MIRA INFORM REPORT

Report Date :

05.11.2011

IDENTIFICATION DETAILS

Name :	B L KASHYAP AND SONS LIMITED
Registered Office :	B-1 Extension/E-23, Mohan CO-operative Industrial Estate, Mathura Road, New Delhi – 110044, Delhi
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	08.05.1989
Com. Reg. No.:	55-036148
Paid-up Capital :	Rs. 205.440 Millions
CIN No.: [Company Identification No.]	L74899DL19889PLC036148
TAN No.: [Tax Deduction & Collection Account No.]	DELB01835B
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Construction of Commercial Complexes / Offices etc
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 22000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. General financial position is good. Trade relations are reported as fair. Business is active. Payments are reported to be 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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
India	A1	A1

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

LOCATIONS

Registered Office / Corporate Office :	B-1 Extension/E-23, Mohan CO-operative Industrial Estate, Mathura Road, New Delhi – 110044, Delhi, India
Tel. No.:	91-11-40500300
Fax No.:	91-11-40500333
E-Mail :	info@blkashyap.com
Website :	www.blkashyap.com
Regional Office :	2^nd Floor, East Wing, Soul Space Paradigm, Near Innovative Multiplex, Outer Ring Road, Marathahalli, Bangalore 560 037, Karnataka, India
Tel. No.:	91-80-30742400/25235878
Fax No.:	91-80-25235879
E-Mail :	robangalore@blkashyap.com
Site Office :	Dewy Terrace Crescent Park, Thiruporu – OMR, Kanchipuram Dist, Chennai 603110, Tamilnadu, India

DIRECTORS

As On 31.03.2011

Name :	Mr. Vinod Kashyap
Designation :	Chairman
Date of Birth/Age :	59 Years
Qualification :	B.A
Experience :	38 Years
Date of Appointment :	08.05.1989
Name :	Mr. Vineet Kashyap
Designation :	Managing Director
Date of Birth/Age :	56 Years
Qualification :	B.A
Experience :	35 Years
Date of Appointment :	08.05.1989
Name :	Mr. Vikram Kashyap
Designation :	Joint Managing Director
Date of Birth/Age :	06.08.1961
Date of Appointment :	08.05.1989
Other Directorship :	· B L K Lifestyle Limited · Security Information Systems (India) Limited · Soul Space Projects Limited · Soul Space Realty Limited · Soul Space Hospitality Limited · B.L.K. Financial Services Limited · B L K Lifestyle Limited · BLK Infrastructure Limited · EON Auto Industries Private Limited · Bezel Investment and Finance Private · B L K Securities Private Limited
Name :	Mr. Justice C. K. Mahajan (Retd.)
Designation :	Director
Name :	H. N. Nanani
Designation :	Director
Date of Birth/Age :	20.12.1948
Date of Appointment :	14.12.2005
Other Directorship :	· Spice BPO Services Limited · Bharat BPO Services Limited · Buddha Pictures Limited · M. Pictures Distribution Limited · Bougainvillea Multiplex and Entertainment Centre Private Limited · B L K Lifestyle Limited
Name :	P.S. Shenoy
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Sandeep Agarwal
Designation :	Sr. Vice President - Corporate Finance
Name :	Mr. Pushpak Kumar
Designation :	Company Secretary
Name :	Mr. Prashant Tyagi
Designation :	Execution-Head
Date of Birth/Age :	47 Years
Qualification :	B.E
Experience :	24 Years
Date of Appointment :	08.05.1989
Name :	Mr. Naveel Singla
Designation :	Execution Head-South
Date of Birth/Age :	42 Years
Qualification :	B.E.
Experience :	19 Years
Date of Appointment :	08.03.1993

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 30.06.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Any Others (Specify)	146,060,880	71.10
Directors/Promoters & their Relatives & Friends	146,060,880	71.10
Sub Total	146,060,880	71.10
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	146,060,880	71.10
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	10,081,637	4.91
Financial Institutions / Banks	10,650	0.01
Foreign Institutional Investors	21,943,370	10.68
Sub Total	32,035,657	15.59
(2) Non-Institutions
Bodies Corporate	9,649,317	4.70
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	13,784,042	6.71
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	2,641,552	1.29
Any Others (Specify)	1,268,552	0.62
Non Resident Indians	507,618	0.25
Overseas Corporate Bodies	20	-
Clearing Members	77,611	0.04
Hindu Undivided Families	675,393	0.33
Trusts	7,910	-
Sub Total	27,343,463	13.31
Total Public shareholding (B)	59,379,120	28.90
Total (A)+(B)	205,440,000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	205,440,000	-

