MIRA INFORM REPORT

Report Date :

04.12.2012

IDENTIFICATION DETAILS

Name :	P.D. SEKHSARIA TRADING COMPANY PRIVATE LIMITED
Registered Office :	Gurudwara Singh Sabha Street, Bathinda – 151 001, Punjab
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	23.09.1987
Com. Reg. No.:	16-007679
Capital Investment / Paid-up Capital :	Rs.2.500 millions
CIN No.: [Company Identification No.]	U51109PB1987PTC007679
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Supplier of Yarn.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 410000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The latest financials of the company are not made available. As per previous year’s, there appears some external borrowings. However, trade relations are reported as fair. Business is active. Payment terms are unknown. The company can be considered for business dealings with some caution. Profit and Loss account for the year 2011 of the 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 – 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

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	LONG TERM BANK FACILITIES : BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	22 February 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.

LOCATIONS

Registered Office :	Gurudwara Singh Sabha Street, Bathinda – 151 001, Punjab, India
Tel. No.:	91-164-2250741
Fax No.:	Not Available
E-Mail :	acts@pdst.in
Corporate Office :	904, Tulsiani Chambers, Nariman Point, Mumbai – 400 021, Maharashtra, India
Tel No.:	91-22-22854088 / 40095050 / 40095000
Fax No.:	91-22-40095001 / 22834284 / 55 / 91 / 92

DIRECTORS

As on 06.09.2012

Name :	Mr. Jagmohan Parmeshwarlal Sekhsaria
Designation :	Director
Address :	Sekhsaria House, 28, Babulnath, Mumbai – 400 007, Maharashtra, India
Date of Birth/Age :	10.10.1944
Date of Appointment :	23.09.1987
DIN No.:	00184910
Name :	Mr. Alok Jagmohan Sekhsaria
Designation :	Director
Address :	Sekhsaria House, 28, Babulnath, Mumbai – 400 007, Maharashtra, India
Date of Birth/Age :	31.01.1972
Date of Appointment :	04.11.1996
DIN No.:	00185081
Name :	Mrs. Mayuri Alok Sekhsaria
Designation :	Director
Address :	Sekhsaria House, 28, Babulnath, Mumbai – 400 007, Maharashtra, India
Date of Birth/Age :	10.08.1977
Date of Appointment :	20.05.1998
DIN No.:	00185121

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 06.09.2012

Names of Shareholders	No. of Shares
Jagmohan Sekhsaria	2045
Alok Sekhsaria	6135
J.P. Sekhsaria – HUF	2083
Vidya Sekhsaria	4055
Sekhsaria Polycot Private Limited	2045
Sekhsaria Vidya Jointly with Sekhsaria Alok	7045
Sekhsaria Jagmohan Jointly with Sekhsaria Alok	2045
Total	25453

Equity Share Break up (Percentage of Total Equity)

As on 06.09.2012

Category	Percentage
Bodies corporate	8.00
Directors or relatives of directors	92.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Supplier of Yarn.

Product :

Product Description	Item Code No.:
Cotton	5201.00.00

GENERAL INFORMATION

Bankers :

• Union Bank of India, Mumbai Samachar Marg Branch, 66/ 80, Mumbai Samachar Marg, Fort, Mumbai – 400 023, Maharashtra, India
• Citi Bank
• HSBC Bank

Facilities :

Secured Loans :	As on 31.03.2011 Rs. in Millions	As on 31.03.2010 Rs. in Millions
Working Capital Loans from Banks	125.000	258.592
Total	125.000	258.592

Unsecured Loans :	As on 31.03.2011 Rs. in Millions	As on 31.03.2010 Rs. in Millions
Loans directors unsecured	0.348	0.348
Total	0.348	0.348

Banking Relations :	--
Auditors :
Name :	Phirodia Bafna and Associates Chartered Accountants
Address :	304, Sangam Arcade, Vallabhbhai Road, Opposite Railway Station, Vile Parle (West), Mumbai – 400 056, Maharashtra, India
Tel. No.:	91-22-26185962/ 63/ 64
Fax No.:	91-22-26185967
E-mail Id :	phirodiabafna@gmail.com
PAN No.:	AAAFP2683E
Related Parties As on 31.03.2010) :	· Ashok Enterprises · Dwarkadas and Company Patiala Private Limited · J P Trading Company · Suvidh Commodities E-Com Private Limited · Agrimanage India Private Limited · Sekhsaria Polycot Private Limited · Marvi Commodities Private Limited

