MIRA INFORM REPORT

Report No. :	331103
Report Date :	11.07.2015

IDENTIFICATION DETAILS

Name :	PRAKASH STEELAGE LIMITED
Registered Office :	701, “Mahalaxmi Chambers”, Bhulabhai Desai Road, Mahalaxmi, Mumbai – 400 026, Maharashtra
Tel. No.:	91-22-66134500
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	09.05.1991
Com. Reg. No.:	11-061595
Capital Investment / Paid-up Capital :	Rs.175.000 million
CIN No.: [Company Identification No.]	L27106MH1991PLC061595
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	MUMP07782F
PAN No.: [Permanent Account No.]	AAACP6673K
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject’s operations predominantly relates to manufacturing and trading of Stainless Steel Tubes and Pipes.
No. of Employees :	Information declined by the Management.

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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 a well-established company having satisfactory track. The company possesses an above average financial profile marked by healthy networth and moderate gearing along with working capital intensive operations. Management has reported an improvement in its sales volume during FY 15. Moreover, the management has recently signed agreement regarding transfer of its seamless stainless steel tubes and pipes business in a new entity, which has formed in joint venture with Tubacex Inc. The ratings also take into consideration the susceptibility of its profitability to volatility in prices of inputs and in foreign exchange rates. However, trade relations are fair. Business is active. Payment terms are reported as usually correct. In view of established market position, the subject 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating: BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	May 04, 2015

Rating Agency Name	CRISIL
Rating	Short Term Rating: A3+
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	May 04, 2015

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 31-03-2013.

INFORMATION DECLINED BY

Name :	Mr. Surendra Tiwari
Designation :	DGM – Finance
Contact No.:	91-22-66134500
Name :	Mr. Rajesh Desai
Designation :	Not Divulged
Contact No.:	91-22-66134500
Date :	08.07.2015

LOCATIONS

Registered Office/ Corporate Office :	701, “Mahalaxmi Chambers”, Bhulabhai Desai Road, Mahalaxmi, Mumbai – 400 026, Maharashtra, India
Tel. No.:	91-22-66134500
Fax No.:	91-22-66134599
E-Mail :	investorsgrievances@prakashsteelage.com cs@prakashsteelage.com exports@prakashsteelage.com sales@prakashsteelage.com info@prakashsteelage.com surendra_ca@prakashsteelage.com
Website :	http://prakashsteelage.com
Factory 1 :	Survey No.46/1, Parjai Road, Village: Kherdi, Silvassa – 396 230, Union Territory of Dadra and Nagar Haveli, India
Factory 2 :	Plot No.131/1, Umbergaon, Sanjan Road, District Valsad – 396 170, Gujarat, India

DIRECTORS

AS ON 31.03.2014

Name :	Mr. Prakash C. Kanugo
Designation :	Chairman and Managing Director
Date of Birth/ Age :	02.07.1953
Date of Appointment :	09.05.1991
Name :	Mr. Ashok M. Seth
Designation :	Whole-time Director and Chief Finance Officer
Date of Birth/ Age :	11.05.1973
Date of Appointment :	09.11.1993
Name :	Mr. Hemant P. Kanugo
Designation :	Whole-time Director
Date of Birth/ Age :	14.10.1979
Date of Appointment :	30.09.2003
Name :	Mr. Kamal P. Kanugo
Designation :	Whole-time Director
Date of Birth/ Age :	11.03.1984
Date of Appointment :	16.05.2008
Name :	Dr. Bipin C. Doshi
Designation :	Independent Director
Name :	Mr. Himanshu J. Thaker
Designation :	Independent Director
Name :	Mr. Gautam Chand Jain
Designation :	Independent Director
Name :	Mr. A. Prakashchandra Hegde
Designation :	Independent Director

KEY EXECUTIVES

Name :	Ms. Pallavi P. Shedge
Designation :	Company Secretary and Compliance Officer
Name :	Mr. Surendra Tiwari
Designation :	DGM – Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2015

