MIRA INFORM REPORT

Report No. :	349641
Report Date :	10.11.2015

IDENTIFICATION DETAILS

Name :	MAITHAN ISPAT LIMITED
Formerly Known As :	MAL INDUSTRIES LIMITED
Registered Office :	16, Strand Road, Diamond Heritage, Kolkata – 700001, West Bengal
Tel. No.:	91-33-39877200
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	27.08.2003
Com. Reg. No.:	21-096854
Capital Investment / Paid-up Capital :	Rs. 2123.414 Million
CIN No.: [Company Identification No.]	U27109WB2003PLC096854
IEC No.:	0204028752
TAN No.: [Tax Deduction & Collection Account No.]	CALM05936A
PAN No.: [Permanent Account No.]	AADCM7360B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Sponge Iron, Billets and Heavy Section Steel.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Ca (12)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Exist
Comments :	Subject is an established company incorporated during 2003 having moderate track. It is engaged in manufacturing of Sponge Iron, Billets and Heavy Section Steel. Financial position of the company is weak. It has incurred huge accumulated losses which has fully eroded its entire networth. Their business is active. Payment terms are reported as slow. The company can be considered for business dealings on safe and secured 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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	CARE
Rating	Long-term bank facilities: “D”
Rating Explanation	The company is in default or expected to be in default soon.
Date	25.03.2015

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 31-03-2015.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-33-39877200)

LOCATIONS

Registered Office :	16, Strand Road, Diamond Heritage, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-39877200
Fax No.:	91-33-39877201
E-Mail :	steel@maithangroup.com a.sipani@maithangroup.com maithaniispat@ortel.net
Website :	www.maithangroup.com
Head / Corporate Office :	PO. Chirkunda, District Dhanbad - 828202, Jharkhand, India
Tel. No.:	91-6540-293344 (4 Lines) / 273005
Fax No.:	91-6540-292191
E-Mail :	mclkol@eth.net
Factory:	Kalinganagar Industrial Complex, Village Dasmania, PO. Jakhapura, District: Jajpur - 755026, Orissa, India
Tel. No.:	91-6726-304000
Fax No.:	91-6726-304001
E-Mail :	ispat.site@mithangroup.com

DIRECTORS

As on 27.09.2013

Name :

Mr. Basant Kumar Agarwalla

Designation :

Director

Address :

2C, Mangalam, 35, Ahiri Pukur Road, Kolkata – 700019, West Bengal, India

Date of Birth/Age :

16.02.1946

Qualification :

B.COM

Date of Appointment :

27.08.2003

PAN No.:

ACMPA9293K

DIN No.:

00129140

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	U26919WB1963PLC025751	MAITHAN CERAMIC LIMITED	Director	01/01/1970	01/01/1970	07/04/2008	Active	NO
2	L27101WB1985PLC039503	MAITHAN ALLOYS LIMITED	Whole-time director	01/04/2011	19/09/1985	-	Active	NO
3	U31200WB1989PLC047100	ANJANEY FERRO ALLOYS LIMITED	Director	15/03/1991	15/03/1991	-	Active	NO
4	U27101ML1999PTC005786	MAITHAN SMELTERS Private Limited	Director	12/09/2001	12/09/2001	30/04/2008	Active	NO
5	U27109WB2003PLC096854	MAITHAN ISPAT LIMITED	Director	27/08/2003	27/08/2003	31/03/2015	Active	NO
6	U27101WB2005PLC101037	BMA MAITHAN FERROUS LIMITED	Director	07/01/2005	07/01/2005	22/11/2010	Active	NO
7	U27106WB2008PLC129049	ANJANEY ALLOYS LIMITED	Director	03/09/2008	03/09/2008	-	Active	NO

Name :

Mr. Vishal Agarwalla

Designation :

Managing director

Address :

2-C, Mangalam, 35, Ahirr Pukur Road, Kolkata – 700019, West Bengal, India

Date of Birth/Age :

16.09.1971

Qualification :

B.TECH

Date of Appointment :

31.05.2007

PAN No.:

ACMPA9306M

DIN No.:

