MIRA INFORM REPORT

Report Date :

18.06.2011

IDENTIFICATION DETAILS

Name :	PRANAV CONSTRUCTION SYSTEMS PRIVATE LIMITED
Registered Office :	Plot No. C 10 TTC Industrial Estate, MIDC Pawne, Navi Mumbai 400705, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	10.09.2003
Com. Reg. No.:	142133
Capital Investment / Paid-up Capital :	Rs.558.100 millions
CIN No.: [Company Identification No.]	U29246MH2003PTC142133
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Engineering Goods used in Infrastructural Projects
No. of Employees :	200 Approximately

RATING & COMMENTS

MIRA’s Rating :

B (34)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 2664896
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is a well established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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.

INFORMATION PARTED BY (General Details)

Name :	Mr. Ravi Padave
Designation :	Senior Manager in Accounts
Contact No.:	91-9323252474
Date :	17.06.2011

LOCATIONS

Registered Office :	Plot No. C 10 TTC Industrial Estate, MIDC Pawne, Navi Mumbai 400705, Maharashtra, India
Tel. No.:	91-22-27632580
Mobile No.:	91-9323252474 (Mr. Ravi)
Fax No.:	91-22-27632762
E-Mail :	sahanipranav@satyam.net.in rpadave@pranavinfra.com
Website :	www.pranavinfra.com
Area :	8098 sq.ft
Location :	Leased
Factory :	F 8, Kharvi MIDC, Substation, Badlapur Industrial Area, Karjat Road, Badlapur, Maharashtra, India
Branches :	Hyderabad 601 A Topaz Building, Punja Gutta, Somaji Guda, Hyderabad, Andhra Pradesh, India Kolkata 3 Bompas Road, Near Southern Avenue Club, Kolkata, West Bengal, India

DIRECTORS

AS ON 27.12.2010

Name :	Mr. Sushil Sahani
Designation :	Director
Date of Appointment :	10.09.2003
Name :	Mrs. Sunanda Sahani
Designation :	Director
Date of Appointment :	10.09.2003
Name :	Mr. Dimitrius John Dmello
Designation :	Director
Date of Birth/Age :	09.02.1964
Date of Appointment :	28.01.2009
Name :	Mr. Sandeep Daga
Designation :	Director
Date of Appointment :	13.02.2009
Name :	Mr. Saurin M Patel
Designation :	Director
Date of Appointment :	13.02.2009

KEY EXECUTIVES

Name :	Mr. Ravi Padave
Designation :	Senior Manager in Accounts

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.12.2010

Names of Equity Shareholders	No. of Shares
Mrs. Sunanda Sahani	1225500
Mr. Sushil Sahani	4584500
Total	5810000

Names of Preference Shareholders	No. of Shares
Nine Rivers Capital Limited	50000000
Total	50000000

AS ON 27.12.2010

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Engineering Goods used in Infrastructural Projects
Exports :
Products :	Engineering Goods
Countries :	Dubai
Imports :
Products :	Raw Material
Countries :	Austria, Dubai, Germany

GENERAL INFORMATION

No. of Employees :

200 Approximately

Bankers :

· Axis Bank, Vashi Branch,

· Bank of India, MIDC Branch, Mezzanine Floor, BOI Building, 70-80 M G Road, Mumbai 400001, Maharashtra, India

· Kotak Mahindra Bank, 36-38 A, Nariman Bhavan, 227D, Nariman Point, Mumbai 400021, Maharashtra, India

Facilities :

Rs. In Millions

SECURED LOAN	31.03.2010	31.03.2009
Term Loans from Banks (secured by the charge on Badlapur MIDC Factory Building. Due within one year RS. 46.443 millions)	156.624	157.719
Bank Overdraft for Working Capital Secured against Current Assets	89.293	95.908
Loan Against Flat at Vashi (Due within one year Rs. 0.073 million)	7.108	7.177
Vehicle Loans from Banks (Due within one year Rs. 0.797 million)	1.523	2.292
TOTAL	254.548	263.096
UNSECURED LOAN
Loan from Director	7.613	0.000
TOTAL	7.613	0.000

