MIRA INFORM REPORT

Report Date :

14.11.2011

IDENTIFICATION DETAILS

Name :	H. M. PIPES PRIVATE LIMITED
Registered Office :	A – 95, Suraj Nagar (East), Civil Lines, Jaipur – 302006, Rajasthan
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.06.2000
Com. Reg. No.:	17-016489
Capital Investment / Paid-up Capital :	Rs.85.000 Millions
CIN No.: [Company Identification No.]	U25203RJ2000PTC016489
TAN No.: [Tax Deduction & Collection Account No.]	JPRH02325B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of Poly Ethylene Pipes and HDP Pipes.
No. of Employees :	80 (Approximately) [In Office – 20 and In Factory – 60]

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 507000
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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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. K. P. Singh
Designation :	Accounts Department
Contact No.:	91-141-2211552
Date :	05.11.2011

LOCATIONS

Registered Office :	A – 95, Suraj Nagar (East), Civil Lines, Jaipur – 302006, Rajasthan, India
Tel. No.:	91-141-2211552
Mobile No.:	91-9414059338 (Mr. Chetan)
Fax No.:	91-141-2210033
E-Mail :	hmpipes@hotmail.com guptagajanand@indiatimes.com
Website :	www.hmpipes.com
Location :	Owned
Corporate Office :	G-47-48, Bagru Industrial Area, Phase II, Jaipur – 302006, Rajasthan, India
Location :	Owned
Factory :	F – 62, Kartarpura Industrial Area, Jaipur – 302006, Rajasthan, India
Tel. No.:	91-141-2210033/ 2211552
Fax No.:	91-141-2210033/ 2210033
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :

Chetan Choudhary

Designation :

Director

Address :

A – 59, Suraj Nagar, Civil Lines, Jaipur – 302006, Rajasthan, India

Qualification :

B. Com

Date of Appointment :

21.06.2000

DIN No.:

00419671

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U25203RJ2000PTC016489	H.M. Pipes Private Limited	Director	21/06/2000	21/06/2000	-	Active	NO
U29100RJ2010PTC033627	Harit Infrairrigation Private Limited	Director	21/12/2010	21/12/2010	-	Active	NO

Name :

Mr. Vijay Narain Katiyar

Designation :

Director

Address :

63, Patel Nagar, 22 Godam, Jaipur – 302006, Rajasthan, India

Qualification :

Post Graduate

Date of Appointment :

21.06.2000

Date of Ceasing :

05.10.2010

DIN No.:

00419778

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U25203RJ2000PTC016489	H.M. Pipes Private Limited	Director	21/06/2000	21/06/2000	5/10/2010	Active	NO
U25209RJ2008PTC027659	Silicon Polyplast Private Limited	Director	3/11/2008	3/11/2008	-	Active	YES

Name :

Ms. Anita Katiyar

Designation :

Director

Address :

63, Patel Nagar, 22 Godam, Jaipur – 302006, Rajasthan, India

Qualification :

Graduate

Date of Appointment :

21.06.2000

DIN No.:

00419878

Name :

Mrs. Kamla Singh

Designation :

Director

Address :

A – 59, Suraj Nagar, Civil Lines, Jaipur – 302006, Rajasthan, India

Qualification :

Post Graduate

Date of Appointment :

21.06.2000

DIN No.:

00432245

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U25203RJ2000PTC016489	H.M. Pipes Private Limited	Director	21/06/2000	21/06/2000	-	Active	NO
U45201RJ2011PTC034869	Shreeveena Infrastructure Private Limited	Director	20/04/2011	20/04/2011	-	Active	NO

Name :

Mr. Vivek Katiyar

Designation :

Managing Director

Address :

63, Patel Nagar, 22 Godam, Jaipur – 302006, Rajasthan, India

Qualification :

Graduate

Date of Appointment :

26.07.2010

DIN No.:

02247145

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U25203RJ2000PTC016489	H.M. Pipes Private Limited	Managing director	3/08/2010	26/07/2010	-	Active	NO
U29100RJ2010PTC033627	Harit Infrairrigation Private Limited	Director	21/12/2010	21/12/2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. K. P. Singh
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Kamla Singh	148600
Chetan Choudhary	910800
Vivek Katiyar	544423
Major Mohan Singh	70000
S. S. Gujar	10000
Mohan Lal	10000
Arun Ji	11325
Rajesh Jakhad	10000
Vijay Narian Katiyar	22600
Amar Godara	10000
Meera Choudhary	2500
Vishal Kilakl	9668
Ram Niwas ji	5960
Ramesh Choudhary	2000
Ganesh Ji Jakhad	7200
Vimal Katiyar	6000
Mewa Ram Ji	3000
Total	1918300

As on 28.12.2010

Names of Allottees	No. of Shares
Chetan Choudhary	751875
Vivek Katiyar	1197100
Kamla Singh	1551025
Total	3500000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Directors or relatives of Directors	56.66
Other top fifty shareholders	43.34
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Supplier of Poly Ethylene Pipes and HDP Pipes.
Products :	· HDP Pipes · MDPE Pipes · PPR Pipes · Irrigation Systems · Sprinkler Irrigation · Drip Irrigation
Terms :
Selling :	Cash/ Credit
Purchasing :	Cash/ Credit