00129040

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	U26919WB1963PLC025751	MAITHAN CERAMIC LIMITED	Director	04/05/1994	04/05/1994	-	Active	NO
2	U51109WB1995PTC069285	MAITHAN REFRACTORIES PRIVATE LIMITED	Director	13/03/1995	13/03/1995	-	Active	NO
3	L27101WB1985PLC039503	MAITHAN ALLOYS LIMITED	Whole-time director	22/07/1995	22/07/1995	01/04/2008	Active	NO
4	U51909WB1996PLC078233	MAITHAN INDUSTRIES LIMITED	Director	20/03/1996	20/03/1996	01/06/2011	Active	NO
5	U27102WB2001PLC093321	MAITHAN STEEL AND POWER LIMITED	Director	02/07/2001	02/07/2001	01/01/2008	Active	NO
6	L51909WB2001PLC093941	ABHA PROPERTY PROJECT LIMITED	Director	14/04/2003	14/04/2003	-	Active	NO
7	U51109WB1994PTC066287	WOODHAT DISTRIBUTORS PRIVATE LIMITED	Director	14/07/2003	14/07/2003	-	Active	NO
8	U14292OR1999PTC005643	AXL-EXPLORATION PRIVATE LIMITED	Director	24/02/2004	24/02/2004	-	Active	NO
9	U27101WB2005PLC101037	BMA MAITHAN FERROUS LIMITED	Director	07/01/2005	07/01/2005	-	Active	NO
10	U91990WB1919GAP003409	THE ASANSOL CLUB LIMITED	Director	28/05/2006	28/05/2006	25/06/2008	Active	NO
11	U27109WB2003PLC096854	MAITHAN ISPAT LIMITED	Managing director	01/04/2014	31/05/2007	31/03/2015	Active	NO
12	U51109WB2006PTC107451	SUNIDHI TRADELINK PRIVATE LIMITED	Director	25/06/2008	25/06/2008	-	Active	NO
13	U27106WB2008PLC129049	ANJANEY ALLOYS LIMITED	Director	03/09/2008	03/09/2008	22/03/2012	Active	NO

Name :

Mr. Aditya Agarwalla

Designation :

Director

Address :

2-C, Mangalam, 35, Ahirr Pukur Road, Kolkata – 700019, West Bengal, India

Date of Birth/Age :

28.12.1974

Qualification :

MBA

Date of Appointment :

15.06.2004

PAN No.:

ACMPA9304K

DIN No.:

00140683

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	U26919WB1963PLC025751	MAITHAN CERAMIC LIMITED	Director	01/08/2003	01/08/2003	-	Active	NO
2	U27109WB2003PLC096854	MAITHAN ISPAT LIMITED	Whole-time director	01/04/2014	15/06/2004	31/03/2015	Active	NO
3	U70101WB1991PTC051241	R.H. BUILDERS PRIVATE LIMITED	Director	25/06/2005	25/06/2005	-	Active	NO
4	U70101WB1987PTC042519	MANGALAM CONSTRUCTION PRIVATE LIMITED	Director	25/06/2005	25/06/2005	01/08/2009	Active	NO
5	L27101WB1985PLC039503	MAITHAN ALLOYS LIMITED	Whole-time director	23/07/2008	01/04/2008	15/03/2013	Active	NO
6	U51109WB2006PTC107451	SUNIDHI TRADELINK PRIVATE LIMITED	Director	25/06/2008	25/06/2008	-	Active	NO
7	U13100WB2008PLC130114	ANJANEY MINERALS LIMITED	Director	22/10/2008	22/10/2008	-	Active	NO
8	U70109WB1991PLC052777	RACCIE HOUSING AND FINANCE LIMITED	Director	30/09/2011	01/06/2011	-	Active	NO
9	U51909WB1995PTC070975	ANINDRA SALES PRIVATE LIMITED	Director	01/06/2011	01/06/2011	-	Active	NO
10	U51909WB1995PTC067947	TOYOMA EXPORTS PRIVATE LIMITED	Director	01/06/2011	01/06/2011	-	Active	NO
11	U74930WB2009PTC132962	HILAND SAPPHIRE MAINTENANCE COMPANY PRIVATE LIMITED	Director	05/02/2013	05/02/2013	06/08/2015	Active	NO

Name :

Harukazu Yamaguchi

Designation :

Director

Address :

6-3-2-601, Kachidoki Chuo-Ku, Tokyo, 104005

Date of Birth/Age :

09.12.1962

Date of Appointment :

27.09.2013

DIN No.:

