MIRA INFORM REPORT

Report Date :

29.12.2011

IDENTIFICATION DETAILS

Name :	TDB SPINNERS PRIVATE LIMITED
Formerly Known as :	MENON SPINNERS PRIVATE LIMITED
Registered Office :	415-418, Vikram Tower, Sapna Sangeeta Road, Indore – 452001, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2011 (Profit and Loss A/c)
Date of Incorporation :	03.12.1996
Com. Reg. No.:	10-011441
Capital Investment / Paid-up Capital :	Rs.45.000 Millions (As on 31.03.2010)
CIN No.: [Company Identification No.]	U17111MP1996PTC011441
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, exporter and Importer of Yarn and Cotton Yarn
No. of Employees :	65 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 240000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Financial position of the company is improving. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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 – 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. Raju
Designation :	Accounts Department
Contact No.:	91-731-2402219
Date :	21.12.2011

LOCATIONS

Registered Office :	415-418, Vikram Tower, Sapna Sangeeta Road, Indore – 452001, Madhya Pradesh, India
Tel. No.:	91-7312402219 / 4090339
Fax No.:	91-731-2404796
E-Mail :	akhilesr01@gmail.com tdnjlindore@yahoo.co.in
Location :	Owned
Factory :	Indore, Madhya Pradesh, India

DIRECTORS

AS ON 30.09.2010

Name :	Mrs. Laxmi Narayan Gupta
Designation :	Director
Address :	House No.552, Khatiwala Tank, Indore, India
Date of Birth/Age :	07.09.1952
Date of Appointment :	05.05.2006
DIN No.:	00054456

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	U18101MP1996PLC011103	TIKAMSA DULICHAND NATURAL FIBRES LIMITED	Director	9/8/1996	9/8/1996	-	Active	YES
2	U17111MP1996PTC011441	TDB SPINNERS PRIVATE LIMITED	Director	5/5/2006	5/5/2006	-	Active	NO

Name :	Mr. Akhilesh Gupta
Designation :	Director
Address :	House No.552, Khatiwala Tank, Indore, India
Date of Birth/Age :	01.07.1978
Date of Appointment :	05.05.2006
DIN No.:	00053798

Name :	Mr. Amrish Gupta
Designation :	Additional Director
Address :	House No.552, Khatiwala Tank, Indore, India
Date of Birth/Age :	18.08.1982
Date of Appointment :	10.12.2009
DIN No.:	02723180

Name :	Mrs. Tanvi Gupta
Designation :	Additional Director
Address :	House No.552, Khatiwala Tank, Indore, India
Date of Birth/Age :	19.07.1984
Date of Appointment :	10.12.2009
DIN No.:	02721012

Name :	Mr. Richa Gupta
Designation :	Additional Director
Address :	House No.552, Khatiwala Tank, Indore, India
Date of Birth/Age :	21.07.1980
Date of Appointment :	10.12.2009
DIN No.:	02721023

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Rajkumari Menon	418000
Ashok Menon	297500
Vijay Menon	16000
Amrish Gupta	313500
Laxmi Narayan Gupta	1214900
Mahendra Gupta	920100
Alok Gupta	500000
Akhilesh Gupta	500000
Pradyuman Gupta	320000
Total	4500000

AS ON 30.09.2010

Equity Shares Break Up	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, exporter and Importer of Yarn and Cotton Yarn
Exports :
Products :	Finished Goods
Countries :	· South Africa · China · Sri Lanka
Imports :
Products :	Raw Material
Countries :	Germany
Terms :
Selling :	L/C, Cash, Credit
Purchasing :	L/C, Cash, Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Own : Cotton Yarn	MT.			890.539
Cotton Waste	MT.			425.654
		3200	3154
Job Work Cotton Yarn	MT.			10278.806
Cotton Waste	MT.			741.157

GENERAL INFORMATION

Customers :

· Wholesalers

· Retailers

· Manufacturing Company

No. of Employees :

65 (Approximately)

Bankers :

Bank of Baroda, Navlakha Area Branch, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Bank of Baroda, Indore (Cash Credit Limits are secured by first charge over fixed assets and hypothecation of current assets of the company and guaranteed by director )	38.769	18.045
Total	38.769	18.045
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Directors / Body Corporate	6.462	34.489
Total	6.462	34.489

Cash Credit : Rs. 70.000 millions

Banking Relations :	----
Auditors :
Name :	Nagori Nuwal and Company Chartered Accountant
Address :	229, Starlit Tower, 29, Y.N. Road, Indore – 452001, Madhya Pradesh, India
Tel. No.:	91-731-2530047
Email :	nagorinuwal@yahoo.com

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs.45.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs.45.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		45.000	45.000
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		15.583	4.800
4] (Accumulated Losses)		0.000	(5.516)
NETWORTH		60.583	44.284
LOAN FUNDS
1] Secured Loans		38.769	18.045
2] Unsecured Loans		6.462	34.489
TOTAL BORROWING		45.231	52.534
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		105.814	96.818
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		43.728	48.524
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	80.050	48.063
	Sundry Debtors	52.834	23.671
	Cash & Bank Balances	18.579	4.376
	Other Current Assets	0.000	0.000
	Loans & Advances	23.223	7.570
Total Current Assets		174.686	83.680
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	101.938	34.596
	Other Current Liabilities	0.000	0.000
	Provisions	10.691	0.833
Total Current Liabilities		112.629	35.429
Net Current Assets		62.057	48.251
MISCELLANEOUS EXPENSES		0.029	0.043
TOTAL		105.814	96.818

