MIRA INFORM REPORT

Report Date :

08.06.2012

IDENTIFICATION DETAILS

Name :	HI–REACH CONSTRUCTION EQUIPMENTS PRIVATE LIMITED
Registered Office :	D-147, Okhla Industrial Area, Phase-1, New Delhi - 110020
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	23.09.1992
Com. Reg. No.:	55-050404
Capital Investment/ Paid-up Capital:	Rs.9.092 Millions
CIN No.: [Company Identification No.]	U74899DL1992PTC050404
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Marketing of Scaffolding and Formwork Equipments.
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 36000
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

LOCATIONS

Registered Office/ Corporate Office :	D-147, Okhla Industrial Area, Phase-1, New Delhi – 110020, India
Tel. No.:	91-11-46619100/ 41708975/ 76
Fax No.:	91-11-26371085/ 46619120
E-Mail :	bajajas@hotmail.com sales@hireach.co.in hireach@airtelmail.in ca_ashutoshsaxena@yahoo.co.in
Website :	www.hireach.co.in
Factory :	Unit No-1 S-59, Site UPSIDC Sheds, Sahibabad, Ghaziabad – 201005, Uttar Pradesh, India
Tel. No.:	91-120-3292514/ 3292040/ 2895729

DIRECTORS

As on: 29.09.2011

Name :

Mr. Sanjay Mohan Kaul

Designation :

Director

Address :

F-26, Sector-39, Gautam Budh Nagar, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

12.12.1960

Date of Appointment :

23.09.1992

DIN No.:

00160969

Other Directorships :

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	U74899DL1992PTC050404	HI-REACH CONSTRUCTION EQUIPMENTS PRIVATE LIMITED	Director	23-09-92	23-09-92	-	Active	NO
2	U74899DL1995PTC074709	HI-REACH EXIM PRIVATE LIMITED	Director	18-12-95	18-12-95	-	Active	NO

Name :

Mr. Brij Mohan

Designation :

Director

Address :

F-26, Sector-39, Gautam Budh Nagar, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

27.08.1934

Date of Appointment :

19.01.2002

DIN No.:

00500079

Other Directorships :

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	U74899DL1992PTC050404	HI-REACH CONSTRUCTION EQUIPMENTS PRIVATE LIMITED	Director	19-01-02	19-01-02	-	Active	NO
2	U74899DL1995PTC074709	HI-REACH EXIM PRIVATE LIMITED	Director	19-01-02	19-01-02	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2011

Names of Shareholders	No. of Shares
Sanjay Mohan Kaul	85320
Brij Mohan	100
Ashwani Tiku	4000
Sunil Lala	1500
Total	90920

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2011

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

BUSINESS DETAILS

Line of Business :	Manufacturer and Marketing of Scaffolding and Formwork Equipments.
Products :	· Scaffoldings · Beam Clamps · Column Clamps · Slab Decking · Wall Formwork · Mobile Towers · Road Forms · Access Straircase · Accessories · Certification

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· ICICI Bank Limited, Landmark Race Course Circle, Alkapuri, Baroda - 390015,Gujarat, India

· Punjab National Bank, Maharani Bagh, New Delhi - 110065, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Working Capital Loan From Bank (Working capital loan from bank are secured by hypothecation of inventories, books debts and other receivable and also charge on immovable Properties of the company)	34.098	0.000
Total	34.098	0.000
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
From Directors Share Holder	0.858	0.858
Total	0.858	0.858

Banking Relations :	--
Auditors :
Name :	S P Marwaha and Company Chartered Accountants
Address :	31, Basement, Siri Fort Road, New Delhi – 110049, India
PAN No.:	AAMPS8738F

