MIRA INFORM REPORT

Report Date :

10.06.2014

IDENTIFICATION DETAILS

Name :	BVG INDUSTRIES LIMITED
Registered Office :	18 ‘A’ Phase-V, IDA, Jeedimetla, Hyderabad – 35, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	28.07.1994
Com. Reg. No.:	01- 018011
Capital Investment / Paid-up Capital :	Rs.2.500 Million
CIN No.: [Company Identification No.]	U74999TG1994PLC018011
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Trader and Importer of Building and Construction Material
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 71000
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 decent. Profitability of the company is fair. Trade 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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

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. Vishnu Goyal
Designation :	Account Manager
Contact No.:	91-011-43242424
Date :	26.05.2014

LOCATIONS

Registered Office :	18 ‘A’ Phase-V, IDA, Jeedimetla, Hyderabad – 39, Andhra Pradesh, India.
Tel No:	Not Available
Fax No:	Not Available
E-Mail :	info@bvg.co.in v.goyal@bvg.co.in
Website :	http://www.bvg.co.in
Corporate Office :	No. 2, 1^st Floor, Lane 1, West End Mary, Said VI Ajab Saket, New Delhi – 110030, India.
Tel. No.:	91-11-43242424
Branch Office:	30, South End Road, Basavangudi, Bangalore – 560004, Karnataka, India

DIRECTORS

As on: 31.03.2013

Name :

Mr. Ved Prakash Goyal

Designation :

Director

Address :

F.No:500, A and B, Edaicode Tower, 8-3-1071, Srinagar Colony, Hyderabad – 500073, Andhra Pradesh, India

Date of Birth/Age :

02.12.1952

Date of Appointment :

28.07.1994

DIN No.:

00554848

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	U74999TG1994PLC018011	BVG INDUSTRIES LIMITED	Director	28/07/1994	28/07/1994	-	Active	NO
2	U20299TG1995PTC019977	GOYAL'S TIMBER TECHNICKS Private Limited	Director	10/04/1995	10/04/1995	-	Active	NO

Name :

Ms. Shikha Goyal

Designation :

Director

Address :

18-A, Road 1 Phase V, IDA, Jeedimetla, Hyderabad – 500055, Andhra Pradesh, India

Date of Birth/Age :

26.01.1954

Date of Appointment :

12.01.1995

DIN No.:

00554871

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	U74999TG1994PLC018011	BVG INDUSTRIES LIMITED	Director	12/01/1995	12/01/1995	-	Active	NO
2	U20299TG1995PTC019977	GOYAL'S TIMBER TECHNICKS Private Limited	Director	10/04/1995	10/04/1995	-	Active	NO

Name :

Mr. Vishal Goyal

Designation :

Director

Address :

18-A, Road 1 Phase V, IDA, Jeedimetla, Hyderabad – 500055, Andhra Pradesh, India

Date of Birth/Age :

26.09.1977

Date of Appointment :

03.04.2001

DIN No.:

00554888

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	U20299TG1995PTC019977	GOYAL'S TIMBER TECHNICKS Private Limited	Director	10/04/1995	10/04/1995	-	Active	NO
2	U74999TG1994PLC018011	BVG INDUSTRIES LIMITED	Director	03/04/2001	03/04/2001	-	Active	NO
3	U36998DL2011PTC214286	WAALID DESIGNS PRIVATE LIMITED	Director	17/02/2011	17/02/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Vishnu Goyal
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.03.2013

Names of Shareholders	No. of Shares
Natarajan Narayanaswamy	10
Ved Prakash Goyal	88690
Shika Goyal	160760
Sushil Kumar Bose	10
Suresh Gurbani	10
Preetam Lalwani	10
Brahma K. Gurbani	10
Vishal Goyal	500
Total	250000

Equity Share Break up (Percentage of Total Equity)

As on: 31.03.2013

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader and Importer of Building and Construction Material
Products :	· Laminate Floorings · Engineered Wood Flooring · Carpet Tiles · Cladding + Deck
Imports :
Products :	Building and Construction Material
Countries :	· Europe · China · Brazil
Terms :
Selling :	Cash and Advance Payment
Purchasing :	Cash and Advance Payment

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

No. of Employees :

50 (Approximately)

Bankers :

Oriental Bank of Commerce : 6-3-865, My Home Jupally, Greenland, Ameerpet, Hyderabad – 500016, Andhra Pradesh, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long term borrowings
Term loans:
From others:
Hire Purchase Credits	2.821	2.825
(Secured by hypothecation of vehicles)
Short term borrowings:
Loans repayable on demand
From Banks:
Cash credit	15.891	9.750
(secured by hypothecation of stock and book debts of the company)
Total	18.712	12.575