BUSINESS DETAILS

Line of Business :

Construction of Commercial Complexes / Offices etc

Products :

Item Code No.	Product Description
NA	Civil Construction
NA	Room Rent
NA	Interest

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Canara Bank

· ICICI Bank Limited

· IndusInd Bank Limited

· State Bank of India

· Standard Chartered Bank

· Oriental Bank of Commerce

· Yes Bank Limited

Facilities :

Secured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
From Banks
Term Loans
Secured against Hypothecation of Machinery	277.152	76.881
Vehicle Loans	5.977	2.248
Union Bank of India	192.857	278.571
State Bank of Patiala	50.000	90.000
Oriental Bank of Commerce	175.000	250.000
Syndicate Bank	1000.000	0.000
IndusInd Bank	510.000	350.000
Cash Credit
Working Capital Facility	2046.173	1620.594
From Others
Corporates	402.778	500.000
Total	4659.937	3168.294

Notes:

a) Working Capital Facility from Banks

i) (Secured by way of first pari passu charge on Current Assets of the company and Second pari passu charge on Fixed Assets of the Company except those specifically charged to Financial Institutions/banks/others for term Loans of machinery and vehicles and Personal Guarantees of whole time Directors)

b) Term Loans From Banks

1 Union Bank of India - Rs. 192.857 millions Previous Year Rs.278.571 millions (Principal amount repayable within 12 months from the date of Balance Sheet Rs.85.714 millions Previous Year Rs.- 85.714 millions)

2 State Bank of Patiala - Rs.50.000 millions Previous Year Rs. 90.000 millions (Principal amount repayable within 12 months from the date of Balance Sheet -Rs.40.000 millions Previous Year -Rs. 40.000 millions)

3 Oriental Bank of Commerce - Rs. 175.000 millions Previous Year Rs. 250.000 millions (Principal amount repayable within 12 months from the date of Balance Sheet - Rs. 125.000 millions Previous Year Rs.100.000 millions)

4 IndusInd Bank - Rs. 210.000 millions Previous Year Rs. 350.000 millions (Principal amount repayable within 12 months from the date of Balance Sheet - Rs. 140.000 millions Previous Year Rs. 140.000 millions) (Loan from Union bank of India, State Bank of Patiala,Oriental Bank of Commerce and IndusInd (Point no. 1-4 )are secured by way of first pari passu charge on Fixed Assets of Company except those specifically charged to Financial Institutions/bank for term Loans of machinery and vehicles and personal Guarantees of whole time Directors)

5 IndusInd Bank - Rs. 300.000 millions Previous Year Rs. Nil/- (Principal amount repayable within 12 months from the date of Balance Sheet - Rs. 300.000 millions Previous Year Rs. Nil/-)

6 Syndicate Bank - Rs. 1000.000 millions Previous Year Rs. Nil/- (Principal amount repayable within 12 months from the date of Balance Sheet - Rs. Nil/-Previous Year Rs. Nil/-) (Loan from IndusInd Bank,Syndicate Bank (Point no. 5 and 6) are secured by Subservient charge by way of hypothecation on all the Movable Assets, Current Assets, receivables and fixed assets and personal guarantees of whole-time Directors)

c) Term Loans From Others

1 L and T Infrastructure Finance Company Limited -

- Rs.402.778 millions /- Previous Year Rs. 500.000 millions (Principal amount repayable within 12 months from the date of Balance Sheet

- Rs. 152.778 millions Previous Year Rs. 83.333 millions)

