MIRA INFORM REPORT

Report No. :	323568
Report Date :	20.05.2015

IDENTIFICATION DETAILS

Name :	SPARKVEE FINE CHEMICALS PRIVATE LIMITED

Registered Office :	5-12-186/5, Mathasri Residency, Moulali, Hyderabad – 500040, Telangana
Tel No.:	91-40-40266512

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	27.04.2009

Com. Reg. No.:	36-063455

Capital Investment / Paid-up Capital :	Rs.10.675 Million

CIN No.: [Company Identification No.]	U24297TG2009PTC063455

TIN No.:	Not Available

IEC No.:	Not Available

TAN No.: [Tax Deduction & Collection Account No.]	HYDS25408F

PAN No.: [Permanent Account No.]	AANCS0254L

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturing of Chemical Products.

No. of Employees :	14 (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 36000

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is an established company having moderate track record. For the financial year ended 2014, the company has reported decent operational performance and it has achieved topline growth of 48.14%. Profitability margins of the company stood at 2.40%. However, rating is constrained on account of company’s moderate financial risk profile marked by leverage capital structure and low reserves of the company. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. In view leverage balance sheet profile, 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 – March 31, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

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.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Mohan
Designation :	Accountant
Contact No.:	91-40-40266512
Date :	19.05.2015

LOCATIONS

Registered Office :	5-12-186/5, Mathasri Residency, Moulali, Hyderabad – 500040, Telangana, India
Tel. No.:	91-40-40266512 / 27120511
Fax No.:	Not Available
E-Mail :	chellurisurya@gmail.com mohan@sparkvee.com veena@sparkvee.com
Website :	http://sparkvee.in
Location :	Owned

Factory :	Plot No.: 55, 56, 71 and 72, KIABD Industrial Area, Raichur Growth Centre, Taluka and District Raichur - 584134, Karnataka, India
Tel. No.:	91-8532-280027

DIRECTORS

As on 30.09.2014

Name :

Mr. Ramesh Kumar Pangnuri

Designation :

Director

Address :

5-12-186/5, Mathasri Residency, Moulali, Hyderabad - 500040, Telangana, India

Date of Birth/Age :

19.07.1962

Date of Appointment :

27.04.2009

DIN No.:

02580774

Other Directorship:

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

U24297TG2009PTC063455

SPARKVEE FINE CHEMICALS PRIVATE LIMITED

Director

27/04/2009

Active

U24100GJ2009PTC057201

MABHIKA PHARMA AND CHEMICALS PRIVATE LIMITED

Director

09/06/2009

Active

Name :

Mrs. Veena Pangnuri

Designation :

Director

Address :

5-12-186/5, Mathasri Residency, Moulali, Hyderabad - 500040, Telangana, India

Date of Birth/Age :

07.09.1963

Date of Appointment :

27.04.2009

DIN No.:

02581613

Name :

Mrs. Smita Shetty

Designation :

Director

Address :

9,Shri Ganesh Darshan Apartments, Daxini Society, Maninagar, Ahmedabad - 380008, Gujarat, India

Date of Birth/Age :

13.03.1968

Date of Appointment :

30.08.2010

DIN No.:

02584161

Other Directorship:

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

U24100GJ2009PTC057201

MABHIKA PHARMA AND CHEMICALS PRIVATE LIMITED

Director

09/06/2009

Active

U24297TG2009PTC063455

SPARKVEE FINE CHEMICALS PRIVATE LIMITED

Director

30/09/2010

30/08/2010

Active

KEY EXECUTIVES

Name :	Mr. Mohan
Designation :	Accountant

MAJOR SHAREHOLDERS

As on 30.09.2014

Names of Shareholders		No. of Shares
Ramesh Kumar Pangnuri		927500
Veena Pangnuri		10500
Smita Shetty		35000

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 :	Manufacturing of Chemical Products.

Products :	Chemical Products

Brand Names :	--

Agencies Held :	--

Exports :	Not Divulged

Imports :	Not Divulged

Terms :
Selling :	Cash and Cheque

Purchasing :	Cash and Cheque

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Balaji Formulation
Sanjay Chemicals
Astia Enterprises
Brijesh Roadways
Chetna Agencies
Desai Agencies
Euro Labs
Gurukrupa
Invent Chemicals
GV Engg Work

Customers :

Holo Source
Choice Organics Private Limited
Cordite Technologies Private Limited
Sanmar Speciality Chemicals Private Limited
Sasank Biotech Private Limited
Swiss Glascoat Equipment’s Limited
Dr Reddy Laboratories Private Limited
Jayasaketh Chemicals
Antichem Equipment’s
Gurukrupa

No. of Employees :

14 (Approximately)

Bankers :

Banker Name	Andhra Bank
Branch Address	R.P. Road Branch, Secunderabad - 500003,Telangana, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

