MIRA INFORM REPORT

Report Date :

10.05.2013

IDENTIFICATION DETAILS

Name :	SMS INFRASTRUCTURE LIMITED
Registered Office :	267, Ganesh Phadnavis Bhavan, Near Triangular Park, Dharam Peth, Nagpur – 440010, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	08.05.1997
Com. Reg. No.:	11-107906
Capital Investment / Paid-up Capital :	Rs. 95.370 Millions
CIN No.: [Company Identification No.]	U45201MH1997PLC107906
TAN No.: [Tax Deduction & Collection Account No.]	NGPS00596B
PAN No.: [Permanent Account No.]	AACCS9854P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Construction business like road construction, bridge construction, highway construction etc.
No. of Employees :	1000 (Approximately)

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 10000000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. 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.

EXTERNAL AGENCY RATING

Rating Agency Name	FITCH
Rating	Cash Credit : BB
Rating Explanation	It indicates vulnerability to default risk. Particularly in the event of adverse changes in business or economic condition.
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

Name :	Mr. Rahul Thite
Designation :	Technical Manager
Contact No.:	91-9009990987
Date :	08.05.2013

LOCATIONS

Registered Office :	267, Ganesh Phadnavis Bhavan, Near Triangular Park, Dharam Peth, Nagpur – 440010, Maharashtra, India
Tel. No.:	91-712-2551952 / 2525410 / 2551953
Mobile No.:	91-9009990987 (Mr. Rahul Thite)
Fax No.:	91-712-2544039
E-Mail :	sanbros_ngp@sancharnet.in thite_rahul@rediffmail.com sms.mca21@gmail.com
Website :	http://www.smsl.co.in
Corporate Office :	20, IT Park, Parsodi, Nagpur – 440022, Maharashtra, India
Tel. No.:	91 - 712 - 6665000, 6665200
Fax No.:	91 - 712 - 6665100
Site Office 1 :	Vidharbha Enviro Protection Limited CHW- 01, Mandva Village, Butibori, District Nagpur, Maharashtra, India
Tel. No.:	91 - 7104-202493
Site Office 2 :	Maharashtra Enviro Power Limited Plot No. P- 56, Ranjangaon, Taluka Shirur, District Pune - 412220, Maharashtra, India
Tel. No.:	91 - 2138 - 670344
Fax No.:	91 - 2138 - 670350
Divisional Office 1 :	Pune: 03-04, A-Wing, 1st Floor, Khodyar Apartment, Shankar Rao Mahajan Path, Off Fergusson College Road, Shivaji Nagar, Pune - 411005, Maharashtra, India
Tel. No.:	91-20-65619988
Fax No.:	91-20-66200525, 40079063
Divisional Office 2 :	Delhi: 405, 4th Floor, 32-33, Kusal Bazar, Nehru Place, New Delhi - 110019, India
Tel. No.:	91 - 11-41319903/04, 46517251/52/53
Fax No.:	91 - 11-46517250
Divisional Office 3 :	Aurangabad: Bharat Bajar, Commercial Complex, I-Wing, 2nd Floor, Plot No. P 72/6 - 7, Chikhalthana, Aurangabad - 431001, Maharashtra, India
Tel. No.:	91 -240 - 2473047
Fax No.:	91 -240-2470145

