MIRA INFORM REPORT

Report No. :	300708
Report Date :	14.01.2015

IDENTIFICATION DETAILS

Name :	SUMANGALA STEEL PRIVATE LIMITED

Registered Office :	45, Chamiers Road, Raja Annamalaipuram, Chennai – 600028, Tamilnadu

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	30.09.1985

Com. Reg. No.:	18-012238

Capital Investment / Paid-up Capital :	Rs.108.738 Million

CIN No.: [Company Identification No.]	U27101TN1985PTC012238

TAN No.: [Tax Deduction & Collection Account No.]	CHES01711D

PAN No.: [Permanent Account No.]	AABCS0344R

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturing, trading, selling, Billets and allied products.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 700000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track. Trade relations seem to be fair. Business is active. Payment terms are reported as usually correct. In view of experienced promoters, 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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

India

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 : BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	November 20, 2014

Rating Agency Name	CRISIL
Rating	Short term rating : A3
Rating Explanation	Moderate degree of safety and higher credit risk
Date	November 20, 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 :	45, Chamiers Road, Raja Annamalaipuram, Chennai – 600028, Tamilnadu, India
Tel. No.:	91-44-24345828 / 24322577
Fax No.:	Not Available
E-Mail :	cmd@ritesteel.com sspl@sumangala.co.in

Manufacturer of Unit:	PIPDIC Industrial State, Mettupalayam, Pondicherry, India

DIRECTORS

As on 30.09.2014

Name :

Rajendran Sabanayagam

Designation :

Chairman – cum – Managing Director

Date of Birth/Age :

05.06.1953

Date of Appointment :

31.03.1987

Voter ID No.:

LWN3194115

DIN No.:

00921840

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	U74999TN1985PTC011753	SREE SUMANGALA METALS AND INDUSTRIES PRIVATE LIMITED	Director	15-04-1985	15-04-1985	17-08-2007	Active	NO
2	U27101TN1985PTC012238	SUMANGALA STEEL PRIVATE LIMITED	Director	31-03-1987	31-03-1987	-	Active	NO
3	U29256TN1980PTC008446	SABA ENGINEERING PRIVATE LIMITED	Director	31-03-1987	31-03-1987	-	Active	NO
4	U65991TN1991PTC021097	SABA & SONS PRIVATE LIMITED	Director	10-07-1991	10-07-1991	03-12-2012	Active	NO
5	U27105TN1995PTC030037	RITE STEEL INDUSTRIES PRIVATE LIMITED	Director	01-07-2008	01-07-2008	-	Active	NO
6	U70200TN2008PTC069732	REBAR DESIGN AND DETAIL PRIVATE LIMITED	Director	31-10-2008	31-10-2008	-	Active	NO
7	U70200TN2011PTC079395	SUMANGALA INDUSTRIAL PARKS AND INVESTMENTS PRIVATE LIMITED	Director	28-02-2011	28-02-2011	-	Active	NO

Name :

Mr. Thirunavukarasu Vaidyanathan

Designation :

Director

Address :

93, Salai Theru, Oulgaret, Pondicherry - 605509, India

Date of Birth/Age :

07.02.1960

Date of Appointment :

17.08.2007

DIN No.:

02269652

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	U27101TN1985PTC012238	SUMANGALA STEEL PRIVATE LIMITED	Director	17-08-2007	17-08-2007	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Names of Shareholders	No. of Shares
Rajendran Sabanayagam	569614
Ashwin Sabanayagam	99386
Sri Lakshmi Vishnu Meenakshi Trust	399875
P. S. Ramanathan	11000
Rapar Investments	7500
Total	1087375

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2014

Category	Percentage
Bodies corporate	61.52
Directors or relatives of Directors	38.48
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing, trading, selling, Billets and allied products.

Products :

Item Code No.	Product Description
72071920	Non Alloy Steel Billets

Iron Chips

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Available

Imports :

Not Available

Terms :

Not Available

RODUCTION STATUS (AS ON 31.03.2014)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Billets	in tons	150000	108000	42024

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Not Available

Bankers :

Axis Bank Limited, Corporate Banking Branch, No. 192, Karumuthu Nilayam, Anna Salai, Chennai – 600002, Tamil Nadu, India
Kotak Mahindra Bank Limited, 36-38a, Nariman Bhavan, 227,D, Nariman Point,, Mumbai - 400021, Maharashtra, India

Facilities :

Secured Loan	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long-term Borrowings
Term loans from banks	0.861	6.528
Short-term borrowings
Loans repayable on demand from banks	128.574	113.172
Loans repayable on demand from others	9.487	186.774
Total	138.922	306.474


Banking Relations :	---

Auditors :
Name :	S. K. Ram and Associates Chartered Accountants
Address :	57 A, New No 103, P.S. Sivaswamy S A L A I, Mylapore, Chennai – 600 103, India
PAN N Income-tax PAN of auditor or auditor's firm :	ACPPB9059C