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	360437	2.06
Any Others (Specify)	11366587	64.95
Directors/Promoters & their Relatives & Friends	6889713	39.37
Group Companies	4476874	25.58
Sub Total	11727024	67.01
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	11727024	67.01
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	550000	3.14
Foreign Institutional Investors	739992	4.23
Sub Total	1289992	7.37
(2) Non-Institutions
Bodies Corporate	3427506	19.59
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	399103	2.28
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	644463	3.68
Any Others (Specify)	11951	0.07
Clearing Members	10172	0.06
Non Resident Indians	1779	0.01
Sub Total	4483023	25.62
Total Public shareholding (B)	5773015	32.99
Total (A)+(B)	17500039	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	17500039	0.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Sl. No.	Name of the Shareholder	Details of Shares held		Encumbered shares (*)
		No. of Shares held	As a % of grand total	No	As a percentage	As a % of grand total of sub-clause (I)(a)
1	Prakash C Kanugo	3783500	21.62	0	0.00	0.00
2	AMS Trading and Investment Private Limited	2876000	16.43	2234093	77.68	12.77
3	Seth Iron and Steel Private Limited	1490000	8.51	0	0.00	0.00
4	Kirti P Kanugo	583074	3.33	0	0.00	0.00
5	Hemant Prakash Kanugo	561753	3.21	0	0.00	0.00
6	Kamal Prakash Kanugo	557752	3.19	0	0.00	0.00
7	Vimal Prakash Kanugo	505159	2.89	0	0.00	0.00
8	Ashok M Seth	448400	2.56	0	0.00	0.00
9	Babita Prakash Kanugo	300075	1.71	0	0.00	0.00
10	Prakash Chhaganlal Kango HUF	260437	1.49	0	0.00	0.00
11	Seth Steelage Private Limited	110874	0.63	0	0.00	0.00
12	Seth Ashok Mafatlal	50000	0.29	0	0.00	0.00
13	Dheliben Mafatlal Seth	50000	0.29	0	0.00	0.00
14	Mafatlal Chogamal Seth	50000	0.29	0	0.00	0.00
15	Mafatlal Chogamal Seth HUF	50000	0.29	0	0.00	0.00
16	Nirmala Ashok Seth	50000	0.29	0	0.00	0.00
	Total	11727024	67.01	2234093	19.05	12.77

(*) The term encumbrance has the same meaning as assigned to it in regulation 28(3) of the SAST Regulations, 2011.

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
1	Balmiki Agencies Private Limited	970649	5.55
2	Mentor Capital Limited	848652	4.85
3	General Insurance Corporation of India	550000	3.14
4	Cresta Fund Limited	382361	2.18
5	Emerging India Focus Funds	357631	2.04
6	Sunidhi Capital Private Limited	334259	1.91
7	Haridarshan Sales Private Limited	270000	1.54
8	Swagatm Marketing Private Limited	250236	1.43
9	Trisons Metalex Private Limited	183000	1.05
	Total	4146788	23.70

Shareholding of securities (including shares, warrants, convertible securities) of persons (together with PAC) belonging to the category “Public” and holding more than 5% of the total number of shares of the company

Sl. No.	Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them	No. of Shares	Shares as % of Total No. of Shares
1	Balmiki Agencies Private Limited	970649	5.55
	Total	970649	5.55

BUSINESS DETAILS

Line of Business :

Subject’s operations predominantly relates to manufacturing and trading of Stainless Steel Tubes and Pipes.

Products :

Item Code No. (ITC Code)	7304.90
Product Description	Stainless Steel Seamless Pipes /Tubes
Item Code No. (ITC Code)	7306.90
Product Description	Stainless Steel Welded Pipes / Tubes

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Not Divulged

Purchasing :

Not Divulged

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Payment Behaviour	Market Goodwill	Overall
Not Divulged	Not Divulged	Not Divulged

Remark:

Not Divulged

Customers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Product Quality	Delivery Behaviour	Overall
Not Divulged	Not Divulged	Not Divulged

Remark:

Not Divulged

No. of Employees :

Information declined by the Management.

