MIRA INFORM REPORT

Report Date :

26.10.2013

IDENTIFICATION DETAILS

Name :	SURUCHI TEX FAB PRIVATE LIMITED
Registered Office :	No. 525-526, Mahalakshmi Market, Ring Road, Surat – 395002, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	16.04.2003
Com. Reg. No.:	04-042239
Capital Investment / Paid-up Capital :	Rs. 0.328 Million
CIN No.: [Company Identification No.]	U17119GJ2003PTC042239
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the business of wholesale trading in textiles products processed on job basis.
No. of Employees :	80 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 28000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. External borrowing appears to be tremendously increasing during 2012. Net profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payment are reported to be slow but correct. 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

INDIAN ECONOMIC OVERVIEW

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the traqde deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

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. Rohit Agrawal
Designation :	Head of online sales
Contact No.:	91-9909105822
Date :	24.10.2013

LOCATIONS

Registered Office :	No. 525-526, Mahalakshmi Market, Ring Road, Surat – 395002, Gujarat
Tel. No.:	91-261-6624648/ 2333626/ 3019508
Mobile No.:	91-9909105822 (Mr. Rohit Agrawal)
Fax No.:	Not Available
E-Mail :	suruchitexfab@yahoo.com
Website :	http://www.suruchitex.com
Location :	Owned

DIRECTORS

As on: 29.09.2012

Name :	Mr. Bijendra Kumar Garg
Designation :	Managing director
Address :	526, Mahalakshmi Market, Ring Road, Surat – 395002, Gujarat, India
Date of Birth/Age :	14.04.1960
Date of Appointment :	16.04.2003
DIN No.:	01049060
Name :	Mr. Rajeshwar Badriprasad Agrawal
Designation :	Managing director
Address :	526, Mahalakshmi Market, Ring Road, Surat – 395002, Gujarat, India
Date of Appointment :	16.04.2003
DIN No.:	01579443
Name :	Mr. Bipin Pitambar Garg
Designation :	Whole-time director
Address :	2/A,Ratiraj Apartment, Near, Megha Tower, Union Park Gali, Ghod Dod Road, Surat – 395007, Gujarat, India
Date of Birth/Age :	05.02.1982
Date of Appointment :	19.11.2005
DIN No.:	01049225

KEY EXECUTIVES

Name :	Mr. Rohit Agrawal
Designation :	Head of online sales

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Bijendra Kumar Garg	5000
Rajeshwar Badriprasad Agrawal	5000
Sanju Agrawal	100
Sunita Agrawal	100
Saroj Agarwal	100
Badri Prasad Agarwal	100
Rekha Garg	100
Pitamber Agrawal	2350
Sanjay Kumar Agrawal	100
Sanjay Agrawal Huf	100
Bijendra Garg Huf	2350
Pitamber Agrawal Huf	2350
Bipin Garg Huf	2350
Manish Garg	100
Rajeshwar Agarwal Huf	2350
Bipin Garg	2350
Dayawati Agarwal	2350
Nidhi Garg	2350
Manish Agarwal	100
Anup Garg	100
Gungun Exports Private Limited, India	3000
Total	32800

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Bodies corporate	9.15
Directors or relatives of directors	90.85
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in the business of wholesale trading in textiles products processed on job basis.
Products :	Sarees Salwar Kameez Dress Material
Exports :
Products :	Finished goods
Countries :	Middle East
Terms :
Purchasing :	Depend

GENERAL INFORMATION

Customers :

Other

No. of Employees :

80 (Approximately)

Bankers :

• Indian Bank, 12-15 Reshamwala Market Branch, Ring Road, Surat - 395002, Gujarat, India
• HDFC Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long term borrowings
From banks HDFC Bank Limited (Car Loan)	0.000	0.110
Short term borrowings
From banks Indian Bank (Cash credit)	4.025	3.803
Total	4.025	3.913

Banking Relations :	--
Auditors :
Name :	RRA and Company Chartered Accountants
Address :	HG-1D, International Trade Centre, Majura Gate Crossing, Surat – 395002, Gujarat, India
Fax No.:	91-261-2462176/ 3056175/ 176
E-Mail :	surat@nagrol.com
PAN No.:	AAFFR4860E

