MIRA INFORM REPORT

Report Date :

12.05.2011

IDENTIFICATION DETAILS

Name :	MANOHAR CAPITAL MARKETS LIMITED
Registered Office :	66, Vinod Villa, Room No.304, Cavel Cross Lane No.3, Kalbadevi, Mumbai-400002, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.06.1995
Com. Reg. No.:	11-89432
Capital Investment / Paid-up Capital :	Rs.8.642 Millions
CIN No.: [Company Identification No.]	U67190MH1995PLC089432
TAN No.: [Tax Deduction & Collection Account No.]	MUMM20324D
PAN No.: [Permanent Account No.]	AAACM3868M
Legal Form :	A Closely held Public Limited Liability Company.
Line of Business :	Trader of Yarns and Textile
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 97000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small 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 PARTED BY

Name :	Mr. Kamal Garg
Designation :	Manager- Account and Finance
Contact No.:	91-9924562131
Date :	11.05.2011

LOCATIONS

Registered Office :	66, Vinod Villa, Room No.304, Cavel Cross Lane No.3, Kalbadevi, Mumbai-400002, Maharashtra, India
Mobile No.:	91-9924562131 (Mr. Kamal)
E-Mail :	manoharcapital@drdcs.net mcml2007@yahoo.co.in
Area :	20000 sq. ft.
Location :	Owned
Branch :	607, Hazoori Chambers, Zampa Bazar, Surat-395003, Gujarat, India
Tel. No.:	91-261-2420091
Fax No.:	91-261-2443589

DIRECTORS

As on 30.09.2010

Name :	Mr. Deepak Manohar Tayal
Designation :	Director
Address :	301, River Crest, Athwa Lines, Surat-395007, Gujarat, India
Date of Birth/Age :	12.06.1995
Date of Appointment :	31.08.1969
Name :	Mr. Alok Manohar Tayal
Designation :	Director
Address :	301, River Crest, Athwa Lines, Surat-395007, Gujarat, India
Date of Birth/Age :	01.09.1973
Date of Appointment :	09.02.1996
Name :	Mrs. Pooja Alok Tayal
Designation :	Director
Address :	301, River Crest Apartment, Near Municipal Commissioner Lane, Parle Point, Surat-395007, Gujarat, India
Date of Birth/Age :	08.02.1977
Date of Appointment :	01.10.2006

KEY EXECUTIVES

Name :	Mr. Kamal
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Sagarmal Manohar Tayal	126800
Laxmi Manoharlal Tayal	90300
Deepak Manoharlal Tayal	51400
Alok Manoharlal Tayal	222500
Prabha Deepak Tayal	301600
Kailashchandra Manoj Deora	100
Manoj Priti Deora	100
Alok Tayal Huf	900
Deepak Tayal Huf	11300
Nikunj Deepak Tayal	100
Devika Deepak Tayal	900
Kunal Alok Tayal	100
Mohit Alok Tayal	100
Pooja Alok Tayal	6800
Agarwal Prints Private Limited, India	6800
Premium Polyest Private Limited, India	16000
Chiron Finance Private Limited, India	6000
Ganga Melodies Private Limited, India	51200
Pushpak Hosiery Manufacturing Works Private Limited, India	24800
Total	917800

As on 30.09.2010

Category	Percentage
Bodies corporate	11.00
Directors or relatives of Directors	88.00
Other top fifty shareholders	1.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Trader of Yarns and Textile

Products :

Product Description	Item Code
Synthetics Yarn	54023300

Terms :

Selling :

Cash and Credit ( 30 to 60 to 90 days)

Purchasing :

Cash and Credit ( 30 to 60 to 90 days)

GENERAL INFORMATION

Customers :

· Wholesalers

· Retailers

· End Users

· OEM’s

No. of Employees :

50 (Approximately)

Bankers :

• Bank of Baroda, Salabataura Branch, Surat-395007, Gujarat, India
• Standard Chartered Bank, 1^st Floor, C K Tower, Besides Sargam Shopping Centre, Parle Point, Surat-395007, Gujarat, India
• Barclays Bank
• HDFC Bank
• Kotak Mahindra Bank
• ABN Amro Bank

Facilities :

Particulars	As on 31.03.2009 (Rs. In Millions)
Secured Loans
Cash Credit Loan (against hypothecation of book debts)	18.105
Total	18.105

Particulars	As on 31.03.2009 (Rs. In Millions)
Unsecured Loans
From other Banks
Barclays Bank	0.890
HDFC Bank	0.711
Kotak Mahindra Bank	0.511
Standard Chartered Bank	0.737
ABN Amro Bank	1.541
Form Directors
Alok Manoharlal Tayal	0.046
Alok Manoharlal Tayal HUF	0.001
Deepak Manoharlal Tayal HUF	0.008
Pooja Alok Tayal	0.032
Form Directors Relatives and Share Holders
Laxmi Manoharlal Tayal	0.009
Prabha Deepak Tayal	0.007
Devika Deepak Tayal	0.001
Mohit Alok Tayal	0.003
Kunal Alok Tayal	0.003
Nikunj Deepak Tayal	0.002
Total	4.502

