MIRA INFORM REPORT

Report Date :

14.06.2014

IDENTIFICATION DETAILS

Name :	SRI NARASU'S COFFEE COMPANY LIMITED
Registered Office :	Post Box No. 701, No. 16A, Court Road, Johnsonpet, Salem – 636007, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	01.04.2009
Com. Reg. No.:	18-015131
Capital Investment / Paid-up Capital :	Rs. 30.000 Millions
CIN No.: [Company Identification No.]	U15492TZ2009PLC015131
TAN No.: [Tax Deduction & Collection Account No.]	CHES32186A
PAN No.: [Permanent Account No.]	AAMCS9432M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Ground Coffees, Instant Coffees, Premix Coffee and Tea, Tea, Ready to Eat Rice-Mix Powders and Spice Powders.
No. of Employees :	Not Divulged

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 1850000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The company is performing well, general financial position of the company is good. Trade relations are reported as fair. Business is active. Payments terms are reported to be usually correct. The company can be considered normal 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 – 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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term fund based facilities : “BBB-”
Rating Explanation	Moderate degree of safety. It carry moderate credit risk.
Date	November, 2013

Rating Agency Name	ICRA
Rating	Short term fund based facilities : “A3” (Revised from A4+)
Rating Explanation	Moderate degree of safety. It carry higher credit risk.
Date	November, 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 31-03-2012.

INFORMATION DECLINED BY

Name :	Ms. Saraswati
Designation :	Accountant
Contact No.:	91-427-2417560
Date :	13.06.2014

LOCATIONS

Registered/ Head Office :	Post Box No. 701, No. 16A, Court Road, Johnsonpet, Salem – 636007, Tamilnadu, India
Tel. No. :	91-427-2417560 / 2416192/ 2418877
Fax No. :	91-427-2416193
E-Mail :	nathanramcas@gmail.com info@narasuscoffee.in finance@narasuscoffee.in
Website :	www.narasuscoffee.in
Branch Office :	Located at · Attur · Chennai · Chidambaram · Coimbatore · Cuddalore · Dharmapuri · Dindigul · Erode · Gobichettipalayam · Kancheepuram · Karaikudi · Karur · Kumbakonam · Madurai · Mannargudi · Mayiladuthurai · Mettupalayam · Nagercoil · Palayamkottai · Panruti · Pollachi · Puducherry · Pudukkottai · Sathyamangalam · Salem · Tanjavore · Theni · Thuthukudi · Tirunelveli · Tiruppur · Tiruvannamalai · Trichy · Udumalpet · Vellore · Villupuram · Palani · Bangalore · Chittoor

DIRECTORS

As on 28.09.2013

Name :

Mr. Parthasarathy Sivanantham

Designation :

Managing Director

Address :

19, Rajaji Road, Salem – 636007, Tamilnadu, India

Date of Birth/Age :

25.10.1964

Qualification :

Commerce

Date of Appointment :

03.04.2009

PAN No.:

AICPS2490N

DIN No. :

02430724

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	Company/ LLP Status	Defaulting status
1	U15492TZ2009PLC015131	SRI NARASU'S COFFEE COMPANY LIMITED	Managing director	03/04/2009	01/04/2009	Active	NO

Name :

Mr. Sivanantham Srudheep

Designation :

Managing Director

Address :

19, Rajaji Road, Salem – 636007, Tamilnadu, India

Date of Birth/Age :

21.06.1991

Qualification :

Commerce

Date of Appointment :

04.03.2013

PAN No. :

CJJPS4192K

DIN No. :

02711020

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	Company/ LLP Status	Defaulting status
1	U15492TZ2009PLC015131	SRI NARASU'S COFFEE COMPANY LIMITED	Managing director	04/03/2013	14/07/2009	Active	NO

Name :

Sivanantham Lalitha

Designation :

Director

Address :

19, Rajaji Road, Salem – 636007, Tamilnadu, India

Date of Birth/Age :

15.06.1965

Qualification :

Commerce

Date of Appointment :

01.04.2009

PAN No. :

AAXPL5969N

DIN No. :

02430793

KEY EXECUTIVES

Name :	Ms. Saraswati
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2013

Names of Shareholders	No. of Shares
P. Sivanantham	2508000
S. Lalitha	1000
S. Suresh Kumar	1
S. Srudheep	490996
K. P. Venkatesh	1
S. R. Rangabashyam	1
S. K. Ganesan	1
Total	3000000

As on 28.09.2013

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 of Ground Coffees, Instant Coffees, Premix Coffee and Tea, Tea, Ready to Eat Rice-Mix Powders and Spice Powders.

