MIRA INFORM REPORT

Report Date :

06.01.2007

IDENTIFICATION DETAILS

Name :	ASHIRVAD PIPES PRIVATE LIMITED
Registered Office :	4-B, Attiblele Industrial Area, Hosur Road, Bangalore – 562107, Karnataka
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	18/02/1997
Com. Reg. No.:	08-21831
CIN No.: [Company Identification No.]	U27201KA1997PTC021831
TAN No.: [Tax Deduction & Collection Account No.]	BLRA01535C
Legal Form :	Private limited liability company
Line of Business :	Manufacturer of PVC Pipes

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 275000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Directors are reported as experienced, respectable and having satisfactory means of their own. Financial position is good. Trade relations are fair. Payments are correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :		4-B, Attibele Industrial Area, Hosur Road, Bangalore - 562107
Tel No :	91-80-27820542/543/271
Fax No. :	91-80-27820463
Email :	ashirvadpipes@vsnl.com info@ashirvad.com
Website :	http://www.ashirvad.com

DIRECTORS

Name :	Mr. Pawan Poddar
Designation :	Director
Address :	# 621, 3^rd Cross, 3^rd Block, Koramangala, Bangalore – 560034, Karnataka, India
Date of Birth :	27.10.1959
Date of Appointment :	18.02.1997
Name :	Mr. Deepak Poddar
Designation :	Director
Address :	Flat No. 102/202, ‘F’ Block, ‘Redwood’, Raheja Residency, Koramangala, Bangalore – 560034, Karnataka, India
Date of Birth :	21.05.1962
Date of Appointment :	18.02.1997
Name :	Mr. Vikas Poddar
Designation :	Director
Address :	Flat No. 309/409, ‘G’ Block, Spruce, Raheja Residency, Koramangala, Bangalore – 560034, Karnataka, India
Date of Birth :	10.04.1964
Date of Appointment :	18.02.1997

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. Pawan Poddar	19000
Mr. Deepak Poddar	19000
Mr. Vikas Poddar	19100
Pawan Poddar HUF	14500
Deepak Poddar HUF	14500
Vikas Poddar HUF	14500
Ashirvad Enterprises Private Limited	100
Ms. Jaya Poddar	100

BUSINESS DETAILS

Line of Business :	Manufacturer of PVC Pipes
Products :	Ø PVC Pipes Ø CI Adaptors

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
PVC Pipes	MT	3200	2363

GENERAL INFORMATION

No. of Employees :	100
Bankers :	Vijaya Bank – Ahmedabad

Banking Relations :	Satisfactory
Auditors :	Dinesh & Pushparaj Chartered Accountants, No. 7, West Gate Point, 77, R. V. Road, Gasavanagudi, Bangalore – 560004, Karnataka, India PAN No. : AADFD9248G

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
130000	Equity Shares	Rs. 100 each	Rs. 13.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
126000	Equity Shares	Rs. 100 each	Rs. 12.600 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		12.600	10.080
2] Reserves & Surplus		59.036	40.135
3] (Accumulated Losses)		0.000	[10.000]
NETWORTH		71.636	40.215
LOAN FUNDS
1] Secured Loans		98.654	105.730
2] Unsecured Loans		7.133	11.704
TOTAL BORROWING		105.787	117.434
DEFERRED TAX LIABILITIES		0.000	0.961
TOTAL		177.423	158.610
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		65.851	65.304
Capital work-in-progress		0.000	0.000
INVESTMENT		0.005	0.005
DEFERREX TAX ASSETS		0.118	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	83.744	73.495
	Sundry Debtors	57.519	40.006
	Cash & Bank Balances	2.767	1.278
	Loans & Advances	23.768	21.520
Total Current Assets		167.798	136.299
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities & Provisions	56.974	43.120
Total Current Liabilities		56.974	43.120
Net Current Assets		110.824	93.179
MISCELLANEOUS EXPENSES		0.625	0.122
TOTAL		177.423	158.610

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005
Sales Turnover [including other income]	472.303	403.760
Net Profit	26.494	4.379
Total Expenditure	445.809	399.381

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005
PAT / Total Income	(%)	5.60	1.08
Net Profit Margin (PBT/Sales)	(%)	5.60	1.08
Return on Total Assets (PBT/Total Assets}	(%)	11.33	2.17
Return on Investment (ROI) (PBT/Networth)		0.36	0.10
Debt Equity Ratio (Total Liability/Networth)		2.27	3.99
Current Ratio (Current Asset/Current Liability)		2.94	3.16

