MIRA INFORM REPORT

Report No. :	331680
Report Date :	11.07.2015

IDENTIFICATION DETAILS

Name :	PADHAM STEEL ENTERPRISES PRIVATE LIMITED
Registered Office :	228, Hallmark Shopping Complex Vasant, Oscar L B S Marg, Mulund West, Mumbai – 400080, Maharashtra
Tel. No.:	91-22-25905530
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	23.02.2006
Com. Reg. No.:	11-159977
Capital Investment / Paid-up Capital :	Rs. 30.000 Millions
CIN No.: [Company Identification No.]	U27100MH2006PTC159977
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 :	Supplier of Iron and Steel Products.
No. of Employees :	10 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

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. There seems dip in the sales turnover of the company during 2014. The rating also takes into consideration intense competition in the steel trading business on account of presence of a large number of players given the low entry barriers and susceptibility of operations to cyclicality inherent in the steel industry. 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.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long Term Fund Based Limits = BB (Suspended)
Rating Explanation	Have inadequate credit quality carry high credit risk
Date	December 2014

Rating Agency Name	ICRA
Rating	Short Term Non Fund Based Limits = A4+
Rating Explanation	Have minimal degree of safety and carry very high credit risk.
Date	December 2014

Reason for Suspension: The Suspension follows ICRA’s inability to carry out a rating surveillance in the absence of the requisite information from the company.

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2013.

INFORMATION DENIED BY

Name :	Mr. Mehul
Designation :	Accounts Department
Contact No.:	91-22-25905530
Date :	09.07.2015

LOCATIONS

Registered Office :	228, Hallmark Shopping Complex Vasant, Oscar L B S Marg, Mulund West, Mumbai – 400080, Maharashtra, India
Tel. No.:	91-22-25905530
Fax No.:	91-22-25616080
E-Mail :	padhamsteel@hotmail.com

DIRECTORS

AS ON 21.07.2014

Name :	Mr. Hanuman Satyanarayan Agarwal
Designation :	Director
Address :	303, Bliss A, Vasant Oscar, LBS Marg, Mulund (West), Mumbai – 400080, Maharashtra, India
Date of Birth/Age :	13.03.1948
Date of Appointment :	23.02.2006
DIN No.:	00206379
Name :	Mr. Nitin Hanuman Agarwal
Designation :	Director
Address :	304, Bliss A, Vasant Oscar, LBS Marg, Mulund (West), Mumbai – 40080, Maharashtra, India
Date of Birth/Age :	28.01.1977
Date of Appointment :	23.02.2006
DIN No.:	00206164

KEY EXECUTIVES

Name :	Mr. Mehul
Designation :	Account Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 21.07.2014

Names of Shareholders	No. of Shares
Mr. Hanuman Agarwal	1005000
Mr. Nitin Agarwal	5000
Hanuman Agarwal (HUF)	900
Hanuman Agarwal Joint with Mrs. Padma Agarwal	164000
Mrs. Madhuri Gupta Joint with Hanuman Agarwal	100
Mr. Nitin Agarwal Joint with Mr. Hanuman Agarwal	210000
Mrs. Padma Agarwal joint with Mr. Hanuman Agarwal	110000
Mrs. Sangeeta Agarwal Joint with Mr. Nitin Agarwal	5000
Ms. Shailaja Shah	590000
Mrs. Sonal Shah	750000
Mr. Kaivalya	160000
Total	3000000

AS ON 21.07.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	50.00
Other top fifty shareholders	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Supplier of Iron and Steel Products.
Products :	Hot Rolled Steel Coils Cold Rolled Steel Coil Chequered Steel Coil Hot Rolled Steel Plate Boiler Quality Steel Plate Hi Tensile Plate, C-45 Grade Plate Hot Rolled Sheet Cold Rolled Sheet.
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Not Available
Purchasing :	Not Available

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 :

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 :

10 (Approximately)

Bankers :

Axis Bank Limited, Konark Darshan, Zaver Road, Mulund West – 400080, Mumbai , Maharashtra, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Motor car loan – ICICI Bank	0.308	0.000
Loans and advances from related parties	17.785	17.285
SHORT TERM BORROWINGS
Cash credit with Axis Bank	71.634	62.757
Motor car loan – ICICI Bank	0.206	0.000
Total	89.933	80.042

Auditors :
Name :	Panachand K Shah and Company Chartered Accountants
Address :	410-411, Parmeshwari Centre, M.M. Malaviya Road, Opposite Nandanvan Industrial Estate, Mulund West – 400080, Mumbai, Maharashtra, India
PAN No.:	AAHPS1732N
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON 21.07.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs. 10/- each	Rs. 40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs. 10/- each	Rs. 30.000 Millions

