MIRA INFORM REPORT

Report Date :

11.12.2008

IDENTIFICATION DETAILS

Name :	DODBALLAPUR INTEGRATED TEXTILE PARK LIMITED
Registered Office :	4910, Powerloom Complex, Behind Taluk Office, Dodballapur – 561 203, Karnataka
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	05.01.2006
Com. Reg. No.:	08-38159
CIN No.: [Company Identification No.]	U45202KA2006PLC038159
TAN No.: [Tax Deduction & Collection Account No.]	BLRD04149F
Legal Form :	A closely held public limited liability company
Line of Business :	Manufacturer of Cotton and Blended Fabrics.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1500000
Status :	New Project
Payment Behaviour :	No Complaints
Litigation :	Clear
Comments :	Subject is a new project for establishment of integrated Textile Park at Dodballapur. The Company has a strong capital base and has been successful in obtaining substantial loans from its bankers. Trade relations are fair. No complaints have been heard. The company can be considered for normal business dealings with slight caution initially.

INFORMATION PARTED BY

Name :	Mr. Harsha Gangadhar
Designation :	Managing Director
Contact No.:	91-9902966881
Date :	08.12.2008

LOCATIONS

Registered Office :	4910, Powerloom Complex, Behind Taluk Office, Dodballapur – 561 203, Karnataka, India
Tel. No.:	91-80-27622863
Mobile No.:	91-9845061076
E-Mail :	ditplinfo@gmail.com harsha@ananyatex.com
Area :	1000 Sq. ft.
Location :	Leased
Factory :	No. W-51, Near Apparel Park, Phase – II, Dodballapur, Bangalore – 561 203, Karnataka, India
Area :	48 Acre
Location :	Owned

DIRECTORS

Name :	Mr. Chandra Hosangadi Vishwanath
Designation :	Director
Address :	No.3080-1, Taluk Office Road, Doddaballapur – 561 203, Karnataka, India
Date of Birth/Age :	21.05.1962
Date of Appointment :	05.01.2006
Name :	Mr. Harsha Hosangadi Gurudev
Designation :	Managing Director
Address :	No. 3810, Gangigerpete Lane, Doddaballapur – 561 203, Karnataka, India
Date of Birth/Age :	28.01.1977
Date of Appointment :	05.01.2006
Name :	Mr. Jagannath Hosangadi Gubbanna
Designation :	Director
Address :	No. 3072, Taluka Office Road, Dodballapur – 561 203, Karnataka, India
Date of Birth/Age :	14.03.1932
Date of Appointment :	05.01.2006
Name :	Mr. Prakash Shankaraiah
Designation :	Whole Time Director
Address :	No. 3068, Nagatharapete, Doddballapur – 561 203, Karnataka, India
Date of Birth/Age :	20.09.1957
Date of Appointment :	31.08.2006
Name :	Mr. Gujji Doddanna Jayashankar
Designation :	Director
Address :	2737 Hemavathi Pet, Doddaballapur – 561 203, Karnataka, India
Date of Birth/Age :	19.01.1960
Date of Appointment :	21.10.2006
Name :	Mr. Chennappa Nagaraj
Designation :	Director
Address :	1335, Thyagara Nagar, Doddballapur – 561 203, Karnataka, India
Date of Birth/Age :	11.01.1953
Date of Appointment :	21.12.2006
Name :	Mr. Hosangadi Jagannath Natesh Kumar
Designation :	Director
Address :	3072, Taluk Office Road, Doddballapur – 561 203, Karnataka, India
Date of Birth/Age :	22.04.1962
Date of Appointment :	21.10.2006
Name :	Mr. T V Maruthi
Designation :	Director
Address :	No. 128 (Old No. 12) Shntala, 1^st Cross, Lavelle Road, Bangalore – 560 001, Karnataka, India
Date of Birth/Age :	16.11.1935
Date of Appointment :	16.03.2007
Name :	Mr. Krishnan Lakshiminarasiman
Designation :	Nominee Director
Address :	Plot No. 17. 14^th Cross Street, Senthil Nagar Extension, Kolathur, Chennai – 600 099, Tamilnadu, India
Date of Birth/Age :	09.05.1955
Date of Appointment :	16.03.2007
Name :	Mr. T Halaswamy
Designation :	Nominee Director
Address :	No. 39, 2^nd Cross, Vyalikaval, Vijay Nagar, Bangalore – 560 040, Karnataka, India
Date of Birth/Age :	22.07.1957
Date of Appointment :	16.03.2007
Name :	Mr. C Roul
Designation :	Director
Address :	No. K32, Nivedita Kunj, Sector 10, RK Puram, New Delhi – 110 022, India
Date of Birth/Age :	01.01.1961
Date of Appointment :	16.03.2007
Name :	Mr. A N Sharan
Designation :	Nominee Director of Textile, New Delhi
Name :	Mr. Dineshjee
Designation :	Nominee Director of IL and FS

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 11.08.2008)

Names of Shareholders	No. of Shares
H G Jagannath	20000
H V Chandra Kumar	20000
H G Harsha Gangadhar	20000
S Prakash	20000
G D Jayashankar	20000
C Nagaraju	20000
H J Natesh Kumar	10000
K C Jeethendra	10000
K Ramesh Kumar	10000
V Krishnappa	10000
P C Rajanna	10000
J S Umashankar	10000
N Sunanda	10000
Panjini Creation	10000
T S Dayashankar	10000

Equity share breakup (percentage of total equity)

(As on 30.09.2008)

Category	Percentage
Directors or relatives of directors	14.00
Other top fifty (50) shareholders	86.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton and Blended Fabrics.

