MIRA INFORM REPORT

Report No. :	338536
Report Date :	01.09.2015

IDENTIFICATION DETAILS

Name :	VAISHANAVI ISPAT LIMITED (w.e.f. 24.06.2010)
Formerly Known As :	VAISHANAVI ISPAT PRIVATE LIMITED
Registered Office :	4, Clive Row, Mukti Chambers, Room No. 408, Kolkata – 700001, West Bengal
Tel. No.:	91-33-22313883
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	13.04.2005
Com. Reg. No.:	21-102735
Capital Investment / Paid-up Capital :	Rs. 124.590 Million
CIN No.: [Company Identification No.]	U27109WB2005PLC102735
IEC No.:	0207025606
TAN No.: [Tax Deduction & Collection Account No.]	CALV02301F
PAN No.: [Permanent Account No.]	AACCV0295M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Iron scrap, Steel Scrap, Wire Mesh, etc.,
No. of Employees :	100 (Approximately)

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 :	Vaishanavi Ispat Limited was incorporated on April 13, 2005, it is established company having moderate track record. Rating are constrained, company has reported continuous losses from its operation over past three years along with an unfavorable gap between trade payables marked by moderate debt serving indicators. This rating is partly offset by the year on year increase in its total income and established track record backed by experience of its promoters. However, trade relations are fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for the business dealings with some cautions.

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

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 31-03-2013.

INFORMATION PARTED BY

Name :	Mr. Joshi Patel
Designation :	Account Manager
Contact No.:	91-33-40056550
Date :	27.08.2015

LOCATIONS

Registered Office :	4, Clive Row, Mukti Chambers, Room No. 408, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-22313883/ 40056550
Fax No.:	Not Available
E-Mail :	vaishanavi_ispat@yahoo.co.in madhavagenciespvtltd@gmail.com
Location :	Owned

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Giriraj Ratan Binani

Designation :

Managing director

Address :

Nandan Apartments, Flat No – 5C, 17/1D, Alipur Road, Kolkata - 700027, West Bengal, India

Date of Birth/Age :

02.10.1968

Qualification :

B.COM

Date of Appointment :

01.07.2010

DIN No.:

00460015

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	U27104WB1996PTC080373	RADHIKA ELECTRO-CAST PRIVATE LIMITED	Director	08/07/1996	08/07/1996	15/06/2012	Active	NO
2	U27109WB2005PLC102735	VAISHANAVI ISPAT LIMITED	Managing director	01/07/2010	22/03/2006	-	Active	NO
3	U51909WB2005PTC101218	GULDASTA COMMERCIAL PRIVATE LIMITED	Director	21/06/2006	21/06/2006	-	Active	NO
4	U51109WB2005PTC101653	SUNBRIGHT VINIMAY PRIVATE LIMITED	Director	28/12/2006	28/12/2006	12/07/2010	Active	NO
5	U51109WB2005PTC102597	MEMORIAL COMMERCIAL PRIVATE LIMITED	Director	29/03/2007	29/03/2007	-	Active	NO
6	U27109WB1996PTC080292	ALOGOMA MINERALS PRIVATE LIMITED	Additional director	11/11/2008	11/11/2008	02/12/2011	Active	NO
7	U28910WB2009PTC136155	QFAB STEELS PRIVATE LIMITED	Director	23/06/2009	23/06/2009	07/02/2014	Active	NO
8	U28113WB2000PLC092086	SKYSCRAPERS STEELS LIMITED	Director	29/09/2010	15/10/2009	04/12/2011	Active	NO
9	U45209WB2010PTC141390	SHASHWAT INFRASTRUCTURE PRIVATE LIMITED	Director	25/01/2010	25/01/2010	09/02/2012	Active	NO
10	U27100WB2010PTC141489	AROHIE INDUSTRIES PRIVATE LIMITED	Director	29/01/2010	29/01/2010	11/02/2012	Active	NO
11	U27101OR2005PTC007954	KALINGA FERRO ISPAT PRIVATE LIMITED	Director	11/03/2010	11/03/2010	-	Active	NO
12	U51109WB2007PTC114417	DIVYASHAKTI MERCHANTS PRIVATE LIMITED	Director	05/05/2010	05/05/2010	08/07/2011	Active	NO
13	U72900WB2011PTC158492	AASHI INFRASTRUCTURE PRIVATE LIMITED	Director	03/02/2011	03/02/2011	12/07/2012	Active	NO
14	U51101WB2010PTC146859	EASTERN TRADECOM PRIVATE LIMITED	Director	02/06/2011	02/06/2011	11/02/2012	Active	NO
15	U51109WB2006PTC108680	SWAGATH VYAPAAR PRIVATE LIMITED	Director	11/12/2013	11/12/2013	-	Active	NO

