MIRA INFORM REPORT

Report No. :	310361
Report Date :	05.03.2015

IDENTIFICATION DETAILS

Name :	DROLIA ELECTROSTEELS PRIVATE LIMITED
Registered Office :	620, Maker Chambers, Nariman Point, Mumbai – 400020, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	22.06.1995
Com. Reg. No.:	11-146362
Capital Investment / Paid-up Capital :	Rs. 46.840 Million
CIN No.: [Company Identification No.]	U27100MH1995PTC146362
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACD5584H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of Iron and Steel.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

Ba (41)

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

Maximum Credit Limit :	USD 1400000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The company has low profit margin during FY 2014, however reserves of the company is decent. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company 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

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 31-03-2014.

INFORMATION DENIED

MANAGEMENT NON - COOPERATIVE (91-22-22020369)

LOCATIONS

Registered Office :	620, Maker Chambers V, Nariman Point, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-22020369
Fax No.:	Not Available
E-Mail :	shetty_02@rediffmail.com dmi_mmb@drolia.com
City Office:	B/9, Anupam Nagar, Raipur, Chhattisgarh, India

DIRECTORS

As on 30.09.2014

Name :

Mr. Rajiv Drolia

Designation :

Managing Director

Address :

Flat No.2204, Phoenix Tower, Lower Parel, Mumbai – 400013, Maharashtra, India

Date of Birth/Age :

27.06.1969

Date of Appointment :

22.06.1995

PAN No.:

ABTPD5519P

DIN No.:

00337890

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	U23101MH1991PTC162310	DROLIA MINERAL INDUSTRIES PRIVATE LIMITED.	Director	10-04-1991	10-04-1991	-	Active	NO
2	U27100MH1995PTC146362	DROLIA ELECTROSTEELS PRIVATE LIMITED	Managing director	22-06-1995	22-06-1995	-	Active	NO
3	U15311JH1987PTC002527	OM FLOUR MILLS PRIVATE LIMITED	Director	08-10-2003	08-10-2003	-	Active	NO
4	U01010CT2005PTC017876	C.G. SPONGE MANUFACTURERS CONSORTIUM COAL FIELDS PRIVATE LIMITED	Director	31-03-2007	31-03-2007	-	Active	NO
5	U63010CT2000PTC014137	INTER DOMINION TRANSPORT PRIVATE LIMITED	Additional director	15-09-2009	15-09-2009	-	Active	NO
6	U23203MH2012PTC233772	DMI COKE PRIVATE LIMITED	Director	25-07-2012	25-07-2012	-	Active	NO

Name :

Mr. Din Dayal Drolia

Designation :

Director

Address :

Drolia House, Kanke Road, Ranchi-834008, Jharkhand, India

Date of Birth/Age :

29.07.1944

Date of Appointment :

22.06.1995

PAN No.:

ABVPD8761F

DIN No.:

00350530

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	U23101MH1991PTC162310	DROLIA MINERAL INDUSTRIES PRIVATE LIMITED.	Director	10-04-1991	10-04-1991	-	Active	NO
2	U27100MH1995PTC146362	DROLIA ELECTROSTEELS PRIVATE LIMITED	Director	22-06-1995	22-06-1995	-	Active	NO
3	U23203MH2012PTC233772	DMI COKE PRIVATE LIMITED	Director	25-07-2012	25-07-2012	-	Active	NO

Name :

Mrs. Shital R. Agarwal

Designation :

Director

Address :

304,D.M.Vatika, Gulmohar Khamardih, Shankar Nagar, Raipur 492007

Chhattisgarh, India

Date of Birth/Age :

28.02.1977

Date of Appointment :

01.07.2005

PAN No.:

AFBPA2033B

DIN No.:

00387096

Name :

Mr. Om Anand Chudhary

Designation :

Director

Address :

504, Gulmohar Khamardih, Shankar Nagar, Raipur 492007, Chhattisgarh, India

Date of Birth/Age :

02.01.1971

Date of Appointment :

01.07.2004

PAN No.:

ACCPC0371N

DIN No.:

00387307

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	U27100MH1995PTC146362	DROLIA ELECTROSTEELS PRIVATE LIMITED	Director	01-07-2004	01-07-2004	-	Active	NO
2	U63011CT2004PTC016906	RAIPUR HANDLING AND INFRASTRUCTURE PRIVATE LIMITED	Director	02-09-2004	02-09-2004	-	Active	NO
3	U63010CT2000PTC014137	INTER DOMINION TRANSPORT PRIVATE LIMITED	Additional director	15-09-2009	15-09-2009	-	Active	NO

Name :

Mr. Raj Basudev Drolia

Designation :

Director

Address :

1111, Rajtilak Apartment, Surat, Gujarat-395003, India

Date of Birth/Age :

16.12.1975

Date of Appointment :

26.03.2007

DIN No.:

01216194

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Names of Shareholders	No. of Shares	% of Holding
Din Dayal Drolia	110000	2.35
Rajiv Drolia	250000	5.34
Pushpa Devi Drolia	120000	2.56
Din Dayal Drolia HUF	84000	1.79
Vanshika Drolia	53000	1.13
Drolia Mineral Industries Private Limited, India	4017000	85.76
Rajiv Drolia HUF	50000	1.07
Total	4684000	100.00

