MIRA INFORM REPORT

Report Date :

02.02.2013

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) :	31.03.2012
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
PAN No.: [Permanent Account No.]	AABCH2052B
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 :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 530000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appears some dip in the turnover and profitability of the company. Reserves of the company seems to be insufficient. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Cash Credit D (Suspended)
Rating Explanation	Expected to be in default soon.
Date	03.08.2011

Note : [ Reason for suspended is not available]

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.

.

INFORMATION PARTED BY

Name :	Mr. Mahip Choudhary
Designation :	Management Representation
Contact No.:	91-9414059338
Date :	30.01.2013

LOCATIONS

Registered Office :	A – 95, Suraj Nagar (East), Civil Lines, Jaipur – 302006, Rajasthan, India
Tel. No.:	91-141-2211552
Mobile No.:	91-9414059338 (Mr. Mahip Choudhary)
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 30.09.2011

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
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
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

KEY EXECUTIVES

Name :	Mr. Mahip Choudhary
Designation :	Management Representation

MAJOR SHAREHOLDERS

As on 30.09.2011

Names of Shareholders	No. of Shares
Kamla Singh	2726825
Vijay Narian Katiyar	22600
Chetan Choudhary	2689875
Anita Katiyar	4900
Vivek Katiyar	2768823
Vimal Katiyar	15000
Major Mohan Singh	70000
Moti Ram	10500
Rajesh Jakhad	10000
Manphool Ji	10000
Amar Godara	10000
Rajendra Ji	10000
Mangesh Ji	10384
Jaswant Jakhad	10000
Surendra Godara	10000
Ram Pratap	10000
Arun Ji	11325
S.S Gujar	10000
Meera Choudhary	2500
Vishal Kilak	9668
Mahaveer Ji	5600
Kulveer Ji	2000
Ram Niwas ji	5960
Shiv Ram Ji	4000
Prakash Latiyal	6300
Shob Raj Latiyal	4500
Ganesh Ji Jakhad	7200
Chaju lal Kumawat	3000
Mohan lal	10000
Vimal Katiyar	6000
Khiyaran Ram Ji	3000
Mewa Ram Ji`	3000
Aidan Jangid	10
Chandra Kumar	10
Bhaguram	10
Smt. Meera Choudhary	10
Chena Ram S/o Ramdin	1000
Chena Ram S/o Narsingh	1000
Ram Kishan	1000
Purkha Ram	1500
Ramesh Choudhary	2000
Rameshwar lal	1000
Rampal Choudhary	1000
Jivan Ram S/o Ramdin	1000
Mangala Ram	1500
Satyanarain	2000
Shiv	2000
Sukh Ram	1000
Ugma Ram	1000
TOTAL	8500000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Directors or relatives of Directors	96.36
Other top fifty shareholders	3.64
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 o Sprinkler Irrigation o Drip Irrigation
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

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	31.03.2012 (Rs. in Millions)
Loans taken for vehicles	2.767
Term loans from others	27.591
Working capital loans from banks	193.242
Total	223.600
Unsecured Loan
Other loans and advances (Unsecured borrowings)	36.326
Total	36.326
Secured Loan	31.03.2011 (Rs. in Millions)
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)
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
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)
Total	228.906
Unsecured Loan
Term Loan from bank and Financial Institutions	105.646
From Directors and Shares Holders and Bodies Corporate
Total	105.646

Banking Relations :	-----
Auditors :
Name :	Vishnu Khandelwal and Company Chartered Accountants
Address :	449, Bandri Ka Nasik, Jaipur – 302002, Rajasthan, India
PAN No.:	AFFPK9203D

CAPITAL STRUCTURE

As on 31.03.2012

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
8500000	Equity Shares	Rs.10/- each	Rs.85.000 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		85.000	85.000	19.183
2] Share Application Money		0.000	0.760	2.360
3] Reserves & Surplus		47.469	41.090	25.980
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		132.469	126.850	47.523
LOAN FUNDS
1] Secured Loans		223.600	228.906	128.333
2] Unsecured Loans		36.326	105.646	92.270
TOTAL BORROWING		259.926	334.552	220.603
DEFERRED TAX LIABILITIES		6.650	5.917	4.860
TOTAL		399.045	467.319	272.986
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		60.531	62.085	55.751
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	83.898	99.418	65.576
	Sundry Debtors	220.001	347.810	93.042
	Cash & Bank Balances	26.422	26.024	23.680
	Other Current Assets	0.008	0.000	0.000
	Loans & Advances	77.008	66.606	56.279
Total Current Assets		407.337	539.858	238.577
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	58.309	52.869	12.254
	Other Current Liabilities	8.760	77.180	0.000
	Provisions	1.754	4.591	9.112
Total Current Liabilities		68.823	134.640	21.366
Net Current Assets		338.514	405.218	217.211
MISCELLANEOUS EXPENSES		0.000	0.016	0.024
TOTAL		399.045	467.319	272.986

