MIRA INFORM REPORT

Report Date :

08.05.2013

IDENTIFICATION DETAILS

Name :	PRATIBHA PIPES AND STRUCTURAL LIMITED
Registered Office :	101, Usha Kamal, 574, Chembur Naka, Chembur, Mumbai – 400071, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	22.05.1996
Com. Reg. No.:	11-099745
Capital Investment / Paid-up Capital :	Rs. 21.021 Millions
CIN No.: [Company Identification No.]	U29110MH1996PLC099745
TAN No.: [Tax Deduction & Collection Account No.]	MUMP08930F
PAN No.: [Permanent Account No.]	AAACP4898A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing and Sale of Heavy walled Submerged Arc Welded Steel Pipes and Erectioning and Commissioning of the Custom Built up Structures
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 23600
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a flagship company “Pratibha Group”. It is a well established company having a satisfactory track record. These appears slight dip in the profitability during 2011-2012. However, general financial position is good. The subject gets strong support from its holding company. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal 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 – 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Lon Term Rating : A-
Rating Explanation	Having adequate degree of safety regarding timely securing of financial obligation. It carry low credit risk.
Date	November 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.

INFORMATION PARTED BY (GENERAL INFORMATION)

Name :	Ms. Mansi Nisar
Designation :	Accounts Department
Contact No.:	91-22-42179999
Date :	30.04.2013

LOCATIONS

Registered Office :	101, Usha Kamal, 574, Chembur Naka, Chembur, Mumbai – 400071, Maharashtra, India
Tel. No.:	91-22-39559999
Fax No.:	91-22-39559900
E-Mail :	info@pratibhaeng.com rohit.katyal@capacite.in
Website :	www.pratibhaeng.com
Corporate Office/ Head Office :	603 Shrikant Chambers, Phase-I, Adjacent to R.K Studio, Sion Trombay Road, Chembur, Mumbai-400071, Maharashtra, India
Tel. No.:	91-22-42179999
Fax No.:	91-22-42179900
Email :	info@pratibhaeng.com
Branch Office 1 :	A-503, Sandutt Chamber, 1/5 Bhikaji Cama Place, New Delhi-110066, India
Tel No :	91-11-40590778/40590779
Branch Office 2 :	Vishnu Acharya Niwas, Journalist Colony, Road No 3, Banjara Hills, Hyderabad-34 Andhra Pradesh, India
Factory 1 :	Kondla Taluka Wada, District Thane, Off Bhiwandi Wada Highway, Mumbai, Maharashtra, India
Factory 2 :	Plot No 288/B, Wada Manor Road, Taluka Wada, District Thane, Off Bhiwandi Wada Highway, Mumbai, Maharashtra, India

DIRECTORS

As on : 30.08.2011

Name :	Mr. Ajit Bhagwan kulkarni
Designation :	Managing Director
Address :	501, Usha Kamal, 574, Chembur Naka, Chembur, Mumbai – 400 071, Maharashtra, India
Date of Birth/Age :	06.02.1958
Qualification :	Under Graduate
Date of Appointment :	22.05.1996
DIN No.:	00220578
Name :	Mrs. Usha Bhagwan Kulkarni
Designation :	Director
Address :	101, Usha Kamal, 574, Chembur Naka, Chembur, Mumbai – 400 071, Maharashtra, India
Date of Birth/Age :	05.05.1935
Qualification :	B.A.
Date of Appointment :	20.07.1997
DIN No.:	00220531
Name :	Mr. Vinayak Bhagwan Kulkarni
Designation :	Director
Address :	301, Usha Kamal, 574, Chembur Naka, Chembur, Mumbai – 400071, Maharashtra, India
Date of Birth/Age :	24.04.1947
Qualification :	B.Sc.
Date of Appointment :	31.03.2006
DIN No.:	00226077
Name :	Mr. Rohit Ramnath Katyal
Designation :	Director
Address :	B-23, Eden Garden, Near R. k. Studio, Deonar, Mumbai – 400088, Maharashtra, India
Date of Birth/Age :	09.01.1971
Qualification :	B.Com
Date of Appointment :	01.11.1998
DIN No.:	00252944
Name :	Mr. Rahul Ramnath Katyal
Designation :	Director
Address :	B/4, Aarina park C.H.S. mankhurd, Mumbai – 400088, Maharashtra, India
Date of Birth/Age :	01.03.1975
Qualification :	B.Com
Date of Appointment :	16.02.2006
DIN No.:	00253046
Name :	Mr. Ajay Vinayak Kulkrani
Designation :	Whole-time Director
Address :	301, Usha Kamal, 574, Chembur Naka, Chembur, Mumbai – 400071, Maharashtra, India
Date of Birth/Age :	11.08.1979
Qualification :	B.Com
Date of Appointment :	14.07.2011
DIN No.:	03461373

