MIRA INFORM REPORT

Report Date :

27.03.2014

IDENTIFICATION DETAILS

Name :	SUPRIYA SPINNING MILLS PRIVATE LIMITED
Registered Office :	D. No. 113, First Floor, A.P Cotton Building, Lakshmipuram Main Road, Guntur – 522007, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.05.2005
Com. Reg. No.:	01-046341
Capital Investment / Paid-up Capital :	Rs.43.000 Millions
CIN No.: [Company Identification No.]	U18100AP2005PTC046341
TAN No.: [Tax Deduction & Collection Account No.]	HYDS16804E
PAN No.: [Permanent Account No.]	AAICS9992E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Yarn.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 342000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Management of the company has failed to file its financials after 2011 with government department. Management denied to provide any information to us. As per financials of 2010, external borrowing of the company is huge. However, trade relation are fair. Business is active. Payment terms are unknown. The company can be considered for business dealing with some caution.

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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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

India’s current account deficit for the fiscal third quarter ended September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in exports and moderation in gold imports. Manufacturing activity and new orders in India showed their strongest growth in a year in February. The news comes as a relief after data showed Asia’s third largest economy grew by a slower-than-expected 4.7 % annually in the three months through December. The HSBC Manufacturing Purchasing Managers’ Index which gauges the business activity of India’s factories but not its’ utilities, rose to 52.5 in February, its highest in a year from 51.4 in January. Overall new orders for factory goods which rose to a one-year high of 54.9 contributed to the surge. China has emerged as India’s biggest trading partner in the current financial year replacing the United Arab Emirates and pushing it to the third spot. India-China trade has reached $49.5 billion with a 8.7 % share in India’s total trade. The US comes second at $46 billion with 8.1 % share during the first nine months of the current financial year.

The Reserve Bank of India has granted an additional nine months to the public to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000 denominations, pushing the deadline to January 1, 2015. A day before dates for the Lok Sabha polls were announced, the government decided to hike interest rates on fixed deposit schemes offered by post offices up to 0.2 per cent. The new rates will be effective April, 1. The Supreme Court will resume hearing on March, 11 Nokia’s appeal against a ruling over transferring ownership of its local mobile phones plant which is the subject of a tax dispute to Microsoft Corp.

In the last days of the current Government, another scam has surfaced. The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The Central Bureau of Investigation will look into allegations that over $80 million was paid in kickbacks in a deal signed in 2011. India has asked Boeing Co. to find a solution for problems with state-owned Air India’s 787 Dreamliners. The aircraft has experienced a series of malfunctions since its debut in 2011.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long Term Fund Based Limits=B
Rating Explanation	Risk prone credit quality and very high credit risk.
Date	February 2014

Rating Agency Name	ICRA
Rating	Non Fund Based Limits=A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	February 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 DENIED

Management Non Co-operative (91-863-2355091)

LOCATIONS

Registered Office :	D. No. 113, First Floor, A.P Cotton Building, Lakshmipuram Main Road, Guntur – 522007, Andhra Pradesh, India
Tel. No.:	91-863-2355091/ 2243024
Mobile No.:	91-9490162221 [Mr. J. Srinivasan]
Fax No.:	Not Available
E-Mail :	supriya_spinning@yahoo.com india@supriyayarn.com
Website :	http://www.supriyayarn.com
Location :	Owned
Factory :	Unnava Road, Boyapalem, District Guntur – 522233, Andhra Pradesh, India
Tel. No.:	91-8647-276204/ 276205
Fax No.:	91-8647-276206

DIRECTORS

AS ON 27.09.2011

Name :

Kancharla Anjaneyulu

Designation :

Managing director

Address :

D. No.5-79-15/1, 2^nd Line, Ashok Nagar, Guntur – 522002, Andhra Pradesh, India

Date of Birth/Age :

01.01.1952

Date of Appointment :

26.05.2005

DIN No.:

00490110

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	U17232AP2003PTC040585	KANCHERLA SPINNING MILLS PRIVATE LIMITED	Director	27/02/2003	27/02/2003	Strike off	NO
2	U18100AP2005PTC046341	SUPRIYA SPINNING MILLS PRIVATE LIMITED	Managing director	26/05/2005	26/05/2005	Active	NO
3	U51900KA2010PLC052561	NATSAM SOLUTIONS (INDIA) LIMITED	Director	17/02/2010	17/02/2010	Active	NO

Name :

Kancharla Kalavathi

Designation :

Director

Address :

D. No.5-79-15/1, 2^nd Line, Ashok Nagar, Guntur – 522007, Andhra Pradesh, India

Date of Birth/Age :

10.04.1962

Date of Appointment :

26.05.2005

DIN No.:

00490191

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	U17232AP2003PTC040585	KANCHERLA SPINNING MILLS PRIVATE LIMITED	Director	27/02/2003	27/02/2003	Strike off	NO
2	U18100AP2005PTC046341	SUPRIYA SPINNING MILLS PRIVATE LIMITED	Director	26/05/2005	26/05/2005	Active	NO

Name :

Talluri Narayana Lakshmi

Designation :

Director

Address :

D. No.5-79-15/1, 2^nd Line, Ashok Nagar, Guntur – 522002, Andhra Pradesh, India

Date of Birth/Age :

21.02.1982

Date of Appointment :

26.05.2005

DIN No.:

00490245

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	U18100AP2005PTC046341	SUPRIYA SPINNING MILLS PRIVATE LIMITED	Director	26/05/2005	26/05/2005	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2011

Names of Shareholders	No. of Shares
Kancharla Anjaneyulu	257002
Kancharla Kalavathi	171999
Talluri Narayana Lakshmi	999
Total	430000

AS ON 02.08.2012

Names of Allottees	No. of Shares
Kancharla Anjaneyulu	200000
Kancharla Kalavathi	200000
Talluri Narayana Lakshmi	40000
Total	440000

AS ON 27.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Yarn.

