MIRA INFORM REPORT

Report Date :

21.10.2013

IDENTIFICATION DETAILS

Name :	BEST TEXTILES LIMITED (w.e.f. 29.03.2007)
Formerly Known As :	SPANK MARKETING AND SERVICES PRIVATE LIMITED
Registered Office :	B-85, Okhla Industrial Area, Phase - II, New Delhi – 110 020
Country :	India
Financials (as on) :	31.03.2012 (Profit & Loss A/c)
Date of Incorporation :	05.08.1996
Com. Reg. No.:	55-157651
Capital Investment / Paid-up Capital :	Rs.44.860 millions
CIN No.: [Company Identification No.]	U51390DL1996PLC157651
TAN No.: [Tax Deduction & Collection Account No.]	DELS13634F
PAN No.: [Permanent Account No.]	AABCS5770R
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of textiles and value added home fashion products.
No. of Employees :	600 (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 342000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The company has recorded growth in profit and sales turnover during the financial year 2013. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings with some caution. Note: Latest financial information of 2013 taken from indirect source i.e ICRA.

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

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long Term Fund Based Bank Limits: BB -
Rating Explanation	Moderate degree of safety and high credit risk.
Date	September 2013

Rating Agency Name	ICRA
Rating	Short Term Fund Based Bank Limits: A4 +
Rating Explanation	Minimal degree of safety and high credit risk.
Date	September 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.

INFORMATION PARTED BY

Name :	Mr. Pradeep
Designation :	Accounts Department
Contact No.:	91-11-26387428
Date :	18.10.2013

LOCATIONS

Registered Office :	B-85, Okhla Industrial Area, Phase - II, New Delhi – 110 020, India
Tel. No.:	91-11-26387421-28
Fax No.:	91-11-26387429
E-Mail :	customercare@besttextile.in sales@besttexttiles.in agrawalajayca@gmail.com
Website :	www.besttextile.in
Location :	Owned
Factory 1 :	C-13, Sector-58, Noida, Uttar Pradesh, India
Factory :	Also located at: · Panipat · Madurai · Solapur · Bewar

DIRECTORS

As on 28.09.2012

Name :	Mr. Sanjeev Dhawan
Designation :	Managing Director
Address :	111, Bakhtawar Singh Block, Asiad Village, Khelgaon, New Delhi – 110 049, India
Date of Birth/ Age :	13.01.1967
Qualification :	MBA
Date of Appointment :	17.01.2008
DIN No.:	00808354
PAN No.:	AFQPD0726H
Name :	Mr. Rakesh Mahajan
Designation :	Director
Address :	EG-24 , Inderpuri New Delhi, India
Date of Birth/ Age :	11.09.1966
Qualification :	CA
Date of Appointment :	25.11.2008
DIN No.:	00804251
PAN No.:	AAIPM9835H
Name :	Mr. Seboti Protibha Lugun
Designation :	Director
Address :	House No.31, Ground Floor, Gautam Nagar, New Delhi, India
Date of Appointment :	26.01.2008
DIN No.:	01768816
PAN No.:	ACWPL2386A
Name :	Mr. Ashok Rawat
Designation :	Director
Address :	A-37, Raj Nagar-II, Palam Colony, New Delhi – 110 045, India
Date of Birth/ Age :	28.04.1971
Qualification :	Graduate
Date of Appointment :	17.01.2008
DIN No.:	01783108
PAN No.:	ADSPR7822E

KEY EXECUTIVES

Name :	Mr. Vivek Choudhary
Designation :	Company Secretary
Address :	RZ-101, Street No.4, East Sagar Pur, Delhi – 110 046, India
Date of Appointment :	25.08.2012
PAN No.:	ALKPC4425A
Name :	Mr. Pradeep
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2012

Note:

Shareholding details file attached.

As on 28.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies Corporate	11.29
Directors or relatives of directors	88.71
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of textiles and value added home fashion products.
Products :	Blankets/Home Furnishing Items
Exports :
Products :	Finished goods
Countries :	Europe China Bangladesh America Thailand Afghanistan Hong Kong USA
Terms :
Selling :	Cash
Purchasing :	Cash and depend

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

600 (Approximately)

Bankers :

• Oriental Bank of Commerce, Overseas Branch, M-33 Greater Kailash Part II, New Delhi – 110 048, India

Tel. No.:91-11-29215100

• HDFC Bank Limited
• Indian Bank, Hyderabad
• Indian Overseas Bank
• Punjab National Bank
• State Bank of India – Mumbai
• State Bank of Saurashtra

Facilities :

Secured Loans :	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Packing Credit Loan	80.000	59.965
Cash Credit Loan	18.770	13.805
Bill Purchases (All the above facilities are secured by way of hypothecation of stock, book debts and also first charge on all fixed assets of the company)	43.553	53.039
Term Loan on Property (Secured by way of First Charge on Land and Building and Current assets of the company)	26.348	30.042
HDFC Car Loan (Secured by way of Hypothecation of Innova Car)	0.000	0.318
OBC Car Loan (Secured by way of Hypothecation of Cars)	0.000	0.587
Total	168.671	157.756

Banking Relations :	-----
Auditors :
Name :	Ajay R. Agarwal and Associates Chartered Accountants
Address :	97, Vidhi Apartment, Plot No.116, IP Extension, Pataparganj, New Delhi – 110 092, India
Income-tax PAN of auditor or auditor's firm :	ACBPA0068K
Subsidiaries (As on 31.03.2011) :	Best Retail Limited (CIN No.: U52190DL2008PLC172820) Best Natural Resources Limited (CIN No.: U15144DL2008PLC181626)

