MIRA INFORM REPORT

Report Date :

11.02.2014

IDENTIFICATION DETAILS

Name :	SHYAM POLYSPIN PRIVATE LIMITED
Registered Office :	502, Narayan Chambers, 5^th Floor, Ashram Road, Ahmedabad-380009, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	27.09.1990
Com. Reg. No.:	04-014445
Capital Investment / Paid-up Capital :	Rs.3.698 Millions
CIN No.: [Company Identification No.]	U17119GJ1990PTC014445
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Raw Cotton and Yarn.
No. of Employees :	60 [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 75900
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profit margin of the company is low. However, trade relations are reported to be fair. Business is active. Payments terms 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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

The worst is over for India’s economy with gross domestic product likely to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s Analytics. Concerns over the rupee and current account deficit are under control, said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up from the estimated 4.8 % for 2013/14.  Total economic growth, infrastructure bottlenecks and lack of transparency and consistency in foreign direct investment policies seem to have taken a toll on India’s attractiveness as an investment destination, says an Ernst & Young survey.  Projects with FDI component fell 16.4 % across the globe in 2012 from the previous year.  The drop in India was steeper at 21 %. State run carrier Air India is doling out free tickets to its 24000 employees, even as it expects to incur a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn. 550000 number of jobs generated across India in 2013, a fall of 0.4 % as compared to with a year earlier. The National Capital Region has a one-fourth share in total jobs created, according to a study by industry lobby group Assochem, Banks, real estate, automobile and telecommunications sectors are showing a rise of job creation. $ 805 mn investments by venture capital firms in India during 2013, registering a drop of about 18 % over the previous year. The Information Technology and IT-Enabled Services Industry retained its status as the favourable venture capital investors in 2013. Pakistan has temporarily banned gold imports for the second time in six months, as it tries to stem smuggling into India. India’s import duty on gold is 10 % and curbs on purchases have dried up legal imports into what used to be the world’s biggest bullion buyers. The World Gold Council puts the amount smuggled into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed bank deposits estimated to be about Rs 35000 mn be used for education and awareness among depositors.  According to the plan, deposits that have not been claimed for at least 10 years will be transferred to the scheme.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	B+ [Long Term Bank Facilities]
Rating Explanation	High risk of default.
Date	30.12.2013

Rating Agency Name	CARE
Rating	A4 [Short Term Bank Facilities]
Rating Explanation	Minimal degree of safety. It carry very high credit risk.
Date	30.12.2013

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. Navin Hanumanprasad Gupta
Designation :	Director
Contact No.:	91-79-26578533
Date :	10.02.2014

LOCATIONS

Registered Office :	502, Narayan Chambers, 5^th Floor, Ashram Road, Ahmedabad-380009, Gujarat, India
Tel. No.:	91-79-26578533
Fax No.:	Not Available
E-Mail :	accounts@shyamgroup.com shyamgroup11@yahoo.com
Location :	Owned

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Hanumanprasad Lalchand Gupta

Designation :

Director

Address :

902, Safal Param, Anandnagar Road, Prahladnagar, Ahmedabad, Gujarat, India

Date of Birth/Age :

02.02.1945

Date of Appointment :

27.09.1990

Din No.:

01480165

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U25209GJ1985PTC008295	SHYAM POLYTEX PRIVATE LIMITED	Director	01/09/1990	01/09/1990	-	Active	NO
2	U17119GJ1990PTC014445	SHYAM POLYSPIN PRIVATE LIMITED	Director	27/09/1990	27/09/1990	-	Active	NO
3	U45201GJ1992PLC017794	SHYAM COTSYN INDIA LIMITED	Managing director	10/06/1992	10/06/1992	04/08/2008	Active	NO

Name :

Mr. Pramod Hanumanprasad Gupta

Designation :

Director

Address :

902, Safal Param, Anandnagar Road, Prahladnagar, Ahmedabad, Gujarat, India

Date of Birth/Age :

