MIRA INFORM REPORT

Report No. :	486238
Report Date :	13.01.2018

IDENTIFICATION DETAILS

Name :	OSWAL MINERALS LIMITED
Registered Office :	No. 8/11, Police Station Road, Pallavaram, Chennai – 600043, Tamilnadu, India
Tel. No.:	91-80-23090049
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	04.07.1996
Com. Reg. No.:	18-035973
Capital Investment / Paid-up Capital :	INR 75.504 Million
CIN No.: [Company Identification No.]	L30006TN1996PLC035973
IEC No.:	0404013970
TAN No.: [Tax Deduction & Collection Account No.]	BLRO01140G
GSTIN:	Not Divulged
PAN No.: [Permanent Account No.]	AACCM6499G
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in the business of "import, export, sale, trade of all kinds of ferro alloys ferrous and non - ferrous metals, nitrogen bearing ferro alloys etc". [Registered Activity]
No. of Employees :	110 (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
Litigation :	Clear
Comments :	Subject was incorporated in the year 1996. It is a manufacturer, trader, exporter and seller of all kinds of Ferro alloys, ferrous and Non Ferrous materials. For the financial year 2017, the revenue of the company has increased by 26.64% but has reported low profit margin of 0.54%. The satisfactory financial profile of the company is marked by sufficient networth base. However, rating is constrained on account of poor debt coverage indicators due to high debt balance sheet profile. Rating is constrained on account of vulnerability of its operating margins to volatility in raw material prices marked by susceptibility of its operations to foreign exchange fluctuations risk and working capital intensive operations. However, rating weakness is partially offset by company’s established track record of business operations and promoters extensive industry experience. Payments are reported to be slow. In view of aforesaid, the company can be considered for business dealings with some caution. Note: The subject is currently not listed on BSE.

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 (30.06.2017)	Current Rating (30.09.2017)
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	Long term (BB)
Rating Explanation	Moderate risk of default.
Date	January 10, 2018

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 31-03-2016.

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 13.01.2018

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 DENIED BY

Name :	Mr. Dilip
Designation :	Accountant
Contact No.:	91-9448992102
Date :	13.01.2018

Name :	Mr. Sachin
Designation :	Area Manager
Contact No.:	91-9423044018
Date :	13.01.2018

91-251-2027004/ 05 (Not exist)

91-9323076999 (Ringing)

91-33-40635138 (Management Non Cooperative)

LOCATIONS

Registered Office :	No. 8/11, Police Station Road, Pallavaram, Chennai – 600043, Tamilnadu, India
Tel. No.:	Not Available
Mobile No.:	91-9448992102 (Mr. Dilip)
Fax No.:	Not Available
E-Mail :	oswalgroup@vsnl.com info@oswalminerals.com cs@oswalminerals.com
Website :	http://oswalminerals.com
Corporate Office/ Warehouse :	“Oswal’s”, No.1034, 2nd Floor, 1st Main Road, Dr. Rajkumar Road, 4th Block, Rajajinagar, Bangalore ‐ 560010, Karnataka, India
Tel. No.:	91‐80‐23090000
Fax No.:	91‐80‐23123114/ 23090022
Depots and Branch Offices :	No. 115, College Street, White Tower Building, 3rd Floor, Room No.‐ 3E, Kolkatta ‐700012, West Bengal, India No. 7‐8‐314/1, Ground Floor, Near Old Airport Road, Gouthamnagar, Ferozguda, Hyderabad - 500 011, Telangana, India No. 472/A, Avanashi Road, Kalkinagar, Peelamedu, Coimbatore, Tamilnadu, India Sarvoday Garden, No.9, Building No.2, Near Bhanu Sagar Talkies, Kalyan (West), Thane - 421301, Maharashtra, India Plot No. E‐ 59, Shiroli Industrial Area, MIDC, Kolhapur‐ 416122, Maharashtra, India Industrial Plot No.8, Paiki Sub Plot No. 8B, Survey No. 180, Behind Charbhuja Industries Private Limited, Near Mayur Straps and Packaging Industries, NH 8-B, Village Veraval -Shapar, Taluka Kotda Sangani, District Rajkot – 360024, Gujarat, India No. : 30-9-25, Sarada Street, Dabagardens, Visakhapatnam – 530020, Andhra Pradesh, India Plot No 11, Sector 25, Faridabad – 121004, Haryana, India Shop No.6, Ground Floor, Out of Door No.38/A, New No.293/4, Plot No.30, Canal Road, Basaveshwara Badavane, Hospet, Bellary -583201, Karnataka, India Jana Apartment, Jailkhana Road, Bhabanipur Haldia, Purba Medinipur, Medinipur (East) – 721657, West Bengal, India Nagpur Delhi Ahmedabad Belgaum

