MIRA INFORM REPORT

Report Date :

28.12.2011

IDENTIFICATION DETAILS

Name :	NAVNEET SYNTHETICS LIMITED (w.e.f. 15.03.1993)
Formerly Known As :	NAVNEET SYNTHETICS PRIVATE LIMITED
Registered Office :	31, Focal Point, Amritsar – 143001, Punjab
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	07.08.1974
Com. Reg. No.:	16-003472
Capital Investment / Paid-up Capital :	Rs.2.841 Millions
CIN No.: [Company Identification No.]	U24302PB1974PLC003472
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Suppliers of Yarns, Embroidery Threads etc.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 160000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an old and 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.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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. Vineet Dalmia
Designation :	Director
Contact No.:	91-9876999000
Date :	19.12.2011

LOCATIONS

Registered Office/ Factory :	31, Focal Point, Amritsar – 143001, Punjab, India
Tel. No.:	91-183-2588446/ 2581068
Mobile No.:	91-9876999000 (Mr. Vineet)
Fax No.:	91-183-2588399
E-Mail :	dalmiavineet@gmail.com office@natrajwooltex.com
Location :	Owned

DIRECTORS

(AS ON 10.09.2011)

Name :

Mr. Kamal Dalmia

Designation :

Managing Director

Address :

24-A, Green Avenue, Amritsar – 143001, Punjab, India

Date of Birth/Age :

27.10.1957

Date of Appointment :

01.07.1995

DIN No.:

00012811

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	U24302PB1974PLC003472	NAVNEET SYNTHETICS LIMITED	Director	1/10/2011	1/7/1995	Active	NO
2	U17113PB1985PLC006255	NATRAJ WOOLTEX LIMITED	Director	6/8/1997	6/8/1997	Active	NO

Name :

Mr. Vineet Dalmia

Designation :

Director

Address :

24-A, Green Avenue, Amritsar – 143001, Punjab, India

Date of Birth/Age :

28.06.1983

Date of Appointment :

26.08.2002

DIN No.:

00013628

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	U21015PB1979PLC004055	PUNJAB SYNTHETICS LIMITED	Director	1/1/2002	1/1/2002	Active	NO
2	U24302PB1974PLC003472	NAVNEET SYNTHETICS LIMITED	Director	26/08/2002	26/08/2002	Active	NO

Name :

Mrs. Veena Dalmia

Designation :

Director

Address :

24-A, Green Avenue, Amritsar – 143001, Punjab, India

Date of Birth/Age :

12.06.1960

Date of Appointment :

12.06.1990

DIN No.:

00013647

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	U21015PB1979PLC004055	PUNJAB SYNTHETICS LIMITED	Director	22/08/1989	22/08/1989	Active	NO
2	U24302PB1974PLC003472	NAVNEET SYNTHETICS LIMITED	Director	12/6/1990	12/6/1990	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 10.09.2011)

Names of Shareholders	No. of Shares
Kamal Dalmia	78500
Kamal Dalmia HUF	73400
K R Aggarwal	70800
Vineet Dalmia and Puneet	24000
Puneet Dalmia and Vineet	20000
Veena Dalmia	16500
Anil Poddar	100
Chiman lal Maheshwari	100
Rajan Kapur	100
Basant Singhania	100
Ajay Choushary	100
Sanyam Kapoor	100
Natasha Kapoor	100
Rajesh Kumar Dingliwal	100
Basudeo Dingliwal	100
Total	284100

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	99.00
Other top fifty shareholders	1.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Suppliers of Yarns, Embroidery Threads etc.
Products :	· Embroidery Threads · Dyed Yarns · Fancy Yarns · Zari Yarns
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Fancy Yarn/ Interlaced/ Airoset Yarn and Embroidery Threads	Kgs.	NA	1950 MT	566566
Job Charges	Kgs.	NA	--	80296

GENERAL INFORMATION

Suppliers :

· Century Rayons

Customers :

Wholesalers, Retailers and End Users

· Natraj Wool Tex Limited

No. of Employees :

100 (Approximately)

Bankers :

· Punjab National Bank,

APL SSI Branch, 46 The Mall, Amritsar – 143001, Punjab, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Punjab National Bank, SME Branch Amritsar
CC A/c No.871841	3.504	2.012
CC A/c No.871850	4.683	3.443
Term Loan A/c No.IB659	0.996	0.825
Term Loan A/c No.IB817	0.117	2.424
Term Loan A/c No.IB914	1.777	1.453
Term Loan A/c No.IB1052	3.462	0.000
Term Loan A/c No.NG668	0.549	0.742
Total	15.088	10.899
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From directors Relatives	0.500	0.500
Security from Dealer	1.289	0.000
Total	1.789	0.500

Banking Relations :	--
Auditors :
Name :	Pradeep Kapoor and Associates Chartered Accountant
Address :	96. Maqbool Road, Amritsar – 143001, Punjab, India
Tel No.:	91-183-2504560
Mobile No.:	91-9872997565
PAN No.:	AAWPK1848J

