MIRA INFORM REPORT

Report Date :

19.06.2013

IDENTIFICATION DETAILS

Name :	VISAKHA WIRE ROPES LIMITED
Formerly Known As :	VISAKHA WIRE ROPES PRIVATE LIMITED
Registered Office :	D-15, D-16, EEI Estate, Near BHVP, Visakhapatnam - 530012, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	31.03.1977
Com. Reg. No.:	01-002151
Capital Investment / Paid-up Capital :	Rs. 24.980 Millions
CIN No.: [Company Identification No.]	U31300AP1977PLC002151
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing, Importing, Exporting and Trading of all kinds of Wire and Wire Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 439000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears sharp dip in the turnover and profits during 2013. However, trade relations are reported as decent. Business is active. Payment terms are usually correct and as per commitments. The company can be considered 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : BBB+ [Suspended]
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	March 29, 2012

Rating Agency Name	CRISIL
Rating	Short term rating : A2 [Suspended]
Rating Explanation	Strong degree of safety and low credit risk.
Date	March 29, 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 :	D-15, D-16, EEI Estate, Near BHVP, Visakhapatnam - 530012, Andhra Pradesh, India
Tel. No.:	91-891-3292011/ 2745133/ 2516383/ 2517019
Fax No.:	91-891-2516967
E-Mail :	vwrl2008@hotmail.com vwrl2007@dataone.in vwrl@satyam.net.in

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Anjay Pacheriwala

Designation :

Managing director

Address :

Anjani Bhawan, Opposite MHI, Kokar, Ranchi - 834001, Jharkhand, India

Date of Birth/Age :

06.04.1967

Date of Appointment :

04.08.2005

DIN No.:

00596271

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	U27104JH2004PTC010861	ADI ISPAT PRIVATE LIMITED	Director	30/10/2004	30/10/2004	25/07/2008	Active	NO
2	U31300AP1977PLC002151	VISAKHA WIRE ROPES LIMITED	Managing director	04/08/2005	04/08/2005	-	Active	NO
3	U27106JH2005PTC011721	SHRI RAM WIRE PRODUCTS PRIVATE LIMITED	Managing director	15/01/2007	07/11/2005	-	Active	NO
4	U27200JH2011PTC014619	SHRI RAM STEELWIRE NAGPUR PRIVATE LIMITED	Director	19/01/2011	19/01/2011	-	Active	NO

Name :

Mr. Mahesh Poddar

Designation :

Director

Address :

J.S. Lane, Gandhi Chowk, Upper Bazzar, Ranchi - 834001, Jharkhand, India

Date of Birth/Age :

14.11.1949

Date of Appointment :

04.08.2005

DIN No.:

00098071

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	Company/ LLP Status	Defaulting status
1	U27104JH1987PTC002782	MIKI WIRE WORKS PRIVATE LIMITED	Director	12/01/2007	25/11/1987	Active	NO
2	U27109KA1991PTC011583	MIKI STEEL WORKS PRIVATE LIMITED	Managing director	17/02/1991	17/02/1991	Active	NO
3	U00330JH1991PTC004528	VIKA MANUFACTURING COMPANY PRIVATE LIMITED	Managing director	29/06/2007	01/03/1993	Active	NO
4	U30300KA1995PTC018154	SHILPI WIRE ROPE PRIVATE LIMITED	Director	27/06/1995	27/06/1995	Active	NO
5	U31300AP1977PLC002151	VISAKHA WIRE ROPES LIMITED	Director	04/08/2005	04/08/2005	Active	NO
6	U27106JH2005PTC011721	SHRI RAM WIRE PRODUCTS PRIVATE LIMITED	Whole-time director	07/11/2005	07/11/2005	Active	NO
7	U29130WB1970NPL027659	STEEL WIRE MANUFACTURERS 'ASSOCIATION OF INDIA	Director	28/09/2006	28/09/2006	Active	NO
8	U27200JH2011PTC014619	SHRI RAM STEELWIRE NAGPUR PRIVATE LIMITED	Director	19/01/2011	19/01/2011	Active	NO

