MIRA INFORM REPORT

Report Date :

14.01.2011

IDENTIFICATION DETAILS

Name :	BANSAL POLES PRIVATE LIMITED
Registered Office :	Transport Complex, Main Rohtak Road, New Delhi-110041
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	28.03.1995
Com. Reg. No.:	55-066872
CIN No.: [Company Identification No.]	U74899DL1995PTC066872
TAN No.: [Tax Deduction & Collection Account No.]	DELB06216A
PAN No.: [Permanent Account No.]	AABCB7578A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Pipes and Tubes.

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 350000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Pramod Gupta
Designation :	Director
Contact No.:	91-9811070181
Date :	13.01.2011

LOCATIONS

Registered Office :	Transport Complex, Main Rohtak Road, New Delhi-110041, India
Tel. No.:	91-11-65165772
Fax No.:	91-11-28351185
Mobile No.:	91-9312214778 (Mr. Pramod Gupta) / 91-9811070181 (Mr. Kailash Gupta)
E-Mail :	bansalpoles@yahoo.com
Area:	500 mtrs. (Owned)
Factory:	5 KM Stone, Bahadurgarh Badli Road, Village Soldha (Nayagaon), District Jhajjar, Bahadurgarh-124507, Haryana, India
Tel. No.:	91-1276-250727
Fax No.:	91-1276-250728
Area:	4 acres (Owned)

DIRECTORS

As on 29.09.2009

Name :	Mr. Pramod Gupta
Designation :	Director
Address :	7/45, Gali No. 2, Model Town, Bahadurgarh, Haryana-124507, India
Date of Birth/Age :	25.12.1970
Date of Appointment :	21.03.2002
Din No.:	00148784
Name :	Mr. Kailash Gupta
Designation :	Director
Address :	7/45, Gali No. 2, Model Town, Bahadurgarh, Haryana-124507, India
Date of Birth/Age :	01.08.1978
Date of Appointment :	21.03.2002
Din No.:	00148837

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2009

Names of Shareholders	No. of Shares
Ashok Goel	84500
Ashok Kumar	99000
Baljeet Singh	97500
Jagdev Singh	101500
Jai Bhagwan Goel	103500
Kailash Gupta	169700
Parveen Gupta	105000
Pratap Singh	107750
Satpal Singh	102000
Reena Gupta	198100

Equity Share breakeup

(AS ON 29.09.2009)

Category	Percentage
Bodies corporate	6.00
Directors or relatives of directors	48.00
Other top fifty shareholders	46.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Pipes and Tubes.

Products :

v MS Pipes

v MS ERW Black Steel Pipes

v Galvanized Steel Pipes

v Pipes and Fittings

v CR Pipes

v GI Pipes

v GP Pipes

Item Code No. (ITC Code)	Product Description
7306-90	MFG of Steel Pipes and Tubes

Export:

Products :

Pipes and Tubes

Countries :

• Malaysia

Imports :

Products :

Raw Materials

Countries :

• Korea

Terms :

Selling :

L/C / Cash / Credit

Purchasing :

L/C / Cash / Credit

PRODUCTION STATUS (As on 31.03.2009)

Particulars	Unit	Installed Capacity	Actual Production
M.S./ G.P. Pipes	MT	24000.000	12884.424

GENERAL INFORMATION

Customers :

Wholesalers, End Users, OEM’s and Corporate

No. of Employees :

200 (In Office 40) (In Factory 160) (Approximately)

Bankers :

Karnataka Bank Limited, Shalimar Bagh, New Delhi-110088, India

Facilities :

Secured Loans :	As on 31.03.2009 Rs. in Millions
TERM LOAN
From Karnataka Bank Limited (Secured against Hypothecation of all present and future Plant and Machinery, Factory Shed Building and personal guarantee of the Directors.)	2.897
Working Capital Facilities	0.000
From Karnataka Bank Limited (Secured against Hypothecation of all present and future goods, book debts and other movables assets and personal guarantee of all Director)	164.870
Total	167.767

Unsecured Loans :	As on 31.03.2009 Rs. in Millions
From Others	3.300
Total	3.300

Banking Relations :	--
Auditors :
Name :	Amit Sudarshan and Associates Chartered Accountants

