MIRA INFORM REPORT

Report Date :

22.12.2012

IDENTIFICATION DETAILS

Name :	STARLING SILK MILLS PRIVATE LIMITED
Registered Office :	2E, Radha Gobinda Saha Lane, Kolkata – 700017, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	23.07.1996
Com. Reg. No.:	21-080568
Capital Investment / Paid-up Capital :	Rs. 2.461 Millions
CIN No.: [Company Identification No.]	U17299WB1996PTC080568
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of a wide variety of Yarn and Silk Fabrics.
No. of Employees :	250 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 58000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The management of the company has not filed with its latest financial 2011-12 with the government department from the financial of 2011 it seems that there appears a dip in the profitability of the company. However, networth appears to be satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and condition.

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

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. Azizur Rahman
Designation :	Director
Contact No.:	91-9932046385
Date :	06.12.2012

LOCATIONS

Registered Office :	2E, Radha Gobinda Saha Lane, Kolkata – 700017, West Bengal, India
Tel. No.:	91-33-30520995 / 22877556 91-3512-246385
Mobile No.:	91-9434046455 / 9932046385 [Mr. M. A. Rahman]
Fax No.:	91-3512-246383
E-Mail :	starlingsilk@gmail.com
Website :	http://www.starlingsilk.com
Area :	2500 sq. ft.
Location :	Owned
Factory :	Unit Baranagar, P. O. Jalalpur, P S Kaliachak, District Malda - 732101, West Bengal, India
Tel No.:	91-33-30520995
Area :	1500 sq. ft.
Location :	Owned

DIRECTORS

Name :	Mr. Azizur Rahman
Designation :	Director
Address :	Village – Baranagar, P. O. Jalalpur, Kaliachak, Malda – 732206, West Bengal, India
Date of Birth/Age :	05.03.1965
Date of Appointment :	23.07.1996
Voter ID No.:	WB/07/048/411274
DIN No.:	01013884
Name :	Mrs. Selina Rahaman
Designation :	Director
Address :	Village – Baranagar, P. O. Jalalpur, Kaliachak, Malda – 732206, West Bengal, India
Date of Birth/Age :	01.12.1975
Date of Appointment :	23.07.1996
Voter ID No.:	WB/07/048/459467
DIN No.:	02146354

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Azizur Rahman	181200
Selina Rahman	64900
Total	246100

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of a wide variety of Yarn and Silk Fabrics.

Products :

ITC Code	Product Descriptions
500600-03	Silk Yarn Silk Thread
500310-01	Silk Product Waste

Exports :

Products :

Finished Goods

Countries :

Ø Turkey

Ø USA

Ø Bangladesh

Ø European Countries

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS [AS ON 31.03.2010]

Particulars	Unit	Actual Production
Degummed	Kg.	179175.087
Spun Yarn	Kg.	124158.185

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

250 [Approximately]

Bankers :

Ø Bank of Baroda, Malda Branch, District Malda, Malda – 732101, West Bengal, India

Ø Punjab National Bank, New Alipore Branch, Block G, New Alipore, Kolkata - 700053, West Bengal, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
B.O.B. Malda CC -5001	19.002	23.484
B.O.B Park Circus CC- 05/26 (Against hypothecation of stock and debtors)	0.963	0.950
Interest BOB - term loan – Malda - A/c-06/107	3.385	0.000
B.O.B. Term Loan A/C 6002 (1^st)	2.061	4.258
B.O.B. Term Loan A/C 6006 (2^nd ) (Against hypothecation of plant and machinery)	4.845	7.221
Total	30.256	35.913
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Deferred Payment Creditors for Capital Work	4.900	7.100
Creditors Deferred	1.010	3.010
Sundry Creditors for Capital Goods	1.000	3.000
From Directors	7.350	7.350
From Directors	9.300	9.300
Total	23.560	29.760

Banking Relations :	--
Auditors :
Name :	Bhattacharya Sengupta and Company Chartered Accountants
Address :	10, Civil Row, 1st Floor, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-22421592 / 6386
Income-tax PAN of auditor or auditor's firm :	AAFFB3400Q

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
250,000	Equity Shares	Rs. 10/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
246,100	Equity Shares	Rs. 10/- each	Rs. 2.461 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		2.461	2.461	2.461
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		12.280	11.594	9.234
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		14.741	14.055	11.695
LOAN FUNDS
1] Secured Loans		30.256	35.913	41.951
2] Unsecured Loans		23.560	29.760	29.760
TOTAL BORROWING		53.816	65.673	71.711
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		68.557	79.728	83.406
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		40.120	39.467	43.695
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	27.128	38.737	33.989
	Sundry Debtors	5.463	6.471	6.019
	Cash & Bank Balances	0.748	0.437	0.560
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.406	1.364	1.360
Total Current Assets		34.745	47.009	41.928
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.574	4.743	0.639
	Other Current Liabilities	0.247	0.489	0.346
	Provisions	1.588	1.717	1.533
Total Current Liabilities		6.409	6.949	2.518
Net Current Assets		28.336	40.060	39.410
MISCELLANEOUS EXPENSES		0.101	0.201	0.301
TOTAL		68.557	79.728	83.406

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	82.579	78.473	38.083
		Other Income	0.787	0.732	0.989
		TOTAL (A)	83.366	79.205	39.072
Less	EXPENSES
		Raw material purchase minus return	36.860	49.900	26.651
		Salaries and wages	10.331	8.800	5.307
		Other Manufacturing Expenses	8.947	8.793	6.412
		Administrative and Management Expenses	4.410	2.829	1.900
		Insurance charges	0.642	0.596	0.602
		Transformer connection Expenses written off	0.100	0.100	0.100
		Increase/ (Decrease) in stock	12.117	(4.582)	(15.075)
		TOTAL (B)	73.407	66.436	25.897
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		9.959	12.769	13.175
Less	FINANCIAL EXPENSES (D)		4.685	5.098	5.423
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5.274	7.671	7.752
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.118	4.285	4.721
	PROFIT BEFORE TAX (E-F) (G)		1.156	3.386	3.031
Less	TAX (H)		0.470	1.026	0.650
	PROFIT AFTER TAX (G-H) (I)		0.686	2.360	2.381
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		11.594	9.234	6.853
	BALANCE CARRIED TO THE B/S		12.280	11.594	9.234
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.529	0.839	0.240
	Earnings Per Share (Rs.)		2.79	9.59	9.67

Particulars	31.03.2012
Sales Turnover (Approximately)	82.500

Expected Sales ( 2012-2013 ): Rs. 100.000 (Approximately)

The above information has been parted by Mr. Azizur Rahman (Director)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.82	2.98	6.09
Net Profit Margin (PBT/Sales)	(%)	1.40	4.31	7.96
Return on Total Assets (PBT/Total Assets}	(%)	1.54	3.92	3.53
Return on Investment (ROI) (PBT/Networth)		0.08	0.24	0.26
Debt Equity Ratio (Total Liability/Networth)		4.08	5.17	6.35
Current Ratio (Current Asset/Current Liability)		5.42	6.76	16.65

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	Yes
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	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	Yes
34]	External Agency Rating, if available	No

FIXED ASSETS

Ø Land and Building

Ø Factory Shed and Construction

Ø Plant and Machinery

Ø Furniture and Fixture

Ø Motor Cycle

Ø Computer

Ø Lab Equipment

Ø Transformer

Ø Vehicles

Ø Boiler

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 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. 55.09
UK Pound	1	Rs. 89.54
Euro	1	Rs. 72.77

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		43

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.