MIRA INFORM REPORT

Report Date :

30.07.2014

IDENTIFICATION DETAILS

Name :	PARTAP SPINTEX LIMITED (w.e.f. 07.04.2006)
Formerly Known As :	PARTAP SPINTEX PRIVATE LIMITED (w.e.f. 07.12.2005) PARTAP FURANE PRIVATE LIMITED (w.e.f. 15.04.2005) PARTAP FURANE LIMITED (w.e.f. 01.07.1998) PARTAP FURANE PRIVATE LIMITED
Registered Office :	192, K.M. Stone, G.T. Road, VPO Mohra, Ambala – 133 004, Haryana
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	26.04.1989
Com. Reg. No.:	05-030556
Capital Investment / Paid-up Capital :	Rs.103.333 millions
CIN No.: [Company Identification No.]	U15140HR1989PLC030556
TAN No.: [Tax Deduction & Collection Account No.]	RTKP02844C
PAN No.: [Permanent Account No.]	AADCP8715D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Cotton and Polyester Yarn.
No. of Employees :	Information declined by the Management.

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 1320000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company possesses an above average financial profile marked by adequate networth position, whereas the working capital intensive operations may affect liquidity position during 2013. The ratings also take into consideration the susceptibility of its operating margin to volatility in cotton prices. However, trade relations are fair. Business is active. Payment terms are reported as slow but correct. In view of long standing experience of the promoters, the subject 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 – 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

NEWS

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 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 that 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating: BB
Rating Explanation	Moderate risk of default regarding timely servicing of payments.
Date	January 31, 2014

Rating Agency Name	CRISIL
Rating	Short Term Rating: A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	January 31, 2014

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 DECLINED BY

Name :	Mr. Rishabh Bansal
Contact No.:	91-9896819119
Date :	26.07.2014

LOCATIONS

Registered Office/ Garment Division :	192, K.M. Stone, G.T. Road, VPO Mohra, Ambala – 133 004, Haryana, India
Tel. No.:	91-171-2870087/ 2870088/ 2870089/ 2870090/ 2870091/ 2870092/ 93/ 94/ 95/ 96/ 97/ 98/ 99
Fax No.:	Not Available
E-Mail :	info@partapgroup.com jpinco@hotmail.com garments@partapgroup.com spintex@partapgroup.com
Website :	http://partapgroup.com
Factory (Yarn Division) :	Maur Mandi, District Bathinda – 150 509, Punjab, India
Tel. No.:	91-1655-231954
Fax No.:	91-1655-329666
E-Mail :	spintex@partapgroup.com
Branch Office :	Kantoor ,30, Sector 9, Urban Estate, Ambala City, Haryana, India

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Surinder Paul Bansal

Designation :

Managing Director

Address :

32, Sector-9, Urban Estate, Ambala City – 134 003, Haryana, India

Date of Birth/Age :

21.06.1956

Date of Appointment :

31.01.2005

DIN No.:

00286177

PAN No.:

ADAPB0048G

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	U15142HR1991PTC031166	NU-CHEM OILS PRIVATE LIMITED	Managing director	01-04-2011	24-01-1991	04-01-2012	Active	NO
2	U15142HR1992PTC031841	PARTAP VANASPATI PRIVATE LIMITED	Managing director	18-11-1992	18-11-1992	01-10-2010	Active	NO
3	U15143PB2003PTC025978	SHIVA PROTEIN PRODUCTS PRIVATE LIMITED	Director	01-05-2003	01-05-2003	18-08-2008	Active	NO
4	U17110HP2003PLC026490	SHIVOM COTSPIN LIMITED	Director	29-10-2003	29-10-2003	31-10-2013	Active	NO
5	U15140HR1989PLC030556	PARTAP SPINTEX LIMITED	Managing director	01-04-2014	31-01-2005	-	Active	NO
6	U17291HR2010PTC040701	PARTAP FABRICS PRIVATE LIMITED	Managing director	01-04-2011	15-06-2010	-	Active	NO
7	U01112HR1992PLC031788	MAHAKALI AGRO INDUSTRIES LIMITED	Director	28-09-2011	01-01-2011	10-12-2013	Active	NO
8	U17210HR2013PTC051162	PARTAP COTEX PRIVATE LIMITED	Director	03-12-2013	03-12-2013	-	Active	NO

Name :

Mr. Satish Kumar Bansal

Designation :

Director

Address :

31, Sector-9, Urban Estate, Ambala City – 134 003, Haryana, India

Date of Birth/Age :

