MIRA INFORM REPORT

Report Date :

24.06.2014

IDENTIFICATION DETAILS

Name :	SAI SILKS (KALAMANDIR) LIMITED
Registered Office :	6-3-790/8, Flat No. 1, Bathina Apartments, Ameerpet, Hyderabad – 500016, Telangana
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	03.07.2008
Com. Reg. No.:	01–059968
Capital Investment / Paid-up Capital :	Rs. 202.200 Millions
CIN No.: [Company Identification No.]	U52190TG2008PLC059968
TAN No.: [Tax Deduction & Collection Account No.]	HYDS22512A
PAN No.: [Permanent Account No.]	AAMCS1175P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the retailing of sarees, ready – made garments, women’s dress material, kids wear and jewelries.
No. of Employees :	Information declined by the Management.

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 2444000
Status :	Satisfactory
Payment Behavior :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating reflects company’s satisfactory operational track record marked by established network with the suppliers, geographically diversified revenue stream and consistent growth in the total operating income with improved profitability during financial year 2013. 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

N E W S

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	LONG TERM BANK FACILITIES – BBB
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	04.02.2014

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. Ramakrishna
Designation :	Account Manager
Contact No.:	91-9246223971
Date :	19.06.2014

LOCATIONS

Registered Office :	6-3-790/8, flat No. 1, Bathina Apartments, Ameerpet – 500016, Hyderabad, Telangana, India
Tel. No.:	91-40-66566555
Mobile No:	9246889052 (Mr. Sunil)
Fax No.:	91-40-66106699
E-Mail :	secretarial@kalamandir.com sunil.tammana@kalamandir.com
Zonal Office:	#1402 (OldNo.141) 32nd Cross, 14th Main Road, 4th Block, Jayanagar East, Bengalore – 560011, Karnataka, India
Tel. No.:	91-80 – 42769999
Store :	Located At: Hyderabad Secunderabad Vijayawada Guntur Bangalore Hanumakonda AS Rao Nagar Jayanagar Maileshwaram Marathahalli M.G. Road Chickpet Dilsukhnagar Guntur Kukatpally
Overseas Showroom :	Located at: · USA

DIRECTORS

As on: 30.09.2013

Name :

Chalavadi Naga Kanaka Durga Prasad

Designation :

Managing Director

Address :

Flat N o6, Survey No. 87and 90, Aparna Senor Valley, Shaikpet villege, Shaikpet – 500008, Hyderabad, Telangana, India

Date of Birth/Age :

07.07.1968

Date of Appointment :

01.06.2009

PAN No:

AERPC9565R

DIN No.:

01929166

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	U74999TG2007PTC056741	SAI SWARNAMANDIR JEWELLERS PRIVATE LIMITED	Director	18/12/2007	18/12/2007	-	Active	NO
2	U52190TG2008PLC059968	SAI SILKS (KALAMANDIR) LIMITED	Managing director	01/06/2009	03/07/2008	-	Active	NO
3	U22211TG2010PTC069036	MEDIA 6 (INDIA) PRIVATE LIMITED	Director	01/03/2011	01/03/2011	18/02/2013	Active	NO
4	U70200TG2012PTC084259	VARAMAHALAKSHMI HOLDINGS PRIVATE LIMITED	Director	20/11/2012	20/11/2012	-	Active	NO
5	U52100TG2013PTC091552	SAI RETAIL INDIA PRIVATE LIMITED	Director	06/12/2013	06/12/2013	-	Active	NO

Name :

Kalyan Srinivas Annam

Designation :

Whole Time Director

Address :

29-14-46/1, Prakasam Road, Suryaraopet, Vijayawada – 520010, Andhra Pradesh, India

Date of Birth/Age :

16.07.1974

Date of Appointment :

01.06.2009

PAN No:

AEDPA6498K

DIN No.:

02428313

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	U52190TG2008PLC059968	SAI SILKS (KALAMANDIR) LIMITED	Whole-time director	01/06/2009	01/04/2009	-	Active	NO
2	U22211TG2010PTC069036	MEDIA 6 (INDIA) PRIVATE LIMITED	Director	01/03/2011	01/03/2011	18/02/2013	Active	NO
3	U52100TG2013PTC091552	SAI RETAIL INDIA PRIVATE LIMITED	Director	06/12/2013	06/12/2013	-	Active	NO
4	U52300TG2000PTC034761	ATRIUM TEXTILES PRIVATE LIMITED	Additional director	20/04/2014	20/04/2014	-	Active	NO

