MIRA INFORM REPORT

Report Date :

28.02.2013

IDENTIFICATION DETAILS

Name :	BHARATHI CEMENT CORPORATION PRIVATE LIMITED
Formerly Known As :	Raghuram cements limited
Registered Office :	8-2-696, Carmel Point, Road No.12, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	12.05.1999
Com. Reg. No.:	01-31682
CIN No.: [Company Identification No.]	U26942ap1999pTc031682
TAN No.: [Tax Deduction & Collection Account No.]	Hydr04482C
PAN No.: [Permanent Account No.]	Aadcr3079g
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Cements.

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 12452000
Status :	Yet to commence commercial business
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	The company was incorporated in 1999 and as under implementation stage. It is yet to commence its commercial business activities. Payments are reported to be slow. The company can be considered for business dealings with some caution, initially.

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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION declined BY

Name :	Mr. Vishwanathan Reddy
Designation :	Chief Executive Officer

LOCATIONS

Registered Office :	8-2-696, Carmel Point, Road No.12, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India
Tel. No.:	91-40-30006999
Fax No.:	91-40-30006977
E-Mail :	siva_nellai@hotmail.com vsreddy@eth.net velmurugan@sandurpower.com raghuramcements@gmail.com balajig@bharathicement.com
Website :	www.bharathicement.com
Factory :	Nallalingayapalli Village, Kamalapuram Mandal, Kadapa District - 516 289, Andhra Pradesh, India
Tel. No.:	91-8563-200400/ 200411
Branch Office :	Located at: · Kadapa · Vijayawada · Tirupati · Chennai · Vellore · Salem · Coimbatore · Bangalore · Mysore · Mangalore · Bellary · Hubli

DIRECTORS

As on 18.09.2009

Name :	Mr. Jella Jagan Mohan Reddy
Designation :	Whole Time Director
Address :	Nadikota Raveendra Nagar, Kadapa – 500 001, Andhra Pradesh, India
Date of Birth/Age :	15.06.1971
Date of Appointment :	01.10.2009
Name :	Mr. Harish C. Kamarthy
Designation :	Whole Time Director
Address :	H188, 18^th Main, 11^th Cross Sector A HSR Layout, Bangalore – 560 034, Karnataka, India
Date of Birth/Age :	27.11.1968
Date of Appointment :	01.10.2009
Name :	Mr. Y.S. Jagan Mohan Reddy
Designation :	Chairman
Address :	269/S/98, Sagar Society, Road No.2, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India
Date of Birth/Age :	21.12.1972
E-Mail:	velmurgan@sandurpower.com
Date of Appointment :	01.12.2006
Directorship in other companies :
CIN of the company	U40101KA1998PLC024355
Name of the company :	Sandur Power Company Limited
Designation :	Managing Director
CIN of the company	U40109AP1999PTC031428
Name of the company :	Saraswati Power and Industries Private Limited
Designation :	Director
CIN of the company	U01119TN1994PTC027017
Name of the company :	Kealawn Technologies Private Limited
Designation :	Director
CIN of the company	U04520KA1988PTC009606
Name of the company :	Classic Realty Private Limited
Designation :	Director
Name :	Mr. Ravinder Reddy Madadi
Designation :	Director
Address :	H.No.8-3-222/1/4, Flat No. 402, Woodswale Apartments, Madhura Nagar, Hyderabad – 500 038, Andhra Pradesh, India
Date of Birth/Age :	27.05.1961
Date of Appointment :	01.09.2008
Name :	Mr. V.R. Vasudevan
Designation :	Whole Time Director
Address :	Plot No. 262, Kamalapuri Colony, Hyderabad – 500 073, Andhra Pradesh, India
Date of Birth/Age :	09.03.1937
Date of Appointment :	29.09.2005
Name :	Mr. Markus Oberle
Designation :	Director
Name :	Mr. Rodolphe Yves Revel
Designation :	Director
Address :	Rue B X5 ET6, Point E, Dakar
Date of Birth/Age :	15.01.1973
Date of Appointment :	30.04.2010
Name :	Mr. Jacques Marie Merceron-VICAT
Designation :	Additional Director
Address :	188, Avenue, Victor Hugo, Paris 75116
Date of Birth/Age :	22.03.1938
Date of Appointment :	30.04.2010
Name :	Mr. Dominique Guy Louis Sidos
Designation :	Additional Director
Address :	18, Boulevard Des Belges, 69006 yon 06, France 69006
Date of Birth/Age :	13.09.1963
Date of Appointment :	30.04.2010
Name :	Mr. Jean Ulrich Thierry-MIEG
Designation :	Additional Director
Address :	26 Rue Vignon, Paris 75009
Date of Birth/Age :	21.05.1960
Date of Appointment :	30.04.2010
Name :	Mr. Eric Gerard Bernard Holard
Designation :	Additional Director
Address :	173, Quai Du Commerce, Calais, 62100
Date of Birth/Age :	30.10.1960
Date of Appointment :	30.04.2010
Name :	Mr. G. Balaji
Designation :	Director
Address :	101/38, New No.14, 21^st Main, Padmanabha Nagar, Bangalore – 560 070, Karnataka, India
Date of Birth/Age :	10.07.1964
Date of Appointment :	30.04.2010
Name :	Mr. Gilbert Noel Claude Natta
Designation :	Additional Director
Address :	9, Rue Schlumberger, Marnes La Coquette 92430
Date of Birth/Age :	24.12.1948
Date of Appointment :	30.04.2010

