MIRA INFORM REPORT

Report Date :

04.04.2012

IDENTIFICATION DETAILS

Name :	SIVA SWATI TEXTILE PRIVATE LIMITED
Registered Office :	D. No. 6-179, GT Road, Ganapavaram, Guntur – 522619, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	11.02.2005
Com. Reg. No.:	01-045340
Capital Investment / Paid-up Capital :	Rs.318.890 Millions
CIN No.: [Company Identification No.]	U17300AP2005PTC045340
TAN No.: [Tax Deduction & Collection Account No.]	HYDS10848F
PAN No.: [Permanent Account No.]	AAICS7570G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Cotton Yarn.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 1800000
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 – 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 :	D. No. 6-179, GT Road, Ganapavaram, Guntur – 522619, Andhra Pradesh, India
Tel. No.:	91-8647-252243/ 259693
Fax No.:	91-8647-257262
E-Mail :	dsc_director@rediffmail.com info@sivaswatitextile.com
Website :	www.sivaswatitextile.com

DIRECTORS

As on 29.09.2011

Name :

Mr. Teene Venkayamma Prathipati

Designation :

Director

Address :

4/286, 2^nd Lane, Pandaripuram, Chilakaluripet, Guntur – 522616, Andhra Pradesh,India

Date of Birth/Age :

29.07.1960

Date of Appointment :

11.02.2005

DIN No.:

00432330

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	U17300AP2005PTC045340	SIVA SWATI TEXTILE PRIVATE LIMITED	Director	11/02/2005	11/02/2005	-	Active	NO
2	U45200AP2005PTC045969	SIVASWATHI CONSTRUCTIONS PRIVATE LIMITED	Director	25/04/2005	25/04/2005	27/08/2011	Active	NO
3	U14200AP2010PTC068298	SWATHI BHARADHWAJASA MINING PRIVATE LIMITED	Director	6/05/2010	6/05/2010	-	Active	NO
4	U51909WB2009PTC131729	AEGIS TRACOM PRIVATE LIMITED	Director	27/05/2010	27/05/2010	-	Active	NO
5	U14102AP2010PTC068787	SIVA STONA GRANITE PRIVATE LIMITED	Director	4/06/2010	4/06/2010	-	Active	NO

Name :

Mr. Narendra Kumar Anne

Designation :

Director

Address :

4-4-173/2, Flat No. B 7/2, Chandra Mouli Nagar, Guntur – 522007, Andhra Pradesh, India

Date of Birth/Age :

03.06.1962

Date of Appointment :

11.02.2005

DIN No.:

00433129

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	U91990AP2002NPL039201	ANDHRA PRADESH SPINNING MILLS ASSOCIATION	Director	27/06/2002	27/06/2002	-	Active	NO
2	U17300AP2005PTC045340	SIVA SWATI TEXTILE PRIVATE LIMITED	Director	11/02/2005	11/02/2005	-	Active	NO
3	U17291AP2010PLC067906	SPINGLOW TEXTILES LIMITED	Director	12/04/2010	12/04/2010	-	Active	NO
4	U17200AP2010PTC068738	SWARNALATHA SPINTEX PRIVATE LIMITED	Director	1/12/2010	1/12/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
Prathipati Teene Venkayarnma	916266
Anne Narendra Kurnar	48000
Geetha K. Paladugu	100841
Kuchipudi Lakshrni	10000
Kakumanu Ramachandraiah	20000
Kakumanu Sri Latha	9500
Kuchipudi Venkateswara Rao	60500
Muddana Malleswara Rao	7500
Muddana Nageswara Rao	7500
Nadella Siva Rarna Krishna	60000
Paladugu Venkatswara Rao	49363
Aegis Tracom Private Limited, India	200000
Rarnineni Dharma Prachark	161282
Chilukoori Satish	22893
Komapalli Srinivas	36320
Veeramachanenni Satish	22893
Tammineedi Sirisha	11500
Satish B. Vemana	30372

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton Yarn.

