MIRA INFORM REPORT

Report Date :

09.04.2011

IDENTIFICATION DETAILS

Name :	JHANJI TEXTILES PRIVATE LIMITED
Registered Office :	Sua Road, Industrial Area – C, Knaganwal, Ludhiana –141 402, Punjab
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	19.10.2005
Com. Reg. No.:	16-29100
CIN No.: [Company Identification No.]	U17110PB2005PTC029100
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and exporter of superlative Non-Woven Chemical Bond Interlining, Non Woven Thermo Bond Interlining etc

RATING & COMMENTS

MIRA’s Rating :

B (28)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate. Profitability of the company appears to be low. However, trade relations are fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions.

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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Manish
Designation :	Director
Contact No.:	91-9811048341
Date :	30.03.2011

LOCATIONS

Registered Office / Factory 1 :	Sua Road, Industrial Area – C, Knaganwal, Ludhiana –141 402, Punjab
Mobile No.:	91-9811098341 (Mr. Manish Jhanji)
E-Mail :	manishjhanji02@yahoo.co.in
Area :	Owned
Sales Office:	1043/9, 1^st Floor, Govind Puri, New Delhi-110019, Delhi, India.
Tel. No.:	91-11-26486811
Fax No.:	91-11-26476438
Area :	Owned

DIRECTORS

As On : 30.09.2010

Name :	Mr. Atul Jhanji
Designation :	Director
Address :	B/34/7466, Gokul Vihar, Haibowal Kalan, Ludiana, Punjab, India.
Date of Appointment :	19.10.2005
DIN No :	01888170
Name :	Mr. Sahil Jhanji
Designation :	Director
Address :	B/34/7466, Gokul Vihar, Haibowal Kalan, Ludiana, Punjab, India.
Date of Appointment :	19.10.2005
DIN No :	01884775
Name :	Mr. Manish Jhanji
Designation :	Director
Address :	J-115, 1^st Floor, Kirti Nagar, New Delhi-110015, New Delhi, India.
Date of Appointment :	19.10.2005
DIN No :	01102118

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Shanti Prakash Jhanji	15000
Atul Jhanji	15000
Sahil Jhanji	15000
Manish Jhanji	15000
Prem Pal Marwaha	600
Ruchi Dhingra	600
Deepika Bhalla	500
Gulshan Malik	600
Mohit Bhalla	500
Sweety Jhani	600
Raj Kumar Jhanji	600
Kapil Bhalla	500
Pradeep Bhalla	600
Ashok Bhalla	600
Chetan Marwaha	600
Sanjay Dhingra	600
Jaswant Puri	600
Shanti Prakash	600

AS ON 30.09.2010

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and exporter of superlative Non-Woven Chemical Bond Interlining, Non Woven Thermo Bond Interlining etc
Products :	Ø Non Woven Head Liner Fabric Ø Non Woven Needle Punch Carpet Ø Non Woven Needle Punch Felt Ø Non Woven Needle Punch Speaker Felt Ø Non Woven Needle Punch Geo Textile Ø Non Woven Needle Punch Auto Motive Ø Non Woven Needle Punch Jute Blending Ø Non Woven Needle Punch Roof Lining Ø Non Woven Chemical Bond Interlining Ø Non Woven Thermo Bond Interlining Ø Embroidery Backing Tear Away Ø Non Woven Microdot Interlining Ø Non Woven Double Side Fusing
Exports :
Products :	superlative Non-Woven Chemical Bond Interlining, Non Woven Thermo Bond Interlining
Countries :	Srilanka Nepal
Imports :
Products :	Raw Material
Countries :	China

GENERAL INFORMATION

Customers :

OEM’s

Dealers

No. of Employees :

35 (Approximately)

Bankers :

• Oriental Bank of Commerce, Dharampura Branch, Ludhiana-141010, Punjab, India

Facilities :

SECURED LOAN	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Oriental Bank of Commerce	0.000	0.200
Total	0.000	0.200
UNSECURED LOAN	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Atul Jhanji	0.665	0.625
Manish Jhanji	0.125	0.125
Shahil Jhanji	0.125	0.125
Shanty Prakash Jhanji	0.125	0.125
Total	1.040	1.000

Banking Relations :	--
Auditors :
Name :	R S Khera and Associates Chartered Accountants
Address :	Upstairs Chawla Juice Corner, Gill Road,, Ludhiana – 141 003, Punjab, India.
Tel. No.:	91-161-2533081

