MIRA INFORM REPORT

Report Date :

27.08.2012

IDENTIFICATION DETAILS

Name :	SUMILON INDUSTRIES LIMITED
Registered Office :	Vairagini Wadi, Delhi Gate, Surat – 395003, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.06.1996
Com. Reg. No.:	04-30056
Capital Investment / Paid-up Capital :	Rs.114.308 Millions
CIN No.: [Company Identification No.]	U29199GJ1996PLC030056
TAN No.: [Tax Deduction & Collection Account No.]	SRTS00153G
PAN No.: [Permanent Account No.]	AADCS3567L
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Metallic Yarn.
No. of Employees :	500 (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 3200000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. It has recorded an increase in its sales and profits during 2011. Trade relations are reported as decent. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BBB- (Long Terms Rating)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	30.05.2012

Rating Agency Name	CRISIL
Rating	A3 (Short Terms Rating)
Rating Explanation	Moderate degree of safety.
Date	30.05.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Jild
Designation :	Chief Executive Officer
Contact No.:	91-261-6797979
Date :	24.08.2012

LOCATIONS

Registered Office :	Vairagini Wadi, Delhi Gate, Surat – 395003, Gujarat, India
Tel. No.:	91-261-2441122/2443340
Fax No.:	91-261-2442952
E-Mail :	sumilon@sumilon.com sumilon@bom6.vsnl.net.in sumilon@drdcs.net
Website :	www.sumilon.com
Location :	Owned
Factory 1 :	43/1 46/2, Village Varsana, National Highway No. 8A, Gandhidham-370110, Gujarat, India
Factory 2 :	Dadra and Nagar Haveli, India

DIRECTORS

As on 30.09.2009

Name :

Mr. Mahesh Jariwala

Designation :

Managing Director

Address :

6/491, Kharadi Sheri, Manchharpura, Surat, Gujarat

Date of Birth/Age :

13.08.1961

Date of Appointment :

27.06.1996

DIN No.:

01103754

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17110GJ1991PTC015147	SUMILON TEX PVT LTD	Managing director	04/03/1991	04/03/1991	-	Active	YES
2	U29199GJ1996PLC030056	SUMILON INDUSTRIES LIMITED	Managing director	01/04/2010	27/06/1996	-	Active	NO
3	U17199GJ2006PLC047894	SHREE KAPIL YARN LIMITED	Managing director	06/03/2006	06/03/2006	-	Active	YES

Name :

Mr. Jitendra Jariwala

Designation :

Director

Address :

6/491, Kharadi Sheri, Manchharpura, Surat, Gujarat

Date of Birth/Age :

25.09.1966

Date of Appointment :

27.06.1996

DIN No.:

01265242

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17110GJ1991PTC015147	SUMILON TEX PVT LTD	Director	04/03/1991	04/03/1991	-	Active	YES
2	U29199GJ1996PLC030056	SUMILON INDUSTRIES LIMITED	Whole-time director	01/04/2010	27/06/1996	-	Active	NO
3	U17199GJ2006PLC047894	SHREE KAPIL YARN LIMITED	Director	06/03/2006	06/03/2006	-	Active	YES

Name :

Mr. Alok Jitendra Kumar Jariwala

Designation :

Director

Address :

97, Adarsh Society, Athwalines, Surat - 395001, Gujarat, India

Date of Birth/Age :

22.11.1988

Date of Appointment :

01.10.2007

DIN No.:

01981609

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17199GJ2006PLC047894	SHREE KAPIL YARN LIMITED	Director	01/10/2007	01/10/2007	-	Active	YES
2	U29199GJ1996PLC030056	SUMILON INDUSTRIES LIMITED	Director	01/10/2007	01/10/2007	-	Active	NO
3	U17290GJ2008PLC053619	SUMILON POLYESTER LIMITED	Director	20/03/2010	20/03/2010	20/03/2010	Active	NO

KEY EXECUTIVES

Name :	Mr. Jild
Designation :	Chief Executive Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2009

