MIRA INFORM REPORT

Report Date :

29.05.2014

IDENTIFICATION DETAILS

Name :	BHUMI YARN PRIVATE LIMITED
Registered Office :	15, Kanchan Bhavan, 2^nd Floor, Dadiseth Agiyary Lane, Kalbadevi, Mumbai – 400 002, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	09.06.2004
Com. Reg. No.:	11-146840
Capital Investment / Paid-up Capital :	Rs.27.717 Millions
CIN No.: [Company Identification No.]	U17110MH2004PTC146840
TAN No.: [Tax Deduction & Collection Account No.]	MUMB14487E
PAN No.: [Permanent Account No.]	AACCB4111G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Polyester Texturised Yarn and Twisted Yarn.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 770000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is and established company having satisfactory track. The company possesses a healthy financial profile, marked by low gearing and strong debt protection metrics. Management has reported a dip in its net profitability during FY 2013. The ratings also take into consideration the exposure to intense competition resulting in limited pricing flexibility. However, trade relations are fair. Business is active. Payment terms are reported as slow but correct. In view of extensive experience of the promoters, 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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating “BB+”
Rating Explanation	Moderate risk of default regarding timely servicing and high credit risk
Date	September 10, 2013

Rating Agency Name	CRISIL
Rating	Short Term Rating “A4+”
Rating Explanation	Minimal degree of safety and very high credit risk
Date	September 10, 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. Hitesh Jain
Designation :	Finance Manager
Contact No.:	91-22-66342425
Date :	27.05.2014

LOCATIONS

Registered Office :	15, Kanchan Bhavan, 2^nd Floor, Dadiseth Agiyary Lane, Kalbadevi, Mumbai – 400 002, Maharashtra, India
Tel. No.:	91-22-66342425
Fax No.:	91-22-66342425 / 66342523
E-Mail :	bhumi@bhumiyarn.com murarkapawan@hotmail.com
Website :	www.bhumiyarn.com
Factory 1 :	Survey No.221/3/1, Near Check Post, Village Dadra, Silvassa – 396 230, Dadra and Nagar Haveli (U.T.), India
Location :	Owned
Factory 2 :	Survey No.278/2/3, Near Canal, Damni Road, Village Dadra, Silvassa – 396 230, Dadra and Nagar Haveli (U.T.), India
Location :	Owned

DIRECTORS

As on: 30.09.2013

Name :

Mr. Sanjay R. Shah

Designation :

Director

Address :

705/B, Deepak Jyoti Tower, Parel Tank Road, Ambawadi, Kalachowki, Mumbai – 400033, Maharashtra, India

Date of Appointment :

09.06.2004

PAN No.:

AAEPS5265M

DIN No.:

00376207

Name :

Mr. Nikhil N Shah

Designation :

Director

Address :

1005/ B, Deepak Jyoti Tower, Parel Tank Road, Ambawadi, Kalachowki, Mumbai – 400033, Maharashtra, India

Date of Appointment :

09.06.2004

PAN No.:

AAGPS8826A

DIN No.:

00376318

Name :

Mr. Chirag R. Shah

Designation :

Director

Address :

Navkar, Kim, Taluka: Olpad, Surat – 394110, Gujarat, India

Date of Appointment :

27.10.2005

DIN No.:

00548435

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	U17119GJ2003PTC042744	N J TEXTURISERS PRIVATE LIMITED	Director	08/08/2003	08/08/2003	-	Active	NO
2	U17110MH2004PTC146840	BHUMI YARN PRIVATE LIMITED	Director	27/10/2005	27/10/2005	-	Active	NO
3	U17115MH2003PTC143514	TEXSPUN INDUSTRIES PRIVATE LIMITED	Director	17/08/2006	17/08/2006	-	Active	NO
4	U17219GJ2006PTC049465	N. J. TEXTILE INDUSTRIES PRIVATE LIMITED	Director	27/11/2006	27/11/2006	-	Active	NO
5	U17120GJ2008PTC052619	N. J. WEAVTEX PRIVATE LIMITED	Director	10/01/2008	10/01/2008	-	Strike off	NO
6	U17297GJ2000PLC038932	KEJRIWAL INDUSTRIES LIMITED	Director	14/10/2009	14/10/2009	30/07/2010	Active	NO
7	U17120MH1994PTC077662	MEERA COTTON AND SYNTHETIC MILLS PRIVATE LIMITED	Additional director	15/06/2010	15/06/2010	30/09/2011	Active	NO
8	U45201GJ2012PTC072517	N. J. ECO-BUILD PRIVATE LIMITED	Director	31/10/2012	31/10/2012	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Hitesh Jain
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2013

Names of Shareholders	No. of Shares
Babitaben N Shah	139660
Chirag Pravinkumar Jain	213500
Hulasiben Rameshchand Shah	46600
Jekita Vikesh Jain	80000
Lalitaben Pravinkumar Jain	223900
Mukeshkumar Rameshchand HUF	108180
Naina Sanjay Shah	48060
Nihalchand J Shah	100000
Nihalchand Juharmal HUF	19800
Nikhil N. Shah	66000
Pinkesh Rameshchand Shah	77000
Poonam Nihalchand Shah	10500
Pravin Kumar Jain	200000
Pravinkumar Juharmal HUF	231500
Rameshchand J Shah	201900
Rameshchand Juharmal HUF	36000
Rimple M Shah	39600
Sangita Mukeshkumar Shah	48000
Sanjaykumar Rameshchand	9500
Sanjay R. Shah	74980
Vikesh P Jain	430000
Chirag R. Shah	2000
Anil Kumar Agarwal	265000
Manish Kumar Rameshchand HUF	100000
Total	2771680

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2013

Category	Percentage
Directors or relatives of directors	49.05
Other top fifty shareholders	50.95
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Polyester Texturised Yarn and Twisted Yarn.

