MIRA INFORM REPORT

Report Date :

08.10.2013

IDENTIFICATION DETAILS

Name :	PONY INFRASTRUCTURE AND CONTRACTORS LIMITED (w.e.f.22.10.2010)
Formerly Known As :	DYNAMIX BALWAS INFRASTRUCTURE LIMITED (w.e.f.28.06.2010) DYNAMIX BALWAS INFRASTRUCTURE PRIVATE LIMITED
Registered Office :	DB House, General A. K. Vaidya Marg, Goregaon (East), Mumbai – 400063, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	21.09.2006
Com. Reg. No.:	11-164787
Capital Investment / Paid-up Capital :	Rs.92.000 Millions
CIN No.: [Company Identification No.]	U45201MH2006PLC164787
PAN No.: [Permanent Account No.]	AACCD44469
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Contracting/Subcontracting for Construction.
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
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears huge accumulated losses recorded by the company which has eroded networth of the company. External borrowings of the company are also huge. Business is active. Payment terms are slow. The company can be considered for business dealing on a safe and secured trade terms and conditions.

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

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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. Lalit Tyagi
Designation :	Senior Manager Finance
Contact No.:	9167649098
Date :	08.10.2013

LOCATIONS

Registered Office :	DB House, Gen A K Vaidya Marg, Goregaon (East), Mumbai – 400063, Maharashtra, India
Tel. No.:	91-22-40778600
Fax No.:	91-22-84155550
E-Mail :	info@dbg.co.in hitesh.rathi@dbg.co.in deodatta.pandit@dbg.co.in
Website :	http://www.dbrealty.co.in
Location :	Owned

DIRECTORS

(AS ON 21.09.2012)

Name :	Mr. Vipul Bansal
Designation :	Director
Address :	82-A, 8^th Floor, Maker Tower-A, Cuffe Parade, Mumbai – 400005, Maharashtra, India
Date of Birth/Age :	24.08.1972
Experience :	15 years
Name :	Mr. Hifzur Rehman
Designation :	Director
Address :	2A/64,Bustan Apartment, Belasis Road, Mumbai – 400008, Maharashtra, India
Date of Birth/Age :	20.04.1963
Experience :	25 years
Name :	Mr. Nabil Patel
Designation :	Director
Address :	Al-Hashim, 10^th Floor, Flat 3 4, 85 Cyrus Avenue, Mumbai – 400011, Maharashtra, India
Date of Birth/Age :	10.03.1979
Experience :	20 years

KEY EXECUTIVES

Name :	Mr. Lalit Tyagi
Designation :	Senior Manager Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.03.2013)

Names of Shareholders	No. of Shares
Shahid U. Balwa,	1
Aseela Goenka, Managing Trustee of Goenka Family Trust	828000
Jayvardhan Goenka	828000
Sanjana Goenka	828000
Aseela Goenka	828000
Vinod Goenka (HUF)	1288000
Shabana Balwa	4599999
Total	9200000

(AS ON 30.09.2012)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Contracting/Subcontracting for Construction.

GENERAL INFORMATION

Customers :

Commercial/Residential Realty Firms

No. of Employees :

Not Available

Bankers :

· Oriental Bank of Commerce

Gokuldham Goregaon (East), Mumbai, Maharashtra, India

Facilities :

Particulars	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Short Term Borrowings
Nihar Construction Private Limited [775374 Zero Coupon Optionally Convertible Debentures of Rs.5000 each]	3876.870	3876.870
Loan from Related Parties	366.504	284.543
Total	4243.374	4161.413
The terms of debentures have been varied during the previous year as follows: 1. The debentures shall be optionally convertible/redeemable and be called optionally convertible debentures which may be partly redeemed and / or partly converted at the price/ratio as may be determined by the board further the OCD’s will carry coupon rate of ‘Zero Percent’ 2. Each OCD’s shall have face value of Rs.5000/- each and shall not bear any interest rate. 3. Unless the option exercised by the holders earlier, each OCD’s be redeemable/convertible into equity shares of the company, within 15 years from the date hereof, in one or more tranch(es).

