MIRA INFORM REPORT

Report Date :

01.09.2012

IDENTIFICATION DETAILS

Name :	DIXCY TEXTILES PRIVATE LIMITED
Registered Office :	9, 10, 11, Kizhakkal Thottamsakthi Nagar, Karumarampalyam Mannarai Post, Tirupur, District Coimbatore – 641 607, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.02.2004
Com. Reg. No.:	18-010996
Capital Investment / Paid-up Capital :	Rs. 123.000 millions
CIN No.: [Company Identification No.]	U17111TZ2004PTC010996
TAN No.: [Tax Deduction & Collection Account No.]	CMBD03275G
PAN No.: [Permanent Account No.]	AABCD1300J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Garments
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (41)

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

Maximum Credit Limit :	USD 1300000
Status :	Satisfactory
Payment Behaviour :	Slow but 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 slow but correct. 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BB+ (Long Term Fund Based Facilities)
Rating Explanation	Moderate Risk of Default
Date	27^th January 2012

Rating Agency Name	ICRA
Rating	A4+ (Short Term Fund Based Facilities)
Rating Explanation	Minimal Degree of Safety
Date	27^th January 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	9, 10, 11, Kizhakkal Thottamsakthi Nagar, Karumarampalyam mannarai Post, Tirupur, District Coimbatore – 641 607, Tamilnadu, India
Tel. No.:	91-421-2228500 – 06 / 4361111
Fax No.:	91- 421 – 2228510 - 11
E-Mail :	dixcy@dixcyonline.com
Website :	www.dixcy.co.in

DIRECTORS

As on 08.09.2010

Name :

Mr. Prem Prakash Sikka

Designation :

Managing Director

Address :

9,10,11, Kizhakkalthattam, Sakthi Nagar, Mannarai post, Tirupur – 641 607, Tamilnadu, India

Date of Birth/Age :

22.07.1959

Date of Appointment :

21.02.2004

DIN No.:

00002778

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17111TZ2004PTC010996	DIXCY TEXTILES PRIVATE LIMITED	Managing director	21/02/2004	21/02/2004	-	Active	NO
2	U45201TZ2007PTC013526	CITY CENTRE(TIRUPUR) CONSTRUCTIONS PRIVATE LIMITED	Director	14/03/2007	14/03/2007	-	Active	NO

Name :

Mrs. Parveen Kumari Sikka

Designation :

Director

Address :

9,10,11, Kizhakkalthattam, Sakthi Nagar, Mannarai post, Tirupur – 641 607, Tamilnadu, India

Date of Birth/Age :

19.10.1960

Date of Appointment :

21.02.2004

DIN No.:

00002783

Name :

Mr. Raghul Prem Prakash Sikka

Designation :

Director

Address :

9,10,11, Kizhakkalthattam, Sakthi Nagar, Mannarai post, Tirupur – 641 607, Tamilnadu, India

Date of Birth/Age :

01.11.1985

Date of Appointment :

31.03.2004

DIN No.:

00002787

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 14.09.2011

Names of Shareholders	No. of Shares
Mr. Prem Prakash Sikka	5135000
Mrs. Parveen Kumari Sikka	3585000
Mr. Raghul Prem Prakash Sikka	50000
TOTAL	8770000

As on 25.11.2010

Names of Allottees	No. of Shares
Mr. Ravi Rattan Sikka	780000
Mr. Kishanlal Chopra	120000
Mr. Prem Prakash Sikka	100000
TOTAL	1000000

As on 19.01.2011

Names of Allottees	No. of Shares
Mr. Ravi Rattan Sikka	680000
Mr. Kishanlal Chopra	320000
TOTAL	1000000

As on 28.03.2011

Names of Allottees	No. of Shares
Mr. Ravi Rattan Sikka	700000
Mr. Kishanlal Chopra	380000
Mr. Prem Prakash Sikka	150000
TOTAL	1230000

As on 02.05.2012

Names of Allottees	No. of Shares
Mr. Prem Prakash Sikka	300000
TOTAL	300000

As on 08.09.2010

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Garments

GENERAL INFORMATION

Suppliers :

