MIRA INFORM REPORT

Report No. :	499114.2
Report Date :	04.05.2018

IDENTIFICATION DETAILS

Name :	RAM PRAKASH & SONS
Registered Office :	B.XV. 669/2, Satsang Road, Overlock Road, Ludhiana-141003, Punjab
Mobile No.:	91-9815509454 [Mr. Gulshan Rai]
Country :	India
Financials (as on) :	31.03.2017
Year of Establishment :	Not Divulged
Capital Investment :	INR 12.436 Million
IEC No.: [Import-Export Code No.]	Not Divulged
GSTN : [Goods & Service Tax Registration No.]	03AATPR5202L1ZG
Service Tax :	AATPR5202LST001
Central Excise :	AATPR5202LXD001
TIN No.:	03481084163
PAN No.: [Permanent Account No.]	AATPR5202L
Legal Form :	Sole Proprietary Concern
Line of Business :	Not Divulged
No. of Employees :	01 [Approximately] [As per site visit]

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

Maximum Credit Limit :	USD 35500 [INR 2369181.25]
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear

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

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 31-03-2018.

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 04.05.2018.

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 DECLINED BY

Name :	Mr. Gulshan Rai
Designation :	Proprietor
Contact No.:	91-9815509454
Date :	26.03.2018

LOCATIONS

Registered Office :	B.XV. 669/2, Satsang Road, Overlock Road, Ludhiana-141003, Punjab, India
Tel. No.:	Not Available
Mobile No.:	91-9815509454/ 9915509454 [Mr. Gulshan Rai]
Fax No.:	Not Available
Area :	400 Sq. Ft. [As per site visit]
Locality :	Industrial [As per site visit]

SOLE PROPRIETOR

Name :	Mr. Gulshan Rai
Designation :	Proprietor
PAN No.:	AATPR5202L

BUSINESS DETAILS

Line of Business :	Not Divulged
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

GENERAL INFORMATION

Suppliers :

· Amrit Industries

· Vedanta Limited – Sesa Iron Ore

· S.R.V. Trading Co

· HS Steels LDH

· Prince Iron Store LDH

Customers :

· Vishal Trading Co

· Kirloskar Ferrous Ind Limited

· SLR Metaliks Limited

· RPK Steels Rolling Mills Private Limited

· Aarti Steels Limited, Ludhiana

No. of Employees :

01 [Approximately] [As per site visit]

Bankers :

Bank Name:	HDFC Bank Limited
Branch:	Not Divulged
Person Name (with Designation):	--
Contact Number:	--
Name of Account Holder:	--
Account Number:	--
Account Since (Date/ Year of A/c Opening):	--
Average Balance Maintained (Optional):	--
Credit Facilities Enjoyed (CC/OD/Term Loan):	--
Account Operation:	--
Remarks:	--

· State Bank of India

Facilities :

SECURED LOANS	31.03.2017 (INR In Million)	31.03.2016 (INR In Million)
HDFC Bank C/A LDH	7.769	0.000
HDFC Bank C/C A/C	16.599	26.691
HDFC Bank O/D	0.000	16.641
SBI-Car Loan	0.441	0.000
Total	24.809	43.332

Auditors :
Name :	A Kumar and Company Chartered Accountants
Memberships :	Not Divulged
Collaborators :	Not Divulged
Associates/Subsidiaries :	Not Divulged

CAPITAL STRUCTURE

CAPITAL ACCOUNT AS ON 31.03.2017

PARTICULARS	INR IN MILLION	PARTICULARS	INR IN MILLION
TDS	0.048	Opening Balance	11.762
Adv Tax	0.250	Net Profit	1.182
Withdrawal	0.335	Addition	0.200
Self Assement Tax	0.030
Central Excise	0.045
Closing Balance	12.436
	-----------		-----------
Total	13.144		13.144

FINANCIAL ANALYSIS

[all figures are in INR Million]

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

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2017	31.03.2016	31.03.2015
SHAREHOLDERS FUNDS
1] Proprietor Capital Account		12.436	11.762	9.776
2] Reserves & Surplus		0.000	0.000	0.000
NETWORTH		12.436	11.762	9.776
LOAN FUNDS
1] Secured Loans		24.809	43.332	29.866
2] Unsecured Loans		21.332	19.825	17.219
TOTAL BORROWING		46.141	63.157	47.085
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		58.577	74.919	56.861
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.428	1.755	1.118
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	1.684	0.000
	Sundry Debtors	59.239	76.085	63.983
	Cash & Bank Balances	0.270	0.192	0.249
	Other Current Assets	0.070	0.256	0.500
	Loans & Advances	0.000	0.000	0.000
Total Current Assets		59.579	78.217	64.732
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.852	4.816	8.764
	Other Current Liabilities	0.566	0.221	0.212
	Provisions	0.012	0.016	0.013
Total Current Liabilities		5.430	5.053	8.989
Net Current Assets		54.149	73.164	55.743
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		58.577	74.919	56.861