GENERAL INFORMATION

Customers :

Others

No. of Employees :

500 (Approximately)

Bankers :

· Canara Bank, Guntur - 522003, Andhra Pradesh, India [Tel No.: 91-863-2221137]

· ICICI Bank Limited

· HDFC Bank Limited

· Indusind Bank Limited

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Working capital loans others secured	431.191	261.472
Loans taken for vehicles secured	1.715	1.819
Loans taken for other fixed assets secured	87.194	108.084
Total	520.100	371.375

Banking Relations :	--
Auditors :
Name :	B. Panduranga Rao and Company Chartered Accountants
Address :	6/15, Brodipet, Guntur – 522002, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	ACHPB2286L

CAPITAL STRUCTURE

AFTER 27.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs. 100/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
870,000	Equity Shares	Rs. 100/- each	Rs. 87.000 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs. 100/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
430,000	Equity Shares	Rs. 100/- each	Rs. 43.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		43.000	43.000	43.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		42.517	15.230	7.185
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		85.517	58.230	50.185
LOAN FUNDS
1] Secured Loans		520.100	371.375	263.977
2] Unsecured Loans		61.775	54.515	3.790
TOTAL BORROWING		581.875	425.890	267.767
DEFERRED TAX LIABILITIES		0.552	0.463	0.338
TOTAL		667.944	484.583	318.290
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		163.008	147.513	166.361
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		5.629	5.611	5.126
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	362.160	184.639	17.155
	Sundry Debtors	270.543	183.127	216.396
	Cash & Bank Balances	37.139	12.087	43.500
	Other Current Assets	0.412	0.486	10.383
	Loans & Advances	21.620	1.341	0.734
Total Current Assets		691.874	381.680	288.168
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	183.878	43.839	139.114
	Other Current Liabilities	2.185	2.314	0.000
	Provisions	7.457	5.211	3.585
Total Current Liabilities		193.520	51.364	142.699
Net Current Assets		498.354	330.316	145.469
MISCELLANEOUS EXPENSES		0.953	1.143	1.334
TOTAL		667.944	484.583	318.290

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2370.000	1373.006	824.214
		Other Income	NA	7.873	2.843
		TOTAL (A)	NA	1380.879	827.057
Less	EXPENSES
		Materials consumed		1237.251	695.303
		Manufacturing Expenses		62.644	53.105
		Compensation to Employees		5.493	12.155
		Administrative Expenses		16.010	15.392
		Preliminary Expenses		0.190	0.191
		TOTAL (B)	NA	1321.588	776.146
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		98.878	59.291	50.911
Less	FINANCIAL EXPENSES (D)		36.439	22.933	17.673
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		62.439	36.358	33.238
Less/ Add	DEPRECIATION/ AMORTISATION (F)		21.367	23.556	26.204
	PROFIT BEFORE TAX (E-F) (G)		41.072	12.802	7.034
Less	TAX (H)		13.696	4.757	2.797
	PROFIT AFTER TAX (G-H) (I)		27.376	8.045	4.237
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		15.230	7.185	2.948
Less	APPROPRIATIONS
		Transfer to General Reserve	42.606	15.230	7.185
	BALANCE CARRIED TO THE B/S		0.000	0.000	0.000
	Earnings Per Share (Rs.)		63.67	18.71	9.85

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	0.58	0.51
Net Profit Margin (PBT/Sales)	(%)	1.73	0.93	0.85
Return on Total Assets (PBT/Total Assets}	(%)	4.80	2.42	1.55
Return on Investment (ROI) (PBT/Networth)		0.48	0.22	0.14
Debt Equity Ratio (Total Debt/Networth)		6.80	7.31	5.34
Current Ratio (Current Asset/Current Liability)		3.58	7.43	2.02

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2009	31.03.2010	31.03.2011
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	43.000	43.000	43.000
Reserves & Surplus	7.185	15.230	42.517
Net worth	50.185	58.230	85.517
Secured Loans	263.977	371.375	520.100
Unsecured Loans	3.790	54.515	61.775
Total borrowings	267.767	425.890	581.875
Debt/Equity ratio	5.336	7.314	6.804

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2009	31.03.2010	31.03.2011
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	824.214	1,373.006	2,370.000
		66.584	72.614

NET PROFIT MARGIN

Net Profit Margin	31.03.2009	31.03.2010	31.03.2011
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	824.214	1,373.006	2,370.000
Profit	4.237	8.045	27.376
	0.51%	0.59%	1.16%

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	No
10]	Designation of contact person	No
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	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	No
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	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90257190	13.07.2012 *	1,082,700,000.00	CANARA BANK	HINDU COLLEGE HIGH SCHOOL CAMPUS, GUNTUR - 522003, ANDHRA PRADESH, INDIA	B57267858

* Date of charge modification

UNSECURED LOANS

Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Loans directors unsecured	0.073	2.771
Other debt unsecured	61.702	51.744
Total	61.775	54.515

CONTINGENT LIABILITIES: [AS ON 31.03.2011]

The following guarantees have been obtained from Canara Bank in pursuance of which the contingent liabilities are amounted Rs.5.795 Millions as Bank Guarantee with Canara Bank.

FIXED ASSETS:

· Land

· Factory building

· Other building

· Plant machinery

· Office equipments

· Computer equipments

· Other equipments

· Furniture fixtures

· Vehicles

· Leasehold properties

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.60.17
UK Pound	1	Rs.99.39
Euro	1	Rs.83.09

INFORMATION DETAILS

Information Gathered by :	HTL
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		28

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.