MIRA INFORM REPORT

Report Date :

14.11.2011

IDENTIFICATION DETAILS

Name :	SUBH LAXMI SYNTEX LIMITED
Registered Office :	49, Shatri Nagar (Main), Bhilwara-311001, Rajasthan
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.10.1987
Com. Reg. No.:	17-004153
Capital Investment/ Paid-up Capital:	Rs.46.275 millions
CIN No.: [Company Identification No.]	U2430RJ1987PLC004153
TAN No.: [Tax Deduction & Collection Account No.]	JDHS01543D
PAN No.: [Permanent Account No.]	AAVCS9139A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Quality Fabrics.
No. of Employees:	Not Available

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 390000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to 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 business dealings with some cautions.

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

LOCATIONS

Registered Office :	49, Shatri Nagar (Main), Bhilwara-311001, Rajasthan, India
Tel. No.:	91-1482-251571 / 252082
Fax No.:	91-1482-251575
E-Mail :	info@subhlaxmiindia.com sales@subhlaxmiindia.com sugamfab@rediffmail.com
Website :	http://www.subhlaxmiindia.com
Factory :	8 km. stone, Chittor Road, Mandapam, Bhilwara-311001, Rajasthan, India
Tel. No.:	91-1482-241642

DIRECTORS

(AS ON 13.08.2011)

Name :

Mr. Gourav Panagria

Designation :

Whole Time Director

Address :

47, Shastri Nagar, Main Sector, Bhilwara-311001, Rajasthan, India

Date of Birth/Age :

15.09.1978

Date of Appointment :

30.10.1998

DIN No :

00767606

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	U70102RJ1994PTC009164	Himgiri Constructions Private Limited	Director	2/1/1995	2/1/1995	13/03/2010	Active	NO
2	U17124RJ1995PTC010743	Subh Laxmi Processors Private Limited	Director	21/03/1997	21/03/1997	-	Active	NO
3	U24304RJ1987PLC004153	Subh Laxmi Syntex Limited	Whole-time director	23/11/2009	30/10/1998	-	Active	NO

Name :

Mr. Shantilal Panagria

Designation :

Managing Director

Address :

47, Shastri Nagar, Main Sector, Bhilwara-311001, Rajasthan, India

Date of Birth/Age :

21.11.1946

Date of Appointment :

26.10.1989

DIN No :

00767632

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	U24304RJ1987PLC004153	Subh Laxmi Syntex Limited	Managing director	23/11/2009	26/10/1989	-	Active	NO
2	U67120MH1986PTC039402	Getner Trading And Investment Pvt Ltd	Director	15/06/1995	15/06/1995	-	Active	NO
3	U14101RJ2004PTC020029	Subh Laxmi Marmo Granites India Private Limited	Director	17/12/2004	17/12/2004	10/2/2008	Active	NO

Name :

Mr. Jagdish Chandra Chechani

Designation :

Director

Address :

Nehru Road, Bhilwara-311001, Rajasthan, India

Date of Birth/Age :

05.08.1957

Date of Appointment :

01.06.1992

DIN No :

01079875

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
S. L. Pangaria	1075650
Asha Devi Pangaria	752640
Gaurav Pangaria	336000
Getner Trading and Investment (Private) Limited, India	291996
S. L. Pangaria H.U.F.	428136
J. C. Chechani	11556
Dishanchal Polytech (Private) Limited, India	597800
Brijeshwari Trading (Private) Limited, India	560200
Subh Laxmi Processors (Private) Limited, India	218480
Komal Singh Choudhary	2400
Sweta Pangaria	114510
Rajendra Modani	100000
Tripati Modani	125000
Manju R. Chechani	10500
Ashish Chchani	2600
Total	4627468

Equity Share Breakup

(AS ON 30.09.2011)

Category	Percentage
Bodies corporate	36.05
Directors or relatives of directors	58.86
Other top fifty shareholders	5.09
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Quality Fabrics.

Products :

· Polyster Viscose / Cotton Blended Suiting

· Plyster / Modal Blended Suiting

· Cotton, Cotton X Polyster and Cotton X Polyster Lycra Fabric

Product Descriptions	Item Code No.
Synthetic Fabrics	5407

PRODUCTION STATUS

Particulars	Units	As on 31.03.2011
Licenced Capaity	Looms	N.A
Installed Capacity	Looms	74

Particulars	Units	As on 31.03.2011
Production
- Own	Mtrs	2940334.10
- Job done for others	Mtrs	2665306.30
	Amt	31106799.85

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, Commercial Branch, B-23, Industrial Estate, Pur Road, Bhilwara-311001, Rajasthan, India

· ICICI Bank Limited

· Industrial Development Bank of India, IDBI Tower, Cuffe Parade, Colaba, Mumab-400005, Maharashtra, India

Facilities :

(Rs. in millions)

