MIRA INFORM REPORT

Report Date :

27.04.2011

IDENTIFICATION DETAILS

Name :	HEMARUS INDUSTRIES LIMITED
Formerly Known As :	HEMARUS TECHNOLOGIES LIMITED
Registered Office :	H.No.:8-2-418, 1^st Floor, Meenakshi House, Road No.7, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	27.01.2006
Com. Reg. No.:	01-048909
CIN No.: [Company Identification No.]	U85110AP2006PLC048909
IEC No.:	0908006098
PAN No.: [Permanent Account No.]	AABCH6830P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Sugar and its by-products.

RATING & COMMENTS

MIRA’s Rating :

B

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 was started in 2006 but had not commenced commercial operations till date. No valuation report has been provided. However from the networth statement provided the promoters seems to be having satisfactory means. No further details could be made available. It would be advisable to take adequate securities while dealings with the subject.

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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. A. Gopala Krishna
Designation :	Senior Manager (Finance)
Contact No.:	91-9866174667
Date :	25.04.2011

LOCATIONS

Registered/ Corporate Office :	H.No.:8-2-418, 1^st Floor, Meenakshi House, Road No.7, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India
Tel. No.:	91-40-23350415/ 16
Mobile No.:	91-9866174667 (Mr. Gopala Krishna)
Fax No.:	91-40-23350417
E-Mail :	agk@hemarus.in contactus@hemarus.in
Website :	http://www.hemarus.in
Location :	Rented
Factory 1 :	Unit 1 : (Existing Integrated Sugar Plant – 1^st Project) Gutt No.76, Rajgoli Kurd, Chandged Taluk, Kolhapur District – 416 508, Maharashtra, India
Tel. No.:	91-2320-213147, 202303
E-Mail :	htlraj@hemarus.in
Location :	Owned
Factory 2 :	Unit 2 : Hudali Village Road, Hudali Village, Belgaum Taluk, Belgaum District – 591 148, Karnataka, India
Branch Office :	Camp Office – Belgaum Plot No.321, BR Nathpai Road, Ramtirth Nagar
Tel. No.:	91-831-2459770
E-Mail :	htlraj@gmail.com
Location :	Rented

DIRECTORS

As on 29.09.2010

Name :	Dr. Chigurupati Jayaram
Designation :	Chairman cum Managing Director
Address :	Plot No.770E, Road No.44, Jubilee Hills, Hyderabad – 500 033, Andhra Pradesh, India
Date of Birth/Age :	10.01.1963
Qualification :	MBA
Experience :	15 Years
Date of Appointment :	27.01.2006
DIN No.:	00015592
Name :	Mrs. Chigurupati Padmasree
Designation :	Director
Address :	Plot No.770E, Road No.44, Jubilee Hills, Hyderabad – 500 033, Andhra Pradesh, India
Date of Birth/Age :	02.05.1964
Date of Appointment :	27.01.2006
DIN No.:	00017980
Name :	Mr. Kondapalli Bhanu Prasad
Designation :	Director
Address :	101A, Usha Enclave, Srinagar Colony, Hyderabad – 500 073, Andhra Pradesh, India
Date of Birth/Age :	15.09.1975
Qualification :	M. Tech
Date of Appointment :	27.01.2006
DIN No.:	00013090
Name :	Mr. Jetty Siva Rama Prasad
Designation :	Director
Address :	1-2-593/3/D/9/B, Domalguda Rama Krishna Mission Road, Hyderabad – 500 029, Andhra Pradesh, India
Date of Birth/Age :	01.06.1960
Qualification :	CA
Experience :	25 Years
Date of Appointment :	25.03.2006
DIN No.:	00221271
Name :	Alladi Venkata Sadasiva
Designation :	Additional Director
Address :	3-6-69/B/17, Avanti Nagar, Himayath Nagar, Hyderabad – 500 029, Andhra Pradesh, India
Date of Birth/Age :	08.01.1953
Qualification :	CA
Date of Appointment :	05.03.2010
DIN No.:	00224744

KEY EXECUTIVES

Name :	Mr. Ram Deo Sharma
Designation :	Secretary
Address :	F.NO.:305A and B, Pancom Business Centre, Ameerpet, Hyderabad – 500 073, Andhra Pradesh, India
Date of Birth/Age :	02.11.1966
Date of Appointment :	01.05.2009
Date of Ceasing :	30.09.2009
PAN No.:	AAJPV0729J
Name :	Mr. A. Gopala Krishna
Designation :	Senior Manager (Finance)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders	No. of Shares
Chigurupati Jayaram	18884153
Chigurupati Padmasree	8919995
Kondapalli Bhanu Prasad	1
Narayana Capitals, India	1
Credece Clinical Research Private Limited, India	1
G. Shiva Rama Krishna	1
G. Thandava Krishna	1
J. Siva Rama Prasad	11916065
Total	39720218

As on 29.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Sugar and its by-products.
Products :	Sugar Molasses/ Extra Neutral Alcohol Power
Terms :
Selling :	Cash
Purchasing :	Cash

