MIRA INFORM REPORT

Report Date :

06.08.2014

IDENTIFICATION DETAILS

Name :	R C AND COMPANY
Registered Office :	112, Ashirwad Raw House, Sarthana, Varachha, Surat – 395006, Gujarat
Country :	India
Financials (as on) :	31.03.2014 (Provisional)
Date of Incorporation :	27.02.2012
Registration No.:	GUJ/SRT/(17)/39665
Capital Investment / Paid-up Capital :	Rs.45.358 Millions
PAN No.: [Permanent Account No.]	AAOFR1328L
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Construction Activity
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (26)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is a new partnership concern having moderate track. Even though the concern incorporated during 2012 the concern commenced its operations from October 2013, as confirmed by Mr. Ramesh Chanabhai Hirapara a partner of the concern. Trade relations are reported to be improving. Business is active. Payment terms are unknown. The concern can be considered for business dealings with some caution.

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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

NEWS

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes that many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 %! Equities came in second with annualized return of 15.5 %! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Ramesh Chanabhai Hirapara
Designation :	Partner
Contact No.:	91-9979266161
Date :	04.08.2014

LOCATIONS

Registered Office :	112, Ashirwad Raw House, Sarthana, Varachha, Surat – 395006, Gujarat, India
Tel. No.:	Not Available
Mobile No.:	91-9979266161 (Mr. Ramesh Hirapara)
Fax No.:	Not Available
E-Mail :	chodvadiyapraful@yahoo.in
Location :	Owned
Project Location :	Block No.16, 18 and 25, Sayan-Shekhpu Road, Near Shekhpur Gam, Taluka-Kamrej, Surat, Gujarat, India
Location :	Owned

PARTNERS

Name :	Mr. Ramesh Chanabhai Hirapara
Designation :	Partner
Address :	112, Ashirwad Raw House, Sarthana, Varachha, Surat – 395006, Gujarat, India
Date of Birth/Age :	01.05.1971
Qualification :	Under Graduate
Experience :	20 years
PAN No.:	ABLPH5537P
Name :	Mrs. Hansaben Rameshbhai Hirapara
Designation :	Partner
Address :	112, Ashirwad Raw House, Sarthana, Varachha, Surat – 395006, Gujarat, India
Date of Birth/Age :	01.05.1970
Qualification :	Under Graduate
PAN No.:	ACCPH3583K

BUSINESS DETAILS

Line of Business :

Construction Activity

GENERAL INFORMATION

Customers :	Retailers
No. of Employees :	Not Divulged
Bankers :	· Bank of India Ground Floor, Tribhuvan Complex, Opposite Panjrapol, Ghoddod Road, Surat, Gujarat, India
Facilities :	--

Banking Relations :	--
Auditors :
Name :	NLSC and Associates Chartered Accountants
Address :	Surat, Gujarat, India
Associates/Subsidiaries :	· HRC Infracon Private Limited 112, Ashirwad Row House, Sarthana, Varacha, Surat – 395006, Gujarat, India Activity: Construction Activity

CAPITAL STRUCTURE

(AS ON 31.03.2014 – PROVISIONAL)

Capital Investment :
Owned :	Rs.45.358 Millions
Borrowed :	--
Total :	Rs.45.358 Millions

FINANCIAL DATA

[All figures are in Rupees Millions]

Note: Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014 (Provisional)
SHAREHOLDERS FUNDS
1] Share Capital		45.358
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		45.358
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		0.000
TOTAL		45.358
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.000
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	74.033
	Sundry Debtors	0.000
	Cash & Bank Balances	(25.494)
	Other Current Assets	0.000
	Loans & Advances	22.640
Total Current Assets		71.179
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	25.377
	Other Current Liabilities	0.444
	Provisions	0.000
Total Current Liabilities		25.821
Net Current Assets		45.358
MISCELLANEOUS EXPENSES		0.000
TOTAL		45.358

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014 (Provisional)
	SALES
		Revenue from Operations	0.000
		Other Income	0.000
		TOTAL	0.000
Less	EXPENSES
		Cost of Goods Sold	(27.007)
		Construction Expenses	26.852
		CRISIL Limited	0.055
		SMC	0.100
		TOTAL	0.000
	NET PROFIT/ (LOSS)		0.000

KEY RATIOS

PARTICULARS		31.03.2014 (Provisional)
PAT / Total Income	(%)	0.00
Net Profit Margin (PBT/Sales)	(%)	0.00
Return on Total Assets (PBT/Total Assets}	(%)	0.00
Return on Investment (ROI) (PBT/Networth)		0.00
Debt Equity Ratio (Total Debt/Networth)		0.00
Current Ratio (Current Asset/Current Liability)		2.76

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 one year	Yes
12]	Profitability for last one year	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	No
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
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	No

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ECONOMICS OF THE PROJECTS

(RS. IN MILLIONS)

Particulars	Amount
INCOME
Sales (Member Receipts)	1854.592
LESS: EXPENSES
-Land and Land Development Cost	234.610
-Construction Cost	1043.208
-Administrative Overheads @10%	20.864
-Bank Interests	183.344
Total Cost	1482.026
Profit Before Tax	372.566
Provision for Tax	122.947
Net Profit After Tax	249.619