Secured Loans	As on 31.03.2011	As on 31.03.2010
Term Loan from State Bank of India (Note 1)	61.764	80.593
Loan from LIC Againsy Keyman Policy	5.103	3.880
ICICI Bank Limited (Vehicle Loan)	0.000	0.214
Working Capital (Note 2)
Cash Credit Limit From
State Bank of India, Bhilwara [Cash Credit Hypothecation]	90.594	11.428
SBI SCL Limit
SBI FCNRB Account	0.000	59.392
SBI EPC A/C / SLC Limit	2.002	1.708
Total	159.463	157.215

(Rs. in millions)

Unsecured Loans	As on 31.03.2011	As on 31.03.2010
From Directors, Shareholders, Others	19.645	19.719
Dealer Deposits and Inter Corporate Loans	3.250	4.250
Total	22.895	23.969

Notes:

1. Term loan from State Bank of India are secured by mortgage of existing and future fixed assets of the company personal guarantee by all the directors of the company.

2. Bank Borrowings are secured against hypothecation of Raw Materials, Stock-In-Process, Finished Goods Consumable Stores, spares and Book Debts of the company and are additionally secured by second charge on all the fixed assets of the company and also secured by personal guarantee of all directors.

3. Vehicle Loan are secured by way of hypothecation of such vehicle.

Banking Relations :	--
Auditors :
Name :	O. P. Dad and Company Chartered Accountants
Address :	First Floor, Balaji Complex, Pur Road, Bhilwara-311001, Rajasthan, India
Income-tax PAN of auditor or auditor’s firm :	AAAFO3593Q
Associates / Sister Concern :	· Getlar Trading and Investment Private Limited · Subh Laxmi Processors Private Limited

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
4750000	Equity Share	Rs.10/- each	Rs.47.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4627468	Equity Share	Rs.10/- each	Rs.46.275 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		46.275	46.274	46.275
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		53.462	51.441	49.729
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		99.737	97.715	96.004
LOAN FUNDS
1] Secured Loans		159.463	157.215	175.625
2] Unsecured Loans		22.895	23.969	22.023
TOTAL BORROWING		182.358	181.184	197.648
DEFERRED TAX LIABILITIES		17.671	18.348	18.040
TOTAL		299.766	297.247	311.692
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		151.161	164.964	168.940
Capital work-in-progress		0.000	0.421	0.335
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	107.583	92.944	96.397
	Sundry Debtors	50.686	41.792	58.064
	Cash & Bank Balances	3.067	3.466	4.243
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	9.328	8.243	9.488
Total Current Assets		170.664	146.445	168.192
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	13.090	7.584	18.243
	Other Current Liabilities	7.301	6.541	7.465
	Provisions	1.668	0.463	0.078
Total Current Liabilities		22.059	14.588	25.786
Net Current Assets		148.605	131.857	142.406
MISCELLANEOUS EXPENSES		0.000	0.005	0.011
TOTAL		299.766	297.247	311.692

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	335.542	301.667	301.746
		Job Weaving Charges	31.107	29.310	8.049
		Other Income	1.574	3.949	8.561
		Profit on Sale of Assets	0.463	0.029	(0.383)
		TOTAL (A)	368.686	334.955	317.973
Less	EXPENSES
		Grey Fabrics Purchase	38.272	31.324	17.848
		Finish Fabrics Purchase	1.590	0.377	1.497
		Raw material consumed	176.148	153.948	157.767
		Stores and Spares consumed	6.899	3.392	3.155
		Manufacturing Expenses	68.872	60.456	54.331
		Payment to and Provision for Employees	15.191	12.908	10.722
		Administrative Expenses	7.104	6.369	6.720
		Selling and Distributions Expenses	21.159	23.420	23.404
		Preliminary Expenses written off	0.005	0.005	0.005
		Increase (Decrease) in stocks	(7.214)	2.512	4.746
		TOTAL (B)	328.026	294.711	280.195
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		40.660	40.244	37.778
Less	FINANCIAL EXPENSES (D)		18.306	18.295	20.842
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		22.354	21.949	16.936
Less/ Add	DEPRECIATION/ AMORTISATION (F)		19.341	19.466	16.716
	PROFIT BEFORE TAX (E-F) (G)		3.013	2.483	0.220
Less	TAX (H)		0.992	0.771	0.144
	PROFIT AFTER TAX (G-H) (I)		2.021	1.712	0.076
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		32.825	31.113	31.037
	BALANCE CARRIED TO THE B/S		34.846	32.825	31.113
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	4.953	12.666	30.098
	TOTAL EARNINGS		4.953	12.666	30.098
	IMPORTS
		Capital Goods and Stores & spares	5.143	14.141	20496
	TOTAL IMPORTS		5.143	14.141	20496
	Earnings Per Share (Rs.)		0.44	0.44	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.55	0.51	0.02
Net Profit Margin (PBT/Sales)	(%)	0.90	0.82	0.07
Return on Total Assets (PBT/Total Assets}	(%)	0.94	0.80	0.06
Return on Investment (ROI) (PBT/Networth)		0.03	0.03	0.00
Debt Equity Ratio (Total Liability/Networth)		2.05	2.00	2.33
Current Ratio (Current Asset/Current Liability)		7.74	10.04	6.52

LOCAL AGENCY FURTHER INFORMATION

OPERATION:

During the year, sales and profit before depreciation have increased as compared to previous year and the company has maintained its reputation in terms of high quality products. The company has also achieved profit before depreciation of Rs.22.354 millions (Previous Year Rs.21.919 millions), which is appreciable in view of the general results of the industry. However, the directors are fully confident to achieve far better results in coming years.

