MIRA INFORM REPORT

Report No. :	313036
Report Date :	19.03.2015

IDENTIFICATION DETAILS

Name :	SUN AEROSPACE SYSTEMS LIMITED
Registered Office :	Plot No.32, Phase - 1, IDA Jeedimetla, Hyderabad – 500055, Telangana
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	17.11.1977
Com. Reg. No.:	36-002230
Capital Investment / Paid-up Capital :	Rs. 28.000 Million
CIN No.: [Company Identification No.]	U33126TG1977PLC002230
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of carbon composite products, Defense and Aerospace component products, etc.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 110000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating constrained on account of company’s moderate financial risk profile marked by low reserves and thin profitability margins 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 DECLINED BY

Name :	Mr. Sunkara Srihari
Designation :	Director
Contact No.:	91-9848037116
Date :	14.03.2015

LOCATIONS

Registered Office :	Plot No.32, Phase - 1, IDA Jeedimetla, Hyderabad – 500055, Telangana, India
Tel. No.:	Not Available
Mobile No.:	91-9848037116 (Mr. Shrihari Sankara)
Fax No.:	Not Available
E-Mail :	sunsapl@yahoo.com

DIRECTORS

As on 30.09.2014

Name :

Mr. Sunkara Apparao

Designation :

Managing director

Address :

Plot No. 45, Srinagar Colony, Hyderabad – 500073, Telangana, India

Date of Birth/Age :

20.01.1938

Date of Appointment :

17.11.1977

DIN No.:

00561727

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	U33126TG1977PLC002230	SUN AEROSPACE SYSTEMS LIMITED	Managing director	17-11-77	17-11-77	-	Active	NO
2	U35914TG1994PLC018975	SUNKAP AUTOMATION LIMITED	Managing director	20-12-94	20-12-94	-	Active	NO
3	U34100TG2001PLC037052	SUN BIOCHEM (INDIA) LIMITED	Director	23-07-01	23-07-01	-	Active	NO
4	U24219TG2002PTC039596	VISHAAL BIOCHEM PRIVATE LIMITED	Director	11-09-02	11-09-02	-	Active	NO

Name :

Mr. Sunkara Srihari

Designation :

Director

Address :

Plot No. 45, Srinagar Colony, Hyderabad – 500073, Telangana, India

Date of Birth/Age :

20.11.1968

Date of Appointment :

25.09.1994

DIN No.:

00561799

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	U33126TG1977PLC002230	SUN AEROSPACE SYSTEMS LIMITED	Director	25-09-94	25-09-94	-	Active	NO
2	U35914TG1994PLC018975	SUNKAP AUTOMATION LIMITED	Director	20-12-94	20-12-94	-	Active	NO
3	U34100TG2001PLC037052	SUN BIOCHEM (INDIA) LIMITED	Director	23-07-01	23-07-01	-	Active	NO
4	U24219TG2002PTC039596	VISHAAL BIOCHEM PRIVATE LIMITED	Director	11-09-02	11-09-02	-	Active	NO

Name :

Mr. Sunkara Jhansi Lakshmi

Designation :

Director

Address :

Plot No. 45, Srinagar Colony, Hyderabad – 500073, Telangana, India

Date of Birth/Age :

10.08.1946

Date of Appointment :

21.09.1994

DIN No.:

00561884

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	U33126TG1977PLC002230	SUN AEROSPACE SYSTEMS LIMITED	Director	21-09-94	21-09-94	-	Active	NO
2	U35914TG1994PLC018975	SUNKAP AUTOMATION LIMITED	Director	12-03-01	12-03-01	-	Active	NO
3	U34100TG2001PLC037052	SUN BIOCHEM (INDIA) LIMITED	Director	23-07-01	23-07-01	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Names of Shareholders	No. of Shares	%age holding
S.Appa Rao	194225	69.37
S.Venugopal	10133	3.62
S.Srihari	59133	21.12
S.Lavanya	10132	3.62
S.Jhansi Lakshmi	3776	1.35
Sunkara Sri Ananya	1404	0.50
Sunkara Aahana	1197	0.43
Total	280000	100.00

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2014

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of carbon composite products, Defense and Aerospace component products, etc.
Products :	Carbon composite products Defense and Aerospace component products
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Not Divulged

Bankers :

Syndicate Bank, R P Road, Secunderabad - 500003, Telangana, India

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Term loan – II (Secured by hypothecation of stock consisting of raw material stock in process and finished goods, hypothecation of present and future land, buildings, Plant and Machinery equitable mortgage of factory land and industrial building)	7.434	7.161
National Small Industrial Corporation Limited for Raw Material (Secured by bank guarantees)	29.698	29.539
Total	37.132	36.700

Banking Relations :	--
Auditors :
Name :	Anant Rao and Mallik Chartered Accountants
Address :	# B-409/410, Kushal Towers, Khairtabad, Hyderabad – 500004, Telangana, India
Tel. No.:	91-40-23320286
E-Mail :	Armcas@gmail.com
PAN N Income-tax PAN of auditor or auditor's firm :	AADFA0055G
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	--