(secured by Subservient charge by way of hypothecation on all the Movable Assets, Current Assets, receivables and fixed assets and personal guarantees of Whole - time Directors)

d) Loans Secured Against Hypothecation of Plant And Machinery And Personal Guarantee of Whole- Time Directors

i) From Kotak Mahindra Bank Limited : Loans outstanding as at 31.03.2011 - Rs. 58.226 millions (Previous Year - Rs.8.306 millions) Principal amount repayable within 12 months from the date of Balance Sheet Rs. 36.257 millions ( Previous Year Rs.8.306 millions)

ii) From HDFC Bank Limited : Loans outstanding as at 31.03.2011 - Rs. 168.416 millions (Previous Year Rs.59.785 millions) Principal amount repayable within 12 months from the date of Balance Sheet Rs. 58.878 millions (Previous Year Rs.30.940 millions )

iii) From Reliance Capital Limited : Loans outstanding as at 31.03.2011 - Rs. 49.058 millions (Previous Year Rs.8.761 millions) Principal amount repayable within 12 months from the date of Balance Sheet Rs. 15.458 millions (Previous Year -Rs.8.761 millions)

e) Loans Secured Against Hypothecation of Cars And Personal Guarantee of Whole - Time Directors

i) From ICICI Bank Limited : Loans outstanding as at 31.03.2011 - Rs.1.771 millions (Previous Year Rs.0.072 million) Principal amount repayable within 12 months from the date of Balance Sheet Rs. 0.700 million (Previous Year - Rs. 0.072 million)

ii) From HDFC Bank Limited : Loans outstanding as at 31.03.2011 - Rs.2.434 millions (Previous Year Rs. Nil/-) Principal amount repayable within 12 months from the date of Balance Sheet Rs. 0.705 millions (Previous Year - Rs. Nil- )

iii) From Kotak Mahindra Bank Limited : Loans outstanding as at 31.03.2011 - Rs. 3.223 millions (Previous Year - Rs. Nil-) Principal amount repayable within 12 months from the date of Balance Sheet Rs. 1.699 millions (Previous Year Rs.Nil-)

Secured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
From Banks (Against Personal Guarantee of Whole-Time Directors and Third party Security)	0.000	750.000
From Corporates (Against Personal Guarantee of Whole-Time Directors And Pledge of Shares from whole - time Directors)	611.876	550.000
Total	611.876	1300.000

Banking Relations :	--
Auditors :
Name :	M/s Sood Brij and Associates Chartered Accountants
Address :	C-72, South Extension Part-II, New Delhi-110 049, Delhi, India
Subsidiaries :	· B L K Lifestyle Limited · Security Information Systems (India) Limited · BLK Infrastructure Limited · Soul Space Projects Limited
Step Down Subsidiaries :	· Soul Space Realty Limited · Soul Space Hospitality Limited
Associates :	· B.L.K. Financial Services Limited · B.L.K. Securities Private Limited · (Ahuja Kashyap Malts Private Limited · Bezel Investments and Finance Private Limited · B.L. Kashyap and Sons · Kasturi Ram Herbal Industries · Aiyana Trading Private Limited · Chrysalis Trading Private Limited · Chrysalis Realty Projects Private Limited · EON Auto Industries Private Limited · Suryakant Kakade and Soul Space · Asha Jyoti Software PrivateLimited
Joint Ventures :	· BLK NCC Consortium

CAPITAL STRUCTURE

As On 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
250000000	Equity Shares	Rs. 1/- each	Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
205440000	Equity Shares	Rs. 1/- each	Rs. 205.440 Millions

Note:

Of the above shares 17,51,37,000/- shares are allotted as fully paid up by way of bonus shares by capitalising the Reserves and Surplus (Previous Year 7,24,17,000 shares of Re. 1/- each)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		205.440	102.720	102.720
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5427.678	5060.259	4666.064
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5633.118	5162.979	4768.784
LOAN FUNDS
1] Secured Loans		4659.937	3168.294	1243.847
2] Unsecured Loans		611.876	1300.000	1400.000
TOTAL BORROWING		5271.813	4468.294	2643.847
DEFERRED TAX LIABILITIES		23.159	19.696	28.545
TOTAL		10928.090	9650.969	7441.176
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1502.390	1115.039	1164.682
Capital work-in-progress		4512.056	2496.622	2306.754
INVESTMENT		191.424	141.412	142.362
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	118.349	91.647	91.647
	Sundry Debtors	5569.678	5274.812	4373.725
	Cash & Bank Balances	260.770	460.288	176.080
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	5449.677	4011.873	3163.692
Total Current Assets		11398.474	9838.620	7805.144
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3019.228	1967.442	2114.470
	Other Current Liabilities	3315.303	1728.481	1432.042
	Provisions	341.723	244.801	447.049
Total Current Liabilities		6676.254	3940.724	3993.561
Net Current Assets		4722.220	5897.896	3811.583
MISCELLANEOUS EXPENSES		0.000	0.000	15.795
TOTAL		10928.090	9650.969	7441.176

