MIRA INFORM REPORT

Report Date :

27.04.2012

IDENTIFICATION DETAILS

Name :	SIGMA POLES PRIVATE LIMITED
Registered Office :	302, President Tower, 6/2, South Tukoganj, Indore – 452001, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	16.09.1992
Com. Reg. No.:	10-007322
Capital Investment / Paid-up Capital :	Rs.0.325 Million
CIN No.: [Company Identification No.]	U29296MP1992PTC007322
TAN No.: [Tax Deduction & Collection Account No.]	BPLS08829C
PAN No.: [Permanent Account No.]	AACCS7561E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of precast concrete products, precast construction.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (16)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears huge accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a secured 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. Tejus
Designation :	Director
Contact No.:	91-9755005735
Date :	26.04.2012

LOCATIONS

Registered Office :	302, President Tower, 6/2, South Tukoganj, Indore – 452001, Madhya Pradesh, India
Tel. No.:	91-731-4036667
Mobile No.:	91-9755005735 (Mr. Tejus)
Fax No.:	Not Available
E-Mail :	tejuskarnik@gmail.com mca21000@gmail.com nsp4u.2007@rediffmail.com
Location :	Owned
Factory :	Khargone, Madhya Pradesh, India

DIRECTORS

As on 30.09.2011

Name :	Mr. Tejus Karnik
Designation :	Director
Address :	210-B, Yashraj Residency, Manoramaganj, Indore – 452001, Madhya Pradesh, India
Date of Birth/Age :	01.08.1981
Date of Appointment :	06.12.2007
DIN No.:	01940114
Name :	Mrs. Vidya Karnik
Designation :	Director
Address :	H. No. 1, Bairathi Colony No. 1, Indore – 452001, Madhya Pradesh, India
Date of Appointment :	01.02.1997
DIN No.:	02032702

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Vidya Karnik	21130
Nishikant Kotwal	800
Shashikant Kotwal	700
Ramchandra Kotwal	800
Vikram Taranekar	500
Rajan Taranekar	700
Pradeep Patil	800
Smita Patil	700
Jyotsana Karnik	1200
Mugdha Karnik	1500
Vitthal Karnik	3700
Total	32530

As on 19.03.2012

Names of Allottees	No. of Shares
Lily Karnik	1600
Vidhya Karnik	5200
Tejus Karnik	10670
Total	17470

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Directors or relatives of Directors	98.00
Other top fifty shareholders	2.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of precast concrete products, precast construction.
Terms :
Selling :	Cash/ Credit
Purchasing :	Cash/ Credit

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Actual Production
Cement Poles	12840

GENERAL INFORMATION

Customers :

· Wholesalers

· Retailers

No. of Employees :

50 (Approximately)

Bankers :

· Union Bank of India, SSI Branch, 21 Diamond Colony, Janjeerwala Square, Indore – 452001, Madhya Pradesh, India

· HDFC Bank

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
HDFC Car Loan (Secured against hypothecation Specific vehicle)	0.137	0.412
Total	0.137	0.412
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Directors and Relatives	3.664	2.848
Corporate Deposits	3.118	4.388
Total	6.782	7.236

Banking Relations :	--
Auditors :
Name :	Mak and Associates Chartered Accountants
Address :	3^rd Floor, Chaturvedi Mension, 26/4, Old Palasia, Indore – 452001, Madhya Pradesh, India
PAN.:	AAEFM7198M

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.10/- each	Rs.0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.10/- each	Rs.0.500 Million

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.10/- each	Rs.0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
32530	Equity Shares	Rs.10/- each	Rs.0.325 Million

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		0.325	0.325	0.325
2] Share Application Money		0.800	0.800	0.800
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(3.185)	(2.886)	(3.092)
NETWORTH		(2.060)	(1.761)	(1.967)
LOAN FUNDS
1] Secured Loans		0.137	0.412	0.680
2] Unsecured Loans		6.782	7.236	5.575
TOTAL BORROWING		6.919	7.648	6.255
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		4.859	5.887	4.288
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.709	1.962	2.432
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	1.000	1.000
DEFERREX TAX ASSETS		0.028	0.539	0.507
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7.088	1.531	3.167
	Sundry Debtors	1.333	4.336	2.064
	Cash & Bank Balances	2.822	0.450	0.418
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.298	0.800	0.584
Total Current Assets		12.541	7.117	6.233
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.055	4.566	5.145
	Other Current Liabilities	5.089	0.025	0.472
	Provisions	0.275	0.140	0.267
Total Current Liabilities		9.419	4.731	5.884
Net Current Assets		3.122	2.386	0.349
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4.859	5.887	4.288