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2014

Category	Percentage
Bodies corporate	85.76
Directors or relatives of Directors	14.24
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Supplier of Iron and Steel.
Products :	Iron Steel
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	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 :	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 :	Not Divulged
Remark:	Not Divulged

No. of Employees :

Information denied by management

Bankers :

• HDFC Bank Limited, HDFC Bank Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India
• State Bank of India, Backbay Reclamation Branch, Raheja Chamber, Nariman Point, Mumbai - 400021, Maharashtra, India

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Term loans from banks	119.726	186.421
Rupee term loans from others	0.718	0.560
Total	120.444	186.981

Finance Instituted :	Citi Corp Finance India Limited, S S Rao Road, Parel, Mumbai - 400012, Maharashtra, India
Auditors :
Name :	S.C. Jain and Company Chartered Accountants
Address :	301, Cotton Exchange Building, 3^rd Floor, Kalbadevi Road, Mumbai, Maharashtra, India
PAN N Income-tax PAN of auditor or auditor's firm :	AHGPJ5692L
Memberships :	--
Collaborators :	--
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	Drolia Mineral Industries Private Limited Rajiv Drolia (HUF)

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4684000	Equity Shares	Rs.10/- each	Rs.46.840 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	46.840	46.840	46.840
(b) Reserves & Surplus	443.069	428.479	472.095
(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)	489.909	475.319	518.935
(3) Non-Current Liabilities
(a) long-term borrowings	225.056	390.691	404.200
(b) Deferred tax liabilities (Net)	31.074	24.515	43.977
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	256.130	415.206	448.177
(4) Current Liabilities
(a) Short term borrowings	117.339	181.107	240.570
(b) Trade payables	33.391	9.340	96.077
(c) Other current liabilities	175.302	82.345	85.031
(d) Short-term provisions	2.048	2.205	3.561
Total Current Liabilities (4)	328.080	274.997	425.239
TOTAL	1074.119	1165.522	1392.351
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	577.335	738.134	785.585
(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	17.864	12.698	12.698
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	13.382	7.112	8.671
(e) Other Non-current assets	2.650	7.784	0.480
Total Non-Current Assets	611.231	765.728	807.434
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	328.160	324.394	403.752
(c) Trade receivables	40.000	13.171	96.920
(d) Cash and cash equivalents	4.174	3.039	11.590
(e) Short-term loans and advances	90.554	59.190	72.123
(f) Other current assets	0.000	0.000	0.532
Total Current Assets	462.888	399.794	584.917
TOTAL	1074.119	1165.522	1392.351

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income
	Other Income
	TOTAL	2318.183	2097.068	2145.787
Less	TOTAL EXPENSES	2105.819	2110.596	2086.816
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	212.364	(13.528)	58.971
Less/ Add	DEPRECIATION/ AMORTISATION	191.215	49.550	50.008
	PROFIT/ (LOSS) BEFORE TAX	21.149	(63.078)	8.963
Less	TAX	6.559	(19.462)	0.469
	PROFIT/ (LOSS) AFTER TAX	14.590	(43.616)	8.494
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	251.239	294.855	286.361
	Balance Carried to the B/S (J+K+L-M)	265.829	251.239	294.855
	Earnings / (Loss) Per Share (Rs.)	3.11	9.31	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	0.63	(2.08)	0.40
Operating Profit Margin (PBIDT/Sales)	(%)	9.16	(0.65)	2.75
Return on Total Assets (PBT/Total Assets}	(%)	2.00	(5.47)	0.65
Return on Investment (ROI) (PBT/Networth)		0.04	(0.13)	0.02
Debt Equity Ratio (Total Debt /Networth)		0.70	1.20	1.24
Current Ratio (Current Asset/Current Liability)		1.41	1.45	1.38

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	46.840	46.840	46.840
Reserves & Surplus	472.095	428.479	443.069
Net worth	518.935	475.319	489.909
long-term borrowings	404.200	390.691	225.056
Short term borrowings	240.570	181.107	117.339
Total borrowings	644.770	571.798	342.395
Debt/Equity ratio	1.242	1.203	0.699

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Total Income	2145.787	2097.068	2318.183
		(2.270)	10.544

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Total Income	2145.787	2097.068	2318.183
Profit	8.494	(43.616)	14.590
	0.40%	(2.08)%	0.63%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10520404	25/07/2014	2,000,000.00	AXIS BANK LIMITED	RAIPUR, RAIPUR, RAIPUR, MADHYA PRADESH - 492001, INDIA	C21035126
2	80004726	04/11/2011 *	699,900,000.00	STATE BANK OF INDIA	BACKBAY RECLAMTION BRANCH, RAHEJA CHAMBERS, NARI MAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B26390062

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Loans and advances from related parties	104.612	203.710
Short-term borrowings
Loans repayable on demand from others	117.339	181.107
Total	221.951	384.817

FIXED ASSETS

Tangible Assets

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

· Factory building

· Plant and equipment

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

INFORMATION DETAILS

Information Gathered by :	GYA
Analysis Done by :	SUM
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	3
--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		41

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.