DIRECTORS

AS ON 31.03.2017

Name :	Ms. Sapna Jain
Designation :	Director
Address :	#1033,1st Main Road, Dr. Rajkumar Road, 4th Block, Opposite Planet Honda Service Center, Rajajinagar, Bangalore-560010, Karnataka, India
Date of Appointment :	07.05.2004
DIN No.:	00436890
Name :	Ms. Seema Jain
Designation :	Additional Director
Address :	#1033,1st Main Road, Dr. Rajkumar Road, 4th Block, Opposite Planet Honda Service Center, Rajajinagar, Bangalore-560010, Karnataka, India
Date of Birth/Age :	15.12.1979
Qualification :	B.COM graduate
Expertise in specific functional area :	The Company derives a lot of benefit from her diverse professional expertise and experience in Operations & procurement as well as at Board Level of the Company
Date of Appointment :	30.01.2017
DIN No.:	00437290
Name :	Mr. Sripal Kumar Mohanlal
Designation :	Managing Director
Address :	#1033,1st Main Road, Dr. Rajkumar Road, 4th Block, Opposite Planet Honda Service Center, Rajajinagar, Bangalore-560010, Karnataka, India
Date of Birth/Age :	01.07.1965
Expertise in specific functional area :	Sri Sripal Kumar Mohanlal, founder and Managing Director of the Company, has working experience of more than 35 years and is actively involved in day to day working of the Company.
Date of Appointment :	06.02.2004
DIN No.:	01000236
Name :	Mr. Subhashchand Mohanlal
Designation :	Director
Address :	#1033,1st Main Road, Dr. Rajkumar Road, 4th Block, Opposite Planet Honda Service Center, Rajajinagar, Bangalore-560010, Karnataka, India
Date of Birth/Age :	23.01.1976
Qualification :	B. Com
Expertise in specific functional area :	Mr. Subhashchand Mohanlal is having business experience of more than a decade in the field of Finance and Accounts
Date of Appointment :	01.04.2013
DIN No.:	01088346
Name :	Mr. Mohanlal Bharath Kumar Jain
Designation :	Wholetime Director
Address :	#1033,1st Main Road, Dr. Rajkumar Road, 4th Block, Opposite Planet Honda Service Center, Rajajinagar, Bangalore-560010, Karnataka, India
Date of Appointment :	27.02.2010
Date of Birth/Age :	07.04.1980
Qualification :	B.E (Chemical Engineer)
Expertise in specific functional area :	Sri. Mohanlal Bharath Kumar Jain is the Company derives a lot of benefit from his diverse professional expertise and experience in Operations & procurement as well as at Board Level of the Company
DIN No.:	01252633
Name :	Ms. Saritha Devi
Designation :	Director
Address :	#1033,1st Main Road, Dr. Rajkumar Road, 4th Block, Opposite Planet Honda Service Center, Rajajinagar, Bangalore-560010, Karnataka, India
Date of Appointment :	01.07.2012
DIN No.:	01261180
Name :	Mr. Bhagchand Ghisulal Jain
Designation :	Director
Address :	835/40, 15th Main, 3rd Block, Rajajinagar, Bangalore-560010, Karnataka, India
Date of Appointment :	30.06.2014
DIN No.:	06894213
Name :	Mr. Dinesh Kumar
Designation :	Director
Address :	61/1, New No.14, Shanti Nivas, 5th Cross, 7th Main, Srirampuram, Bangalore- 560021, Karnataka, India
Date of Appointment :	21.07.2014
DIN No.:	06925996
Name :	Mr. Manish Kumar Jain
Designation :	Additional Director
Address :	73/1, 9th Main, Srirampuram, Bangalore-560021, Karnataka, India
Date of Appointment :	24.05.2017
Date of Birth/Age :	02.03.1989
Qualification :	Bachelor in Business Management.
Expertise in specific functional area :	He runs Business of Scrap Paper Supply to various Industries.
DIN No.:	07813662

