MIRA INFORM REPORT

Report Date :

05.12.2014

IDENTIFICATION DETAILS

Name :	PRASUNA VAMSIKRISHNA SPINNING MILLS PRIVATE LIMITED
Registered Office :	NH – 5, Ganapavaram (Post), Nadendla (Mandal), Guntur – 522619, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	11.02.2004
Com. Reg. No.:	01-042636
Capital Investment / Paid-up Capital :	Rs. 116.900 Millions
CIN No.: [Company Identification No.]	U18101AP2004PTC042636
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	HYDP03408G
PAN No.: [Permanent Account No.]	AADCP4505B
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer, Exporter and Importer of Cotton Yarn, Cotton Waste, Cotton Lint, Cotton Seed Etc.
No. of Employees :	35 (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 900000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. General financial position of the company seems to be sound and healthy. Profitability of the company is decent. Trade relations are fair. Business are active. Payment terms are reported to be usually correct. The company can be considered for business dealings 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 – 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

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term loan facilities = BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	August 2013

Rating Agency Name	ICRA
Rating	Short term fund based facilities = A3
Rating Explanation	Moderate degree of safety and very high credit risk.
Date	August 2013

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 (GENERAL DETAILS)

Name :	Mr. Mahendra
Designation :	Account Executive
Contact No.:	91-8647-259501
Date :	02.12.2014

LOCATIONS

Registered Office/ Factory :	NH – 5, Ganapavaram (Post), Nadendla (Mandal), Guntur – 522619, Andhra Pradesh, India
Tel. No.:	91-8647-259501/ 259694/ 95
Mobile No.:	91-9440801540 (Mr. Mahendra)
Fax No.:	91-8647-259502
E-Mail :	prasuna_vsm9@yahoo.co.in

DIRECTORS

AS ON 23.09.2013

Name :

Mr. Haribhau Kalahasti

Designation :

Managing Director

Address :

NA 4^th Lane, 3/9 Pandaripuram, Near, Jayamma Hospital, Chilakauripet – 522616, Guntur District, Andhra Pradesh, India

Date of Birth/Age :

09.08.1954

Date of Appointment :

11.02.2004

PAN No.:

ASYPK8107E

DIN No.:

01880153

Name :

Mr. Srinivas Pendyala

Designation :

Managing Director

Address :

3/9, 5^th Line Pandaripuram, Chilakaluripet, District Guntur – 522616, Andhra Pradesh, India

Date of Birth/Age :

01.04.1969

Date of Appointment :

05.05.2005

PAN No. :

ADIPS8683A

DIN No.:

01881020

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	U18101AP2004PTC042636	PRASUNA VAMSIKRISHNA SPINNING MILLS PRIVATE LIMITED	Managing director	05/05/2005	05/05/2005	-	Active	NO
2	U17200TN2012PTC083836	SRI VISHNU WEAVING PRIVATE LIMITED	Director	02/01/2012	02/01/2012	-	Active	NO

Name :

Ms. Lakshmi Rajyam Kalahasti

Designation :

Director

Address :

3-9, 5^th Line Pandaripuram, Chilakaluripet, District Guntur – 522616, Andhra Pradesh, India

Date of Birth/Age :

10.12.1961

Date of Appointment :

11.02.2004

DIN No. :

01808367

Name :

Mr. Muralikrishna Rao Penoyala

Designation :

Director

Address :

3/69, 1^st Street, Shanti Nagar, Sm, Nagar Post, Chennai – 600062, Tamilnadu, India

Date of Birth/Age :

15.07.1944

Date of Appointment :

11.02.2004

PAN No. :

AEWPM9492A

DIN No.:

01808390

Name :

Ms. Rathna Kumari Pendyala

Designation :

Director

Address :

33/69, 1^st Street, Shanti Nagar, Sm, Nagar Post, Chennai – 600062, Tamilnadu, India

Date of Birth/Age :

20.02.1955

Date of Appointment :

11.02.2004

PAN No. :

AJWPR2019P

DIN No.:

02467207

KEY EXECUTIVES

Name :	Mr. Mahendra
Designation :	Account Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 23.09.2013

Names of Shareholders	No. of Shares	Percentage of Holding
Haribhau Kalahasti	460700	39.41
Lakshmi Rajyam Kalahasti	23800	2.04
Muralikrishna Rao Pendyala	115500	9.88
Rathna Kumari Pendyala	115500	9.88
Srinivas Pendyala	353500	30.24
Haribhau Kalahasti (HUF)	100000	8.55
Total	1169000	100.00

As on 23.09.2013

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, Exporter and Importer of Cotton Yarn, Cotton Waste, Cotton Lint, Cotton Seed Etc.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Finished Goods
Countries :	Pakistan China Turkey
Imports :
Products :	Raw Material
Countries :	Germany Switzerland
Terms :
Selling :	Cash, L/C and Credit
Purchasing :	Cash, L/C and Credit

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

No. of Employees :

35 (Approximately)

Bankers :

Banker Name	State Bank of India
Branch Address	Commercial Branch, Kannavarithota, Guntur – 522004, Andhra Pradesh, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Rupee term loan from bank	67.800	127.900
SHORT TERM BORROWINGS
Working capital loans from banks	124.586	104.797
Total	192.386	232.697