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Installed Capacity
Sugar	5000 TCD
Molasses/ Extra Neutral Alcohol	45 KLPD
Power	20 MW

GENERAL INFORMATION

Customers :

Wholesalers

No. of Employees :

300 (In office – 12, In factory – 285, In branch – 3) (Approximately)

Bankers :

• Indian Bank, Hyderabad Main Branch, Surabhi Arcade, Bank Street, Koti, Hyderabad – 500 001, Andhra Pradesh, India
• Union Bank of India
• Indian Overseas Bank, Himayantnagar Branch, 3-6-272, N.V.R. Tower, Hyderabad, Andhra Pradesh, India
• UCO Bank, Mid Corporate Branch, # 13/22, 1^st Floor, K.G. Road, Bangalore, Karnataka, India
• Bank of India

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Term Loans	2038.657	620.346
Vehicle Loan – Union Bank of India (Secured)	0.260	0.559
Total	2038.917	620.905

Notes:

a. The Term Loan from Indian Bank Rs.700.000 millions, from Indian Overseas Bank Rs.500.000 millions and from UCO Bank Rs.630.000 millions and Bank of India Rs.400.000 millions are secured by fixed assets of the company viz land, buildings, plant and machinery and other assets created out of the term loan.

b. The vehicle loan from Union Bank of India is secured by hypothecation of vehicle.

Present Banking Relationship:

Bank	Nature of Credit Facility	Sanctioned Loan Amount (Rs. in millions)	Outstanding Balance (Rs. in millions)
Indian Bank	Term Loan	7.000	7.000
Indian Bank	Working Capital	3.344	3.335
Indian Overseas Bank	Term Loan	5.000	5.000
Indian Overseas Bank	Working Capital	2.388	1.115
UCO Bank	Term Loan	6.300	6.200
UCO Bank	Working Capital	2.962	0.484
Bank of India	Term Loan	4.000	4.000
Bank of India	Working Capital	1.911	0.000

Banking Relations :	--
Auditors :
Name :	M. Deepak Kumar and Company Chartered Accountants
Address :	1-24/100/1, Indira Nagar Colony, Venkatapuram, Secunderabad – 500 015, Andhra Pradesh, India
Tel. No.:	91-40-64648101
Enterprises having significant influence or where control exits :	Puissance De’ Leau Power Systems Private Limited QRE Greensol Power Transformers Private Limited Zenotech Laboratories Limited Credence Power Projects Private Limited JSR Infra Holding Private Limited Greensol Power Services Private Limited

CAPITAL STRUCTURE

As on 29.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
70000000	Equity Shares	Rs.10/- each	Rs.700.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
39720218	Equity Shares	Rs.10/- each	Rs.397.202 millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
70000000	Equity Shares	Rs.10/- each	Rs.700.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
30904503	Equity Shares	Rs.10/- each	Rs.309.045 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		309.045	185.250	90.500
2] Share Application Money		265.709	79.025	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		574.754	264.275	90.500
LOAN FUNDS
1] Secured Loans		2038.917	620.905	0.825
2] Unsecured Loans		0.000	0.000	92.500
TOTAL BORROWING		2038.917	620.905	93.325
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2613.671	885.180	183.825
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		84.321	78.701	58.930
Capital work-in-progress and Pre-Operative Expenses		2128.258	324.073	32.319
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	70.107	143.747	8.888
	Other Current Assets	0.000	0.000	4.975
	Loans & Advances	458.273	373.620	107.666
Total Current Assets		528.380	517.367	121.529
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.310	23.719	27.890
	Other Current Liabilities	119.705	8.577	1.166
	Provisions	4.461	2.853	0.085
Total Current Liabilities		127.476	35.149	29.141
Net Current Assets		400.904	482.218	92.388
MISCELLANEOUS EXPENSES		0.188	0.188	0.188
TOTAL		2613.671	885.180	183.825

KEY RATIOS

PARTICULARS	31.03.2010	31.03.2009	31.03.2008
Debt Equity Ratio (Total Liability/Networth)	3.77	2.48	1.35
Current Ratio (Current Asset/Current Liability)	4.14	14.72	4.17

LOCAL AGENCY FURTHER INFORMATION

Note:

The registered office of the company has been shifted from 8-3-677/15, SKD Nagar, Srinagar Colony, Hyderabad – 500 073, Andhra Pradesh to the present address w.e.f. 14.06.2009.

_______________________________________________________________________________________

FINANCIAL RESULTS:

The Company has not commenced commercial operations during the period ended March 31, 2010.

OPERATIONAL REVIEW:

During the period, construction activities are in progress and is going as per the schedule. The erection activities for sugar and power units are advanced stage and expected to commence the commercial operations from October/ November 2010.

As the company yet to commence its operations, the income earned reported for the year consists of only interest on fixed deposit kept for Bank Guarantee.

The Company got the term loan sanctions from Indian Bank for Rs.700.000 millions (enhanced from Rs.500.000 millions to Rs.700.00 millions for its expansion of capacities), UCO Bank for Rs.30.000 millions, Bank of India for Rs.400.000 millions (for expansion of capacities) and Indian Overseas Bank for Rs.500.000 millions aggregating to 2230.000 millions and Indian Bank has been appointed as the Leader of the Consortium. As on date the company availed total term loan of Rs.2220.000 millions from the consortium banks.

