MIRA INFORM REPORT

Report Date :

17.07.2012

IDENTIFICATION DETAILS

Name :	ANNEX GLASS INDUSTRIES PRIVATE LIMITED
Registered Office :	8-2-609/B/1/2, Banjara Hills, Road No.11, Hyderabad – 500034, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	28.08.2007
Com. Reg. No.:	01-055270
Capital Investment / Paid-up Capital :	Rs.140.000 Millions
CIN No.: [Company Identification No.]	U26100AP2007PTC055270
TAN No.: [Tax Deduction & Collection Account No.]	VPNA02033D
PAN No.: [Permanent Account No.]	AAGCA5039A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of Glass Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 530000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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/ Corporate Office :	D. No.8-2-609/B/1/2, Banjara Hills, Road No.11, Hyderabad – 500034, Andhra Pradesh, India
Tel. No.:	91-40-40133596/ 2565557
Fax No.:	91-40-42223112
E-Mail :	vbssprasad@gmil.com chowdaryandrao@gmail.com info@annexglass.com
Website :	http://www.annexglass.com
Factory :	Survey No.91, 92 and 93, Kesapam Village, Chevella Mandal, Ranga Reddy District – 501503, Andhra Pradesh, India
Tel. No.:	91-8417-204091 to 98
Fax No.:	91-8417-204099

DIRECTORS

(AS ON 28.09.2011)

Name :

Mrs. Parvateneni Bapaiah

Designation :

Managing Director

Address :

D. No.8-4-62, Prashanti Nagar, Pedawaltair, Visakhapatnam – 530017, Andhra Pradesh, India

Date of Birth/Age :

12.04.1945

Date of Appointment :

28.08.2007

DIN No.:

01677585

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	Company/ LLP Status	Defaulting status
1	U45200AP2007PTC052234	ANNEX REALTY VENTURES PRIVATE LIMITED	Director	03/01/2007	03/01/2007	Active	NO
2	U26100AP2007PTC055270	ANNEX GLASS INDUSTRIES PRIVATE LIMITED	Director	28/08/2007	28/08/2007	Active	NO

Name :

Mr. Kiran Krishna Parvathaneni

Designation :

Director

Address :

D. No.8-4-62, Prashanti Nagar, Pedawaltair, Visakhapatnam – 530017, Andhra Pradesh, India

Date of Birth/Age :

02.08.1974

Date of Appointment :

09.05.2008

DIN No.:

01768805

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	Company/ LLP Status	Defaulting status
1	U26100AP2007PTC055270	ANNEX GLASS INDUSTRIES PRIVATE LIMITED	Director	09/05/2008	09/05/2008	Active	NO
2	U28910AP2011PTC077849	TEAMWORK FACADE SYSTEMS PRIVATE LIMITED	Director	07/12/2011	07/12/2011	Active	NO

Name :

Mr. Anil Kumar Sunkara

Designation :

Director

Address :

7-1-27, 3^rd Floor, B- Block, srinivasa Complex, Opposite Lal Bunglow, Ameerpet, Hyderabad – 500016, Andhra Pradesh, India

Date of Birth/Age :

19.10.1971

Date of Appointment :

28.08.2007

DIN No.:

01704946

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	Company/ LLP Status	Defaulting status
1	U45200AP2007PTC052234	ANNEX REALTY VENTURES PRIVATE LIMITED	Director	03/01/2007	03/01/2007	Active	NO
2	U26100AP2007PTC055270	ANNEX GLASS INDUSTRIES PRIVATE LIMITED	Director	28/08/2007	28/08/2007	Active	NO
3	U27100AP2008PTC061139	VIBRANT ISPAT PRIVATE LIMITED	Director	22/09/2008	22/09/2008	Active	NO
4	U24232AP2007PTC052316	ADVANCED PHARMA SOLUTIONS INDIA PRIVATE LIMITED	Director	15/10/2008	15/10/2008	Active	NO
5	U45200AP2007PLC054573	A.K.INFRA VENTURES INTERNATIONAL LIMITED	Director	10/11/2008	10/11/2008	Active	NO
6	U92120AP2007PTC053675	A.K.ENTERTAINMENTS (INDIA) PRIVATE LIMITED	Director	11/11/2008	11/11/2008	Active	NO
7	U72200AP2008PTC058395	OPPORTUNITY MEDIA PRIVATE LIMITED	Additional director	31/03/2009	31/03/2009	Active	NO
8	U74900AP2009PTC063394	ADPHARMA PACKAGING (AP) PRIVATE LIMITED	Director	22/04/2009	22/04/2009	Active	NO
9	L22190MH1996PLC103009	VINTAGE CARDS AND CREATIONS LIMITED	Additional director	08/01/2010	08/01/2010	Active	NO
10	U72200AP2010PTC070337	ADVENTURES INTERNATIONAL PRIVATE LIMITED	Director	07/09/2010	07/09/2010	Active	NO
11	U92412MH2012PTC226240	ALTURA FILMS PRIVATE LIMITED	Director	20/01/2012	20/01/2012	Active Bottom of Form

