MIRA INFORM REPORT

Report Date :

07.06.2008

IDENTIFICATION DETAILS

Name :	AMTEKS TECHFAB PRIVATE LIMITED
Registered Office :	Shamken House, B – 1/ A – 20, Mohan Co-Operative Industrial Estate, Mathura Road, New Delhi110 044
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	11.01.2005
Com. Reg. No.:	131982
CIN No.: [Company Identification No.]	U17297DL2005PTC131982
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing, Trading, Import and Export of all types of bulletproof jackets vests, bulletproof helmets, fabrics, woven, fabrics and other accessories.

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 2410
Status :	Small Company
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject has a 3 years old company but has not started commercial production till date. Payments are reported as slow but correct. The company can be considered for small to mediocre business dealings with slight caution, initially.

INFORMATION PARTED BY

Name :	Mr. Rahul Bhatnagar
Date :	31.05.2008

LOCATIONS

Registered Office :	Shamken House, B – 1/ A – 20, Mohan Co-Operative Industrial Estate, Mathura Road, New Delhi110 044, India
Tel. No.:	91-11-26948633
Mobile No.:	91-9810201098
Fax No.:	91-11-26948633
E-Mail :	pankajsachar@yahoo.com bharnagarrahul@hotmail.com
Area :	500 Sq. meter
Location :	Owned
Head Office :	B – 348, Sarita Vihar, New Delhi – 110044, India
Area :	1200 Sq. ft
Location :	Owned
Factory :	I – 9, SEZ, Noida, Uttar Pradesh, India
Area :	1200 Sq.ft
Location :	Owned

DIRECTORS

Name :	Mr. Rahul Bhatnagar
Designation :	Director
Address :	112, Chitra Vihar, New Delhi, India
Date of Birth/Age :	03.08.1964
Qualification :	Graduate
Experience :	18 Years
Date of Appointment :	01.01.2007
Name :	Mr. M S Saggu
Designation :	Director
Address :	H – 142, Sector – 5, Rajinder Nagar, Sahibabad, Uttar Pradesh, India
Date of Birth/Age :	22.09.1963
Date of Appointment :	02.03.2006
Name :	Mr. Anoop Chaturvesi
Designation :	Promoter and Director
Address :	Road No. 256, Sector – 8, Faridabad, Haryana, India
Date of Birth/Age :	Since Incorporation
Name :	Mr. Awadhesh Chaturvedi
Designation :	Promoter and Director
Address :	R/O No. 521, Gopal Bazari, Chatta Bazar, Mathura,India
Date of Birth/Age :	Since Incorporation

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Mrs. Payal Bhatnagar	10000	25
Mr. Awadhesh Chaturvedi	10000	25
Mr. M S Saggu	10000	25
Mr. Makhan Chaturvedi	2000	5
Mr. Amresh Jha	2000	5
Mr. Srikant Chaturvedi	2000	5
Mr. Hemant Chaturvedi	2000	5
Mr. Arjun Chaturvedi	2000	5
Total	40000	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing, Trading, Import and Export of all types of bulletproof jackets vests, bulletproof helmets, fabrics, woven, fabrics and other accessories.
Imports :
Products :	Machinery
Countries :	Korea Germany
Terms :
Selling :	Cash and Credit
Purchasing :	L/C, Cash and Credit

GENERAL INFORMATION

No. of Employees :	10 / 80 Proposed
Bankers :	HSBC Bank, C Place, New Delhi – 110001, India
Facilities :	Yes

