MIRA INFORM REPORT

Report Date :

05.04.2012

IDENTIFICATION DETAILS

Name :	BST TEXTILES MILLS PRIVATE LIMITED
Registered Office :	Office No. 09, 3^rd Floor, Woodrow Building, Veera Desai Road, Andheri (West), Mumbai – 400053, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	27.09.2005
Com. Reg. No.:	11-156368
Capital Investment / Paid-up Capital :	Rs.122.711 Millions
CIN No.: [Company Identification No.]	U17111MH2005PTC156368
TAN No.: [Tax Deduction & Collection Account No.]	MUMB15660B
PAN No.: [Permanent Account No.]	AACCB7130P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Yarn.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 570000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company has been successful in wiping off the accumulated losses of previous year. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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)
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/ Head Office :	Office No. 09, 3^rd Floor, Woodrow Building, Veera Desai Road, Andheri (West), Mumbai – 400053, Maharashtra, India
Tel. No.:	91-22-42063999
Fax No.:	91-22-42063902
E-Mail :	bstyarn@yahoo.com nikita.tyagi@bsttextile.com girish.d@bsttextile.com ashish.doshi@bsttextile.com sales@bsttextile.com
Factory :	Plot No.9, Sector No.9, SIDCUL, Pantnagar, Rudrapur-263153, Uttarakhand, India
Tel. No.:	91-5944-250209
Fax No.:	91-5944-250109
Overseas Office :	71, Colby Drive, Thurmaston, Leicester LE4 8 LD, United Kingdom
Tel. No.:	+44-1162694799
Fax No.:	+44-7961386136
E-Mail :	yarnfabuk@aol.com

DIRECTORS

As on 20.09.2011

Name :

Mr. Mukesh Balrajsingh Tyagi

Designation :

Director

Address :

131/2A, Windermere Building, Near Oshiwara Police Station, Azad Nagar, Andheri (West), Mumbai – 400053, Maharashtra, India

Date of Birth/Age :

04.03.1962

Date of Appointment :

27.09.2005

DIN No.:

01711370

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	U17110MH1996PTC104632	BST YARN-FAB PRIVATE LIMITED	Director	19/12/1996	19/12/1996	-	Active	NO
2	U17111MH2005PTC156368	BST TEXTILE MILLS PRIVATE LIMITED	Director	27/09/2005	27/09/2005	-	Active	NO

Name :

Ms. Sangeeta Mukesh Tyagi

Designation :

Director

Address :

131/2A, Windermere Building, Near Oshiwara Police Station, Azad Nagar, Andheri (West), Mumbai – 400053, Maharashtra, India

Date of Birth/Age :

07.03.1963

Date of Appointment :

27.09.2005

DIN No.:

01349616

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	U17110MH1996PTC104632	BST YARN-FAB PRIVATE LIMITED	Director	19/12/1996	19/12/1996	-	Active	NO
2	U17111MH2005PTC156368	BST TEXTILE MILLS PRIVATE LIMITED	Director	27/09/2005	27/09/2005	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 20.09.2011

Names of Shareholders	No. of Shares
Mukesh Balrajsingh Tyagi	2124000
Sangeela Mukesh Tyagi	1012556
Pauan Balrajsingh Tyagi	1046805
Ajay Tyagi	431900
Sheetal Tyagi	68100
Sagar Birhal Singh	350000
Ved Prakash Tyagi	245000
Yogesh Tyagi	255000
Munesh Kumar Tyagi	700000
BST Yarn Fab Private Limited, India	3769798
Arvind Kumar	20000
Virendra Kumar	20000
Mukesh Kumar Tyagi (HUF)	1530000
Geeta Tyagi	460000
Sudha	140000
Sanju Tyagi	125600
Ashu Munesh Tyagi	220000
Total	12518759

Equity Share Break up (Percentage of Total Equity)

As on 20.09.2011

Category	Percentage
Bodies corporate	30.11
Directors or relatives of Directors	69.89
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Yarn.

