MIRA INFORM REPORT

Report Date :

20.09.2012

IDENTIFICATION DETAILS

Name :	VPR MINING INFRASTRUCTURE PRIVATE LIMITED
Registered Office :	8-2-268/K/18, Plot No.18, Navodaya Colony, Road No.2, Banjara Hills, Hyderabad – 500034, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	28.01.2008
Com. Reg. No.:	01-057363
Capital Investment / Paid-up Capital :	Rs.170.000 Millions
CIN No.: [Company Identification No.]	U14200AP2008PTC057363
TAN No.: [Tax Deduction & Collection Account No.]	HYDV06889B
Legal Form :	Private Limited Liability Company
Line of Business :	Service Provider of Transportation of Shipping Services.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 1780000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. It has recorded an increase in its sales turnover and profits during 2011. Trade relations are reported as decent. 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarc e access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	FITCH
Rating	BBB- (Long Term Rating)
Rating Explanation	Good credit Quality
Date	23.07.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	8-2-268/K/18, Plot No.18, Navodaya Colony, Road No.2, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India
Tel. No.:	91-40-23551862/ 23551863
Fax No.:	91-40-23551861
E-Mail :	srinivaskonjeti@yahoo.co.in info@vprmininginfra.com
Website :	http://www.vpr.co.in
Branch 1 :	No. 16-3-619/A, Ramamurthy Nagar, Nellore - 524003, Andhra Pradesh, India
Branch 2 :	No. 14, Tilak Street, T-Nagar, Chennai - 600 017, Tamilnadu, India
Tel. No.:	91-44-28340870/ 28344940
Overseas Branches :	Located at: · Indonesia · Senegal

DIRECTORS

As on: 16.09.2010

Name :

Mr. Vemireddy Prabhakar Reddy

Designation :

Managing Director

Address :

16-3-619/A, Ramamurthy Nagar, Nellore - 524003, Andhra Pradesh, India

Date of Birth/Age :

19.04.1956

Date of Appointment :

28.01.2008

DIN No.:

01502333

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	U55100AP2007PTC056569	LAKSHMI SRINIVASA INFRASTRUCTURE PRIVATE LIMITED	Director	07/12/2007	07/12/2007	-	Active	NO
2	U14200AP2008PTC057363	VPR MINING INFRASTRUCTURE PRIVATE LIMITED	Managing director	01/04/2008	28/01/2008	-	Active	NO

Name :

Mr. Syamalamma Vemireddy

Designation :

Director

Address :

16-3-619/1, Ramamurthy Nagar, Nellore - 524003, Andhra Pradesh, India

Date of Birth/Age :

19.12.1931

Date of Appointment :

28.01.2008

DIN No.:

02012349

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 16.09.2010

Names of Shareholders	No. of Shares
Vemireddy Prabhakar Reddy	16950000
Vemireddy Shyamalamma	50000
Total	17000000

Equity Share Break up (Percentage of Total Equity)

As on: 16.09.2010

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Service Provider of Transportation of Shipping Services.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Axis Bank Limited, Corporate Banking Branch, 2nd Floor, Pullareddy Buildings, Greenlands, Begumpet, Hyderabad – 500016, Andhra Pradesh, India

· Karnataka Bank Limited, Nellore, Andhra Pradesh, India

· Barclays Bank PLC, Mumbai, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Working capital loans banks secured	144.895	91.222
Working capital loans financial institutions secured	340.674	393.161
Working capital loans others secured	182.820	95.000
Hire purchase installment payable secured	1470.953	1110.957
Total	2139.342	1690.340
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Loans directors unsecured	0.000	5.000
Total	0.000	5.000

Banking Relations :	--
Financial Institution:	SREI Infrastructure Finance Limited, Vishwakarma, 86C,Topsia Road (South), Kolkata - 700046, West Bengal, India
Auditors :
Name :	K. Srinivasulu and Company Chartered Accountants
Address :	27-1-1564A, 1st Street, Vasavi Nagar, Balaji Nagar, Nellore – 524002, Andhra Pradesh, India
Tel. No.:	91-861-2328332
Mobile No.:	91-9885506555
Fax No.:	91-861-2315952
E-Mail :	srinivaskonjeti@yahoo.co.in
PAN No.:	AENPK3199R

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
17000000	Equity Shares	Rs.10/- each	Rs.170.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17000000	Equity Shares	Rs.10/- each	Rs.170.000 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		170.000	170.000	170.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		276.600	127.237	59.962
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		446.600	297.237	229.962
LOAN FUNDS
1] Secured Loans		2139.342	1690.340	1969.523
2] Unsecured Loans		0.000	5.000	0.000
TOTAL BORROWING		2139.342	1695.340	1969.523
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2585.942	1992.577	2199.485
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2377.154	1839.938	1980.063
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		29.053	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	33.813	105.678	61.163
	Sundry Debtors	828.988	404.680	432.683
	Cash & Bank Balances	29.749	37.968	30.042
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	343.087	225.749	286.548
Total Current Assets		1235.637	774.075	810.436
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	942.816	571.588	559.091
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	113.716	50.568	32.733
Total Current Liabilities		1056.532	622.156	591.824
Net Current Assets		179.105	151.919	218.612
MISCELLANEOUS EXPENSES		0.630	0.720	0.810
TOTAL		2585.942	1992.577	2199.485

