MIRA INFORM REPORT

Report Date :

09.06.2011

IDENTIFICATION DETAILS

Name :	RISHI POLY MACH PRIVATE LIMITED
Registered Office :	5/3, 1^st Floor, Arekempanahalli, 13^th Cross, Wilson Garden, Bangalore – 560027, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	05.04.1988
Com. Reg. No.:	08-009010
Capital Investment / Paid-up Capital :	Rs.7.415 Millions
CIN No.: [Company Identification No.]	U85110KA1988PTC009010
TAN No.: [Tax Deduction & Collection Account No.]	BLRR01108C BLRR00697E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of all types of Plastic Pipes and Fittings
No. of Employees :	37 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 66000
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 for normal 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. Mani Kumar
Designation :	Accounts Manager
Contact No.:	91-9448019376
Date :	08.06.2011

LOCATIONS

Registered Office :	5/3, 1^st Floor, Arekempanahalli, 13^th Cross, Wilson Garden, Bangalore – 560027, Karnataka, India
Tel. No.:	91-80-41206569 / 41207219 / 26573167
Mobile No.:	91-9448019376 (Mr. Mani Kumar)
Fax No.:	91-80-26573167
E-Mail :	Rishi_poly@airtelmail.com trskumar2@dataone.in
Area :	1640 sq. ft. (Owned)
Factory :	16/A, Belagola Industrial Estate, Metgalli, Mysore-570016, Karnataka, India

DIRECTORS

As on 30.09.2010

Name :	Mr. Jaichand Lal Daga
Designation :	Director
Address :	863/E, 3^rd Block, 12^th Main, 7^th Cross, Koramangala, Bangalore – 560034, Karnataka, India
Date of Birth/Age :	10.03.1952
Date of Appointment :	08.10.2004
Name :	Mr. Dhanraj Daga
Designation :	Director
Address :	755, 13^th Cross, 7^th Block Jayanagar, Bangalore – 560011, Karnataka, India
Date of Birth/Age :	20.10.1943
Date of Appointment :	13.03.2004
Name :	Mr. Mukesh Daga
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Mani Kumar
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Prakash Chand Nahata	500
Jaichand Lal Daga (HUF)	38200
Jaichand Lal Daga	38300
Dhanraj Daga	32600
Anvi Daga	100
S. B. Rai (Sartej Bahadur Rai)	50
Mihika Daga	50
Lalith Kumar	50
Narendra Kumar Mehta	50
Dhanashree Securities and Investments Company Limited, India	119000
Deepak Chand Binaikia	5000
Narpat Begwani	100
Pushpa Devi Daga	70000
Kamal Chand Daga	50000
Vikasmal Lodha	65500
Chanda Devi Daga	222000
Ayush Daga	100000
Total	741500

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	16.05
Directors or relatives of directors	83.25
Other top fifty shareholders	0.70
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of all types of Plastic Pipes and Fittings

Products :

Product Description	Item Code
HDPE Pipe	3917
Sprinkler	8424

• ISI HDPE Pipes
• MDPE Pipes and Fittings
• PLB HDPE Duct for Fiber Optic and Other Cables
• PPRC Pipes and Fittings
• PVC Pipes

Brand Names :

“PRIME” and “RISHI “

Imports :

Products :

Raw Material

Countries :

Korea

Terms :

Selling :

L/C / Cash / Credit

Purchasing :

L/C / Cash / Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Actual Production
HDPE Pipe	Meter	930849
Sprinklers	Nos.	1609.00

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

No. of Employees :

37 (Approximately)

Bankers :

• State Bank of Hyderabad, 11/90, J. C. Road Branch, Bangalore – 560002, Karnataka, India
• ICICI Bank

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
State Bank of Hyderabad CC A/C	7.088	8.768
Vijaya Bank Car Loan A/C	0.054	0.179
Total	7.142	8.947

Note:

State Bank of Hyderabad CC secured against hypothecation of stock raw material, finished goods and equitable mortgage of the property situated at Belgola Industrial Estate, Mysore.

