MIRA INFORM REPORT

Report No. :	333030
Report Date :	20.07.2015

IDENTIFICATION DETAILS

Name :	POSCO INDIA CHENNAI STEEL PROCESSING CENTRE PRIVATE LIMITED

Registered Office :	Plot No. RNS 9, RNS 12 to 14, Sipcot Industrial Growth Centre, Vadakuppattu Village, Orangadam, Sriperumbudur Taluk, Kanchipuram – 602105, Tamilnadu
Tel. No.:	91-44-43443250

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	03.04.2009

Com. Reg. No.:	18-071238

Capital Investment / Paid-up Capital :	Rs. 582.094 Million

CIN No.: [Company Identification No.]	U27100TN2009PTC071238

IEC No.:	Not Available

TAN No.: [Tax Deduction & Collection Account No.]	CHEP11245D

PAN No.: [Permanent Account No.]	AAFCP0211N

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturing of steel castings including alloy, bushings, and rolling mill rolls.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (26)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 960000

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is an established company having a moderate track record. Company has been incurring over the years which have resulted into huge accumulated losses. Rating takes into consideration, subjects moderate financial risk profile marked by weak net worth base, huge deterioration in cash reserves and huge external borrowings taken by the company which acts as a threat to its liquidity position. However, trade relations are fair. Business is active. Payment terms are reported as slow but correct. The company can be considered for business dealings with some caution.

ECGC Country Risk Classification List – March 31, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	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 31-03-2013.

LOCATIONS

Registered Office/ Factory :	Plot No. RNS 9, RNS 12 to 14, Sipcot Industrial Growth Centre, Vadakuppattu Village, Orangadam, Sriperumbudur Taluk, Kanchipuram – 602105, Tamilnadu, India
Tel. No.:	91-44-43443250
Fax No.:	91-44-43443299
E-Mail :	sunder@posco-icpc.com s.sunderposcoicpc@gmail.com bsong@posco.com
Location :	Owned

DIRECTORS

AS ON 30.07.2014

Name :

Mr. Sanghun Park

Designation :

Managing Director

Address :

Flat No.1102, 11th Floor, Chaitanya Ficus Grove,,M R C Nagar, Ra Puram, Chennai - 600028, Tamilnadu, India

Date of Birth/Age :

14.01.1964

Date of Appointment :

12.06.2014

DIN No.:

06897261

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	U27100TN2009PTC071238	POSCO INDIA CHENNAI STEEL PROCESSING CENTRE PRIVATE LIMITED	Managing director	30-07-14	12-06-14	-	Active	NO

Name :

Mr. Young Whan Kim

Designation :

Additional director

Address :

Flat No.301, A-Block, Laurels Apartment, Old No.59,60, New No.81,83, CP Ramasamy Road, Abhiramapuram, Chennai, 600028, Tamilnadu, India

Date of Appointment :

05.08.2014

DIN No.:

06929786

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.07.2014

Names of Shareholders		No. of Shares
Sang Moo Doh		5000
Jong IL Park		5000
POSCO		58199443
Total		58209443

Equity Share Break up (Percentage of Total Equity)

AS ON 30.07.2014

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of steel castings including alloy, bushings, and rolling mill rolls.

Products :

Item Code No.	Product Description
72251910	Steel Fabricators

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
Maximum Limit Dealt :	Not Available
Experience :	Not Available
Remark:	Not Available

Customers :

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

No. of Employees :

Not Available

Bankers :

Banker Name	HDFC Bank Limited
Branch Address	HDFC Bank House, Senaati Bapat Marg, Lower Parel (West), Mumbai-400013, 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

Facilities :

Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
SHORT TERM BORROWING
Working capital loans from banks	155.000	0.000
Total	155.000	0.000

Auditors :
Name :	NRG Associates Chartered Accountants
Address :	10/1 1st Floor, Srinagar Colony, Rangarajapuram, 6th Street (Off North Mada Street) Saidapet, Chennai – 600015, Tamilnadu, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAEFN7749R

Memberships :	Not Available

Collaborators :	Not Available

Holding company:	POSCO, Korea

Subsidiary of Holding:	POSCO ICT Company Limited POSCO Investment Company Limited POSCO India Delhi Processing Centre Private Limited POSCO Maharashtra Steel Private Limited POSCO India Pune Processing Center Private Limited. POSCO India Steel Distribution Centre Private Limited POSCO(Yantai)Automotive Processing Center Company Limited POSCO MKPC SDN.BHD POSCO(Thailand) Company Limited POSCO Group University POSCO Asia Company Limited POSRI RE. Limited POMIC Company Limited Daewoo International Corporation