Name :

Durgarao D.K. Chalavadi

Designation :

Whole Time Director

Address :

H 801, Springfeilds Apartments, Opposite HDFC Bank, Bellandur Gate, Sarjapur Road, Bangalore – 560102, Karnataka, India

Date of Birth/Age :

03.08.1970

Date of Appointment :

03.07.2009

PAN No:

ALYPC0018P

DIN No.:

02689280

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	U52190TG2008PLC059968	SAI SILKS (KALAMANDIR) LIMITED	Director	03/07/2009	01/06/2009	-	Active	NO
2	U22211TG2010PTC069036	MEDIA 6 (INDIA) PRIVATE LIMITED	Director	01/03/2011	01/03/2011	18/02/2013	Active	NO

Name :

Laxmi Nivas Jaju

Designation :

Director

Address :

House No. 20-2-12, Old Kabutar Khana, Hussaini Alam, Hyderabad, Telangana, India

Date of Birth/Age :

02.06.1952

Date of Appointment :

03.07.2009

DIN No.:

02697745

Name :

Ms. Anita Sakuru

Designation :

Director

Address :

Plot No. B-35, Road no. 7and 10, Film Nagar, Jubliee Hills, Hyderabad – 500033, Telangana, India

Date of Birth/Age :

11.02.1970

Date of Appointment :

03.07.2009

DIN No.:

00475947

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	U72200AP2003PTC040817	KENEXA TECHNOLOGIES PRIVATE LIMITED	Director	09/04/2003	09/04/2003	07/01/2013	Active	NO
2	U70102TG2006PTC052073	BHRUGU REALTORS PRIVATE LIMITED	Director	21/12/2006	21/12/2006	-	Active	NO
3	U01110TG1997PTC026887	HEALTHY AGRO ENTERPRISES PRIVATE LIMITED	Director	18/06/2007	18/06/2007	30/03/2012	Active	NO
4	U92111TG2008PTC057847	GREEN MANGOES CINEMA PRIVATE LIMITED	Director	27/02/2008	27/02/2008	-	Active	NO
5	U01119TG2008PTC057929	VANALAXMI AGRO FARMS PRIVATE LIMITED	Director	03/03/2008	03/03/2008	-	Active	NO
6	U72200TG2009PTC062973	EKAM MOBILE TECHNOLOGIES PRIVATE LIMITED	Director	05/03/2009	05/03/2009	-	Active	NO
7	U52190TG2008PLC059968	SAI SILKS (KALAMANDIR) LIMITED	Director	03/07/2009	01/06/2009	-	Active	NO
8	U45200TG2010PTC069679	ANJAY INFRATECH PRIVATE LIMITED	Director	27/07/2010	27/07/2010	-	Active	NO
9	U72200TG2009PLC063366	TESYNCSREE TECHNOLOGY LIMITED	Managing director	20/05/2013	20/05/2013	07/03/2014	Active	NO

Name :

Mr. Naveen Nandigam

Designation :

Director

Address :

House No. 1-3-183 / 40 / 21 / E, Plot No. 9, Pand T Colony, Kavadiguda, Gandhi Nagar, Hyderabad – 500080, Telangana, India

Date of Birth/Age :

14.01.1962

Date of Appointment :

30.09.2011

DIN No.:

02726620

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	L27109TG1995PLC022190	FARMAX INDIA LIMITED	Director	17/10/2008	31/07/2008	01/10/2009	Active	NO
2	L72200AP1990PLC011334	AVANTEL LIMITED	Director	25/08/2011	30/10/2010	-	Active	NO
3	U52190TG2008PLC059968	SAI SILKS (KALAMANDIR) LIMITED	Director	30/09/2011	01/04/2011	-	Active	NO

Name :

Jineshwar Kumar Sankhala

Designation :

Alternate Director

Address :

Flat No – 306, Chandra Apartments, SBI colony, Gandhi Nagar, Near Axis Bank ATM, Hyderabad – 500080, Andhra Pradesh, India

Date of Birth/Age :

21.04.1982

Date of Appointment :

01.04.2011

DIN No.:

03519040

KEY EXECUTIVES

Name :	Suman Bung
Designation :	Company Secretary
Address :	3-5-121/E/1/2, 2^nd Floor, Ramkote, Hyderabad – 500001, Telangana, India
Date of Birth/Age :	13.02.1991
Date of Appointment :	13.06.2013
PAN No:	ATLPB8012H
Name :	Mr. Sunil
Designation :	General Manager
Mobile No:	9246889052
Date:	19.06.2014