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Construction Job Work – Net	15223.885	10165.887	14572.356
		Other Operating Income	102.773	20.583	48.303
		Other Income	466.217	347.455	201.737
		TOTAL (A)	15792.875	10533.925	14822.396
Less	EXPENSES
		Construction Materials & Others	7568.016	5122.976	7407.057
		Wages including Benefits	4469.420	2784.100	4261.008
		Freight and Cartage	162.165	122.429	119.045
		Employees Remuneration and Benefits	874.197	594.943	667.814
		Administrative and Other Expenses	1119.984	719.418	820.258
		TOTAL (B)	14193.782	9343.866	13275.182
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1599.093	1190.059	1547.214
Less	FINANCIAL EXPENSES (D)		651.054	434.539	189.756
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		948.039	755.520	1357.458
Less/ Add	DEPRECIATION/ AMORTISATION (F)		199.909	172.336	188.419
	PROFIT BEFORE TAX (E-F) (G)		748.130	583.184	1169.039
Less	TAX (I)		257.882	164.953	380.646
	PROFIT AFTER TAX (G-I) (J)		490.248	418.231	788.393
Add	PRIOR PERIOD TAX ADJUSTMENTS		3.767	0.000	(8.053)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2100.750	1942.554	1404.249
Less	APPROPRIATIONS
		Transfer to General Reserve	98.000	236.000	218.000
		Proposed Dividend	20.544	20.544	20.544
		Dividend Tax	3.333	3.491	3.491
	BALANCE CARRIED TO THE B/S		2472.888	2100.750	1942.554
	IMPORTS		89.024	6.902	15.517
	Earnings Per Share (Rs.)
	- Basic		2.40	2.04	37.98
	- Diluted		2.40	2.04	37.98

QUARTERLY RESULTS

PARTICULARS	30.06.2011 1^st Quarter
Net Sales	4313.880
Total Expenditure	4160.160
PBIDT (Excl OI)	153.720
Other Income	118.630
Operating Profit	272.350
Interest	202.530
PBDT	69.820
Depreciation	58.250
Profit Before Tax	11.570
Tax	(7.740)
Profit After Tax	19.310
Extraordinary Items	(0.560)
Net Profit	18.760

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.10	3.97	5.32
Net Profit Margin (PBT/Sales)	(%)	4.91	5.74	8.02
Return on Total Assets (PBT/Total Assets}	(%)	5.80	5.32	13.03
Return on Investment (ROI) (PBT/Networth)		0.13	0.11	0.25
Debt Equity Ratio (Total Liability/Networth)		2.12	1.63	1.39
Current Ratio (Current Asset/Current Liability)		1.71	2.50	1.95

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL REVIEW

The year, the Company has recorded a considerable growth in turnover. The Revenue of the Company from operations including other income was Rs.15792.900 Millions as against Rs. 10534.000 Millions during the previous year showing a growth of over 49.92%.

Total expenditure increased by 51.19 % from Rs. 9950.700 Millions as in 2009-10 to Rs. 15044.700 Millions in 2010-11. Profit before tax increased by 28.28 % from Rs. 583.200 Millions as in 2009-10 to Rs. 748.100 Millions in 2010-11 and Profit after tax increased by 17.22 % from Rs.418.200 Millions in 2009-10 to Rs. 490.200 Millions in 2010-11.

MANAGEMENT DISCUSSION AND ANALYSIS

Embarking In the New Trajectory And Creating Value

During the year, the Company has embarked on various new assignments, which are stepping stone, for a big leap towards getting many more such critically important projects, which would go in the overall growth of the Company and its profile. The year in perspective is important for the reason that there has been significant shift in the overall project profiling so as to de-risk the over dependence on limited sector specific Industries. A point in comparison is 20% of the total order book is from the Central Government sector.

