MIRA INFORM REPORT

Report No. :	304914
Report Date :	24.01.2015

IDENTIFICATION DETAILS

Name :	SOMANI ISPAT PRIVATE LIMITED
Registered Office :	No.5-2-283/A, Plot No.9 and 10, 2^nd Floor, A.N. Complex, Hyderbasti, Secunderabad – 500 003, Telangana
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	09.06.1992
Com. Reg. No.:	36-014351
Capital Investment / Paid-up Capital :	Rs.31.500 millions
CIN No.: [Company Identification No.]	U27109TG1992PTC014351
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCB4181D
Legal Form :	Private Limited Liability Company
Line of Business :	Authorised Dealer of: SAIL, VSP, Jindal, Essar and Lloyd Steel.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Profitability of the company is low. However, the rating takes into consideration company’s sound financial risk profile and fair liquidity position of the company. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual trade terms and condition.

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 :	No.5-2-283/A, Plot No.9 and 10, 2^nd Floor, A.N. Complex, Hyderbasti, Secunderabad – 500 003, Telangana, India
Tel. No.:	91-40-27542465/ 23777078
Fax No.:	91-40-23776827
E-Mail :	somaniispat@sify.com contact@somanisteel.com
Website :	www.somanisteel.com
Correspondence Office/ Stock Yard :	11-6-27/1, 2 and 3, Balanagar, Opposite IDPL Factory, Hyderabad – 500 037, Telangana, India
Tel. No.:	91-40-23772411/ 8375/ 7078/ 23776827/ 23778375
Fax No.:	91-40-23776827

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Ashok Kumar Somani

Designation :

Director

Address :

Plot No.38, Phase II, Paigah Colony, S.P. Road Secunderabad – 500 003, Telangana, India

Date of Birth/Age :

06.07.1966

Date of Appointment :

09.06.1992

DIN No.:

00114398

PAN No.:

AJRPS3694N

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	U27109TG1992PTC014351	SOMANI ISPAT PRIVATE LIMITED	Director	09/06/1992	09/06/1992	-	Active	NO
2	U27200TG2005PTC045289	SOMANI PRODUCTS PRIVATE LIMITED	Director	07/02/2005	07/02/2005	-	Active	NO
3	U27109TG2006PTC049964	MAHESWARI FASTENERS AND BRIGHT PRIVATE LIMITED	Director	20/04/2006	20/04/2006	-	Active	NO
4	U70102AP2008PTC057150	VISAKHA REALTY PRIVATE LIMITED	Director	29/09/2010	20/03/2010	-	Active	NO

Name :

Mr. Sanjay Kumar Somani

Designation :

Director

Address :

Plot No.38, Phase II, Paigah Colony, S.P. Road, Secunderabad – 500 003, Telangana, India

Date of Birth/Age :

22.03.1972

Date of Appointment :

30.03.1995

DIN No.:

00650795

PAN No.:

ABVPS3981L

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	U27109TG1992PTC014351	SOMANI ISPAT PRIVATE LIMITED	Director	30/03/1995	30/03/1995	-	Active	NO
2	U27106TG2003PTC040985	S.I.V. STEELS PRIVATE LIMITED	Director	12/05/2003	12/05/2003	-	Active	NO
3	U27200TG2005PTC045289	SOMANI PRODUCTS PRIVATE LIMITED	Director	07/02/2005	07/02/2005	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Neeraj Somani
Designation :	Account Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares
Ashok Kumar Somani	47910
Sanjay Kumar Somani	28695
Vinay Somani	450
Akash Somani	2520
Alok Somani	450
Sapna Somani	25240
Satyanarayan Somani	4360
Sudhir Kumar Somani	28190
Shanthi Devi Somani	10220
Anita Somani	12925
Rachana Somani	600
Neeta Somani	11810
Manju Somani	750
Somani Products Private Limited, India	97875
Alok Somani (HUF)	4500
K.L. Somani and Sons (HUF)	3000
Satyanarayana Somani (HUF)	6990
Ashok Kumar Somani (HUF)	6785
Sudhir Kumar Somani (HUF)	13180
Sanjay Kumar Somani (HUF)	8550
Total	315000

AS ON 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	31.07
Directors or relatives of Directors	68.93
Total	100.00

BUSINESS DETAILS

Line of Business :

Authorised Dealer of: SAIL, VSP, Jindal, Essar and Lloyd Steel.

