MIRA INFORM REPORT

Report No. :	318653.2
Report Date :	13.05.2015

IDENTIFICATION DETAILS

Name :	UNITED STEEL CORPORATION
Registered Office :	60 Mogappair Road, Padi, Chennai – 600050, Tamilnadu
Tel. No.:	91-44-26244749
Country :	India
Financials (as on) :	31.03.2014
Year of Establishment :	1982
Capital Investment / Paid-up Capital :	Rs.112.643 Million
IEC No.:	Not Divulged
TIN No.:	Not Divulged
PAN No.: [Permanent Account No.]	Not Divulged
Legal Form :	Partnership Concern with an unlimited liability of the partners
Line of Business :	Trader of alloys steel.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 320000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established partnership concern having satisfactory track record. As claimed by Mr. Sanjay (Manager) the turnover for the year 2014-15 is Rs.700.000 Million. Trade relations are fair. Business is active. Payment terms are reported to be 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

EXTERNAL AGENCY RATING

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 PARTED BY

Name :	Mr. Sanjay
Designation :	Manager
Contact No.:	91-44-26244749

LOCATIONS

Registered Office :	60 Mogappair Road, Padi, Chennai – 600050, Tamilnadu, India
Tel. No.:	91-44-26244749
Mobile No.:	91-9840099455 (Mr. Satyanarayan)
Fax No.:	91-44-26250879
E-Mail :	usm_75@yahoo.com
Factory :	6/1, Vangaram Road, Chennai – 600095, Tamilnadu, India

PARTNERS

Name :	Mr. Satyanarayan Agarwal
Designation :	Partner
Name :	Mrs. Bina Agarwal
Designation :	Partner
Name :	Mr. Manish Agarwal
Designation :	Partner

KEY EXECUTIVES

Name :	Mr. Sanjay
Designation :	Manager

BUSINESS DETAILS

Line of Business :	Trader of alloys steel.
Products :	Alloys Steel
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :
Products :	Finished Goods
Countries :	· China · Germany
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

GENERAL INFORMATION

Suppliers :

Company Name :	JSW Steel Limited – Chennai
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, End Users

Company Name :	Balaji Industries – Mumbai
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 :

Not Divulged

Bankers :

Banker Name :	IndusInd Bank
Branch :	Mogappair Chennai, Tamilnadu, 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 :	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan) :	Not Divulged
Account Operation :	Not Divulged
Remark :	Not Divulged

Auditors :
Name :	Thiru and Dayal Chartered Accountants
Address :	AH-95/8, Shanthi Colony, Anna Nagar, Chennai – 600040, Tamilnadu, India
Tel. No.:	91-44-26200500
Fax No.:	91-44-26202250
Email :	thiru_dayal_auditors@yahoo.com
Collaborators :	Not Divulged
Membership :	Not Divulged
Sister Concern :	--

CAPITAL STRUCTURE

AS ON 31.03.2014

CAPITAL ACCOUNT OF PARTNERS

Particulars	Rs. In Million
S. N. Agarwal	57.411
Bina Agarwal	31.362
Manish Agarwal	23.870
TOTAL	112.643

FINANCIAL DATA

[all figures are in Rupees Million]

Particulars	31.03.2015
Sales Turnover (Approximately)	540.000

Expected Sales (2015-2016): Rs.700.000 Million

The above information has been parted by Mr. Sanjay (Manager)

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

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Share Capital		112.643	105.171
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		112.643	105.171
LOAN FUNDS
1] Secured Loans		54.143	49.241
2] Unsecured Loans		33.025	27.951
TOTAL BORROWING		87.168	77.192
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		199.811	182.363
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9.391	10.106
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	41.934	45.217
	Sundry Debtors	201.839	224.020
	Cash & Bank Balances	1.564	1.087
	Other Current Assets	0.000	0.000
	Loans & Advances	4.898	3.328
Total Current Assets		250.235	273.652
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	56.188	98.217
	Other Current Liabilities	0.668	0.393
	Provisions	2.959	2.785
Total Current Liabilities		59.815	101.395
Net Current Assets		190.420	172.257
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		199.811	182.363

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013
	SALES
		Income	451.730	466.141
		Other Income	5.654	5.809
		TOTAL	457.384	471.950
Less	EXPENSES
		Cost of Goods Sold	405.110	415.883
		Fright charges (Inward)	3.789	3.863
		Salaries & wages	2.681	3.112
		Rent	0.288	0.400
		Electricity charges	0.589	0.539
		Conveyance	0.229	0.212
		Repairs & maintenance	0.739	0.954
		Delivery & transport charges	0.949	1.723
		Cutting charges & stores	0.586	0.418
		Telephone charges	0.273	0.249
		Travelling charges	0.241	0.303
		Lorry expenses	1.677	1.471
		Sales promotion expenses	0.236	0.278
		Vehicle maintenance – car	0.435	0.401
		Computer expenses	0.102	0.069
		Professional fees	0.288	0.078
		Printing & stationery	0.228	0.270
		Postage expenses	0.110	0.139
		Vehicle maintenance – Two wheeler	0.078	0.100
		Rebates & discount	0.707	0.640
		Staff welfare	0.293	0.291
		Insurance	0.021	0.039
		Pooja expenses	0.113	0.131
		General expenses	0.000	0.055
		Donation	0.242	0.206
		Service tax	0.113	0.048
		Sales tax – Asst. tax	0.094	0.015
		Bank charges & processing fee	0.290	0.056
		Interest paid to bank	5.803	6.311
		Interest paid on vehicle loan	0.047	0.119
		Interest paid on loan	3.512	2.666
		Audit fee	0.150	0.030
		Interest paid to partners	3.714	7.382
		Remuneration to partners	13.300	0.000
		Provision for income tax	2.959	2.785
		TOTAL	449.986	451.236
	PROFIT BEFORE DEPRECIATION		7.398	20.714
Less	DEPRECIATION		1.641	1.790
	NET PROFIT		5.757	18.924

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Net Profit Margin PAT / Sales	(%)	1.27	4.06
Return on Total Assets (PBT/Total Assets)	(%)	2.22	6.67
Return on Investment (ROI) (PBT/Networth)		0.05	0.18
Debt Equity Ratio (Total Debt /Networth)		0.77	0.73
Current Ratio (Current Asset/Current Liability)		4.18	2.70

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	105.171	112.643
Reserves & Surplus	0.000	0.000
Net worth	105.171	112.643
Secured Loans	49.241	54.143
Unsecured Loans	27.951	33.025
Total borrowings	77.192	87.168
Debt/Equity ratio	0.734	0.774

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million
Sales	466.141	451.730
		(3.092)

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million
Sales	466.141	451.730
Profit	18.924	5.757
	4.06%	1.27%

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	No
8]	No. of employees	Yes
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 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	No
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
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	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	No
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.64.20
UK Pound	1	Rs.100.03
Euro	1	Rs.71.91

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	SUC
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.