MIRA INFORM REPORT

Report Date :

31.08.2012

IDENTIFICATION DETAILS

Name :	DADU PROCESSORS PRIVATE LIMITED
Registered Office :	J- 2056, 1st Floor, Surattextile Market, Ring Road, Surat – 395002, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.12.2002
Com. Reg. No.:	04-041758
Capital Investment / Paid-up Capital :	Rs.19.997 Millions
CIN No.: [Company Identification No.]	U17119GJ2002PTC041758
TAN No.: [Tax Deduction & Collection Account No.]	SRTD01430C SRTD01420G SRTD01424D
PAN No.: [Permanent Account No.]	AABCD9093L
Legal Form :	Private Limited Liability Company
Line of Business :	Job Work of Dyeing and Printing of Farments
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 120000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some increase in the sales turnover of the company during 2011. Profitability has dipped drastically during this year. However, 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.

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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. Ashok Kumar Hariom Garg
Designation :	Director
Contact No.:	91-9374537676
Date :	30.08.2012

LOCATIONS

Registered Office :	J- 2056, 1st Floor, Surattextile Market, Ring Road, Surat – 395002, Gujarat, India
Tel. No.:	91-261-2321760 / 2333415
Mobile No.:	91-9374537676 (Mr. Ashok Kumar Hariom Garg)
Fax No.:	91-261-2333415
E-Mail :	anil.dad@gmail.com jsomani_c2001@yahoo.com
Factory :	Plot No.141, Village Tatithya Bardoli Road, T-Palsana, Surat – 394327, Gujarat, India

DIRECTORS

As on 30.09.2011

Name :	Mr. Ashok Kumar Hariom Garg
Designation :	Director
Address :	40/A, Chintan Park, Society, Near, Dinbandhu Society, Bhatar Road, Surat – 395007, Gujarat, India
Date of Appointment :	26.12.2002
DIN No.:	00413875
Voter ID No. :	DPB3077062
Name :	Mr. Hariom Banarsidas Garg
Designation :	Director
Address :	40/A, Chintan Park, Society, Near, Dinbandhu Society, Bhatar Road, Surat – 395007, Gujarat, India
Date of Appointment :	26.12.2002
DIN No.:	00413975
Voter ID No. :	DPB3077229
Name :	MrS. Monika Rajkumar Garg
Designation :	Director
Address :	40/A, Chintan Park, Society, Near, Dinbandhu Society, Bhatar Road, Surat – 395007, Gujarat, India
Date of Appointment :	26.12.2002
DIN No.:	00413937
Voter ID No. :	THP2992725
Name :	Mr. Kalpna Ashok Garg
Designation :	Director
Address :	40/A, Chintan Park, Society, Near, Dinbandhu Society, Bhatar Road, Surat – 395007, Gujarat, India
Date of Appointment :	26.12.2002
DIN No.:	00414008
Voter ID No. :	DPB6408314
Name :	Mr. Rajkumar Hariom Garg
Designation :	Director
Address :	40/A, Chintan Park, Society, Near, Dinbandhu Society, Bhatar Road, Surat – 395007, Gujarat, India
Date of Appointment :	26.12.2002
DIN No.:	01743818
Voter ID No. :	THP2992717

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Rajkumar Garg	191800
Meena Omprakash Gupta	12500
Ashokkumar Hariom Garg	21200
Purshotam Garg (HUF)	68535
Asutosh Gupta	39150
Daxa N. Chevli	24238
Deepak Garg	18800
Garg Silk Mills	13500
Hariom Garg (HUF)	47300
Jagwati Garg	63375
Kalpana Garg	30000
Kalpana Silk Mills	17000
Kamleshwar Prasad	36896
Kanchanben Chevali	41900
Montu P. Garg	23750
Monika Garg	19000
Monika Silk Mills	30000
Neema Gupta	41000
Nilesh Chevali (HUF)	8500
Omprakash Agarwal	170500
Pramod R. Shah	59700
Purshotam D. Garg	64555
R.P. Garg	59400
Rajkumar Garg (HUF)	13000
Rajnish Bathena	22800
Sajjan B. Garg	21000
Sajjan Garg(HUF)	26800
Sanjeev O. Gupta	63300
Sanmukhlal Chevali	30085
Santosh Gupta	26646
Satendra Shah	31300
Savitridevi B Garg	25500
Shakumtalal P. Garg	32150
Shankar Prajapati	50900
Sunil R. Shah	49750
Vimladevi Gupta	66000
Vinod B Shah	46450
Omprakash Agarwal (HUF)	54970
Hariom Garg	216050
Sandeep Garg	4800
Anil Gupta	4850
Yogesh Mistry	52800
Shayam B Garg (HUF)	57950
Total	1999700

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Job Work of Dyeing and Printing of Farments
Terms :
Selling :	Cash
Purchasing :	Cash

GENERAL INFORMATION

Customers :

Traders

No. of Employees :

200 (Approximately)

Bankers :

Standard Chartered Bank, 1st Floor, C K Tower, Besides Sargam Shopping Centre, Parle Point, Surat - 395007, Gujarat, India

Facilities :

Cash Credit Rs.15.000 Millions (Form Standard Chartered Bank)