· Anand Textiles

· Bajaj Art Advertising

· Balu Autos

· Blue Dart Express Limited

· Castle Tapes Company

· Chamunda Enterprises

· Campus Publicity

· Delhi Sales Corporation

· Deepa Packaging

· Devi Motors

· Ganesh Gunny Bags

· JBM Graphics

· Kunal Enterprises

· Kiwi Printers

· Mahaveer Sales

· Print Craft

· Shiva Tapes

· Soft Hooks

· Sunrise Fab Finishers

Customers :

· A. One ReadyMade and Hosiery

· Alaka

· Anand Agencies

· Atul Traders

· Bajaj Marketing

· Beekay Traders

· Bhalla Traders

· Bharat Tex

· Chopra Agencies

· Chawla General Store

· Cooper Garments

· Deepak Agency

· Delhi Creation

· Dipesh Traders

· Dolly Enterprises

· Everest Fashions

· Fashion Look

· Geeta Ram and Sons

· Ganesh Stores

· Geeta Textiles

· Giriraj Enterprises

· Harsh Garments

· H B Enterprises

· J k Traders

· Jain Traders Company

· Jeans Park

· Kirti Trading Company

· Lakhani Garments

· Leela Agencies

· Noble Enterprises

· Style House

· Talwar Trading Company

· Vipul Garments

No. of Employees :

Not Available

Bankers :

· State Bank of India, Specialised Commercial Branch, No. 44, Stanes Road, 4^th Branch, Tiruppur – 641 602, Tamilnadu, India

· ICICI Bank

· Indian Bank

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee Term Loans Banks	1098.523	366.911
Rupee Term Loan Others	0.500	0.000
Working Capital Loans	0.000	151.022
Total	1099.023	517.933
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Loans Directors	11.886	15.463
Other Debt	21.843	17.865
Total	33.729	33.328

Banking Relations :	--
Auditors :
Name :	Thandapani and Company Chartered Accountants
Address :	No.41,Old Market Street,Tirupur-641604
PAN No.:	AFPPK2717N

CAPITAL STRUCTURE

As on 14.09.2011

Authorized Capital:

No. of Shares	Type	Value	Amount
12500000	Equity Shares	Rs. 10/- each	Rs. 125.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
12300000	Equity Shares	Rs. 10/- each	Rs. 123.000 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		120.000	87.700	77.700
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		216.803	141.262	90.501
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		336.803	228.962	168.201
LOAN FUNDS
1] Secured Loans		1099.023	517.933	389.184
2] Unsecured Loans		33.729	33.328	25.002
TOTAL BORROWING		1132.752	551.261	414.186
DEFERRED TAX LIABILITIES		6.499	6.367	5.603
TOTAL		1476.054	786.590	587.990
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		312.709	98.643	51.076
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	22.826
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	777.542	460.462	231.650
	Sundry Debtors	729.300	544.385	442.821
	Cash & Bank Balances	34.469	29.849	2.075
	Other Current Assets	1.126	0.298	11.935
	Loans & Advances	60.759	35.384	12.850
Total Current Assets		1603.196	1070.378	701.331
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	372.072	338.156	187.504
	Other Current Liabilities	27.935	15.634
	Provisions	40.000	28.850	0.000
Total Current Liabilities		440.007	382.640	187.504
Net Current Assets		1163.189	687.738	513.827
MISCELLANEOUS EXPENSES		0.156	0.209	0.261
TOTAL		1476.054	786.590	587.990

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Income	2862.400	1924.300
		Other Income	13.800	13.200
		TOTAL (A)	2876.200	1937.500
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	2641.600	1805.900
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		234.600	131.600
Less	FINANCIAL EXPENSES (D)		99.700	40.600
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		134.900	91.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.900	10.600
	PROFIT BEFORE TAX (E-F) (G)		116.000	80.400
Less	TAX (I)		40.500	29.600
	PROFIT AFTER TAX (G-I) (J)		75.500	50.800
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		141.300	90.500
	BALANCE CARRIED TO THE B/S		216.800	141.300
	Earnings Per Share (Rs.)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.62	2.62	NA
Net Profit Margin (PBT/Sales)	(%)	4.05	4.17	NA
Return on Total Assets (PBT/Total Assets}	(%)	6.05	6.87	NA
Return on Investment (ROI) (PBT/Networth)		0.34	0.35	NA
Debt Equity Ratio (Total Liability/Networth)		4.66	4.07	3.57
Current Ratio (Current Asset/Current Liability)		3.64	2.79	3.74

