MIRA INFORM REPORT

Report No. :	499081.2
Report Date :	08.05.2018

IDENTIFICATION DETAILS

Name :	JAIN STEELS INC
Registered Office :	A-108, Mangolpuri Industrial Area, Phase-2, New Delhi – 110034
Mobile No.:	91-9811191009 (Mr. Ajay Jain)
Country :	India
Financials (as on) :	31.03.2017
Year of Establishment :	2006
Capital Investment / Paid-up Capital :	INR 4.499 million (As on 31.03.2017)
IEC No.: [Import-Export Code No.]	Not Applicable (As informed by the management that firm does not have export and import)
GSTN : [Goods & Service Tax Registration No.]	07ADKPJ9023F1ZL
TIN / CST No.:	07710319066
PAN No.: [Permanent Account No.]	ADKPJ9023F
Legal Form :	Sole Proprietary Concern
Line of Business :	Trading of pig iron. [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

Maximum Credit Limit :	USD 13000 (In INR 873340.00)
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

Rating Agency Name	Brickwork Rating
Rating	Long Term Rating= B
Rating Explanation	High risk of default.
Date	28.02.2018

Rating Agency Name	Brickwork Rating
Rating	Short Term Rating= A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	28.02.2018

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 31-03-2018.

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 08.05.2018

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. Ajay Jain
Designation :	Proprietor
Contact No.:	91-9811191009
Date :	03.05.2018

LOCATIONS

Registered Office/ Warehouse :	A-108, Mangolpuri Industrial Area, Phase-2, New Delhi – 110034, India
Tel. No.:	Not Available
Mobile No.:	91-9811191009 (Mr. Ajay Jain)
Fax No.:	Not Available
E-Mail :	jainsteelsinc@hotmail.com
Locality :	Commercial (At site visit)

SOLE PROPRIETOR

Name :	Mr. Ajay Jain
Designation :	Proprietor
PAN No.:	AETPJ5854L

BUSINESS DETAILS

Line of Business :	Trading of pig iron. [Confirmed by management]
Products :	Pig Iron
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Credit (15 Days)
Purchasing :	Credit (15 Days)

GENERAL INFORMATION

Suppliers (As on 2017) :

Reference :	Jain Iron Store
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark :	--

• Sathavahna Ispat Limited
• S. P. Mahajan and Sons
• Akash Sales Corporation

Customers (As on 2017) :

Wholesalers, Retailers, End Users

Reference :	Metallic Limited
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark :	--

• Atibir Industries Co. Limited
• Jayaswal Neco In Industries Limited
• Delhi Foundry Private Limited
• RK Metal Works

No. of Employees :

15 (Approximately)

Bankers :

Banker Name :	Kotak Mahindra Bank Limited
Branch :	Ground Floor, Basement and Mezzanine, Plot No.28, Community Center, Naraina Industrial Area, Phase-I, New Delhi – 110028, India
Person Name (With Designation) :	--
Contact Number :	91-11-45539401 (Number is Continuously Ringing)
Name of Account Holder :	--
Account Number :	--
Account Since (Date/Year of Account Opening) :	--
Average Balance Maintained :	--
Credit Facilities Enjoyed (CC/OD/Term Loan) :	--
Account Operation :	--
Remark :	--

Auditors :
Name :	Madan and Associates Chartered Accountants
Address :	New Delhi, India
Membership No.:	082214
Collaborators :	Not Available
Membership :	Not Available
Sister Concern :	--

CAPITAL STRUCTURE

AS ON 31.03.2017

Particulars	INR in million
Capital Account
Ajay Jain	4.240
Add: Addition during the year	3.000
	7.240
Add: Profit during the year	0.809
	8.049
Less: TDS receivable	0.046
Less: Withdrawal	2.750
Less: Paid to Dharam Pal Jain	0.000
Less: Drawing	0.754
Total	4.499

FINANCIAL DATA

[all figures are INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2017	31.03.2016
EQUITY AND LIABILITIES
1] Proprietor’s Capital		4.499	4.240
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		4.499	4.240
LOAN FUNDS
1] Secured Loans		1.339	0.000
2] Unsecured Loans		9.230	6.011
TOTAL BORROWING		10.569	6.011
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		15.068	10.251
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.869	1.112
Capital work-in-progress		0.000	0.000
INVESTMENT		0.100	0.100
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2.647	2.489
	Sundry Debtors	3.780	4.576
	Cash & Bank Balances	7.059	2.008
	Other Current Assets	0.244	0.320
	Loans & Advances	0.578	0.557
Total Current Assets		14.308	9.950
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.923	0.740
	Other Current Liabilities & Provisions	0.286	0.171
Total Current Liabilities		2.209	0.911
Net Current Assets		12.099	9.039
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		15.068	10.251

