MIRA INFORM REPORT

Report No. :	351723
Report Date :	27.11.2015

IDENTIFICATION DETAILS

Name :	ADARSH STEELS AND METALS
Registered Office :	Plot 54/2, Jupiter Colony, Near OBC Bank, Sikh Road, Secunderabad – 500009, Telangana
Tel. No.:	91-40-40182005
Country :	India
Financials (as on) :	31.03.2015
Year of establishment :	2014
Capital Investment / Paid-up Capital :	Rs. 0.430 Million
IEC No.:	Not Applicable (As claimed by company management that company does not export and import)
TIN No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Sole Proprietary Concern
Line of Business :	Trader of mild steel and finished goods like TMT Bars, angles, channels sheets etc.
No. of Employees :	20 (Approximately) (In Office 12 + In Branch 18)

RATING & COMMENTS

MIRA’s Rating :

B (26)

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 a relatively new proprietary concern started in 2014 having moderate track. Subject is engaged in the business as trader of mild steel and finished goods like TMT Bars, angles, channels sheets etc. The concern has achieved decent turnover from its first year of business operation. However, the rating is constrained by low profit margin and very limited track record of business operation. Trade relations are reported to be improving. Business is active. Payments terms are reported as slow but correct. The concern can 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

EXTERNAL AGENCY RATING

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Akhilesh Mehta
Designation :	Proprietor
Contact No.:	91-9393012612
Date :	25.11.2015

LOCATIONS

Registered Office :	Plot 54/2, Jupiter Colony, Near OBC Bank, Sikh Road, Secunderabad – 500009, Telangana, India
Tel. No.:	91-40-40182005
Mobile No.:	91-9393012612 (Mr. Akhilesh Mehta)
Fax No.:	Not Available
E-Mail :	adarshsheetsyd@gmail.com
Area :	900 Sq ft
Location :	Rented
Branch Office :	Plot No.184, Plassey Lines, Old Bowenpally, Secunderabad – 500011, Telangana, India
Area :	8100 Sq ft
Location :	Leased

SOLE PROPRIETOR

Name :	Mr. Akhilesh Mehta
Designation :	Proprietor
Address :	501, Srinivasa Krupa, Sai Sagar Enclave, Secunderabad – 500009, Telangana, India
Date of Birth/Age :	26.12.1970
Qualification :	Graduate
Experience :	23 Years

BUSINESS DETAILS

Line of Business :	Trader of mild steel and finished goods like TMT Bars, angles, channels sheets etc.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	L/C, Cash and Credit (30,60 days)
Purchasing :	Cash

GENERAL INFORMATION

Suppliers :

• Somani Isp Private Limited, Hyderabad
• BS Limited, Hyderabad
• Mineral Resources Limited, Hyderabad

Reference :	Agarwal Round Roll Mills Limited, Raipur
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 :

OEMs, Retailers, End users, Infra Projects

• May Infra (India) Limited
• Garapradha Real Estate Limited (NCC Group)
• Micro Industrial Gears Private Limited

Reference :	NCC Urban Infras Limited
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 :

20 (Approximately) (In Office 12 + In Branch 18)

Bankers :

ICICI Bank Limited, Diamond Point, Secunderabad, Telangana, India

Banker Name	HDFC Bank Limited
Branch Address	Diamond Point, Secunderabad, Telangana, 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

Auditors :
Name :	M Deepak Kumar and Coompany Chartered Accountants
Address :	Ram Gopal Pet, Secunderabad, Telangana, India
Mobile No.:	91-9848224852
E-Mail :	Mdk_co@yahoo.com
Memberships :	Not Available
Collaborators :	Not Available
Sister Concern :	A S Metcorp Private Limited Address: 54 Road No. 2, Jupiter Colony, Sikh Road, Secunderabad, Telangana, India Line of business: Supplier of ferrous and non-ferrous metals.

CAPITAL STRUCTURE

AS ON 31.03.2015

Capital	Rs. In Million
Mr. Akhilesh Mehta – HUF	0.060
Add: Profit	0.370
Total	0.430

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2015
SHAREHOLDERS FUNDS
1] Share Capital		0.430
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		0.430
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		0.000
TOTAL		0.430
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.163
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	33.645
	Cash & Bank Balances	0.212
	Other Current Assets	0.019
	Loans & Advances	0.587
Total Current Assets		34.463
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	33.752
	Other Current Liabilities	0.233
	Provisions	0.211
Total Current Liabilities		34.196
Net Current Assets		0.267
MISCELLANEOUS EXPENSES		0.000
TOTAL		0.430

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015
	SALES
	Income	150.709
	Other Income	0.387
	TOTAL	151.096
Less	EXPENSES
	Purchase	150.312
	Bank Charges	0.002
	Round Off	0.000
	Computer Repairs	0.003
	Office Expense	0.005
	Petrol Expense	0.007
	Audit Fee	0.025
	Salaries	0.234
	Commission Paid	0.037
	Repairs and Maintenance	0.003
	Printing and Stationary	0.003
	Rents and Rates and Taxes	0.025
	TOTAL	150.656
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	0.440
Less/ Add	DEPRECIATION/ AMORTISATION	0.070
	NET PROFIT	0.370

Projected turnover for the current year (2015-16): Rs. 250.000 Million

Projected net profit for the current year (2015-16): Rs. 1.100.000 Million

The above information has been parted by Mr. Akhilesh Mehta

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

KEY RATIOS

PARTICULARS		31.03.2015
Net Profit Margin (PAT / Sales)	(%)	0.25
Return on Total Assets (PBT/Total Assets}	(%)	1.07
Return on Investment (ROI) (PBT/Networth)		0.86
Debt Equity Ratio (Total Debt /Networth)		0.00
Current Ratio (Current Asset/Current Liability)		1.01

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	Yes
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	No
10	Date of Birth of Proprietor / Partners / Directors	No
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	No
25	Last accounts filed at ROC, if applicable	No
26	Turnover of firm for last one year	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	Yes
29	Profitability for last one year	No
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.66.55
UK Pound	1	Rs.100.64
Euro	1	Rs.70.70

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--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		26

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.