Name :

Mr. Shri Krishna Maheshwari

Designation :

Director

Address :

9-9-34, Jagavanipalem High School Road, New Gajuwaka, Visakhapatnam - 530026, Andhra Pradesh, India

Date of Birth/Age :

10.01.1948

Date of Appointment :

19.05.2007

DIN No.:

01274816

Name :

Mr. Abhinav Agrawal

Designation :

Director

Address :

Krishna Kunj, Smata Colony, P.S. Saraswati Vihar, Raipur - 492001, Chhattisgarh, India

Date of Appointment :

08.11.2005

DIN No.:

01377429

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	U31300AP1977PLC002151	VISAKHA WIRE ROPES LIMITED	Director	08/11/2005	08/11/2005	-	Active	NO
2	U27100CT2003PTC021900	KRISHNA IRON STEEL AND POWER PRIVATE LIMITED	Director	04/07/2008	04/07/2008	-	Active	NO
3	U28931CT1995PTC009959	KRISHNA IRON STRIPS AND TUBES PRIVATE LIMITED	Director	25/03/2010	25/03/2010	10/11/2011	Active	NO
4	U27100CT2010PTC021779	KRISHNA GALVANISED STEEL TUBES PRIVATE LIMITED	Director	27/04/2010	27/04/2010	-	Active	NO

Name :

Nuthan Karam Chand Koll

Designation :

Director

Address :

SFA-151, Autonagar, Visakhapatnam - 530012, Andhra Pradesh, India

Date of Birth/Age :

21.12.1951

Date of Appointment :

06.09.1996

DIN No.:

02432849

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	U31300AP1977PLC002151	VISAKHA WIRE ROPES LIMITED	Director	06/09/1996	06/09/1996	-	Active	NO
2	U70200AP1996PLC024879	JUBLEE HILL RESORTS LIMITED	Director	12/04/2006	12/04/2006	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Mahesh Poddar	166200
Nirmala Poddar	50000
Anjana Pacheriwala	355
Anu Pacheriwala	435
Anjay Pacheriwala	485
Gayatri Devi Pacheriwala	349
Pawan Kumar Pacheriwala	362
Anita Pacheriwala	362
Hooghly Vinimay Private Limited	2500
Rup Trade Comm. Private Limited	3750
Lyton Consultancy Private Limited	3750
Rajesh Vanijya Private Limited	3750
Bakliwal Finvest Private Limited	2500
Sukhvarsha Distributors Private Limited	3750
NKP Fincom Private Limited	3750
Apsara Trex Private Limited	3750
Apsara Fintrade Private Limited	3750
Total	249798

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	12.51
Directors or relatives of directors	87.49
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing, Importing, Exporting and Trading of all kinds of Wire and Wire Products.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Axis Bank Limited, Ranchi Branch, Mcmc Ranchi Centre, Main Road, Near Albert Ekka Chowk, H B Road, Ranchi - 834001, Jharkhand, India

Andhra Bank

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
LONG TERM BORROWINGS
Term Loan – 1 Axis Bank Ranchi	0.000	0.451
Term Loan – 2 Axis Bank Ranchi	0.845	4.312
SHORT TERM BORROWINGS
Cash Credit from Axis Bank	44.360	69.250
Cash Credit from Andhra Bank	0.000	0.729
Total	45.205	74.741
Note: LONG TERM BORROWINGS: a) The Company had taken two Term Loans from Axis Esnk, Ranchi, of which – i) First loan is secured by first charge of all existing and future assets. The loan carries interest at 12 75% per annum and is repayable m 60 monthly installments of Rs. 0.153 Million each. The loan is also secured by Personal guarantee of Directors ii) Second loan is secured by hypothecation of Wire drawing machine, purchased by utilising the funds from the Loan The loan carries interest at 12.75% per annum and is repayable in 60 monthly installments of Rs. 0.266 Million each The loan is also secured by Personal guarantee of Directors. b) The unsecured loans from others carry an interest at 10% per annum and are repayable according to the financial convenience of the company. c) Aggregate Amount of loans Guaranteed by Directors as at 31-3-12 - Rs. 22.300 Millions (as at 31-3-11 - Rs. 22.300 Millions) SHORT TERM BORROWINGS: The Cash Credit from Axis Bank is secured by hypothecation of entire current assets of the Company, mainly comprising of Raw Materials. Finished goods Consumables and Book Debts, both present and future. As of the present. It carries interest at 12.75% per annum and is repayable on demand.

