MIRA INFORM REPORT

Report Date :

10.05.2012

IDENTIFICATION DETAILS

Name :	SUKASO CERACOLORS PRIVATE LIMITED
Registered Office :	Plot No.1275/1, Road No.63/A, Behind Petrol Pump, Jubilee Hills, Hyderabad – 500 034, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	17.07.1990
Com. Reg. No.:	01-011490
Capital Investment / Paid-up Capital :	Rs.18.000 Millions
CIN No.: [Company Identification No.]	U26914AP1990PTC011490
TAN No.: [Tax Deduction & Collection Account No.]	HYDS07834B
PAN No.: [Permanent Account No.]	AAECS1736N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Ceramic Colours.
No. of Employees :	70 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 865000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well 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 for normal 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

LOCATIONS

Registered Office/ Factory :	Plot No.1275/1, Road No.63/A, Behind Petrol Pump, Jubilee Hills, Hyderabad – 500 034, Andhra Pradesh, India
Tel. No.:	91-40-23548514/ 23547869/ 23607891
Fax No.:	91-40-23547859
E-Mail :	ashok@sukaso.in info@sukaso.com msprco@gmail.com support@sukaso.in sukasoj@sify.com
Website :	http://www.sukaso.com
Area :	3500 sq. ft.
Location :	Owned

DIRECTORS

As on 23.09.2011

Name :

Mr. Jayant Kumar

Designation :

Managing Director

Address :

Plot No.150, Road # 71, Phase III, Jubilee Hills, Hyderabad – 500 033, Andhra Pradesh, India

Date of Birth/Age :

30.07.1945

Date of Appointment :

17.07.1990

DIN No.:

00580260

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	U26914AP1990PTC011490	Sukaso Ceracolors Private Limited	Managing director	17-07-90	17-07-90	Active	NO
2	U24119GJ2007PTC049724	Siddhi Ceracolours Private Limited	Managing director	31-07-09	31-07-09	Active	NO

Name :

Suman Kumar

Designation :

Director

Address :

Plot No.150, Road # 71, Phase III, Jubilee Hills, Hyderabad - 500 033, Andhra Pradesh, India

Date of Birth/Age :

28.07.1945

Date of Appointment :

16.07.1992

DIN No.:

00580302

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	U29309AP1988PTC008320	Sukaso Engineering Enterprises Private Limited	Director	18-02-88	18-02-88	Active	NO
2	U26914AP1990PTC011490	Sukaso Ceracolors Private Limited	Director	16-07-92	16-07-92	Active	NO
3	U80900AP2005NPL045601	Confederation of Women Entrepreneurs	Director	11-03-05	11-03-05	Active	NO
4	U70102AP2007PTC055503	Pipal Realty Investments Private Limited	Director	13-09-07	13-09-07	Under Process of Striking off	NO
5	U24119GJ2007PTC049724	Siddhi Ceracolours Private Limited	Additional director	31-07-09	31-07-09	Active	NO
6	U74930AP2009PTC064958	Grindwell Pulverizers Private Limited	Director	08-09-09	08-09-09	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 23.09.2011

Names of Shareholders	No. of Shares	Percentage of Holding
Jayant Kumar	131510	73.06
Kapil Kumar	48490	26.94
Total	180000	100.00

As on 23.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Ceramic Colours.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Actual Production
Ceramic Colours and Zirconium Silicate	MT	10914.83

GENERAL INFORMATION

No. of Employees :

70 (Approximately)

Bankers :

v Kotak Mahindra Bank Limited, 36-38 A, Nariman Point Bhavan, 227 D, Nariman Point, Mumbai – 400 021, Maharashtra, India

v Axis Bank Limited, Credit Management Centre, 5-2-183/184 IIIrd Floor, R P Road, Secunderabad – 500 003, Andhra Pradesh, India

Facilities :