Products :

Product Description	ITC Code
Development of Infrastructure for Industrial Devel	45202
Development of Integrated Textile Park	U45202

Terms :

Selling :

L/C, Cash and (Credit 30 days / 60 days / 90 days) – Depends

Purchasing :

L/C, Cash and (Credit 30 days / 60 days / 90 days) – Depends

GENERAL INFORMATION

Customers :

Garments Exporter and Manufacturer

No. of Employees :

10

Bankers :

State Bank of India, Dodballapur

Facilities :

Secured Loans	(As on 31.03.2008) Rs. in Millions
Other Loans and Advances
Term Loan under PMDO Facility (Secured by way of Mortgage charge over all immovable properties and assets both present and future, charge by way of hypothecation / mortgage of all movable assets both present and future, charge / assignment of all the book debts, revenues and receivables, charge on all the Borrowers monies lying in the bank account, charge over all intangible Assets and charge over / assignment of right, title etc. under project agreement, insurance policies.)	82.787
Total	82.787

Banking Relations :	-
Financial Institution :	IL and FS Trust Company Limited IL and FS Financial Centre, Plot No. C22, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India
Auditors :
Name :	Divakara and Associates Chartered Accountants
Address :	No. 186/1, J C Complex Annexe, Sirur Park Road, Seshadripuram, Bangalore – 560 020, Karnataka, India
Tel. No.:	91-80-23561293 / 23565735
Fax No.:	91-80-23560763
E-Mail :	divakar_23@dataone.in

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
900000	Equity Shares	Rs.10/- each	Rs.9.000 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		9.000	5.300	0.700
2] Share Application Money		156.713	157.338	17.775
3] Reserves & Surplus		127.440	21.240	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		293.153	183.878	18.475
LOAN FUNDS
1] Secured Loans		82.787	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.048
TOTAL BORROWING		82.787	0.000	0.048
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		375.940	183.878	18.523
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.033	0.054	0.008
Capital work-in-progress		0.000	0.000	0.065
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	61.917	24.469	2.254
	Other Current Assets	295.635	159.300	0.000
	Loans & Advances	25.230	0.088	16.008
Total Current Assets		382.782	183.857	18.262
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	6.924	0.089	0.024
	Provisions	0.164	0.157	0.000
Total Current Liabilities		7.088	0.246	0.024
Net Current Assets		375.694	183.611	18.238
MISCELLANEOUS EXPENSES		0.213	0.213	0.212
TOTAL		375.940	183.878	18.523

PROFIT & LOSS ACCOUNT

The Company is setting up an Integrated Textile Park at Dodaballapur, Karnataka under the Scheme for Integrated Textile Park. No profit and Loss Account has been prepared since the Company has not commenced Revenue Operations. The expenditure incurred during the construction period are transferred to “Development Expenditure including Land Cost” and are shown under the head “Current Assets, Loans and Advances”. The details of such Expenditure incurred during the construction period i.e. during the year from 01.04.2007 to 31.03.2008 are as detailed below.:-

(Rs. in Millions)

	31.03.2008	31.03.2007
Opening Balance	1.365	0.064
Salary and Bonus	0.098	0.049
Gratuity	0.025	0.022
Directors Remuneration	0.372	0.186
Conveyance Allowance – Directors	0.326	0.000
Staff welfare – Office	0.004	0.007
Rent	0.011	0.003
Rates and Taxes	1.313	0.256
Travelling Expenses	0.710	0.135
Travelling – Boarding and Lodging	0.095	0.058
Conveyance Expenses	0.011	0.103
Professional and Consultancy Charges	3.098	0.238
Land Survey Fees and Expenses	0.018	0.072
Press and Publicity Expenses	0.263	0.005
Payment to Auditors	0.035	0.035
Board Meeting Expenses	0.030	0.004
Postage Expenses	0.018	0.009
Printing and Stationery	0.145	0.054
Telephone Charges	0.087	0.007
Seminar Expenses	0.024	0.005
Bank Charges	0.199	0.243
Bank Interest	2.776	0.000
Filing Fees	0.006	0.007
Processing Charges	2.147	0.075
Entertainment Expenses	0.007	0.000
Ineguration Expenditure	0.972	0.000
Insurance	0.673	0.000
Office Maintenance	0.007	0.000
Miscellaneous Expenses	0.064	0.003
Depreciation	0.020	0.017
	14.917	1.656
Less : Other Income -
Bank Interest	0.270
Miscellaneous Income	0.167
	0.437	0.426
	14.480	1.230
Add: Provision for Tax
Income	0.083
Fringe B	0.026
	0.109	0.136
Transfer to Development Expenditure including Land Cost	14.589	1.365

