MIRA INFORM REPORT

Report Date :

08.12.2011

IDENTIFICATION DETAILS

Name :	SRI CHAKRA CEMENT LIMITED (w.e.f. 30.10.2009)
Formerly Known As :	SRI CHAKRA CEMENTS LIMITED (w.e.f. 26.08.1996) GOLDSTAR CEMENTS LIMITED (w.e.f. March, 1988) PARTHASARATHY CEMENTS AND INDUSTRIES LIMITED
Registered Office :	6-3-668/10/66, Durga Nagar Co-1, Concrete House, Punjagutta, Hyderabad – 500082, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	10.03.1981
Com. Reg. No.:	01-2952
Capital Investment / Paid-up Capital :	Rs.161.296 Millions
CIN No.: [Company Identification No.]	L26942AP1981PLC002952
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Cement
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (16)

RATING		STATUS	PROPOSED CREDIT LINE
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears huge accumulated losses recorded by the company. However, Trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a secured trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered/ Administrative Office :	6-3-668/10/66, Durga Nagar Co-1, Concrete House, Punjagutta, Hyderabad – 500082, Andhra Pradesh, India
Tel. No.:	91-40-55612374 / 66614633
Fax No.:	91-40-23406457
E-Mail :	sccl@rediffmail.com gsal@rediffmail.com
Factory 1 :	Narasimhapuri Karampudi Gurajala Taluk, Guntur District – 500000 Andhra Pradesh, India
Tel. No.:	91-40-82328254
Factory 2 :	Annamarajupeta Alamanda Vizayanagaram District – 535003, Andhra Pradesh, India

DIRECTORS

(AS ON 30.09.2010)

Name :

Mr. Nendraganti Krishna Mohan

Designation :

Whole Time Director

Address :

Plot No. 603, Subham Enclave, Ameerpet, Hyderabad – 500016, Andhra Pradesh, India

Date of Birth/Age :

15.03.1939

Date of Appointment :

09.03.1999

DIN No.:

00698772

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	L28112AP1986PLC006124	GSAL (INDIA) LIMITED	Managing director	28/01/1986	28/01/1986	Active	NO
2	L26942AP1981PLC002952	SRI CHAKRA CEMENT LIMITED	Managing director	18/07/2011	27/09/1997	Active	YES
3	U26941KA1979PLC003477	SOUTH INDIA CEMENTS LIMITED	Director	18/07/2011	5/4/2004	Active	NO
4	U65993AP1989PLC010010	ENVEAN LEASING AND INVESTMENTS LIMITED	Director	1/9/2005	1/9/2005	Active	NO
5	U65993AP1900PLC006314	JITHARAM FINANCE AND INVESTMENTS LIMITED	Director	1/9/2005	1/9/2005	Active	NO
6	U65993AP1989PLC009964	KRISHNA RAMA INDUSTRIAL INVESTMENTS LIMITED	Director	1/9/2005	1/9/2005	Active	YES
7	U18100AP1991PLC012337	ADITYA SPINNERS LIMITED	Director	28/09/2011	21/01/2011	Active	NO
8	U26942AP1992PLC014003	SRI NARASIMHA CEMENTS AND POWER LIMITED	Additional director	18/07/2011	18/07/2011	Active	NO

Name :

Mr. Vijay Kumar Kapilavai

Designation :

Director

Address :

409, Tilasi Apartments, Srinagar Colony, Hyderabad – 500073, Andhra Pradesh, India

Date of Birth/ Age:

01.01.1964

Date of Appointment :

31.03.2008

DIN No.:

00769568

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U26942AP1992PLC014003	SRI NARASIMHA CEMENTS AND POWER LIMITED	Director	10/7/1992	10/7/1992	-	Active	NO
2	U74899DL1993PLC055221	ORBIT CEMENT LIMITED	Director	31/05/1996	31/05/1996	-	Active	NO
3	U26942AP1985PLC005261	PRABHU CEMENTS LIMITED	Managing director	14/02/2007	12/2/2003	-	Active	NO
4	U74899DL1994PLC062830	VINAY POWER GENERATIONS LIMITED	Director	30/09/2004	1/10/2003	14/07/2010	Active	NO
5	U18100AP1991PLC012337	ADITYA SPINNERS LIMITED	Managing director	1/4/2010	1/7/2004	-	Active	NO
6	L28112AP1986PLC006124	GSAL (INDIA) LIMITED	Director	29/04/2005	29/04/2005	-	Active	NO
7	U65993AP1989PLC010010	ENVEAN LEASING AND INVESTMENTS LIMITED	Director	1/9/2005	1/9/2005	-	Active	NO
8	U40109AP1994PLC017802	SRI BHAVA STEEL AND POWER LIMITED	Director	29/11/2008	1/6/2007	-	Active	YES
9	L26942AP1981PLC002952	SRI CHAKRA CEMENT LIMITED	Managing director	30/06/2009	31/01/2008	-	Active	YES
10	U26941KA1979PLC003477	SOUTH INDIA CEMENTS LIMITED	Nominee director	5/12/2008	5/12/2008	19/07/2011	Active	NO

