MIRA INFORM REPORT

Report Date :

03.12.2008

IDENTIFICATION DETAILS

Name :	SHALIMAR REXINE INDIA LIMITED
Registered Office :	Gat No. 1284, Sanaswadi Industrial Zone, Nagar Road Shirur, Pune – 411 011, Maharashtra
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	01.01.1996
Com. Reg. No.:	095796
CIN No.: [Company Identification No.]	U17297PN1996PLC095796
IEC No.:	3100007816
TAN No.: [Tax Deduction & Collection Account No.]	PNES04020C
PAN No.: [Permanent Account No.]	AACCS6003N
Legal Form :	A Closely held Public Limited Company
Line of Business :	Manufacturer and Exporter of PVC Leather Cloth and Allied Products such as Rexine Cloths, Artificial Leather, etc.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 1140000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track records. Trade relations are fair. Payments are usually correct and as per commitments. The company is doing well. It can be considered good for any normal business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Shaikh
Designation :	Account Manager

LOCATIONS

Registered Office/ Factory :	Gat No. 1284, Sanaswadi Industrial Zone, Nagar Road Shirur, Pune – 411 011, Maharashtra, India
Tel. No.:	91-2137-253516/ 17
Fax No.:	91-2137-253516/ 17
E-Mail :	shalirex@pn2.vsnl.net.in afzal7362@yahoo.co.in
Website :	www.shalimarrexine.com www.indiamart.com/shalimarrexine
Area :	80000 sq ft
Location :	Owned
Head Office :	1^ST Floor, Gurman Chambers, 67, Ganesh Peth, Pune – 411 002, Maharashtra, India.
Tel. No.:	91-20-26353915/ 26353941
Fax No.:	91-20-26342983
E-Mail :	shalirex@pn2.vsnl.net.in yunusyasir@yahoo.co.in
Area :	3500 sq ft
Location :	Owned

DIRECTORS

Name :	Mr. Afzal Khan
Designation :	Director
Address :	249/ 50, Mangalwar Peth, Pune – 411 011, Maharashtra, India.
Date of Birth/Age :	46 Years
Qualification :	B.Com
Date of Appointment :	01.01.1996
Name :	Mr. Yunus Khan
Designation :	Director
Address :	249/ 50, Mangalwar Peth, Pune – 411 011, Maharashtra, India.
Date of Birth/Age :	40 Years
Qualification :	B.Com
Date of Appointment :	01.01.1996
Name :	Mr. Sarosh Noshir Gorimar
Designation :	Director
Address :	301, Silver Estate, B – 1, NIBM Road, Kondhwa, Pune – 411 048, Maharashtra, India.
Qualification :	BSC
Date of Appointment :	02.12.2002
Tel. No. :	91-20-26835009
Name :	Mr. Ahid Mohd. Kasim Moledina
Designation :	Director
Address :	A/ 408, Manish Dashan, Fatima Nagar, Pune – 411 013, Maharashtra, India.
Date of Appointment :	29.01.2001

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2004

Names of Shareholders	No. of Shares
Afzal Khan	281875
Anis Khan	281875
Yunus Khan	281875
Asif Khan	299375
Zohara Shaikh	163750
Yasmeen Shaikh	163750
Anjum Shaikh	163750
Shaheen Shaikh	163750
Sunrise Leather Impex Private Limited	262500
Umar Khan	38500

Names of Allottees	No. of Shares
Afzal Khan	500188
Anis Khan	287938
Yunus Khan	367187
Asif Khan	263437
Zohara Khan	81875
Yasmeen Khan	81875
Anjum Khan	81875
D. Alwani	35000
Feroz Khan	38125
Total	1737500

As on 14.07.2008

Equity share breakup (percentage of total equity)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of PVC Leather Cloth and Allied Products such as Rexine Cloths, Artificial Leather, etc.
Products :	PVC Leather for Sofa and Seat Cover PVC Leather For Soft Luggage PVC Leather For Sports Product PVC Leather Ladies Purse and Bags PVC Leather For Sport Shoes PVC Leather for Automobile Interior and Door Panel PVC Leather For 3 Wheeler's Seats and Auto Hood PVC leather for School Bags PVC Leather for Jacket and Wind Chitter PVC Leather For 4 Wheeler Seat Cover PVC Leather For 2 Wheeler Seat Cover PVC Leather for 3 wheeler Seat Covers
Exports :
Products :	PVC Leather Cloth and Allied Products such as Rexine Cloths, Artificial Leather, etc.
Countries :	Dubai, Sudan
Terms :
Selling :	L/C, Cash and Credit 30/ 60 days
Purchasing :	L/C, Cash and Credit 30/ 60 days

