MIRA INFORM REPORT

Report Date :

21.03.2013

IDENTIFICATION DETAILS

Name :	EMAMI CONSTRUCTIONS PRIVATE LIMITED
Registered Office :	687, Anandapur, E.M. Bypass, Anandapur, Kolkata – 700107, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	03.08.2007
Com. Reg. No.:	21-117597
Capital Investment / Paid-up Capital :	Rs. 1.000 Millions
CIN No.: [Company Identification No.]	U70101WB2007PTC117597
PAN No.: [Permanent Account No.]	AABCE8121C
Legal Form :	Private Limited Liability Company
Line of Business :	Real Estate Developer
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (11)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow and delayed
Litigation :	Clear
Comments :	Subject is a subsidiary of ‘Emami Realty Limited’. It is a company having a moderate track record. 40% of the total number of flats of their residential project namely ‘Emami Swanlaket’ undertaken by the company at Kukatpally, Hyderabad has already been booked. It has incurred some loss during 2012. There appear huge external borrowings recorded by the company. The financial strength of the company is weak and vulnerable. However, business is active. Payment terms are slow and delayed. The company can be considered for business dealings on a safe and secured 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 – 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	CARE
Rating	Long term Bank facilities : BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	August 31, 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 :	687, Anandapur, E.M. Bypass, Anandapur, Kolkata – 700107, West Bengal, India
Tel. No.:	91-33-66136247
Fax No.:	91-33-66136249
E-Mail :	info@emamirealty.com
Website :	www.emamirealty.com
Site Office :	Opposite Metro Shopping Mall, Door No. 5-7-70/B, 5-7-72/A, Sangeeth Nagar, Kukatpally, Hyderabad – 500072, Andhra Pradesh, India
Tel. No.:	91-40-30006010-6019/ 30006000
Fax No.:	91-40-30006020
E-Mail :	sales@emamiswanlake.com

DIRECTORS

AS ON 29.09.2012

Name :	Girija Kumar Choudhary
Designation :	Director
Address :	Block JC, 12, Sector III, Salt Lake, Kolkata – 700098, West Bengal, India
Date of Birth/Age :	15.01.1962
Date of Appointment :	29.09.2012
DIN No.:	00821762
Name :	Bimal Kumar Kedia
Designation :	Director
Address :	Plot 398, Road-81, Film Nagar, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh, India
Date of Birth/Age :	02.08.1956
Date of Appointment :	23.10.2008
DIN No.:	01248756
Name :	Mr. Sushil Kumar Kothari
Designation :	Director
Address :	2C, NS Road, Shanti Nagar Colony, Lilauh, Howrah – 711204, West Bengal, India
Date of Birth/Age :	23.07.1971
Date of Appointment :	29.09.2012
DIN No.:	03307536

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Emami Realty Limited, India	99900
Basant Kumar Parakh	100
Total	100000

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Real Estate Developer

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

United Bank of India, Calcutta Branch, 4 N.C. Dutta, Sarani, Kolkata - 700001, West Bengal, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term loans from banks	126.854	251.456
Total	126.854	251.456

Banking Relations :	--
Auditors :
Name :	S K Agrawal and Company Chartered Accountants
Address :	4A, Council House Street, Kolkata – 700001, West Bengal, India
Income-tax PAN of auditor or auditor's firm :	AATFS9977P
Holding company :	Emami Realty Limited [U45200WB2006PLC111894]
Associate :	Anand Rathi Realty Fund

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
200,000	Equity Shares	Rs. 10/- each	Rs. 2.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100,000	Equity Shares	Rs. 10/- each	Rs. 1.000 Million

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		1.000	1.000	1.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(0.268)	(0.176)	(0.124)
NETWORTH		0.732	0.824	0.876
LOAN FUNDS
1] Secured Loans		126.854	251.456	100.889
2] Unsecured Loans		527.746	402.100	330.888
TOTAL BORROWING		654.600	653.556	431.777
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		655.336	654.380	432.653
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.811	1.814	1.185
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.002	0.002	0.002
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	760.047	496.555	322.985
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	99.484	119.325	1.550
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	192.471	98.143	110.618
Total Current Assets		1052.002	714.023	435.153
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	5.930	1.002	0.725
	Other Current Liabilities	392.549	60.457	2.962
	Provisions	0.000	0.000	0.000
Total Current Liabilities		398.479	61.459	3.687
Net Current Assets		653.523	652.564	431.466
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		655.336	654.380	432.653

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL	N.A.	N.A.	N.A.
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	N.A.	N.A.	N.A.
	PROFIT/(LOSS) BEFORE TAX		(0.092)	(0.052)	(0.048)
Less	TAX		0.000	0.000	0.000
	PROFIT/(LOSS) AFTER TAX		(0.092)	(0.052)	(0.048)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(0.176)	(0.124)	(0.076)
	BALANCE CARRIED TO THE B/S		(0.268)	(0.176)	(0.124)
	Earnings/(Loss) Per Share (Rs.)		(0.92)	(0.52)	(0.48)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Return on Total Assets (PBT/Total Assets}	(%)	(0.01)	(0.01)	(0.01)
Return on Investment (ROI) (PBT/Networth)		(0.13)	(0.06)	(0.05)
Debt Equity Ratio (Total Debt/Networth)		894.26	793.15	492.90
Current Ratio (Current Asset/Current Liability)		2.64	11.62	118.02

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	No
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	Yes

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Partly convertible debentures others	103.600	103.600
Loans and advances from related parties	424.146	298.500
Total	527.746	402.100

Note:

The registered address of the company has been shifted from 97A, Southern Avenue, Kolkata - 700029, West Bengal, India to the present w.e.f.10.04.2008

OPERATION

The residential project namely �Emami Swanlake� undertaken by the Company at Kukatpally, Hyderabad has received good responses from buyers and more than 40 percentage of the total no. of flats has already been booked.

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. 54.38
UK Pound	1	Rs. 82.07
Euro	1	Rs. 70.04

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	1
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	--
--CREDIT LINES	1~10	2
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		11

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.