MIRA INFORM REPORT

Report Date :

15.02.2013

IDENTIFICATION DETAILS

Name :	ART-YARN EXPORTS (INDIA) PRIVATE LIMITED
Registered Office :	9^th Floor, ‘C’ Wing, Godrej Coliseum, Behind Everard Nagar, Sion Trombay Road, Sion (East), Mumbai-400022, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	23.06.2004
Com. Reg. No.:	11-147119
Capital Investment / Paid-up Capital :	Rs. 3.000 Millions
CIN No.: [Company Identification No.]	U51494MH2004PTC147119
TAN No.: [Tax Deduction & Collection Account No.]	MUMA24117C
PAN No.: [Permanent Account No.]	AAECA7916L
Legal Form :	Private Limited Liability Company
Line of Business :	Exporter of Cotton Yarn and Synthetic Spun Yarn
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 250000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. 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 normal 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

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^th Floor, ‘C’ Wing, Godrej Coliseum, Behind Everard Nagar, Sion Trombay Road, Sion (East), Mumbai-400022, Maharashtra, India
Tel. No.:	91-22-40012600 / 40012667
Fax No.:	91-22-40012679
E-Mail :	artyarn@powericaltd.com

DIRECTORS

AS ON 14.08.2012

Name :	Mr. Pradeep Omprakash Gupta
Designation :	Managing Director
Address :	Flat-64, Building No.3A, Kalpataru Estate, Majas Vilg, J V Link road, Andheri (East), Mumbai-400093, Maharashtra, India
Date of Birth/Age :	04.10.1969
Date of Appointment :	23.06.2004
DIN No.:	00013424

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	U51494MH2004PTC147119	ART-YARN EXPORTS (INDIA) PRIVATE LIMITED	Managing director	08/08/2008	23/06/2004	Active	NO
2	U18109MH2008PTC182417	TEXRICA INDIA ORGANICS PRIVATE LIMITED	Director	19/05/2008	19/05/2008	Active	NO
3	U40108TN2007PTC064547	AWT ENERGY PRIVATE LIMITED	Managing director	01/06/2011	01/06/2011	Active	NO

Name :	Ms. Richa Pradeep Gupta
Designation :	Director
Address :	Flat-64, Building No.3A, Kalpataru Estate, Majas Vilg, J V Link road, Andheri (East), Mumbai-400093, Maharashtra, India
Date of Birth/Age :	06.09.1972
Date of Appointment :	01.01.2008
DIN No.:	00794986

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	U51494MH2004PTC147119	ART-YARN EXPORTS (INDIA) PRIVATE LIMITED	Director	01/04/2009	01/01/2008	Active	NO
2	U18109MH2008PTC182417	TEXRICA INDIA ORGANICS PRIVATE LIMITED	Director	19/05/2008	19/05/2008	Active	NO

Name :	Mr. Sandeep Omprakash Gupta
Designation :	Whole Time Director
Address :	2 B 207, Vrindavan Apartment, Poonam Nagar, Andheri (East), Mumbai-400093, Maharashtra, India
Date of Birth/Age :	19.11.1977
Date of Appointment :	24.03.2011
DIN No.:	03481968

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 14.08.2012

Names of Shareholders	No. of Shares
Pradeep Omprakash Gupta	120000
Renu Mehra	60000
Richa Gupta	30000
Anupama Oberoi	90000
TOTAL	300000

AS ON 14.08.2012

Equity Shares Break Up	Percentage of Holding
Directors or relatives of Directors	50.00
Other top fifty shareholders	50.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Exporter of Cotton Yarn and Synthetic Spun Yarn

Products :

ITC CODE	PRODUCTS
5205	Cotton Yarn
5509	Synthetic Spun Yarn

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	· Export Import Bank of India, Floor 21, Centre One Building, World Trade Centre Parade, Mumbai-400005, Maharashtra, India

Banking Relations :	--
Auditors :
Name :	Kapoor And Parekh Associates Chartered Accountant
Address :	157, Princes Street, Mumbai-400002, Maharashtra, India
PAN No.:	AAAFK1612L
Subsidiaries :	Texrica India Organics Private Limited CIN No.:- U18109MH2008PTC182417

CAPITAL STRUCTURE

AS ON 14.08.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.10/- each	Rs. 3.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.10/- each	Rs. 3.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		3.000	3.000	3.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		60.690	38.597	29.097
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		63.690	41.597	32.097
LOAN FUNDS
1] Secured Loans		48.843	75.878	50.386
2] Unsecured Loans				26.094
TOTAL BORROWING		48.843	75.878	76.480
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		112.533	117.475	108.577
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.305	2.636	1.651
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.099	0.099	0.099
DEFERREX TAX ASSETS		0.072	0.260	0.173
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	22.755	59.176	21.788
	Sundry Debtors	41.088	40.138	45.200
	Cash & Bank Balances	17.828	49.244	47.617
	Other Current Assets	50.464	0.000	0.000
	Loans & Advances	17.843	6.009	29.368
Total Current Assets		149.978	154.567	143.973
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.594	4.345	5.744
	Other Current Liabilities	33.032	34.048	29.188
	Provisions	5.295	1.694	2.387
Total Current Liabilities		39.921	40.087	37.319
Net Current Assets		110.057	114.480	106.654
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		112.533	117.475	108.577