KEY RATIOS

PARTICULARS	31.03.2008	31.03.2007	31.03.2006
Debt Equity Ratio (Total Liability/Networth)	0.31	0.00	0.00
Current Ratio (Current Asset/Current Liability)	54.00	747.39	760.92

LOCAL AGENCY FURTHER INFORMATION

Trade References

· Bombay Rayon Fashion Limited – Bombay

· TL and FS COI – Bombay

Form No. 8

Corporate identity number of the company	U45202KA2006PLC038159
Name of the company	DODBALLAPUR INTEGRATED TEXTILE PARK LIMITED
Address of the registered office or of the principal place of business in India of the company	4910, Powerloom Complex, Behind Taluk Office, Dodballapur – 561 203, Karnataka, India
This form is for	Creation of charge
Type of charge	· Immovable property · Any interest in immovable property · Book debts · Movable property (not being pledge) · Goodwill
Particular of charge holder	IL and FS Trust Company Limited IL and FS Financial Centre, Plot No. C22, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India
Nature of instrument creating charge	Indenture of Mortgage dated 24.10.2007 executed by the company with ITCL which has signed on behalf of Consortium of Lenders.
Date of instrument Creating the charge	24.10.2007
Amount secured by the charge	Rs.191.050 millions
Brief of the principal terms an conditions and extent and operation of the charge	· Rate of interest ROI – 10.50% p.a. Default interest rate 2% over and above the interest rate. Additional interest (pending creation of security) 2% over and above interest rate. Further the lenders shall have right to reset the interest rate at the end of 3^rd year, 6^th year and 9^th year from the date of initial drawdown. · Terms of repayment The facility sanctioned shall be repaid in 120 Equated Monthly installment of Rs.2.578 millions. · Margin Equity contribution – Rs.155.69 millions and SITP Grant Rs.212.40 millions. · Extent and operation of the charge The charge shall operate to the extent of Rs.191.050 millions plus interest, additional interest, default interest, if any, fees, costs, charges, expenses and ll other monies due to the lenders.
Particulars of the property charged	· Mortgage charge over all immovable properties and assets both present and future. · Charge by way of hypothecation / mortgage of all movable assets, both present and future · Charge / assignment of all the Book Debts, revenues and receivables. · Charge on all the Borrowers monies lying in the bank account. · Charge over all intangible assets · Charge over / assignment of right, title etc under project agreement, insurance policies.

Fixed Assets

· Furniture and Fixtures

· Computer

The Company received Rs.127.440 millions towards non-recurring grant in aid under the scheme for Integrated Textile Park from Government of India, Ministry of Textiles. The grant is against the approved components of the “Integrated Textile Park” at Doddaballapur, Karnataka viz., Site Development Cost, Common Infrastructure, Building for Common Facilities, Factory Building and Technical fees. The grant in aid received is shown under the head “Reserves and Surplus” in the Balance Sheet.

Balances under other liabilities and Loans and Advances are subject to confirmation, wherever applicable.

Depreciation on Fixed Assets is provided as per Schedule XIV of Companies Act, 1956 and is under written down value method.

1. Technical fees to IL and FS

· The Company has paid commitment fee of Rs.1.122 millions during 2006-07

· During the year the Company has paid 10% of 2% contract value on “Advance for Commencement of detailed engineering” and 20% of 2% contract value on “Approval of Master Plan / layout by SPV” and the commitment fee paid last year shall be adjusted against these two payments. The actual payment works as follows :-

	(Fees including Service Tax) Rs. in Millions
20% of 2% Of Rs.346.236 millions	1.556
10% of 2% of Rs.346.236 millions	0.778
Total	2.334
Less : Commitment charges paid	1.122
Balance to be paid	1.212
Amount Paid	1.302
Excess Paid	0.090

· Fees for Project Management and supervision during Project construction

Actual Amount to be paid @ 90% of 2.5% of Contact Bill of Rs.29.017 millions	0.734
Amount Paid by the Company	0.745
Excess Paid	0.012

2. Retention money from the bills of the Contractors shall be kept in Fixed Deposit with Bankers. This will ensure liquidity for the Company at the time of payment of Retention money to the Contractors.

Performance

The company’s project for establishment integrated Textile Park at Dodballapur under the Scheme for Integrated Textile Parks (SITP) announced by Government of India has made significant progress during the year. The year 2007-08 was once again a land mark as following major progress was achieved in project implementation :-

· Financial Closure completed and approvals / sanctions obtained for Government Grants and Term Loans.

· Civil / Electrical Works commenced

· Identification of Technology for manufacturing activities initiated

· Action taken for Financial Syndication for member units.

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 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.49.12
UK Pound	1	Rs.72.59
Euro	1	Rs.63.52

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	-
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	-
--PROFITABILIRY	1~10	-
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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