MIRA INFORM REPORT

Report Date :

19.04.2013

IDENTIFICATION DETAILS

Name :	RAO CONSTRUCTIONS PRIVATE LIMITED
Registered Office :	104, Manas Complex, Satellite Road, Ahmedabad – 380 015, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	10.10.1991
Com. Reg. No.:	04-016397
Capital Investment / Paid-up Capital :	Rs.3.744 millions
CIN No.: [Company Identification No.]	U45201GJ1991PTC016397
Legal Form :	Private Limited Liability Company
Line of Business :	Construction Activity
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 229000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Trade relations are reported as fair. Business is active. Payments are reported to be slow but 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	104, Manas Complex, Satellite Road, Ahmedabad – 380 015, Gujarat, India
Tel. No.:	91-79-26922384
Fax No.:	Not Available
E-Mail :	rao.cpl@yahoo.co.in

DIRECTORS

As on 29.09.2012

Name :	Mr. Navnitbhai Shamaldas Brahmbhatt
Designation :	Director
Address :	351, Satyagrah Chhavani, Lane No.18, Thaltej, Satellite Road, Ahmedabad - 380 054, Gujarat, India
Date of Birth/Age :	10.02.1938
Date of Appointment :	10.10.1991
DIN No.:	00184302
Name :	Mr. Saurabhkumar Navnitbhai Brahmbhatt
Designation :	Director
Address :	351, Satyagrah Chhavani, Lane No.18, Thaltej, Satellite Road, Ahmedabad - 380 054, Gujarat, India
Date of Birth/Age :	10.06.1963
Date of Appointment :	10.10.1991
DIN No.:	00184368
Name :	Mr. Sandipkumar Navnitbhai Brahmbhatt
Designation :	Director
Address :	351, Satyagrah Chhavani, Lane No.18, Thaltej, Satellite Road, Ahmedabad - 380 054, Gujarat, India
Date of Birth/Age :	11.02.1971
Date of Appointment :	11.11.1996
DIN No.:	00184440

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Navnitbhai Shamaldas Brahmbhatt	190370
Saurabhkumar Navnitbhai Brahmbhatt	18810
Sandipkumar Navnitbhai Brahmbhatt	53310
Ramaben Navnitbhai Brahmbhatt	73600
Meenaben Saurabhbhai Brahmbhatt	6100
Sheetalben Sandipkumar Brahmbhatt	100
Sheetalben Navnitbhai Brahmbhatt	32100
Naliniben Bhanuprasad Rao	10
Total	374400

As on 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Construction Activity

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• State Bank of India, Special Commercial Branch, Gandhigram, Opposite Gandhgram Railway Station, Ahmedabad – 380 009, Gujarat, India
• State Bank of India, Laghu Udhyog Branch, Opposite Gandhgram Railway Station, Gandhigram, Ahmedabad – 380 009, Gujarat, India
• HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loans
From Banks	12.551	1.351
From Others	3.407	7.336
Less: Current Maturities of Long Term Debt	(6.429)	(5.132)
SHORT TERM BORROWINGS
Loans Repayable on Demand from Bank	43.208	42.645
Total	52.737	46.200

Notes:

Long term Borrowings:

Details of Security:

a) Term Loan from HDFC Bank Limited of Rs.12.403 millions (Previous Year Nil) is secured by hypothecation of Tippers machine financed by said Bank.

b) Term Loan from Reliance Capital Limited of Rs.2.154 millions (Previous Year Rs.4.637 millions) is secured by hypothecation of Tippers machine financed by said Company.

c) Term Loan from Magma Fincorp Limited of Rs.1.253 millions (Previous Year Rs.2.387 millions) is secured by hypothecation of Tippers machine financed by said Company.

d) Term Loan from Sundaram Finance Limited of (Previous Year Rs.0.311 million) is secured by hypothecation of Tippers machine financed by said Company.

e) Term Loan from HDFC Bank Limited of Rs.0.148 million (Previous Year Rs.0.424 million) is secured by hypothecation of Toyota Innova financed by said Bank.

f) Term Loan from State Bank of India Limited of (Previous Year Rs.0.927 million) is secured by hypothecation of Chevrolet Cruze financed by said Bank.