The success of the Company is directly attributable to its dedicated staff, who have accumulated the knowledge and experience necessary in the commercial construction marketplace, by combining the best technical resources with the most experienced personnel in the region, BLK has built a tradition of quality work delivered on time, within budget. The formula for the Company’s success is built upon an aggressive business strategy that focuses on the core competencies of fast track construction, high quality finishes. The project teams work with clients to identify critical issues and accordingly programme the execution needs and then seek to exceed the customers’ expectations. BLK constructs all types of buildings: Corporate Headquarters, Research And Development Complexes, Educational Campuses, Healthcare Facilities, Hotels / Conference Centers, Multi-family Residential Developments, Retail Malls And Lifestyle Centers, Government Buildings, Bridges, Airports etc.

The Company has completed more than 28 projects in last year with clients including M/s HPCL-Mittal Energy Limited, M/s Toyota Kirloskar Motor Private Limited, M/s Bennett Coleman and Co. Limited, M/s Delhi Metro Rail Corporation Limited, and M/s Indian Oil Corporation Limited

Global Economy

Global Economy in financial Year 2010-11 has witnessed recovery from the economic crisis that has engulfed some of there key markets. While growth in emerging market economies remain strong and some of them neared their pre-recession growth levels on the back of domestic demand and buoyant exports, the developed economies began to show pickup in demand where uncertainty continue to prevail over economic conditions.

Some of the countries like Greece, Portugal, Ireland and Spain are going through throes of economic turmoil. Sharp increase in oil prices and waves of public protests that has erupted throughout the Middle East and North Africa had further added fire to fuel. Some protests have become revolutions as governments such as those in Tunisia and Egypt have been overthrown. Others have not got that far but have sometimes been peaceful, other times met with very brutal repression, and all this has added uncertainty to the pace of global recovery.

Indian Economy

India has maintained its growth momentum on the foundation of relatively strong fundamentals of the economy. Strong domestic consumption, buoyant exports, above normal monsoon and robust service sector enabled GDP to grow by around 8.5% during 2010-11. The rupee also remained range bound against US dollar to the comfort of both the exporters and the importers. Inflation has been a cause of worry, particularly food inflation, which remained in double digit range during the year and to control the same, RBI has taken measures, inter-alia, by increasing the repo and reverse repo rates at regular intervals during the year. This has resulted in increase in the lending rates of commercial banks.

Industry Overview

The level of a Country’s development is reflected by its infrastructure and social upliftment of the people. The desperate need for infrastructure development has increased the demand of the construction industry. The construction industry has made a significant contribution to the national economy and provides employment to large number of people. The use of various new technologies and deployment of project management strategies has now made it possible to undertake projects of mega scale.

The Construction Industry Development Council (CIDC) predicts that investment in construction in this populous country will rise by ten percent over the current year of 2011/12. The Construction industry contributes more than 5 per cent to the nation’s GDP and 78 per cent to the gross capital formation. Total capital expenditure of State and Central Government will be touching Rs. 8020870.000 Millions in 2011-12 from Rs. 1435870.000 Millions (1999-2000).

The Country’s construction industry forecasts, average real growth of 7.9% per annum between the financial years 2010-11 and 2015-16. This relatively high growth figure indicates that there are a large number of projects available to infrastructure companies throughout the stated period and certain sectors, such as the power and airport sectors, presenting more opportunities than others. However, there are significant risks preventing the realisation of returns for these projects and these risks are inhibiting upside movement to the construction growth forecast.

The latest statistical data from India’s Ministry of Statistics and Programme Implementation (MOSPI) show that real growth for the Indian construction industry reached 9.6% year-on-year for H110/11 (1 April 2010 to 31 September 2010).

India’s business environment continues to be plagued by a convoluted and incoherent legal framework, rampant corruption, weak land clearance regulations and an environmental ministry that is over-zealous in prosecuting infringements, but slow in implementing policies. These issues have led to lengthy delays that cause massive cost overruns for many of India’s construction projects. The latest figures from ‘MOSPI’ show that 293 out of 559 construction projects in India were delayed as of October 2010. These delays allow wastage and corruption to fester, which leads to cost overruns. MOSPI calculates that the total budgeted cost of all 559 projects is forecast to exceed original cost estimates by approximately 21%.