Secured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Cash Credit from Axis Bank/ KMBL	83.257	32.709
Term loan Capex from Axis Bank/ KMBL	28.061	33.385
EPC/PCFC/BD/BC from Axis Bank/ KMBL	99.406	104.001
WCDL from Axis Bank/ KMBL (Secured by hypothecation of stocks of raw material, finished and semi finished goods, book debts and personal guarantee of Directors)	0.000	18.134
ICICI / HDFC/ KMBL/ TMLF/ Others (Secured by hypothecation of vehicles and etc.)	2.385	3.510
Total	213.109	191.739

Banking Relations :	--
Auditors :
Name :	Shriram Narayan Associates Chartered Accountants
Address :	3-4-520/2, Barkatpura, Hyderabad – 500 027, Andhra Pradesh, India
Tel. No.:	91-40-27550251/ 27550252
E-Mail :	shriramnarayan@yahoo.com
PAN No.:	AAGFS4406G
Related parties where significant influence exists :	Siddhi Ceracolours Private Limited

CAPITAL STRUCTURE

As on 23.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
180000	Equity Shares	Rs.100/- each	Rs.18.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
180000	Equity Shares	Rs.100/- each	Rs.18.000 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		18.000	18.000	10.674
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		198.371	155.328	128.530
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		216.371	173.328	139.204
LOAN FUNDS
1] Secured Loans		213.109	191.739	103.666
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		213.109	191.739	103.666
DEFERRED TAX LIABILITIES		15.027	6.319	7.019
TOTAL		444.507	371.386	249.889
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		127.486	109.900	69.325
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		29.744	32.294	12.816
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	199.873	112.238	143.087
	Sundry Debtors	177.865	107.925	85.372
	Cash & Bank Balances	8.295	8.616	9.391
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	100.918	63.558	34.640
Total Current Assets		486.951	292.337	272.490
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	165.953	45.583	73.291
	Other Current Liabilities	12.654	3.567	13.469
	Provisions	21.067	13.995	17.982
Total Current Liabilities		199.674	63.145	104.742
Net Current Assets		287.277	229.192	167.748
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		444.507	371.386	249.889

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	958.531	623.269	503.038
		Other Income	NA	NA	19.101
		TOTAL (A)	NA	NA	522.139
Less	EXPENSES
		Material Consumed and Traded			393.394
		Manufacturing Expenses			26.305
		Administrative Expenses	NA	NA	37.042
		Selling Expenses			8.971
		Increase / decrease in stocks			(5.385)
		TOTAL (B)	NA	NA	460.327
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		111.073	65.780	61.812
Less	INTEREST & FINANCIAL EXPENSES (D)		32.193	21.538	15.391
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		78.880	44.242	46.421
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.031	4.290	2.522
	PROFIT BEFORE TAX (E-F) (G)		72.849	39.952	43.899
Less	TAX (H)		NA	NA	16.700
	PROFIT AFTER TAX (G-H) (I)		NA	NA	27.199
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	84.635
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	NA	4.400
		Provision for Dividend Tax	NA	NA	2.274
		Provision for Dividend	NA	NA	0.386
	BALANCE CARRIED TO THE B/S		NA	NA	104.774
	EARNINGS IN FOREIGN CURRENCY		383.123	229.147	276.043
	IMPORTS
		Raw Materials	341.857	264.995	166.753
	TOTAL IMPORTS		341.857	264.995	166.753
	Earnings Per Share (Rs.)		NA	NA	254.82

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	NA	5.21
Net Profit Margin (PBT/Sales)	(%)	7.60	6.41	8.73
Return on Total Assets (PBT/Total Assets}	(%)	11.86	9.93	12.84
Return on Investment (ROI) (PBT/Networth)		0.34	0.23	0.32
Debt Equity Ratio (Total Liability/Networth)		1.91	1.47	1.50
Current Ratio (Current Asset/Current Liability)		2.44	4.63	2.60

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	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	Yes
No. of Employees	Yes
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

FINANCIAL RESULTS:

The year was a very difficult year for the economy in general and the infrastructure sector in particular civil construction, housing, real estate etc., experienced a significant slowdown of activity. This in turn affected the ceramic (Tile and Sanitary ware) Industry. The products of the company are predominantly purchased by the ceramic industry and therefore the company was affected adversely.