Bankers :

Banker Name	Vijaya Bank
Branch Address	Overseas Branch, Maker Chambers-IV, Nairman Point, Mumbai – 400 021, 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

· Bank of Baroda, Gulalwadi Branch, 24/30, 2^nd Panjarapole Lane, C.P. Tank Road, Mumbai – 400 004, Maharashtra, India

· Union Bank of India

· Bank of India

· DBS Bank Limited

Facilities :

Secured Loans	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
LONG-TERM BORROWINGS
Term Loans
Indian rupee loan from Bank	NA	138.331
Vehicle Loans
From Banks	NA	2.679
From NBFC's	NA	0.000
SHORT-TERM BORROWINGS
Cash Credit from Banks	NA	1757.921
Buyers' Credit from Banks	NA	117.445
Working Capital loan from Bank	NA	60.000
Export Packing Credit from Banks	NA	81.206
Bill Discounting from Banks	NA	0.000
Total	NA	2157.582

Notes:

Long-Term Borrowings

Indian rupee loan from Banks (secured) carries interest @ 15.50% p.a. The loan is repayable in 84 monthly installments of Rs.1.461 million each along with interest from the date of loan, viz., 10^th July, 2008 the loan is secured by way of mortgage of factory land and building, and hypothecation of plant and machinery of Company at Umbergaon. (First pari passu charge between Vijaya Bank and Bank of Baroda )

Indian rupee loan from Banks (secured) carries interest 13% p.a. to 14.25% p.a. The loan is repayable after 15 months from the date of first disbursement (date: 18.05.2013) in 59 monthly equal installments of Rs.4.170 million and last installment will be of Rs.3.970 million along with interest from the date of loan, Interest and other charges to be paid as and when debited. This loan is secured by way of mortgage of factory land and building, and hypothecation of plant and machinery of Company at Umbergaon. (First pari passu charge with Vijaya Bank and Bank of Baroda). Also second pari passu charge on current assets of the Company including stocks and book debts.

Vehicle loans from Banks (secured) carries interest in the range of 7.50% p.a. to 12.50% p.a. All the loans are repayable in 34 - 55 monthly installments from the date of disbursement. These loans are secured against hypothecation of respective Vehicles and Post Dated Cheques for Principal and Interest payable thereon.

Vehicle loan from NBFC (secured) outstanding as at end of the previous year carried interest of approximately 11.50% p.a. The loan was repayable in 34 monthly installments from the date of disbursement and is secured against hypothecation of respective vehicle and Post Dated Cheques for Principal and Interest payable thereon.

Short-Term Borrowings

Cash Credit from Banks (Secured) and Working Capital Loan from Bank (Secured) are repayable on demand and carries interest @ 12.20% to 12.85% p.a., Buyers Credit (Secured) represents Foreign Currency Buyers Credit from various Banks which carries interest ranging from 1 % to 5.25 % p.a. having a tenor of maximum upto 180 days., Export Packing Credit from Banks (Secured) represents export packing Credit facility from various banks. The tenor of the facility is maximum upto 180 days and the rate of interest (Foreign Currency facility) is Margin + LIBOR i.e. approximately 3.50% to 5 % p.a. and rate of interest (Indian Currency facility) is @ 13.00% p.a. and Bill Discounting from Banks (Secured) outstanding as at the end of the previous year represents bill discounted with various banks. The tenor of the loan is in the range of 40 - 120 days and the rate of interest (local bill discounting) is 10.25% p.a. to 11% p.a. and rate of interest (foreign bill discounting) is in the range of 4 % to 5% p.a., All these loans are secured by hypothecation of Stocks of Raw Material, Stocks-in-process, Finished Goods, stores and spares (not relating to plant and machinery), bills receivables, book debts and all other current assets and movables (both present and future) at Silvassa and Umargaon [First Pari Passu charges amongst Vijaya Bank, Bank of Baroda, Union Bank Of India, Bank of India and DBS Bank Limited., and the whole of the movable plant and machinery including all the spare parts and all other movable assets such as furniture, fixture, fittings, vehicles and equipments (both present and future) at Silvassa (First Pari Passu charges amongst the above mentioned banks] and at Umargaon (Second Pari Passu charges amongst above mentioned banks) and collateral securities in form of first pari-passu charge on piece and parcel of non-agricultural land along with the building at Silvassa and office premises no 101 and 102 at Islampura Street, at Mumbai, 701, Mahalaxmi Chambers, at Mumbai, Bungalow unit No. C-26, at Swapan Lok Complex, Lonavla, District Pune, Plot at Ohm Industrial Infrastructure Park, Umbergaon, District Valsad, State Gujrat and two residential Plot No. B-30 and C-20, at Sheetal Township project, Umbergaon, District: Valsad , State Gujrat belonging to three Directors and their relatives and personal guarantee of four directors and their relatives