FINANCIAL DATA

[all figures are in Rupees Million]

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	30.000	30.000	30.000
(b) Reserves & Surplus	53.449	45.935	43.037
(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)	83.449	75.935	73.037
(3) Non-Current Liabilities
(a) long-term borrowings	18.093	17.285	17.050
(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	1.897	1.610	1.430
Total Non-current Liabilities (3)	19.990	18.895	18.480
(4) Current Liabilities
(a) Short term borrowings	71.840	62.756	92.191
(b) Trade payables	192.333	220.165	268.310
(c) Other current liabilities	0.355	0.119	1.664
(d) Short-term provisions	7.393	1.913	4.413
Total Current Liabilities (4)	271.921	284.953	366.578
TOTAL	375.360	379.783	458.095
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	10.129	10.028	10.733
(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)	0.742	0.664	0.574
(d) Long-term Loan and Advances	0.373	0.373	0.359
(e) Other Non-current assets	37.094	33.663	32.961
Total Non-Current Assets	48.338	44.728	44.627
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	98.986	148.940	140.036
(c) Trade receivables	186.874	152.593	228.616
(d) Cash and cash equivalents	39.069	27.982	21.574
(e) Short-term loans and advances	0.389	3.586	18.961
(f) Other current assets	1.704	1.954	4.281
Total Current Assets	327.022	335.055	413.468
TOTAL	375.360	379.783	458.095

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	903.236	1355.897	1571.090
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT/ (LOSS) BEFORE TAX		19.215	6.876	17.309
Less	TAX		6.436	2.235	5.770
	PROFIT/ (LOSS) AFTER TAX		12.779	4.641	11.539
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		19.434	17.036	14.681
Less	APPROPRIATIONS
		Transfer to General Reserve	5.000	0.500	5.000
		Dividend	4.500	1.500	3.600
		Tax on Dividend	0.765	0.243	0.584
	BALANCE CARRIED TO THE B/S		21.948	19.434	17.036
	Earnings / (Loss) Per Share (Rs.)		4.26	1.55	3.85

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA
Net cash flow from (used in) operation	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	1.41	0.34	0.73
Return on Total Assets (PBT/Total Assets}	(%)	5.13	1.81	3.78
Return on Investment (ROI) (PBT/Networth)		0.23	0.09	0.24
Debt Equity Ratio (Total Debt/Networth)		1.08	1.05	1.50
Current Ratio (Current Asset/Current Liability)		1.20	1.18	1.13

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	30.000	30.000	30.000
Reserves & Surplus	43.037	45.935	53.449
Net worth	73.037	75.935	83.449
long-term borrowings	17.050	17.285	18.093
Short term borrowings	92.191	62.756	71.840
Total borrowings	109.241	80.041	89.933
Debt/Equity ratio	1.496	1.054	1.078

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	1571.090	1355.897	903.236
		(13.697)	(33.385)

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	1571.090	1355.897	903.236
Profit	11.539	4.641	12.779
	0.73%	0.34%	1.41%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	------
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
17	Details of sister concerns	No
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	------
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	-------
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	-------
33	Market information	-------
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

REVIEW OF OPERATIONS AND OUTLOOK:

Financial year 2013-14 was fourth year in conjunction of high volatility for steel industry. During the year, one side cost of imported material was very high due to high fluctuation and depreciation in Indian rupee value and other side there was less demand of steel products due to slow down in industrial growth. However, in spite of multiple adverse factors, the company was able to give satisfactory performance.

Current outlook for steel industry will depend on the overall situation of the economy.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10055112	28/01/2011 *	250,000,000.00	Axis Bank Limited	KONARK DARSHAN, ZAVER ROAD, MULUND WEST, Maharashtra - 400080, INDIA	B06501555
2	10055113	28/01/2011 *	250,000,000.00	Axis Bank Limited	KONARK DARSHAN, ZAVER ROAD, MULUND WEST, Maharashtra - 400080, INDIA	B06497622

* Date of charge modification

FIXED ASSETS

• Land
• Buildings
• Plant and Machinery
• Vehicles
• Office 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 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. 63.37
UK Pound	1	Rs. 97.65
Euro	1	Rs. 70.43

INFORMATION DETAILS

Information Gathered by :	KMN
Analysis Done by :	RAS
Report Prepared by :	JYO

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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		31

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.