MIRA INFORM REPORT

Report Date :

20.12.2011

IDENTIFICATION DETAILS

Name :	SREE ASTALAXMI SPINNING MILLS PRIVATE LIMITED
Registered Office :	Factory premises, Servey No.38, Light Industrial Area, Bhaattisavergaon Road, Adilabad – 504001, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	13.07.2001
Com. Reg. No.:	037019
Capital Investment / Paid-up Capital :	Rs.35.500 Millions
CIN No.: [Company Identification No.]	U17111AP2001PTC037019
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer Polyester Filament Yarn.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 280000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered normal for business dealings at usual 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 Office / Factory :	Factory premises, Servey No.38, Light Industrial Area, Bhaattisavergaon Road, Adilabad – 504001, Andhra Pradesh, India
Tel. No.:	91-8732-226692
Fax No.:	91-8732-226132
E-Mail :	asawavickey@gmail.com

DIRECTORS

As on 30.09.2010

Name :	Mr. Raghunath Mittal
Designation :	Director
Address :	4-6-355, N H 7, Adilabad-504001, Andhra Pradesh, India
Date of Appointment :	13.07.2001
DIN No.:	01555625

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	U18100AP2000PTC035266	Vinayaka Spintex Private Limited	Director	14/09/2000	14/09/2000	-	Active	NO
2	U17111AP2001PTC037019	Sree Astalaxmi Spinning Mills Private Limited	Director	13/07/2001	13/07/2001	-	Active	NO
3	U15141AP2004PTC042340	Raghunath Agro Tech Private Limited	Director	1/1/2004	1/1/2004	-	Active	NO
4	U18101AP2004PTC043986	Ayushman Eco-Products Private Limited	Managing director	25/08/2004	25/08/2004	-	Active	NO
5	U70101AP2006PTC050104	Accord Skycrapers Private Limited	Director	3/5/2006	3/5/2006	-	Active	NO
6	U01119AP2006PTC051272	K.K.Protiens Private Limited	Director	27/09/2006	27/09/2006	-	Active	NO
7	U45209AP2007PTC055814	Speyz Infra Projects Private Limited	Director	6/10/2007	6/10/2007	-	Active	NO
8	U45209AP2011PTC072482	Raghunath Meadows Private Limited	Director	3/2/2011	3/2/2011	-	Active	NO
9	U45209AP2011PTC073148	Raghunath Avenues Private Limited	Director	9/3/2011	9/3/2011	-	Active	NO
10	U01403AP2011PTC073655	Swift Agri Tech Private Limited	Director	1/4/2011	1/4/2011	-	Active	NO

Name :	Mr. Mahesh Kumar Khetan
Designation :	Director
Address :	6-7-72/1/A, Bhoktapur, Adilabad-504001, Andhra Pradesh, India
Date of Appointment :	13.07.2001
DIN No.:	02133124

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	U18100AP2000PTC035266	Vinayaka Spintex Private Limited	Director	14/09/2000	14/09/2000	-	Active	NO
2	U17111AP2001PTC037019	Sree Astalaxmi Spinning Mills Private Limited	Director	13/07/2001	13/07/2001	-	Active	NO
3	U15143AP2003PTC041519	Sri Salasar Balaji Agro Tech Private Limited	Director	14/08/2003	14/08/2003	-	Active	NO
4	U18101AP2004PTC043991	Salasarbalaji Garments Private Limited	Managing director	25/08/2004	25/08/2004	-	Active	NO
5	U01119AP2006PTC051272	K.K.Protiens Private Limited	Director	27/09/2006	27/09/2006	-	Active	NO
6	U27101AP2007PTC054296	Sri Salasar Balaji Metals Private Limited	Director	5/6/2007	5/6/2007	-	Active	NO
7	U13100AP2007PTC054410	Salasar Balaji Mines Private Limited	Director	12/6/2007	12/6/2007	-	Active	NO
8	U74900AP2007PTC054437	Sri Rama Business Enterprises Private Limited	Director	14/06/2007	14/06/2007	-	Active	NO
9	U45400AP2007PTC054561	Salasar Balaji Estates(India) Private Limited	Director	21/06/2007	21/06/2007	-	Active	NO
10	U40103AP2010PTC068430	Sree Astalaxmi Power Company Private Limited	Director	14/05/2010	14/05/2010	-	Active	NO
11	U74900AP2011PTC072743	Yellow Renewable Energy Private Limited	Director	19/02/2011	19/02/2011	-	Active	NO
12	U01403AP2011PTC073655	Swift Agri Tech Private Limited	Director	1/4/2011	1/4/2011	-	Active	NO
13	U51311MH2008PTC182455	Agrawal Ginning and Pressing Private Limited	Director	30/09/2011	30/09/2011	-	Active	NO