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets :

Ø Land

Ø Factory Building

Ø Plant and Machinery

Ø Plant and Machinery- Others

Ø Electrical Installation

Ø Office Equipments

Ø Testing Equipment

Ø Diesel Gen Set

Ø Dise, Tools and Fixtures

Ø Weighing Scale

Ø Furniture and fixtures

Ø Vehicles

Ø Computer and software

Ø Storage Tank-LDO

Name of the company	ASHIRVAD PIPES PRIVATE LIMITED
Presented By	4-B, Attiblele Industrial Area, Hosur Road, Bangalore – 562107, Karnataka
1) Date and description of instrument creating the change	18.12.1997 Hypothecation Agreement
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 5.500 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of plant and machineries proposed to be acquired belonging to the company
4) Gist of the terms and conditions and extent and operation of the charge.	Interest @ 15.81% p.a. Margin applicable Repayable in 48 equal monthly instalments with initial repayment holiday of 6 months. Interest to be collected as and when debited
5) Name and Address and description of the person entitled to the charge.	Vijaya Bank Mayohall Branch, Bangalore – 560001
6) Date and brief description of instrument modifying the charge	N.A.
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	N.A.

Name of the company	ASHIRVAD PIPES PRIVATE LIMITED
Presented By	VIJAYA BANK, MAYOHALL BRANCH, M. G. ROAD, BANGALORE – 560001
1) Date and description of instrument creating the change	29.09.1999 Hypothecation Agreement
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 1.725 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hyp. of machineries, fixtures, etc belonging to the company
4) Gist of the terms and conditions and extent and operation of the charge.	Interest @ 16.83% pa Margin as applicable Repayable in 48 equal monthly installments of Rs. 0.054 millions with six months moratorium
5) Name and Address and description of the person entitled to the charge.	Vijaya Bank Mayohall Branch, M. G. Road, Bangalore – 560001, Karnataka, India
6) Date and brief description of instrument modifying the charge	Not Applicable
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Not Applicable

Name of the company	ASHIRVAD PIPES PRIVATE LIMITED
Presented By	VIJAYA BANK, MAYOHALL BRANCH, M. G. ROAD, BANGALORE – 560001
1) Date and description of instrument creating the change	10.03.2001 Agreement Memorandum [Letter evidencing re-deposit of title deeds] [Both documents relate to single charge]
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 1.100 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Factory shed & generator room proposed to be constructed at existing factory Plot No. 4-B, KIADB Industrial Area, Attibele at Bangalore, Extension of equitable mortgage created by deposit of title deeds on companies immovable properties at Attibele Industrial Area, Anekal Taluk, Bangalore District to continue
4) Gist of the terms and conditions and extent and operation of the charge.	Interest @ 16.50% pa Margin as applicable Repayable in 2^nd of every month beginning 2^nd October, 2001 for Rs. 0.028 millions each
5) Name and Address and description of the person entitled to the charge.	Vijaya Bank Mayohall Branch, M. G. Road, Bangalore – 560001, Karnataka, India
6) Date and brief description of instrument modifying the charge	Not Applicable
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Not Applicable

Name of the company	ASHIRVAD PIPES PRIVATE LIMITED
Presented By	VIJAYA BANK, MAYOHALL BRANCH, M. G. ROAD, BANGALORE – 560001
1) Date and description of instrument creating the change	17.12.1997 Letter evidencing re-deposit of title deeds
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 2.600 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Equitable mortgage created by deposit of title deeds on company’s immovable properties at Icchangur, Attibele Hobli, Anekal Taluk, Bangalore [more fully described in the schedule ‘A’]
4) Gist of the terms and conditions and extent and operation of the charge.	Interest @ 15.81% pa Margin as applicable Repayable in 48 equal monthly instalments with an initial repayment holiday of 6 months Interest to be paid as and when debited
5) Name and Address and description of the person entitled to the charge.	Vijaya Bank Mayohall Branch, M. G. Road, Bangalore – 560001, Karnataka, India
6) Date and brief description of instrument modifying the charge	Not Applicable
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Not Applicable

AS PER WEBSITE

History

The Company is promoted by dedicated and highly enterprising Poddar family headed by Shri L. N. Poddar.