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Installed Capacity	Actual Production
Spindles	Kgs.	60624	9284089

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, Industrial Finance Branch, Rajbhavan Road, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India

· State Bank of Mysore, Industrial Finance Branch, Ameerpet, Hyderabad, Andhra Pradesh, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	592.442	712.178
Working capital loans banks secured	180.784	126.009
Other debt secured	62.355	2.107
Total	835.581	840.294
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Other debt unsecured	0.075	20.059
Total	0.075	20.059

Banking Relations :	--
Auditors :
Name :	Polineni Associates Chartered Accountants
Address :	D.No.6-12-47, 12/1-Arundelpet, Guntur-522002, Andhra Pradesh, India
PAN.:	AACFP7994F
Enterprises where the relatives of Key Managerial Personnel (or) the Key Managerial Personnel Exercise Control or Exercise Significant influence :	· Super Trading Company · Swathi Cotton Private Limited · Global Traders
Enterprises Owned by Relatives of Key Managerial Personnel :	Prathipati Gardens

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.100/- each	Rs.350.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3188902	Equity Shares	Rs.100/- each	Rs.318.890 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		318.890	318.890	318.890
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		134.593	71.966	65.563
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		453.483	390.856	384.453
LOAN FUNDS
1] Secured Loans		835.581	840.294	937.020
2] Unsecured Loans		0.075	20.059	4.919
TOTAL BORROWING		835.656	860.353	941.939
DEFERRED TAX LIABILITIES		97.491	50.683	0.000
TOTAL		1386.630	1301.892	1326.392
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		979.485	1035.140	1085.999
Capital work-in-progress		38.347	0.000	1.934
INVESTMENT		18.780	17.730	13.240
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	213.357	104.730	69.133
	Sundry Debtors	215.252	147.722	180.520
	Cash & Bank Balances	3.923	5.449	7.657
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	49.893	58.917	30.485
Total Current Assets		482.425	316.818	287.795
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	71.080	34.552	37.479
	Other Current Liabilities	0.000	0.000	1.265
	Provisions	61.372	33.301	23.899
Total Current Liabilities		132.452	67.853	62.643
Net Current Assets		349.973	248.965	225.152
MISCELLANEOUS EXPENSES		0.045	0.057	0.067
TOTAL		1386.630	1301.892	1326.392

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1681.647	1333.277	1180.583
		Other Income	3.826	8.846	26.379
		TOTAL (A)	1685.473	1342.123	1206.962
Less	EXPENSES
		Increase / Decrease in Stock		(0.719)	10.299
		Cost of Goods Sold		1036.561	963.909
		Purchases of Trading Goods	1421.623	9.314	33.671
		Payments and Benefits to Employees		21.770	13.935
		Administrative Expenses, Selling and Other Expenses		54.327	41.148
		Miscellaneous Expenses written off		0.011	0.011
		TOTAL (B)	1421.623	1121.264	1062.973
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		263.850	220.859	143.989
Less	FINANCIAL EXPENSES (D)		65.230	70.963	66.864
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		198.620	149.896	77.125
Less/ Add	DEPRECIATION/ AMORTISATION (F)		60.633	56.397	55.639
	PROFIT BEFORE TAX (E-F) (G)		137.987	93.499	21.486
Less	TAX (H)		74.539	35.257	2.986
	PROFIT AFTER TAX (G-H) (I)		63.448	58.242	18.500
	EXTRA ORDINARY ITEMS		0.820	(24.724)	4.555
	NET PROFIT		62.628	33.518	23.055
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		71.966	65.562	42.507
Less	DEFERRED TAX LIABILITY (pursuant to first time adoption AS – 22)		0.000	27.114	0.000
	BALANCE CARRIED TO THE B/S		134.594	71.966	65.562
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	43.274	49.144	701.158
	TOTAL EARNINGS		43.274	49.144	701.158
	Earnings Per Share (Rs.)			NA	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.76	4.34	1.53
Net Profit Margin (PBT/Sales)	(%)	8.20	7.01	1.82
Return on Total Assets (PBT/Total Assets}	(%)	9.44	6.92	1.56
Return on Investment (ROI) (PBT/Networth)		0.30	0.24	0.06
Debt Equity Ratio (Total Liability/Networth)		2.13	2.37	2.61
Current Ratio (Current Asset/Current Liability)		3.64	4.67	4.59