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Term Loan From State Bank of India (Secured Against the Hypothication of Plant and Machinry and equitable mortgage of factory land and building)	25.966	34.220
Cash Credit Facility From State Bank of India (Secured Against the Hypothication of entire current assets)	9.232	8.720
Total	35.198	42.940
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Unsecured Loan	14.104	14.639
Total	14.104	14.639

Banking Relations :
Auditors :
Name :	J. Somani and Company Chartered Accountants
Address :	117, Shri Hari Park, Nr. Center Point Building, Ring Road, Surat – 395002, Gujarat, India
PAN.:	AACFJ0138N

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1999700	Equity Shares	Rs.10/- each	Rs.19.997 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		19.997	19.997	19.997
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		10.156	9.780	7.083
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		30.153	29.777	27.080
LOAN FUNDS
1] Secured Loans		35.198	42.940	21.562
2] Unsecured Loans		14.104	14.639	11.474
TOTAL BORROWING		49.302	57.579	33.036
DEFERRED TAX LIABILITIES		3.580	3.656	4.446
TOTAL		83.035	91.012	64.562
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		74.345	78.450	55.283
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	4.001	1.957	1.661
	Sundry Debtors	23.919	39.133	32.622
	Cash & Bank Balances	3.792	1.752	0.476
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	16.309	13.758	10.322
Total Current Assets		48.021	56.600	45.081
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	39.002	43.665	35.183
	Other Current Liabilities	0.014	0.024	0.082
	Provisions	0.315	0.349	0.537
Total Current Liabilities		39.331	44.038	35.802
Net Current Assets		8.690	12.562	9.279
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		83.035	91.012	64.562

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	193.130	181.715	159.447
		Other Income	0.328	0.196	17.404
		TOTAL (A)	193.458	181.911	176.851
Less	EXPENSES
		Raw Material Consumed	65.049	65.374
		Manufacturer Expenses	95.475	85.340
		Selling and Administrative Expenses	19.222	17.004
		TOTAL (B)	179.746	167.718	165.484
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		13.712	14.193	(Including Financial Expenses)
Less	FINANCIAL EXPENSES (D)		3.829	3.808
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.883	10.385	11.367
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.268	8.130	6.283
	PROFIT BEFORE TAX (E-F) (G)		0.615	2.255	5.084
Less	TAX (H)		0.239	(0.442)	1.149
	PROFIT AFTER TAX (G-H) (I)		0.376	2.697	3.935
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		7.281	4.584	0.649
	BALANCE CARRIED TO THE B/S		7.657	7.281	4.584
	Earnings Per Share (Rs.)		0.19	NA	NA

Particulars	31.03.2012
Sales Turnover (Approximately)	240.000

Expected Sales (2012-13) : Rs.280.000 Millions

The above information has been parted by Mr. Ashok Kumar Hariom Garg

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.19	1.48	2.23
Net Profit Margin (PBT/Sales)	(%)	0.32	1.24	3.19
Return on Total Assets (PBT/Total Assets}	(%)	0.50	1.67	5.07
Return on Investment (ROI) (PBT/Networth)		0.02	0.08	0.19
Debt Equity Ratio (Total Liability/Networth)		2.94	3.41	2.54
Current Ratio (Current Asset/Current Liability)		1.22	1.28	1.26

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Rs. In Millions

Particular	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors For Expenses	4.509	7.238	8.751
Sundry Creditors For Capital Goods	0.770	0.898	3.986
Sundry Creditors For Goods	33.723	35.529	22.446
Total	39.002	43.665	35.183

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	No
17]	Major suppliers	No
18]	Major customers	No
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]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	Yes
34]	External Agency Rating, if available	No

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17119GJ2002PTC041758
Name of the company	DADU PROCESSORS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	J- 2056, 1st Floor, Surattextile Market, Ring Road, Surat – 395002, Gujarat, India jsomani_ca2001@yahoo.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10294712
Type of charge	Immovable property
Particular of charge holder	Standard Chartered Bank, 1st Floor, C K Tower, Besides Sargam Shopping Centre, Parle Point, Surat - 395007, Gujarat, India sme.form8@sc.com
Nature of instrument creating charge	Supplemental memorandum of deposit of title deeds dated 17.07.2012
Date of instrument Creating the charge	17.07.2012
Amount secured by the charge	Rs.49.112 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As Agreed by & with the bank from time to time Terms of Repayment As Agreed by & with the bank from time to time Margin As per bank's sanction Extent and Operation of the charge First Exclusive Charge on Securities mentioned in column No.15 for Rs.49.112 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All that piece & parcel of land with superstructure thereon situated on land bearing Revenue Survey no.198/1,Block no. 141 , Vill- Tantithaiya, Taluka - Palsana, District - Surat adm 6421 sq. meter
Date of instrument modifying the charge	26.06.2011
Particulars of the present modification	By this supplemental memorandum of entry now the immovebale property charged in secured againse the extended facility of Rs.49.112 Millions

FIXED ASSETS

· Land

· Factory Building

· Capital Work In Progress

· Plant and Machinery

· Water Treatment Plant

· Boiler House

· Trolly

· Electrical Install

· Borewell

· Furniture and Fixture

· Computer

· Machine Accessories

· Air Conditioner

· Tempo

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.55.65
UK Pound	1	Rs.88.10
Euro	1	Rs.69.84

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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		34

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.