MIRA INFORM REPORT

Report Date :

03.05.2011

IDENTIFICATION DETAILS

Name :	DINESH IRRIGATION PRIVATE LIMITED
Registered Office :	86, B-II, Jhotwara Industrial Area, Jaipur – 302012, Rajasthan
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	26.04.2000
Com. Reg. No.:	17-016361
CIN No.: [Company Identification No.]	U29212RJ2000PTC016361
TAN No.: [Tax Deduction & Collection Account No.]	JRD02318B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of HTP, PVC Irrigation Equipments.

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 80000
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. Sandeep
Designation :	Accounts
Contact No.:	91-141-2347180
Date :	02.05.2011

LOCATIONS

Registered Office/ Factory :	86, B-II, Jhotwara Industrial Area, Jaipur – 302012, Rajasthan, India
Tel. No.:	91-141-2347180/ 2347181
Fax No.:	91-141-2347181
E-Mail :	dineshirrigation@gmail.com info@dineshirrigation.com dineshag@sancharnet.in
Website :	http://www.dineshirrigation.com
Area :	5500 Sq. ft
Location :	Owned
Branch Office :	Samalkar Road, Bhavani, Haryana, India

DIRECTORS

(AS ON 27.09.2010)

Name :	Mr. Yogendra Bhati
Designation :	Director
Address :	G-148, Uday Path, Shyam Nagar, Extension Jaipur, Rajasthan, India
Date of Birth/Age :	21.06.1964
Qualification :	Graduate
Date of Appointment :	26.04.2000
Name :	Mrs. Indira Bhati
Designation :	Director
Address :	G-148, Uday Path, Shyam Nagar, Extension Jaipur, Rajasthan, India
Date of Birth/Age :	06.11.1944
Qualification :	Graduate
Date of Appointment :	15.11.2001

KEY EXECUTIVES

Name :	Mr. Sandeep
Designation :	Accounts

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 27.09.2010)

Names of Shareholders	No. of Shares
Yogendra Bhati	316980
Indira Bhati	250020
Deepak Bhati	132000
Shiv Singh	130000
Yogendra Bhati Karta of Yogendra Bhati HUF	166000
Kishore H. Dadlani	30000
Dimple Bhati	20000
Divya Bhati	5000
TOTAL	1050000

(AS ON 30.09.2010)

Category	Percentage
Directors or relatives of directors	84.76
Other top fifty shareholders	15.24
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of HTP, PVC Irrigation Equipment
Products :	· HDPE Pipe and Coil UPVC Pipe with Elestomeric Ring Fit Pipe HDPE Sprinkler Irrigation System Drip/mini Sprinkler Irrigation System PVC Pipe Elestomeric Seal Ring Fit Pipe.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

50 (Approximately)

Bankers :

· State Bank of India

Commercial Branch, Church Road, Jaipur, Rajasthan, India

Axis Bank Limited

O-15, Green House, Ashok Marg, C-Scheme, Jaipur - 302001, Rajasthan, India

· ICICI Bank

HDFC Bank

Kotak Mahindra Bank

ABN Amro Bank

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
A] State Bank Of India Term Loan	14.639	17.466
B] Working Capital Limit From
State Bank of India (Cash Credit)	31.160	16.259
State Bank of India (Debtor Loan)	4.041	4.046
C] Others
Vehicle Loan ( ICICI Bank )	0.000	0.248
Vehicle Loan ( HDFC Bank ) – Swift	0.365	0.518
Vehicle Loan ( HDFC Bank ) – Skoda	0.716	0.000
Vehicle Loan (Kotak Mahindra) H. Accord	1.380	0.000
Mortage Loan – 1^st from ICICI Bank	11.151	11.165
Mortgage Loan – 2^nd from ICICI Bank	1.914	1.932
Total	65.366	51.634

Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From Members and Relatives	1.432	0.099
Deferred Tax Against RST/CST	2.392	2.391
ABN Amro Bank	0.000	0.000
Total	3.824	2.490

Banking Relations :	--
Auditors :
Name :	Patani Arun and Associate Chartered Accountant
Address :	H-406 B Azad Marg, Behind Janta Girls School, C-Scheme Jaipur - 302012, Rajasthan, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1050000	Equity Shares	Rs. 10/- each	Rs.10.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1050000	Equity Shares	Rs. 10/- each	Rs.10.500 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		10.500	9.000	3.300
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		9.930	7.900	6.496
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		20.430	16.900	9.796
LOAN FUNDS
1] Secured Loans		65.366	51.634	22.576
2] Unsecured Loans		3.824	2.490	5.688
TOTAL BORROWING		69.190	54.124	28.264
DEFERRED TAX LIABILITIES		1.936	1.940	0.567
TOTAL		91.556	72.964	38.627
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		32.602	30.324	12.843
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.004	0.004	0.003
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	17.362	12.626	8.473
	Sundry Debtors	55.096	45.302	20.012
	Cash & Bank Balances	4.308	2.315	0.649
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	8.542	7.793	6.317
Total Current Assets		85.308	68.036	35.451
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	21.492	19.974	7.863
	Other Current Liabilities	4.188	4.553	1.468
	Provisions	0.678	0.873	0.339
Total Current Liabilities		26.358	25.400	9.670
Net Current Assets		58.950	42.636	25.781
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		91.556	72.964	38.627

