MIRA INFORM REPORT

Report Date :

01.04.2013

IDENTIFICATION DETAILS

Name :	SREE ASTALAXMI SPINNING MILLS PRIVATE LIMITED
Registered Office :	Factory Premises, Servey No.38, Light Industrial Area, Bhaattisavergaon Road, Adilabad – 504001, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	13.07.2001
Com. Reg. No.:	01-037019
Capital Investment / Paid-up Capital :	Rs.65.900 Millions
CIN No.: [Company Identification No.]	U17111AP2001PTC037019
PAN No.: [Permanent Account No.]	AAHCS3284J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer Polyester Filament Yarn.
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 400000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The latest financials are not made available with the government department. As per previous year’s, the external borrowing seems to be huge. However, trade relations are reported to be fair. Business is active. Payments are unknown. The company can be considered for business dealings with great caution. Note: Profit and Loss account 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 – 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, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	FITCH
Rating	BB- (Long Term Rating) – Fitch rating withdraw due to lack of information.
Date	July 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/ Factory :	Factory Premises, Servey No.38, Light Industrial Area, Bhaattisavergaon Road, Adilabad – 504001, Andhra Pradesh, India
Tel. No.:	91-8732-226692/ 233383/ 233384
Fax No.:	91-8732-226132/ 233383
E-Mail :	asawavickey@gmail.com astlaxmi@rediffmail.com

DIRECTORS

As on: 30.09.2010

Name :	Mr. Mahesh Kumar Khethan
Designation :	Director
Address :	6-7-72/1/A, Bhoktapur, Adilabad - 504001, Andhra Pradesh, India
Date of Appointment :	13.07.2001
DIN No.:	02133124
Name :	Mr. Raghunath Mittal
Designation :	Director
Address :	4-6-355, N H 7, Adilabad - 504001, Andhra Pradesh, India
Date of Appointment :	13.07.2001
DIN No.:	01555625
Name :	Mr. Athimolam Perumal Samy
Designation :	Director
Address :	3rd Floor, No 1, Mahalakshmi Tower, Lakmi Puram Main Road, Guntur -522002, Andhra Pradesh, India
Date of Appointment :	13.07.2001
Name :	Mr. Mukesh Rani Agarwal
Designation :	Director
Address :	5-1-266, Jambagh, Hyderabad - 500195, Andhra Pradesh, India
Date of Appointment :	13.07.2001

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2010

Names of Shareholders	No. of Shares
Raghunath Mittal	637500
Sanjeev Mittal	100000
Rohit Goel	100000
Rajeev Kumar Mittal	150000
Santosh Kumar Goyal	150000
Mahesh Kumar Khetan	175000
Dhiraj Kumar Khetan	200000
Vikrant Kumar Khetan	215000
Kirti Khetan	142500
Vidya Devi Khetan	280000
Promod Kumar Agarwal (Huf)	35000
Rajesh Kumar Agarwal (Huf)	95000
Deepak Birolia	200000
Rajesh Kumar Agarwal	285000
Manju Devi Khetan	250000
Athimoolam Perumal Swamy	32500
Mukesh Rani Agarwal	202500
Shri Rama Pressing Factory, India	200000
Sri Anjanaiah Cotton Mills Private Limited, India	100000
Total	3550000

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2010

Category	Percentage
Bodies corporate	2.82
Directors or relatives of directors	91.55
Others	5.63
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer Polyester Filament Yarn.

Products :

Product Description	ITC Code
Yarn, Waste, Combernoil	5205-11/5202-10

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of Hyderabad, Adilabad Main Branch, Shivaji Chowk, Adilabad - 504001, Andhra Pradesh, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	192.264	155.635
Working capital loans banks secured	66.099	46.048
Other debt secured	12.000	20.068
Total	270.363	221.751

Banking Relations :	--
Auditors :
Name :	MKA Associates Chartered Accountants
Address :	Dwarakanagar, Adilabad, Andhra Pradesh, India
PAN No.:	AAHFM2660F

CAPITAL STRUCTURE

After: 31.03.2011

Authorised Capital : Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.65.900 Millions

As on: 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
4250000	Equity Shares	Rs.10/- each	Rs.42.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3550000	Equity Shares	Rs.10/- each	Rs. 35.500 Millions

