MIRA INFORM REPORT

Report Date :

29.03.2012

IDENTIFICATION DETAILS

Name :	SUTURES INDIA PRIVATE LIMITED

Registered Office :	472/D, 4^th Phase, 13^th Cross, peenya Industrial Area, Bangalore-560058, Karnataka

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	28.12.1992

Com. Reg. No.:	18-013831

Capital Investment / Paid-up Capital :	Rs.15.602 Millions

CIN No.: [Company Identification No.]	u03311ka1992ptc013831

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer of Suture Needles, Skin Staplers, Surgical Mesh, etc

No. of Employees :	280 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (55)

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

Maximum Credit Limit :	USD 3880000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well – established and reputed company having good track. Business is active. Payments are reported as usually made as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. Profit and Loss of the company for the current year is not available.

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

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	472/D, 4^th Phase, 13^th Cross, peenya Industrial Area, Bangalore – 560 058, Karnataka, India
Tel. No.:	91-80-41868000/ 41868127
Fax No.:	91-80-41171056
E-Mail :	accounts@suturesin.com sales@suturesin.com hr@sutguresin.com admin@suturesin.com ksreddy@suturesin.com sales@suturesin.com, marketing@suturesin.com hr@suturesin.com
Website :	www.suturesin.com

DIRECTORS

As on 25.08.2011

Name :

Mr. Chandrasekhar Latteri Gopalan

Designation :

Managing Director

Address :

A-11 , Sobha Emerald, Jakkur Village, Yelahanka Hobli, Bangalore - 560 064, Karnataka, India

Date of Birth/Age :

08.10.1958

Date of Appointment :

10.12.1992

DIN No.:

01997057

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	U03311KA1992PTC013831	SUTURES INDIA PRIVATE LIMITED	Whole-time director	02-07-09	28-12-92	-	Active	NO
2	U24236KA1995PTC019479	EASYSTICH NEEDLES PRIVATE LIMITED	Director	27-12-95	27-12-95	-	Amalgamated	NO
3	U25191KL2001PTC014953	TRUSKIN GLOVES PRIVATE LIMITED	Additional director	10-12-07	10-12-07	26-02-10	Active	NO

Name :

Mr. Viswanath Venkata Subrahmanya Anjaneya Chibrolu

Designation :

Whole Time Director

Address :

Flat No.302, Chitanya Estates, Motinagar X Roads, Hyderabad – 500 018, Andhra Pradesh, India

Date of Birth/Age :

12.08.1969

Date of Appointment :

25.08.2010

DIN No.:

01556254

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	U74140AP2006PTC050912	INVASCENT ADVISORY SERVICES INDIA PRIVATE LIMITED	Director	13-07-07	13-07-07	Active	NO
2	U24236KA1995PTC019479	EASYSTICH NEEDLES PRIVATE LIMITED	Additional director	24-08-09	24-08-09	Amalgamated	NO
3	U03311KA1992PTC013831	SUTURES INDIA PRIVATE LIMITED	Director	25-08-10	26-08-09	Active	NO
4	U99999MH1986PLC134021	FERMENTA BIOTECH LIMITED	Director	17-01-11	17-01-11	Active	NO

Name :

Mr. Prabhakar Valivalti Rajagopal Sastry

Designation :

Director

Address :

# 19/B, 8^th Main Road, Sadashivnagar, Bangalore – 560 080, Karnataka, India

Date of Birth/Age :

18.05.1959

Date of Appointment :

11.03.2009

DIN No.:

02007088

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	U74140KA2006PTC039752	MENTOR ADVISORY PRIVATE LIMITED	Director	19-06-06	19-06-06	Active	YES
2	U74140KA2008PLC045632	MENTORSQUARE ADVISORS LIMITED	Director	17-03-08	17-03-08	Active	YES
3	U03311KA1992PTC013831	SUTURES INDIA PRIVATE LIMITED	Director	30-06-09	11-03-09	Active	NO

Name :

Mr. Natarajan Ganesan

Designation :

Whole Time Director

Address :

Flat # 302, 2^nd Floor, Kirmite Krupa, 11, 16^th Cross, Malleswaram, Bangalore – 560 003, Karnataka, India

Date of Birth/Age :

01.08.1952

Date of Appointment :

14.12.1996

DIN No.:

02009645

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	U03311KA1992PTC013831	SUTURES INDIA PRIVATE LIMITED	Whole-time director	14-12-96	14-12-96	-	Active	NO
2	U25191KL2001PTC014953	TRUSKIN GLOVES PRIVATE LIMITED	Additional director	10-12-07	10-12-07	26-02-10	Active	NO

Name :

Mr. Subramanian Sivaraman

Designation :

Whole Time Director

Address :

4-C, anandi Villa, 6^th Main, 13^th Cross Road, Malleswaram, Bangalore – 560 003, Karnataka, India

