MIRA INFORM REPORT

Report Date :

02.05.2011

IDENTIFICATION DETAILS

Name :	SUMATEX LIMITED (w.e.f.13.08.2007)
Formerly Known As :	SUMATEX SERVICES LIMITED (w.e.f.20.07.2007) SUMATEX SERVICES PRIVATE LIMITED
Registered Office :	H-81, RIICO Industrial Area, Pur Road, Bhilwara – 311 001, Rajasthan
Country :	India
Financials (as on) :	30.06.2010
Date of Incorporation :	23.01.1998
Com. Reg. No.:	17-014593
CIN No.: [Company Identification No.]	U29262RJ1998PLC014593
TAN No.: [Tax Deduction & Collection Account No.]	JDHS02916E
PAN No.: [Permanent Account No.]	AAFCS0342F
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Manufactures and Exporters of selvedge design machines, pattern maker machines, textile weaving machine, jacquard design, weaving machines etc.

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 900000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are 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	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. Dinesh
Designation :	Excise Officer
Contact No.:	91-9352110778
Date :	27.04.2011

LOCATIONS

Registered Office :	H-81, RIICO Industrial Area, Pur Road, Bhilwara – 311 001, Rajasthan
Tel. No.:	91-1482-260693 / 260296 / 260496 / 320750
Mobile No :	91-9352110778 (Mr. Dinesh)
Fax No.:	91-1482-260575
E-Mail :	sumatex.sanjeev@gmail.com / sumatex@sancharnet.in
Website :	www.sumatex.com
Location :	Owned
Factory :	SPL-1, Riico Industrial Area, Phase I and II Billya, Bilwara- 311001, Rajasthan, India

DIRECTORS

As On : 06.10.2010

Name :	Mr. Sudeep Malu
Designation :	Director
Address :	A-19, R. K. Colony, Bhilwara–311 001, Rajasthan, India
Date of Birth/Age :	21.08.1961
Qualification :	Graduate
Date of Appointment :	23.01.1998
DIN No :	00177659
Name :	Mr. Sunil Agarwal
Designation :	Executive Director
Address :	Sarkari Darwaza, Bhjilwara-311001, Rajasthan, India
Date of Birth/Age :	06.05.1961
Date of Appointment :	30.10.2009
DIN No :	02822627
Name :	Mr. Naveen Kumar Kakani
Designation :	Director
Address :	C-9, Shastri Nagar, Bhilwara-311001, Rajasthan, India
Date of Birth/Age :	17.07.1975
Date of Appointment :	05.10.2009
DIN No :	00935794
Name :	Mr. Surendra Chandna
Designation :	Director
Address :	2-F-8, New Housing Board, Shastri Nagar, Bhilwara-311001, Rajasthan, India
Date of Birth/Age :	17.08.1961
Date of Appointment :	31.10.2009
DIN No :	00923696
Name :	Mr. Suresh Kogata
Designation :	Director
Address :	A-203, Shastri Nagar, Bhilwara-311001, Rajasthan, India
Date of Birth/Age :	07.07.1960
Date of Appointment :	05.10.2009
DIN No :	00256893
Name :	Mr. Jag Raj Singh Choudhary
Designation :	Director
Address :	303, Pancharatna Complex, Fatehpura Bedia Road, Udaipur-313001, Rajasthan, India
Date of Birth/Age :	29.07.1939
Date of Appointment :	31.10.2009
DIN No :	02822661

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 06.10.2010

Names of Shareholders	No. of Shares
Sudeep Malu	3572456
Supriya Malu	1092344
Sudeep Malu HUF	66260
Surbhit Malu	193200
Sonali Lunawat	210000
Sunita Khicha	126000
Nirmal Jain	64680
Mohan Singh Jain	145320
Sulz Fab Private Limited, India	126000
Crest Latex Private Limited, India	172200
Cardoid Plasteel Private Limited, India	235200
Rajtex Machinery Private Limited, India	400000

AS ON 06.10.2010

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

BUSINESS DETAILS

Line of Business :	Manufactures and Exporters of selvedge design machines, pattern maker machines, textile weaving machine, jacquard design, weaving machines etc.
Products :	Computerized Pattern Makers (selvedges NAME WRITER) used by the we making patterns, designs erc. on fabric selsvedged Accumulators for weft insertion Software for development of designs for dobbies / full width furnishing fab pattern makers for name, fabric selvedge bands Full Width Electronic Jacqards in variants of 672,1344 2688 or 5376 hooks users
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

200 (In Office) (Approximately)

Bankers :

Bank of Baroda, SSI Branch, Pur Road, Bhilwara-311001, Rajasthan, India

Facilities :