Despite these problems, significant opportunities for greenfield projects remain, particularly in the infrastructure sector. The Indian government remains committed to developing sufficient infrastructure to meet the needs of the economy. According to BMI’s key projects database, there are more than US$270bn worth of projects - under construction or in the pipeline - in India’s infrastructure sector

Taking cue from the Government’s ambitious projects lined up for the Eleventh Plan period, the demand for construction is expected to grow by at least 8-9%, and 2.5 million employment opportunities per annum are expected to be generated.

The importance of construction activity in infrastructure, housing, and other asset-building activities can be seen from the fact that the component of construction comprises nearly 60%–80% of the project cost of certain infrastructure projects such as roads, housing, etc. In projects such as power plants, industrial plants, etc., though the share is lower but it still remains critical.

In terms of magnitude, construction activity is second only to agriculture. The construction industry also has major linkages with the building material manufacturing industry including cement and steel, bricks and tiles, sand and aggregates, fixtures and fittings, paints and chemicals, construction equipment, petrol and other petro-products, timber, mineral products, aluminum, glass, and plastics. Construction materials account for nearly two-third of the average construction costs. On the basis of an analysis of the forward and backward linkages of construction, the multiplier effect of construction on the economy is estimated to be significant.

Investments in Construction have a positive domino effect on supplier industries, thereby contributing immensely to economic development. The Construction sector has strong linkages with various industries such as cement, steel, chemicals, paints, tiles, fixtures and fittings. While in the short term it serves as a demand booster, in the long term it contributes towards boosting the infrastructure capacity

OUTLOOK

The continued growth of India’s middle class and the ongoing development of tier two and tier three cities as a result of urbanization suggest that higher demand for the Company’s construction services will remain strong in the coming periods.

Over the longer term, the Company believes that its growth will be driven by expanding its reach in tier-two and tier-three cities and increasing focus on specialist construction projects, which the Company believes will deliver higher profit margins.

As a part of this new strategic direction, the Company plans to upgrade its qualification and engineering standards to ensure that it can tap into this growing market potential.

The majority of the new opportunities will be in infrastructure, versus previously when real estate was the driving force in the construction market. This causes a tremendous need for skilled and unskilled labour to man these projects, still the demand for the residential units, driven by the high growth rate in the Indian economy and rapid urbanization, is expected to be strong in the medium term. However the absorption rate is likely to slowed down over the near term on account of the strong increase in residential unit prices and withdrawal of teaser interest rate by the banks and other lenders and increase in interest rates.

Though Margins have taken a cut over the last year, however, the impact has been lessened due to cost-cutting measures taken by the Companies. Due to inept contribution by the government in awarding new contracts compled with inflationary pressure, there would be continuing pressure on the margins, but the Company is taking adequate steps to combat the same.

Fixed Assets:

- Building

- Plant and machinery

- Office equipments

- Cellular phone

- Electrical equipments

- Computer systems

- Air conditioners

- Refrigerators

- Coolers

- Fans

- Generators

- Vehicles

- Cycle

- Shuttering materials

- Furniture and fixtures

- Computers

- Televisions

- Furniture and fixtures

AS PER WEBSITE DETAILS

CORPORATE OVERVIEW:

Founded in 1978 as a partnership firm, BLK owes its success to B L Kashyap, a veteran construction professional. It was his vision to create an organization that would be admired and sought out for its professionalism and quality of work. This inspiration is still alive in there work ethic and forms the foundation of there success.

Incorporated as a limited company in 1989, BLK is now promoted by his sons Vinod Kashyap, Vineet Kashyap and Vikram Kashyap, and managed by a team of management and industry professionals.

Today, BLK is one of India's most respected construction and infra- structure development companies with a pan India presence. The service portfolio extends across the construction of factories and manufacturing facilities, IT campuses, commercial and residential complexes, malls and hotels.

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.49.08
UK Pound	1	Rs.78.65
Euro	1	Rs.67.79

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
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	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		53

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.