Banking Relations :	--
Auditors :
Name :	S R Batliboi and Company Chartered Accountant
Address :	Jalan Mill Compound, 95, Ganpatrao Kadam Marg, Lower Parel, Mumbai 400013, Maharashtra, India
Name :	Thar and Associates Chartered Accountant
Address :	10 Ambe Ashish, 32 Dariyasthan Street, Masjid Bunder, Mumbai 400003, Maharashtra, India
Subsidiaries :	· Hope Gases Limited CIN No.: U23200MH1981PLC190838 · Pranav Construction Equipments Private Limited CIN No.: U99999MH1994PTC078399 · Pranav Formwork and Engineering

CAPITAL STRUCTURE

AS ON 27.12.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs. 10 each	Rs.75.000 millions
50000000	Preference Shares	Rs. 10 each	Rs.500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5810000	Equity Shares (of the above 4150000 equity shares of Rs. 10 each are allotted as fully paid up Bonus Shares)	Rs. 10 each	Rs. 58.100 millions
50000000	Convertible Preference Shares (each convertible preference shares shall be convertible into equity shares as per the Article 19 of the share subscription agreement entered into by the company with Nine Rivers Capital Limited)	Rs. 10 each	Rs.500.000 millions
			Rs.558.100 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		558.100	308.100	16.600
2] Share Application Money		0.000	2.194	0.000
3] Reserves & Surplus		108.124	102.401	139.157
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		666.224	412.695	155.757
LOAN FUNDS
1] Secured Loans		254.548	263.096	208.415
2] Unsecured Loans		7.613	0.000	0.000
TOTAL BORROWING		262.161	263.096	208.415
DEFERRED TAX LIABILITIES		16.365	4.255	3.239
TOTAL		944.750	680.046	367.411
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		679.363	175.238	151.146
Capital work-in-progress		1.885	9.129	19.078
INVESTMENT		16.255	74.863	55.202
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	162.218	46.420	32.427
	Sundry Debtors	303.208	198.598	160.255
	Cash & Bank Balances	14.911	53.672	16.036
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	38.725	266.733	87.714
Total Current Assets		519.062	565.423	296.432
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	149.390	104.728
	Other Current Liabilities	281.837	11.322	14.319
	Provisions	3.079	1.937	36.845
Total Current Liabilities		284.916	162.649	155.892
Net Current Assets		234.146	402.774	140.540
MISCELLANEOUS EXPENSES		13.101	18.042	1.445
TOTAL		944.750	680.046	367.411

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008
	SALES
		Sales and Other Income	524.129	473.465
		TOTAL (A)	524.129	473.465
Less	EXPENSES
		Selling and Distribution Expenses
		Office Expenses	500.287	409.132
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	500.287	409.132
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		23.842	64.333
Less	FINANCIAL EXPENSES (D)		NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		23.842	64.333
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.504	4.988
	PROFIT BEFORE TAX (E-F) (G)		17.338	59.345
Less	TAX (H)		12.546	23.247
	PROFIT AFTER TAX (G-H) (I)		4.792	36.098
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA
Less	APPROPRIATIONS
		Transfer to General Reserve	3.468	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	289.685	109.652
		Commission Earnings	0.496	0.969
	TOTAL EARNINGS		290.181	110.621
	IMPORTS
		Stores & Spares	15.761	18.742
		Capital Goods	13.091	2.794
	TOTAL IMPORTS		28.852	21.536
	Earnings Per Share (Rs.)		2.98	10.21

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	NA	0.91	7.62
Return on Total Assets (PBT/Total Assets}	(%)	NA	2.34	13.25
Return on Investment (ROI) (PBT/Networth)		NA	0.04	0.38
Debt Equity Ratio (Total Liability/Networth)		0.84	1.04	2.35
Current Ratio (Current Asset/Current Liability)		1.82	3.47	1.90