KEY EXECUTIVES

Name :	Mr. Subhashchand Mohanlal
Designation :	Chief Financial Officer (KMP)
Address :	#1033,1st Main Road, Dr. Rajkumar Road, 4th Block, Opposite Planet Honda Service Center, Rajajinagar, Bangalore-560010, Karnataka, India
Date of Appointment :	05.09.2014
PAN No.:	ACVPJ3358B
Name :	Mr. Milan Maroti
Designation :	Company Secretary
Address :	3/01, Wilson Garden, Bangalore-560027, Karnataka, India
Date of Appointment :	14.04.2017
PAN No.:	BBUPM0152M
Name :	Mr. Dilip
Designation :	Accountant
Audit Committee:
Name :	Mr. Dinesh Kumar – Chairman Mr. Bhagchand Ghisulal Jain – Member Mr. Mohanlal Bharath Kumar Jain – Member
Stakeholders Relationship Committee:
Name :	Mr. Dinesh Kumar – Chairman Mr. Bhagchand Ghisulal Jain – Member Mr. Mohanlal Bharath Kumar Jain – Member Mrs. Saritha Devi – Member
Nomination and Remuneration Committee:	Mr. Dinesh Kumar – Chairman Mr. Bhagchand Ghisulal Jain – Member Mrs. Saritha Devi – Member Mrs. Sapna – Member
Corporate Social Responsibility Committee:	Mr. Dinesh Kumar – Chairman Mr. Mohanlal Bharath Kumar Jain – Member Mr. Sripal Kumar Mohanlal – Member

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON: DECEMBER 2017

Category of Shareholders	No. of Shares	Percentage of Holding
Promoter & Promoter Group	5556992	73.60
Public	1993408	26.40
Grand Total	7550400	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of "import, export, sale, trade of all kinds of ferro alloys ferrous and non - ferrous metals, nitrogen bearing ferro alloys etc". [Registered Activity]

Products :

Item Code No.	Product Description
24204	Nickel, Nickel Briquettes, Cathodes etc.
24204	Ferro Silicon
24204	Low Carbon Ferro Chrome
24204	High Carbon Ferro Chrome

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark:	--

Customers :

Reference :	Not Divulged
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark:	--

No. of Employees :

110 (Approximately)

Bankers :

· RBL Bank Limited

· Citi Bank N.A.

· UCO Bank

· ICICI Bank Limited

· Axis Bank Limited

· State Bank of India

· HDFC Bank Limited

Facilities :

Secured Loan	31.03.2017 (INR in Million)	31.03.2016 (INR in Million)
Short-term borrowings
a) Loans repayable on demand
From Banks Secured
Citi Bank - CC	114.604	113.389
RBL Bank -CC	237.861	160.231
RBL Bank - (Buyer's Credit)	41.885	0.000
Total	394.350	273.620

Nature of Security

(a) Loan from Citi Bank - CC:

A. First pari passu charge on stock and book debts of the company;

B. First pari passu charge by way of equitable mortgage on commercial property situated at # 6, 2nd Main Road, Ramachandrapuram, Bangalore - 560020;

C. First pari passu charge by way of equitable mortgage on commercial property situated at # 110, Basaveshwar Nagar, 2nd stage extension, Bangalore;

D. Personal guarantee of a directors;

E. Demand Promissory Note.

(b) Loan from RBL bank - CC & Buyer's Credit:

A. First pari passu charge on stock and book debts and other current assets of the company both present and future;

B. First pari passu charge on entire movable fixed assets of the company both present and future;

C. Exclusive Equitable Mortgage on residential property located at # 1031/A, Dr. Rajkumar Road, 1st Main Road, Rajajinagar, Bagalore - 560010;

D. Exclusive Lien over Fixed deposits;

D. Irrevocable Personal guarantee of a directors.

Auditors 1:
Name :	N.N. Yuvaraj and Associates Chartered Accountants
Address :	“Vision Point” #23, 3rd Floor, Park Road, Off‐Queens Road, Bangalore – 560051, Karnataka, India
Tel. No.:	91-80-22869792/ 22862672
Fax No.:	91-80-42109272
E-Mail :	info@nnyind.com
Auditors 2:
Name :	V. Patliya and Company Chartered Accountants
Address :	97/17, 2^nd Floor, 1^st main Road, Sheshdripuram, Bangalore – 560020, Karnataka, India
Mob. No.:	91-8792120201
E-Mail :	vijitpitliya@vpitliya.com
Memberships :	--
Collaborators :	--
Companies/ Firm in which KMP and their relatives are directors or members or Partners :	· Oswal Alloys Private Limited · Oswal Smelters Private Limited