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2013

Names of Shareholders	No. of Shares	%age
Chalavadi Naga Kanaka Durga Prasad	6872600	33.17
Chalavadi Jhansi Rani	4751700	22.93
Annam Kalyan Srinivas	1515400	7.31
Annam Chandra Subash Mohan	504400	2.43
Annam Suchitra	101100	0.49
Annam Sowjanya	101100	0.49
Annam Venkata Rajesh	101100	0.49
P Dhanalakshmi	2931900	14.15
Chalavadi Devamani	2224200	10.73
Chalavadi D K Durga Rao	1616500	7.80
Total	20720000	100.00

As on: 12.12.2013

Names of Allottee	No. of Shares
Ch Naga Kanaka Durga Prasad	170000
Total	170000

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2013

Category	Percentage
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the retailing of sarees, ready – made garments, women’s dress material, kids wear and jewelries.

Products:

Product Description	ITC code
Sarees	62114900

• Women’s Dress Materials
• Men’s Wear
• Kid’s Wear
• Gold Jewelry and Silver jewelry

Brand names:

• Kalamandir
• Mandir
• Varamahalakshmi

GENERAL INFORMATION

No. of Employees :

Information declined by the Management.

Bankers :

• State Bank of India, Commercial Branch, Mid Corporate Group, Bank Street, Koti, Hyderabad – 500095, Telangana, India
• ING Vysya Bank Limited, Cross Sell Divison – C. F. D, 3^rd Floor, 3-6-140/A, Netaji Bhavan, Himayat Nagar, Hyderabad – 500029, Telangana, India

Facilities :

Secured Loan	As on 31.03.2013	As on 31.03.2012
	(Rs. In Millions)
LONG TERM BORROWINGS:
Rupee Term loans from banks (secured by first charge on fixed assets of the company both present and future)	118.912	78.400
Loans taken for vehicles (secured by Hypothecation of vehicles financed by respective Banks)	4.021	2.326
SHORT TERM BORROWINGS:
loans repayable on Demand from Banks (secured by hypothecation of stocks, receivables and other current assets of the company on paripassu basis, both present and future)	817.494	583.982
Total	940.427	664.708

Banking Relations :	--
Auditors :
Name :	Bhavesh Vithlani and Company Chartered Accountants
Enterprises which are owned, or have significant influence of or are partners with key management personnel and their relatives :	Sai Readymades, India PAN NO: ABDFS6415M Sai Retail India, India PAN NO: ABNFS6996H SSS Marketing, India PAN NO: AAOFM0879K Sai Swarnamandir Jewelers Private Limited, India CIN NO: U74999AP2007PTC056741 Sumaja Creations, India PAN NO: AGFPA9055L K Factory, India PAN NO: AAMFK2527Q Kalamandir Foundation, India PAN NO: AABTK6787D

CAPITAL STRUCTURE

After: 30.09.2013

Authorized Capital:

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs.10/- each	Rs.400.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
20890000	Equity Shares	Rs.10/- each	Rs.208.900 Millions

As on: 30.09.2013

Authorized Capital:

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs.10/- each	Rs.400.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
20720000	Equity Shares	Rs.10/- each	Rs.207.200 Millions

As on: 31.03.2013

Authorized Capital:

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs.10/- each	Rs.400.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
20220000	Equity Shares	Rs.10/- each	Rs.202.200 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	202.200	202.200	200.000
(b) Reserves & Surplus	408.711	270.978	142.888
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	16.500
Total Shareholders’ Funds (1) + (2)	610.911	473.178	359.388
(3) Non-Current Liabilities
(a) long-term borrowings	122.933	80.726	83.292
(b) Deferred tax liabilities (Net)	65.083	43.325	16.189
(c) Other long term liabilities	28.239	0.366	0.315
(d) long-term provisions	22.597	5.347	3.531
Total Non-current Liabilities (3)	238.852	129.764	103.327
(4) Current Liabilities
(a) Short term borrowings	867.505	583.994	450.609
(b) Trade payables	122.816	89.073	178.012
(c) Other current liabilities	133.791	99.683	128.006
(d) Short-term provisions	44.689	41.472	43.277
Total Current Liabilities (4)	1168.801	814.222	799.904
TOTAL	2018.564	1417.164	1262.619
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	402.819	308.780	247.268
(ii) Intangible Assets	3.984	4.613	5.151
(iii) Capital work-in-progress	0.802	3.147	43.386
(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	15.640	4.097	26.628
(e) Other Non-current assets	116.606	73.718	55.436
Total Non-Current Assets	539.851	394.355	377.869
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1151.646	948.025	834.370
(c) Trade receivables	13.515	11.423	8.381
(d) Cash and cash equivalents	70.128	28.817	30.233
(e) Short-term loans and advances	241.590	33.649	11.658
(f) Other current assets	1.834	0.895	0.108
Total Current Assets	1478.713	1022.809	884.750
TOTAL	2018.564	1417.164	1262.619