Name :

Mr. Subhendu Bhattacherjee

Designation :

Director

Address :

328, G.T. Road, P.O. Bally, Howrah - 711201, West Bengal, India

Date of Birth/Age :

21.09.1942

Qualification :

B.COM

Date of Appointment :

24.04.2006

DIN No.:

01712563

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	U28113WB2000PLC092086	SKYSCRAPERS STEELS LIMITED	Director	01/07/2003	01/07/2003	-	Active	NO
2	U17124CT1994PLC008350	SALASAR STEEL AND POWER LIMITED	Director	23/03/2005	23/03/2005	30/09/2010	Active	NO
3	U14108WB2005PTC104298	BANKURA DRI MINING MANUFACTURERS COMPANY PRIVATE LIMITED	Managing director	21/07/2005	20/07/2005	-	Active	NO
4	U27109WB2005PLC102735	VAISHANAVI ISPAT LIMITED	Director	24/07/2006	24/07/2006	-	Active	NO
5	U27109WB1991PTC197458	MACEDON INDO_AUSTRIAN VENTURES PRIVATE LIMITED	Director	30/09/2009	15/07/2009	-	Active	NO
6	U74210WB2009PTC138848	SAS FABRICATORS PRIVATE LIMITED	Director	13/10/2009	13/10/2009	-	Active	NO
7	U27109WB1996PTC080292	ALOGOMA MINERALS PRIVATE LIMITED	Director	01/07/2015	18/07/2014	-	Active	NO
8	U51909WB2005PTC101218	GULDASTA COMMERCIAL PRIVATE LIMITED	Additional director	04/11/2014	04/11/2014	-	Active	NO
9	U51109WB2005PTC102597	MEMORIAL COMMERCIAL PRIVATE LIMITED	Additional director	04/11/2014	04/11/2014	-	Active	NO
10	U51101WB2010PTC146859	EASTERN TRADECOM PRIVATE LIMITED	Additional director	16/01/2015	16/01/2015	-	Active	NO
11	U27101OR2005PTC007954	KALINGA FERRO ISPAT PRIVATE LIMITED	Additional director	15/07/2015	15/07/2015	-	Active	NO

Name :

Mr. Gopal Chand More

Designation :

Additional Director

Address :

13/1, Kalakar Street, Kolkata - 700007, West Bengal, India

Date of Birth/Age :

04.01.1947

Date of Appointment :

15.07.2015

DIN No.:

07199409

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	U27109WB1996PTC080292	ALOGOMA MINERALS PRIVATE LIMITED	Additional director	30/05/2015	30/05/2015	-	Active	NO
2	U28113WB2000PLC092086	SKYSCRAPERS STEELS LIMITED	Additional director	30/05/2015	30/05/2015	-	Active	NO
3	U45209WB2010PTC141390	SHASHWAT INFRASTRUCTURE PRIVATE LIMITED	Additional director	30/05/2015	30/05/2015	09/06/2015	Active	NO
4	U27109WB2005PLC102735	VAISHANAVI ISPAT LIMITED	Additional director	15/07/2015	15/07/2015	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Joshi Patel
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholder	No. of Shares
Giriraj Ratan Binani	99250

AS ON 30.09.2014

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	98.00
Directors or relatives of directors	2.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Iron scrap, Steel Scrap, Wire Mesh, etc.,

Products :

ITC Code No.	Product Descriptions
72201129	Sale of Products Finished Goods Trading Goods

Brand Names :

