MIRA INFORM REPORT

Report Date :

15.06.2012

IDENTIFICATION DETAILS

Name :	SAVIO INDIA LIMITED w.e.f. 29.09.2009
Formerly Known As :	ITEMA SPINNING INDIA LIMITED w.e.f. 06.12.2007 ITEMA INDIA LIMITED w.e.f. 06.06.2005 VEEJAY SAVIO LAKSHMI MACHINERY LIMITED
Registered Office :	Factory Premises, Tamaraikulam PO, Pollachi Taluka – 642109, Tamilnadu
Country :	India
Financials (as on) :	31.12.2010
Date of Incorporation :	21.03.1996
Com. Reg. No.:	18-007062
Capital Investment / Paid-up Capital :	Rs. 200.000 Millions
CIN No.: [Company Identification No.]	U02926TZ1996FLC007062
TAN No.: [Tax Deduction & Collection Account No.]	CMBV03046B
PAN No.: [Permanent Account No.]	AABCV0154G
Legal Form :	A Closely held Public Limited Liability Company.
Line of Business :	The primary activity of the company is manufacture and sale of yarn spinning machines and supply of spares for the above machines, marketing and servicing of textile machinery manufactured by Itema group of Italy.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 1200000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Trade relations are reported as 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 Office :	Factory Premises, Tamaraikulam PO, Pollachi Taluka – 642109, Tamilnadu, India
Tel. No.:	91-4259-304555
Fax No.:	91-4259-304567
E-Mail :	devaraju@savioindia.in mail@savioindia.in
Website :	http://www.savioindia.in
Factory :	Savio Macchine Tessili S.P.A., 33170 Pordenone (Italy), Via Udine, 105, Italy
Tel. No.:	0039 0434 397422
Fax No.:	0039 0434 397599
E-Mail :	order@saviospa.it
Branches :	North India: Ludhiana Service Center: 3074, Sector 38, Ludhiana – 141010, Punjab, India
Tel. No.:	91- 0161-2678565
Fax No.:	91- 0161-2678775
E-Mail :	ludhiana@savioindia.in
Branches :	Central India: Flat No. 507, 6th Floor, Evergreen Homes, Opp. Rajhans Printing Press / Nagala Park MSEBOffice, Nagala Park, Kolhapur – 416003, Maharashtra, India
Mobile No.:	91 97651 22999
E-Mail :	kolhapur@savioindia.in

DIRECTORS

AS ON 25.05.2011

Name :

Mr. Gabriele Checchini

Designation :

Managing director

Address :

3074, Sector 38, Ludhiana – 141010, Punjab, India

Date of Birth/Age :

25.02.1947

Date of Appointment :

21.03.1996

DIN No.:

01725574

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	U02926TZ1996FLC007062	SAVIO INDIA LIMITED	Managing director	21-03-96	21-03-96	Active	NO
2	U70100TZ2008PTC014158	CH AND CL HOLDINGS PRIVATE LIMITED	Director	11-01-08	11-01-08	Active	NO

Name :

Mr. Puntoni Paolo

Designation :

Director

Address :

Via Interna, Poedenone, Italy

Date of Birth/Age :

25.01.1946

Date of Appointment :

11.05.2005

DIN No.:

01751422

Name :

Mr. Ivan Pedroni

Designation :

Additional Director

Address :

Via Daste E, Splenga 524125 BG Splenga

Date of Birth/Age :

19.06.1972

Date of Appointment :

21.02.2012

DIN No.:

05213687

Name :

Mr. Lorenzo Cucchetto

Designation :

Additional director

Address :

VIA SARTORI 41, NEGRAR - 37024

Date of Birth/Age :

25.08.1952

Date of Appointment :

21.02.2012

DIN No.:

05213693

Name :

Mr. Mauro Moro

Designation :

Additional director

Address :

VIA CADEL 31, PRODENONE - 33170

Date of Birth/Age :

30.04.1964

Date of Appointment :

