MIRA INFORM REPORT

Report Date :

07.10.2013

IDENTIFICATION DETAILS

Name :	SUMA SPRINGS PRIVATE LIMITED
Registered Office :	Plot No. 224 – B, Bommasandra Industrial Area, Bommasandra, Bangalore – 560099, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	08.01.1992
Com. Reg. No.:	08-012699
Capital Investment / Paid-up Capital :	Rs. 3.152 Millions
CIN No.: [Company Identification No.]	U29246KA1992PTC012699
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Springs.
No. of Employees :	135 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (35)

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

Maximum Credit Limit :	USD 194000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The management of the company has failed to file its financial with the Government Department for the year 2012. As per previous year’s record, the company is found normal for any business dealings. Trade relations are fair. Business is active. Payments terms are unknown. The company can be considered for business dealings with slight 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 – 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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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. Satish Hari
Designation :	Director
Contact No.:	91-9449848186
Date :	03.10.2013

LOCATIONS

Registered Office / Factory 1:	Plot No. 224 – B, Bommasandra Industrial Area, Bommasandra, Bangalore – 560099, Karnataka, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	accounts@sumasprings.com
Factory 2 :	A-63, Anekal Taluk, Bommasandra Industrial Estate, Bommasandra Industrial Area, Bangalore, - 560099, India
Tel. No.:	91-80-27833104
Factory 3 :	Located At : Pondicherry, India

DIRECTORS

As on 30.09.2011

Name :

Mrs. Sumitra Hari

Designation :

Whole-time Director

Address :

802, 7^th, Main, 1^st Cross, Hal II Stage, Indiranagar, Bangalore – 560008, Karnataka, India

Date of Birth/Age :

07.06.1950

Date of Appointment :

03.02.1992

DIN No.:

01608993

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	U29246KA1992PTC012699	SUMA SPRINGS PRIVATE LIMITED	Whole-time director	03-02-92	03-02-92	-	Active	NO
2	U74210KA1980PTC003728	NATS ENGINEERING COMPANY PRIVATE LIMITED	Director	01-09-05	01-09-05	-	Active	NO

Name :

Mr. Satish Babu Hari

Designation :

Managing Director

Address :

802, 7^th, Main, 1^st Cross, Hal II Stage, Indiranagar, Bangalore – 560008, Karnataka, India

Date of Birth/Age :

05.08.1971

Date of Appointment :

28.07.2000

DIN No.:

01868652

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	U29246KA1992PTC012699	SUMA SPRINGS PRIVATE LIMITED	Managing director	28-07-00	28-07-00	-	Active	NO
2	U74210KA1980PTC003728	NATS ENGINEERING COMPANY PRIVATE LIMITED	Director	01-09-05	01-09-05	-	Active	NO
3	U45205KA2011PTC057882	SUNLAND ESTATES PRIVATE LIMITED	Director	28-03-11	28-03-11	-	Active	NO
4	U28113KA2012PTC065137	MASSELIN SUMA SPRINGS INDIA PRIVATE LIMITED	Director	01-08-12	01-08-12	-	Active	NO
5	U45203KA2012PTC066959	SUNLAND VENTURES INDIA PRIVATE LIMITED	Director	30-11-12	30-11-12	-	Active	NO

Name :

Mr. Prashanth Hari

Designation :

Whole-time Director

Address :

802, 7^th, Main, 1^st Cross, Hal II Stage, Indiranagar, Bangalore – 560008, Karnataka, India

Date of Birth/Age :

18.08.1977

Date of Appointment :

01.11.2005

DIN No.:

01936343

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	U29246KA1992PTC012699	SUMA SPRINGS PRIVATE LIMITED	Whole-time director	01-11-05	01-11-05	-	Active	NO
2	U28113KA2012PTC065137	MASSELIN SUMA SPRINGS INDIA PRIVATE LIMITED	Director	01-08-12	01-08-12	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Satis Babu Hari	12035
Asha Rani	5
Thubalunta Dhanapati	5
Sumitra Hari	9920
Prashanth Hari	9560
Total	31525

As on 30.09.2011

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 of Springs.