CAPITAL STRUCTURE

As On : 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs. 10/- each	Rs. 1.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
88200	Equity Shares	Rs. 10/- each	Rs. 0.882 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		0.882	0.882	0.882
2] Share Application Money		0.528	0.528	0.528
3] Reserves & Surplus		0.600	0.632	0.520
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2.010	2.042	1.930
LOAN FUNDS
1] Secured Loans		0.000	0.200	2.932
2] Unsecured Loans		1.040	1.000	0.500
TOTAL BORROWING		1.040	1.200	3.432
DEFERRED TAX LIABILITIES		0.166	0.070	0.000
TOTAL		3.216	3.312	5.361
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.595	3.766	5.407
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	2.169	1.445	0.361
	Sundry Debtors	3.607	0.831	0.000
	Cash & Bank Balances	0.127	0.072	0.163
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.012	0.000	0.267
Total Current Assets		5.915	2.348	0.791
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6.111	2.445
	Other Current Liabilities	0.201	0.381	0.867
	Provisions	0.000	0.000	0.000
Total Current Liabilities		6.312	2.826	0.867
Net Current Assets		(0.397)	(0.478)	(0.076)
MISCELLANEOUS EXPENSES		0.018	0.024	0.030
TOTAL		3.216	3.312	5.361

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Operating Income	9.989	5.855	0.014
		Profit on sale of Machinery	0.000	0.660	0.000
		TOTAL (A)	9.989	6.515	0.014
Less	EXPENSES
		Cost of Goods Sold	7.434	4.493	0.012
		Operating Expenses	1.572	0.785	0.000
		Personnel Expenses	0.021	0.020	0.000
		Administrative and Other Expenses	0.691	0.420	0.011
		Selling Expenses	0.001	0.001	0.000
		Preliminary Expenses Written Off	0.006	0.006	0.000
		TOTAL (B)	9.725	5.725	0.023
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.264	0.790	(0.009)
Less	FINANCIAL EXPENSES (D)		0.008	0.369	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.256	0.421	(0.009)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.171	0.239	0.000
	PROFIT BEFORE TAX (E-F) (G)		0.085	0.182	(0.009)
Less	TAX (H)		0.096	0.070	0.000
	PROFIT AFTER TAX (G-H) (I)		(0.011)	0.112	(0.009)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.068	(0.044)	(0.035)
Less	APPROPRIATIONS
		FBT	0.001	0.000	0.000
		Income Tax/ TDS and Other Adjustment	0.021	0.000	0.000
	BALANCE CARRIED TO THE B/S		0.035	0.068	(0.044)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(0.11)	1.71	(64.28)
Net Profit Margin (PBT/Sales)	(%)	0.85	3.11	(64.28)
Return on Total Assets (PBT/Total Assets}	(%)	0.89	2.98	(0.14)
Return on Investment (ROI) (PBT/Networth)		0.04	0.09	0.00
Debt Equity Ratio (Total Liability/Networth)		3.74	1.97	2.23
Current Ratio (Current Asset/Current Liability)		0.94	0.83	0.91

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL

The company has turnover of Rs. 9.989 millions with a profit of Rs.0.085 million. The director hops better result in future.

FORM 8

Corporate identity number of the company	U17110PB2005PTC029100
Name of the company	JHANJI TEXTILES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Sua Road, Industrial Area – C, Knaganwal, Ludhiana –141 402, Punjab
This form is for	Creation of charge
Type of charge	Book Debts Movable Property
Number of charge holder (s)	1
Particular of charge holder	Oriental Bank of commerce, Dharampura Branch, Ludhiana- 141 010, Punjab
Email ID	bm0169@obc.co.in
Nature of instrument creating charge	Agreement of hypothecation of assets in form Loan Doc – 1 dated 28.01.2008 for hypothecation of stock of raw materials stock in process and finished goods and book debts to secure cash credit facility amounting to Rs. 4.000 millions.
Date of instrument Creating the charge	28.01.2008
Amount secured by the charge	In case the amount is in foreign currency, rupee equivalent to be stated Rs. 4.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest : At PLR (Prime Leading Rate) with a minimum of 13.25% p.a with monthly rests The interest’s payable by borrowers shall be subject to changes in interest rates made from time to time. In case of default increased interest at the rate of 2% per annum with agreed rates over and above the agreed rates of interest. Terms of repayment: Repayable on Demand Margin : Cash Credit - 25% Extent and Operation of the charge: 100%
Short particulars of the property charged (Including location of the property)	First charge on Raw material work in process finished goods of polyester Fibre, Polypropylene, Synthetic Waste, Non Woven Articles, charge on all futures – present current assets of the company in receivables, present in the factory premises located at Sua Road, Kanganwal Industrial Area – C, Ludhiana

FIXED ASSETS:

Ø Factory Building

Ø Furniture

Ø Machinery

Trade Reference:

Ø Reliance Industries – Punjab

Ø Nirmal Feber - Uttar Pradesh

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.44.04
UK Pound	1	Rs.72.19
Euro	1	Rs.63.40

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.