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016
	SALES
	Income	31.740	25.581
	Other Income	1.067	1.877
	TOTAL	32.807	27.458
Less	EXPENSES
	Cost of goods sold	29.082	23.728
	Freight inward	0.902	0.531
	Salaries	0.221	0.262
	Miscellaneous expenses	0.006	0.001
	Business promotions	0.004	0.003
	Conveyance expenses	0.014	0.036
	Car expenses	0.079	0.082
	Accounting charges	0.025	0.030
	Audit fees	0.020	0.020
	Telephone and postage	0.051	0.071
	Insurance	0.017	0.024
	Rent	0.108	0.108
	Subscription and fee	0.007	0.006
	Water and electricity expenses	0.077	0.058
	Other expenses	0.209	0.464
	TOTAL	30.822	25.424
	PROFIT/ (LOSS) BEFORE INTEREST AND DEPRECIATION	1.985	2.034
Less	FINANCIAL EXPENSES	0.670	1.228
	PROFIT / (LOSS) BEFORE DEPRECIATION	1.315	0.806
Less	DEPRECIATION/ AMORTISATION	0.506	0.197
	NET PROFIT/ (LOSS)	0.809	0.609

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

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016
Average Collection Days (Sundry Debtors / Income * 365 Days)	81.18	28.65
Account Receivables Turnover (Income / Sundry Debtors)	4.50	12.74
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	24.14	11.38
Inventory Turnover (Operating Income / Inventories)	0.53	0.44
Asset Turnover (Operating Income / Net Fixed Assets)	0.69	1.83

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.74	0.62
Debt Equity Ratio (Total Liability / Networth)	2.35	1.42
Current Liabilities to Networth (Current Liabilities / Net Worth)	2.54	1.63
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.64	0.26
Interest Coverage Ratio (PBIT / Financial Charges)	2.96	1.66

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016
PAT to Sales ((PAT / Sales) * 100)	%	2.55	2.38
Return on Total Assets ((PAT / Total Assets) * 100)	%	4.68	5.46
Return on Investment (ROI) ((PAT / Networth) * 100)	%	17.98	14.36

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016
Current Ratio (Current Assets / Current Liabilities)	1.25	1.44
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.92	0.78
G-Score Ratio Financial (Networth / Total Assets)	0.26	0.38
G-Score Ratio Debt (Debts / Equity Capital)	2.35	1.42
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	1.25	1.44

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

FINANCIAL ANALYSIS

[all figures are INR Million]

DEBT EQUITY RATIO

Particular	31.03.2016	31.03.2017
	INR In Million	INR In Million
Proprietor’s Capital	4.240	4.499
Reserves & Surplus	0.000	0.000
Net worth	4.240	4.499
Secured Loans	0.000	1.339
Unsecured Loans	6.011	9.230
Total borrowings	6.011	10.569
Debt/Equity ratio	1.418	2.349

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2016	31.03.2017
	INR In Million	INR In Million
Sales	25.581	31.740
		24.076

NET PROFIT MARGIN

Net Profit Margin	31.03.2016	31.03.2017
	INR In Million	INR In Million
Sales	25.581	31.740
Profit/(Loss)	0.609	0.809
	2.38%	2.55%

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	Yes
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	Yes
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	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 two years	Yes
30	Major shareholders, if available	No
31	External Agency Rating, if available	Yes
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

OBSERVATION POINTS

Name of Company :	Jain Steels Inc
Address :	A-108, Mangolpuri Industrial Area, Phase-2, Pocket A, New Delhi – 110034, India
Mobile No.:	91-8750779110
Person to whom we met:	Barkhu (Security guard)
Name Board :	Not Sighted
Location:	Easy
Landmark (If Any):	Mangolpuri Flyover
Total Floors of the building:	Ground + 3 Floor
Subject situated on:	3^rd Floor
Locality:	Commercial
Area :	Upmarket
Neighbour’s Interview :	Name of the company: Gautam Properties Contact Person Name: Mr. Ramesh Name of the company: Sumit Enterprise Contact Person Name: Mr. Rahul
Neighbour’s Overview:	Existence confirmed
Proof of visit:	Photograph

FIXED ASSETS:

· Car

· Computer

· Scooter

· Water Purifier

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 :	SPR
Analysis Done by :	DIV
Report Prepared by :	NKT

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.