MIRA INFORM REPORT

Report Date :

26.09.2011

IDENTIFICATION DETAILS

Name :	SAI DEEPA ROCK DRILLS PRIVATE LIMITED
Registered Office :	Plot. NO 106, IDA Phase 2, Cherlapally, Hyderabad-500051, Andhra Pradesh,
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	19.01.2000
Com. Reg. No.:	01-33310
Capital Investment / Paid-up Capital :	Rs.13.056 Millions
CIN No.: [Company Identification No.]	U29150AP2000PTC033310
TAN No.: [Tax Deduction & Collection Account No.]	HYDS05110A
PAN No.: [Permanent Account No.]	AAFCS6791L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of DTH Hammers and DTH Button Bits.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 264000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well 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. 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. N. Ranga Roa
Designation :	Chairman
Contact No.:	91-9391023886
Date :	20.09.2010

LOCATIONS

Registered Office/ Factory :	Plot No.106, IDA Phase – II, Cherlapally, Hyderabad – 500051, Andhra Pradesh, India
Tel. No.:	91-40-27260217/ 27260438/ 27260439
Fax No.:	91-40-27261231/27260439
Mobile :	91-9391023886 / 9347186528 (Mr. N. Ranga Rao) / 91-9949082360 (Mr. Sreedharan K.M.)/ 91-9391327878 (Mr. N. Venkata Ratnam)
E-Mail :	saideep324@hotmail.com info@saideepa.com sales@saideepa.com padmaja271@rediffmail.com
Website :	http://www.saideepa.com

DIRECTORS

As on 14.09.2010

Name :	Ms. Uma Rani Nutakki
Designation :	Director
Address :	Plot No.187, Hasthinapuri Colony, Sainikpuri, Hyderabad – 500094, Andhra Pradesh, India
Date of Birth/Age :	02.08.1959
Date of Appointment :	01.10.2001
DIN No.:	01311510

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	U29150AP2000PTC033310	SAI DEEPA ROCK DRILLS PRIVATE LIMITED	Director	01-01-01	01-01-01	-	Active	NO
2	U14290AP2006PTC048803	DRILL SYSTEMS (INDIA)PVT LTD	Director	20-01-06	20-01-06	-	Active	NO
3	U29253AP2009PTC062752	CENERG GLOBAL TOOLS PRIVATE LIMITED	Director	10-02-09	10-02-09	-	Active	NO

Name :	Mr. Suresh Palle
Designation :	Director
Address :	Plot No.27/28, Jawahar Nagar, Moulali, Hyderabad – 500040, Andhra Pradesh, India
Date of Birth/Age :	07.08.1962
Date of Appointment :	01.01.2001
DIN No.:	01858600

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	U29120AP1996PTC023580	JAYA FORGINGS PRIVATE LIMITED	Director	21-03-96	21-03-96	-	Active	NO
2	U29150AP2000PTC033310	SAI DEEPA ROCK DRILLS PRIVATE LIMITED	Director	01-01-01	01-01-01	-	Active	NO
3	U29253AP2009PTC062752	CENERG GLOBAL TOOLS PRIVATE LIMITED	Additional director	18-05-11	18-05-11	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Venkata Ratnam
Designation :	Marketing Executive
Name :	Mr. N Ranga Roa
Designation :	Chairman

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 14.09.2010

Names of Shareholders	No. of Shares
N Ranga Rao	274800
N Uma Rani	340116
P Suresh	111675
N Venkatratnam	35300
N Jyotsna	20000
K Eswara Rao	7800
N Koteshwar Rao	110309
Sri Samhitha Systems Private Limited	100000
Total	1000000

List of Allottees

As on 20.01.2011

Names of Allottees	No. of Shares Allotted
N Ranga Rao	116868
N Uma Rani	169811
P Suresh	18881
Total	305560

As on 30.09.2009

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of DTH Hammers and DTH Button Bits.
Products :	DTH Hammers DTH Button Bits Integral Drill Steels Extension Drills steel Shank Adaptors
Exports:
Products :	DTH Hammers
Countries :	Singapore Canada USA Germany France Turkey South Korea Africa
Imports :
Products :	Raw Material Finished Goods
Countries :	China Germany