SECURED LOANS	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
LONG TERM BORROWINGS
Andhra Bank 050530100006001	9.775	14.290
HDFC Bank Car	1.668	0.000
Andhra Bank	4.324	1.516
L and T Finance	0.467	0.000
State Bank of Hyderabad	0.022	0.000
Total	16.256	15.806


Auditors :
Name :	C. V. Ramana and associates Chartered Accountants
Address :	#6-3-661/9 A, Bhavana Towers, Kapadia Lane, Raj Bhavan Road, Hyderabad – 500082, Telangana, India
Tel. No.:	91-40-6637222
PAN No.:	ADHPC7901L

Memberships :	--

Collaborators :	--

Sister Concern :	Not Divulged

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

1100000	Equity Shares	Rs.10/- each	Rs.11.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

1067500	Equity Shares	Rs.10/- each	Rs.10.675 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	10.675	3.500	3.500
(b) Reserves & Surplus	1.810	(0.238)	(1.647)
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	6.049	0.000
Total Shareholders’ Funds (1) + (2)	12.485	9.311	1.853

(3) Non-Current Liabilities
(a) long-term borrowings	17.344	15.806	25.629
(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)	17.344	15.806	25.629

(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	22.831	16.361	9.931
(c) Other current liabilities	0.000	0.756	-0.073
(d) Short-term provisions	4.500	3.636	2.261
Total Current Liabilities (4)	27.331	20.753	12.119

TOTAL	57.160	45.870	39.601

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	30.212	28.683	30.933
(ii) Intangible Assets	0.000	0.002	0.002
(iii) Capital work-in-progress	10.469	4.809	1.895
(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)	0.211	0.072	0.070
(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	40.892	33.566	32.900

(2) Current assets
(a) Current investments	1.600	0.000	0.000
(b) Inventories	6.931	1.754	4.741
(c) Trade receivables	6.360	5.641	0.108
(d) Cash and cash equivalents	0.080	3.756	0.945
(e) Short-term loans and advances	0.137	0.511	0.192
(f) Other current assets	1.160	0.642	0.715
Total Current Assets	16.268	12.304	6.701

TOTAL	57.160	45.870	39.601

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
SALES
	Income
	Other Income
	TOTAL	63.134	42.617	NA

EXPENSES		NA	NA	NA

PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		23.551	20.491	NA

FINANCIAL EXPENSES		2.431	2.635	NA

PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		7.019	6.195	NA

DEPRECIATION/ AMORTISATION		5.109	4.622	NA

PROFIT/(LOSS) BEFORE TAX		1.910	1.573	(1.377)

TAX		0.250	0.167	0.040

PROFIT/(LOSS) AFTER TAX		1.521	1.408	(1.417)

Earnings / (Loss) Per Share (Rs.)		1.42	NA	NA

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

Cash generated from operations

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	4.11	3.84	(3.66)

Return on Investment (ROI) (PBT/Networth)		0.15	0.17	(0.74)

Debt Equity Ratio (Total Debt /Networth)		1.39	1.70	13.83

Current Ratio (Current Asset/Current Liability)		0.60	0.59	0.55

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	3.500	3.500	10.675
Reserves & Surplus	(1.647)	(0.238)	1.810
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	6.049	0.000
Net worth	1.853	9.311	12.485

Long Term borrowings	25.629	15.806	17.344
Short Term borrowings	0.000	0.000	0.000
Total borrowings	25.629	15.806	17.344
Debt/Equity ratio	13.831	1.698	1.389

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million
Total Income	42.617	63.134
		48.143

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million
Total Income	42.617	63.134
Profit	1.408	1.521
	3.30%	2.41%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	----------
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter ID Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	No
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	----------
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last two years	Yes
27	Reasons for variation <> 20%	----------
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	----------
33	Market information	----------
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

UNSECURED LOANS:

Particulars	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
LONG TERM BORROWINGS
P Veena	0.257	0.000
Smitha Shetty	0.831	0.000
Total	1.088	0.000

PERFORMANCE REVIEW:

The company has delivered satisfactory result despite several challenges including rising cost, severe competitive pressure and sluggishness. The market conditions the company’s products were better exploited with focused investment in the market and products supplemented by sufficient first-to-launch advantages. The company continued to invest to add to its market presence existing products widen thee geographical reach both within US position for new products by adding to shelf space, convert product approvals into invoices by reducing the time to time market and rationalize on low value offers.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10241645	28/09/2013 *	25,300,000.00	ANDHRA BANK	R.P. ROAD BRANCH, R.P. ROAD, SECUNDERABAD, ANDHRA PRADESH - 500003, INDIA	B89988869

*Date of modification Charges

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 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.63.69
UK Pound	1	Rs.99.73
Euro	1	Rs.71.90

INFORMATION DETAILS

Information Gathered by :	KMN

Analysis Done by :	KAR

Report Prepared by :	VNT

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
--PROFITABILITY	1~10	4
--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		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 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.

MIRA INFORM REPORT

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