FROM 8:

Corporate identity number of the company	U24304RJ1987PLC004153
Name of the company	SUBH LAXMI SYNTEX LIMITED
Address of the registered office or of the principal place of business in India of the company	49, Shatri Nagar (Main), Bhilwara-311001, Rajasthan, India E-Mail Id: sugamfab@rediffmail.com
This form is for	Modification of charge
Charge identification number of the charge to be modified	90070913
Type of charge	Immovable Property Book Debts Movable Property
Particular of charge holder	State Bank of India, Commercial Branch, B-23, Industrial Estate, Pur Road, Bhilwara-311001, Rajasthan, India E-Mail Id: sbi.04294@sbi.co.in
Nature of instrument creating charge	Letter regarding the grant of individual limits within the overall limit. Supplemental agreement of loan for increase in overall limit. Supplemental agreement of hypothecation of goods and assets for increase in the overall limit. Memorandum of deposit for creation of further charge.
Date of instrument Creating the charge	31.03.2011
Amount secured by the charge	Rs.279.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	a) Rate of Interest On CC @3.15% above the base rate i.e. is 13.15% p.a., On EPC @applicable to export gold card scheme, On existing TL@3.30% above the base rate i.e. 13.30% p.a and on new TL @3.40% p.a above the Baserate b) Terms of Repayment CC Repayable on demand, existing TL as per existing schedule and new TL shall be repayable in 92 months, including moratorium period of 17 month and interest will be served as and when charged to the accounts. First monthly installment shall fall due on 15.01.2013. c) Margin Margin - 25% on raw material and finished goods - 40% on stock in process and stores - 50% on receivables (up to 75 days) - 15% on LC, 25% on BG and 5.00% on Credit exposure on forward contract limit. - 28.57% on land and building and plant and machinery for new TL d) Extent and operation if the charge First charge by way of Hypothecation of stock, Book-debts/receivables, documentary bills, export bills, cheques/draft drawn, advance received and all other current assets and plant and machinery of the Company (present and future). First Charge on entire fixed assets of the Company including EM of land and building and attached plant and machinery (present and future) at plot no 142/2 and 142 (Min.) Chittorgarh Road, Mandapiya, Bhillwara and plot no 142, at 8 KM Stone, Chittorgarh Road, Mandapiya, Bhilwara. e) Others Cash credit hypothecation / FCNRB DL increased from Rs.85.000 Millions to Rs.97.000 Millions which include sub limit for Book-debts of Rs.25.000 Millions and sub limit for EPC/PCFC/FBP/FBD of Rs.4.000 millions. LC of RS.2.000 Millions and BG of Rs. 3.000 millions remain unchanged and Credit exposure limit on forward contract limit enhanced from Rs.1.800 millions to Rs.2.400 Millions. Fresh Term Loan of Rs.50.000 Crore with a sub limit for FLC of Rs.40.000 Millions is now sanctioned for installation of 12 PICANOL weaving machine.
Short Particulars of the property charged	i) Extn. of EM of land and building and attached PandM (present and future) at plot no 142/2 and 142(Min.) Chittorgarh Road, Mandapiya, Bhillwara and plot no 142, at 8 KM Stone, Chittorgarh Road, Mandapiya, Bhl. ii) Extn. Hypothecations of stock, Book-debts/ receivables, documentary bills, export bills, cheques / draft drawn, advance received and all other current assets and plant and machinery of the Company (Present and Future).
Date of instrument modifying the charge	31.03.2011
Particulars of the present modification	Total credit facility enhanced from Rs. 216.400 Millions to Rs. 279.000 Millions including Cash Credit (Hypo.) / FCNRB DL increase from Rs. 85.000 Millions to Rs. 97.000 Millions, credit exposure on forward contract limit enhanced from 1.800 Millions to 2.400 Millions, fresh TL of Rs. 50.000 Millions with a sub limit for one time FLC of Rs. 40.000 Millions, SLC reduced to NIL and other ficility remain unchanged and the charge is extended to cover the total credit facility of Rs. 279.000 Millions.

FIXED ASSETS:

· Land

· Building

· Adm. Building

· Plant and Machinery

· Electric Installation

· Furniture

· Office Equipment

· Fire Fighting

· Vehicle

· Fax and Computer / Software

· DG Set

· Lab Equipment

· Weighing Scale

· Furniture and Fixture

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.50.28
UK Pound	1	Rs.80.07
Euro	1	Rs.68.45

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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	YES
--AFFILIATION	YES/NO	YES
--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.