Name :

Mr. Kishore Krishna Parvathaneni

Designation :

Director

Address :

D. No.8-4-62, Prashanti Nagar, Pedawaltair, Visakhapatnam – 530017, Andhra Pradesh, India

Date of Birth/Age :

20.04.1971

Date of Appointment :

04.09.2007

DIN No.:

01777295

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	Company/ LLP Status	Defaulting status
1	U26100AP2007PTC055270	ANNEX GLASS INDUSTRIES PRIVATE LIMITED	Director	04/09/2007	04/09/2007	Active	NO
2	U28910AP2011PTC077849	TEAMWORK FACADE SYSTEMS PRIVATE LIMITED	Director	07/12/2011	07/12/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 28.09.2011)

Names of Shareholders	No. of Shares
Parvateneni Bapaiah	4200000
Anil Kumar Sunkara	3266200
Krishna Kiran Parvathaneni	3267600
	3266200
Total	14000000

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier of Glass Products.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India

Balanagar Branch, Balanagar, Hyderabad – 500037, Andhra Pradesh, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans banks secured	172.407	65.855
Rupee term loans financial institutions secured	3.625	0.401
Working capital loans banks secured	42.693	0.000
Total	218.725	66.256
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Other Debt Unsecured	13.603	1.100
Total	13.603	1.100

Banking Relations :	--
Auditors :
Name :	Chowdary and Rao Chartered Accountant
Address :	MIG-91/1, Sector - 1 M V P Double Road, Visakhapatnam – 530017, Andhra Pradesh, India
PAN No.:	AMUPM4086A
Rented Parties :	· Annex Realty Ventures Private Limited
Group Concern :	· Anjana Corporation · Glasspak Enterprises

CAPITAL STRUCTURE

(AS ON 28.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
16000000	Equity Shares	Rs.10/- each	Rs.160.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14000000	Equity Shares	Rs.10/- each	Rs.140.000 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		140.000	33.763	0.200
2] Share Application Money		0.000	13.285	3.205
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(6.688)	0.000	0.000
NETWORTH		133.312	47.048	3.405
LOAN FUNDS
1] Secured Loans		218.725	66.256	0.585
2] Unsecured Loans		13.603	1.100	9.137
TOTAL BORROWING		232.328	67.356	9.722
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		365.640	114.404	13.127
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		407.693	2.239	0.961
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		3.327	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	18.196	0.000	0.000
	Sundry Debtors	4.374	0.000	0.002
	Cash & Bank Balances	2.187	13.327	1.603
	Other Current Assets	1.904	0.000	4.050
	Loans & Advances	31.252	93.939	5.233
Total Current Assets		57.913	107.266	10.888
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	15.593	0.000	0.000
	Other Current Liabilities	84.447	0.075	0.132
	Provisions	3.295	0.264	0.019
Total Current Liabilities		103.335	0.339	0.151
Net Current Assets		(45.422)	106.927	10.737
MISCELLANEOUS EXPENSES		0.042	5.238	1.429
TOTAL		365.640	114.404	13.127

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		TOTAL (A)	10.445	0.000	0.000
Less	EXPENSES
		Direct Expenses		0.000	0.078
		Administrative Expenses	12.383	3.713	1.006
		Advertising Expenses		0.042	0.042
		TOTAL (B)	12.383	3.755	1.126
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(1.938)	(3.755)	(1.126)
Less	FINANCIAL EXPENSES (D)		5.828	0.000	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(7.766)	(3.755)	(1.126)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.249	0.095	0.023
	PROFIT BEFORE TAX (E-F) (G)		(10.015)	(3.850)	(1.149)
Less	TAX (H)		(3.327)	0.000	0.000
	PROFIT AFTER TAX (G-H) (I)		(6.688)	(3.850)	(1.149)
	Earnings Per Share (Rs.)		(0.48)	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(64.03)	0.00	0.00
Return on Total Assets (PBT/Total Assets}	(%)	(2.15)	(3.52)	(9.70)
Return on Investment (ROI) (PBT/Networth)		(0.08)	(0.08)	(0.34)
Debt Equity Ratio (Total Liability/Networth)		2.52	1.44	2.90
Current Ratio (Current Asset/Current Liability)		0.56	316.42	72.11

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of Contact person	No
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-----
Estimation for coming financial year	No
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payments Terms	No
Export/ Imports Details (If applicable)	No
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	Yes

NOTE:

The Registered office of the company has been shifted from, D. No.47-11-25, 1^st Lane, Dwarakanagar, Visakhapatnam – 530016, Andhra Pradesh, India, to the present address w.e.f. 23.04.2010.