21.02.2012

DIN No.:

05213695

KEY EXECUTIVES

Name :	Mr. Velappa Chettiar Devaraju
Designation :	Secretary
Address :	No.78, KRG Nagar IV Street, Ganapathy, Coimbatore – 641006, Tamilnadu, India
Date of Birth/Age :	04.06.1954
Date of Appointment :	25.09.2001
PAN No.:	AFNPD6376E

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 25.05.2011

Names of Shareholders	No. of Shares
Savio Macchine Tessili SPA, Italy	17989995
Itema Holding SPA, Italy	2010000
S Damodharaswamy	1

AS ON 25.05.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The primary activity of the company is manufacture and sale of yarn spinning machines and supply of spares for the above machines, marketing and servicing of textile machinery manufactured by Itema group of Italy.

Products :

ITC Code	Product Descriptions
84	Textile Machinery

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	Not Available

Banking Relations :	--
Auditors :
Name :	Gopalaiyer and Subramaniam Chartered Accountants
Address :	Flat No. 2, II Floor, Sambandam Road East, R.S.Puram, Coimbatore – 641002, Tamil Nadu, India
Tel. No.:	91-422-4500952/ 4500941/ 4368816
Fax No.:	91-422-2548141
E-Mail :	gsvidhyut@gopalaiyer.in
Income-tax PAN of auditor or auditor's firm :	AAVPM2853N
Holding Company :	Savio Macchine Tessili SPA
Subsidiaries :	· Eutron SRL, Italy · Savio (Shandong) Textile Machinery Company Limited, China · Loepfe Brothers (SUI)
Related Party :	· Itema Holding SPA, Italy

CAPITAL STRUCTURE

AS ON 31.12.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs. 10/- each	Rs. 200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs. 10/- each	Rs. 200.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2010	31.12.2009	31.12.2008
SHAREHOLDERS FUNDS
1] Share Capital		200.000	200.000	200.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		107.771	87.863	80.044
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		307.771	287.863	280.044
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.901	0.724	1.377
TOTAL		308.672	288.587	281.421
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		217.554	211.385	213.668
Capital work-in-progress		0.000	0.000	1.088
INVESTMENT		0.005	0.005	0.005
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	168.378	189.047	147.574
	Sundry Debtors	149.946	45.306	42.459
	Cash & Bank Balances	36.946	45.170	40.474
	Other Current Assets	0.822	0.590	0.913
	Loans & Advances	86.592	71.638	56.507
Total Current Assets		442.684	351.751	287.927
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors		188.563	152.643
	Other Current Liabilities	299.777	54.924	46.289
	Provisions	51.794	31.067	22.335
Total Current Liabilities		351.571	274.554	221.267
Net Current Assets		91.113	77.197	66.660
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		308.672	288.587	281.421

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2010	31.12.2009	31.12.2008
	SALES
		Income	518.876	291.213	216.765
		Commission Income	98.792	63.598	122.193
		Other Income	29.628	11.520	20.387
		TOTAL	647.296	366.331	359.345
Less	EXPENSES
		Material Cost	356.099	139.303	57.040
		Purchases for resale	80.064	61.213	82.687
		Power and Fuel	2.207	2.220	3.072
		Personnel expenses	49.002	42.196	40.506
		Repairs and Maintenance	7.820	6.727	9.861
		Other Operating expenses	54.321	55.935	82.128
		Selling Expenses	31.404	17.580	31.089
		Change in stock	8.136	8.544	18.083
		TOTAL	589.053	333.718	324.466
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		58.243	32.613	34.879
Less	FINANCIAL EXPENSES		0.192	0.278	0.432
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		58.051	32.335	34.447
Less/ Add	DEPRECIATION/ AMORTISATION		19.594	17.959	16.716
	PROFIT BEFORE PRIOR YEAR ADJUSTMENTS		38.457	14.376	17.731
Less/ Add	PRIOR YEAR ADJUSTMENTS		0.334	0.049	0.929
	PROFIT BEFORE TAX		38.791	14.425	18.660
Less	TAX		18.884	6.606	6.508
	PROFIT AFTER TAX		19.907	7.819	12.152
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		87.863	80.044	67.892
	BALANCE CARRIED TO THE B/S		107.770	87.863	80.044
	EARNINGS IN FOREIGN CURRENCY
		Sales Commission	98.792	63.598	122.193
		Sale of Capital Goods	1.914	7.566	0.000
		Service Charges	0.525	0.606	0.276
		Sale of Spares and Components (FOB)	278.230	116.162	38.783
	TOTAL EARNINGS		379.461	187.932	161.252
	IMPORTS
		Spares	57.573	50.375	64.709
		Factory Component	85.716	78.203	74.317
		PCB Component	2.359	4.007	3.360
		Repairs Machinery	0.000	0.058	0.269
		Computer Licenses	0.000	0.000	2.268
		Machinery	2.479	1.607	20.527
	TOTAL IMPORTS		148.127	134.250	165.450
	Earnings Per Share (Rs.)		1.00	0.39	0.61