Ashirvad Enterprises - Commenced its manufacturing operation 30 years ago at Patna. Drawing upon its rich & unique experience in manufacturing, ASHIRVAD PIPES PRIVATE LIMITED, an ISO - 9001-2000 Company, came into existence at Attibele Industrial area, Bangalore.

The Company is promoted by dedicated and highly enterprising Poddar family. The promoters of this Company are recognized as "INNOVATORS" in PVC pipes industry in India having developed number of products for the first time in India viz., Hand Pump Pipes & Filters, Column Pipes and Socketing Machines.

New era was started with the advancement of technology change, from traditional usage of Steel Pipes to new breed of Company's range of product, uPVC Column Pipes, Plumbing Pipes, Hand pump and Jet pump pipes. In fact, the company was the first to receiveISI certification for SWR and PVC casing pipes in India. The company is a front runner and has many unique technological innovations to its credit.

Men and Mind behind Ashirvad

The driving force behind the company are the Promoter Directors of the company, well known in the industry as "ASHIRVAD PEOPLE".

The Company is promoted by dedicated and highly enterprising Poddar family headed by Shri L. N. Poddar.

MR. PAWAN PODDAR, senior most Director is known for his marketing and finance acumen. He possess excellent leadership and managerial skills which are the driving force in "moving" the market, accelerating the sales, motivating both the channel partners as well as the marketing team to bring out the best from them. Company's rapid growth year after year is a natural corollary to his aggressive marketing skills.

MR. DEEPAK PODDAR, a mechanical engineer, is at the helm of company's technology front. He also monitors company's production front. His technical skills are recognized in the Indian PVC Industry and is a regular visitor to national and international seminars, trade fairs and workshops.

The products being innovative and widely accepted across the country itself are a testimonial of his technical skills. He is an associate member of standard committee of Indian Standards Institute (ISI).

MR. VIKAS PODDAR, Director, is an expert in procuring quality raw materials in time and maintains good rapport with all leading suppliers and leads the company's purchase wing. In addition to this, he also looks after Human Resource Development and Administration.
He also looks after Marketing acumen & activities.

The company's ability to deliver it's products on time speaks volumes of his procurement and administrative skills.

The innovative ideas of Poddar brothers has given birth to start manufacture uPVC column Pipes & PVC Belling Machine, one of its kind for first time in India.

The Progress Story

After commencing operations at Bangalore, the production capacity rapidly increased from 1200 MT in 1998 to 3200 MT in the year 2001.

Presently the production capacity has increased from 3200 MT to 7000 MT. Further capacity addition is in progress to meet the rising demand.

The company started with 6000 sq. ft. of covered area in 1998 and is currently having 55,000 sq. ft.

Started with 1 acre land now it is having 4 acres. Further addition is in progress.

Products

Diversified in C PVC project for FLOW GUARD piping system, which will be further expanded to CORZAN industrial piping system from NOVEON.

The company plans to make further diversification in the form of SWR pipes & fittings, which will complete the range of plumbing along with C PVC project.

The company proposes to take up SWR project after completing C PVC project, which is targeted to be completed by 2004.

In addition to above diversification, company plans to consolidate and expand its base in the current range of products.

Advantages of Ashirvad Column Pipes for Submersible Pumps

Long life since no corrosion
Easy installation being lightweight
Lower power consumption due to………….
No Electrolytic Deposition being non metallic.

The products are manufactured in the state of art latest machines including CNC machines under the strict guidance, vigilance and supervision of a Technical Director himself lead by a highly skilled-trained technical team.

Milestones of Ashirvad

Ashirvad is proud to announce that by now it has successfully installed and commissioned 3,00,000 installations across the length and breadth of the country as on date.

The Distribution Channel

"Ashirvad" has Distributors, Dealers, and Sub dealers network across the length and breadth of the country and is capable of supplying its products through this network immediately to the end users.

It is pertinent to point out that this entire network is well versed in their trade and has gained the confidence of the end user to such an extent that has helped not only 'Ashirvad" earn a brand name in the country, but also carve out a niche for themselves in their trade. With the experience and confidence gained on all India market ,"ASHIRVAD", is already geared up for entering in to export market.

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	Rs.44.30
UK Pound	1	Rs.85.83
Euro	1	Rs.57.92

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
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
TOTAL		54

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 and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

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