MIRA INFORM REPORT

Report Date :

12.08.2011

IDENTIFICATION DETAILS

Name :	SUTURES INDIA PRIVATE LIMITED
Registered Office :	472/D, 4^th Phase, 13^th Cross, peenya Industrial Area, Bangalore – 560 058, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	28.12.1992
Com. Reg. No.:	18-013831
Capital Investment / Paid-up Capital :	Rs.14.506 Millions
CIN No.: [Company Identification No.]	u03311ka1992ptc013831
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Suture Needles, Skin Staplers, Surgical Mesh, etc
No. of Employees :	280 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (55)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 2300000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established and reputed company having good track. Business is active. Payments are reported as usually made as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. Profit and Loss of the company for the current year is not available.

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. ramesh
Designation :	IT Department
Name :	Ms. Anita
Designation :	Purchase Department

LOCATIONS

Registered Office/ Factory :	472/D, 4^th Phase, 13^th Cross, peenya Industrial Area, Bangalore – 560 058, Karnataka, India
Tel. No.:	91-80-41868000/ 41868127
Fax No.:	91-80-41171056
E-Mail :	accounts@suturesin.com sales@suturesin.com hr@sutguresin.com admin@suturesin.com ksreddy@suturesin.com
Website :	http://www.suturesin.com

DIRECTORS

As on 30.06.2009

Name :	Mr. Chandrasekhar Gopalam Latteri
Designation :	Managing Director
Address :	A-11, Sobha Emerald, Jakkur Village, yelahanka Hobli, Bangalore – 8560 064, Karnataka, India
Date of Birth/Age :	08.10.1958
Date of Appointment :	10.12.1992
Din No.:	01997057
Name :	Mr. Subramaniam Shivaraman
Designation :	Whole Time Director
Address :	4-C, anandi Villa, 6^th Main 13^th Cross Road, Malleswaran, Bangalore – 560 003, Karnataka, India
Date of Birth/Age :	14.03.1963
Date of Appointment :	10.12.1992
Din No.:	02009723
Name :	Mr. Natrajan Ganesan
Designation :	Whole Time Director
Address :	Flat # 302, 2^nd Floor, Kirmite Krupa, 11, 16^th Cross, Malleswaram, Bangalore – 560 003, Karnataka, India
Date of Birth/Age :	01.08.1952
Date of Appointment :	24.02.1997
Din No.:	02009645

ADDITIONAL DIRECTORS

As on 25.08.2010

Name :	Mr. Viswanath Venkata Subrahmanya Anjaneya Chibrolu
Designation :	Whole Time Director
Address :	Flat No. 302, Chitanya Estates, Motinagar X Roads, Hyderbad-500018, Andhra Pradesh, India
Date of Birth/Age :	12.08.1969
Date of Appointment :	25.08.2010
Din No.:	01556254
Name :	Mr. Prabhakar Valivalti Rajagopal Sastry
Designation :	Director
Address :	# 19/B, 8th main Road, Sadashivnagar, Bangalore – 560 080, Karnataka, India
Date of Birth/Age :	18.05.1959
Date of Appointment :	11.03.2009
Din No.:	02007088

KEY EXECUTIVES

Name :	Mr. ramesh
Designation :	IT Department
Name :	Ms. Anita
Designation :	Purchase Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2009

Names of Shareholders	No. of Shares
Chandrasekhar Latteri Gopalan	480800
Subramanian Sivaraman	383050
Geetha Chandrasekhar	320400
Indra Ganesan	37500
Venkataraman Iyer	55000
S V Nene	50
Natrajan Ganeshan	39500
Hema Sundaram	42500
Total	1358800

As on 30.06.2009

List of Allottees	No. of Shares Allotted
Evolvence India Life Sciences Fund LLC, Mauritius	91810
Total	91810

