MIRA INFORM REPORT

Report Date :

04.04.2012

IDENTIFICATION DETAILS

Name :	SUDIVA SPINNERS PRIVATE LIMITED
Registered Office :	1-F-33, Old Housing Board, Shastri Nagar, Bhilwara-311001, Rajasthan
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	15.01.2007
Com. Reg. No.:	17-023649
Capital Investment / Paid-up Capital :	Rs.94.600 Millions
CIN No.: [Company Identification No.]	U18101RJ2007PTC023649
TAN No.: [Tax Deduction & Collection Account No.]	JDHS07500D
PAN No.: [Permanent Account No.]	AAKCS5788C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Cotton, Cotton Slub and Viscose Yarn.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 460000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has been successful in wiping off the accumulated losses of the previous years. 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 caution.

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 :	1-F-33, Old Housing Board, Shastri Nagar, Bhilwara-311001, Rajasthan, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	jcl@injb.com varun_laddha@sudivaindia.com fcsmanish.mca@gmail.com
Corporate Office :	B-329, R K Colony, Bhilwara-311001, Rajasthan, India
Tel. No.:	91-1482-235567
Fax No.:	91-1482-235567
Factory :	91 Km Stone, Village Dhunwalia, P O Sareri, District Bhilwara-311024, Rajasthan, India
Tel. No.:	91-1483-236888
Fax No.:	91-1483-236988

DIRECTORS

As on 30.09.2011

Name :

Mr. Jagdish Chandra Laddha

Designation :

Director

Address :

Kharigram, P O Gulabpura, Bhilwara-311021, Rajasthan India

Date of Birth/Age :

12.12.1949

Date of Appointment :

15.01.2007

DIN No.:

00118527

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	L17115RJ1960PLC008216	RSWM LIMITED	Whole-time director	1/1/2010	1/1/1990	-	Active	NO
2	U17118RJ1975PLC002275	BHILWARA PROCESSORS LIMITED	Director	16/10/1993	16/10/1993	-	Amalgamated	NO
3	U18101RJ1996PTC012501	BMD PRIVATE LIMITED	Director	4/2/1997	4/2/1997	-	Active	NO
4	U18101RJ2007PTC023649	SUDIVA SPINNERS PRIVATE LIMITED	Director	15/01/2007	15/01/2007	-	Active	NO
5	U18101RJ2008NPL026261	RAJASTHAN TEXTILE INDUSTRY ASSOCIATION	Director	1/4/2008	1/4/2008	-	Active	NO
6	U17120MH1967PLC013669	CONFEDERATION OF INDIAN TEXTILE INDUSTRY	Director	30/09/2011	30/09/2011	-	Active	NO

Name :

Mr. Varun Laddha

Designation :

Managing Director

Address :

Raj Spin Officers Colony, Ladha, Banswara-327001, Rajasthan, India

Date of Birth/Age :

08.09.1980

Date of Appointment :

15.01.2007

DIN No.:

01635880

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	U18101RJ2007PTC023649	SUDIVA SPINNERS PRIVATE LIMITED	Managing director	1/5/2007	15/01/2007	-	Active	NO
2	U27101WB1996PTC079436	ELCON FINVEST and ENTERPRISES PRIVATE LIMITED	Director	2/8/2007	2/8/2007	-	Active	NO

Name :

Mr. Rahul Choudhary

Designation :

Director

Address :

Bungalow No. 5, J K Colony, Kota-324003, Rajasthan, India

Date of Birth/Age :

19.06.1974

Date of Appointment :

05.03.2007

DIN No.:

02013700

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	U18101RJ2007PTC023649	SUDIVA SPINNERS PRIVATE LIMITED	Director	5/3/2007	5/3/2007	-	Active	NO
2	U93020KA2008PTC045619	R AND R SALONS PRIVATE LIMITED	Nominee director	8/5/2008	8/5/2008	-	Active	NO

Name :

Mrs. Sunita Laddha

Designation :

Director

Address :

Raj Spin Officers Colony, Ladha, Banswara-327001, Rajasthan, India

Date of Birth/Age :

01.07.1951

Date of Appointment :

30.09.2009

DIN No.:

01748014

Name :

Mrs. Tanisha Laddha

Designation :

Director

Address :

B-309, Vijay Shree, Shastri Nagar, Bhilwara – 311001, Rajasthan, India

Date of Birth/Age :

04.01.1983

Date of Appointment :

30.09.2009

DIN No.:

02683462

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Jagdish Chandra Laddha	4198000
Varun Laddha	830975
Sunita Laddha	1107750
Elcon Finvest Enterprises Private Limited	3404275
Tanisha Laddha	163750
Total	9704750

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	35.08
Directors or relatives of Directors	64.92
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton, Cotton Slub and Viscose Yarn.