Banking Relations :	--
Auditors :
Name :	MGRK Associates Chartered Accountants
Address :	96, Seshachal Colony, East Maredpally, Secunderabad – 500026, Andhra Pradesh, India
Tel. No.:	91-40-27731817 / 65215447
Fax No.:	91-40-40179348
PAN No.:	AACFM8797Q

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs. 20.000 Millions

Issued, Subscribed & Paid-up Capital :

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

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	2.500	2.500	2.500
(b) Reserves & Surplus	15.278	10.021	5.864
(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)	17.778	12.521	8.364
(3) Non-Current Liabilities
(a) long-term borrowings	2.821	2.825	2.761
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	2.821	2.825	2.761
(4) Current Liabilities
(a) Short term borrowings	15.891	9.750	9.725
(b) Trade payables	4.820	4.104	2.038
(c) Other current liabilities	10.680	11.414	13.760
(d) Short-term provisions	16.436	11.096	5.031
Total Current Liabilities (4)	47.827	36.364	30.554
TOTAL	68.426	51.710	41.679
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	4.953	5.501	2.534
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.240	0.159	0.068
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	5.193	5.660	2.602
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	10.291	7.806	6.704
(c) Trade receivables	22.093	12.924	6.374
(d) Cash and cash equivalents	10.556	9.680	11.519
(e) Short-term loans and advances	20.293	15.640	14.480
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	63.233	46.050	39.077
TOTAL	68.426	51.710	41.679

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	129.390	107.824	61.395
		Other Income	1.499	0.830	0.886
		TOTAL	130.889	108.654	62.281
Less	EXPENSES
		Cost of Materials Consumed	0.000	0.000	0.000
		Purchases of Stock-in-Trade	92.212	77.251	38.617
		Changes in inventories of Stock-in-Trade	(2.485)	(1.101)	(3.121)
		Employees benefits expense	11.561	8.160	7.904
		Other expenses	17.789	14.859	13.633
		TOTAL	119.077	99.169	57.033
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		11.812	9.485	5.248
Less	FINANCIAL EXPENSES		2.390	1.923	0.783
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		9.422	7.562	4.465
Less/ Add	DEPRECIATION/ AMORTISATION		1.454	0.804	0.462
	PROFIT BEFORE TAX		7.968	6.758	4.003
Less	TAX		2.420	2.309	1.403
	PROFIT AFTER TAX		5.548	4.449	2.600
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		9.345	5.238	2.980
Less	APPROPRIATIONS
		Transfer to General Reserve	0.050	0.050	0.050
		Tax on Dividend	0.290	0.292	0.292
	BALANCE CARRIED TO THE B/S		14.553	9.345	5.238
	Earnings Per Share (Rs.)		22.19	17.80	10.40

Particulars	31.03.2014
Sales Turnover (Approximately)	140.000

The above information has been parted by Mr. Vishnu Goyal (Account Manager)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	4.24	4.09	4.17
Net Profit Margin (PBT/Sales)	(%)	6.16	6.27	6.52
Return on Total Assets (PBT/Total Assets}	(%)	11.69	13.11	9.62
Return on Investment (ROI) (PBT/Networth)		0.44	0.54	0.4
Debt Equity Ratio (Total Debt/Networth)		16.04	9.97	10.05
Current Ratio (Current Asset/Current Liability)		1.32	1.27	1.28

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	2.500	2.500	2.500
Reserves & Surplus	5.864	10.021	15.278
Net worth	8.364	12.521	17.778
long-term borrowings	2.761	2.825	2.821
Short term borrowings	9.725	9.750	15.891
Total borrowings	12.486	12.575	18.712
Debt/Equity ratio	1.493	1.004	1.053

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)
Total Income	62.281	108.654	130.889
		74.458	20.464

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	62.281	108.654	130.889
Profit	2.600	4.449	5.548
	4.17%	4.09%	4.24%

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	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	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

BUSINESS OPERATIONS:

During the year company achieved 20% growth in the turnover compare to the last year and the profit after tax is increased by 25%. The directors are confident to maintain the same level of performance in the coming years.

FIXED ASSETS:

· Plant and Machinery

· Electrical Installation

· Furniture and Fixtures

· Office Equipments

· Computers

· Car

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10380116	17/09/2012	600,000.00	ORIENTAL BANK OF COMMERCE	8-3-988/42, MAIN ROAD,, SRINAGAR COLONY, HYDERABAD - 500073, Andhra Pradesh, INDIA	B59523217
2	10277963	23/08/2013 *	50,000,000.00	ORIENTAL BANK OF COMMERCE	6-3-865, MY HOME JUPALLY,, GREENLAND, AMEERPET, HYDERABAD - 500016, Andhra Pradesh, INDIA	B84963495

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.59.06
UK Pound	1	Rs.99.34
Euro	1	Rs.80.62

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	KAR
Report Prepared by :	JAY

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	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		44

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.