SECURED LOAN	30.06.2010 Rs. In Millions	30.06.2009 Rs. In Millions
(i) From Bank of Baroda SSI Branch Bhilwara of CC Limit	50.189	34.267
(Secures agaist equitable mortgage of company’s land and building and hypothecation of inventory and book debts and personal guarantee of directors)
(ii) Term Loan – I From Bank of Baroda SSI Branch Bhilwara	6.889	9.489
(Secured against hypothecation of plant and machineries and M. Fixed Assets and Equity Mortgage of Company’s land and building situated at F-77A, H-79-80-8-E-1-81-A, Riico Extension, Pur Road, Bhilwara and SPL-1, Riico I and II, Bhilwara, and book debts and personal guarantee of director and relative of director)
(iii) Term Loan – II From Bank of Baroda SSI Branch Bhilwara	25.174	14.225
(Secured against hypothecation of plant and machineries and M. Fixed Assets and Equity Mortgage of Company’s land and building situated at F-77A, H-79-80-8-E-1-81-A, Riico Extension, Pur Road, Bhilwara and SPL-1, Riico I and II, Bhilwara, and book debts and personal guarantee of director and relative of director)
(iv) From ICICI	0.068	0.706
(Hypothecation of Toyota Corolla, Zen, Octva and Bolero car and personal guarantee of Directors)
(v) From HDFC	0.368	0.000
(Hypothecation of maruti car auto and personal guarantee of directors)
Total	82.688	58.687
UNSECURED LOAN	30.06.2010 Rs. In Millions	30.06.2009 Rs. In Millions
From Director and Relative
1. Sh Sudeep Malu	2.169	0.000
2. M/s Sudeep Malu HUF	0.000	2.500
Total	2.169	2.500

Banking Relations :	--
Auditors :
Name :	R C Somani and Associate Chartered Accountant
Address :	201, Ahinsa Tower, Bhilwara-311001, Rajasthan, India

CAPITAL STRUCTURE

As On : 30.06.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs. 10/- each	Rs. 150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2005000	Equity Shares	Rs. 10/- each	Rs. 20.050 millions
4995000	Equity Shares	Rs. 10/- each	Rs. 49.950 millions
	Total		Rs. 70.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		30.06.2010	30.06.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		70.000	6.450	5.335
2] Share Application Money		0.000	0.000	0.800
3] Reserves & Surplus		155.826	111.074	36.217
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		225.826	117.524	42.352
LOAN FUNDS
1] Secured Loans		82.688	58.687	31.012
2] Unsecured Loans		2.169	2.500	5.228
TOTAL BORROWING		84.857	61.187	36.240
DEFERRED TAX LIABILITIES		3.484	2.523	2.148
SECURITY DEPOSIT FOR CONTACTORS		0.000	3.451	11.297
TOTAL		314.167	184.685	92.037
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		215.641	115.617	44.826
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.284	0.166	0.063
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	57.844	37.772	16.976
	Sundry Debtors	24.867	20.042	24.195
	Cash & Bank Balances	5.699	7.064	11.585
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	16.131	19.677	9.655
Total Current Assets		104.541	84.555	62.411
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	11.601	10.466
	Other Current Liabilities	4.090	5.228	5.208
	Provisions	4.513	6.985	10.055
Total Current Liabilities		20.204	22.679	15.263
Net Current Assets		84.337	61.876	47.148
MISCELLANEOUS EXPENSES		13.905	7.026	0.000
TOTAL		314.167	184.685	92.037

PROFIT & LOSS ACCOUNT

	PARTICULARS		30.06.2010	30.06.2009	31.03.2008
	SALES
		Income	186.171	177.406	137.621
		Other Income	8.058	3.591	4.495
		TOTAL (A)	194.229	180.997	142.116
Less	EXPENSES
		Raw Materials and Mill Store Consumption	113.250	95.469	88.849
		Grey and Finish Cloth Purchases	11.362	33.150	6.677
		Employees Remuneration	19.451	20.627	22.525
		Increase/(Decrease) in Finished Goods	2.972	(4.307)	1.480
		Selling and Administrative Expenses	10.028	6.707	7.331
		Manufacturing Expenses	5.219	2.727	3.527
		Amortization	3.990	1.178	0.000
		TOTAL (B)	166.272	155.551	130.389
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		27.957	25.446	11.727
Less	FINANCIAL EXPENSES (D)		8.431	8.052	3.178
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		19.526	17.394	8.549
Less/ Add	DEPRECIATION/ AMORTISATION (F)		7.703	5.907	3.026
	PROFIT BEFORE TAX (E-F) (G)		11.823	11.487	5.523
Less	TAX (H)		3.468	1.449	1.768
	PROFIT AFTER TAX (G-H) (I)		8.355	10.038	3.755
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		22.045	12.007	8.851
Less	APPROPRIATIONS
		Proposed Dividend	0.000	0.000	0.599
		Utilized for Bonus Share	13.005	0.000	0.000
	BALANCE CARRIED TO THE B/S		17.395	22.045	12.007
	EXPORT VALUE		0.137	0.966	0.000
	IMPORTS VALUE		26.477	25.124	20.534

