MIRA INFORM REPORT

Report Date :

06.04.2012

IDENTIFICATION DETAILS

Name :	SRINIVAS FINE ARTS PRIVATE LIMITED
Registered Office :	340/3, Keelathiruthangal Village, Virudhunagar Main Road, Sivakasi-626130, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	04.10.1990
Com. Reg. No.:	18 – 019730
Capital Investment / Paid-up Capital :	Rs. 52.000 Millions
CIN No.: [Company Identification No.]	U2219TN1990PTC019730
IEC No.:	3592002503
TAN No.: [Tax Deduction & Collection Account No.]	MRIS01685F
PAN No.: [Permanent Account No.]	AABCS5323E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers, Traders, Importers, Exporters and Sellers of Printed Books, Stationery Items, Notebooks, Diaries, Calendars, Paper Products, etc.
No. of Employees :	760 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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 :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having fine track. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. Financial position is good. Business is active. Payments are 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/ Factory :	340/3, Keelathiruthangal Village, Virudhunagar Main Road, Sivakasi-626130, Tamilnadu, India
Tel. No.:	91-4562-230588 / 232589
Fax No.:	91-4562-230038 / 232662
E-Mail :	csm@sfa.co.in sfarts@md3.vsnl.net.in techcreations@sfa.co.in sales@sfa.co.in
Website :	www.printing-sfa.com www.nightingale-sfa.org www.srinivasfinarts.com
Factory 2:	2A and 3, Attebele Industrial Area, Attibele, Bangalore – 562 107, Karnataka, India
Tel. No.:	91-80-27820242 / 27820876
Area :	3559 Sq.fts
Location :	Owned
Product Development and Research Centre :	Rain Tree Place, 1st Floor, 7, Mc Nichols Road, Chetpet, Chennai - 600 031, India.
Tel. No.:	91- 44 -28363014
Fax No.:	91- 44 - 42849804
E-Mail :	customer@sfa.co.in
Indian Sales Enquiries :	Located at: · Bangalore and Goa · Kolkata · Chennai and Tamilnadu · Mumbai · Gujarat and Maharashtra · Secunderabad · Hyderabad · New Delhi · Kerala · Orissa

DIRECTORS

AS ON 22.09.2010

Name :	Mr. Ramasamy Nadar Chockalingam
Designation :	Director
Address :	234-H, Ganagiri Road, Sivakasi-626189, Tamilnadu, India
Date of Birth/Age :	04.01.1939
Date of Appointment :	01.04.2007
DIN No.:	00021672

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	U52599TN1991PTC020537	ROSE FLOWER COMPANY (PAPERS) PRIVATE LIMITED	Managing director	25-03-91	25-03-91	-	Active	NO
2	U17293TN1994PTC027004	SILVER SPRING SPINNERS INDIA PRIVATE LIMITED	Director	10-03-94	10-03-94	01-04-07	Active	NO
3	U22219TN2005NPL055314	SIVAKASI PRINTING INDUSTRIAL INFRASTRUCTURE UPGRADATION SERVICES	Director	08-02-05	08-02-05	-	Active	NO
4	U21093TN2005PTC055613	SPECIALITY PAPER AND BOARDS PRIVATE LIMITED	Director	10-03-05	10-03-05	-	Active	NO
5	U52599TN1994PTC029083	IMAGE HOUSE EXPORTS PRIVATE LIMITED	Director	01-04-07	01-04-07	-	Active	NO
6	U22219TN1990PTC019730	SRINIVAS FINE ARTS PRIVATE LIMITED	Director	01-04-07	01-04-07	-	Active	NO
7	U17219TN2004PTC052816	SFA TECHNICAL CREATIONS PRIVATE LIMITED	Director	10-12-07	10-12-07	-	Active	NO
8	U24232TN2009PTC073025	RIVERSIDE BIOTECH PRIVATE LIMITED	Director	29-09-09	29-09-09	-	Active	NO
9	U51396KA1999PTC024692	NIGHTINGALE MARKETING COMPANY PRIVATE LIMITED	Director	01-12-09	01-12-09	-	Active	NO
10	U01409TN2010PTC077450	GOVARDHAN FARMS PRIVATE LIMITED	Director	22-09-10	22-09-10	-	Active	NO
11	U01407TN2010PTC077449	SAPTHAGIRI BIO FARMS PRIVATE LIMITED	Director	22-09-10	22-09-10	-	Active	NO
12	U74999TN2012PTC084711	ELIXIR SERVICES INDIA PRIVATE LIMITED	Director	29-02-12	29-02-12	-	Active	NO

