MIRA INFORM REPORT

Report Date :

31.05.2011

IDENTIFICATION DETAILS

Name :	SHRINATH TEX PRINTS PRIVATE LIMITED
Registered Office :	158/11, 12, 13, GIDC, Near Water Tank, Pandesara, Surat – 394221, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	26.04.1994
Com. Reg. No.:	04-021893
Capital Investment / Paid-up Capital :	Rs.9.521 Millions
CIN No.: [Company Identification No.]	U17119GJ1994PTC021893
TAN No.: [Tax Deduction & Collection Account No.]	SRTS01520B
PAN No.: [Permanent Account No.]	AADCS3570M
Legal Form :	Private Limited Liability Company
Line of Business :	Dyeing and Printing of Man Made Fabrics Cloths
No. of Employees :	Not Divulged by Management

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 8570000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an 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.

INFORMATION DECLINED BY

Name :	Mr. Manish Khurana
Designation :	Managing Director
Mobile No.:	91-9825136910
Date :	26.05.2011

LOCATIONS

Registered Office :	158/11, 12, 13, GIDC, Near Water Tank, Pandesara, Surat – 394221, Gujarat, India
Tel. No.:	91-261-2891218 / 2891189 / 2892545
Mobile No.:	91-9825136910 [Mr.Manish Khurana ]
E-Mail :	Girishahuja1955@gmail.com

DIRECTORS

As on 30.09.2010

Name :	Mr. Girish Kumar Tejuram Ahuja
Designation :	Director
Address :	20-B, Adarsh Society, Near Gokulam Dairy, Athwalines, Surat – 395007, Gujarat, India
Date of Birth/Age :	21.11.1955
Date of Appointment :	26.04.1994
DIN :	01556968
Name :	Mr. Manish Nandlal Khurana
Designation :	Director
Address :	303, Meghdhanush Apartment-1, Near Kishor Park Soceity, Ghod Dod Road, Surat – 395007, Gujarat, India
Date of Birth/Age :	05.02.1977
Date of Appointment :	14.08.2003
DIN :	01855673

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Girishkumar Ahuja	242010
Dayaprakash Khurana	12010
Madanlal KHurana	120500
Sakhidevi Khurana	2000
Mithilesh Khurana	7500
Usha Khurana	4500
Bharati Khurana	4000
Nirajkumar Khurana	54000
Krishankumar Khurana	23000
Nandlal Khurana	49000
Sureshkumar and sons HUF	72000
Poonam khurana	33000
Raj khurana	30000
Saroj khurana	2500
Ratnadevi khurana	2500
Shyamlal khurana	28500
Sarojdevi sancheti	10
Krishankumar ahuja	123000
Sulekharani ahuja	10000
Vinodkumar arora	50000
Ajaykumar jain	1000
Baldeokishan poddar	10
Premlata poddar	10
Ramavatar agarwal and sons	20
Amish khurana	16000
Ankur khurana	15000
Veenadevi ahuja	50000
Girish kumar kalawatia	10
Girish kumar kalawatia HUF	10
Manjudevi Kalawatia	10
Total	952100

As on 30.09.2010

Category	Percentage
Directors or relatives of Directors	99.89
Other top fifty shareholders	0.11
Total	100.00

BUSINESS DETAILS

Line of Business :

Dyeing and Printing of Man Made Fabrics Cloths

PRODUCTION STATUS as on 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Job work of Cloth	Mtrs.	--	--	48994577.58

GENERAL INFORMATION

No. of Employees :

Not Divulged by Management

Bankers :

• Oriental Bank of Commerce, Jash Textile Market, Riing Road, Surat – 395002, Gujarat, India
• ICICI Bank Limited

Facilities :

Secured Loan [Rs. in million]	31.03.2010	31.03.2009
GIDC for plot at hitech park	2.756	3.235
Cash credit from oriental bank of commerce against hypothecation of stocks and book debts	8.595	2.618
From ICICI bank limited secured against hypothecation of vehicles	0.273	1.049
Total	11.624	6.903
Unsecured Loan [Rs. in million]	31.03.2010	31.03.2009
From shareholders and directors	5.760	4.160
From bodies Corporate	1.042	0.000
Total	6.802	4.160

Banking Relations :	--
Auditors :
Name :	Shiv Kumar Agrawal and Company Chartered Accountant
Address :	701 to 703, Gloden Plaza, Near Kinnary Cinema, Ring Road, Surat – 395002, Gujarat, India
Tel. No.:	91-261-2345495
Fax No.:	91-261-2355495
E-Mail :	shivagwl@yahoo.com

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
2,000,000	Equity Shares	Rs.10/-each	Rs.20.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
952,100	Equity Shares	Rs.10/-each	Rs.9.521 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

