MIRA INFORM REPORT

Report Date :

07.05.2013

IDENTIFICATION DETAILS

Name :	MEERA COTTON AND SYNTHETIC MILLS PRIVATE LIMITED
Registered Office :	A-401/402, Express Zone, Patel Vanika, Opposite Reliance Energy Dindoshi Centre, W E Highway, Malad (East), Mumbai – 400097, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	12.04.1994
Com. Reg. No.:	11-077662
Capital Investment / Paid-up Capital :	Rs. 44.994 Millions
CIN No.: [Company Identification No.]	U17120MH1994PTC077662
PAN No.: [Permanent Account No.]	AABCM8385J
Legal Form :	Private Limited Liability Company
Line of Business :	The subject is engaged in the production and sales of texturised yarn, woven and knitted fabrics and Garments
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 600000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Bank Guarantee: A4+
Rating Explanation	Minimal degree of safety. It carry very high credit risk
Date	30.01.2013

Rating Agency Name	CRISIL
Rating	Cash Credit: BB+
Rating Explanation	Moderate risk of default.
Date	30.01.2013

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 :	A-401/402, Express Zone, Patel Vanika, Opposite Reliance Energy Dindoshi Centre, W E Highway, Malad (East), Mumbai – 400097, Maharashtra, India
Tel. No.:	91-22-67424600
Fax No.:	Not Available
E-Mail :	mcsmltd@rediffmail.com

DIRECTORS

As on: 29.09.2012

Name :	Mr. Jayesh Sevantilal Shah
Designation :	Director
Address :	301, Dwarkesh, Subhash Cross Lane, Kandivali (West), Mumbai – 400064, Maharashtra, India
Date of Birth/Age :	20.07.1959
Date of Appointment :	12.04.1994
PAN No.:	AAEPS5649D
DIN No.:	00371635
Name :	Mr. Narendrabhai Rasiklal Shah
Designation :	Managing Director
Address :	7003, Turning Point Apartment, Near Majur Fire Station, Goddod Road, Surat – 395001, Gujarat, India
Date of Birth/Age :	29.03.1959
Date of Appointment :	05.02.1997
DIN No.:	02613029
Name :	Mr. Ritesh Suresh Shah
Designation :	Director
Address :	B-67, 6th Floor, Vardhman Kutir, Shankar Lane, Kandivali (West), Mumbai – 400067, Maharashtra, India
Date of Birth/Age :	08.09.1975
Date of Appointment :	24.04.2009
PAN No.:	ALTPS1668J
DIN No.:	02690691
Name :	Mr. Jay Jayesh Shah
Designation :	Director
Address :	301-A Dwarkesh, Subhash Cross Lane, Kandivali (West), Mumbai – 400067, Maharashtra, India
Date of Birth/Age :	24.03.1990
Date of Appointment :	10.08.2011
PAN No.:	BWXPS7228E
DIN No.:	03597490
Name :	Mr. Paurav Deepakkumar Shah
Designation :	Additional Director
Address :	C- 203 Chanakya Apartment, Mahavir Nagar, Dahnunkarwadi, New Link Road, Kandivali (West), Mumbai- 400067, Maharashtra, India
Date of Birth/Age :	16.11.1979
Date of Appointment :	05.04.2012
PAN No.:	AFPPS64905
DIN No.:	05221574

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Jayesh Seventilal Shah	1776258
Veena Shah	1255500
Meera J Shah	300750
Jayesh S Shah ( HUF)	42000
Jay J Shah	899850
Ramila Suresh Shah	180000
Paurav D Shah	45000
Total	4499358

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The subject is engaged in the production and sales of texturised yarn, woven and knitted fabrics and Garments

Products :

ITC Code	Product Description
59011010	Yarn
59019020	Woven Fabrics
59019020	knitted Fabrics

PRODUCTION STATUS As on 31.03.2011

Particulars	Unit	Actual Production
PFY & Knitted Fabrics	Kgs	7506861
Electricity	NA	1.14

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Union Bank of India, Bhiwandi Branch, Ganpati Mandir Building, Prabhu Ali, Mandai, Bhiwandi, District Thane - 421302, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term Loans
Union Bank of India	169.526	59.150
Property Loan From Reliance Capital Limited	16.109	16.362
Vehicle Loan	0.000	0.112
Working Capital Loans from Union Bank of India	159.585	108.102
Total	345.220	183.726
Term Loan from Union Bank of India is secured against hypothecation of some of the machinery of the company and first equitable mortgage of the factory land and building of the company and also against the personal guarantee of some of the directors of the company. The charge also extends to the inventory and trade receivables of the company. The approx. book value of the security is Rs. 497.800 Millions. This loan is repayable over a different period of maturity ranging from 6 to 10 years. Property Loan from Reliance Capital Limited is secured against mortgage of office premises at 401 and 402 Express Zone, Western Express Highway, Malad East, Mumbai 400097. The depreciated value of the security is Rs. 27.600 Millions. The loan is repayable over a period of 15 years. Hypothecation of Inventory ,Book Debts and plant and machinery Personal Guarantee of the Directors of the company. First Equitable mortgage of the land and building of the factory located at Silvassa and Bhiwandi

Banking Relations :	--
Auditors :
Name :	L. K. Munoyat and Company Chartered Accountant
Address :	305 Mahaveer Apartments Opposite Shivsena Office, Station Road, Bhayandar (West), Mumbai – 401101, Maharashtra, India
PAN.:	AAEPM5862E

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4499358	Equity Shares	Rs.10/- each	Rs. 44.994 Millions

Of the above, 2999572 equity shares, fully paid up have been issued as bonus shares by capitalization of the free balance in the Profit and Loss Account.