GENERAL INFORMATION

Customers :

· Government Suppliers

No. of Employees :

80 (Approximately) [In Office – 20 and In Factory – 60]

Bankers :

· Andhra Bank, Ashok Marg, C-scheme, Jaipur – 302001, Rajasthan, India

· Union Bank of India, Jagatpura Road Branch, Malviya Nagar, Jaipur – 302021, Rajasthan, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Term Loan from Bank (Term Loan from Bank amounting Rs.7.502 Millions (Previous year Rs.9.805 Millions) is secured by way of First and exclusive charge on all movable and Immovable Assets of the Company and the personal Guarantee of the Directors)		7.502
Short Term Loan from Bank
Cash Credit hypothecation Limit (Short Term Loan from Bank by way of Cash Credit Hypothecation Limit of Rs.93.253 Millions (Previous year Rs.93.065 Millions) is secured by hypothecation of Stock i.e. raw material, finish goods, stores and consumables and Book Debts of the Company. It is also secured by personal guarantee of the Directors)		93.253
NSIC For LC (N.S.I.C For LC of Rs.23.667 Millions (Previous Year Rs.14.597 Millions) is secured by equal amount of Bank Guarantee)	228.906	23.667
Loans for Vehicles (Loans for vehicle amounting to Rs.3.910 Millions (Previous year Rs.3.585 Millions) are secured by hypothecation of respective vehicles)		3.911
Total	228.906	128.333
Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Term Loan from bank and Financial Institutions	105.646	6.010
From Directors and Shares Holders and Bodies Corporate		86.260
Total	105.646	92.270

Banking Relations :	--
Auditors :
Name :	Vishnu Khandelwal and Company Chartered Accountants
Address :	449, Bandri Ka Nasik, Jaipur – 302002, Rajasthan, India
PAN.:	AFFPK9203D

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital : Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.85.000 Millions

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1918300	Equity Shares	Rs.10/- each	Rs.19.813 Millions

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		85.000	19.183	19.183
2] Share Application Money		0.760	2.360	2.360
3] Reserves & Surplus		41.090	25.980	19.640
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		126.850	47.523	41.183
LOAN FUNDS
1] Secured Loans		228.906	128.333	121.052
2] Unsecured Loans		105.646	92.270	159.400
TOTAL BORROWING		334.552	220.603	280.452
DEFERRED TAX LIABILITIES		5.917	4.860	3.488
TOTAL		467.319	272.986	325.123
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		62.085	55.751	52.404
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	99.418	65.576	31.847
	Sundry Debtors	347.810	93.042	192.333
	Cash & Bank Balances	26.024	23.680	50.192
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	66.606	56.279	72.073
Total Current Assets		539.858	238.577	346.445
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors		12.254	67.682
	Other Current Liabilities	134.640	0.000	0.000
	Provisions		9.112	6.076
Total Current Liabilities		134.640	21.366	73.758
Net Current Assets		405.218	217.211	272.687
MISCELLANEOUS EXPENSES		0.016	0.024	0.032
TOTAL		467.319	272.986	325.123

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1305.763	615.969	533.056
		Other Income	2.639	2.125
		TOTAL (A)	1308.402	618.094	533.056
Less	EXPENSES
		Increase/ Decrease in Stock	(10.476)	(40.545)
		Purchases	737.431	372.346	504.062
		Cost of Material Sold	513.976	224.715
		Administrative and Establishment Expenses	9.481	14.705
		TOTAL (B)	1250.412	571.221	504.062
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		57.990	46.873	28.994
Less	FINANCIAL EXPENSES (D)		36.826	27.954
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		21.164	18.919	15.714
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.691	3.218	2.427
	PROFIT BEFORE TAX (E-F) (G)		17.473	15.701	13.280
Less	TAX (H)		6.851	4.873	4.225
	PROFIT AFTER TAX (G-H) (I)		10.622	10.828	9.055
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		24.360	18.020	6.733
Less	APPROPRIATIONS
		Proposed Dividend	0.000	3.836	0.000
		Dividend Distribution Tax	0.000	0.652	0.000
		Provision for Dividend	(3.837)	0.000	0.000
		Provision for Dividend Tax	(0.652)	0.000	0.000
		Excess depreciation written back	0.000	0.000	(2.232)
	BALANCE CARRIED TO THE B/S		39.471	24.360	18.020
	Earnings Per Share (Rs.)		NA	5.64	4.72

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.81	1.75	1.69
Net Profit Margin (PBT/Sales)	(%)	1.33	2.55	NA
Return on Total Assets (PBT/Total Assets}	(%)	2.90	5.33	3.32
Return on Investment (ROI) (PBT/Networth)		0.13	0.33	0.32
Debt Equity Ratio (Total Liability/Networth)		3.69	5.09	8.60
Current Ratio (Current Asset/Current Liability)		4.01	11.16	4.69

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	No
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	--
17) Major suppliers	No
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	--
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	No
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

FIXED ASSETS

· Land

· Factory Building

· Plant and Machinery

· Office Equipment

· Furniture and Fixture

· Vehicle

· Computer

TRADE REFERENCES

· K. K. Polymers

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.50.28
UK Pound	1	Rs.80.08
Euro	1	Rs.68.45

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
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		46

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.