Products :

Production Description	Item Code No
Cotton Yarn	2351

PRODUCTION STATUS

Installed Capacity

Particulars	Unit	31.03.2011
Rotors		1752

Actual Production

Particulars	Unit	31.03.2011
Cotton Yarn	MT	3837.66
Viscose Yarn	MT	62.26
Waste	MT	412.19

Production Includes Qty.46.70 MT and Value Rs.6.350 Millions cotton yarn purchases during the year. (Previous year Qty. 47.88 MT. and Value Rs.4.644 Millions)

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Punjab National Bank, Mid Corporate Branch, M.I.Road, Jaipur - 302005, Rajasthan, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	232.160	195.228
Working capital loans banks secured	175.293	93.660
Total	407.453	288.888
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Loans taken for fixed assets unsecured	1.156	0.000
Total	1.156	0.000

Banking Relations :	--
Auditors :
Name :	A L Chechani and Company Chartered Accountants
Address :	15-17, Heera Panna Market, Pur Road, Bhilwara-311001, Rajasthan, India
Tel. No.:	91-1482-247403
E-Mail :	alcbhi@yahoo.com
PAN.:	AEAPS9742R
Relate Party :	RSWM Limited

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9704750	Equity Shares	Rs.10/- each	Rs.97.048 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9460000	Equity Shares	Rs.10/- each	Rs.94.600 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		94.600	83.700	77.000
2] Share Application Money		2.400	6.200	0.000
3] Reserves & Surplus		18.955	6.700	0.000
4] (Accumulated Losses)		0.000	(7.217)	(9.201)
NETWORTH		115.955	89.383	67.799
LOAN FUNDS
1] Secured Loans		407.453	288.888	212.775
2] Unsecured Loans		1.156	0.000	0.000
TOTAL BORROWING		408.609	288.888	212.775
DEFERRED TAX LIABILITIES		1.976	0.000	0.000
TOTAL		526.540	378.271	280.574
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		293.639	262.745	227.907
Capital work-in-progress		15.806	0.000	0.929
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	130.430	61.001	18.832
	Sundry Debtors	75.546	24.930	14.297
	Cash & Bank Balances	2.490	1.518	1.285
	Other Current Assets	24.761	29.944	20.534
	Loans & Advances	11.902	3.434	1.438
Total Current Assets		245.129	120.827	56.386
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	19.752	1.870	1.360
	Other Current Liabilities	5.532	3.391	3.666
	Provisions	3.035	0.409	0.052
Total Current Liabilities		28.319	5.670	5.078
Net Current Assets		216.810	115.157	51.308
MISCELLANEOUS EXPENSES		0.285	0.369	0.430
TOTAL		526.540	378.271	280.574

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	569.586	269.004	196.452
		Other Income	1.091	9.926	NA
		TOTAL (A)	570.677	278.593	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses	477.503	248.735	NA
		Advertising Expenses
		TOTAL (B)	477.503	248.735	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		93.174	29.858	18.558
Less	FINANCIAL EXPENSES (D)		33.684	14.978	15.888
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		59.490	14.880	2.670
Less/ Add	DEPRECIATION/ AMORTISATION (F)		46.315	12.534	11.203
	PROFIT BEFORE TAX (E-F) (G)		13.175	2.346	(8.533)
Less	TAX (H)		4.602	0.362	0.047
	PROFIT AFTER TAX (G-H) (I)		8.573	1.984	(8.580)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(7.217)	(9.201)	(0.621)
	BALANCE CARRIED TO THE B/S		1.356	(7.217)	(9.201)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	159.505	117.817	72.695
		Commission Earnings
		Other Earnings
	TOTAL EARNINGS		159.505	117.817	72.695
	IMPORTS
		Machinery	54.069	39.444	0.732
		Spare Parts	5.783	0.906	0.018
	TOTAL IMPORTS		59.852	40.350	0.750
	Earnings Per Share (Rs.)		1.12	0.24	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.50	0.71	NA
Net Profit Margin (PBT/Sales)	(%)	2.31	0.87	(4.34)
Return on Total Assets (PBT/Total Assets}	(%)	1.59	0.61	(3.00)
Return on Investment (ROI) (PBT/Networth)		0.11	0.03	(0.13)
Debt Equity Ratio (Total Liability/Networth)		3.77	3.30	3.21
Current Ratio (Current Asset/Current Liability)		8.66	21.31	11.10