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from Operations	3204.557	2627.618	2437.728
		Other Income	6.874	10.285	9.511
		TOTAL (A)	3211.431	2637.903	2447.239
Less	EXPENSES
		Purchases of Stock-in-Trade	2568.131	2073.351	2177.664
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(203.620)	(113.655)	(311.634)
		Employees benefits expense	95.864	49.148	42.487
		Other expenses	392.992	319.053	329.336
		TOTAL (B)	2853.367	2327.897	2237.853
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		358.064	310.006	209.386
Less	FINANCIAL EXPENSES (D)		130.525	109.580	70.336
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		227.539	200.426	139.050
Less/ Add	DEPRECIATION/ AMORTISATION (F)		27.848	23.300	13.200
	PROFIT BEFORE TAX (E-F) (G)		199.691	177.126	125.850
Less	TAX (H)		61.958	63.336	41.805
	PROFIT AFTER TAX (G-H) (I)		137.733	113.790	84.045
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1.400	0.987	Nil
	TOTAL EARNINGS		1.400	0.987	Nil
	Earnings Per Share (Rs.)		6.81	5.63	4.02

The above information has been parted by Mr. Sunil (General Manager)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	4.29	4.31	3.43
Net Profit Margin (PBT/Sales)	(%)	6.23	6.74	5.16
Return on Total Assets (PBT/Total Assets}	(%)	9.90	12.53	10.32
Return on Investment (ROI) (PBT/Networth)		0.33	0.37	0.35
Debt Equity Ratio (Total Debt/Networth)		1.62	1.40	1.49
Current Ratio (Current Asset/Current Liability)		1.27	1.26	1.11

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	200	202.2	202.2
Reserves & Surplus	142.888	270.978	408.711
Share application money pending allotment	16.500	0.000	0.000
Net worth	359.388	473.178	610.911
long-term borrowings	83.292	80.726	122.933
Short term borrowings	450.609	583.994	867.505
Total borrowings	533.901	664.720	990.438
Debt/Equity ratio	1.486	1.405	1.621

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)
Revenue from Operations	2437.728	2627.618	3204.557
		7.790	21.957

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from Operations	2437.728	2627.618	3204.557
Profit	84.044	113.790	137.732
	3.45%	4.33%	4.30%

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

UNSECURED LOAN:

Particulars	As on 31.03.2013	As on 31.03.2012
	(Rs. In Millions)
SHORT TERM BORROWINGS:
Loans and advances from related parties	50.000	0.000
Loans and advances from others	0.11	0.012
Total	50.011	0.012

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10456972	04/10/2013	850,000,000.00	STATE BANK OF INDIA (LEAD BANK)	COMMERCIAL BRANCH, MID CORPORATE GROUP, BANK STREET, KOTI, HYDERABAD- 500095, ANDHRA PRADESH, INDIA	B88265434
2	10335920	31/01/2012	1,177,000.00	ING VYSYA BANK LIMITED	CROSS SELL DIVISION-C.F.D, 3RD FLOOR, 3-6-140/A,  NETAJI BHAVAN, HIMAYAT NAGAR ,, HYDERABAD- 500029, ANDHRA PRADESH, INDIA	B32281180
3	10291277	31/05/2011	1,130,000.00	ING VYSYA BANK LIMITED	ING VYSYA BANK LTD, C.F.D,3RD FLOOR, 3-6-140/A, NETAJI BHAVAN, HIMAYAT NAGAR, HYDERABAD - 500029, ANDHRA PRADESH, INDIA	B14659718
4	10293523	01/09/2010	220,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, BANK STREET, KOTI, HYDERABAD - 500095, ANDHRA PRADESH, INDIA	A95791091
5	10144623	13/09/2010 *	115,000,000.00	STATE BANK OF HYDERABAD	LAND MARK CENTRE, SIDDIAMBER BAZAAR, HYDERABAD - 500012, ANDHRA PRADESH, INDIA	A97969257
6	10116482	12/12/2013 *	245,900,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, MID CORPORATE GROUP, BANK STREET, KOTI, HYDERABAD - 500095, ANDHRA PRADESH, INDIA	B91752485