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	13.906	13.885	14.772
		Other Income	0.031	0.049	0.040
		TOTAL (A)	13.937	13.934	14.812
Less	EXPENSES
		Increase/ (Decrease) in stock	(4.473)	0.208	(0.373)
		Raw Material Consumed	13.559	9.920	11.183
		Operating Expenses	1.909	1.042	1.248
		Administrative Expenses	1.952	1.868	1.952
		TOTAL (B)	12.947	13.038	14.010
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.990	0.896	0.802
Less	FINANCIAL EXPENSES (D)		0.162	0.076	0.061
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.828	0.820	0.741
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.369	0.469	0.285
	PROFIT BEFORE TAX (E-F) (G)		0.459	0.351	0.456
Less	TAX (H)		0.231	0.145	0.197
	PROFIT AFTER TAX (G-H) (I)		0.228	0.206	0.259
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(2.886)	(3.092)	(3.380)
	REVERSAL OF DTA ON LOSSES NOT ELIGIBLE FOR SET OFF		(0.528)	0.000	0.029
	BALANCE CARRIED TO THE B/S		(3.186)	(2.886)	(3.092)
	Earnings Per Share (Rs.)		7.02	6.32	8.85

Particulars	31.03.2012
Sales Turnover (Approximately)	15.000

Expected Sales (2012-13) : Rs.20.000 Millions

The above information has been parted by Mr. Tejus.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.64	1.47	1.75
Net Profit Margin (PBT/Sales)	(%)	3.30	2.53	3.09
Return on Total Assets (PBT/Total Assets}	(%)	3.22	3.87	5.26
Return on Investment (ROI) (PBT/Networth)		0.22	0.20	0.23
Debt Equity Ratio (Total Liability/Networth)		9.45	7.03	6.17
Current Ratio (Current Asset/Current Liability)		1.33	1.50	1.06

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	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
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	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

Note: The registered address of the company 1/1, Bairathi Colony, Indore, Madhya Pradesh, India has been shifted to the present address w.e.f. 05.05.2008

Bankers Charges Report as per Registry

Corporate identity number of the company	U29296MP1992PTC007322
Name of the company	SIGMA POLES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	302, President Tower, 6/2, South Tukoganj, Indore-452001, Madhya Pradesh, India Email : nsp4u.2007@rediffmail.com
This form is for	Creation of charge
Type of charge	Book Debts Movable Property
Particular of charge holder	Union Bank of India, SSI Branch, 21 Diamond Colony, Janjeerwala Square, Indore – 452001, Madhya Pradesh, India Email : ssindore@unionbankofindia.com
Nature of instrument creating charge	1. Hypothecation agreement of goods and debts 2. Letter of continuity AD-09 3. Letter from directors (AD-10) 4. Letter of guarantee (SD-01) 5. Hypothecation (goods) agreement (SD-03) 6. Letter of undertaking not to alienate hypothecation (AD-12) 7. Agreement on rate of interest
Date of instrument Creating the charge	29.07.2010
Amount secured by the charge	Rs.4.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 13% p.a. with monthly rests (basic rate+ 5%) Terms of Repayment On demand Margin 25% Extent and Operation of the charge The charge is operative to cover all facilities under the limit together with all charges payable there under against asset hypothecated
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All raw material, semi finished good, movable property of any kind now or at any time brought into or stored at borrower premises or Khargone Godown or at any other places hired for said purpose Hypothecation of stock of raw material, good in process, finished goods and book debts Hypothecation of all the machine equipments moulds acquired by Sigma Poles Private Limited

FIXED ASSETS

· Camera

· Computer

· D. G. Set

· Vehicles

· Inventor

· Electric Equipments

· Moulds

· Motor Pump

· Mobile

· Furniture and Fixture

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.52.57
UK Pound	1	Rs.85.03
Euro	1	Rs.69.56

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	CTI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	--
--CREDIT LINES	1~10	1
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		16

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.