MIRA INFORM REPORT

Report Date :

17.01.2011

IDENTIFICATION DETAILS

Name :	VAMSHI MOTORS PRIVATE LIMITED
Formerly Known As :	BHUVANCHANDRA CHIT FUND PRIVATE LIMITED
Registered Office :	D. No. 19-1041/1, P Fort, sagar Road, Minalguda, Nalgonda-508207, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	18.11.1996
Com. Reg. No.:	025728
CIN No.: [Company Identification No.]	U27130AP1996PTC025728
TAN No.: [Tax Deduction & Collection Account No.]	HYDV03079G
PAN No.: [Permanent Account No.]	AACFV7333H
Legal Form :	Private Limited Liability Company
Line of Business :	Dealer of Tractors, Auto, Minibus, Spares.

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 53296
Status :	Satisfactory
Payment Behaviour :	Usually 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 usually correct and as per commitments. 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 – 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 :	Ms. Manga
Designation :	Accountant
Contact No.:	91-8689-231224
Date :	14.01.2011

LOCATIONS

Registered Office :	D. No. 19-1041/1, P Fort, sagar Road, Minalguda, Nalgonda-508207, Andhra Pradesh, India
Tel. No.:	91-8689-231830/231224
Fax No.:	91-8689-231880
E-Mail :	vamshimotors@gmail.com info@vamshi.co.in vamshi_pnr@hotmail.com
Website :	www.vamshi.co.in
Area :	2500 Sq. ft.
Location :	Owned

DIRECTORS

As on : 25.09.2010

Name :	Mr. Nageshwar Rao Polisetty
Designation :	Director
Address :	403, Sai Apartments, 19-832, Hanumanpet, Miryalaguda, Nalgonda-508/207, Andhra Pradesh, India
Date of Birth/Age :	07.04.1964
Qualification :	Graduate
Date of Appointment :	11.12.1999
Name :	Ms. Anjaiah Polisetty
Designation :	Director
Address :	101, Manabhumi Ashoka Pride, 1-10-14, Road-04, Ashok Nagar, Hyderabad-500020, Andhra Pradesh, India
Date of Birth/Age :	01.04.1963
Qualification :	Graduate
Date of Appointment :	11.12.1999

KEY EXECUTIVES

Name :	Ms. Manga
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.09.2010

Names of Shareholders	No. of Shares
P. Nageshwar Rao	48700
P. Anjaiah	162000
P. Sarojanamma	50000
P. Sathayavati	96550
P. Sulochana	101550
A. Lingaiah	100
A. Sujatha	100
G. Murali	100
M. Kishore	100
M. Vanaja	100
P. Sateesh Kumar	100
G. Ramu	100
P. Nageshwar Rao (HUF)	40000
J. Bhaskar Reddy	100
J. Venkat Reddy	100
N. Sathyanarayana Reddy	100
Talla Venkat Reddy	100
Golla Sandeep	100
Total	500000

As On 25.09.2010

Category	Percentage
Directors or relatives of Directors	99.76
Other top fifty shareholders	0.24
Total	100.00

BUSINESS DETAILS

Line of Business :	Dealer of Tractors, Auto, Minibus, Spares.
Agencies Held :	Mahindra And Mahindra Limited
Terms :
Selling :	Cash, Credit (30, 60 days)
Purchasing :	Cash, Credit (30, 60 days)

GENERAL INFORMATION

Customers :

End Users, OEM’s

No. of Employees :

40 (Approximately)

Bankers :

State Bank of Hyderabad, Main Branch, Miryalaguda, Nalgonda, Andhra Pradesh, India

Facilities :

Cash Credit Rs.45.000 Millions

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
OCC/OD From S B H, Mirayalguda (Secured against hypothecation of stocks both Present and Future and Personal gurantee by directors)	19.106	4.632
Term Loan – SBH, Miryalaguda (On the pledge of Fixed Deposit and hypothecation of stocks)	4.780	0.000
Total	23.886	4.632
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Directors	1.060	3.804
From Shareholders	2.953	3.685
Total	4.013	7.489

Banking Relations :	--
Auditors :
Name :	P R Kirshna And Associates Chartered Accountant
Address :	115-116, Sunny Palace, 3-6-728, Himayatnagar, Hyderabad-500002, Andhra Pradesh, India
Associates/Subsidiaries :	NIL

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 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		5.000	5.000	3.500
2] Share Application Money		0.000	0.000	0.835
3] Reserves & Surplus		8.324	6.008	3.867
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		13.324	11.008	8.202
LOAN FUNDS
1] Secured Loans		23.885	4.632	6.755
2] Unsecured Loans		4.014	7.489	2.075
TOTAL BORROWING		27.899	12.121	8.830
DEFERRED TAX LIABILITIES		0.018	0.096	0.210
TOTAL		41.241	23.225	17.242
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.945	7.690	7.120
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.100	0.100	0.100
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	30.985	16.660	25.159
	Sundry Debtors	13.287	5.375	8.860
	Cash & Bank Balances	11.226	5.645	5.621
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.133	5.427	9.077
Total Current Assets		57.631	33.107	48.717
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	18.377	13.640	28.582
	Other Current Liabilities	5.039	4.019	7.672
	Provisions	0.019	0.013	2.441
Total Current Liabilities		23.435	17.672	38.695
Net Current Assets		34.196	15.435	10.022
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		41.241	23.225	17.242

