MIRA INFORM REPORT

Report No. :	314478.2
Report Date :	30.03.2015

IDENTIFICATION DETAILS

Name :	DADI SATIMATHA TRANSPORT AND ISPAT
Registered Office :	B-101, Vuda Apartments, MMTC Colony, Seethammadhara, Visakhapatnam – 530013
Country :	India
Financials (as on) :	31.03.2014
Year of Establishment:	17.05.2010
Capital Investment / Paid-up Capital :	Rs. 17.314 Million
Com. Reg. No.:	542
IEC No.:	Not Available
TIN NO.:	Not Available
PAN No.: [Permanent Account No.]	AAHFD1095K
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Trader of Iron and Steel
No. of Employees :	4 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Status :	Moderate
Payment Behavior :	Slow but correct
Litigation :	Clear
Comments :	Subject is a partnership concern with limited operational history having moderate track. The company possesses a moderate financial profile marked by high, total liabilities to capital base ration which may deteriorate the liquidity profile. Management has witnessed a better revenue base, whereas has reported a low net profitability during FY14. However, trade relations seem to be fair. Business is active. Payment terms are reported as slow but correct. The concern can be considered for business dealings with 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	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

INFORMATION PARTED BY

Name :	Mr. B. Mallikarjun Rao
Designation :	Accountant
Contact No.:	91-9010202026
Date :	25.03.2015

LOCATIONS

Registered Office :	B-101, Vuda Apartments, MMTC Colony, Seethammadhara, Visakhapatnam – 530013, Andhra Pradesh, India
Tel. No.:	91-891-2569028
Mob. No:	91-9848110101 (Mr. B. Mallikarjun Rao)
Fax No.:	91-891-2513248
E-Mail :	dadi_satimathatptispat@gmail.com
Location:	Owned
Factory:	Plot No.100, D-Block, Vadlapudi Village, Visakhapatnam – 530012, Andhra Pradesh, India
Tel. No.:	91-891-2503148
Location:	Rented

PARTNERS

Name :	Mr. Subhash Bhararia
Designation :	Partner
PAN:	ABLPB6829Q
Age:	41 Years
Qualification:	Graduate
Experience:	20 Years
Name :	Mr. K. Surya Sudhakar
Designation :	Partner
Age:	42 Years
Qualification:	Post Graduate
Experience:	20 Years
Name :	Mrs. Vimala Devi Bhararia
Designation :	Partner
Name :	Mr. Santosh Bhararia
Designation :	Partner
Name :	Mr. K.S. Shyam Babu
Designation :	Partner
Name :	Mr. K. Rama Rao
Designation :	Partner
Name :	Mrs. K. Naga Laxmi
Designation :	Partner

KEY EXECUTIVE

Name :	Mr. B. Mallikarjun Rao
Designation :	Accountant

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 :	Credit
Purchasing :	Credit

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 :

Wholesalers

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 :

4 (Approximately)

Bankers :

Bank Name	The Lakshmi Vilas Bank Limited
Branch	Dwarakanagar, Visakhapatnam, Andhra Pradesh, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	0787351000002864
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
MICR Code:	530056001
IFSC Code:	LLLL0000222
Remarks (If any)	Not Divulged

Auditors :

Name:

Somayajulu and Associates

Chartered Accountant

Address:

Visakhapatnam, Andhra Pradesh, India

Memberships :

Not Available

Collaborators :

Not Available

Sister Concern:

Name	R.E.C. Ispat Private Limited
Address	9-17-52, CBM Compound, Visakhapatnam, Andhra Pradesh, India
Line of Business	Trader of Iron and Steel

CAPITAL STRUCTURE

As on: 31.03.2014

Capital Investment :
Owned :	Rs. 17.314 Million
Borrowed :	-
Total :	Rs. 17.314 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 Account		17.314	0.521
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		17.314	0.521
LOAN FUNDS
1] Secured Loans		3.020	0.046
2] Unsecured Loans			2.407
TOTAL BORROWING		3.020	2.453
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		20.334	2.974
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		78.036	0.000
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	8.847	2.263
	Sundry Debtors	0.068	0.071
	Cash & Bank Balances	1.187	0.110
	Deposits Assets	0.005	0.005
	Duties and Provision	0.417	0.000
	Other Current Assets	0.000	78.123
Total Current Assets		10.524	80.572
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	68.226	77.578
	Other Current Liabilities	0.000	0.000
	Provisions	0.000	0.020
Total Current Liabilities		68.226	77.598
Net Current Assets		(57.702)	2.974
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		20.334	2.974

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013
	SALES
		Income	356.516	177.976
		Other Income	0.674	0.306
		TOTAL	357.190	178.282
Less	EXPENSES
		Cost of goods Sold	356.530	176.778
		Direct Expenses	0.000	0.195
		Bank Charges	0.006	0.018
		Bank Interest	0.000	0.561
		Consultancy Charges	0.000	0.001
		Godown Rent	0.012	0.012
		Interest on Paid	0.000	0.200
		OCC Process Charges	0.000	0.043
		Salaries	0.120	0.120
		income Tax Paid	0.120	0.036
		TOTAL	356.788	177.964
	NET PROFIT		0.402	0.318

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	0.11	0.18
Return on Total Assets (PBT/Total Assets}	(%)	0.45	0.39
Return on Investment (ROI) (PBT/Networth)		0.02	0.61
Debt Equity Ratio (Total Debt /Networth)		0.17	4.70
Current Ratio (Current Asset/Current Liability)		0.15	1.04

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
capital Account	0.521	17.314
Reserves & Surplus	0.000	0.000
Net worth	0.521	17.314
1] Secured Loans	0.046	3.020
2] Unsecured Loans	2.407	0.000
Total borrowings	2.453	3.020
Debt/Equity ratio	4.708	0.174

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	177.976	356.516
		100.317

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	177.976	356.516
Profit	0.318	0.402
	0.18%	0.11%

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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last two years	Yes
12]	Profitability for last three two 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	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

TRADE REFERENCE:

• Steel exchange India Limited
• Beekay Steel Industries Limited
• A.S. Steel Trader USP Private Limited
• Sampat Vinayak Steel Private Limited

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.62.60
UK Pound	1	Rs.92.95
Euro	1	Rs.68.15

INFORMATION DETAILS

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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		33

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.