MIRA INFORM REPORT

Report Date :

26.11.2011

IDENTIFICATION DETAILS

Name :	STARLING SILK MILLS PRIVATE LIMITED
Registered Office :	2E, Radha Gobinda Saha Lane, Kolkata – 700017, West Bengal
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	23.07.1996
Com. Reg. No.:	21-080568
Capital Investment / Paid-up Capital :	Rs.2.461 Millions
CIN No.: [Company Identification No.]	U17299WB1996PTC080568
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of a wide variety of Yarn and Silk Fabrics
No. of Employees :	250 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 56000
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.

ECGC Country Risk Classification List – September 30, 2011

Country Name

Previous Rating (30.06.2011)

Current Rating (30.09.2011)

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. Azizur Rahman
Designation :	Director
Contact No.:	91-9932046385
Date :	24.11.2011

LOCATIONS

Registered Office :	2E, Radha Gobinda Saha Lane (Park Circus), Kolkata – 700017, West Bengal, India
Tel. No.:	91-33-30520995 / 22877556 91-3512-246385
Mobile No.:	91-9434046455 / 9932046385 [Mr. M. A. Rahman]
Fax No.:	91-3512-246383
E-Mail :	starlingsilk@gmail.com
Website :	http://www.starlingsilk.com
Area :	2500 sq.ft.
Location :	Owned
Factory :	Unit Baranagar, P. O. Jalalpur, P S Kaliachak, District Malda-732101, West Bengal, India
Tel No.:	91-33-30520995
Area :	1500 sq. ft.
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :

Mr. Azizur Rahman

Designation :

Director

Address :

Village – Baranagar, P. O. Jalal – Pur, Kalia – Chak, Malpa – 732206, West Bengal, India

Date of Birth/Age :

05.03.1965

Qualification :

B. Com.

Date of Appointment :

23.07.1996

Election Commission Identity Card No. :

WB/07/048/411274

DIN :

01013884

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	U17299WB1996PTC080568	STARLING SILK MILLS PRIVATE LIMITED	Director	23/07/1996	23/07/1996	-	Active	NO
2	U45400WB2007PTC118590	A.R. INFRATECH PRIVATE LIMITED	Director	13/09/2007	13/09/2007	20/09/2008	Active	YES

Name :

Mrs. Selina Rahman

Designation :

Director

Address :

Village – Baranagar, P. O. Jalal – Pur, Kalia – Chak, Malpa – 732206, West Bengal, India

Date of Birth/Age :

01.12.1975

Qualification :

B. A.

Date of Appointment :

23.07.1996

Election Commission Identity Card No. :

WB/07/048/459467

DIN :

02146354

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Azizur Rahman	181200
Selina Rahman	64900
Total	246100

Equity Share Breakup (Percentage of Total Equity)

AS ON 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate (not mentioned above)	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of a wide variety of Yarn and Silk Fabrics

Products :

Product Description	Rs. In Millions [as on 31.03.2007]
Silk Yarn Silk Thread	500600-03
Silk Product Waste	500310-01

• Silk Knitting Yarns (for sweater and winter fashion)
• Carpet Silk Yarn
• Silk Noil Yarn counts ranging from 0s to 60 single and double
• Matka Yarn (uneven/fancy) counts ranging from 10s to 50s Nm)
• Lycra with Silk twisted counts ranging from 40 Nm to 210 Nm)
• Silk Tops 0f all types of silk for blending with other fibers
• Matka Silk Fabrics
• Muga Silk Fabrics
• Eri Silk Dress Materials
• Spun Silk Sarees
• Color Spun Silk Yarn
• Dyed Spun Silk Yarn, etc.

Exports :

Products :

Yarn and Silk Fabrics

Countries :

• Turkey
• USA
• Bangladesh
• European Countries

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS [As on 31.03.2010]

Particulars	Unit	Actual Production
Degummed	Kg.	179175.087
Spun Yarn	Kg.	124158.185

GENERAL INFORMATION

Customers :

• Wholesalers
• Retailers
• Manufacturer
• End Users

No. of Employees :

250 [Approximately]

Bankers :

• Bank of Baroda, Malda Branch, District Malda, Malda – 732101, West Bengal, India
• Punjab National Bank, New Alipore Branch, Block G, New Alipore, Kolkata-700053, West Bengal, India

