MIRA INFORM REPORT

Report Date :

06.03.2012

IDENTIFICATION DETAILS

Name :	PRAPURNA IMPEX LIMITED (w.e.f. 29.06.2007)
Formerly Known As :	PRAPURNA INFO TECHNOLOGIES LIMITED
Registered Office :	2-159/9, Jeedimetl (Medchalrd), Secunderabad – 500055, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	05.07.2000
Com. Reg. No.:	01-034855
Capital Investment / Paid-up Capital :	Rs.4.499 Millions
CIN No.: [Company Identification No.]	U72200AP200PLC034855
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Providing Software Consultancy Services.
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 30000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The profitability of the company appears to be low. The external borrowing appears to be huge. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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.

LOCATIONS

Registered Office :	2-159/9, Jeedimetl (Medchalrd), Secunderabad – 500055, Andhra Pradesh, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	kkr9@yahoo.com

DIRECTORS

(AS ON 29.09.2012)

Name :	Mr. Krishnam Raju Kanumuri
Designation :	Director
Address :	2-159/9 Prapurna Enclave, Jeedimetla, Medchal Road, Secunderabad – 500055, Andhra Pradesh, India
Date of Birth/Age :	24.04.1976
Date of Appointment :	05.07.2000
DIN No.:	01427121
Name :	Mrs. Sweta Kanumuri
Designation :	Director
Address :	2-159/9 Prapurna Enclave, Jeedimetla, Medchal Road, Secunderabad – 500055, Andhra Pradesh, India
Date of Birth/Age :	18.03.1980
Date of Appointment :	01.09.2004
DIN No.:	01625982
Name :	Mr. Rudraraju Ramakrishna
Designation :	Director
Address :	8-2-332/1/A/1,2,3,4, 101 Vishnu Blue Lotus, Road No. 3, Banjara Hills, Hyderabad – 500033, Andhra Pradesh, India
Date of Birth/Age :	09.03.1973
Date of Appointment :	26.07.2007
DIN No.:	01656369
Name :	Mrs. Padmavathi Rudraraju
Designation :	Director
Address :	8-2-332/1/A/1,2,3,4, 101 Vishnu Blue Lotus, Road No. 3, Banjara Hills, Hyderabad – 500033, Andhra Pradesh, India
Date of Birth/Age :	20.11.1974
Date of Appointment :	26.07.2007
DIN No.:	01656423

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 29.09.2012)

Names of Shareholders	No. of Shares
Rama Raju Kanumuri	40000
Krishnam Raju Kanumuri	114000
Sweta Kanumuri	8200
Prapurna Holding (India) Private Limited, India	107700
Ramakrishna Rudraraju	90000
Padmavathi Rudraraju	90000
Total	449900

(AS ON 30.09.2012)

Equity Shares Break – up

Category	Percentage
Bodies corporate	23.94
Directors or relatives of directors	76.06
Total	100.00

BUSINESS DETAILS

Line of Business :

Providing Software Consultancy Services.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Andhra Bank

Near Jubilee Hills Check Post, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term Loans - Loans from Kotak Mahindra Prime Limited (Secured by assets acquired against loan amount)	0.718	1.080
From Banks Andhra Bank – Cash Credit Limit Rs.20.000 Millions (Secured by hypothecation of stock, receivable, fixed assets of the directors and personal guarantee of director)	22.648	14.936
Total	23.366	16.016

Banking Relations :	--
Auditors :
Name :	V. G. Rao and Associates Chartered Accountant
Address :	306, 3^rd Floor, Oasis Plaza, Tilak Road, Hyderabad – 500001, Andhra Pradesh, India
PAN No.:	AABFV3661M
Associates :	· Prapurna Properties Private limited · Prapurna Holdings (India) Private Limited · Prapurna Infra Private Limited · Prapurna Trading Private Limited · Prapurna Interiors Private Limited

CAPITAL STRUCTURE

(AS ON 29.09.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
449900	Equity Shares	Rs.10/- each	Rs.4.499 Millions

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		4.499	4.499	4.499
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3.291	2.850	2.216
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		7.790	7.349	6.715
LOAN FUNDS
1] Secured Loans		23.366	16.016	12.175
2] Unsecured Loans		18.437	15.175	7.037
TOTAL BORROWING		41.803	31.191	19.212
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		49.593	38.540	25.927
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.437	1.887	0.752
Capital work-in-progress		0.000	0.000	0.169
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	73.012	57.853	51.640
	Sundry Debtors	9.670	3.156	1.663
	Cash & Bank Balances	1.294	1.606	0.991
	Other Current Assets	8.868	13.736	8.261
	Loans & Advances	0.576	1.062	0.000
Total Current Assets		93.420	77.413	62.555
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	2.300	2.500	0.000
	Other Current Liabilities	42.964	38.218	37.407
	Provisions	0.000	0.042	1.807
Total Current Liabilities		45.264	40.760	39.214
Net Current Assets		48.156	36.653	23.341
MISCELLANEOUS EXPENSES		0.000	0.000	1.665
TOTAL		49.593	38.540	25.927

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from Operations	110.427	92.751	35.608
		Other Income	2.769	1.894	1.743
		TOTAL (A)	113.196	94.645	37.351
Less	EXPENSES
		Purchases of Stock in Trade	100.403	76.196	36.689
		Changes in Inventories of stock in Trade	(15.159)	(6.213)	(17.475)
		Employees Benefits Expenses	3.897	3.865	0.000
		Others Expenses	18.936	15.912	15.800
		TOTAL (B)	108.077	89.760	35.014
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5.119	4.885	2.337
Less	FINANCIAL EXPENSES (D)		3.604	2.780	1.704
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.515	2.105	0.633
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.053	1.105	0.182
	PROFIT BEFORE TAX (E-F) (G)		0.462	1.000	0.451
Less	TAX (H)		0.021	0.366	0.155
	PROFIT AFTER TAX (G-H) (I)		0.441	0.634	0.296
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.849	2.215	1.919
	BALANCE CARRIED TO THE B/S		3.290	2.849	2.215
	Earnings Per Share (Rs.)		0.98	1.41	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.39	0.67	0.79
Net Profit Margin (PBT/Sales)	(%)	0.42	1.08	1.27
Return on Total Assets (PBT/Total Assets}	(%)	0.49	1.26	0.71
Return on Investment (ROI) (PBT/Networth)		0.06	0.14	0.07
Debt Equity Ratio (Total Debt/Networth)		5.37	4.24	4.27
Current Ratio (Current Asset/Current Liability)		2.06	1.90	1.60

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	No

UNSECURED LOANS

Particulars	31.03.2012	31.03.2011
	(Rs. In Millions)
Loans from Director	6.301	8.601
Loans from Relatives	0.936	0.136
Loans from Associated Companies	4.200	2.500
Loans from Others	7.000	3.938
Total	18.437	15.175

CONTINGENT LIABILITIES

Particulars	31.03.2012 (Rs. In Millions)
Bank Guarantees	3.500
L.C (40689.70 Euros)	2.781
Total	6.281

FIXED ASSETS:

· Office Equipment

· Computer Terminals

· Furniture and Fixtures

· Vehicles

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.54.65
UK Pound	1	Rs.82.66
Euro	1	Rs.71.21

INFORMATION DETAILS

Report Prepared by :

NIT

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	YES
--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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.