--

Agencies Held :

--

Exports :

--

Imports :

--

Terms :

Selling :

Cash and Credit (30/ 60/ 90 Days)

Purchasing :

Cash and Credit (30/ 60/ 90 Days)

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

End Users and OEM’s

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

100 (Approximately)

Bankers :

Bank Name:	State Bank of India
Branch:	Overseas Branch, Kolkata, Samriddhi Bhavan, Block-A, 1, Strand Road, Kolkata - 700001, 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 A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Cash /Credit = Rs. 1460.000 Million
Account Operation:	Not Divulged
Remarks:	Not Divulged

· Oriental Bank of Commerce (Lead Bank), Overseas Branch (Lord's Building), 7/1, Lord Sinha Road, 1st Floor, Kolkata - 700071, West Bengal, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Term loans from banks	747.156	326.814
SHORT TERM BORROWINGS
Loans repayable on demand from banks	532.576	658.230
Total	1279.732	985.044

Banking Relations :	--
Auditors :
Name :	Sarp and Associates Chartered Accountants
Address :	4 Fairlie Place, Kolkata - 700001, West Bengal, India
Income-tax PAN of auditor or auditor's firm :	ABBFS1022L
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
12,500,000	Equity Shares	Rs. 10/- each	Rs. 125.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12,459,010	Equity Shares	Rs. 10/- each	Rs. 124.590 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	124.590	99.015	99.015
(b) Reserves & Surplus	410.788	295.462	357.078
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	92.500	19.200
Total Shareholders’ Funds (1) + (2)	535.378	486.977	475.293
(3) Non-Current Liabilities
(a) Long-term borrowings	747.156	326.814	204.596
(b) Deferred tax liabilities (Net)	0.000	18.713	22.553
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	747.156	345.527	227.149
(4) Current Liabilities
(a) Short term borrowings	539.676	662.830	677.088
(b) Trade payables	283.348	355.883	377.874
(c) Other current liabilities	243.596	91.952	216.352
(d) Short-term provisions	0.714	0.410	0.410
Total Current Liabilities (4)	1067.334	1111.075	1271.724
TOTAL	2349.868	1943.579	1974.166
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	919.906	658.090	695.169
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(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)	81.973	0.000	0.000
(d) Long-term Loan and Advances	6.076	6.602	0.235
(e) Other Non-current assets	31.550	30.695	35.385
Total Non-Current Assets	1039.505	695.387	730.789
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	118.584	215.616	212.252
(c) Trade receivables	1133.677	974.356	952.175
(d) Cash and cash equivalents	20.230	18.729	20.977
(e) Short-term loans and advances	37.635	39.341	57.697
(f) Other current assets	0.237	0.150	0.276
Total Current Assets	1310.363	1248.192	1243.377
TOTAL	2349.868	1943.579	1974.166

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	2018.132	1396.762	3041.284
		Other Income	3.183	36.482	53.359
		TOTAL (A)	2021.315	1433.244	3094.643
Less	EXPENSES
		Cost of Materials Consumed	761.905	531.727	1326.311
		Purchases of Stock-in-Trade	1095.860	862.342	1448.435
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	91.359	(57.988)	26.590
		Employees benefits expense	15.039	10.225	22.620
		Other expenses	143.807	101.936	230.923
		TOTAL (B)	2107.970	1448.242	3054.879
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(86.655)	(14.998)	39.764
Less	FINANCIAL EXPENSES (D)		237.247	2.493	141.750
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(323.902)	(17.491)	(101.986)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		37.128	37.035	36.703
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(361.030)	(54.526)	(138.689)
Less	TAX (H)		(100.686)	(3.840)	5.432
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(260.344)	(50.686)	(144.121)
	Earnings/ (Loss) Per Share (Rs.)		(23.53)	(5.12)	0.00

PARTICULARS	31.03.2015
Sales Turnover (Approximately)	2500.000

The above information has been parted by Mr. Joshi Patel (Account Manager).

