MIRA INFORM REPORT

Report No. :	311641
Report Date :	14.03.2015

IDENTIFICATION DETAILS

Name :	RAMA SPINNERS PRIVATE LIMITED
Registered Office :	2-1-113,Tobacco Bazar, Secunderabad – 500003, Telangana
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	22.05.1990
Com. Reg. No.:	36-011312
Capital Investment / Paid-up Capital :	Rs.34.800 Million
CIN No.: [Company Identification No.]	U18100AP1990PTC011312
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Yarns and Threads, Cotton Yarn, Dyed Yarn and Silk Yarn
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 510000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Management has reported decent profitability for the year 2013-14. The financial position of company seems to be sound. Trade relations are fair. Business is active. Payments are reported to be usually correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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

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.

LOCATIONS

Registered Office :	2-1-113,Tobacco Bazar, Secunderabad – 500003, Telangana, India
Tel. No.:	91-40-65413865
Fax No.:	91-40-23447321
E-Mail :	rakhiagarwal79@yahoo.com sunilsanjay.ca@gmail.com
Corporate Office :	Plot No. 5-4-83, M.G. Road, Opposite Raniganj Bus Stand  Secunderabad – 500003, Telangana, India

DIRECTORS

AS ON 30.09.2014

Name :	Mr. Gopalbabu Agarwal
Designation :	Managing Director
Address :	1-8-673, Azamabad, Hyderabad – 500020, Andhra Pradesh, India
Date of Birth/Age :	05.03.1965
Date of Appointment :	24.05.1991
DIN No.:	00867638
Name :	Mr. Ratan Lal Sharma
Designation :	Director
Address :	Nacharam Mandal, Hyderabad – 502336, Andhra Pradesh, India
Date of Birth/Age :	04.05.1965
Date of Appointment :	28.02.1997
DIN No.:	03605372

MAJOR SHAREHOLDERS

AS ON 30.09.2014

Names of Shareholders	No. of Shares
Gopal Babu Agarwal	9339
Sunitha Agarwal	1101
Agarwal Foundries	790
Brij Gopal Beriwala	20
Renu Beriwala	65
Premlatha	1340
Snehalatha	1845
Maneklal Agarwal(HUF)	5800
Bolasariya Holding Private Limited	250
Bhoomi Vypar Private Limited	1100
Lactro Dryer Marketing Private Limited	1150
Maa Santoshi International Limited	250
Mrigiya Electronic Industries Private Limited	500
Singdha Prexim Private Limited	500
Welcome Vinimay India Limited	250
Build com Finance Limited	500
Handsome Sales Private Limited	300
Sarveshrestha Traders Private Limited	700
Pushpanjali Hi Rise Private Limited	200
Pyramid Suppliers Private Limited	300
Evergrow Deal Mark	250
Kingfisher Distributors Private Limited	250
Dhanlakshmi Merchandise Private Limited	500
ServSiddhi Dealer Private Limited	1000
Diya Commosales Private Limited	750
Pramod Kumar Agarwal	5750
Total	34800

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2014

Category	Percentage
Bodies corporate	30.12
Directors or relatives of Directors	69.88
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Yarns and Threads, Cotton Yarn, Dyed Yarn and Silk Yarn
Products :	Cotton Yarn Dyed Yarn Silk Yarn
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Not Available
Purchasing :	Not Available

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Not Available

Bankers :

· State Bank of Hyderabad, Gunfoundry Branch, Hyderabad - 500001, Andhra Pradesh, India

· State Bank of India, Industrial Finance Branch, Raj Bhavan Road, Somajiguda, Hyderabad - 500082, Andhra Pradesh, India

· Andhra Bank, Pattabhi Bhavan Branch, Dr. Pattabhi Bhavan, Saifabad, Hyderabad - 500004, Andhra Pradesh, India

Facilities :