DIAMOND INDUSTRY – INDIA

- From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8^th Century B.C.  India, in fact, remained undisputed leader till 18^th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

- The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

- The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

- Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

- Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

- Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

- Excerpts from Times of India dated 30^th October 2010 is as under –

- Gem & Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

- The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

OPERATIONS / PERFOMANCE

The Company has posted yet another impressive year of performance. During the year the turnover of the Company surged by more than 20% compare to that of last Financial Year

The increase in turnover is attributable mainly to the new stores opened during the year. However, the turnover couldn’t reach the expectations owing to the recent slowdown in the industry and loss of business due to frequent strikes resulting in loss of precious business working days.

The Board of Directors feel delighted to put on record that the Company has achieved a turnover of Rs.3204.600 Millions for the FY 2012-13 compared to Rs.2627.600 Millions for the FY 2011-12 and a net profit of Rs 137.7 Millions for the FY 2012-13 compared to Rs 113.800 Millions for the FY 2011-12.

Further, the Directors feel glad to inform you that the Company would be adding another two new showrooms at the following locations, to its existing list of 15 showrooms:

1. AS Rao Nagar, # 1-6-1, Ground Floor, Asian Radhika Movie Multiplex, AS Rao Nagar, Hyderabad – 500062, Telangana, India

2. Vijayawada, # 39 - 17 - 10, Sivanandam Street, Labbipet, Vijayawada – 520010, Andhra Pradesh, India

RETAIL INDUSTRY:

Global Retail Industry Overview

The global retail market generated around USD 11 trillion in 2011 and is growing slowly despite economic Slowdown in major markets like US and EU. Global retail market is expected to record yearly growth of close to 5% through 2020 to reach around USD 17 trillion. The Indian retail industry is pegged at USD 442 billion and is expected to grow @ 13% annually to reach USD 1.3 trillion by 2020. A significant part of growth is expected to come from organized retail, which is expected to increase its share from 8% currently to 25% by 2020.

APPAREL RETAIL MARKET:

The size of the global apparel market in 2011 was USD 1215 billion. The largest market for apparel is in Europe, followed by USA, China, Japan and Brazil. The share of India in the global market stood at 3% or USD 40 billion. The market for apparel is expected to grow @ 4% CAGR and reach USD 1725 billion approximately in 2020.

TEXTILE AND APPAREL MARKET IN INDIA:

The textile and apparel industry is one of the leading segments of the Indian economy and the largest source of foreign exchange earnings for India. This industry accounts for 5% of the gross domestic product (GDP), and around10% of export earnings.

India is the world’s second-largest textile producer (after China), and is diversified and capable of producing a wide variety of textiles. India has a large fiber base, and ranks as the world’s second largest producer of key raw materials including cotton, cotton yarn, cellulosic fibre / yarn, silk, synthetic fibre and yarn and jute.

India’s textile and apparel industry benefits from a large pool of skilled workers and competent technical and managerial personnel. The textile and apparel industry employs about 45 million people, making it the largest source of industrial employment in India. Indian Textile and Apparel Industry Size

India’s total textile and apparel industry size (Domestic + Exports) is projected to grow at a CAGR of 9.5% to reach Rs.10,50,000 crores (USD 223 billion) by 2021.Indian domestic apparel market is estimated to be around Rs.190,000 crores and is expected to grow at a CAGR of 9% to reach around Rs. 462,000 crores by 2021.

WOMEN'S ETHNIC WEAR INDUSTRY IN INDIA:

Market Scenario of Women’s Ethnic wear in India

Women’s wear category constitutes 38% of the total apparel market of India. The size of the women’s ethnic wear market is Rs. 54,236 crores constituting 75% of the total women’s wear market. The women’s ethnic wear market is expected to grow at a healthy rate of 8.3% and reach Rs. 120385 crores by 2021.

Sarees comprise around 52% of the women’s ethnic wear market. Sarees market is expected to grow @ 6.3 % annually to reach Rs. 52152 crores by 2021. Brand/ Retail presence in the organized market is larger in the

Southern markets with some of the prominent names including Pothys, RMKV, Nalli, Sri Kumaran Silks, Chennai Silks etc.