Associate:	POSCO South Asia Company Limited

Joint Venture:	POS Hyundai Steel Mfg (India) Private Limited

CAPITAL STRUCTURE

AFTER 30.07.2014

Authorised Capital : Rs. 850.000 Million

Issued, Subscribed & Paid-up Capital : Rs. 820.150 Million

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

60000000	Equity Shares	Rs.10/- each	Rs. 600.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

58209443	Equity Shares	Rs.10/- each	Rs. 582.094 Million

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	582.094	582.094	582.094
(b) Reserves & Surplus	(245.659)	(77.277)	(88.898)
(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)	336.435	504.817	493.196

(3) Non-Current Liabilities
(a) long-term borrowings	300.500	325.680	305.040
(b) Deferred tax liabilities (Net)	41.922	37.861	31.350
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	7.766	5.754	3.010
Total Non-current Liabilities (3)	350.188	369.295	339.400

(4) Current Liabilities
(a) Short term borrowings	1820.433	2404.261	1753.657
(b) Trade payables	2880.464	3871.683	2017.841
(c) Other current liabilities	26.670	15.613	27.840
(d) Short-term provisions	2.037	1.484	1.169
Total Current Liabilities (4)	4729.604	6293.041	3800.507

TOTAL	5416.227	7167.153	4633.103

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	614.909	649.140	678.585
(ii) Intangible Assets	2.919	4.079	5.046
(iii) Capital work-in-progress	0.000	0.000	9.986
(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	18.064	17.681	19.149
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	635.892	670.900	712.766

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	2353.122	3023.354	1981.248
(c) Trade receivables	2289.414	2342.342	1655.603
(d) Cash and cash equivalents	49.315	1006.960	254.549
(e) Short-term loans and advances	50.731	115.451	25.628
(f) Other current assets	37.753	8.146	3.309
Total Current Assets	4780.335	6496.253	3920.337

TOTAL	5416.227	7167.153	4633.103

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	NA	NA	NA
	Other Income	NA	NA	NA
	TOTAL	NA	NA	NA

Less	EXPENSES	NA	NA	NA

	PROFIT/ (LOSS) BEFORE TAX	(164.264)	18.204	(60.100)

Less	TAX	4.119	6.583	12.145

	PROFIT/ (LOSS) AFTER	(168.383)	11.621	(72.245)

	EARNINGS IN FOREIGN CURRENCY
	High Sea Sales	0.000	0.000	182.279
	Export Sales	0.586	0.000	1.980
	Training Income	0.000	0.833	6.630
	TOTAL EARNINGS	0.586	0.833	190.889

	IMPORTS
	Raw Materials - High Sea	367.387	324.001	1858.134
	Raw Materials -Imports	1800.680	2402.538
	TOTAL IMPORTS	2168.067	2726.539	1858.134

	Earnings / (Loss) Per Share (Rs.)	(2.89)	NA	NA

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 flows from (used in) operations	(303.389)	97.586	(869.158)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	(3.03)	0.25	(1.30)

Return on Investment (ROI) (PBT/Networth)		(0.49)	0.04	(0.12)

Debt Equity Ratio (Total Debt /Networth)		6.30	5.41	4.17

Current Ratio (Current Asset/Current Liability)		1.01	1.03	1.03

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	582.094	582.094	582.094
Reserves & Surplus	(88.898)	(77.277)	(245.659)
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	493.196	504.817	336.435

long-term borrowings	305.040	325.680	300.500
Short term borrowings	1753.657	2404.261	1820.433
Total borrowings	2058.697	2729.941	2120.933
Debt/Equity ratio	4.174	5.408	6.304

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	No
8	Designation of contact person	No
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	No
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

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Other external commercial borrowings	300.500	325.680
SHORT TERM BORROWING
Rupee term loans from banks	1665.433	2395.804
Foreign currency term loans from banks	0.000	8.457
Total	1965.933	2729.941

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10296323	10/06/2011	350,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W , MUMBAI, MAHARASHTRA - 400013, INDIA	B16587347
2	10252208	12/10/2010	125,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W , MUMBAI, MAHARASHTRA - 400013, INDIA	B00251678
3	10227641	21/05/2010	225,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W , MUMBAI, MAHARASHTRA - 400013, INDIA	A89219646

FIXED ASSETS

Tangible assets

Land
Buildings
Plant and equipment
Furniture and fixtures
Vehicles
Office equipment
Computer equipments
Other equipments

Intangible assets

Computer software

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.63.49
UK Pound	1	Rs.99.43
Euro	1	Rs.69.14

INFORMATION DETAILS

Analysis Done by :	SAN

Report Prepared by :	KVT

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	2
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		26

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

INDEX OF CHARGES

Unit