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	40.455	3.190	98.577
Cash Generated from Operations	NA	NA	NA
Net Cash Flow from used in Operations	NA	(181.060)	46.346

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	(12.90)	(3.63)	(4.74)
Operating Profit Margin (PBDIT/Sales)	(%)	(4.29)	(1.07)	1.31
Return on Total Assets (PBT/Total Assets}	(%)	(15.92)	(2.81)	(7.03)
Return on Investment (ROI) (PBT/Networth)		(0.67)	(0.11)	(0.29)
Debt Equity Ratio (Total Liability/Networth)		2.48	2.04	2.06
Current Ratio (Current Asset/Current Liability)		1.23	1.12	0.98

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

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	99.015	99.015	124.590
Reserves & Surplus	357.078	295.462	410.788
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	19.200	92.500	0.000
Net worth	475.293	486.977	535.378
Long-term borrowings	204.596	326.814	747.156
Short term borrowings	677.088	662.830	539.676
CURRENT MATURITIES OF LONG-TERM DEBTS	98.577	3.190	40.455
Total borrowings	980.261	992.834	1327.287
Debt/Equity ratio	2.062	2.039	2.479

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	3041.284	1396.762	2018.132
		(54.073)	44.486

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	3041.284	1396.762	2018.132
Profit	(144.121)	(50.686)	(260.344)
	(4.74%)	(3.63%)	(12.90%)

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	No
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	No
18	Major suppliers	No
19	Major customers	No
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	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	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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10300050	30/06/2011	10,000,000.00	RELIGARE FINVEST LIMITED	D3, P3B, DISTRICT CENTRE, SAKET, NEW DELHI - 110017, INDIA	B18023424
2	10244757	10/01/2012 *	566,900,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, KOLKATA, SAMRIDDHI BHAVAN, BLOCK -A, 1, STRAND ROAD, KOLKATA - 700001, WEST BENGAL,  INDIA	B30731715
3	10244777	17/01/2014 *	1,462,500,000.00	STATE BANK OF INDIA (LEAD BANK)	OVERSEAS BRANCH, KOLKATA, SAMRIDDHI BHAVAN, BLOCK-A, 1, STRAND ROAD, KOLKATA - 700001, WEST BENGAL,  INDIA	B96077227
4	10179410	17/01/2014 *	645,000,000.00	STATE BANK OF INDIA (LEAD BANK)	OVERSEAS BRANCH, KOLKATA, SAMRIDDHI BHAVAN, BLOCK -A, 1, STRAND ROAD, KOLKATA - 700001, WEST BENGAL, INDIA	B96074620
5	10179413	17/01/2014 *	817,500,000.00	STATE BANK OF INDIA (LEAD BANK)	OVERSEAS BRANCH, KOLKATA, SAMRIDDHI BHAVAN, BLOCK -A, 1, STRAND ROAD, KOLKATA - 700001, WEST BENGAL,  INDIA	B96075973
6	10128781	29/07/2009 *	790,000,000.00	ORIENTAL BANKOF COMMERCE	OVERSEAS BRANCH (LORD'S BUILDING), 7/1, LORD SINHA ROAD, 1ST FLOOR, KOLKATA - 700071, WEST BENGAL,  INDIA	A67911719
7	10104579	10/07/2009 *	340,000,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, SAMRIDDHI BHAVAN, BLOCK-A,1, STRAND ROAD, KOLKATA - 700001, WEST BENGAL, INDIA	A66161829
8	10080171	06/05/2009 *	202,000,000.00	INDIAN OVERSEAS BANK	BALLYGUNGE PARK ROAD BRANCH, 22, BALLYGUNGE PARK  ROAD, KOLKATA - 700019, WEST BENGAL, INDIA	A63004394
9	10029883	08/05/2009 *	248,000,000.00	ORIENTAL BANK OF COMMERCE	OVERSEAS BRANCH (LORD'S BUILDING), 7/1, LORD SINHA ROAD, 1ST FLOOR, KOLKATA - 700071, WEST BENGAL,  INDIA	A64794837

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
SHORT TERM BORROWINGS
Loans repayable on demand from others	7.100	4.600
Total	7.100	4.600

