MIRA INFORM REPORT

Report Date :

02.01.2013

IDENTIFICATION DETAILS

Name :	RICETEC MACHINERY PRIVATE LIMITED
Registered Office :	Plot No. 57/P, Phase – I, IDA Jeedimetla, Hyderabad – 500 055, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	31.03.2004
Com. Reg. No.:	01-042979
Capital Investment / Paid-up Capital :	Rs.1.300 Millions
CIN No.: [Company Identification No.]	U29299AP2004PTC042979
TAN No.: [Tax Deduction & Collection Account No.]	HYDR04166B
PAN No.: [Permanent Account No.]	AADCR1195D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Food Processing Machinery
No. of Employees :	120 (Approximately) (In office = 50 + In Factory = 70)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 50000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track record. 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 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, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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.

INFORMATION PARTED BY

Name :	Mr. Rajesh
Designation :	Marketing Department
Contact No.:	91-9440624437
Date :	21.12.2012

LOCATIONS

Registered Office / Factory :	Plot No. 57/P, Phase – I, IDA Jeedimetla, Hyderabad – 500 055, Andhra Pradesh, India
Tel. No.:	91-40-23195938 / 23195729 / 64535938 / 23062218
Mobile No.:	91-9446624435 (Mr. T R Bhanu Prakash) 91-9440624437 (Mr. Rajesh)
Fax No.:	91-40-23195905
E-Mail :	mohanraoyakkali@gmail.com rice_tec@yahoo.co.in info@ricetecmachinery.com
Website :	http://www.ricetecmachinery.com

DIRECTORS

As on 29.09.2012

Name :

Mr. Bhanu Prakash Raja Reddy Thimmapuram

Designation :

Director

Address :

Flat 911, Vikranth Residency, Yadi Reddy Nagar Colony, Secunderabad, Hyderabad – 500 011, Andhra Pradesh, India

Date of Birth/Age :

08.03.1975

Date of Appointment :

31.03.2004

DIN No.:

00776407

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	U29299AP2004PTC042979	RICETEC MACHINERY PRIVATE LIMITED	Director	31-03-04	31-03-04	-	Active	NO
2	U29210AP2012PTC084426	RICETEC DRIERS AND EQUIPMENTS PRIVATE LIMITED	Director	26-11-12	26-11-12	-	Active	NO

Name :

Mr. Putalaputtu Purandhar Reddy

Designation :

Director

Address :

Plot – 38, H No. 5-3-395, Sri Krishna Nagar, Kukatpally, Hyderabad – 500 072, Andhra Pradesh, India

Date of Birth/Age :

09.06.1974

Date of Appointment :

31.03.2004

DIN No.:

01779360

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	U29299AP2004PTC042979	RICETEC MACHINERY PRIVATE LIMITED	Director	31-03-04	31-03-04	-	Active	NO
2	U29210AP2012PTC084426	RICETEC DRIERS AND EQUIPMENTS PRIVATE LIMITED	Director	26-11-12	26-11-12	-	Active	NO

Name :

Mrs. Puthalapattu Chandrakala

Designation :

Director

Address :

5-3-388, Srikrishna Nagar, Kukatpally, Hyderabad – 500072, Andhra Pradesh, India

Date of Birth/Age :

31.03.1978

Date of Appointment :

01.04.2010

DIN No.:

03184077

Name :

Mrs. Veena Kumari Thimmapuram

Designation :

Director

Address :

7 and 1/ Part, Pragati Colony, Manovikas Nagar, Bowenpally, Secunderabad, Hyderabad – 500011, Andhra Pradesh, India

Date of Birth/Age :

26.10.1980

Date of Appointment :

01.04.2010

DIN No.:

03273996

KEY EXECUTIVES

Name :	Mr. Rajesh
Designation :	Marketing Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
T. R. Bhanu Prakash	104000
P. N. Purandhar	26000
Total	130000

