MIRA INFORM REPORT

Report Date :

03.02.2012

IDENTIFICATION DETAILS

Name :	PRIYANSHI CREATIONS PRIVATE LIMITED
Registered Office :	Plot No.146, Pandesara GIDC, Pandesara, Surat – 394221, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	06.03.2009
Com. Reg. No.:	04-056280
Capital Investment / Paid-up Capital :	Rs.5.900 Millions
CIN No.: [Company Identification No.]	U17120GJ2009PTC056280
TAN No.: [Tax Deduction & Collection Account No.]	SRTP03808A
PAN No.: [Permanent Account No.]	AAFCP0589D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Processing of Grey Cloth.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 170000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a relatively new company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. 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.

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 Office/ Factory 1 :	Plot No.146, Pandesara GIDC, Pandesara, Surat – 394221, Gujarat, India
Tel. No.:	91-261-2895876/ 6550000
Fax No.:	Not Available
E-Mail :	manoj20061@indiatimes.com sbazari2003@yahoo.co.in
Factory 2:	Plot No.93, Pandesara GIDC, Pandesara, Surat – 394221, Gujarat, India

DIRECTORS

(AS ON 30.09.2011)

Name :

Mr. Sumeet Shankarlal Somani

Designation :

Director

Address :

12-Keshav Park Society, Parle Point, Athwalines, Surat – 395007, Gujarat, India

Date of Birth/Age :

11.11.1980

Date of Appointment :

06.03.2009

DIN No.:

00318156

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	U17110GJ1981PTC004477	SOMANI OVERSEAS PRIVATE LIMITED	Director	5/6/2002	5/6/2002	-	Active	NO
2	L45200GJ1988PLC011049	SUMEET INDUSTRIES LIMITED	Whole-time director	1/10/2010	1/6/2004	-	Active	NO
3	U22211GJ1987PTC009299	SITARAM PRINTS PRIVATE LIMITED	Director	5/2/2007	5/2/2007	-	Active	NO
4	U85100GJ2008PTC054591	EXTREME HEALTH CARE PRIVATE LIMITED	Director	28/07/2008	28/07/2008	-	Active	NO
5	U17119GJ1991PTC015932	EKTA POLYFAB PRIVATE LIMITED	Director	10/11/2008	10/11/2008	18/06/2009	Active	NO
6	U17119GJ1994PTC023675	NATIONAL POLY YARN PRIVATE LIMITED	Director	10/11/2008	10/11/2008	-	Active	NO
7	U17120GJ2009PTC056280	PRIYANSHI CREATIONS PRIVATE LIMITED	Director	6/3/2009	6/3/2009	-	Active	NO

Name :

Mr. Satyen Sagarmal Somani

Designation :

Director

Address :

A-502, Megha Dhanush Apartment, Athwalines, Surat – 395007, Gujarat, India

Date of Birth/Age :

30.08.1966

Date of Appointment :

06.03.2009

DIN No.:

00106421

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U17110GJ1990PTC014192	VASANT FABRICS PRIVATE LIMITED	Director	27/11/2002	27/11/2002	Active	NO
2	U17110GJ1991PTC014993	PARAG SYNTEX PRIVATE LIMITED	Director	11/10/2005	11/10/2005	Active	NO
3	U17120GJ2009PTC056280	PRIYANSHI CREATIONS PRIVATE LIMITED	Director	6/3/2009	6/3/2009	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Satyen Sagarmal Somani	97500
Sumeet Shankarlal Somani	147500
Satyen Sagarwal Somani – HUF	25000
Vasant Fabrics Private Limited, India	110000
Sitram Prints Private Limited, India	85000
National Poly Yarn Private Limited, India	75000
Rosemary Vyapaar Private Limited, India	50000
Total	590000

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Bodies corporate	45.77
Directors or relatives of directors	54.23
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Processing of Grey Cloth.

Products :

Products Description	Item Code No.
Processing of Grey Cloth.	540752.4

PRODUCTION STATUS

Particulars	Unit	31.03.2011
Licensed and Installed Capacity	--	--
Actual Production	In Mtrs	12583460.00

GENERAL INFORMATION

Customers :

· Ambica Fashion

· Shrio Ambica Creations

· Amitex Fashion Private Limited

· Angan Prints Private Limited

· Digvilay Silk Mills

· Bahubali Prints private Limited

· Bharti Prints

· Dhan Laxmi Silk Mills

· Diwan Brothers Texim Private Limited

· Devendera Enterprises

· Ginni Fashions Private Limited

· Kalashree Fabrics Private Limited

· Laxmi Hari Prints Private Limited

· Omprakash and Company

· Raman Enterprises

No. of Employees :

Not Available

Bankers :

· State Bank of India

Special Commercial Branch, Kiran Chambers, Opposite J K Tower, Ring Road, Surat – 395002, Gujarat, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
State Bank of India (Term Loan A/c)	44.244	53.026
State Bank of India (CC A/c)	10.822	0.000
Total	55.066	53.026
NOTE: Term Loans from state Bank of India is secured by first mortgage and change on all immovable and movable assets present and future and also by personal guarantee of the directors. Cash Credit from State Bank of India is secured against hypothecation of stock and Book Debts of the company.
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From directors and Relatives	2.750	1.450
From Inter Corporate Deposits	1.200	0.000
Total	3.950	1.450