Banking Relations :	--
Statutory Auditors :
Name :	Khandelwal Jain and Company Chartered Accountants
Address :	12-B, Baldota Bhavan, 5^th Floor, 117, M.K. Road, Churchgate, Mumbai – 400 020, Maharashtra, India
Name :	D.C. Bothra and Company Chartered Accountants
Address :	297, Tardeo Road, Willie Mansion, 1^st Floor, Nana Chowk, Mumbai – 400 007, Maharashtra, India
Name :	Batliboi and Purohit Chartered Accountants
Internal Auditors :
Name :	Anand Jain and Associates Chartered Accountants
Subsidiary Company (As on 31.03.2014) :	Pioneer Stainless and Alloy – F.Z.E., UAE (w.e.f. 10^th April, 2013)
Enterprise of which key management person (Shri Prakash Kanugo) is proprietor (As on 31.03.2014) :	Sunrise Metal Industries
Associates/ Enterprises over which directors and / or their relatives has significant influence (As on 31.03.2014) :	AMS Trading and Investments Private Limited Seth Iron and Steel Private Limited Seth Steelage Private Limited Prakash Stainless Private Limited PCK Metal Private Limited Seth Carbon and Alloys Private Limited Prakash and Daga Infra Projects Private Limited Prakash C. Kanugo (HUF) Ashok M. Seth (HUF) Prakash Integrated Hi-Tech Steel and Metal Cluster Private Limited Chandan and Kanugo Land Developer Hemant and Co. Prakash Land Developer Hemant P Kanugo (HUF) Vimal P Kanugo (HUF)

CAPITAL STRUCTURE

AS ON 31.03.2015

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs.175.000 million

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17500039	Equity Shares	Rs.10/- each	Rs.175.000 million

a) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period:

Equity shares	As at 31^st March, 2014
	No. of Shares	Amount (Rs. in million)
At the beginning of the period	17500039	175.000
Issued during the year	--	--
Outstanding at the end of the period	17500039	175.000

b) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

The Board of Directors, in their meeting on 29^th May, 2014, proposed a final dividend of Re.1/- per equity share. The proposal is subject to the approval of shareholders at the Annual General Meeting to be held on 13^th August, 2014. The total dividend appropriation for the year ended 31^st March, 2014 amounted to Rs.17.500 million excluding corporate dividend tax of Rs.2.974 million.

During the year ended 31^st March, 2013, the amount of final dividend recognized as distributions to equity shareholders was Re.1/- per equity share. The total dividend appropriation for the year ended 31^st March, 2013 amounted to Rs.17.500 million excluding corporate dividend tax of Rs.2.974 million.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in the proportion to the number of equity shares held by the shareholders.

c) Details of shareholders holding more than 5% shares in the Company

Particulars	As at 31^st March, 2014
	No. of Shares	% of holding in the class
Equity shares of Rs.10 each fully paid
Prakash C. Kanugo	3783500	21.62%
AMS Trading and Investment Private Limited	2876000	16.43%
Seth Iron and Steel Private Limited	1490000	8.51%
Balmiki Agencies Private Limited	970649	5.55%