Sales (2010-2011) : Rs.230.000 millions

Expected Sales (2011-2012) : Rs.2500.000 millions

KEY RATIOS

PARTICULARS		30.06.2010	30.06.2009	31.03.2008
PAT / Total Income	(%)	4.30	5.55	2.64
Net Profit Margin (PBT/Sales)	(%)	6.35	6.47	4.01
Return on Total Assets (PBT/Total Assets}	(%)	3.69	5.74	5.15
Return on Investment (ROI) (PBT/Networth)		0.05	0.10	0.13
Debt Equity Ratio (Total Liability/Networth)		0.48	0.74	1.27
Current Ratio (Current Asset/Current Liability)		5.17	3.73	4.09

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

The company has manufactured and sold Computerized Pattern Makers Machine during the year including its all the models. The company has done job wok and trading of fabric during the year. The company has registered a growth of seven percentage in its turnover which has grown to Rs. 194.200 millions from the previous period of 1 5 months Rs. 181.000 millions, The company's operating profits also has gone up by Rs. 0.335 million. The company has enlarged its customer base and started exporting its products during the year.

The company has participated in various shows. The company has launched various new variants of its Comp Pattern make during the year. The company maintains its Leadership in CPM and having largest market share in India as Indian manufacturer.

Product development has been the key focus area of the company in Jacquard technology. The company has successfully completed various development project. During the financial year company has carried out work on different development projects under progress. Significant progress in development works in core projects like complete range of Computerized Pattern Makers for full width loom, needle and narrow fabric looms has taken place.

During the financial year company has started software development for Full Width Computerized Pattern Makers (hooks range 672 to 2688). In this software company has work on. Adding a lots of new feature with worldwide software. Additional this the company has started development of Dobby designing software.

FORM 8

Corporate identity number of the company	U29262RJ1998PLC014593
Name of the company	SUMATEX LIMITED
Address of the registered office or of the principal place of business in India of the company	H-81, RIICO Industrial Area, Pur Road, Bhilwara – 311 001, Rajasthan
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, SSI Branch, Pur Road, Bhilwara-311001, Rajasthan, India
Nature of instrument creating charge	Supplemental composite agreement of hypothecation of goods, book debts, movable machinery and vehicles Supplemental memorandum of entry
Date of instrument Creating the charge	29.11.2010
Amount secured by the charge	Rs. 150.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest @ 4.25 % over base rate Terms of repayment Repayable on demand Margin - 25 % on stock and movable machinery - 40 % on book debts - 15 % cash margin in respect of ILC / FLC Extent and operation of the charge Hypothecation all the stock of raw materials, SIP, finished goods, consumable spares, packing materials, book debts, all the movable machinery, stores, spares parts etc. of borrower (present and future) Extension of EM of factory land and building situated at SPL-1, Riico Industrial area, Phase I and II, Biliya, Bhilwara. Extension of EM of factory land and building situated at H-79-80-81, F-77-A, E-1-81-A, Riico Industrial Area, Bhilwara.
Short particulars of the property charged (Including location of the property)	Hypothecation all the stock of raw materials, SIP, finished goods, consumable spares, packing materials, book debts, all the movable machinery, stores, spares parts etc. present and future. Extension of equitable mortgage of factory land and building situated at SPL-1, Riico Industrial area, Phase I and II, Biliya, Bhilwara together with all structures thereon and attached plant and machinery. Extension of equitable mortgage of factory land and building situated at H-79, 80, 81, Riico Industrial area, Bhilwara together with all structures thereon and attached plant and machinery. Extension of equitable mortgage of factory land and building situated at F-77-A, Riico Industrial area, Bhilwara, together with all structures thereon and attached plant and machinery. Extension of equitable mortgage of factory land and building situated at E-1-81-A, Riico Industrial area, Bhilwara,
Charge identification number of the charge to be modified	90075521
Date of instrument modifying the charge	26.12.2008
Particulars of the present modification	Charge is extended to secure the enhanced limit of Rs. 150.000 millions, details are as under - Cash credit limit enhanced from Rs.50.000 millions to Rs. 100.000 millions with a sub limit for book debts of Rs. 30.000 millions and ILC / FLC limit of Rs. 50.000 millions remained unchanged

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Tools

· Vehicles

· Computer

· Air Conditioner

· Tube Well

· Compressor

· Office Equipment

WEB SIDE DETAILS

HISTORY

Subject has been one of the pioneers for the weaving industry with decade long immaculate track record in enhancing productive efficiency and competitiveness of the weaving industry and emerging as one of the fastest growing textile engineering Company. They have been the first Indian company to manufacture Electronic controlled Computerized Pattern Maker (CPM) Ranging from 24 – 6000 hooks in different models for different means and purposes. CPM (s) are used by the weaving industry for making furnishing fabrics and to make patterns, designs, names and styles on various purposes fabric. As of now more than 7000 installations in different versions and models and more than 300 satisfied customers all over India speaks for our products and services.

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.44.38
UK Pound	1	Rs.73.87
Euro	1	Rs.65.83

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.