Auditors :
Name :	Mastanaiah and Company Chartered Accountants
Address :	11/1, Arundelpet, Guntur, Andhra Pradesh, India
PAN No.:	AADFM5561H
Memberships :	--
Collaborators :	--
Enterprises which are controlled by Key Management Personnel :	Sri Buddhasagar Traders, Chilakaluripet Prasuna Vamsikrishna Cotton Ginning Mills, Chilakaluripet

CAPITAL STRUCTURE

As on 23.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1,200,000	Equity Shares	Rs.100/- each	Rs.120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,169,000	Equity Shares	Rs.100/- each	Rs. 116.900 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	116.900	116.900	116.900
(b) Reserves & Surplus	216.814	154.084	124.103
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	333.714	270.984	241.003
(3) Non-Current Liabilities
(a) long-term borrowings	108.400	157.600	211.300
(b) Deferred tax liabilities (Net)	63.649	60.208	56.512
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	2.554	1.997	1.723
Total Non-current Liabilities (3)	174.603	219.805	269.535
(4) Current Liabilities
(a) Short term borrowings	124.586	104.797	66.917
(b) Trade payables	4.881	9.968	7.597
(c) Other current liabilities	75.695	64.089	50.144
(d) Short-term provisions	29.456	26.312	6.807
Total Current Liabilities (4)	234.618	205.166	131.465
TOTAL	742.935	695.955	642.003
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	407.810	404.334	412.577
(ii) Intangible Assets	0.118	0.134	0.163
(iii) Capital work-in-progress	0.064	0.913	5.721
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.003	0.003	0.003
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	17.786	20.738	9.063
(e) Other Non-current assets	7.014	20.868	25.809
Total Non-Current Assets	432.795	446.990	453.336
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	223.143	178.459	125.551
(c) Trade receivables	20.663	16.305	19.156
(d) Cash and cash equivalents	5.422	4.189	2.294
(e) Short-term loans and advances	58.749	48.328	9.963
(f) Other current assets	2.163	1.684	31.703
Total Current Assets	310.140	248.965	188.667
TOTAL	742.935	695.955	642.003

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	666.832	584.490	526.376
		Other Income	4.617	2.033	1.758
		TOTAL (A)	671.449	586.523	528.134
Less	EXPENSES
		TOTAL (B)	515.599	480.649	450.533
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		155.850	105.874	77.601
Less	INTEREST (D)		25.347	29.448	37.516
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		130.503	76.426	40.085
Less/ Add	DEPRECIATION/ AMORTISATION (F)		28.644	27.534	27.018
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		101.859	48.892	13.067
Less	TAX (H)		39.130	18.912	(0.274)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		62.729	29.980	13.341
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	319.485	248.024	214.794
	TOTAL EARNINGS		319.485	248.024	214.794
	IMPORTS
		Stores & Spares	0.000	4.182	11.798
	TOTAL IMPORTS		0.000	4.182	11.798
	Earnings / (Loss) Per Share (Rs.)		53.66	25.65	11.41

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	9.40	5.13	2.53
Operating Profit Margin (PBDIT/Sales)	(%)	23.37	18.11	14.74
Return on Total Assets (PBT/Total Assets}	(%)	13.71	7.03	2.05
Return on Investment (ROI) (PBT/Networth)		0.31	0.18	0.05
Debt Equity Ratio (Total Liability/Networth)		0.70	0.97	1.15
Current Ratio (Current Asset/Current Liability)		1.32	1.21	1.44

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	116.900	116.900	116.900
Reserves & Surplus	124.103	154.084	216.814
Net worth	241.003	270.984	333.714
long-term borrowings	211.300	157.600	108.400
Short term borrowings	66.917	104.797	124.586
Total borrowings	278.217	262.397	232.986
Debt/Equity ratio	1.154	0.968	0.698

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	526.376	584.490	666.832
		11.040	14.088

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	526.376	584.490	666.832
Profit	13.341	29.980	62.729
	2.53%	5.13%	9.41%

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	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	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

REVIEW OF OPERATIONS:

The Company recorded a net turnover of Rs.666.831 Millions for the year 2013-14 as against Rs.584.490 Millions during the year 2012 - 13.The PBDIT for the year 2013-14 is Rs.155.850 Millions as against Rs.105.873 Millions for the year 2012-13.

Future Outlook:

The Operations during the financial year 2013-14 have yielded satisfactory results, in line with the expectations of the Board of Directors. The company has been able to achieve a turnover, well over the projected figures. The company has also been able to considerably strengthen its cash reserves this financial year. The company has converted the remaining Seven LR-6 Ring Frames to Compact Ring Frames using Suessen Compact Conversion Kits. Thus the Complete spindlage of the mill now produces compact yarn, which is expected to result in higher margins realization in the coming Financial Years.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90128807	13/01/2014 *	425,700,000.00	State Bank of India	Specialised Commercial Branch, Kannavarithota, Gu  ntur, Andhra Pradesh - 522004, INDIA	B94122561
2	90262660	25/07/2005 *	148,500,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, KANNAVARITOTHA, GUNTUR, Andhra  Pradesh, INDIA	-

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Loans and advances from related parties	40.600	29.700
Total	40.600	29.700

FIXED ASSETS

• Land
• Buildings
• Plant and Equipments
• Factory Equipments
• Furniture and Fixture
• Vehicles
• Office Equipments

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. 61.87
UK Pound	1	Rs. 97.02
Euro	1	Rs. 76.13

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	KAR
Report Prepared by :	JYO

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	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		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.