MIRA INFORM REPORT

Report Date :

29.01.2014

IDENTIFICATION DETAILS

Name :	YASHRAJ POLYTEX PRIVATE LIMITED
Registered Office :	G-2, Dhanlaxmi Palace, Sneh Park, District Bulsar, Vapi – 396 191, Gujarat
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	11.01.2002
Com. Reg. No.:	04-040354
Capital Investment / Paid-up Capital :	Rs.0.100 million
CIN No.: [Company Identification No.]	U17119GJ2002PTC040354
TAN No.: [Tax Deduction & Collection Account No.]	SRTY00034G
PAN No.: [Permanent Account No.]	AAACY1653Q
Legal Form :	Private Limited Liability Company
Line of Business :	Trader, Exporter and Importer of Textiles, Commodities and Chemicals.
No. of Employees :	35 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (18)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The management has failed to file its financials with the Government Department since 2009. However, Mr. Mehul Kakkad (Director) has provided the sales turnover of 2011 (Rs.140.600 millions), 2012 (Rs.168.500 millions) and 2013 (Rs.198.400 millions) which is not verified. Further he also provided general information to us. Business is active. Payment terms are unknown. The company can be considered for business dealings on safe and secured 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 – 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 services sector, the largest contributor to India’s GDP, contracted for the sixth consecutive month in December, as orders dipped. However, hiring has risen.  Direct tax collections rose 12.3 % during the April – December period of the current financial year.  The government has decided to retain 100 per cent foreign direct investment in both greenfield (new) and brown field (existing) pharmaceutical companies, despite concerns over genetic drugs going out of production, if multi-national companies take over domestic ones. In M&A deals, a non compete clause would not be allowed, except in special circumstances. The Department of Industrial Policy and Promotion plans to release the next edition of its consolidated foreign direct investment policy document on March 31, incorporating changes made in the past year. DIPP compiles all policies related to India’s FDI regime into a single document to make it easy for investors to understand. 185 million estimated number of mobile internet users in India by June 2014, according to a report by the Internet & Mobile Association of India and IMRB International.  India had 110 million mobile internet users with 25 million in rural areas. $3.77 tn estimated global IT spending in 2014, according to research firm Gartner Inc. The growth forecast for this year is cut to 3.1 %from the earlier estimate of 3.5 %. The spending growth forecast for telecom services – a segment that accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per cent is the main reason for this overall IT cut. A Reserve Bank of India committee has recommended setting up a special category of lenders who would cater to small businesses and households, to expand the number of customers with access to banking services. These banks would focus onproviding payment services and deposit products.  Indian banks want the free use of automated teller machines to be capped at five transactions in a month including that of the bank in which the account is active. This follows state government order to banks to install security guards at ATM booths after a woman banker was assaulted in Bangalore. The government is likely to present a vote on Account in mid-February. The annual Economic Survey will be tabled later in Parliament along with the full Budget. A full Budget for 2014/15 is likely to be present in July by the new government formed after the General Election. The government will soon launch an internet spy system, called Netra, to detect malafide messages. Security agency will deploy the system to capture dubious voice traffic on applications such as Skype and Google Talk, as well as tweeters.

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. Mehul K. Kakkad
Designation :	Director
Contact No.:	91-9374433030
Date :	25.01.2014

LOCATIONS

Registered Office :	G-2, Dhanlaxmi Palace, Sneh Park, District Bulsar, Vapi – 396 191, Gujarat, India
Tel. No.:	91-260-2423030
Mobile No.:	91-9374433030/ 9374423030 (Mr. Mehul K. Kakkad)
Fax No.:	91-260-2451477
E-Mail :	yashrajpolytex@hotmail.com
Website :	http://www.yashrajgroup.com
Area :	750 sq. ft.
Location :	Owned
Corporate Office :	B-09, Busy Bee Centre, Opposite Hanuman Temple, Vapi-Silvassa Road, Vapi – 396 195, Gujarat, India
Tel. No.:	91-260-2423030
Fax No.:	91-260-2451477

Note: Factory address has been changed into corporate office.

DIRECTORS

AS ON 30.09.2008

Name :	Mr. Mehul Kalyanjibhai Kakkad
Designation :	Director
Address :	G-2, Dhanlaxmi Palacesneh Park, District Bulsar, Vapi – 396 191, Gujarat, India
Date of Birth/Age :	20.10.1976
Qualification :	Textile Engineer
Date of Appointment :	11.01.2002
DIN No.:	01877054
Name :	Mr. Sachin Kalyanjibhai Kakkad
Designation :	Director
Address :	G-2, Dhanlaxmi Palacesneh Park, District Bulsar, Vapi – 396 191, Gujarat, India
Date of Birth/Age :	28.05.1978
Qualification :	Lawyer
Date of Appointment :	11.01.2002
DIN No.:	01877071

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2008

Names of Shareholders	No. of Shares
Mehul Kakkad	5000
Sachin Kakkad	5000
Total	10000