Memberships :	--

Collaborators :	--

Associates/Subsidiaries :	NIL

CAPITAL STRUCTURE

As on 31.03.2014

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

1087375	Equity Shares	Rs.100/- each	Rs.108.737 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	108.737	108.737	108.737
(b) Reserves & Surplus	160.622	154.125	142.921
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	269.359	262.862	251.658

(3) Non-Current Liabilities
(a) long-term borrowings	0.861	9.160	16.964
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(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)	0.861	9.160	16.964

(4) Current Liabilities
(a) Short term borrowings	138.061	299.946	110.615
(b) Trade payables	126.691	90.115	91.181
(c) Other current liabilities	52.875	55.019	89.916
(d) Short-term provisions	0.481	5.990	6.502
Total Current Liabilities (4)	318.108	451.070	298.214

TOTAL	588.328	723.092	566.836

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	173.100	175.193	175.030
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.448	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	0.000	0.000	0.000
(e) Other Non-current assets	0.000	1.561	3.122
Total Non-Current Assets	173.548	176.754	178.152

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	145.696	275.492	104.462
(c) Trade receivables	99.433	87.921	117.868
(d) Cash and cash equivalents	32.852	37.146	21.866
(e) Short-term loans and advances	136.799	145.779	144.488
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	414.780	546.338	388.684

TOTAL	588.328	723.092	566.836

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Turnover	1439.202	1921.386	1719.203
	Other Income	NA	NA	NA
	TOTAL	NA	NA	NA

Less	EXPENSES	NA	NA	NA

Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	49.133	46.755	51.705

Less	FINANCIAL EXPENSES	25.804	16.513	22.331

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	23.329	30.242	29.374

Less/ Add	DEPRECIATION/ AMORTISATION	16.832	19.038	18.769

	PROFIT/ (LOSS) BEFORE TAX	6.497	11.204	10.605

Less	TAX	0.000	0.000	0.000

	PROFIT/ (LOSS) AFTER TAX	6.497	11.204	10.605

	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	109.503	447.950	20.457

	IMPORTS
	Raw Materials	304.223	568.085	643.848

	Earnings / (Loss) Per Share (Rs.)	5.97	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	0.45	0.58	0.62

Operating Profit Margin (PBIDT/Sales)	(%)	3.41	2.43	3.01

Return on Total Assets (PBT/Total Assets}	(%)	1.11	1.55	1.87

Return on Investment (ROI) (PBT/Networth)		0.02	0.04	0.04

Debt Equity Ratio (Total Debt /Networth)		0.52	1.18	0.51

Current Ratio (Current Asset/Current Liability)		1.30	1.21	1.30

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	108.737	108.737	108.737
Reserves & Surplus	142.921	154.125	160.622
Net worth	251.658	262.862	269.359

long-term borrowings	16.964	9.160	0.861
Short term borrowings	110.615	299.946	138.061
Total borrowings	127.579	309.106	138.922
Debt/Equity ratio	0.507	1.176	0.516

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	1719.203	1921.386	1439.202
		11.760	(25.096)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Turnover	1719.203	1921.386	1439.202
Profit	10.605	11.204	6.497
	0.62%	0.58%	0.45%

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	No
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	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

RESULTS OF OPERATIONS:

In the financial year 2013-14 was a very Crucial and difficult period and the company faced a steep and severe recessional trend in the Indian economy. The company contracted its production and sales volume to ensure gross margin were protected. Despite all these, the company has achieved a marginal profit of Rs.6.497 Millions after tax.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10326336	03/01/2012	4,294,036.00	KOTAK MAHINDRA BANK LIMITED	36-38A, NARIMAN BHAVAN, 227,D,, NARIMAN POINT,, M UMBAI, MAHARASHTRA - 400021, INDIA	B29042793
2	10074967	01/12/2014 *	395,000,000.00	AXIS BANK LIMITED	CREDIT MANAGEMENT CENTRE, FIRST FLOOR,, NO: 192, KARUMUTHU NILAYAM, ANNASALAI, CHENNAI, TAMIL NADU - 600002, INDIA	C37921228
3	90299978	25/04/1990	435,875.00	M/S. INDIA EQUIPMENT LEASING LTD.	21; PATULLOS ROAD, MADRAS, TAMIL NADU - 600002, IN DIA	-

UNSECURED LOAN

PARTICULARS

31.03.2014

(Rs. in Millions)

31.03.2013

(Rs. in Millions)

Term loans from banks

0.000

2.632

Total

0.000

2.632

FIXED ASSETS

Land
Buildings
Other Building
Plant And Equipment
Other Plant And Equipment
Furniture And Fixtures
Vehicles
Motor Vehicles
Office Equipment
Computer Equipment’s
Other Equipment’s

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 records 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.63.39
UK Pound	1	Rs.96.85
Euro	1	Rs.75.67

INFORMATION DETAILS

Analysis Done by :	SUB

Report Prepared by :	ROO

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	5
--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		44

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.

MIRA INFORM REPORT

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