MIRA INFORM REPORT

Report Date :

10.03.2014

IDENTIFICATION DETAILS

Name :	HEMCO GARMENTS PRIVATE LIMITED
Registered Office :	J-203, Saket, New Delhi - 110017
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	26.05.2009
Com. Reg. No.:	55-190637
Capital Investment / Paid-up Capital :	Rs. 0.100 Million
CIN No.: [Company Identification No.]	U74999DL2009PTC190637
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Garments and FMCG Products.
No. of Employees :	35 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (12)

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 :	Slow and delayed
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has incurred huge accumulated losses, which has eroded the networth of the company. Profitability of the company seems to be under pressure. Business is active. Payment terms are slow and delayed. 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 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.

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 (GENERAL DETAILS)

Name :	Mr. Uniyal
Designation :	Chartered Accountant
Contact No.:	91-9456590065
Date :	10.03.2014

LOCATIONS

Registered Office :	J-203, Saket, New Delhi – 110017, India
Tel. No.:	91-11-46121505
Mobile No.:	91-9456590065 (Mr. Uniyal)
Fax No.:	Not Available
E-Mail :	colawddn@nangia.com pradeep.uniyal1980@gmail.com nsoneindia@gmail.com
Factory :	Plot No. D, 14 A, Sara Industrial Area, Dehradun – 248197, Uttarakhand, India
Area :	30000 Sq. ft.
Location :	Owned

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Rajiv Kumar

Designation :

Director

Address :

197-B, Rajpur Road, Dehradun – 248001, Uttarakhand, India

Date of Birth/Age :

24.12.1969

Date of Appointment :

05.09.2013

DIN No.:

00927563

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	U45400DL2005PTC134891	SURYA BUILDARCH PRIVATE LIMITED	Director	01/10/2006	01/10/2006	-	Active	NO
2	U74992UR2010PTC033050	ADYAH INDUSTRIES PRIVATE LIMITED	Director	20/01/2010	20/01/2010	14/04/2010	Active	NO
3	U92100DL2011PTC221206	ALCHEMY MOTION PICTURES PRIVATE LIMITED	Director	21/06/2011	21/06/2011	-	Active	NO
4	U51900UR2012PTC000343	EAGLE STONE EXPORT PRIVATE LIMITED	Director	23/07/2012	23/07/2012	-	Active	NO
5	U45200UR1987PTC008627	RISHIKA LAND AND BUILDING PRIVATE LIMITED	Director	01/08/2012	01/08/2012	-	Active	NO
6	U45400UP2012PTC052504	MEERUT GREEN PROJECTS PRIVATE LIMITED	Director	12/09/2012	12/09/2012	-	Active	NO
7	U25111UR1990PTC012568	DEHRA COLD RETREADS PRIVATE LIMITED	Director	17/09/2012	17/09/2012	-	Active	NO
8	U74999UR2013PTC000589	RISHIKA FINANCIAL ADVISORY PRIVATE LIMITED	Director	13/03/2013	13/03/2013	-	Active	NO
9	U21012UR1985PTC007262	RAMAPATI PAPIRES UDYOG PRIVATE LIMITED	Director	28/03/2013	28/03/2013	-	Active	NO
10	U74899DL1994PLC057059	UTTRANCHAL DIAGNOSTIC CENTRE LIMITED	Director	30/09/2013	02/05/2013	-	Active	NO
11	U52390UR2013PTC000762	ANANTA HYGIENE PRIVATE LIMITED	Director	27/06/2013	27/06/2013	-	Active	NO
12	U74999DL2009PTC190637	HEMCO GARMENTS PRIVATE LIMITED	Director	05/09/2013	05/09/2013	-	Active	NO

Name :

Mrs. Vandana Rana

Designation :

Director

Address :

158/7/3 Officer’s Colony, Dehradun – 248001, Uttarakhand, India

Date of Birth/Age :

15.11.1969

Date of Appointment :

05.09.2013

DIN No.:

01077763

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	\Company/ LLP Status	Defaulting status
1	U45400DL2005PTC134891	SURYA BUILDARCH PRIVATE LIMITED	Director	01/10/2006	01/10/2006	Active	NO
2	U45200UR1987PTC008627	RISHIKA LAND AND BUILDING PRIVATE LIMITED	Director	01/08/2012	01/08/2012	Active	NO
3	U74999UR2013PTC000589	RISHIKA FINANCIAL ADVISORY PRIVATE LIMITED	Director	13/03/2013	13/03/2013	Active	NO
4	U74999DL2009PTC190637	HEMCO GARMENTS PRIVATE LIMITED	Director	05/09/2013	05/09/2013	Active	NO

KEY EXECUTIVES

Name :	Mr. Uniyal
Designation :	Chartered Accountant
Name :	Mr. Niranjan Sharma
Designation :	Chief Executive Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Names of Shareholders	No. of Shares	Percentage of Holding
Vandana Rana	5000	50.00
Rajiv Kumar	5000	50.00
Total	10000	100.00

AS ON 30.09.2013

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Garments and FMCG Products.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :	Wholesalers and Retailers
No. of Employees :	35 (Approximately)
Bankers :	· Punjab National Bank Clock Tower Branch, Dehradun - 248001, Uttarakhand, India

