MIRA INFORM REPORT

Report Date :

13.07.2012

IDENTIFICATION DETAILS

Name :	SAI DEEPA ROCK DRILLS PRIVATE LIMITED
Registered Office :	Plot. NO 106, Phase II, IDA Cherlapalli, Hyderabad-500051, Andhra Pradesh.
Country :	India
Financials (as on) :	31.03.2011
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 (41)

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

Maximum Credit Limit :	USD 77000
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

INFORMATION PARTED BY

Name :	Mr. N. Ranga Rao
Designation :	Chairman
Contact No.:	91-9391023886
Date :	09.07.2012

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.:	91-40-27260434 / 27261231
E-Mail :	info@saideep.com padmaja271@rediffmail.com
Website :	http://www.saideep.com
Location :	Owned

DIRECTORS

As on 28.09.2011

Name :

Ms. Uma Rani Nutakki

Designation :

Managing Director

Address :

Plot No. 187, Hasthinapuri Colony, Sainikpuri, Hyderabad – 500 094, Andhra Pradesh, India.

Date of Birth/Age :

02.08.1959

Date of Appointment :

01.10.2001

DIN No.:

01311510

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29150AP2000PTC033310	SAI DEEPA ROCK DRILLS PRIVATE LIMITED	Director	01/01/2001	01/01/2001	-	Active	NO
2	U14290AP2006PTC048803	DRILL SYSTEMS (INDIA)PVT LTD	Director	20/01/2006	20/01/2006	-	Active	NO
3	U29253AP2009PTC062752	CENERG GLOBAL TOOLS PRIVATE LIMITED	Director	10/02/2009	10/02/2009	-	Active	NO

Name :

Mr. Suresh Palle

Designation :

Director

Address :

Plot No. 27 and 28, Javaharnagar Colony, Moula-Ali, Hyderabad – 500040, Andhra Pradesh, India.

Date of Birth/Age :

08.07.1962

Date of Appointment :

01.10.2001

DIN No.:

01858600

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29120AP1996PTC023580	JAYA FORGINGS PRIVATE LIMITED	Director	21/03/1996	21/03/1996	-	Active	NO
2	U29150AP2000PTC033310	SAI DEEPA ROCK DRILLS PRIVATE LIMITED	Director	01/01/2001	01/01/2001	-	Active	NO
3	U29253AP2009PTC062752	CENERG GLOBAL TOOLS PRIVATE LIMITED	Additional director	18/05/2011	18/05/2011	-	Active	NO

Name :

Mr. Raman Rao

Designation :

Director

KEY EXECUTIVES

Name :	Mr. N. Ranga Rao
Designation :	Chairman

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.092011

Names of Shareholders	No. of Shares
N Ranga Rao	391668
N Uma Rani	509927
P Suresh	130556
N Venkatratnam	35300
N Jyotsna	20000
K Eshwara Rao	7800
N Koteshwara Rao	110309
Sri Samhitha Systems Private Limited	100000
Total	1305560

Equity Share Break up (Percentage of Total Equity)

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 :	Þ DTH Hammers Þ DTH Bits Þ Drifter Bits Þ Retrac Bits Þ Shank Adaptors Þ Coupling Sleeves Þ Down The Hole Hammers
Exports :
Products :	Þ DTH Hammers Þ DTH Button Bits
Countries :	Þ Europe Þ Turkey Þ South Africa Þ France
Imports :
Products :	Raw Material
Countries :	Þ Germany Þ China
Terms :
Selling :	Payment against Delivery.
Purchasing :	Payment against Delivery.

PRODUCTION STATUS

Particulars	31.03.2011
Installed Capacity	480 MT
Actual Production	101399 Nos.

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

100 (Approximately)

Bankers :

• Canara Bank, R.P. Road, Secunderabad-500003, Andhra Pradesh, India.

• ICICI Bank
• HDFC Bank
• Kotak Mahindra Bank
• SIDBI Bank

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
HDFC Honda city car loan	0.187	0.388
Kotak Mahindra – Alto Loan	0.000	0.061
HDFC Car Santro-i-10	0.071	0.156
Term Loan – Canara Bank	17.682	15.995
Cash Credit – Axis Bank	0.000	0.019
Cash Credit – Canara Bank	59.005	47.342
ICICI Cars Swift	0.497	0.300
SIDBI	5.394	5.000
Total	82.836	69.261
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Directors	0.000	2.068
From Share Holders / Blood Relatives	24.088	15.628
Total	24.088	17.696