SECURED LOANS	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Rupee term loans from Banks
HDFC Car loan	0.029	0.192
HDFC Indica	0.188	0.341
HDFC Swift car	0.633	0.000
SBH Bank term loan	48.110	0.000
Short Term Borrowings
Loans repayable on demand from banks
Balance in current accounts	7.952	16.533
Loan repayable on demand from banks	155.205	91.695
Total	212.117	108.761

Banking Relations :	--
Auditors :
Name :	Srinivasa Rao Veeramachanani Chartered Accountants
Address :	Flat No.204, SSR Vijetha Royal Empire, Dilsukhnagar, Hyderabad – 500036, Andhra Pradesh, India
PAN No.:	ADOPA7064R
Membership :	--
Related Party :	· Sitaram Spinners Private Limited · Pramod Trading Company

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
40000	Equity Shares	Rs.1000/- each	Rs.40.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
34800	Equity Shares	Rs.1000/- each	Rs.34.800 Million

FINANCIAL DATA

[all figures are in Rupees Million]

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	34.800	29.050	29.050
(b) Reserves & Surplus	141.958	113.173	107.176
(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)	176.758	142.223	136.226
(3) Non-Current Liabilities
(a) long-term borrowings	66.762	0.533	30.929
(b) Deferred tax liabilities (Net)	7.385	4.733	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)	74.147	5.266	30.929
(4) Current Liabilities
(a) Short term borrowings	163.157	108.228	0.000
(b) Trade payables	17.962	117.501	0.000
(c) Other current liabilities	12.008	0.771	52.459
(d) Short-term provisions	2.613	0.735	4.832
Total Current Liabilities (4)	195.740	227.235	57.291
TOTAL	446.645	374.724	224.446
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	113.383	39.218	36.102
(ii) Intangible Assets	0.000	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	44.000	44.000	44.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	157.383	83.218	80.102
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	158.053	108.520	114.771
(c) Trade receivables	94.373	161.635	7.356
(d) Cash and cash equivalents	0.855	0.394	0.453
(e) Short-term loans and advances	5.247	1.066	21.764
(f) Other current assets	30.734	19.891	0.000
Total Current Assets	289.262	291.506	144.344
TOTAL	446.645	374.724	224.446

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income
		Other Income
		TOTAL (A)	371.767	402.883	402.013
Less	EXPENSES
		TOTAL (B)	349.029	390.115	386.450
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		22.738	12.768	15.563
Less	FINANCIAL EXPENSES (D)		5.338	2.978	6.376
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		17.400	9.790	9.187
Less	DEPRECIATION/ AMORTISATION (F)		7.908	3.272	2.731
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		9.492	6.518	6.456
Less	TAX (H)		3.103	0.522	0.364
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		6.389	5.996	6.092
	Earnings Per Share (Rs.)		183.59	--	--

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets)	(%)	2.36	1.97	3.58
Return on Investment (ROI) (PBT/Networth)		0.05	0.05	0.05
Debt Equity Ratio (Total Debt /Networth)		1.30	0.76	0.23
Current Ratio (Current Asset/Current Liability)		1.48	1.28	2.52

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Share Capital	29.050	29.050	34.800
Reserves & Surplus	107.176	113.173	141.958
Net worth	136.226	142.223	176.758
long-term borrowings	30.929	0.533	66.762
Short term borrowings	0.000	108.228	163.157
Total borrowings	30.929	108.761	229.919
Debt/Equity ratio	0.227	0.765	1.301

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Sales	402.013	402.883	371.767
		0.216	(7.723)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Sales	402.013	402.883	371.767
Profit	6.092	5.996	6.389
	1.52%	1.49%	1.72%

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

UNSECURED LOANS:

Particulars	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Loans and advances from related parties
Pramod Trading Company	12.500	0.000
Others
APCPDCL	5.302	0.000
Total	17.802	0.000

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Office Equipment

· Computer

· Vehicles

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.62.67
UK Pound	1	Rs.93.16
Euro	1	Rs.66.42

INFORMATION DETAILS

Analysis Done by :	SUC
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		44

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.