Products :

Item Code No. (ITC Code)	Product Description
9965	Iron and Steel

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	The Karur Vysya Bank Limited
Branch Address	5-8-363 to 365, 1^st Floor, Chirag Ali Lane, ABIDS, Hyderabad – 500 001, Telangana, India
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

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
SHORT TERM BORROWINGS
Rupee term loans from banks (Secured against Stock and Debtors)	323.789	267.986
Total	323.789	267.986

Banking Relations :	--
Auditors :
Name :	Arvind Jain and Associates Chartered Accountants
Address :	25 to 29, IInd Floor, Hyderi Complex, Pan Bazar, Ranigunj, Secunderabad - 500 003, Telangana, India
PAN No.:	ACOPJ9666M
Memberships :	Not Available
Collaborators :	Not Available
Associates :	Beekay Bearing Associates Somani Products Private Limited

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs.100/- each	Rs.40.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
315000	Equity Shares	Rs.100/- each	Rs.31.500 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	31.500	31.500	31.500
(b) Reserves & Surplus	335.868	313.553	293.907
(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)	367.368	345.053	325.407
(3) Non-Current Liabilities
(a) Long-term borrowings	68.246	191.386	109.899
(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)	68.246	191.386	109.899
(4) Current Liabilities
(a) Short term borrowings	323.789	267.986	338.933
(b) Trade payables	29.101	377.448	202.874
(c) Other current liabilities	0.033	0.000	0.014
(d) Short-term provisions	15.176	13.259	15.372
Total Current Liabilities (4)	368.099	658.693	557.193
TOTAL	803.713	1195.132	992.499
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	54.798	57.631	57.666
(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	0.761	0.761	0.761
(c) Deferred tax assets (net)	0.355	0.227	0.189
(d) Long-term Loan and Advances	2.022	1.186	1.573
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	57.936	59.805	60.189
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	281.337	467.165	380.455
(c) Trade receivables	436.225	620.596	521.609
(d) Cash and cash equivalents	0.348	1.404	0.467
(e) Short-term loans and advances	27.867	46.162	29.779
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	745.777	1135.327	932.310
TOTAL	803.713	1195.132	992.499

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from operations	3961.203	4512.033	4301.892
		Other Income	13.681	6.118
		TOTAL	3974.884	4518.151	4301.892
Less	EXPENSES
		TOTAL	3898.657	4448.157	4273.828 (including financial expenses and depreciation)
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		76.227	69.994
Less	FINANCIAL EXPENSES		36.344	33.928
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		39.883	36.066
Less/ Add	DEPRECIATION/ AMORTISATION		6.760	6.972
	PROFIT/ (LOSS) BEFORE TAX		33.123	29.094	28.064
Less	TAX		10.807	9.442	8.956
	PROFIT/ (LOSS) AFTER TAX		22.316	19.652	19.108
	Earnings / (Loss) Per Share (Rs.)		70.84	62.39	60.66

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	0.56	0.44	NA
Operating Profit Margin (PBDIT/ Sales)	(%)	1.92	1.55	NA
Return on Total Assets (PBT/Total Assets}	(%)	4.13	2.44	2.83
Return on Investment (ROI) (PBT/Networth)		0.09	0.08	0.09
Debt Equity Ratio (Total Debt/Networth)		1.07	1.33	1.38
Current Ratio (Current Asset/Current Liability)		2.03	1.72	1.67

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	31.500	31.500	31.500
Reserves & Surplus	293.907	313.553	335.868
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	325.407	345.053	367.368
Long Term borrowings	109.899	191.386	68.246
Short Term borrowings	338.933	267.986	323.789
Total borrowings	448.832	459.372	392.035
Debt/Equity ratio	1.379	1.331	1.067

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)
Total Income	4,301.892	4518.151	3974.884
		5.027	(12.024)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Total Income	4,301.892	4518.151	3974.884
Profit	19.108	19.652	22.316
	0.44%	0.43%	0.56%

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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

NOTE

The registered office address has been changed from 5-4-1 to 16, Distillery Road, Secunderabad, Andhra Pradesh, India to present address w.e.f. 18.01.2012.

FINANCIAL RESULTS

During the year, the turnover of the company declined from Rs.4512.000 millions to Rs.3961.200 millions mainly due to the slowdown in the construction industries because of the uncertainty on the bifurcation of the state division. The demand for the Iron and Steel declined resulting in the decrease in the turnover. However due to the effective cost control measures the company could increase its profit and recorded a profit before tax of Rs.33.100 millions (P.Y Rs.29.100 millions) and Profit after Tax of Rs.22.300 millions. (P.Y. Rs.19.700 millions)

Now that the state bifurcation has been done and the uncertainty is settled, the market is turning favorable. Further they are expecting favorable government policies and measures to promote industries which shall give them good business opportunities to perform better. The management is confident of giving better results during the current year.

The performance of the company during the year is satisfactory. No material changes took place after the closure of the financial year.

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Loans and advances from others	68.246	191.386
Total	68.246	191.386

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90261885	05/09/2014 *	410,000,000.00	THE KARUR VYSYA BANK LIMITED	SECUNDERABAD BRANCH, # 5-2-176, RASTRAPATHI ROAD, SECUNDERABAD, TELANGANA - 500003, INDIA	C20580585

* Date of charge modification

FIXED ASSETS

· Land

· Buildings

· Factory Building

· Plant and Equipment

· Factory Equipments

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer Equipments

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.61.50
UK Pound	1	Rs.92.16
Euro	1	Rs.69.62

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	SMN

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	3
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		43

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.