MIRA INFORM REPORT

Report Date :

05.01.2012

IDENTIFICATION DETAILS

Name :	PARTAP FABRICS PRIVATE LIMITED (W.E.F. 28.06.2010)
Formerly Known as :	PARTAP FABRICS LIMITED
Registered Office :	35, Sector – 9, Urban Estate, Ambala City – 134003, Haryana
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	15.06.2010
Com. Reg. No.:	05-040701
Capital Investment / Paid-up Capital :	Rs.40.000 Millions
CIN No.: [Company Identification No.]	U17291HR2010PTC040701
TAN No.: [Tax Deduction & Collection Account No.]	RTKP05249G
PAN No.: [Permanent Account No.]	AAFCP5213Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Denim Fabrics.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 200000
Status :	New Company
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a relatively new company establishing itself gradually. The company has achieved a sizeable turnover in its very first year of operation. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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 :	35, Sector – 9, Urban Estate, Ambala City – 134003, Haryana, India
Tel. No.:	91-171-2871050
Fax No.:	Not Available
E-Mail :	spintex@partapgroup.com partapfabrics@hotmail.com jpjnco@hotmail.com

DIRECTORS

As on 29.09.2011

Name :

Mr. Surinder Paul Bansal

Designation :

Managing director

Address :

34, Sector – 9, Urban Estate, Ambala City – 134003, Haryana, India

Date of Birth/Age :

19.06.1956

Date of Appointment :

15.06.2010

DIN No.:

00286177

Other Directorship :

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
U15142HR1991PTC031166	Nu-Chem Oils Private Limited	Managing director	1/04/2011	24/01/1991	-	Active	NO
U15142HR1992PTC031841	Partap Vanaspati Private Limited	Managing director	18/11/1992	18/11/1992	1/10/2010	Active	NO
U15143PB2003PTC025978	Shiva Protein Products Private Limited	Director	1/05/2003	1/05/2003	18/08/2008	Active	YES
U17110HP2003PLC026490	Shivom Cotspin Limited	Director	29/10/2003	29/10/2003	-	Active	NO
U15140HR1989PLC030556	Partap Spintex Limited	Managing director	31/01/2005	31/01/2005	-	Active	NO
U17291HR2010PTC040701	Partap Fabrics Private Limited	Managing director	1/04/2011	15/06/2010	-	Active	NO
U01112HR1992PLC031788	Mahakali Agro Industries Limited	Director	28/09/2011	1/01/2011	-	Active	NO

Name :

Mr. Satish Kumar Bansal

Designation :

Director

Address :

34, Sector – 9, Urban Estate, Ambala City – 134003, Haryana, India

Date of Birth/Age :

17.07.1960

Date of Appointment :

15.06.2010

DIN No.:

00286229

Other Directorship :

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
U15142PB1988PLC008614	Partap Industries Limited	Director	1/04/1992	1/04/1992	27/02/2010	Active	NO
U01112HR1992PLC031788	Mahakali Agro Industries Limited	Managing director	1/12/2009	25/03/1993	-	Active	NO
U15142PB1994PTC014421	Bhagwati Proteins Private Limited	Director	8/06/1998	8/06/1998	-	Active	NO
U17110HP2003PLC026490	Shivom Cotspin Limited	Director	29/10/2003	29/10/2003	-	Active	NO
U15140HR1989PLC030556	Partap Spintex Limited	Managing director	1/04/2011	28/08/2004	-	Active	NO
U15143PB2003PTC025978	Shiva Protein Products Private Limited	Director	1/08/2005	1/08/2005	29/05/2008	Active	YES
U17114PB2006PLC030769	Punjab Spintex Limited	Director	26/12/2006	26/12/2006	18/02/2010	Active	NO
U17291HR2010PTC040701	Partap Fabrics Private Limited	Director	15/06/2010	15/06/2010	-	Active	NO

Name :

Mr. Pawan Kumar Singla

Designation :

Director

Address :

34, Sector – 9, Urban Estate, Ambala City – 134003, Haryana, India

Date of Birth/Age :