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sale And Other Income	225.469	239.264	242.751
		TOTAL	225.469	239.264	242.751
Less	EXPENSES
		Expenses	NA	NA	NA
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)		4.592	4.472	3.621
Less/ Add	DEPRECIATION/ AMORTISATION		NA	NA	NA
	PROFIT BEFORE TAX		NA	NA	NA
Less	TAX		NA	NA	NA
	PROFIT AFTER TAX		NA	NA	NA
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	NA
	BALANCE CARRIED TO THE B/S		8.324	6.008	3.867
	Earnings Per Share (Rs.)		NA	--	--

Expected Sales (2010-2011) : Rs.250.000 Millions

KEY RATIOS

PARTICULARS	31.03.2010	31.03.2009	31.03.2008
Debt Equity Ratio (Total Liability/Networth)	3.85	2.70	5.79
Current Ratio (Current Asset/Current Liability)	2.45	1.87	1.25

LOCAL AGENCY FURTHER INFORMATION

Note:

The registered office address has been shifted from 29, Miryalgudanalgonda Dist-508207 , Andhra Pradesh, India to present w.e.f. 01.04.2006

Sundry Creditors Details:

(Rs. In Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Creditors for Purchases/ Expenses/ Channel funding	18.054	13.428	27.147
Other Creditors	0.323	0.212	1.435
Total	18.377	13.640	28.582

Form 8:

This form is for	Modification of charge
Charge identification number of the modified	90259034
Corporate identity number of the company	U27130AP1996PTC025728
Name of the company	Vamshi Motors Private Limited
Address of the registered office or of the principal place of business in India of the company	19-1041/1 , "P" Fort, Sagar Road, Miryalguda-508207, Andhra Pradesh, India
Type of charge	Book Debts Movable Property Immovable Property
Particular of charge holder	State Bank of Hyderabad, Msme,Miryalaguda Branch, Aphb Colony, Miryalaguda- 508207, Andhra Pradesh, india
Nature of description of the instrument creating or modifying the charge	1. Memorandum Of Deposit of Title Deeds For Creation Of Further Charge For Term Loan/Overall Limit Dated 04/01/2010. 2. Supplemental Agreement of Loan For Increase In The Overall Limit Dated 04/01/2010. 3. Supplemental Agreement of Hypothecation Of Goods And Assets For Increase In The Overall Limit Dated 04/01/2010. 4. Supplemental Deed of Gurantee For Increase In Overall Limit Dated 04/01/2010.
Date of instrument Creating the charge	04.01.2010
Amount secured by the charge	Rs.45.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 1. Int On C C @ Sbh Plr I.E., 12.25% P A And Subject To Revision From Time To Time 2. Int On S T Corporate Loan @12.75%P A I.E., @ 0.50% Above Sbh Plr With Monthly Rests. Terms Of Repayment 1. The S T Corporate Loan Is To Be Repaid In 36 Monthly Installments Of Rs.1.39 Lacs Each Commencing From Jan 2010. 2. Cc And Bank Guarantee Shall Be For 1 Year From The Date of Present Sanction. Margin 1. For Cc - Raw Material, Stock In Process And Finished Goods - 25% And For Book Debts 50%. 2. For B G - 15% And If Disputed B G Then 100%. Extent And Operation Of The Charge 1.Primary Security -1st Charge On Current Assets 2. Collateral Security - Equitable Mortgage Of Immovable Properties, Pledge Of St Deposit Receipts, Personal Guarantee Of Directors And Their Relatives As Per Terms And Conditions Others Nil
Short particulars of the property charged	All Current Assets Including Hypothecation Of Stocks (Tractors, Stores, Spares, Book Debts And Receivables) Em Of Company Office And Show Room At 19/1040/1, Admeasuring 935 Sq Yds, Sy No.789, B. No. 19, Sagar Road, Miryalguda, Nalgonda Dist Belonging To The Company. Em Of Properties Of M D / Director Viz.,1.Workshop Shed Building/Land Of 976 Sq Yds In B.19, Sy No.789, Miryalguda. 2.3 Nos Open Plots 11to13 In Kondamallepally(V), Devarakonda (M), Nalgonda Dist. Em Of Open Land At 1.Sy. No. 840 /841, B. No. 18, Ashok Nagar, Miryalguda Of Viz., Smt P Sulochana and Satyavathi 2.Sy. No. 841, B. No.19, Sagar Road, Miryalguda Of Sarojanamma (Guarantor) Em Of Properties Of Relatives Of Directors Smt P Sulochana and Satyavathi Viz., Open Land Of 651 Sq Yds, Sy. No. 840and841, B. No. 18, Ashoknagar, Miryalguda. Em Of Property Of P Anjaiah, Director Viz., Open Land Of 270.39 Sq Yds, Plot No. 188, Sy. No. 74, Journalist Coop Society, Gopanapally, Serilingampally(M), R R Dist. Em Of Open Land At 18-1283, Admeasuring 260 Sq Yds, Sy No.841, B. No. 19, Sagar Road, Miryalguda, Nalgonda Dist Belonging To Smt P Sarojanamma, Relative Of Directors. Em Of Properties Of M D / Director Viz.,Workshop Shed Building/Land Of Acres 0-8 3/4 In Sy No.317, Ibrahimpeta(V), Anumula (M), Nalgonda Dist. Pledge Of Special Term Deposit Receipts Having Value of Rs.2.632 millions Detailed In Terms And Conditions.

Fixed Assets:

• Land
• Showroom Building
• Workshop Building
• Office Equipment
• Furniture And Fixtures
• Motor Vehicles
• Workshop Equipment
• Computers
• Generator Set

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.45.30
UK Pound	1	Rs.71.73
Euro	1	Rs.60.40

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	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		45

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.