Banking Relations :	--
Auditors :
Name :	B B Jain and Associates Chartered Accountants
Address :	301,Girnar Apartments, Off Mandpeshwar Road, Borivili (West) Mumbai- 400092, Maharashtra, India
Tel. No.:	91-22-28905267
PAN No.:	AACPJ4810B
E-Mail :	bbjainandassociates@yahoo.com
Subsidiaries :	· Majestic Infracon Private Limited · D B Structure and Builders Private Limited
Other Related Parties :	· D B Telewimax Private Limited · Dynamix Balwas Realty Ventures Private Limited · Eversmile Construction Company Private Limited · Nihar Construction Private Limited · Dynamix Realty · Dynamix Balwas Telecom Private Limited · Dynamix Balwas Entertainment Services Private Limited · Falgun Consultants Private Limited · Shree Shantinagar Venture · Gokuldham Real Estate Development Company Private Limited · Neelkamal Realtor Tower Private Limited · Eon Aviation Private Limited (was subsidiary from 05^th June 2010 to 31^st March 2011) · Neelkam Realtors and Builders Private Limited · Real Gem Buildtech Private Limited · Neelkam Realtors Subrban Private Limited · Swan Connect Communication Private Limited · Mira Salt Works · DB Realty Limited

CAPITAL STRUCTURE

(AS ON 31.03.2013)

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
9200000	Equity Shares	Rs.10/- each	Rs.92.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	92.000	92.000
(b) Reserves & Surplus	(408.365)	(392.021)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	(316.365)	(300.021)
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	64.146	109.473
(d) long-term provisions	0.235	2.596
Total Non-current Liabilities (3)	64.381	112.069
(4) Current Liabilities
(a) Short term borrowings	4243.374	4161.413
(b) Trade payables	16.685	70.961
(c) Other current liabilities	1179.854	1321.272
(d) Short-term provisions	0.013	0.208
Total Current Liabilities (4)	5439.926	5553.854
TOTAL	5187.942	5365.902
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	0.025	0.041
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	716.431	740.936
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	4353.657	4314.113
(e) Other Non-current assets	5.064	4.621
Total Non-Current Assets	5075.177	5059.711
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	0.000	0.000
(c) Trade receivables	18.608	153.061
(d) Cash and cash equivalents	0.096	2.371
(e) Short-term loans and advances	69.916	74.156
(f) Other current assets	24.145	76.603
Total Current Assets	112.765	306.191
TOTAL	5187.942	5365.902

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		92.000
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		(447.650)
NETWORTH		(355.650)
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		5841.384
TOTAL BORROWING		5841.384
DEFERRED TAX LIABILITIES		0.000
TOTAL		5485.734
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.069
Capital work-in-progress		0.000
INVESTMENT		741.431
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	571.017
	Cash & Bank Balances	24.827
	Other Current Assets	0.000
	Loans & Advances	6097.659
Total Current Assets		6693.503
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	466.657
	Other Current Liabilities	1480.075
	Provisions	2.537
Total Current Liabilities		1949.269
Net Current Assets		4744.234
MISCELLANEOUS EXPENSES		0.000
TOTAL		5485.734

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	12.699	1653.480	1308.442
		Other Income	3.462	8.097	168.140
		TOTAL (A)	16.161	1661.577	1476.582
Less	EXPENSES
		Subcontractor Charges	11.640	1558.257
		Employee Benefit Expenses	1.092	19.836	1203.841
		Provision For Permanent Diminution in the Value of Investments	0.000	0.495
		Other Expenses	2.491	2.487
		TOTAL (B)	15.223	1581.075	1203.841
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.938	80.502	272.741
Less	FINANCIAL EXPENSES (D)		17.266	24.845	329.534
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(16.328)	55.657	(56.793)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.017	0.027	0.006
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(16.345)	55.630	(56.799)
Less	TAX (H)		0.000	0.000	0.000
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(16.345)	55.630	(56.799)
	Earnings / (Loss) Per Share (Rs.)		(1.78)	6.05	(6.17)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(101.14)	3.35	(3.85)
Net Profit Margin (PBT/Sales)	(%)	(128.71)	3.36	(4.34)
Return on Total Assets (PBT/Total Assets}	(%)	(0.37)	1.20	(0.85)
Return on Investment (ROI) (PBT/Networth)		0.05	(0.19)	0.15
Debt Equity Ratio (Total Debt/Networth)		(13.41)	(13.87)	(16.42)
Current Ratio (Current Asset/Current Liability)		0.02	0.05	3.43

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	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	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	No

NOTE:

The Registered office of the company has been shifted from Dynamix House, Yashodham, Gen A. K. Vaidya Marg, Goregaon, Mumbai, Maharashtra, India, to the present address w.e.f. 07.03.2009.

BACKGROUND:

The company, formerly known as Dynamix Balwas Infrastructure Private Limited, incorporated on 21^st September, 2006 under the Companies Act, 1956, is mainly engaged in business to carry out construction activities.

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

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.61.78
UK Pound	1	Rs.99.06
Euro	1	Rs.83.84

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	NIT/ TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	1
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	1
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--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		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.