MIRA INFORM REPORT

Report Date :

09.02.2012

IDENTIFICATION DETAILS

Name :	SKAPS INDUSTRIES INDIA PRIVATE LIMITED
Registered Office :	Plot No. A-20, Survey No.423, Mahagujarat Industrial Estate, Ahmedabad Bavla Highway, Tal Sanand, Ahmedabad – 382210, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	18.11.1998
Com. Reg. No.:	04-034993
Capital Investment / Paid-up Capital :	Rs.390.514 Millions
CIN No.: [Company Identification No.]	U51909GJ1998PTC034993
TAN No.: [Tax Deduction & Collection Account No.]	AHMP03812E
PAN No.: [Permanent Account No.]	AADCP2779D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Trading of Slit Tape Woven and Non Woven Fabrics.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (38)

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

Maximum Credit Limit :	USD 1970000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate trade. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small business dealings at usual trade terms and conditions.

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 :	Plot No. A-20, Survey No.423, Mahagujarat Industrial Estate, Ahmedabad Bavla Highway, Tal Sanand, Ahmedabad – 382210, Gujarat, India
Tel. No.:	91-2717-251586/ 87/ 88/ 89
Fax No.:	91-2717-251586/ 87
E-Mail :	sumersingh@skaps.com
City Office :	1, Darshan Society, Third Floor, Saraspur Bank Building, Opposite Jain Temple, Commerce Road, Near Stadium Circle, Navrangapura, Ahmedabad – 380009, Gujarat, India

DIRECTORS

(AS ON 30.09.2010)

Name :

Mr. Utkarsh Nigam Parikh

Designation :

Director

Address :

Nigam House, Vijay Cross Road, Navrangpura, Ahmedabad, Gujarat-380009

Date of Birth/Age :

08.01.1971

Date of Appointment :

27.05.2004

DIN No:

00065855

Other Directorships :

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	U74999GJ1995PTC024871	NIGAM TECHNOLOGIES PRIVATE LIMITED	Director	06-03-95	06-03-95	Active	NO
2	U72200GJ2004PTC043650	ASHNI INFOTECH PRIVATE LIMITED	Director	19-02-04	19-02-04	Active	NO
3	U51909GJ1998PTC034993	SKAPS INDUSTRIES INDIA PRIVATE LIMITED	Director	27-05-04	27-05-04	Active	NO

Name :

Mr. Naymish Pravinchandra Patel

Designation :

Director

Address :

708, Bluff Road, statham GA, Athens, United States of America- 306662537

Date of Birth/Age :

29.09.1965

Date of Appointment :

05.07.2004

DIN No:

03057287

Other Directorships :

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	U51909GJ1998PTC034993	SKAPS INDUSTRIES INDIA PRIVATE LIMITED	Director	05-07-04	05-07-04	Active	NO
2	U72200GJ2004PTC043650	ASHNI INFOTECH PRIVATE LIMITED	Director	07-07-04	07-07-04 Bottom of Form	Active	NO

Name :

Mr. Ravi Chitranjanbhai Patel

Designation :

Director

Address :

705, Bluff Road, statham GA, Athens, United States of America- 306662538

Date of Birth/Age :

05.12.1965

Date of Appointment :

05.07.2004

DIN No:

03057296

Other Directorships :

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	U51909GJ1998PTC034993	SKAPS INDUSTRIES INDIA PRIVATE LIMITED	Director	05-07-04	05-07-04	Active	NO
2	U72200GJ2004PTC043650	ASHNI INFOTECH PRIVATE LIMITED	Director	07-07-04	07-07-04	Active	NO

Name :

Mr. Paresh Balvant Vyas

Designation :

Director

Address :

707, Bluff Road, statham GA, Athens, United States of America- 306662538

Date of Birth/Age :

12.11.1963

Date of Appointment :

27.05.2004

DIN No:

03057306

Other Directorships :

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	U51909GJ1998PTC034993	SKAPS INDUSTRIES INDIA PRIVATE LIMITED	Director	27-05-04	27-05-04	Active	NO
2	U72200GJ2004PTC043650	ASHNI INFOTECH PRIVATE LIMITED	Director	07-07-04	07-07-04	Active	NO

Name :

Mrs. Preeti Nigam Parikh

Designation :

Director

Address :

Nigam Family Trust Hospital, Near Vijay Char Rasta, Navrangpura, Ahmedabad, Gujarat-380009

Date of Birth/Age :

01.06.1944

Date of Appointment :

12.04.2006

DIN No:

00379464

Other Directorships :

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	U74999GJ1995PTC024871	NIGAM TECHNOLOGIES PRIVATE LIMITED	Director	17-04-00	17-04-00	Active	NO
2	U72200GJ2004PTC043650	ASHNI INFOTECH PRIVATE LIMITED	Director	19-02-04	19-02-04	Active	NO
3	U51909GJ1998PTC034993	SKAPS INDUSTRIES INDIA PRIVATE LIMITED	Alternate director	12-04-06	12-04-06	Active	NO

Name :