17.07.1960

Qualification :

M. Sc.

Date of Appointment :

01.04.2011

DIN No.:

00286229

PAN No.:

AALPB2150K

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	U15142PB1988PLC008614	PARTAP INDUSTRIES LIMITED	Director	01-04-1992	01-04-1992	27-02-2010	Active	NO
2	U01112HR1992PLC031788	MAHAKALI AGRO INDUSTRIES LIMITED	Managing director	01-04-2014	25-03-1993	-	Active	NO
3	U15142PB1994PTC014421	BHAGWATI PROTEINS PRIVATE LIMITED	Director	08-06-1998	08-06-1998	01-01-2014	Strike off	NO
4	U17110HP2003PLC026490	SHIVOM COTSPIN LIMITED	Director	29-10-2003	29-10-2003	-	Active	NO
5	U15140HR1989PLC030556	PARTAP SPINTEX LIMITED	Director	01-07-2012	28-08-2004	-	Active	NO
6	U15143PB2003PTC025978	SHIVA PROTEIN PRODUCTS PRIVATE LIMITED	Director	01-08-2005	01-08-2005	29-05-2008	Active	NO
7	U17114PB2006PLC030769	PUNJAB SPINTEX LIMITED	Director	26-12-2006	26-12-2006	18-02-2010	Active	NO
8	U17291HR2010PTC040701	PARTAP FABRICS PRIVATE LIMITED	Director	15-06-2010	15-06-2010	-	Active	NO

Name :

Mr. Madan Gopal

Designation :

Director

Address :

917, Sector-9, Panchkula – 134 109, Haryana, India

Date of Birth/Age :

01.10.1954

Date of Appointment :

16.03.2009

DIN No.:

00661374

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	U15209HP1988PTC008453	HYGENIC FOODS ROLLER FLOUR MILLS PRIVATE LIMITED	Managing director	13-03-1992	13-03-1992	-	Active	NO
2	U35203CH2001PTC024436	P D ENGINEERS AND RAILWAY PARTS PRIVATE LIMITED	Director	01-06-2001	01-06-2001	-	Active	NO
3	U70101CH2002PTC025333	ARIZONA SITES PRIVATE LIMITED	Director	09-08-2002	09-08-2002	-	Active	NO
4	U27109HP1991PTC011085	RINE ENGINEERING PRIVATE LIMITED	Director	01-11-2002	01-11-2002	14-08-2008	Active	NO
5	U50101PB2006PTC030613	GOEL MOTORS PRIVATE LIMITED	Director	20-09-2006	20-09-2006	22-06-2007	Active	NO
6	U15142HR1991PTC031166	NU-CHEM OILS PRIVATE LIMITED	Director	28-09-2007	01-09-2007	20-03-2008	Active	NO
7	U15140HR1989PLC030556	PARTAP SPINTEX LIMITED	Director	25-09-2009	16-03-2009	-	Active	NO
8	U17200HR2011PTC044032	SHANTI COTEX PRIVATE LIMITED	Director	05-10-2011	05-10-2011	-	Active	NO
9	U72900HR2012PTC047657	CRG TECHSOLUTIONS PRIVATE LIMITED	Director	14-11-2012	14-11-2012	-	Active	NO

Name :

Mr. Shubham Bansal

Designation :

Whole-time Director

Address :

32, Sector-9, Urban Estate, Ambala City – 134 003, Haryana, India

Date of Birth/Age :

03.09.1987

Qualification :

MBA

Date of Appointment :

01.04.2011

DIN No.:

02794275

PAN No.:

ARGPB4609P

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	U15142HR1992PTC031841	PARTAP VANASPATI PRIVATE LIMITED	Director	15-09-2010	16-08-2010	02-12-2013	Active	NO
2	U15142HR1991PTC031166	NU-CHEM OILS PRIVATE LIMITED	Director	15-09-2010	16-08-2010	-	Active	NO
3	U15140HR1989PLC030556	PARTAP SPINTEX LIMITED	Whole-time director	02-07-2012	01-04-2011	-	Active	NO
4	U17219HR2011PTC043318	RAMA COTSPIN PRIVATE LIMITED	Director	30-06-2011	30-06-2011	31-12-2013	Active	NO
5	U17210HR2013PTC051162	PARTAP COTEX PRIVATE LIMITED	Director	03-12-2013	03-12-2013	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Note:

Shareholding details file attached.

AS ON 30.09.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	16.52
Directors or relatives of directors	73.48
Other top fifty shareholders	10.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Cotton and Polyester Yarn.