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17111TZ2004PTC010996
Name of the company	DIXCY TEXTILES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	9, 10, 11, Kizhakkal Thottamsakthi Nagar, Karumarampalyam Mannarai Post, Tirupur, District Coimbatore – 641 607, Tamilnadu, India e-mail: dixcy@dixcyonline.com
This form is for	Modification of charge
Charge identification number of the modified	90004444
Type of charge	Immovable Property Book Debts Movable Property
Particular of charge holder	State Bank of India, Specialised Commercial Branch, No. 44, Stanes Road, 4th Branch, Tiruppur – 641 602, Tamilnadu, India e-mail: sbi.04201@sbi.co.in
Nature of description of the instrument creating or modifying the charge	1.Letter of Hypothecation (Form C.1-A: Supplemental Agreement of Loan Increase in the Overall Limit) 2.Letter of Hypothecation (Form C.2-A: Supplemental Agreement of Hypothecation of Goods and assets for increase in the Overall Limit) 3.Letter of Hypothecation (Form C.4-A: Supplemental Deed of Guarantee for increase in overall limit) 4.Letter of Hypothecation (Form C-5: Letter Regarding the grant of individual limits within the overall limit) Dated: 26.4.2012
Date of instrument Creating the charge	26.04.2012
Amount secured by the charge	Rs. 1247.700 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Margin Raw Material - 25% Domestic Receivable - 40% Receivable Cover Days - 75 days Term Loan - 33.71 %
Short particulars of the property charged	Primary security: CC/SLC: First Charge on the Entire Current Assets Consisting of Raw Materials, Semi-Finished Goods, Finished Goods, Consumables, Stores, Spares , Receivables And Other Current Assets Term Loans II and III : Assets Created out of the Term Loans and Lease-Hold Rights of Land Measjuring 7.25 Acres (As Detailed Below) In The Name of Shri.Prem Prakash Sikka/Documents of Title to Golds /Goods Lovered Under LC. (First Charge On Lease Hold Rights). Term Loan IV : Assets Created out of the Term Loan and Lease-Hold Rights of Land Measuring 1.1295 Acres in the Name of Shri.Prem Prakash Sikka and Smt. Parveen Kumari Sikka (1st Charge on Lease Hold Right) Corporate Loan: First Charge on Entire Current Assets of the Company as Stipulated For CC (Hypothecation) and Assignment Charge Over The Intangible Assets Viz. Copy Right, Trade Mark And Brand Development of The Company Term loan (proposed): Assets to be created out of the term loan. Lease hold rights over 29066 Sq.ft of land and co bldg at SF No.464/1-B, SF No.286, SF No.288/1 & 2 , 289 in Chennaippa Nagar / Sakthi Nagar / Mudalipalayam Tiruppur 464/1 11,410 & 286 2,720 & 288/1&2,289 3,000 & 286 4,300 & 288/1,2 , 289 2,999 & 288/1,2 , 289 4,637 TOTAL 29,066 . Wind Will land at Tenkasi Regn Dt. Uthumalai SRO, Veerakeralam Pudur Taluk, Karuvantha Village in the name of the Company as under , 127/9 J 0.30 & 127/9K 0.30 & 127/9L 0.47 & 127/11 0.77 & 127/13A 0.12 & 127/13B 0.12 TOTAL 2.08
Particulars of the present modification	Nature Of Original Limit Revised Limit Facility ( Rs. In (Rs. in millions ) Millions) CC (HYPN) 760.0000 760.000 SLC 50.000 50.000 TL I - IV 314.500 314.500 CL 100.000 100.000 TL V ( NEW) - 23.200 IMPORT LC (CG) - (35.000) Total 1224.500 1247.700

FIXED ASSETS:

· Building

· Office Building

· Plant and Machinery

· Computer Equipments

· Patents, Trademarks design

· Furniture and Fixtures

· Motor 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.55.72
UK Pound	1	Rs.87.95
Euro	1	Rs.69.66

INFORMATION DETAILS

Report Prepared by :

NID

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	6
FINANCIAL CONDITION		6
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	-
--MARGINS	-5~5
DEMERIT POINTS		YES
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO
MERIT POINTS		NO
--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		41

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.