KEY RATIOS

PARTICULARS		31.12.2010	31.12.2009	31.12.2008
PAT / Total Income	(%)	3.08	2.13	3.38
Net Profit Margin (PBT/Sales)	(%)	7.48	4.95	8.61
Return on Total Assets (PBT/Total Assets}	(%)	5.88	2.56	3.72
Return on Investment (ROI) (PBT/Networth)		0.13	0.05	0.07
Debt Equity Ratio (Total Liability/Networth)		1.14	0.95	0.79
Current Ratio (Current Asset/Current Liability)		1.26	1.28	1.30

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. Constitution 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	No
9. Name of person contacted	No
10. Designation of contact person	No
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	No
15. Capital in the business	Yes
16. Details of sister concerns	Yes
17. Major suppliers	No
18. Major customers	No
19. Payments terms	No
20. Export / Import details	No
21. Market information	--
22. Litigations that the firm / promoter involved	--
23. Banking Details	No
24. Banking facility details	No
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

NOTE:

The registered address of the company has been shifted from Nanjammasmettupalayam Road, Thudiyalur, Coimbatore - 641034, Tamilnadu, India to the present w.e.f. 31.05.2010

FINANCIAL RESULTS

The working during the year ended 31^st December 2010 has resulted in a profit of Rs.38.459 Millions after providing Rs.19.594 Millions for depreciation. The Profit earned during the year has increased substantially by Rs.24.081 Millions as compared to the previous year due to increase in commission and improvement in export of components

OPERATION

The sales turnover comprises of Rs.240.121 millions on account of domestic sale of Cosmos TFO machines, spares and services, Rs. 278.755 millions on account of Export sale of components and services, Rs.98.792 millions on account of commission income on marketing of textile machinery and Rs.29.628 millions on account of interest and other income.

During the year, the demand for Automatic Cone Winders and TFO machines was very encouraging due to better market conditions. They are hopeful that the market conditions would improve further and the performance of the company would steadily increase in the years to come. The business of export of components to Savio Italy for auto cone winders is also improving by leaps and bounds.

The sale of Cosmos TFO machines which are being manufactured in their factory at Tamaraikularn in Pollachi Taluk have improved. Besides this, the business of export of assembled textile machinery components has also substantially improved during the year. The company is poised to achieve substantial progress in the above businesses in the years to come.

CONTINGENT LIABILITIES

(Rs. in Millions)

Particulars	31.12.2010	31.12.2009
Bank Guarantees	10.000	10.000
Claims against the Company not acknowledged as debts (paid as advance)	3.572	3.030

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and Machinery

· Electrical Equipment

· Vehicle

· Furniture and Fixtures

· Office Equipment

Intangible Assets

· Technical Knowhow

· License for ERP solutions

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. 55.79
UK Pound	1	Rs. 86.37
Euro	1	Rs. 70.07

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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	NO
--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		28

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.