MIRA INFORM REPORT

Report No. :	346753
Report Date :	30.10.2015

IDENTIFICATION DETAILS

Name :	DEWAN STEELS
Registered Office :	Z-76, Loha Mandi, Nariana, Delhi – 110028
Tel. No.:	91-11-25892801 / 25892802
Country :	India
Financials (as on) :	31.03.2014
Date of Establishment :	1991
Capital Investment / Paid-up Capital :	Rs. 15.301 Million
TIN No.:	07820145133
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAEFD5855G
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer, Exporter and Trader of Iron and Steel.
No. of Employees :	25 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is a partnership concern established in the year 1991, having satisfactory track record. For the FY 2014, the firm achieved decent sales turnover, however reported low profit. The firm has decent capital base marked by adequate cash balance. Trade relations are fair. Business is active. Payments are slow but correct. The concern can be considered for business dealings at usual trade terms and condition.

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. Rajeev Garg
Designation :	Partner
Contact No.:	91-9811157151 (Mr. Rajeev Garg)
Date :	23.10.2015

LOCATIONS

Registered Office/ Factory/ Warehouse :	Z-76, Loha Mandi, Nariana, Delhi – 110028, India
Tel. No.:	91-11-25892801 / 25892802
Mobile No.:	91-9811157151 (Mr. Rajeev Garg)
Fax No.:	91-11-25255262
E-Mail :	Rajiv5262@yahoo.com
Area :	225 Yard
Location :	Owned
Locality :	Commercial
Branch Offices :	Located at Haryana Uttar Pradesh

PARTNERS

Name :	Mr. Vinod Kumar Garg
Designation :	Partner
Address :	Delhi, India
Name :	Mr. Rajeev Garg
Designation :	Partner
Address :	Delhi, India

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Trader of Iron and Steel.
Products :	Iron Steel
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Finished Goods
Countries :	Nepal
Imports :	Not Available
Terms :
Selling :	Cash, L/C and Credit
Purchasing :	Cash, L/C and Credit

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Pratibha Industries
Name of the Person :	Mumbai, Maharashtra, India
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Reference :	Steel Authority of India Limited
Name of the Person :	Delhi
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

25 (Approximately)

Bankers :

Bank Name	HDFC Bank Limited
Branch	Punjabi Bagh, Delhi, India
Person Name (With Designation)	Not Available
Contact Number	Not Available
Name of Account Holder	Not Available
Account Number	Not Available
Account Since (Date/Year of Account Opening)	Not Available
Average Balance Maintained (If Possible)	Not Available
Credit Facilities Enjoyed (If any)	Not Available
Account Operation	Not Available
Remarks (If any)	Not Available

Auditors :
Name :	Manish Harsh and Company Chartered Accountants
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON 31.03.2014

Capital Investment :
Owned :	Rs. 10.442 Million
Borrowed :	Rs. 4.859 Million
Total :	Rs. 15.301 Million

FINANCIAL DATA

[all figures are in Rupees Million]

Particulars	31.03.2015
Sales Turnover (Approximately)	740.000

Expected Sales (2015-16): Rs. 800.000 Million.

The above information has been parted by Mr. Rajeev Garg (Partner).

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

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Share Capital		15.301	14.775
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		1.169	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		16.470	14.775
LOAN FUNDS
1] Secured Loans		85.926	73.358
2] Unsecured Loans		159.387	122.827
TOTAL BORROWING		245.313	196.185
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		261.783	210.960
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		82.399	82.608
Capital work-in-progress		0.000	0.000
INVESTMENT		1.643	4.175
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	22.336	43.890
	Sundry Debtors	228.084	134.678
	Cash & Bank Balances	3.063	1.546
	Other Current Assets	9.246	8.888
	Loans & Advances	0.000	0.000
TOTAL CURRENT ASSETS		262.729	189.002
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	77.444	62.614
	Other Current Liabilities	7.544	2.211
	Provisions	0.000	0.000
TOTAL CURRENT LIABILITIES		84.988	64.825
Net Current Assets		177.741	124.177
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		261.783	210.960

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013
	SALES
		Income	477.890	515.833
		Branch Transfer	75.944	0.000
		Other Income	6.236	0.437
		TOTAL	560.070	516.270
Less	EXPENSES
		Cost of Goods Sold	534.425	491.215
		Conveyance	0.000	0.065
		Telephone Expenses	0.154	0.157
		Loan processing	0.000	0.004
		Advertisement and Publicity	0.000	0.001
		Fees Subscription	0.000	0.014
		Rent	0.000	0.180
		Staff Welfare Expenses	0.000	0.037
		Additional Tax	0.000	0.003
		Car Insurance	0.000	0.051
		Discount/ Rebate on Purchase	0.000	0.000
		Additional CST	0.001	0.000
		Additional VAT	0.022	0.000
		Freight	0.000	0.000
		Association Fees	0.001	0.000
		Insurance	0.042	0.004
		Electricity Expenses	0.055	0.020
		Miscellaneous Expenses	0.202	0.183
		Interest on Car Loan	0.108	0.037
		Bank charges Against LC	0.201	0.000
		Bank Interest against LC	3.493	0.000
		Bank Interest	10.014	8.667
		Interest on personal Loan	0.293	0.000
		Interest on Sail	1.173	0.000
		Internet Charges	0.012	0.008
		Interest on Unsecured Loan	5.673	8.995
		Audit Fees	0.050	0.020
		Bank Charges	0.480	0.737
		Legal and Professional Charges	0.018	0.000
		Vehicle Maintenance Charges	0.530	0.443
		Printing and Stationery Expenses	0.007	0.009
		Diwali Expenses	0.026	0.019
		Salary and Bonus	1.175	1.855
		Interest to Partners	0.851	0.759
		Salary to Partners	1.308	1.529
		TOTAL	558.489	515.053
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		1.581	1.217
Less	FINANCIAL EXPENSES		0.000	0.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		1.581	1.217
Less	DEPRECIATION/ AMORTISATION		0.413	0.363
	PROFIT/ (LOSS) BEFORE TAX		1.168	0.855
Less	TAX		0.000	0.000
	PROFIT/ (LOSS) AFTER TAX		1.168	0.855
	Earnings / (Loss) Per Share (Rs.)		NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	0.24	0.17
Operating Profit Margin (PBIDT/Sales)	(%)	0.33	0.24
Return on Total Assets (PBT/Total Assets}	(%)	0.45	0.40
Return on Investment (ROI) (PBT/Networth)		0.07	0.06
Debt Equity Ratio (Total Debt /Networth)		14.89	13.28
Current Ratio (Current Asset/Current Liability)		3.09	2.92

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million
Sales	515.833	477.89
		(7.356)

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million
Sales	515.833	477.890
Profit	0.855	1.168
	0.17%	0.24%

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)	Yes
16	No. of employees	Yes
17	Details of sister concerns	No
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	No
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	Yes
29	Profitability for last two 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 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. 64.15
UK Pound	1	Rs. 99.36
Euro	1	Rs. 71.25

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	AMT
Report Prepared by :	SYL

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.