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I.              EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	175.000	175.000	175.000
(b) Reserves & Surplus	1744.513	1620.431	1475.412
(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)	1919.513	1795.431	1650.412
(3) Non-Current Liabilities
(a) Long-term borrowings	483.019	391.010	55.699
(b) Deferred tax liabilities (Net)	64.664	72.377	64.954
(c) Other long term liabilities	0.000	0.000	0.000
(d) Long-term provisions	8.377	6.296	7.832
Total Non-current Liabilities (3)	556.060	469.683	128.485
(4) Current Liabilities
(a) Short term borrowings	1896.920	2188.786	1959.306
(b) Trade payables	3280.147	1585.359	1350.252
(c) Other current liabilities	244.258	260.525	217.326
(d) Short-term provisions	76.111	70.968	41.374
Total Current Liabilities (4)	5497.436	4105.638	3568.258
TOTAL	7973.009	6370.752	5347.155
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	821.639	821.251	704.107
(ii) Intangible Assets		18.232	2.909
(iii) Capital work-in-progress		6.819	118.129
(iv) Intangible assets under development	0.000	0.000	20.070
(b) Non-current Investments	4.035	4.036	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	148.420	100.279	87.869
(e) Other Non-current assets	0.000	8.331	25.885
Total Non-Current Assets	974.094	958.948	958.969
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	2661.900	2054.578	1876.954
(c) Trade receivables	3656.315	2791.798	2019.733
(d) Cash and cash equivalents	93.913	182.459	145.217
(e) Short-term loans and advances	525.909	326.492	282.845
(f) Other current assets	60.878	56.477	63.437
Total Current Assets	6998.915	5411.804	4388.186
TOTAL	7973.009	6370.752	5347.155

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Revenue From Operations (Net)	10724.319	9442.179	7932.153
		Other Income	121.199	41.176	96.446
		TOTAL (A)	10845.518	9483.355	8028.599
Less	EXPENSES
		Purchases	7765.060	6749.251	5155.681
		Raw Material Consumed	2342.097	1923.487	2383.765
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(598.646)	(329.639)	(631.754)
		Stores & Spares Consumed	126.893	93.913	153.699
		Employee Benefit Expenses	105.959	99.951	105.658
		Other Expenses	312.046	276.700	283.710
		Prior Period Adjustments	--	(0.031)	1.100
		Exceptional Items	102.593	(17.500)	0.000
		TOTAL (B)	10156.002	8796.132	7451.859
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		689.516	687.223	576.740
Less	FINANCIAL EXPENSES (D)		361.948	353.210	298.509
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		327.568	334.013	278.231
Less/ Add	DEPRECIATION/ AMORTISATION (F)		113.597	80.867	72.372
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		213.971	253.146	205.859
Less	TAX (H)		73.369	87.654	65.589
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		140.602	165.492	140.270
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		673.528	578.510	508.714
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	50.000	50.000
		Proposed Dividend & Tax on Dividend	NA	20.474	20.474
	BALANCE CARRIED TO THE B/S		NA	673.528	578.510
	EARNINGS IN FOREIGN CURRENCY
		Exports of Goods	NA	1260.724	976.976
	TOTAL EARNINGS		NA	1260.724	976.976
	IMPORTS
		Material	NA	799.065	882.821
		Capital Goods	NA	54.542	14.642
		Stores & Spares	NA	2.480	3.179
	TOTAL IMPORTS		NA	856.087	900.642
	Earnings / (Loss) Per Share (Rs.)		8.03	9.46	8.02

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current maturities of long-term debt	NA	61.837	37.931
Cash generated from operations	NA	(35.277)	356.285
Net cash from (used in) operating activities	NA	(88.431)	274.274

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	1.31	1.75	1.77
Operating Profit Margin (PBIDT/Sales)	(%)	6.43	7.28	7.27
Return on Total Assets (PBT/Total Assets}	(%)	2.69	3.98	3.95
Return on Investment (ROI) (PBT/Networth)		0.11	0.14	0.12
Debt Equity Ratio (Total Debt /Networth)		1.24	1.44	1.22
Current Ratio (Current Asset/Current Liability)		1.27	1.32	1.23