Banking Relations :	--
Auditors :
Name :	H. Tosniwal and Company Chartered Accountants
Address :	604, Empire State Building, Ring Road, Surat – 395002, Gujarat, India
PAN No.:	AACFH1890B

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
700000	Equity Shares	Rs.10/- each	Rs.7.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
590000	Equity Shares	Rs.10/- each	Rs.5.900 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		5.900	5.900	0.100
2] Share Application Money		7.700	7.700	5.050
3] Reserves & Surplus		31.400	31.400	0.000
4] (Accumulated Losses)		(2.593)	(3.213)	0.000
NETWORTH		42.407	41.787	5.150
LOAN FUNDS
1] Secured Loans		55.066	53.026	0.000
2] Unsecured Loans		3.950	1.450	0.000
TOTAL BORROWING		59.016	54.476	0.000
DEFERRED TAX LIABILITIES		0.802	1.305	0.000
TOTAL		102.225	97.568	5.150
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		80.610	95.957	0.000
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.210	0.010	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9.840	2.539	0.000
	Sundry Debtors	18.922	5.853	0.000
	Cash & Bank Balances	1.324	2.242	2.106
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	14.292	6.520	2.961
Total Current Assets		44.378	17.154	5.067
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	22.987	15.606	0.004
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.026	0.000	0.000
Total Current Liabilities		23.013	15.606	0.004
Net Current Assets		21.365	1.548	5.063
MISCELLANEOUS EXPENSES		0.040	0.053	0.087
TOTAL		102.225	97.568	5.150

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Sales and Job Charges	140.000	7.422
		Other Income	NA	0.077
		TOTAL (A)	NA	7.499
Less	EXPENSES
		Increase/ (Decrease) in Stock		(0.142)
		Grey	NA	0.506
		Manufacturing Expenses		6.034
		Administrative and Other Expenses		0.826
		TOTAL (B)	NA	7.224
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	0.275
Less	FINANCIAL EXPENSES (D)		NA	0.223
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.534	0.052
Less/ Add	DEPRECIATION/ AMORTISATION (F)		12.392	1.960
	PROFIT BEFORE TAX (E-F) (G)		0.142	(1.908)
Less	TAX (H)		(0.477)	1.305
	PROFIT AFTER TAX (G-H) (I)		0.619	(3.213)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	0.000
	BALANCE CARRIED TO THE B/S		NA	(3.213)
	Earnings Per Share (Rs.)		1.05	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	(42.85)	NIL
Net Profit Margin (PBT/Sales)	(%)	0.10	(25.71)	NIL
Return on Total Assets (PBT/Total Assets}	(%)	0.11	(1.69)	NIL
Return on Investment (ROI) (PBT/Networth)		0.00	(0.05)	NIL
Debt Equity Ratio (Total Liability/Networth)		1.93	1.68	0.00
Current Ratio (Current Asset/Current Liability)		1.93	1.10	1266.75

LOCAL AGENCY FURTHER INFORMATION

CONTINGENT LIABILITIES

Particulars	31.03.2011	31.03.2010
	(Rs. In Millions)
FD With Bank
In respect of the T/L	1.099	1.099

FORM 8:

Corporate identity number of the company	U17120GJ2009PTC056280
Name of the company	PRIYANSHI CREATIONS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 146, Pandesara GIDC, Pandesara, Surat – 394221, Gujarat, India priyanshi@drdcs.net
This form is for	Creation of charge
Type of charge	Book debts
Particular of charge holder	State Bank of India Sp. Commercial Branch, Kiran Chambers, Opposite J. K. Tower, Ring Road, Surat – 395002, Gujarat, India sbi.05020@sbi.co.in
Nature of instrument creating charge	Agreement of loan - cum - hypothecation
Date of instrument Creating the charge	31/10/2009
Amount secured by the charge	Rs.62.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: Working Capital: 1.50% above SBAR (SBAR 11.75% p.a.) Current effective rate of interest is 13.25% p.a. Term Loan:- 2% above SBAR (SBAR 11.75% p.a.) Current effective rate of interest is 13.75% p.a. Terms of Repayment: Working Capital :- On Demand Term Loan :- Repayable in 72 monthly installment after a moratorium period of 7 months or commencing from April, 2010 whichever is earlier as per the following schedule: 1. From 30.04.2010 to 29.02.2016 Rs.0.729 Million per month (for 71 months @ Rs.0.729 Millions = Rs.51.759 Millions) 2. Last Installment on 31.03.2016: Rs.0.741 Millions interest on Term Loan will be paid as and when due. The repayment will start from Rs.30.04.2010 Margin: Working Capital :- (I) Raw Material and Stores and Spares - 25%, (II) Stock in Process and Finished Goods - 100% (III) Book Debts (Cover period 60 Days) - 50 % Term Loan :- 25% Extent and operation of the charge: First and exclusive charge on the assets
Particulars of the property charged	Hypothecation of present and future stock of raw material, book debts and receivables of the Company. Hypothecation of Present and Future Plant and Machinery and other assets acquired out of Bank finance.

FIXED ASSETS:

· Land

· Building New

· Air Conditioner

· Computer

· Eicher Truck

· Erection and Inst.

· Folding Machine

· Furniture and Fixture

· Generator

· Loop Ager

· Office Equipments

· Pipe Lines

· Printing Machine

· Motor Cycle

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.49.13
UK Pound	1	Rs.77.85
Euro	1	Rs.64.75

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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		26

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.