Name :	Mr. Chockalingam Rajesh Sivamurugan
Designation :	Managing Director
Address :	55-A, Velayutham Road, Sivakasi, Tamilnadu, India
Date of Birth/Age :	04.08.1964
Qualification :	B.E.
Date of Appointment :	01.04.2002
DIN No.:	01145047

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	U17293TN1994PTC027004	SILVER SPRING SPINNERS INDIA PRIVATE LIMITED	Director	03-07-95	03-07-95	-	Active	NO
2	U51396KA1999PTC024692	NIGHTINGALE MARKETING COMPANY PRIVATE LIMITED	Director	01-02-99	01-02-99	-	Active	NO
3	U22219TN1990PTC019730	SRINIVAS FINE ARTS PRIVATE LIMITED	Director	01-04-02	01-04-02	-	Active	NO
4	U22212TN2005PTC055657	SFA PRINT PRIVATE LIMITED	Director	15-03-05	15-03-05	01-04-07	Active	NO
5	U21093TN2005PTC055613	SPECIALITY PAPER AND BOARDS PRIVATE LIMITED	Director	14-04-05	14-04-05	-	Active	NO
6	U52599TN1994PTC029083	IMAGE HOUSE EXPORTS PRIVATE LIMITED	Director	01-04-07	01-04-07	-	Active	NO
7	U24232TN2009PTC073025	RIVERSIDE BIOTECH PRIVATE LIMITED	Director	29-09-09	29-09-09	-	Active	NO
8	U01409TN2010PTC077450	GOVARDHAN FARMS PRIVATE LIMITED	Director	22-09-10	22-09-10	-	Active	NO
9	U01407TN2010PTC077449	SAPTHAGIRI BIO FARMS PRIVATE LIMITED	Director	22-09-10	22-09-10	-	Active	NO

Name :	Mr. Vivekanandhan Ganesh Kumar
Designation :	Director
Address :	234-H, Ganagiri Road, Sivakasi, Tamilnadu, India
Date of Birth/Age :	24.03.1974
Qualification :	B.B.M.
Date of Appointment :	03.10.2002
DIN No.:	01145396

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U22219TN1990PTC019730	SRINIVAS FINE ARTS PRIVATE LIMITED	Director	03-10-02	03-10-02	Active	NO
2	U17293TN1994PTC027004	SILVER SPRING SPINNERS INDIA PRIVATE LIMITED	Director	27-06-03	27-06-03	Active	NO
3	U05004TN2004PTC054617	SFA LIVING GEMS PRIVATE LIMITED	Director	08-11-04	08-11-04	Active	NO
4	U22212TN2005PTC055657	SFA PRINT PRIVATE LIMITED	Managing director	03-08-11	15-03-05	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 22.09.2010

Names of Shareholders	No. of Shares
R. Vivekanandhan	18790
R Vivekanadhan ( B HUF)	500
R Vivekanadhan (S HUF)	350
R Chockalingam (Industrial)	130790
R Chockalingam (B HUF)	500
R Chockalingam (S HUF)	300
R Velayuthan (Industrial)	21650
R Velayuthan ( HUF	500
R Viswanathan (Industrial)	17790
R Viswanathan ( B HUF)	500
R Viswanathan (S HUF)	1350
R Rajendra (Industrial)	18790
R Rajendran (B.HUF)	500
R. Rajendra (S HUF)	300
R. Murugesan (Industrial)	1840
R Murugesan (HUF)	500
V Meenakshithai	6500
C Thangeswarai	6500
V Surya Prabha	6500

AS ON 22.09.2010

Equity Shares Break Up	Percentage
Bodies corporate	12.29
Directors or relatives of Directors	87.71
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers, Traders, Importers, Exporters and Sellers of Printed Books, Stationery Items, Notebooks, Diaries, Calendars, Paper Products, etc.