CAPITAL STRUCTURE

As on 06.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
75000	Equity Shares	Rs.100/- each	Rs.7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
25453	Equity Shares	Rs.100/- each	Rs.2.545 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs.100/- each	Rs.2.500 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		2.500	2.500	2.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		99.764	47.394	23.412
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		102.264	49.894	25.912
LOAN FUNDS
1] Secured Loans		125.000	258.592	138.975
2] Unsecured Loans		0.348	0.348	0.348
TOTAL BORROWING		125.348	258.940	139.323
DEFERRED TAX LIABILITIES		0.080	0.001	0.000
TOTAL		227.692	308.835	165.235
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.831	0.079	0.177
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		7.036	1.437	1.437
DEFERREX TAX ASSETS		0.000	0.000	8.427
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.542	476.990	20.397
	Sundry Debtors	17.707	197.463	50.445
	Cash & Bank Balances	164.901	14.640	8.738
	Other Current Assets	5.300	23.080	0.432
	Loans & Advances	197.529	118.200	105.705
Total Current Assets		385.979	830.373	185.717
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	144.344	79.803	9.135
	Current Liabilities	1.310	435.651	21.289
	Provisions	23.500	7.600	0.099
Total Current Liabilities		169.154	523.054	30.523
Net Current Assets		216.825	307.319	155.194
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		227.692	308.835	165.235

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Turnover		1962.170	497.155
		Other Income		NA
		TOTAL		NA	497.155
Less	EXPENSES
		Office Expenses		1337.286	516.753
		Administrative Expenses
		Advertising Expenses
		TOTAL		1337.286	516.753
	PROFIT BEFORE TAX		NA	24.904	(19.598)
Less	TAX			0.063	(0.014)
	PROFIT AFTER TAX			24.841	(19.584)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings		1165.067	391.251
	TOTAL EARNINGS			1165.067	391.251
	Earnings Per Share (Rs.)			993.64	(783.40)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	NA	(3.94)
Return on Total Assets (PBT/Total Assets}	(%)	NA	3.00	(10.54)
Return on Investment (ROI) (PBT/Networth)		NA	0.50	(0.76)
Debt Equity Ratio (Total Liability/Networth)		2.88	15.67	6.55
Current Ratio (Current Asset/Current Liability)		2.28	1.59	6.08

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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last two years	Yes
12]	Profitability for last two years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
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	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
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	U51109PB1987PTC007679
Name of the company	P D SEKHSARIA TRADING COMPANY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Gurudwara Singh Sabha Street, Bathinda – 151 001, Punjab , India E-mail Id : acts@pdst.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10328929
Type of charge	Immovable property
Particular of charge holder	Union Bank of India, Mumbai Samachar Marg Branch, 66/80, Mumbai Samachar Marg, Fort, Mumbai – 400023, Maharashtra, India E-mail Id : msmcredit@unionbankofindia.com
Nature of instrument creating charge	Memorandum of Entry (Supplementary Memorandum)
Date of instrument Creating the charge	21.12.2011
Amount secured by the charge	Rs.500.00 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Together with interest, costs,charges expenses etc Terms of Repayment On Demand. Margin As per sanction terms. Extent and Operation of the charge To additionally secure revised credit facilities aggregating to Rs.500.000 Millions granted by the Bank to the Company
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Extension of Equitable Mortgage by Deposit of Title Deeds by Oral Consent in respect of Company's Immovable Property viz Property measuring 312 Sq.Yards bearing M.C.No. 4242 situated at Singh Sabha Gurdwara Street, Bathinda as per HTA for the year 2011-12 bounded as under- East: 72' Vinay Kumar West: 72' Krishna Bahi Store North 39' Street South : 39' Ram Natak Club
Particulars of the present modification	The Original Charge Dated: 01/12/2011 for Rs.400.000 Millions is hereby modified & enhanced to Rs.500.000 Millions and additionally secured by Extension of Equitable Mortgage by Deposit of Title Deeds by Oral Consent in respect of Company's Immovable Property viz Property measuring 312 Sq. Yards bearing M.C.No. 4242 situated at Singh Sabha Gurdwara Street, Bathinda as per HTA for the year 2011-12 bounded as under East:72' Vinay Kumar West:72' Krishna Bahi Store North 39' Street South: 39' Ram Natak Club

FIXED ASSETS:

• Office Equipments
• Furniture and Fixtures
• Air Conditioner and Refrigerator
• Computer
• Motor Car

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.54.56
UK Pound	1	Rs.87.46
Euro	1	Rs.71.08

INFORMATION DETAILS

Report Prepared by :

BSN

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	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		36

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.