Auditors :
Name :	Pankaj Sachar and Associates, Chartered Accountants
Address :	E – 223, Naraina Vihar, New Delhi – 110028, India
Associates/Subsidiaries :	Shamken Multifab Limited Address : Shamken House, B – 1/ A – 20, Mohan Co-Operative Industrial Estate, Mathura Road, New Delhi110 044, India Tel No : 91-11-26948633 Fax No : 91-11-26948634 E – mail : sshamken@hotmail.com CIN : L17123UP1986PLC026886 Authorised Capital : Rs. 625.000 millions Paid up Capital : Rs. 276.194 millions Registered on : 11.10.1986 Factory / Registered Office : 94 km, Stone, Delhi – Mathura Road, Village Kotwan, Mathura – 281403, Uttar Pradesh, India Activities : Manufacture, distribution and export of curtain fabrics including velvet and industrial fabrics. Products of the company are exported to v South Korea v Dubai v Israel v Turkey v Europe v Morocco v Mauritius v Canada v Hong Kong v Singapore v Saudi Arabia This is ISO 9002 certified company.
Associates/Subsidiaries :	Shamken Spinners Limited Address : Shamken House, B – 1/ A – 20, Mohan Co-Operative Industrial Estate, Mathura Road, New Delhi110 044, India Tel No : 91-11-26948633 Fax No : 91-11-26948634 E – mail : sshamken@hotmail.com CIN : L17297UP1990PLC012592 Authorised Capital : Rs. 700.000 millions Paid up Capital : Rs. 454.387 millions Registered on : 28.12.1990 Factory / Registered Office : 94 km, Stone, Delhi – Mathura Road, Village Kotwan, Mathura – 281403, Uttar Pradesh, India Activities : Manufacturers and Exporters of Cotton and Synthetic Blended Yarns.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs. 10/- each	Rs. 10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50,000	Equity Shares	Rs. 10/- each	Rs. 0.500 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		0.500
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		(0.018)
NETWORTH		0.482
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.020
TOTAL BORROWING		0.020
DEFERRED TAX LIABILITIES		0.000
TOTAL		0.502
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.000
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	0.000
	Cash & Bank Balances	0.162
	Other Current Assets	0.000
	Loans & Advances	0.000
Total Current Assets		0.162
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	0.002
	Provisions	0.000
Total Current Liabilities		0.002
Net Current Assets		0.160
MISCELLANEOUS EXPENSES		0.342
TOTAL		0.502

KEY RATIOS

PARTICULARS	31.03.2006
Debt Equity Ratio (Total Liability/Networth)	0.004
Current Ratio (Current Asset/Current Liability)	81.00

LOCAL AGENCY FURTHER INFORMATION

Business

Manufacturing, Trading, Import and Export of all types of bulletproof jackets vests, bulletproof helmets, fabrics, woven, fabrics and other accessories.

Factory will be start with in 6 months.

All Present Installation is going on of machinery.

Total Project cost is Rs. 600.000 millions

Press Release

Shamken Group MD arrested for bank fraud worth Rs 300.000 millions

Friday, April 28 2006 20:40 (IST)

New Delhi, Apr 28 (UNI) The Economic Offences Wing of the Delhi Police has arrested Managing Director of Shamken Group Amit Chaturvedi in connection with bank frauds worth Rs 300.000 millions

Police said Chaturvedi, arrested yesterday, had hatched a conspiracy in connivance with other company and others to cheat the banks of public money and misappropriated the same for personal gains.

The accused had made false representations and submitted fake documents to induce the banks.

Chaturvedi is being interrogated and further investigations are in progress.

Like Morepean, Shamken Group is another of those companies which has defaulted on his payment. The worst part is that they continued to accept fixed deposit even when there other payments were getting bounced back.

The stock is under the watch list of SEBI as it rose from around 20 paise to the level of 3 Rs some months back.

The Group Companies include

v Shamken Multifab Limited

v Shamken Cotsysn

v Dwarikadeesh Spinners

They have an approximate investor base of Rs. 80.000 millions.

To evade the authorities they have shifted the corporate office from Mohan Co-Operative Area in New Delhi to some where near Mathura.

They are following similar tactics as adopted by Morepean and are dragging the feet over the company law board order.

A few people have managed to get the payment back by virtue of filing court cases under section 138 NIA, I do hope some laws get enacted soon that allows us to impose capital punishments on such offenders.