Products :

Item Code No. (ITC Code)	Product Description
21011110	Instant Coffee

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· State Bank of India, Siruthozhil Branch, 68 Cherry Road, Salem - 636007, Tamilnadu, India

· State Bank of India, Commercial Branch, Chinnaiyan Towers, Cherry Road, Salem - 636007, Tamilnadu, India

· Canara Bank, Fort Main, Salem - 636001, Tamilnadu, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Rupee term loans from banks	405.053	457.221
Total	405.053	457.221

Banking Relations :	--
Auditors :
Name :	G Ranganathan Chartered Accountant
Address :	9-A, Rajaji Road, Salem - 636007, Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	ABSPR3371C
Associate :	Narasu's Coffee Curing

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
4,000,000	Equity Shares	Rs.10/- each	Rs. 40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3,000,000	Equity Shares	Rs.10/- each	Rs. 30.000 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	30.000	30.000	10.000
(b) Reserves & Surplus	433.647	364.303	60.748
(c) Money received against Share Warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	300.172
Total Shareholders’ Funds (1) + (2)	463.647	394.303	370.920
(3) Non-Current Liabilities
(a) long-term Borrowings	181.510	181.510	181.510
(b) Deferred Tax Liabilities (Net)	4.017	5.023	5.227
(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)	185.527	186.533	186.737
(4) Current Liabilities
(a) Short Term Borrowings	405.053	457.221	435.994
(b) Trade Payables	5.857	5.819	4.484
(c) Other Current Liabilities	5.591	3.557	6.378
(d) Short-term Provisions	28.321	12.937	2.180
Total Current Liabilities (4)	444.822	479.534	449.036
TOTAL	1093.996	1060.370	1006.693
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible Assets	375.369	388.644	417.266
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital Work-in-Progress	1.903	0.751	0.280
(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)	0.000	0.000	0.000
(d) Long-term Loan and Advances	11.104	8.516	2.943
(e) Other Non-current Assets	0.000	0.000	0.000
Total Non-Current Assets	388.376	397.911	420.489
(2) Current assets
(a) Current Investments	0.000	0.000	0.000
(b) Inventories	473.685	476.301	486.700
(c) Trade Receivables	57.642	70.142	36.955
(d) Cash and Cash Equivalents	91.154	29.100	12.112
(e) Short-term Loans and Advances	80.882	81.938	46.075
(f) Other Current Assets	2.257	4.978	4.362
Total Current Assets	705.620	662.459	586.204
TOTAL	1093.996	1060.370	1006.693

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	2024.423	1859.048	1541.266
		Other Income	67.921	17.145	44.145
		TOTAL (A)	2092.344	1876.193	1585.411
Less	EXPENSES
		Cost of Materials Consumed	1493.625	1491.904	1246.532
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	33.621	(41.073)	(21.669)
		Employees benefits expense	61.350	53.116	42.285
		Other expenses	330.414	252.784	217.552
		TOTAL (B)	1919.010	1756.731	1484.700
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		173.334	119.462	100.711
Less	FINANCIAL EXPENSES (D)		50.267	50.438	58.423
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		123.067	69.024	42.288
Less/ Add	DEPRECIATION/ AMORTISATION (F)		34.880	33.738	37.228
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		88.187	35.286	5.060
Less	TAX (H)		25.053	11.731	1.472
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		63.134	23.555	3.588
	EARNINGS IN FOREIGN CURRENCY		NA	853.895	458.219
	IMPORTS
		Raw Materials	NA	225.490	82.434
	TOTAL IMPORTS		NA	225.490	82.434
	Earnings / (Loss) Per Share (Rs.)		21.04	20.19	3.59

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	3.02	1.26	0.23
Net Profit Margin (PBT/Sales)	(%)	4.36	1.90	0.33
Return on Total Assets (PBT/Total Assets}	(%)	8.08	3.33	0.50
Return on Investment (ROI) (PBT/Networth)		0.19	0.09	0.01
Debt Equity Ratio (Total Debt/Networth)		1.27	1.62	1.66
Current Ratio (Current Asset/Current Liability)		1.59	1.38	1.31

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	10.000	30.000	30.000
Reserves & Surplus	60.748	364.303	433.647
Share Application money pending allotment	300.172	0.000	0.000
Net worth	370.920	394.303	463.647
long-term borrowings	181.510	181.510	181.510
Short term borrowings	435.994	457.221	405.053
Total borrowings	617.504	638.731	586.563
Debt/Equity ratio	1.665	1.620	1.265

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	1541.266	1859.048	2024.423
		20.618	8.896

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	1541.266	1859.048	2024.423
Profit	3.588	23.555	63.134
	0.23%	1.27%	3.12%

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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10355693	03/12/2012 *	200,000,000.00	DBS BANK LTD	806, ANNA SALAI, CHENNAI, TAMIL NADU - 600002, IND IA	B63692545
2	10200487	27/06/2013 *	600,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, CHINNAIYAN TOWERS, CHERRY ROAD , SALEM, TAMIL NADU - 636007, INDIA	B79435699

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Deposits from others	181.510	181.510
Total	181.510	181.510

FIXED ASSETS

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Motor Vehicles

· Office Equipment

· Computer Equipments

· Other 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 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.59.48
UK Pound	1	Rs.100.93
Euro	1	Rs.80.71

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	DIV
Report Prepared by :	MRI

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	6
--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	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.