Name :	Mr. Athimolann Perumal Samy
Designation :	Director
Address :	3rd Floor, No 1, Mahalakshmi Tower, Lakmi Puram Main Road, Guntur-522002, Andhra Pradesh, India
Date of Appointment :	13.07.2001
Name :	Mr. Mukesh Rani Agarwal
Designation :	Director
Address :	5-1-266, Jambagh, Hyderabad-500195, Andhra, Pradesh, India
Date of Appointment :	13.07.2001

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Raghunath Mittal	637500
Sanjeev Mittal	100000
Rohit Goel	100000
Rajeev Kumar Mittal	150000
Santosh Kumar Goyal	150000
Mahesh Kumar Khetan	175000
Dhiraj Kumar Khetan	200000
Vikrant Kumar Khetan	215000
Kirti Khetan	142500
Vidya Devi Khetan	280000
Promod Kumar Agarwal (Huf)	35000
Rajesh Kumar Agarwal (Huf)	95000
Deepak Birolia	200000
Rajesh Kumar Agarwal	285000
Manju Devi Khetan	250000
Athimoolam Perumal Swamy	32500
Mukesh Rani Agarwal	202500
Shri Rama Pressing Factory	200000
Sri Anjanaiah Cotton Mills Private Limited	100000
Total	3550000

As on 30.09.2010

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	2.82
Directors or relatives of Directors	91.55
Other top fifty shareholders	5.63
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer Polyester Filament Yarn.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of Hyderabad, Adilabad main Branch, Adilabad – 504001, Andhra Pradesh, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Term Loans
From Banks
State Bank of Hyderabad TUF Loan A/c 62023011914	20.290	130.168
State Bank of Hyderabad TUF Loan A/c 62007595931	135.345	30.683
State Bank of Hyderabad Main Branch – Adhoc	20.068	0.000
State Bank of Hyderabad C C A/c 52137045292	46.048	8.233
Total	221.751	169.084
Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Anup Kumar Agarwal	0.500	0.000
Kamal Krishna Agro Trader, Adilabad	1.000	0.000
KGF Cotton Private Limited, Hydrabad	3.000	0.000
K K oil Refinery, Adilabad	2.600	0.000
Prmod Kumar A (Huf)	2.500	0.000
Raghunath and Company, Adialbad	5.000	15.000
Shyam Cotton Trading company, Adilabad	15.500	0.000
Santosh Devi Agarwal	0.800	0.000
K R Enterprise	0.000	20.265
Total	30.900	35.265

Note:

1. Secured by way of : (a) Equitable mortgage of immovable properties of the company ranking pari passu with the charge created in favour of SBH and also by hypothecation of stocks of raw material, finished goods, stock-in-process, stores etc. and collateral security of plant and machinery, furniture and Fixtures and other fixed assets of the company and personal guarantee of the directors
2. Secured by way of first charge of godowns, Furniture and Fixtures and other Fixed Assets of the Company and by personal Guarantee of Directors

Banking Relations :	--
Auditors :
Name :	MKA Associates Chartered Accountants
PAN.:	AAHFM2660F
Associates :	Raghunath and company Salasar Balaji Industries Shyam Cotton Trading Company Raghunath Agro Tech Private Limited Sri Salasar Balaji Agro Tech Private Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
4250000	Equity Shares	Rs.10/- each	Rs.42.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3550000	Equity Shares	Rs.10/- each	Rs.35.500 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		35.500	44.500	34.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		35.588	18.624	16.382
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		71.088	63.124	50.882
LOAN FUNDS
1] Secured Loans		221.751	169.084	167.970
2] Unsecured Loans		30.900	35.265	28.500
TOTAL BORROWING		252.651	204.349	196.470
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		323.739	267.473	247.352
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		185.180	183.377	172.111
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	97.337	16.384	27.153
	Sundry Debtors	34.465	60.295	45.686
	Cash & Bank Balances	2.008	2.015	1.336
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	19.786	12.552	12.932
Total Current Assets		153.596	91.246	87.107
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6.017	1.765	6.071
	Other Current Liabilities	0.286	0.433	0.583
	Provisions	8.734	4.952	5.232
Total Current Liabilities		15.037	7.150	11.886
Net Current Assets		138.559	84.096	75.221
MISCELLANEOUS EXPENSES		0.000	0.000	0.020
TOTAL		323.739	267.473	247.352

