MIRA INFORM REPORT

Report Date :

09.01.2012

IDENTIFICATION DETAILS

Name :	SMS PARYAVARAN LIMITED (w.e.f 10.01.2006)
Formerly Known As :	SMS PARYAVARAN PRIVATE LIMITED
Registered Office :	SH-2, Vardhman Grand Plaza, Plot 7, Mangalam Place, Sector – 3, Rohini, New Delhi – 110085
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	28.01.1992
Com. Reg. No.:	55-047372
Capital Investment / Paid-up Capital :	Rs.63.467 Millions
CIN No.: [Company Identification No.]	U41000DL1992PLC047372
TAN No.: [Tax Deduction & Collection Account No.]	DELS08252G
PAN No.: [Permanent Account No.]	AAACS2177F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Engaged in the business of development and execution of Engineering, Procurement, Construction and Commissioning (EPCC) in various projects like Water Supply, Sewerage Systems etc
No. of Employees :	Not Available

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 911000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. There appears some dip in the profitability of the company. However, networth appears to be satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. 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

LOCATIONS

Registered Office :	SH-2, Vardhman Grand Plaza, Plot 7, Mangalam Place, Sector – 3, Rohini, New Delhi – 110085
Tel. No.:	91-11-47173000
Fax No.:	91-11-47173003
E-Mail :	sms@smsplindia.com smspl@ndf.vsnl.net.in sms242@gmail.com
Website :	www.smsplindia.com

DIRECTORS

As on 30.09.2011

Name :

Mr. Narinder Jit Singh

Designation :

Director

Address :

501, Haritage Shirly, Rajan Road, Off Carter Road, Bandra (West),Mumbai – 400057, Maharashtra, India

Date of Birth/Age :

25.09.1949

Date of Appointment :

30.09.2011

DIN No.:

00242898

Other Directorship:

S.No.	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
1	U28920MH2003PTC140755	Venus Equipments and Tools Private Limited	Director	05-06-03	05-06-03	-	Active	NO
2	U29248MH2003PTC140757	Stone Construction Equipment (India) Private Limited	Director	05-06-03	05-06-03	-	Active	NO
3	U29248MH2003PTC140756	Venus Circuits and Electricals Private Limited	Director	05-06-03	05-06-03	04-12-10	Active	NO
4	U29240MH2004PTC144912	Multiquip Construction Equipment Private Limited	Director	09-03-04	09-03-04	-	Active	NO
5	U29248MH2009PTC192293	Curb Appeal Construction Equipment (India) Private Limited	Director	09-05-09	09-05-09	-	Active	NO
6	U41000DL1992PLC047372	Sms Paryavaran Limited	Director	30-09-11	20-09-11	-	Active	NO

Name :

Mr. Sudhir Narainrao Modak

Designation :

Director

Address :

SMS House, E-1/4, Sector – 7, Rohini, New Delhi – 110085, India

Date of Birth/Age :

22.06.1954

Date of Appointment :

01.02.1995

DIN No.:

00254839

Name :

Mr. Munendra Kumar Singh

Designation :

Whole Time Director

Address :

B-104, Anant CGHS, Plot No.-25A, Sector – 4, Dwarka, New Delhi – 110075, India

Date of Birth/Age :

24.01.1954

Date of Appointment :

01.02.1995

DIN No.:

00255301

Name :

Mr. Manimay Sengupta

Designation :

Director

Address :

SMS House, E-1/4, Sector – 7, Rohini, New Delhi – 110085, India

Date of Birth/Age :

01.03.1946

Date of Appointment :

28.02.1995

DIN No.:

00255392

Name :

Mr. Mehul Jagadish Maroo

Designation :

Director

Address :

Nibbana B-46, Nargis Dutt Pali Hill, Bandra (West), Mumbai – 400052, Maharashtra, India

Date of Birth/Age :

23.08.1972

Date of Appointment :

20.09.2011

DIN No.:

03644048

Name :

Mr. Amit Vikram Sharma

Designation :

