MIRA INFORM REPORT

Report Date :

29.09.2011

IDENTIFICATION DETAILS

Name :	NIRVAN SILK MILLS PRIVATE LIMITED
Registered Office :	13AB Samhita Complex 30/31, Jivan Silk Mills lane, Sakinaka Andheri (East), Mumbai- 400 072, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	11.05.2001
Com. Reg. No.:	11-131950
Capital Investment / Paid-up Capital :	Rs. 5.613 millions
CIN No.: [Company Identification No.]	U17112MH2001PTC131950
TAN No.: [Tax Deduction & Collection Account No.]	MUMN09437B / MUMN10921B
PAN No:	AABCN3493N
Legal Form :	Private Limited Liability company
Line of Business :	Manufacturer and exporter of fabrics, garments.
No. of Employees :	Not available

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 170000
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 a fair commitments. The company can be considered normal for business dealings at usual trade terms and conditions. Profit and Loss of company is not available.

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 :	13AB Samhita Complex 30/31, Jivan Silk Mills lane, Sakinaka Andheri (East), Mumbai- 400 072, Maharashtra
Tel. No.:	91-22- 28516483
E-Mail :	cabhandari@gmail.com

DIRECTORS

As on 30.09.2010

Name :

Mr. Navinchandra Mehta

Designation :

Director

Address :

22, Mahant road, Mehta Niwas, 3^rd Floor, Vile Parle (East), Mumbai- 400 057

Date of Birth/Age :

06.06.1950

Date of Appointment :

11.05.2001

Din No:

00092747

Name :

Mr. Kapal Mehta

Designation :

Director

Address :

22, Mahant road, Mehta Niwas, 3^rd Floor, Vile Parle (East), Mumbai- 400 057

Date of Birth/Age :

07.11.1971

Date of Appointment :

11.05.2001

Din No:

00329781

Name :

Mr. Bharatkumar Poddar

Designation :

Additional Director

Address :

102, Saugat Bldg, Dr. Ambedkar Road,, charkop, sector-3, Kandivali(W) – 400 067, Maharashtra, India

Date of Birth/Age :

28.07.1951

Date of Appointment :

03.01.2011

Din No.

00105949

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	U17115MH2001PTC130341	MANISH IMPEX PRIVATE LIMITED	Director	8/1/2001	8/1/2001	-	Active	NO
2	U17112MH2001PTC131950	NIRVAN SILK MILLS PRIVATE LIMITED	Additional director	3/1/2011	3/1/2011	20/06/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Navinchandra Mahta	69400
Kapal Mehta	60000
Navinchandra P. Mehta (HUF)	21000
Kapal N. Mehta	41000
Madhubala Mehta	51000
Shweta Mehta	51000
Master Aash Mehta through Mr. Kapal N. Mehta	1000
Master Raj Mehta through Mr. Kapal N. Mehta	1000
Rahul Jain	4000
Paras Mal K. Jain	200
Rajendra S. Mehta	100
Leela Devi S. Mehta	100
Kalpana S. Mehta	100
Minaxi R. Mehta	100
Ramesh Fulchand Sottany	200
Vimala S. Shah	200
Sardarmal J. Shah	200
Nikita P. Goyal	200
Tanumati D shah	200
Dharamibai D Shah	200
Sardarmal J Shah (HUF)	500
Rayashi Lakhdir Shah	100
Durgaram c. Patel	100
Kanchan Babulal shah	1000
Total	303000

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100%

BUSINESS DETAILS

Line of Business :

To Carry on business of manufacturing textiles and yarns and designing fabrics, dresses, garments of all kinds, and to manufactures to trade, to export and to act as commission agent of yarns, cloth, textiles and garments

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	The Cosmos Co-operative Bank Limited. Borivali Branch, 3-4 Krishna Nagar, Chandavarkar Lane, Borivali(west), Mumbai- 400 092, Maharashtra, India
Banking Relations :	--
Auditors :
Name :	Sanghavi Sanghavi and Sanghavi Chartered Accountant
Address :	10, La Citadelle 2ndfloor, 99, Maharshi Karve Road, Mumbai- 400 020, Maharashtra, India