Products :

Products Description	ITC Code
Printed Stationery Items	49011001
Calendars	49100000
Printed Advertising Materials	49030000
Diaries	49201000

Brand Names :

“NIGHTINGALE”

GENERAL INFORMATION

No. of Employees :

760 (Approximately)

Bankers :

• HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West)l, Mumbai-400013, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Term Loans from Banks	153.033	79.899
Loan Against Deposits	87.225	0.000
Short Term Borrowings	57.492	79.285
Total	297.750	159.184

Banking Relations :	--
Financial Institution :	IDBI Trusteeship Services Limited, Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai-400001, Maharashtra, India
Auditors :
Name :	K. K. B and Associates Chartered Accountants
Address :	Door No.6 (New No.13), Visalakshipuram Main Raod, Reserve Line Post, Madurai-625014, Tamilnadu, India
Tel. No.:	91-452-4347153
Fax No.:	91-452-2538153
E-Mail :	kkb@eth.net
Pan No.:	ACZPS9338N

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
640000	Equity Shares	Rs.100/- each	Rs. 64.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
520000	Equity Shares	Rs.100/- each	Rs. 52.000 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		52.000	40.000	40.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		652.360	595.980	541.095
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		704.360	635.980	581.095
LOAN FUNDS
1] Secured Loans		297.750	159.184	254.782
2] Unsecured Loans		45.497	36.978	41.699
TOTAL BORROWING		343.247	196.162	296.481
DEFERRED TAX LIABILITIES		38.799	32.475	34.254
TOTAL		1086.406	864.617	911.830
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		576.473	346.830	332.901
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		129.723	114.637	113.323
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	126.204	118.398	127.169
	Sundry Debtors	78.827	102.759	104.974
	Cash & Bank Balances	195.631	171.411	196.377
	Other Current Assets	9.229	26.711	25.113
	Loans & Advances	35.671	58.700	78.353
Total Current Assets		445.562	477.979	531.986
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	48.701	27.928	55.045
	Other Current Liabilities	11.251	35.001	0.935
	Provisions	5.400	11.900	10.400
Total Current Liabilities		65.352	74.829	66.380
Net Current Assets		380.210	403.150	465.606
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1086.406	864.617	911.830

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	763.790	741.710	772.060
		Out of Which Exports	219.350	243.770	239.890
		Other Income	48.140	38.290	23.800
		TOTAL (A)	1031.280	1023.770	1035.750
Less	EXPENSES
		Office Expenses
		Administrative Expenses			800.710
		Advertising Expenses	838.080	831.690
		Extra Ordinary Expenses – Derivatives			15.750
		TOTAL (B)	838.080	831.690	816.460
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		193.200	192.080	219.290
Less	FINANCIAL EXPENSES (D)		23.350	26.180	23.460
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		169.850	165.900	195.830
Less/ Add	DEPRECIATION/ AMORTISATION (F)		55.530	48.660	48.520
	PROFIT BEFORE TAX (E-F) (G)		114.320	117.240	147.310
Less	TAX (H)		35.250	39.070	50.890
	PROFIT AFTER TAX (G-H) (I)		79.070	78.170	96.420
	Earnings Per Share (Rs.)		152.06	NA	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	7.67	7.64	9.31
Net Profit Margin (PBT/Sales)	(%)	14.97	15.81	19.08
Return on Total Assets (PBT/Total Assets}	(%)	11.18	14.21	17.03
Return on Investment (ROI) (PBT/Networth)		0.16	0.18	0.25
Debt Equity Ratio (Total Liability/Networth)		0.64	0.48	0.68
Current Ratio (Current Asset/Current Liability)		6.82	6.39	8.01

LOCAL AGENCY FURTHER INFORMATION

FORM 8

Corporate identity number of the company	U22219TN1990PTC019730
Name of the company	SRINIVAS FINE ARTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	340/3, Keelathiruthangal Village, Virudhunagar Main Road, Sivakasi-626130, Tamilnadu, India
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	IDBI Trusteeship Services Limited, Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai-400001, Maharashtra, India
Nature of instrument creating charge	Deed of Hypothecation dated 24.11.2011
Date of instrument Creating the charge	24.11.2011
Amount secured by the charge	Rs. 138.618 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Libor +300 Bps plus interest tax as & When applicable. Libor refer to 6 month Libor rate and the facility will be repricable every 6 moths once. Terms of repayment Repayment in 10 Equal quarterly Installments Margin 30% Margin on the Project Cost Extent and operation of the charge First Exclusive charge on Plant and Machinery to be funded out of this Term Loan as more particularly described in Schedule 2 of the Deed of Hypothecation dated 24.11.2011 attached hereto.
Short particulars of the property charged (Including location of the property)	First Exclusive Charge on Plant and Machinery to be funded out of the Term loan as per schedule 2 of the Deed of Hypothecation dated 24.11.2011 attached hereto.

Fixed Assets:

· Lands

· Buildings

· Plant and Machinery

· Computer

· Cycle

· Furniture and Fittings

· Vehicles

· Wind Mill

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. 51.04
UK Pound	1	Rs. 81.08
Euro	1	Rs. 67.39

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		54

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.