Names of Shareholders	No. of Shares
Sumanlal Atmaram	1170055
Mehesh Sumanlal Jariwala	1401914
Jitender Sumanlal Jariwala	1079306
Bhagwatiben Sumanlal Jariwala	875728
Hansaben Mahesh Jariwala	1034598
Daxaben Jitendra Jariwala	985762
Jayshreeben Solanki	100
Sumanlal Jariwala HUF	348577
Mahesh Jariwala HUF	607351
Jitendra Jariwala HUF	671247
Sumilon Tex Private Limited, India	680000
Sumilon Palstic Private limited, India	437500
Nikunj Jariwala	922720
Jignesh Mahesh JAriwala	766249
Alok Jariwala	765678
Total	11746785

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2009

Category	Percentage
Bodies corporate	10.00
Directors or relatives of Directors	76.00
Other top fifty shareholders	14.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Metallic Yarn.
Products :	· Plain Polyester Film · Metallic Yarn Zari Kasab · Metalised and Lacquered Polyester Film
Exports :
Products :	Metallic Yarn.
Countries :	UAE Bangladesh France Pakistan Turkey
Imports :
Products :	Raw Material
Countries :	Japan Korea China
Selling :	Cash and credit
Purchasing :	Cash and credit

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Licensed Capacity /Installed Capacity	Actual Production
Plain Polyester Film	M.T	8,400.00	5,557.79
Mettalised and Metalised and lacq. Polyester Film	M.T	9,600.00	8,626.75
Badla (Immi. Jari) & Kasab	M.T	4,200.00	2,069.21
Embroidery Thread Yarn	M.T	540.00	15.27
Power generated	units	16,819,200	12,637,088

GENERAL INFORMATION

Suppliers :

• JBS Industries Limited

Customers :

Wholesalers and Retailers

• Alok Industries

No. of Employees :

500 (Approximately)

Bankers :

Bank of Baroda, Branch Sufi Baug, Delhi Gate, Vairagni Wadi, Surat - 395003, Gujarat , India

Facilities :

CC :Rs.1500.000 Millions

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	320.087	146.537
Working capital loans banks secured	58.740	22.697
Loans taken for vehicles secured	1.796	3.620
Total	380.623	172.854
Note: (A) Secured by way of equitable mortgage of immovable properties as well as hypothecation of plant & machinery of the company along with personal guarantee and assets of some of the directors/shareholders of the company (B) secured against hypothecation of vehicles

Banking Relations :	--
Auditors :
Name :	SNK and Company Chartered Accountants
Address :	31-A, Adarsh Society, Opposite Seventhday Advenest School, Athwalines, Surat -395001, Gujarat,India
PAN.:	AAJFS8455L
Related Party:	Gajanan Industries Shree Ganesh Exports Shree Vinayank Metalics Riddhi Moulding Works Siddhi Moulding Works Ekdant Textlies Vigna raj Corporation Shree Ganesh Textiles

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
12930000	Equity Shares	Rs.10/- each	Rs.129.300 Millions
640000	Add: Partly Paid Up	Rs.5/- each	Rs.3.200 Millions
	Total		Rs.132.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11110785	Equity Shares	Rs.10/- each	Rs.111.108 Millions
640000	Add: Partly Paid Up	Rs.5/- each	Rs.3.200 Millions
	Total		Rs. 114.308 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		114.308	114.268	76.835
2] Share Application Money		0.000	0.200	0.200
3] Reserves & Surplus		686.389	590.533	498.598
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		800.697	705.001	575.633
LOAN FUNDS
1] Secured Loans		380.623	172.854	155.312
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		380.623	172.854	155.312
DEFERRED TAX LIABILITIES		63.904	67.453	37.094
SHARE SUSPENSE ACCOUNT		0.000	0.0000	37.433
TOTAL		1245.224	945.308	805.472
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		683.360	675.285	587.764
Capital work-in-progress		2.328	61.862	3.236
INVESTMENT		94.172	0.296	0.200
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	250.675	167.534	141.475
	Sundry Debtors	173.072	145.001	107.638
	Cash & Bank Balances	37.753	10.352	13.780
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	208.090	161.337	69.934
Total Current Assets		669.590	484.224	332.827
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	75.535	196.288	44.985
	Other Current Liabilities	76.352	54.397	37.950
	Provisions	52.339	25.739	35.752
Total Current Liabilities		204.226	276.424	118.687
Net Current Assets		465.364	207.800	214.140
MISCELLANEOUS EXPENSES		0.000	0.065	0.132
TOTAL		1245.224	945.308	805.472