Mrs. Hetal Utkarsh Parikh

Designation :

Director

Address :

Nigam House, Vijay Char Rasta, Navrangpura, Ahmedabad, Gujarat-380009

Date of Birth/Age :

04.12.1974

Date of Appointment :

12.04.2006

DIN No:

00496274

Other Directorships :

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	U51909GJ1998PTC034993	SKAPS INDUSTRIES INDIA PRIVATE LIMITED	Alternate director	12-04-06	12-04-06	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Amish Patel	200497
Ashni Infotech Private Limited, India	14415
B Patel and Sachin Patel	2146341
Balubhai Patel	5282128
Balvant p. Vyas	487544
Bharat Pathak	630703
C.D Patel	445615
Chitranjandas D. Patel	853127
Chandrakant Patel	72222
Himanshu Barot	206195
Jimit Vyas	156767
Kalaben Vyas	157778
Madhuben C. Patel	72222
Marck Remedies Limited, India	2816667
Nayan Vyas	565406
Naymish P. Patel	612382
Paresh B. Vyas	1266253
PHR. INC d/b/a Skaps Industrial, Athens GA	5572047
Prabha Patel	574709
Preeti N. Parikhl	577777
Purvi Pate	521583
Raj Joshi	662520
Ravi. C. Patel	875437
Sachin B. Patel	318287
U C and S U Patel	658175
Umesh Patel	425266
Utkarsha N. Parikh	970772
P B P Patel and PP Patel	184805
L P Patel and Pranjivan Patel	173892
Rajendra Joshi and Sangeeta Joshi	208693
Dipak Kumar Mavar	176203
Surabhi Patel Umesh Patel	117355
Total	29649995

(AS ON 30.03.2011)

Names of Allottee	No. of Shares Allotted
Chandrakant Ambalal Patel	140000
PBR INC d/b/a SKAPS Industries, Athens GA	4628979

(AS ON 30.09.2010)

Equity Shares Break – up

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	18.80
Bodies corporate	9.55
Directors or relatives of directors	71.65
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Trading of Slit Tape Woven and Non Woven Fabrics.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India,

Commercial Branch, Paramsiddhi Complex, Ellisbridge, Ashram Road, Ahmedabad- 380006, Gujarat, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee Term Loans	203.088	292.999
Working Capital Loans Secured	170.198	238.582
Loan Taken for Fixed Assets	4.105	5.467
Total	377.391	537.048
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Loans Directors Unsecured	1.100	1.138
Total	1.100	1.138

Banking Relations :	--
Auditors :
Name :	Vijay Moondra and Company Chartered Accountants
Address :	19, Dhananjay Bhungalow B/H Shyamlal Rowhouise 3 B, Satteliteroad , Ahmedabad
PAN No.:	ABDPM8334K

CAPITAL STRUCTURE

(AS ON 30.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
42000000	Equity Share	Rs.10/- each	Rs.420.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
39626284	Equity Share	Rs.10/- each	Rs.396.263 Millions

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Share	Rs.10/- each	Rs.400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
39051417	Equity Share	Rs.10/- each	Rs.390.514 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		390.514	295.326	186.356
2] Share Application Money		18.522	9.528	26.455
3] Reserves & Surplus		82.765	34.897	122.881
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		491.801	339.751	335.692
LOAN FUNDS
1] Secured Loans		377.391	537.048	431.026
2] Unsecured Loans		1.100	1.138	1.787
TOTAL BORROWING		378.491	538.186	432.813
DEFERRED TAX LIABILITIES		1.214	1.898	1.947
TOTAL		871.506	879.835	770.452
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		495.841	541.214	558.695
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		5.173	5.173	5.173
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	80.056	58.280	43.601
	Sundry Debtors	246.485	267.300	144.034
	Cash & Bank Balances	18.304	11.564	5.730
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	38.752	42.718	26.742
Total Current Assets		383.597	379.862	220.107
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	18.556	60.459	31.616
	Other Current Liabilities	0.644	0.552	0.475
	Provisions	11.720	9.156	11.124
Total Current Liabilities		30.920	70.167	43.215
Net Current Assets		352.677	309.695	176.892
MISCELLANEOUS EXPENSES		17.815	23.753	29.692
TOTAL		871.506	879.835	770.452

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	825.812	529.704	465.302
		Other Income	NA	27.514	29.273
		TOTAL (A)	NA	557.218	494.575
Less	EXPENSES
		TOTAL (B)	NA	452.273	396.011
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		148.339	104.943	98.564
Less	FINANCIAL EXPENSES (D)		44.462	42.844	21.503
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		103.877	62.099	77.061
Less/ Add	DEPRECIATION/ AMORTISATION (F)		52.652	54.992	32.462
	PROFIT BEFORE TAX (E-F) (G)		51.225	7.107	44.599
Less	TAX (H)		3.546	4.221	2.551
	PROFIT AFTER TAX (G-H) (I)		47.679	2.886	42.048
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	122.881	80.832
	BALANCE CARRIED TO THE B/S		NA	125.767	122.881
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	815.716	517.803	460.042
		Share Application Money	102.782	1.174	73.367
	TOTAL EARNINGS		918.498	518.977	533.409
	IMPORTS
		Raw Materials and Stores and Spares	18.837	136.887	9.057
		Capital Goods	0.000	0.000	168.588
	TOTAL IMPORTS		18.837	136.887	177.645
	Earnings Per Share (Rs.)		1.51	0.13	2.26