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Food Processing Machinery
Products :	Rice Mill Machinery · Bran Purifier · Whitener Polisher · Pre-Cleaner · Destoner · Vibro Rubber Sheller · Husk Aspirator · Paddy Separator Daal Mill Machinery Polisher Air lock System Super Silley Polisher Silky Polisher Shifter Multi Shifter Grader Grains Processing Machinery Indent Grader Elevator Rice Sieve  Blower Cyclone Paddy Sieve
Exports :
Products :	Food Processing Machinery
Countries :	· Bangladesh · Nepal
Terms :
Selling :	Cash / Credit
Purchasing :	Cash / Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

120 (Approximately) (In office = 50 + In Factory = 70)

Bankers :

· ING Vysya Bank Limited, 3-3-798, I Floor, Vysya Bank Building, General Bazar, Secunderabad, Hyderabad – 500 003, Andhra Pradesh, India

· Small Industries Development Bank of India, 101, 1^st Floor, Hermtiate Office Complex, Saifabad, Hyderabad – 500004, Andhra Pradesh, India

· ICICI Bank

· HDFC Bank, Hyderabad, Andhra Pradesh, India

· State Bank of India

· Syndicate Bank

· Abn Amro Bank

· Barclays Bank

· Kotak Mahendra Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long Term Borrowings
Term loans from banks	2.832	3.576
Total	2.832	3.576
Unsecured Loan	As on 31.03.2012	As on 31.03.2011
Long Term Borrowings
Loans and advances from related parties Bhanu Marketing	0.583	0.583
from banks	4.122	5.362
from financial institutions and other parties	3.951	5.770
Total	8.656	11.715

Banking Relations :	--
Auditors :
Name :	GN and Associates Chartered Accountants
Address :	Flat No. 1103, 11^th Floor, Babukhan Estate, Basheerbagh, Hyderabad – 500 001, Andhra Pradesh, India
Tel. No.:	91-40-66825447 / 66365447
Fax No.:	91-40-66635447
E-Mail :	gnacas@yahoo.co.in
PAN.:	AAEFG2114K

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
130000	Equity Shares	Rs.10/- each	Rs.1.300 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
130000	Equity Shares	Rs.10/- each	Rs.1.300 Millions

Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period

Particulars	Number	Amount In Millions
Shares outstanding at the beginning of the year	1 30,000	1.300
Shares Issued during the year	--	--
Shares bought back during the year	--	--
Shares outstanding at the end of the year	1 30,000	1.300

Shares in the company held by each shareholder holding more than 5 percent shares

Particulars	No. of Shares held	% of Holding
T.R. Bhanu Prakash	104,000	80%
P.N. Purandhar	26,000	20%

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		1.300	1.300	1.300
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		11.388	7.268	5.121
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		12.688	8.568	6.421
LOAN FUNDS
1] Secured Loans		2.832	3.576	0.000
2] Unsecured Loans		8.656	11.715	7.308
TOTAL BORROWING		11.488	15.291	7.308
DEFERRED TAX LIABILITIES		0.055	0.011	0.030
TOTAL		24.231	23.870	13.759
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14.429	10.798	6.823
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	21.987	21.490	9.642
	Sundry Debtors	5.855	3.779	4.322
	Cash & Bank Balances	2.753	1.279	1.047
	Other Current Assets	3.108	3.173	2.805
	Loans & Advances	1.401	2.799	1.756
Total Current Assets		35.104	32.520	19.572
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	13.001	7.879	6.936
	Other Current Liabilities	8.533	9.335	4.366
	Provisions	3.768	2.239	1.343
Total Current Liabilities		25.302	19.453	12.645
Net Current Assets		9.802	13.067	6.927
MISCELLANEOUS EXPENSES		0.000	0.005	0.009
TOTAL		24.231	23.870	13.759

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012
	SALES
		Income	107.743
		Other Income	0.304
		TOTAL (A)	108.047
Less	EXPENSES
		Cost of materials consumed	63.916
		Employee benefits expense	13.822
		Other expenses	20.138
		TOTAL (B)	97.876
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		10.171
Less	FINANCIAL EXPENSES (D)		1.887
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.284
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.117
	PROFIT BEFORE TAX (E-F) (G)		6.617
Less	TAX (H)		2.047
	PROFIT AFTER TAX (G-H) (I)		4.120
	Earnings Per Share (Rs.)		31.69