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2017	31.03.2016	31.03.2015
	SALES
		Sales	322.678	332.156	348.392
		Other Income	1.804	1.207	2.251
		Closing Stock	0.000	1.684	0.000
		TOTAL	324.482	335.047	350.643
Less	EXPENSES
		Opening Stock	1.684	0.000	2.171
		Purchase	304.809	322.941	338.218
		Direct Expenses
		Freight and Octroi	10.816	6.174	4.887
		Establishment Exp
		Bonus	0.041	0.039	0.034
		Salaries	0.490	0.462	0.383
		Selling and Distribution Expenses
		Brokerage	0.000	0.000	0.153
		Sales Promotion Exp	0.295	0.429	0.000
		Indirect Expenses
		Audit Fee	0.010	0.011	0.010
		Consignment Exp	0.005	0.008	0.016
		Freight Outward Exp	0.000	0.108	0.000
		General Exp	0.096	0.112	0.095
		Petrol and Diesel	0.113	0.112	0.136
		Professional Expenses	0.011	0.009	0.000
		Repair and Gen Insurance	0.109	0.117	0.060
		Service Tax	0.132	0.119	0.047
		TOTAL	318.611	330.641	346.210
Less	PROFIT BEFORE INTEREST AND DEPRECIATION AND AMORTISATION		5.871	4.406	4.433
Less	FINANCIAL EXPENSES		4.188	2.981	3.058
	PROFIT / (LOSS) BEFORE DEPRECIATION AND AMORTISATION		1.683	1.425	1.375
Less/ Add	DEPRECIATION/ AMORTISATION		0.502	0.216	0.198
	NET PROFIT/ (LOSS)		1.181	1.209	1.177

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	67.01	83.61	67.03
Account Receivables Turnover (Income / Sundry Debtors)	5.45	4.37	5.45
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	5.78	5.44	9.40
Inventory Turnover (Operating Income / Inventories)	0.00	2.62	0.00
Asset Turnover (Operating Income / Net Fixed Assets)	1.33	2.51	3.97

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.81	0.85	0.85
Debt Equity Ratio (Total Liability / Networth)	3.71	5.37	4.82
Current Liabilities to Networth (Current Liabilities / Net Worth)	2.15	2.12	2.68
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.36	0.15	0.11
Interest Coverage Ratio (PBIT / Financial Charges)	1.40	1.48	1.45

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin ((PAT / Sales) * 100)	%	0.37	0.36	0.34
Return on Total Assets ((PAT / Total Assets) * 100)	%	1.85	1.51	1.79
Return on Investment (ROI) ((PAT / Networth) * 100)	%	9.50	10.28	12.04

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	2.23	3.14	2.47
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	2.23	3.08	2.47
G-Score Ratio Financial (Networth / Total Assets)	0.19	0.15	0.15
G-Score Ratio Debt (Debts / Equity Capital)	3.71	5.37	4.82
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	2.23	3.14	2.47

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
Proprietor Capital Account	9.776	11.762	12.436
Reserves & Surplus	0.000	0.000	0.000
Net worth	9.776	11.762	12.436
Secured Loans	29.866	43.332	24.809
Unsecured Loans	17.219	19.825	21.332
Total borrowings	47.085	63.157	46.141
Debt/Equity ratio	4.816	5.370	3.710

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	348.392	332.156	322.678
		(4.660)	(2.853)

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	348.392	332.156	322.678
Profit	1.177	1.209	1.181
	0.34%	0.36%	0.37%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	No
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	Yes
5	Buyer visit details	Yes
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	No
9	Promoter’s background	No
10	Date of Birth of Proprietor / Partners / Directors	No
11	Pan Card No. of Proprietor / Partners	Yes
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	No
14	Line of Business	No
15	Export/import details (if applicable)	No
16	No. of employees [As per site visit]	Yes
17	Details of sister concerns	No
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	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	No
29	Profitability for last three 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	No
35	Negative Reporting by Auditors in the Annual Report	No

OBSERVATION POINTS

Name of Company :	RAM PRAKASH & SONS
Address :	B.XV. 669/2, Satsang Road, Overlock Road, Ludhiana-141003, Punjab, India
Contact No.:	91-9915509454
Date of Visit :	23.03.2018
Person to whom we met:	Owner’s Son [Name Not Divulged]
Name Board :	Not Sighted
Location:	Easy
Landmark (If Any):	Gurudwara Gurunanak Sewa Sabha
Total Floors of the Building :	Shed Type Premises
Subject situated on:	Shed Type Premises
Locality:	Industrial
Area of Premises :	400 Sq. Ft.
Area :	Neutral
No. of employees seen at premises:	01 [Approx.]
Neighbours Interview :	On inquiry with “Mahavir Steels” and “Vehaan Trading” both the neighbouring companies confirmed the existence of the subject on the given address.
Proof of visit:	Photos

UNSECURED LOANS

PARTICULARS	31.03.2017 (INR In Million)	31.03.2016 (INR In Million)
Gulshan Rai HUF	7.264	6.845
Parul Makkar	6.554	5.733
Sushma Makkar	7.514	7.247
Total	21.332	19.825

FIXED ASSETS:

Tangible Assets

· Plant and Machinery

· Vehicle

· Computer

· Furniture and Fixture

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 66.61
UK Pound	1	INR 90.60
Euro	1	INR 79.86

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	NIS
Report Prepared by :	IND

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	NO
--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.