GENERAL INFORMATION

Suppliers :

· Blue Max Insulators

· Everest Industries Limited

· Veejay Lakshmi Engineering Works Limited

· Fortune Marketing and Trading Company

· Gloster Cables Limited

· Voltas Limited

· Draft Air India Private Limited

· Shakti Packaging

· Oerlikon Textile India Private Limited

Customers :

· Alok Industries Limited

· A.N Yarn Private Limited

· Butada Weaving Mills Limited

· Welspun India Limited

· M G Enterprises

· RSWM Limited

· Asiad Trading and Manufacturing Company

· Sangeeta Cotsyn Private Limited

· VHM Industries Limited

No. of Employees :

Not Available

Bankers :

· State Bank of Patiala, Commercial Branch, First Floor, Atlanta Building, Nariman Point, Mumbai – 400021, Maharashtra, India

· State Bank of Travancore

· Bank of India

· Punjab National Bank

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Term Loan – State Bank of Patiala and State Bank of Travancore (Fully secured against hypothecation on movable assets and equitable mortgage of immovable assets)	258.428	221.760
Working Capital – State Bank of Patiala (Fully secured against Hypothecation on movable assets and equitable mortgage of immovable assets)	74.023	55.526
Total	332.451	277.286

Banking Relations :	--
Auditors :
Name :	Parasmal Jain and Associates Chartered Accountants
Address :	9/15, Morarji Velji Building, 54, 2^nd Floor, M.B. Velkar Street, Kalbadevi, Mumbai – 400002, Maharashtra, India
Tel. No.:	91-22-22062972
PAN.:	AACP14289Q

CAPITAL STRUCTURE

As on 20.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
14000000	Equity Shares	Rs.10/- each	Rs.140.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12518759	Equity Shares	Rs.10/- each	Rs.125.188 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
14000000	Equity Shares	Rs.10/- each	Rs.140.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12271059	Equity Shares	Rs.10/- each	Rs.122.711 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		122.711	111.356	110.357
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		18.846	0.000	0.000
4] (Accumulated Losses)		0.000	(14.925)	(10.733)
NETWORTH		141.557	96.431	99.624
LOAN FUNDS
1] Secured Loans		332.451	277.286	248.284
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		332.451	277.286	248.284
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		474.008	373.717	347.908
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		302.581	281.935	286.182
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	118.519	50.892	51.767
	Sundry Debtors	58.428	23.452	17.413
	Cash & Bank Balances	3.464	3.292	3.864
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	31.173	19.717	17.081
Total Current Assets		211.584	97.353	90.125
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	38.733	5.176	27.789
	Other Current Liabilities	0.569	0.000	0.000
	Provisions	1.074	0.645	0.891
Total Current Liabilities		40.376	5.821	28.680
Net Current Assets		171.208	91.532	61.445
MISCELLANEOUS EXPENSES		0.219	0.250	0.281
TOTAL		474.008	373.717	347.908

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	475.519	397.907	208.596
		Other Income	25.843	23.155
		TOTAL (A)	501.362	421.062	208.596
Less	EXPENSES
		Increase / Decrease in Stock	0.390	(6.662)
		Raw Material Consumed	303.070	269.504
		Spares, Packing Material Consumed	9.171	9.467
		Manufacturing and Operative Expenses	55.827	43.416
		Administrative Expenses	16.877	18.617
		Selling and Distribution Expenses	7.045	6.524	186.424
		TOTAL (B)	392.380	340.866	(including financial expenses)
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		108.982	80.196
Less	FINANCIAL EXPENSES (D)		33.971	34.260
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		75.011	45.936	22.172
Less/ Add	DEPRECIATION/ AMORTISATION (F)		41.240	50.128	32.904
	PROFIT BEFORE TAX (E-F) (G)		33.771	(4.192)	(10.732)
Less	TAX (H)		0.000	0.000	0.000
	PROFIT AFTER TAX (G-H) (I)		33.771	(4.192)	(10.732)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(14.924)	(10.732)	0.000
	BALANCE CARRIED TO THE B/S		(18.847)	(14.924)	(10.732)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	38.364
	TOTAL EARNINGS		38.364
	Earnings Per Share (Rs.)			NA	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	6.73	0.99	5.14
Net Profit Margin (PBT/Sales)	(%)	7.10	1.05	NA
Return on Total Assets (PBT/Total Assets}	(%)	6.57	1.11	2.85
Return on Investment (ROI) (PBT/Networth)		0.24	0.04	0.11
Debt Equity Ratio (Total Liability/Networth)		2.63	2.94	2.78
Current Ratio (Current Asset/Current Liability)		5.24	16.72	3.14