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on ; 30.08.2011

Names of Shareholders	No. of Shares
Usha B. Kulkarni Jointly Ajit B. Kulkarni	233300
Ajit B. Kulkarni Jointly with Samidha A. Kulkarni	661500
Samidha A. Kulkarni	66500
Ramdas D. Kulkami	15000
Radha R Kulkami	12500
Shyam R Kulkami	2500
Sunanda D. Kulkami	143700
Vinayak H. Kulkami Jointly Vandana V. Kulkami	311350
Vandana Vinayak Kulkami	10000
Sanjay Vinayak Kulkami	4000
Rohit Ramnath Katyal Jointly with Sakshi R. Kanyal	44350
Sakshi R. Kanyal Jointly with Rohit Ramnath Katyal	44350
Renu R Katyal Jointly with Rohit Katyal Jointly with Sakahi Katyal	56125
Rahul Ramnath Katval Jointly with Nidhi Rahul Katyal	33500
Renu R Katyal, Rahul Ramnath Katval Jointly with Nidhi Rahul Katyal	111325
One Metro India Private Limited, India	352112
Total	2102112

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	16.75
Directors or relatives of Directors	83.25
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing and Sale of Heavy walled Submerged Arc Welded Steel Pipes and Erectioning and Commissioning of the Custom Built up Structures
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
M S Pipes	MT	Not Available	108.00	23.23
Structure	MT	Not Available	108.00	9.78

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

400 (Approximately)

Bankers :

· Corporation Bank, IFB Branch, 104, Bharat House, Mumbai Samachar Marg, Fort, Mumbai – 400023, Maharashtra, India

· Axis Bank Limited, Axis House, Bombay Dyeing Mills Compound, P B Marg, Worli, Mumbai – 400025, Maharashtra, India

Facilities :

Rs in Millions

SECURED LOAN	31.03.2012	31.03.2011
Foreign Currency Loans from Banks
Rupee Loans	274.635	507.410
From Banks	266.186	343.647
From Banks	304.299	394.740
From Financial Institutes	--	1.049
Total	845.120	1246.846

Note :

1. Foriegn Currency Loans are repayable in 2-6 Years from the date of loans. Above loans are secured by first charges on specific assets financed by the lender. Further, Loans are guaranted by the personal guarantees of promoters/directors of the company.
2. Rupee loans from Banks are repayable in 3 Years to 5 Years from the date of loan. Above loans are secured by first charges on specific assets financed by the lender. Further, loans are guaranted by the personal guarantees of promoters/directors of the company.
3. rupee term loan taken from various Banks are secured against 1) First charge by hypothecation of current assets (other than those specifically charged to other banks), namely stock of rawmaterials, work-in-progree and receivables, 2) First charge on the gross block (other than those specifically charged to other Banks) and 3) Personal guarantees of promoter Directors of the company.

Auditors :
Name :	Jayesh Sanghrajka and Company Chartered Accountants
Address :	405-408, Hind Rajasthan Centre, D. S. Phalke Road, Dadar (East), Mumbai – 400014, Maharashtra, India
PAN No.:	AADFJ9072C
Subsidiaries :	· Pratibha Structbuild Private Limited, India
Associates :	· Pratibha Industries Limited, India · Muktangan Developers Private Limited, India · Pratibha Shareholding Private Limited, India · Prime Infrapark Private Limited, India · Pratibha Infrastructure Private Limited, India · Elegant Infrastructure and Real Estate Private Limited, India · Bhopal Sanchi Highways Private Limited, India · Pratibha Developers Private Limited, India · Rohit Management Services · Rahul Associates