CAPITAL STRUCTURE

After as : 30.09.2016

Authorised Capital : INR 85.000 million

Issued, Subscribed & Paid-up Capital : INR 76.118 Million

AS ON 31.03.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
8500000	Equity Shares	INR 10/- each	INR 85.000 Million

Issued Capital :

No. of Shares	Type	Value	Amount
7750000	Equity Shares	INR 10/- each	INR 77.500 Million
	Total		INR 77.500 Million

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7750000	Equity Shares	INR 10/- each	INR 77.500 Million
	Less: Calls in arrears		INR 1.382 Million
199600	Less: Shares forfeited during the year due to non - payment of calls		INR 0.614 Million
	Total		INR 75.504 Million

Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period :

Particulars	As at 31 March, 2017
	Number of Shares	Amount
Shares outstanding at the beginning of the year	7750000	77.500
Shares issued during the period	Nil	Nil
Shares bought back during the year	Nil	Nil
Any other movement (Calls in arrears)	Nil	1.382
Any other movement (Shares forfeited during the year due to non - payment of calls)	199600	0.614
Shares outstanding at the end of the period	7550400	75.504

Rights, preferences and restrictions attaching to equity shares

1. The Company has one class of equity shares having a par value of INR 10/- each.

2. Each shareholder is eligible for one vote per share held.

3. The dividend proposed by the Board of Director is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

4. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential creditors, in proportion to their shareholding.

Details of shares held by each shareholder holding more than 5% shares

Class of Shares / Name of Shareholder	As at 31 March, 2017
	Number of Shares held	% of holding in that class of shares
Equity Shares with voting rights :
Hirachand Mohanlal	999400	13.24
Mohanlal Subhash Jain	1582800	20.96
Sripal Kumar Jain	988960	13.10
Info Highway Consultants Private Limited	601500	7.97

FINANCIAL DATA

[all figures are in INR Million]

ABRIDGED BALANCE SHEET (STANDALONE)

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	75.504	76.118	76.118
(b) Reserves & Surplus	115.597	70.602	155.568
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	191.101	146.720	231.686
(3) Non-Current Liabilities
(a) long-term borrowings	1815.591	1232.022	1424.923
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(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)	1815.591	1232.022	1424.923
(4) Current Liabilities
(a) Short term borrowings	394.350	273.620	239.592
(b) Trade payables	176.115	448.054	256.390
(c) Other current liabilities	31.228	28.213	27.519
(d) Short-term provisions	0.000	0.000	0.033
Total Current Liabilities (4)	601.693	749.887	523.534
TOTAL	2608.385	2128.629	2180.143
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	7.299	9.147	9.080
(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)	1.501	1.196	0.844
(d) Long-term Loan and Advances	17.025	16.721	20.956
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	25.825	27.064	30.880
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	585.387	536.831	410.274
(c) Trade receivables	1565.764	1525.054	1702.799
(d) Cash and cash equivalents	(71.846)	(82.060)	(99.472)
(e) Short-term loans and advances	503.255	121.740	135.662
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	2582.560	2101.565	2149.263
TOTAL	2608.385	2128.629	2180.143

PROFIT & LOSS ACCOUNT (STANDALONE)

	PARTICULARS	31.03.2016	31.03.2015	31.03.2014
	SALES
	Income	8287.094	6543.938	8444.678
	Other Income	7.627	8.671	11.367
	TOTAL	8294.721	6552.609	8456.045
Less	EXPENSES
	Purchases of Stock-in-Trade	7250.948	5848.749	7667.131
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(48.556)	(126.557)	(242.183)
	Employees benefits expense	36.011	30.973	24.508
	Other expenses	908.089	765.066	836.984
	TOTAL	8146.492	6518.231	8286.440
	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	148.229	34.378	169.605
Less	FINANCIAL EXPENSES	100.681	114.640	113.577
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	47.548	(80.262)	56.028
Less/ Add	DEPRECIATION/ AMORTISATION	3.472	3.558	4.296
	PROFIT/ (LOSS) BEFORE TAX	44.076	(83.820)	51.732
Less	TAX	(0.305)	(0.351)	15.383
	PROFIT/ (LOSS) AFTER TAX	44.381	(83.469)	36.349
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	28.100	113.066	77.872
Less	Short income tax provision made last year	0.000	(1.497)	(1.148)
Less	Adjustment relating to fixed assets	0.000	0.000	(0.007)
	Balance Carried to the B/S	72.481	28.100	113.066
	EARNINGS IN FOREIGN CURRENCY
	Export of goods calculated on FOB basis	831.804	767.349	1467.983
	TOTAL EARNINGS	831.804	767.349	1467.983
	IMPORTS
	Finished goods	3473.885	2442.224	3004.911
	TOTAL IMPORTS	3473.885	2442.224	3004.911
	Earnings / (Loss) Per Share (INR)	5.87	(10.98)	4.78