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.100/- each	Rs. 50.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
280000	Equity Shares	Rs.100/- each	Rs. 28.000 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	28.000	28.000	28.000
(b) Reserves & Surplus	10.538	10.657	10.711
(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)	38.538	38.657	38.711
(3) Non-Current Liabilities
(a) long-term borrowings	109.681	81.599	50.733
(b) Deferred tax liabilities (Net)	0.000	0.000	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)	109.681	81.599	50.733
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	16.341	4.914	7.222
(c) Other current liabilities	69.372	74.539	81.970
(d) Short-term provisions	2.459	1.897	6.534
Total Current Liabilities (4)	88.172	81.350	95.726
TOTAL	236.391	201.606	185.170
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	68.928	78.512	47.192
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	72.936	0.000	85.694
(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	0.000	0.000	0.000
(e) Other Non-current assets	0.224	0.221	0.421
Total Non-Current Assets	142.088	78.733	133.307
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	69.386	92.802	7.782
(c) Trade receivables	1.666	16.415	31.865
(d) Cash and cash equivalents	3.215	3.319	3.042
(e) Short-term loans and advances	20.036	10.337	9.174
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	94.303	122.873	51.863
TOTAL	236.391	201.606	185.170

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	50.216	49.791	22.636
	Other Income	0.197	0.502	0.000
	TOTAL (A)	50.413	50.293	22.636
Less	EXPENSES
	Cost of Materials Consumed	49.521	50.709	0.128
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(31.010)	(30.094)	0.236
	Employees benefits expense	1.746	1.790	2.466
	Other expenses	1.375	0.847	1.586
	Profit on sale of asset	0.000	0.000	-0.129
	TOTAL (B)	21.632	23.252	4.287
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	28.781	27.041	18.349
Less	FINANCIAL EXPENSES (D)	19.278	21.890	12.568
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	9.503	5.151	5.781
Less/ Add	DEPRECIATION/ AMORTISATION (F)	9.301	4.883	5.650
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	0.202	0.268	0.131
Less	TAX (I)	0.039	0.000	0.024
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	0.163	0.268	0.107
	Earnings / (Loss) Per Share (Rs.)	0.58	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	0.32	0.54	0.47
Operating Profit Margin (PBIDT/Sales)	(%)	57.31	54.31	81.06
Return on Total Assets (PBT/Total Assets}	(%)	0.12	0.13	0.13
Return on Investment (ROI) (PBT/Networth)		0.01	0.01	0.00
Debt Equity Ratio (Total Debt /Networth)		2.85	2.11	1.31
Current Ratio (Current Asset/Current Liability)		1.07	1.51	0.54

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	28.000	28.000	28.000
Reserves & Surplus	10.711	10.657	10.538
Net worth	38.711	38.657	38.538
long-term borrowings	50.733	81.599	109.681
Short term borrowings	0.000	0.000	0.000
Total borrowings	50.733	81.599	109.681
Debt/Equity ratio	1.311	2.111	2.846

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	22.636	49.791	50.216
		119.964	0.854

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	22.636	49.791	50.216
Profit	0.107	0.268	0.163
	0.47%	0.54%	0.32%

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	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	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 LOAN

PARTICULARS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Unsecured loans from directors	55.850	33.638
Unsecured loans from others	16.699	11.261
Total	72.549	44.899

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10352267	30/03/2012	20,000,000.00	SYNDICATE BANK	R P ROAD BRANCH, R P ROAD, SECUNDERABAD, ANDHRA P RADESH - 500003, INDIA	B38414223
2	10047327	27/08/2011 *	169,000,000.00	SYNDICATE BANK	R P ROAD, SECUNDERABAD, ANDHRA PRADESH - 500003, I NDIA	B23233141
3	90140139	13/09/1999	2,500,000.00	STATE BANK OF HYDERABAD	SANATHNAGAR BRANCH, HYDERABAD, ANDHRA PRADESH - 50 0018, INDIA	-
4	90136810	24/03/1999	10,045,000.00	A.P. STATE FINANCIAL CORPORATION	CHIRAG ALI LANE, HYDERABAD, ANDHRA PRADESH, INDIA	-
5	90139171	07/03/1998 *	6,300,000.00	STATE BANK OF HYDERABAD	QSANATHNAGAR BRANCH, HYDERABAD, ANDHRA PRADESH, IN DIA	-
6	90139170	11/02/2004 *	26,700,000.00	STATE BANK OF HYDERABAD	SANATHNAGAR BRANCH, HYDERABAD, ANDHRA PRADESH, IND IA	-
7	90139047	17/07/1996	2,000,000.00	STATE BANK OF HYDERABAD	SANATHNAGAR BRANCH, HYDERABAD, ANDHRA PRADESH, IND IA	-
8	90137208	11/10/1993 *	6,300,000.00	STATE BANK OF HYDERABAD	SABATHNAGAR BRANCH, HYDERABAD, ANDHRA PRADESH, IND IA	-
9	90138666	08/10/2003 *	6,300,000.00	STATE BANK OF HYDERABAD	SANATHNAGAR BRANCH, HYDERABAD, ANDHRA PRADESH, IND IA	-
10	90140422	27/02/1988	948,070.00	DCL FINANCE LTD.	DECCAN CHAMBERS, SOMAJIGUDA, HYDERABAD, ANDHRA PR ADESH - 500482, INDIA	-

* Date of charge modification

CONTINGENT LIABILITIES:

(Rs. in million)

PARTICULARS	31.03.2014	31.03.2013
Bank Gurantees	30.000	30.000

FIXED ASSETS

• Land
• Factory Building
• Office Building
• Plant and Machinery
• Office Equipment
• Vehicles
• Computers
• Testing Equipment
• Temporary Structure

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.92.46
Euro	1	Rs.66.34

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	KSR
Report Prepared by :	KVT

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	3
--PROFITABILITY	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	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		30

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.