MIRA INFORM REPORT

Report No. :	505833
Report Date :	26.04.2018

IDENTIFICATION DETAILS

Name :	JONNA STEELS
Registered Office :	19/4/274/13, Bahadurpura Near Zoo Park, Tadban Main Road, Hyderabad – 500064, Telangana
Tel. No.:	91-40-24463399
Country :	India
Financials (as on) :	31.03.2018
Year of Establishment:	26.02.1981
Capital Investment / Paid-up Capital :	Not Divulged
TIN No.:	36040124838
IEC No.: [Import-Export Code No.]	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
GSTN : [Goods & Service Tax Registration No.]	36AACFJ6376Q1ZM
PAN No.: [Permanent Account No.]	AACFJ6376Q
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Trader of Iron and Steel like TMT Bars, MS Rounds, Angles, Channels, Flats, Plates and Sheets, etc. [Confirmed by management]
No. of Employees :	15 (Approximately)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

B

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Jonna Steels is a trader of iron and steel products. Its product range includes T.M.T. Bars, M.S. Rounds, Angles, Channels, Flats, Plates and Sheets. The concern was started in the year 1981 and is based in Hyderabad, Telangana. It is an established partnership concern having moderate track record. Mr. Shriniwas (Accountant) provided information and also claimed that concern has achieved revenue of INR 650.000 million during FY 2017 and INR 700.000 million for FY 2018 (revenue figure could not be verified) Further, as per available financials of 2016, profit margin of the company is low. The rating also takes into consideration highly fragmented iron and steel trading industry characterised by intense competition along with decline in revenue profile during FY 2017 and concern is exposed to the risk inherent to the partnership nature of including capital withdrawal risk. However, the raring weakness is partially offset by concern’s long established track record of business operation. Trade relations are reported as fair. Business is active. Payment terms are seems 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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA RATING
Rating	Fund Based Limits = B+
Rating Explanation	High risk of default
Date	November 2017

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 31-03-2018.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 26.04.2018.

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION PARTED BY

Name :	Mr. Shriniwas
Designation :	Accountant
Contact No.:	91-9849589154
Date :	24.04.2018

LOCATIONS

Registered Office :	19/4/274/13, Bahadurpura Near Zoo Park, Tadban Main Road, Hyderabad – 500064, Telangana, India
Tel. No.:	91-40-24463399
Mobile No.:	91-9849589155 (Mr. J. Veeranjaneyulu)
Fax No.:	91-40-24463943
E-Mail :	Jonna.steels123@gmail.com
Area :	13500 Sq. Ft.
Location :	Rented
Locality :	Commercial
Warehouse / Branch Office :	Located at : Kurnool
Area :	5650 Sq. Ft.
Location :	Rented

PARTNERS

Name :	Mr. J. Veeranjaneyulu
Designation :	Partner
Address :	Swati Block, Medha Rejoice, Attapur, Hyderabad, Telangana, India
Date of Birth/Age :	01.07.1958
Qualification :	B.Com (Hons)
Experience :	31 Years
Name :	Mr. J. Surya Prakash
Designation :	Partner
Address :	3-4-103/A/403, Radhakrishna Nagar, Hyderabad, Telangana, India
Date of Birth/Age :	02.07.1959
Qualification :	B.A
Experience :	31 Years
Name :	Mr. J. Lakshminarayana
Designation :	Partner
Address :	15-699, Kamalanagar, Anantapur, Andhra Pradesh, India
Date of Birth/Age :	03.07.1961
Qualification :	BA, LLB
Experience :	31 Years
Name :	Mr. J. Sreedhar
Designation :	Partner
Address :	15-699.Kamalanagar, Anantapur, Andhra Pradesh, India
Date of Birth/Age :	01.07.1962
Qualification :	B. Sc.
Experience :	27 Years
Name :	Mr. J. Satyanarayana
Designation :	Partner
Address :	15-699.Kamalanagar, Anantapur, Andhra Pradesh, India
Date of Birth/Age :	21.03.1967
Qualification :	M.B.B.S
Name :	Mr. J. Suresh
Designation :	Partner
Address :	15-699.Kamalanagar, Anantapur, Andhra Pradesh, India
Date of Birth/Age :	12.12.1970
Qualification :	B.A
Experience :	21 Years

KEY EXECUTIVES

Name :	Mr. Shriniwas
Designation :	Accountant

BUSINESS DETAILS

Line of Business :	Trader of Iron and Steel like TMT Bars, MS Rounds, Angles, Channels, Flats, Plates and Sheets, etc. [Confirmed by management]
Products :	· T.M.T. Bars · M.S. Rounds · Angles · Channels · Flats · Plates · Sheets
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Advance Payment and Credit (30 days), NEFT, RTGS
Purchasing :	Advance Payment and Credit (30 days), NEFT, RTGS