Products :

Product Description	ITC Code
Cotton Yarn	5201
Denim Fabrics	5209

GENERAL INFORMATION

No. of Employees :

Information declined by the Management.

Bankers :

· State Bank of India, Maur Mandi Branch, District Bhatinda, Maur Mandi – 151 509, Punjab, India

· State Bank of Patiala, Commercial Branch, Miller Ganj, Ludhiana – 141 001, Punjab, India

· Punjab National Bank, Nicholson Road, Sadar Bazar, Ambala Cantt, Haryana, India

Facilities :

Secured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks	262.137	294.003
Foreign currency term loans from banks	10.112	9.656
Foreign currency term loans from others	11.970	0.000
SHORT-TERM BORROWINGS
Rupee term loans from banks	77.668	49.663
Rupee term loans from others	0.964	1.398
Foreign currency term loans from others	7.980	0.000
Other external commercial borrowings	7.543	4.364
Loans repayable on demand from banks	393.157	277.700
Total	771.531	636.784

Banking Relations :	--
Financial Institution :	SREI Equipment Finance Limited, Kolkata – 700 046, West Bengal, India
Auditors :
Name :	Kant Goyal and Associates Chartered Accountants
Address :	Opposite Peer, Bal Bhawan Road, Ambala District, Haryana, India
PAN No.:	ADJPG9343G
Associates :	· Partap Fabrics Private Limited, India (CIN No.: U17291HR2010PTC040701) · Shivom Cotspin Limited, India (CIN No.: U17110HP2003PLC026490) · Rama Cotspin Private Limited, India (CIN No.: U17219HR2011PTC043318) · Mahakali Agro Industries Limited · Sudarshan Jeans Private Limited, India (CIN No.: U17290PN2009PTC134883)

CAPITAL STRUCTURE

AS ON 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1100000	Equity Shares	Rs.100/- each	Rs.110.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1033333	Equity Shares	Rs.100/- each	Rs.103.333 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	103.333	100.000	100.000
(b) Reserves & Surplus	226.748	170.355	116.983
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	10.000	0.000
Total Shareholders’ Funds (1) + (2)	330.081	280.355	216.983
(3) Non-Current Liabilities
(a) Long-term borrowings	326.438	355.161	267.682
(b) Deferred tax liabilities (Net)	31.680	20.686	13.850
(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)	358.118	375.847	281.532
(4) Current Liabilities
(a) Short term borrowings	487.312	333.125	331.800
(b) Trade payables	136.332	83.337	202.730
(c) Other current liabilities	9.139	4.693	11.838
(d) Short-term provisions	56.868	46.939	30.160
Total Current Liabilities (4)	689.651	468.094	576.528
TOTAL	1377.850	1124.296	1075.043
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	655.971	550.927	428.226
(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	43.463	65.107	47.872
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	7.549	5.093	3.593
(e) Other Non-current assets	0.525	0.640	0.806
Total Non-Current Assets	707.508	621.767	480.497
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	446.451	303.714	383.403
(c) Trade receivables	157.261	124.723	132.633
(d) Cash and cash equivalents	14.251	6.355	8.972
(e) Short-term loans and advances	35.647	49.742	41.378
(f) Other current assets	16.732	17.995	28.160
Total Current Assets	670.342	502.529	594.546
TOTAL	1377.850	1124.296	1075.043

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	2740.356	2079.127	1749.329
		Other Income	4.702	3.628	2.895
		TOTAL (A)	2745.058	2082.755	1752.224
Less	EXPENSES
		Cost of materials consumed	2041.210	1425.812	1409.812
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(98.510)	100.376	(128.259)
		Employee benefit expense	108.111	70.373	49.251
		Other expenses	430.602	273.275	232.824
		TOTAL (B)	2481.413	1869.836	1563.628
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		263.645	212.919	188.596
Less	FINANCIAL EXPENSES (D)		85.526	65.736	57.092
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		178.119	147.183	131.504
Less/ Add	DEPRECIATION/ AMORTISATION (F)		90.463	61.898	71.298
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		87.656	85.285	60.206
Less	TAX (H)		37.929	31.913	22.731
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		49.727	53.372	37.475
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export - Direct Export	130.813	137.158	NA
	TOTAL EARNINGS		130.813	137.158	NA
	IMPORTS
		Colour, Dyes and Chemicals	39.451	5.748	NA
		Capital Goods	47.100	39.234	NA
	TOTAL IMPORTS		86.551	44.982	NA
	Earnings / (Loss) Per Share (Rs.)		48.12	53.37	37.48