03535391

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	U65990MH1987PLC044571	INFRASTRUCTURE LEASING AND FINANCIAL SERVICES LIMITED	Alternate director	28/08/2015	24/05/2011	-	Active	NO
2	U66020MH2006PLC161439	IL & FS Asian Infrastructure Managers Limited	Nominee director	28/08/2012	26/09/2011	05/11/2012	Active	NO
3	U27109WB2003PLC096854	MAITHAN ISPAT LIMITED	Director	27/09/2013	25/02/2013	31/03/2015	Active	NO
4	U63032MH1995PLC086014	ORIX Auto Infrastructure Services Limited	Director	26/08/2015	24/04/2015	-	Active	NO
5	U74900MH2006PLC163937	ORIX Leasing & Financial Services India Limited	Director	26/08/2015	24/04/2015	-	Active	NO

Name :

Shinji Yamana

Designation :

Alternate Director

Address :

Great World Serviced Apartment, 2 Kim Seng Walk, Singapore, 239401

Date of Birth/Age :

29.04.1969

Date of Appointment :

25.02.2013

DIN No.:

06496635

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	U66020MH2006PLC161439	IL & FS Asian Infrastructure Managers Limited	Director appointed in casual vacancy	12/02/2013	12/02/2013	17/03/2015	Active	NO
2	U27109WB2003PLC096854	MAITHAN ISPAT LIMITED	Alternate director	25/02/2013	25/02/2013	31/03/2015	Active	NO

KEY EXECUTIVES

Name :	Mr. Ashok Sipani
Designation :	Secretary
Address :	106, K C, Singha Road, Howrah - 711102, West Bengal, India
Date of Birth/Age :	06.12.1973
Date of Appointment :	01.08.2007
PAN No.:	AKOPS4110O

MAJOR SHAREHOLDERS

As on 26.09.2014

SHAREHOLDING AND ALLOTTEES DETAILS FILE ATTACHED.

As on 26.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	25.23
Bodies corporate	68.16
Directors or relatives of Directors	6.56
Others	0.05
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Sponge Iron, Billets and Heavy Section Steel.

Products :

Item Code No. (ITC Code)	Product Description
73071110	Sponge Iron
72071990	Billets/Blooms
72163300	Heavy Section

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Not Divulged

Purchasing :

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
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

Information declined by the management.

Bankers :

Banker Name	Punjab National Bank
Branch Address	Shakespeare Sarani Branch, 52A Shakespeare Sarani, Kolkata - 700017, West Bengal, 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 (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

· State Bank of India, Corporate Accounts Group Branch, 34, J L Nehru Road, Kolkata - 700071, West Bengal, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG TERM BORROWINGS
Rupee term loans from banks	4476.061	4900.234
Working capital loans from banks	0.000	111.914
SHORT TERM BORROWINGS
Foreign currency term loans from banks	0.000	309.440
Working capital loans from banks	1174.443	596.096
Total	5650.504	5917.684

NOTE

Pari pasu 1^st charge on all movable and immovable assets of the company, both present and future which is pooled and charges thereon created to secure all the facilities of the company which will rank pari pasu with the other lenders. All the aforesaid facilities are also secured by personal guarantees of Mr. Basant Kumar Agarwalla, Mr.Vishal Agarwalla and Aditya Agarwalla, the promoter directors of the Company.

Auditors :
Name :	SRBC and Company Chartered Accountants
Address :	22, Camac Street, 3^rd Floor, Block C, Kolkata- 700016, West Bengal, India
Income-tax PAN of auditor or auditor's firm :	ABSFS4151K
Other Related Parties :	· Orix Investment and Management Private Limited · Mangalam Construction Private Limited · Maithan International · Maithan Ceramic Limited · Maithan Alloys Limited

CAPITAL STRUCTURE

After 26.09.2014

Authorised Capital: Rs.5750.000 Million

Issued, Subscribed & Paid-up Capital: Rs.5677.940 Million

As on 26.09.2014

Authorised Capital:

No. of Shares	Type	Value	Amount
185,000,000	Equity Shares	Rs.10/- each	Rs. 1850.000 Million
30,000,000	Preference Shares	Rs.10/- each	Rs. 300.000 Million
	Total		Rs. 2150.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
182,341,374	Equity Shares	Rs.10/- each	Rs. 1823.414 Million
30,000,000	Preference Shares	Rs.10/- each	Rs. 300.000 Million
	Total		Rs. 2123.414 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	2123.414	2111.198	1811.198
(b) Reserves & Surplus	(4554.763)	(3564.487)	(2297.560)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	285.000
Total Shareholders’ Funds (1) + (2)	(2431.349)	(1453.289)	(201.362)
(3) Non-Current Liabilities
(a) long-term borrowings	4476.061	5442.148	5676.186
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.887	59.518	55.918
(d) long-term provisions	4.230	4.124	6.461
Total Non-current Liabilities (3)	4481.178	5505.790	5738.565
(4) Current Liabilities
(a) Short term borrowings	1174.443	905.536	381.549
(b) Trade payables	623.364	875.382	982.090
(c) Other current liabilities	2338.559	1105.028	386.889
(d) Short-term provisions	2.153	2.287	0.982
Total Current Liabilities (4)	4138.519	2888.233	1751.510
TOTAL	6188.348	6940.734	7288.713
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	5040.417	5395.093	5759.861
(ii) Intangible Assets	0.093	0.249	1.334
(iii) Capital work-in-progress	79.425	77.998	77.471
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	53.688	90.854	64.008
(e) Other Non-current assets	13.650	7.189	6.911
Total Non-Current Assets	5187.273	5571.383	5909.585
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	782.234	1085.644	1135.161
(c) Trade receivables	38.668	106.761	70.858
(d) Cash and cash equivalents	37.302	31.180	10.990
(e) Short-term loans and advances	121.384	125.056	141.873
(f) Other current assets	21.487	20.710	20.246
Total Current Assets	1001.075	1369.351	1379.128
TOTAL	6188.348	6940.734	7288.713

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	3978.905	3741.837	3259.204
	Other Income	28.255	16.921	13.646
	TOTAL	4007.160	3758.758	3272.850
Less	EXPENSES
	Cost of Materials Consumed	2987.840	2861.614	2707.089
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	246.990	54.286	(236.487)
	Employees benefits expense	90.306	107.824	107.291
	Other expenses	761.628	829.734	838.254
	TOTAL	4086.764	3853.458	3416.147
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	(79.604)	(94.700)	(143.297)
Less	FINANCIAL EXPENSES	1027.587	800.513	700.520
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(1107.191)	(895.213)	(843.817)
Less/ Add	DEPRECIATION/ AMORTISATION	359.499	371.714	388.080
	PROFIT/ (LOSS) BEFORE TAX	(1466.690)	(1266.927)	(1231.897)
Less	TAX	0.000	0.000	0.192
	PROFIT/ (LOSS) AFTER TAX	(1466.690)	(1266.927)	(1232.089)
	IMPORTS
	Raw Materials	509.097	655.470	209.634
	Components and Spare Parts	1.881	3.454	74.450
	TOTAL IMPORTS	510.978	658.924	284.084
	Earnings / (Loss) Per Share (Rs.)	(8.29)	(7.10)	(6.80)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	1151.592	615.505	144.570
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	(113.852)	(129.177)	(738.857)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	(36.86)	(33.86)	(37.80)
Operating Profit Margin (PBDIT/Sales)	(%)	(2.00)	(2.53)	(4.40)
Return on Total Assets (PBT/Total Assets}	(%)	(24.01)	(18.46)	(17.08)
Return on Investment (ROI) (PBT/Networth)		0.60	0.87	6.12
Debt Equity Ratio (Total Debt/Networth)		(2.80)	(4.79)	(30.80)
Current Ratio (Current Asset/Current Liability)		0.24	0.47	0.79

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	1811.198	2111.198	2123.414
Reserves & Surplus	(2297.560)	(3564.487)	(4554.763)
Net worth	(486.362)	(1453.289)	(2431.349)
long-term borrowings	5676.186	5442.148	4476.061
Short term borrowings	381.549	905.536	1174.443
Current Maturities of Long Term Debt	144.570	615.505	1151.592
Total borrowings	6202.305	6963.189	6802.096
Debt/Equity ratio	(12.752)	(4.791)	(2.798)

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)
Sales	3259.204	3741.837	3978.905
		14.808	6.336

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	3259.204	3741.837	3978.905
Profit/ (Loss)	(1232.089)	(1266.927)	(1466.690)
	(37.80%)	(33.86%)	(36.86%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	----------------------
6	Contact numbers	Yes
7	Name of the person contacted	No
8	Designation of contact person	No
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	Yes
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	----------------------
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	----------------------
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	Yes
33	Market information	----------------------
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

