MIRA INFORM REPORT

Report Date :

10.02.2012

IDENTIFICATION DETAILS

Name :	SNEHA VINYL PRODUCTS PRIVATE LIMITED
Registered Office :	Industrial Development Area, Renigunta -517520, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	18.12.1984
Com. Reg. No.:	01-005186
Capital Investment/ Paid-up Capital:	Rs.15.600 Millions
CIN No.: [Company Identification No.]	U24299AP1984PTC005186
TAN No.: [Tax Deduction & Collection Account No.]	HYDS06830F / HYDS08098G
PAN No.: [Permanent Account No.]	AACCS8235N / AACCS8694G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, supplier and Exporter of coated Fabric (PVC Leather) and PVC Coated Fabrics.
No. of Employees:	85 (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 155000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an old and 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

INFORMATION PARTED BY

Name :	Mr. Durga Prasad
Designation :	Director
Contact No.:	91-9000905293
Date :	06.02.2012

LOCATIONS

Registered Office :	Industrial Development Area, Renigunta -517520, Andhra Pradesh, India
Tel No :	Not Available
Mobile No.:	91-9000905293 / 9000347333 [Mr. J.V.V Durga Prasad (Director) ]
Fax No:	Not Available
E-Mail :	Prasad@snehavinyl.com, admin@ckassociates.org
Website :	www.Snehavinyl.com

DIRECTORS

Name :

Mr. Srinivasa Rao Chitturi

Designation :

Managing Director

Address :

19-3-32, Old Renigunta, Tirupati, Chittoor, Andhra Pradesh

Date of Birth/Age :

01.07.1944

Date of Appointment :

18.12.1984

DIN No :

02827168

Other Directorships :

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	U24299AP1984PTC005186	SNEHA VINYL PRODUCTS PVT LTD	Director	04-11-11	18-12-84	-	Active	NO

Name :

Mr. Veera Venkata Durga Prasad Jujjavarapu

Designation :

Whole-time Director

Address :

18-3-558, Shantinagar, K. T. Road, Tirupati , Chittoor, Andhra Pradesh

Date of Birth/Age :

25.10.1960

Date of Appointment :

18.12.1984

DIN No:

01680598

Other Directorships :

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	U24299AP1984PTC005186	SNEHA VINYL PRODUCTS PVT LTD	Managing director	04-11-11	18-12-84	-	Active	NO
2	U99999AP1995PLC019167	VIJAYA SNEHA INFRASTRUCTURE LIMITED	Director	10-01-95	10-01-95	20-09-08	Active	NO
3	U24110AP1988PLC009277	VANTECH CHEMICALS LTD.	Director	31-08-95	31-08-95	28-05-09	Active	NO
4	U14100AP2002PTC039495	ROCKSAND MINERALS PRIVATE LIMITED	Managing director	01-09-02	01-09-02	12-09-11	Active	NO
5	U74900AP2008PTC061066	SWARNAMUKHI INDUSTRIES PRIVATE LIMITED	Director	16-09-08	16-09-08	-	Active	NO
6	U31909AP2005PTC047743	INCAP INSULATORS PRIVATE LIMITED	Director	24-12-08	24-12-08	-	Amalgamated	NO

Name :

Mr. Krishna babu Cerukuri

Designation :

Additional Director

Address :

‘Krishna Kutir’, No. 10, Gunrock Enclave, Secunderabad - 500009, Andhra Pradesh, India

Date of Birth/Age :

20.09.1951

Date of Appointment :

04.11.2011

DIN No :

00993286

Other Directorships :

.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	U74999AP2009PTC063576	CKS ASSOCIATES CONSULTANTS PRIVATE LIMITED	Director	06-05-09	06-05-09	-	Active	NO
2	U74999AP2010PTC068279	TERRAFORE INDIA PRIVATE LIMITED	Director	05-05-10	05-05-10	-	Active	NO
3	U24299AP1984PTC005186	SNEHA VINYL PRODUCTS PVT LTD	Additional director	04-11-11	04-11-11	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.08.2011)