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales/ Work Contract Bills	3027.437	2051.826	2346.174
		Other Income	NA	5.971	8.919
		TOTAL (A)	NA	2057.797	2355.093
Less	EXPENSES
		Work Cost		1419.751	1690.411
		General and Administrative Cost		99.446	106.115
		Increase/ decrease in stock		(44.515)	(3.014)
		TOTAL (B)	NA	1474.682	1793.512
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			583.115	561.581
Less	FINANCIAL EXPENSES (D)			195.066	176.317
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		564.066	388.049	385.264
Less/ Add	DEPRECIATION/ AMORTISATION (F)		327.087	286.132	294.201
	PROFIT BEFORE TAX (E-F) (G)		236.979	101.917	91.063
Less	TAX (H)		87.616	34.642	31.102
	PROFIT AFTER TAX (G-H) (I)		149.363	67.275	59.961
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		127.236	59.961	0.000
	BALANCE CARRIED TO THE B/S		276.599	127.236	59.961
	Earnings Per Share (Rs.)		8.79	NA	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	3.27	2.55
Net Profit Margin (PBT/Sales)	(%)	7.83	4.97	3.88
Return on Total Assets (PBT/Total Assets}	(%)	6.56	3.90	3.26
Return on Investment (ROI) (PBT/Networth)		0.53	0.34	0.40
Debt Equity Ratio (Total Liability/Networth)		7.16	7.80	11.14
Current Ratio (Current Asset/Current Liability)		1.17	1.24	1.37

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	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	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

CONTINGENT LIABILITIES: (As on: 31.03.2011)

The outstanding contingent liabilities on account of bank guarantees given by the banks: Rs.90.000 Millions

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U14200AP2008PTC057363
Name of the company	VPR MINING INFRASTRUCTURE PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	8-2-268/K/18, Plot No.18, Navodaya Colony, Road No.2, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India E-mail: srinivaskonjeti@yahoo.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10286245
Type of charge	· Immovable property · Book debts
Particular of charge holder	Axis Bank Limited, Corporate Banking Branch, 2nd Floor, Pullareddy Buildings, Greenlands, Begumpet, Hyderabad – 500016, Andhra Pradesh, India E-mail: bapirajuaxis@gmail.com
Nature of instrument creating charge	Undertaking cum Indemnity Deed.
Date of instrument Creating the charge	09.08.2012
Amount secured by the charge	Rs.955.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest No Change in other terms and Conditions Terms of Repayment No Change in other terms and Conditions Margin No Change in other terms and Conditions Extent and Operation of the charge Hypothecation on exclusive charge basis all the fixed assets finance or acquired out of Term Loan.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Exclusive EM of Corporate office of the company at 8-2-268/K/18, plot No.18, Navodaya Colony, Road No.2, Banjara Hills, Hyderabad. Exclusive EM of property at Nellore Registration District, Nellore sub-Registration, Nellore Municipality, Nellore Bit-1, Tekkemitta, Kondayapalem Road, in S.nos 650/1 and 650/2 under layout plan vide- LPNo101/95 of Director of Town and Country Planning, Hyderabad-as per approved layout plan plot bearing No.562(Part) consisting an extent of 112 ankanams of vacant site out of 160.50 ankanams. Exclusive EM of property at Nellore Registration District, Nellore sub-Registration, Nellore Municipality, Nellore Bit-1, Tekkemitta, Kondayapalem Road, in S.nos 650/1 and 650/2 under layout plan vide LPNo101/95 of Director of Town and Country Planning, Hyderabad-as per approved layout plan plot bearing No.558 consisting an extent of 111.11 ankanams. ESCROW of entire cash flows of PT VPR Laxmindo arising out of the execution of the contract awarded by PT Bara Kumala Sakti, Indonesia. ESCROW of lease rentals payable by PT VPR Laxmindo to VPR Mining Infrastructure Private Limited on the equipment taken on lease.
Particulars of the present modification	The company has been sanctioned LER limit of Rs.55.000 Millions Existing Limits Rs.900.000 Millions The Total Limits outstanding are Rs.955.000 Millions

FIXED ASSETS:

· Plant and Machinery

· Vehicles

AS PER WEBSITE DETAILS

HISTORY

Subject is a Registered Company incorporated in January 2008 with The Registrar of Companies, Andhra Pradesh, India with the main objective to take over as a going concern the existing Sole Proprietary business of Mr. V Prabhakar Reddy, Contractor carrying on the business of Overburden removal for Coal Mines and Earth excavation in Irrigation Projects since 1990.

Subject today is strategically positioned to confidently march into the future supported by an experienced Management, committed team of professionals, state of art equipment and operational expertise. Currently, the Company is re-evaluating its potential to scale up and reach new heights. The Company has increased to improve productivity. This is evident in its intent to build a large fleet of dumpers, excavators and other mining equipment.

MILESTONES

· The Company has highest excavation capacity of 5 million CuM per month for overburden removal for coal mines.

· Subject has single largest fleet of 335 heavy duty vehicles in addition to 119 heavy duty machines comprising Excavators, Bulldozers, Motor Graders, Vibratory Compactor, Drilling Machines, etc., giving the Company a distinct advantage over other players in this sector.

· An experienced management team empowered to exploit the Company’s existing strengths and to develop new capabilities.

· The Company is positioned with large market share and preferred choice.

· Experience in operations for the past 20 years.

· Macroscopic view of how to handle operations in the specified time schedules.

· Safety precautions in operations as per DGMS (Director General for Mines Safety) guidelines.

· Strong relations with suppliers and vendors enabling reduction in the lead time for procurement of machinery and spares.

· Experience in maintenance of machinery.

· Subject has full fledged fabrication facility at each project site for proper maintenance of all equipment and dumpers to keep the machinery running in top gear.

· Has a distinct track record of completion of all the projects before the schedules.

· The company has a turnover CAGR of 67% coupled with an operating margins.

· No arbitration or levy of penalty on the company in about two decades of operations.

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.54.26
UK Pound	1	Rs.88.15
Euro	1	Rs.71.03

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
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	6
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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		47

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.