MIRA INFORM REPORT

Report Date :

17.12.2011

IDENTIFICATION DETAILS

Name :	D’DÉCOR HOME FABRICS PRIVATE LIMITED (w.e.f. 19.08.2010)
Formerly Known As :	DICITEX DÉCOR PRIVATE LIMITED VIRENDER PROCESSORS PRIVATE LIMITED
Registered Office :	1071/ 1072, Solitaire Corporate Park, Building No.10, 167, Guru Hargovindji Marg, Chakala, Andheri (East), Mumbai – 400 093, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	16.03.1999
Com. Reg. No.:	11-118945
Capital Investment / Paid-up Capital :	Rs.37.500 Millions
CIN No.: [Company Identification No.]	U17120MH1999PTC118945
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Premium Furnishing Fabrics, Dress Materials and Upholstery.
No. of Employees :	1000 [In Office : 100; In Factory : 900] (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 4647000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal 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.

INFORMATION DECLINED BY

Name :	Mr. Bhavin
Designation :	Finance Manager
Date :	16.12.2011

LOCATIONS

Registered Office :	1071/ 1072, Solitaire Corporate Park, Building No.10, 167, Guru Hargovindji Marg, Chakala, Andheri (East), Mumbai – 400 093, Maharashtra, India
Tel. No.:	91-22-66782000 / 2020
Fax No.:	91-22-66782001 / 2021
E-Mail :	sales@ddecor.com goyal@dicitexdecor.com hrd@dicitexdecor.com
Website :	http://www.ddecor.co.in
Corporate Office :	1081/1082, Solitaire Corporate Park – 10, 167, Guru Hargovindji Marg, Andheri-Ghatkopar Link Road, Chakala, Andheri (East), Mumbai – 400 093, Maharashtra, India
Factory :	Plot No: G-15/ 1 and 2/ G-7 / E-26 (1), MIDC Tarapur, Boisar, District Thane – 410 506, Maharashtra, India
Tel No.:	91-2525-279384/ 270820
Fax No.:	91-2525-271991

DIRECTORS

AS ON 30.09.2010

Name :

Mr. Virender Kumar Dharamchand Arora

Designation :

Director

Address :

54 V. K. Cottage, JVPD Scheme, Juhu, Mumbai – 400049, Maharashtra, Indiad

Date of Birth/ Age:

05.04.1939

Date of Appointment :

31.07.2000

DIN No.:

00276052

Name :

Mr. Ajay Virender Arora

Designation :

Director

Address :

54 V. K. Cottage, JVPD Scheme, Juhu, Mumbai – 400049, Maharashtra, India

Date of Birth/ Age:

07.07.1968

Date of Appointment :

28.07.1999

DIN No.:

00276143

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U99999MH1986PTC039325	D.C. Polyester Private Limited	Director	10-10-88	10-10-88	-	Active	NO
2	U17120MH1999PTC118945	D'Decor Home Fabrics Private Limited	Director	28-07-99	28-07-99	-	Active	NO
3	U51398MH2005PTC152046	F N Z Jewels Private Limited	Director	17-03-05	17-03-05	01-09-09	Active	NO
4	U85110KA1995PLC017694	World Resorts Limited	Director	24-07-05	24-07-05	24-01-11	Active	NO
5	U51311MH2008PTC187390	Home Idea Upholstery Private Limited	Director	08-10-08	08-10-08	-	Active	NO

Name :

Mr. Sanjay Virender Arora

Designation :

Director

Address :

54 V. K. Cottage, JVPD Scheme, Juhu, Mumbai – 400049, Maharashtra, India

Date of Birth/ Age:

08.04.1965

Date of Appointment :

31.07.2000

DIN No.:

00276271

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U99999MH1986PTC039325	D.C. Polyester Private Limited	Director	10-10-88	10-10-88	Active	NO
2	U17120MH1999PTC118945	D'Decor Home Fabrics Private Limited	Director	31-07-00	31-07-00	Active	NO
3	U51311MH2008PTC187390	Home Idea Upholstery Private Limited	Director	08-10-08	08-10-08	Active	NO

KEY EXECUTIVES

Name :	Mr. Bhavin
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Ajay V. Arora	1221000
Virendra Kumar D. Arora	620000
Sanjay V. Arora	1237500
Neena V. Arora	655000
Simone A. Arora	16500
Total	3750000

Equity Share Breakup (Percentage of Total Equity)

AS ON 30.09.2010

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Premium Furnishing Fabrics, Dress Materials and Upholstery.

PRODUCTION STATUS [As on 31.03.2010]

Particulars	Installed Capacity	Actual Production (Including Outsourcing)
Yarn	1956 M. Tons	8906728 Kgs
Cloth	17500000 Mtrs.	14083355 Mtrs.