CAPITAL STRUCTURE

As on: 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.10/- each	Rs. 1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
32800	Equity Shares	Rs.10/- each	Rs. 0.328 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	0.328	0.298
(b) Reserves & Surplus	6.772	4.258
(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)	7.100	4.556
(3) Non-Current Liabilities
(a) long-term borrowings	21.418	15.650
(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)	21.418	15.650
(4) Current Liabilities
(a) Short term borrowings	4.025	3.803
(b) Trade payables	19.652	15.891
(c) Other current liabilities	0.583	0.659
(d) Short-term provisions	0.011	0.017
Total Current Liabilities (4)	24.271	20.370
TOTAL	52.789	40.576
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1.491	1.175
(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	0.403	0.403
(c) Deferred tax assets (net)	0.057	0.100
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	1.951	1.678
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	26.796	12.759
(c) Trade receivables	22.215	25.436
(d) Cash and cash equivalents	1.806	0.682
(e) Short-term loans and advances	0.021	0.021
(f) Other current assets	0.000	0.000
Total Current Assets	50.838	38.898
TOTAL	52.789	40.576

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.298
2] Share Application Money		0.000
3] Reserves & Surplus		3.428
4] (Accumulated Losses)		0.000
NETWORTH		3.726
LOAN FUNDS
1] Secured Loans		4.507
2] Unsecured Loans		12.471
TOTAL BORROWING		16.978
DEFERRED TAX LIABILITIES		0.000
TOTAL		20.704
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.524
Capital work-in-progress		0.000
INVESTMENT		0.402
DEFERREX TAX ASSETS		0.070
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	12.696
	Sundry Debtors	19.575
	Cash & Bank Balances	0.568
	Other Current Assets	0.000
	Loans & Advances	0.356
Total Current Assets		33.195
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities
	Provisions
Total Current Liabilities		14.487
Net Current Assets		18.708
MISCELLANEOUS EXPENSES		0.000
TOTAL		20.704

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL (A)	138.532	132.457	82.811
Less	EXPENSES
		Cost of goods sold		119.485	73.988
		Employee remuneration and other benefit		0.749	0.730
		Administrative and Other expenses		6.438	3.380
		Selling and distribution expenses		1.797	1.369
		TOTAL (B)	136.655	128.469	79.467
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		Including financial	3.988	3.344
			Expenses
Less	FINANCIAL EXPENSES (D)			2.417	2.009
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.877	1.571	1.335
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.361	0.366	0.319
	PROFIT BEFORE TAX (E-F) (G)		1.516	1.205	1.016
Less	TAX (H)		0.472	0.374	0.328
	PROFIT AFTER TAX (G-H) (I)		1.044	0.831	0.688
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3.539	2.708	2.020
	BALANCE CARRIED TO THE B/S		4.583	3.539	2.708
	Earnings Per Share (Rs.)		31.82	2.79	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.75	0.62	0.84
Return on Total Assets (PBT/Total Assets}	(%)	2.90	3.01	2.92
Return on Investment (ROI) (PBT/Networth)		0.21	0.27	0.27
Debt Equity Ratio (Total Debt/Networth)		3.58	4.27	4.56
Current Ratio (Current Asset/Current Liability)		2.10	1.91	2.29

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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
Long term borrowings
From director	3.381	2.208
From shareholders and relatives	18.037	13.332
Total	21.418	15.540

THE YEAR IN RETROSPECT AND FUTURE OUTLOOK:

Company has achieved a satisfactory performance as regards the turnover. During the year the company has achieved a turnover of Rs. 138.532 Millions as against the turnover of previous year of Rs 132.457 Millions. The company has earned a profit Rs. 1.044 Millions as against the profit of previous year of Rs 0.831 Million.

The directors are making efforts to combat the situation by giving emphasis on quality of the products and aggressive marketing and feel confident that the Performance of the company will be encouraging in years to come.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80055975	03/09/2009 *	3,800,000.00	INDIAN BANK	12-15 RESHAMWALA MARKET BRANCH, RING ROAD, SURAT, GUJARAT - 395002, INDIA	A70206743

* Date of charge modification

FIXED ASSETS

• Furniture
• Air Condition
• Office Equipment
• Computer

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. 61.62
UK Pound	1	Rs. 99.93
Euro	1	Rs. 85.62

INFORMATION DETAILS

Information Gathered by :	PDT
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	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.