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	120.715	138.336	233.272
Net Cash flows from operating activities	110.657	134.886	215.473

QUARTERLY RESULTS

Particulars	30.06.2017 (Unaudited)
	1^st Quarter
Net Sales	2274.970
Total Expenditure	2255.820
PBIDT (Excl OI)	19.150
Other Income	2.300
Operating Profit	21.450
Interest	7.930
Exceptional Items	NA
PBDT	13.520
Depreciation	0.870
Profit Before Tax	12.650
Tax	(0.070)
Provisions and contingencies	NA
Profit After Tax	12.720
Extraordinary Items	NA
Prior Period Expenses	NA
Other Adjustments	NA
Net Profit	12.720

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	68.96	85.06	73.60
Account Receivables Turnover (Income / Sundry Debtors)	5.29	4.29	4.96
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	8.87	27.96	12.21
Inventory Turnover (Operating Income / Inventories)	0.25	0.06	0.41
Asset Turnover (Operating Income / Net Fixed Assets)	20.31	3.76	18.68

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.93	0.93	0.89
Debt Equity Ratio (Total Liability / Networth)	11.56	10.26	7.18
Current Liabilities to Networth (Current Liabilities / Net Worth)	3.15	5.11	2.26
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.04	0.06	0.04
Interest Coverage Ratio (PBIT / Financial Charges)	1.47	0.30	1.49

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin (PAT / Sales) * 100)	%	0.54	(1.28)	0.43
Return on Total Assets ((PAT / Total Assets) * 100)	%	1.70	(3.92)	1.67
Return on Investment (ROI) ((PAT / Networth) * 100)	%	23.22	(56.89)	15.69

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	4.29	2.80	4.11
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	3.32	2.09	3.32
G-Score Ratio Financial (Networth / Total Assets)	0.07	0.07	0.11
G-Score Ratio Debt (Debts / Equity Capital)	29.27	19.78	21.87
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	4.29	2.80	4.11

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

FINANCIAL ANALYSIS

[all figures are in INR Million]

DEBT EQUITY RATIO

Particular	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Share Capital	76.118	76.118	75.504
Reserves & Surplus	155.568	70.602	115.597
Net worth	231.686	146.720	191.101
Long-term borrowings	1424.923	1232.022	1815.591
Short term borrowings	239.592	273.620	394.350
Total borrowings	1664.515	1505.642	2209.941
Debt/Equity ratio	7.184	10.262	11.564

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	8444.678	6543.938	8287.094
		(22.508)	26.638

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	8444.678	6543.938	8287.094
Profit/ (Loss)	36.349	(83.469)	44.381
	0.43%	(1.28%)	0.54%

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	No
19	Major customers	No
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	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	No
35	Negative Reporting by Auditors in the Annual Report	No

OPERATION AND PERFORMANCE

During the year, despite the dramatic market conditions the Company achieved INR 8287.094 million revenue from operations, as compared to INR 6543.938 Million in the financial year 2015-16. The Company recorded Profit after Tax of INR 44.381 million as compared to loss of INR 83.469 million previous financial year.

The Company has opened a branch in Faridabad (Haryana) to extend its wings in Northern India. The company is also flourishing in Middle East and far East Countries, Europe, African and Gulf Countries.

During the year the Company has forfeited 199600 Equity shares on 16 June 2016 due to non-payment of calls, thereafter restructuring the paid-up share capital to 7550400 Equity shares.

MANAGEMENT DISCUSSION AND ANALYSIS

OVERVIEW, INDUSTRY STRUCTURE, DEVELOPMENT AND OUTLOOK

Despite the slowdown in the global economy, the Indian economy registered a reasonable growth in the first two quarters of FY 2016-17 benefiting from a good monsoon after successive rain-deficient years Economic growth however, slowed down to 7% in Q3 FY 2016-17 as compared to 7.4% in Q2 FY 2016-17 due to the impact of demonetization. GDP growth of 7.1% in financial year 2016-17 as against 7.6% in FY’16 was primarily due to industrial slowdown and the possible impact of demonetization. Despite this, India will remain one of the fastest growing major economies globally in 2017.

