MIRA INFORM REPORT

Report No. :	351548
Report Date :	26.11.2015

IDENTIFICATION DETAILS

Name :	KISHORE GRANTIES PRIVATE LIMITED
Registered Office :	S.No.1, G.T. Road, Gannavaram, Chilakaluripet, Guntur – 522616, Andhra Pradesh
Mobile No.:	91-9963740000 (Mr. Bobby)
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	30.04.1993
Com. Reg. No.:	01-015705
Capital Investment / Paid-up Capital :	Rs.1.205 Million
CIN No.: [Company Identification No.]	U14102AP1993PTC015705
IEC No.:	Not Divulged
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 :	Manufactures, traders, processors, exporters, importers, stockiest, distributors and dealers in rough, sized and polished granites, marble stones, by cutting polishing, slab sizing and packing.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company incorporated in the year 1993 having satisfactory track record. The company’s sales turnover remained steady during the year 2014 but has reported decline in its net profitability by 35%. However, rating further takes into consideration company’s acceptable financial profile with adequate networth base, favorable liquidity position along with comfortable debt protection metrics. Trade relations are reported as fair. Business is active. Payment terms are usually correct. In view of long track record of operations and decent financial position, 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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 31-03-2015.

INFORMATION DENIED BY

Name :	Mr. Bobby
Designation :	Chief Executive Officer
Contact No.:	91-9963740000
Date :	23.11.2015

LOCATIONS

Registered Office :	S.No.1, G.T. Road, Gannavaram, Chilakaluripet, Guntur – 522616, Andhra Pradesh, India
Tel. No.:	Not Available
Mobile No.:	91-9963740000 (Mr. Bobby)
Fax No.:	Not Available
E-Mail :	csguntur@gmail.com

DIRECTORS

AS ON 30.09.2014

Name :

Radhika Gottipati

Designation :

Managing Director

Address :

D.No.2-20, Pandaripuram, Chilakaluripet - 522616, Andhra Pradesh, India

Date of Birth/Age :

12.07.1972

Date of Appointment :

10.04.2014

DIN No.:

01763621

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	Company/ LLP Status	Defaulting status
1	U13100AP2007PTC056088	KISHORE MINERALS PRIVATE LIMITED	Director	26/10/2007	26/10/2007	Active	YES
2	U14102AP1993PTC015705	KISHORE GRANITES PRIVATE LIMITED	Managing director	10/04/2014	02/02/2009	Active	NO

Name :

Jhansi Gottipati

Designation :

Director

Address :

1-768, 10th Line, Pandaripuram, Chilakaluripet - 522616, Andhra Pradesh, India

Date of Birth/Age :

20.08.1979

Date of Appointment :

20.09.2002

DIN No.:

01658528

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	U17111AP1994PTC018860	IDUPULAPADU COTTON MILLS Private LIMITED	Director	29/09/2001	29/09/2001	05/12/2005	Active	NO
2	U14102AP1993PTC015705	KISHORE GRANITES PRIVATE LIMITED	Director	20/09/2002	20/09/2002	-	Active	NO

Name :

Ravi Kumar Gottipati

Designation :

Additional Director

Address :

1-768, 10th Line, Near Water Tank Line, Pandaripuram, Chilakaluripet - 522616, Andhra Pradesh, India

Date of Birth/Age :

09.11.1977

Date of Appointment :

01.10.2014

DIN No.:

01658519

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	U14102AP1993PTC015705	KISHORE GRANITES PRIVATE LIMITED	Additional director	01/10/2014	14/01/2000	-	Active	NO
2	U17111AP1994PTC018860	IDUPULAPADU COTTON MILLS Private LIMITED	Director	29/09/2001	29/09/2001	18/10/2008	Active	NO
3	U14290AP2010PTC068433	KISHORE BLACKGOLD GRANITES PRIVATE LIMITED	Managing director	01/06/2010	14/05/2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Bobby
Designation :	Chief Executive Officer

MAJOR SHAREHOLDERS

AS ON 30.09.2014

Names of Shareholders	No. of Shares	% of Holding
Ravi Kumar Gottipati	81500	67.63
K. Rama Mohan	16500	13.69
Radhika Gottipati	5000	4.15
Rajeshwari Gottipati	17500	14.52
Total	120500	100.00

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2014

Category	Percentage
Directors or relatives of Directors	100.00

BUSINESS DETAILS

Line of Business :	Manufactures, traders, processors, exporters, importers, stockiest, distributors and dealers in rough, sized and polished granites, marble stones, by cutting polishing, slab sizing and packing.
Products :	Granites
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Company Name :	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 :

Company Name :	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 :

Information declined by the management

Bankers :

Banker Name :	Central Bank of India
Branch :	Chilakaluripet Branch, Chilakaluripet - 522616, Andhra Pradesh, 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 :	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan) :	Not Divulged
Account Operation :	Not Divulged
Remark :	Not Divulged

Facilities :

SECURED LOANS	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
From Banks
ICICI Bank Limited	3.002	4.275
HDFC Bank Limited	2.631	0.000
From Other Parties
L&T Finance Limited	0.000	2.811
Short Term Borrowings
Loans from banks
Central bank of India	14.376	0.000
Total	20.009	7.086

Auditors :
Name :	Mastanaiah and Company Chartered Accountants
Address :	11/1, Arundelpet, Guntur – 522002, Andhra Pradesh, India
PAN No.:	AADFM5561H
Memberships :	Not Divulged
Collaborators :	Not Divulged
Enterprises owned or significantly influenced by key management personal :	· Kishore Stones · Kishore Slabs and Tiles