SHARE CAPITAL:

During the financial year under review the authorised share capital of the Company has been increased from Rs.300.000 millions consisting of 3 Cr Equity Shares of Rs.10/- each to Rs.700.000 millions consisting of 7 Cr Equity Shares of Rs. 10/- each.

During the financial year under review, the Company has allotted 1,23,79,503 equity shares (5,30,000 equity shares of Rs.10/- each on January 02^nd, 2010, allotted 12,08,153 equity shares of Rs.10/- each on January 30^th 2010 and allotted 1,06,41,350 equity shares of Rs.10/- each on March, 05^th, 2010) on preferential allotment basis to Promoters. As a result, the Issued and Paid up capital of the Company increased to 309.045 millions consisting of 3,09,04,503 equity shares of Rs.10/- each as against the Rs.185.250 millions consisting of 1,85,25,000 equity shares of previous year.

__

OPERATING STATEMENT

(Rs. in millions)

PARTICULARS	31.03.13	31.03.14	31.03.15	31.03.16	31.03.17	31.03.18
	PROJECTIONS
Gross Sales
I)Sugar Sales	767.500	1577.200	1758.200	1801.700	1801.700	1801.600
ii) Sale of Power	540.400	583.600	628.400	640.900	653.800	666.800
ii) Sale of Molasses	55.100	66.100	69.800	69.800	69.800	69.800
Total	1363.000	2227.000	2456.400	2512.400	2525.200	2538.200
LESS: Excise duty	0.000	0.000	0.000	0.000	0.000	0.000
Net Sales	1363.000	2227.000	2456.400	2512.400	2525.200	2538.200
% of rise (+)or full (-) in net sales are compared to previous year		63.39	10.30	2.28	0.51	0.52
0Cost of Sales
I) Raw materials (including stores and other items used in the process of manufacture)
a) Imported
b) Indigenous	1158.300	1332.000	1415.200	1424.900	1435.100	1445.800
ii) Other Spares
a) Imported
b) Indigenous	41.600	52.200	55.100	60.600	66.700	73.400
iii) Power and Fuel	2.000	2.100	2.200	2.200	2.200	2.200
iv) Direct Labour (Wages, Salaries& Sub-Cont)	38.500	42.400	46.200	50.100	53.900	57.800
v) Other manufacturing expenses	31.600	33.900	35.100	35.200	35.200	36.400
vi) Depreciation	141.900	141.900	141.900	141.900	141.900	141.900
vii) SUB-TOTAL	1413.900	1604.400	1695.800	1714.900	1735.100	1757.500
viii) Add: opening stocks-in-process	0.000	21.800	25.100	25.100	27.000	25.100
Sub-total	1413.900	1626.300	1720.900	1740.000	1762.100	1782.500
ix) Deduct: Closing stocks-in-process	21.800	25.100	26.600	27.000	27.300	27.700
x) Cost of Production	1392.100	1601.200	1694.200	1713.000	1734.800	1754.800
xi) Add: Opening stock of finished goods	0.000	633.300	760.000	802.200	802.200	802.200
Sub-total	1392.100	2234.500	2454.200	2515.200	2537.000	2557.000
xii) Dedect: Closing stock of finished goods	633.300	760.000	802.200	802.200	802.200	802.200
xiii) Sub-total (total cost of sales)	758.700	1474.500	1652.000	1713.000	1734.800	1754.800
Selling,general and administrative expenses	13.100	14.000	15.000	16.300	17.600	19.000
Sub-total	771.900	1488.500	1667.000	1729.300	1752.300	1773.800
Operating profit before interest	591.100	738.500	789.400	783.100	772.900	764.400
Interest	305.400	290.200	262.500	231.200	199.800	168.500
Operating profit after interest	285.700	448.300	526.900	552.000	573.000	595.900
Add: Other non-operating income
a) Miscellaneous income	0.000	0.000	0.000	0.000	0.000	0.000
b) Interest, dividend & prior period income	0.000	0.000	0.000	0.000	0.000	0.000
Sub-total (income)	0.000	0.000	0.000	0.000	0.000	0.000
Deduct other non-operating expenses
a)
b) Prelim exp w/o	0.000	0.000	0.000	0.000	0.000	0.000
Sub-total (expenses)	0.000	0.000	0.000	0.000	0.000	0.000
Net of other non-operating income/expenses	0.000	0.000	0.000	0.000	0.000	0.000
Profit before taxes	285.700	448.300	526.900	552.000	573.000	595.900
Provision for taxes -Current Year	8.000	76.100	115.600	135.900	154.000	169.900
Net profit/loss	277.700	372.200	411.300	416.100	419.100	426.000
a) Equity Dividend paid		0.000	0.000	0.000	0.000	0.000
b) Dividend Rate
Retained profit	277.700	372.200	411.300	416.100	419.100	426.000
Retained profit/Net profit	100%	100%	100%	100%	100%	100%
Cash Accruals	41.96	51.41	55.32	55.80	56.09	56.79

