MIRA INFORM REPORT

Report Date :

06.11.2013

IDENTIFICATION DETAILS

Name :	SRI SUGUNA MACHINE WORKS PRIVATE LIMITED
Registered Office :	S F No. 265/1, Kalapatti Road, Coimbatore – 641035, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	09.04.1985
Com. Reg. No.:	18-001594
Capital Investment / Paid-up Capital :	Rs. 1.289 Millions
CIN No.: [Company Identification No.]	U02911TZ1985PTC001594
TAN No.: [Tax Deduction & Collection Account No.]	CMBS05686C
PAN No.: [Permanent Account No.]	AACCS7185D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Pumps and Motors.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 467000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Financial position of the company appears to be above average. Trade relation reported to be fair. Business is active. Payment terms are reported as usually correct. The company can be considered normal for business dealing 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

INDIAN ECONOMIC OVERVIEW

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the trade deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

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 DECLINED BY

Name :	Mr. D.V. Raghavan
Designation :	Manager
Contact No.:	91-422-2223512
Date :	31.10.2013

LOCATIONS

Registered Office :	S F No. 265/1, Kalapatti Road, Coimbatore – 641035, Tamilnadu, India
Tel. No. :	91-422-3295102/ 2223512
Fax No. :	91-422-2000861/ 2211097
E-Mail :	suguln@airtelmail.in
Corporate Office :	707, Avinashi Road, Coimbatore - 641018, Tamilnadu, India

DIRECTORS

As on 29.09.2012

Name :

Mr. Ranganathan Arun

Designation :

Director

Address :

14, Bharathipark, Cross Road, No.6, Coimbatore – 641011, Tamilnadu, India

Date of Birth/Age :

28.04.1974

Date of Appointment :

29.09.2010

DIN No. :

02858479

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	U02911TZ1985PTC001594	SRI SUGUNA MACHINE WORKS PRIVATE LIMITED	Director	29/09/2010	28/02/2010	-	Active	NO
2	U52399TZ2011PTC016828	GAJ RETAIL SERVICE PRIVATE LIMITED	Managing director	17/04/2011	08/03/2011	-	Active	NO

Name :

Mr. Lakshminarayanasamy Anish Kumar

Designation :

Director

Address :

707, Avanashi Road, Coimbatore – 641018, Tamilnadu, India

Date of Birth/Age :

14.06.1989

Date of Appointment :

30.08.2010

DIN No. :

03123891

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	U02911TZ1985PTC001594	SRI SUGUNA MACHINE WORKS PRIVATE LIMITED	Director	30/08/2010	30/08/2010	-	Active	NO
2	U29100TZ2013PTC019166	SUGUNA SHATAL EQUIPMENTS PRIVATE LIMITED	Director	13/02/2013	13/02/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. D.V. Raghavan
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
R. Rajamani	21312
L. Suguna	37330
L. Archana	18226
L. Anishkumar	5277
Archana Trust, India	100
R. Shanthamani	1351
V. Lakshminarayanaswamy	44302
R. Arun	1000
Total	128898

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Pumps and Motors.

Products :

Item Code No. (ITC Code)	Product Description
84130000	Power Driver Pumps
732510000	CI Rough Castings

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· Small Industries Development Bank of India, 1055/7, Gowtham Centre, Avinashi Road, Coimbatore - 641018, Tamilnadu, India

State Bank of India, State Bank Road, Coimbatore - 641018, Tamilnadu, India

Facilities :

SECURED LOANS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loan From SIDBI (Secured by Fixed deposit of Rs. 6.700 Millions)	5.208	6.485
SHORT TERM BORROWINGS
Term Loan From SIDBI (Secured by Fixed deposit of Rs. 6.700 Millions)	1.352	0.000
Total	6.560	6.485

Banking Relations :	--
Auditors :
Name :	C N Viswanathan Chartered Accountants
Address :	GF-3, 39, Kalpavruksha, 11^th Street, Tatabad, Coimbatore – 641012, Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	AAZPV9078Q
Related Parties :	· Suguna Industries Archana Industries Sri Ellai Laxmi Monblocs Private Limited Anishkumar Spinning Mills Anish Agency Suguna Motors and Pumps