Names of Shareholders	No. of Shares
Sri Chitturi Srinivasa Rao	17770
Sri Pendyala Kasi	4980
Sri Jujjavarapu Veera	34300
Smt. Pendyala Rajani	7580
Sri Pendyala Ramakrishna	1000
Smt Karuturi Ramalakshmi	1250
Smt. Kudapa Lakshmi	2000
Sr Karuturi Dharma Raju	750
Sri D. Jagganadha Raju	11270
Smt. D. Padmavathi Devi	12285
Sri. Chn Venkateswara Rao	3330
Smt. J. Janakj	8600
Sri N. Bhanu Prasad	2040
Sri. N. Madhav	2170
Smt. J. Ramalakshmi	16350
J. Raja Chandra	7255
C. Vyas	2600
C. Kalyan	2600
C. Vasishta	2600
C. Lakshmi Narayana	2600
Smt. G. Renu	600
Sri G. Tirupathi Raju	800
Sri G.S. Raju	600
Sri D.S. Raju	300
Smt D. Rajeshwari	300
Smt D. Vyjayanthi	500
K. Narayana Rao	1250
Kudapa Shruthi	1140
Sri.R. Sudhakar Chowdary	2500
Smt . K. Malathi	1350
Sri. N. Nagaraju	2830
Sri. P.M.C. Babu	1950

(AS ON 30.08.2011)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, supplier and Exporter of coated Fabric (PVC Leather) and PVC Coated Fabrics.

Products :

- Coated Fabric (PVC Leather)

- Artificial leather

- Rexine

- PVC Leather cloth

Product Description :	Foam Leather
Item Code:	5903-10

Exports :

Products :

Coated fabric, PVC Leather etc

Countries :

Sri Lanka

Imports :

Products :

Raw Material

Countries :

U.K

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS

(As On 31.03.2011)

)

Particulars	As On 31.03.2011
Licensed capacity	Not Applicable
Installed capacity	30 Lakh metres/ annum of foam leather(as certified by the management)
Actual Production	2,526(1000 metres)

GENERAL INFORMATION

Suppliers :

-Lanka Vinyl Products Private Limited

-Chem Plast

Customers :

Wholesalers and Retailers

No. of Employees :

85 (Approximately)

Bankers :

HDFC Bank HDFC Bank Housesenapati Bapat Marg, Lower Parel W, Mumbai, Maharashtra, India.

State Bank of India, Door No. 13/416 Settipalle Branch, Tirupathi, Settipalle – 517506, Andhra Pradesh, India

Facilities :

(Amount in millions)

Secured Loans	31.03.2011	31.03.2010
Working Capital Loan from HDFC Bank	30.408	0.000
Working Capital Loan from State Bank of India	0.000	35.952
Hire Purchase Loans	1.886	1.425
Total	32.294	37.377

Banking Relations :	--
Auditors :
Name :	CKS Associates Chartered Accountants
Address :	87, Nagarjuna, Road No#3, Gagan Mahal Colony, Hyderabad-500029, Andhra Pradesh, India
PAN No :	AABFC4073A

CAPITAL STRUCTURE

(As On 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
200,000	Equity Share	Rs.100/- each	Rs.20.000 millions

(As On 31.03.2011)

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
156,000	Equity Share (fully paid up, including 120,000 Shares issued by way of bonus)	Rs.100/- each	Rs.15.600 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		15.600	15.600	15.600
2] Share Application Money pending allotment		0.000	1.500	0.659
3] Reserves & Surplus		22.933	16.702	13.681
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		38.533	33.802	29.940
LOAN FUNDS
1] Secured Loans		32.294	37.377	30.129
2] Unsecured Loans		8.695	4.399	5.829
TOTAL BORROWING		40.989	41.776	35.958
DEFERRED TAX LIABILITIES		4.658	1.830	2.060
TOTAL		84.180	77.408	67.958
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		35.891	26.445	26.559
Capital work-in-progress		0.112	6.897	5.404
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	29.272	27.696	19.454
	Sundry Debtors	47.209	35.875	22.787
	Cash & Bank Balances	2.821	1.574	7.143
	Other Current Assets	0.232	0.205	0.946
	Loans & Advances	5.899	7.666	10.506
Total Current Assets		85.433	73.016	60.836
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	30.428	23.368	18.229
	Other Current Liabilities	5.278	4.842	4.720
	Provisions	1.550	0.739	1.890
Total Current Liabilities		37.256	28.949	24.840
Net Current Assets		48.177	44.066	35.995
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		84.180	77.408	67.958

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.032010	31.03.2009
	Turnover Before Excise Duty		242.786	203.047	159.352
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		16.879	11.065	11.850
	PROFIT BEFORE TAX		9.156	4.531	4.947
Less	TAX		2.924	1.503	1.467
	PROFIT AFTER TAX		6.232	3.028	3.480
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.660	0.640	0.160
Less	APPROPRIATIONS
		Transfer to General Reserve	1.000	3.000	3.000
	BALANCE CARRIED TO THE B/S		5.892	0.661	0.640
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	10.810	2.191	0.533
	TOTAL EARNINGS		10.810	2.191	0.533
	IMPORTS
		Raw Materials	12.633	13.162	3.334
		Capital Goods	0.000	0.000	6.193
	TOTAL IMPORTS		12.633	13.162	9.527
	Earnings Per Share (Rs.)		40	19	22.31