Director

Address :

402, Orchid White Apartments, 10 Road, Khar (West), Mumbai – 400057, Maharashtra, India

Date of Birth/Age :

04.08.1965

Date of Appointment :

20.09.2011

DIN No.:

05103265

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Sudhir Narainrao Modak	13200000
Mumnendra Kumar Singh	13200000
Manimay Sengupta	13200000
Sucheta Sudhir Modak	438000
Uma Singh	438000
Parbati Sengupta	438000
T.K. Giri	1000
Sunita Minj	100
Himnashu Grover	1000
V.V. Harsulkar	1000
Nisha Singh	1000
Suresh Digamber Harne	5000
Rajeev Kumar	700
Rajender	1000
Sat Prakash	3000
Seema Sharma	2500
Anurag Jain	2500
Sarojini Malhotra	5000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Venture Capital	0.009
Directors or relatives of Directors	99.99
Total	100.00

BUSINESS DETAILS

Line of Business :

Engaged in the business of development and execution of Engineering, Procurement, Construction and Commissioning (EPCC) in various projects like Water Supply, Sewerage Systems etc

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

The Federal Bank Limited, Karol Bagh, New Delhi, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working Capital Loan from Bank	212.215	180.708
Loan taken from Vehicle	12.115	5.319
Loan taken from Other Fixed Assets	12.043	8.038
Rupee Term Loan	0.000	3.509
Total	236.373	197.574
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working Capital Loan	0.000	1.137
Loan from Director	9.670	9.236
Total	9.670	10.373

Banking Relations :	--
Financial Institution :	Bajaj Finserv Lending (Bajaj Finance Limited), Mumbai Pune Road, Akrudi, Pune – 411035, Maharashtra, India Unitel Credit Private Limited, 701, Manjusha 57, Nehru Place, Sheikh Sarai, Phase – II, New Delhi – 110019, India
Auditors :
Name :	V.V. Kale and Company Chartered Accountant
Address :	16A/20, W.E.A, Karol Bagh, Delhi – 110085, India
PAN.:	AACFV8784C
Holding Company :	Pratibha SMS, JV

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
13000000	Equity Shares	Rs.10/- each	Rs.130.000 Millions
25000000	Preferences Shares	Rs.10/- each	Rs.250.000 Millions
	TOTAL		Rs.380.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6347260	Equity Shares	Rs.10/- each	Rs.63.473 Millions
24989993	Preferences Shares	Rs.10/- each	Rs.249.900 Millions
	TOTAL		Rs.313.373 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6346679	Equity Shares	Rs.10/- each	Rs.63.467 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		63.467	63.467	63.467
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		164.363	170.640	130.770
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		227.830	234.107	194.237
LOAN FUNDS
1] Secured Loans		236.373	197.574	126.235
2] Unsecured Loans		9.670	10.373	10.899
TOTAL BORROWING		246.043	207.947	137.134
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		473.873	442.054	331.371
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		74.718	63.682	68.624
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		10.950	6.694	4.489
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	133.125	223.896	152.259
	Sundry Debtors	339.741	132.621	63.449
	Cash & Bank Balances	98.608	76.181	68.459
	Other Current Assets	136.037	0.708	0.000
	Loans & Advances	98.184	94.257	94.858
Total Current Assets		805.695	527.663	379.025
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	219.932	132.522	95.485
	Other Current Liabilities	141.935	18.193	13.826
	Provisions	55.623	5.270	11.456
Total Current Liabilities		417.490	155.985	120.767
Net Current Assets		388.205	371.678	258.258
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		473.873	442.054	331.371