Particulars		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		9.521	9.521	9.521
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		11.904	9.142	6.193
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		21.425	18.663	15.714
LOAN FUNDS
1] Secured Loans		11.624	6.903	8.140
2] Unsecured Loans		6.802	4.160	6.232
TOTAL BORROWING		18.426	11.063	14.372
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		39.851	29.726	30.086
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		21.471	23.895	20.678
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.210	0.210	0.210
DEFERREX TAX ASSETS		1.112	0.752	0.386
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.311	8.939	5.442
	Sundry Debtors	22.762	20.528	18.422
	Cash & Bank Balances	0.539	1.418	0.569
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	12.046	11.436	9.813
Total Current Assets		39.658	42.321	34.246
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	16.545	24.143	18.561
	Other Current Liabilities	0.430	6.654	1.473
	Provisions	5.625	6.655	5.400
Total Current Liabilities		22.600	37.452	25.434
Net Current Assets		17.058	4.869	8.812
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		39.851	29.726	30.086

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
SALES
	Income	130.882	131.605
	Other Income	1.041	0.319
	TOTAL	131.923	131.924	113.557
EXPENSES
	Manufacturing Expenses	98.646	102.658
	Salaries wagers and benefits	14.886	12.406
	Administrative and other Expenses	9.212	8.045
	TOTAL	122.744	123.109	106.387
				Including Finance Expenses
PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		9.179	8.815
FINANCIAL EXPENSES		1.624	1.209
PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		7.555	7.606	7.170
DEPRECIATION/ AMORTISATION		3.541	3.477	2.586
PROFIT BEFORE TAX		4.014	4.341	4.584
TAX		1.613	1.758	1.711
PROFIT AFTER TAX		2.401	2.583	2.873
Deferred Tax Liability [assets]		(0.360)	(0.366)	(0.221)
PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		9.142	6.193	NA
BALANCE CARRIED TO THE B/S		11.903	9.142	NA
Earnings Per Share (Rs.)		2.52	2.71	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.82	1.96	2.53
Net Profit Margin (PBT/Sales)	(%)	3.07	3.30	NA
Return on Total Assets (PBT/Total Assets}	(%)	6.57	6.55	8.35
Return on Investment (ROI) (PBT/Networth)		0.19	0.23	0.29
Debt Equity Ratio (Total Liability/Networth)		1.91	2.60	2.53
Current Ratio (Current Asset/Current Liability)		1.75	1.13	1.35

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE DURING THE YEAR:

During the year, the company’s job labor charges income has remained almost constant. There was high level of competition not only amongst processing units but printing segment is also getting competition from embroidery units. There is heavy fluctuation in prices of raw materials while there is no corresponding rise in processing charges due to excess capacity in the industry. In spite of all these reasons, the company has been able at achieve reasonable results. The Company has also put hard efforts to minimize the cost of production and processing losses.

FUTURE OUTLOOK:

To sustain the growth in such a depressed market condition and in competitive age, the company has planned a strategy but the future of textile processing depends not only on domestic market but also on export market. The Directors are making every effort to improve the quality of processing revive the industry and sustain and make further improvement in the performance of the company.

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors for trade	16.500	23.911	14.141
Sundry Creditors for others	0.045	0.232	4.420
Total	16.545	24.143	18.561

Bankers Charges Report as per Registry

Corporate identity number of the company	U17119GJ1994PTC021893
Name of the company	SHRI NATH TEX PRINTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	158/12-13 G I D C Near Watertank, Pandesara, Surat, Gujarat, India
This form is for	Modification of Charge
Charge identification (ID) number of the charge to be modified	90100066
Type of charge	Book Debts Movable property Floating Charge Others
Particular of charge holder	Oriental Bank of Commerce, Jash Textile Market, Riing Road, Surat – 395002, Gujarat, India
Nature of instrument creating charge	Supplemental Agreement to Secure Credit/Loan Facilities
Date of instrument Creating the charge	14.10.2009
Amount secured by the charge	Rs.7.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest - PLR-1.50%, i.e. 10.50% P.A. to be recovered on Monthly rests subject to change in PLR and spread from time to time. (Present PLR is 12.00%) Penal Interest @2.00% P.A. on irregular portion Terms of Repayment - On Demand / Subject to renewal Margin - 25% On Stock and Book Debts Extent and Operation of the charge - First and Exclusive charge on the Assets stated in Point No. 15 as below for entire dues of the Company until fully repaid together with interest and costs.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of Stock of company Hypothecation of Receivable of the company Hypothecation of existing Plant and Machinery of the company

FIXED ASSETS :

• Land
• Factory Building
• Plant and Machinery
• Furniture and Fixtures
• Computer
• Office Equipments
• Weighing Scale
• Mobile
• Plot Hitech Park
• Motor Cart
• Tempo

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.45.10
UK Pound	1	Rs.74.27
Euro	1	Rs.64.35

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	NO
--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.