GENERAL INFORMATION

No. of Employees :

1000 [In Office : 100; In Factory : 900] (Approximately)

Bankers :

v Union Bank of India, Branch Santacruz (West), LA Avante, JN of S.V. Road and Main Avenue, Santacruz (West), Mumbai – 400 054, Maharashtra, India

v Punjab and Sind Bank

v ICICI Bank Limited

Facilities :

Secured Loan	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Union Bank of India – Term Loan	641.367	599.913
Union Bank of India- FCL	99.089	0.000
Union Bank of India – OD	65.681	117.976
Vehicle Loan	16.063	0.000
Total	822.200	717.889
Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Directors	226.370	205.458
From Shareholders	102.123	92.280
From Others	213.020	154.335
Total	541.513	452.073

Banking Relations :	--
Auditors :
Name :	Parikh Joshi and Kothare Chartered Accountants
Address :	49/2341, M.H.B. Colony, Gandhi Nagar, Bandra (East), Mumbai – 400 051, Maharashtra, India
Tel No.:	91-22-26515396/ 26428494
Fax No.:	91-22-26455867
E-Mail:	prvb@vsnl.com pjk@mtnl.net.in
Income-tax PAN of auditor or auditor's firm :	AAAFP1239N
Associates/Subsidiaries :	D’Decor Exports Address: 1071/ 1072/ 1081/ 1082, Solitaire Corporate Park, 10167, Guru Hargovindji Marg, Andheri (East), Mumbai – 400 093, Maharashtra, India

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs.40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs.25.000 Millions
1250000	Equity Shares (Of Rs.10/- each fully paid up issued pursuant to scheme of Amalgamation)	Rs.10/- each	Rs.12.500 Millions
	Total		Rs.37.500 Millions

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		37.500	37.500	37.500
2] Share Application Money		0.000	0.00	0.000
3] Reserves & Surplus		1124.350	983.786	470.548
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1161.850	1021.286	508.048
LOAN FUNDS
1] Secured Loans		822.200	717.889	308.098
2] Unsecured Loans		541.513	452.073	375.589
TOTAL BORROWING		1363.713	1169.962	683.687
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2525.563	2191.248	1191.735
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2013.870	2078.730	1157.557
Capital work-in-progress		0.005	0.000	4.607
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	392.307	299.179	286.981
	Sundry Debtors	264.665	157.219	269.817
	Cash & Bank Balances	1.542	16.782	2.102
	Other Current Assets	190.604	135.797	173.647
	Loans, Advances & Deposits	14.491	15.822	53.319
Total Current Assets		863.609	624.799	785.866
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	211.505	413.588	583.042
	Other Current Liabilities	35.151	30.745	27.658
	Provisions	105.450	68.170	145.855
Total Current Liabilities		352.106	512.503	756.555
Net Current Assets		511.503	112.296	29.311
MISCELLANEOUS EXPENSES		0.185	0.222	0.260
TOTAL		2525.563	2191.248	1191.735

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	2603.170	2459.739	NA
		Other Income	17.799	109.315	NA
		TOTAL (A)	2620.969	2569.054	NA
Less	EXPENSES
		Raw Material Consumption	1219.425	1353.259	NA
		Manufacturing/ Trading Expenses	673.765	596.932	NA
		Salaries and Other Benefits	56.343	43.648	NA
		Administration Expenses	100.659	62.929	NA
		Selling and Distribution Expenses	29.027	30.516	NA
		Preliminary Expenses	0.037	0.038	NA
		Increase/ Decrease in Inventory	(38.043)	(23.182)	NA
		TOTAL (B)	2041.213	2064.140	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		579.756	504.914	NA
Less	FINANCIAL EXPENSES (D)		96.303	107.044	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		483.453	397.870	353.453
Less/ Add	DEPRECIATION/ AMORTISATION (F)		266.763	236.167	219.989
	PROFIT BEFORE TAX (E-F) (G)		216.690	161.703	133.464
Less	TAX (H)		76.160	29.290	38.880
	PROFIT AFTER TAX (G-H) (I)		140.530	132.413	94.584
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		952.355	439.117	344.533
Add/ Less	Short Provision of Tax of Previous years		0.034	(1.484)	--
Add/ less	Change in Depreciation Method (Prior Period)		0.000	382.309	--
	BALANCE CARRIED TO THE B/S		1092.919	952.355	439.117
	IMPORTS
		Raw Material (Yarn)	82.126	72.616	59.378
		Chemical	4.259	9.515	6.009
		Packing Materials	10.267	7.703	5.784
		Consumable, Stores and Spares	26.661	19.871	19.194
		Capital Goods (Plant and Machinery)	38.415	372.542	487.300
		Other Expenses/ FF	1.263	0.108	0.000
		Furniture and Fixtures	0.000	0.000	0.448
	TOTAL IMPORTS		162.991	482.355	578.113
	Earnings Per Share (Rs.)		37.47	35.31	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.36	5.15	NA
Net Profit Margin (PBT/Sales)	(%)	8.32	6.57	NA
Return on Total Assets (PBT/Total Assets}	(%)	7.53	5.98	6.87
Return on Investment (ROI) (PBT/Networth)		0.19	0.16	0.26
Debt Equity Ratio (Total Liability/Networth)		1.48	1.65	2.83
Current Ratio (Current Asset/Current Liability)		2.45	1.22	1.04

