MIRA INFORM REPORT

Report Date :

04.11.2011

IDENTIFICATION DETAILS

Name :	VASTRAM INDIA PRIVATE LIMITED
Registered Office :	411, R D Chambers, 16 / 11, Arya Smaj Road, Karol Bagh, New Delhi 110005
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.04.1999
Com. Reg. No.:	099407
Capital Investment / Paid-up Capital :	Rs.13.075 millions
CIN No.: [Company Identification No.]	U51311DL1999PTC099407
TAN No.: [Tax Deduction & Collection Account No.]	DELV02718C
PAN No.: [Permanent Account No.]	AABCV1016B
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Fabric
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 166424
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for, small to mediocre 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 – 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 DECLINED BY

Name :	Mr. Mahesh K Jain
Designation :	Director
Date :	03.11.2011

LOCATIONS

Registered Office :	411, R D Chambers, 16 / 11, Arya Smaj Road, Karol Bagh, New Delhi 110005, India
E-Mail :	vastram@rediffmail.com
Admin Office :	3/18, Geeta Colony, Delhi 110031, India
Tel. No.:	91-11-22524333 /
Mobile No.:	91-9811006937 / 9971300046 (Mr. Mahesh)
Fax No.:	91-11-22544333

DIRECTORS

AS ON 01.09.2011

Name :	Mr. Mahesh Kumar Jain
Designation :	Director
Date of Birth/Age :	09.06.1962
Date of Appointment :	21.04.1999
DIN No.:	00003257

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	U74899DL1992PLC049013	Supreme Securities Limited	Director	01/04/1997	01/04/1997	27/06/2009	Active	NO
2	U51311DL1999PTC099407	Vastram India Private Limited	Managing director	21/04/1999	21/04/1999	-	Active	NO
3	U74899DL1986PTC023990	Khandaan Properties Private Limited	Director	18/01/2001	18/01/2001	07/09/2010	Active	NO

Name :	Mr. Om Prakash Jain
Designation :	Director
Date of Birth/Age :	13.02.1930
Date of Appointment :	17.12.2001
DIN No.:	00003284

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	U51311DL1999PTC099407	Vastram India Private Limited	Whole-time director	01/07/2008	17/12/2001	-	Active	NO

Name :	Mr. Pawan Kumar Jain
Designation :	Director
Date of Birth/Age :	18.04.1951
Date of Appointment :	17.12.2001
DIN No.:	00003288

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	U51311DL1999PTC099407	Vastram India Private Limited	Director	17/12/2001	17/12/2001	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 01.09.2011

Names of Shareholders	No. of Shares
Mahesh Kumar Jain	481000
Mukul Tayal	100
Divya Jain	20000
Neeraj Jain	30000
Vikas Jain	65000
Sudesh Jain	30000
Hardesh Jain	40000
Chetan Jain	38000
Santosh Jain	30000
Sant Rewari Singh	55000
Renu Jain	56900
O P Jain	215000
Shashi Jain	10000
Narender Jain	50000
Poonam Jain	30000
Promila Mohta	10000
Anjani Mohta	10000
Ravi Bhardwaj	32000
Mahesh Jain (HUF) – Mahesh Jain (Karta)	52000
R Ramachandran	42500
Nitin Agarwal	10000
Total	1307500

AS ON 01.09.2011

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		70.74
Other top fifty shareholders		29.26
	Total	100.00

BUSINESS DETAILS

Line of Business :

Trader of Fabric

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

Indian Bank, Chandini Chowk Branch, Delhi 110006, India

State Bank of India, Ajmal Khan Road Branch, 12/56, D B Gupta Road, Karol Bagh, New Delhi 110005, India

Facilities :

Rs. In Millions

SECURED LOAN	31.03.2011	31.03.2010
Term Loan
From Bank *	1.270	2.042
Working Capital Loan
From Bank #	48.739	41.156
TOTAL	50.009	43.198
UNSECURED LOAN
Business Loan – ICICI Bank	0.000	0.074
Others	30.725	18.763
From Directors	2.650	5.000
TOTAL	33.375	23.837

# Working Capital Loan have been secured against hypothecation of stock and book debts.

* Term loan form banks have been secured by hypothecation of vehicles.

