MIRA INFORM REPORT

Report Date :

07.08.2014

IDENTIFICATION DETAILS

Name :	GP SPIRA DUCT PRIVATE LIMITED (w.e.f.14.07.2008)
Formerly Known As :	GP SPIRO DUCT PRIVATE LIMITED
Registered Office :	D- 94, Phase – I, Road No. 16, IDA, Jeedimetla, Hyderabad – 500055, Andhra Pradesh, Telangana
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	29.09.2004
Com. Reg. No.:	01-044294
Capital Investment / Paid-up Capital :	Rs.7.806 Million
CIN No.: [Company Identification No.]	U27203TG2004PTC044294
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Spiral ducts, Duct fittings, Spiral flat oval ducting.
No. of Employees :	50 (Approximately)

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 160000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. General financial position of the company seems to be sound. Profitability of the company is fair. Traded relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual trade terms and condition.

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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Narandra
Designation :	Director
Contact No.:	91-9948034000
Date :	01.08.2014

LOCATIONS

Registered Office / Factory:	D- 94, Phase – I, Road No. 16, IDA, Jeedimetla, Hyderabad – 500055, Andhra Pradesh, Telangana, India
Tel. No.:	91-40-23194218 / 23195084
Mobile No.:	91-9948034000 (Mr. Narandra)
Fax No.:	91-040-23194218
E-Mail :	info@gpspira.com gprao_associates@sify.com
Website :	www.gpspira.com

DIRECTORS

As on 26.09.2013

Name :	Gadi Ramdevi
Designation :	Director
Address :	Flat No.101, Alphine, Rajbhavan Road, Hyderabad – 500082, Andhra Pradesh, India
Date of Birth/Age :	14.07.0972
Date of Appointment :	15.12.2004
DIN No.:	00886302
Name :	J. Narendrakumar Reddy
Designation :	Director
Address :	Flat No. 106, Sri Sadguru Towers, A.S. Raju nagar Colony, Hyderabad – 500072, Andhra Pradesh, India
Date of Birth/Age :	05.05.1967
Date of Appointment :	29.09.2004
Name :	G. Duggi Reddy
Designation :	Director
Address :	Flat No.102, Shivalik Apartment, GH – 7, Sector 10A, Gurgaon – 122001, Haryana, India
Date of Appointment :	27.12.2007
Name :	Subbareddy Gudibadi
Designation :	Director
Address :	Plot No.4, Sri Manvitha K.C. Reddy Enclave, Hyderabad – 500090, Andhra Pradesh, India
Date of Appointment :	01.02.2013

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.09.2013

Names of Shareholders	No. of Shares
J. Narendra kumar Reddy	5000
G. Sudhakar Reddy	85000
A. Butchi Reddy	2500
G.C. Sekhar	110000
G. Rama Devi	62500
G. Subba Reddy	25000
M. Subba Reddy	71000
V. Lalitha	150100
G.D. Reddy	20000
V. Subba Reddy	212600
J. Radhika Reddy	22000
G. Sivamma	14900
Total	780600

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 Spiral ducts, Duct fittings, Spiral flat oval ducting.
Products :	· Round Spiral Ducts · Duct Fittings · Spiral Flat Oval Ducting · Plan Flat Oval Ducting · Rectangular Ducting · Textile Ducting · Fabric Ducting · Pre-Insulated Double-Walled Spiral Duct Systems · Jointing System · Supporting / Hanging System
Terms :
Selling :	Depend
Purchasing :	Depend

GENERAL INFORMATION

Suppliers :

Jindal Steel

Customers :

· Blue Star

· Voltas

No. of Employees :

50 (Approximately)

Bankers :

· State Bank of India (Lead Bank), Commercia Branch, Bank Street Koti, Hyderabad – 500095, Andhra Pradesh, India

· Andhra Bank, HMT Industrial Estate Branch, Narsapur Road, Hyderabad – 500054, Andhra Pradesh, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWING
Term Loans
From HDFC Bank	0.113	0.205
(Secured by Vehicles purchased with respective loans from Andhra Bank)
Term Loan 2	0.041	0.162
Term Loan 3	3.435	3.773
Term Loan 4	3.295	4.310
Loan from Bank	5.496	4.592
(Secured by new MAchinery purchased out of respective term loan)
From APSFC	4.042	5.241
(Secured by new Factory Building at D-114)
SHORT TERM BORROWING
Loans repayable on demand
From Andhra Bank	9.393	6.917
(Secured by Hypothecation of stocks and Book Debts)
Total	25.815	25.200

Banking Relations :	---
Auditors :
Name :	G P Rao and Associates Chartered Accountant
Address :	6-3-662, Flat No.1, Sri Sai Shakthi Apartment, Jafar Ali Bagh, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India
PAN No.:	ADSPG4641G