FINANCIAL AND OPERATIONAL REVIEW

During the year the Company has achieved nets sales/income from operation of Rs. 2018.100 Million as against Rs.1396.700 Million in previous year registering a growth of 44%. However, the Company has incurred a net loss of Rs. 260.300 Million and cash losses of Rs. 223.200 Million during the FY. 2013-14. During the financial year ended 31.03.2014 the Company has charged interest of Rs. 237.200 Million in the Profit and Loss Account which includes interest capitalized on Term Loan and Working Capital Term Loan into Funded Interest Term Loan of Rs. 166.800 Million. Hence, in effect the Company has incurred cash loss of Rs. 56.400 Million instead of Rs. 223.200 Million which is evident from the financial statements of FY 2013-14.

The Company has incurred operating losses in spite of incorporating various cost saving measures like streamlining of production process, purchases from market at competitive price, reduction of average holding period of Raw Materials, Finished Goods etc. However, fixed cost amounting to Rs. 85.000 Million approx. comprising mostly of power cost has eroded the sales margin as the Company was unable to produce the desired level of 5000 M.T. per month due to severe working capital crunch and on account of which it had approached all its Bankers for restructuring of its existing credit facilities. The Company using its internal accruals has produced mostly Mild Steel products which has lower margin as compared to Stainless Steel products.

Weaker domestic demand and slower growth in several key market, mining crises and uncontrolled inflation in the Country has resulted in increase in the cost of raw materials and other overhead which could not be passed on the consumers.

The company applied to the Corporate Debt Restructuring (CDR) forum set up by Reserve Bank of India for restructuring of debts from Bank with intention that the re-alignment under CDR aegis would help the company and the lenders to address the situation quickly.

At the request of the company and its consideration of its commitments to improve its operations the application so filed was referred to the CDR Empowered group and restructuring package got approved as set out in Letter of Approval dated 21stJune 2013.

Under the CDR package working capital loan irregularities got converted into working capital term loan (WCTL),funding of interest as Funded Interest Term Loan (FITL) on Term Loans and WCTL and was also entitled to get moratorium for payment of principal and interest on Term Loan, WCTL and FITL for 19 months i.e. from 31stOctober 2012 till 31st May, 2014. The package also included disbursement of fresh funds on the basis of need based working capital limits. In terms of the CDR package, the promoters/promoters? group entities were required to contribute additional funds. Accordingly, the company has issued Share Capital including securities premium of Rs. 10.23 Crores within 31.03.2014.

All the terms and conditions of CDR EG and the member Banks in the consortium have been complied with prior to implementation of the restructuring package in the month of January, 2014. However, due to unavoidable circumstances the implementation of the package got delayed and Master Restructuring Agreement was finally signed on 17th January 2014. Due to delay in implementation of the package the Company could not derive the inherent benefits factored in the restructuring package viz. moratorium period, availability of funds etc. More importantly the effective moratorium period of the restructured facilities reduced to 3 months from the originally envisaged period of 19 months.

On the domestic front, the Indian economy grew at a rate lower than the average trend in the last 10 years due to overhang of lower capital expenditure and investments, tight monetary policy and sluggish demand conditions in critical sectors such as automotive, infrastructure and construction. There are significant expectations from the new Government to pursue further economic reforms, investments in infrastructure and an inclusive growth agenda to revive the economy. Steel as a foundation industry will play a significant role in this journey and therefore it is very important for policy makers and the government to facilitate a robust supply side frame work as an enabler for a vibrant steel industry in the country.

FUTURE OUTLOOK

The liberalization of industrial policy and other initiatives taken by the Government have given a definite impetus for entry, participation and growth of the private sector in the steel industry. While the existing units are being modernized/expanded, a large number of new steel plants have also come up in different parts of the country based on modern, cost effective, state of-the-art technologies. In the last few years, the rapid and stable growth of the demand side has also prompted domestic entrepreneurs to set up fresh greenfield projects in different states of the country.

FIXED ASSETS:

· Land

· Buildings

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 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.66.26
UK Pound	1	Rs.101.99
Euro	1	Rs.74.79

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	KAS
Report Prepared by :	ARC

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
--PROFITABILIRY	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	NO
--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.