ANALYSIS OF BALANCE SHEET

(Rs. in millions)

PARTICULARS	31.03.13	31.03.14	31.03.15	31.03.16	31.03.17	31.03.18
	PROJECTIONS
CURRENT LIABILITIES
Short term borrowings from banks (including bills purchased, discounted & excess borrowing placed on repayment basis)
I) Applicant Bank (C/C.A/c.)	461.600	547.900	579.300	580.700	582.100	583.600
ii)from other Banks	0.000	0.000	0.000	0.000	0.000	0.000
iii) (out of which BP & BD)
SUB-TOTAL (A)	461.600	547.900	579.300	580.700	582.100	583.600
Short term borrowings from others (LC)	0.000	0.000	0.000	0.000	0.000	0.000
Sundry creditors (trade)	198.000	161.600	136.900	119.200	103.800	90.900
Advance payments from dealers/ deposits from dealers	0.000	0.000	0.000	0.000	0.000	0.000
Provision for taxation (net)	8.000	76.100	115.600	135.900	154.000	169.900
Dividend payable	0.000	0.000	0.000	0.000	0.000	0.000
Other Statutory Liabilities (due within one year)	0.000	0.000	0.000	0.000	0.000	0.000
Deposits/ installments of term loans/ DPGs/ debentures etc.(due within one year	262.400	262.400	262.400	262.400	262.400	262.400
Other Current liabilities & provisions (due within one year) specify major items)	0.000	0.000	0.000	0.000	0.000	0.000
SUB-TOTAL (B)	468.400	500.100	514.800	517.400	520.200	523.200
TOTAL CURRENT LIABILITIES	930.000	1047.900	1094.100	1098.100	1102.300	1106.800
TERM LIABILITIES
Debentures (not maturing within one year)
Preference Shares (redeemable after one year
Term Loan (excluding Installment payable within one year)	1706.400	1444.000	1181.600	919.200	656.800	394.400
Deferred Payment Credit excluding installments due within one year	0.000	0.000	0.000	0.000	0.000	0.000
Term deposits (repayable after one year)	0.000	0.000	0.000	0.000	0.000	0.000
Long Term Creditors	0.000	0.000	0.000	0.000	0.000	0.000
Other term liabilities (USL)	0.000	0.000	0.000	0.000	0.000	0.000
Total Term Liabilities	1706.400	1444.000	1181.600	919.200	656.800	394.400
TOTAL OUTSIDE LIABILITIES	2636.400	2491.900	2275.700	2017.300	1759.100	1501.200
NET WORTH
Share Capital	900.000	900.000	900.000	900.000	900.000	900.000
Share Application / Premium
General Reserve
Other Reserve ( Deferred tax)
Surplus(+) or deficit (-) in Profit and Loss account	277.700	650.000	1061.300	1475.800	1894.900	2318.600
NET WORTH	1177.700	1550.000	1961.300	2375.800	2794.900	3218.600
TOTAL LIABILITIES	3814.200	4041.900	4237.000	4393.100	4554.000	4719.900
	3814.200	4041.900	4237.000	4393.100	4554.000	4719.900
	0.000	0.000	0.000	0.000	0.000	0.000
	0.000	0.000	0.000	0.000	0.000	0.000

ANALYSIS OF BALANCE SHEET

(Rs. in millions)