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	269.046	183.603	108.296
		Other Income	1.025	1.987	0.440
		TOTAL (A)	270.071	185.590	108.736
Less	EXPENSES
		Increase/(Decrease) in Finished Goods	(3.666)	(3.702)	(2.802)
		Raw Material Consumed	212.651	147.490	92.128
		Manufacturing Expenses	17.391	10.823	7.203
		Employee Remuneration and other Benefits	5.949	3.261	0.000
		Administrative Expenses	4.494	3.235	4.598
		Selling Expenses	19.384	12.631	2.970
		TOTAL (B)	256.203	173.738	104.097
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		13.868	11.852	4.639
Less	FINANCIAL EXPENSES (D)		7.199	6.077	1.913
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6.669	5.775	2.726
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.503	2.897	1.202
	PROFIT BEFORE TAX (E-F) (G)		2.166	2.878	1.524
Less	TAX (H)		0.219	1.771	0.430
	PROFIT AFTER TAX (G-H) (I)		1.947	1.107	1.094
	MAT Credit Entitlement / (Set Offl)		0.083	0.296	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		7.900	6.497	5.403
	BALANCE CARRIED TO THE B/S		9.930	7.900	6.497
	Earnings Per Share (Rs.)		1.85	--	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.72	0.60	1.01
Net Profit Margin (PBT/Sales)	(%)	0.81	1.57	1.41
Return on Total Assets (PBT/Total Assets}	(%)	1.84	2.93	3.16
Return on Investment (ROI) (PBT/Networth)		0.11	0.17	0.16
Debt Equity Ratio (Total Liability/Networth)		4.68	4.71	3.87
Current Ratio (Current Asset/Current Liability)		3.24	2.68	3.67

LOCAL AGENCY FURTHER INFORMATION

NOTE:

The Registered Office of the company has been shifted from Padam Bhawan, Station Road, Jaipur to present w.e.f - 01.12.2007.

FORM 8:

This form is for	Creation of charge
Corporate identity number of the company	U29212RJ2000PTC016361
Name of the company	Dinesh Irrigation Private Limited
Address of the registered office or of the principal place of business in India of the company	86 B-II, Jhotwara Industrial Area, Jaipur – 302012, Rajasthan, India
Type of charge	Immovable property, Any interest in immovable property Book debts Movable Property (not being Pledge)
Particular of charge holder	Axis Bank Limited O-15, Green House, Ashok Marg, C-Scheme, Jaipur – 302001, Rajasthan, India brijesh.sharma@axisbank.com
Nature of description of the instrument creating or modifying the charge	Sanction Letter dated 09.03.2011 Term Loan Agreement dated 09.03.2011 Composite Hypothecation Deed dated 09.03.2011
Date of instrument Creating the charge	09.03.2011
Amount secured by the charge	Rs.15.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Base Rate+3% i.e. 11.75% p.a. payable monthly, subject to change from time to time. Terms of Repayment First 27 monthly installments of Rs.0.150 Million starting from July 2011. Last 30 monthly installments of Rs.0.365 Million stating from Oct. 2013. Monthly interest to be serviced as and when due. Margin 25% i.e. Rs.5.000 Millions Extent and Operation of the charge Term Loan is taken for purchase of P&M. The Charge will operate as first charge in favour of Axis Bank Limited. Others Other T and C as per Instruments creating the Charge.
Short particulars of the property charged	Exclusive First Hypothecation of the entire moveable fixed assets of the Company both present and future other than Vehicles. Extension of First Charge by way of Hypothecation of borrower's stock of RM, WIP, FGs lying in its factory, godowns, elsewhere and including goods in transit, consumable stores and Spares, Book Debts and other Current Assets, both present and future. Equitable Mortgage of Factory L and B situated at 86-B (Area-2112 Sq. Mtrs.) and 86B-II (Area-2637 Sq. Mtrs.) Jhotwara Industrial Area, Jaipur.

FIXED ASSETS:

• Land
• Factory Building
• Plant and Machinery
• Miscellaneous Fixed Assets
• Furniture and Fixture
• Computer
• Vehicle
• Bycycle

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.73.90
Euro	1	Rs.65.57

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	NO
--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.