STOCK PRICES

Face Value	Rs.10.00/-
Market Value	Rs.109.30/-

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	175.000	175.000	175.000
Reserves & Surplus	1475.412	1620.431	1744.513
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	1650.412	1795.431	1919.513
Long-term borrowings	55.699	391.010	483.019
Short term borrowings	1959.306	2188.786	1896.920
Total borrowings	2015.005	2579.796	2379.939
Debt/Equity ratio	1.221	1.437	1.240

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Revenue From Operations (Net)	7932.153	9442.179	10724.319
		19.037	13.579

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Revenue From Operations (Net)	7932.153	9442.179	10724.319
Profit	140.270	165.492	140.602
	1.77%	1.75%	1.31%

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	Yes
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

UNSECURED LOAN

Particulars	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
LONG-TERM BORROWINGS
Term Loans
Indian rupee loan from Promoter Director	NA	250.000
Working Capital Loan
Indian rupee loan from NBFC	NA	0.000
SHORT-TERM BORROWINGS
Working Capital loan from Bank	NA	0.000
Bill Discounting from Bank	NA	31.415
Bill Discounting from a NBFC	NA	140.799
Loan from NBFC	NA	0.000
Total	NA	422.214

Notes:

Long Term Borrowings

Indian rupee loan from Promoter Director (Unsecured) taken from a proprietary concern of a Promoter Director, carries interest @ 9.00%. The loan is repayable after the expiry of 5 years with an option to be paid fully or in trenches. The interest is payable on yearly basis. The said loan has been introduced as per the loan sanction terms and conditions of Vijaya bank and Bank of India and shall remain in the business during the currency of the loan from both the banks.

Working Capital loan from NBFC (unsecured) taken on 26^th February, 2013 for a period of 24 months carrying interest rate of 10.75% p.a. flat on Rs.30.000 million. The same is repayable in 12 monthly installments of Rs.1.822 million in the first year of the loan and installments of Rs.1.215 million for the remaining period of the loan. The loan has been sanctioned against collateral of Rs.6.000 million with the lender along with post-dated cheques for Principal and Interest payable thereon and personal guarantee of three directors.

Short-Term Borrowings

Working capital loan from Bank (Unsecured) outstanding as at the end of the previous year was availed for meeting working capital requirements of the company. The maximum tenor of the loan is 180 days and rollover was permitted after cooling period 3 days. The rate of interest is 12.75% to 13.25% p.a. The interest is payable monthly at the end of each month / at the end of closure of the loan transaction. Bill Discounting from Bank (Unsecured) represents export bills discounted with local banks. The tenor of the loan is in the range of 50 to 120 days and the rate of interest is approximately 10% to 10.70% p.a. Bill Discounting from a NBFC (Unsecured) is availed from finance companies and the tenor of the loan is 90 to 120 days and the rate of interest is 14.25% to 16.75% p.a.

Loan from NBFC (unsecured) outstanding as at the end of the previous year taken for 12 months on September 28, 2012 carries interest @ STLR (floating) less 1.75% which is 14.75% p.a. payable on a monthly basis is availed from a finance company. The principal amount is repayable in 3 monthly equal installments starting after 9 months of the availment of loan. The same has been sanctioned against the pledge of unecumbered shares of the company held by a Promoter company to maintain the security cover equal to 2.50 times at all times during the tenure of the loan and irrevocable and unconditional, personal guarantee of two directors and corporate guarantee by the said promoter company.

CONTINGENT LIABILITIES:

Particulars	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
Contingent liabilities not provided for in respect of:
(a) Guarantees given by the bankers of the company	NA	43.665
(b) Sales Tax demands disputed in appeals	NA	15.459
(c) Letter of Credit	NA	0.000
(d) Gujarat Commercial Tax Penalty	NA	0.000
(e) Central Sales Tax Liability towards pending declaration forms	NA	29.811
(f) Disputed Excise Duty Rebate Claim	NA	0.551
(g) Disputed CENVAT Credit	NA	3.600
(h) Commitment towards development work for Industrial Park Project	NA	85.000

FIXED ASSETS:

