MIRA INFORM REPORT

Report Date :

16.05.2013

IDENTIFICATION DETAILS

Name :	T.C. TERRYTEX LIMITED
Registered Office :	Village Sarsini, Ambala-Chandigarh Highway, Near Lalru, Tehsil Derabassi, Lalru, Mohali - 140501, Punjab
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	30.08.2005
Com. Reg. No.:	16-028877
Capital Investment / Paid-up Capital :	Rs. 670.040 Millions
CIN No.: [Company Identification No.]	U17220PB2005PLC028877
TIN No.:	03062024507
PAN No.: [Permanent Account No.]	AACCT3244L
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Terry Towels.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 2345000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a part of “Satia Group”. It is an established company having a moderate track record. There appear some accumulated losses recorded by the company. However, the company financial performance is improving and slowly wiping out its accumulated losses. Trade relations are reported to be fair. Business is active. Payments are slow. 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 – 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	Long term rating : D [CRISIL has suspended its rating due to lack of information]
Date	March 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 / Head Office / Factory :	Village Sarsini, Ambala-Chandigarh Highway, Near Lalru, Tehsil Derabassi, Lalru, Mohali - 140501, Punjab, India
Tel. No.:	91-1762-506606/ 506607/ 506608
Fax No.:	91-1762-506555
E-Mail :	nfo@tctl.in accounts@tctl.in psharmaandco@gmail.com
Website :	http://www.tctl.in
Branch Office 1 :	S.C.O. 90-92, Sector 8-C, Madhya Marg, Chandigarh-160018, India
Tel. No.:	91-172-4618377/ 2780023
Fax No.:	91-172-4648606
Branch Office 2 :	502, Naurang House, 21 KG Marg, Connaught Place, New Delhi - 110001, India
Tel. No.:	91-11-43542842
Fax No.:	91-11-43542843

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Anil Satia
Designation :	Director
Address :	Satia Niwas, Railway Road, Muktsar – 152026, Punjab, India
Date of Birth/Age :	12.08.1956
Date of Appointment :	06.06.2012
PAN No.:	AEKPS8814C
DIN No.:	00527205
Name :	Mr. Munish Tyagi
Designation :	Director
Address :	A-1/312, Safdarjung Enclave, New Delhi – 110029, India
Date of Birth/Age :	04.01.1952
Qualification :	M. Tech.
Date of Appointment :	09.07.2009
DIN No.:	00549929
Name :	Mr. Akhil Satia
Designation :	Director
Address :	Railway Road, Muktsar, Punjab, India
Date of Birth/Age :	10.02.1983
Qualification :	M.B.A. from MDI Gurgaon and have professional experience as Director.
Date of Appointment :	30.08.2005
PAN No.:	ASGPS2205K
DIN No.:	01138038
Name :	Mr. Rajendra Prasad Sinha
Designation :	Director
Address :	D-1, Kinnelan Tower, 100A Napeansea Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	16.05.1950
Qualification :	MSC Mathematics
Date of Appointment :	12.10.2011
DIN No.:	02129566
Name :	Mr. Sameer Vaid
Designation :	Additional director
Address :	32, Gujarat Vihar, Delhi – 110092, India
Date of Birth/Age :	19.09.1983
Date of Appointment :	02.09.2011
DIN No.:	03627370
Name :	Mr. Sunil Kaura
Designation :	Director
Address :	House No. 1390, Pushpak Complex, Sector 49B, Chandigarh – 160017, India
Date of Birth/Age :	20.03.1967
Date of Appointment :	06.06.2012
DIN No.:	05126396

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Equity Shareholders	No. of Shares
Anil Satia	48670400
Saloni Satia	4160100
Akhil Satia	22414100
Ankit Satia	100
Krishna Satia	100
Shakti Singh	100
Rakesh Doomra	100
Ajay Satia	1908750
T.C. Leasing and Investment Private Limited, India	440250
Total	77594000

Names of Preference Shareholders	No. of Shares
Anil Satia	2000000
Total	2000000

As on 05.11.2012

Names of Allottee [Equity Shares]	No. of Shares
Ankit Satia	9624280
Total	9624280

AS ON 01.03.2013

Names of Allottee [Equity Shares]	No. of Shares
Ankit Satia	7000000
Total	7000000

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	1.00
Directors or relatives of directors	99.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Terry Towels.