Expected Sales (2011-2012) : Rs.300.000 millions

The above information has been parted by Mr. Durga Prasad.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.032009
Return on Total Assets (PBT/Total Assets}	(%)	7.55	4.56	5.66
Return on Investment (ROI) (PBT/Networth)		0.24	0.13	0.16
Debt Equity Ratio (Total Liability/Networth)		2.03	2.09	2.03
Current Ratio (Current Asset/Current Liability)		2.29	2.52	2.45

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Construction of the firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoters background	-
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of contact person	Yes
Turnover of firm for last one years	Yes
Profitability for last three years	No
Reasons for variation <> 20%	-
Estimation for coming financial year	Yes
Capital the business	Yes
Details of sister concerns	-
Major Suppliers	Yes
Major Customers	Yes
Payment Terms	Yes
Export / Import Details [If Applicable]	Yes
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	No
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	No
Incorporation details, if applicable	-
Last accounts filed at ROC	-
Major Shareholders, if applicable	-

Note : Registered Office of the company has been shifted from Nagarjuna 87road No 3,Gagan Mahal Colony, Hyderabad-500029, Andhra Pradesh, India, to the present Address.

History:

Sneha Vinyl Products Private Limited was incorporated on December 18, 1984. The Company has set up facilities for manufacture of foam leather at the Industrial Development Area, Renigunta, in Chittoor District, Andhra Pradesh with financial assistance from Andhra Pradesh Industrial Development Corporation Limited and Andhra Pradesh State Financial Corporation Limited, and commenced commercial operations on May 14, 1988. The Promoters have brought back the equity shares from Andhra Pradesh Industrial Development Corporation Limited and the Company has repaid all the term loans to the Institutions in accordance with the terms of sanction and is now operating with working capital assistance from State Bank of India and Andhra Pradesh State Financial Corporation.

FOREIGN EXCHANGE EARNINGS AND OUTGO:

The expenditure in foreign currency on imported raw material was ` 12.633 Mil (`13.162 Mil) and the Company earned foreign exchange of ` 10.810 Millions (` 2.191 Millions) on export of finished goods.

Bankers Charges Report as per Registry:

Corporate identity number of the company	U24299AP1984PTC005186
Name of the company	Sneha Vinyl Products Private Limited
Address of the registered office or of the principal place of business in India of the company	Nagarjuna 87road No 3, Gagan Mahal Colony, Hyderabad-500029, Andhra Pradesh, India
This form is for	Creation Of Charge
Type of charge	-Movable Property (Not Being Pledge) -Agricultural Produce Etc
Particular of charge holder	HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel W, Mumbai, Maharashtra , India
Nature of instrument creating charge	1) Agreement For Term Loan Cum Guarantee Cum Hypothecation (For Secured Term Loan). and 2) Agreement for Overdraft/Cash Credit Cum Guarantee Cum Hypothecation (For Secured Overdraft/Cash Credit) (Collectively Constitute a Single Charge For Rs.5.000 Millions).
Date of instrument Creating the charge	25.11.2011
Amount secured by the charge	Rs.5.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate Of Interest Interest @ 12.00%. P.A. For TL, Interest @ 11.50%. P.A. For CC Terms Of Repayment On Demand Margin As May Be Stipulated By The Bank From Time To Time. Extent And Operation Of The Charge Hypothecation by way of first and exclusive Charge on Company's Assets, to secure as a continuing Security for the Due Repayment of Rs.5.000 millions by the Company Including Principal amount of the Facility, Interest, Liquidated Damages, Costs, Charges and Expenses Etc.
Short Particulars of the property charged	All the agricultural Products comprising of crops Sown or to be sown and grown and/ or standing crops now or at any time hereafter owned by the borrowers. Drought and milch cattle and other animals, Poultry, Birds and other live Stocks wherever they may be. Tools/Equipments Machines, Tractors/Power Tiller/ Tube Well/ Electric Motor/ Diesel Engine and/or Other Movable Connected with and relating to farming/ rearing of cattle

Fixed Assets :

- Land

-Industrial

-Agricultural

- Building

- Plant and Machinery

- Agricultural Equipments

- Office Equipments

- Furniture

- 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.49.64
UK Pound	1	Rs.78.35
Euro	1	Rs.65.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--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.