Banking Relations :	--
Auditors :
Name :	Rao and Kumar Chartered Accountants
Address :	Door No. 10-50-19/4, Soudamani, Siripuram, Visakhapatnam – 530003, Andhra Pradesh, India
Tel. No.:	91-891-2755327
Fax No.:	91-891-2755365
E-Mail :	contact@raoandkumar.org
Website :	www.raoandkumar.org
Income-tax PAN of auditor or auditor's firm :	AADFR5524R
Associate Companies :	Vika Manufacturing Company Private Limited Miki Steel Works Private Limited Miki Wire Works Private Limited Sri Ram Wire Products Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
295,000	Equity Shares	Rs. 100/- each	Rs. 29.500 Millions
5,000	Preference Shares	Rs. 100/- each	Rs. 0.500 Million
	Total		Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
249,798	Equity Shares	Rs. 100/- each	Rs. 24.980 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	24.980	24.980
(b) Reserves & Surplus	84.850	81.787
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
(3) Non-current liabilities
(a) long-term borrowings	3.415	7.318
a(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	17.414	17.414
(d) long-term provisions	0.000	0.000
(4) Current liabilities
(a) Short term borrowings	44.360	69.979
(b) Trade payables	22.923	18.535
(c) Other current liabilities	3.658	5.261
(d) Short-term provisions	0.700	0.000
TOTAL	202.300	225.274
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	29.961	35.795
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.867	1.374
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.003	0.003
(c) Deferred tax assets (net)	2.201	1.666
(d) Long-term Loan and Advances	16.356	24.293
(e) Other Non-current assets	0.000	0.000
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	53.565	44.219
(c) Trade receivables	58.456	54.054
(d) Cash and cash equivalents	12.714	47.985
(e) Short-term loans and advances	18.209	7.140
(f) Other current assets	9.968	8.745
TOTAL	202.300	225.274

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		24.980
2] Share Application Money		0.000
3] Reserves & Surplus		69.519
4] (Accumulated Losses)		0.000
NETWORTH		94.499
LOAN FUNDS
1] Secured Loans		68.743
2] Unsecured Loans		20.328
TOTAL BORROWING		89.071
DEFERRED TAX LIABILITIES		0.000
TOTAL		183.570
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		32.838
Capital work-in-progress		2.684
INVESTMENT		0.003
DEFERRED TAX ASSETS		1.113
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	71.920
	Sundry Debtors	44.906
	Cash & Bank Balances	7.284
	Other Current Assets	0.000
	Loans & Advances	34.581
Total Current Assets		158.691
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	11.453
	Other Current Liabilities	0.306
	Provisions	0.000
Total Current Liabilities		11.759
Net Current Assets		146.932
MISCELLANEOUS EXPENSES		0.000
TOTAL		183.570

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from Operations	492.123	637.298	636.621
		Other Income	3.370	2.498	3.083
		TOTAL (A)	495.493	639.796	639.704
Less	EXPENSES
		Cost of material consumed	429.752	558.029
		Increase/ Decrease in inventory of finished goods	1.243	(10.664)
		Employee Benefit Expenses	12.351	13.661
		Other Expenses	34.219	46.612
		TOTAL (B)	477.565	607.638	602.877
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		17.928	32.158	36.827
Less	FINANCIAL EXPENSES (D)		7.031	6.239	5.339
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10.897	25.919	31.488
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.452	7.096	8.886
	PROFIT BEFORE TAX (E-F) (G)		4.445	18.823	22.602
Less	TAX (H)		1.373	6.528	7.564
	PROFIT AFTER TAX (G-H) (I)		3.072	12.295	15.038
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		71.659	59.392	44.647
Less	APPROPRIATIONS
		Income tax for earlier year	0.008	0.028	0.293
	BALANCE CARRIED TO THE B/S		74.723	71.659	59.392
	IMPORTS
		Raw Materials	11.301	15.484	NA
	Earnings Per Share (Rs.)		12.30	49.22	60.20

