MIRA INFORM REPORT

Report Date :

02.12.2013

IDENTIFICATION DETAILS

Name :	SHALU DYEING AND PRINTING MILLS PRIVATE LIMITED
Registered Office :	Plot No.262, G.I.D.C. Pandesara, Surat – 394221, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	23.10.1978
Com. Reg. No.:	04-003221
Capital Investment / Paid-up Capital :	Rs. 10.420 Millions
CIN No.: [Company Identification No.]	U17119GJ1978PTC003221
TAN No.: [Tax Deduction & Collection Account No.]	SRTS00535D
PAN No.: [Permanent Account No.]	AADCS8213P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Sarees.
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 170000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profit margin of the company appears to be low. However, trade relations are fair. Business is active. Payments are slow but correct. 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.

INDIAN ECONOMIC OVERVIEW

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

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.

INFORMATION PARTED BY

Name :	Mr. Ashish Omprakash Jain
Designation :	Director
Contact No.:	91-9825800046
Date :	30.11.2013

LOCATIONS

Registered Office / Factory :	Plot No.262, G.I.D.C. Pandesara, Surat – 394221, Gujarat, India
Tel. No.:	91-261-2891092
Mobile No.:	91-9825800046 (Mr. Ashish Omprakash Jain)
Fax No.:	Not Divulged
E-Mail :	kamal@noyadyes.com k_dalal@rediffmail.com
Location :	Owned

DIRECTORS

As on 29.09.2012

Name :	Mr. Kamal Omprakash Jain
Designation :	Director
Address :	B/1, C/1, Somnath Mahadev Society, Parle Point, Surat – 395007, Gujarat, India
Date of Birth/Age :	26.03.1967
Date of Appointment :	16.08.1986
DIN No.:	01741734
Name :	Mr. Ashish Omprakash Jain
Designation :	Director
Address :	B/1, C/1, Somnath Mahadev Society, Parle Point, Surat – 395007, Gujarat, India
Date of Birth/Age :	01.09.1965
Date of Appointment :	16.08.1986
DIN No.:	02121509
Name :	Mr. Omprakash Chiranjilal Jain
Designation :	Director
Address :	B/1, C/1, Somnath Mahadev Society, Parle Point, Surat – 395007, Gujarat, India
Date of Birth/Age :	26.08.1943
Date of Appointment :	24.10.1978
DIN No.:	02122507

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Omprakash Chiranjilal Jain	4600
Omprakash Jain HUF	4000
Pushpadevi Omprakash Jain	4050
Ashish Omprakash Jain	9350
Kamal Omprakash Jain	15050
Sadha Ashish Jain	32200
Anita Kamal Jain	21900
Sunita Jain	500
Sureshchand J. Jain	200
Nirdosh Suresh Jain	200
Sukhvirshingh J. Jain	200
Naginadevi Harish Jain	500
Navinchandra Harish Jain	200
Surjitkumar Niranjan Singh	200
Nabda Laxmichand Jain	200
Laxmichand S. HUF	200
Ushadevi Shreepal Jain	200
Vimladevi Surendraprasad	150
Virendra Surendraprasad	150
Surabjitkumar S. Singh	150
Y.S. Jain	500
Sanjay Jain	500
Amrapali Metal Private Limited, India	2000
Gandheshwari Developers Private Limited, India	2000
Silverpoint Dealers Private Limited, India	2500
Sunshine Tie-Up Private Limited, India	2500
Total	104200

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	8.64
Directors or relatives of Directors	87.48
Other top fifty shareholders	3.88
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Sarees.
Terms :
Selling :	L/C / Credit
Purchasing :	L/C / Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

400 (Approximately)

Bankers :

· HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India

Tel. No.: 91-261-2890653

· Bank of Baroda, Pandesara Industrial Branch, Pandesara, Surat - 394221, Gujarat, India

· ICICI Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long Term Borrowings
HDFC Bank Limited (Term Loan)	6.475	9.366
ICICI Bank Limited Car Loan	2.745	0.000
Reliance Capital Limited (Tempo Loan)	0.000	0.077
Short Term Borrowings
HDFC Bank Limited (Cash Credit)	17.065	18.809
HDFC Bank Limited (Term Loan)	6.148	4.622
HDFC Bank Limited (Car Loan)	0.000	0.220
Reliance Capital Limited (Tempo Loan)	0.057	0.317
ICICI Bank Limited (Car Loan)	1.209	0.000
Total	33.699	33.411