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
B.O.B. Malda CC -5001	23.484	24.080
B.O.B Park Circus CC- 05/26	0.950	0.956
(Against hypothecation of stock and debtors)
B.O.B. Term Loan A/C 6002 (1^st)	4.258	6.738
B.O.B. Term Loan A/C 6006 (2^nd )	7.221	10.177
(Against hypothecation of plant and machinery)
Total	35.913	41.951
Unsecured Loan	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Deferred Payment Creditors for Capital Work	7.100	7.100
Creditors Deferred	3.010	3.010
Sundry Creditors for Capital Goods	3.000	3.000
From Directors	7.350	7.350
From Directors	9.300	9.300
Total	29.760	29.760

Banking Relations :	--
Auditors :
Name :	Bhattacharya Sengupta and Company Chartered Accountants
Address :	10, Clive Row (1^st Floor), Kolkata – 700017, West Bengal, India
Tel No.:	91-33-22421592 / 6386
PAN :	AAFFB3400Q

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
250,000	Equity Shares	Rs. 10/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
246,100	Equity Shares	Rs. 10/- each	Rs. 2.461 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		2.461	2.461	2.461
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		11.594	9.234	6.853
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		14.055	11.695	9.314
LOAN FUNDS
1] Secured Loans		35.913	41.951	33.424
2] Unsecured Loans		29.760	29.760	26.760
TOTAL BORROWING		65.673	71.711	60.184
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		79.728	83.406	69.498
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		39.467	41.653	47.132
Capital work-in-progress		0.000	2.041	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	38.737	33.989	18.908
	Sundry Debtors	6.471	6.019	4.109
	Cash & Bank Balances	0.437	0.561	0.185
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.364	1.360	1.525
Total Current Assets		47.009	41.929	24.727
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.743	0.640	1.137
	Other Current Liabilities	0.489	0.344	0.111
	Provisions	1.717	1.533	1.514
Total Current Liabilities		6.949	2.517	2.762
Net Current Assets		40.060	39.412	21.965
MISCELLANEOUS EXPENSES		0.201	0.300	0.401
TOTAL		79.728	83.406	69.498

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income		38.083	40.194
		Other Income		0.989	1.153
		TOTAL (A)	78.473	39.072	41.347
Less	EXPENSES
		Raw Material Purchased minus returns		26.651	23.736
		Salaries and Wages		5.307	5.453
		Other Manufacturing expenses		6.412	6.638
		Administrative and Management Expenses	70.801	1.900	1.740
		Insurance charges		0.602	0.476
		Transformer connection expenses written off		0.100	0.100
		Increase/ Decrease in Stock		[15.075]	[6.482]
		TOTAL (B)	70.801	25.897	31.661
			[Including Finance Expenses]
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			13.175	9.686
Less	FINANCIAL EXPENSES (D)			5.423	3.759
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		7.672	7.752	5.927
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.285	4.721	2.714
	PROFIT BEFORE TAX (E-F) (G)		3.387	3.031	3.213
Less	TAX (I)		1.027	0.650	0.766
	PROFIT AFTER TAX (G-I) (J)		2.360	2.381	2.447
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		9.234	6.853	4.406
	BALANCE CARRIED TO THE B/S		11.594	9.234	6.853
	EARNINGS IN FOREIGN CURRENCY		0.839	0.240	NA
	Earnings Per Share (Rs.)		9.59	9.67	9.94

Particulars	31.03.2011
Sales Turnover [Approximately]	100.000

Expected Sales (2011-2012) : Rs.140.000 millions

The above information has been parted by Mr. Azizur Rahman [Director].

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.01	6.09	5.92
Net Profit Margin (PBT/Sales)	(%)	4.32	7.96	7.99
Return on Total Assets (PBT/Total Assets}	(%)	3.92	3.63	4.47
Return on Investment (ROI) (PBT/Networth)		0.24	0.26	0.34
Debt Equity Ratio (Total Liability/Networth)		5.17	6.35	6.76
Current Ratio (Current Asset/Current Liability)		6.76	16.66	8.95

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Construction of the firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoters background	-
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of contact person	Yes
Turnover of firm for last three years	Yes
Profitability for last three years	No
Reasons for variation <> 20%	-
Estimation for coming financial year	Yes
Capital the business	No
Details of sister concerns	No
Major Suppliers	No
Major Customers	No
Payment Terms	Yes
Export / Import Details [If Applicable]	Yes
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	No
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	No
Incorporation details, if applicable	-
Last accounts filed at ROC	-
Major Shareholders, if applicable	-

Contingent Liabilities : [As on 31.03.2010]

• Bank guarantee issued of Rs.1.164 millions not renewed in the year.

