MIRA INFORM REPORT

Report Date :

17.05.2012

IDENTIFICATION DETAILS

Name :	JINDAL SPINNING MILLS LIMITED
Registered Office :	G-3, Industrial Area, Panipat – 132103, Haryana
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.12.2008
Com. Reg. No.:	038568
Capital Investment / Paid-up Capital :	Rs. 9.500 Millions
CIN No.: [Company Identification No.]	U17110HR2008PLC038568
TAN No.: [Tax Deduction & Collection Account No.]	RTKJ02638G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Blankets and Yarns
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 58848
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. 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 for 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

INFORMATION PARTED BY

Name :	Mr. Lekhram
Designation :	Account Manager
Contact No.:	91-9050503355
Date :	02.05.2012

LOCATIONS

Registered Office/ Factory :	G-3, Industrial Area, Panipat – 132103, Haryana, India
Tel. No.:	91-180-2654044
Mobile No.:	91-9050503355 (Mr. Lekhram)
Fax No.:	02.05.2012
E-Mail :	info@jindalspinningmills.com
Website :	www.jindalspinningmills.com
Area :	5000 Sq. Ft
Location :	Owned

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Puneet Jindal
Designation :	Director
Address :	22, Sukhdev Nagar, Panipat, Haryana- 132103, India
Date of Birth/Age :	18.07.1983
Qualification :	MBA
Date of Appointments:	02.12.2008
Name :	Mr. Sudhir Kumar Jindal
Designation :	Director
Address :	22, Sukhdev Nagar, Panipat, Haryana- 132103, India
Date of Birth/Age :	26.06.1957
Qualification :	Graduate
Date of Appointments:	02.12.2008

Name :	Mr. Sumit Jindal
Designation :	Director
Address :	22, Sukhdev Nagar, Panipat, Haryana- 132103, India
Date of Birth/Age :	02.03.1980
Qualification :	MBA
Date of Appointments:	02.12.2008

Other Directorship

Name:

SUMIT JINDAL

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	U51494HR2008PTC038279	K J TEXOFAB PRIVATE LIMITED	Director	19/08/2008	19/08/2008	-	Active	YES
2	U17110HR2008PLC038568	JINDAL SPINNING MILLS LIMITED	Director	02/12/2008	02/12/2008	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Sudhir Kumar Jindal	50750
Sumit Jindal	48250
Puneet Jindal	42000
Pooja Jindal	16400
Aditi Jindal	22250
Anshu Jindal	16000
Mukesh Kumar Jindal	600
Sudhir Kumar Jindal & HUF	16250
Total	212500

AS ON 30.09.2011

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Blankets and Yarns.
Products :	· Blankets · Yarns Woollen Blankets · Woollen Yarn · Military Blankets · Shoddy Yarn · Shoddy Blankets · Regenerated Acrylic Yarn · Relief Blankets · Wool Mix Yarn · Regenerated Acrylic Blankets · Shoddy Synthetic Yarn
Exports :
Products :	Blankets and Yarns
Countries :	· Kenya · Malawi · UAE · Tanzania
Imports :
Products :	Raw Material
Countries :	· UAE
Terms :
Selling :	L/C, Cash and Credit (30-60 Days)
Purchasing :	L/C, Cash and Credit (30-60 Days)

GENERAL INFORMATION

Customers :

· Wholesalers

· Retailers

· End Users

No. of Employees :

100 (in office + in factory + in branches)

Bankers :

· Oriental Bank of Commerce

Overseas Branch, N. K. Tower, G T Road, Panipat – 132103, Haryana, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
HDFC CAR LOAN -31650	0.528	0.839
HDFC CAR LOAN -25100	0.552	0.776
HDFC Bank Car – 9720	0.262	0.000
OBC BILLS PURCHASE	29.711	13.679
OBC C/C	1.209	1.159
OBC - PCL A/C	24.000	21.370
Total	56.262	37.823
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Aditi Jindal	0.261	0.556
Anshu Jindal	0.173	0.083
Brahma woollen Industries	2.610	1.825
Daksh Jindal	0.026	0.023
Jung Bahadur Goel	0.000	1.584
Jyoti Parsad & Sons	0.000	1.312
Kiran Garg	0.000	0.521
Mukesh Bansal	0.084	0.650
Naveen Bansal	0.425	0.425
Parth Jindal	0.132	0.022
Puneet Jindal	0.011	2.255
Purshotam Dass Prem Parkash	0.053	0.423
Ritesh Gupta	0.594	0.537
Samarth Jindal	0.026	0.022
Sanju Gupta	0.000	0.000
Sohan Lal Jai Dyal	0.074	0.529
Sudhir Kumar & Sons	0.092	0.000
Sudhir Kumar Jindal	0.000	0.747
Sumit Jindal	0.003	2.532
Surinder Kumar Singla	0.246	0.217
Vanita Bansal	0.450	0.450
Vatsal Garg	0.000	0.553
J.K Jindal and Sons	0.030	3.005
Bharti Gupta	0.764	0.000
Rahul Steel Centre	1.619	0.000
Pooja Rani Jindal	0.999	0.000
Sushma Kedia	1.045	0.000
Sham lal Gupta S/o Sh. Kedar Nath	0.425	0.000
Shimbhu Dayal S/o Sh. Ram Gopal	0.521	0.000
Total	10.663	18.271