Banking Relations :	--
Auditors :
Name :	S.P. Puri And Company Chartered Accountants
Address :	4/18, Asif Ali Road, New Delhi – 110002, 110002
Tel. No.:	91-11-23274888/ 23277410
Fax No.:	91-11-23272805
E-Mail :	sppuri@vsnl.com office@sppuri.com
Income-tax PAN of auditor or auditor's firm :	AACFS2752D

CAPITAL STRUCTURE

AFTER 30.09.2013

Authorised Capital : Rs. 40.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 0.100 Million

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10,000	Equity Shares	Rs. 10/- each	Rs. 0.100 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10,000	Equity Shares	Rs. 10/- each	Rs. 0.100 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	0.100	0.100	0.100
(b) Reserves & Surplus	(2.743)	(2.883)	(2.383)
(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)	(2.643)	(2.783)	(2.283)
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.002	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)	0.002	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	3.570	3.570	3.070
(b) Trade payables	0.021	0.426	0.506
(c) Other current liabilities	0.000	0.003	0.097
(d) Short-term provisions	0.000	0.227	0.260
Total Current Liabilities (4)	3.591	4.226	3.933
TOTAL	0.950	1.443	1.650
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	0.517	0.625	0.730
(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	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.001	0.063
(d) Long-term Loan and Advances	0.050	0.128	0.128
(e) Other Non-current assets	0.000	0.000	0.016
Total Non-Current Assets	0.567	0.754	0.937
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	0.011	0.011	0.011
(c) Trade receivables	0.000	0.252	0.553
(d) Cash and cash equivalents	0.072	0.126	0.149
(e) Short-term loans and advances	0.300	0.300	0.000
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	0.383	0.689	0.713
TOTAL	0.950	1.443	1.650

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	0.556	0.201	2.284
		Other Income	0.003	0.001	0.000
		TOTAL (A)	0.559	0.202	2.284
Less	EXPENSES
		Cost of Materials Consumed	0.000	0.000	0.988
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	0.000	0.000	0.115
		Employees benefits expense	0.000	0.000	0.902
		Other expenses	0.331	0.535	1.391
		TOTAL (B)	0.331	0.535	3.396
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.228	(0.333)	(1.112)
Less	FINANCIAL EXPENSES (D)		0.000	0.000	0.000
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.228	(0.333)	(1.112)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.084	0.105	0.107
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		0.144	(0.438)	(1.219)
Less	TAX (H)		0.004	0.062	0.353
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		0.140	(0.500)	(1.572)
	Earnings/ (Loss) Per Share (Rs.)		14.00	(50.00)	(157.20)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	25.04	(247.52)	(53.37)
Net Profit Margin (PBT/Sales)	(%)	25.90	(217.91)	(53.37)
Return on Total Assets (PBT/Total Assets}	(%)	15.16	(30.37)	(76.81)
Return on Investment (ROI) (PBT/Networth)		(0.05)	0.16	0.53
Debt Equity Ratio (Total Debt/Networth)		(1.35)	1.28	1.34
Current Ratio (Current Asset/Current Liability)		0.11	0.16	0.18

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. in Millions)	(Rs. in Millions)	(Rs. in Millions)
Share Capital	0.100	0.100	0.100
Reserves & Surplus	(2.383)	(2.883)	(2.743)
Net worth	(2.283)	(2.783)	(2.643)
long-term borrowings	0.000	0.000	0.000
Short term borrowings	3.070	3.570	3.570
Total borrowings	3.070	3.570	3.570
Debt/Equity ratio	(1.345)	(1.283)	(1.351)

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. in Millions)	(Rs. in Millions)	(Rs. in Millions)
Sales	2.284	0.201	0.556
		(91.200)	176.617

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. in Millions)	(Rs. in Millions)	(Rs. in Millions)
Sales	2.284	0.201	0.556
Profit/ (Loss)	(1.572)	(0.500)	0.140
	(68.83%)	(248.76%)	25.18%

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	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)	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	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	10468450	04/12/2013	15,000,000.00	PUNJAB NATIONAL BANK	CLOCK TOWER BRANCH, DEHRADUN - 248001, UTTARAKHAND, INDIA	B92829837
2	10468454	04/12/2013	48,300,000.00	PUNJAB NATIONAL BANK	CLOCK TOWER BRANCH, DEHRADUN - 248001, UTTARAKHAND, INDIA	B92830520

UNSECURED LOANS

UNSECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Interest free loan and advances from directors	3.570	3.570
Total	3.570	3.570

CHANGE OF ADDRESS:

The Registered office of the company has been shifted from Building No. 7, Fourth Floor, Furniture Block, Kirti Nagar, Delhi - 110015, India to the present address w.e.f.25.06.2009.

FIXED ASSETS:

· Plant and machinery

· Office Equipment

· Vehicles

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. 60.99
UK Pound	1	Rs. 102.07
Euro	1	Rs. 84.53

INFORMATION DETAILS

Information Gathered by :	HNA
Report Prepared by :	BVA

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	--
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	--
--CREDIT LINES	1~10	--
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		12

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.