MIRA INFORM REPORT

Report No. :	507798
Report Date :	05.05.2018

IDENTIFICATION DETAILS

Name :	KHANDELWAL STEEL INDUSTRIES
Registered Office :	Block No. 1988, Post Vamaj, Y.A. Kadi, Ahmedabad – 382721, Gujarat
Tel. No.:	91-2764-220233
Country :	India
Financials (as on) :	31.03.2018 (Turnover) 31.03.2016 (Financial)
Year of Establishment:	2000
Capital Investment / Paid-up Capital :	INR 27.437 Million (As on 31.03.2016)
TIN No.:	24040900659
IEC No.: [Import-Export Code No.]	Not Applicable (As informed by the management that firm does not have export and import)
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
CER No.: [Central Excise Registration Number]	AADFK5666RXM001
GSTN : [Goods & Service Tax Registration No.]	24AADFK5666R1ZO
PAN No.: [Permanent Account No.]	AADFK5666R
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturing and Trading of Mild Steel Products, Mild Steel Engle’s, Mild Steel ISM Channels, Mils Steel Right Angles etc. (Confirmed by management)
No. of Employees :	70 (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 is a Partnership firm established in the year 2000. It is a manufacturer and trader of Mild Steel products and Mild Steel Engines. Mr. Ashok Khandelwal (Proprietor) has claimed that the firm has achieved sales turnover of INR 900 million (Approximately) for the year 2017 and INR 950 million (Approximately) for the FY 2018 (which could not be verified). As per the available of 2016, the revenue of the firm has decreased by 29.41% but has managed to maintain low profit margin of 0.36%. The rating takes into consideration the satisfactory financial profile of the firm marked by comfortable capital base. However, rating is constrained on account of slightly high debt balance sheet profile highly competitive steel industry. Business is active. Payment seems to be slow. In view of aforesaid, the subject 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	CRISIL
Rating	Long Term Loan = B+
Rating Explanation	Risk-prone-credit-quality and carries very high credit risk.
Date	16.02.2017

Rating Agency Name	CRISIL
Rating	Short Term Loans = A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	16.02.2017

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 05.05.2018

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 PARTED BY

Name :	Mr. Ashok Khandelwal
Designation :	Manager
Contact No.:	91-9825018606
Date :	04.05.2018

LOCATIONS

Registered Office / Factory :	Block No. 1988, Post Vamaj, Y.A. Kadi, Ahmedabad – 382721, Gujarat, India
Tel. No.:	91-2764-220233
Mobile No.:	91-9825018606 (Mr. Ashok)
Fax No.:	Not Available
E-Mail :	Ksi.steel@yahoo.co.in
Location :	Owned
Locality :	Industrial
Administrative Office :	Varepari Jin, Kalol (N.G.), Kalol – 382721, Gujarat, India
Tel. No.:	91-2764-325633/292596

PARTNERS

Name :	Mr. Dilip Shyamlal Khandelwal
Designation :	Partner
Name :	Mr. Shyamlal Harinarayan Khandelwal
Designation :	Partner

KEY EXECUTIVES

Name :	Mr. Ashok Khandelwal
Designation :	Manager

BUSINESS DETAILS

Line of Business :	Manufacturing and Trading of Mild Steel Products, Mild Steel Engle’s, Mild Steel ISM Channels, Mils Steel Right Angles etc. (Confirmed by management)
Products :	Mild Steel Products Mild Steel Engle’s Mild Steel ISM Channels Mils Steel Right Angles
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Cash and RTGS
Purchasing :	Cash, L/C and RTGS

GENERAL INFORMATION

Suppliers :

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

Customers :

Wholesalers, Retailer and End Users

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

No. of Employees :

70 (Approximately)

Bankers :

Bank Name	Union Bank of India
Branch	Vepari Jenn, Gujarat, India
Person Name (With Designation)	--
Contact Number	91-2764-23125 (Number is 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 :

Deepak C. Gandhi and Company

Chartered Accountants

Address :

Ahmedabad, Gujarat, India

Membership No.:

035182

Memberships :

Not Available

Collaborators :

Not Available

Sister Concern:

Shree Balram Industries, Gujarat

CAPITAL STRUCTURE

As on 31.03.2016

Capital Investment :
Owned :	INR 27.437 Million
Borrowed :	--
Total :	INR 27.437 Million

FINANCIAL DATA

[all figures are in INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2016	31.03.2015
SHAREHOLDERS FUNDS
1] Partners Capital		27.437	26.764
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		27.437	26.764
LOAN FUNDS
1] Secured Loans		84.384	103.223
2] Unsecured Loans		56.912	49.734
TOTAL BORROWING		141.296	152.957
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		168.733	179.721
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		51.465	59.827
Capital work-in-progress		0.000	0.000
INVESTMENT		4.606	4.270
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	51.049	27.600
	Current Assets	72.757	138.544
Total Current Assets		123.806	166.144
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	11.144	50.520
Total Current Liabilities		11.144	50.520
Net Current Assets		112.662	115.624
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		168.733	179.721

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2016	31.03.2015
	SALES
	Income	859.547	1217.735
	Other Income	0.663	2.333
	TOTAL	860.210	1220.068
Less	EXPENSES
	Cost of Materials Consumed	778.396	1158.599
	Direct expense	35.166	26.026
	Indirect expenses	43.527	34.297
	TOTAL	857.089	1218.922
	PROFIT/ (LOSS) BEFORE TAX	3.121	1.146
Less	TAX	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX	3.121	1.146

Particulars	31.03.2018	31.03.2017
Sales Turnover (Approximately)	950.000	900.000
	(Due to Business Growth)

The above information has been denied by Mr. Ashok Khandelwal (Manager)

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

KEY RATIOS

LEVERAGE RATIOS

PARTICULARS	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.85	0.88
Debt Equity Ratio (Total Liability / Networth)	5.15	5.72
Current Liabilities to Networth (Current Liabilities / Net Worth)	2.48	3.75
Fixed Assets to Networth (Net Fixed Assets / Networth)	1.88	2.24

PROFITABILITY RATIOS

PARTICULARS		31.03.2016	31.03.2015
Net Profit Margin ((PAT / Sales) * 100)	%	0.36	0.09
Return on Total Assets ((PAT / Total Assets) * 100)	%	1.74	0.50
Return on Investment (ROI) ((PAT / Networth) * 100)	%	11.38	4.28

SOLVENCY RATIOS

PARTICULARS	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	1.82	1.66
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	1.07	1.38
G-Score Ratio Financial (Networth / Total Assets)	0.15	0.12
G-Score Ratio Debt (Debts / Equity Capital)	5.15	5.72
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	1.82	1.66

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
	INR In Million	INR In Million
Partner Capital	26.764	27.437
Reserves & Surplus	0.000	0.000
Net worth	26.764	27.437
Secured Loan	103.223	84.384
Unsecured Loan	49.734	56.912
Total borrowings	152.957	141.296
Debt/Equity ratio	5.715	5.150

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2015	31.03.2016
	(INR In Million)	(INR In Million)
Sales	1217.735	859.547
		(29.414)

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016
	INR In Million	INR In Million
Sales	1217.735	859.547
Profit	1.146	3.121
	0.09%	0.36%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	Yes
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	No
10	Date of Birth of Proprietor / Partners / Directors	No
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	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	No
26	Turnover of firm for last two years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last two years	Yes
30	Major shareholders, if available	No
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

No 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 66.77
UK Pound	1	INR 90.58
Euro	1	INR 79.97

INFORMATION DETAILS

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

SCORE FACTORS

DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	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.