DIRECTORS

As on: 22.09.2012

Name :	Mr. Abhay Harakchand Sancheti
Designation :	Whole-time Director
Address :	Plot No.45, Sashwath, Hill Road, Shivali Nagar, Nagpur – 440010, Maharashtra, India
Date of Birth/Age :	29.07.1959
Qualification :	B.E and DBM
Date of Appointment :	08.05.1997
PAN No.:	ABJPS0677F
DIN No.:	01654073
Name :	Mr. Anand Shaktikumar Sancheti
Designation :	Whole-time Director
Address :	267, Ganesh Phadnavis Bhavan, Near Triangular Park, Dharam Peth, Nagpur – 440010, Maharashtra, India
Date of Birth/Age :	16.09.1971
Qualification :	B. Com
Date of Appointment :	10.04.2012
PAN No.:	ABJPS0675H
DIN No.:	00953362
Name :	Mr. Anil Harakchand Sancheti
Designation :	Director
Address :	267, Ganesh Phadnavis Bhavan, Near Triangular Park, Dharampeth, Nagpur – 440010, Maharashtra, India
Date of Birth/Age :	10.12.1964
Qualification :	B. Com
Date of Appointment :	10.03.2010
PAN No.:	ABJPS4559E
DIN No.:	01841800
Name :	Mr. Anil Kumar Rathi
Designation :	Director
Address :	P/No. 33, Central Bazar Road, Ramdaspeth, Nagpur – 440010, Maharashtra, India
Date of Birth/Age :	03.06.1954
Date of Appointment :	24.09.2004
DIN No.:	01874539
Name :	Mr. Dilip Bhawarlal Surana
Designation :	Whole-time director
Address :	Flat No. 301, Mangalm Apartments, P. No. 40, Khare Town, Nagpur – 440010, Maharashtra, India
Date of Birth/Age :	24.05.1965
Qualification :	Diploma in Civil
Date of Appointment :	24.05.2007
DIN No.:	00953495
Name :	Mr. Ajay Kumar Lakhotia
Designation :	Director
Address :	Merlin Niket, 88-E, Babu Ram Ghosh Road, Flat 1B/C, Kolkata – 700040, West Bengal, India
Date of Birth/Age :	03.12.1959
Qualification :	B .Com and Chartered Accountant
Date of Appointment :	24.05.2007
DIN No.:	00634602
Name :	Mr. Prakash Keshrimal Bohra
Designation :	Director
Address :	904, B-I, 9th Floor, Lok Everest, J. D. Road, Mulund, Mumbai – 400080, Maharashtra, India
Date of Birth/Age :	24.11.1950
Qualification :	SY B.Com
Date of Appointment :	12.08.2011
DIN No.:	03577167
Name :	Mr. Jugalkishor Joshi Shrikrishna
Designation :	Director
Address :	108, Petkar Gali, Shri Ambika Bhavan,Badkas Chowk, Mahal, Nagpur – 440002, Maharashtra, India
Date of Birth/Age :	08.04.1940
Qualification :	12th in Science
Date of Appointment :	12.08.2011
DIN No.:	03341333
Name :	Mr. Ajay Shaktikumar Sancheti
Designation :	Director
Address :	267, Ganesh Phadanvis Bhawan, Near Trikoni Park, Dharampeth, Nagpur – 440010, Maharashtra, India
Date of Birth/Age :	22.10.1965
Date of Appointment :	10.04.2012
DIN No.:	00953304

KEY EXECUTIVES

Name :	Ms. Smita Pankaj Agarkar
Designation :	Company Secretary
Address :	70 B, Shri Gajanan Kripa, C/O. Mr. Harne, Near Adamshah School, Shiv Nagar, Nagpur - 440009, Maharashtra, India
Date of Birth/Age :	28.12.1979
Date of Appointment :	02.02.2011
DIN :	AIOPA4318B
Name :	Mr. Rahul Thite
Designation :	Technical Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 22.09.2012

Names of Shareholders	No. of Shares
Abhay Harakchand Sancheti	2872347
Ajay Shaktikumar Sancheti	2154236
Anand Shaktikumar Sancheti	2154236
Bharti Abhay Sancheti	100
Savita Ajay Sancheti	100
Shruti Anand Sacheti	100
Anand Shaktikumar Anand	352532
Femina Share Management Services Private Limited, India	747825
Femina Industrial Finance Private Limited, India	935125
Best Power Plus Private Limited, India	320450
Total	9537051

Equity Share Break up (Percentage of Total Equity)

As on: 22.09.2012

Category	Percentage
Bodies corporate	21.00
Directors or relatives of Directors	79.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Construction business like road construction, bridge construction, highway construction etc.