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1793.538	1384.274	222.693
		Other Income	2.938	0.982
		TOTAL (A)	1796.476	1385.256	222.693
Less	EXPENSES
		Cotton Purchase	85.176	116.701
		Yarn Purchase	42.477	136.520
		Material Consumed	1216.180	811.425
		Power and Fuel	8.446	7.554
		Stores and Spares Consumed	7.849	1.301
		Factory Overhead	398.552	307.059
		Employees Remuneration and Benefits	2.338	1.879
		Repairs and Maintenance	3.872	0.279
		Administration and Selling Expenses	20.454	14.406
		Director Remuneration	2.400	0.000	214.856
		Preliminary and Preoperative Expenses Written off	0.014	0.015
		Increase / Decrease in Stock	(36.625)	(40.141)
		TOTAL (B)	1751.133	1356.998
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		45.343	28.258
Less	FINANCIAL EXPENSES (D)		16.633	4.985
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		28.710	23.273	7.837
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.730	3.635	3.554
	PROFIT BEFORE TAX (E-F) (G)		24.980	19.638	4.283
Less	TAX (H)		4.873	3.338	0.013
	PROFIT AFTER TAX (G-H) (I)		20.107	16.300	4.270
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		10.783	5.517	9.787
	BALANCE CARRIED TO THE B/S		NA	10.783	5.517
	Earnings Per Share (Rs.)		---	3.62	0.94

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.11	1.14	1.91
Net Profit Margin (PBT/Sales)		1.39	1.41	---
Return on Total Assets (PBT/Total Assets}	(%)	--	8.99	3.23
Return on Investment (ROI) (PBT/Networth)		--	0.32	0.09
Debt Equity Ratio (Total Liability/Networth)		--	2.60	1.98
Current Ratio (Current Asset/Current Liability)		--	1.55	2.36

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1. Year of Establishment	Yes
2. Locality of the firm	Yes
3. Constructions of the firm	Yes
4. Premises details	Yes
5. Type of Business	Yes
6. Line of Business	Yes
7. Promoter’s background	-----------
8. No. of Employees	Yes
9. Name of person contacted	Yes
10. Designation of contact person	Yes
11. Turnover of firm for last three years	Yes
12. Profitability for last three years	No
13. Reasons for variation <> 20%	No
14. Estimation for coming financial year	Yes
15. Capital in the business	Yes
16. Details of sister concerns	No
17. Major suppliers	No
18. Major customers	No
19. Payments terms	Yes
20. Export / Import details	Yes
21. Market information	-------
22. Litigations that the firm / promoter involved	------
23. Banking Details	Yes
24. Banking facility details	No
25. Conduct of the banking account	------
26. Buyer visit details	------
27. Financials, if provided	No
28. Incorporation details, if applicable	------
29. Last accounts filed at ROC	------
30. Major Shareholders, if available	------

NOTE :

The registered office address of the company has been shifted from 84-Lalaram Nagar, Indore, Madhya Pradesh, India to present address w.e.f. 12.12.2006

FORM 8

Corporate identity number of the company	U17111MP1996PTC011441
Name of the company	TDB Spinners Private Limited
Address of the registered office or of the principal place of business in India of the company	415-418, Vikram Tower, Sapna-Sangeeta Road, Indore – 452001, Madhya Pradesh, India
This form is for	Modification of charge
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	Bank of Baroda, Navlakha Area Branch, 42, Khalsa Chambers, Navlakha Main Road, Indore – 452001, Madhya Pradesh, INDIA
Nature of instrument creating charge	1. Composite Hypothecation Agreement. 2. Supplemental Memorandum Entry. 3. Letter of Continuing security. 4. Bank' Sanction letter. 5. D.P. Note
Date of instrument Creating the charge	17/01/2011
Amount secured by the charge	Rs. 125.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest For Cash Credit rate is 3.50% over Base Rate i.e. 12.50% p.a. For EPC/FBP/FBD rate is 1.25% above Base Rate i.e. 10.25% p.a. Terms of repayment Cash Credit (Stocks and Book Debts) : 12 Months EPC/FBP/ FBD (sub-limit of cash credit) : 12 Months Inland / Foreign Bills Discounted : 12 Months. Margin Cash Credit : 25% for RM, SIP, FG, Stores and Spares and Packing materials. 40% for Book Debts EPC/FBD/FBP : 15% on FOB value of export order. Inland / Foreign Bills Discounted: NIL Extent and operation of the charge As per the Composite Hypothecation Agreement and Bank's Sanction Letter and Supplemental Memorandum of Entry. Other Nil
Short particulars of the property charged (Including location of the property)	Hypothecation of stocks both present and future and all stock of raw materials, work in progress, Finished Goods such as Yarn and all types of cotton yarn. Factory land and Building situated at Khasra No. 206/4 in Patwari Halka No. 25 Gram Bicholi Mardana, Indore. Hypothecation of Plant and Machinery situated at place mentioned in other movable assets situated at place mentioned Property situated at flat no. 415-418 III Rd Floor Vikram Tower, Indore
Date of instrument modifying the charge	03/11/2009
Particulars of the present modification	Cash Credit limit increased from 35.000 millions to 70.000 millions and Inland / Foreign Bills Discounted increased from 30.000 millions to 55.000 millions

FIXED ASSETS :

· Land

· Site Development

· Building

· Plant and Machinery

· Electrical

· D.G. Set

· Water System

· Fire Extinguisher

· Coolers

· Furniture and Fixture

· Office Equipments

· Maruti Car

· Computer and Printer

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. 53.21
UK Pound	1	Rs. 83.31
Euro	1	Rs. 69.51

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--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		32

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.