Banking Relations :	--
Auditors :
Name :	Midha Khurana Guglani And Co Chartered Accountant
Address :	230, Sector 12, Part-II, karnal 132001, Haryana, India
Memberships :	SRTEPC
Associates/Subsidiaries :	· Jindal Fibers Address : Gandhidham, Gujrat, India Activity: Manufacturer of Blankets and Yarns · Dharampal Wollen Industries Address: Panipat Haryana, India Activity: Manufacturer of Blankets and Yarns

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- Each	Rs.2.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
162500	Equity Shares	Rs.10/- Each	Rs. 1.625 Millions
	Share Premium A/c		Rs. 7.875 Millions
	Total		Rs. 9.500 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		9.500	0.500	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5.212	2.327	0.260
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		14.712	2.827	0.760
LOAN FUNDS
1] Secured Loans		56.262	37.823	2.838
2] Unsecured Loans		10.663	18.271	6.054
TOTAL BORROWING		66.925	56.094	8.892
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		81.637	58.921	9.652
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		22.651	18.721	2.106
Capital work-in-progress		0.000	0.00	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	28.029	22.368	9.155
	Sundry Debtors	48.331	46.383	7.664
	Cash & Bank Balances	0.227	0.608	3.041
	Other Current Assets	0.530	0.040	0.000
	Loans & Advances	14.225	1.529	0.196
Total Current Assets		91.342	70.928	20.056
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	31.470	29.119	12.401
	Other Current Liabilities	0.935	1.663	0.175
	Provisions	0.000	0.000	0.000
Total Current Liabilities		32.405	30.782	12.576
Net Current Assets		58.937	40.146	7.480
MISCELLANEOUS EXPENSES		0.049	0.054	0.066
TOTAL		81.637	58.921	9.652

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	230.791	150.370	11.454
		Other Income	12.844	5.752	0.001
		TOTAL (A)	243.635	156.122	11.455
Less	EXPENSES
		Purchases	143.725	90.376	4.364
		Direct Expenses	55.567	43.235	5.470
		Administrative Expenses	29.357	15.644	1.187
		Preliminary Expenses Written off	0.005	0.013	0.017
		TOTAL (B)	228.654	149.268	11.038
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		14.981	6.854	0.417
Less	FINANCIAL EXPENSES (D)		7.576	3.140	0.156
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		7.405	3.714	0.261
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.520	1.646	0.001
	PROFIT BEFORE TAX (E-F) (G)		2.885	2.068	0.260
Less	TAX (I)		0.000	0.000	0.000
	PROFIT AFTER TAX (G-I) (J)		2.885	2.068	0.260

Particulars	31.03.2012
Sales Turnover (Approximately)	230.000

Expected Sales (2012-2013) : Rs. 300.000 Millions

The above information has been parted by (Mr. Lekhram - Account Manager)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.18	1.32	2.27
Net Profit Margin (PBT/Sales)	(%)	1.25	1.38	2.27
Return on Total Assets (PBT/Total Assets}	(%)	2.53	2.31	1.17
Return on Investment (ROI) (PBT/Networth)		0.19	0.73	0.34
Debt Equity Ratio (Total Liability/Networth)		6.75	30.73	28.25
Current Ratio (Current Asset/Current Liability)		2.81	2.30	1.59

LOCAL AGENCY FURTHER INFORMATION

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	Yes
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	Yes
30) Major Shareholders, if available	Yes

NOTE:

Previously it was in the name of Jindal Wollen Industries which was a partnership firm now it has been changed to Limited from December 2008 in the name of Jindal Spinning Mills Limited

FORM 8:

Corporate identity number of the company	U17110HR2008PLC038568
Name of the company	Jindal Spinning Mills Limited
Address of the registered office or of the principal place of business in India of the company	G-3, Industrial Area, Panipat – 132103, Haryana, India bharara_92@yahoo.co.in
This form is for	Creation of charge
Type of charge	Movable property (not being pledge) Book debts Others - Foreign Documentary Demand/ Usance Bill.
Particular of charge holder	· Oriental Bank of Commerce Overseas Branch, N. K. Tower, G T Road, Panipat – 132103, Haryana, India bharara_92@yahoo.co.in
Nature of instrument creating charge	Agreement of hypothecation of assets (Loan Doc-1).
Date of instrument Creating the charge	14.12.2009
Amount secured by the charge	Rs.45.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: Rate of Int.12% P.A. with monthly rests on CC Limit. PLR-2.50% as per RBI Directives/Head Office guidelines issued from time to time or As per Fedai rules for Packing Credit Limit and FDBP/FUDBP Limit. Terms of repayment: Repayment on Demand. Margin: 25% for Cash Credit Limit and Packing Credit Limit. Nil --- for FDBP/FUDBP. Extent and Operation of the charge: Overall Credit Facilities of Rs.45.000 Millions (Cash Credit Limit of Rs.1.000 Million, FDBP/FUDBP Limit of Rs.20.000 Millions and Packing Credit Limit of Rs.24.000 Millions) against Hypothecation of Stocks, Receivables, Foreign Documentary Demand/ Usance Bill and Other Current Assets Present and Future of the Company. Others: Penal Interest @ 2% Per Annum over and above the rate on overdrawn portion shall be applicable.
Particulars of the property charged	Hypothecation of Stock of Raw Material, Stock in Process, Finished Goods, Stores and Spares, Receivables and other Current Assets (Present and Future) of the Company. Advance shall be covered under whole Turn Over Packing Credit Guarantee obtained by the Bank from ECGC and premium be borne by the Company. Foreign Documentary Demand/ Usance Bill having maximum usance of 180 Days accompanied by the Airway Bills/Bill of Lading and drawn under irrevocable Letter of Credit/ Confirmed orders only.