GENERAL INFORMATION

Suppliers :

Reference :	Dilip Rerolling Mills
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark:	--

• Ambika Iron and Steel Private Limited

Customers :

Wholesalers, End Users

Reference :	Rithwik Projects Private Limited, Hyderabad
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark:	--

• GPR Infra, Hyderabad and Anantapur

No. of Employees :

15 (Approximately)

Bankers :

Bank Name	Karur Vyasya Bank Limited
Branch	Mehdipatnam Branch, Hyderabad Telangana, India
Person Name (With Designation)	--
Contact Number	91-40-23045411 (Continuously Ringing)
Name of Account Holder	--
Account Number	--
Account Since (Date/Year of Account Opening)	--
Average Balance Maintained (If Possible)	--
Credit Facilities Enjoyed (If any)	--
Account Operation	--
Remarks (If any)	--

Auditors :

Name :

M.S. Rama Rao and Company

Chartered Accountants

Address :

Jaya Mansion, Near Paradise, Secunderabad, Telangana, India

Mobile No.:

91-9849007766

Membership No.:

24310

Memberships :

Not Available

Collaborators :

Not Available

Sister Concern:

Name :	Jonna Iron Mart
Address :	Kamala Nagar, Anantapur, Andhra Pradesh, India
Line of Business:	Traders of Iron and Steel

Name :	Jonna Ramaiah and Sons
Address :	Kamala Nagar, Anatapur, Andhra Pradesh, India
Line of Business:	Traders of Iron and Steel

CAPITAL STRUCTURE

Capital Investment :
Owned :	Not Divulged
Borrowed :	--
Total :	Not Divulged

FINANCIAL DATA

[all figures are in INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2016
SHAREHOLDERS FUNDS
1] Capital
Partners’ Capital		40.459
Ex-Partners Outstanding		0.474
God Account		0.004
3] Share Application Money		0.000
4] Reserves & Surplus		0.000
5] (Accumulated Losses)		0.000
NETWORTH		40.937
LOAN FUNDS
1] Secured Loans		0.149
2] Unsecured Loans		0.000
3] Bank Overdraft		138.062
TOTAL BORROWING		138.211
DEFERRED TAX LIABILITIES		0.000
TOTAL		179.148
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.914
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	45.934
	Sundry Debtors	180.785
	Cash & Bank Balances	7.310
	Other Current Assets	32.649
	Loans, Advances and Deposit	0.302
Total Current Assets		266.980
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	73.551
	Other Current Liabilities and Provisions	15.195
Total Current Liabilities		88.746
Net Current Assets		178.234
MISCELLANEOUS EXPENSES		0.000
TOTAL		179.148

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2016
	SALES
		Income	938.147
		Other Income	0.235
		TOTAL	938.382
Less	EXPENSES
		Cost of goods sold	910.153
		Salaries	0.440
		Audit fees	0.015
		Income Tax Consultancy	0.000
		Advertisement	0.002
		Donations	0.004
		Electricity	0.033
		Insurance - Cars	0.029
		Professional Tax	0.005
		Office Expenses	0.037
		Rates and Taxes	0.024
		Shop/Godown Rent	0.198
		Telephone	0.035
		Vehicle Maintenance	0.016
		Partner Remuneration	1.200
		Interest on Capital	3.971
		Pooja and Diwali Expenses	0.000
		TOTAL	916.162
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		22.220
Less	FINANCIAL EXPENSES		17.821
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		4.399
Less	DEPRECIATION/ AMORTISATION		0.160
	PROFIT BEFORE TAX		4.239
Less	TAX		1.459
	PROFIT AFTER TAX		2.780

Particulars	31.03.2018	31.03.2017
Sales Turnover (Approximately)	700.000	650.000
	[Due to market fluctuation]

The above information has been parted by Mr. Shriniwas (Accountant).

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

FINANCIAL ANALYSIS

[all figures are in INR Million]

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2016	31.03.2017	31.03.2018
	INR In Million	INR In Million	INR In Million
Sales	938.147	650.000	700.000
		(30.714)	7.692

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 – Legal Form	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	Yes
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	No
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 three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last one year	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	INR
US Dollar	1	INR 66.36
UK Pound	1	INR 92.51
Euro	1	INR 81.05

INFORMATION DETAILS

Information Gathered by :	ARCH
Analysis Done by :	DIV
Report Prepared by :	JYO

SCORE FACTORS

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

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.