Products :

Product Description	ITC Code
Polyyarn	2933

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

State Bank of India, Backbay Reclamation Branch, Raheja Chambers, Nariman Point, Mumbai - 400021, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long Term Borrowings
Term loans from banks	85.102	90.680
Short Term Borrowings
Term loans from banks	80.905	90.855
Total	166.007	181.535

Banking Relations :

--

Auditors :

Name :

P K C and Associates

Chartered Accountants

Address :

223 Natraj Market, S V Road , Malad (West), Mumbai – 400064, Maharashtra, India

PAN No.:

ABLPC0377J

Related Party :

Chirag Tax Agency, India

CAPITAL STRUCTURE

As on: 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs.40.000 Millions

Issued, Subscribed

No. of Shares	Type	Value	Amount
3740430	Equity Shares	Rs.10/- each	Rs.37.404 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
2771680	Equity Shares	Rs.10/- each	Rs.27.717 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	27.717	32.561	32.561
(b) Reserves & Surplus	165.713	152.136	141.643
(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)	193.430	184.697	174.204
(3) Non-Current Liabilities
(a) long-term borrowings	103.677	93.855	94.535
(b) Deferred tax liabilities (Net)	6.574	7.472	7.957
(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)	110.251	101.327	102.492
(4) Current Liabilities
(a) Short term borrowings	80.905	90.855	137.630
(b) Trade payables	35.333	34.116	55.946
(c) Other current liabilities	11.294	26.418	16.044
(d) Short-term provisions	10.858	5.896	7.837
Total Current Liabilities (4)	138.390	157.285	217.457
TOTAL	442.071	443.309	494.153
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	193.894	168.023	173.339
(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	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	193.894	168.023	173.339
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	86.109	95.750	101.374
(c) Trade receivables	89.257	108.833	113.733
(d) Cash and cash equivalents	4.207	6.737	67.680
(e) Short-term loans and advances	28.052	21.894	38.027
(f) Other current assets	40.552	42.072	0.000
Total Current Assets	248.177	275.286	320.814
TOTAL	442.071	443.309	494.153

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	1,807.613	1,711.402	1,504.784
		Other Income	0.622	1.285	3.827
		TOTAL	1,808.235	1,712.687	1,508.611
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	1,795.437	1,696.783	1,492.983
	PROFIT BEFORE TAX		12.798	15.904	15.628
Less	TAX		4.025	5.411	12.784
	PROFIT AFTER TAX		8.773	10.493	2.844
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		48.497	38.004	35.159
	BALANCE CARRIED TO THE B/S		57.230	48.497	38.003
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	276.871	198.051
	Earnings Per Share (Rs.)		3.17	3.79	1.03

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.49	0.61	0.19
Net Profit Margin (PBT/Sales)	(%)	0.71	0.93	1.04
Return on Total Assets (PBT/Total Assets}	(%)	2.90	3.59	3.16
Return on Investment (ROI) (PBT/Networth)		0.07	0.09	0.09
Debt Equity Ratio (Total Debt/Networth)		0.95	1.00	1.33
Current Ratio (Current Asset/Current Liability)		1.79	1.75	1.48

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	32.561	32.561	27.717
Reserves & Surplus	141.643	152.136	165.713
Net worth	174.204	184.697	193.430
long-term borrowings	94.535	93.855	103.677
Short term borrowings	137.630	90.855	80.905
Total borrowings	232.165	184.710	184.582
Debt/Equity ratio	1.333	1.000	0.954

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	1,504.784	1,711.402	1,807.613
		13.731	5.622

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	1,504.784	1,711.402	1,807.613
Profit	2.844	10.493	8.773
	0.19%	0.61%	0.49%

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	No
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	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	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	Yes

UNSECURED LOAN

(Rs. In Millions)

	As on 31.03.2013	As on 31.03.2012
Long Term Borrowings
Loans and advances from Director	4.075	3.175
Interoperate borrowings	14.500	0.000
Total	18.575	3.175

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80006205	22/02/2013 *	300,200,000.00	STATE BANK OF INDIA	BACKBAY RECLAMATION BRANCH, RAHEJA CHAMBERS, NARIMAN POINT, MUMBAI - 400021, Maharashtra, INDIA	B72380264

* Date of charge modification

FIXED ASSETS:

· Plant and Machinery

· Car

· Computer

· Electrical Cable

· Factory Building

· Factory Furniture

· Land

· Land Unit 2

· Motor Bike

· Office Equipment

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.59.08
UK Pound	1	Rs.99.20
Euro	1	Rs.80.53

INFORMATION DETAILS

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	NO
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.