Tangible Assets

· Factory Land

· Factory Building

· Office Building

· Plant and Machinery

· Electrical and Telephone

· Installation and Office Equipment

· Computers

· Furniture and Fixtures

· Vehicles

· Live Stock

Intangible Assets

· Computer Software

WEBSITE DETAILS:

PRESS RELEASE:

PRAKASH STEELAGE HIVES OFF TUBE DIVISION INTO JV WITH SPANISH CO

Mumbai, February 16:   Prakash Steelage has spun off its seamless stainless steel tube division into a separate entity to form a joint venture with Spain-based Tubacex. The Spanish company will pay Rs.2500.000 million to the Prakash Steelage for its 68 percent equity stake in the new entity yet to be named. Of the total sum, Prakash Steelage will use Rs.2000.000 million to partly pay Rs.3400.000 million debt at the parent company level.

NEW PRODUCTS

The rest of the money will be utilized to bring in new products and technology at the joint venture company. Being listed on NSE and BSE, Prakash Steel age has to seek shareholders’ approval on the proposal. Speaking to media Ashok M Seth, Executive Director, Prakash Steel age, said the deal would benefit the shareholders indirectly as the debt level would come down substantially and also benefit from the dividend to the extent of its 32 per cent holding in the subsidiary company. “Tubacex would be able to bring in its global technology and tap the market demand emanating from sectors such as oil and gas and energy, including nuclear power,” he added.

Money matters

Prakash generates a revenue of Rs.1750.000 million from the seamless steel tube business with production capacity of 10,000 tonnes per annum while the other two legs of business — steel trading and manufacturing — account for Rs.8250.000 million. Listed on Spanish Stock Exchange since 1970, Tubacex is a global leader in niche stainless steel and high-alloyed seamless tubes and annual sales turnover of €700 million. It has production facility in Spain, Austria, China, Italy and United States and service centers in Brazil, France and Houston. Jesus Esmoris, Chief Executive Officer, Tubacex South Asia said the company intends to double the capacity in the joint venture to 20,000 tonnes in two years. “India imports about 60 percent of the specialty seamless steel products requirement from various countries. From Spain we export steel worth about Rs.650.000 million to India and this joint venture would help us to tap the market more efficiently,” he said.

PRAKASH STEELAGE TO SET UP INDUSTRIAL PARK IN GUJARAT

WILL INVEST RS 700.000 MILLION PARK TARGETED AT SMES IN THE STATE

Mumbai: January 23, 2014:

BSE-listed Prakash Steelage will invest Rs.700.000 million to set up Krishna Industrial Park (KIP) in Umbergaon in Gujarat to meet the growing demands of upcoming SMEs in the state.

"They are investing Rs.700.000 million to set up Krishna Industrial Park in Umbergaon in Gujarat. The state-of-the-art facility is set to open new avenues for SMEs in Gujarat," Prakash Steelage Chairman and Managing Director Prakash Kanugo told reporters here today.

To be set up in association with Kargwal Group, KIP will provide infrastructure ready industrial plots for factories, warehouses, workshops and service stations.

The park is targeted at small and medium enterprises such as textile industries, stainless steel, metal, packaging, plastic manufacturing, automobiles, food and agriculture, minerals and cold storages, Kanugo said.

The company hopes to post Rs.10000.000 million turnover in FY14 as compared to Rs.8500.000 million in FY13, he added.

Moreover, the Valsad-Umbergaon industrial area has been identified as an emerging industrial hub which makes it an attractive destination for companies from Maharashtra and Gujarat, Kargwal Group Managing Director Devang Varma said.

The KIP will offer good connectivity to ports and highways and has an exclusive loading and unloading area along with ample parking space. The plots are offered in the range of 427 sq mts to 3,325 sq mts and the project will be ready in the next two years.

Prakash Steelage is engaged in the manufacturing of seamless and welded stainless tubes and U-tubes from its two factories in Umbergaon in Gujarat and Silvassa.

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 records 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.63.38
UK Pound	1	Rs.97.65
Euro	1	Rs.70.43

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	KAS
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	5
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.