MIRA INFORM REPORT

Report Date :

15.09.2011

IDENTIFICATION DETAILS

Name :	MAHAJAN SILK MILLS PRIVATE LIMITED
Registered Office :	Mahajan Silk Mill Compound, LBS Marg, Vikhroli (West), Mumbai – 400 079, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	06.06.1984
Com. Reg. No.:	11-33093
Capital Investment / Paid-up Capital :	Rs.10.000 Millions
CIN No.: [Company Identification No.]	U17120MH1984PTC033093
TAN No.: [Tax Deduction & Collection Account No.]	MUMM09291C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Supplier of Silk, fabric, silk fabric, cotton fabric, suiting shirting
No. of Employees :	49 Approximately

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 130000
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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
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 :	Mahajan Silk Mill Compound, LBS Marg, Vikhroli (West), Mumbai – 400 079, Maharashtra, India
Tel. No.:	91-22-25782319 / 25786009 / 24924117 / 25791842
Fax No.:	91-22-28780904 / 25782904
E-Mail :	mahajan@bom3.vsnl.net.in

DIRECTORS

As on 30.09.2010

Name :	Mr. Sunil D Mahajan
Designation :	Director
Address :	61, Viraj Silverene, 321, Hill Road, Bandra, Mumbai – 400 050, Maharashtra, India
Date of Birth/Age :	15.09.1952
Date of Appointment :	06.06.1984
DIN No.:	02397167

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U17120MH1984PTC033093	Mahajan Silk Mills Private Limited	Director	06-06-84	06-06-84	Active	NO
2	U55101PB2006PTC030699	Silver Seven Hotels Private Limited	Director	08-12-10	08-12-10	Active	YES

Name :	Mr. Naveen D Mahajan
Designation :	Director
Address :	Sea Cliff Apartment, Juhu Tara Road, Juhu, Mumbai – 400 449, Maharashtra, India
Date of Birth/Age :	21.04.1957
Date of Appointment :	16.08.1988
DIN No.:	01869640

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U17120MH1984PTC033093	Mahajan Silk Mills Private Limited	Director	16-08-88	16-08-88	Active	NO
2	U55101PB2006PTC030699	Silver Seven Hotels Private Limited	Director	08-12-10	08-12-10	Active	YES

KEY EXECUTIVES

Name :	Mr. Vishal Lalwani
Designation :	Export Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
D N Mahajan	125350
Vimaladevi Mahajan	60150
D N Mahajan (HUF)	10000
Sunil Mahajan	329750
Sunil Mahajan (HUF)	12500
Ameeta Mahajan	10000
Rishi Mahajan	14000
Suchit Mahajan	14000
Surbhi Mahajan	9000
Naveen Mahajan	329750
Naveen Mahajan (HUF)	22500
Seema Mahajan	20000
Smriti Mahajan	9000
Dhruv Mahajan	14000
Ameeta Mehta	20000
Total	1000000

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Supplier of Silk, fabric, silk fabric, cotton fabric, suiting shirting

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Sulzer Looms with allied machinery and warping machinery	Nos.	No	16	--

GENERAL INFORMATION

No. of Employees :

49 Approximately

Bankers :

· Union Bank of India

Vikhroli Branch, Mahajan Mills Compound, L B S Marg, Vikhroli (West), Mumbai – 400 079, Maharashtra, India

· Bank of India

· State Bank of India

Facilities :

Secured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
Union Bank of India, Cash Credit A/c. Against hypothecation of stocks in hand	27.506	3.583
Union Bank of India, FCL A/c. Against hypothecation of stocks in hand and book debts	0.000	12.800
Union Bank of India – Term Loan	2.192	0.000
Tata Capital Limited	0.356	0.632
UBI Honda City Car Loan A/c	0.497	0.000
Greater Bombay Co-Operative Inland LC	0.000	2.576
Total	30.551	19.591

Note: The above loans from Union Bank of India are guaranteed by the directors of the company and as collateral security, the said bank has charged over the plant and machinery of the company.