Ferro-alloys are critical additives in the production of Iron and Steel and the fortune of Ferro Alloys Industry is directly linked with the growth of Iron and Steel Industry. India accounts for around 7-8% of the world’s Ferro Alloys production. India emerged as a preferred supplier of ferro alloys on account of abundant availability of key resources comprising chrome ore and manganese ore, trained and cost effective manpower and favorable location.

Looking to the worldwide global demand of steel and domestic increasing trend of steel demand, the consumption of Ferro Alloys is increasing rapidly in India and the rest of the world which is encouraging the production capacities in India during this decade and further increasing the production capacities especially in Manganese Alloys. With the growth in production and consumption of Steel in India, the Ferro alloys demand is likely to increase with increased consumption of Steel and the Company is well positioned to reap the benefits of increased demand. The Company is exploring the growth opportunities in India and abroad.

OPPORTUNITIES AND THREATS

The growth of Ferro-Alloy Industry is directly linked with the growth of Iron and Steel Industry. India’s per capita steel consumption is much below the global average consumption, thereby reflecting massive under-penetration and immense opportunities for growth, which will in turn, drive ferro-alloys demand. Further, with investments/ expansion plans in Smart Cities, Roads, Railways, Automobile Sector and Power Sector, the demand for Ferro Alloys is expected to improve in coming years.

Further, it is hoped that the government would recognize the challenges arising out of periodic administered price increases of power and input materials which hamper the competiveness of this industry and take steps to address them urgently to enable the ferro alloy industry to compete in the domestic as well as international markets.

BUSINESS PERFORMANCE

During the year, despite the dramatic market conditions the Company achieved INR 8287.094 Million revenue from operations, as compared to INR 6543.938 Million in the financial year 2015-16. The Company recorded Profit after Tax of INR 44.381 Million as compared to loss of INR 83.469 Million previous financial year. The company is engaged primarily in the business of trading in Ferro Alloys and Minerals. Hence, there are no separately reportable segments.

CORPORATE INFORMATION

Subject the Company is a Public Limited Company domiciled in India and is listed on the Metropolitan Stock Exchange of India Limited (MSEI). The company incorporated on 4th July,1996 under the provisions of the Companies Act, 1956 ("The Act") and is having it's registered office at " #8/11, Police station Road, Pallavaram, Chennai-600043" and Corporate office at "Oswal's", # 1034, 2nd Floor, 4th block, Dr. Raj Kumar Road, Rajaji Nagar, Bangalore, Karnataka - 560010.

The Company is engaged in the business of "import, export, sale, trade of all kinds of ferro alloys ferrous and non - ferrous metals, nitrogen bearing ferro alloys etc".

UNSECURED LOAN

PARTICULARS	31.03.2017 (INR in Million)	31.03.2016 (INR in Million)
Long-term Borrowings
Loans and advances from related parties
Un secured From directors	1815.591	1232.022
Total	1815.591	1232.022

CONTINGENT LIABILITIES:

(INR in Million)

PARTICULARS	31.03.2017
Other money for which the Company is contingently liable
Demand raised for Entry tax as per West Bengal Value Added Tax rules, 2005	2.835

INDEX OF CAHREGS:

SNo	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Date of Satisfaction	Amount	Address
1	G70145974	100140026	HDFC BANK LIMITED	27/10/2017	-	-	200000000.0	HDFC BANK HOUSE SENAPATI BAPAT MARGLOWER PAREL WMUMBAIMH400013IN
2	G54720792	100125157	YES BANK LIMITED	05/09/2017	-	-	300000000.0	NEHRU CENTER, 9TH FLOOR, DISCOVERY OF INDIA,DR. A.B. ROAD, WORLIMUMBAIMH400018IN
3	G37234986	10469083	RBL BANK LIMITED	23/12/2013	20/02/2017	-	300000000.0	SHAHUPURI,KOLHAPUR,KOLHAPURMa416001IN
4	G60731361	10368306	CITI BANK N.A.	27/06/2012	13/09/2017	-	320000000.0	3rd Floor, Canberra BlockUB City, Vittal Mallya RoadBangaloreKA560001IN
5	C15615206	10039457	State Bank of India	25/09/2006	-	05/08/2014	12000000.0	COMMERICAL BRANCH, RAJAJINAGAR INDUSTRIAL ESTATEWEST OF CHORD ROAD, RAJAJINAGARBANGALOREKA560044IN
6	B97252225	10240420	KOTAK MAHINDRA BANK LIMITED	18/08/2010	-	03/02/2014	235000000.0	36-38A, NARIMAN BHAVAN, 227,D,NARIMAN POINT,MUMBAIMH400021IN