Products :

ITC Code	Product Descriptions
52051130	Dyed Yarn

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Installed Capacity	Actual Production
Terry Towel	48 Looms	4022399 Kg
Dyed Yarn	3600 MT/Annum	2312383 Kg

Note: Installed capacity is as certified by the Management but not verified by the Auditors being a technical matter.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Industrial Finance Branch, Golden Tower Dholewal Chowk, Ludhiana – 141003, Punjab, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term loans from banks	408.578	529.165
Term loans from others	0.000	0.255
Term loans from banks	116.703	67.168
Working capital loans from banks	451.644	328.969
Total	976.925	925.557

Banking Relations :	--
Auditors :
Name :	Rakesh Bansal and Company Chartered Accountants
Address :	Kernail Theatre, Muktsar - 152026, Punjab, India
Income-tax PAN of auditor or auditor's firm :	ABJPB2567P
Associates :	Ø Satia Synthetics Limited [U17111PB1992PLC01274] Ø T.C. Spinners (Private) Limited [U17121PB2006PTC030623]

CAPITAL STRUCTURE

AFTER 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
94,500,000	Equity Shares	Rs. 10/- each	Rs. 945.000 Millions
2,000,000	Preference Shares	Rs. 10/- each	Rs. 20.000 Millions
	Total		Rs. 965.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
94,218,280	Equity Shares	Rs. 10/- each	Rs. 942.183 Millions
2,000,000	Preference Shares	Rs. 10/- each	Rs. 20.000 Millions
	Total		Rs. 962.183 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
65,004,000	Equity Shares	Rs. 10/- each	Rs. 650.040 Millions
2,000,000	Preference Shares	Rs. 10/- each	Rs. 20.000 Millions
	Total		Rs. 670.040 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
65,004,000	Equity Shares	Rs. 10/- each	Rs. 650.040 Millions
2,000,000	Preference Shares	Rs. 10/- each	Rs. 20.000 Millions
	Total		Rs. 670.040 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		650.040	650.040	514.540
2] Share Application Money		56.243	33.243	76.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(120.056)	(163.781)	(204.620)
NETWORTH		586.227	519.462	385.920
LOAN FUNDS
1] Secured Loans		976.925	925.557	949.090
2] Unsecured Loans		39.600	0.000	33.243
TOTAL BORROWING		1016.525	925.557	982.333
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1602.752	1445.059	1368.253
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		835.941	879.682	943.767
Capital work-in-progress		70.720	72.266	179.670
INVESTMENT		0.450	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	623.480	485.870	323.948
	Sundry Debtors	259.731	224.843	157.873
	Cash & Bank Balances	38.561	19.586	26.155
	Other Current Assets	105.569	105.183	0.000
	Loans & Advances	13.811	7.304	106.915
Total Current Assets		1041.152	842.786	614.891
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	270.412	266.612	327.679
	Other Current Liabilities	69.908	78.763	44.220
	Provisions	5.191	4.300	0.000
Total Current Liabilities		345.511	349.675	371.899
Net Current Assets		695.641	493.111	242.992
MISCELLANEOUS EXPENSES		0.000	0.000	1.824
TOTAL		1602.752	1445.059	1368.253

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	1994.670	1754.833	1290.528
		Other Income	2.807	0.887	77.221
		TOTAL (A)	1997.477	1755.720	1367.749
Less	EXPENSES
		Cost of materials consumed	1440.790	1290.262
		Purchases of stock-in-trade	4.338	2.068
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(136.057)	(137.212)
		Employee benefit expense	131.236	123.127
		Other expenses	295.892	256.743
		Prior period items	2.007	(1.177)
		TOTAL (B)	1738.206	1533.811	1191.622
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		259.271	221.909	176.127
Less	FINANCIAL EXPENSES (D)		130.210	97.023	90.687
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		129.061	124.886	85.440
Less/ Add	DEPRECIATION/ AMORTISATION (F)		85.335	84.049	82.658
	PROFIT BEFORE TAX (E-F) (G)		43.726	40.837	2.782
Less	TAX (H)		0.000	0.000	0.000
	PROFIT AFTER TAX (G-H) (I)		43.726	40.837	2.782
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	721.981	793.647	547.831
	C.I.F. VALUE OF IMPORTS		9.373	4.713	0.000
	Earnings Per Share (Rs.)		0.69	0.65	0.05