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors
For Goods	141.117	127.916	121.944
For Capital Goods	20.332	240.443	417.377
For Expenses	50.056	45.229	43.721
	211.505	413.588	583.042

Bankers Charges Report as per Registry

Name of the company	VIRENDER PROCESSORS PRIVATE LIMITED
Presented By	UNION BANK OF INDIA, SANTACRUZ BRANCH, MUMBAI
1) Date and description of instrument creating the change	Term Loan Agreement [Hypothecation of Movables] Dated 11^th March 2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 60.000 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	The Borrower hypothecates and charges to the Bank: - (a) Machinery purchased and imported under L.C. (b) All the tangible movable machinery and plant of the Borrower together with spares, tools and accessories and other movables, both present and future, whether lying loose or in cases which are now lying or stored in or about or shall be brought into or be stored or be in or upon or about the Borrower’s premises and godowns or wherever else the same may be or be held by any party to the order or disposition to the borrower relating to or pertaining to the Borrower’s works at MIDC Tarapur Industrial Area Tarapur
4) Gist of the terms and conditions and extent and operation of the charge.	Term loan Amount : Rs. 60.000 Millions No. of Installments : 60 Amount of Installments : Rs. 1.000 Million Tenure : 5 Years Interest : 8 % per annum with monthly rests
5) Name and Address and description of the person entitled to the charge.	Union Bank of India Santacruz Branch, “La-Avanti”, Junction of S.V. Road and Main Avenue, Santacruz (West), Mumbai – 400 054, Maharashtra, India
6) Date and brief description of instrument modifying the charge	N.A.
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.	N.A.

Corporate identity number of the company	U17120MH1999PTC118945
Name of the company	D'DECOR HOME FABRICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	1071, Solitaire Corporate Park, Building No.10, 167, Guru Hargovindji Marg, Chakala, Andheri (East), Mumbai – 400 093, Maharashtra, India Goyal@Dicitexdecor.Com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10051860
Type of charge	Book debts Movable property
Particular of charge holder	Union Bank of India, Santacruz Branch, “La-Avanti”, Junction of S.V. Road and Main Avenue, Santacruz (West), Mumbai – 400 054, Maharashtra, India
Nature of instrument creating charge	1.Hypothecation (Goods) Agreement(SD-03) 2.Supplementary Agreement to SD-06 Hypothecation Agreement 3.Term Loan Agreement 4.Bank Letter for overall limits (All the above agreement constitute a single charge)
Date of instrument Creating the charge	31.07.2010
Amount secured by the charge	Rs. 1563.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest For Term Loan ROI - BPLR+3.75 % p.a. with monthly rests and/ or as stipulated by bank from time to time. Terms of repayment As stipulated by bank from time to time. Margin As stipulated by bank from time to time. Extent of operation of the charge First Charge (present and future on all securities) Total Limit Rs.1563 Millions Others As Stipulated by bank from time to time and as per agreement and as per sanction letter of the bank
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First Charge (present and future on all securities mentioned below)- (1) Hypothecation of goods / stock / inventories / products etc kept at borrower place / premises / factories / godown's or whereeverelse or in transit including raw material/goods imported under LC and document of title of goods/raw material brought under L.C. (2) Hypothecation of all book debts and receivables (3) Hypothecation of all the plant and machinery Brought Under L.C./Bank Finance, Installed or not installed kept at borrower place or in transit or whereeverelse (4) Hypothecation of all The Assets Purchased Out of Term Loan and Bank Finance (5) Hypothecation of all current, movable and fixed assets of the company
Particulars of the present modification	By this modification C.C. Limit enhanced to Rs.250.000 Millions and New Term Loan X of Rs.174.000 Millions has been given and B.G. limit is enhanced to Rs.80.000 Millions, now total limit Rs.1563.000 Millions, security given by original charge as well as by past modification is continued and hypothecation of all the assets purchased out of term loan/bank finance. terms and conditions

FIXED ASSETS

v Lease Hold land

v Building

v Electrical Fittings

v Furniture and Fixture

v Office Equipments

v Computers

v Plant and Machinery

v Vehicles

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.52.81
UK Pound	1	Rs.82.00
Euro	1	Rs.68.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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.