MIRA INFORM REPORT

Report Date :

21.06.2013

IDENTIFICATION DETAILS

Name :	SPUNPIPE AND CONSTRUCTION COMPANY BARODA PRIVATE LIMITED
Registered Office :	A/505-506, Alkapuri Arcde, 5^th Floor, Opposite Hotel Welcome Group, R. C. Dutt Road, Alkapuri, Baroda– 390007, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	28.04.1944
Com. Reg. No.:	04-000350
Capital Investment / Paid-up Capital :	Rs. 3.000 Millions
CIN No.: [Company Identification No.]	U26959GJ1944PTC000350
Legal Form :	Private Limited Liability Company
Line of Business :	Subject mainly engaged in manufacturing of pipes, transformer tanks and also undertakes civil construction activities.
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 840000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There appears some dip in the profitability of the company. However, Net worth of the company is good. 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 condition.

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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BB+ (Long Term Rating)
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation.
Date	30.06.2012

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 :	A/505-506, Alkapuri Arcde, 5^th Floor, Opposite Hotel Welcome, Vadodara-390007, Gujarat, India
Tel. No.:	91-265-2343722/ 2330310
Mobile No.:	91-9825951069/91-9825029219 (Mr. Amit Talati)
Fax No.:	91-265-2330310
E-Mail :	spunpipe@gmail.com
Factory :	Plot No.1 and 2, Sarvoday Sahkari Udhyog Nagar, At And Po. Dattpura, Waghodia, Vadodara-390007, Gujarat, India
Tel. No.:	91-265-9228008198 (Mr. Ashok Vyas)
Mobile No.:	91-9825951069
Fax No.:	Not Available

DIRECTORS

As on: 15.09.2012

Name :	Mr. ArunKumar Vrajlal Talati
Designation :	Managing Director
Address :	403, Aryan Flat 25, Alkapuri, Society, Vadodara-390007, Gujarat, India
Date of Birth/Age :	17.06.1944
Date of Appointment :	20.04.1994
DIN No.:	00107206
Name :	Mr. Amit ArunKumar Talati
Designation :	Whole-time Director
Address :	403, Aryan Flat 25, Alkapuri, Society, Vadodara-390007, Gujarat, India
Date of Birth/Age :	04.11.1968
Date of Appointment :	20.04.1994
DIN No.:	00107348
Name :	Mr. Udit ArunKumar Talati
Designation :	Whole-time Director
Address :	29, Vaikunth, NR. T.B Hospital, Goiri Road, Vadodara-390021, Gujarat, India
Date of Birth/Age :	01.09.1972
Date of Appointment :	20.04.1994
DIN No.:	00107501

MAJOR SHAREHOLDERS

As on: 15.09.2012

Names of Shareholders	No. of Shares
Talati V.M.Dwarkadas (HUF)	650
Savitaben V. Talati	2800
Arunkumar V. Talati	4428
Talali A.V. Muljibhai (HUF)	700
Devilalben A. Talali	1300
Amit A. Talati	8953
Talati A.A. Vrajlal (HUF)	500
Radhika A. Talati	100
Vedant A. Talati	500
Udit A. Talati	8773
Talati U.A. Vrajlal (HUF)	400
Gauri U. Talati	100
Dhruv Uditkumar Talati	390
Shalin U. Talati	390
Jayendra P. Dalal	1
Kantaben Sarabhai Sheth	2
Parshottamdas Motilal Dalal	1
Somchand Chunilal Sheth	1
Pranlal Lallubhai Shah	1
Chandulal Chholalal Shah	5
Uttamchand Manekchand Shah And Naradlal Panachand Vasa	5
TOTAL	30000

Equity Share Break up (Percentage of Total Equity)

As on: 15.09.2012

Category	Percentage
Directors or relatives of Directors	99.91
Other top fifty shareholders	0.09
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject mainly engaged in manufacturing of pipes, transformer tanks and also undertakes civil construction activities.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank Of India Jetalpur Road Branch, Jade Square 1^st Floor,13- RMI Society, Productivity Road,, Vadodara – 390007, Gujarat, India.