Name :

Mr. K. P. Patnaik

Designation :

Director

Address :

Plot No.11, Phase II, Old Bowenpally, Secunderabad, Hyderabad – 500070, Andhra Pradesh, India

Date of Appointment :

31.10.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Nendraganti Krishna Mohan	1472300
Vijay Kumar Kapilavai	125000

(AS ON 30.09.2010)

Equity Shares Break – Up

Category	Percentage
Public Financial companies	8.72
Mutual Funds	0.01
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	0.02
Bodies corporate	37.97
Directors or relatives of directors	13.21
Other top fifty shareholders	11.83
Others	28.24
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cement

Products :

Products Description	Item Code No.
Ordinary Portland Cement	12269/87

PRODUCTION STATUS (AS ON: 31.03.2010)

Particulars	Unit – I	Unit - II
Licensed Capacity (TPA)	698000	300000
Installed Capacity (TPA) (Cement)	297000	200000

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Union Bank of India

· State Bank of India

· Vijaya Bank

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
Term Loan	422.044	422.044
Working Capital	22.000	22.000
Total	444.044	444.044
Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From directors	26.079	2.446
Security Deposits (From Dealers)	20.625	0.000
From others	263.735	221.990
TOTAL	310.439	224.436

Banking Relations :	--
Auditors :
Name :	Satyanarayan and Company Chartered Accountant
Address :	5-5-88/5, Amar Mansion, Ranigunj, Secunerabad – 500003, Andhra Pradesh, India
Tel No.:	91-40-27718992/ 27715028/ 66339972
Fax No.:	91-40-27714814
Email :	satco@sol.net.in
PAN No.:	AANFS5423Q
Related Parties :	· GSAL (India) Limited · Modern Poly Plast · Jitharmen And Investments Limited · Modern Plastic Corporation · Envean Leasing and Investment Limited · Krishna Rama Industries Limited

CAPITAL STRUCTURE

(AS ON 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17190080	Equity Shares	Rs.10/- each	Rs.171.901 Millions
	Less : Calls In Arrears By Director - 0.000
	By Others - 10.605		Rs.10.605 Millions
	Total		Rs.161.296 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		161.296	161.296	161.296
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1.000	1.000	1.000
4] (Accumulated Losses)		(370.471)	(405.601)	(437.147)
NETWORTH		(208.175)	(243.305)	(274.851)
LOAN FUNDS
1] Secured Loans		444.044	444.044	444.043
2] Unsecured Loans		310.439	224.436	154.477
TOTAL BORROWING		754.483	668.480	598.520
DEFERRED TAX LIABILITIES		48.305	43.956	43.955
TOTAL		594.613	469.131	367.624
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		420.570	450.299	184.903
Capital work-in-progress		89.268	24.109	1.187
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	96.273	85.689	68.831
	Sundry Debtors	35.608	66.010	36.695
	Cash & Bank Balances	15.115	10.173	3.736
	Other Current Assets	143.700	141.528	149.087
	Loans & Advances	214.271	205.325	451.688
Total Current Assets		504.967	508.725	710.037
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	364.902	458.336	83.877
	Other Current Liabilities	55.290	55.666	391.084
	Provisions	0.000	0.000	53.542
Total Current Liabilities		420.192	514.002	528.503
Net Current Assets		84.775	(5.277)	181.534
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		594.613	469.131	367.624

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	30.06.2008
	SALES
		Income		1087.033	1058.861
		Other Income		24.396	5.737
		TOTAL (A)	1092.900	1111.429	1064.598
Less	EXPENSES
		Increase/ (Decrease) in Stock		(1.385)	(8.456)
		Manufacturing, Administrative, Selling and Other Expenses	986.300	1056.261	910.674
		TOTAL (B)	986.300	1054.876	902.218
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		106.600	56.553	162.380
Less	FINANCIAL EXPENSES (D)		34.800	1.422	89.322
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		71.800	55.131	73.058
Less/ Add	DEPRECIATION/ AMORTISATION (F)		32.300	23.327	16.977
	PROFIT BEFORE TAX (E-F) (G)		39.500	31.804	56.081
Less	TAX (H)		0.000	0.000	0.000
	PROFIT AFTER TAX (G-H) (I)		39.500	31.804	56.081
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	(437.148)	(492.881)
Less/ Add	PREVIOUS YEAR ADJUSTMENT		NA	(0.258)	(0.348)
	BALANCE CARRIED TO THE B/S		NA	(405.602)	(437.148)
	Earnings Per Share (Rs.)		2.30	1.85	3.26