AS ON 30.09.2008

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader, Exporter and Importer of Textiles, Commodities and Chemicals.
Products :	· Raw Cotton · Cotton Yarn · Shirting and Suiting Fabrics · Garments · Undergarments and Lingerie for Women In addition, they also officer commodities like: · Industrial Salt (NACL) · Edible Iodised Salt · Cement · Sugar · Crude Degummed Repeseed Oil · Refined Edible Oil · Used Cooking Oil · Rice
Exports :
Products :	Textiles, Commodities and Chemicals
Countries :	· USA · Europe · Russia · Thailand · Egypt · Africa · Australia · Malaysia · Sri Lanka · Italy · Brazil
Imports :
Products :	Raw Materials
Countries :	· China · Taiwan · Hong Kong · South Korea
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Wholesaler, End Users and OEM’s

No. of Employees :

35 (Approximately)

Bankers :

· Union Bank of India, Branch Vapi, Gujarat, India

· IndusInd Bank Limited, Vapi

· Citibank, Vapi Branch, 1-1 S Be Bank – Bulsar, Vapi, Gujarat, India

Facilities :

Secured Loan	31.03.2008 (Rs. in millions)	31.03.2007 (Rs. in millions)
Union Bank of India (O/D against Property)	0.828	0.828
IndusInd Bank CC	0.064	0.000
Total	0.893	0.828

Banking Relations :	--
Auditors :
Name :	B.A. Desai and Associates Chartered Accountants
Sister Concern :	Yashraj Resources Corporation Limited Address: Hong Kong Line of Business: Similar Yashraj Expologs Address: Vapi Line of Business: Logistics

CAPITAL STRUCTURE

AS ON 31.03.2008

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.10/- each	Rs.0.500 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs.0.100 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		0.100	0.100	0.100
2] Share Application Money		0.300	0.300	0.300
3] Reserves & Surplus		0.598	0.512	0.485
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		0.998	0.912	0.885
LOAN FUNDS
1] Secured Loans		0.893	0.828	1.157
2] Unsecured Loans		2.847	1.677	1.469
TOTAL BORROWING		3.740	2.505	2.626
DEFERRED TAX LIABILITIES		0.042	0.042	0.042
TOTAL		4.780	3.459	3.553
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.667	0.716	0.840
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.120	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1.777	1.142	1.217
	Sundry Debtors	2.112	2.077	1.862
	Cash & Bank Balances	0.526	0.195	0.033
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.282	0.139	0.076
Total Current Assets		4.697	3.553	3.188
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.498	0.646	0.355
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.206	0.164	0.120
Total Current Liabilities		0.704	0.810	0.475
Net Current Assets		3.993	2.743	2.713
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4.780	3.459	3.553

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2008	31.03.2007	31.03.2006
	SALES
		Income	24.419	18.303	18.303
		Other Income
		TOTAL	24.419	18.303	18.303
Less	EXPENSES
		Office Expenses
		Administrative Expenses	24.270	18.276	18.228
		Advertising Expenses
		TOTAL	24.270	18.276	18.228
	PROFIT BEFORE TAX		0.149	0.027	0.075
Less	TAX		0.064	0.000	0.048
	PROFIT AFTER TAX		0.085	0.027	0.027
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.512	0.485	0.485
	BALANCE CARRIED TO THE B/S		0.597	0.512	0.512
	EARNINGS IN FOREIGN CURRENCY		Nil	Nil	Nil
	IMPORTS
		Raw Materials	0.023	0.016	0.010
	TOTAL IMPORTS		0.023	0.016	0.010
	Earnings Per Share (Rs.)		8.57	2.76	12.84

Particulars	31.03.2013	31.03.2012	31.03.2011
Sales Turnover (Approximately)	198.400	168.500	140.600

Expected Sales (2013-2014): Rs.250.000 millions

The above information has been denied by Mr. Mehul Kakkad (Director).

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	0.34	0.14	0.14
Net Profit Margin (PBT/Sales)	(%)	0.61	0.14	0.40
Return on Total Assets (PBT/Total Assets}	(%)	2.77	0.63	1.86
Return on Investment (ROI) (PBT/Networth)		0.14	0.02	0.08
Debt Equity Ratio (Total Debt/Networth)		3.75	2.75	2.97
Current Ratio (Current Asset/Current Liability)		6.67	4.38	6.71

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	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	Yes
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	No
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

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90099582	04/05/2004 *	700,000.00	UNION BANK OF INDIA	VAPI BRANCH, VAPI, GUJARAT, INDIA	-
2	90100853	29/10/2002	700,000.00	UNION BANK OF INDIA	VAPI BRANCH, VAPI, GUJARAT, INDIA	-

* Date of charge modification

UNSECURED LOAN

Particular	31.03.2008 (Rs. in millions)	31.03.2007 (Rs. in millions)
From Directors
Mehul Kakkad	0.584	0.589
Sachin Kakkad	0.505	0.505
From Others
K. M. Kakkad	0.437	0.387
Hansaben Kakkad	0.054	0.054
Priti Kakkad	0.122	0.122
Smita Mehta	0.110	0.020
Sai Garments	0.026	0.000
India Bulls Financial Services Limited	0.730	0.000
From Bank
Citibank – Business Loan	0.278	0.000
Total	2.847	1.677

FIXED ASSETS:

· Building

· Plant and Machineries

· Furniture and Equipments

· Weighing scale

· 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.62.99
UK Pound	1	Rs.104.61
Euro	1	Rs.86.17

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		18

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.