MIRA INFORM REPORT

Report Date :

28.11.2008

IDENTIFICATION DETAILS

Name :	BHANU CERGLAZE PRIVATE LIMITED
Registered Office :	8-2-331/14, Plot No. 14, Panchavati Co-operative Housing Society, Road No. 3, Banjara Hills, Hyderabad-500034, Gujarat
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	11.10.1984
Com. Reg. No.:	01-5015
CIN No.: [Company Identification No.]	U26914AP1984PTC005015
IEC No.:	0995004790
PAN No.: [Permanent Account No.]	AAACB7878G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter and Importer of Ceramic Slaze Frits and Zirconium Silicate

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 240000
Status :	Moderate
Payment Behaviour :	No complaints
Litigation :	Clear
Comments :	Subject is an old and established company having moderate track. Company’s profitability is under severe pressure and continues to incur losses. Trade relations are fair. No complaints have been heard so far. The company can be considered for small to mediocre business dealings.

INFORMATION PARTED BY

Name :	Mr. G. G. K. Reddy
Designation :	Finance Manager
Contact No.:	91-9440053917
Date :	26.11.2008

LOCATIONS

Registered Office :	8-2-331/14, Plot No. 14, Panchavati Co-operative Housing Society, Road No. 3, Banjara Hills, Hyderabad-500034, Andhra Pradesh, India
Tel. No.:	91-40-23353973/ 23354180
Mobile No.:	91-9848028630/ 9848180101
Fax No.:	91-40-23357202
E-Mail :	bhandusevglaze@hotmail.com
Area :	1800 sq.ft (Rented)
Factory :	Sy. No. 296/7/4, IDA Bollaram, Sinnaram Mandal, Medak District, India
Tel. No.:	91-8458-279556
Fax No.:	91-84558-279703
Area :	1600 sq.ft (Owned)

DIRECTORS

Name :	Mr. P Krishna Reddy
Designation :	Director
Address :	8-3-988/34/7/8 SBA Colony, Hyderabad-5000473, Andhra Pradesh, India
Date of Birth/Age :	01.07.1929
Qualification :	BA
Experience :	23 Years
Date of Appointment :	11.10.1984
Name :	Mr. Vamseekrishna Reddy
Designation :	Director
Address :	8-2-322/H Road No. 2, Banjara Hills, Hyderabad-500034, Andhra Pradesh, India
Date of Birth/Age :	17.02.1975
Qualification :	MBA
Experience :	7 Years
Date of Appointment :	26.10.2001
Name :	Mr. Raghava Reddy
Designation :	Director
Address :	8-2-322/H Road No. 2, Banjara Hills, Hyderabad-500034, Andhra Pradesh, India
Date of Birth/Age :	01.02.1945
Date of Appointment :	26.10.1988

KEY EXECUTIVES

Name :	Mr. G. G. K. Reddy
Designation :	Finance Manager
Mobile No. :	91-9440053917

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2003

Names of Shareholders	No. of Shares
P Krishna Reddy	2765
P Narmad Krishna Reddy	3160
P Madusudhan Reddy	2842
A Vanmsikrishna Reddy	7900
A Aruna	8290
Total	24957

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter and Importer of Ceramic Slaze Frits and Zirconium Silicate
Exports :
Products :	Ceramic Glaze Frits
Countries :	UAE
Imports :
Products :	Boric Acid and Boray
Countries :	Turkey
Terms :
Selling :	Credit ( 90 Days)
Purchasing :	Credit ( 90 Days)

PRODUCTION STATUS

Particulars	Unit	Actual Production
Ceramic Glaze Frits	MTS	2263
Ziroconium Silicate	MTS	121

GENERAL INFORMATION

Customers :	End Users
No. of Employees :	17 (Office 2, Factory 15)
Bankers :	· Canara Bank, Kundanbagh Branch, Hyderabad-500016, Gujarat, India

Banking Relations :	--
Auditors :
Name :	J.B. Reddy and Company Chartered Accountant
Address :	206, Srimlaya Estate, Ameerpet, Hyderabad-5600016, Gujarat, India
Tel. No.:	91-40-23736593

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
30000	Equity Shares	Rs. 100/- each	Rs. 3.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24957	Equity Shares	Rs. 100/- each	Rs. 2.496 Millions

