MIRA INFORM REPORT

Report No. :	302842
Report Date :	16.01.2015

IDENTIFICATION DETAILS

Name :	GARG AND COMPANY PRIVATE LIMITED
Registered Office :	Y-105, Loha Mandi, Naraina, New Delhi – 110 028
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	01.08.1997
Com. Reg. No.:	55-088869
Capital Investment / Paid-up Capital :	Rs.9.865 millions
CIN No.: [Company Identification No.]	U51420DL1997PTC088869
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 into trading of Iron and Steel.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

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. Reserves of the company seems to be low during 2014. However, trade relations are 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 – 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

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.

LOCATIONS

Registered Office :	Y-105, Loha Mandi, Naraina, New Delhi – 110 028, India
Tel. No. :	91-11-25897788
Fax No. :	Not Available
E-Mail :	info@gargandcompany.com

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Sunil Garg

Designation :

Director

Address :

EA-1/73, Inder Puri, New Delhi – 110 012, India

Date of Birth/Age :

04.07.1963

Date of Appointment :

01.08.1997

DIN No. :

00222502

Name :

Mrs. Meera Garg

Designation :

Director

Address :

EA-1/73, Inder Puri, New Delhi – 110 012, India

Date of Birth/Age :

04.05.1963

Date of Appointment :

13.12.2000

DIN No. :

00222477

Name :

Mr. Manish Garg

Designation :

Director

Address :

A-183, Inder Puri, New Delhi – 110 012, India

Date of Birth/Age :

08.10.1987

Date of Appointment :

10.08.2006

DIN No. :

00681533

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	U51420DL1997PTC088869	GARG AND COMPANY PRIVATE LIMITED	Director	10-08-2006	10-08-2006	-	Active	NO
2	U36912DL2013PTC253826	ELECTRON APPLIANCES PRIVATE LIMITED	Director	11-06-2013	11-06-2013	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares
Sunil Garg	299490
Manish Garg	20000
Nikhil Garg	55000
Meera Garg	207500
Shanti Garg	4000
Ravti Garg	30000
Sunil Garg (HUF)	243510
F.C. Bansal	10000
T.C. Garg	74500
Aanchal Garg	42500
Total	986500

AS ON 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged into trading of Iron and Steel.
Products :	· Plate and Sheet · MS Rod · Blade Band Saw
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :	Not Available

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 :

Not Available

Bankers :

Banker Name	HDFC Bank Limited
Branch Address	Not Available
Person Name (With Designation)	Not Available
Contact Number	Not Available
Name of Account Holder	Not Available
Account Number	Not Available
Account Since (Date/Year of Account Opening)	Not Available
Average Balance Maintained (If Possible)	Not Available
Credit Facilities Enjoyed (If any)	Not Available
Account Operation	Not Available
Remarks (If any)	Not Available

· Deutsche Bank AG, ECE House, 28 Kasturba Gandhi Marg, New Delhi – 110 001, India

· The Jammu and Kashmir Bank Limited, (Corporate Headquarters), M.A. Road, Srinagar, Kashmir, Srinagar – 190 001, Jammu and Kashmir, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
SHORT TERM BORROWINGS
Loan Repayable on Demand
- From Banks	25.590	42.269
Total	25.590	42.269

Notes:

SHORT TERM BORROWINGS

The company is availing cash credit limit from J & K bank and renewable within 11 months from the date of sanction or immediately previous renewal unless otherwise stated. The limit is secured by way of hypothecation of stocks and book debts. As a collateral security, CC limit backed by residential property in the name of director.

Banking Relations :	--
Auditors :
Name :	M.L. Kejriwal and Company Chartered Accountants
Address :	310, Ansal Majestic Tower, PVR Complex, Vikaspuri, New Delhi – 110 018, India
Tel. No. :	91-11-28542508
E-Mail :	accounts@mlkejriwal.com
PAN No.:	AAKFM0972F
Memberships :	Not Available
Collaborators :	Not Available
Enterprises in which KMP have significant influence :	AHS Steel Tech Private Limited Anupam Hydrostandard Private Limited Garg Sons India Private Limited Garg Steel Syndicate Garg Industries Tara Chand and Sons, Onex Industries Private Limited Sunil Garg HUF