CAPITAL STRUCTURE

After 26.09.2013

Authorised Capital : 10.000 Million

Issued, Subscribed & Paid-up Capital : 9.146 Million

As on 26.09.2013

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
780600	Equity Shares	Rs.10/- each	Rs. 7.806 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	7.806	7.481	7.261
(b) Reserves & Surplus	33.085	25.925	18.180
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.600
Total Shareholders’ Funds (1) + (2)	40.891	33.406	26.041
(3) Non-Current Liabilities
(a) long-term borrowings	27.889	29.436	24.419
(b) Deferred tax liabilities (Net)	1.900	2.081	1.607
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	2.103	2.029	2.530
Total Non-current Liabilities (3)	31.892	33.546	28.556
(4) Current Liabilities
(a) Short term borrowings	9.393	6.917	7.728
(b) Trade payables	29.801	20.104	23.087
(c) Other current liabilities	4.714	5.788	4.011
(d) Short-term provisions	0.991	0.708	2.129
Total Current Liabilities (4)	44.899	33.517	36.955
TOTAL	117.682	100.469	91.552
II. ASSETS
(1) Non-current assets
(a) Fixed Assets	0.000	0.000	0.000
(i) Tangible assets	44.429	46.009	35.590
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	9.208
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	5.130	3.500	3.500
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	3.109	0.803	0.725
Total Non-Current Assets	52.668	50.312	49.023
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	17.694	10.472	9.306
(c) Trade receivables	41.352	34.538	27.928
(d) Cash and cash equivalents	1.362	0.535	1.676
(e) Short-term loans and advances	1.177	1.181	0.334
(f) Other current assets	3.429	3.431	3.285
Total Current Assets	65.014	50.157	42.529
TOTAL	117.682	100.469	91.552

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	141.366	129.413	125.493
		Other Income
		TOTAL	141.366	129.413	125.493
Less	TOTAL EXPENSES		130.634	118.656	112.835
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		10.732	10.757	12.658
Less/ Add	DEPRECIATION/ AMORTISATION		2.950	2.879	2.948
	PROFIT BEFORE TAX		7.782	7.878	9.710
Less	TAX		1.922	2.503	3.081
	PROFIT AFTER TAX		5.860	5.375	6.629
Less	APPROPRIATIONS
		Transfer to General Reserve	0.500	0.500	0.500
	BALANCE CARRIED TO THE B/S		26.690	21.330	16.465
	Earnings Per Share (Rs.)		7.50	NA	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	4.15	4.15	5.28
Net Profit Margin (PBT/Sales)	(%)	5.50	6.09	7.74
Return on Total Assets (PBT/Total Assets}	(%)	6.91	8.12	12.32
Return on Investment (ROI) (PBT/Networth)		0.19	0.24	0.37
Debt Equity Ratio (Total Debt /Networth)		0.91	1.09	1.23
Current Ratio (Current Asset/Current Liability)		1.45	1.50	1.15

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	7.261	7.481	7.806
Reserves & Surplus	18.180	25.925	33.085
Share Application money pending allotment	0.600	0.000	0.000
Net worth	26.041	33.406	40.891
long-term borrowings	24.419	29.436	27.889
Short term borrowings	7.728	6.917	9.393
Total borrowings	32.147	36.353	37.282
Debt/Equity ratio	1.264	1.088	0.912

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	125.493	129.413	141.366
	0.000	3.124	9.236

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	125.493	129.413	141.366
Profit	6.629	5.375	5.860
	5.28%	4.15%	4.15%

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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
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 LOAN

(Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWING
Loans and advances from related parties	9.096	9.516
Other loans and advances
Loan from Bank	2.370	1.636
Total	11.466	11.152

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10442008	12/08/2013	6,100,000.00	ANDHRA PRADESH STATE FINANCIAL CORPORATION	CHIRAG ALI LANE, ABIDS, HYDERABAD, Andhra Pradesh  - 500001, INDIA	B81670838
2	10438800	28/06/2013	540,000,000.00	State Bank of India (Lead Bank)	Commercia Branch, Bank Street, Koti, Hyderabad, A  ndhra Pradesh - 500095, INDIA	B80381197
3	10433203	24/12/2013 *	19,500,000.00	ANDHRA BANK	HMT INDUSTRIAL ESTATE BRANCH, NARSAPUR ROAD, HYDE  RABAD, Andhra Pradesh - 500054, INDIA	B94402682
4	10379986	11/10/2012	1,547,000.00	ANDHRA PRADESH STATE FINANCIAL CORPORATION	5-9-194, CHIRAG ALI LANE, ABIDS, HYDERABAD, Andhra  Pradesh - 500001, INDIA	B59481580
5	10294466	18/06/2011	39,000,000.00	ANDHRA PRADESH STATE FINANCIAL CORPORATION	22-95, REDDY COMPLEX,, LIMGAMPALLY CIRCLE, RAMACH  ANDRAPURAM, HYDERABAD, Andhra Pradesh - 502032, IN  DIA	B15931116
6	10280419	30/03/2011	6,000,000.00	ANDHRA PRADESH STATE FINANCIAL CORPORATION	5-9-194, CHIRAG ALI LANE, ABIDS,, HYDERABAD, Andhr  a Pradesh - 500001, INDIA	B10395564
7	10205107	15/02/2010	8,000,000.00	ANDHRA BANK	HMT INDUSTRIAL ESTATE BRANCH, NARSAPUR ROAD, HYDE  RABAD, Andhra Pradesh - 500054, INDIA	A80408214
8	10205108	15/02/2010	8,000,000.00	ANDHRA BANK	HMT INDUSTRIAL ESTATE BRANCH, NARSAPUR ROAD, HYDE  RABAD, Andhra Pradesh - 500054, INDIA	A80430440
9	90259230	20/04/2011 *	14,000,000.00	ANDHRA BANK	H.M.T .INDUSTIRAL ESTATE BR, Jeedimetla Road,, Hy  derabad, Andhra Pradesh - 500054, INDIA	B11905676

* Date of charge modification

FIXED ASSETS

· Land Building Plant and Machinery

· Furniture and Fixture

· Vehicles

· Office equipment

· Computer and Accessories

· Goodwill

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.61.33
UK Pound	1	Rs.103.43
Euro	1	Rs.81.96

INFORMATION DETAILS

Information Gathered by :	PDT
Analysis Done by :	KAR
Report Prepared by :	ARI

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	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		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.