MIRA INFORM REPORT

Report No. :	310518
Report Date :	05.03.2015

IDENTIFICATION DETAILS

Name :	CHETANA MARKETING
Registered Office :	Door No. 1473, 31^st Ward, Jain Colony, Dam Road Near Citi Hospital, Opposites Poorvi Apartments, Hospet-583203, Bellary, Karnataka
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation/ Year of Establishment :	1998
Capital Investment / Paid-up Capital :	Rs.17.673 Million
IEC No.:	Not Available
TIN No.:	Not Available
PAN No.: [Permanent Account No.]	AADHG1832R
Legal Form :	HUF
Line of Business :	Trader of Iron and Steel
No. of Employees :	15 (Approximately)

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 Hindu undivided family concern having satisfactory track. Trade relations are fair. Business is active. Payment terms are reported as usually correct. The concern 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.

ECGC Country Risk Classification List – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

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

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.

INFORMATION PARTED BY

Name :	Mr. Jitendra Kumar Jain
Designation :	Chief Executive Officer
Contact No.:	91-9686707070
Date :	28.02.2015

LOCATIONS

Registered Office :	Door No. 1473, 31^st Ward, Jain Colony, Dam Road Near Citi Hospital, Opposites Poorvi Apartments, Hospet-583203, Bellary, Karnataka, India
Tel. No.:	91-8394-231303
Mobile No.:	91-9686707070 (Mr. Jitendra)
Fax No.:	91-8394-230303
E-Mail :	askcmhpt@gmail.com ask.cmhpt@rediffmail.com
Ware House :	Near Reliance Petrol Pump, Opposites Purvi Apartment, Dam Road, Hospet – 583201, Bellary Dist. Karnataka, India
Area :	6500 Sq. Ft.

HUF

Name :	Mr. Ghevarchand Vasanthkumar
Designation :	Karta
Date of Birth	10.06.1971
Name :	Mr. V. Jitendra Kumar
Designation :	Co-Parceners
Name :	Mr. V. Kumar Pal
Designation :	Co-Parceners
Name :	Mr. V. Devendra Kumar
Designation :	Co-Parceners

KEY EXECUTIVES

Name :	Mr. Jitendra Kumar Jain
Designation :	Chief Executive Officer

BUSINESS DETAILS

Line of Business :	Trader of Iron and Steel
Products :	Iron and Steel
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Cash, L/C and Credit
Purchasing :	Cash, L/C and Credit

GENERAL INFORMATION

Suppliers :

Reference :	Jindal Steel and Power Limited – Raigad
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Retailers and End Users

Reference :	Kirloskar Saras Industries Limited – Hospet
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

15 (Approximately)

Bankers :

Bank Name	Bank of India
Branch	Hospet-583201, Bellary, Karnataka, India
Person Name (With Designation)	Mr. S V Gopinatha
Contact Number	91-8394-222701
Name of Account Holder	Chetana Marketing
Account Number	842030110000098
Account Since (Date/Year of Account Opening)	22.09.2001
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	CC Limited
Account Operation	Satisfactory
Remarks (If any)	Mr. Vasanth Kumar Jain (F/O Mr. Jitendra K Jain)

Auditors :
Name :	Parasuram Katwa and Company Chartered Accountants
Address:	Basemant Mauryo Mansion No. 2, 1^st Cross, Gandhinagar, Bangalore – 500000, Karnataka, India
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available
Sister Concern :	Vasant Enterprises

CAPITAL STRUCTURE

As on: 31.03.2014

Capital Investment :
Owned :	Rs. 17.673 Million
Borrowed :	--
Total :	Rs. 17.673 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Capital A/C		17.673	14.991
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		17.673	14.991
LOAN FUNDS
1] Secured Loans		1.613	0.834
2] Unsecured Loans		13.253	20.933
TOTAL BORROWING		14.866	21.767
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		32.539	36.758
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.281	0.338
Capital work-in-progress		0.000	0.000
INVESTMENT		0.150	0.145
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2.567	3.682
	Sundry Debtors	46.113	52.533
	Cash & Bank Balances	1.264	0.421
	Deposits	1.112	0.594
	Loans & Advances	0.600	0.100
Total Current Assets		51.666	57.330
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	17.786	19.555
	Other Current Liabilities	1.762	1.500
	Provisions	0.000	0.000
Total Current Liabilities		19.548	21.055
Net Current Assets		32.108	36.275
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		32.539	36.758

	PARTICULARS	31.03.2014	31.03.2013
	SALES
	Income	372.015	311.293
	Other Income	0.101	0.002
	TOTAL	372.116	311.295
Less	EXPENSES
	Cost of good sales	344.849	290.345
	Transportation Charges	14.159	10.053
	Advertisement	0.004	0.010
	Audit Fees	0.017	0.017
	Bank Charges	0.039	0.049
	Bonus	0.330	0.337
	Commission Account	0.492	0.260
	Computer maintained	0.007	0.002
	Discount Account	0.708	0.133
	Delay Payment Charges	0.006	0.032
	Hamill charges	0.658	0.401
	Incentive to staff	0.123	0.126
	Insurance	0.013	0.014
	Interest Account	1.831	1.804
	Interest on TDS	0.000	0.000
	Mess expenses	0.223	0.223
	Office Maintained	0.065	0.048
	Depreciation	0.048	0.058
	puja expenses	0.010	0.000
	Rate Difference	0.024	0.000
	Packaging Forwarding Charges	0.010	0.001
	Office Rent paid	0.096	0.060
	Printing Stationery	0.055	0.059
	Professional Charges	0.006	0.006
	Professional Tax	0.003	0.003
	Fines and Penalty	0.004	0.000
	CST Paid	0.043	0.000
	Seminar Expenses	0.038	0.020
	Round Off	0.000	0.000
	Salary and Wages	1.652	1.687
	Sales Promotion	0.888	0.670
	Service Tax	0.480	0.318
	Staff Welfare	0.005	0.008
	Sundry Expenses	0.115	0.008
	Telephone Charges	0.012	0.004
	Tender Form Expenses	0.004	0.004
	Travelling	0.985	0.935
	Vehicle Hiring Charges	0.149	0.007
	Vehicle Repaired and Maintenance	0.191	0.125
	TOTAL	368.342	307.827
	NET PROFIT	3.774	3.468

Expected Sales (2014-2015): Rs. 420.000 Million

The above information has been parted by Mr. Jitendra Kumar Jain (CEO)

Note: Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	1.01	1.11
Return on Total Assets (PBT/Total Assets}	(%)	7.24	5.99
Return on Investment (ROI) (PBT/Networth)		0.21	0.23
Debt Equity Ratio (Total Debt /Networth)		0.84	1.45
Current Ratio (Current Asset/Current Liability)		2.64	2.72

FINANCIAL ANALYSIS

[All figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Share Capital	14.991	17.673
Reserves & Surplus	0.000	0.000
Net worth	14.991	17.673
Secured Loans	0.834	1.613
Unsecured Loans	20.933	13.253
Total borrowings	21.767	14.866
Debt/Equity ratio	1.452	0.841

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	311.293	372.015
		19.506

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	311.293	372.015
Profit	3.468	3.774
	1.11%	1.01%

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last two years	Yes
12]	Profitability for last two years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
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	No
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

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.61.85
UK Pound	1	Rs.94.96
Euro	1	Rs.69.10

INFORMATION DETAILS

Information Gathered by :	DPA
Analysis Done by :	SUB
Report Prepared by :	MTN

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	4
--LIQUIDITY	1~10	4
--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.