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income		1305.763	615.969
		Other Income		2.639	2.125
		TOTAL (A)	1284.488	1308.402	618.094
Less	EXPENSES
		Increase/ Decrease in Stock		(10.476)	(40.545)
		Purchases		737.431	372.346
		Cost of Material Sold		513.976	224.715
		Administrative and Establishment Expenses		9.481	14.705
		TOTAL (B)	1275.577 (Including Depreciation and Finance)	1250.412	571.221
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			57.990	46.873
Less	FINANCIAL EXPENSES (D)			36.826	27.954
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			21.164	18.919
Less/ Add	DEPRECIATION/ AMORTISATION (F)			3.691	3.218
	PROFIT BEFORE TAX (E-F) (G)		8.911	17.473	15.701
Less	TAX (I)		2.533	6.851	4.873
	PROFIT AFTER TAX (G-I) (J)		6.378	10.622	10.828
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		39.471	24.360	18.020
Less	APPROPRIATIONS
		Proposed Dividend	NA	0.000	3.836
		Dividend Distribution Tax	NA	0.000	0.652
		Provision for Dividend	NA	(3.837)	0.000
		Provision for Dividend Tax	NA	(0.652)	0.000
		Excess depreciation written back	NA	0.000	0.000
	BALANCE CARRIED TO THE B/S		NA	39.471	24.360
	Earnings Per Share (Rs.)		0.75	1.25	5.64

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.50	0.81	1.75
Net Profit Margin (PBT/Sales)	(%)	NA	1.33	2.55
Return on Total Assets (PBT/Total Assets}	(%)	1.90	2.90	5.33
Return on Investment (ROI) (PBT/Networth)		0.07	0.13	0.33
Debt Equity Ratio (Total Debt/Networth)		1.96	2.64	4.64
Current Ratio (Current Asset/Current Liability)		5.92	4.01	11.16

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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 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	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 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	No
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	Yes

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U25203RJ2000PTC016489
Name of the company	H.M. PIPES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	A – 95, Suraj Nagar (East), Civil Lines, Jaipur – 302006, Rajasthan, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10262429
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	Andhra bank, Ashok Marg, C-scheme, Jaipur – 302001, Rajasthan, India
Nature of instrument creating charge	1. Sanction Letter 2. Reduction letter issued by Andhra Bank.
Date of instrument Creating the charge	10/04/2012
Amount secured by the charge	Rs. 250.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Open CC (Adhoc):- @BR + 4.00% + 2.00% i.e.15.50% p.a. for this Adhoc Limit only with monthly rest subject to Change from time to time Terms of Repayment Repayable on Demand. Margin 25% on Stock 50 % on Book Debts Extent and Operation of the charge The Charge will operate as First Charge to the Extent of Rs. 250.000 Millions to secure following Limits now sanctioned to the Company by the Bank:- Open cash credit- Rs.190.000 Millions Bank Guarantee- Rs.60.000 Millions Total-Rs.250.000 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	· First charge by way of hypothecation of all stocks of raw material, semi finished and finished goods, stock in process consumable goods, stores and spares, · All present and future book debts, All present and Future movable plant, machinery and all present and future current and fixed assets of the company. · As a security to Cover Overall Limits of Rs. 250.000 Millions reduced to the Company by the bank. · Equitable Mortgage is extended on immovable property of the company comprising factory land and building constructed or to be constructed, Fixed plant and machinery, · Erected or to be erected both present and future situated at Plot No. G 1/47 and 48 RIICO Industrial Area, Bagru, EXT phase II, Ajmer Road, Jaipur as a security to cover Overall Limits of Rs. 250.000 Millions reduced to the Company by the bank.
Particulars of the present modification	By this Modi. Overall Limits has been reduced from Rs.310.000 Millions to Rs. 250.000 Millions but all securities of current ,fixed and misc. fixed assets is continued. EM is also Extended on the immovable Property of the Company situated at Plot No. G 1/47 and 48 RIICO Industrial Area, Bagru, EXT phase II, Ajmer Road, Jaipur to secure the overall reduced limits of Rs. 250.000 Millions. Detail of the Limits are:- Open CC- Rs.190.000 Millions BG- Rs.60.000 Millions Total:- Rs.250.000 Millions.

FIXED ASSETS

· Land

· Factory Building

· Plant and Machinery

· Office Equipment

· Furniture and Fixture

· Vehicle

· Computer

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 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.53.32
UK Pound	1	Rs.84.60
Euro	1	Rs.72.63

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	SPN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		29

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.