KEY EXECUTIVES

Name :	P. Pavani Tulasi
Designation :	Secretary
Address :	8-2-269/S/98, Sagar Society, Road No.2, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India
Date of Birth/Age :	15.08.1984
Date of Appointment :	14.02.2009

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.02.2010

Names of Shareholders (Equity Shares)	No. of Shares
Y.S. Jagan Mohan Reddy	29822416
Jella Jagan Reddy	2000
Sandur Power Company Limited	185000
Silicon Builders Private Limited	15000000
B.M. Prabhakar	2000
D. Prabhakar	2000
Elizabeth George	2000
G. Murali	2000
Alpha Villas Private Limited	113792
Alpha Avenues Private Limited	113792
Total	45245000

As on 24.02.2010

Names of Shareholders (Preference Shares)	No. of Shares
Alpha Avenues Private Limited-Share Application	2019228
Alpha Villas Private Limited-Share Application	2019228
Dalmia Cement (Bharat) Limited - Investor	2011486
Gilchrist Investments Private Limited-Share Application	2403844
India Cement Limited - Investor	1459147
Nimmagadda Prasad	459459
Suguni Construction	137931
Total	10510323

As on 30.04.2010

Names of Allottees (Equity Shares)	No. of Shares
Parficim S.A.S.	21841538
Probal Bhaduri	10
Gyandendra Kumar	10
Anuradha Mukherjee	10
Total	21841568

As on 18.09.2009

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	34.06
Directors or relatives of directors	65.92
Other top fifty shareholders	0.02
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cements.

Products :

Item Code No. (ITC Code)	2523
Product Description	Cement

PRODUCTION STATUS (As on 31.03.2009)

Particulars	Licensed Capacity	Installed Capacity	Actual Production
Cement	5 Million tpa	Project under implementation	NA

GENERAL INFORMATION

Bankers :

Oriental Bank of Commerce, Plot No. 52, Road No. 5, Jubilee Hills, Hyderabad – 500 033, Andhra Pradesh, India

Facilities :

Secured Loans	31.03.2009 Rs. In Millions
(Secured by EM on land and building and first charge on fixed assets of the company on pari passu basis)
Term Loan from Oriental Bank of Commerce	2000.000
Term Loan from Andhra Bank	749.500
Term Loan from Canara Bank	749.000
Total	3498.500

Unsecured Loans	31.03.2009 Rs. In Millions
Saraswathi Power and Industries (Private) Limited (Includes interest accrued Rs.6.303 millions)	236.300
Total	236.300

Banking Relations :	--
Auditors :
Name :	I.V.S. and associates Chartered Accountants
Address :	Plot No. 10, Road No. 3, Journalist Colony, Banjara Hills, Hyderabad – 500037, Andhra Pradesh, India
Tel. No.:	91-40-23351202
E-Mail :	raju_ivs@yahoo.com rajuivs@gmail.com
Associates/Subsidiaries :	Mines and Rock Products (India) Private Limited CIN No.: U14102KA2008PTC046544 Sri Manjunatha Stones Private Limited CIN No.: U14102KA2008PTC046545 Naren Rocks and Mines Private Limited CIN No.: U14200KA2008PTC047222

CAPITAL STRUCTURE

After 18.09.2009

Authorised Capital : Rs.930.000 millions

Issued, Subscribed & Paid-up Capital : Rs.791.969 millions

As on 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
57000000	Equity Shares	Rs.10/- each	Rs.570.000 millions
13000000	0% Convertible Preference Shares	Rs.10/- each	Rs.130.000 millions
	Total		Rs.700.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
45245000	Equity Shares	Rs.10/- each	Rs.452.500 millions
10510323	0% Convertible Preference Shares	Rs.10/- each	Rs.105.100 millions
	Total		Rs.557.600 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		557.600	552.700	469.116
2] Share Application Money		500.000	0.000	720.000
3] Reserves & Surplus		2055.300	1337.900	189.718
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3112.900	1890.600	1378.834
LOAN FUNDS
1] Secured Loans		3498.500	600.400	0.000
2] Unsecured Loans		236.300	0.000	0.000
TOTAL BORROWING		3734.800	600.400	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		6847.700	2491.000	1378.834
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		313.800	2.100	0.076
Preoperative Expenses		457.700	91.300	24.760
Capital work-in-progress		4819.200	1048.100	205.902
INVESTMENT		164.300	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	258.200	536.900	1081.258
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1083.600	838.700	68.669
Total Current Assets		1341.800	1375.600	1149.927
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	206.700	19.100	0.742
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	42.400	7.000	1.104
Total Current Liabilities		249.100	26.100	1.845
Net Current Assets		1092.700	1349.500	1148.082
MISCELLANEOUS EXPENSES		0.000	0.000	0.014
TOTAL		6847.700	2491.000	1378.834