LOCAL AGENCY FURTHER INFORMATION

Note:

The registered address of the company 4, Timmy Arcade Makwana Road, Off Andheri Kurla Road, Marol, Andheri (East), Mumbai – 400059, Maharashtra, India has been shifted to the present address w.e.f. 16.09.2010

OPERATION

The company's project of manufacturing yam at Rudrapur was completed on 11.07.2007 and Commercial Production started on 12.07.2007 during the year.

The Company has registered a Sales for the year Rs.475.519 Millions out of which Export Sales Rs.38.364 Millions. The directors hope to achieve better performance in the year to come.

Bankers Charges Report as per Registry

Corporate identity number of the company	U17111MH2005PTC156368
Name of the company	BST TEXTILE MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Office No. 09, 3^rd Floor, Woodrow Building, Veera Desai Road, Andheri (West), Mumbai – 400053, Maharashtra, India Email : bstyarn@yahoo.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10010243
Type of charge	Book Debts Movable Property
Particular of charge holder	State Bank of Patiala, Commercial Branch, First Floor, Atlanta Building, Nariman Point, Mumbai – 400021, Maharashtra, India Email : sbop313@gmail.com
Nature of instrument creating charge	Supplemental Agreement of Hypothecation of all Inventories, Goods, Book Debts, Current and Movable Assets; executed upon enhancement of Working Capital Limit from Rs.205.300 Millions to Rs. 280.600 Millions and thereby the overall credit facilities extended by the Bank increased from Rs. 449.800 Millions to Rs. 525.100 Millions
Date of instrument Creating the charge	04.05.2011
Amount secured by the charge	Rs.525.100 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Rate of Interest is governed as per terms of sanction letter dated 03.05.2011. Presently @12.75% p.a. Terms of Repayment Working Capital shall be repayable on Demand. Term Loan I of Rs.160.000 Millions in 32 Quarterly Installment. Term Loan II of Rs.52.500 Millions in 31 Quarterly Installments. Term Loan III of Rs.22.000 Millions in 32 Quarterly Installments Margin Margins governed as per terms of sanction letter dated 03.05.2011, presently fixed at 20% Extent and Operation of the charge The Charge operates as Primary Security for due repayment of credit facilities, more particularly described in Hypothecation Agreement
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All Present and Future Inventories, Goods, Book Debts, Current and Movable Assets
Date of instrument modifying the charge	04.06.2010
Particulars of the present modification	The Extent of Charge is increased from Rs.449.800 Millions to Rs. 525.100 Millions due to Enhancement of Working Capital Limit from Rs.205.300 Millions to Rs.280.600 Millions

Contingent Liabilities (As on 31.03.2010):

Letter of Credit amounting to Rs.34.865 Millions in favour of Rieter India Private Limited and Rs.127.277 Millions in favour of Oerlikon Textiles GMBH and Company has been discounted with State Bank of Travancore.

Bills of Exchange amounting to Rs.9.853 Millions drawn on EL Nair Clothing and textile Company, Rs.3.597 Millions drawn on Rex H Perkins Limited, and Rs.5.723 Millions drawn on Taizeus International Corporation, has been discounted with State Bank of Patiala.

FIXED ASSETS

· Land

· Factory Building

· Plant and Machinery

· Computer

· Electrical Installation

· Furniture

· Vehicles

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.51.05
UK Pound	1	Rs.81.09
Euro	1	Rs.67.39

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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		31

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.