· Pragati Sahakari Bank Limited Alembic Colony ; Alembic Road, Vadodara – 390003, Gujarat, India

· UCO Bank Raopura Branch, Baroda-390007, Gujarat, India

· Centurion Bank Limited 5^th Floor, National Plaza, R.C. Dutt Road, Vadodara-390005, Gujarat, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Loans repayable on demand State Bank Of India CC A/C (Secured against Hypo. Of stock/ Debtors and collaterally sercured against mortgage of land and building of Duttapura and personal Gurantee of Directors)	5.937	35.390
Total	5.937	35.390

Banking Relations :
Auditors :
Name :	Chandula M. Shah and Company Chartered Accountants
Address :	601, Samruddhi, Old Gujrat High Court, Near Sattar Taluka Society, Ahmedabad-380014, Gujarat, India
PAN No.:	AAAFC6603M

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
30000	Equity Shares	Rs.100/- each	Rs.3.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
30000	Equity Shares	Rs.100/- each	Rs. 3.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	3.000	3.000
(b) Reserves & Surplus	207.539	186.726
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
(3) Non-current liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	3.140	2.436
(c) Other long term liabilities	1.625	1.625
(d) long-term provisions	0.000	0.000
(4) Current liabilities
(a) Short term borrowings	15.937	45.391
(b) Trade payables	6.557	10.404
(c) Other current liabilities	59.136	30.402
(d) Short-term provisions	0.000	0.350
TOTAL	296.934	280.334
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	46.961	49.100
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.038	0.059
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	19.374	22.174
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	16.511	12.804
(e) Other Non-current assets	0.000	0.000
(2) Current assets
(a) Current investments	0.029	55.184
(b) Inventories	76.128	69.762
(c) Trade receivables	17.945	28.633
(d) Cash and cash equivalents	65.686	11.804
(e) Short-term loans and advances	52.855	29.815
(f) Other current assets	1.407	0.999
TOTAL	296.934	280.334

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		3.000
2] Share Application Money		0.000
3] Reserves & Surplus		131.136
4] (Accumulated Losses)		0.000
NETWORTH		134.136
LOAN FUNDS
1] Secured Loans		51.791
2] Unsecured Loans		3.340
TOTAL BORROWING		55.131
DEFERRED TAX LIABILITIES		2.379
TOTAL		191.646
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		44.832
Capital work-in-progress		1.679
INVESTMENT		31.122
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	111.516
	Sundry Debtors	11.641
	Cash & Bank Balances	19.787
	Other Current Assets	0.000
	Loans & Advances	35.073
Total Current Assets		178.017
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	12.495
	Other Current Liabilities	34.561
	Provisions	16.948
Total Current Liabilities		64.004
Net Current Assets		114.013
MISCELLANEOUS EXPENSES		0.000
TOTAL		191.646

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	381.854	350.277	283.104
		Other Income	7.237	10.169	NA
		TOTAL (A)	389.091	360.446	NA
Less	EXPENSES
		Cost of material consumed	200.868	144.527	NA
		Purchases of stock-in-Trade	0.000	0.000
		Changes in inventories of finished goods WIP and Stock-in-Trade	(13.154)	42.067
		Employee benefits expense	18.518	22.438
		Other expense	141.836	99.557
		Profit from sale of land	0.000	(32.326)
		TOTAL (B)	348.068	276.263	NA
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		41.023	84.183	NA
Less	FINANCIAL EXPENSES (D)		3.834	3.847	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		37.189	80.336	6.820
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.373	5.829	5.502
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		30.816	74.507	1.318
Less	TAX (H)		10.003	18.568	4.386
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		20.813	55.939	22.433
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.082	2.493	3.411
Less	APPROPRIATIONS
		Transfer to General Reserve	17.500	57.000	23.000
		Dividend	0.000	0.350	0.351
	BALANCE CARRIED TO THE B/S		4.395	1.081	2.493
	Earnings Per Share (Rs.)		693.77	1864.63	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.34	15.51	NA
Net Profit Margin (PBT/Sales)	(%)	8.07	21.27	0.47
Return on Total Assets (PBT/Total Assets}	(%)	9.15	25.83	0.63
Return on Investment (ROI) (PBT/Networth)		0.15	0.39	1.55
Debt Equity Ratio (Total Debt/Networth)		0.08	0.24	0.41
Current Ratio (Current Asset/Current Liability)		2.62	2.27	2.78

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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
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	Yes

UNSECURED LOAN:

(Rs. in Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
Loan from Relative From Shareholders	10.000	10.000
Total	10.000	10.000

FIXED ASSETS:

· Free-hold Land

· Building

· Plant and Machinery

· Moulds and Equipments

· Tools and Equipments

· Electrical Installation

· Furniture and Fixture

· Office Equipments

· Laboratory Equipment

· Computer

· Motor and Vehicle

· Cycles

· Movable Equipment

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 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.59.70
UK Pound	1	Rs.92.22
Euro	1	Rs.79.19

INFORMATION DETAILS

Report Prepared by :

RAJ

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	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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

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.