Non-current assets	6.541	8.721	69.040
Total Non-Current Assets	775.948	164.075	135.177
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	125.452	52.317	0.000
(c) Trade receivables	290.509	14.632	0.000
(d) Cash and cash equivalents	7.242	5.703	1.217
(e) Short-term loans and advances	20.007	39.996	0.000
(f) Other current assets	2.180	2.180	0.000
Total Current Assets	445.390	114.828	1.217
TOTAL	1221.338	278.903	136.394

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	1341.288	100.855	Nil
		Other Income	0.725	0.357	Nil
		TOTAL	1342.013	101.212	Nil
Less	EXPENSES		1302.836	98.096	Nil
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		39.177	3.116	Nil
Less/ Add	DEPRECIATION/ AMORTISATION		8.718	1.805	Nil
	PROFIT BEFORE TAX		30.459	1.311	Nil
Less	TAX		10.652	0.000	Nil
	PROFIT AFTER TAX		19.807	1.311	Nil
	Earnings Per Share (Rs.)		0.06	0.00	Nil

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin PAT / Sales	(%)	1.48	1.30	Nil
Operating Profit Margin (PBDIT/ Sales)	(%)	2.92	3.09	Nil
Return on Total Assets (PBT/Total Assets}	(%)	5.04	0.48	Nil
Return on Investment (ROI) (PBT/Networth)		0.08	0.01	Nil
Debt Equity Ratio (Total Debt /Networth)		1.57	0.95	1.99
Current Ratio (Current Asset/Current Liability)		1.43	1.02	0.02

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	26.319	49.772	127.772
Reserves & Surplus	0.000	1.311	21.119
Share Application money pending allotment	0.000	78.000	237.390
Net worth	26.319	129.083	386.281
long-term borrowings	0.000	37.137	519.744
Short term borrowings	52.305	85.716	85.144
Total borrowings	52.305	122.853	604.888
Debt/Equity ratio	1.987	0.952	1.566

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Sales	100.855	1341.288
		1,229.917

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Sales	100.855	1341.288
Profit	1.311	19.807
	1.30%	1.48%

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	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	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	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	Yes

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2013	As on 31.03.2012
Long Term Borrowing
Loans Repayable on Demand From Others	227.137	0.000
Total	227.137	0.000

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10222120	11/12/2013 *	782,400,000.00	STATE BANK OF HYDERABAD	Latur M O Branch, Chandranagar, LATUR, Maharashtr  a - 413512, INDIA	B94884137

* Date of charge modification

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.63.83
UK Pound	1	Rs.98.58
Euro	1	Rs.77.00

INFORMATION DETAILS

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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		32

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.