PROJECT PROGRESS:

Company launched its production operations in February, 2011 with all product lines originally envisaged. The project is delayed about 4 months from the original plan due to finance approvals/disbursements and extended monsoon in the year of 2010. The business is hired marketing team in three zones of India. As per the plan SAP software will be implemented in next few months. ISO certification and internal audit is completed. The business requires addl. Working capital to meet the projected target sales and Annex is working with bank to enhance the limits.

FORM 8:

This form is for	Modification of charge
Charge identification number of the modified	10199989
Corporate identity number of the company	U26100AP2007PTC055270
Name of the company	ANNEX GLASS INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	8-2-609/B/1/2, Banjara Hills, Road No.11, Hyderabad – 500034, Andhra Pradesh, India vbssprasad@gmail.com
Type of charge	Immovable Property Book Debts Movable Property Floating Charge
Particular of charge holder	State Bank of India Balanagar Branch, Balanagar, Hyderabad – 500037, Andhra Pradesh, India golivi.ravindranath@sbi.co.in
Nature of description of the instrument creating or modifying the charge	1) Supplemental Agreement of Hypothecation of Goods and Assets for increase in the overall Limit (Form C.2-A). 2) Memorandum of deposit for creation of further charge for term loan overall limit where the initial charges is created by way of mortgage by deposit of title deeds. (Form C.10). 3) Letter regarding the grant of individual limits within the overall limit (Form C.5). 4) Supplemental Agreement of loan for increase in the overall limit (Form C.1-A).
Date of instrument Creating the charge	16/11/2011
Amount secured by the charge	Rs.283.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest 1. Cash Credit and Term Loan 1 & 2: No Change. 2. Corporate Loan: At 6.75% above Base Rate, Base Rate = 10.00% p.a. Present effective rate of interest being 16.75% p.a. with monthly rests. Terms of Repayment Working Capital: On demand. Term Loan 1 and 2: As per the existing arrangement. Corporate Loan of Rs.20.000 Millions: Repayable in 30 monthly installments commencing from December 2011 and falling last installment due on August 2014 as detailed in the Form C.5. Margin 1) Raw Materials - 25% 2) Stocks-in-Process - 25% 3) Finished Goods - 25% 4) Book debts / Receivables (Cover period - 60 days) - 25% 5) Bank Guarantee - 20% 6) Letters of Credit - 25% Extent and Operation of the charge The charge operates as security, inter alia, for the due repayment by the company to the State Bank of India, Balanagar Branch, Hyderabad for its limits sanctioned to the extent of Rs.283.000 Millions, together with interest, additional interest, liquidated damages, commitment charges, premia on prepayment or on redemption, costs, charges, expenses and all other moneys payable by the Company to State Bank of India, Balanagar Branch, Hyderabad.
Short particulars of the property charged	Hypothecation of Exclusive first charge on all the current assets of the company namely stocks, stores and spares not relating to Plant and Machinery (Consumable stores and spares), Bills Receivables and book debts and all other current assets of the borrower. Hypothecation of the whole of the movable properties of the company (Fixed Assets) including its movable Plant and Machinery whether attached to the earth or otherwise, machinery spares, tools and accessories and others. Equitable Mortgage on the Leasehold rights of all that land admeasuring Ac.4.04 1/2 gts in Sy. No.91, 92 and 93, situated at Keesara Village, Chevella Mandal, R R District, infavour of the Company, Property is in the name of the M/s. A. K. Estates.
Date of latest modification prior to the present modification	26/10/2010
Particulars of the present modification	The existing overall limits of Rs.263.000 Millions is enhanced to Rs.283.000 Millions. The details of the individual limits are as under: (Amount Rs. in Millions) 1) Cash Credit - Rs.40.000 2) Term Loan - I - Rs.150.000 3) Term Loan - II - Rs.58.000 4) Corporate Loan - Rs.20.000 5) Bank Guarantee - Rs. 15.000 (LC Rs.7.500 Millions as sub limit of BG with 50% interchangibility)

FIXED ASSETS:

· Building

· Plant and Machinery

· Computer

· Furniture and Fixture

· 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.55.66
UK Pound	1	Rs.85.89
Euro	1	Rs.67.88

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		27

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.