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
128898	Equity Shares	Rs.10/- each	Rs. 1.289 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	1.289	1.289
(b) Reserves & Surplus	115.367	103.343
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	116.656	104.632
(3) Non-Current Liabilities
(a) long-term borrowings	7.802	8.452
(b) Deferred tax liabilities (Net)	9.717	10.740
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	17.519	19.192
(4) Current Liabilities
(a) Short term borrowings	13.508	11.419
(b) Trade payables	64.319	38.816
(c) Other current liabilities	2.818	0.681
(d) Short-term provisions	15.990	11.574
Total Current Liabilities (4)	96.635	62.490
TOTAL	230.810	186.314
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	53.022	51.428
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.637	0.637
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	53.659	52.065
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	43.484	27.657
(c) Trade receivables	55.701	48.827
(d) Cash and cash equivalents	45.749	18.256
(e) Short-term loans and advances	17.662	12.271
(f) Other current assets	14.555	27.238
Total Current Assets	177.151	134.249
TOTAL	230.810	186.314

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		1.289
2] Share Application Money		0.000
3] Reserves & Surplus		95.521
4] (Accumulated Losses)		0.000
NETWORTH		96.810
LOAN FUNDS
1] Secured Loans		10.717
2] Unsecured Loans		12.665
TOTAL BORROWING		23.382
DEFERRED TAX LIABILITIES		9.552
TOTAL		129.744
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		49.222
Capital work-in-progress		0.000
INVESTMENT		0.637
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	30.019
	Sundry Debtors	55.440
	Cash & Bank Balances	22.574
	Other Current Assets	32.298
	Loans & Advances	6.504
Total Current Assets		146.835
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000
	Other Current Liabilities	59.668
	Provisions	7.282
Total Current Liabilities		66.950
Net Current Assets		79.885
MISCELLANEOUS EXPENSES		0.000
TOTAL		129.744

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	279.943	287.171	230.027
		Other Income	12.370	10.066	31.278
		TOTAL (A)	292.313	297.237	261.305
Less	EXPENSES
		Cost of materials consumed	183.569	170.348
		Employee benefit expense	11.698	10.697
		Other expenses	91.027	99.547
		Changes in inventories of finished goods and work-in-process	(16.608)	(3.017)
		TOTAL (B)	269.686	277.575	233.505
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		22.627	19.662	27.800
Less	FINANCIAL EXPENSES (D)		1.260	1.097	1.244
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		21.367	18.565	26.556
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.418	5.940	6.830
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		14.949	12.625	19.726
Less	TAX (H)		2.933	4.813	2.665
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		12.016	7.812	17.061
	EARNINGS IN FOREIGN CURRENCY		44.4096	36.964	17.242
	Earnings / (Loss) Per Share (Rs.)		93.22	60.61	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.11	2.63	6.53
Net Profit Margin (PBT/Sales)	(%)	5.34	4.40	8.58
Return on Total Assets (PBT/Total Assets}	(%)	6.49	6.80	10.06
Return on Investment (ROI) (PBT/Networth)		0.13	0.12	0.20
Debt Equity Ratio (Total Debt/Networth)		0.18	0.19	0.24
Current Ratio (Current Asset/Current Liability)		1.83	2.15	2.19

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	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	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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10335210	03/02/2012	6,700,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	1055/7, GOWTHAM CENTRE, AVINASHI ROAD, COIMBATORE - 641018, TAMILNADU, INDIA	B31972359

UNSECURED LOANS

PARTICULAR	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Long term Trade Deposits (Dealership Deposit)	2.594	1.967
SHORT TERM BORROWINGS
Loans and Advances from Related Parties Loans from Directors and Shareholders	12.156	11.419
Total	14.750	13.386

BUSINESS

The company has made good progress in trie business during the year inspite of tough market conditions prevailing throughout the country particularly in Motors and Pump Industry. The company could achieve a turnover of Rs.279.900 Millions during the year as against Rs.287.200 Millions in the previous year. The company was able to make a cash profit of Rs. 21.368 Millions during the year as compared to previous year cash profit of Rs. 18.565 Millions.

FIXED ASSETS

· Land

Buildings

Plant and Machinery

Electrical Machinery

Furniture and Fixtures

Computer

Generator

Testing Equipments

Vehicles

High Bay Sand Plant

Cooling System

Office Equipment

Pattern and Other Assets

Leased Assets Vehicles

Wind Mill

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.61.79
UK Pound	1	Rs.98.66
Euro	1	Rs.83.42

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	MRI

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	6
--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	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		46

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.