CAPITAL STRUCTURE

As on : 28.09.2012

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
2102112	Equity Shares	Rs.10/- each	Rs.21.021 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		21.021	21.021	21.021
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		570.129	519.996	418.367
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		591.150	541.017	439.388
LOAN FUNDS
1] Secured Loans		845.120	1246.846	447.082
2] Unsecured Loans		48.500	0.000	0.000
TOTAL BORROWING		893.620	1246.846	447.082
DEFERRED TAX LIABILITIES		77.257	64.446	34.455
TOTAL		1562.027	1852.309	969.811
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		931.192	1003.169	427.641
Capital work-in-progress		284.153	243.821	92.090
INVESTMENT		1.634	1.321	1.226
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	336.431	485.729	419.644
	Sundry Debtors	333.254	346.902	369.173
	Cash & Bank Balances	40.503	130.997	31.158
	Other Current Assets	12.195	0.594	0.000
	Loans & Advances	212.387	271.590	342.961
Total Current Assets		934.770	1235.812	1162.936
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	344.358	387.136	472.921
	Other Current Liabilities	229.290	220.476	197.364
	Provisions	16.074	24.202	43.797
Total Current Liabilities		589.722	631.814	714.082
Net Current Assets		345.048	603.998	448.854
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1562.027	1852.309	969.811

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1673.300	2193.806	1525.215
		Other Income	22.710	14.547	16.271
		TOTAL	1696.010	2208.353	1541.486
Less	EXPENSES
		Cost of Materials Consumed	1043.303	1390.819	1040.354
		Changes in Inventories	67.779	24.662	0.000
		Manufacturing Service Cost	0.000	0.000	252.348
		Employee Related expenses	91.054	91.109	20.092
		Other Expenses	300.905	511.281	0.000
		Administration expenses	0.000	0.000	71.055
		TOTAL	1503.041	2017.871	1383.849
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		192.969	190.482	157.637
Less	FINANCIAL EXPENSES		72.975	48.700	67.171
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		119.994	141.782	90.466
Less/ Add	DEPRECIATION/ AMORTISATION		38.809	34.524	19.811
Less	PRIOR PERIOD ITEMS		2.500	3.744	0.177
	PROFIT BEFORE TAX		78.685	103.514	70.478
Less	TAX		28.552	50.771	19.342
	PROFIT AFTER TAX		50.133	52.743	51.136
	EARNINGS IN FOREIGN CURRENCY
		Export Sale	66.451	331.638	138.717
	TOTAL EARNINGS		66.451	331.638	138.717
	IMPORTS
		Raw Materials	0.000	312.639	12.229
		Capital Goods	22.540	74.818	1.530
		Cunsumable	2.326	0.000	0.861
	TOTAL IMPORTS		24.866	387.457	14.620
	Earnings Per Share (Rs.)
	Basic		23.85	25.09	24.33
	Diluted		23.85	25.09	24.33

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.96	2.39	3.32
Net Profit Margin (PBT/Sales)	(%)	4.70	4.72	4.62
Return on Total Assets (PBT/Total Assets}	(%)	4.22	4.62	4.43
Return on Investment (ROI) (PBT/Networth)		0.13	0.19	0.16
Debt Equity Ratio (Total Debt /Networth)		1.51	2.30	1.02
Current Ratio (Current Asset/Current Liability)		1.58	1.96	1.63

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 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	Yes
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	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

COMPANY BACKGROUND :

The company is engaged in the business of Manufacturing and Sale of Heavy walled Submerged Arc Welded Steel Pipes and Erectioning and Commissioning of the Custom Built up Structures. The Manufacturing facilities of the company have been accredited with ISO 9001-2000 certification from BVQI. The plant is licensed with API Grade 2B from American Petroleum Institute for manufacture of heavy walled structural pipes. IS 3589 for water pipes, CCOE from controller of explosives, Nagpur, India and many more. The manufacturing facilities are approved by practically all leading national and international third party inspection agencies like EIL, Bechtel, BVI, SGS, CEIL, RITEL, LRIS and many more.

UNSECURED LOANS :

Rs in Millions

Particulars	31.03.2012	31.03.2011
Loans and advance from Related party	48.500	0.000
Total	48.500	0.000

FIXED ASSETS:

· Land

· Office Premises

· Factory Building

· Equipments

· Furniture and Fixtures

· Vehicles

· Computer Software

· Plant and Machinery

· Electrical Installation

· Office Equipments

· Computer and Printers

· Temporary Structures

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. 54.28
UK Pound	1	Rs. 84.32
Euro	1	Rs. 70.99

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	NIS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.