Date of Birth/Age :

14.03.1963

Date of Appointment :

10.12.1992

DIN No.:

02009723

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	U03311KA1992PTC013831	SUTURES INDIA PRIVATE LIMITED	Managing director	01-07-09	28-12-92	-	Active	NO
2	U24236KA1995PTC019479	EASYSTICH NEEDLES PRIVATE LIMITED	Director	27-12-95	27-12-95	-	Amalgamated	NO
3	U25191KL2001PTC014953	TRUSKIN GLOVES PRIVATE LIMITED	Additional director	10-12-07	10-12-07	26-02-10	Active	NO

KEY EXECUTIVES

Name :	Mr. K S Reddy
Designation :	Secretary
Address :	2363, 24^th Main, 1 Sector, HSR Layout, Bangalore – 560102, Karnataka , India
Date of Birth/Age :	10.01.1960
Date of Appointment :	18.10.2009
Pan No.:	AASPR0442F

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.08.2011

Names of Shareholders		No. of Shares
Chandrasekhar Latteri Gopalan		453944
Subramanian Sivaraman		361648
Geetha Chandrasekhar		302500
Indra Ganesan		6500
Venkataraman Iyer		51929
S V Nene		50
Natrajan Ganeshan		39500
Hema Sundaram		18500
Evolvance India Life Science Fund LLC, Mauritius		320718
Parvathi Prabhakar		1765
Parbhakar Valivati		3235
TOTAL		1560289

Equity Share Break up (Percentage of Total Equity)

As on 25.08.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	20.55
Directors or relatives of Directors	55.02
Other top fifty shareholders	24.43
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Suture Needles, Skin Staplers, Surgical Mesh, etc

Products :	Surgical Sutures

GENERAL INFORMATION

No. of Employees :

280 (Approximately)

Bankers :

State Bank of India, Peenya Industrial Estate Branch, 2^nd Cross, Bangalore – 560058, Karnataka, India
Bank of Baroda, APMC Yard, Yeshwanthpur Branch, Bangalore – 560022, Karnataka, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee Term Loans Bank Secured	128.123	129.105
Working Capital Loans Bank Secured	3.196	9.177
Loans Taken for Vehicle Secured	5.498	3.028
Total	136.817	141.310

Unsecured Loan

As on

31.03.2011

(Rs. in

Millions)

As on

31.03.2010

(Rs. in

Millions)

Working Capital Loans Unsecured

0.000

4.606

Total

0.000

4.606


Banking Relations :

Auditors :
Name :	Murali and Associates Chartered Accountants
Address :	#12, ramanuja Plaza, 5^th Cross, malleswaram, Bangalore – 560 003, Karnataka, India
Tel. No.:	91-80-23463272
PAN.:	AAAFM1250G

Wholly Owned Subsidiaries :	Easy stitch Needles Private Limited CIN No.: U24236KA1995PTC019479 Trusskin Gloves Private Limited CIN No.: U25191KL2001PTC014953

CAPITAL STRUCTURE

As on 25.08.2011

Authorised 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

1560289	Equity Shares	Rs.10/- each	Rs.15.603 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		15.603	14.506	13.588
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		955.602	562.471	337.289
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		971.205	576.977	350.877
LOAN FUNDS
1] Secured Loans		136.817	141.310	96.865
2] Unsecured Loans		0.000	4.606	9.848
TOTAL BORROWING		136.817	145.916	106.713
DEFERRED TAX LIABILITIES		5.129	4.525	0.443

TOTAL		1113.151	727.418	458.033

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		555.325	299.141	213.314
Capital work-in-progress		0.000	0.000	77.754

INVESTMENT		24.102	99.851	24.202
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	200.522	151.145	117.918
	Sundry Debtors	175.808	119.472	89.991
	Cash & Bank Balances	144.222	30.834	35.682
	Other Current Assets	0.000	0.000	0.115
	Loans & Advances	257.259	235.743	84.094
Total Current Assets		777.811	537.194	327.800
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	45.556	62.769	24.615
	Other Current Liabilities	79.283	46.790	67.510
	Provisions	119.248	99.209	92.912
Total Current Liabilities		244.087	208.768	185.037
Net Current Assets		533.724	328.426	142.763

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		1113.151	727.418	458.033

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income	753.781	648.263
		Other Income		20.527
		TOTAL (A)	753.781	668.790

Less	EXPENSES
		Cost of Sales – Traded Goods	524.364	15.389
		Material Consumed		231.589
		Manufacturing Expenses		34.956
		Administrative and Distribution Expenses		163.915
		TOTAL (B)	524.364 (Including Financial Expenses and Depreciation)	445.849