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Income	82.979	73.926
		Closing Stock	21.490	9.641
		Other Income	0.462	0.477
		TOTAL (A)	104.931	84.044
Less	EXPENSES
		Opening Stock	9.641	4.736
		Direct Expenses	67.076	62.847
		Personnel Expenses	7.741	2.706
		Operating and Administration Expenses	15.680	10.124
		Differed Revenue Expenditure	0.005	0.005
		TOTAL (B)	100.143	80.418
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4.788	3.626
Less	FINANCIAL EXPENSES (D)		0.000	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.788	3.626
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.655	1.021
	PROFIT BEFORE TAX (E-F) (G)		3.133	2.605
Less	TAX (H)		0.986	0.808
	PROFIT AFTER TAX (G-H) (I)		2.147	1.797
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5.121	3.324
	BALANCE CARRIED TO THE B/S		7.268	5.121
	Earnings Per Share (Rs.)		16.52	13.82

Expected Sales (201-13) : Rs.150.000 Millions

The above information has been parted by Mr. Rajesh

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.81	2.05	2.14
Net Profit Margin (PBT/Sales)	(%)	6.14	3.78	3.52
Return on Total Assets (PBT/Total Assets}	(%)	13.36	7.23	9.87
Return on Investment (ROI) (PBT/Networth)		0.52	0.37	0.41
Debt Equity Ratio (Total Liability/Networth)		2.90	4.06	3.11
Current Ratio (Current Asset/Current Liability)		1.39	1.67	1.55

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	No

NOTE:

Registered office of the company has changed from #22/49/1, Bagh Ameeri, Kukatpally, Hydrabad – 500 072, Andhra Pradesh, India to the present address w.e.f. 10.09.2005

REVIEW OF PERFORMANCE AND BUSINESS PROSPECTS:

The Company’s sales for the period is Rs. 107.743 Millions and other income of 0.304 Million with the net profit before tax of 6.167 Millions after providing for depreciation of 2.117 Millions. The major part of the revenue is contributed through the sale of Rice Milling Machinery and spares to various customers In this year under review the company earned profits, the management expects that the demand for the company product exists and are hopeful of getting good business in the ensuing year.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U29299AP2004PTC042979
Name of the company	RICETEC MACHINERY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 57/P, Phase – I, IDA Jeedimetla, Hyderabad – 500 055, Andhra Pradesh, India E-mail : mohanraoyakkali@gmail.com
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Small Industries Development Bank of India, 101, 1^st Floor, Hermtiate Office Complex, Saifabad, Hyderabad – 500004, Andhra Pradesh, India E-mail : rkgarg@sidbi.in
Nature of instrument creating charge	Deed of Hypothecation
Date of instrument Creating the charge	22.04.2010
Amount secured by the charge	Rs.5.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 11.5% Per Annum Terms of repayment Loan shall be repaid in 60 monthly installments, comprising the first 59 monthly installments of Rs.0.083 Million each and finally the last installment of Rs.0.103 Million Margin Rs.2.500 Millions Extent and operation of the charge First charge on entire movable assets to secure the re payment of loan sanctioned by the bank to the company of Rs.5.000 Millions together with interest, additional interest, liquidated damages, costs, etc
Particulars of the property charged	Hypothecation of All Movable assets of the company both present and future, located at Industrial Shed area,33200 Sq ft,(approx) on Plot area 2700 Sq Yards (approx) in Sy No. 177(Part), Lakshmi Nagar, Suraram, Qutubullapur Mandal, R. R. District, Hyderabad-500055, Andhra Pradesh, India

FIXED ASSETS:

· Land

· Computers and Software

· Furniture and Fixtures

· Electrical Equipment

· Office Equipment

· Vehicles

· Plant and Machinery

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.54.83
UK Pound	1	Rs.89.23
Euro	1	Rs.72.48

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.