Products :

ITC Code	Product Description
99532235	Works Contract

GENERAL INFORMATION

Customers :

L and T

No. of Employees :

1000 (Approximately)

Bankers :

· State Bank of Indore, 46, Central Avenue Road, Timki, Nagpur – 440018, Maharashtra, India

· Kotak Mahindra Bank Limited, 2^nd Floor, Rashtrabhasha Sankal, North Ambazari Road, Shankar Nagar Road, Nagpur – 440010, Maharashtra, India

· Punjab National Bank, Nagpur, Maharashtra, India

· Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227 D, Nariman Point, Mumbai - 400021, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Rupee term loans from banks (Secured Against Stock , Debtor)	232.218	110.442
Rupee term loans from others	2085.150	2095.403
Loans repayable on demand from banks (Secured Against Stock , Debtor, WIP, Consumable)	2855.571	1734.718
Total	5172.939	3940.563

Banking Relations :	--
Auditors :
Name :	Mr. C. R. Sagdeo and Company Chartered Accountants
Address :	Prabha Niwas, Jail Road, Nagpur – 440022, Maharashtra, India
PAN.:	AAVPB0589J
Subsidiaries Company :	Maharashtra Enviro Power Limited CIN No.: U40105MH2005PLC150780 Patwardhan Infrastructure Private Limited CIN No.: U45203MH1999PTC181033 Pt SMS Mineral International, Indonesia SMS Anamklean Greentech Private Limited CIN No.: U90001MH2009PTC195479 SMS Bhatgaon Mines Extension Private Limited CIN No.: U13209MH2008PTC186729 SMS Envoclean Private Limited CIN No.: U74930MH2005PTC156774 SMS Infolink Private Limited CIN No.: U72900MH2011PTC221718 SMS Mine Developers Private Limited CIN No.: U14200MH2007PTC170870 SMS Parking Solutions Private Limited CIN No.: U74999MH2008PTC178827 SMS Taxicabs Private Limited CIN No.: U60230MH2011PTC220163 SMS Tolls and Developers Limited CIN No.: U45400MH2007PLC172869 SMS Vidhyut Private Limited CIN No.: U40101MH2006PTC166038 SMS Water Grace BMW Private Limited CIN No.: U93090MH2007PTC167615 SMS Water Grace Mediwaste Management Private Limited CIN No.: U90001MH2011PTC213882 Solar Bhatgaon Extension Mines Private Limited CIN No.: U13200MH2008PTC186685 Vidharbha Enviro Protection Limited CIN No.: U40105MH2005PLC150784
Associates:	San finance Corporation RCCL Infrastructure Limited CIN No.: U45203RJ2002PLC01800 Sanbros Spares Private Limited CIN No.: U34300MH2005PTC154569 SMS-AAMW Tollways Private Limited CIN No.: U45203DL2011PTC218839
Joint Venture: :	· Khare Tarkunde Infrastructure Private Limited A/c Parwana · Shaktikumar M. Sancheti Limited and S N Thakkar Construction Private Limited JV · SMS Infrastructure Limited and B. P. Construction Company Private Limited (JV) · SMS Infrastructure Limited and Brahamaputra Infrastructure Limited (JV) · SMS Infrastructure Limited and D. Thakkar Construction Private Limited JV · SMS Infrastructure Limited and West Coast Engg. (J.V.) · SMS Infrastructure Limited Aarti Infra-Projects Private Limited J.V. · SMS Infrastructure Limited and Brahamaputra Consortium Limited · SMS Infrastructure Limited Shreenath Enterprises J.V. · SMSIL KTCO
Other Related Parties :	Butibori CETP Private Limited CIN No.: U74999MH2005PTC154244 Sanbro Corporation Rishik Motors ( India ) Private Limited CIN No.: U34300MH2005PTC152136 San Commercials Private Limited CIN No.: U02000MH1996PTC098330 SMS Envocare Limited CIN No.: U74900MH2007PLC172774 SMS Infrastructure Pte Limited, Singapore SMS Shivnath Infrastructure Private Limited CIN No.: U45203CT1997PTC012220 Valencia Constructions Private Limited CIN No.: U45203MH2000PTC128821 Veet Rag Homes Private Limited CIN No.: U45200MH2000PTC128791 Veetrag Developer Private Limited CIN No.: U04520CT2000PTC014243

