MIRA INFORM REPORT

Report Date :

14.09.2012

IDENTIFICATION DETAILS

Name :	GANDHI CAPITAL PRIVATE LIMITED
Registered Office :	5017, 5^th Floor, Jash Textile Market, Ring Road, Surat – 395001, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.12.1994
Com. Reg. No.:	04-023923
Capital Investment / Paid-up Capital :	Rs. 7.604 Millions
CIN No.: [Company Identification No.]	U65910GJ1994PTC023923
TAN No.: [Tax Deduction & Collection Account No.]	BRDG00324C/ SRTG02464A
PAN No.: [Permanent Account No.]	AABCG1437D/ AABCG2903J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Partially Oriented Yarn
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 550000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company has recommenced its operations during the year 2011. 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 caution.

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	Long Term rating BB-
Rating Explanation	Moderate risk of default
Date	July 2011

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 :	5017, 5^th Floor, Jash Textile Market, Ring Road, Surat – 395001, Gujarat, India
Tel. No.:	91-261-2320862
Fax No.:	Not Available
E-Mail :	namsindia@gmail.com sbmgandco@gmail.com gandhicapital@drdcs.net
Factory 1 :	Survey No. 255/1/16, Behind IPCA Laboratories, Village-Athal Sillvassa, U.T. of D and N.H., India

DIRECTORS

AS ON 21.09.2011

Name :

Mr. Alpesh Arvindlal Gandhi

Designation :

Director

Address :

Shop No. 4019-20, 4^th Floor, Jash Market, Ring Road, Choryasi, Surat – 395002, Gujarat, India

Date of Appointment :

07.06.2010

DIN No.:

00709236

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	U34110GJ1999PTC035911	SURYA VEHICLES PRIVATE LIMITED	Director	08-09-06	08-09-06	-	Active	NO
2	U27209GJ2002PTC040502	KUBER METALS PRIVATE LIMITED	Director	08-09-06	08-09-06	13-10-11	Active	NO
3	U65910GJ1994PTC023923	GANDHI CAPITAL PRIVATE LIMITED	Director	07-06-10	07-06-10	-	Active	NO
4	U17200MH2011PLC211835	RADHEYGOVIND INDUSTRIES LIMITED	Director	05-01-11	05-01-11	-	Active	NO

Name :

Mr. Deep Manoj Gandhi

Designation :

Director

Address :

Plot No. 12/ 13, Radhe Radhe Bunglow, Next to Sweet Home Apartment, City Light Road, Surat – 395007, Gujarat, India

Date of Appointment :

07.06.2010

DIN No.:

03096879

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	Company/ LLP Status	Defaulting status
1	U65910GJ1994PTC023923	GANDHI CAPITAL PRIVATE LIMITED	Director	07-06-10	07-06-10	Active	NO
2	U17200MH2011PLC211835	RADHEYGOVIND INDUSTRIES LIMITED	Director	05-01-11	05-01-11	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 21.09.2011

Names of Shareholders	No. of Shares
Arvindbhai Champaklal Gandhi	200200
Meenaben Arvindbhai Gandhi	150200
Poojaben Alpeshbhai Gandhi	205000
Pritiben Manojbhai Gandhi	205000
Sunny Wisdom Enterprise Inc, Darussalam	250000
Total	1010400

AS ON 19.01.2012

Names of Allottees	No. of Shares
Kuber Metals Private Limited, India	29850
Anushka Soft-Tel Private Limited, India	140000
Total	169850

AS ON 15.03.2012

Names of Allottees	No. of Shares
Anushka Soft-Tel Private Limited Business, India	144000
Total	144000

AS ON 21.09.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	24.74
Directors or relatives of directors	75.26
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Partially Oriented Yarn

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Partially Oriented Yarn	Kgs.	N.A.	N.A.	7023369

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Punjab National Bank, Main, Meghani Tower, Station Road, Surat – 395003, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working Capital Loan (Secured against mortgage of land and factory building and against hypothecation of all kind of inventories and book debt)	88.122	0.000
Total	88.122	0.000

Banking Relations :	--
Auditors :
Name :	Chetan B. Desai and Company Chartered Accountants
Address :	HO : D-618, International Trade Centre, Majura Gate, Ring Road, Surat – 395002, Gujarat, India
Income-tax PAN of auditor or auditor's firm :	AAAAA0000X

CAPITAL STRUCTURE

AS ON 21.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs. 10/- each	Rs. 15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1324250	Equity Shares	Rs. 10/- each	Rs. 13.242 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs. 10/- each	Rs. 15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
760400	Equity Shares	Rs. 10/- each	Rs. 7.604 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		7.604	7.604	7.604
2] Share Application Money		115.000	178.750	0.000
3] Reserves & Surplus		15.432	5.816	5.765
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		138.036	192.170	13.369
LOAN FUNDS
1] Secured Loans		88.122	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		88.122	0.000	0.000
DEFERRED TAX LIABILITIES		0.162	0.000	0.000
TOTAL		226.320	192.170	13.369
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		54.519	0.509	0.685
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		8.477	74.284	8.800
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	76.713	0.000	0.000
	Sundry Debtors	7.957	1.114	0.000
	Cash & Bank Balances	5.263	96.123	2.405
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	84.561	20.177	1.513
Total Current Assets		174.494	117.414	3.918
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2.103	0.000	0.000
	Other Current Liabilities	0.000	0.000	0.002
	Provisions	9.067	0.037	0.032
Total Current Liabilities		11.170	0.037	0.034
Net Current Assets		163.324	117.377	3.884
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		226.320	192.170	13.369

