MIRA INFORM REPORT

Report Date :

14.08.2014

IDENTIFICATION DETAILS

Name :	SIBRAMA NEWAGE
Registered Office :	B-60, Sector 80, Phase II, Gautam Budh Nagar, Noida-201305, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	24.06.1994
Capital Investment / Paid-up Capital :	Rs.148.612 (As on 31.03.2013)
IEC No.:	4101000042
TAN No.: [Tax Deduction & Collection Account No.]	09966000801
PAN No.: [Permanent Account No.]	AAEFS5453M
Legal Form :	Partnership Concern with an unlimited liability of the partners
Line of Business :	Manufacturer and Exporter of Leather Straps for Watches and Leather Products and Leather Accessories.
No. of Employees :	350 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 5900000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established partnership concern having satisfactory track record. Trade relations are fair. Business is active. Payment terms reported to be usually correct. The concern can be considered for business dealing at usual trade term and condition. Balance sheet for the year 2014 is not available, only profit and loss is available.

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. Rajeev Bhardwaj
Designation :	Accountant Manager
Contact No.:	91-120-4660600
Date :	04.08.2014

LOCATIONS

Registered Office / Factory1 :	B-60 / 61, Sector 80, Phase II, Gautam Budh Nagar, Noida-201305, Uttar Pradesh, India
Tel. No.:	91-120-4660600 / 01 / 02
E-Mail :	sibrama@sibrama.com rajiv.b@sibram.com
Area :	1000 sq. mt.
Location :	Owned
New Factory Under Construction:	B-61, Sector 80, Phase II, Gautam Budh Nagar, Noida-201305, Uttar Pradesh, India

PARTNERS

Name :	Mr. O.P. Marwah
Designation :	Partner
Address :	B-6/48, Safdarjung Enclave, New Delhi-110029, India
Name :	Mr. Rajeev Marwah
Designation :	Partner
Address :	B-6/48, Safdarjung Enclave, New Delhi-110029, India
Name :	Ms. Sibra Sarl
Designation :	Partner

KEY EXECUTIVES

Name :	Mr. Rajeev Bhardwaj
Designation :	Accountant Manager

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Leather Straps for Watches and Leather Products and Leather Accessories.
Product	· Leather Bags · Ladies Handbags · Travel Bags · Leather Accessories · Leather Cases · Leather Wallets · Leather Purses · Leather Belts · Leather Pouches · Watch Straps · Corporate and Promotional Gifts
Exports :
Products :	· Leather Straps for Watches · Leather Products
Countries :	· U. K. · Switzerland · France · U.S.A.
Imports :
Products :	Raw Material
Countries :	· Italy · France · South Africa · Hong Kong · Japan
Terms :
Selling :	Cash and Advance Payment
Purchasing :	Advance Payment

GENERAL INFORMATION

Customers :	Wholesalers and Retailers
No. of Employees :	350 (Approximately)
Bankers :	Bank of India, New Delhi, India
Facilities :	P.C.L. : Rs. 120.000 Millions (From Bank of India)

Banking Relations :	--
Auditors :
Name :	Sharma Goyel and Company Chartered Accountant

CAPITAL STRUCTURE

As on 31.03.2013

PARTNERS CAPITAL

Particular	Rs. In Millions	Rs. In Millions
Ms. Sibra Sarl
Opening Balance	69.506
Add: Profit for the year	6.800
Less: Drawings	(2.000)
Total	A	74.306
Mr. O.P. Marwah
Opening Balance	35.253
Add: Profit for the year	6.400
Less: Drawings	(4.500)
Total	B	37.153
Mr. Rajeev Marwah
Opening Balance	35.253
Add: Profit for the year	6.400
Less: Drawings	(4.500)
Total	C	37.153
Total	A+B+C	148.612

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2013	31.03.2012
SHAREHOLDERS FUNDS
1] Partners Capital		148.612	140.013
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		148.612	140.013
LOAN FUNDS
1] Secured Loans		121.644	89.912
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		121.644	89.912
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		270.256	229.925
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		89.315	84.309
Capital work-in-progress		1.446	1.407
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	97.040	83.005
	Sundry Debtors	52.160	47.386
	Cash & Bank Balances	8.493	0.356
	Other Current Assets	39.784	24.785
	Fixed Deposit, Loans & Advances	43.650	34.400
Total Current Assets		241.127	189.932
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	24.211	20.137
	Other Current Liabilities	15.387	12.320
	Provisions	22.034	13.266
Total Current Liabilities		61.632	45.723
Net Current Assets		179.495	144.209
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		270.256	229.925

PROVISIONAL PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	319.888	271.964	233.108
		Other Income	37.965	21.157	18.540
		TOTAL	357.853	293.121	251.648
Less	EXPENSES
		Cost of Goods Sold	148.580	133.020	80.702
		Administrative Expenses	0.000	28.836	22.613
		Manufacturing Expenses	0.000	76.830	86.435
		Selling and Distribution Expenses	0.000	1.342	1.438
		Bank Charges and Interest	0.000	11.256	8.855
		Freight and Packing Changes (Outward)	0.000	1.606	0.000
		Written Off	0.000	0.077	0.000
		Wages and Allowances	22.442	0.000	0.000
		Consumer Store and Spares	4.328	0.000	0.000
		Water and Electricity Expenses	4.388	0.000	0.000
		Clearing and Forwarding Charges	1.780	0.000	0.000
		Customs Establishment	0.241	0.000	0.000
		Factory Rent	1.483	0.000	0.000
		Freight and Changes Inwards	4.414	0.000	0.000
		Generator Running and Maintenance	1.165	0.000	0.000
		Overtime (Worker)	10.774	0.000	0.000
		Processing Charges	35.715	0.000	0.000
		Production Incentive	0.346	0.000	0.000
		Administrative Expenses	37.447	0.000	0.000
		Bank Charges and Interest	11.209	0.000	0.000
		Selling and Distributing Expenses	1.202	0.000	0.000
		Income tax Prior Period	0.019	0.000	0.000
		Penalty and Fine	0.025	0.000	0.040
		Premium on Lease Hold Land	0.058	0.058	0.057
		TOTAL	285.616	253.025	200.14
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		72.238	40.096	51.508
Less/ Add	DEPRECIATION/ AMORTISATION		12.908	11.720	9.577
	NET PROFIT		59.329	28.376	41.931

The above information has been parted by Mr. Raj Bharadwaj (Accounts Manager)

Note : Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	16.57	9.68	16.66
Net Profit Margin (PBT/Sales)	(%)	18.54	10.43	17.99
Return on Total Assets (PBT/Total Assets}	(%)	NA	8.59	17.79
Return on Investment (ROI) (PBT/Networth)		NA	0.19	0.30
Debt Equity Ratio (Total Debt /Networth)		NA	0.81	0.64
Current Ratio (Current Asset/Current Liability)		NA	3.91	4.15

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	140.013	148.612
Reserves & Surplus	0.000	0.000
Net worth	140.013	148.612
Secured Loans	89.912	121.644
Unsecured Loans	0.000	0.000
Total borrowings	89.912	121.644
Debt/Equity ratio	0.642	0.819

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	233.108	271.964	319.888
		16.669	17.621

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	233.108	271.964	319.888
Profit	41.931	28.376	59.329
	17.99%	10.43%	18.55%

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
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	No
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	No
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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

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] 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. 61.25
UK Pound	1	Rs. 103.02
Euro	1	Rs. 81.90

INFORMATION DETAILS

Information Gathered by :	SUM
Analysis Done by :	SVA
Report Prepared by :	ASH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.