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.62	1.92	2.36
Net Profit Margin (PBT/Sales)	(%)	0.90	2.95	3.55
Return on Total Assets (PBT/Total Assets}	(%)	2.23	8.47	11.80
Return on Investment (ROI) (PBT/Networth)		0.04	0.18	0.24
Debt Equity Ratio (Total Debt/Networth)		0.43	0.72	0.94
Current Ratio (Current Asset/Current Liability)		2.13	1.73	13.50

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	Yes
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

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
LONG TERM BORROWINGS
From Others	2.570	2.555
Total	2.570	2.555

CORPORATE INFORMATION

Subject is an unlisted Public Company limited by Shares, domiciled in India and incorporated on 31^st March 1977 under the provisions of the Companies Act, 1956 It is engaged in the business of manufacturing, Importing, Exporting and Trading in all kinds of Wire and Wire Products and related merchandize in India and elsewhere. The Company has its Registered Office at D-15 and 16, Autonagar, Visakhapatnam – 530012, Andhra Pradesh, India.

OPERATIONS

The company registered a turnover of Rs.543.338 Millions during the year as against the previous year’s figure of Rs.702.739 Millions thereby registered an decrease in turnover by 23%. The company earned a net profit of Rs3.072 Millions after charging Depreciation, Interest and also after making provision for Income Tax during the year as against the previous year net profit of Rs.12.295 Millions. There has been a decrease in profit during the year this mainly because of substantial decrease in turnover with corresponding decrease in sales of the company’s products.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U31300AP1977PLC002151
Name of the company	VISAKHA WIRE ROPES LIMITED
Address of the registered office or of the principal place of business in India of the company	D-15, D-16, EEI Estate, Near BHVP, Visakhapatnam - 530012, Andhra Pradesh, India Email: vwrl2008@hotmail.com
This form is for	Modification of charge
Charge identification number of the modified	10271780
Type of charge	Immovable property Any interest in immovable property Book debts Movable property (not being pledge) Others [All other Current Assets both present & future]
Particular of charge holder	Axis Bank Limited, Ranchi Branch, Mcmc Ranchi Centre, Main Road, Near Albert Ekka Chowk, H B Road, Ranchi - 834001, Jharkhand, India Email: krishnakumar.agrawal@axisbank.com CIN No.: L65110GJ1993PLC020769
Nature of description of the instrument creating or modifying the charge	Composite Hypothecation Deed (Current Assets, Movables, Plant and Machinery), Memorandum of Entry ( Extension of Equitable Mortgage )
Date of instrument Creating the charge	16.04.2013
Amount secured by the charge	Rs. 156.300 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC- Rs.45.000 Millions: Base Rate + 2.75%, Buyers Credit, LC/FLC- Commission 50% of Standard Rate, BG- Commission 75% of Standard Rate, LER- Commission as per Standard Rate. Terms of Repayment CC- Rs.45.000 Millions: Repayable on Demand, Buyers Credit - Rs.40.000 Millions (Sub Limit of CC) - 180 days, LC/FLC- Rs.85.000 Millions - 90/180 days, BG- Rs.20.000 Millions - Maximum 3 yrs, LER- Rs.6.300 Millions - As per Contract. Margin CC- Rs.45.000 Millions: 25%on Stocks and Book Debts upto 90 days, Buyers Credit - Rs.40.000 Millions (Sub Limit of CC) - 10% in the form of Fixed Deposit, LC/FLC- Rs.85.000 Millions - 10% in the form of Fixed Deposit, BG- Rs.20.000 Millions - 10% in the form of Fixed Deposit and 100% cash margin in case of disputed liabilities, LER- Rs.6.300 Millions - Nil. Extent and Operation of the charge Extension of hypothecation charge on entire current assets of the company mainly comprising of stocks in process, raw materials, finished goods, consumables and book debts both present and future. Extension of hypothecation charge on entire fixed assets of the company mainly comprising of plant, machinery, furniture, fixtures, cranes, vehicles, tools and accessories, etc both present and future. Assignment of title of goods under LC. EM of immovable property. Others All limits except LER are interchangeable to each other.
