MIRA INFORM REPORT

Report Date :

24.01.2013

IDENTIFICATION DETAILS

Name :	SILK INDIA INTERNATIONAL LIMITED
Formerly Known As :	SILK INDIA INTERNATIONAL PRIVATE LIMITED OMSHREE SILK INDIA INTERNATIONAL PRIVATE LIMITED
Registered Office :	Room No. 6, Ground Floor 103/105, Sreenath Bhawan,  Old Hanuman Lane, Mumbai – 400002, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	16.10.2002
Com. Reg. No.:	11-137565
Capital Investment / Paid-up Capital :	Rs. 53. 974 Millions
CIN No.: [Company Identification No.]	U17100MH2002PLC137565
PAN No.: [Permanent Account No.]	AAACO5534G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Fabrics, Silk Dress Materials, Stoles, Scarves etc.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 300000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. The latest financials of the company is not made available. Mr. Pankaj, General Manager – Finance has provided all details however, financials are not verified. As per previous year’s record, the performance capability of the company appears to be good. Trade relations are reported as fair. Business is active. Payment terms are usually 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

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. Pankaj
Designation :	General Finance Manager
Contact No.:	91-22-61540000
Date :	17.01.2013

LOCATIONS

Registered Office :	Room No. 6, Ground Floor 103/105, Sreenath Bhawan,  Old Hanuman Lane, Mumbai – 400002, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	silkind@vsnl.com
Website :	www.silk-india.com
Factory :	103/105, Sreenath Bhawan, Room No. 4/5/6/7, Ground Floor, Old Hanuman Lane, Mumbai – 400002, Maharashtra, India
Tel. No.:	91-22-61540000/ 61540060
Fax No.:	91-22-22030000
E-Mail :	pankaj@silk-india.com
Website:	www.silk-india.com

DIRECTORS

Name :

Ravi Deviprasad Jhunjhunwala

Designation :

Managing Director

Address :

A/7,Paradise Apartment, S. V. Road, Andheri (West), Mumbai – 400058, Maharashtra, India

Date of Birth/Age :

08.03.1969

Qualification :

B. Com.

Date of Appointment :

01.04.2011

PAN No.:

AADPJ2695R

DIN No.:

00321137

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	U17100MH2002PLC137565	SILK INDIA INTERNATIONAL LIMITED	Managing director	01/04/2011	16/10/2002	-	Active	NO
2	U45200MH2010PTC202538	SILK INDIA REALTY PRIVATE LIMITED	Director	29/04/2010	29/04/2010	05/05/2010	Active	NO
3	U74140MH2007PTC175606	SAINT TREASURIES PRIVATE LIMITED	Director	16/10/2012	16/10/2012	-	Active	NO

Name :

Mr. Ramesh Banwarilal Makharia

Designation :

Whole-Time Director

Address :

67/9, Saket Building, J. B. Nagar, Andheri (East), Mumbai – 400059, Maharashtra, India

Date of Birth/Age :

01.11.1965

Qualification :

B. Com.

Date of Appointment :

01.04.2011

PAN No.:

AAMPM0080E

DIN No.:

00336342

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	U17100MH2002PLC137565	SILK INDIA INTERNATIONAL LIMITED	Whole-time director	01/04/2011	16/10/2002	-	Active	NO
2	U45200MH2010PTC202538	SILK INDIA REALTY PRIVATE LIMITED	Director	29/04/2010	29/04/2010	05/05/2010	Active	NO
3	U74140MH2007PTC175606	SAINT TREASURIES PRIVATE LIMITED	Additional director	23/08/2012	23/08/2012	-	Active	NO
4	AAA-1572	SILK INDIA PRODUCTION LLP	Designated Partner	04/06/2010	04/06/2010	-	Active	NO
5	AAA-1572	SILK INDIA PRODUCTION LLP	Designated Partner	11/06/2010	11/06/2010	-	Active	NO

Name :

Mr. Manoj Keshavdeo Khandelwal

Designation :

Whole-Time Director

Address :

C-10, Kailash Nagar, 61, Shankar Galli, Kandivali (West), Mumbai – 400067, Maharashtra, India

Date of Birth/Age :

03.01.1967

Qualification :

B. Com.

Date of Appointment :

01.04.2011

PAN No.:

AAEPK6356K

DIN No.:

00336202

KEY EXECUTIVES

Name :	Mr. Pankaj
Designation :	General Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders (10 each)	No. of Shares
Ravi Deviprasad Jhunjhunwala S/o Deviprasad Jhunjhunwala	797750
Ajay Khetan S/o Omprakash Khetan	125000
Omprakash Khetan	125000
Ramesh Banwarila lMakharia S/o Banwarilal Makharia	1474500
Manoj Keshavdeo Khandelwal S/o Keshavdeo Khandelwal	525000
Kiran M Khandelwal S/o Manoj Khandelwal	237500
Ramotar Khandelwal	531250
Silk India International, India	1750
Sudha Jhunjhunwala W/o Ravi Jhunjhunwala	63000
Total	3880750

Names of Shareholders (2 each)	No. of Shares
Ravi Deviprasad Jhunjhunwala S/o Deviprasad Jhunjhunwala	284100
Ravi Jhunjhunwala (HUF)	87500
Manisha Khetan S/o Mr. Ajay khetan	262500
Ajay Khetan S/o Omprakash Khetan	50000
Omprakash Khetan	50000
Ramesh Banwarilal Makharia S/o Banwarilal Makharia	300000
Manoj Keshavdeo Khandelwal S/o Keshavdeo Khandelwal	175000
Kiran M Khandelwal S/o Manoj Khandelwal	95000
Ramotar Khandelwal	212500
Total	1516600

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Directors or relatives of Directors	99.97
Other top fifty shareholders	0.03
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Fabrics, Silk Dress Materials, Stoles, Scarves etc.