AS ON: 30.09.2009

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	92.82
Other top fifty shareholders	7.18
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Suture Needles, Skin Staplers, Surgical Mesh, etc
Products :	Surgical Sutures
Exports :
Products :	Sutures Needles, Surgical Mesh
Countries :	Europe Dubai
Imports :
Products :	Raw Materials
Countries :	China Germany
Terms :
Selling :	Credit
Purchasing :	Credit / L/C

PRODUCTION STATUS

(As ON: 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Hospital Consumables	Qty in Boxes	--	1749317

GENERAL INFORMATION

Customers :

· Dealers

· Hospital

No. of Employees :

280 (Approximately)

Bankers :

State Bank of India, Peenya Industrial Estate Branch, B-96, II Cross, I Stage, Bangalore – 560 058, Karnataka, India

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. in Millions)
From Banks
a) Term Loan	129.105	83.104
b) Export Packing Credit	9.177	13.225
From Others
Loan against Motor Car	3.028	0.536
Total	141.310	96.865
Unsecured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. in Millions)
From Easy Stich needles Private Limited – Wholly owned subsidiary	4.606	9.848
Total	4.606	9.848

Note:

Repayable within 1 year

1) Term Loan from Bank is secured by Equitable Mortgage of Factory Land at Peenya and Kunigal and Hypothecation of Factory Building, Plant and Machinery and Equipments installed to be installed at Kunigal and personal guarantee of Directors.

2) Export packing credit form bank is secure by hypothecation of current assets.

3) Loan against Motor Car is secured by hypothecation of the Motor car under finance.

Banking Relations :

--

Auditors :

Name :

Murali and Associates

Chartered Accountants

Address :

#12, ramanuja Plaza, 5^th Cross, malleswaram, Bangalore – 560 003, Karnataka, India

Tel. No.:

91-80-23463272

Wholly Owned Subsidiaries :

• Easy stitch Needles Private Limited

CIN No.: U24236KA1995PTC019479

• Trusskin Gloves Private Limited

CIN No.: U25191KL2001PTC014953

CAPITAL STRUCTURE

AFTER 30.09.2010

Authorised Capital : Rs.200.000 millions

Issued, Subscribed & Paid-up Capital : Rs.15.603 millions

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs. 10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1450610	Equity Shares (Includes 1087040 Equity Shares allotted as fully paid up bonus shares by way of capitalization of General Reserve in the year 08-09)	Rs. 10/- each	Rs.14.506 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		14.506	13.588	2.718
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		562.471	337.289	243.107
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		576.977	350.877	245.825
LOAN FUNDS
1] Secured Loans		141.310	96.865	49.654
2] Unsecured Loans		4.606	9.848	0.000
TOTAL BORROWING		145.916	106.713	49.654
DEFERRED TAX LIABILITIES		4.525	0.443	0.397
TOTAL		727.418	458.033	295.876
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		299.141	213.314	142.212
Capital work-in-progress		104.645	77.754	41.076
INVESTMENT		99.851	24.202	12.118
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	151.145	117.918	50.201
	Sundry Debtors	119.472	89.991	65.713
	Cash & Bank Balances	31.114	35.682	53.275
	Other Current Assets	0.049	0.115	0.114
	Loans & Advances	130.769	84.094	100.952
Total Current Assets		432.549	327.800	270.255
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	62.769	24.615	28.523
	Other Current Liabilities	46.790	67.510	23.009
	Provisions	99.209	92.912	118.253
Total Current Liabilities		208.768	185.037	169.785
Net Current Assets		223.781	142.763	100.470
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		727.418	458.033	295.876