03.11.1955

Date of Appointment :

15.06.2010

DIN No.:

00286260

Other Directorship :

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
U01112HR1992PLC031788	Mahakali Agro Industries Limited	Whole-time director	1/12/2009	21/09/1992	-	Active	NO
U17110HP2003PLC026490	Shivom Cotspin Limited	Whole-time director	1/04/2011	7/06/2008	-	Active	NO
U17291HR2010PTC040701	Partap Fabrics Private Limited	Director	15/06/2010	15/06/2010	-	Active	NO
U15140HR1989PLC030556	Partap Spintex Limited	Director	30/09/2011	1/01/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
Surinder Paul Bansal	99100
Satish Bansal	1504600
Pawan Singla	522100
Sangeeta Bansal	62500
Rashmi Bansal	10000
Anshul Singla	10000
Sharul Bansal	10000
Surinder Paul Bansal (HUF)	37000
Satish Bansal (HUF)	256700
Prem Kumar Singla	150000
Raj Kumar Singla	200000
Sanjay Modi	90000
Sidhharth	50000
Richa Singla	80000
Partap Spintex Limited., India	1450000
Sita Ram Sharma	148000
Nu – Chem Oils Private Limited	150000
Jai Durga Finance Company	70000
Kalwanti	100000
Total	5000000

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2011

Category	Percentage
Bodies corporate	32.00
Directors or relatives of Directors	63.64
Other top fifty shareholders	4.36
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Denim Fabrics.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Denim Fabric	5209

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Installed Capacity
Manufacturing of Denim Fabrics	Meter	10 Million

GENERAL INFORMATION

Suppliers :

· Anil Limited

· Eco Polychem Private Limited

· ACC Limited

· Sanil Chemicals

· Jaoo Rai and Sons

· Shree Shyam Technical Services

· V K Impex

· H K Enterprises

Customers :

· Denim Corporation

· Lion Textile

· Tushar Fabrics Private Limited

No. of Employees :

Not Available

Bankers :

Punjab National Bank, Nicholson Raod, Ambala Cantt – 133001, Haryana, India

HDFC Bank Limited, Ambala Cantt

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)
Punjab National Bank, Main Branch, Ambala Cantt, MTL A/c (Secured against security of Fixed Assets)	170.081
Punjab National Bank, Ambala Cantt, Cash Credit (Secured by Hypothecation of stocks and book debts) (Corporate Guarantee given by Mahakali Agro Industries Limited and Partap Vanaspati Private Limited)	27.935
Total	198.016
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)
From Directors, their Relatives and Share Holders	31.243
Total	31.243

Banking Relations :	--
Auditors :
Name :	Kant Goyal and Associates Chartered Accountants
Address :	Opposite Peer, Bal Bhawan Road, Ambala City – 134003, Haryana, India
Tel. No.:	91-171-2557002
Mobile No.:	91-9416020002
PAN.:	ADJPG9343G
Related Parties :	Partap Spintex Limited (Holding more than 25% equity by Partap Partap Spintex Limited)

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs.40.000 Millions
1000000	Equity Shares Pending for Allotment	Rs.10/- each	Rs.10.000 Millions
	Total		Rs.50.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		40.000
2] Share Application Money (Pending for Allotment)		10.000
3] Reserves & Surplus		0.724
4] (Accumulated Losses)		0.000
NETWORTH		50.724
LOAN FUNDS
1] Secured Loans		198.016
2] Unsecured Loans		31.243
TOTAL BORROWING		229.259
DEFERRED TAX LIABILITIES		4.843
TOTAL		284.826
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		244.782
Capital work-in-progress		1.963
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	75.852
	Sundry Debtors	20.603
	Cash & Bank Balances	0.712
	Other Current Assets	0.000
	Loans & Advances	6.788
Total Current Assets		103.955
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	58.957
	Other Current Liabilities	6.296
	Provisions	1.206
Total Current Liabilities		66.459
Net Current Assets		37.496
MISCELLANEOUS EXPENSES		0.585
TOTAL		284.826

