MIRA INFORM REPORT

Report Date :

06.09.2011

IDENTIFICATION DETAILS

Name :	ENDEAVOUR INDUSTRIES LIMITED
Registered Office :	H No 8-2-120-1/9/F-5/B, L V Prasad Maarg, Road No. 2 Banjara Hills, Hyderabad – 500034, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	16.10.1998
Com. Reg. No.:	030343
Capital Investment / Paid-up Capital :	Rs.44.980 Millions
CIN No.: [Company Identification No.]	U17110AP1998PLC030343
TAN No.: [Tax Deduction & Collection Account No.]	HYDE00327F
PAN No.: [Permanent Account No.]	AAACE8007E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Trader of Iron and Steel Products and Agro Products Engineering Goods.
No. of Employees :	08 (In office) (Approximately)

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 1400000
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 :	Mr. Satyanarayana
Designation :	Accounts Department

LOCATIONS

Registered Office :	H No 8-2-120-1/9/F-5/B, L V Prasad Maarg, Road No. 2 Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India
Tel. No.:	91-40-66771057
E-Mail :	eil1998@sify.com chveeru@gmail.com

DIRECTORS

AS ON 29.09.2008

Name :	Mr. A B Satyavas Reddy
Designation :	Director
Address :	6-3-712/119, H NO.2/3 RT Panjagutta Colony, Hyderabad – 500082, Andhra Pradesh, India
Date of Birth/Age :	15.05.1963
Date of Appointment :	02.05.2006
Name :	Mr. M Shyam Prasad Reddy
Designation :	Director
Address :	H No. A-47, Film Nagar, Jubliee Hills, Hyderabad – 500033, Andhra Pradesh, India
Date of Birth/Age :	09.03.1961
Date of Appointment :	07.04.2001
Name :	Mr. V N Kesava Reddy
Designation :	Director
Address :	1-33/3/6/A/307 Chanda Nagar, Hyderabad – 500050, Andhra Pradesh, India
Date of Birth/Age :	01.06.1967
Date of Appointment :	08.06.2007
Name :	Mr. Girdharilal Rathi
Designation :	Director
Date of Birth/Age :	55 years
Qualification :	Post Graduate

KEY EXECUTIVES

Name :	Mr. Satyanarayana
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2008

Directors

Names of Shareholders	No. of Shares
A B Satyavas Reddy	310

Bodies Corporate

Names of Shareholders	No. of Shares
Bhagyanagar Investments and Trading Private Limited, Hyderabad	608500
Info Tech Infin and Trading Private Limited, Hyderabad	408500
Golkonda Finance and Trading Private Limited, Hyderabad	508500
G.B.Trading and Investments Private Limited, Hyderabad	508500
Lurnbini Electricals Private Limited, Hyderabad	9000
Swain Finance and Trading Private Limited, Hyderabad	8500
Prime Infoinvest Limited, Hyderabad	8500
Total	2060000

OTHERS

Names of Shareholders	No. of Shares
M.S. Murthy	511090
P. Anjaneyulu	507060
G.V.N.Sreedhar Raju	17500
K.P.C. Rao	1050
P.V.Ramana Reddy	1010
Md. Rizwan	10
Mukthar Unisa Rizwan	10
T.S.R.Murthy	10
B.V.Samba Siva Rao	10
B.Jhans	10
Total	1037760

AS ON 29.09.2008

Category	Percentage
Bodies corporate	66.50
Directors or relatives of Directors	0.01
Other top fifty shareholders	33.49
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of Iron and Steel Products and Agro Products Engineering Goods.
Exports :
Products :	Iron and Steel Products and Agro Products
Countries :	· Middle East · Hong Kong
Imports :
Products :	Iron and Steel Products
Countries :	Singapore
Terms :
Selling :	L/C, Cash, Credit
Purchasing :	L/C, Cash, Credit

GENERAL INFORMATION

Customers :

· End Users

· OEM’s

No. of Employees :

08 (In office) (Approximately)

Bankers :

· UCO Bank

Banjara Hills, Hyderabad, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Cash Credit from UCO Bank	NA	100.633
Letter of Credit from UCO Bank	NA	50.000
(The above Loans are secured against Mortgage of property and further secured by the personal guarantees of the directors)
Hire Purchase Loans Secured Against Hypothecation of Vehicles	NA	1.583
Total	NA	152.217

Banking Relations :	--
Auditors :
Name :	G V Suryanarayana Murthi Chartered Accountant
Address :	B-166, Sanjeeva Reddy Nagar Colony, Hyderabad – 500038, Andhra Pradesh, India

CAPITAL STRUCTURE

AS ON 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs.45.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4498070	Equity Shares	Rs.10/- each	Rs.44.980 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Expected Sales (2010-2011): Rs.7000.000 Millions.

