MIRA INFORM REPORT

Report Date :

15.10.2014

IDENTIFICATION DETAILS

Name :	SAGAR ASIA PRIVATE LIMITED (w.e.f. 21.05.2010)
Formerly Known As :	ZARGES TUBESCA INDIA PRIVATE LIMITED (w.e.f. 17.04.2008) ZARGES TUBESCA ALUMINIUM SYSTEMS PRIVATE LIMITED
Registered Office :	201, 2^nd Floor, Mayfair Complex, S P Road, Hyderabad – 500003, Telangana
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	07.05.2007
Com. Reg. No.:	36-064837
Capital Investment / Paid-up Capital :	Rs.77.931 Millions
CIN No.: [Company Identification No.]	U29268TG2007FTC064837
PAN No.: [Permanent Account No.]	AAACZ2890G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Aluminium Ladders, Aluminium Scaffolding Ladders.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Management has filed the annual return for FY13, whereas has failed to file any financial statements with the statutory authorities. As per available, the company possesses a deteriorated financial profile marked by partial recovery of its accumulated losses on the back of modest profitability reported in the books. Management has witnessed an acceptable turnover but has reported a drastic dip in its net profitability during FY12. However, trade relations are fair. Business is active. Payment terms are reported as slow but correct. In view of experienced promoters and reputed client base, the company can be considered for business dealings 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

N E W S

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

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

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

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

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

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

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

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL SME
Rating	SE2B
Rating Explanation	Moderate financial strength and high performance capacity.
Date	July 2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Venu Gopal
Designation :	Manager
Contact No.:	91-9701000949
Date :	14.10.2014

LOCATIONS

Registered Office :	201, 2^nd Floor, Mayfair Complex, S P Road, Hyderabad – 500003, Telangana, India
Tel. No.:	91-40-27728500
Mobile No.:	91-9701000949 (Mr. Venu Gopal)
Fax No.:	91-40-27728529
E-Mail :	t.anitha@sagarasia.com
Website :	www.sagarasia.com
Location :	Rented
Factory :	11/P and 12/P, Survey No.855, Medchal, Greater Hyderabad, District RR, Andhra Pradesh, India
Tel. No.:	91-8418-225720
Fax No.:	91-8418-225719

DIRECTORS

AS ON 29.11.2013

Name :

Mr. Veesamsetty Vidyasagar

Designation :

Managing Director

Address :

H.No.7, Canton Park, Opposite Chandini Dhaba, Kompally, Secunderabad – 500014, Andhra Pradesh, India

Date of Birth/Age :

11.06.1959

Date of Appointment :

07.05.2007

DIN No.:

00051738

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	U27203TG1987PLC007108	ALTEC CORPORATION LIMITED	Managing director	21/01/1987	21/01/1987	14/10/2009	Active	NO
2	U72200TG2004PTC042940	GT ALMAX DIES AND TOOLINGS (INDIA) PRIVATE LIMITED	Director	24/03/2004	24/03/2004	17/02/2010	Active	NO
3	U29268TG2007FTC064837	SAGAR ASIA PRIVATE LIMITED	Managing director	07/05/2007	07/05/2007	-	Active	NO
4	U29110TG2010PTC067994	HAILO SAGAR WIND SYSTEMS PRIVATE LIMITED	Managing director	17/06/2010	19/04/2010	-	Active	NO
5	U27109TG1999PLC032962	SATYA SURYA ALUMINIUM INDUSTRIES LIMITED	Additional director	27/11/2012	27/11/2012	28/03/2013	Active	NO

Name :

Mr. Veesamsetty Jayasri

Designation :

Director

Address :

H.No.7, Canton Park, Opposite Chandini Dhaba, Kompally, Secunderabad – 500014, Andhra Pradesh, India

Date of Birth/Age :

03.10.1966

Date of Appointment :

30.09.2010

DIN No.:

02526372

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	U28110TG2009PTC063909	INDO FEATHERLITE ALUMINIUM SPECIALITIES PRIVATE LIMITED	Director	06/06/2009	06/06/2009	-	Under Process of Striking off	NO
2	U28910TG2009PTC064074	HISAFE ACCESS EQUIPMENT PRIVATE LIMITED	Director	19/06/2009	19/06/2009	-	Active	NO
3	U29268TG2007FTC064837	SAGAR ASIA PRIVATE LIMITED	Director	30/09/2010	25/11/2009	-	Active	NO
4	U29110TG2010PTC067994	HAILO SAGAR WIND SYSTEMS PRIVATE LIMITED	Director	19/04/2010	19/04/2010	17/06/2010	Active	NO

KEY EXECUTIVES

Name :	Mr. Venu Gopal
Designation :	Manager

MAJOR SHAREHOLDERS

AS ON 29.11.2013

Names of Shareholders	No. of Shares	% of Holding
Veesamsetty Vidyasagar	50941	65.37
Veesamsetty Jayasri	26990	34.63
Total	77931	100.00

Equity Share Break up (Percentage of Total Equity)