CAPITAL STRUCTURE

As on 29.09.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs.40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3825500	Equity Shares	Rs.10/- each	Rs.38.255 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		38.255	36.770	36.250
2] Share Application Money		2.500	0.000	1.800
3] Reserves & Surplus		46.851	21.800	13.545
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		87.606	58.570	51.595
LOAN FUNDS
1] Secured Loans		167.766	151.518	123.605
2] Unsecured Loans		3.300	3.300	3.300
TOTAL BORROWING		171.066	154.818	126.905
DEFERRED TAX LIABILITIES		5.915	5.350	4.515
TOTAL		264.587	218.738	183.015
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		52.851	44.427	37.758
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	143.933	140.376	57.267
	Sundry Debtors	125.762	100.442	86.553
	Cash & Bank Balances	0.719	4.876	0.957
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	37.691	30.992	17.769
Total Current Assets		308.105	276.686	162.546
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	96.395	102.437	17.389
	Provisions	0.000	0.000	0.000
Total Current Liabilities		96.395	102.437	17.389
Net Current Assets		211.710	174.249	145.157
MISCELLANEOUS EXPENSES		0.026	0.062	0.100
TOTAL		264.587	218.738	183.015

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
Sales Turnover		1251.803	1169.559	1021.904
Other Income		0.200	0.030	0.205
Total Income		1252.003	1169.589	1022.109
Profit/(Loss) Before Tax		10.225	11.997	10.204
Provision for Taxation		3.219	3.925	2.638
Profit/(Loss) After Tax		7.006	8.072	7.566
Expenditures :
	Depreciation & Amortization	3.407	2.609	2.226
	Other Expenditure	1275.511	1154.983	1009.679
Total Expenditure		1278.918	1157.592	1011.905
Earnings Per Share – Basic and Diluted (Rs.)		1.93	NA	NA

Expected Sales (2010-2011): Rs.1600.000 Millions

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	0.56	0.69	0.74
Net Profit Margin (PBT/Sales)	(%)	0.82	1.03	1.00
Return on Total Assets (PBT/Total Assets}	(%)	2.83	3.74	5.09
Return on Investment (ROI) (PBT/Networth)		0.12	0.20	0.20
Debt Equity Ratio (Total Liability/Networth)		3.05	4.39	2.80
Current Ratio (Current Asset/Current Liability)		3.20	2.70	9.35

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS AND PROSPECTS:

During the year company has achieved the turnover of RS. 1251.803 Millions in comparison to previous year turnover of Rs. 1169.559 Millions. The profitability of the company has decreased as compared to last year due to increase in financial charges (Current year Profit Before Tax Rs. 10.225 Millions, Previous year Profit Before Tax Rs. 11.997 Millions). The Directors are optimistic about the Future.

Bankers Charges Report as per Registry

Name of the company	BANSAL POLES PRIVATE LIMITED
Presented By	Karnataka Bank Limited, Shalimar Bagh, New Delhi-110088, India and Mr. Promod Bansal, Director M/s. Bansal Poles Private Limited
1) Date and description of instrument creating the change	Agreement of Hypothecation dated 12.04.2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 9.900 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 Authometic Small Tules Machine ½ to 4 4/100 Kw Hf Welder complete Rall sets.
4) Gist of the terms and conditions and extent and operation of the charge.	Margin 25% Rol PLR – 1% (Min 11%) Repayment of 60 monthly installment Rest as per agreement
5) Name and Address and description of the person entitled to the charge.	Karnataka Bank Limited, Shalimar Bagh, Delhi.

This form is for	Creation of charge
Corporate identity number of the company	U74899DL1995PTC066872
Name of the company	BANSAL POLES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Address : Transport Complex, Main Rohtak Road, New Delhi-110041, India Email : bansalpoles@yahoo.com
Type of charge	Book Debts Movable Property
Particular of charge holder	KARNATAKA BANK LIMITED Address : Shalimar Bagh, New Delhi-110088, India Email : del.shalimar@ktkbank.com
Nature of description of the instrument creating or modifying the charge	Hypothecation Agreement dated 03/09/2009.
Date of instrument Creating the charge	03.09.2009
Amount secured by the charge	Rs. 42.500 Millions.
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest : 0.50% more than bplr (presently at 13.75% p.a.) as revised from time to time with a minimum of 14.25% per annum compounded monthly. Terms of Repayment : As per OD rules. Margin : As per OD rules. Extent and Operation of the charge : First charge in favour of Karnataka Bank, Shalimar Bagh on Stocks, Plant and Machineries and Book-debts.
Short particulars of the property charged	i) Hypothecation of Plant and Machineries. ii) Hypothecation of Stock of Raw Material, Semi Finished Goods, Finished Goods and Stock in process. iii) Hypothecation of all book-debts raised out of trade transactions.

FIXED ASSETS:

v Land

v Factory Building and Bound-wall

v Factory Shed

v Plant and Machinery

v Power Generating Set

v Tata Magic

v Vehicles

v Weighting Scale

v Electrical Appliances and Fill

v Car

v Fax Machine

v Computers

v Office Equipment

v Office Building

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.45.13
UK Pound	1	Rs.71.05
Euro	1	Rs.59.10

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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 EXPLANATIONS

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	Capability to overcome financial difficulties seems comparatively below average.	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
-	NB	New Business	-

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.