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Income	0.000	0.000	0.000
		Other Income	29.100	41.000	9.632
		TOTAL	29.100	41.000	9.632
Less	EXPENSES
		Office Expenses	0.000	0.000	0.000
		Administrative Expenses
		Advertising Expenses
		TOTAL	0.000	0.000	0.000
	PROFIT BEFORE TAX		29.100	41.000	9.632
Less	TAX		10.100	14.200	3.247
	PROFIT AFTER TAX		19.000	26.800	6.385
	Earnings Per Share (Rs.)		0.34	0.48	0.14

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	65.29	65.37	66.29
Net Profit Margin (PBT/Sales)	(%)	0.00	0.00	0.00
Return on Total Assets (PBT/Total Assets}	(%)	1.77	2.98	0.84
Return on Investment (ROI) (PBT/Networth)		0.01	0.02	0.01
Debt Equity Ratio (Total Liability/Networth)		1.28	0.33	0.00
Current Ratio (Current Asset/Current Liability)		5.39	52.70	623.27

LOCAL AGENCY FURTHER INFORMATION

Note:

The registered office of the company has been shifted from 8-2-269/S/98, Sagar Society, Road No 2, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh to the present address w.e.f. 03.09.2010.

BACKGROUND:

Subject, formerly known as Raghuram Cements Limited was incorporated on 12^th May, 1999 as a company with limited under the Companies Act, 1956 and got the name changed as Bharathi Cement Corporation Limited on 6^th August, 2008.

The company is in the final stage of setting up a 2.50 million ton capacity Cement Plant in the I Phase. Phase II of the project is under implementation.

Corporate identity number of the company	U26942ap1999plc031682
Name of the company	BHARATH CEMENT CORPORATION LIMITED
Address of the registered office or of the principal place of business in India of the company	# 8-2-269/S/98, Sagar Society, Road No. 2, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India E-Mail: siva_nellai@hotmail.com
This form is for	Creation of charge
Type of charge	Book Debts Floating Charge
Particular of charge holder	Oriental bank of commerce, Jubilee Hills, Hyderabad – 500 033, Andhra Pradesh, India E-mail: bm0924@obc.co.in
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation, Cash Credit Account Agreement, Agreement for Pari-passu cum modification of charge
Date of instrument Creating the charge	18/07/2009
Amount secured by the charge	Rs.500.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: PLR Terms of Repayment: Not Applicable Margin: 25% Extent and Operation of the charge: Pari-pasu first charge on all current assets to the lending banks in lending proportion i.e. (1) CC Limits :Oriental Bank of Commerce Rs.200.000 millions; Andhra Bank Rs.100.000 millions and Canara Bank Rs.100.000 millions (2) BG Limit: Oriental Bank of Commerce Rs.100.000 millions.
Short particulars of the property charged	First Charge on all current assets including cash, book debts and all receivables and revenues from the project

Corporate identity number of the company	U26942ap1999plc031682
Name of the company	BHARATH CEMENT CORPORATION LIMITED
Address of the registered office or of the principal place of business in India of the company	# 8-2-269/S/98, Sagar Society, Road No. 2, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India
This form is for	Modification of charge
Type of charge	· Immovable property · Any interest in immovable property
Particular of charge holder	Oriental bank of commerce, plot No. 52, Road No. 5, Jubilee Hills, Hyderabad – 500 033, Andhra Pradesh, India E-mail: bm0924@obc.co.in
Nature of instrument creating charge	Deed of hypothecation, common term loan agreement
Date of instrument Creating the charge	31.10.2008
Amount secured by the charge	Rs. 7800.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest: PLR minus 1.75% Terms of repayment : Rs. 3500.000 in 72 equal monthly installment with 6 months moratorium from COD or from November 26, 2009 whichever is earlier and for Rs. 4300.000 millions in 60 equal installments starting from 1^st Jan 2011 Which is after completion of 6 months from cOD (30.06.2010). Interest as and when due on monthly basis. Margin: Minimum of 30.10% for Rs. 3500.000 millions and 26.68% for Rs. 4300.000 millions. Extent and Operations of the charge The Charge is 1^st charge in proportion to the lending of consortium banks for Rs. 3500.000 millions and Rs. 4300.000 millions
Short particulars of the property charged (Including location of the property)	Entire immovable property present and future standing in the name of the company including land and building located at sy. No. 212, 215, 217 and 355 etc of Yerraguntla and Kamlapuram Mandals of Kadapa District. Entire plant and machinery, Machinery spares and other assets present ort future both tangible and intangible excluding current assets.

CONTINGENT LIABILITIES: (As on 31.03.2009)

· Outstanding Letter of Credits – Rs.106.204 millions

· Outstanding Bank Guarantees – Rs.60.044 millions

FIXED ASSETS:

· Land

· Computers

· Vehicles

· Furniture

· Other Fixed Assets

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 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.53.83
UK Pound	1	Rs.81.24
Euro	1	Rs.70.38

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	-
--CREDIT LINES	1~10	4
--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		26

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

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.