PARTICULARS	31.03.13	31.03.14	31.03.15	31.03.16	31.03.17	31.03.18
	PROJECTIONS
CURRENT ASSETS
Cash and Bank Balances	243.100	466.000	746.400	1039.900	1338.000	1640.700
Investments (other than long term investments)	0.000	0.000	0.000	0.000	0.000	0.000
I) Govt. Other Trustee Securities
ii) Fixed deposits with Banks	0.000	0.000	0.000	0.000	0.000	0.000
Receivables other than deferred and exports (including bills purchased and discounted by Banks)	118.100	135.700	144.400	145.600	146.700	147.900
ii) Export Receivable (including bills purchased/ discounted by Banks)
sister concerns
Inventory	695.500	824.000	871.500	874.500	877.600	881.000
I) Raw materials (including stores & other items used in the process of manufacture) a) imported
b) Indigenous	0.000	0.000	0.000	0.000	0.000	0.000
Total raw material	0.000	0.000	0.000	0.000	0.000	0.000
ii) Stocks - in process	21.800	25.100	26.600	27.000	27.300	27.700
iii) Finished Goods	633.300	760.000	802.200	802.200	802.200	802.200
iv) Other Consumable stores	40.400	39.000	42.700	45.300	48.100	51.100
a) Imported
b) Indigenous	40.400	39.000	42.700	45.300	48.100	51.100
Advances to Suppliers of raw materials and stores/ spares	0.000	0.000	0.000	0.000	0.000	0.000
Advances payment of taxes	0.000	0.000	0.000	0.000	0.000	0.000
Other Current Assets (Specify major items)	7.900	8.400	8.900	9.200	9.600	10.100
TOTAL CURRENT ASSETS	1064.500	1434.200	1771.200	2069.200	2371.900	2679.700
FIXED ASSET
GROSS BLOCK (Land and Building machinery, work in progress)	2891.500	2891.500	2891.500	2891.500	2891.500	2891.500
Depreciation to date	141.900	283.800	425.700	567.600	709.500	851.400
NET BLOCK	2749.600	2607.700	2465.800	2323.900	2182.000	2040.100
Capital Work in Progress	0.000	0.000	0.000	0.000	0.000	0.000
Total Fixed Assets	2749.600	2607.700	2465.800	2323.900	2182.000	2040.100
OTHER NON CURRENT ASSETS
Investments/ Book debts/ advances deposits which are not current assets
I) a) Investments in subsidiary companies/ affiliates	0.000	0.000	0.000	0.000	0.000	0.000
b) Others
ii) Advances to Suppliers of Capital goods and contractors
iii) Deferred receivables (maturity exceeding one year)	0.000	0.000	0.000	0.000	0.000	0.000
iv) Others
Non consumable stores & spares
Other non - current assets including dues from directors
TOTAL OTHER NON-CURRRENT ASSETS	0.000	0.000	0.000	0.000	0.000	0.000
Intangible Assets	0.000	0.000	0.000	0.000	0.000	0.000
TOTAL ASSETS	3814.200	4041.900	4237.000	4393.100	4554.000	4719.900
TANGIBLE NET WORTH	1177.700	1550.000	1961.300	2375.800	2794.900	3218.600
NET WORKING CAPITAL	134.500	386.200	677.100	971.100	1269.600	1572.900
CURRENT RATIO	1.14	1.37	1.62	1.88	2.15	2.42
TOTAL OUTSIDE LIABILITIES / TANGIBLE NET WORTH	2.24	1.61	1.16	0.85	0.63	0.47
TOL/(TNW+USL)	2.24	1.61	1.16	0.85	0.63	0.47

__________________________________________________________________________________________

COMPARATIVE STATEMENT OF CURRENT ASSETS AND LIABILITIES

(Rs. in millions)

ASSETS	31.03.13	31.03.14	31.03.15	31.03.16	31.03.17	31.03.18
	PROJECTIONS
Current Assets
1. Raw materials (including Stores & other items used in the process of manufacture)
a) imported	0.000	0.000	0.000	0.000	0.000	0.000
(months consumption)	0.00	0.00	0.00	0.00	0.00	0.00
b) Indigenous	0.000	0.000	0.000	0.000	0.000	0.000
(months consumption)	0.00	0.00	0.00	0.00	0.00	0.00
2. Other Consumable Spares, excluding those included in 1 above
a) Imported	0.000	0.000	0.000	0.000	0.000	0.000
(months Consumption)	0.00	0.00	0.00	0.00	0.00	1.00
b) Indigenous	40.400	39.000	42.700	45.300	48.100	51.100
(months Consumption)	0.00	0.00	0.00	0.00	0.00	1.00
3. Stocks in process	21.800	25.100	26.600	27.000	27.300	27.700
(months cost of production)	0.19	0.19	0.09	0.19	0.19	0.19
4. Finished Goods	633.300	760.000	802.200	802.200	802.200	802.200
(months cost of sales)	10.02	6.18	5.83	5.62	5.55	5.49
5. Receivables other than export & deferred receivables (including Bills purchased & discounted by bankers) Month's domestic sales:	118.100	135.700	144.400	145.600	146.700	147.900
Months domestic sales	1.04	0.73	0.35	0.70	0.70	0.70
Excluding deferred payment sales
6. Export Receivables (incl. Bills purchase & Disc)	0.000	0.000	0.000	0.000	0.000	0.000
Month's export sales	0.00	0.00	0.00	0.00	0.00	0.00
7. Advances to suppliers of raw materials & stores/spares, consumables	0.000	0.000	0.000	0.000	0.000	0.000
8. Other current assets including cash & bank balances & deferred receivables due within one year (specify major items)	250.900	474.400	755.200	1049.200	1347.600	1650.800
9. Total Current Assets	1064.500	1434.200	1771.200	2069.200	2371.900	2679.700

(Rs. in millions)

LIABILITIES	31.03.13	31.03.14	31.03.15	31.03.16	31.03.17	31.03.18
	PROJECTIONS
CURRENT LIABILITIES (OTHER THAN BANK BORROWINGS FOR WORKING CAPITAL
10. Creditors for purchase of raw materials, stores & consumable spares	198.000	161.600	136.900	119.200	103.800	90.900
(Months purchases)	1.99	1.41	1.12	0.97	0.84	0.73
11. Advances from customers	0.000	0.000	0.000	0.000	0.000	0.000
12. Statutory Liabilities	0.000	0.000	0.000	0.000	0.000	0.000
13. Other Current Liabilities (specify major items) Short term borrowings, unsecured loans, dividend payable, installments of TL DPG, Public Deposits, debentures etc.	270.400	338.500	378.000	398.300	416.400	432.300
14. Total Current Liabilities	468.400	500.100	514.800	517.400	520.200	523.200