GENERAL INFORMATION

Customers :	OEM’s and Direct Customer
No. of Employees :	200
Bankers :	State Bank of India, Commercial Branch, 1548 – A, Sadashiv Peth, Pune – 411 030, Maharashtra, India. Union Bank of India, I.F.B. Branch, Pune, Maharashtra, India Axis Bank Limited 1262/ B, Sterling Plaza, Jangli Maharaj Road, Deccan Gymkhana, Pune – 411 004, Maharashtra, India.
Facilities :	CC – Rs.242.500 Millions

Banking Relations :	Satisfactory
Auditors :
Name :	L P Thakkar and Company Chartered Accountants
Address :	Dhavan, 1^st Floor, 23 Milan Co-operative Housing Society, Kothrud, Pune – 411 029, Maharashtra, India.
Associates/Subsidiaries :	NIL

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs.10/- Each	Rs.110.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6131250	Equity Shares	Rs.10/- Each	Rs.61.312 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		61.312	40.875	40.875
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		166.744	161.605	142.769
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		228.056	202.480	183.644
LOAN FUNDS
1] Secured Loans		267.071	276.898	200.510
2] Unsecured Loans		42.867	41.945	11.983
TOTAL BORROWING		309.938	318.843	212.493
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		537.994	521.323	396.137
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		76.952	78.774	30.258
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	158.718	144.025	124.832
	Sundry Debtors	307.763	363.842	309.721
	Cash & Bank Balances	1.127	0.656	22.519
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	83.379	20.269	45.446
Total Current Assets		550.987	528.792	502.518
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	38.343	48.017	106.783
	Provisions	51.602	38.226	29.866
Total Current Liabilities		89.945	86.243	136.649
Net Current Assets		461.042	442.549	365.869
MISCELLANEOUS EXPENSES		0.000	0.000	0.010
TOTAL		537.994	521.323	396.137

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		1297.720	1006.364	796.734
Other Income		65.238	0.939	0.000
Total Income		1362.958	1007.303	796.734
Profit/(Loss) Before Tax		37.576	28.836	46.895
Provision for Taxation		12.000	10.000	0.000
Profit/(Loss) After Tax		25.576	18.836	46.895
Expenditures :
	Raw Material Consumed	1204.003	879.637	678.229
	Increase/(Decrease) in Finished Goods	0.000	27.904	8.459
	Salaries, Wages, Bonus, etc.	8.828	12.574	9.921
	Managerial Remuneration	1.800	1.800	1.800
	Payment to Auditors	1.790	0.740	0.146
	Interest	44.554	31.287	12.596
	Insurance Expenses	3.595	4.096	4.369
	Power & Fuel	1.211	1.207	0.566
	Depreciation & Amortization	10.228	6.927	3.918
	Other Expenditure	49.373	12.295	29.835
Total Expenditure		1325.382	978.467	749.839

Expected Sales (2008-09) : Rs.2000.000 Millions

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	1.88	1.87	5.89
Net Profit Margin (PBT/Sales)	(%)	2.90	2.87	5.89
Return on Total Assets (PBT/Total Assets}	(%)	5.98	4.75	8.75
Return on Investment (ROI) (PBT/Networth)		0.16	0.14	0.26
Debt Equity Ratio (Total Liability/Networth)		1.75	2.00	1.90
Current Ratio (Current Asset/Current Liability)		6.13	6.12	3.68

LOCAL AGENCY FURTHER INFORMATION

Trade Reference

· Varroc Engineering Private Limited

Mr. Santosh Todarwal

E- 4, MIDC Industrial Area, Waluj, Aurangabad – 431136

Phone No.: 91- 240- 25226227

Mob No.: 91- 9325229887

· Finolex Industries Limited

Mr. Edwin S Arland

P- 14/1, Rajiv Gandhi Infotech Park, MIDC Hinjewadi, Pune – 411057

Phone No.: 91- 20- 27408215/ 16

Mob No.: 91- 9881907684

· Manikaran Leather Industries

Mr. Parminder Singh

C- 67, Floretine, Sopan Baug, Ghorpadi, Pune - 411001

Mob No.: 91- 9325404415

· Samsonite South Asia Private Limited

Mr. P Natkar

Gate No. 159 to 163, Mumbai – Nashik Highway, Tal. Igatpuri, Dist – Nashik

Phone No.: 91- 2553- 229765

Mob No.: 91- 9960700308

Additional Requirement of Indiamart for Trust-Seal

Excise Registration No.: AACCS6003N XM 001

VAT / TIN : 27600001752

IEC Code : 3100007816

PAN / TAN : AACCS6003N

Bank Name : State Bank of India

Bank Address : Commercial Branch, Tilak Road, Pune

Bank A/c. No.: 10299662822

Account Since : 6 Years

In case of any affiliations / memberships / certifications :

Name : ISO 9001 : 2000

Expiry Date : 2011

Name of the company

SHALIMAR REXINE INDIA LIMITED

Presented By

State Bank of India, Commercial Branch, Pune – 411 030.