Banking Relations :	---
Auditors :
Name :	Shah Kailash and Associates Chartered Accountants
Address :	505, 21st Century Business Center, New World Trade Center, Ring Road, Surat – 595002, Gujarat, India
Tel. No.:	91-261-2334411 / 2352647 / 6647071
E-Mail :	shah_kailash@yahoo.com
PAN No.:	AARFS9519F

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs.100/- each	Rs.15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
104200	Equity Shares	Rs.100/- each	Rs.10.420 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	10.420	10.420	9.520
(b) Reserves & Surplus	32.795	31.262	12.720
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	1.630
Total Shareholders’ Funds (1) + (2)	43.215	41.682	23.870
(3) Non-Current Liabilities
(a) long-term borrowings	14.529	17.047	23.102
(b) Deferred tax liabilities (Net)	0.457	0.422	0.407
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	14.986	17.469	23.509
(4) Current Liabilities
(a) Short term borrowings	24.479	23.968	20.468
(b) Trade payables	26.343	48.515	13.536
(c) Other current liabilities	19.997	21.857	13.471
(d) Short-term provisions	7.011	7.003	5.852
Total Current Liabilities (4)	77.830	101.343	53.327
TOTAL	136.031	106.494	100.706
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	35.153	33.537	31.938
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.105	0.105	0.105
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	8.904	8.693	8.167
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	44.162	42.335	40.210
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	9.995	31.713	17.525
(c) Trade receivables	60.660	76.237	30.079
(d) Cash and cash equivalents	1.392	1.226	0.911
(e) Short-term loans and advances	19.770	8.914	11.981
(f) Other current assets	0.052	0.069	0.000
Total Current Assets	91.869	118.159	60.496
TOTAL	136.031	106.494	100.706

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	298.076	285.524	204.119
		Other Income	0.934	1.223	0.978
		TOTAL (A)	299.010	286.747	205.097
Less	EXPENSES
		Cost of Materials Consumed	79.450	89.099	64.423
		Changes in Inventories of finish goods, Work0in-progres and stock-in-trade	(0.050)	0.092	0.036
		Employee Expenses	63.488	47.718	40.535
		Payment to Auditors	0.045	0.045	0.044
		Other Expenses	143.408	137.830	90.089
		Preliminary Expenses Written off	0.017	0.018	0.000
		Exception Items	0.535	0.025	0.051
		TOTAL (B)	286.893	274.827	195.178
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		12.117	11.920	9.919
Less	FINANCIAL EXPENSES (D)		4.774	4.695	2.888
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		7.343	7.225	7.031
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.046	5.027	5.008
	PROFIT BEFORE TAX (E-F) (G)		2.297	2.198	2.023
Less	TAX (H)		0.764	0.756	0.692
	PROFIT AFTER TAX (G-H) (I)		1.533	1.442	1.331
	Earnings Per Share (Rs.)		14.74	15.14	13.98

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.51	0.50	0.65
Net Profit Margin (PBT/Sales)	(%)	0.77	0.77	0.99
Return on Total Assets (PBT/Total Assets}	(%)	1.69	1.37	2.01
Return on Investment (ROI) (PBT/Networth)		0.05	0.05	0.08
Debt Equity Ratio (Total Debt /Networth)		0.90	0.98	1.83
Current Ratio (Current Asset/Current Liability)		1.18	1.17	1.13

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT: NOT AVAILABLE

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	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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
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	No

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2013	As on 31.03.2012
Long Term Borrowings
Loans and advances from related parties
From Directors	0.558	2.797
From Others	4.751	4.807
Total	5.309	7.604

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10224727	03/12/2012 *	294,900,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA	B64255698
2	10208302	21/05/2012 *	62,700,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA	B39978895

* Date of charge modification

FIXED ASSETS

· Land

· Factory Building

· Office Building

· Machinery

· Pipe and Fittings

· Tools and Equipment

· Vehicle

· Furniture

· Office Fitting

· Metering Equipment

· Office Equipment

· Motor Car

· Printing Frames

· Computer

· Electrical Installation

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 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.62.39
UK Pound	1	Rs.102.06
Euro	1	Rs.84.98

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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.