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs.10/- each	Rs.80.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6590000	Equity Shares	Rs.10/- each	Rs.65.900 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		65.900	35.500	44.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		35.130	35.588	18.624
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		101.030	71.088	63.124
LOAN FUNDS
1] Secured Loans		270.363	221.751	169.084
2] Unsecured Loans		100.000	30.900	35.265
TOTAL BORROWING		370.363	252.651	204.349
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		471.393	323.739	267.473
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		248.773	185.180	183.377
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	113.473	97.337	16.384
	Sundry Debtors	94.901	34.465	60.295
	Cash & Bank Balances	0.538	2.008	2.015
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	32.097	19.786	12.552
Total Current Assets		241.009	153.596	91.246
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	5.070	6.017	1.765
	Other Current Liabilities	1.553	0.286	0.433
	Provisions	11.961	8.734	4.952
Total Current Liabilities		18.584	15.037	7.150
Net Current Assets		222.425	138.559	84.096
MISCELLANEOUS EXPENSES		0.195	0.000	0.000
TOTAL		471.393	323.739	267.473

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income	565.080	256.432
		Other Income	NA	0.705
		TOTAL (A)	NA	257.137
Less	EXPENSES
		Cost of Goods Sold	NA	148.522
		Manufacturing Expenses		48.819
		Administration, Selling and Distribution Expenses		14.763
		Preliminary Expenses Written Off		0.020
		TOTAL (B)	NA	212.124
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		55.403	45.013
Less	FINANCIAL EXPENSES (D)		14.350	13.787
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		41.053	31.226
Less/ Add	DEPRECIATION/ AMORTISATION (F)		28.784	29.095
	PROFIT BEFORE TAX (E-F) (G)		12.269	2.131
Less	TAX (I)		4.305	0.935
	PROFIT AFTER TAX (G-I) (J)		7.964	1.196
	Earnings Per Share (Rs.)		2.24	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	NA	0.47
Net Profit Margin (PBT/Sales)	(%)	NA	2.17	0.83
Return on Total Assets (PBT/Total Assets}	(%)	NA	3.62	0.78
Return on Investment (ROI) (PBT/Networth)		NA	0.17	0.03
Debt Equity Ratio (Total Debt/Networth)		3.67	3.55	3.24
Current Ratio (Current Asset/Current Liability)		12.97	10.21	12.76

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 two years	Yes
12]	Profitability for last two 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	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2011	As on 31.03.2010
Rupee term loans others unsecured	100.000	30.900
Total	100.000	30.900

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U17111AP2001PTC037019
Name of the company	SREE ASTALAXMI SPINNING MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Factory Premises, Servey No.38, Light Industrial Area, Bhaattisavergaon Road, Adilabad – 504001, Andhra Pradesh, India E-mail: asawavickey@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90126506
Type of charge	· Immovable property · Any interest in immovable property · Book debts · Movable property (not being pledge) · Others (guarantee)
Particular of charge holder	State Bank of Hyderabad, Adilabad Main Branch, Shivaji Chowk, Adilabad - 504001, Andhra Pradesh, India E-mail: adilabadmain@sbhyd.co.in
Nature of instrument creating charge	Supplemental agreement of hypothecation Supplemental deed of guarantee Memorandum of deposit of title deeds Supplemental agreement of loan
Date of instrument Creating the charge	24.02.2012
Amount secured by the charge	Rs.511.800 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest At 3.75% above base rate presently 14.25% p.a. (floating) Terms of Repayment On demand Margin Imported Raw Materials: 25% Indigenous Raw Materials: 25% Stock in process: 25% Stores and Spares: 25% Finished goods: 25% Book debts: 50% (90 days) Extent and Operation of the charge The charge operates for duly repayment of loan amount together interest in time.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Primary: Working Capital:1st charge on the entire current assets of the Company (Present and future) Term Loan: First charge over the fixed assets of the Company (Present and future) Collateral: Working Capital: Extension of first charge over the fixed assets of the Company Term Loan: Extension of first charge over the current assets of the Company along with EM of the properties Personal guarantee of all directors
Date of instrument modifying the charge	30.06.2010
Particulars of the present modification	Limit has been enhanced from Rs 391.400 Millions to Rs 511.800 Millions

FIXED ASSETS

· Land

· Office Building

· Factory Building

· Plant and Machinery

· Office Equipments

· Factory Equipments

· Computer Equipments

· Furniture and Fixtures

· Vehicles

· Aircrafts Helicopters

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 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.54.39
UK Pound	1	Rs.82.32
Euro	1	Rs.69.54

INFORMATION DETAILS

Report Prepared by :

VRN

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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.