GENERAL INFORMATION

Suppliers :

Silk India Creators

Customers :

Vedi Fashion

No. of Employees :

100 (Approximately)

Bankers :

IDBI Bank Limited, Nariman Point, Mumbai, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Loans taken for vehicles secured	0.107	0.223
Total	0.107	0.223

Banking Relations :	--
Auditors :
Name :	GMJ and Company Chartered Accountant
Address :	3rd and 4th Floor, Vaastu Darshan "B", Above Central Bank of India, Adjacent to BMC Office, Azad Road, Andheri (East), Mumbai – 400069, Maharashtra, India
PAN.:	AAAFG2163L
Associates/Subsidiaries :	Silk India Creators Silk India International Trend India

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised 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
5397350	Equity Shares	Rs.10/- each	Rs. 53.974 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		53.974	53.974	13.601
2] Share Application Money		3.000	0.000	0.000
3] Reserves & Surplus		40.911	21.593	37.455
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		97.885	75.567	51.056
LOAN FUNDS
1] Secured Loans		0.107	0.223	0.325
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.107	0.223	0.325
DEFERRED TAX LIABILITIES		0.346	0.305	0.274
TOTAL		98.338	76.095	51.655
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		19.397	11.375	11.986
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		6.406	7.247	3.979
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	13.261	12.981	9.362
	Sundry Debtors	147.037	136.341	76.548
	Cash & Bank Balances	5.229	3.742	6.111
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	35.051	22.917	12.336
Total Current Assets		200.578	175.981	104.357
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	98.125	101.179	0.000
	Other Current Liabilities	1.230	1.810	58.944
	Provisions	30.431	15.620	9.849
Total Current Liabilities		129.786	118.609	68.793
Net Current Assets		70.792	57.372	35.564
MISCELLANEOUS EXPENSES		1.743	0.101	0.126
TOTAL		98.338	76.095	51.655

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	399.109	321.030
		Other Income	0.688	1.787
		TOTAL (A)	399.797	322.817	192.911
Less	EXPENSES
		Consumption materials changes inventories	248.160	192.835
		Manufacturing service costs	73.678	70.766
		Employee related expenses	7.410	5.308
		Administrative selling other expenses	30.742	21.202
		TOTAL (B)	359.990	290.111	176.527
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		39.807	32.706	(Including finance expenses)
Less	FINANCIAL EXPENSES (D)		0.022	0.035
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		39.785	32.671	16.384
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.934	0.853	0.799
	PROFIT BEFORE TAX (E-F) (G)		38.851	31.818	15.585
Less	TAX (H)		13.261	10.961	5.571
	PROFIT AFTER TAX (G-H) (I)		25.590	20.857	10.014
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		21.593	23.824	15.401
Less	APPROPRIATIONS
		Dividend Paid	5.397	1.542	0.000
		Proposed Dividend	0.000	0.000	1.360
		Tax on Dividend	0.875	0.265	0.231
		Utilised for issue of fully paid Bonus Shares	0.000	21.281	0.000
	BALANCE CARRIED TO THE B/S		40.911	21.593	23.824
	EARNINGS IN FOREIGN CURRENCY
		FOB value of manufactured goods exported	2.228	1.965	1.627
	TOTAL EARNINGS		2.228	1.965	1.627
	Earnings Per Share (Rs.)		4.74	3.98	2.12

Particulars	31.03.2012
Sales Turnover (Approximately)	345.100
	(Due to market condition)

Expected Sales (2012-13) : Rs. 350.000 Millions

The above information has been parted by Mr. Pankaj

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.40	6.46	5.19
Net Profit Margin (PBT/Sales)	(%)	9.73	9.91	NA
Return on Total Assets (PBT/Total Assets}	(%)	17.66	16.98	13.39
Return on Investment (ROI) (PBT/Networth)		0.39	0.42	0.31
Debt Equity Ratio (Total Liability/Networth)		1.33	1.57	1.35
Current Ratio (Current Asset/Current Liability)		1.55	1.48	1.52

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	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	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	No
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

TRADE references

• Silk India Creators
• Vedi Fashion

OPERATIONS

During the year, the company has shown an increase in profit. The profit after tax has increased to Rs. 25.590 Millions as compared to Profit after tax of Rs. 20.857 Millions in the previous year. The Directors are hopeful of much better results during current year.

FIXED ASSETS

• Office Building
• Plant and Machinery
• Office Equipments
• Factory Equipments
• Computer Equipments
• Furniture and Fixtures
• Vehicles
• Leasehold Properties

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. 53.77
UK Pound	1	Rs. 85.14
Euro	1	Rs. 71.57

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		44

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.