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Share	Rs.100/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
90920	Equity Share	Rs.100/- each	Rs.9.092 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		9.092	9.092	9.092
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		72.860	61.687	57.803
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		81.952	70.779	66.895
LOAN FUNDS
1] Secured Loans		34.098	0.000	38.650
2] Unsecured Loans		0.858	0.858	4.321
TOTAL BORROWING		34.956	0.858	42.971
DEFERRED TAX LIABILITIES		2.343	2.332	2.251
TOTAL		119.251	73.969	112.117
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		26.176	27.662	29.214
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.003
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.342	27.041	32.063
	Sundry Debtors	120.587	47.456	88.620
	Cash & Bank Balances	11.571	17.023	0.574
	Other Current Assets	5.025	9.553	1.156
	Loans & Advances	0.000	0.000	13.976
Total Current Assets		148.525	101.073	136.389
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	42.401	29.290	22.013
	Other Current Liabilities	6.277	23.383	25.650
	Provisions	6.772	2.093	5.838
Total Current Liabilities		55.450	54.766	53.501
Net Current Assets		93.075	46.307	82.888
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
DEFERRED REVENUE EXPENDITURE		0.000	0.000	0.012
TOTAL		119.251	73.969	112.117

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	340.147	168.517	422.067
		Rental Income	0.112	2.503	2.308
		Other Income	0.058	0.204	0.223
		TOTAL	340.317	171.224	424.598
Less	EXPENSES
		Direct Manufacturing Cost	304.314	150.390	376.272
		Financial Administrative and Other Expenses	17.313	13.824	30.079
		TOTAL	321.627	164.214	406.351
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		18.690	7.010	18.247
Less/ Add	DEPRECIATION/ AMORTISATION		1.534	1.571	1.560
	PROFIT BEFORE TAX		17.156	5.439	16.687
Less	TAX		5.982	1.555	5.692
	PROFIT AFTER TAX		11.174	3.884	10.995
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		60.647	56.763	45.817
Less	EARLIER YEAR ADJUSTMENT		0.000	0.000	0.049
	BALANCE CARRIED TO THE B/S		71.820	60.647	56.763
	Earnings Per Share (Rs.)		122.90	42.72	121.00

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.28	2.27	2.59
Net Profit Margin (PBT/Sales)	(%)	5.04	3.29	3.95
Return on Total Assets (PBT/Total Assets}	(%)	9.82	4.22	10.08
Return on Investment (ROI) (PBT/Networth)		0.21	0.08	0.25
Debt Equity Ratio (Total Liability/Networth)		1.10	0.79	1.44
Current Ratio (Current Asset/Current Liability)		2.68	1.85	5.55

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Construction of the firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of contact person	No
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	Yes
Details of sister concerns	No
Major Suppliers	No
Major Customers	No
Payment Terms	No
Export / Import Details [If Applicable]	No
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U74899DL1992PTC050404
Name of the company	HI-REACH CONSTRUCTION EQUIPMENTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	D-147, Okhla Industrial Area, Phase-1, New Delhi – 110020, India E-mail: bajajas@hotmail.com
This form is for	Creation of charge
Type of charge	· Immovable property · Any interest in immovable property
Particular of charge holder	ICICI Bank Limited, Landmarkrace Cource Circle, Alkapuri, Baroda - 390015,Gujarat, India E-mail: shikha.gupta@icicibank.com
Nature of instrument creating charge	ICICI Bank home loan agreement and sanction letter for facility
Date of instrument Creating the charge	31.01.2012
Amount secured by the charge	Rs.95.900 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 12.25% Floating rate of interest as on date (i base of 10.00% + margin of 2.25%) Terms of Repayment Rs.95.900 Millions will be repaid in EMIs for 12O Months (Rs.1.390 payable monthly) subject to change in I-base Margin As per sanction letter attached Extent and Operation of the charge First and exclusive charge on property at N 3, Sector - 18, Noida Others Personal guarantee of the directors
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First and exclusive charge on property at N 3, Sector - 18, Noida

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Vehicle

· Computer

· Fire Fighting Equipment

AS PER WEBSITE DETAILS:

PROFILE

Subject Specializes in manufacture and marketing of wide range of Scaffolding and Formwork Equipments. The company by its resource and understanding of the needs of Indian construction industry incorporates many well proven and latest cost effective innovations used by all the leading construction companies.

Company also undertakes designing and manufacturing of tailor made formwork to suit specific individual requirement. There services include close interaction with client during different stages of tendering, planning and execution. The provision of detailed estimate, technical drawings along with quotation can be provided if so desired.

They look forward to valuable suggestion and comments from there patrons. Wherever possible they shall try to incorporate the same for upgradation and improvement of the products.

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.55.15
UK Pound	1	Rs.85.22
Euro	1	Rs.69.24

INFORMATION DETAILS

Report Prepared by :

VRN

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	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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		48

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.