PRODUCTION STATUS

As on 31.03.2009

Licensed Capacity – Not Applicable

Installed Capacity – 480 MT

Installed Capacity – 51,121NOs

GENERAL INFORMATION

Customers :

• Retailers
• End Users

No. of Employees :

100 (Approximately)

Bankers :

• Canara Bank. First floor, Vamsi Estate, Ameerpet, Hyderabad – 500016, Andhra Pradesh, India

• Axis Bank # 5-3-338/3, LPF House, R.P. Road, Seunderabad-500003, Andhra Pradesh, India.
• ICICI Bank
• HDFC Bank
• Kotak Mahindra Bank
• SIDBI Bank

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
HDFC Honda city car loan	0.388	0.566
Kotak Mahindra – Alto Loan	0.061	0.132
HDFC Car Santro-i-10	0.156	0.230
Term Loan – Axis Bank	0.000	11.576
ICICI Swift Car Loan	0.300	0.000
Term Loan – Canara Bank	15.995	0.000
Cash Credit – Axis Bank	0.019	26.877
Cash Credit – Canara Bank	47.342	0.000
Term Loan – SIDBI	5.000	0.000
Total	69.261	39.381
Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
From Directors	2.068	1.869
From Share Holders / Blood Relatives	15.628	5.005
Total	17.696	6.874

Banking Relations :

Satisfactory

Auditors :
Name :	K S Ramakrishna and Company Chartered Accountant
Address :	285 and 286, 2^nd Floor, Chenoy Trade Centre, C Block, Parklane, Secunderabad – 500003, India
Tel No.:	91-40-27845499/ 66326263
Email:	sanagapally@yahoo.co.com
PAN :	AABFK9781B

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

After 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
1305560	Equity Shares	Rs.10/- each	Rs.13.056 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		10.000	10.000	10.000
2] Share Application Money		3.056	3.056	3.056
3] Reserves & Surplus		52.988	37.047	24.392
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		66.044	50.103	37.448
LOAN FUNDS
1] Secured Loans		69.261	39.381	30.999
2] Unsecured Loans		17.696	6.874	7.732
TOTAL BORROWING		86.957	46.255	38.729
DEFERRED TAX LIABILITIES		4.523	3.657	1.866
TOTAL		157.524	100.015	78.043
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		81.913	51.375	42.075
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		2.882	0.499	0.135
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	30.717	16.538	13.489
	Sundry Debtors	34.201	32.825	28.933
	Cash & Bank Balances	0.893	1.573	0.257
	Other Current Assets	2.041	1.686	4.570
	Loans & Advances	15.792	8.319	2.433
Total Current Assets		83.644	60.941	49.682
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.879	6.503	9.719
	Provisions	6.036	6.297	4.134
Total Current Liabilities		10.915	12.800	13.853
Net Current Assets		72.729	48.140	35.830
MISCELLANEOUS EXPENSES		0.000	0.001	0.003
TOTAL		157.524	100.015	78.043

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sale	286.585	212.540	113.037
		Jobwork Charges	0.299	1.392	0.000
		Income form sales of shares	0.000	0.000	2.863
		Other Income	0.308	3.084	3.186
		TOTAL (A)	287.192	217.016	119.086
Less	EXPENSES
		Employees Remuneration and Benefits	4.585	3.398	2.475
		Raw Material consumed	183.611	136.904	65.647
		Manufacturing Expenses	56.562	38.202	18.974
		Administrative and selling expenses	15.902	14.070	7.616
		Managerial Remuneration	2.460	2.280	1.927
		Amortisation of Misc Expenditure	0.002	0.002	0.002
		Stock Adjustment	(8.870)	(5.495)	(1.066)
		TOTAL (B)	254.252	189.361	95.575
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		32.940	27.655	23.511
Less	FINANCIAL EXPENSES (D)		6.941	5.121	3.730
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		25.999	22.534	19.781
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.157	1.790	1.375
	PROFIT BEFORE TAX (E-F) (G)		22.842	20.744	18.406
Less	TAX (I)		6.901	8.089	4.795
	PROFIT AFTER TAX (G-I) (J)		15.941	12.655	13.611
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		36.406	23.751	10.139
	BALANCE CARRIED TO THE B/S		52.347	36.406	23.750
	EARNINGS IN FOREIGN CURRENCY
	Export Earnings
	Commission Earnings
	Other Earnings
	TOTAL EARNINGS		45.014	37.827	0.007
	IMPORTS
	Raw Materials		20.513	26.238	8.258
	Stores & Spares		0.000	0.000	0.000
	Capital Goods		0.000	0.000	0.000
	Others		0.400	0.296	0.182
	TOTAL IMPORTS		20.913	26.534	8.440
	Earnings Per Share (Rs.)		15.94	12.66	13.61

