MIRA INFORM REPORT

Report Date :

04.01.2011

IDENTIFICATION DETAILS

Name :	UGAM IMPEX LIMITED

Formerly Known As :	UGAM IMPEX PRIVATE LIMITED

Registered Office :	7, Ruby Trade Centre, Building No. 7, Savani Char Rasta, Behind Gitanjali Cinema, Varachha Road, Surat – 395006, Gujarat

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	07.10.1996

Com. Reg. No.:	04-030876

CIN No.: [Company Identification No.]	U51100GJ1996PLC030876

TAN No.: [Tax Deduction & Collection Account No.]	SRTU00553A

PAN No.: [Permanent Account No.]	ACHPB9356P

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer of textile products.

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 1646000

Status :	Satisfactory

Payment Behaviour :	Usually correct

Litigation :	Clear

Comments :	Subject is a well 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 – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

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. Tushar Shah
Designation :	Director
Contact No.:	91-9987062628
Date :	24.12.2010

LOCATIONS

Registered Office :	7, Ruby Trade Centre, Building No. 7, Savani Char Rasta, Behind Gitanjali Cinema, Varachha Road, Surat – 395006, Gujarat, India
Tel. No.:	91-261-4090120 / 118
Mobile No.:	91-9987062628 (Mr. Tushar Shah)
Fax No.:	91-261-4090108
E-Mail :	ugamimpexpvt.ltd@gmail.com alpesh@rajintl.co.in
Area :	2500 sq. ft.
Location :	Owned

Factory :	3-B/3-C, 2^nd Floor, New Office Building, Above Tamilnad Bank, Bombay Market, Surat – 395006, Gujarat, India

DIRECTORS

As on 30.09.2010

Name :	Mr. Rameshkumar K. Bodra
Designation :	Director
Address :	37, Diamond Nagar, Opposite Mira Nagar, Varachha Road, Surat – 395006, Gujarat, India
Date of Birth/Age :	04.01.1964
Date of Appointment :	07.10.1996

Name :	Mr. Nagjibhai V. Dabhi
Designation :	Director
Address :	248, Sitaram Nagar II, Puna – Bombay Market Road, Surat – 395010, Gujarat, India
Date of Birth/Age :	20.11.1964
Date of Appointment :	20.04.2003

Name :	Mr. Alpesh R. Bodra
Designation :	Director
Address :	37, Diamond Nagar, Opposite Mira Nagar, Varachha Road, Surat – 395006, Gujarat, India
Date of Birth/Age :	20.09.1986
Date of Appointment :	20.02.2008

Name :	Mr. Tushar V. Shah
Designation :	Director
Address :	102, Snehal Adarsh Dugdhalay Lane, Marve Road, Malad (West), Mumbai – 400064, Maharashtra, India
Date of Birth/Age :	12.05.1976
Date of Appointment :	20.02.2008

Name :	Mr. Jagdishchandra K. Bodra
Designation :	Director
Address :	37, Diamond Nagar, Opposite Mira Nagar, Varachha Road, Surat – 395006, Gujarat, India
Date of Birth/Age :	23.03.1970
Date of Appointment :	25.09.2008

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders		No. of Shares
Mr. Rameshkumar K. Bodra		875906
Mrs. Rekha R. Bodra		800
Mr. Laxman H. Balar		800
Mr. Nagjibhai V. Patel		800
Mr. Parshottam Dayalbhai Bodra HUF		800
Mr. Hasmukh Parshottambhai Bodra HUF		700
Smt. Kailash H. Bodra		290640
Mr. Parshottam Dayalbhai Bodra		61700
Mrs. Samju Parshottambhai Bodra		700
Mr. Hasmukh Parshottambhai Bodra		133020
Mr. Sambhu Bodra		700
Mr. Girish Karamshibhai Bodra		496201
Mr. Sumit Rameshbhai Bodra		900
Mr. Alpesh R. Bodra		342467
Mr. Sunil Rameshbhai Bodra		630150
Mrs. Kailash Girishbhai Bodra		278116
Mrs. Goriben Karamshibhai Bodra		411066
Mr. Jagdish Karamshibhai Bodra		415000
Total		3940466

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	46.07
Directors or relatives of Directors	53.93
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of textile products.

Products :

Polyster Yarns
Cotton Yarns
Blended Yarns
Carpet Yarns
Viscose Yarns
Acrylic Yarns
Metallic Yarns

Product	ITC Code
Trading of Yarn and Grey Cloth	511
Trading of Diamonds and Laser Majoori	369
Power Generation Plant (Wind Mill)	--

Terms :

Selling :

Cash and Credit (30 days / 60 days / 90 days)

Purchasing :

Cash and Credit (30 days / 60 days / 90 days)

GENERAL INFORMATION

Customers :

End Users and OEM’s

No. of Employees :

250 (Approximately)

Bankers :

State Bank of India, 1^ST Floor, Kiran Chambers, Ring Road, Surat, Gujarat, India
Oriental Bank of Commerce, Jash Textile Market, Ring Road, Surat – 395002, Gujarat, India

Facilities :

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Oriental Bank of Commerce Cash Credit Account against Debtors.	0.000	71.682
State Bank of India Cash Credit Account	149.397	0.000
State Bank of India Term Loan for Wind Mill.	57.203	0.000
OBC Bank Fabia Car Loan (Secured by vehicle acquired)	0.517	0.740
ICICI Bank Car Loan A/c. (Secured by vehicle acquired)	0.136	0.300
Total	207.253	72.722