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1448.373	1297.774	996.298
		Other Income	18.390	18.414	21.436
		TOTAL (A)	1466.763	1316.188	1017.734
Less	EXPENSES
		Consumption material changes inventories	753.516	702.704
		Manufacturer service costs	282.404	249.755
		Employees related expenses	31.071	20.604
		Administrative selling other expenses	42.489	38.218
		TOTAL (B)	1109.480	1011.281	762.034
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		357.283	304.907	255.700
Less	FINANCIAL EXPENSES (D)		23.372	15.712	18.872
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		333.911	289.195	236.828
Less/ Add	DEPRECIATION/ AMORTISATION (F)		188.199	148.649	69.897
	PROFIT BEFORE TAX (E-F) (G)		145.712	140.546	166.931
Less	TAX (H)		50.016	48.611	57.354
	PROFIT AFTER TAX (G-H) (I)		95.696	91.935	109.577
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		352.388	260.453	151.175
	MAT CREDIT RECEIVABLE		0.000	0.000	0.299
	BALANCE CARRIED TO THE B/S		448.084	352.388	260.453
	Earnings Per Share (Rs.)			8.05	12.58

Particulars	31.03.2012
Sales Turnover (Approximately)	1200.000

Expected Sales (2012-2013): Rs.1500.000 Millions

The above information has been parted by Mr. Jild – Chief Executive Officer

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.52	6.98	10.77
Net Profit Margin (PBT/Sales)	(%)	10.06	10.83	16.76
Return on Total Assets (PBT/Total Assets}	(%)	21.76	29.02	50.16
Return on Investment (ROI) (PBT/Networth)		0.18	0.20	0.29
Debt Equity Ratio (Total Liability/Networth)		0.73	0.64	0.48
Current Ratio (Current Asset/Current Liability)		3.28	1.75	2.80

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U29199GJ1996PLC030056
Name of the company	SUMILON INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	Vairagini Wadi, Delhi Gate, Surat – 395003, Gujarat Email: sumilon@sumilon.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90096494
Type of charge	Immovable property
Particular of charge holder	Bank of Baroda, Branch Sufi Baug, Delhi Gate, Vairagni Wadi, Surat - 395003, Gujarat , India Email: sufiba@bankofbaroda.com
Nature of instrument creating charge	Instrument of Extension relating to Deposit of Title Deeds Together with Instrument relating to Deposit of Title Deeds
Date of instrument Creating the charge	29.09.2010
Amount secured by the charge	Rs.1180.900 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Collateral Security hence Not Applicable. Terms of Repayment Collateral Security hence Not Applicable. Margin Collateral Security hence Not Applicable. Extent and Operation of the charge First and Exclusive Charge on the assets stated stated in point no.15
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Land and building bearing R. B.No.161/P adm. hector 1.42.70 together with building, structures, erections and constructions standing thereon lying, being and situated at Vil. Mota Borsara, Ta. Mangrol, Dist.Surat. Land bearing survey no. 219/4/2 admeasuring 1970 sq.mtrs.of Villlage Dadra of Union Territory of Dadra and Nagar Haveli.
Date of instrument modifying the charge	27.03.2009
Particulars of the present modification	Charge on the assets is now extended to various revised / reviewed and enhanced financial assistance of Rs.1180.900 Millions.

FIXED ASSETS

• Land
• Factory Building
• Staff Quarters
• Plant and Machinery
• Furniture and Fixture and Electric Fitting
• Office Equipment
• Electrical Equipments
• Motor car
• Computer

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.55.38
UK Pound	1	Rs.87.79
Euro	1	Rs.69.47

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--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	YES
--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.