Short Term Borrowings:

Details of Security:

Cash Credit from State Bank of India is secured by hypothecation of existing / future stocks, book debts, plant and machinery, other movable assets and collaterally secured by equitable mortgage of residential property of director, equitable mortgage of land and building of associate concern, assignment of LIC Policy of one of the directors of the company together with personal guarantee of directors and corporate guarantee of associate concerns.

Banking Relations :	--
Financial Institutions :	Sundaram Finance Limited Magma Fincorp Limited Reliance Capital Limited
Auditors :
Name :	Chandrakant K. Thakkar and Company Chartered Accountants
Address :	7^th Floor, Devpath Building, B/H Supermall, Near Lal Bunglow Off C.G. Road Gulbai, Ellisbridge, Ahmedabad – 380 006, Gujarat, India
Tel. No.:	91-79-26430036-37/ 26466979
E-Mail :	ckthakkar06@gmail.com
Income-tax PAN of auditor or auditor's firm :	ABIPT2748P
Associates :	Vijay Quarry Works Bhavani Construction Company Saurabh Builders

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
374400	Equity Shares	Rs.10/- each	Rs.3.744 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		3.744	3.744	3.744
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		53.559	49.225	46.501
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		57.303	52.969	50.245
LOAN FUNDS
1] Secured Loans		52.737	46.200	45.191
2] Unsecured Loans		10.542	6.314	5.052
TOTAL BORROWING		63.279	52.514	50.243
DEFERRED TAX LIABILITIES		0.000	0.000	0.590
TOTAL		120.582	105.483	101.078
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		27.878	19.766	24.711
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.548	0.153	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	43.534	32.525	13.777
	Sundry Debtors	3.498	7.993	1.908
	Cash & Bank Balances	23.374	24.522	25.278
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	40.899	40.835	61.209
Total Current Assets		111.305	105.875	102.172
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.784	10.648	20.616
	Other Current Liabilities	7.071	5.861	0.548
	Provisions	4.294	3.802	4.641
Total Current Liabilities		19.149	20.311	25.805
Net Current Assets		92.156	85.564	76.367
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		120.582	105.483	101.078

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	NA	218.549	206.065
		Other Income
		TOTAL	NA	218.549	206.065
Less	EXPENSES
		Office Expenses	NA	208.624	196.048
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	208.624	196.048
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		11.666	9.925	10.017
Less/ Add	DEPRECIATION/ AMORTISATION		5.393	5.983	2.516
	PROFIT BEFORE TAX		6.273	3.942	7.501
Less	TAX		1.938	1.219	2.260
	PROFIT AFTER TAX		4.335	2.723	5.241
	Earnings Per Share (Rs.)		11.58	7.27	14.00

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	1.25	2.54
Return on Total Assets (PBT/Total Assets}	(%)	4.51	3.14	5.91
Return on Investment (ROI) (PBT/Networth)		0.11	0.07	0.15
Debt Equity Ratio (Total Debt/Networth)		1.10	0.99	1.00
Current Ratio (Current Asset/Current Liability)		5.81	5.21	3.96

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	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last two years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter involved in	--
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
31) Date of Birth of Proprietor/Partner/Director, if available	Yes
32) PAN of Proprietor/Partner/Director, if available	No
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	No

Unsecured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
From Related Party	10.542	6.314
Total	10.542	6.314

OPERATIONS:

During the year, the Company has earned net profit of Rs.4.335 millions (previous year Rs.2.723 millions) after providing Depreciation of Rs.5.393 millions (previous year Rs.5.983 millions) and Provision for Current tax amounting to Rs.2.333 millions (previous year Rs.1.961 millions), Provision for Deferred Tax of Rs.(0.395) million previous year Rs.(0.742) million.

CONTINGENT LIABILITY:

Particulars	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
From Related Party	31.650	15.675

FIXED ASSETS:

· Plant and Machinery

· Computer

· Furniture and Fixtures

· Office Equipment

· Vehicles

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 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.54.03
UK Pound	1	Rs.82.43
Euro	1	Rs.70.49

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.