The above information has been parted by Mr. Satyanarayana.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		44.980	30.980	30.980
2] Share Application Money		0.261	0.262	0.262
3] Reserves & Surplus		311.406	110.689	110.541
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		356.647	141.931	141.783
LOAN FUNDS
1] Secured Loans		152.058	152.216	64.238
2] Unsecured Loans		180.000	150.000	0.000
TOTAL BORROWING		332.058	302.216	64.238
DEFERRED TAX LIABILITIES		4.488	5.117	0.000
TOTAL		693.193	449.264	206.021
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		19.827	24.492	29.716
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	0.000	0.000	8.856
	Sundry Debtors	1954.161	1021.788	370.869
	Cash & Bank Balances	37.641	14.303	1.736
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	82.941	28.918	53.452
Total Current Assets		2074.743	1065.009	434.913
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors		613.372	182.365
	Other Current Liabilities	1401.378	25.422	75.096
	Provisions		1.445	1.151
Total Current Liabilities		1401.378	640.239	258.612
Net Current Assets		673.365	424.770	176.301
MISCELLANEOUS EXPENSES		0.001	0.002	0.004
TOTAL		693.193	449.264	206.021

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	6390.580	3333.964	6311.867
		Other Income	0.137	0.086	158.637
		TOTAL (A)	6390.717	3334.050	6470.504
Less	EXPENSES
		Purchases	6313.382	3278.296	6412.375
		Selling and Administrative Expenses	35.589	21.710	17.048
		Preliminary Expenses Written off	0.001	0.001	0.001
		Increased / (Decreased) In Stock	0.000	8.855	1.864
		TOTAL (B)	6348.972	3308.862	6431.288
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		41.745	25.188	39.216
Less	FINANCIAL EXPENSES (D)		29.619	13.222	27.398
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.126	11.966	11.818
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.299	5.255	3.341
	PROFIT BEFORE TAX (E-F) (G)		6.827	6.711	8.477
Less	TAX (I)		2.110	2.166	2.706
	PROFIT AFTER TAX (G-I) (J)		4.717	4.545	5.771
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		20.219	15.674	9.903
	BALANCE CARRIED TO THE B/S		24.936	20.219	15.674
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	110.733	NA	16.896
	TOTAL EARNINGS		110.733	NA	16.896
	IMPORTS
		Raw Materials	108.240	45.276	16.647
	TOTAL IMPORTS		108.240	45.276	16.647
	Earnings Per Share (Rs.)		1.47	1.86	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.07	0.13	0.09
Net Profit Margin (PBT/Sales)	(%)	0.11	0.20	0.13
Return on Total Assets (PBT/Total Assets}	(%)	0.33	0.62	1.82
Return on Investment (ROI) (PBT/Networth)		0.02	0.05	0.06
Debt Equity Ratio (Total Liability/Networth)		4.86	6.64	2.28
Current Ratio (Current Asset/Current Liability)		1.48	1.66	1.68

LOCAL AGENCY FURTHER INFORMATION

TRADE REFERENCES:

· Sujna Metal Products Limited

FORM 8:

This form is for	Modification of charge
Charge identification number of the modified	90263038
Corporate identity number of the company	U17110AP1998PLC030343
Name of the company	ENDEAVOUR INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	H.NO.8-2-120/1/9/F-5/BL.V.Prasadmarg Road No.2 Banjarahills, Hyderabad – 500034, Andhra Pradesh, India
Type of charge	Book Debts
Particular of charge holder	UCO Bank
Nature of description of the instrument creating or modifying the charge	The Deed of Hypothecation(OMNIBUS Agreement), dt.26th day of December, 2008 attached.
Date of instrument Creating the charge	26/12/2008
Amount secured by the charge	Rs.150.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest (1) Cash Credit: BPLR + 2% i.e presently 16.50% (monthly rests) and (2) Letter of Credit Limit : as per extant guidelines of our Bank. Terms of Repayment on demand Margin (1) Cash Credit: 25% on stocks & 40% on Book Debts (upto 90 days) and (2) Letter of Credit Limit : 25% at the time of issue of ILC/FLC by way of FDR with lien noted in favour of the Bank. Extent and Operation of the charge The charge operated inter alia for due repayment of the following working capital facilities. Cash Credit - 100.000 Millions Letter of Credit - 50.000 Millions --------------------- Total: 150.000 Millions Others
Short particulars of the property charged	First charge on all current assets of the Company i.e. present and future book debts. o/s monies, receivable claims, bills, contracts etc.,
Date of latest modification prior to the present modification	27/01/2006
Particulars of the present modification	The working capital limits has been enhanced to Rs.150.000 Millions i.e. Cash Credit facilities enhanced to Rs.100.000 Millions and Fresh sanction of Letter of Credit facilities of Rs.50.000 Millions.

FIXED ASSETS:

· Furniture and Fixtures

· Office Equipment

· Computers

· Software

· Vehicles

WEBSITE DETAILS:

Subject

Subject Suubject is a community based not-for-profit organisation that exists to provide a range of services to assist people living with disabilities.

Endeavour aims to provide the widest possible range of services to support people living with disabilities in their community. Company is staffed by people with the training, attitude, drive and compassion to work successfully in a business and in disability support.

The philosophy of Endeavour Industries is that any person living with a disability accessing services should come into an environment that is:

· supportive and values each person as an individual

· business like and operates in a corporate adult world

· focuses on self improvement and self determination wherever possible

· guided by policy, procedure and systems that ensure fairness, consistency and flexibility of service provision

· guided by sound management structures, particularly in the areas of finance, strategic planning and governance

· staffed by people with the training, attitude, drive and compassion to work successfully in a business and in disability support

· assessed for risk with systems and activities in place to minimize and control risk

Endeavour is a company striving to achieve every possible improvement to meet its vision and goals.  It has a well trained and motivated team of employees at every level of the organisation who make this happen; and this can be demonstrated by our ongoing business and service quality successes.

Endeavour has actively and rapidly moved into providing the widest possible range of services to support people living with disabilities in our community over the past 5 years.

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.45.94
UK Pound	1	Rs.74.28
Euro	1	Rs.64.97

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	YES
--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.