Products :

ITC Code	Product Description
7320	Springs

Imports :

Products :

Raw Material

Countries :

China

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Customers :

End users

No. of Employees :

135 (Approximately)

Bankers :

• State Bank of Mysore, SME City Credit, No.8/6, 2^nd Floor, Ranga Rao Road, Shankarpuram, Bangalore – 560004, Karnataka, India
• ICICI Bank Limited
• Vijaya Bank, Bangalore
• State Bank of India, Bangalore

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Cash Credit Loan-SBM (*)	15.161	15.162
Term Loan· SBM (**)	13.070	14.079
Car Loan – ICICI Bank	0.980	2.110
Total	29.211	31.351

NOTE :

(*) Cash Credit Loan is secured by way of hypothecation of Inventions, Receivable and other current assets of the Bangalore unit of the Company

(**) Term Loan is Secured by way of First Charge on Fixed Assets of the Company and is also guaranteed by the Directors of the Company

Banking Relations :	--
Auditors :
Name :	Murali and Venkat Chartered Accountant
Address :	# 15, 1^st Floor, Church Road, Basavanagudi, Bangalore – 560004, Karnataka, India
PAN No.:	AAIPV2124N
Associates/Subsidiaries :	Hari Industries

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
35000	Equity Shares	Rs.100/- each	Rs. 3.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
31525	Equity Shares	Rs.100/- each	Rs. 3.152 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		3.152	3.152	1.252
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		45.396	36.779	30.869
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		48.548	39.931	32.121
LOAN FUNDS
1] Secured Loans		29.211	31.351	19.711
2] Unsecured Loans		0.549	0.549	1.216
TOTAL BORROWING		29.760	31.900	20.927
DEFERRED TAX LIABILITIES		3.233	3.225	2.414
TOTAL		81.541	75.056	55.462
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		44.837	43.856	24.182
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		7.657	7.656	7.811
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.312	4.406	7.711
	Sundry Debtors	48.965	38.888	22.276
	Cash & Bank Balances	18.074	8.030	3.649
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	6.638	4.828	10.606
Total Current Assets		78.989	56.152	44.242
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	43.957	28.038	14.907
	Other Current Liabilities	0.950	2.448	4.639
	Provisions	5.035	2.122	1.227
Total Current Liabilities		49.942	32.608	20.773
Net Current Assets		29.047	23.544	23.469
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		81.541	75.056	55.462

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income
		Other Income
		TOTAL	191.264	136.159	104.179
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	177.593	127.311	98.677
	PROFIT BEFORE TAX		13.671	8.848	5.502
Less	TAX		5.046	2.128	1.238
	PROFIT AFTER TAX		8.625	6.720	4.264
	Earnings Per Share (Rs.)		274.00	213.00	135.00

Particulars	31.03.2013	31.03.2012
Sales Turnover (Approximately)	240.000	210.000

Expected Sales (2013-2014): Rs. 280.000 Millions

The above information has been parted by Mr. Satish Hari

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.51	4.93	4.09
Return on Total Assets (PBT/Total Assets}	(%)	11.04	8.85	8.04
Return on Investment (ROI) (PBT/Networth)		0.28	0.22	0.17
Debt Equity Ratio (Total Debt /Networth)		0.61	0.80	0.65
Current Ratio (Current Asset/Current Liability)		1.58	1.52	2.13

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	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	No
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:

The registered office address of the company has been shifted from C 34, Bommasandra Industrial Estate, Bommasandra, Bangalore – 560099, Karnataka, India, to present address w.e.f. 12.06.2009

UNSECURED LOAN:

(Rs. In Millions)

Particulars	As on 31.03.2011	As on 31.03.2010
Bezel Springs Private Limited – H.P	0.529	0.529
Loans from Director	0.020	0.020
Total	0.549	0.549

INDEX CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10194620	08/12/2009	14,000,000.00	STATE BANK OF MYSORE	SME CITY CREDIT CENTRE, NO. 8/6, 2ND FLOOR, RANGA RAO ROAD, SHANKARPURAM, BANGALORE, Karnataka - 560004, INDIA	A75593061
2	80016052	27/02/2009 *	45,000,000.00	STATE BANK OF MYSORE	SMECC SHANKERPURM, NO 8/6 2 ND FLOOR RANGARAO ROAD, BANGALORE, Karnataka - 560004, INDIA	A58044702

* Date of charge modification

FIXED ASSETES:

• Goodwill

• Land
• Factory Building
• Plant and Machinery
• Motor Vehicles
• Furniture and Fixture
• Electrical Fittings
• Office Equipments
• Computers
• Printer

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. 55.04
UK Pound	1	Rs. 83.61
Euro	1	Rs. 70.68

INFORMATION DETAILS

Report Prepared by :

ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		35

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.