MIRA INFORM REPORT

Report No. :	312021
Report Date :	13.03.2015

IDENTIFICATION DETAILS

Name :	KUSUM METALS PRIVATE LIMITED
Registered Office :	1, Philips Street, Chennai – 600001, Tamilnadu
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	05.08.2008
Com. Reg. No.:	18-068749
Capital Investment / Paid-up Capital :	Rs.10.000 Million
CIN No.: [Company Identification No.]	U51103TN2008PTC068749
TIN No.:	Not Available
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AADCK4466A
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Metal Scrap.
No. of Employees :	25 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The company has seen a dip in its total revenue and profitability during the financial year 2013-14. However, trade relations are fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings with some caution.

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	ICRA
Rating	Long Term Facilities = BB-
Rating Explanation	Inadequate credit quality and high credit risk
Date	March 2013

Rating Agency Name	ICRA
Rating	Short Term Facilities = A4
Rating Explanation	Minimal degree of safety and very high credit risk
Date	March 2013

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.

LOCATIONS

Registered Office :	1, Philips Street, Chennai – 600001, Tamilnadu, India
Tel. No.:	91-44-25386964 / 24662991
Fax No.:	91-44-25394818
E-Mail :	sunil@greta.in info.kusum@greta.in
Website :	http://www.gretagroup.com
Corporate Office :	42A, Bheemanna Mudali Garden Road, Abhirampuram, Chennai – 600018, Tamilnadu, India
Tel. No.:	91-44-24662991-96
Fax No.:	91-44-42352313
Scrap Yard :	Vallur III Village, Ponneri Taluk, Tiruvallur District, Tamilnadu, India

DIRECTORS

As on 08.09.2014

Name :

Mr. Rajendra Kumar Chaudhari

Designation :

Director

Address :

1, Philips Street, Chennai - 600001, Tamilnadu, India

Date of Birth/Age :

14.05.1949

Date of Appointment :

05.08.2008

PAN No.:

AAGPC8237M

DIN No.:

01876248

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	U61100DL2006PTC151516	EAGLE TRANS SHIPPING & LOGISTICS (INDIA) PRIVATE LIMITED	Alternate director	01/09/2007	01/09/2007	-	Active	NO
2	U51909DL2004PTC128344	TASK FASHION CONCEPTS PRIVATE LIMITED	Director	05/07/2008	05/07/2008	-	Active	NO
3	U51103TN2008PTC068749	KUSUM METALS PRIVATE LIMITED	Director	05/08/2008	05/08/2008	-	Active	NO
4	U40103TN2008PLC095471	GRETA ENERGY LIMITED	Director	12/12/2008	12/12/2008	-	Active	NO
5	U67190TN2010PTC078009	GRETA INVESTMENTS PRIVATE LIMITED	Director	10/11/2010	10/11/2010	-	Active	NO
6	U27310TN2011PLC078952	GRETA STEELS LIMITED	Director	28/09/2012	16/08/2011	16/07/2013	Active	NO
7	U74999TN2012PTC085647	NITESH DYEING AND PRINTING WORKS PRIVATE LIMITED	Director	30/04/2012	30/04/2012	-	Active	NO

Name :

Mr. Girish Chaudhari

Designation :

Director

Address :

C/O Kusum International, No:1, Philips Street Second Floor, Chennai - 600001, Tamilnadu, India

Date of Birth/Age :

05.07.1985

Date of Appointment :

05.08.2008

PAN No.:

AFEPC3989H

DIN No.:

02129953

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	U51103TN2008PTC068749	KUSUM METALS PRIVATE LIMITED	Director	05/08/2008	05/08/2008	-	Active	NO
2	U67190TN2010PTC078009	GRETA INVESTMENTS PRIVATE LIMITED	Director	28/09/2012	16/03/2012	30/07/2013	Active	NO
3	U74999TN2012PTC085647	NITESH DYEING AND PRINTING WORKS PRIVATE LIMITED	Director	30/04/2012	30/04/2012	-	Active	NO
4	U65999WB2009PTC134191	SUDERSHAN FINCON PRIVATE LIMITED	Director	30/08/2014	30/08/2014	-	Active	NO
5	U74140WB2008PTC130413	SUBHDHRISTI INVESTMENT CONSULTANTS PRIVATE LIMITED	Director	30/08/2014	30/08/2014	-	Active	NO
6	U51909WB2009PTC134086	EVERLINK VANIJYA PRIVATE LIMITED	Director	30/08/2014	30/08/2014	-	Active	NO
7	U40105TN2011PLC079427	GRETA POWER TRADING LIMITED	Additional director	22/09/2014	22/09/2014	-	Active	NO

Name :

Mr. Nitesh Chaudhari

Designation :

Director

Address :

No.1, Philips Street, Chennai - 600001, Tamilnadu, India

Date of Birth/Age :

03.12.1976

Date of Appointment :

05.05.2010

PAN No.:

AAEPN3769R

DIN No.:

02306710

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	U40103TN2008PLC095471	GRETA ENERGY LIMITED	Director	12/12/2008	12/12/2008	-	Active	NO
2	U15500TG2009PTC063677	DYNA AGRO PRIVATE LIMITED	Director	02/06/2009	02/06/2009	-	Active	NO
3	U51103TN2008PTC068749	KUSUM METALS PRIVATE LIMITED	Director	05/05/2010	05/05/2010	-	Active	NO
4	U67190TN2010PTC078009	GRETA INVESTMENTS PRIVATE LIMITED	Director	10/11/2010	10/11/2010	-	Active	NO
5	U27310TN2011PLC078952	GRETA STEELS LIMITED	Director	27/01/2011	27/01/2011	16/07/2013	Active	NO
6	U40105TN2011PLC079427	GRETA POWER TRADING LIMITED	Director	02/03/2011	02/03/2011	-	Active	NO
7	U51109WB1996PTC079534	NAROTTAMKA TRADE & VYAPAAR PRIVATE LIMITED	Director	29/09/2012	06/01/2012	-	Active	NO
8	U74999TN2012PTC085647	NITESH DYEING AND PRINTING WORKS PRIVATE LIMITED	Director	26/11/2012	26/11/2012	02/02/2015	Active	NO
9	U15118MH2014PTC252387	SHRIRAM FOOD INDUSTRY PRIVATE LIMITED	Additional director	06/10/2014	06/10/2014	-	Active	NO

MAJOR SHAREHOLDERS

As on 08.09.2014

Names of Shareholders	No. of Shares	% of Holding
Rajendra Kumar Chaudhari	5000	0.50
Girish Chaudhari	5000	0.50
Greta Investments Private Limited, India	16800	1.68
Narottamka Trade and Vyapaar Private Limited, India	973200	97.32
Total	1000000	100.00

Equity Share Break up (Percentage of Total Equity)

As on 08.09.2014

Category	Percentage
Bodies corporate	97.32
Directors or relatives of Directors	2.68
Total	100.00

BUSINESS DETAILS

Line of Business :

Trader of Metal Scrap.

Products :

Product Description	Item Code No. (ITC Code)
Waste and scrap and materials for recycling	99611950

Brand Names :

--

Agencies Held :

--

Exports :

Not Available

Imports :

Countries :

• Singapore
• European Countries
• African Countries

Terms :

Selling :

Not Available

Purchasing :

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

No. of Employees :

25 (Approximately)

Bankers :

Corporation Bank, Mylapore Branch, Temple Square, No.22, North Mada Street, Mylapore, Chennai - 600004, Tamilnadu, India

Facilities :

SECURED LOANS	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
LONG TERM BORROWINGS
Loans taken for fixed assets	1.097	0.657
SHORT TERM BORROWINGS
Other loans and advances	152.898	177.361
Total	153.995	178.018