__________________________________________________________________________________________

COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE FOR WORKING CAPITAL

(Rs. in millions)

PARTICULARS	31.03.13	31.03.14	31.03.15	31.03.16	31.03.17	31.03.18
	PROJECTIONS
TOTAL CURRENT ASSETS	1064.500	1434.200	1771.200	2069.200	2371.900	2679.700
OTHER CURRENT LIABILITIES	468.400	500.100	514.800	517.400	520.200	523.200
WORKING CAPITAL GAP	596.100	934.100	1256.300	1551.700	1851.700	2156.500
NET WORKING CAPITAL ACTUAL/PROJECTED	134.500	386.200	677.100	971.100	1269.600	1572.900
MINIUM STIPULATED NWC	266.100	358.500	442.800	517.300	593.000	669.900
MAXIMUMPERMISSIBLE BANK FINANCE	330.000	575.600	813.500	1034.400	1258.700	1486.600
ASSESSED BANK FINANCE	461.600	547.900	579.300	580.700	582.100	583.600
NWC to TCA	12.64%	26.93%	38.23%	46.93%	53.53%	58.70%
BB to TCA	43.36%	38.20%	32.71%	28.06%	24.54%	21.78%
Sundry Creditor to TCA	18.60%	11.27%	7.73%	5.76%	4.38%	3.39%
OCL to TCA	25.40%	23.60%	21.34%	19.25%	17.55%	16.13%
Total	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%

__________________________________________________________________________________________

FUNDS FLOW STATEMENT

(Rs. in millions)

PARTICULARS	31.03.13	31.03.14	31.03.15	31.03.16	31.03.17	31.03.18
	PROJECTIONS
1. SOURCES
a) Net profit		372.200	411.300	416.100	419.100	426.000
b) Depreciation		141.900	141.900	283.800	141.900	141.900
c) Increase in capital		0.000	0.000	409.800	0.000	(2.200)
d) Increase in Term Liabilities		0.000	0.000	0.000	0.000	0.000
e) Decrease in
I) Fixed Assets		0.000	0.000	0.000	0.000	0.000
ii) Other Non current assets		0.000	0.000	0.000	0.000	0.000
f) Decrease in intangibles		0.000	0.000	0.000	0.000	0.000
TOTAL		514.100	553.200	1109.600	560.900	565.700
2. USES
a) Net loss		0.000	0.000	0.000	0.000	0.000
b) Decrease in Term Liabilities		262.400	262.400	524.800	262.400	262.400
c) Increase in
I) Fixed Assets		0.000	0.000	0.000	0.000	0.000
ii) Other Non Current Assets		0.000	0.000	0.000	0.000	0.000
e)Others- Drawings
f) increase in intangibles		0.000	0.000	0.000	0.000	0.000
TOTAL		262.400	262.400	524.800	262.400	262.400
3. Long term surplus (+) deficit (-)		251.700	290.800	584.800	298.500	303.300
4. Increase/decrease in current assets (as per details given below)		369.600	337.000	635.000	302.700	307.800
5. Increase/decrease in current liabilities other than bank borrowings		31.600	14.800	17.400	2.800	3.000
6. Increase /decrease in working capital gap		338.000	322.200	617.600	300.000	304.800
7. Net surplus(+)/ deficit (-)		(86.300)	(31.400)	(32.800)	(1.400)	(1.500)
8. Increase/ decrease in Bank borrowings		86.300	31.400	32.800	1.400	1.500
9. Increase/decrease in net sales		864.000	229.400	285.400	12.800	13.000
BREAK UP OF CURRENT ASSETS
I) Increase/Decrease in raw materials		0.000	0.000	0.000	0.000	0.000
II) Increase/Decrease in stock in process		3.300	1.600	1.900	0.300	0.400
III) Increase/Decrease in finished goods		126.700	42.200	42.200	0.000	0.000
IV)Increase/decrease/ in receivables
a) Domestic		17.600	8.700	9.800	1.200	1.200
b) Export		0.000	0.000	0.000	0.000	0.000
V) increase/decrease in stores & Spares		(1.500)	3.700	6.400	2.800	3.000
VI) Increase/Decrease in other current assets		223.500	280.800	574.700	298.400	303.200
Total		369.600	337.000	635.000	302.700	307.800

__________________________________________________________________________________________

The position of Assets and liabilities of Mr. JSR Prasad aged 46 years son of Sri. J. Venkata Subbaiah residing at 84, Ramchandra Mission Road, Domalguda, Hyderabad – 500 029 as per the produced before them for verification and as per his declaration are as follows as on 31.03.2010.

