MIRA INFORM REPORT

Report No. :	349401
Report Date :	16.11.2015

IDENTIFICATION DETAILS

Name :	HARYANA ISPAT UDYOG
Registered Office :	B-245, Nehru Ground, N.I.T Faridabad – 121001, Haryana
Tel. No.:	91-129-4031255/ 4030254
Country :	India
Financials (as on) :	31.03.2015
Year of Establishment :	2015
Capital Investment / Paid-up Capital :	Rs. 3.420 Million
IEC No.:	Not Applicable (Note:- As claimed by company management chat company does not export and import)
TIN No.:	06151318733
PAN No.: [Permanent Account No.]	AEFPG6884F
Legal Form :	Sole Proprietary Concern
Line of Business :	Trader and Supplier of Iron and Steel
No. of Employees :	5 (Approximately) (Office)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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 :	Mr. Sachin Garg (Proprietor) has provided all information of the subject to us and claimed that the subject was established on 13^th November 2000 as a partnership concern with the name of “Haryana Ispat Udyog” and Mr. Sachin Garg and Mr. Nitin Garg were the partners. Further, he informed that the partnership concern got converted into proprietorship concern on 1^st April 2015. The proprietorship concern is engaged in the business as a trader of HR coil, HR sheets, CR coil, CR sheet and HROP sheet. It has moderate track. As per available 2015 financials of the partnership concern, the concern has reported below average operational performance with low profit margins. Further, it has huge borrowings taken during the year 2015 which may act as threat to its liquidity position. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The concern 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 – 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

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 PARTED BY

Name :	Mr. Sachin Garg
Designation :	Proprietor
Contact No.:	91-9811098447
Date :	13.11.2015

LOCATIONS

Registered / Branch Office/ Warehouse :	B-245, Nehru Ground, N.I.T Faridabad – 121001, Haryana, India
Tel. No.:	91-129-4031255/ 4030254
Mobile No.:	91-9811098447 (Mr. Sachin Garg)
Fax No.:	Not Available
E-Mail :	Ispatudyog_fbd@yahoo.co.in
Area :	Rented

SOLE PROPRIETOR

Name :	Mr. Sachin Garg
Designation :	Proprietor
Address :	D-21, Manohar Park, East Punjabi Bagh, New Delhi, India
Qualification:	Graduate
Date of Birth/Age :	01.04.1981 (34 Years)
Experience :	16 Years

BUSINESS DETAILS

Line of Business :	Trader and Supplier of Iron and Steel
Products :	Iron and steel
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	L/C, Cash and Credit (30/60 Days)
Purchasing :	Cash

GENERAL INFORMATION

Suppliers :

Reference :	ESS AAR Metal Udyog, Faridabad
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 :

Retailers and Manufacturer

Reference :	Maruti Hero Honda
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 :

5 (Approximately) (Office)

Bankers :

Banker Name	HDFC Bank
Branch Address	K-2, Commercial Complex, Jungpura Extention, New Delhi - 110014, India
Person Name (With Designation)	Not Divulged
Contact Number	91-11-41824217
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)	Credit Limited – Rs. 15.000 Million
Account Operation	Not Divulged
Remarks (If any)	Banker non-co-operative

Auditors :

Name :

B Goyal Associates

Chartered Accountant

Address :

1738/55, Naiwala, Karol Bagh, New Delhi, India

E-Mail :

cablgoyal@gmail.com

Memberships :

Not Available

Collaborators :

Not Available

Sister Concern

Name	Balaji Ispat Udyog
Address:	C-23 A, Nehru Ground, NIT Faridabad, Haryana, India
Line of Business	Trader

Name	ESS AAR Metal Udyog
Address:	Plot No. 592, Sector-58, Faridabad, Haryana, India
Line of Business	Manufacturer

CAPITAL STRUCTURE

PARTNERSHIP FIRM

As on: 31.03.2015

Partner Name	Amount (Rs. in Million)
Mr. Harish Garg	0.484
Mr. Sachin Garg	2.936
Total	3.320

FINANCIAL DATA

[all figures are in Rupees Millions]