The Business of the company can be divided into two sectors, one colours and the other Opacifier business. While colour business is not growing at slower rate, the Zircon business has seen a greater increase.

In addition the pressures from increased competition particularly From China and liberalization of duty free imports continued this year, too. The Company continued its concentration on export market. The world wide recession has forced all international players to drop process by shrinking their margins. The company registered an increase in exports over last year by a whopping 14.41% but reduced margins. Resultantly, the year witnessed an increase of Sales Turnover by 53.80% over that of last year by diversifying into Zircon Opacifier Business. The Company concentrated to reduce the expenses wherever possible. The Profit from its main line of activity this year is 8.00% of the turnover as against 6.15% last year. This is to be viewed in light of fact that material consumed this year constitutes 82.53% of the sales vis-à-vis 80.88% last year.

The commercial production of the Company has been as follows:

2001-02	385643 Kgs	2002-03	555046 Kgs
2003-04	673984 Kgs	2004-05	745916 Kgs
2005-06	612541 Kgs	2006-07	770626 Kgs
2007-08	920752 Kgs	2008-09	2088970 Kgs
2009-10	6263755 Kgs	2010-11	11281070 Kgs

SALES:

The Company has registered sales of Rs.991.397 millions in the financial year 2010-11 as against Rs.644.583 millions in the previous year. The Domestic Turnover this year has been 557.382 millions as against 395.874 millions last year, due to addition of new products. Unfortunately, the increase is very meager due to financial crisis in real estate market. Since this was anticipated, the company had already shifted its focus on the new products and international market. It is evident from this year’s export turnover figures that the shifting of emphasis has been prudent. The exports registered a turnover of 415.264 millions as against 235.210 millions last year. This year they hope to overcome the recession and competition and continue to add new products.

DIVERSIFICATION:

Diversification and marketing of other products was undertaken to broaden the product base. Manufacture of Opacifiers and market representation of products like Frits, Alumina Grinding Media, STPP, Boric Acid, etc was commenced.

FUTURE PLAN OF ACTION:

The management is planning to intensify further its attempts in (a) economically managing the funds to reduce the impact of increasing costs and (b) intensify its drive in enchasing export market.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	10282657
Corporate identity number of the company	U26914AP1990PTC011490
Name of the company	SUKASO CERACOLORS PRIVATELIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.1275/1, Road No.63/A, Behind Petrol Pump, Jubilee Hills, Hyderabad – 500 034, Andhra Pradesh, India sukasoj@sify.com
Type of charge	Immovable property Book Debts Movable Property (not being pledge)
Particular of charge holder	Axis Bank Limited, Credit Management Centre, 5-2-183/184 IIIrd Floor, R P Road, Secunderabad – 500 003, Andhra Pradesh, India E-Mail: bl.sailaja@axisbank.com
Nature of description of the instrument creating or modifying the charge	1. Memorandum of Entry 2. Memorandum of Entry Siddhi Ceracolors
Date of instrument Creating the charge	02.11.2011
Amount secured by the charge	Rs.389.489 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest No Change in Existing Terms and Conditions. . Terms of Repayment No Change in Existing Terms and Conditions. . Margin No Change in Existing Terms and Conditions. . Extent and Operation of the charge No Change in Existing Terms and Conditions.
Short particulars of the property charged	The limits are secured by extension of equitable Mortgage of Immovable Properties mentioned in memorandum of entry agreement.
Particulars of the present modification	There is no change in the limits of Rs.389.489 Millions. The limits are secured by extension of Equitable Mortgage of immovable Properties Mentioned in Memorandum of Entry Agreement.

FIXED ASSETS:

v Factory Land

v Factory Building

v Plant and Machinery

v Laboratory Equipment

v Vehicles

v Furniture and Fixtures

v Office Equipment

v Computers

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.53.46
UK Pound	1	Rs.86.27
Euro	1	Rs.69.40

INFORMATION DETAILS

Report Prepared by :

SMN

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	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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.