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs. 150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9537051	Equity Shares	Rs.10/- each	Rs. 95.370 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		95.370	95.370	95.370
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3118.488	2606.781	2237.534
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3213.858	2702.151	2332.904
LOAN FUNDS
1] Secured Loans		5172.939	3940.563	3976.453
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		5172.939	3940.563	3976.453
DEFERRED TAX LIABILITIES		18.237	14.246	18.185
TOTAL		8405.034	6656.960	6327.542
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2212.023	2010.059	1125.681
Capital work-in-progress		17.536	13.474	0.000
INVESTMENT		1211.502	1350.472	1213.420
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2284.031	1604.172	0.000
	Sundry Debtors	1642.338	1221.929	1565.340
	Cash & Bank Balances	711.357	596.242	461.591
	Other Current Assets	0.000	0.000	1178.396
	Loans & Advances	2504.709	2151.147	1987.481
Total Current Assets		7142.435	5573.490	5192.808
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	291.224	309.842	102.313
	Other Current Liabilities	1693.194	1699.522	1096.422
	Provisions	194.044	281.171	5.632
Total Current Liabilities		2178.462	2290.535	1204.367
Net Current Assets		4963.973	3282.955	3988.441
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		8405.034	6656.960	6327.542

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	11309.502	10508.491	8140.739
		Other Income	298.567	79.447	166.773
		TOTAL	11608.069	10587.938	8307.512
Less	EXPENSES
		Cost of materials consumed	8974.447	8623.815
		Employee benefit expense	413.564	336.492	7114.340
		Other expenses	261.809	226.169
		TOTAL	9649.820	9186.476	7114.340
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		1958.249	1401.462	1193.172
Less	FINANCIAL EXPENSES		893.696	597.075	480.071
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		1064.553	804.387	713.101
Less/ Add	DEPRECIATION/ AMORTISATION		296.414	218.705	185.966
Add	Extraordinary items before tax		0.000	0.000	510.125
	PROFIT BEFORE TAX		768.139	585.682	1037.260
Less	TAX		198.791	105.594	121.719
	PROFIT AFTER TAX		569.348	480.088	915.541
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1792.867	1423.620	639.742
	APPROPRIATIONS
		Proposed Dividend	0.000	0.000	112.537
		Interim Dividend paid	157.361	0.000	0.000
		Transfer to General Reserve	56.935	0.000	0.000
		Provision for Final Dividend	0.000	95.371	0.000
		Tax on Proposed Dividend	0.000	0.000	19.126
	BALANCE CARRIED TO THE B/S		2247.640	1792.867	1423.620
	Earnings Per Share (Rs.)		59.70	50.34	138.51

Particulars	31.03.2013
Sales Turnover (Approximately)	12000.000

Expected Sales (2013-14) : Rs. 14000.000 Millions

The above information has been parted by Mr. Rahul Thite

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.91	4.53	11.02
Net Profit Margin (PBT/Sales)	(%)	6.79	5.57	12.74
Return on Total Assets (PBT/Total Assets}	(%)	8.21	7.72	16.42
Return on Investment (ROI) (PBT/Networth)		0.24	0.22	0.45
Debt Equity Ratio (Total Debt /Networth)		1.61	1.46	1.71
Current Ratio (Current Asset/Current Liability)		3.28	2.43	4.31

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDIT DETAILS

(Rs in Millions)

Particular	31.03.2012	31.03.2011	31.03.2010
Creditors due others	291.224	309.842	102.313
Total	291.224	309.842	102.313

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 four years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

REVIEW OF FINANCIAL PERFORMANCE

The performance of the company in the Financial Year was more satisfying when viewed in the light of the challenging business environment of the Construction Industry. A comparative study of the financial performance of the company as compared to the previous year is given here under:

FUTURE OUTLOOK

The Company has expertise in Civil Constructions, Structural Work, Underground Mining and Power Transmission etc. in various types of Infrastructure projects. A reasonably good order book position, repeat orders from reputed client are the key factors that will boost the prospects of the Company.