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital:

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
120500	Equity Shares	Rs.10/- each	Rs.1.205 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	1.205	1.205	1.205
(b) Reserves & Surplus	17.251	13.729	8.277
(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)	18.456	14.934	9.482
(3) Non-Current Liabilities
(a) long-term borrowings	6.760	9.213	8.027
(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	0.334	0.334	0.334
Total Non-current Liabilities (3)	7.094	9.547	8.361
(4) Current Liabilities
(a) Short term borrowings	14.376	0.000	2.648
(b) Trade payables	22.075	37.962	32.200
(c) Other current liabilities	15.885	26.066	21.690
(d) Short-term provisions	0.205	0.368	0.000
Total Current Liabilities (4)	52.541	64.396	56.538
TOTAL	78.091	88.877	74.381
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	38.582	39.490	37.150
(ii) Intangible Assets	0.002	0.003	0.005
(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	0.168	0.003	0.003
(c) Deferred tax assets (net)	0.869	0.721	0.614
(d) Long-term Loan and Advances	0.916	1.743	3.699
(e) Other Non-current assets	0.660	0.607	0.189
Total Non-Current Assets	41.197	42.567	41.660
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	2.437	1.639	5.488
(c) Trade receivables	15.250	22.307	22.498
(d) Cash and cash equivalents	17.982	20.695	2.270
(e) Short-term loans and advances	0.402	1.051	1.933
(f) Other current assets	0.823	0.618	0.532
Total Current Assets	36.894	46.310	32.721
TOTAL	78.091	88.877	74.381

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2014	31.03.2013	31.03.2012
	SALES
		Income		98.172	199.971	142.773
		Other Income		0.089	0.418	0.269
		TOTAL (A)		98.261	200.389	143.042
Less	EXPENSES
		Cost of Materials Consumed		72.399	166.513	118.781
		Changes in Inventories		(0.801)	1.232	(2.202)
		Employee Benefits Expenses		4.991	5.263	5.239
		Other Expenses		8.903	10.852	7.991
		TOTAL (B)		85.492	183.860	129.809
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			12.769	16.529	13.233
Less	FINANCIAL EXPENSES (D)			1.773	1.625	2.092
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			10.996	14.904	11.141
Less	DEPRECIATION/ AMORTISATION (F)			5.681	6.884	4.090
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			5.315	8.020	7.051
Less	TAX (H)			1.793	2.569	2.603
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			3.522	5.451	4.448
	EARNINGS IN FOREIGN CURRENCY
			Direct Exports	0.000	0.000	3.423
			Merchant Exports	9.556	26.822	14.620
	TOTAL EARNINGS			9.556	26.822	18.043
	Earnings Per Share (Rs.)			29.23	45.24	36.91

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	6.132	4.891	8.952
Cash generated from operations	NA	NA	NA
Net cash flow from (used in) operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	3.59	2.73	3.12
Operating Profit Margin (PBDIT/Sales)	(%)	13.01	8.27	9.27
Return on Total Assets (PBT/Total Assets)	(%)	6.90	9.10	9.56
Return on Investment (ROI) (PBT/Networth)		0.29	0.54	0.74
Debt Equity Ratio (Total Debt /Networth)		1.48	0.94	2.07
Current Ratio (Current Asset/Current Liability)		0.70	0.72	0.58

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	1.205	1.205	1.205
Reserves & Surplus	8.277	13.729	17.251
Net worth	9.482	14.934	18.456
long-term borrowings	8.027	9.213	6.760
Short term borrowings	2.648	0.000	14.376
Current Maturities of Long term debt	8.952	4.891	6.132
Total borrowings	19.627	14.104	27.268
Debt/Equity ratio	2.070	0.944	1.477

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	142.773	199.971	98.172
		40.062	(50.907)

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	142.773	199.971	98.172
Profit	4.448	5.451	3.522
	3.12%	2.73%	3.59%

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	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
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 three 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	No
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
From others	0.429	1.429
Related parties	0.698	0.698
Total	1.127	2.127

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10107540	21/04/2008	2,000,000.00	L & T FINANCE LIMITED	L&T HOUSE, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA	A40418790
2	10066943	06/08/2007	500,000.00	L & T FINANCE LIMITED	L&T HOUSE,, BALLARD ESTATE,, MUMBAI, MAHARASHTRA - 400001, INDIA	A22286694
3	90134819	04/10/2004	513,000.00	M/S SUNDARAM FINANCE LIMITED	NO.21 PATULLOS ROAD, CHENNAI, TAMIL NADU - 600002, INDIA	-
4	90134817	27/09/2004	830,800.00	M/S SUNDARAM FINANCE LIMITED	NO.21 PATULLOS ROAD, CHENNAI, TAMIL NADU - 600002, INDIA	-
5	90135942	22/10/2014 *	68,297,000.00	CENTRAL BANK OF INDIA	MID CORPORATE BRANCH, BENZ CIRCLE, VIJAYAWADA, ANDHRA PRADESH - 520010, INDIA	C32896300

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Office Equipment

· Transformer

· Electrical Installation

· Generator

· Well and Water Works

· Tipper

· Tractor

· Compressor

· Printer

· Dumper

· Inverter

· Quarry Crane

· Computer

· Vehicles

· Computer Software

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.66.38
UK Pound	1	Rs.100.45
Euro	1	Rs.70.55

INFORMATION DETAILS

Information Gathered by :	KMN
Analysis Done by :	HNA
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
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		46

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.