The Company has only one class of shares referred to as equity shares having a par value of Rs.5/-.Each holder of equity shares are entitled to one vote per share

Details of persons holding more than 5% of the Shares

Particular	Number	%
Jayesh Shah	1776258	39.48
Veena Shah	1255500	27.90
Jay Shah	899850	20.00
Meera Shah	300750	6.68

Reconciliation of number of shares and amount

Particular	Number	Amount in Millions
Number of shares at the beginning	1499786	14.998
Add: Bonus Shares issued during the year	2999572	29.996
Number of shares at the closing	4499358	44.994

The Board of Directors declared an interim dividend of Rs. 0.22 per equity share Pro Rata on increased share capital which is subject to the approval by the members in the ensuing Annual General Meeting.

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		44.994	14.998	14.998
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		113.356	125.487	113.496
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		158.350	140.485	128.494
LOAN FUNDS
1] Secured Loans		345.220	183.726	141.046
2] Unsecured Loans		31.463	7.822	2.457
TOTAL BORROWING		376.683	191.548	143.503
DEFERRED TAX LIABILITIES		26.276	18.105	13.086
TOTAL		561.309	350.138	285.083
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		333.602	184.117	151.392
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	121.425	64.244	88.826
	Sundry Debtors	172.700	151.493	70.461
	Cash & Bank Balances	10.646	10.938	6.757
	Other Current Assets	25.036	20.240	0.000
	Loans & Advances	7.331	3.036	26.328
Total Current Assets		337.138	249.951	192.372
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	92.290	65.283	57.066
	Other Current Liabilities	9.291	13.220	0.000
	Provisions	7.850	5.427	1.615
Total Current Liabilities		109.431	83.930	58.681
Net Current Assets		227.707	166.021	133.691
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		561.309	350.138	285.083

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income		1308.275	885.919
		Other Income		NA	0.694
		TOTAL		NA	886.613
Less	EXPENSES
		Materials consumed			731.610
		Expenses			120.531
		TOTAL		NA	852.141
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION			NA	34.472
Less	FINANCIAL EXPENSES			NA	9.899
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION			37.695	24.573
Less/ Add	DEPRECIATION/ AMORTISATION			9.614	9.353
Less	LOSS OF SALE OF ASSETS			3.800	0.000
			NA
	PROFIT BEFORE TAX			24.281	15.220
Less	TAX			6.046	4.349
	PROFIT AFTER TAX			18.235	10.871
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			113.497	97.989
Less	PROVISION FOR DEFERRED TAX			5.019	0.000
Less	PROVISION FOR DIVIDEND DISTRIBUTION TAX			0.125	0.000
	MAT CREDIT AVAILABLE			0.000	3.491
Less	PREVIOUS YEARS' INCOME TAX			0.349	(1.895)
Less	APPROPRIATIONS
		Transfer to General Reserve		0.000	0.749
		Dividend		0.750	0.000
	BALANCE CARRIED TO THE B/S			125.489	113.497
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Sales Exported	91.970	30.936	62.434
		FOB Value of Sales in Process at the Dock	4.072	0.000	0.000
	TOTAL EARNINGS		96.042	30.936	62.434
	IMPORTS		62.349	7.012	0.000
	Earnings Per Share (Rs.)		NA	NA	10.15

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	1.23
Net Profit Margin (PBT/Sales)	(%)	NA	1.86	1.72
Return on Total Assets (PBT/Total Assets}	(%)	NA	5.59	4.43
Return on Investment (ROI) (PBT/Networth)		NA	0.17	0.12
Debt Equity Ratio (Total Debt /Networth)		2.38	1.36	1.12
Current Ratio (Current Asset/Current Liability)		3.08	2.98	3.28

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 two years	Yes
12]	Profitability for last two 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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

NOTE:

The registered office of the company has been shifted from 301 Dwarkeshsubhash Lane, Kandivali (West), Mumbai - 400067, Maharashtra, India to present address w.e.f. 22.09.2011

OVERVIEW

The company was incorporated on 12-04-1994 and is an LSI engaged in the production and sales of texturised yarn, woven and knitted fabrics and Garments. The industrial units of the company are located at Silvassa in the Union Territories of Dadra and Nagar Haveli and also at Bhiwandi in Maharashtra. The products of the are used as raw material for production of dress materials for end-apperal use.

UNSECURED LOAN

(Rs in Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Loans from related parties	31.463	7.822
Total	31.463	7.822

The loans from the related parties is Unsecured. The terms of repayment are not decided.

FIXED ASSETS

· Land

· Buildings

· Factory Building

· Plant and Equipment

· Furniture and Fixtures

· Motor Vehicles

· Office Equipment

· Computer Equipments

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. 53.95
UK Pound	1	Rs. 84.03
Euro	1	Rs. 70.72

INFORMATION DETAILS

Report Prepared by :

UDS

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	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--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		34

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.