Report Date :

12.08.2014

IDENTIFICATION DETAILS

Name :	AGARWAL TEXTILE MILLS
Registered Office :	Beside Mehta Petrol Pump, Opposite Jain Derasar, Vasta Devdi Road, Opposite Jain Mandir, Katargam, Katargam, Surat - 395004, Gujarat
Country :	India
Financials (as on) :	31.03.2014
Year of Establishment :	1968
Capital Investment / Paid-up Capital :	Rs. 58.120 Millions (As on 31.03.2013)
PAN No.: [Permanent Account No.]	AAEFA7179E
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Dyeing, Printing and Processing of Polyester Yarn.
No. of Employees :	800 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well-established partnership concern having satisfactory track record. The company possesses an average financial profile marked by adequate capital base, low gearing and sufficient debt protection metrics. Management has witnessed a decent sales volume where cy has reported a low profit margin during FY 13, due to lack of proper cast management. The rating also take into consideration, the respectable directors and the stringent corporate governance procedures the management follows while in the business. Moreover, the subject enjoys the locational advantage supporting its business profile as established in the city of surat known as indias Textile Hub. Trade relations are fair. Business is active. Payment terms are reported as usually correct. In view of vast promoter experience, the subject can be considered for business dealings at usual trade terms and conditions.

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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Lalit Agarwal
Designation :	Partner
Contact No.:	91-9825113879
Date :	09.08.2014

LOCATIONS

Registered Office :	Beside Mehta Petrol Pump, Opposite Jain Derasar, Vasta Devdi Road, Opposite Jain Mandir, Katargam, Katargam, Surat - 395004, Gujarat, India
Tel. No.:	91-261-2482987 / 2480013 / 2480858 / 2480013 / 3290961 / 62/63
Mobile No.:	91-9825113879 (Mr. Lalit Agarwal)
Fax No.:	91-261-2480606
E-Mail :	atmlalit@gmail.com
Website :	http://www.atmsurat.com
Area :	1 Lac Sq. ft.
Location :	Owned

PARTNERS

Name :	Mr. Lalit Agarwal
Designation :	Partner
PAN No.:	AAPPA7218K
Name :	Mr. Binay Agarwal
Designation :	Partner
PAN No.:	ABVPA6756D
Name :	Ms. Radha Kishan Agarwal
Designation :	Partner
PAN No.:	ABUPA7359R

BUSINESS DETAILS

Line of Business :	Dyeing, Printing and Processing of Polyester Yarn.
Exports :
Products :	Polyester Yarn.
Countries :	· Dubai · Malaysia
Terms :
Selling :	Cash / Credit
Purchasing :	Cash / Credit

GENERAL INFORMATION

Suppliers :

Nova Dye Staff

Customers :

Srinathji Yamunaji Enterprises

No. of Employees :

800 (Approximately)

Bankers :

· Canara Bank

· ICICI Bank Limited

· HDFC Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long Term Borrowing
Term Loan from Canara Bank	2.426	5.963
Vehicle Loan from ICICI Bank Limited	1.334	1.936
Vehicle Loan from HDFC Bank Limited	0.000	0.071
Short Term Borrowing
Working Capital Facility with Canara Bank	5.944	8.448
Total	9.704	16.418

Banking Relations :	---
Auditors :
Name :	DSI and Company Chartered Accountants
Address :	MF/14-26, Nariman Point Shopping Center, Near Raghvir Bunglows, Citylight Road, Surat- 395007, Gujarat, India
Tel. No.:	91-261-3992929 / 3994747
Fax No.:	91-261-3053838
E-Mail :	dsi.surat@gmail.com
Associates :	· Garg Taxo Fab Private Limited · Swastik Polyprints Private Limited · Surat Impex Private Limited

CAPITAL STRUCTURE

As on 31.03.2013

Partner’s Capital

Rs. In Millions

Name of Partners	Opening Balance	Additions / (Withdrawals) during the year	Remuneration to Partners	Profit / (Loss) for the year	Balance as on 31.03.2013
Radhakishan C. Agarwal	8.457	(0.616)	0.308	0.414	8.563
Lalitkumar Agarwal	24.448	1.176	0.308	0.414	26.346
Binaykumar Agarwal	22.608	(0.119)	0.308	0.414	23.211
Total	55.513	0.441	0.924	1.242	58.120

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2014
Sales Turnover (Approximately)	240.000

The above information has been parted by Mr. Lalit Agarwal

Note : Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	58.120	55.514
(b) Reserves & Surplus	0.000	0.000
(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)	58.120	55.514
(3) Non-Current Liabilities
(a) long-term borrowings	23.145	28.609
(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)	23.145	28.609
(4) Current Liabilities
(a) Short term borrowings	5.944	8.448
(b) Trade payables	32.557	20.112
(c) Other current liabilities	0.383	0.273
(d) Short-term provisions	0.801	0.666
Total Current Liabilities (4)	39.685	29.499
TOTAL	120.950	113.622
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	37.481	40.341
(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	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	4.766	4.685
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	42.247	45.026
(2) Current assets
(a) Current investments	0.002	0.002
(b) Inventories	21.371	10.307
(c) Trade receivables	42.952	48.068
(d) Cash and cash equivalents	7.463	4.045
(e) Short-term loans and advances	5.599	5.093
(f) Other current assets	1.316	1.081
Total Current Assets	78.703	68.596
TOTAL	120.950	113.622

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012
	SALES
		Income	222.664	223.997
		Other Income	2.411	2.276
		TOTAL (A)	225.075	226.273
Less	EXPENSES
		Cost of Materials Consumed	81.883	82.091
		Exceptional Items	0.000	(0.154)
		Remuneration to partners	0.924	0.900
		Employees benefits expense	48.891	48.204
		Other expenses	82.284	84.576
		TOTAL (B)	213.982	215.617
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		11.093	10.656
Less	FINANCIAL EXPENSES (D)		2.873	2.510
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.220	8.146
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.178	6.244
	PROFIT BEFORE TAX (E-F) (G)		2.042	1.902
Less	TAX (H)		0.801	0.666
	PROFIT AFTER TAX (G-H) (I)		1.241	1.236

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012
PAT / Total Income	(%)	0.55	0.55
Net Profit Margin (PBT/Sales)	(%)	0.92	0.85
Return on Total Assets (PBT/Total Assets}	(%)	1.69	1.67
Return on Investment (ROI) (PBT/Networth)		0.04	0.03
Debt Equity Ratio (Total Debt /Networth)		0.50	0.67
Current Ratio (Current Asset/Current Liability)		1.98	2.33

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	55.514	58.120
Reserves & Surplus	0.000	0.000
Net worth	55.514	58.120
long-term borrowings	28.609	23.145
Short term borrowings	8.448	5.944
Total borrowings	37.057	29.089
Debt/Equity ratio	0.668	0.500

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales Turnover (Approximately)	223.997	222.664	240.000
		-0.595	7.786

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Sales	223.997	222.664
Profit	1.236	1.241
	0.55%	0.56%

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
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 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	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
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	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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	No

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2013	As on 31.03.2012
Long Term Borrowing
From Friends and Relatives of Partners	19.385	20.639
Total	19.385	20.639

FIXED ASSETS

· Land

· Factory Building

· Furniture and Fixtures

· Plant, Machinery and Office Equipments

· Vehicles (Motorcars)

· 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 records 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.61.12
UK Pound	1	Rs.102.54
Euro	1	Rs.81.87

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	SUB
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		46

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.