MIRA INFORM REPORT

Report Date :

06.07.2013

IDENTIFICATION DETAILS

Name :	DAMODAR SILK MILLS PRIVATE LIMITED
Registered Office :	101, Parimal Park, Rander Road, Tadwadi, Surat – 395009, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	27.12.2007
Com. Reg. No.:	04-052440
Capital Investment / Paid-up Capital :	Rs.1.100 Millions
CIN No.: [Company Identification No.]	U17120GJ2007PTC052440
TAN No.: [Tax Deduction & Collection Account No.]	SRTD03350E
PAN No.: [Permanent Account No.]	AACCD7558D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Yarn.
No. of Employees :	30 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 81000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The company has recorded a healthy growth in its turnover during 2012. However, the profit margin appears to be low. Trade relations are fair. Business is active. Payment terms are unknown. 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

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

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 :	Regional Manager
Contact No.:	91-9328950380
Date :	05.07.2013

LOCATIONS

Registered Office :	101, Parimal Park, Rander Road, Tadwadi, Surat – 395009, Gujarat, India
Tel. No.:	91-261-3019668
Mobile No.:	91-9328950380 [Mr. Pankaj]
Fax No.:	Not Available
E-Mail :	jsomani_ca2001@yahoo.com ritesh_tulshyan998@yahoo.com
Factory :	Located at Hathuran, Surat, Gujarat, India

DIRECTORS

AS ON 29.09.2012

Name :

Ms. Smita Jagdish Somani

Designation :

Director

Address :

45, Ayodhya Nagari, Near Mega Bite, New Rander Road, Surat – 395009, Gujarat, India

Date of Birth/Age :

23.11.1970

Date of Appointment :

31.03.2010

Din No.:

00953635

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	U24231GJ1996PLC031074	REYNOLDS PETRO CHEMS LIMITED	Director	06/11/1996	06/11/1996	24/09/2008	Active	NO
2	U65910GJ1995PLC024671	SHRESTH LEASING AND FINANCE LIMITED	Director	01/04/1999	01/04/1999	-	Active	NO
3	U26921GJ1984PLC036888	SHREE GURJARI INDUSTRIES LIMITED	Director	08/07/2002	08/07/2002	-	Active	NO
4	U85190GJ2004PTC045036	HARSH HOSPITAL AND RESEARCH CENTRE PRIVATE LIMITED	Director	18/11/2004	18/11/2004	-	Active	NO
5	U74140GJ2008PLC052754	EQUITREE CAPITAL ADVISORS LIMITED	Director	28/01/2008	28/01/2008	-	Active	NO
6	U17222GJ2006PTC049678	HI-CHOICE TEXTILE PRIVATE LIMITED	Director	01/03/2008	01/03/2008	-	Active	NO
7	U17222GJ2006PTC049676	CHUNARI FABRICS PRIVATE LIMITED	Director	16/02/2009	16/02/2009	-	Active	NO
8	U24110GJ1999PTC035927	PET CHEM PRIVATE LIMITED	Director	04/05/2009	04/05/2009	-	Dormant	NO
9	U17120GJ2009PTC058051	AASHIRWAD PRINTS PRIVATE LIMITED	Director	09/09/2009	09/09/2009	-	Active	NO
10	U17120GJ2009PTC058083	TRIVENI SILK MILLS PRIVATE LIMITED	Director	11/09/2009	11/09/2009	-	Active	NO
11	U17120GJ2007PTC052438	SURAT CREATION PRIVATE LIMITED	Director	31/03/2010	31/03/2010	-	Active	NO
12	U17120GJ2007PTC052440	DAMODAR SILK MILLS PRIVATE LIMITED	Director	31/03/2010	31/03/2010	-	Active	NO
13	U17119GJ1988PTC011407	MAHASHAKTI SYNTHETICS PRIVATE LIMITED	Director	20/05/2011	20/05/2011	-	Active	NO
14	U17120GJ2009PTC058213	PANCHMUKHI HANUMAN CREATION PRIVATE LIMITED	Director	01/09/2011	01/09/2011	10/09/2011	Active	NO
15	U74140GJ2012PLC069261	MAKE MY CAPITAL ADVISORY SERVICES LIMITED	Director	02/03/2012	02/03/2012	-	Active	NO

Name :

Ms. Annapurna Pradeep Poddar

Designation :

Director

Address :

802, Aalishan Flats, City Light Road, Surat – 395007, Gujarat, India

Date of Birth/Age :

25.01.1962

Date of Appointment :

27.12.2007

Din No.:

01234677

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	U17110GJ2005PTC047266	ANNPURNA FABRICS PRIVATE LIMITED	Director	14/12/2005	14/12/2005	-	Active	NO
2	U17120GJ2007PTC052434	GIRIRAJ FASHION PRIVATE LIMITED	Director	27/12/2007	27/12/2007	-	Active	NO
3	U17120GJ2007PTC052451	MAHAK FABRICS PRIVATE LIMITED	Director	27/12/2007	27/12/2007	03/05/2010	Active	NO
4	U17120GJ2007PTC052440	DAMODAR SILK MILLS PRIVATE LIMITED	Director	27/12/2007	27/12/2007	-	Active	NO
5	U17120GJ2008PTC052506	SWATI NAKSHATRA FASHION PRIVATE LIMITED	Director	01/01/2008	01/01/2008	31/03/2010	Active	NO
6	U51909GJ1995PTC026366	SHRI BHAKTI FABRICS PRIVATE LIMITED	Director	01/01/2009	01/01/2009	-	Active	NO
7	U17120GJ2009PTC056256	GURJARI FASHION PRIVATE LIMITED	Director	01/09/2009	01/09/2009	-	Active	NO
8	U17120GJ2009PTC058087	LATA SYNTEX PRIVATE LIMITED	Director	11/09/2009	11/09/2009	-	Active	NO
9	U17120GJ2009PTC058086	RADHARAMAN FABRICS PRIVATE LIMITED	Director	11/09/2009	11/09/2009	-	Active	NO
10	U17120GJ2009PTC058104	MANGALSUTRA TEXTILES PRIVATE LIMITED	Director	12/09/2009	12/09/2009	-	Active	NO
11	U55101GJ2011PTC064008	SKY-HEIGHTS HOTELS AND RESORTS PRIVATE LIMITED	Director	11/02/2011	11/02/2011	-	Active	NO
12	U17119GJ1988PTC011407	MAHASHAKTI SYNTHETICS PRIVATE LIMITED	Director	20/05/2011	20/05/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Pankaj
Designation :	Regional Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Equity Shares	No. of Preferences Shares
Smita Jagdish Somani	59000	--
Annapurna Pradeep Poddar	51000	--
Sujata Synthetics Limited, India	--	80000
Stosec Fintrade Private Limited, India	--	20000
TOTAL	110000	100000

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing of Yarn.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :	Wholesalers and Retailers
No. of Employees :	30 [Approximately]
Bankers :	UCO Bank, Station Road Branch, Surat, Gujarat, India
Facilities :	--

Banking Relations :	--
Auditors :
Name :	Suneet Kabra Chartered Accountant
Address :	66/67, Krishna Niwas, Old Post Off. Lane, Kalbadevi, Mumbai-400002, Maharashtra, India
PAN No:	AFOPK6055Q
Sister Concern :	Nandani Arman Fabrics Mahek Fabrics Surya Kiran Simran Silk Mills Swagat Fashion Private Limited Vatika Textile Giriraj Fashion Private Limited Shivshakti Fabrics Nutan Nikhar Textile Kalaniketan Raman Fabrics Divya Drashti

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
140000	Equity Shares	Rs.10/- each	Rs.1.400 Millions
100000	Preferences Shares	Re.1/- each	Rs.0.100 Million
	TOTAL		Rs.1.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
110000	Equity Shares	Rs.10/- each	Rs.1.100 Millions
100000	Preferences Shares	Re.1/- each	Rs.0.100 Million
	TOTAL		Rs.1.200 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1.200	1.100
(b) Reserves & Surplus	19.134	9.179
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	20.334	10.279
(3) Non-Current Liabilities
(a) long-term borrowings	0.150	8.150
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	0.150	8.150
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	192.474	42.424
(c) Other current liabilities	0.456	0.438
(d) Short-term provisions	0.025	0.065
Total Current Liabilities (4)	192.955	42.927
TOTAL	213.439	61.356
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	0.000	0.000
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	5.500	3.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.007	0.014
Total Non-Current Assets	5.507	3.014
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	0.000	0.000
(c) Trade receivables	192.590	42.490
(d) Cash and cash equivalents	0.476	15.780
(e) Short-term loans and advances	14.866	0.072
(f) Other current assets	0.000	0.000
Total Current Assets	207.932	58.342
TOTAL	213.439	61.356

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.100
2] Share Application Money		0.000
3] Reserves & Surplus		0.032
4] (Accumulated Losses)		0.000
NETWORTH		0.132
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		8.150
TOTAL BORROWING		8.150
DEFERRED TAX LIABILITIES		0.000
TOTAL		8.282
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.000
Capital work-in-progress		0.000
INVESTMENT		3.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	42.490
	Cash & Bank Balances	5.200
	Other Current Assets	0.000
	Loans & Advances	0.004
Total Current Assets		47.694
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	42.430
	Other Current Liabilities	0.000
	Provisions	0.003
Total Current Liabilities		42.433
Net Current Assets		5.261
MISCELLANEOUS EXPENSES		0.021
TOTAL		8.282

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income			0.000
		Other Income			NA
		TOTAL	193.767	0.709	NA
Less	EXPENSES
		TOTAL	193.687	0.497	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		0.080	0.212	0.010
Less/ Add	DEPRECIATION/ AMORTISATION		0.000	0.000	0.000
	PROFIT / (LOSS) BEFORE TAX		0.080	0.212	0.010
Less	TAX		0.025	0.065	0.003
	PROFIT / (LOSS) AFTER TAX		0.055	0.147	0.007
	Earnings / (Loss) Per Share (Rs.)		0.26	0.70	--

Particulars	31.03.2013
Sales Turnover [Approximately]	500.000

Expected Sales (2013-14) : More than Rs.600.000 Millions.

The above information has been parted by Mr. Pankaj.

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.03	20.73	NA
Return on Total Assets (PBT/Total Assets}	(%)	0.04	0.36	0.02
Return on Investment (ROI) (PBT/Networth)		0.00	0.02	0.08
Debt Equity Ratio (Total Debt/Networth)		0.01	0.79	61.74
Current Ratio (Current Asset/Current Liability)		1.07	1.35	1.12

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	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	No
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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

NOTE:

The registered office address of the company has been shifted from “45, Ayodhya Nagari, Near Mega Bite, New Rander Road, Surat – 395009, Gujarat, India” to the present address w.e.f.03.10.2009.

Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings
Other loans and advances	0.150	8.150
TOTAL	0.150	8.150

FUTURE OUTLOOK:

The director’s prospects that the future of the company is good.

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.60.34
UK Pound	1	Rs.90.79
Euro	1	Rs.77.80

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	2
--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	NO
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.