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	NA	764.269	NA
		Other Income
		TOTAL	NA	764.269	NA
Less	EXPENSES
		Office Expenses	NA	746.380	NA
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	746.380	NA
	PROFIT / (LOSS) BEFORE TAX		37.481	17.889	12.333
Less	TAX		12.589	6.287	4.281
	PROFIT / (LOSS) AFTER TAX		24.892	11.602	8.052
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		28.597	21.597	17.098
Less	APPROPRIATIONS
		Transfer to General Reserve	2.500	2.500	2.500
		Proposed Dividend	1.200	0.900	0.000
		Interim Dividend	1.200	0.900	0.900
		Tax on Dividend	0.399	0.302	0.153
	BALANCE CARRIED TO THE B/S		48.190	28.597	21.597
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	701.749	573.708
		Freight and Insurance	NA	21.244	28.111
		Commission Earnings	NA	0.067	0.000
	TOTAL EARNINGS		NA	723.060	601.819
	Earnings Per Share (Rs.)		82.97	38.67	26.84

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	1.52	NA
Return on Total Assets (PBT/Total Assets}	(%)	24.60	11.36	8.46
Return on Investment (ROI) (PBT/Networth)		0.59	0.43	0.38
Debt Equity Ratio (Total Debt /Networth)		0.77	1.82	2.38
Current Ratio (Current Asset/Current Liability)		3.76	3.86	3.86

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 one 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	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
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
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

NOTE

Registered office has been shifted from 601, Dakshna, Sector-11, CBD Belapur, Navi Mumbai-400614, Maharashtra, India to the present address w.e.f. 01.12.2011.

FINANCIAL RESULTS

During the year the Company made a Profit Before Tax of Rs. 37.481 Millions as against Rs. 17.889 Millions of the previous year indicating an increase of Rs. 19.593 Millions

PERFORMANCE REVIEW

A performance of the Company’s main business segments viz. export of yarn and commission agent services are given below:

EXPORT OF YARN

During the year, Company had exported for Rs. 704.911 Millions as against Rs. 722.756 Millions for previous year indicating marginal decrease of Rs. 17.845 Millions.

COMMISSION AGENT SERVICES

Company had earned commission during the year to the extent of Rs. 0.175 Million as against Rs. 0.197 Million during the previous year. This is because Company has given more focus on export directly instead of commission business.

FORM 8

Corporate identity number of the company	U51494MH2004PTC147119
Name of the company	ART-YARN EXPORTS (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	9^th Floor, ‘C’ Wing, Godrej Coliseum, Behind Everard Nagar, Sion Trombay Road, Sion (East), Mumbai-400022, Maharashtra, India
This form is for	Modification of charge
Charge identification number of the charge to be modified	10082430
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	Export Import Bank of India, Floor 21, Centre One Building, World Trade Centre Parade, Mumbai-400005, Maharashtra, India
Nature of instrument creating charge	Letter of Confirmation dated 26/07/2012 executed by Art Yarn Exports (India) Private Limited ("the Borrower") in favour of Export-Import Bank of India ("EXIM BANK") agreeing and confirming that the security created shall continue to secure the Pre/Post Shipment Credit as well as Non-Fund Based Limit of INR 50.000 Millions / Equivalent USD for the renewed period of the Loan. A copy of the Letter of Confirmation is attached herewith.
Date of instrument Creating the charge	26.07.2012
Amount secured by the charge	Rs. 50.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest USD: LIBOR (6 month) plus 450 bps p.a., payable quarterly. INR: 11.75% p.a. payable monthly on 10th day of each month in each year. Additional interest: 2% p.a., sub to rest Terms of repayment Fund Based Limit: Pre-shipment credit : Out of export proceeds or disbursement under Post-shipment Credit or within 180 days from the date of such disbursement, whichever is earlier. Post shipment credit : Out of export proceeds or 180 days from the date of each disbursement, whichever is earlier. Non-Fund Based Limit: Letters of Credit- 180 days Bank Guarantees- Up to one year. Margin Pre-Shipment Credit: 15% of Individual Export Order. Post-Shipment Credit: 10% of Individual Export bill. Extent and operation of the charge The Pari-passu First Charge by way of Hypothecation in favor of EXIM Bank over Borrower's Current Assets Including Receivables, Pertaining to Export of Goods Both Present and Future, shall continue as security for the due repayment of the Facility of INR 50.000 Millions (Renewed for a further period of 1 year) and payment of interest and all other monies payable by the Borrower to EXIM Bank.
Short particulars of the property charged (Including location of the property)	The whole of the Borrower's Current Assets including Receivables Pertaining to Exports of textiles fibres, yarn and fabrics, both Present and Future.
Date of instrument modifying the charge	11.07.2011
Particulars of the present modification	Security created under DOH date 17/12/07 in favour of EXIM Bank for USD 1 MN and modified by modifying DOH date 04/06/08 for Rs. 40.000 Millions/ equiv. USD and further modified by Supp DOH date 11/7/11 for enhanced limit of Rs. 50.000 Millions over Borrower's current assets shall continue to secure Facility of Rs.50.000 Millions renewed on the terms and conditions contained in the Letter of Confirmation date 26/07/12 attached hereto.

FIXED ASSETS

· Computers

· Office Equipments

· Furniture and Fixtures

· 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 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 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. 53.87
UK Pound	1	Rs. 83.58
Euro	1	Rs. 72.37

INFORMATION DETAILS

Report Prepared by :

DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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		50

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.