Corporate identity number of the company	U17110HR2008PLC038568
Name of the company	Jindal Spinning Mills Limited
Address of the registered office or of the principal place of business in India of the company	G-3, Industrial Area, Panipat – 132103, Haryana, India bharara_92@yahoo.co.in
This form is for	Modification of charge
Type of charge	Book Debts Movable Property Others
Particular of charge holder	ORIENTAL BANK OF COMMERCE
Nature Of Instrument Creating Charge	Supplemental Agreement To Secure Credit / Loan Facilities (Loan Doc-13).
Date of instrument Creating the charge	05/03/2011
Amount secured by the charge	Rs.55.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Rate Of Int. Base Rate+5.50%=15%P.A. For Cc Limit, Base Rate+1.00%=10.50%P.A. For Pcl/ Fdbp And Base Rate+1.25%=10.75%P.A.For Fudbp Other Rates As May Be Specified By The Bank From Time To Time. Terms of Repayment Repayment On Demand. Margin 25% For Cash Credit Limit And Packing Credit Limit. Nil---Fdbp/Fudbp Limit. Extent and Operation of the charge 100%. Others Penal Interest @ 2% Per Annum.
Short particulars of the property charged	Hypothecation Of Stock Of Raw Material, Stock In Process, Finished Goods, Stores and Spares and Receivables Etc. Hypothecation Of Foreign Documentary Demand/Usance Bills Having Maximum Usance Of 90 Days Accompanied By Airways Bills/Bills Of Lading And Drawn Under Irrevocable Letter Of Credit/Confirm Order Only.

Corporate identity number of the company	U17110HR2008PLC038568
Name of the company	Jindal Spinning Mills Limited
Address of the registered office or of the principal place of business in India of the company	G-3, Industrial Area, Panipat – 132103, Haryana, India
This form is for	Modification of charge
Type of charge	Book Debts Movable Property Others - Foreign Documentary Demand/ Usance Bill.
Particular of charge holder	ORIENTAL BANK OF COMMERCE Overseas Branch, N. K. Tower, G T Road, Panipat – 132103, Haryana, India bm0900@obc.co.in
Nature of instrument creating charge	Supplemental Agreement To Secure Credit / Loan Facilities
Date of instrument Creating the charge	11.02.2012
Amount secured by the charge	Rs. 130.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Baserate+5.50%=16.25%P.A.Forcclimit,Baserate+1.00%=11.75%P.A.For Pcl,Baserate+1%/1.25%=11.75%/12%P.A.For/Fdbp/Fudbp Limit Oratsuch Other Rates As May Bespecified Bythe Bank/Rbi From Timetotime. Terms of Repayment Repayment On Demand. Margin 25% For Cash Credit Limit And Packing Credit Limit. Nil---Fdbp/Fudbp Limit. Nil---Fresh Contract Limit. Extent and Operation of the charge 100%. Others Penal Interest @ 2% Per Annum.
Short particulars of the property charged	Hypothecation Of Stock Of Raw Material, Stock In Process, Finished Goods, Stores & Spares & Receivables Etc. Hypothecation Of Foreign Documentary Demand/Usance Bills Having Maximum Usance Of 90 Days Accompanied By Airways Bills/Bills Of Lading And Drawn Under Irrevocable Letter Of Credit/Confirm Order Only. Extension Of Charge Over The Entire Current & Fixed Assets.
Date of instrument modifying the charge	05.03.2011
Particulars of the present modification	The Overall Credit Facilities Has Been Enhanced From Rs.55.000 millions To Rs.130.000 millions (By Addition Of Rs.75.000 millions), Cash Credit Limit Of Rs. 1.000 millions, Packing Credit Limit Enhanced From Rs.24.000 millions To Rs.49.000 millions And Fdbp/Fudbp Limit Rs.30.000 millions, Fresh Forward Contract Limit Rs.50.000 millions. Other Terms And Conditons Remain Same.

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.54.29
UK Pound	1	Rs.86.60
Euro	1	Rs.68.87

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	NLM

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	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	YES
--AFFILIATION	YES/NO	YES
--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	-

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.