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008
	SALES
		Income	648.263	469.448
		Other Income	20.527	1.078
		TOTAL (A)	668.790	470.526
Less	EXPENSES
		Cost of Sales – Traded Goods	15.389	22.810
		Material Consumed	231.589	157.802
		Manufacturing Expenses	34.956	28.910
		Administrative and Distribution Expenses	163.915	108.478
		TOTAL (B)	445.849	318.000
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		222.941	152.526
Less	FINANCIAL EXPENSES (D)		7.468	5.778
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		215.473	146.748
Less/ Add	DEPRECIATION/ AMORTISATION (F)		17.620	17.440
	PROFIT BEFORE TAX (E-F) (G)		197.853	129.308
Less	TAX (H)		32.389	25.987
	PROFIT AFTER TAX (G-H) (I)		165.464	103.321
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3.107	9.450
Less	APPROPRIATIONS
		Transfer to General Reserve	90.000	60.000
		Proposed Dividend	60.412	49.663
	BALANCE CARRIED TO THE B/S		18.159	3.108
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	243.132	168.545
	TOTAL EARNINGS		243.132	168.545
	IMPORTS
		Raw Materials	161.456	87.717
		Trading Goods	5.086	22.650
		Capital Goods	7.999	11.922
	TOTAL IMPORTS		174.541	122.289
	Earnings Per Share (Rs.)		180.83	383.74

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	NA	24.74	22.00
Net Profit Margin (PBT/Sales)	(%)	NA	30.52	27.54
Return on Total Assets (PBT/Total Assets}	(%)	NA	36.56	27.76
Return on Investment (ROI) (PBT/Networth)		NA	0.56	0.53
Debt Equity Ratio (Total Liability/Networth)		0.61	0.83	0.89
Current Ratio (Current Asset/Current Liability)		2.07	1.77	1.59

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

Corporate identity number of the company	u03311ka1992ptc013831
Name of the company	SUTURES INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	472/D, 4^th Phase, 13^th Cross, peenya Industrial Area, Bangalore – 560 058, Karnataka
This form is for	Modification of charge
Charge identification number of the modified	80041121
Type of charge	· Immovable property
Particular of charge holder	State Bank of India, peenya Industrial Estate branch, B – 96, II Cross, I Stage, Peenya Industrial Estate, Bangalore – 560 058, Karnataka, India E-mail: jsurya@vsnl.com
Nature of instrument creating charge	· memorandum for recording extension of mortgage by deposit of title deeds · Letter of Confirmation for extension of mortgage by deposit of title deds (Both the documents relate to the same modification)
Date of instrument Creating the charge	11.09.2008
Amount secured by the charge	Rs. 333.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest: CC/ TL : Interest @ 0.75% below State Bank Advance Rate (SBAR) (SBAR=13.75% w.e.f. with a minimum of 13.75% p.a., Present effective rate 13.00% p.a. Terms of repayments WC : Repayable on demand TL : Repayable in 61 monthly installment of Rs. 3.500 millions each commencing from 13 months after first disbursement Margin: Domestic Receivables : 25% TL : 32.94% LC and BG : 25% Extent and Operation of charge Charge extends by way of first charge on all the assets throughout the period of sanctioned limits.
Short particulars of the property charged (Including location of the property)	EM on Company’s immovable properties situated at No. 472-D, 13^th Cross, Peenya 4^th Phase, Industrial Area, Sy. No. 43, Nalikadarnahalli Village, Yeshwanthpur Hobli, Bangalore admeasuring 7343.75 Sq.mtrs. EM of KIADB land situated at Plot Nos. 13 to 16 in SY No. 97, Kunigal 1^st Phase Industrial Area, Kalanyakanahlly Village, Hutridurga, Kunigal Taluk, Tumkur District measuring 16183 sqmtrs. EM on Company’s immovable properties situated at No. 477C, 4^th Phase, Industrial Area in Sy. No. 46 of Nallakadarnahalli Village, Yeshwanthpur Hobli, Bangalroe measuring 4011 sq.mtrs.
Date of latest modification prior to the present modification	11.09.2008
Particulars of the present modification	Total limits enhanced from Rs. 111 millions to Rs. 333.500 millions. Additional EM provided on Company’s immovable properties situated No. 477C, 4^th Phase, Industrial Area, Sy. No. 46, Nallakadaranahlli Village, Yeshwanthpur, Bangalore, KIADB property situated at Plot Nos. 13 to 16 SY. No. 97, Kunigal I phase Industrial Area, Kalanyakanhally Village, Tumkur. All other terms, conditions and existing securities to continue.