Unsecured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
From Companies	1.000	0.400
Short Tem Loan
From Directors	0.958	0.965
From Shareholders	14.045	13.733
Total	16.003	15.098

Banking Relations :	--
Auditors :
Name :	P C Mehra and Company Chartered Accountant
Address :	716, Maker Chambers V, Nariman Point, Mumbai – 400 021, Maharashtra, India
Tel No.:	91-22-22825044
Fax No.:	91-22-22824817
Email :	pcmehra@rediffmail.com

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 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		10.000	10.000	10.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		23.353	21.706	19.337
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		33.353	31.706	29.337
LOAN FUNDS
1] Secured Loans		30.551	19.591	22.867
2] Unsecured Loans		16.003	15.098	13.560
TOTAL BORROWING		46.554	34.689	36.427
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		79.907	66.395	65.764
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16.852	15.734	17.290
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.001	0.001	0.001
DEFERREX REVENUE EXPENDITURE		0.000	0.000	0.170
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	55.046	37.130	37.624
	Sundry Debtors	32.091	32.320	31.363
	Cash & Bank Balances	1.905	0.501	0.665
	Other Current Assets	0.631	0.806	0.613
	Loans & Advances	0.906	2.010	1.113
Total Current Assets		90.579	72.768	71.378
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	24.561	21.537	21.647
	Other Current Liabilities	2.964	0.571	1.428
	Provisions	0.000	0.000	0.000
Total Current Liabilities		27.525	22.108	23.075
Net Current Assets		63.054	50.660	48.303
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		79.907	66.395	65.764

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	164.733	133.686	107.279
		Other Income
		TOTAL	164.733	133.686	107.279
Less	EXPENSES
		Office Expenses	157.673	127.432	100.787
		Administrative Expenses
		Advertising Expenses
		TOTAL	157.673	127.432	100.787
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		7.060	6.254	6.492
Less/ Add	DEPRECIATION/ AMORTISATION		3.674	3.487	3.440
	PROFIT BEFORE TAX		3.386	2.767	3.052
Less	TAX		1.739	0.399	0.118
	PROFIT AFTER TAX		1.647	2.368	2.934
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		8.505	6.137	3.204
	BALANCE CARRIED TO THE B/S		10.152	8.505	6.137
	EARNINGS IN FOREIGN CURRENCY		7.099	6.297	--
	Earnings Per Share (Rs.)		1.65	--	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.00	1.77	2.73
Return on Total Assets (PBT/Total Assets}	(%)	3.15	3.13	3.44
Return on Investment (ROI) (PBT/Networth)		0.10	0.09	0.10
Debt Equity Ratio (Total Liability/Networth)		2.22	1.79	2.03
Current Ratio (Current Asset/Current Liability)		3.29	3.29	3.09

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS

The Company has recorded Income of Rs.164.733 millions during the year ended 31^st March, 2010.

FORM 8

Corporate identity number of the company	U17120MH1984PTC033093
Name of the company	MAHAJAN SILK MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Mahajan Silk Mill Compound, LBS Marg, Vikhroli (West), Mumbai – 400 079, Maharashtra, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90240046
Type of charge	· Book debts · Movable property (not being pledge)
Particular of charge holder	Union Bank of India Vikhroli Branch, Mahajan Mills Compound, L B S Marg, Vikhroli (West), Mumbai – 400 079, Maharashtra, India
Nature of instrument creating charge	Supplementary Agreement to Hypothecation Agreement of Goods and Debts
Date of instrument Creating the charge	28.03.2011
Amount secured by the charge	Rs.36.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 14.50% per annum with monthly rests or such other rate as may be revised by the Bank from time to time Terms of repayment On Demand Margin As per sanction terms Extent and operation of the charge To secure Revised Cash Credit (Hypothecation) Stocks and Book-Debts facility of Rs.36.500 millions granted by the Bank to the Company
Short particulars of the property charged	· That the Hypothecated Goods Book-Debts and Movable Property covered by the Principal Hypothecation Agreement shall continue to be a security for the Bank for the enhanced Cash Credit · (Hypothecation) Stocks and Book-Debts facility of Rs.36.500 millions granted by the Bank to the Company
Particulars of the present modification	Vide this modification an additional sum of Rs.10.000 millions has been granted by the Bank thereby enhancing the Cash Credit (Hypothecation) Stocks and Book-Debts facility from Rs.26.500 millions to Rs.36.500 millions and That the Hypothecated Goods Book-Debts and Movable Property covered by the Principal Hypothecation Agreement shall continue to be a security for the Bank for the enhanced Cash Credit (Hypothecation) Stocks and Book-Debts facility of Rs.36.500 millions granted by the Bank to the Company

FIXED ASSETS

· Plant and Machinery

· Motor Car

· Computer

· Furniture and Fixtures

· Vacuum Cleaner and Office Equipments

· Air-Conditioner

· Electrical Fittings

· Flat

· Transport Vehicles

· Right, Tile and Interest in agreement

WEB DETAILS

BUSINESS DESCRIPTION

Establishments primarily engaged in weaving fabrics more than 12 inches (30.48 centimeters) in width, wholly or chiefly by weight of silk and manmade fibers including glass.

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.47.81
UK Pound	1	Rs.75.16
Euro	1	Rs.65.11

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.