Auditors :
Name :	G. S. Chowdhry and Company Chartered Accountants
Address :	No.41 Post, Office Street, 1, St Street, Parrys , Chennai – 600001, Tamilnadu, India
PAN No.:	AABPC1796J
Memberships :	--
Collaborators :	--
Related Parties :	Greta Metal Pte Limited, Singapore

CAPITAL STRUCTURE

After 31.03.2014

Authorised Capital : Rs.30.000 Million

Issued, Subscribed & Paid-up Capital : Rs.30.000 Million

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 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	10.000	10.000	3.768
(b) Reserves & Surplus	91.105	86.120	29.043
(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)	101.105	96.120	32.811
(3) Non-Current Liabilities
(a) long-term borrowings	86.670	22.683	1.453
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	86.670	22.683	1.453
(4) Current Liabilities
(a) Short term borrowings	152.898	177.361	473.121
(b) Trade payables	341.464	227.527	142.188
(c) Other current liabilities	18.145	530.595	77.245
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	512.507	935.483	692.554
TOTAL	700.282	1,054.286	726.818
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3.114	2.713	3.425
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.013	0.017	0.021
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.200	0.200	0.200
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.915	10.376	17.718
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	4.242	13.306	21.364
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	199.552	224.826	260.452
(c) Trade receivables	260.586	81.754	51.169
(d) Cash and cash equivalents	118.900	41.356	328.909
(e) Short-term loans and advances	52.142	608.873	9.433
(f) Other current assets	64.860	84.171	55.491
Total Current Assets	696.040	1,040.980	705.454
TOTAL	700.282	1,054.286	726.818

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	INCOME	NA	NA	NA
	EXPENSES	NA	NA	NA
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	8.748	16.853	11.325
Less	DEPRECIATION/ AMORTISATION	0.848	0.969	0.815
	PROFIT/(LOSS) BEFORE TAX	7.900	15.884	10.510
Less	TAX	2.916	5.547	4.500
	PROFIT/(LOSS) AFTER TAX	4.984	10.337	6.010
	Earnings / (Loss) Per Share (Rs.)	4.99	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	1.13	1.51	1.45
Return on Investment (ROI) (PBT/Networth)		0.08	0.17	0.32
Debt Equity Ratio (Total Debt /Networth)		2.37	2.08	14.46
Current Ratio (Current Asset/Current Liability)		1.36	1.11	1.02

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	3.768	10.000	10.000
Reserves & Surplus	29.043	86.120	91.105
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	32.811	96.120	101.105
Long Term borrowings	1.453	22.683	86.670
Short Term borrowings	473.121	177.361	152.898
Total borrowings	474.574	200.044	239.568
Debt/Equity ratio	14.464	2.081	2.369

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	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	No
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)	Yes
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	Yes

UNSECURED LOANS:

Particulars	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
LONG TERM BORROWINGS
Loans and advances from related parties	85.573	22.026
Total	85.573	22.026

PERFORMANCE OF THE COMPANY

During the year the turnover decreased by Rs.486.500 Million (22.24%) over previous year. This is due to the macro economic challenges faced by the country and the resultant sluggish demand for steel, volatility in the steel prices coupled with the fluctuation in the exchange rates. We expect the growth to pick up during the current year. We are confident of achieving a higher turnover with better realization in the next financial year. The company is also eyeing the export market for growth in the sale of rice and foresees an increased volume in coal trading to ensure a healthy growth in the top and the bottom line for the next financial year.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10185468	01/10/2009	720,000.00	Corporation Bank	Mylapore Branch, Temple Square, No.22, North Mada  Street, Mylapore, Chennai, Tamil Nadu - 600004, India	A73407686
2	10174955	01/10/2014 *	341,700,000.00	Corporation Bank	Mylapore Branch, Temple Square, North Mada Street,, Chennai, Tamil Nadu - 600014, India	C28529162

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.62.57
UK Pound	1	Rs.93.57
Euro	1	Rs.65.95

INFORMATION DETAILS

Analysis Done by :	SUC
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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		32

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

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