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.55	5.83	11.43
Net Profit Margin (PBT/Sales)	(%)	7.97	9.76	16.28
Return on Total Assets (PBT/Total Assets}	(%)	13.80	18.47	23.58
Return on Investment (ROI) (PBT/Networth)		0.35	0.41	0.49
Debt Equity Ratio (Total Liability/Networth)		1.48	1.18	1.40
Current Ratio (Current Asset/Current Liability)		7.66	4.76	3.59

LOCAL AGENCY FURTHER INFORMATION

Form 8

This form is for	Modification of charge
Charge identification number of the modified	10206661
Corporate identity number of the company	U29150AP2000PTC033310
Name of the company	SAI DEEPA ROCK DRILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.106, IDA Phase – II, Cherlapally, Hyderabad – 500051, Andhra Pradesh, India
Type of charge	Book Debts Immovable Property Others (Plant and Machinery, Raw Material, Work-in-progress, Finished Goods
Particular of charge holder	Canara Bank, 1^st floor, Vamsi Estate, Ameerprt, Hyderabad, Andhra Pradesh – 500016, India E-mail id : padmaja271@rediffmail.com
Nature of description of the instrument creating or modifying the charge	Additional Mortgage by way of Deposit of Title Deeds for the enhanced limits
Date of instrument Creating the charge	30.06.2011
Amount secured by the charge	Rs.104.600 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest : Cash Credit - 12.75 % (Base Rate plus 2.50 %) Term Loan - 13.25 % (Base Rate plus 3.00 % ) Terms of Repayment : Term Loan : Repayable in 60 installments commencing after six months form the date of disbursement Working Capital Loan : on demand Margin:- 25.00 % on Cash Credit 26.41 % on New Term Loan
Short particulars of the property charged	Primary Security- Raw materials, Work in Progress, Finished Goods Plant and Machinery Collateral Security - 1) Plot No.106, Phase II, IDA, Cherlapally, Hyderabad 2) Plot No.33 & 34/A, Phase V, IDA, Cherlapally, Hyderabad 3) Plot No.164 & 165,Phase III, Pashmylaram, Medak Dt.
Date of instrument modifying the charge	04.06.2011
Particulars of the present modification	Limits enhanced from Rs.67.500 Millions to Rs.104.600 Millions (Cash Credit form Rs.40.0 Millions to Rs.60.0 Millions and Term Loan III of Rs.17.100 Millions )

Fixed Assets:

• Land
• Buildings
• Plant and Machinery
• Office Equipments
• Scooter
• Car
• Computers
• Furniture and Fixtures
• Building under construction
• Machinery under Errection

WEBSITE DETAILS

PROFILE

Subject its inception in 2000, has maintained the culture of innovation. Our highly trained professionals have developed some of the most technologically advanced Rock Drilling Tools and Mining Equipments in the market today, and thus have firmly established the company as a trend-setter in the infrastructure development industry. We are an eminent manufacturer, supplier and exporter of DTH Hammers, DTH Bits, Integral Drill Steels, Extension Equipments, Drifter Bits and related products used in Water Drilling, Mining, Tunneling, Quarrying and Construction Industries.

Their core values of quality, safety and environmental care are fundamental to all our operations. We aim to be the most customer responsive company in our industry, and therefore, we operate against clearly articulated and aligned objectives. The company is sensitive to the clients and their needs. Our team of professionals creates and delivers products and concepts that build winning brand equities. Owing to our premium quality of products and prompt delivery, we have attained a wide customer base spread across Singapore, Canada, U.S.A., Germany, France, Australia, Turkey, South Korea, and Africa and in different parts of the world.

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.49.67
UK Pound	1	Rs.76.51
Euro	1	Rs.66.98

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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		50

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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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.