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011
	SALES
		Income	7712.275
		Other Income
		TOTAL	7712.275
Less	EXPENSES
		Office Expenses
		Administrative Expenses	7155.551
		Advertising Expenses
		Financial Expenses
		Depreciation
		TOTAL	7155.551
	PROFIT BEFORE TAX		556.724
Less	TAX		118.485
	PROFIT AFTER TAX		438.239
	IMPORTS
		Capital Goods	94.087
	TOTAL IMPORTS		94.087
	Earnings Per Share (Rs.)		1.10

KEY RATIOS

PARTICULARS		31.03.2011
PAT / Total Income	(%)	5.68
Return on Total Assets (PBT/Total Assets}	(%)	159.64
Return on Investment (ROI) (PBT/Networth)		10.98
Debt Equity Ratio (Total Liability/Networth)		5.83
Current Ratio (Current Asset/Current Liability)		1.56

LOCAL AGENCY FURTHER INFORMATION

FORM 8

Corporate identity number of the company	U17291HR2010PTC040701
Name of the company	Partap Fabrics Private Limited
Address of the registered office or of the principal place of business in India of the company	35, Sector - 9, Urban Estate, Ambala City – 134003, Haryana, India Email Id : jpjnco@hotmail.com
This form is for	Creation of charge
Type of charge	Immovable property Any interest in immovable property Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	Punjab National Bank, Nicholson Road, Ambala Cantt – 133001, Haryana, India Email Id : bo0014@pnb.co.in
Nature of instrument creating charge	1. Hypothecation of Assets To Secure Term Loan 2. Agreement of Term Loan 3. Hypothecation of Current Assets 4. Hypothecation of Movable Assets Forming Part of Fixed/Block Assets 5. Equitable Mortgage of Land, Fixed and Block Assets of the Company
Date of instrument Creating the charge	19.08.2011
Amount secured by the charge	Rs.140.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest BR+4.25%+Term Premia i.e. presently being 15.50% per annum with monthly rests. Interest payable by the borrower shall be subject to change/variation in interest rates by the Bank from time to time Terms of repayment Term Loan of Rs.140.000 Millions shall be repayable w.e.f. 31.12.2012 in 26 quarterly installments of Rs.5.385 Millions each. Interest shall be serviced as and when levied Margin 25% Extent and operation of the charge 100%
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Charge on Block Assets of the Company both present and future Charge including EM of Land measuring 10 Acre 2 Kanal Entire plant and machinery including existing plant as well as plant and machinery imported Em of Land measuring 13 Kanal 4 Marla owned by Partap Vanaspati Pvt. Ltd. Situated at Taraori Likn Road, Rakba Vill. Takhana, Distt. Karnal and Building built thereon Em of Industrial shed, Village Mohra, Area 12 Kanal, Khewat/Khatoni 5/5 Khasra No. 39//4.7/1 (Part) owned by Kala Wanti, Sudarshan Paul, Surinder Paul, Satish Kumar, Hypothecation of Stock of Raw Material, Stock in Process, Finished Goods, Packing Material, Stores and Spares and all other items acceptable to the Bank required for manufacturing of Denim Fabric in Factory and items stored in Godowns etc. Book Debts outstanding decree money receivables, Government Subsidies, claims with contract an investments etc.
Whether any of the property or interest therein under reference is not registered in the name of the company	Partap Vanasati Private Limited Kalawanti and Others

Contingent Liabilities not provided for in respect of As on 31.03.2011:

· Cliam against the company not acknowledged as debts – Rs. Nil

· Estimated amount of contracts remaining to be executed on capacity account not provided for – Rs. Nil

· Import Duty Concession availed under EPCG Scheme, against which Export Obligations is to be fulfilled – Rs.13.288 Millions

· Counter indemnity issued to SBI for Bank Guarantee – Rs.2.193 Millions

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Weigh Scale

· Office Equipment

· Computer

· Furniture and Fixture

· Boiler

· Vehicle

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 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.53.14
UK Pound	1	Rs.83.08
Euro	1	Rs.69.25

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--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		29

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.