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED AND SIX MONTHS SEPTEMBER 30, 2017

(INR In Million)

PARTICULARS	3 Months		9 Months
	30.09.2017	30.06.2017	30.09.2017
	[Unaudited]	[Unaudited]	[Unaudited]
1. Income from Operations
Net Sales/income from operations	2133.186	2274.973	4408.159
Other Operating Income	0.871	2.297	3.168
Total income from operations (net)	2134.057	2277.270	4411.327
Expenses
Purchases of stock-in trade	2086.861	2056.958	4143.819
Changes in inventories of finished goods. work-in-progress and stock in trade	(114.928)	35.411	(79.517)
Employee benefits expense	9.261	9.321	18.581
Depreciation and Amortization Expenses	0.868	0.868	1.736
Other Expenses	126.921	154.135	281.056
Finance Costs	10.651	7.932	18.583
Excise Duty
Total expenses	2119.634	2264.625	4384.258
Profit/ (Loss) from ordinary activities after finance cost but before exceptional items	14.423	12.645	27.069
Exceptional items	0.000	0.000	0.000
Profit/ (Loss) from ordinary activities before tax	14.423	12.645	27.069
Tax expenses	-0.069	-0.069	-0.138
Net Profit / (Loss) from ordinary activities after tax	14.491	12.715	27.207
Extraordinary item (net of tax expense)	0.000	0.000	0.000
Net Profit / (Loss) for the period	14.491	12.715	27.207
Comprehensive Income	0.000	0.000	0.000
Net Profit/ (Loss) after taxes, minority interest and share of profit/(loss) of associates	14.491	12.715	27.207
Paid up equity share capital (Face Value of INR 10/-each)	75.504	75.504	75.504
Reserve excluding Revaluation Reserve as per Balance Sheet of previous accounting year	115.597	115.597	115.597
Earnings per share (before extraordinary items) of INR 10/- each (not annualized):
(a) Basic	1.92	1.68	3.60
(b) Diluted	1.92	1.68	3.60

UNAUDITED STATEMENT OF ASSETS AND LIABILITIES AS AT SEPTEMBER 30, 2017

(INR In Million)

Particulars	30.09.2017
	Unaudited
EQUITY AND LIABILITIES
SHAREHOLDERS’ FUNDS
Share Capital	75.504
Reserves and Surplus	142.804
Shareholders’ funds total	218.308
NON-CURRENT LIABILITIES
Borrowing	1768.111
Deferred tax liabilities (Net)	0.000
Other long term liabilities	0.000
long-term provisions	0.000
Non-Current Liabilities Total	1768.111
CURRENT LIABILITIES
Financial Liabilities
Borrowing	353.432
Trade payables	311.478
Other current financial liabilities	35.759
Provisions	0.000
Other current liabilities	0.000
Current Liabilities Total	700.668
TOTAL – EQUITY AND LIABILITIES	2687.087
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment	7.619
Capital Work-in-progress	0.000
Investment properties	0.000
Other Intangible assets	0.000
Financial assets
Loans to related party	0.000
Long-term loans and advances	27.325
Deferred tax assets (Net)	1.639
Other non-current assets	0.000
Non-Current Assets Total	36.583
CURRENT ASSETS
Inventories	664.904
Financial Assets
Trade receivables	1501.300
Cash and Cash equivalents	(89.132)
Short-term loans and advances	573.431
Loans	0.000
Other current assets	0.000
Current Assets Total	2650.504
TOTAL - ASSETS	2687.087

FIXED ASSETS:

Tangible Assets

· Computer

· Plant and Equipment

· Office Equipment

· Furniture and Fixtures

· Vehicles

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	INR
US Dollar	1	INR 63.53
UK Pound	1	INR 86.05
Euro	1	INR 76.53

INFORMATION DETAILS

Information Gathered by :	SVT
Analysis Done by :	VRS
Report Prepared by :	MTN

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	YES
--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.