As on 31.03.2008

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
43900	Equity Shares	Rs. 100/- each	Rs. 4.390 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		4.390	4.390
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		45.152	47.976
4] (Accumulated Losses)		0.000	0.000
NETWORTH		49.542	52.366
LOAN FUNDS
1] Secured Loans		9.309	15.037
2] Unsecured Loans		12.180	11.882
TOTAL BORROWING		21.489	26.919
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		71.031	79.285
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.503	4.500
Capital work-in-progress		0.000	0.000
INVESTMENT		6.028	6.028
DEFERREX TAX ASSETS		3.067	1.622
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.584	13.037
	Sundry Debtors	46.726	50.448
	Cash & Bank Balances	1.960	2.113
	Other Current Assets	0.402	0.303
	Loans & Advances	17.463	17.644
Total Current Assets		72.135	83.545
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	14.632	16.328
	Provisions	0.070	0.082
Total Current Liabilities		14.702	16.410
Net Current Assets		57.433	67.135
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		71.031	79.285

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007
Sales Turnover		71.049	110.477
Other Income		0.149	0.402
Total Income		71.198	110.879
Profit/(Loss) Before Tax		[4.200]	[2.862]
Provision for Taxation		[1376]	[0.597]
Profit/(Loss) After Tax		[2.824]	[2.265]
Expenditures :
	Manufacturing, Administrative Expenses	13.570	21.743
	Raw Material Consumed	35.464	59.462
	Increase/(Decrease) in Finished Goods	[2.873]	[1.682]
	Salaries, Wages, Bonus, etc.	5.301	6.145
	Interest and other Expenses	2.269	3.329
	Power & Fuel	15.057	19.575
	Depreciation & Amortization	0.864	0.958
	Prior year adjustment	0.000	0.847
Total Expenditure		75.398	113.741

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007
PAT / Total Income	(%)	[3.97]	[2.04]
Net Profit Margin (PBT/Sales)	(%)	[5.91]	[2.59]
Return on Total Assets (PBT/Total Assets}	(%)	[5.48]	[3.25]
Return on Investment (ROI) (PBT/Networth)		[0.08]	[0.05]
Debt Equity Ratio (Total Liability/Networth)		0.73	0.83
Current Ratio (Current Asset/Current Liability)		1.91	5.09

LOCAL AGENCY FURTHER INFORMATION

Additional Requirement of Indiamart for Trust-Seal

Service Tax No. : AAACB7878GST001

Excise Registration No.: AAACB7878G XM001

VAT / TIN : 28820251979

IEC Code : 0995004790

PAN / TAN : AAACB7878G

Bank Name : Canara Bank, Kundanbagh Branch

Bank Address : Ameerpet, Hyderabad-500016

Bank A/c. No.: 16262017004

Account Since : 1985

In case of any affiliations / memberships / certifications :

Name : FAPCCL

Type : General Membership

Expiry Date : 2010

Trade References:

· Regency Ceramics NN House, Abidas, Heyderabad-560001, Dr. Ram Prasad,

Tel No. 91-40-23203017

· Tata Ceramics Limited, Kakkand, Cochin-682037

Tel No. : 91-484-4059107

· H and R Johnson (India) Limited, Windsor, C S T Road, Santacruz, Mumbai

Tel No.: 91-22-30677340

Bankers Charges Report as per Registry

Name of the company	BHANU CERGLAZE PRIVATE LIMITED
Presented By	Mr. P Krishna Reddy, Director
1) Date and description of instrument creating the change	27.06.1986 1. Cash Credit Hypothecation 2. Supply Bills Hypothecation 3. Deed of Hypothecation of Second Charge letter evidence disposal if Title Deeds
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 0.850 Million
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of Raw Materials, Semi-finished goods. Hypothecation of Book debts out of surplus made by the company.
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest @ 12.75% p.a.
5) Name and Address and description of the person entitled to the charge.	Canara Bank, Kundanbagh Branch, Hyderabad-500016, Gujarat, India
6) Date and brief description of instrument modifying the charge	21.10.2005 Supplemental Gollateral Secured Agreement for Additional Limit of Rs. 0.400 Million
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	FLC (Foreign Letter of Credit Limit) enhanced to Rs./ 1.800 from the existing limit of Rs. 110000.000 Millions rate of interest 10.50% per annum compounded quarterly. (Subject for change as per RBI diectives) Purpose of the Loan for Working capital requirement. Security and other terms and conditions and other existing limits are as per the sanction Memorandum Canara Bank letter No. MSCR : 05 dated 11.10.2005. Letter enclosed (Our Total Limits OCC Rs. 60.000 Millions B. Es Rs. 2.500 Millions FLC Rs. 1.800 Millions

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.49.85
UK Pound	1	Rs.76.60
Euro	1	Rs.64.68

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		34

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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