The Company has been pre-qualified for large infrastructure projects on standalone basis as well as through joint ventures which will help in securing major contracts. The Directors are confident that the present environment of investments in infrastructure by the State and Central Governments assures growth of operations of the Company , so as not only to maintain the growth rates achieved in earlier years but also surpass the same .

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U45201MH1997PLC107906
Name of the company	SMS INFRASTRUCTURE LIMITED
Address of the registered office or of the principal place of business in India of the company	267, Ganesh Phadnavis Bhavan, Near Triangular Park, Dharam Peth, Nagpur – 440010, Maharashtra, India sms.mca21@gmail.com
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227 D, Nariman Point, Mumbai - 400021, Maharashtra, India john.fernandes@kotak.com
Nature of instrument creating charge	Deed of Hypothecation.
Date of instrument Creating the charge	05.04.2013
Amount secured by the charge	Rs. 16.777 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 5.87% p.a. Terms of Repayment Tenure of 35 Months. Extent and Operation of the charge First and exclusive charge by way of Hypothecation on the assets financed in favour of Kotak Mahindra Bank.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	· 6 Nos. of TATA SK 1613TIPPER. Chassis No. MAT373163C2N25922, MAT373163C1P16412, MAT373163C2P27517,MAT373163C2P27432, MAT373163C2P27325, MAT373163C2P27423 · Eng No. 697TC69NXY123617, 697TC69PXY125325, 697TC69PXY124782, 697TC69NXY124436, 697TC69PXY124835, 697TC69PXY124749 · 1 No. of TATA XENON PICK UP. Eng No. MAT464203CSP02874 Chassis No.06PXY677905 · 1 No. of Telco - TATA HITACHI HYDRAULICEXCAVATOR 110 Machine Serial No. 11015712 · 1 No. of Telcon - TATA HITACHI HYDRAULIC EXCAVATOR EX-70 Machine Serial No. 7038408 · 2 Nos. of ATLAS COPCO COMPRESSOR MODEL XAHS 186 Machine Serial No. 226648, 226649

TRADE REFERENCES

· L and T

NEWS

SMS INFRASTRUCTURE TO RUN 4,000 TAXIS IN MUMBAI

September 12, 2011, 02.49am IST

NAGPUR: Mass demand for taxis in Nagpur may still be some way away but a city-based company is set to emerge as the biggest taxi operator in Mumbai. SMS Infrastructure Limited, a closely held company promoted by the Sancheti family, has bagged a contract to run 4000 taxis in Mumbai. It would be the largest fleet run by a private player in any city of the country. These will be sedans, all priced above Rs 1.000 Millions.

Though the taxis were expected to be running by October, the launch may be delayed by a couple of months due to certain pending litigation, said an official in the company. Ajay Sancheti, one of the directors in the company, is known to be close to the BJP president Nitin Gadkari and is also on the party's executive committee.

The state's transport department held an auction in October in which SMS Infrastructure emerged as the highest bidder, buying 4,000 taxi permits for Rs 26.100 Millions each. The company has envisaged an investment of almost Rs 7000.000 Millions. Of this, Rs 1040.000 Millions will be spent towards buying the permits. Another Rs 4000.000 Millions will be for buying the cars. The rest will go in setting up a call centre and other facilities. It has been learnt that SMS Infrastructure is in talks Tata Motors for procuring around 1,000 cars. The fleet will have other brands too. The entire venture is expected to generate 6,000 direct jobs.

"Named TAB Cabs, the radio taxis will be controlled through a hi-tech call centre in Mumbai. A client can dial a number and order a taxi. Although there are five others players in the same sector in Mumbai, it is expected that higher number of taxis and the luxury features may give the brand an edge," Anand Sancheti, a director in SMS Infrastructure told TOI.