Banking Relations :	--
Auditors :
Name :	Virupaxi. B. Vantagitti Chartered Accountants
Address :	No. 625/B, Dr. Rajkumar Road, ‘D’ Block, Rajajinagar 2^nd Stage, Bangalore – 560010, Karnataka, India
Tel. No.:	91-80-41712487
Mobile No.:	91-9886046329
E-Mail :	virupaxi2005@rediffmail.com
Associates/Subsidiaries :	Prime Tele Excursion

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.10/-each	Rs.7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
741500	Equity Shares	Rs.10/-each	Rs.7.415 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		7.415	7.415	7.415
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		9.098	7.853	7.007
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		16.513	15.268	14.422
LOAN FUNDS
1] Secured Loans		7.142	8.947	9.146
2] Unsecured Loans		0.989	0.910	0.793
TOTAL BORROWING		8.131	9.857	9.939
DEFERRED TAX LIABILITIES		0.358	0.421	0.497
TOTAL		25.002	25.546	24.858
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.223	3.675	4.220
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	10.361	15.405	25.206
	Sundry Debtors	34.275	29.347	18.853
	Cash & Bank Balances	4.858	2.348	5.680
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	8.212	6.473	7.483
Total Current Assets		57.706	53.573	57.222
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	31.504	27.270	35.226
	Other Current Liabilities	2.289	2.822	0.286
	Provisions	2.134	1.610	1.072
Total Current Liabilities		35.927	31.702	36.584
Net Current Assets		21.779	21.871	20.638
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		25.002	25.546	24.858

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	119.088	96.978	120.226
		Other Income	0.257	0.751	0.170
		TOTAL	119.345	97.729	120.396
Less	EXPENSES
		Office Expenses
		Administrative Expenses	116.921	95.878	119.002
		Advertising Expenses
		TOTAL	116.921	95.878	119.002
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		2.424	1.851	1.394
Less/ Add	DEPRECIATION/ AMORTISATION		0.485	0.569	0.630
	PROFIT BEFORE TAX		1.939	1.282	0.764
Less	TAX		0.695	0.436	0.266
	PROFIT AFTER TAX		1.244	0.846	0.498
	IMPORTS
		Raw Materials and Components	11.284	NA	NA
	Earnings Per Share (Rs.)		1.68	1.14	0.67

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.04	0.87	0.41
Net Profit Margin (PBT/Sales)	(%)	1.63	1.32	0.64
Return on Total Assets (PBT/Total Assets}	(%)	3.18	2.23	1.24
Return on Investment (ROI) (PBT/Networth)		0.12	0.08	0.05
Debt Equity Ratio (Total Liability/Networth)		2.67	2.72	3.23
Current Ratio (Current Asset/Current Liability)		1.61	1.69	1.56

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	80002790
Corporate identity number of the company	U85110KA1988PTC009010
Name of the company	RISHI POLY MACH PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	5/3, 1^st Floor, Arekempanahalli, 13^th Cross, Wilson Garden, Bangalore – 560027, Karnataka, India
Type of charge	Book Debts Movable Property (not being pledge) Immovable Property
Particular of charge holder	State Bank of Hyderabad, 11/90, J. C. Road Branch, Bangalore – 560002, Karnataka, India
Email	trskumar2@dataone.in
Nature of description of the instrument creating or modifying the charge	A. Agreement of Loan For Overall Limit. B. Letter Regarding The Guarantee of Indivial Limit Within Overall Limit. C. Agreement of Hypothecation of Goods And Assets. D. Deed of Guarantee For Overall Limit. E. Document Relating To Equitable Mortgage.
Date of instrument Creating the charge	11.11.2009
Amount secured by the charge	Rs.35.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 12.5% Per Annum Terms of Repayment Repayable on Demand Margin A. Raw Materials 25% B. Stock-In-Trade 25% C. Finished Goods 25% D. Book Debts/Receivables 40% E. Letter of Credit 10% F. Land And Buildings/ Plant and Machinery 10% Extent and Operation of the charge As security for payment and discharge by the Borrower to the bank of the said sum of Rs. 35.000 millons and interest and costs charges expenses and other monies due and payable by the Borrower to the Bank under or in respect of the aforesaid credit facilities or any of them the Borrower shall, as may be required, create in favour of the Bank.
Short particulars of the property charged	I) It is hereby agreed and declared that all present and future goods book debts machineries and all other movable assets of the Borrower wheresoever situated. II) Equitable mortgage of Factory Land and Building at 16/A, Belagola Industrial Estate, Mysore under Sy No. 26
Date of latest modification prior to the present modification	15.11.2007
Particulars of the present modification	The total working capital limit enhanced to Rs. 35.000 millions. The Working Capital limits are CC 10.000 millions LC – 20.000 millions BG 5.000 millions. The existing securities are extended to enhanced limits.

Trade References:

• Heveli Lignite Corporation
• Singarani Colleries
• Haiti Gold Mines Limited

Fixed Assets

• Vehicles
• Office Machinery
• Land and Building
• Computers
• Furniture and Fixtures

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.44.61
UK Pound	1	Rs.73.27
Euro	1	Rs.65.47

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	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		44

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.