Name of the company

SUTURES INDIA PRIVATE LIMITED

Presented By

State Bank of India, Peenya Industrial Estate Branch, B-96, II Cross, I Stage, Bangalore – 560 058, Karnataka, India

1) Date and description of instrument creating the change

12.06.2004 (Regd. Doc. 58/09.07.2004)

a. General Agreement for the Grant of Small Industrial Advances and Hypothecation of movable, book-debts and other assets.

b. General Agreement for the grant of medium term advances and hypothecation of Movables, book-debts and other assets

(both document relate to single charge.)

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 65.000 Milions

Term Loan : Rs. 50.000 Millions

Letter of Credit : Rs. 9.000 Millions

BG : Rs. 6.000 Millions

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 by way of first charge on present and future stocks, book-debts, movable and other assets belonging to the company. Hypothecation of existing and proposed machinery and equitable belonging to the company.

4) Gist of the terms and conditions and extent and operation of the charge.

Interest @ 1.00% below State Bank Advance Rate, rising and falling therewith, effective rate, 9.25% p.a. with monthly rests.

Margin 25%: TL: 34.21% repayable in 8 half yearly installments of Rs. 6.250 Millions commencing after six months form the date of first disbursement.

5) Name and Address and description of the person entitled to the charge.

State Bank of India, Peenya Industrial Estate Branch, B-96, II Cross, I Stage, Bangalore – 560 058, Karnataka, India

6) Date and brief description of instrument modifying the charge

27.09.2004

a. Supplemental General Agreement for the grant of Small Industrial Advances and hypothecation of movables, book-debts and other assets

b. Letter evidencing deposit of Title Deed

(Both documents relate to single modification)

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.

Total Limits enhanced form Rs. 65.000 Millions to Rs. 76.000 Millions

(LC limits enhanced from Rs. 9.000 Millions to Rs. 15.000 Millions)

(Rs. In Millions)

Particulars	Existing Limits	Enhanced Limits
Term Loan	50.000	50.000
One time Part of TL	--	[7.000]
LC	9.000	20.000
BG	6.000	6.000
Total	65.000	76.000

Extension of equitable mortgage on company’s immovable property situated at No. 472-D, IV Phase, Peenya, Bangalore-560058 to continue.

All other terms, conditions and all existing securities to continue.

CONTINGENT LIABILITIES:

Particulars	31.03.2010 (Rs. In Millions)
Value of Counter Guarantee and other Guarantee provided to the banker	17.558
Claim made against the company not acknowledged
Excise	25.000
Income Tax	5.005
Corporate Guarantee given on behalf of Truskin Gloves Private Limited	25.000
Total	55.005

fixed assets:-

· Land

· Buildings

· Plant and machinery

· Computers

· Motor Vehicles

· Furniture and Fixtures

· Office equipments

website details:

Subject is a manufacturer and exporter of all types of surgical sutures like absorbable sutures and nonabsorbable sutures. Subject is exported to over 50 countries in Europe, South America, Africa and Asia. The manufacturing facilities conform to WHO GMP norms, ISO 9001/2000 and ISO 13485/2003 standards. Most of their products are CE and USFDA approved.

In the Indian market the company employs over 120 sales personnel and supplies its products to reputed hospitals and nursing homes through over 400 distributors. The company supplies its products to Union Govt., all state govt., local govt. hospitals either through tenders or prescription sales.

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.45.27
UK Pound	1	Rs.73.33
Euro	1	Rs.64.58

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	yes
--LISTED	YES/NO	No
--OTHER MERIT FACTORS	YES/NO	Yes
TOTAL		55

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.