Particulars of Assets	Amount (Rs. in millions)
House Site at Khanament, Sharelingmpally, Hyderabad	31.000
5 Acres of Land at Pothukatla, Prakasam District	1.000
10 Acres of Land at Yerraguntlapalem, Prakasm District	2.000
Cash in Hand and in Bank	5.100
850 Syds of land at Road No.87, Banjara Hills, Hyderabad	38.250
Factory Building at Kumbalguda Industrial Area, Bangalore	25.000
2730 Sqyds of open plot at Kadthal Village, Amangal Mandal, Mahabubnagar District	4.500
1119 Sqyds of open plot at Khanamet Village, Serilingampalli, Ranga Reddy District	27.975
2 ½ Acres of Land in Bangalore	20.000
2400 Sft of Constructed building in Bangalore	20.000
Loans and advances	155.586
Equity Shares – Greenesol Power Systems Private Limited (655000 Equity Shares of Rs.60/- each)	39.300
Equity Shares – Kakatiya Cement Sugar and Industries Limited (19350 Equity Shares of Rs.80/- each)	1.548
Equity Shares – Greenesol Power Services Private Limited (10000 Equity Shares of Rs.10/- each)	0.100
Equity Shares – Hemarus Technologies Limited (9271350 Equity Shares of Rs.10/- each)	92.713
Equity Shares – Kakatiya Finance and Leasing Company Limited (4500 Equity Shares of Rs.10/- each)	0.045
Equity Shares – ViVi Med. (10000 Equity Shares of Rs.10/- each)	1.000
Other Equity Shares	0.060
Equity Shares – Shanghai Leichun Indian Trading Company Private Limited (180000 Equity Shares of Rs.10/- each)	1.800
Equity Shares – QRE Greenesol Transformer Company Private Limited (10000 Equity Shares of Rs.10/- each)	0.100
Investment in JVR Constructions	17.500
Investment in LIC – Policies / Mutual Funds	3.500
Total	488.077
Particulars of Liabilities
-- Nil --	0.000

__________________________________________________________________________________________

The position of Assets and liabilities of Dr. Jayaram Chigurupati aged 45 years son of Sri. Ch. Krishna Murthy residing at 770E, Road No.44, Jubilee Hills, Hyderabad – 500 033 as per the records produced before them for verification and as per his declaration are as follows as on 31.03.2010.

Particulars of Assets	Amount (Rs. in millions)
A) House at Road No.44, Jubilee Hills, Hyderabad	40.000
B) Investments in listed Equity Shares:
1. Zenotech Laboratories Limited (3345238 Equity Shares of Rs.10/- each at Rs.115/- per share)	384.702
2. Liquid assets managed by Credit Suisse	1000.000
C) Investments in unlisted Equity Shares:
1. Credence Infrastructure Limited (525000 Equity Shares of Rs.10/- each, Rs.0.50 paid up)	0.262
2. Hemarus Therapeutics Limited (45000 Equity Shares of Rs.10/- each)	0.450
3. Laughing Lions Animation Private Limited (3050000 Equity Shares of Rs.10/- each)	30.500
4. Hemwarus Technologies Limited (12713153 Equity Shares of Rs.10/- each)	127.315
5. Hemarus Media and Entertainment Limited (25000 Equity Shares of Rs.10/- each)	0.250
6. Coastal Local Area Bank Limited (500000 Equity Shares of Rs.10/- each)	5.000
7. Hemarus Biological Limited (2234994 Equity Shares of Rs.10/- each)	22.349
D) Cash in Hand and Bank	2.500
E) Loans and Advances:
1. Jemarus Technologies Limited	89.084
2. Narayana Infra Projects India Limited	4.463
3. Credence Infrastructure Limited	0.129
4. Hemarus Therapeutics Limited	6.240
5. Laughing Lion Animations Private Limited	19.900
Total	1733.144
Particulars of Liabilities
-- Nil --	0.000

__________________________________________________________________________________________

SWOT ANALYSIS OF THE UNIT

STRENGTHS v Promoters are High Net worth Individuals v Promoters have successful track record in their existing lines of business v One of the promoter Shri J S R Prasad has over 18 years experience in Sugar industry v Integrated Sugar Mill complex with distillery and co-gen for optimum use of by products diversified product base and sustained cash generation v Large and stable cash accruals from distillery and co-gen operations would ensure adequate profits. v Location advantages — Kolhapur district has the highest sugar recovery rate in Maharashtra @ 12.5% recovery. v Favorable demand supply position for all the products proposed to be manufactured v Optimum size of 5000 TCD for Sugar and 45 KLPD for Distiller with additional steam and power generation from distillery. v Distillery and Co-gen plants will operate for full year although sugar plant operations are seasonal with partly outsourced raw material- this ensures higher sales and profits and lower idle time v Company is producing sulphur free sugar first of its king in India and the company will get good market.

WEAKNESS v Sugar industry is agro based and its main raw material (sugarcane) availability is dependent on monsoon and climatic conditions v Mitigation; water availability is assured for all 365 days from the Tamraparni river and study on rainfall indicates that there has been no draught conditions in the past 30 years.

OPPORTUNITIES v Fully diversified sugar mills with distillery and co-gen have better viability v Implementation of Ethanol blending programme in a larger way as proposed will enhance the profitability v Good export potential at remunerative prices for sugar v Sugar is a prime requirement of diet in every household and the consumption of the same is expected to increase at 5% p.a. v There is a favorable bias for increased consumption and higher prices for sugar in urban areas v Refined sugar fetches premium prices in retail markets v India may emerge as a net exporter of Sugar in the medium term v Demand for power is increasing highly and governments are willing to pay at Rs. 7-8 per unit during peak time.