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			222.941

Less	FINANCIAL EXPENSES (D)			7.468

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			215.473

Less/ Add	DEPRECIATION/ AMORTISATION (F)			17.620

	PROFIT BEFORE TAX (E-F) (G)		229.417	197.853

Less	TAX (H)		49.009	32.389

	PROFIT AFTER TAX (G-H) (I)		180.408	165.464

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		18.159	3.107

Less	APPROPRIATIONS
		Transfer to General Reserve	NA	90.000
		Proposed Dividend	NA	60.412
	BALANCE CARRIED TO THE B/S		NA	18.159

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	237.985	243.132
	TOTAL EARNINGS		237.985	243.132

	IMPORTS
		Raw Materials	124.328	161.456
		Trading Goods	0.000	5.086
		Capital Goods	14.297	7.999
	TOTAL IMPORTS		138.625	174.541

	Earnings Per Share (Rs.)		127.76	180.83

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	23.93	24.74

Net Profit Margin (PBT/Sales)	(%)	NA	NA	30.52

Return on Total Assets (PBT/Total Assets}	(%)	NA	27.43	36.56

Return on Investment (ROI) (PBT/Networth)		NA	0.39	0.56

Debt Equity Ratio (Total Liability/Networth)		0.39	0.61	0.83

Current Ratio (Current Asset/Current Liability)		3.19	2.07	1.77

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

Corporate identity number of the company	u03311ka1992ptc013831
Name of the company	SUTURES INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	472/D, 4^th Phase, 13^th Cross, peenya Industrial Area, Bangalore – 560 058, Karnataka
This form is for	Modification of charge
Charge identification number of the modified	80041121
Type of charge	· Immovable property
Particular of charge holder	State Bank of India, peenya Industrial Estate branch, B – 96, II Cross, I Stage, Peenya Industrial Estate, Bangalore – 560 058, Karnataka, India E-mail: jsurya@vsnl.com
Nature of instrument creating charge	· memorandum for recording extension of mortgage by deposit of title deeds · Letter of Confirmation for extension of mortgage by deposit of title deds (Both the documents relate to the same modification)
Date of instrument Creating the charge	11.09.2008
Amount secured by the charge	Rs. 333.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest: CC/ TL : Interest @ 0.75% below State Bank Advance Rate (SBAR) (SBAR=13.75% w.e.f. with a minimum of 13.75% p.a., Present effective rate 13.00% p.a. Terms of repayments WC : Repayable on demand TL : Repayable in 61 monthly installment of Rs. 3.500 millions each commencing from 13 months after first disbursement Margin: Domestic Receivables : 25% TL : 32.94% LC and BG : 25% Extent and Operation of charge Charge extends by way of first charge on all the assets throughout the period of sanctioned limits.
Short particulars of the property charged (Including location of the property)	EM on Company’s immovable properties situated at No. 472-D, 13^th Cross, Peenya 4^th Phase, Industrial Area, Sy. No. 43, Nalikadarnahalli Village, Yeshwanthpur Hobli, Bangalore admeasuring 7343.75 Sq.mtrs. EM of KIADB land situated at Plot Nos. 13 to 16 in SY No. 97, Kunigal 1^st Phase Industrial Area, Kalanyakanahlly Village, Hutridurga, Kunigal Taluk, Tumkur District measuring 16183 sqmtrs. EM on Company’s immovable properties situated at No. 477C, 4^th Phase, Industrial Area in Sy. No. 46 of Nallakadarnahalli Village, Yeshwanthpur Hobli, Bangalroe measuring 4011 sq.mtrs.
Date of latest modification prior to the present modification	11.09.2008
Particulars of the present modification	Total limits enhanced from Rs. 111 millions to Rs. 333.500 millions. Additional EM provided on Company’s immovable properties situated No. 477C, 4^th Phase, Industrial Area, Sy. No. 46, Nallakadaranahlli Village, Yeshwanthpur, Bangalore, KIADB property situated at Plot Nos. 13 to 16 SY. No. 97, Kunigal I Phase Industrial Area, Kalanyakanhally Village, Tumkur. All other terms, conditions and existing securities to continue.

fixed assets:-

· Land

· Buildings

· Plant and machinery

· Computers

· Motor Vehicles

· Furniture and Fixtures

· Office equipments

website details:

Subject is a manufacturer and exporter of all types of surgical sutures like absorbable sutures and nonabsorbable sutures. Subject is exported to over 50 countries in Europe, South America, Africa and Asia. The manufacturing facilities conform to WHO GMP norms, ISO 9001/2000 and ISO 13485/2003 standards. Most of their products are CE and USFDA approved.

In the Indian market the company employs over 120 sales personnel and supplies its products to reputed hospitals and nursing homes through over 400 distributors. The company supplies its products to Union Govt., all state govt., local govt. hospitals either through tenders or prescription sales.

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.50.92
UK Pound	1	Rs.81.21
Euro	1	Rs.67.85

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--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	yes
--LISTED	YES/NO	No
--OTHER MERIT FACTORS	YES/NO	Yes
TOTAL		55

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.