1) Date and description of instrument creating the change

a. Agreement of loan for overall limit.

b. Agreement of Hypothecation of Goods and Assets.

Both the above Agreements are dated 25.08.2004 and executed for the creation of single charge.

2) Amount secured by the charge/amount owing on the securities of charge

Rs.267.100 Millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

A first charge by way of hypothecation of the borrowers entire goods, movables and other assets present and future including documents of title to the goods and other assets, such as book debts, outstanding moneys, receivables by way of cash assistance and/ or any other scheme, claims including claims by way of refund of customs/ excise duties under the Duty Drawback Credit Scheme or any other scheme, bills, invoices, documents, contracts, insurance policies, guarantees, engagements, securities, investments and rights uncalled capital and machinery present and future of such form satisfactory to the Bank.

Details/ List of Plant and Machinery such as:

Technical Details of Building:

Security Office, 2000 RCC Frame with slab PCC floor, Factory Building, Boiler Shed with workshop, Internal Roads etc.

Plant and Machinery:

Sewing Machine, Cutting Machine, 15 HP Motor with Gear Box and Overhead Heater etc.

Office Equipments and Furniture:

Furniture includes Chairs, Sofa set, tables and canteen equipment.

Air Conditioner and other assorted elec. Equipment etc.

4) Gist of the terms and conditions and extent and operation of the charge.

ROI:

As would be determined by bank from time to time.

5) Name and Address and description of the person entitled to the charge.

State Bank of India, Commercial Branch, 1548 – A, Sadashiv Peth, Pune – 411 030, Maharashtra, India.

6) Date and brief description of instrument modifying the charge

a. No instrument. Memorandum of deposit for creation of Equitable mortgage by deposit of title deeds.

b. Confirmation Letter.

Both the above Agreements are dated 20.10.2004 and executed for the creation of single modification.

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

The original charge was created on 25.08.2004 for Rs.267.100 Millions. Now by the present modification dated 20.10.2004 the company offered an additional collateral security by way of an equitable mortgage by deposit of title deed over the immovable property by fixing the mortgage at Rs.267.100 Millions together with interest thereon and all costs and charges.

The facilities are as follows:

Fund Based	Rs. In Millions
Demand Cash Credit	40.000
EPC/ EBD	137.500
Term Loan	4.600
Total Fund Based	182.100

Non Fund Based	Rs. In Millions
Bank Guarantee	20.000
Letter of Credit	65.000
Total Non Fund Based	85.000

Total Credit Facilities: Rs.267.100 Millions

The details of immovable property described is as follows:

All that piece and parcel of the land bearing Gat No. 1284 admeasuring about OH 55 ares out of the total land admeasuring 1H 10 ares assessed at Rs.0.66 paise lying and being situated at Mouze Sanaswadi, Taluka Shirur, District Pune and within the jurisdiction of sub. Registrar Shirur and within the limits of Zilla Parishad Pune, Taluka Panchayat Samiti, Shirur.

On or towards East : Gat No.1287, 1289

On or towards South : Gat no.1283

On or towards West : Part of Gat No.1284

On or towards North : Gat No.1285.

This form is for	Modification of charge
Charge identification number of the modified	80038984
Corporate identity number of the company	U17297PN1996PLC095796
Name of the company	SHALIMAR REXINE INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	Gat No. 1284, Sanaswadi Industrial Zone, Nagar Road Shirur, Pune – 411 011, Maharashtra, India
Type of charge	Immovable Property Book Debts Movable Property
Particular of charge holder	Axis Bank Limited 1262/ B, Sterling Plaza, Jangli Maharaj Road, Deccan Gymkhana, Pune – 411 004, Maharashtra, India. E-Mail: sachin.deo@axisbank.co.in
Nature of description of the instrument creating or modifying the charge	Supplemental Term Loan Agreement
Date of instrument Creating the charge	24.10.2007
Amount secured by the charge	Rs.35.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: BPLR – 2% p.a. (currently 10% p.a. – present Bank’s BPLR being 12.00% p.a.) Margin: Margin of Security minimum 22% Extent and Operation of the charge: First Charge
Particulars of the present modification	At the request of the company the bank modified the terms and conditions of repayment and premature payment. The modified terms and conditions are given. There is no change in the limit of Rs.35.000 Millions.

TRADE REFERENCES:

• Bajaj Industries
• Varrock Engineers, Aurangabad

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 records 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 records 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.50.52
UK Pound	1	Rs.75.08
Euro	1	Rs.63.72

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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
TOTAL		54

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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