LOCAL AGENCY FURTHER INFORMATION

OPERATIONAL PERFORMANCE:-

During the Financial Year company has sold 3975.25 MT (Previous Year 2244.65 MT ) Yarn in export and domestic market, out of this cotton yarn Qty. is 3883.99 MT ( Previous Year 1454.73 MT ) and Viscose Yarn Qty. is 91.25 MT ( Previous Year 789.92 MT ). The company has exported 1326.90 MT (Previous Year 1923.58 MT ) ( Incl. Merchant Export 622.08 MT and Deemed Export 41.19 MT ) ) Profit before depreciation and tax is Rs.59.984 Millions ( Previous Year Rs.14.880 Millions)

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

Rs, In Millions

Particular	31.03.2011	31.03.2010
Bank guarantees given by Company's Bankers	6.871	6.871
Export Obligation	134.416	183.264

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U18101RJ2007PTC023649
Name of the company	Sudiva Spinners Private Limited
Address of the registered office or of the principal place of business in India of the company	1-F-33, Old Housing Board, Shastri NAgar, Bhilwara-311001, Rajasathan, India Fcsmanish.mca@gmail.com
This form is for	Creation of charge
Type of charge	Immovable Property Book Debts Movable Property ( not being pledge)
Particular of charge holder	Punjab National Bank, Mid Corporate Branch, M.I.Road, Jaipur - 302005, Rajasthan, India Bo0221@pnb.co.in
Nature of instrument creating charge	1. Hypothecation of Good and Book Debts to secure cash credit facility 2. Memorandum of entry for creation of equitable mortgage. 3. Board Resolution.
Date of instrument Creating the charge	18.08.2011
Amount secured by the charge	Rs.15.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest @ 4.00% over the prevailing Base Rate i.e. Present effective rate @ 14.75% per annum with monthly rests subject to change from time to time. Terms of Repayment Repayable on Demand. Margin On Raw Material : 25% On Fuel : 25% On Goods in Process : 25% On Finished Goods : 25% On Stores and Spares : 40% On Book Debts : 40% Extent and Operation of the charge The charge will operate as first charge to the extent of Rs.15.000 Millions to secure the Cash Credit (Hypothecation of Goods and Book Debts), (Export Limits Rs.15.000 Millions), (PC/FOBP/FOBNLC/FOUBP Rs.15.000 Millions) limit with 100% interchangeability between PC and CC Limits and vice-versa with Ceiling of FB limit of Rs.15.000 Millions granted to the company by the Bank
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First pari passu charge by way of hypothecation of with SBBJ and UBI of Company's Raw Material i.e. Fibre Yarn, Stock in process, Semi finished and Finished Goods such as Battery, scrap, lead srap, remelted lead, lead Ignots, Redefined lead, lead alloys and lead Qxcide, Furnance Oil, Acid, Chemicals, Packing Chemical, other consumable and other related material lying in factory, godowns, elsewhere and including goods in transit, all present and future book debts and all other present and future current and fixed assets of the company and docy export bills accompanied with shipping documents including bill of lading drawn on foreign buyers/dealers covering consignment of exported goods strictly drawn under irrevocable letter of credit as a security o cover the Cash Credit (Hypothecation of Goods and Book Debts) limit of Rs.15.000 Millions, (Export Limits Rs.15.000 Millions), (PC/FOBP/FOBNLC/FOUBP Rs.15.000 Millions) with 100% interchangeability between PC and CC Limits and vice-versa with Ceiling of FB limit of Rs.15.000 Millions granted to the company by the Bank. Equitable Mortgage on pari passu basis with SBBJ and UBI is extended on immovable property of the company comprising land and building constructed or to be constructed, Fixed plant and machinery, erected or to be erected both present and future and miscellaneous fixed assets situated at Khasra No. 1744/1423, 1424, 1425 and 1426, Village Dhumwalia, District Bhilwara, Rajasthan to cover the PNB CC Limits of Rs.15.000 Millions and Term Loan of Rs.100.000 Millions totaling Rs.115.000 Millions granted to the company by the Bank, also covers SBBJ's total financial commitment of Rs.179.500 Millions and UBI's Working Capital Limit of Rs.25.000 Millions

FIXED ASSETS

• Free Hold Land
• Plant and Machinery
• Furniture and Fixtures
• Office Equipments
• Vehicles
• Electric Fitting and water Supply Installations
• Roads and Buildings

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.50.56
UK Pound	1	Rs.81.05
Euro	1	Rs.67.48

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--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		32

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.