PARTNERSHIP FIRM

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2015	31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Proprietor/ Partner Capital		3.420	4.057	4.261
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3.420	4.057	4.261
LOAN FUNDS
1] Secured Loans		15.530	12.431	0.443
2] Unsecured Loans		23.657	15.468	14.113
TOTAL BORROWING		39.187	27.899	14.556
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		42.607	31.956	18.817
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.795	1.745	1.177
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.077	1.990	6.344
	Sundry Debtors	57.782	46.314	40.879
	Cash & Bank Balances	0.551	0.815	0.803
	Other Current Assets	0.063	0.279	0.610
	Loans & Advances	3.564	0.018	3.178
Total Current Assets		62.037	49.416	51.814
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	20.556	18.901	18.576
	Current Liabilities	0.527	0.272	15.427
	Expenses Payable	0.143	0.032	0.171
Total Current Liabilities		21.226	19.205	34.174
Net Current Assets		40.811	30.211	17.637
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		42.607	31.956	18.817

PARTNERSHIP FIRM

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Income	215.641	167.994	105.635
		Other Income	0.097	0.010	0.000
		TOTAL	215.738	168.004	105.635
Less	EXPENSES
		Cost of Materials Consumed	206.205	158.330	98.332
		Freight and Cartage	0.281	0.278	0.151
		Computer Expenses	0.009	0.000	0.001
		Depreciation	0.318	0.219	0.146
		Bank interest	1.702	1.748	1.830
		Cutting Expenses	0.000	0.007	0.016
		Power and electricity	0.038	0.030	0.023
		Bank charges	0.069	0.048	0.010
		Job Work Charges	1.123	1.060	0.803
		Audit fees	0.027	0.045	0.022
		Material Unloading	0.125	0.122	0.072
		Association Fees	0.002	0.001	0.001
		Bad Debts	0.324	1.000	0.000
		Cartage outward	0.590	0.607	0.801
		Commission paid	0.551	0.607	0.000
		Interest expenses	1.878	1.494	1.327
		Interest on capital	0.397	0.458	0.564
		Interest on car Loan	0.086	0.039	0.009
		Interest on Service Tax	0.001	0.000	0.000
		Interest on Car Loan Axis Bank	0.000	0.000	0.021
		Expenses Rebate and Discounts	0.000	0.000	0.064
		LC Bank Interest	0.246	0.303	0.000
		Packing Charges	0.000	0.000	0.104
		Salaries	0.594	0.366	0.222
		Rent	0.180	0.180	0.180
		Insurance	0.046	0.026	0.027
		Legal expenses	0.003	0.003	0.013
		Misc. expenses	0.008	0.001	0.002
		Material loading	0.006	0.114	0.122
		Telephone bill	0.045	0.042	0.052
		Postage stamps	0.001	0.000	0.001
		Printing and stationery	0.008	0.014	0.004
		Processing fees	0.042	0.054	0.084
		Short and excess	0.004	0.010	0.008
		Partner remuneration	0.491	0.473	0.387
		Testing	0.001	0.001	0.002
		Vehicle measurement	0.160	0.157	0.069
		TOTAL	215.561	167.837	105.470
	NET PROFIT		0.177	0.167	0.165

The above information has been parted by Mr. Sachin Garg (Proprietor)

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

PARTNERSHIP FIRM

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	0.08	0.10	0.16
Return on Total Assets (PBT/Total Assets}	(%)	0.28	0.33	0.31
Return on Investment (ROI) (PBT/Networth)		0.05	0.04	0.04
Debt Equity Ratio (Total Debt /Networth)		11.46	6.88	3.42
Current Ratio (Current Asset/Current Liability)		1.39	1.43	1.08

PARTNERSHIP FIRM

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

KEY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Proprietor/ Partner Capital	4.261	4.057	3.420
Reserves & Surplus	0.000	0.000	0.000
Net worth	4.261	4.057	3.420
Secured Loan	0.443	12.431	15.530
Unsecured Loan	14.113	15.468	23.657
Total Loans	14.556	27.899	39.187
Debt/Equity ratio	3.416	6.877	11.458

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	105.635	167.994	215.641
		59.033	28.362

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	105.635	167.994	215.641
Profit	0.165	0.167	0.177
	0.16%	0.10%	0.08%

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	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
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	Yes
17	Details of sister concerns	Yes
18	Major suppliers	Yes
19	Major customers	Yes
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	No
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	No
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	----------------------
33	Market information	----------------------
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	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.66.14
UK Pound	1	Rs.100.55
Euro	1	Rs.71.26

INFORMATION DETAILS

Information Gathered by :	SPY
Analysis Done by :	HNA
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	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		30

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.