MIRA INFORM REPORT

Report No. :	318530
Report Date :	27.04.2015

IDENTIFICATION DETAILS

Name :	VARITURN ELCTRO PRODUCTS PRIVATE LIMITED
Registered Office :	Plot No.196, Phase - II, IDA, Cherlapally, Hyderabad – 500051, Telangana
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	24.06.1988
Com. Reg. No.:	01-008791
Capital Investment / Paid-up Capital :	Rs. 10.000 Million
CIN No.: [Company Identification No.]	U31300TG1988PTC008791
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	HYDS02984C
PAN No.: [Permanent Account No.]	AACCS8476K
Legal Form :	Private Limited Liability Company
Line of Business :	Variturn Electro Products Private Limited is engaged in manufacturing of Wire Wound Resistors.
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 65000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Sales turnover of the company has declined which has resulted dip in profit of the company. Rating further constrained on account of company’s moderate financial risk profile and leverage capital structure of the company. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. 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 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

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. Sai
Designation :	Accounts Department
Contact No.:	91-40-27261308
Date :	24.04.2015

LOCATIONS

Registered Office /Factory :	Plot No.196, Phase - II, IDA, Cherlapally, Hyderabad – 500051, Telangana, India
Tel. No.:	91-40-27261308
Mobile No.:	91-9849006009 (Mr. K. K. Raju)
Fax No.:	91-40-27261309
E-Mail :	info@variturn.com accounts@variturn.com
Website :	http://www.variturn.com
Location :	Owned and Commercial

DIRECTORS

As on: 29.09.2014

Name :

Mr. Krishnam Raju Kosuru

Designation :

Managing Director

Address :

P No.: - 490 and 491 F. no.: - 202, Sri Sai Sudha Apartments Defence Colony, Besidenered meet police Station, Hyderabad – 500094 Andra Pradesh, India

Date of Birth/Age :

11.05.1957

Date of Appointment :

25.03.2003

DIN No. :

00589271

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	U29309TG1988PTC008162	SCANAVE ELECTRONICS PVT LTD	Managing director	07/01/1988	07/01/1988	-	Active	NO
2	U31300TG1988PTC008791	VARITURN ELECTRO PRODUCTS PVT LTD	Managing director	25/03/2003	25/03/2003	-	Active	NO
3	U99999TG1986PTC007046	VARITURN ELECTRONICS PRIVATE LIMITED	Director	30/12/2006	14/10/2006	-	Active	NO
4	U74900TG2008PTC058872	Datalog Controls And Solutions Private Limited	Additional director	25/08/2009	25/08/2009	-	Active	NO

Name :

Mr. Kosuru Satyanarayan Raju

Designation :

Additional Director

Address :

Flat No. 10319-79 / 5964, Arca Residency, Ayodhya Nagar Kapra Ecil Post, Hyderabad, Ranngareddy District - 500062, Andhra Pradesh, India

Date of Birth/Age :

11.05.1957

Date of Appointment :

09.09.2009

DIN No. :

02533584

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	U29309TG1988PTC008162	SCANAVE ELECTRONICS PVT LTD	Additional director	01/08/2008	01/08/2008	-	Active	NO
2	U31300TG1988PTC008791	VARITURN ELECTRO PRODUCTS PVT LTD	Additional director	09/09/2009	09/09/2009	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Sai
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2015

Names of Shareholders	No. of Shares	%age
Krishnam Raju S/o. K. Kamaraju	587500	58.75
Ram Kumar S/o. Anjameya Shetty	80769	8.08
Mayura W/o. Ram Jayam	80769	8.08
Srinivas S/o. Ranga Rao	38462	3.85
Satyanarayana Raju S/o. K Kamaraju	12500	1.25
Mayura Krishna Anjali Estate	200000	20.00
Total	1000000	100.00

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	20.00
Directors or relatives of Directors	80.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Variturn Electro Products Private Limited is engaged in manufacturing of Wire Wound Resistors.

Products :

· Wire Wound Resistors

• Silicon Coated
• Ceramic Encased
• Flame Proof
• Aluminium Housed
• High Wattage
• High Power Resistors

· Load Banks

• Dynamic Braking
• Neutral Earthing Resistors
• Motor Starting Resistors

· Power Rheostats

· Linear Rheostats

· Rotary rheostats

· Current Sensing Resistors

• Shunt Resistors

Item Code No. (ITC Code)	8533.00
Product Description	Wire Wound Resistors and Rheostats

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

Finished Goods

Countries :

• Singapore
• Malaysia
• Germany
• Iran

Imports :

Products :

Raw Material

Countries :

• Japan
• Taiwan

Terms :

Selling :

Cash and Cheque

Purchasing :

Cash and Cheque

GENERAL INFORMATION

Suppliers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Experience :	Not Available
Maximum Limit Dealt :	Not Available

Customers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Experience :	Not Available
Maximum Limit Dealt :	Not Available

No. of Employees :

150 (Approximately)

Bankers :

• State Bank of Hyderabad, MCG Kushaiguda Branch, A-3-4/A, EC Complex , ECIL Post, Kushaiguda, Hyderabad – 500062, Andhra Pradesh, India

• ICICI Bank
• Kotak Mahindra Bank

Facilities :

(Rs. In Millions)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
From Bank /Financial Institutions
- State Bank of Hyderabad	0.127	1.797
- APSFC	0.334	1.751
Other loans and Advances
- ICICI Bank	0.131	0.465
- Kotak Mahindra Bank	1.294	0.246
SHORT TERM BORROWING
Loans Repayable on demand from Bank
- Cash Credit from State Bank of Hyderabad	16.014	19.736
- SME Credit from State Bank of Hyderabad	2.511	2.519
Total	20.411	26.514