Bankers Charges Report as per Registry

Corporate identity number of the company	U17299WB1996PTC080568
Name of the company	STARLING SILK MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	2E, Radha Gobinda Saha Lane, Kolkata – 700017, West Bengal, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10030083
Type of charge	Book Debts Movable Property Others
Particular of charge holder	Bank of Baroda, Malda Branch, District Malda, Malda – 732101, West Bengal, India Email : rathba@bankofbaroda.com
Nature of instrument creating charge	Composite Hypothecation Agreement of Goods, Book Debt, Moveable Machinery and Vehicle
Date of instrument Creating the charge	16.12.2010
Amount secured by the charge	Rs.47.545 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest - Details as per Sanction Letter Terms of Repayment - Details as per Sanction Letter Margin - Details as per Sanction Letter Extent and Operation of the charge - Amount outstanding towards Loan, Interest and Other Charges levied by Ban from time to time Others – Total Limit of Rs. 47.545 Millions includes - Cash Credit Limit Rs. 20.000 Millions Term Loan I Rs 2.933 Millions Term Loan II Rs 5.633 Millions Bill Discounting against Prime Bank LC - Rs 12.500 Millions SME Medium Term Loan - Rs 5.000 Millions Bank Guarantee - Rs 1.479 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of Stock, Book Debts, Vehicles and Moveable Machinery. For more particulars refer to Sanction Letter
Date of instrument modifying the charge	08.11.2008
Particulars of the present modification	After this modification the overall limit of Rs. 47.545 Millions includes - Cash Credit - Rs 20.000 Millions Term Loan I - Rs 2.933 Millions Term Loan II - Rs 5.633 Millions Bill Discounting against Prime Bank LC - Rs 12.500 Millions SME Medium Term Loan - Rs. 5.000 Millions Bank Guarantee - Rs 1.479 Millions

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	10030083
Corporate identity number of the company	U17299WB1996PTC080568
Name of the company	STARLING SILK MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	2E, Radha Govind Saha Lane (Park Circus), Kolkata – 700017, West Bengal, India
Type of charge	Book Debts Movable Property Others
Particular of charge holder	Bank of Baroda, Malda Branch, District Malda, Malda – 732101, West Bengal, India rathba@bankofbaroda.com
Nature of description of the instrument creating or modifying the charge	Supplemental composite agreement of hypothecation of goods, book debts, movable machinery and vehicles
Date of instrument Creating the charge	08.11.2008
Amount secured by the charge	Rs. 50.479 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest On Cash Credit at BPLR p.a. with monthly rests 14 % On Term Loan I 0.50 % above BPLR p.a. with monthly rests 14.50 % On Term Loan II 0.50 % above BPLR p.a. with monthly rests 14.50 % On Bank Guarantee Commission as per Bank Norms Terms of Repayment Cash Credit – Repayable on Demand Term Loan I – Repayable in 41 monthly installments of Rs. 0.183 Million Term Loan II – Repayable in 51 monthly installments of Rs. 0.217 Million Bank Guarantee – Payable on Demand Margin Cash Credit – 25 % on Stock and Bookdebts Term Loan I – 25 % on Machinery and 29.33 % on Construction Term Loan II – 25 % on Machinery and 40 % on Construction Bank Guarantee – 25 % Cash Margin Extent and Operation of the charge Amount outstanding towards Loan, Interest and other charges levied by Bank form Time to Time Others Total Limit of Rs. 50.479 Millions Cash Credit - Rs. 25.000 Millions Term Loan I - Rs. 11.000 Millions Term Loan II - Rs. 13.000 Millions Bank Guarantee -Rs. 1.479 Millions
Short particulars of the property charged	Hypothecation of Stock, Book debts, Vehicles and Movable Machinery
Date of latest modification prior to the present modification	05.07.2007

Fixed Assets

• Land and Building
• Factory Shed and Construction
• Plat and Machinery
• Furniture and Fixture
• Motor Cycle

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 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.52.16
UK Pound	1	Rs.80.64
Euro	1	Rs.69.42

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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		45

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.