LITIGATION DETAILS

CALCUTTA HIGH COURT
CASE STATUS INFORMATION SYSTEM

Case Status : Pending

Status of          Income tax appeal tendered 168 of 2014

Commissioner of Income tax, Kolkata-I, K Vs. Maithan Ispat Limited

Pet's Adv.: M. C. Prusty                  

Res's Adv. :  G. S. Gupta

Case Updated on:   Tuesday, March 31 2015

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10565060	31/03/2015	6,139,500,000.00	State Bank of India	Corporate Accounts Group Branch, as Facility Agent, 2nd floor, Reliance House, 34, J. L. Nehru Road, Kolkata - 700071, West Bengal, INDIA	C51518280
2	10565062	31/03/2015	1,690,000,000.00	State Bank of India	Corporate Accounts Group Branch, as Lead Bank, 2nd floor, Reliance House, 34, J. L. Nehru Road, Kolkata - 700071, West Bengal, INDIA	C51520518
3	10342611	24/02/2012	7,829,300,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS GROUP BRANCH, 34, J L NEHRU ROAD, KOLKATA - 700071, West Bengal, INDIA	B35181833
4	10027453	20/10/2009 *	1,344,200,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS GROUP BRANCH, 34 J L NEHRU ROA  D, KOLKATA - 700071, West Bengal, INDIA	A71740930
5	10027246	15/09/2006	710,000,000.00	STATE BANK OF INDIA & PUNJAB NATIONAL BANK	SBI-CAG BRANCH,34 J. L. NEHRU ROAD,KOLKATA, PNB -  S.SARANI BR. 52-A, SAKESHPEARE SARANI, KOLKATA - 700071, West Bengal, INDIA	A05382221
6	80035686	16/09/2009 *	3,821,900,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS GROUP BRANCH, 34 J L NEHRU ROAD, KOLKATA - 700071, West Bengal, INDIA	A70107669
7	80035365	24/02/2012 *	7,829,300,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS GROUP BRANCH, 34, J L NEHRU ROAD, KOLKATA - 700071, West Bengal, INDIA	B35178284

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG TERM BORROWINGS
Loans repayable on demand from others	0.000	430.000
Total	0.000	430.000

CHANGE OF ADDRESS

The Registered address has been shifted from the 9, AJC Bose Road, 6^th Floor, Kolkata – 700017, West Bengal, India to the present address w.e.f. 31.03.2015.

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Other Plant and Equipment

· Vehicles

· Office Equipment

· Computer Equipments

· Other Equipments

Intangible Assets

· Computer Software

WEBSITE DETAILS

PRESS RELEASES / NEWS

MESCO BUYS MAITHAN ISPAT AT RS 11600.000 Million

Finished steel production from the acquired plant to start this month

April 1, 2015

Pig iron producer Mesco Steel, which has become an integrated steelmaker with the acquisition of 0.2 million tonne per annum steel plant of Maithan Ispat, said, it will start producing finished long products from next week onwards.

“Maithan has become wholly owned subsidiary of Mesco. We hope to start finished steel production from next week onwards,” said J K Singh, Chairman of Mesco Group.

The group has bought out the integrated steel plant located adjacent to its Kalinganagar plant at Rs 1,160 crore in a mix of debt-equity deal. 

Maithan has nearly Rs 500 crore debt on its book, while Rs 350 crore is convertible preferred shares owned by a consortium of banks led by State Bank of India. Mesco will infuse Rs 310 crore of cash equity as part of the deal for infrastructure upgradation of the plant. “We will add an electric arc furnace at Maithan plant. It will use hot metal and pig iron produced by Mesco plant, along with sponge iron of Maithan to produce high beam steel, which is used in construction activities,” Singh said.

The Maithan plant capacity will be expanded to 1 million tonne. With two plants in Mesco Steel fold, the company’s steel capacity would go up to 2.2 million tonne, he added.

Maithan Ispat is an integrated steel player with a sponge iron plant, steel melting shop and a rolling mill for producing long steel. However, it had several hurdles in steel making due to non-availability of raw material such as iron ore.

The inorganic expansion of Mesco to become an integrated steel player is in line with its plan to become a 3.5 million tonne finished steel producer. Last month, it had signed an agreement with South Korean steel maker Posco for relocation of latter’s finex plant to its premises which will add 600,000 tonne per year hot metal capacity.

Mesco Steel currently has two blast furnaces at Kalinganagar, and produces only pig iron. The company is in search of funds to install other equipment for production of finished long steel in the plant premises.    

It has an operating iron ore mines at Barbil with production capacity of 3 million a year and is in the process to enhance the ore output to 6 mtpa. Besides, its captive mine located at Malangtoli in the state has not started operation.

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.66.34
UK Pound	1	Rs.100.03
Euro	1	Rs.71.45

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	DIV
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILITY	1~10	--
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	--
--CREDIT LINES	1~10	--
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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		12

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.