Short particulars of the property charged	Extension of hypothecation charge on entire current assets of the company mainly comprising of stocks in process, raw materials, finished goods, consumables and book debts both present and future. Assignment of title of goods under LC. All the piece of site measuring and extent of 115 sq yds covered by S No-50-1 of Chinagantyada Village, within the limits of the SRO, Gajuwaka and greater Visakhapatnam Municipal Corporation. All the piece of site measuring and extent of 842 sq yds bearing Plot No- D-14 with 2560 sq ft acc shed in industrial development area, Block-B, Autonager, covered by s no-20/ part of Chinagantyada Village, within the limits of the SRO, Gajuwaka and greater Visakhapatnam Municipal Corporation. All the piece of site measuring and extent of 331 sq yds covered by s No-50-1 of Chinagantyada Village, within the limits of the SRO, Gajuwaka and greater Visakhapatnam Municipal Corporation. All the piece of site measuring and extent of 664 sq yds covered by s No-50-1 of Chinagantyada Village, within the limits of the SRO, Gajuwaka and greater visakhApatnam Municipal Corporation. All the piece of site measuring and extent of 4242.94 sq yds or 3548 sq mtrs bearing Plot No- D-15 and D-16 with 2560 sq ft acc shed in industrial development area, Block-B, Autonager, covered by s no-20/ part of Chinagantyada Village, within the limits of the SRO Visakhapatnam (presently in the limits of SRO, Pedagantyada) and greater Visakhapatnam Municipal corporation. Extension of hypothecation charge on entire fixed assets of the company mainly comprising of plant, machinery, furniture, fixtures, cranes, vehicles, tools and accessories, etc both present and future.
Date of Modification	26.12.2012
Particulars of the present modification	By this Modification the overall limit modified to Rs.156.300 Millions. By this modification the entire securities given earlier will remain secured in favour of Axis Bank Limited.

CONTINGENT LIABILITIES:

Particulars	31.03.2012	31.03.2011
	(Rs. in Millions)
Claims against the Company not acknowledged as debts	11.020	8.211
Guarantees (against which necessary collaterals have been provided by the Company)	10.193	9.121
Liabilities: (i) Claims against the Company not acknowledged as debts comprise of (a) Sales Tax Demand under the CST Act amounting to Rs. 0.554 Million (previous year Rs 0.554 Million) being disputed and matter pending with Hon'ble AP Sales Tax Appellate Tribunal, (b) VAT Demand under the APVAT Act amounting to Rs. 1.021 Millions (previous year Rs. 1.021 Millions) being disputed and matter pending with Hon'ble AP Sales Tax Appellate Tribunal, (c) Tax demanded under Income Tax Act, 1961 for the Assessment Year 2007-08 amounting to Rs. 6.636 Millions (previous year Rs. 6.636 Millions) being disputed and matter pending before the Learned CIT (Appeals), and (d) Tax demanded under Income Tax Act, 1961 for the Assessment Year 2009-10 amounting to Rs. 2.809 Millions (previous year Rs. Nil Millions) being disputed and matter pending before the Learned CIT (Appeals)

FIXED ASSETS:

Land

Office Building

Factory and Admin Building

Plant and Machinery

Office Equipment

Data Processing Equipment

Furniture and Fixture

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] 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. 58.45
UK Pound	1	Rs. 91.60
Euro	1	Rs. 77.91

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.