Auditors :
Name :	GMK ASSOCIATES Chartered Accountants
Address :	607, Raghava Ratna Towers, Chirag Ali Lane, ABIDS, Hyderabad – 500 001, Andhra Pradesh, India
Tel. No.:	91-40-23201357 / 30621357
Fax No.:	91-40-23204434
E-Mail :	gmkassociates@rediffmail.com gmkassociates@gnail.com
PAN No. :	AACFG7582R
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

As on : 29.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs. 10.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs. 10.000 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	10.000	10.000	10.000
(b) Reserves & Surplus	13.075	12.999	11.969
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	23.075	22.999	21.969
(3) Non-Current Liabilities
(a) long-term borrowings	12.662	17.532	19.403
(b) Deferred tax liabilities (Net)	0.047	0.054	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	12.709	17.586	19.403
(4) Current Liabilities
(a) Short term borrowings	18.526	22.256	10.356
(b) Trade payables	5.385	9.434	6.435
(c) Other current liabilities	6.088	5.786	4.494
(d) Short-term provisions	0.000	0.112	0.006
Total Current Liabilities (4)	29.999	37.588	21.291
TOTAL	65.783	78.173	62.663
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	22.765	23.729	24.925
(ii) Intangible Assets	0.011	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.009
(d) Long-term Loan and Advances	0.150	0.015	0.022
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	22.926	23.744	24.956
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	25.862	24.027	22.175
(c) Trade receivables	9.402	24.116	14.472
(d) Cash and cash equivalents	0.642	5.120	0.314
(e) Short-term loans and advances	6.951	1.166	0.746
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	42.857	54.429	37.707
TOTAL	65.783	78.173	62.663

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	54.582	75.561	74.613
		Other Income	0.461	0.984	0.195
		TOTAL	55.043	76.545	74.808
Less	EXPENSES
		TOTAL	48.878	68.298	66.612
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		6.165	8.247	8.196
Less	FINANCIAL EXPENSES		3.548	4.218	3.664
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		2.617	4.029	4.532
Less/ Add	DEPRECIATION/ AMORTISATION		2.497	2.522	3.075
	PROFIT BEFORE TAX		0.120	1.507	1.457
Less	TAX		0.043	0.476	0.371
	PROFIT AFTER TAX		0.077	1.031	1.086
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	0.868	0.718	0.406
	TOTAL EARNINGS		0.868	0.718	0.406
	IMPORTS
		Raw Materials	0.000	6.877	7.253
	TOTAL IMPORTS		0.000	6.877	7.253
	Earnings Per Share (Rs.)		0.08	1.03	1.09

Expected Sales (2014-15) : Rs. 55.000 Million

The above information has been parted by Mr. Sai (Account Department)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	0.14	1.36	1.46
Operating Profit Margin (PBDIT / Sales)	(%)	11.29	10.91	10.98
Return on Total Assets (PBT/Total Assets}	(%)	0.18	1.93	2.33
Return on Investment (ROI) (PBT/Networth)		0.01	0.07	0.07
Debt Equity Ratio (Total Debt /Networth)		1.35	1.73	1.35
Current Ratio (Current Asset/Current Liability)		1.43	1.45	1.77

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	10.000	10.000	10.000
Reserves & Surplus	11.969	12.999	13.075
Net worth	21.969	22.999	23.075
long-term borrowings	19.403	17.532	12.662
Short term borrowings	10.356	22.256	18.526
Total borrowings	29.759	39.788	31.188
Debt/Equity ratio	1.355	1.730	1.352

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	74.613	75.561	54.582
		1.271	(27.764)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	74.613	75.561	54.582
Profit	1.086	1.031	0.077
	1.46%	1.36%	0.14%

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	No
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

Review of Operations

The Company has successfully completed its 26^th Year of operations and during the year under review the company’s turnover dropped due to over recession in the power and electronic industry in India. In the current financial year the companies turnover during the five months ended is recorded a growth and the directors are hopeful of the achieving the turnover 2012-13 level there by achieving good margins.

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Loans and Advances from Related Parties	10.774	13.274

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10151772	25/03/2009	7,300,000.00	ANDHRA PRADESH STATE FINANCE CORPORATION	5-9-194, CHIRAG ALI LANE, ABIDS, P.B, NO.165, HYD  ERABAD, Andhra Pradesh - 500001, INDIA	A59083493
2	90135498	21/12/1996 *	1,000,000.00	STATE BANK OF HYDERABAD	KUSHIGUDA BRANCH, HYDERABAD, Andhra Pradesh - 5007  62, INDIA	-
3	90135376	08/06/1994	100,000.00	STATE BANK OF HYDERABAD	KUSHALGUDA BRANCH, HYDERABAD, Andhra Pradesh - 500  762, INDIA	-
4	90135186	02/01/2014 *	27,100,000.00	STATE BANK OF HYDERABAD	MCG KUSHAIGUDA BRANCH, A-3-4/A, EC COMPLEX,ECIL P  OST, KUSHAIGUDA, HYDERABAD, Andhra Pradesh - 50006  2, INDIA	B94991502

* Date of charge modification

FIXED ASSETS

• Land and Land Development
• Plant and Equipment
• Mould Dies and Jigs
• Instruments
• Electrical Installations
• Furniture and Fixtures
• Office Equipment
• Vehicles
• Computer Buildings

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.63.40
UK Pound	1	Rs.95.42
Euro	1	Rs.68.48

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	KAR
Report Prepared by :	DDD

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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 unfavorable 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.