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

CAPITAL STRUCTURE

As on 28.09.2011

Authorized 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		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		13.056	10.000	10.000
2] Share Application Money		0.000	3.056	3.056
3] Reserves & Surplus		73.624	52.988	37.047
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		86.680	66.044	50.103
LOAN FUNDS
1] Secured Loans		82.836	69.261	39.381
2] Unsecured Loans		24.088	17.696	6.874
TOTAL BORROWING		106.924	86.957	46.255
DEFERRED TAX LIABILITIES		7.339	4.523	3.657
TOTAL		200.943	157.524	100.015
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		101.806	81.913	51.375
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		2.882	2.882	0.499
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	32.579	30.716	16.538
	Sundry Debtors	66.306	34.201	32.825
	Cash & Bank Balances	0.420	0.893	1.573
	Other Current Assets	0.000	0.041	1.686
	Loans & Advances	20.551	15.792	8.319
Total Current Assets		119.856	83.644	60.941
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	16.302	4.878	6.503
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	7.299	6.036	6.297
Total Current Liabilities		23.601	10.915	12.800
Net Current Assets		96.255	72.729	48.140
MISCELLANEOUS EXPENSES		0.000	0.000	0.001
TOTAL		200.943	157.524	100.015

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	395.536	286.585	212.540
		Jobwork Charges	1.313	0.299	1.392
		Other Income	3.325	0.308	3.084
		TOTAL (A)	400.174	287.192	217.016
Less	EXPENSES
		Employees Remuneration and Benefits	5.858	4.585	3.398
		Raw Material consumed	244.006	183.611	136.904
		Manufacturing Expenses	72.618	56.562	38.202
		Administrative and selling expenses	18.766	15.902	14.070
		Managerial /Directors Remuneration	2.880	2.460	2.280
		Amortization of Miscellaneous Expenditure	0.000	0.002	0.002
		Stock Adjustment	12.046	(8.870)	(5.495)
		TOTAL (B)	356.174	254.252	189.361
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		44.000	32.940	27.655
Less	FINANCIAL EXPENSES (D)		9.800	6.941	5.121
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		34.200	25.999	22.534
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.690	3.157	1.790
	PROFIT BEFORE TAX (E-F) (G)		29.510	22.842	20.744
Less	TAX (I)		10.116	6.901	8.089
	PROFIT AFTER TAX (G-I) (J)		19.394	15.941	12.655
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		52.347	36.406	23.751
	IMPORTS
		Raw Materials	42.373	20.513	26.238
		Stores & Spares	0.000	0.000	0.000
		Capital Goods	0.000	0.000	0.000
		Others	0.000	0.400	0.296
	TOTAL IMPORTS		42.713	20.913	26.534
	BALANCE CARRIED TO THE B/S		71.741	52.347	36.406
	Earnings Per Share (Rs.)		66.39	--	--

Particulars	31.03.2012
Sales Turnover (Approximately)	420.000

Expected Sales (2012-13): Rs. 450.000 millions

The above information has been parted by Mr. N. Ranga Rao.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.84	5.83	11.43
Net Profit Margin (PBT/Sales)	(%)	7.46	9.76	16.28
Return on Total Assets (PBT/Total Assets}	(%)	13.31	18.47	23.58
Return on Investment (ROI) (PBT/Networth)		0.34	0.41	0.49
Debt Equity Ratio (Total Liability/Networth)		1.50	1.18	1.40
Current Ratio (Current Asset/Current Liability)		5.07	4.76	3.59

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	Yes
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

Bankers Charges Report as per Registry

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 Phase II, IDA Cherlapalli, Hyderabad-500051, Andhra Pradesh, India. e-mail: nrr@saideep.com
This form is for	Creation of charge
Type of charge	Corporate Guarantee
Particular of charge holder	A.P. State Financial Corporation, Ramachandra Puram, Hyderabad-502032, Andhra Pradesh, India. e-mail: bmrcpuram@yahoo.com
Nature of instrument creating charge	Corporate Guarantee
Date of instrument Creating the charge	04.04.2012
Amount secured by the charge	Rs. 56.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest The Company is a guarantor for the loan obtained by Cenerg Global Tools Private Limited Terms of Repayment The Company is a guarantor for the loan Obtained by Cenerg Global Tools Private Limited. Margin The Company is a guarantor for the loan obtained by Cenerg Global Tools Private Limited. Extent and Operation of the charge The Company is also responsible along with the borrower for the due repayment of loan amount with interest, cost and expenses etc.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	The Company is a Guarantor for the loan obtained by Cenerg Global Tools Private Limited.

Fixed Assets:

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

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.55.69
UK Pound	1	Rs.86.28
Euro	1	Rs.68.14

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	NID

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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	4
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		41

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.