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.81	2.56	2.14
Net Profit Margin (PBT/Sales)	(%)	3.20	4.10	3.44
Return on Total Assets (PBT/Total Assets}	(%)	6.57	8.05	5.86
Return on Investment (ROI) (PBT/Networth)		0.27	0.30	0.28
Debt Equity Ratio (Total Debt/Networth)		2.47	2.46	2.76
Current Ratio (Current Asset/Current Liability)		0.97	1.07	1.03

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	100.000	100.000	103.333
Reserves & Surplus	116.983	170.355	226.748
Share Application money pending allotment	0.000	10.000	0.000
Net worth	216.983	280.355	330.081
Long-term borrowings	267.682	355.161	326.438
Short term borrowings	331.800	333.125	487.312
Total borrowings	599.482	688.286	813.750
Debt/Equity ratio	2.763	2.455	2.465

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from operations	1749.329	2079.127	2740.356
		18.853	31.803

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from operations	1749.329	2079.127	2740.356
Profit	37.475	53.372	49.727
	2.14%	2.57%	1.81%

LOCAL AGENCY FURTHER INFORMATION

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	No
9) Name of person contacted	Yes
10) Designation of contact person	No
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	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
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

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10493191	29/04/2014	46,464,495.20	PICANOL N V	I, KAREL STEVERLYNCKLAAN, 15 BE - 8900, IEPER, - 8900, BELGIUM	C04300547
2	10489694	28/04/2014	2,216,000.00	SREI EQUIPMENT FINANCE LIMITED	SREI EQUIPMENT FINANCE LIMITED, KOLKATA, WEST BENGAL - 700046, INDIA	C02814911
3	10488149	08/04/2014	22,958,927.04	PICANOL N V	PICANOL N V, Ieper, - 8900, BELGIUM	C02368140
4	10484817	06/03/2014	23,778,805.20	PICANOL N V	I, KAREL STEVERLYNCKLAAN, 15 BE - 8900, IEPER, - 8900, BELGIUM	C00487389
5	10376069	10/08/2012	20,256,585.00	PICANOL N V	I, KAREL STEVERLYNCKLAAN, 15 BE - 8900, IEPER, - 8900, BELGIUM	B57947285
6	10210116	08/02/2010	37,500,000.00	STATE BANK OF PATIALA	COMMERCIAL BRANCH, MILLER GANJ, LUDHIANA, PUNJAB - 141001, INDIA	A82182445
7	10071602	01/09/2007	20,000,000.00	STATE BANK OF INDIA	MAUR MANDI, DISTRICT BHATINDA, MAUR MANDI, PUNJAB - 151509, INDIA	A25135765
8	10032459	11/08/2009 *	100,000,000.00	STATE BANK OF PATIALA	COMMERCIAL BRANCH, MILLER GANJ, LUDHIANA, PUNJAB - 141001, INDIA	A70683909
9	80004552	07/02/2013 *	699,200,000.00	STATE BANK OF INDIA	MAUR MANDI BRANCH, DISTRICT BHATINDA, MAUR MANDI, PUNJAB - 151509, INDIA	B78333978

* Date of charge modification

Unsecured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG-TERM BORROWINGS
Deposits from others	42.219	51.322
Loans and advances from others	0.000	0.180
Total	42.219	51.502

Note:

The registered office of the company has been shifted from Kantoor 30, Sector-9, Urban Estate, Ambala City – 134 003, Haryana to the present address w.e.f. 02.12.2013.

OPERATIONS:

The sales and Profit before tax increased during the year review when compared with that of previous year, Profit after Tax declined. Management is hopeful that during the current year company will be doing well in its business and achieve more targets set by it.

The company produces Yarn which is a raw material for manufacturing of cloth, fabric and denim fabric.

The Yarn produced by the unit is used for manufacturing of Cotton Fabric and Denim Fabric. It has ready demand in India and in overseas market too, which is further likely to increase day by day.

The potential in India is very large owing to slow seizure of textile activity in various developed countries around the world and the ever increasing local demand due to ever increasing population of the country becoming richer day by day leading to change in living habits.

FIXED ASSETS:

· Land

· Buildings

· Plant and Equipments

· Furniture and Fixtures

· Vehicles

· Office Equipments

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.60.10
UK Pound	1	Rs.102.04
Euro	1	Rs.80.73

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	SUB
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		34

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.