MIRA INFORM REPORT

Report Date :

08.02.2012

IDENTIFICATION DETAILS

Name :	EASTERN MILLS PRIVATE LIMITED
Registered Office :	Peerkhanpura Road, Bhadohi 221401, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.10.2000
Com. Reg. No.:	025682
Capital Investment / Paid-up Capital :	Rs.100.420 millions
CIN No.: [Company Identification No.]	U17119UP2000PTC025682
TAN No.: [Tax Deduction & Collection Account No.]	ALDE00359C
PAN No.: [Permanent Account No.]	AAACE7969F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Carpet
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 269640
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established 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 cautions.

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 :	Peerkhanpura Road, Bhadohi 221401, Uttar Pradesh, India
Tel. No.:	91-5414-224090 / 228334
Fax No.:	91-5414-228492
E-Mail :	callrajeshji@yahoo.com sujoy@easternmills.com
Factory :	Rayan, Suriawan Road, Post Box 137, Bhadohi 221 401, Uttar Pradesh, India

DIRECTORS

AS ON 14.09.2011

Name :	Mr. Zafar Husnain Ansari
Designation :	Director
Date of Appointment :	03.10.2000
DIN No.:	00482837

OTHER DIRECTORS

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	U17112UP1994PTC016561	H.N.S. Exports Private Limited	Director	16/06/1994	16/06/1994	-	Active	NO
2	U17119UP2000PTC025682	Eastern Mills Private Limited	Director	03/10/2000	03/10/2000	-	Active	NO
3	U25199UP2001PTC025863	Textile Rubber And Chemical Company (India) Private Limited	Director	09/02/2001	09/02/2001	-	Active	NO

Name :	Mrs. Nasreen Bano
Designation :	Director
Date of Appointment :	02.06.2011
DIN No.:	00482874

OTHER DIRECTORS

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	U17112UP1994PTC016561	H.N.S. Exports Private Limited	Director	16/06/1994	16/06/1994	-	Active	NO
2	U17119UP2000PTC025682	Eastern Mills Private Limited	Additional director	02/06/2011	02/06/2011	-	Active	NO
3	U18101DL2005PTC142464	Selection Textile Private Limited	Additional director	04/01/2012	04/01/2012	-	Active	NO

Name :	Mr. Zafar Iqbal Ansari
Designation :	Director
Date of Appointment :	03.10.2000
DIN No.:	00703705

OTHER DIRECTORS

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	U17119UP2000PTC025682	Eastern Mills Private Limited	Managing director	03/10/2000	03/10/2000	-	Active	NO
2	U25199UP2001PTC025863	Textile Rubber And Chemical Company (India) Private Limited	Managing director	09/02/2001	09/02/2001	-	Active	NO
3	U36100DL2011PTC212406	Indian Rug Weavers Private Limited	Director	10/01/2011	10/01/2011	-	Active	NO
4	U18101DL2005PTC142464	Selection Textile Private Limited	Additional director	04/01/2012	04/01/2012	-	Active	NO

Name :	Mr. Abdul Ansari Kalam
Designation :	Director
Date of Appointment :	03.10.2000
DIN No.:	01654144

Name :	Mr. Abdul Rahim Ansari
Designation :	Director
Date of Appointment :	02.06.2011
DIN No.:	03178104

OTHER DIRECTORS

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	U36100DL2011PTC212406	Indian Rug Weavers Private Limited	Director	10/01/2011	10/01/2011	-	Active	NO
2	U17119UP2000PTC025682	Eastern Mills Private Limited	Additional director	02/06/2011	02/06/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 14.09.2011

Names of Shareholders	No. of Shares
Mr. Zafar Husnain Ansari Address: Hamid Manzil, Peerkhanpur Road, Sant Ravidas Nagar, Bhadohi 221401, Uttar Pradesh, India	3406540
Mr. Zafar Iqbal Ansari Address: Hamid Manzil, Peerkhanpur Road, Sant Ravidas Nagar, Bhadohi 221401, Uttar Pradesh, India	2986700
Mr. Abdul Ansari Kalam Address: Hamid Manzil, Peerkhanpur Road, Sant Ravidas Nagar, Bhadohi 221401, Uttar Pradesh, India	3206800
Mrs. Shama Afroz Address: Hamid Manzil, Peerkhanpur Road, Sant Ravidas Nagar, Bhadohi 221401, Uttar Pradesh, India	222000
Mrs. Rashika Parveen Ansari Address: Hamid Manzil, Peerkhanpur Road, Sant Ravidas Nagar, Bhadohi 221401, Uttar Pradesh, India	220000
Total	10042040

AS ON 14.09.2011

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

BUSINESS DETAILS

Line of Business :

Manufacturer of Carpet

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Jammu and Kashmir Bank Limited, Corporate Headquarters, M A Road, Srinagar, Kashmir 190001, Jammu and Kashmir, India

· ICICI Bank

Facilities :

Rs. In Millions

SECURED LOAN	31.03.2011	31.03.2010
Rupee Term Loans Banks Secured	1.972	0.000
Foreign Currency Loans Other Secured	14.982	11.180
Working Capital Loans Banks Secured	35.000	15.000
Total	51.954	26.180

Banking Relations :	--
Auditors :
Name :	S R Gupta and Company Chartered Accountant
Address 1:	Bida Shopping Complex, Aurai Road, Bhadohi 221401, Uttar Pradesh, India
Address 2:	771 / 656, Old Katra, Allahabad 211002, Uttar Pradesh, India
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