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.19	2.33	0.20
Net Profit Margin (PBT/Sales)	(%)	2.19	2.33	0.22
Return on Total Assets (PBT/Total Assets}	(%)	2.33	2.37	0.18
Return on Investment (ROI) (PBT/Networth)		0.07	0.08	0.01
Debt Equity Ratio (Total Debt/Networth)		1.73	1.78	2.55
Current Ratio (Current Asset/Current Liability)		3.01	2.41	1.65

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 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	Yes
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

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term loans from others	39.600	0.000
Total	39.600	0.000

Note:

The registered office of the company has been shifted from Railway Road, Muktsar, Punjab, India to the present w.e.f.01.11.2008

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17220PB2005PLC028877
Name of the company	T.C. TERRYTEX LIMITED
Address of the registered office or of the principal place of business in India of the company	Village Sarsini, Ambala-Chandigarh Highway, Near Lalru, Tehsil Derabassi, Lalru, Mohali - 140501, Punjab, India Email: psharmaandco@gmail.com
This form is for	Modification of charge
Charge identification number of the modified	10117733
Type of charge	Immovable property Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	State Bank of India, Industrial Finance Branch, Golden Tower Dholewal Chowk, Ludhiana – 141003, Punjab, India Email: hasjeev@gmail.com
Nature of description of the instrument creating or modifying the charge	Joint deed of hypothecation dated 07.02.2013. Working capital consortium agreement 07.02.2013.
Date of instrument Creating the charge	07.02.2013
Amount secured by the charge	Rs. 842.200 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Working capital 3.75% above BR, present effective 13.50% p.a. With monthly rest. Terms of Repayment Period of sanction 12 months w.e.f. 06.11.2012, subject to review thereafter. Margin CASH CREDIT Raw Material 25% stock in process 25% finished goods 25% consumable stores 25% book debts (domestic) cover 90 days 25% export bills under collection 20% ILC/ FLC Sight/ Usance (Max. usance 90 days) 15% Extent and Operation of the charge As per agreement.
Short particulars of the property charged	Working capital- first charge on entire current assets of the company and second charge on entire fixed assets of the company. FIXED ASSETS- Land measuring 32 Bigha 7 Biswa, 25 Bigha 9 Biswa & 5 Bigha 11 Biswa situated at Village Sarsini, Lalru vide Sale Deed No. 8719, 8718 &8745 standing in the name of company b) Land measuring 219 Kanal and 36K 11M situated at Village Lubaniwali, Muktsar standing in the name of saloni satia and anil satia resp. c) land measuring 9 kanal 10 Marla standing in the name of Sh. Anil Satia S/O Shri Balraj Satia vide Sale Deed No. 379 at village Lubaniwali, Muktsar (Punjab) d) Residential plot measuring 375 sq. yards and 5 sq. ft. situated at Mohan Lal Street, Railway Road, Muktsar, standing in the name of Smt. Krishna Satia W/O Shri. Balraj Satia vide Sale Deed No. 2099 e) Property measuring 397.70 sq. yard situated at Railway Road, Muktsar, standing in the joint name of Smt. Bindu Satia W/O Ajay Satia and Shri. Akhil Satia S/O Shri Anil Satia vide Sale Deed No. 4309 d) Property measuring 6 kanal situated near Ramsharnam Ashram, Muktsar standing in the name of Shri Anil Satia vide Sale Deed No. 1864 e) Property measuring 7 Bigha situated at Village Sarsini, Tehsil Dera Bassi, Distt. Mohali standing in the name of Sh. Akhil Satia s/o Sh. Anil Satia vide Sale Deed No. 598
Date of Modification	15.03.2012
Particulars of the present modification	Working Capital enhanced to 842.200 Millions bifurcated between the participating banks as under : Rs. in Millions FB NFB Total SBI 275.000 89.700 364.700 SBOP 157.500 47.500 205.000 Allahabad Bank 45.000 15.000 60.000 IOB 160.000 52.500 212.500 TOTAL 637.500 204.700 842.200

FIXED ASSETS:

Ø Land

Ø Buildings

Ø Plant and equipment

Ø Furniture and fixtures

Ø Vehicles

Ø Office equipment

Ø Computer equipments

Ø Other 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. 54.78
UK Pound	1	Rs. 83.38
Euro	1	Rs. 70.72

INFORMATION DETAILS

Report Prepared by :

BVA

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	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		36

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.