07.04.1969

Date of Appointment :

08.12.1994

Din No.:

01383093

Name :

Mr. Navin Hanumanprasad Gupta

Designation :

Director

Address :

9-10, Sterling Park Society, Memnagar, Ahmedabad, Gujarat, India

Date of Birth/Age :

05.02.1973

Date of Appointment :

08.08.1995

Din No.:

01460967

Name :

Mr. Vinod Hanumanprasad Gupta

Designation :

Director

Address :

9-10, Sterling Park Society, Memnagar, Ahmedabad, Gujarat, India

Date of Birth/Age :

31.01.1971

Date of Appointment :

14.11.1995

Din No.:

01460906

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Names of Shareholders	No. of Shares
Hanumanprasad Lalchand Gupta	3500
Sarla R. Biyani	10
Pramod Hanumanprasad Gupta	4600
Vinay Hanumanprasad Gupta	5500
Shyam Polytex Private Limited, India	3000
Navin Hanumanprasad Gupta	2970
Vinod Hanumanprasad Gupta	2780
Santosh Vinod Gupta	320
Deepika Pramod Gupta	4500
Navin Hanumanprasad Gupta [Partner of Priyanka Sales Corporation]	2500
Hanumanprasad Lalchand Gupta [Executor Late Parvati Gupta Estate]	3100
Anita Navin Gupta	100
Kiran Vinay Gupta	100
Parvati Gupta Private Trust, India	3000
Vinod Hanumanprasad Gupta [Partner of Vinay Corporation]	1000
TOTAL	36980

AS ON 30.09.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	8.00
Directors or relatives of directors	92.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :	Trader of Raw Cotton and Yarn.
Exports :
Products :	Raw Cotton
Countries :	· China · European Country
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit / Depend

GENERAL INFORMATION

Suppliers :

· Nahar Group

· Trident

· SEL

Customers :

Retailers and End Users

· Nahar Group

· Trident

· SEL

No. of Employees :

60 [Approximately]

Bankers :

· State Bank of Mysore, Shiti Ratna Building, Panchvati Circle, Off C.G. Road, Ahmedabad-380006, Gujarat, India

· Punjab National Bank, Relief Road, Ahmedabad-380001, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2013 [Rs. In Millions]	As on 31.03.2012 [Rs. In Millions]
Long Term Borrowings
Kotak Mahindra Prime Limited Jazz	0.425	0.000
Kotak Mahindra Prime Limited Verna	0.742	0.000
Short Term Borrowings
From Punjab National Bank [secured by hypothecation of pledge stock of cotton bales]	0.000	51.564
Punjab National Bank [secured against hypothecation of book debts and equitable mortgage]	35.697	32.408
PNB A/C Bills Payable [secured by margin money as well as DA/DP bills with take to goods]	15.527	0.000
TOTAL	52.391	83.972

Banking Relations :	--
Auditors :
Name :	M P Sutaria and Company Chartered Accountants
Address :	303, Harikrupa Tower, Behind Gujarat College, Ellisbridge, Ahmedabad-380006, Gujrat, India
PAN No:	ACVPS6981R
Associates/Subsidiaries :	· Vinay Corporation · Shyam Polyspin · Priya Sales Corporation · Shyam Textile