Mumbai will have 47000 taxies in all after the 4000 to be deployed by SMS Infrastructure are included. Bids are expected to be invited for 6,000 more permits and the company will participate in that too, Sancheti said. Sancheti said there were plans to expand the services to other cities in the country as well as abroad. After Mumbai, business may be expanded to cities like Delhi, Bangalore, and Hyderabad. Overseas destinations being considered are Colombo, Bangkok and Kathmandu. Services in other cities will be launched by 2015 in phased manner. The Colombo venture has been almost finalized, said Sancheti. However, Nagpur is certainly not mature enough a market for such a business, he added.

Services offering premium taxis will also be launched with a fleet of around 400 cars including Mercedes entailing an investment of Rs 1600.000 Millions. The premium cars are expected to be launched soon after the regular taxi business gets operational.

There are plans to create a separate company in which 40% of the equity will be contributed by Anand Sancheti in his personal capacity with the rest coming from the parent company SMS infrastructure. On raising the funds, he said 70% of the amount would be raised through debt. The cars will be purchased on installment basis. Talks are underway with the manufacturers on getting direct finance or through a financial institution, said a senior official in the company.

The business will take at least four years to break even. Dry runs of long distances, the distance covered for reaching the customer for which no tariff is charged, are a major risk factor. Not more than 40 km of dry run in a day can be sustainable, said Sancheti.

IDFC BUYS 48.4% IN SMS SHIVNATH INFRASTRUCTURE LIMITED

SMS Infrastructure Limited and IDFC announced today that IDFC has purchased 48.4% equity in one of its SPV viz. SMS Shivnath Infrastructure Limited (SSIL). SSIL owns, operates and maintains an 18.4 kms 2-lane road on National Highway 6 which serves as a bypass to the city of Durg in Chattisgarh. The concession was awarded in 1997 by NHAI under a BOT format, and extends until 2031. The project is amongst the first concessions awarded by the National Highway Authority of India (NHAI).

Speaking on the occasion, Mr. Anand Sancheti, Managing Director of SSIL, said that participation by IDFC, a leading financial institution in the infrastructure sector, in the equity of a Group company, reconfirms our business philosophy of creating enduring value in our businesses. This investment also marks the starting of a partnership approach, which would foster aggressive growth in the years to come in the chosen fields of road, waste management and power which the Group has embarked upon.

Dr. Rajiv Lall, MD and CEO of IDFC remarked. Our investment in SSIL is part of an important initiative to set up a new infrastructure fund to invest in the equity of operating and greenfield assets.  SSIL will be one of the seed assets for this fund. IDFC will work with companies like SMS Infrastructure Ltd. to help in the creation and operation of infrastructure assets.

Mr. M. K. Sinha, President and CEO of IDFC Project Equity Company Limited, remarked. The investment in SSIL is part of our build up of seed assets for the India Infrastructure Fund. We look forward to working with the SMS Group in building quality infrastructure assets in India.’

SMS GROUP, A NAGPUR BASED 1000+ CRORE CORPORATE GIANT, VENTURES INTO IT INFRASTRUCTURE

Friday, 13 May 2011 13:13

 SMS Infrastructure Limited Nagpur, one of the largest infrastructure groups in Central India with a turnover of 1000+ crore and over 28 companies under its wing, announced its entry into IT infrastructure.

SMS Infrastructure will be soon shifting its base at newly purchased 'Infospectrum' building situated at Info Tech Park, STPI, Nagpur.

Since last 43 years of its existence, SMS has expanded its presence across the country and abroad and have diversified successfully across different sectors like Mining, Roads, Highways, Toll, Constructions, Railways, Power, Irrigation, Environment, Urban and Rural Development, and PPP projects. SMS Group is amongst the first 500 unlisted companies in India by turnover.

The strategy behind the move is still unknown and is a wait and watch until it unfolds in due time. It certainly does add up to their multi-sectoral portfolio.

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. 54.24
UK Pound	1	Rs. 84.30
Euro	1	Rs. 71.36

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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		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
-	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.