CAPITAL STRUCTURE

As on 31.03.2010

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
303000	Equity shares	Rs.10/- each	Rs.3.030 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		3.030	3.030
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		40.593	30.489
4] (Accumulated Losses)		0.000	0.000
NETWORTH		43.623	33.519
LOAN FUNDS
1] Secured Loans		16.788	0.893
2] Unsecured Loans		49.734	23.391
TOTAL BORROWING		66.522	24.284
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		110.145	57.803
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		64.175	39.030
Capital work-in-progress		0.600	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		4.263	1.088
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	35.345	17.121
	Sundry Debtors	68.700	62.056
	Cash & Bank Balances	1.903	5.026
	Other Current Assets	0.000	0.000
	Loans & Advances	3.893	3.884
Total Current Assets		109.841	88.087
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	67.632	67.036
	Other Current Liabilities	0.191	0.114
	Provisions	0.911	3.252
Total Current Liabilities		68.734	70.402
Net Current Assets		41.107	17.685
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		110.145	57.803

KEY RATIOS

PARTICULARS	31.03.2010	31.03.2009
Debt Equity Ratio (Total Liability/Networth)	3.10	2.82
Current Ratio (Current Asset/Current Liability)	1.60	1.25

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

Corporate identity number of the company	U17112MH2001PTC131950
Name of the company	NIRVAN SILK MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	13AB Samhita Complex 30/31, Jivan Silk Mills lane, Sakinaka Andheri (East), Mumbai- 400 072, Maharashtra, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10179535
Type of charge	Immovable Property, Book debts, Movable Property (not being pledge), Floating charge
Particular of charge holder	The Cosmos Co-operative Bank Ltd Borivali Branch, 3-4 Krishna Nagar, Chandavarkar Lane, Borivali(West), Mumbai-400 092, Maharashtra, India
Nature of instrument creating charge	Composite Deed of Mortgage and Hypothecation for creation of first/ additional charge
Date of instrument Creating the charge	28.04.2011
Amount secured by the charge	Rs. 173.600 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest : Cash credit: 11.5% p.a , foreign bill discounting:9%p.a. Packing credit:9%p.a., term loan: 12%p.a. or at such rate as maybe fixed from time to time. Terms of Repayment: Cash credit: repayment on demand/ review within 12 months Foreign Bills discounting: on demand / review within 12 months Packing credit: on demand/ review within 12 months Term loan: 66 months ( 60 months + 6 months Moratorium) Margin: Cash credit: 25% in bank’s favour Foreign Bill Discounting: 10% in bank’s favour Packing Credit: 10% in bank’s favour Rerm Loan: 25% in bank’s favour L/C: 25% in bank’s favour Extent and Operation of the charge: Cash credit: Rs.10.000 millions Foreign Bills Discounting: Rs. 5.000 millions Packing credit: Rs. 5.000 millions Term Loan ( for purchase of looms including one time LC limit of Rs.27.000 millions): Rs 37.300 millions Term Loan I: Rs. 37.500 millions Term Loan II: Rs. 78.800 millions (One time LC(sub limit of TLII) Rs. 69.600 millions) Others: Due to size constraint page no 1-20 of the agmt is filed with this form, balance agreement is filed vide form no 61
Short particulars of the property or asset(s) charged (including complete address and location of the property)	(i) mortgage of all that piece and parcel of plot no t-134 situated in Tarapur Industrial area of MIDC within local limits of Village Pamtembi, Registration sub district Palghar and Registration District (ii) Thane together with ownership over the structure standing thereon and being constructed hereinafter together with all plant and machinery, fitting, fixtures solely belonging to the company and more (iii) Particularly described in schedule II attached herewith. (iv) Hypothecation of stock, WIP, debtors, looms, machinery (exising and new), bills receivable more particularly described in schedule II attached herewith and stock and Machineries at any other place. I (v) Mortgage of all that piece and parcel of land known as Plot no D6 in Industrial area within the village limits of Salwad and outside the Municipal Council in rural area Taluka (vi) And registration sub district of Palghar district and registration district of thane together with ownership over the structure standing thereon and being constructed hereinafter together with (vii) All plant and machinery, fittings, fixtures presently install and to be installed in the said property and more particularly described in schedule I attached herwith
Date of instrument modifying the charge	--
Particulars of the present modification	New term loan of Rs. 37.500 millions and 78.800 millions granted. The present limit is Rs. 173.600 (cash credit: Rs 10.000 millions, Foreigh Bills Discounting: Rs.5.000 millions, Term Loan (for purchase of looms including one time LC limit of Rs. 27.000 millions) Rs. 37.300 millions, Term Loan I: Rs. 37.500 millions, Term loan II: Rs. 78.800 millions, (One time LC(sub limit of TLII) Rs 69.600 millions)

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.49.18
UK Pound	1	Rs.76.65
Euro	1	Rs.66.63

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	No
--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.