KEY CHALLENGES FOR THE INDIAN TEXTILE INDUSTRY:

Despite high growth potential of the textile and apparel market, there are several challenges for the industry including the following:

1. Rising costs such as Labour costs, power costs and other manufacturing costs are rising in India. This paired with the highly uncertain raw material prices pose huge challenge for the industry.

2. Slowdown in major markets like US, EU etc. is impacting the Indian apparel exports. This is because the wallet share of apparel as opposed to essentials is going down in these markets.

3. With increasing requirement of technology and innovation in designs, skilled labour requirement is increasing. Subsequently, training of labour for skill development is a challenge for the industry.

4. Retaining skilled labour is also a challenge. Rise of alternate employment opportunities in other sectors like Automobiles, Telecom, IT and Retail, among others; attract labour away from textile industry.

5. Most of the Industry has typically grown around the metros, where the cost of living is high. The overall industry is yet to see a full grown shift from a high cost centre to a low cost centre within the country.

Hence the transition of manufacturing to lower cost base will be a challenge.

6. Lack of ‘Economies of Scale’ - The Indian apparel industry is highly fragmented, and lacks overall scale. Smaller set-ups pose more challenges in meeting the overall requirements of the customer in terms of quantities, quality, environment compliances etc. Lack of scales also contributes to higher cost of operations.

Besides lack of scales, there are also only few vertically integrated manufacturing units. Lack of vertical integration also results in increased costs and risks in the supply chain.

MANAGEMENT DISCUSSION & ANALYSIS

INDUSTRY OVERVIEW

Indian textile industry contributes about 14 per cent to industrial production, 4 per cent to the country's gross domestic product (GDP) and 16.63 per cent to export earnings. Nearly 40 per cent of the textiles manufactured in the country is exported and the textiles sector is the biggest employment generator after agriculture.

BUSINESS OVERVIEW

Textiles Retail

The Company is majorly in the business of retailing of sarees under the brand names of 'KALAMANDIR', 'MANDIR' and 'VARAMAHALAKSHMI'. It started as a retailer of sarees in Hyderabad in August 2005. As on the date, the Company operates 15 retail outlets spread across South India. The company is presently engaged in retail offering of the following products to all the segments:

• Sarees

• Women’s dress materials and ready-mades

• Men’s wear

• Kids wear

• Gold Jewellery and Silver articles

Jewellery

The Jewellery business of the Company is operational under the 'Shop in Shop' model. As per this model, Sai Swarnamandir Jewellers Private Limited (SSJPL), a group company displays gold jewellery and silver articles in the retail outlets of the Company. Whenever a customer expresses his/her desire to purchase such product, SSJPL issues delivery challans and thereafter their company raises Sales Invoice to the customer. Based on the delivery challans, their Company raises Purchase Invoice on SSJPL on a daily basis and payment is settled between both the parties as per the terms of the Agreement. Wind Power their Company has forayed into the business of generation of electricity through non-conventional energy sources by setting up a Wind Power Project having a capacity of 2 MW at Kondamedapally, Kurnool District, Andhra Pradesh at a project cost of Rs. 112.000 millions.

The Company has entered into an agreement with NEDCAP on August 17, 2010 for setting up the said Wind Power Project at 9 SAI SILKS (KALAMANDIR) LIMITED Standalone Balance Sheet for period 01/04/2012 to 31/03/2013 Kondamedapally, Kurnool District, Andhra Pradesh and entered into a Power Purchase Agreement on March 31, 2011 ('PPA') with Central Power Distribution Company of Andhra Pradesh Limited.

1 MW was commissioned on March 31, 2011 and remaining 1MW was commissioned on July 16, 2011 but the Commercial Operation Date has been considered as March 31, 2011 by the DISCOM as per Article 1, clause 1.4 of the PPA. The power generated is not meant for captive consumption and is sold to Central Power Distribution of Andhra Pradesh Company Limited (APCPDCL) as per Power Purchase Agreement (PPA) dated March 31, 2011. As per the PPA, out of the 2 MW capacity, 0.01 MW is permitted for auxiliary consumption and 1.99 MW for export to network for sale to DISCOM at the rate of Rs. 3.50 per unit for a period of 10 years from the commercial operation date. The tariff payable beyond 10^th year of operation will be as determined by Andhra Pradesh Electricity Regulatory Commission (APERC). The revenue generated from wind power generation for the period ended March 31, 2013 is Rs.7.415 Millions

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.60.19
UK Pound	1	Rs.102.56
Euro	1	Rs.81.91

INFORMATION DETAILS

Information Gathered by :	PDT
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	4
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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		43

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.