AS ON 29.11.2013

Category	Percentage
Directors or relatives of Directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Aluminium Ladders, Aluminium Scaffolding Ladders.
Exports :
Products :	Finished Goods
Countries :	· USA · UAE · Gulf Country
Imports :
Products :	Raw Material
Countries :	Germany
Terms :
Selling :	Cash, Cheque and Credit (30 / 60 Days)
Purchasing :	Cash, Cheque and Credit (30 / 60 Days)

GENERAL INFORMATION

Customers :

Wholesalers, Retailers

No. of Employees :

200 (Approximately)

Bankers :

IDBI Bank, Cuffe Parade Branch, Mumbai, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Rupee term loans from banks	5.467	2.317
Short Term Borrowings
Loans repayable on demand from banks	12.281	0.000
Total	17.748	2.317

Banking Relations :	--
Auditors :
Name :	Sunil and Sanjay Chartered Accountants
Address :	2016 and 2017, II Floor, Emerald House, S D Road, Secunderabad – 500003, Telangana, India
PAN No.:	AAIFS8895H
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	Asian Aluminium Limited GT Almax Dies And Toolings (India) Private Limited

CAPITAL STRUCTURE

AS ON 29.11.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.1000/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
77931	Equity Shares	Rs.1000/- each	Rs.77.931 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	77.931	77.931
(b) Reserves & Surplus	(28.960)	(33.319)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	48.971	44.612
(3) Non-Current Liabilities
(a) long-term borrowings	49.777	44.065
(b) Deferred tax liabilities (Net)	1.123	0.925
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	50.900	44.990
(4) Current Liabilities
(a) Short term borrowings	12.281	0.000
(b) Trade payables	39.988	30.919
(c) Other current liabilities	14.037	11.942
(d) Short-term provisions	5.399	3.679
Total Current Liabilities (4)	71.705	46.540
TOTAL	171.576	136.142
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	31.378	29.111
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	3.881	3.838
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	15.181	2.409
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	50.440	35.358
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	38.479	32.556
(c) Trade receivables	33.961	36.388
(d) Cash and cash equivalents	34.055	26.139
(e) Short-term loans and advances	7.068	2.701
(f) Other current assets	7.573	3.000
Total Current Assets	121.136	100.784
TOTAL	171.576	136.142

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		77.931
2] Share Application Money		0.000
3] Reserves & Surplus		17.228
4] (Accumulated Losses)		0.000
NETWORTH		95.159
LOAN FUNDS
1] Secured Loans		0.868
2] Unsecured Loans		34.889
TOTAL BORROWING		35.757
DEFERRED TAX LIABILITIES		0.310
TOTAL		131.226
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		32.289
Capital work-in-progress		3.682
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	31.915
	Sundry Debtors	22.173
	Cash & Bank Balances	1.887
	Other Current Assets	0.000
	Loans & Advances	7.984
Total Current Assets		63.959
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000
	Other Current Liabilities	24.658
	Provisions	1.587
Total Current Liabilities		26.245
Net Current Assets		37.714
MISCELLANEOUS EXPENSES		0.000
PROFIT LOSS DEBIT BALANCE		57.541
TOTAL		131.226

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	219.087	162.950	98.820
		Other Income	1.641	3.189	13.232
		TOTAL	220.728	166.139	112.052
Less	EXPENSES
		TOTAL	213.065	156.274	115.460
	PROFIT/(LOSS) BEFORE TAX		7.663	9.865	(3.408)
Less	TAX		3.303	2.870	(1.017)
	PROFIT/(LOSS) AFTER TAX		4.360	6.995	(2.391)
	Earnings Per Share (Rs.)		55.95	89.76	(30.68)

Particulars	31.03.2014	31.03.2013
Sales Turnover (Approximately)	220.000	Not Divulged

The above information has been parted by Mr. Venu Gopal (Manager)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.98	4.21	(2.13)
Net Profit Margin (PBT/Sales)	(%)	3.50	6.05	(3.45)
Return on Total Assets (PBT/Total Assets}	(%)	4.57	7.46	(3.54)
Return on Investment (ROI) (PBT/Networth)		0.16	0.22	(0.04)
Debt Equity Ratio (Total Debt /Networth)		1.27	0.99	0.38
Current Ratio (Current Asset/Current Liability)		1.69	2.17	2.44

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012
	Rs. In Millions	Rs. In Millions
Share Capital	77.931	77.931
Reserves & Surplus	(33.319)	(28.960)
Net worth	44.612	48.971
long-term borrowings	44.065	49.777
Short term borrowings	0.000	12.281
Total borrowings	44.065	62.058
Debt/Equity ratio	0.988	1.267

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2010	31.03.2011	31.03.2012
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	98.820	162.950	219.087
		64.896	34.450

NET PROFIT MARGIN

Net Profit Margin	31.03.2010	31.03.2011	31.03.2012
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	98.820	162.950	219.087
Profit	(2.391)	6.995	4.360
	(2.42%)	4.29%	1.99%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	----------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------
26]	Buyer visit details	----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	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

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Deposits	0.500	0.500
Loans and advances from directors	8.405	5.458
Other loans and advances	35.405	35.790
Total	44.310	41.748

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10481726	05/03/2014	35,000,000.00	IDBI BANK LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B98155435

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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 records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.25
UK Pound	1	Rs.98.68
Euro	1	Rs.77.60

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	SUB
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--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	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		31

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.