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	725.864	0.000	0.000
		Other Income	1.925	0.506	0.175
		TOTAL	727.789	0.506	0.175
Less	EXPENSES
		Materials Consumed	613.360	0.000	0.000
		Manufacturing Expenses	91.769	0.000	0.000
		Administrative Expenses	5.037	0.020	0.014
		Selling and Distribution Expenses	4.636	0.000	0.000
		Increase/ (Decrease) in stocks	(2.801)	0.000	0.000
		TOTAL	712.001	0.020	0.014
Less	PROFIT/ LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		15.788	0.486	0.161
Less	FINANCIAL EXPENSES		0.634	0.000	0.000
	PROFIT/ LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION		15.154	0.486	0.161
Less/ Add	DEPRECIATION/ AMORTISATION		2.219	0.176	0.251
	PROFIT/ LOSS BEFORE TAX		12.935	0.310	(0.090)
Less	TAX		3.349	0.000	0.000
	PROFIT/ LOSS AFTER TAX		9.586	0.310	(0.090)
Less	PREVIOUS YEAR ADJUSTMENT		0.029	0.259	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(1.184)	(1.235)	(1.145)
Less	APPROPRIATIONS		0.059	0.000	0.000
	BALANCE CARRIED TO THE B/S		8.432	(1.184)	(1.235)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	Nil	Nil	Nil
	IMPORT VALUE		2.720	Nil	Nil
	Earnings Per Share (Rs.)		12.61	0.41	(0.12)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.32	61.26	(51.43)
Net Profit Margin (PBT/Sales)	(%)	1.78	N.A.	N.A.
Return on Total Assets (PBT/Total Assets}	(%)	5.65	0.26	1.96
Return on Investment (ROI) (PBT/Networth)		0.09	0.00	0.01
Debt Equity Ratio (Total Liability/Networth)		0.72	0.00	0.00
Current Ratio (Current Asset/Current Liability)		15.62	3173.35	115.24

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	No
18]	Major customers	No
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	U65910GJ1994PTC023923
Name of the company	GANDHI CAPITAL PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	5017, 5th Floor, Jash Textile Market, Ring Road, Surat - 395001, Gujarat, India
This form is for	Modification of charge
Charge identification number of the modified	10280095
Type of charge	Immovable Property
Particular of charge holder	Punjab National Bank, Main, Meghani tower, Station Road, Surat – 395003, Gujarat, India Email ID: bo0439@pnb.co.in
Nature of description of the instrument creating or modifying the charge	Memorandum of deposit of title deeds dated 06.04.2012
Date of instrument Creating the charge	06.04.2012
Amount secured by the charge	Rs. 345.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest N A. Terms of Repayment N A. Margin N A. Extent and Operation of the charge Memorandum of deposit of title deeds dated 06.04.2012.
Short particulars of the property charged	All Piece and Parcel of Land Admeasuring 800.00 sq.mtrs. Revenue Survey No.255/10/1/3/1. Village: Athal Dadra Nagar Haveli (Union Territory). All Piece and Parcel of Land Admeasuring 2220.00 sq.mtrs. Revenue Survey No.255/1P/17/2,(R S No255/1P,Plot No.17/2). Village: Athal Dadra Nagar Haveli (Union Territory) All Piece and Parcel of Land Admeasuring 0 Hector-40 Are of Revenue Survey No.255/1,Plot No.12/2. Village: Athal Dadra Nagar Haveli (Union Territory). All Piece and Parcel of Land Admeasuring 0 Hector-50 Are of Revenue Survey No.255/1/28,.Village: Athal Dadra Nagar Haveli (Union Territory). All Piece and Parcel of Land Admeasuring 0 Hector-20 Are of Revenue Survey No.255/1Plot No.13/1P,. Village: Athal Dadra Nagar Haveli (Union Territory). All Piece and Parcel of Land Admeasuring 0 Hector-75 Are of Revenue Survey No.255/1,Plot No.22,. Village: Athal Dadra Nagar Haveli (Union Territory). All Piece and Parcel of Land Admeasuring 0 Hector-44.30 Are of Revenue Survey No.255/1P, Plot No.17/1P, Village: Athal Dadra Nagar Haveli (Union Territory).
Particulars of the present modification	The charge further secured by memorandum of deposit of title deeds.

FIXED ASSETS:

· Land at Silvassa

· Factory Building

· Furniture

· A.C. Plant

· Air Conditioner

· Computers

· D.G. Sets

· Electric Installation

· Fax Machine

· Fire Extinguisher

· Machinery

· Motor Car (Chevrolet)

· Motor Car (Ford)

· Motor Car (Merc.)

· Motor Car (Mitsu)

· Motor Car (Sentr.)

· Motor Car (Skoda)

· Motor Car (Maruti)

· Motor Car (Skoda)

· Truck

· Telephone

· Television

· Office Equipment

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. 55.44
UK Pound	1	Rs. 89.31
Euro	1	Rs. 71.62

INFORMATION DETAILS

Report Prepared by :

BVA

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	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	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

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.