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
986500	Equity Shares	Rs.10/- each	Rs.9.865 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	9.865	6.915	6.915
(b) Reserves & Surplus	1.062	0.616	0.462
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.585	0.000
Total Shareholders’ Funds (1) + (2)	10.927	8.116	7.377
(3) Non-Current Liabilities
(a) Long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.142	0.103	0.065
(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)	0.142	0.103	0.065
(4) Current Liabilities
(a) Short term borrowings	29.572	45.201	28.148
(b) Trade payables	5.413	13.838	7.224
(c) Other current liabilities	0.051	2.682	0.017
(d) Short-term provisions	0.046	0.050	0.086
Total Current Liabilities (4)	35.082	61.771	35.475
TOTAL	46.151	69.990	42.917
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3.131	2.556	2.823
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	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	0.000	0.000
Total Non-Current Assets	3.131	2.556	2.823
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	6.359	12.269	9.274
(c) Trade receivables	31.977	49.495	28.921
(d) Cash and cash equivalents	0.303	0.172	0.273
(e) Short-term loans and advances	4.178	5.284	1.356
(f) Other current assets	0.203	0.214	0.270
Total Current Assets	43.020	67.434	40.094
TOTAL	46.151	69.990	42.917

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from operations	276.654	231.614	188.225
		Other Income	0.127	0.319	0.080
		TOTAL	276.781	231.933	188.305
Less	EXPENSES
		Purchase of Stock-in-Trade	260.625	224.170	185.978
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	5.910	(2.996)	(5.048)
		Employee Benefit Expense	0.240	0.318	0.181
		Other Expenses	1.790	2.594	1.510
		Extraordinary Items	0.000	(0.001)	0.000
		TOTAL	268.565	224.085	182.621
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		8.216	7.848	5.684
Less	FINANCIAL EXPENSES		7.623	7.338	5.390
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		0.593	0.510	0.294
Less/ Add	DEPRECIATION/ AMORTISATION		0.357	0.268	0.002
	PROFIT/ (LOSS) BEFORE TAX		0.236	0.242	0.292
Less	TAX		0.084	0.088	0.121
	PROFIT/ (LOSS) AFTER TAX		0.152	0.154	0.171
	Earnings / (Loss) Per Share (Rs.)		0.15	0.22	0.42

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	0.05	0.07	0.09
Operating Profit Margin (PBDIT/ Sales)	(%)	2.97	3.39	3.02
Return on Total Assets (PBT/Total Assets}	(%)	0.51	0.35	0.68
Return on Investment (ROI) (PBT/Networth)		0.02	0.03	0.04
Debt Equity Ratio (Total Debt/Networth)		2.71	5.57	3.82
Current Ratio (Current Asset/Current Liability)		1.23	1.09	1.13

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	6.915	6.915	9.865
Reserves & Surplus	0.462	0.616	1.062
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.585	0.000
Net worth	7.377	8.116	10.927
Long Term borrowings	0.000	0.000	0.000
Short Term borrowings	28.148	45.201	29.572
Total borrowings	28.148	45.201	29.572
Debt/Equity ratio	3.816	5.569	2.706

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from operations	188.225	231.614	276.654
		23.052	19.446

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from operations	188.225	231.614	276.654
Profit	0.171	0.154	0.152
	0.09%	0.07%	0.05%

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	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	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 LOANS

PARTICULAR	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
SHORT TERM BORROWINGS
Loans from related Parties	3.982	2.932
Total	3.982	2.932

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10518294	25/07/2014	60,000,000.00	DEUTSCHE BANK AG	ECE HOUSE, 28 KASTURBA GANDHI MARG, NEW DELHI, DELHI - 110001, INDIA	C18670919
2	80002176	22/06/2012 *	50,000,000.00	THE JAMMU AND KASHMIR BANK LIMITED	(CORPORATE HEADQUARTERS), M.A. ROAD, SRINAGAR, KASHMIR, SRINAGAR, JAMMU AND KASHMIR - 190001, INDIA	B44219525

* 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 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.61.76
UK Pound	1	Rs.94.02
Euro	1	Rs.72.63

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
-- PROFITABILITY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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		27

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.