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	0.52	8.50
Net Profit Margin (PBT/Sales)	(%)	6.20	1.34	9.58
Return on Total Assets (PBT/Total Assets}	(%)	5.82	0.77	15.99
Return on Investment (ROI) (PBT/Networth)		0.10	0.02	0.13
Debt Equity Ratio (Total Liability/Networth)		0.83	1.79	1.42
Current Ratio (Current Asset/Current Liability)		12.41	5.41	0.47

LOCAL AGENCY FURTHER INFORMATION

NOTE:

The Registered office of the company has been shifted from G – 003, Samrajya Tower, Near Manav Mandir, Drive in Road, Ahmedabad – 380052, Gujarat, India, to the present address w.e.f. 01.12.2005.

FINANCIAL REVIEW:

The company has managed its resources and profitability. The company has not kept any resources idle. During the year company earned a profit as shown in point no 1. This profit includes a interest subsidy of TUFS of Rs 0.622 Million. During the year company managed the funds in better way and able to reduce of the funds.

OPERATIONS:

The operations of the company during the year were satisfactory. The steps taken during the previous year were further pursued to reduce costs and improve the range of products. During the year the sales has gone up by 56 from Rs.529.704 Millions to Rs. 825.812 Millions. Environment Management and Social Management All manufacturing facilities possess required environmental clearances from respective Pollution Control Board and the same are in compliance with the present environmental legislation. As an integral part of company s environmental protection drive, the company ensures minimum quantity of waste generation, low emission levels and low noise pollution levels during plant operations. The relationship with the workmen remained cordial during the year. Company has organized safety committee to reduce the accidents and do the work in safe way. The committee will regulate the safety measures. In addition to this Company got certified by ISO 9001:2008, ISO 14001:2004, BS OHSAS 18001:2007.

CONTINGENT LIABILITIES:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In millions)
Liabilities in respect of Bills Discounted with Banks	0.613	1.226	97.377
Claims against the company not acknowledged as debts (Compounding penalty payable to Paschim Gujarat Vij Company Limited)	1.024	0.000	0.000

FORM 8

Corporate identity number of the company	U51909GJ1998PTC034993
Name of the company	SKAPS INDUSTRIES INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No A-20, Survey No 423, Mahagujarat Industrial Estate, Ahmedabad Bavla Highway, Tal Sanand, Ahmedabad – 382210, Gujarat, India sumersingh@skaps.com
This form is for	Modification of charge
Charge identification number of the charge to be modified	80031891
Type of Charge	Immovable Property Book Debts Movable property (not being
Particular of charge holder	State Bank of India, Commercial Branch, Paramsiddhi Complex, Ellisbridge, Ashram Road, Ahmedabad – 380006, Gujarat, India. agmrm2.mcgahm@sbi.co.in
Nature of instrument creating charge	Supplemental Memorandum of Entry for Extension of Equitable Mortgage Charge
Date of instrument Creating the charge	18/02/2010
Amount secured by the charge	Rs.160.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per the regulations of Reserve Bank of India from time to time Terms of Repayment As per the norms of the bank Margin As per the norms of the bank Extent and operation of the charge The Charge shall be Secured by way of first Charge for Term Loan I of Rs. 100 millions SBI And Term Loan of Rs.60 millions of Bank of India.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All that Piece and Parcel of Non-Agricultural land bearing PVT. SUB- P. No. A/20 Paiki Adm. 17485.55 Sq Mtrs. of S. No. 423/ Paiki, at Mouje Moraiya, Tal. Sanand, Reg. District Ahmedabad and Sub District Sanand. All that Piece or Parcel of Land situated within Mundra Integrated Textile and Apparel Park In Mundra Sez , Adm. 72396 Sq. Mts., S. N. 141 Paiki, At Vill Mundra, Tal Mundra, District Kutchh,State , Gujarat
Date of last modification prior to the present modification	10/03/2006
Particulars of the present modification	The Term Loan Stands Revised For Rs.160.000 Millions (SBI--Rs.100.000 millions and BOI -- Rs.60 Millions). The Charge Is Also Secured by all that Piece Or Parcel Of Land Situated Within Mundra Integrated Textile and Apparel Park In Mundra Sez , Adm. 72396 Sq. Mts., S. N. 141 Paiki, At Vill. Mundra, Tal Mundra, District Kutchh, State Gujarat.

FIXED ASSETS

o Land

o Building

o Factory

o Plant and Machinery

o Office Equipments

o Computer Equipments

o Furniture Fixtures

o Leasehold Properties

o Vehicles

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.48.68
UK Pound	1	Rs.76.75
Euro	1	Rs.63.57

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		38

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.