NOTES :-

The company has taken cash Credit Facility of Rs. 150.000 Millions from State Bank of India, Commercial Branch, Ring Road, Surat against hypothecation of all chargeable current assets of the company and additionally secured by way of second charge of Equitable Mortgage on Fixed Assets of the directors of the Company. The said facilities are further secured by personal guarantee of all the directors which is repayable on demand.
The company has also taken loan of Rs.57.000 Millions from State Bank of India for the purchase of Wind Mill against hypothecation of entire Plant and Machinery of the Wind Mill.
The company has also taken loan of Rs. 0.740 Million from Oriental bank of Commerce for the purchase of Fabia Car against hypothecation of Fabia car. Loan amount repayable within one year Rs.0.291 million including interest wherever separate amount of interest is not available.
The company has also taken Swift car loan of Rs.0.480 Million from ICICI Bank for the purchase of Maruti Swift against hypothecation of Swift car. Loan amount repayable within one year Rs.0.190 million including interest wherever separate amount of interest is not available.

Unsecured loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
From Directors	0.000	0.406
From Relatives or directors	4.213	96.779
From others	19.691	0.000
Total	23.904	97.185


Banking Relations :	--

Auditors :
Name :	Manoj N. Makhania Chartered Accountant
Address :	606, 6^th Floor, Centre Point, Near Kadiwala School, Ring Road, Surat – 395002, Gujarat, India

CAPITAL STRUCTURE

As on 30.09.2010

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

3940466	Equity Shares	Rs.10/- Each	Rs.39.404 Millions

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

3371826	Equity Shares	Rs.10/- Each	Rs.33.718 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Expected Sales ( 2010-2011 ) : Rs.3500.000 Millions

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		33.718	12.112	5.967
2] Share Application Money		0.001	0.000	3.085
3] Reserves & Surplus		377.978	65.634	8.440
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		411.697	77.746	17.492
LOAN FUNDS
1] Secured Loans		207.253	72.722	32.039
2] Unsecured Loans		23.904	97.185	12.511
TOTAL BORROWING		231.157	169.907	44.550
DEFERRED TAX LIABILITIES		7.181	0.284	0.003

TOTAL		650.035	247.937	62.045

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		106.537	3.473	1.661
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		15.088	0.000	2.500
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	22.742	0.000
	Sundry Debtors	1622.208	314.490	79.157
	Cash & Bank Balances	5.013	0.166	0.676
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	10.281	3.746	2.932
Total Current Assets		1637.502	341.144	82.765
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	1105.957	95.818	24.875
	Provisions	3.135	0.862	0.006
Total Current Liabilities		1109.092	96.680	24.881
Net Current Assets		528.410	244.464	57.884

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		650.035	247.937	62.045

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income
		Other Income
		TOTAL (A)	2899.041	1111.573

Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	2878.855	1108.272

	PROFIT BEFORE TAX (A-B) (C)		20.186	3.301

Less	TAX (D)		10.335	1.412

	PROFIT AFTER TAX (C-D) (E)		9.851	1.889

	Earnings Per Share (Rs.)		7.48	3.16

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.34	0.17	-

Return on Total Assets (PBT/Total Assets}	(%)	1.16	0.96	-

Return on Investment (ROI) (PBT/Networth)		0.05	0.04	-

Debt Equity Ratio (Total Liability/Networth)		3.25	3.43	3.97

Current Ratio (Current Asset/Current Liability)		1.48	3.53	3.33

LOCAL AGENCY FURTHER INFORMATION

FIXED ASSETS :-

Plant and Machinery
Laser Machine
Mobile Phone
Fabia Car
Computer
Furniture
Air Conditioner
Electric installation
Swift car
Tea Machine
Shop at union point
Wind Mill

FORM 8 :-

This form is for	Creation of charge
Corporate identity number of the company	U51100GJ1996PLC030876
Name of the company	UGAM IMPEX LIMITED
Address of the registered office or of the principal place of business in India of the company	7, Ruby Trade Centre, Building No. 7, Savani Char Rasta, Behind Gitanjali Cinema, Varachha Road, Surat – 395006, Gujarat, India
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	State Bank of India, 1^ST Floor, Kiran Chambers, Ring Road, Surat, Gujarat, India
Nature of description of the instrument creating or modifying the charge	1. Agreement of Loan for Overall Limit 2. Agreement of Hypothecation of Goods & Assets 3. Letter regarding grant of Individual Limits within the overall limit
Date of instrument Creating the charge	10.03.2010
Amount secured by the charge	Rs.211.100 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest : 1.Term Loan-1% above SBAR i.e.12.75% p.a. 2.FBWC- 0.75% above SBAR i.e. 12.50% p.a. Terms of Repayment : 1. Working Capital : Repayable on Demand 2. Term Loan: Repayable in 57 monthly installments of Rs. 1.000 Million each starting from July,2010 Margin : Finished Goods(stock)-25% Book Debts - 40% land & Build/Plant & machinery(Term Loan) - 34.55% Extent and Operation of the charge : Charge is for entire dues of the company until fully repaid together with the interest & cost.
Short particulars of the property charged	For Cash Credit & CEL : Hypothecation of all chargeable current assets of the company For Term Loan : Hypothecation over entire plant & machinery of the wind mill at Laxmivas, Taluka : Malia, Miyana

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.44.67
UK Pound	1	Rs.69.44
Euro	1	Rs.59.37

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.

MIRA INFORM REPORT

0.000

1622.208

5.013

0.000

10.281

1637.502

1105.957

3.135

1109.092

528.410

0.34

1.16

0.05

3.25

1.48

Unit