Banking Relations :	--
Auditors :
Name :	D C G and Company Chartered Accountant
Address :	4819 / 24, Ansari Road, New Delhi 110002, India
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

AS ON 01.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs. 10 each	Rs.15.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1307500	Equity Shares	Rs. 10 each	Rs.13.075 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		13.075	12.550	12.550
2] Share Application Money		0.000	0.210	0.210
3] Reserves & Surplus		28.531	15.852	13.569
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		41.606	28.612	26.329
LOAN FUNDS
1] Secured Loans		50.009	43.198	22.340
2] Unsecured Loans		33.375	23.837	6.560
TOTAL BORROWING		83.384	67.035	28.900
DEFERRED TAX LIABILITIES		0.014	0.071	0.150
TOTAL		125.004	95.718	55.379
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14.085	4.083	2.471
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	96.291	36.343	16.972
	Sundry Debtors	81.780	85.611	56.030
	Cash & Bank Balances	1.148	1.258	1.318
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.407	2.829	1.227
Total Current Assets		182.626	126.041	75.547
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	69.503	31.680	21.564
	Other Current Liabilities	0.945	1.590	0.015
	Provisions	1.258	1.135	1.089
Total Current Liabilities		71.706	34.405	22.668
Net Current Assets		110.920	91.636	52.879
MISCELLANEOUS EXPENSES		0.000	0.000	0.028
TOTAL

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	539.624	384.205	322.712
		Other Income	0.000	0.000	0.000
		TOTAL (A)	539.624	384.205	322.712
Less	EXPENSES
		Selling and Distribution Expenses
		Office Expenses	535.094	380.456	320.268
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	535.094	380.456	320.268
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4.530	3.749	2.444
Less	FINANCIAL EXPENSES (D)		NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.530	3.749	2.444
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.625	0.409	0.343
	PROFIT BEFORE TAX (E-F) (G)		3.905	3.340	2.101
Less	TAX (H)		1.201	1.056	0.777
	PROFIT AFTER TAX (G-H) (I)		2.704	2.284	1.324
	Earnings Per Share (Rs.)		2.14	1.82

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.50	0.59	0.41
Net Profit Margin (PBT/Sales)	(%)	0.72	0.86	0.65
Return on Total Assets (PBT/Total Assets}	(%)	1.98	2.56	2.69
Return on Investment (ROI) (PBT/Networth)		0.09	0.11	0.07
Debt Equity Ratio (Total Liability/Networth)		3.72	3.54	1.96
Current Ratio (Current Asset/Current Liability)		2.54	3.66	3.33

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS

The Company has achieved total turnover of Rs. 539.624 millions, during the year under report, as compared to the last year's turnover of Rs. 384.205 millions. Net profit after tax, during the year under review was Rs. 2.704 millions as compared to the last year's profit of Rs. 2.284 millions. The Directors are quite hopeful to keep the momentum and to achieve better growth and profitability in the years to come, barring unforeseen circumstances.

FIXED ASSETS:

· Air Conditioners

· Car

· Computer

· Office Equipments

· Furniture and Fixture

· Scooter

· Land and Building

FORM 8

Corporate identity number of the company	U51311DL1999PTC099407
Name of the company	VASTRAM INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	411, R D Chambers, 16 / 11, Arya Smaj Road, Karol Bagh, New Delhi 110005, India
This form is for	Creation of charge
Type of charge	Book debts Floating charge Others
Particular of charge holder	State Bank of India, Ajmal Khan Road Branch, 12/56, D B Gupta Road, Karol Bagh, New Delhi 110005, India Email: sbi.00666@sbi.co.in
Nature of instrument creating charge	Agreement of Laon-cum hypothecation
Date of instrument Creating the charge	27.01.2010
Amount secured by the charge	Rs. 50.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest SBAR+1.50% p.a. present effective rate @13.25% p.a. or such other rates as applicable from time to time. Terms of repayment Payable on Demand Margin Stocks and Book-Debts: 25% Extent and operation of the charge 100% to secure Cash Credit Limit of Rs. 50.000 millions, together with interest and all other costs as applicable from time to time.
Short particulars of the property charged (Including location of the property)	1st Charge on all present and future, Current Assets of the Company, including hypothecation of its entire Stocks, lying in showrooms, stores, go-downs, elsewhere, and including goods in transit All present and future Book-Debts, receivables, etc.

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.49.37
UK Pound	1	Rs.78.49
Euro	1	Rs.67.59

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
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	4
--CREDIT LINES	1~10	2
--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		28

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.