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.61	2.86	5.27
Net Profit Margin (PBT/Sales)	(%)	NA	2.93	5.30
Return on Total Assets (PBT/Total Assets}	(%)	4.27	3.32	6.27
Return on Investment (ROI) (PBT/Networth)		(0.19)	(0.13)	(0.20)
Debt Equity Ratio (Total Liability/Networth)		(5.64)	(4.86)	(4.10)
Current Ratio (Current Asset/Current Liability)		1.20	0.99	1.34

LOCAL AGENCY FURTHER INFORMATION

NOTE:

The Registered office of the company has been shifted from, 6-3-802, Ameerpet, Hyderabad – 500016, Andhra Pradesh, India, to the present address w.e.f. 31.10.2006.

FORM: 8

Bankers Charges Report as per Registry

Name of the company	GOLDSTAR CEMENTS LIMITED (hereinafter referred to as “the company”)
Presented By	V V S R ANJANEYULU DIRECTOR (name and Designation of the Official of the company)
1) Date and description of instrument creating the change	07.06.1991 Deed of Hypothecation executed by the company jointly in favour of Industrial Development Bank of India (IDBI), Industrial finance corporation of India (IFCI). The Industrial credit and Investment corporation of India limited (ICICI) and industrial reconstruction Bank of India (IRBI). (hereinafter collectively referred to as “the Lenders”).
2) Amount secured by the charge/amount owing on the securities of charge	The term loan of Rs. 35.000 millions agreed to be lent and advanced by IDBI to the company under project finance participation scheme (PFPS) together with interest, additional interest, liquidated damages, premia on prepayment or on redemption, costs, charges, expanses and all other moneys payable by the company to IDBI in terms of the loar agreement dated the 7^th day of June 1991 between the company of the other part.
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	The whole of the movable properties of the company including its movable plants and machinery spares tools and accessories and other movables, both present and future (save and except book debts). Substitution or Addition.
4) Gist of the terms and conditions and extent and operation of the charge.	(a) The charge operate as security, inter alia, for the due payable by the company to IDBI of its term loan of RS. 35.000 millions together with interest. Liquidation damages premia on prepayments or on redemption, costs, charges, expenses and all other moneys payable by the company to IDBI in terms of the said Loan agreement.
5) Name and Address and description of the person entitled to the charge.	The industrial Development Bank of India Limited IDBI Tower. Bombay – 400005
6) Date and brief description of instrument modifying the charge	Date 21.02.1992 no instrument was executed. A joint mortgage by deposit of title deeds was created by the company in favour of IDBI, IFCI, ICICI, and IRBI by constructive delivery and deposit of title deeds with IDBI, IDBI acting for itself and as agent of IFCI. ICICI and IRBI. In respect of all the immovable properties of all the company situated at villages petasannigondle and signarutla, Gurozala Taluk, District Guntur, In Andhra Pradesh as security, inter alia for the due repayment and discharge by the company to IDBI of its term Loan of Rs. 35.000 millions, together with interest, additional interest, liquidation damages, oremia on prepayment or on redemption costs. Charges, expenses and other monies payable by the company to IDBI under the said Loan agreement.
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.	The IDBI term Loan of RS. 35.000 millions together interest with additional interest, liquidated damages, premia on prepayment or on redemption, cost, charges expenses and all other company to IDBI in terms of of the said Loan Agreement which is secured by the said deed of hypothecation dated the 7^th day of June 1991 being the original charges, is now also secured by the said joint mortgage by deposit of title deeds created by the company on 21.02.1992 in favour of IDBI and others.

FIXED ASSETS:

· Leasehold land

· Buildings

· Plant and Machinery

· Electrical Machinery

· Office Equipment

· Furniture and Fixtures

· Quarry Equipment

· Vehicles

· Miscellaneous assets

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.51.39
UK Pound	1	Rs.80.20
Euro	1	Rs.68.92

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	1
--CREDIT LINES	1~10	--
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		16

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.