LOCAL AGENCY FURTHER INFORMATION

BUSINESS OPERATIONS:

During the year the company went into successful overall commercial operations with the installed capacity of 60624 Spindlage operational in the year by production of 9284089 Kgs. of Combed, Carded and Hosiery Cotton Yarn, Polyester and Polyester / Viscose Spun Yarn. Out of 60624 Spindles 15300 Spindles are for Compact Yarn producing a Premium Quality Yarn. This will facilitate Premium Yarn production with higher revenue realization.

Bankers Charges Report as per Registry

Corporate identity number of the company	U17300AP2005PTC045340
Name of the company	SIVA SWATI TEXTILE PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	D.NO.6-179, GT Road, Ganapavaram, Guntur, Andhra Pradesh, India Email : dsc_director@rediffmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90134915
Type of charge	Immovable property Any interest in immovable property Book Debts Movable Property Floating Charge
Particular of charge holder	State Bank of India, Industrial Finance Branch, Rajbhavan Road, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India Email : venkata.giri@sbi.co.in
Nature of instrument creating charge	1. Working Capital Consortium Agreement 2. Joint Deed of Hypothecation 3. Inter Se Agreement 4. Memorandum for Extension of mortgage by deposit of title deeds covering Enhanced limits. 5. Board Resolution
Date of instrument Creating the charge	05.03.2012
Amount secured by the charge	Rs.1383.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest SBI: @5.00% above BR, present effective rate being 15.00% p.a. SBM: @4.50% above BR, present effective rate being 15.00% p.a. Terms of Repayment CC limits are repayable on demand and Renewable for every 12 months Margin SBI and SBM: On Raw Material: 25% On SIP & FG 25% On Receivables: 30% On Letter of Credit: 15% On Bank Guarantee: 15% Extent and Operation of the charge The charge operates as 1st paripassu charge on all current assets of the company along with other working capital banker under consortium and 2nd charge over Fixed assets of the company on paripassu bassi with SBM and charge extends on the extension of Equitable Mortgage on properties of the company situated at Ganpavaram and Deccan Township Private Limited situated at Khajipally Village offered as collateral security on paripassu basis with SBM
Short particulars of the property or asset(s) charged (including complete address and location of the property)	paripassu first charge on all current assets of the company along with other working capital banker under consortium 1st paripassu charge on fixed assets of the company with term lenders. 2nd charge over Fixed assets of the company on paripassu bassi with SBM Extension of Equitable Mortgage on land admeasuring Ac 25.10 cts in different S. No's situated at Ganapavaram (V) belongs to the company
Date of instrument modifying the charge	13.03.2010
Particulars of the present modification	The Working Capital limits of Both banks renewed and enhanced from Rs.334.800 Millions to Rs.453.500 Millions under working capital consortium arrangement Hence total limits after this modification is enhanced from Rs. 1264.800 Millions to Rs.1383.500 Millions (Total enhanced and renewal limits of Rs.453.500 Millions including existing limits of TL I of 360.000 Millions, TL II of Rs.370.000 Millions and SBM of Rs.200.000 Millions)

FIXED ASSETS

· Land

· Factory Building

· Plant and Machinery

· Equipments

· Computer

· Furniture and Fixtures

· Vehicles

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.50.56
UK Pound	1	Rs.81.05
Euro	1	Rs.67.49

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	6
--LIQUIDITY	1~10	5
--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		47

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.