April 04, 2005 11:52 IST

Lenders to the New Delhi based Shamken Group are planning to initiate criminal proceedings against the promoters and senior group executives to recover dues worth Rs. 6500.000 millions (Rs. 6.5 billion)

The move follows an investigative audit report, which revealed Mis-statement of accounts and diversion of funds by four group companies.

Bank of India [Get Quote], Syndicate Bank [Get Quote] and Indian Overseas Bank [Get Quote] have already lodged a first information report with the Delhi police. The other lenders are ICICI Bank [Get Quote], IDBI Ltd, IFCI Ltd [Get Quote], ING Vysya Bank [Get Quote] and UCO Bank [Get Quote].

The lenders are also planning to approach the Board for Industrial and Financial Reconstruction with the report to prevent it from registering Shamken Cotsyn [Get Quote], Shamken Spinners [Get Quote], Shamken Multifab [Get Quote] and Dwarikadhish Spinners as sick entities.

Lenders would seek BIFR consent for filing recovery suits in the debt recovery tribunal and appointment of a court receiver, senior bank executives said.

Despite attempts to get the Shamken group's reaction over the phone, promoter and chairman and managing director H B Chaturvedi did not comment. On both occasions Chaturvedi said that he was meeting lenders. He is now scheduled to meet the lenders on April 10.

Senior Bank executives said the lenders have also formed a crore group to decide on the future course of action to recover the dues. Investigations into the group's activities have also been referred to the Serious Frauds Investigation Office, they said.

The move against the group has gathered pace after ICICI Bank, which is said to have resorted to ever greening of Shamken group's loans, has also joined hands with other lenders.

The investigative audit report by ANG Associates has pointed out that the gross block additions between 1996-97 and 2002-03 was exaggerated compared with the actual capital expenditure.

As per the audited balance sheet of the four group companies, the additions to the gross block was pegged at Rs. 6857.700 millions (Rs. 68.6 billion) against a capital expenditure of Rs. 1139.200 millions (Rs 1.14 billion).

The report also said that "fictitious entries" amounting to Rs. 5718.500 millions (Rs 5.72 billion) were made by the group firms with regards to the unexplained gap between the addition to gross block and the capex.

It also said the Shamken group failed to furnish details of suspended projects amounting to Rs. 3179.700 millions (Rs 3.18 billion) during 2002-03 and additions to the gross block of Rs. 2539.800 millions ( Rs 2.54 billion) the difference between capitalisation reported in the balance sheet and the actual capes and the value of projects}during the six years ending 2001-02.

The investigative audit also said the company's executives submitted forged, false, fictitious and fabricated certificates from chartered accountants and statutory auditors to IDBI and IFCI to draw funds.

It also said that the Shamken group availed of multiple finance for the same set of equipment from various lenders.

Based on examination of the no-lien accounts relating to term loans from banks and institutions, the report said the loans intended for capex were diverted to group companies or to the current account of the Shamken group to meet other expenses.

"The relevant no-lien accounts, in respect of majority of term loan were not made available to the special investigative audit team. It  would be relevant to note that in all the no-lien accounts, which were made available to ANG & Associates, it was noticed that invariably there was diversion in all no-lien accounts, without any exception," the report said.

It also said that the group's profitability and cash flow appeared to be "stage managed". The group presented consistently good physical and financial track record till March 2003 and also paid regular dividends. In the latter half of 2002-03, however, it abruptly reported financial crisis by declaring an operating loss of Rs 1376.100 millions (Rs 1.38 billion), the report said.

The losses of Shamken Cotsyn were at Rs. 194.800 millions (Rs 194.800 million), Shamken Spinners at Rs. 534.500 millions (Rs 534.500 million), Shamken Multifab at Rs 491.600 millions (Rs 491.600 million) and Dwarikadhish Spinners at Rs 155.200 millions (Rs 155.200 millions).

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. 42.79
UK Pound	1	Rs. 83.77
Euro	1	Rs. 66.71

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	--
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	--
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		20

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