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

Rs. In Millions

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors	0.000	149.390	104.728

FIXED ASSETS:

· Leasehold Improvement

· Land and Building

· Furniture and Fixtures

· Plant and Machinery

· Office Equipment

FORM 8

Corporate identity number of the company

U29246MH2003PTC142133

Name of the company

PRANAV CONSTRUCTION SYSTEMS PRIVATE LIMITED

Address of the registered office or of the principal place of business in India of the company

Plot No. C 10 TTC Industrial Estate, MIDC Pawne, Navi Mumbai 400705, Maharashtra, India

This form is for

Creation of charge

Type of charge

Book debts

Movable property (not being pledge)

Floating charge

Particular of charge holder

Bank of India, MIDC Branch, Mezzanine Floor, BOI Building, 70-80 M G Road, Mumbai 400001, Maharashtra, India

Email: vlaxman@vsnl.com

Nature of instrument creating charge

a) Joint Deed of Hypothecation.

b) Working Capital Consortium Agreement.

c) Inter-se Agreement.

(Collectively constitute a single charge for Rs.270.000 millions)

Date of instrument Creating the charge

06.01.2011

Amount secured by the charge

Rs. 270.000 millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of interest

Interest as may be stipulated by the Member Banks from time to time.

Terms of repayment

On Demand

Margin

As may be stipulated by the Member Banks from time to time.

Extent and operation of the charge

The charge created by the borrower to and in favour of the following banks jointly and to each of them severally shall be a continuing security for the balance from time to time due to the banks and each of them under the credit facilities granted by the banks to the borrower, together with interest, additional interest, costs, charges, expenses and other monies due and payable under the aforesaid facilities by the borrower to the said banks.

Rs. In Millions

Sr. No.	BOI	AXIS BANK	TOTAL
Cash Credit/WCDL	90.000	70.000	160.000
EPC/PCFC PCFC/FBP DP/DA 180 days/FBD	50.000	--	50.000
Max.	90.000	70.000	160.000
Total	90.000	70.000	160.000
L/C-I/F, DP/DA 180 days/ Buyers Credit	110.000	--	110.000
Bank Guarantee	110.000	--	110.000
Max	110.000	--	110.000
Aggregate	200.000	70.000	270.000

Other

The charge created herein shall rank pari passu inter se the Banks for all purposes and to all intents without any preference of one over the other or others

Short particulars of the property charged (Including location of the property)

i) First Charge On :

The whole of the Current Assets of the Borrower namely, Stocks of Raw Materials, Stocks in Process, Semi-Finished and Finished Goods, stores and spares not relating to Plant and Machinery (Consumable Stores and Spares), Bills Receivable and Book Debts and all other movables, both present and future whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about of the Borrower's factories, premises and godowns situate anywhere in India or wherever else the same may be or be held by any party to the order or disposition of the Borrower or in the course of transit or on high seas or on order or delivery, howsoever and wheresoever in the possession of the Borrower and either by way of substitution or addition.

ii) Second Charge On :

The whole of the Movable plant and machinery belonging to or in the possession or under the control of the Borrower wherever lying stored and kept and whether in possession of the Borrower or of the Bank or of any third party whether in India or elsewhere throughout the world (including capital work-in-progress), machinery spares, tools and accessories, both present and future of the Borrower, whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about all the Borrower’s factories, premises and godowns or wherever else the same may be or be held by any party to the order or disposition of the Borrower or in the course of transit or on high seas or on order or delivery, howsoever and wheresoever in the possession of the Borrower and either by way of substitution or addition, excluding specified plant and machinery exclusively charge to term lenders.

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.44.93
UK Pound	1	Rs.72.42
Euro	1	Rs.63.62

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		34

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.