CAPITAL STRUCTURE

(AS ON 10.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Share	Rs.10/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
284100	Equity Share	Rs.10/- each	Rs.2.841 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		2.841	2.841	2.841
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		36.095	28.248	21.447
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		38.936	31.089	24.288
LOAN FUNDS
1] Secured Loans		15.088	10.899	12.434
2] Unsecured Loans		1.789	0.500	0.500
TOTAL BORROWING		16.877	11.399	12.934
DEFERRED TAX LIABILITIES		4.270	3.380	2.900
TOTAL		60.083	45.868	40.122
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		38.032	30.111	26.879
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		1.193	1.243	0.969
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	23.141	11.084	6.510
	Sundry Debtors	12.699	11.614	10.337
	Cash & Bank Balances	0.384	0.345	1.173
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.730	3.870	2.037
Total Current Assets		39.954	26.913	20.057
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	13.277	8.012	3.758
	Other Current Liabilities	2.619	1.387	1.025
	Provisions	3.200	3.000	3.000
Total Current Liabilities		19.096	12.399	7.783
Net Current Assets		20.858	14.514	12.274
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		60.083	45.868	40.122

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	188.086	132.709	86.657
		Job Charges Received	5.444	4.813	4.901
		Other Income	0.121	0.115	0.308
		TOTAL	193.651	137.637	91.866
Less	EXPENSES
		Cost of Goods Sold		0.100	(0.072)
		Raw Materials Consumed		76.502	44.489
		Job Charges		19.320	15.864
		Power and Fuel		5.588	3.522
		Store and Packing Materials Consumed	178.832	10.932	6.767
		Salary and Wages		4.637	3.793
		Directors Remunerations		1.200	1.040
		Other Expenses		7.106	5.567
		TOTAL	178.832	125.385	80.970
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		14.819	12.252	10.896
Less/ Add	DEPRECIATION/ AMORTISATION		2.349	1.932	1.461
	PROFIT BEFORE TAX		12.470	10.320	9.435
Less	TAX		4.185	3.519	3.280
	PROFIT AFTER TAX		8.285	6.801	6.155
Less	Interim Dividend @ 20%		0.568	0.000	0.000
Add	Provision for Tax Written back for earlier year		0.130	0.000	0.052
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		4.187	5.386	1.679
Less	APPROPRIATIONS
		Transfer to General Reserve	12.000	8.000	2.500
	BALANCE CARRIED TO THE B/S		0.034	4.187	5.386
	Earnings Per Share (Rs.)		29.16	23.94	--

Expected Sales (2011-12): Rs.150.000 Millions

The above information has been parted by Mr. Vineet.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.28	4.94	6.70
Net Profit Margin (PBT/Sales)	(%)	6.63	7.78	10.89
Return on Total Assets (PBT/Total Assets}	(%)	15.99	18.10	20.10
Return on Investment (ROI) (PBT/Networth)		0.32	0.33	0.39
Debt Equity Ratio (Total Liability/Networth)		0.92	0.77	0.85
Current Ratio (Current Asset/Current Liability)		2.09	2.17	2.58

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	----
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last two years	Yes
Profitability for last three years	----
Reasons for variation <> 20%	----
Estimation for coming financial year	Yes
Capital in the business	----
Details of sister concerns	----
Major Suppliers	Yes
Major Customers	Yes
Payments Terms	Yes
Export/ Imports Details (If applicable)	----
Market Information	----
Litigations that the firm/ Promoters Involved in	----
Banking details	Yes
Banking Facility Details	----
Conduct of the Banking Account	----
Buyer visit details	----
Financials, if provided	No
Incorporation details is applicable	----
Last Accounts filed at ROC	----
Major Shareholders, if available	----

OPERATIONS:

Sales and Job Charges for the year ended 31^st March, 2011 were Rs.188.086 Millions and Rs.5.444 Millions as compared to Rs.132.709 Millions and Rs.4.813 Millions for the year ended 31^st March, 2010. The profit after depreciation and Taxes of the company increased from Rs.6.801 Millions during 2009-10 to Rs.8.285 Millions during 2010-11.

TRADE REFERENCE:

· Natraj Wool Tex Limited

· Century Rayons

FORM 8:

Corporate identity number of the company	U24302PB1974PLC003472
Name of the company	NAVNEET SYNTHETICS LIMITED
Address of the registered office or of the principal place of business in India of the company	31, Focal Point, Amritsar – 143001, Punjab, India office@natrajwooltex.com
This form is for	Creation of charge
Type of charge	· Immovable Property · Book Debts · Movable Property (not being pledge)
Particular of charge holder	Punjab National Bank SME Branch, The Mall, Amritsar – 143001, Punjab, India bo3882@pnb.co.in
Nature of instrument creating charge	Hypothecation of goods and book debts to secure cash credit facility
Date of instrument Creating the charge	09.12.2010
Amount secured by the charge	Rs.1.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: 6% Base Rate Terms of Repayments: On Demands Margin: 25% Extent and operation of the charge: 100%
Particulars of the property charged	Stocks and Book Debts

FIXED ASSETS:

· Land (Leasehold)

· Building

· Furniture and Fixture

· Plant and Machinery

· Vehicles

· Car

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.52.89
UK Pound	1	Rs.82.71
Euro	1	Rs.69.15

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--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		47

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.