THREATS v Globalization and WTO requirements may induce import of sugar, impacting the demand supply position v Government controls both on sugarcane price as well as sale of sugar restrict free market operations

__________________________________________________________________________________________

FORM 8:

Corporate identity number of the company	U85110AP2006PLC048909
Name of the company	HEMARUS INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	H.No.:8-2-418, 1^st Floor, Meenakshi House, Road No.7, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India E-Mail: agk@hemarus.in
This form is for	Modification of charge
Charge identification number of the modified	10113998
Type of charge	Book Debts Movable Property
Particular of charge holder	Indian Bank, Hyderabad Main Branch, Surabhi Arcade, Bank Street, Koti, Hyderabad – 500 001, Andhra Pradesh, India E-Mail: ibhydmain@rediffmail.com
Nature of description of the instrument creating or modifying the charge	1. Joint Deed of Hypothecation. 2. Working Capital Consortium Agreement.
Date of instrument Creating the charge	14/02/2011
Amount secured by the charge	Rs.3340.500 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Indian Bank: Base rate + TP of 05.% + spread 4% p.a., presently 14% P.A. UCO Bank: Base Rate + 4.50%, presently 14% pa. Indian Overseas bank: Base Rate+4%, presently 13.50%pa. Bank of India: presently 13% p.a. Terms of Repayment: Repayable on demand for Working Capital Loan. Margin: For Sugar 20% and for others 25% LC:10% Extent and Operation of the charge: Joint deed of Hypothecation of Current Assets of the Company.
Short particulars of the property charged	The whole the current assets of the borrower namely, Stock of raw Materials, Work in Process, Goods, Stores and Spares not relating to Plant and Machinery (Consumables stores and spares), Bills receivables and Book Debts and all other movables both present and future. Second charge on immovable property, plant and machinery and other fixed assets
Date of latest modification prior to the present modification	28/09/2010
Particulars of the present modification	Extension of parri passu charge over the Current Assets of the company situated at Chandgad Taluk, Kolhapur District, Maharashtra to consortium banks viz Indian Bank, UCO Bank, Bank of India and Indian Overseas Bank for the enhanced limits from Rs.2614.400 millions to 3340.500 millions.

__________________________________________________________________________________________

CONTINGENT LIABILITY NOT PROVIDED FOR: (As on 31.03.2010)

· Letter of Credit outstanding as on 31.03.2010 – Nil

· Bank Guarantee outstanding as on 31.03.2010 – Rs.10.000 millions.

______________________________________________________________________________________

FIXED ASSETS:

· Computer and Other Equipment

· Land and Land Development

· Furniture and Fixtures

· Office Equipments

· Leasehold Improvements

· Air Conditioners

· Vehicles

· Tools and Tackles

· Bore Wells

· Buildings

__________________________________________________________________________________________

WEBSITE DETAILS:

COMPANY OVERVIEW

Subject was founded by Dr. Jayaram Chigurupati and Sri Siva Rama Prasad Jetty in the year 2006. The founders are successful in various lines of businesses, Sugar industry being one of them. The company has its corporate office in Hyderabad and business headquarters at the factory in Maharashtra.

With India being the largest consumer of sugar in the world and with international markets opening up more than ever, the demand for sugar is poised to grow year on year.

Subject was started with a vision to serve the needs of the growing agro based industry, sugar.

SUGAR

The sugar economy in India, like many other countries, is highly regulated, starting from sugarcane to the end-product sugar. Even the by-products are subject to government control. The main objectives of the national policy are to ensure a fair price to cane growers, adequate returns to industry and a supply of sugar to consumers at reasonable prices.

The white sugar industry is of considerable economic importance in India. It is the second largest after the cotton textile industry. The sugar industry employs 350,000 workers and also provides substantial indirect employment through various ancillary activities.

The sugar that is produced at subject plant will be of a high quality refined sugar corresponding to M3 grade as per IS specifications with an improved ICUMSA of 70. There is a good demand for this quality of sugar in international markets and the domestic markets are starting to appreciate this.

INTRODUCTION

Most of the sugar in India is manufactured and sold as 'Plantation White Sugar', produced by the double sulphitation process. The sugar produced by this method is between raw and refined sugar. Developed nations produce refined sugar through the phosphoflotation process.

The Indian sugar industry remains the second largest rural agro-industry, with an annual turnover of Rs. 700 billion.

In India, government policies, both at the Centre and State levels, have played a crucial role in the development of the sugar industry. The sugar economy in India, like many other countries, is highly regulated, starting from sugarcane to the end-product sugar. Even the by-products are subject to government control. The main objectives of the national policy are to ensure a fair price to cane growers, adequate returns to industry and a supply of sugar to consumers at reasonable prices.

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.44.59
UK Pound	1	Rs.73.44
Euro	1	Rs.64.81

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.