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COST OF PROJECT

(RS. IN MILLIONS)

Particulars	Incurred as on Date 31.05.2014	To be incurred	Total	Loan from Bank		But Limited To
				Margin @ 50%	Bank @ 50%
Land Cost	47.019	182.591	229.610	0.00	0.00	0.00
Land Development Cost	5.000	0.000	5.000	2.500	2.500	2.305
Construction Cost	208.642	834.566	1043.208	521.604	521.604	480.919
Administrative over heads	4.173	16.691	20.864	10.432	10.432	9.618
Interests to – Others	--	--	--	--	--	--
Bank	0.000	183.344	183.344	183.344	0.000	0.000
Total	264.833	1217.192	1482.026	717.880	534.540	492.842

MEANS OF FINANCE

(RS. IN MILLIONS)

Particulars	Amount	%
From Cash Credit cum Demand Loan	492.100	33.20
Share Capital	334.600	22.58
Loans from Friends and Relatives	287.300	19.39
Payment from flats Holders	268.026	24.83
Total	1382.026	100.00

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STATEMENT OF ASSETS AND LIABILITIES

(MR. RAMESH CHANABHAI HIRAPARA)

(RS. IN MILLIONS)

BANK ACCOUNT

Bank	Branch	S/B C/D A/C No.	Present Balance
HDFC Bank	Varachha Branch	0533100010132	Rs.0.033 Million

DETAILS OF ASSETS

IMMOVABLE PROPERTY

Assets	Location Address	Purchases Cost	Present Value
Flat/ House	Plot No.112, Ashirwad Raw House, Near Sarthana Jakatnaka, Varachha Road, Surat, Gujarat, India	1.232	15.000
Agri Land	(1). RV Sr. No.77/2, Paikee-1, Khadkhad (2) Rv Sr. No.77/2 Paikee-2, Khadkhad	0.384 0.497	20.000 20.000
Others	Block No.173/B, Sukan, Sarthana, Surat, Gujarat, India	0.335	30.000
Total		2.448	85.000

MOVABLE PROPERTY

VEHICLES

Type of Vehicles	Present Value
Motor Car (Hyundai)	0.180
Motor Car (Tata Indigo)	0.238
Total	0.418

CAPITAL INVESTED IN BUSINESS

Particulars	Amount
HRC Infracon Private Limited	6.000
R C and Company	6.856
Total	12.856

OTHER INVESTMENT /ASSETS

Investment in Other Fixed Assets	0.098
Loans and Advances	71.100
Sundry Debtors	0.242
Cash and Bank Balance	1.966
Total	73.406

DETAILS OF LIABILITIES

AS BORROWERS

Borrowed From	Outstanding Balance
Secured Loans	1.036
Unsecured Loans	77.750
Provision	0.013
Other Loans (Liabilities)	7.500
Total	86.299

LEGAL HEIRS/ FAMILY PARTICULARS

Name	Occupation	Relation	Age	Marital Status	Address
Mrs. Hansaben R. Hirapara	Business Woman	Wife	44	Married	112, Ashirwad Raw House, Near Sarthana Jakat Naka, Surat, Gujarat, India
Mr. Hitesh R. Hirapara	Study	Son	17	Un-Married
Ms. Hinal R. Hirapara	Study	Daughter	15	Un-Married

------------------------------------------------------------------------------------------------------------------------------

STATEMENT OF ASSETS AND LIABILITIES

(MRS. HANSABEN RAMESHBHAI HIRAPARA)

(RS. IN MILLIONS)

BANK ACCOUNT

Bank	Branch	S/B C/D A/C No.	Present Balance
HDFC Bank	Varachha Branch	0533100010133	Rs.0.059 Million (As on 28.04.2014)
The Varachha Co-operative Bank Limited	Head Office	100010336280	Rs.0.055 Million (As on 10.04.2014)
State Bank of India	Sarthana Branch	66017967901	Rs.0.511 (As on 26.04.2014)

DETAILS OF ASSETS

MOVABLE PROPERTY

CAPITAL INVESTED IN BUSINESS

Particulars	Amount
R C and Company	2.510
Total	2.510

OTHER INVESTMENT /ASSETS

Investment in Fixed Assets	0.021
Loans and Advances	12.850
Sundry Debtors	0.044
Cash and Bank Balance	0.789
Total	13.704

DETAILS OF LIABILITIES

AS BORROWERS

Borrowed From	Outstanding Balance
Unsecured Loans	14.750
Provision	0.005
Total	14.755

LEGAL HEIRS/ FAMILY PARTICULARS

Name	Occupation	Relation	Age	Marital Status	Address
Mr. Ramesh Hirapara	Business	Husband	43	Married	112, Ashirwad Raw House, Near Sarthana Jakat Naka, Surat, Gujarat, India
Mr. Hitesh R. Hirapara	Study	Son	17	Un-Married
Ms. Hinal R. Hirapara	Study	Daughter	15	Un-Married

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 records 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.60.87
UK Pound	1	Rs.102.67
Euro	1	Rs.81.70

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	DIV
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		26

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.