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	565.080	256.432	304.324
		Other Income	NA	0.705	0.764
		TOTAL (A)	NA	257.137	305.088
Less	EXPENSES
		Cost of Goods Sold	NA	148.522	218.514
		Manufacturing Expenses		48.819	37.399
		Administration, Selling and Distribution Expenses		14.763	12.518
		Preliminary Expenses Written Off		0.020	0.020
		TOTAL (B)	NA	212.124	268.451
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		55.403	45.013	36.637
Less	FINANCIAL EXPENSES (D)		14.350	13.787	9.401
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		41.053	31.226	27.236
Less/ Add	DEPRECIATION/ AMORTISATION (F)		28.784	29.095	26.635
	PROFIT BEFORE TAX (E-F) (G)		12.269	2.131	0.601
Less	TAX (I)		4.305	0.935	0.428
	PROFIT AFTER TAX (G-I) (J)		7.964	1.196	0.173
	Earnings Per Share (Rs.)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	NA	0.47	0.06
Net Profit Margin (PBT/Sales)	(%)	2.17	3.78	0.20
Return on Total Assets (PBT/Total Assets}	(%)	3.62	0.78	0.23
Return on Investment (ROI) (PBT/Networth)		0.17	0.03	0.01
Debt Equity Ratio (Total Liability/Networth)		3.77	3.35	4.09
Current Ratio (Current Asset/Current Liability)		10.21	12.76	7.33

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

The company is under the process of modernizing the entire plant and machinery and has partly implemented the modernization project under TUF’s scheme. The entire modernization is likely to be completed in the current year. The financial results for the current year are satisfactory.

FORM 8:

Corporate identity number of the company	U17111AP2001PTC037019
Name of the company	SREE ASTALAXMI SPINNING MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Factory premises, Servey No.38, Light Industrial Area, Bhaattisavergaon Road, Adilabad – 504001, Andhra Pradesh, India E-mail : asawavickey@gmail.com
This form is for	Modification of Charge
Charge identification (ID) number of the charge to be modified	90126506
Type of charge	Immovable property Book Debts Movable Property (Not being pledge) Others (Current assets)
Particular of charge holder	State Bank of Hyderabad, Adilabad main Branch, Adilabad – 504001, Andhra Pradesh, India E-Mail : adialbadmain@syhyd.co.in
Nature of instrument creating charge	Agreement of Hypothecation of Goods and Assets Deed of Guarantee Agreement of loan for overall limit
Date of instrument Creating the charge	30.06.2010
Amount secured by the charge	Rs.391.400 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest As per agreement enclosed Terms of repayment CC to be repayable on demand Term loan to be repayable as per agreement enclosed Margin Raw material : 25% Stock In Process : 25% Finished Goods : 25% Books Debts (90 Days limit) 50% Extend and operation of the charge The charge operates for duty repayment of loan together interest in time
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Primary : Working Capital : hypothecation of current assets of the company present and future. Term Loan : First charge over the fixed assets of the company
Date of instrument modifying the charge
Particulars of the present modification	Total Limit has been enhanced from Rs.256.900 Millions to Rs.391.400 Millions by way of increase in limit of Cash Credit to Rs.70.000 Million, term Loan III Rs.100.000 Million, SLC Limit of Rs.12.000 Millions, BG limit has increased from Rs.7.500 Millions to Rs.10.000 Millions.

FIXED ASSETS:

• Land (Free Hold)
• Builders
• Plant and Machinery
• Computers
• Furniture and Fixture
• Scooter
• Workers Quarter
• Office Equipments
• Car and Jeep
• Crates
• Godown Construction
• Godown Equipments
• Weigh Bridge

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.52.96
UK Pound	1	Rs.82.04
Euro	1	Rs.68.91

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		43

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.