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4486027	Equity Shares	Rs.10/- each	Rs.44.860 millions

As on 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7524247	Equity Shares	Rs.10/- each	Rs.75.242 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		44.860	42.017
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		40.716	14.011
4] (Accumulated Losses)		0.000	0.000
NETWORTH		85.576	56.028
LOAN FUNDS
1] Secured Loans		168.671	157.756
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		168.671	157.756
DEFERRED TAX LIABILITIES		0.260	0.362
TOTAL		254.507	214.146
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		45.908	48.285
Capital work-in-progress		0.000	0.000
INVESTMENT		10.130	2.793
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	170.174	121.544
	Sundry Debtors	111.184	149.286
	Cash & Bank Balances	3.880	7.289
	Other Current Assets	0.000	0.000
	Loans & Advances	20.082	13.841
Total Current Assets		305.320	291.960
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	36.308	115.023
	Other Current Liabilities	67.156	11.069
	Provisions	3.686	2.891
Total Current Liabilities		107.150	128.983
Net Current Assets		198.170	162.977
MISCELLANEOUS EXPENSES		0.299	0.091
TOTAL		254.507	214.146

Note: Balance Sheet for the year 2012 is not available only Profit & Loss A/c is available.

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	1537.982	939.516	755.586
		Other Income	3.677	0.163	22.545
		TOTAL (A)	1541.659	939.679	778.131
Less	EXPENSES
		Purchases of stock-in-trade	1368.400	863.282	749.676
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(12.473)	(48.630)
		Employee benefit expense	61.604	32.527
		Other expenses	69.376	57.302
		TOTAL (B)	1486.907	904.481	749.676
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		54.752	35.198	28.455
Less	FINANCIAL EXPENSES (D)		33.932	21.470	15.535
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		20.820	13.728	12.920
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.802	2.930	3.243
	PROFIT BEFORE TAX (E-F) (G)		18.018	10.798	9.677
Less	TAX (H)		6.592	3.993	3.318
	PROFIT AFTER TAX (G-H) (I)		11.426	6.805	6.359
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	496.526	NA
	TOTAL EARNINGS		NA	496.526	NA
	Earnings Per Share (Rs.)		2.55	1.61	2.11

Particulars	31.03.2013
Sales Turnover (Approximately)	5009.100
Profit/Loss for the year	51.200

Note: Latest financial information of 2013 taken from indirect source i.e ICRA.

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.74	0.72	0.82
Net Profit Margin (PBT/Sales)	(%)	1.17	1.15	1.28
Return on Total Assets (PBT/Total Assets}	(%)	NA	3.07	2.84
Return on Investment (ROI) (PBT/Networth)		NA	0.13	0.17
Debt Equity Ratio (Total Debt/Networth)		NA	1.97	2.82
Current Ratio (Current Asset/Current Liability)		NA	2.85	2.26

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 four years	Yes
12]	Profitability for last four 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	Yes
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	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 15, First Floor, National Park, Behind Vikram Hotel, Lajpat Nagar IV, New Delhi – 110 024 to the present address w.e.f. 10.12.2008.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10417298	28/02/2013	20,000,000.00	ORIENTAL BANK OF COMMERCE	OVERSEAS BRANCH, M-33 GREATER KAILASH PART - 2, NEW DELHI, DELHI - 110048, INDIA	B72383730
2	10295469	30/06/2011	10,000,000.00	ORIENTAL BANK OF COMMERCE	OVERSEAS BRANCH, M-33 GREATER KAILASH PART II, NEW DELHI, DELHI - 110048, INDIA	B16293730
3	10178338	05/09/2009	8,000,000.00	ORIENTAL BANK OF COMMERCE	OVERSEAS BRANCH, M-33 GREATER KAILASH-II (MARKET) , NEW DELHI, DELHI - 110048, INDIA	A70891007
4	10133322	25/10/2008	34,800,000.00	ORIENTAL BANK OF COMMERCE	M-3, OVERSEAS BRANCH, GREATER KAILASH, PART - II, NEW DELHI, DELHI - 110049, INDIA	A52482254
5	10067849	13/08/2007	1,000,000.00	ORIENTAL BANK OF COMMERCE	M-33 OVERSEAS BRANCH, GREATER KAILASH PART-II, NEW DELHI, DELHI - 110049, INDIA	A23452089
6	10058975	05/09/2013 *	2,634,800,000.00	ORIENTAL BANK OF COMMERCE	OVERSEAS BRANCH, M-33 GREATER KAILASH PART-2, NEW DELHI, DELHI - 110048, INDIA	B84569821
7	80016037	03/10/2006 *	9,000,000.00	ORIENTAL BANK OF COMMERCE	OVERSEAS BRANCH, M-33 GREATER KAILASH - II, NEW DELHI, DELHI - 110049, INDIA	-

* Date of charge modification

FIXED ASSETS:

· Air Conditioner

· Building

· Carpets

· Computer

· Cooler

· Vaccum Cleaner

· Vending Machine

· Weighing Scale

· Plant and Machinery

· Dryer Machine

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.61.28
UK Pound	1	Rs.99.02
Euro	1	Rs.83.80

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--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	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
DEFAULTER
--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.