AS ON 14.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs. 10 each	Rs.110.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10042040	Equity Shares	Rs. 10 each	Rs.100.420 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		100.420	100.420	100.420
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(33.010)	(43.898)	(51.730)
NETWORTH		67.410	56.522	48.690
LOAN FUNDS
1] Secured Loans		51.954	26.180	21.090
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		51.954	26.180	21.090
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		119.364	82.702	69.780
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		34.755	35.942	37.404
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	168.505	37.269	30.446
	Sundry Debtors	34.580	23.574	28.970
	Cash & Bank Balances	2.710	1.321	3.883
	Other Current Assets	12.344	15.036	0.045
	Loans & Advances	0.000	0.000	0.000
Total Current Assets		218.139	77.200	63.344
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	129.804	28.667	30.445
	Other Current Liabilities	3.726	1.773	0.523
	Provisions	0.000	0.000	0.000
Total Current Liabilities		133.530	30.440	30.968
Net Current Assets		84.609	46.760	32.376
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		119.364	82.702	69.780

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	170.768	96.792	146.788
		Other Income	14.719	8.526	10.066
		TOTAL (A)	185.487	105.318	156.854
Less	EXPENSES
		Selling and Distribution Expenses
		Office Expenses	167.581	92.728	134.505
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	167.581	92.728	134.505
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		17.906	12.590	22.349
Less	FINANCIAL EXPENSES (D)		2.538	1.518	2.057
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		15.368	11.072	20.292
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.770	1.762	1.739
	PROFIT BEFORE TAX (E-F) (G)		13.598	9.310	18.553
Less	TAX (H)		NA	NA	NA
	PROFIT AFTER TAX (G-H) (I)		NA	NA	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	140.499	69.547	NA
	Earnings Per Share (Rs.)		--	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	NA	NA
Net Profit Margin (PBT/Sales)	(%)	7.96	9.61	12.63
Return on Total Assets (PBT/Total Assets}	(%)	5.37	8.22	18.41
Return on Investment (ROI) (PBT/Networth)		0.20	0.16	0.38
Debt Equity Ratio (Total Liability/Networth)		2.75	1.00	1.06
Current Ratio (Current Asset/Current Liability)		1.63	2.53	2.04

LOCAL AGENCY FURTHER INFORMATION

FORM 8

Corporate identity number of the company	U17119UP2000PTC025682
Name of the company	EASTERN MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Peerkhanpura Road, Bhadohi 221401, Uttar Pradesh
This form is for	Modification of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	Jammu and Kashmir Bank Limited, Corporate Headquarters, M A Road, Srinagar, Kashmir 190001, Jammu and Kashmir, India Email: badohi@jkbmail.com
Nature of instrument creating charge	1.Confirmation of Creation / Extension of Mortgage 2.Hypothecation Agreement dated 01.08.2011 3.Export Credit Agreement 4. Letter of continuity
Date of instrument Creating the charge	01.08.2011
Amount secured by the charge	Rs. 117.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest On PCL of Rs.85.000 millions As per FEBD Guidelines On PSL LC/NLC of Rs. 30.000 millions As per FEBD Guidelines On Cash Credit of Rs. 2.000 millionsas applicable Terms of repayment As Per Agreement. Margin PCL : 25 % PSL L/C/NLC: NIL Cash Credit : 40% Extent and operation of the charge The Bank shall hold first charge on the Properties/ Assets as stated in para 15 below to secure its PCL of Rs. 85.000 millions, PSL LC/NLC of Rs. 30.000 millions and Cash Credit of Rs. 2.000 millions aggregating Rs.117.000 millions.
Short particulars of the property charged (Including location of the property)	1.Plot No. 21 Min. Area 6 Biswa 11 Dhoor Situated In Village Mehboobpur, Bhadoi 2.Plot No. 21 Min. Area 12 Biswa 1 Dhoor Situated In Village Mehboobpur, Bhadoi 3.Plot No. 21 Min. Area 6 Biswa 9 Dhoor Situated In Village Mehboobpur, Bhadoi 4.Plot No. 21 Min. Area 6 Biswa 11 Dhoor Situated In Village Mehboobpur, Bhadoi 5.Plot No. 21 Min. Area 1 Bigha 14 Biswa 3 Dhoor Situated In Village Mehboobpur, Bhadoi 6. Plot No 1236 Area 4 Bigha 15 Biswa 19 Dhur Situated At Village Rayan Badohi Hypothecation Of All Stocks, Stores And Book Debts Of The Company.
Whether any of the property or interest therein under reference is not registered in the name of the company. If yes, in whose name it is registers	Yes, Properties mentioned in 15 are registered in the name of Zaffar Hussain Ansari and Hazi Abdul Kalam and Zaffar Iqbal Ansari and Nasreen Banu directors and Rasika Praveen and Shama Afaroj relatives of director
Date of instrument modifying the charge	04.02.2011
Particulars of the present modification	The overall amount of charge is being enhanced from Rs.52.000 millions to Rs. 117.000 millions consisting of PCL of Rs. 85.000 millions, PSL of Rs. 30.000 millions and CC of Rs. 2.000 millions.

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.48.92
UK Pound	1	Rs.77.31
Euro	1	Rs.64.12

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.