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	594.367	543.588	613.157
		Other Income	23.840	5.254	4.926
		TOTAL (A)	618.207	548.842	618.083
Less	EXPENSES
		Consumption Material Changes Inventories	264.200	244.431	523.317
		Manufacturing Service Cost	34.977	43.905
		Contract Cost	132.953	113.571
		Employee Related Expenses	26.166	20.136
		Administration Selling Other Expenses	61.487	36.258
		Prior Period Items	36.646	6.950
		TOTAL (B)	556.429	465.251	523.317
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		61.778	83.591	94.766
Less	FINANCIAL EXPENSES (D)		38.979	30.370	23.348
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		22.799	53.221	71.418
Less/ Add	DEPRECIATION/ AMORTISATION (F)		14.557	15.556	15.304
	PROFIT BEFORE TAX (E-F) (G)		8.242	37.665	56.114
Less	TAX (H)		4.897	(2.203)	(1.612)
	PROFIT AFTER TAX (G-H) (I)		3.345	39.869	57.726
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		160.165	120.296	70.966
Less	APPROPRIATIONS		8.401	0.000	NA
	BALANCE CARRIED TO THE B/S		155.109	160.165	NA
	Earnings Per Share (Rs.)		0.63	6.28	9.10

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.54	7.26	9.32
Net Profit Margin (PBT/Sales)	(%)	1.39	6.93	9.15
Return on Total Assets (PBT/Total Assets}	(%)	0.93	6.37	12.54
Return on Investment (ROI) (PBT/Networth)		0.04	0.16	0.29
Debt Equity Ratio (Total Liability/Networth)		2.91	1.58	1.33
Current Ratio (Current Asset/Current Liability)		1.93	3.38	3.14

LOCAL AGENCY FURTHER INFORMATION

Note: The company registered office address has been shifted from SMS Houses 1-4, Sector 7, Rohini, Delhi – 110085, India to present address (w.ef 01.02.2011)

YEAR IN RETROSPECT

The Audited Financial Results for the year ended 31st March’2011 as compared to the previous year reflect Company’s Growth and progress whereby Turnover has increased from Rs.550.000 millions to Rs.620.000 millions. The Directors were expecting a turnover of about Rs.1000.000 millions but due to some internal problems at Thane Municipal Commissioner we were not allotted land at Thane, which has effected their targeted turnover. This year Company has decided to write off its prior period Adjustments mainly comprising the provision of MAT for last 6 years, hence the profit figures are not comparable

COMPANY OVERVIEW

The Subject is engaged in the business of development and execution of Engineering, Procurement, Construction and Commissioning (EPCC) in various projects like Water Supply, Sewerage Systems etc for Central/ State Government and various Local Bodies in the country.

CONTINGENT LIABILITIES:-

Rs. in millions

Particular	31.03.2011	31.03.2010
Guarantees issued by the Bank	604.801	414.158
Letter of Credit outstanding	6.470	0.000

FIXED ASSETS

• Land
• Building
• Computer
• Furniture and Fixture
• Pliant and Machinery
• Office Equipment
• Tools and Dies
• Vehicles

WEBSITE DETAILS

COMPANY INFORMATION

Subject has vast experience in the field of public health works such as Water transmission, treatment, storage and distribution; Sewerage system, treatment, recycle and disposal and Industrial effluent collection, treatment and disposal. Ther are proud of establishing the eco-friendly facilities on a turnkey project basis, executing the projects to its final stage of commissioning.

With the expertise and exposure in the field of environmental technologies in India and abroad, incorporation of Subject provided new dimensions and horizon to the creative concepts and innovative professional approaches to our founders, helping us to associate and work with various reckoned firms of private and public sectors which has placed SMS in the selected top group of professionals within a short span of time.

Today at SMS, we design, manufacture undertake consultancy and offer complete turnkey projects from concept to commissioning with expertise.

OUR CAPABILITIES

They proclaim that they are fully equipped with to take up any engineering assignment of a Sewage, Effluent, Waste Water and Water Treatment Plants anywhere in India or abroad right from tender stage, with a pre-tender tie-up, to the execution on turnkey basis of the project on techno-economical basis; being technically and professionally competent.

This proclamation is further substantiated by their impressive achievements in such a short span of life of the company, as reflected in List of Works executed/ in hand.

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.52.73
UK Pound	1	Rs.81.34
Euro	1	Rs.67.10

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--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.