Banking Relations :	-
Auditors :
Name :	Nanavati Dalal and Company Chartered Accountant
Address :	502, Lalbhai Contractors Complex, Opposite Parsi Library, Nanpura, Surat-395001, Gujarat, India

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1100000	Equity Shares	Rs.10/- Each	Rs.11.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
917800	Equity Shares	Rs.10/- Each	Rs.9.178 Millions

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
900000	Equity Share	Rs.10/- Each	Rs.9.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
864200	Equity Share	Rs.10/- Each	Rs.8.642 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		8.642	7.350	7.172
2] Share Application Money		0.000	3.900	0.000
3] Reserves & Surplus		15.579	3.762	1.594
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		24.221	15.012	8.766
LOAN FUNDS
1] Secured Loans		49.867	18.105	3.573
2] Unsecured Loans		5.882	4.502	9.941
TOTAL BORROWING		55.749	22.607	13.514
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		79.970	37.619	22.280
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.578	0.517	0.338
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.080	3.667	0.000
	Sundry Debtors	98.648	58.194	50.038
	Cash & Bank Balances	0.405	0.518	0.807
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	7.979	2.757	4.642
Total Current Assets		111.112	65.136	55.487
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors		23.646	31.635
	Other Current Liabilities	28.930	2.241	1.131
	Provisions	2.790	2.147	0.779
Total Current Liabilities		31.720	28.034	33.545
Net Current Assets		79.392	37.102	21.942
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		79.970	37.619	22.280

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	826.306	479.129	333.036
		Other Income	4.813	2.640	2.763
		TOTAL (A)	831.119	481.769	335.799
Less	EXPENSES
		Trading Expenses	9.823	8.640	6.619
		Administration, Selling, Distribution and Financial Charges	7.300	6.273	3.410
		Purchase of Yarn	804.758	462.515	323.496
		TOTAL (B)	821.881	477.428	333.525
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		9.238	4.341	2.274
Less	FINANCIAL EXPENSES (D)		4.614	1.970	1.254
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.624	2.371	1.020
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.164	0.087	0.087
	PROFIT BEFORE TAX (E-F) (G)		4.460	2.284	0.933
Less	TAX (H)		1.651	0.814	0.310
	PROFIT AFTER TAX (G-H) (I)		2.809	1.470	0.623
	Earnings Per Share (Rs.)		3.24	2.00	0.87

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.34	0.31	0.19
Net Profit Margin (PBT/Sales)	(%)	0.54	0.48	0.28
Return on Total Assets (PBT/Total Assets}	(%)	3.99	3.48	1.67
Return on Investment (ROI) (PBT/Networth)		0.18	0.15	0.11
Debt Equity Ratio (Total Liability/Networth)		3.61	3.37	5.37
Current Ratio (Current Asset/Current Liability)		3.50	2.32	1.65

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Detail

Particulars	As on 31.03.2010 (Rs. In Millions )	As on 31.03.2009 (Rs. In Millions )	As on 31.03.2008 (Rs. In Millions )
Sundry Creditor for Goods	NA	23.374	31.221
Creditors for Expenses	NA	0.272	0.414

Note:

Registered Office of the company has been shifted from 303 Bhimsen Apartment, Vishal Nagar Marve Road, Malad (west), Mumbai-400064, Maharashtra, India to the present address w.e.f. 01.12.2009

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U67190MH1995PLC089432
Name of the company	MANOHAR CAPITAL MARKETS LIMITED
Address of the registered office or of the principal place of business in India of the company	303 Bhimsen Apartment, Vishal Nagar Marve Road, Malad (w), Mumbai-400064, Maharashtra, India
Type of charge	Book Debts Movable Property
Particular of charge holder	Standard Chartered Bank, 1^st Floor, C K Tower, Besides Sargam Shopping Centre, Parle Point, Surat-395007, Gujarat, India Emil ID: aakash.shah@sc.com
Nature of description of the instrument creating or modifying the charge	Hypothecation Agreement of Stock and Book Debts Dated 02.07.2009
Date of instrument Creating the charge	02.07.2009
Amount secured by the charge	Rs.60.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Rate of Interest - 12% Terms of Repayment Repayment Through Cash Flows in Overdraft Margin 25% on stocks and book debts Extent and Operation of the charge 1^st Charge On Properties For Rs.60.000 millions Others Overdraft Facility Rs.32.500 millions Letter of Credit Rs.20.000 millions CBN Rs. 7.500 millions --------------------------- Total Facility Rs.60.000 millions
Short particulars of the property charged	All stocks and book debts of the company lying at company's office, godown, warehouse or any other location and goods in transit.

Fixed Assets

• Air Conditioner
• Computer
• Electric Fittings
• Furniture
• T. V. Set
• Office Equipment

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.44.69
UK Pound	1	Rs.73.12
Euro	1	Rs.64.39

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		29

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.