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
36980	Equity Shares	Rs.100/- each	Rs.3.698 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	3.698	3.698	3.698
(b) Reserves & Surplus	15.283	12.605	10.012
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	18.981	16.303	13.710
(3) Non-Current Liabilities
(a) long-term borrowings	12.688	18.883	4.499
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	12.688	18.883	4.499
(4) Current Liabilities
(a) Short term borrowings	51.224	83.972	103.730
(b) Trade payables	7.325	6.739	16.030
(c) Other current liabilities	0.607	0.395	0.670
(d) Short-term provisions	2.518	1.159	0.978
Total Current Liabilities (4)	61.674	92.265	121.408
TOTAL	93.343	127.451	139.617
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	7.645	6.387	6.468
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.226	0.552	0.552
(c) Deferred tax assets (net)	0.041	0.023	0.019
(d) Long-term Loan and Advances	1.529	0.029	0.029
(e) Other Non-current assets	0.000	0.000	0.026
Total Non-Current Assets	9.441	6.991	7.094
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	0.000	0.000	35.768
(c) Trade receivables	80.878	118.358	93.468
(d) Cash and cash equivalents	0.045	0.017	0.091
(e) Short-term loans and advances	0.000	0.000	0.584
(f) Other current assets	2.979	2.085	2.612
Total Current Assets	83.902	120.460	132.523
TOTAL	93.343	127.451	139.617

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	722.741	540.454	426.818
		Other Income	NA	NA	2.857
		Profit / Loss on Sale of Assets	NA	NA	0.115
		TOTAL	NA	NA	429.790
Less	EXPENSES
		Purchases			457.895
		Employee Remunerations			0.797
		Administrative and Other Expenses	NA	NA	1.463
		Audit Fees			0.008
		Directors Remunerations			1.476
		Preliminary Expenses			0.013
		Increase/Decrease in Stocks			(35.767)
		TOTAL	NA	NA	425.885
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		8.652	5.690	3.905
Less	FINANCIAL EXPENSES		3.096	1.781	0.553
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		5.556	3.909	3.352
Less/ Add	DEPRECIATION/ AMORTISATION		0.378	0.162	0.156
	PROFIT / (LOSS) BEFORE TAX		5.178	3.747	3.196
Less	TAX		1.640	1.154	0.990
	PROFIT / (LOSS) AFTER TAX		3.538	2.593	2.206
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		10.165	7.572	5.366
Less	APPROPRIATIONS
		Proposed Final Dividend	0.740	0.000	0.000
		Distribution Tax on Proposed Dividend	0.120	0.000	0.000
	BALANCE CARRIED TO THE B/S		12.843	10.165	7.572
	Earnings / (Loss) Per Share (Rs.)		95.67	70.12	--

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	NA	NA	0.51
Net Profit Margin (PBT/Sales)	(%)	0.72	0.69	0.75
Return on Total Assets (PBT/Total Assets}	(%)	5.56	2.95	2.30
Return on Investment (ROI) (PBT/Networth)		0.27	0.23	0.23
Debt Equity Ratio (Total Debt/Networth)		3.37	6.31	7.89
Current Ratio (Current Asset/Current Liability)		1.36	1.31	1.09

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	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	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

INDEX OF CHARGES:

S. NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10084400	17/01/2012 *	160,000,000.00	PUNJAB NATIONAL BANK	RELIEF ROAD, AHMEDABAD, GUJARAT - 380001, INDIA	B31738974
* Date of charge modification

Unsecured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Long Term Borrowings
Loans From Directors and Others	11.521	18.883
TOTAL	11.521	18.883

PERFORMANCE REVIEW:

During the year, the company has achieved a record turnover of is Rs.722.741 Millions as against Rs.540.454 Millions for the previous financial year showing an increase of 33.73 %. The Company has earned profit before financial expenses and depreciation of Rs.8.652 Millions as against Rs.5.690 Millions in the previous year. After providing for financial exp and deprecation Company has earned Profit before tax is Rs.5.178 Millions as against previous year of Rs.3.747 Millions. The profit after Tax comes to Rs.35.38 Millions as against Rs.2.593 Millions in the previous year showing an increase of 36.44% over the previous year. The Company also expects to achieve excellent performance during the current year.

FIXED ASSETS:

· Typewriter

· Mobile Phone

· Vehicles

· Furniture and Fixtures

· Air Conditioner

· Computer

· Office Equipments

· Refrigerator

· Television

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] 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.62.19
UK Pound	1	Rs.102.14
Euro	1	Rs.84.74

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	2
--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
--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.